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Mayor's ReportA PROCLAMATIONACKNO RTEDGING THE FUNDRAISING EFFORTS OF SAINT PAUL LUTHERAN SCHOOL TO BENEFIT "CENTS FOR CENTRAL SCHOOL" WHEREAS, SAINT PAUL LUTHERAN SCHOOL - students, parents, teachers and administrators worked together to raise $939.49 in donations of quarters, dimes, nickels, pennies and dollars to donate toward the restoration of the 1896 one -room schoolhouse in Mount Prospect known as Central School; and WHEREAS, SAINT PAUL LUTHERAN SCHOOL did so as part of the Fall, 2015 "Cents for Central School" challenge, posed by the Mount Prospect Historical Society in an effort to move the fundraising campaign for the schoolhouse toward the finish line; and WHEREAS, SAINT PAUL LUTHERAN SCHOOL, the challenge winner, competed with five other local schools: Fairview School, Indian Grove School, Lincoln Middle School, Lions Park School and Prospect High School and; WHEREAS, together, all six schools raised a total of $3,580.45 for the effort; and WHEREAS, built by William Wille on land donated by William Wille and William Busse, Central School is one of the last remaining one -room frame schoolhouses in Illinois. and WHEREAS, Central School earned its place in Mount Prospect history, when, on February 3, 1917, papers were signed at this site incorporating the Village of Mount Prospect; and WHEREAS, Central School is the site of many "firsts" in Mount Prospect; it housed the first public school in Mount Prospect, it held the first library collection in Mount Prospect, was the first meeting place for the Mount Prospect Fire Department, Mount Prospect Women's Club and many other organizations for both youth and adults; and WHEREAS, once restored, Central School will be a fantastic resource for school tours, one- room classroom experiences, small historic and art exhibits and even private rentals. NOW, THEREFORE, I, Arlene A. Juracek, Mayor of the Village of Mount Prospect, do hereby proclaim: NOVEMBER 17, 2015 as a day to celebrate and acknowledge SAINT PAUL LUTHERAN SCHOOL for accepting the "Cents for Central School" challenge and demonstrating their outstanding community leadership through this campaign. And, I urge the Mount Prospect community to extend their congratulations and thanks to all the schools that participated in the "Cents for Central School" challenge to preserve the historical presence of "Central School". Arlene A. Juracek Mayor ATTEST: M. Lisa Angell Village Clerk Dated this 171' day of November PROCLAMATION "TEDDY BEAR WALK WEEK" November 29 DECEMBER 5, 2015 WHEREAS, in 1980 the annual Teddy Bear Walk was started by the Mount Prospect Public Library, Mount Prospect State Bank, and downtown merchants to provide a holiday tradition for the children of Mount Prospect, and WHEREAS, Mount Prospect Public Library continues the program "Give the Gift of Reading. " From November 16 through December 13, the Library will be collecting new or like -new unwrapped books, in English and Spanish, for local children in need, age six and under; and WHEREAS, December 5, 2015 marks the 35`h anniversary of this annual event, and WHEREAS, the event will be celebrated with songs, stories, and a parade; and WHEREAS, the event will end with Ted E. Bear leading a parade of families and bears in the annual Teddy Bear Walk, and WHEREAS, the Village of Mount Prospect recognizes this popular community event. NOW, THEREFORE, I, Arlene A. Juracek, Mayor of the Village of Mount Prospect, do hereby proclaim November 29 through December 5, 2015 as "MOUNT PROSPECT TEDDYBEAR WALK WEEK," and, on behalf of the Village, I thank everyone who has contributed to making the Teddy Bear Walk a favorite holiday tradition for the families of Mount Prospect. Arlene A. Juracek Mayor ATTEST: M. Lisa Angell Village Clerk Dated this 17`h day of November, 2015 IMOUnt Pmspc Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FROM: TOM MUNZ, AUDIT COMMITTEE CHAIR DATE: NOVEMBER 10, 2015 SUBJECT: ANNUAL REPORT OF AUDIT COMMITTEE — 2014/2015 The audit for fiscal year 2014 is complete and the Comprehensive Annual Financial Report (CAFR) is included as part of your materials for review and acceptance. The audit firm of Sikich LLP performed the Village's external audit. This audit marked the completion of the first year of their five-year engagement with the Village. During the past year the audit committee met once on June 10, 2015. On the agenda for this meeting was a review of the 2014 annual audit and discussion on the annual report to the Village Board on activities of the audit committee. Meetings of the Audit Committee were less frequent than in 2014 due to the additional time required in the prior year in selecting a new village auditor. Audit committee discussion at the June meeting included: Li Committee members met with partner in charge, Jim Savio, to review the 2014 Management Letter as well as discuss overall results of the audit. Li General discussion on the elements of the annual report of the audit committee and timing for when to present to the Village Board, date to be determined. The following are some of the more significant items from the 2014 Audit. Li CAFR, Financial Tab — Starting on page one of this section is the auditor opinion on results of the audit. The audit firm expresses that the financial statements present fairly in all respects the financial position for year ended December 31, 2014 in accordance with generally accepting accounting principles. While the actual statement at the top of the page is much more detailed, it is the key statement from the audit firm demonstrating that they found no significant issues that impact their overall determination on the accuracy of the Villages financial statements and position (unmodified opinion). A copy of the auditor opinion is attached for your review. L Auditor's Communication to the Board of Trustees and Management - The Committee also reviewed the audit firms' required communication to the board and communication of deficiencies accompanying the audit report. These two reports provide information that had, in part, been included as part of the management letter. The auditor's communication provides information related to the performance of the audit. Annual Report of Audit Committee — 2014/15 November 10, 2015 Page 2 In summary, the following items were noted about the audit: o Regarding the qualitative aspects of the audit, the statement disclosures are neutral, consistent and clear o No difficulties were encountered in performing the audit o Corrected misstatement (1) was not material to financial statements as a whole o No disagreements with management arose during the course of the audit o Management representations were provided as requested by auditor o No consultations were made with other accounting firms regarding audit and accounting matters A communication of deficiencies is also a required communication of the auditor. Deficiencies are classified as either a significant deficiency or material weakness. Auditors are required to communicate internal control matters using one of these two classifications. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Village's financial statements will not be prevented, or detected and corrected, on a timely basis. The village had NO such material weakness. There were three deficiencies noted during the audit. Two dealt with how the department tracked long-term debt and capital assets. A third dealt with documentation of expenditures in the village's Laserfiche electronic document filing system. Long-term debt and fixed assets have been tracked separate from the village ERP system. Appropriate entries were made annually to record additions and deletions and information was recorded in the annual report. The auditor recommendation was to create a separate debt and capital asset tracking "fund" to better capture this information. Finance staff concurred with this recommendation and was implemented beginning in 2015. Invoices and supporting documentation for expenditures are placed in the village's Laserfiche document filing system for record keeping purposes. This was the case for all invoices and statements except for one particular vendor where only the monthly statement was placed in Laserfiche. The auditor recommendation was to include supporting documentation with the monthly statement and review/approve prior to payment. Finance staff concurred with this recommendation and was implemented beginning in 2015. There was one additional comment regarding the implementation of GASB Statements No. 68, Accounting and Financial Reporting for Pensions, No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, and No. 72, Fair Value Measurement and Application. Implementation of Statements 68 and 71 occurs with year ended December 31, 2015 while Statement 72 does not occur until year ended December 31, 2016. Annual Report of Audit Committee — 2014/15 November 10, 2015 Page 3 The final item we are highlighting from the Comprehensive Annual Financial Report is under the first tab (Introduction). On page ix is the Certificate of Achievement for Excellence in Financial Reporting that the Village received for its 2013 report. This marks the 21st consecutive year the Village has received this award. Application has been made to the Certificate program for fiscal year 2014. Notice of the award is expected toward the end of 2015. A copy of the Certificate of Achievement award is attached for your review. The next meeting of the audit committee is expected in late 2015 to meet with the auditors and plan for the 2016 audit. Please contact me should you have any questions or need additional information related to this report or the audit committee activities. Respectfully Submitted, Tom Munz Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Mount Prospect Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2013 */000w 44-PA0W.-V Executive Director/CEO ix INDEPENDENT AUDITOR'S REPORT The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois (the Village) as of and for the year ended December 31, 2014, and the related notes to financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. -I- SikichR_ 63, 0.566.8400 // www.sikich.com Certified Public Accountants & Advisors Memoers of American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois (the Village) as of and for the year ended December 31, 2014, and the related notes to financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. -I- Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle The Village adopted the GASB Statement No 67, Financial Reporting for Pension Plans, which modified certain disclosures in the notes to financial statements and the required supplementary information. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and other required supplementary information 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village's basic financial statements. The introductory section, combining and individual fund financial statements and schedules, statistical section, and supplemental data are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. -2- The introductory and statistical sections and supplemental data have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Naperville, Illinois June 5, 2015 -3- VILLAGE OF MOUNT PROSPECT ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014 VILLAGE OF MOUNT PROSPECT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2014 Prepared by: Finance Department David O. Erb Finance Director Lynn M. Jarog Deputy Finance Director VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION List of Principal Officials....................................................................................................... i OrganizationalChart .............................................................................................................. ii Letter of Transmittal............................................................................................................... iii -viii Certificate of Achievement for Excellence in Financial Reporting ...................................... ix FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT............................................................................ 1-3 Management's Discussion and Analysis.................................................................... MD&A 1-11 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Basic Financial Statements Government -Wide Financial Statements Statement of Net Position........................................................................................ 4 Statement of Activities............................................................................................ 5-6 Fund Financial Statements Governmental Funds BalanceSheet....................................................................................................... 7-8 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position ......................... 9 Statement of Revenues, Expenditures, and Changes in Fund Balances ............. 10-11 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities........................................................... 12 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Position.................................................................................... 13 Statement of Revenues, Expenses, and Changes in Net Position ....................... 14 Statement of Cash Flows..................................................................................... 15-16 Fiduciary Funds Statement of Fiduciary Net Position................................................................... 17 Statement of Changes in Fiduciary Net Position ................................................ 18 Notes to Financial Statements...................................................................................... 19-69 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual GeneralFund........................................................................................................... 70 RefuseDisposal Fund.............................................................................................. 71 Schedule of Funding Progress Illinois Municipal Retirement Fund........................................................................ 72 PolicePension Fund................................................................................................ 73 Firefighters' Pension Fund................................................................................. 74 Other Postemployment Benefits Plan................................................................. 75 Schedule of Employer Contributions Illinois Municipal Retirement Fund........................................................................ 76 PolicePension Fund................................................................................................ 77 Firefighters' Pension Fund................................................................................. 78 Other Postemployment Benefits Plan................................................................. 79 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Required Supplementary Information (Continued) Schedule of Changes in the Employer's Net Pension Liability and Related Ratios Police Pension Fund............................................................ Firefighters' Pension Fund .................................................. Schedule of Investment Returns Police Pension Fund............................................................ Firefighters' Pension Fund .................................................. Notes to Required Supplementary Information ........................ COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund Schedule of Revenues - Budget and Actual .................... Schedule of Expenditures - Budget and Actual .............. Schedule of Detailed Expenditures - Budget and Actual Special Revenue Fund Refuse Disposal Fund Schedule of Operating Revenues - Budget and Actual Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Funds Flood Control Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Schedule of Expenditures - Budget and Actual. Street Improvement Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Page(s) 100 101 102 103 104 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet............................................................................................ 105 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances......................................................................................... 106 Nonmajor Special Revenue Funds Combining Balance Sheet....................................................................................... 107-108 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances.................................................................................... 109-110 Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 111 Schedule of Expenditures - Budget and Actual .................................................. 112 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 113 Schedule of Expenditures - Budget and Actual .................................................. 114 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual AssetSeizure Fund.............................................................................................. 115 Federal Equitable Share Fund............................................................................. 116 DUIFines Fund................................................................................................... 117 Foreign Fire Insurance Fund................................................................................ 118 Business District Fund......................................................................................... 119 Nonmajor Capital Projects Funds Combining Balance Sheet....................................................................................... 120 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances.................................................................................... 121 Capital Improvement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 122 Schedule of Expenditures - Budget and Actual .................................................. 123 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS (Continued) Nonmajor Capital Projects Funds (Continued) Downtown Redevelopment Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 124 Schedule of Expenditures - Budget and Actual .................................................. 125 MAJOR ENTERPRISE FUND Water and Sewer Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 126 Schedule of Operating Revenues - Budget and Actual .......................................... 127 Schedule of Operating Expenses - Budget and Actual ........................................... 128-130 NONMAJOR ENTERPRISE FUNDS Combining Statement of Net Position......................................................................... 131 Combining Statement of Revenues, Expenses, and Changes in Net Position ............ 132 Combining Statement of Cash Flows.......................................................................... 133-134 Parking System Revenue Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 135 Schedule of Operating Expenses - Budget and Actual ........................................... 136 Village Parking System Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 137 Schedule of Operating Expenses - Budget and Actual ........................................... 138 INTERNAL SERVICE FUNDS Combining Statement of Net Position......................................................................... 139 Combining Statement of Revenues, Expenses, and Changes in Net Position ............ 140 Combining Statement of Cash Flows.......................................................................... 141-142 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) INTERNAL SERVICE FUNDS (Continued) Computer Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 143 Schedule of Operating Expenses - Budget and Actual ........................................... 144 Risk Management Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 145 Schedule of Operating Revenues - Budget and Actual .......................................... 146 Schedule of Operating Expenses - Budget and Actual ........................................... 147 Vehicle Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 148 Schedule of Operating Revenues - Budget and Actual .......................................... 149 Schedule of Operating Expenses - Budget and Actual ........................................... 150 Vehicle Maintenance Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 151 Schedule of Operating Revenues - Budget and Actual .......................................... 152 Schedule of Operating Expenses - Budget and Actual ........................................... 153 FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Net Position - Pension Trust Funds ............................... 154 Combining Statement of Changes in Net Position - Pension Trust Funds ............ 155 Schedule of Changes in Net Position - Budget and Actual PolicePension Fund............................................................................................ 156 Firefighters' Pension Fund.................................................................................. 157 AGENCY FUNDS Combining Statement of Changes in Assets and Liabilities - Agency Funds.................................................................................... 158-159 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS Schedule of General Long -Term Debt......................................................................... 160-161 LONG-TERM DEBT REQUIREMENTS 175-176 General Obligation Bonds of 2006.............................................................................. 162 General Obligation Bonds of 2009.............................................................................. 163 General Obligation Refunding Bonds of 2009B......................................................... 164 Taxable General Obligation Bonds of 2009C............................................................. 165 General Obligation Bonds of 2011A........................................................................... 166 General Obligation Bonds of 2011B............................................................................ 167 General Obligation Bonds of 2012C............................................................................ 168 General Obligation Bonds of 2013.............................................................................. 169 General Obligation Bonds of 2014.............................................................................. 170 IEPA Flood Loan (1,17-0855) Contract Payable of 1997 ............................................ 171 IEPA Flood Loan (1,17-1087) Contract Payable of 1999 ............................................ 172 Installment Note Payable of 2012................................................................................ 173 SUPPLEMENTAL DATA Schedule of Insurance in Force.................................................................................... 174 STATISTICAL SECTION Financial Trends Net Position by Component..................................................................................... 175-176 Change in Net Position............................................................................................. 177-180 Fund Balances of Governmental Funds................................................................... 181-182 Changes in Fund Balances of Governmental Funds ................................................ 183-184 Revenue Capacity Assessed Value and Actual Value of Taxable Property ........................................... 185 Property Tax Rates - Direct and Overlapping Governments ................................... 186-187 Principal Property Taxpayers................................................................................... 188 Property Tax Levies and Collections....................................................................... 189 SalesTaxes by Category.......................................................................................... 190 Business District Sales Taxes by Category.............................................................. 191 Home Rule Sale Taxes by Category......................................................................... 192 Direct and Overlapping Sales Tax Rates.................................................................. 193 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) STATISTICAL SECTION (Continued) Debt Capacity Page(s) Ratios of Outstanding Debt by Type........................................................................ 194 Ratios of General Bonded Debt Outstanding........................................................... 195 Direct and Overlapping Governmental Activities Debt ........................................... 196 Schedule of Legal Debt Margin............................................................................... 197 Demographic and Economic Information Demographic and Economic Information................................................................ 198 PrincipalEmployers................................................................................................. 199 Operating Information Full -Time Equivalent Employees................................................................................. 200-201 Operating Indicators..................................................................................................... 202-203 Capital Assets Statistics by Function........................................................................... 204 Additional Disclosures Required by SEC Rule 15c2-12 .................................................. 205-212 INTRODUCTORY Paul Wm. Hoefert A. John Korn John J. Matuszak VILLAGE OF MOUNT PROSPECT, ILLINOIS PRINCIPAL OFFICIALS December 31, 2014 LEGISLATIVE Arlene A. Juracek, Mayor Steven S. Polit Richard F. Rogers ADMINISTRATIVE Michael E. Janonis, Village Manager David Strahl, Assistant Village Manager David O. Erb, Finance Director/Treasurer William J. Cooney, Jr., Director of Community Development Julie K. Kane, Director of Human Services John Malcolm, Fire Chief Timothy Janowick, Police Chief Sean P. Dorsey, Director of Public Works M. Lisa Angell, Village Clerk I Michael A. Zadel VILLAGE OF MOUNT PROSPECT ORGANIZATIONAL STRUCTURE Electorate Village Board Mayor and Six Trustees Elected At Large Audit Committee Boards Village Services Commissions Fire & Police Finance Economic Fire Pension Board Village Manager Development Commissioners Commission Commission Foreign Fire Village Transportation Planning &Zoning Police Pension Board Insurance Tax Board Finance Department Administration Safety Commission Commission Community Human Services Special Events Centennial Development Department Department Commission Commission Police DepartmentFire Department Sister Cities Commission Public Works Department 11 MAYOR Arlene A. Juracek TRUSTEES Paul Wm. Hoefert John J. Matuszak Steven S. Polit Richard F. Rogers Colleen E. Saccotelh Michael A. Zadel June 10, 2015 illotynt T' --7 ACTING VILLAGE MANAGER David Strahl VILLAGE CLERK M. Lisa Angell Phone: 847/392-6000 Fax: 847/392-6022 www.mountprospect. org Village of Mount Prospect 50 South Emerson Street, Mount Prospect, Illinois 60056 The Honorable Arlene A. Juracek, Village President Members of the Board of Trustees Acting Village Manager David Strahl, and Citizens of the Village of Mount Prospect, Illinois The Comprehensive Annual Financial Report of the Village of Mount Prospect, Illinois for the fiscal year ended December 31, 2014 is submitted herewith. The report consists of management's representations concerning the finances of the Village of Mount Prospect. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Village. To provide a reasonable basis for making these representations, management of the Village has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the Village of Mount Prospect's financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the Village's comprehensive framework on internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. The Village has implemented GASB Statement No. 34, Basic Financial Statements - and Management Discussion and Analysis - for state and local governments, including infrastructure reporting. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Village's financial statements have been audited by Sikich LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the Village of Mount Prospect for the year ended December 31, 2014, are free from material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded based upon their audit that there was a reasonable basis for rendering an unmodified opinion that the Village's financial statements for the fiscal year ended December 31, 2014 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Village's MD&A can be found immediately following the report of the independent auditors. Profile of the Village of Mount Prospect The Village of Mount Prospect, a home rule community as defined by the Illinois Constitution, was incorporated February 3, 1917 and is located 22 miles northwest from downtown Chicago in Cook County. The Village currently has land area of 10.3 square miles and a population of 54,167. iii The Village operates under the Council/Manager form of government. Policymaking and legislative authority are vested in the Village Board, which consists of a Mayor and six -member Board of Trustees. The Village Board is responsible for, among other things, passing ordinances, adopting the budget, appointing committee members and hiring the Village Manager. The Village Manager is responsible for carrying out the policies and ordinances of the Village Board, for overseeing the day-to-day operations of the Village, and for appointing the heads of the Village's departments. The Board is elected on a non-partisan basis. Board members are elected to four-year staggered terms with three Board members elected every two years. The Mayor is elected to a four-year term. The Mayor and Village Trustees are elected at large. The Village provides a full range of services including police, fire, public works (including water and sewer), human services, finance, community development and television services. The annual budget serves as the foundation for the Village's financial planning and control. All departments of the Village are required to submit their budget requests to the Finance Director by mid-August each year. Revenue estimates are completed by the Finance Department in preparation for departmental budget reviews with the Village Manager and Finance Director in early September. Initial budget requests are compiled by the end of September. A proposed budget is prepared and delivered to the Village Board and Finance Commission in early October. The proposed budget is also made available for public inspection in the Village Clerk's Office, on the village website and at the Mount Prospect Public Library. A series of meetings are held with the Finance Commission along with hearings before the Village Board at two (2) Committee of the Whole meetings in late October and early November. The Village Board is required to hold a public hearing on the proposed budget and to adopt a final budget no later than December 31st of each year, the close of the Village's previous budget year. The budget is prepared by fund and by department. Expense cost centers are created within departments giving a true picture of the cost of providing a particular service (i.e. Police Department Investigations). Budget amendments require approval of the Village Board. Budget -to -actual comparisons are provided for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Corporate Fund and major special revenue funds, this comparison is presented in the required supplementary information. For governmental funds, other than the General Corporate Fund, with appropriated annual budgets, this comparison is presented in the non -major governmental fund subsection of this report. Major Initiatives The Village staff, following directives of the Village Board and the Village Manager, has been involved in a variety of projects throughout the year; projects which reflect the Village's commitment to ensuring that its citizens are able to live and work in an enviable environment. Also included in this section are any other major activities of note that occurred during the year. The most significant of these projects and activities are discussed below: ECONOMIC DEVELOPMENT continues to see significant activity in the community. CVS/Caremark won an Eddie Award for being one of the top 6 economic development projects in the State for their new facility. Randhurst continues to see new tenants locate within the shopping center with Nothing Bundt Cakes, Naf Naf Grill, Maurices, Famous Footwear, Massage Envy, Orange Fitness Theory, and Truco Taqueria all announcing or opening retail locations. Elsewhere along Rand Road Fresh Thyme opened its first Illinois store in April, Menards started construction on the expansion of their existing facility, and Mount Prospect Plaza received zoning approval to add additional retail space to the center. Anytime Fitness and the Village Inn Pizzeria opened new locations at the northeast corner of Euclid and Wolf. In the Downtown area, activity remains robust with both Starbucks and Subway relocating, completion of Founders Row, construction of brownstones at 701 E Prospect, and the redevelopment of the Tri-State Electronics parcel. A 92 -unit senior independent living facility was opened by Alden in September fulfilling a long stated need of the community for additional senior housing facilities. Additionally, staff has had preliminary discussions on the potential redevelopment of the Golf Plaza II shopping center. ■ The POLICE DEPARTMENT continued meeting its mission of providing quality law enforcement services to our citizens with pride, integrity, and professionalism. The Department saw significant staffing changes in 2014 with the retirements of the Police Chief, a Deputy Chief, a Commander, a Sergeant, and two Patrol Officers. The Department's succession plan worked seamlessly with the promotion of a new Chief of Police, two Deputy Chiefs, a Commander, three Sergeants, and the hiring of six new Patrol Officers. IV The Department continued to focus on the career development of its personnel, providing core law enforcement training to line officers, cutting-edge training in specialized areas such as crisis interventions, and advanced management training for the Department's leadership team. The Crime Prevention Unit expanded the Department's presence on social media, actively disseminating Department information on Facebook, Twitter, and YouTube. The Department re-established its Citizen's Police Academy, providing residents with information about Department operations. Through intensified enforcement efforts, public education, and comprehensive investigative techniques, the Department continued to reduce the number of Part I and Part II crimes committed in the Village. The FIRE DEPARTMENT updated and reorganized all of its web pages on the Village website in 2014 and conducted a new hire test to ensure the Department has a list of qualified candidates when the current list expires in January 2015. The EMS Coordinator developed a comprehensive Health Insurance Portability and Accountability Act (HIPAA) Plan covering all Fire Department employees. Staff in all divisions also received HIPAA training, to ensure compliance with new regulations. The Department's Apparatus Committee was busy from March until August developing specifications for a new fire engine, which will be placed in service at Station 12 early next year. In June, the Department was notified that it was awarded a grant from the Firehouse Subs Public Safety Foundation for approximately $22,000 to provide an Automatic External Defibrillators (AED) to all faith -based organization locations within the Village. The HUMAN SERVICES DEPARTMENT saw significant staffing changes in 2014. The Department Director retired after twenty-nine years of service and was replaced by an internal promotion. The Department also filled a Police Counseling position and an Intake Coordinator/Receptionist position. A new method of recording and tracking department service statistics was developed and implemented. Various Department staff members received training in crisis intervention, domestic violence, adult protective services and FOID mental health reporting. The Medical Reserve Corps was awarded the Ambassador's Award for their public health initiatives. The Community Connections Center received Community Development Block Grant funding which is utilized to provide programming to low and moderate income families. • The Village Board addressed shortfalls in the STREET IMPROVEMENT PROGRAM by approving a $6.5 million bond sale to fund the resurfacing of 13.3 miles of backlog streets. The bond sale in conjunction with the street funding plan approved in 2013 allowed the Village to complete the resurfacing of all 13.3 miles of backlog streets and complete the annual street program for a total of 18.9 miles of resurfaced streets. • One of the Village's most prominent landmarks, the ELEVATED WATER TANK received maintenance and new paint in 2014. Last painted in 1993, the elevated tank, with a capacity of one million gallons, received a new painted surface inside and out that included a new fanciful script lettering of "Village of Mount Prospect, Incorporated in 1917." The Village completed the second year of an eight year program to rehabilitate each of the eight SANITARY SEWER RELIEF STATIONS located along Weller Creek. The relief stations are used to provide relief to the Village sanitary sewer system when (MWRDGC)-Metropolitan Water Reclamation District of Greater Chicago interceptor sewers become surcharged. In 2014, George Street South relief station was replaced with a new pump station including the installation of new pumps, guide rails and controllers, along with all associated wiring and other electrical control equipment. The total project cost is projected to be approximately $185,000. 2014 saw the completion of the tenth year of a 10 -year commitment to rehabilitate approximately 260,000 LF of COMBINED SEWER MAINS ranging in size from 8" to 72" diameter. With the $5 a month customer charge Sewer Construction fee due to expire at the end of 2015, focus was turned to reevaluating the remaining Category 1-3 pipe that has not been rehabilitated. Approximately 190,000 lineal feet of pipe was televised and assessed with recommendations for future rehabilitation to be presented to the Village Board in spring 2015. In total, during the first nine years of this program, 76,891 linear of feet of pipe has been repaired using cured -in-place pipe (CIDP) technology and 1,460 linear feet of pipe has been replaced. One hundred percent of all Category 4 and 5 defects and 30% of category 3 defects have been repaired to date. Total water and sewer funds expended during 2014 are projected to be approximately $800,000. LTA ■ The Village completed engineering design services for Phase II of the FLOOD CONTROL PROJECTS that were identified by a comprehensive flood study that grew out of the 2011 flooding events. Phase II (Isabella Sewer) improvements to be constructed in 2015 will include the installation of large diameter relief sewer with the intended benefit of providing properties protection up to a 25 year rain event level. Phase II improvements are funded through a $10 million bond sale in 2013. 2014 was another devastating year for the Village's URBAN FOREST. A myriad of threats continued to converge during the year resulting in a dramatic number of parkway tree removals. During the year, 1,200 Village -owned trees were lost to Dutch Elm Disease, Elm Yellows, Emerald Ash Borer, other diseases, and natural decline. Historically, only about 400 trees are lost in a typical year. Through efficient utilization of resources and tight fiscal management, the Village has been able to keep pace with the increased volume of removals. In addition, due to the availability of Village funds and low market prices, the Village was able to plant 900 replacement trees — one of our largest plantings ever. In addition to fighting the advancement of EAB, the Village was hit by a severe thunderstorm on the afternoon of September 5. The storm featured winds in excess of 50 mph. Public Works crews spent a week of 12 -hour days clearing debris and performing house-to-house collection of limbs and brush in the wake of the storm. SEVERE WEATHER did once again visit the Village by way of a record setting winter season that saw the Village receive over 70 inches of snow making the 2013/2014 winter season rank third in terms of amount of snow received (Winters of 1977/78 and 1978/79 rank one and two, respectively). In addition to the significant snow totals, the Chicago Metropolitan area also endured record cold with the Village recording over 30 days in which temperatures fell below 0 degrees. The combination of record snowfall and the "Polar Vortex'' was an unprecedented combination of weather. The Public Works Department applied record amounts of road salt and super mix anti - icing liquid during the winter season; applying approximately 6,000 tons of salt and 50,000 gallons of super mix anti -icing agent to roadways during the winter season. The effects of the 2013/14 winter season did not end in the spring with regional salt stores depleted the Village faces a 44% increase in salt prices and potential shortages of salt through the impending winter season. ■ The roads were not alone in bearing the brunt of the severe winter weather. At approximately 11:30 PM on January 7, 2014, a FIRE SPRINKLER HEAD installed above the ceiling adjacent to the west wall of the Executive Conference Room on the third floor of the Village Hall broke due to exposure to extreme cold weather. The sprinkler head was installed near the exterior envelope of the building and was particularly susceptible to the cold weather and wind gusts. The break subsequently triggered activation of the fire pump resulting in a prolonged pressurized water discharge that inundated the Executive Conference Room, adjacent hallway, and a portion of the Village Board Room. Water from the sprinkler system also traveled down the west stairwell and through floor joints to damage office spaces, storage rooms, and hallways on the second floor (Human Services Department) and the first floor (Finance Department). Water also reached the bottom of the west stairwell and caused limited damage to the carpeting in the Information Technology Division main office space. Total cost to repair the damage was $171,343.47 with insurance covering $128,664.43. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Village operates. V1 Local economy. The Village continued to see a strengthening in the housing market and economy in general during 2014. There are a number of factors that influence the economy of a specific community, and various measures are used to gauge the economic outlook. Perhaps four of the most objective measures are the level of retail sales, the employment level of the community, income levels in the community and building activity. In Illinois, sales taxes are allocated based upon the point- of-sale, and accordingly represent the sales in the community. Total State sales tax receipts received during the calendar year ended December 31, 2014 were $13,285,441 compared to $12,342,154 for the previous year, an increase of 7.6%. The increase from the prior year is due to strong growth in the drug and miscellaneous retail and manufacturer categories. Since the Village's portion of sales tax receipts is based on a 1% tax rate, these receipts represent total retail sales of approximately $1.3 billion for 2014. The Village projects that this revenue source will increase 1.0% - 3.0% during 2015 and 2016. The Village will continue its efforts in the area of economic development and is optimistic that retail sales will grow over the next few years. Mount Prospect's average unemployment during 2014 was 5.5%. This was a decrease from the prior year of 120 basis points (6.7% in 2013). Similar improvement in the unemployment rate was seen at the state and national level as well. The unemployment rate for the State of Illinois decreased 210 basis points from 9.2% to 7.1% during the same period while the rate for U.S. decreased 80 basis points from 7.4% to 6.2%. Mount Prospect's median family income, $67,823 as of the 2010 Census (using 5 -year estimates), was 26% higher than the median for Cook County ($53,942) and 22% higher than the median for the State of Illinois ($55,735). In a suburban setting where it is often difficult to distinguish the boundaries of one community from a neighboring community, the economic activity of the "region" is a major influence on the economies of the individual communities. The Village of Mount Prospect is located on the eastern edge of the "Golden Corridor" which extends along Interstate 90 from O'Hare Airport to Elgin, a stretch of approximately 25 miles. Along this corridor can be found the corporate headquarters of such corporations as Sears and Motorola. The corridor is also home to regional headquarters for such corporations as AT&T and Siemens. The Corridor will continue to grow, as thousands of acres remain available for development on its far western edge. Long-term financial planning. In 2003, the Village conducted its first long-range financial planning workshop. The workshop was held in response to the slowing economy and its impact to the Village's financial condition. The goal of the workshop was to put the Village's financial condition back on firm ground in such a manner as to not overburden residents and businesses from a tax standpoint or reduce the scope and quality of municipal services that would jeopardize the livability and curb appeal of the community. The goal of the workshop was accomplished through a series of revenue enhancements, budget cuts and the planned drawdown of fund balance. Subsequent workshops were held in 2004, 2005 and 2007 - 2014. During the 2014 workshop, financial status reports were provided for end -of -year results for 2013, updated projections for 2014 and a revised forecast for 2015. Another tool in managing the long-range finances of the Village is the Five -Year Capital Improvement Plan. This plan outlines the major capital expenditure/project initiatives of the Village over the next five years and identifies funding sources. Over the next five years (2015-2019), the Village has identified $64.3 million in water and sewer, flood control, street, public building, equipment and other miscellaneous capital projects. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Mount Prospect for its comprehensive annual financial report for the year ended December 31, 2013. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report (CAFR) whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village of Mount Prospect has received a Certificate of Achievement since 1983. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA for evaluation. Vii In addition, the Village of Mount Prospect also received the Government Finance Officers Association's Award for Distinguished Budget Presentation for its annual budget for the fiscal year beginning on January 1, 2014 and ending December 31, 2014. In order to qualify for the Distinguished Budget Presentation Award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Village of Mount Prospect has received this award each year since 1994. The Village is awaiting word as to whether it received the Budget Award for its 2015 Budget document. Acknowledgements The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. I would like to express special appreciation to Lynn Jarog, Deputy Finance Director, Tricia Farkas, Accounting Supervisor and Accountants Nancy Warnock and Daxa Patel who contributed greatly to its preparation. Additionally, I would like to acknowledge the Mayor, the Board of Trustees, the Finance Commission and the Acting Village Manager for their leadership and support in planning and conducting the financial affairs of the Village in a responsible and progressive manner. Respectfully submitted, David O. Erb Finance Director Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Mount Prospect Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2013 */000w 44-PA0W.-V Executive Director/CEO ix FINANCIAL INDEPENDENT AUDITOR'S REPORT The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois (the Village) as of and for the year ended December 31, 2014, and the related notes to financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. -I- SikichR_ 63, 0.566.8400 // www.sikich.com Certified Public Accountants & Advisors Memoers of American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois (the Village) as of and for the year ended December 31, 2014, and the related notes to financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. -I- Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle The Village adopted the GASB Statement No 67, Financial Reporting for Pension Plans, which modified certain disclosures in the notes to financial statements and the required supplementary information. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and other required supplementary information 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village's basic financial statements. The introductory section, combining and individual fund financial statements and schedules, statistical section, and supplemental data are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. -2- The introductory and statistical sections and supplemental data have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Naperville, Illinois June 5, 2015 -3- GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For Fiscal Year Ended December 31, 2014 The Village of Mount Prospect (the "Village") Management's Discussion and Analysis is designed to (1) assist the reader in focusing on significant issues, (2) provide an overview of the Village's financial activity, (3) identify changes in the Village's financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. Since the Management's Discussion and Analysis (MD&A) is designed to focus on the current year's activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning on page iii), and the Village's financial statements (beginning on page 4). USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL REPORT The primary focus of local governmental financial statements had been to summarize fund type information on a current financial resource basis. This approach was modified by Governmental Accounting Standards Board (GASB) Statement No. 34. As a result, these financial statements now present two kinds of statements, each with a different snapshot of the Village's finances. The financial statement's focus under GASB Statement No. 34 is on both the Village as a whole (government -wide) and on the major individual funds. Both perspectives (government - wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the Village's accountability. Government -Wide Financial Statements The government -wide financial statements (see pages 4-6) are designed to be corporate -like in that all of the governmental and business -type activities are consolidated into columns that add to a total for the Primary Government. The focus of the Statement of Net Position (the "Unrestricted Net Position") found on page 4 is designed to be similar to bottom line results for the Village and its governmental and business -type activities. This statement combines and consolidates the governmental fund's current financial resources (short-term spendable resources) with capital assets and long term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities (see pages 5-6) is focused on both the gross and net cost of various activities (including governmental and business -type), which are supported by the government's general taxes and other resources. This is intended to summarize and simplify the user's analysis of the cost of various governmental services and/or subsidy to various business -type activities. The governmental activities reflect the Village's basic services, including police, fire, public works, and administration. Property taxes, sales and income taxes and local utility taxes finance the majority of these services. The business -type activities reflect private sector type operations (water, sewer, and parking operations), where the fee for service typically covers all or most of the cost of operation, including depreciation. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. The focus is on major funds rather than (the previous model's) fund types. The Governmental Major Fund (see pages 7-12) presentation is organized on a sources and uses of liquid resources basis. This is the manner in which the financial plan (the budget) is typically developed. The flow and availability of liquid resources is a clear and appropriate focus of any analysis of a government. Funds are established for various purposes and the Fund Financial Statement allows the demonstration of sources and uses and/or budgeting compliance associated therewith. (See independent auditor's report.) MD&A 1 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The Fund Financial Statements also allow the government to address its Fiduciary Funds (Pension Trust and Agency Funds). While these funds represent trust responsibilities of the government, these assets are restricted in purpose and do not represent discretionary assets of the government. Therefore, these assets are not presented as part of the Govemment-Wide Financial Statements. While the Business -type Activities column on the Proprietary Fund Financial Statements (see pages 13-16) is the same as the Business -type column on the Government -Wide Financial Statement, the Governmental Funds total column requires a reconciliation because of the different measurement focus (current financial resources versus total economic resources) which is reflected on the page following each statement (see pages 9 and 12). The flow of current financial resources will reflect bond proceeds and interfund transfers as other financial sources, as well as capital expenditures and bond principal payments as expenditures. The reconciliation will eliminate these transactions and incorporate the capital assets and long-term obligation (bonds and others) into the Governmental Activities column (in the government -wide statements). Infrastructure Assets Historically, a government's largest group of assets (infrastructure — i.e. roads, bridges, storm sewers, etc.) have not been reported nor depreciated in governmental financial statements. GASB Statement No. 34 requires that these assets be valued and reported within the Governmental Activities column of the Government -wide Statements. Additionally, the government must elect to either (1) depreciate these assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity. If the government develops the asset management system (the modified approach), which periodically (at least every third year), by category, measures and demonstrates its maintenance of locally established levels of service standards, the government may record its cost of maintenance in lieu of depreciation. The Village of Mount Prospect has chosen to depreciate assets over their useful life. If a road project is considered maintenance - a recurring cost that does not extend the road's original useful life or expand its capacity - the cost of the project will be expensed. An "overlay" of a road will be considered maintenance whereas a "rebuild" of a road will be capitalized. GOVERNMENT -WIDE STATEMENTS Statement of Net Position The Village's combined net position for the Primary Government (which is the Village's bottom line) as of December 31, 2014 was $74.6 million. This was a decrease in net position of $4.9 million from 2013. Net position of the Village's governmental activities was $40.0 million, a decrease of $5.1 million. The Village's unrestricted net position for governmental activities, the part that can be used to finance day-to-day operations, reflects a deficit of $10.4 million. Table 1 reflects the condensed Statement of Net Position. For more detailed information see the Statement of Net Position found on page 4. Table 2 focuses on the changes in net position of the governmental and business -type activities. (This space is intentionally left blank.) (See independent auditor's report.) VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 1 Statement of Net Position as of December 31, 2014 (in millions) Net Position Net investment in capital assets Governmental 48.2 $ 26.9 Business -type 74.6 Restricted net position 4.1 Activities - 4.1 Activities Total (10.4) 2014 2013 1.9 2014 2013 2014 2013 Current and other assets/deferred outflows $ 79.3 $ 65.4 $ 9.0 $ 9.1 $ 88.3 $ 74.5 Capital assets 70.4 73.8 26.9 26.4 97.3 100.2 Total assets/deferred outflows $ 149.7 $ 139.2 $ 35.9 $ 35.5 $ 185.6 $ 174.7 Current liabilities/deferred inflows $ 21.7 $ 25.6 $ 1.0 $ 0.9 $ 22.7 $ 26.5 Noncurrent liabilities 88.0 68.5 0.3 0.2 88.3 68.7 Total liabilities $ 109.7 $ 94.1 $ 1.3 $ 1.1 $ 111.0 $ 95.2 Net Position Net investment in capital assets $ 46.3 $ 48.2 $ 26.9 $ 26.4 $ 73.2 $ 74.6 Restricted net position 4.1 3.0 - - 4.1 3.0 Unrestricted net position (10.4) (6.1) 7.7 8.0 (2.7) 1.9 Total net position $ 40.0 $ 45.1 $ 34.6 $ 34.4 $ 74.6 $ 79.5 Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net results of activities - which will impact (increase/decrease) current assets and unrestricted net position. Borrowing for capital - which will increase current assets and long-term debt. Spending borrowed proceeds on new capital - which will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the invested in capital assets, net of debt. Spending of nonborrowed current assets on new capital - which will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase invested in capital assets, net of debt. Principal payment on debt - which will (a) reduce current assets and reduce long-term debt and (b) reduce unrestricted net position and increase invested in capital assets, net of debt. Reduction of capital assets through depreciation - which will reduce capital assets and invested in capital assets, net of debt. Current Year Impacts Governmental activities net position decreased $5.1 million while the business -type activities net position increased by $0.2 million. The governmental activities total assets increased by $10.5 million and the governmental activities total liabilities/deferred inflows increased by $15.6 million. The total assets increase of $10.5 million in governmental activities was the result of an increase of $13.9 million in current and other assets and a decrease of $3.4 million in capital assets. The $13.9 million increase in current assets was due to an increase in due from other governments of $12.0 million, an increase in insurance deposits of $1.0 million, an increase in cash and investments of $0.8 million, and an increase in other assets of $0.1 million. Amounts due from the Mount Prospect Public Library related to their outstanding debt accounted for almost the entire increase in due from other governments; accumulated depreciation accounted for the decrease in capital assets. The total net position increase of $0.2 million in business -type activities was primarily due to an increase in capital assets of $0.5 million, a reduction in cash and investments of $0.1 million and an increase in both current and noncurrent liabilities of $0.1 million each. (See independent auditor's report.) MD&A 3 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The increase in total liabilities of $15.6 million for the governmental activities was primarily due to an increase in non-current liabilities of $19.5 million. Changes in the other categories resulted in the timing related to the normal course of operations. Liabilities for business -type activities increased from $1.1 million to $1.3 million. This was due to an increase in the accounts payable category. Changes in Net Position The Village's combined change in net position for the primary government in 2014 was a decrease of $4.9 million versus a decrease of $1.5 million in 2013. Activities for the governmental activities saw a decrease in net position of $5.1 million from 2013, while activities for the business -type funds saw an increase in net position of $0.2 million from 2013. The following chart lists the revenues and expenses for the current and prior fiscal years. (This space is intentionally left blank.) (See independent auditor's report.) MD&A4 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 2 Changes in Net Position as of December 31, 2014 (in millions) Governmental Business -type Activities Activities Total Revenues 2014 2013 2014 2013 2014 2013 Program revenues Charges for service $ 10.4 8.8 $ 12.2 $ 11.7 $ 22.6 $ 20.5 Operating grants 2.2 2.4 - - 2.2 2.4 Capital grants 0.2 03 0.4 - 0.6 0.3 General revenues Property taxes 19.7 18.9 1.5 1.5 21.2 20.4 Business district taxes 0.3 0.3 - - 0.3 0.3 Sales taxes 19.6 18.3 0.1 0.1 19.7 18.4 Income taxes 5.2 5.2 - - 5.2 5.2 Utility taxes 4.1 3.9 - - 4.1 3.9 Othertaxes 3.9 3.4 - - 3.9 3.4 Investment income (0.1) 0.1 - - (0.1) 0.1 Contributions - - - - - - Other 0.1 0.4 0.1 0.1 0.2 0.5 Total revenue $ 65.6 62.0 $ 14.3 $ 13.4 $ 79.9 $ 75.4 Expenses General government $ 10.2 7.4 $ - $ - $ 10.2 $ 7.4 Public safety 30.8 29.8 - - 30.8 29.8 Highways and streets 19.9 18.6 - - 19.9 18.6 Health 4.6 4.5 - - 4.6 4.5 Welfare 1.9 1.9 - - 1.9 1.9 Culture and recreation 0.4 0.4 - - 0.4 0.4 Interest 2.9 1.9 - - 2.9 1.9 Water and sewer - - 13.8 12.1 13.8 12.1 Parking - - 0.3 03 0.3 0.3 Total expenses $ 70.7 64.5 $ 14.1 $ 12.4 $ 84.8 $ 76.9 Change in net position $ 5.1) 2.5) $ 0.2 $ 1.0 $ (4.9) $ (1.5) (Note: There will be some slight differences in totals due to rounding). (See independent auditor's report.) MD&A5 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Normal Impacts There are eight basic impacts on revenues and expenses and are reflected below Revenues: Economic condition - This can reflect a declining, stable or growing economic environment and has a substantial impact on state income, sales and utility tax revenue as well as public spending habits for building permits, elective user fees and volumes of consumption. Increase/decrease in Village approved rates - While certain tax rates are set by statute, the Village Board has significant authority to impose and periodically increase/decrease rates (water, sewer, licenses and fees, home rule sales tax, utility taxes, etc.). Changing patterns in intergovernmental and want revenue (both recurring and non-recurring? - Certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-recurring (or one- time) grants are less predictable and often distorting in their impact on year-to-year comparisons. Market impacts on investment income - The Village's investment portfolio is managed using a short-term average maturity and the market condition may cause investment income to fluctuate less than alternative longer-term options. Expenses: Introduction of new programs - Within the functional expense categories (Public Safety, Public Works, General Government, etc.) individual programs may be added or deleted to meet changing community needs or unfunded mandates from other governmental levels. Increase/Decrease in authorized personnel - Changes in service demand may cause the Village Board to increase/decrease authorized staffing levels. Staffing costs (salary and related benefits) represent approximately 80% of the Village's General Fund operating costs. Salary increases (annual adjustments and merit) - The ability to attract and retain human and intellectual resources requires the Village to strive for a competitive salary range position in the marketplace. In addition, the Village has 4 separate bargaining units representing various segments of the employee population. Inflation - While overall inflation appears to be reasonably low, the Village is a major consumer of certain commodities such as supplies, fuels and parts. Some specific areas may experience unusually high price increases. CURRENT YEAR IMPACTS Governmental Activities Revenue: Total revenues for the Village's Governmental Activities for 2014 were $65.6 million. Property taxes are the largest revenue source for governmental activities accounting for $19.7 million or an increase of $0.8 million from the prior year. This revenue has historically been the most stable source for the Village. Sales tax was the second highest revenue source with $19.6 million in revenue. This was an increase of $1.3 million from the prior year. The increase was due primarily to the gradual improving economy and additional new retail coming on line. The sales tax consists of a 1.0% state portion and 1.0% local home -rule portion. There was an increase of $1.6 million in charges for service. Utility taxes and other taxes increased a collective $0.7 million from the prior year. (See independent auditor's report.) MD&A6 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Governmental Activities (cont) Expenses: Total expenses for the Village's Governmental Activities for 2014 were $70.7 million. Public Safety, which includes Police and Fire, accounts for the largest portion of governmental expenses. Total Public Safety expenses in 2014 were $30.8 million, an increase of $1.0 million from 2013. Expenses for Highways and Streets, which are made up of the public works divisions (excluding water and sewer) is the second largest category of governmental expenses totaling $19.9 million an increase of $1.3 million from the prior year. The increase is primarily due to expenses related to capital projects. There was also an increase in General Government expenses of $2.8 million due primarily to a reclassification of capital outlay. Business -Type Activities Revenues: Total revenues for the Village's Business -Type Activities for 2014 were $14.3 million Business -type activities in the Village consist of Water and Sewer Operations and Parking Operations. Charges for service accounts for almost the entire amount of revenue for business -type activities. Of the $12.2 million generated in 2014, $9.1 million is from water sales, $2.7 million is from sewer fees and charges, $0.2 million is from parking operations and the balance is from various penalties, tap and meter fees. For 2013, water sales accounted for $8.5 million and sewer fees were $2.8 million. The Water and Sewer Fund also receives special service area taxes in the amount of $1.5 million. This amount is unchanged from the prior year. These taxes support the delivery of Lake Michigan Water to Village residents that are connected to the Village's water system. Expenses: Total expenses for the Village's Business -Type Activities for 2014 were $14.1 million. Of the total expenses for business -type activities, $13.8 million is attributable to Water and Sewer while $0.3 million is attributable to parking. $6.0 million in Water and Sewer Fund expenses were for the acquisition of water through the Northwest Suburban Municipal Joint Action Water Agency (JAWA). In comparison, of the $12.1 million in expenses for 2013, $5.3 million were attributable to the acquisition of water through JAWA. FINANCIAL ANALYSIS OF THE VILLAGE'S GENERAL FUND The General Fund is the Village's primary operating fund. It supports a majority of the day-to-day services delivered to its residences and businesses. The fund balance of the General Fund saw an increase of $1.0 million in 2014 from $11.9 million to $12.9 million. In 2014, General Fund revenues came in slightly below the final budget by $0.1 million while expenditures and net transfers came in S1.1 million under budget. The final Village budget had anticipated no change in the General Fund fund balance. While intergovernmental revenues came in at the final budget, sales taxes came in $0.3 million above the final budget. No other significant deviations from the final budget were seen in revenues during 2014. Revenue came in above original budget by $1.5 million. Actual receipts for the sales tax were $2.0 million above the original budget while miscellaneous revenue came in $0.5 million below the original budget. (See independent auditor's report.) MD&A 7 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) General Fund Budgeting Highlights During 2014, the Village amended the budget three (3) times. Table 3 below reflects the original and revised budget and the actual revenues and expenditures for the General Fund. More information can be found in the schedule of revenues, expenditures and changes in fund balance beginning on page 85. Table 3 General Fund Budgetary Changes Calendar Year 2014 (in millions) Other Major Funds There are four (4) other Major Funds for Fiscal Year ended December 31, 2014. These four Funds are 1) Refuse Disposal Fund, 2) Debt Service Fund, 3) Flood Control Construction Fund, and 4) Street Improvement Construction Fund. Refuse Disposal Fund - This Fund coordinates the Village's comprehensive municipal solid waste program. Total revenues for 2014 were $3.6 million, a decrease of $0.8 million from the prior year. Almost the entire amount of revenue received during 2014 were due to charges for service. Total expenditures for 2014 were $4.4 million, a slight increase of $0.1 million from the prior year. Ending fund balance fell $0.8 million to $1.6 million. Debt Service Fund - This Fund is used to accumulate monies for payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2014 were $4.9 million, an increase of $2.5 million from the prior year. Of this total revenue amount, $2.2 million is from property taxes, $1.6 million is from an intergovernmental transfer from the Mount Prospect Public Library to pay for library related debt, and S LI million is from other taxes. Total expenditures for 2014 were $4.9 million, an increase of $2.5 from the prior year. Ending fund balance was unchanged at $0.1 million. Flood Control Fund - This Fund is used to account for the resources directed towards implementing flood control projects throughout the village. Total revenues for 2014 were $0.3 million. Total expenditures for 2014 were $0.6 million. Ending fund balance is $11.4 million. Flood control projects planned for 2015 are expected to draw down the entire amount of fund balance. (See independent auditor's report.) MD&A 8 Original Revised Budget Budget Actual Revenues and Other Financing Sources Taxes $ 22.2 $ 22.0 $ 22.0 Intergovernmental 17.9 19.9 19.9 Other 5.7 5.5 5.4 Total Revenues $ 45.8 $ 47.4 $ 47.3 Expenditures and Transfers Expenditures $ 45.8 $ 47.4 $ 46.3 Net Transfers - - - Total Expenditures and Transfers $ 45.8 $ 47.4 $ 46.3 Change in Fund Balance $ - $ - $ 1.0 Other Major Funds There are four (4) other Major Funds for Fiscal Year ended December 31, 2014. These four Funds are 1) Refuse Disposal Fund, 2) Debt Service Fund, 3) Flood Control Construction Fund, and 4) Street Improvement Construction Fund. Refuse Disposal Fund - This Fund coordinates the Village's comprehensive municipal solid waste program. Total revenues for 2014 were $3.6 million, a decrease of $0.8 million from the prior year. Almost the entire amount of revenue received during 2014 were due to charges for service. Total expenditures for 2014 were $4.4 million, a slight increase of $0.1 million from the prior year. Ending fund balance fell $0.8 million to $1.6 million. Debt Service Fund - This Fund is used to accumulate monies for payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2014 were $4.9 million, an increase of $2.5 million from the prior year. Of this total revenue amount, $2.2 million is from property taxes, $1.6 million is from an intergovernmental transfer from the Mount Prospect Public Library to pay for library related debt, and S LI million is from other taxes. Total expenditures for 2014 were $4.9 million, an increase of $2.5 from the prior year. Ending fund balance was unchanged at $0.1 million. Flood Control Fund - This Fund is used to account for the resources directed towards implementing flood control projects throughout the village. Total revenues for 2014 were $0.3 million. Total expenditures for 2014 were $0.6 million. Ending fund balance is $11.4 million. Flood control projects planned for 2015 are expected to draw down the entire amount of fund balance. (See independent auditor's report.) MD&A 8 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Other Major Funds (cont.) Street Construction Fund - This Fund is used to account for the resources directed towards street improvement projects throughout the village. Total revenues for 2014 of $3.3 million consisted of $2.1 million in other taxes, $1.0 million in licenses with the balance coming from various other revenues. Total expenditures for 2014 were $7.8 million. Ending fund balance increased $2.1 million to $2.9 million. Capital Assets At the end of 2014, the Village had a combined total of $97.3 million invested in a broad range of capital assets including village facilities, roads, bridges, water/sewer lines and machinery and equipment (see Table 4 below). The following reconciliation summarizes the changes in Capital Assets. Land (including right-of-way) Construction in Progress Buildings & Improvements Vehicles Machinery & Equipment Infrastructure Total Capital Assets Table 4 Capital Assets at Year End Net of Depreciation (in millions) Governmental Business -type Total Primary Activities Activities Government 2014 2013 2014 2013 2014 2013 $ 10.3 $ 10.3 $ 17.6 $ 17.6 $ 27.9 $ 27.9 1.2 0.6 0.6 0.2 1.8 0.8 29.3 30.0 2.1 2.0 31.4 32.0 3.7 3.8 - - 3.7 3.8 0.5 0.6 1.2 0.9 1.7 1.5 25.4 28.5 5.4 5.6 30.8 34.1 $ 70.4 $ 73.8 $ 26.9 $ 26.3 $ 97.3 $ 100.1 This amount represents a net decrease (including additions and deletions) of $2.8 million from 2013. (This space is intentionally left blank.) (See independent auditor's report.) VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 5 Change in Capital Assets (in millions) Governmental Business -type Activities Activities Total Beginning Balance $ 73.8 $ 26.3 $ 100.1 Additions Depreciable 0.7 0.6 1.3 Non -Depreciable 0.8 0.6 1.4 Retirements Depreciable (0.7) - (0.7) Non -Depreciable (0.2) (0.2) (0.4) Depreciation (4.6) (0.4) (5.0) Retirement 0.6 - 0.6 Ending Balance $ 70.4 $ 26.9 $ 97.3 Table 5 above shows the change in capital assets during 2014. This year's major additions to the capital assets include the following (in millions): Governmental Activities Vehicles for Public Safety, Public Works and Village Fleet - $0.7 Various construction projects in -progress - $0.8 Business -Type Activities No significant additions to capital assets during 2014. More detailed information on capital asset activity can be found in Note 4 of the notes to the financial statements beginning on page 32. Debt Outstanding The Village of Mount Prospect had total long-term debt and loans payable of $88.3 million as of December 31, 2014. Long term debt is comprised of general obligation debt, compensated absences to employees, net pension obligation and other post -employment benefits (OPEB), and loans payable. During the year, $7.4 million of general obligation debt and notes payable were issued while compensated absences and other pension and post -employment benefits increased $1.1 million. Decreases in long term debt include the retirement of $2.4 million in general obligation debt, $0.7 million reduction in compensated absences and $0.6 million in notes and loan contracts. The Village of Mount Prospect maintains an AA+ rating from Standard and Poor's. As a home rule authority, the Village of Mount Prospect does not have a legal debt limit. More detailed information on long-term debt activity can be found in Note 6 of the notes to the financial statements beginning on page 39. (See independent auditor's report.) hu=9=11 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Economic Factor's and Next Year's Budget The General Fund, the Village's main operating fund, ended with a surplus for calendar year 2014. The $1.0 million surplus maintains the fund balance above the 25% benchmark set by the Village Board. Total village revenues for 2014 continue to see positive increases from the prior year. Deliberate budgetary measures involving both revenues and expenditures have allowed the Village to maintain a strong financial condition through several lean years following the significant downturn in the economy that started at the end of 2008. Continuing challenges in 2015 and years to come include, reductions in revenue due to state budgetary issues, rising personnel related costs (wages insurance, etc.) and the funding of the public safety pensions. Approximately 80% of the operating budget is made up of these personnel and related costs. The Village's average unemployment for 2014 was 5.5%. This is below the state and national unemployment rate of 7.1 % and 6.2% respectively. The Village's unemployment rate decreased 120 basis points from the prior year. The 2015 Budget represents a 3.6% decrease from the amended 2014 Budget and totals $116.0 million. The General Fund increased $1.0 million, or 2.2% from the prior year. The Village's Operating Budget (that part which funds the Village's day-to-day operations) shows an increase of 3.5% and totals $64.6 million. The Operating Budget includes all General Fund expenditures as well as refuse disposal, water and sewer service, and various special revenue activities. Request for Information This financial report is designed to provide a general overview of the Village of Mount Prospect's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to David O. Erb, Finance Director/Treasurer, Village of Mount Prospect, 50 South Emerson, Mount Prospect, Illinois 60056. (See independent auditor's report.) MD&A 11 VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF NET POSITION December 31, 2014 See accompanying notes to financial statements. -4- Primary Government Governmental Business -Type Activities Activities Total ASSETS Cash and investments $ 37,858,138 $ 4,997,405 $ 42,855,543 Receivables, net of allowance where applicable Property taxes 17,405,706 1,517,036 18,922,742 Other taxes 6,966,200 35,319 7,001,519 Utility customers - 1,284,463 1,284,463 Miscellaneous 909,468 5,230 914,698 Prepaid expenses 378,834 160,445 539,279 Inventory 498,793 492,632 991,425 Due from other governments 12,883,503 682 12,884,185 Internal balances 154,882 (154,882) - Deposits -insurance 1,599,995 - 1,599,995 Deposits with joint venture - 665,077 665,077 Net pension asset 448,716 - 448,716 Capital assets not being depreciated 11,468,262 18,156,454 29,624,716 Capital assets being depreciated (net of accumulated depreciation) 58,933,996 8,698,513 67,632,509 Total assets 149,506,493 35,858,374 185,364,867 DEFERRED OUTFLOWS OF RESOURCES Unamortized loss on refunding 243,321 - 243,321 Total deferred outflows of resources 243,321 - 243,321 LIABILITIES Accounts payable 1,631,143 891,846 2,522,989 Accrued payroll 436,332 33,558 469,890 Accrued interest payable 150,173 - 150,173 Retainage payable 19,442 30,167 49,609 Claims payable 929,486 - 929,486 Other payables 96,036 96,036 Due to fiduciary funds 104,147 - 104,147 Unearned revenue 923,721 53,212 976,933 Due to other governments 132 - 132 Noncurrent liabilities Due within one year 3,741,866 45,500 3,787,366 Due in more than one year 84,262,549 214,273 84,476,822 Total liabilities 92,295,027 1,268,556 93,563,583 DEFERRED INFLOWS OF RESOURCES Deferred revenue 17,383,255 - 17,383,255 Total deferred inflows of resources 17,383,255 - 17,383,255 NET POSITION Net investment in capital assets 46,326,047 26,854,967 73,181,014 Restricted for Highways and streets 1,397,365 - 1,397,365 Public safety - police 204,693 204,693 Public safety - fire 282,774 282,774 Economic development 655,404 655,404 Debt service 130,078 130,078 Refuse disposal 1,516,191 - 1,516,191 Unrestricted (10,441,020) 7,734,851 (2,706,169) TOTAL NET POSITION $ 40,071.532 $ 34,589,818 $ 74,661,350 See accompanying notes to financial statements. -4- FUNCTIONS/PROGRAMS PRIMARY GOVERNMENT Governmental Activities General government Public safety Highways and streets Health Welfare Culture and recreation Interest Total governmental activities Business -Type Activities Water and sewer Parking Total business -type activities VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2014 Program Revenues Operating Capital Charges Grants and Grants and Expenses for Services Contributions Contributions $ 10,171,883 $ 7,785,745 $ - $ 140,181 30,812,251 1,712,860 31,391 - 19,923,120 414,316 1,849,655 4,591,946 - - 1,844,911 42,069 284,158 425,217 473,026 - 2,899,466 - 43,832 70,668,794 10,428,016 2,209,036 140,181 13,779,500 11,970,681 373,498 329,988 254,784 - 14,109,488 12,225,465 373,498 TOTAL PRIMARY GOVERNMENT $ 84,778,282 $ 22,653,481 $ 2,209,036 $ 513,679 -5- Net (Expense) Revenue and Change in Net Position Primary Government Governmental Business -Type Activities Activities Total $ (2,245,957) $ $ (2,245,957) (29,068,000) (29,068,000) (17,659,149) (17,659,149) (4,591,946) (4,591,946) (1,518,684) (1,518,684) 47,809 47,809 (2,855,634) (2,855,634) (57,891,561) (57,891,561) (1,435,321) (1,435,321) (75,204) (75,204) NET POSITION, JANUARY 1, RESTATED 45,138,822 34,410,285 79,549,107 NET POSITION, DECEMBER 31 $ 40,071,532 $ 34,589,818 $ 74,661,350 See accompanying notes to financial statements. -6- (1,510,525) (1,510,525) (57,891,561) (1,510,525) (59,402,086) General Revenues Taxes Property 19,745,699 1,508,704 21,254,403 Utility 4,093,596 - 4,093,596 Business district 331,933 - 331,933 Home rule sales 5,320,795 100,697 5,421,492 Food and beverage 1,096,795 - 1,096,795 Real estate transfer 954,644 954,644 Municipal motor fuel 699,499 699,499 Hotel/motel 469,607 469,607 Other 201,059 201,059 Intergovernmental - unrestricted State sales and use tax 14,310,773 14,310,773 Income tax 5,186,155 5,186,155 Replacement tax 407,764 407,764 Charitable games tax 4,812 - 4,812 Investment income (46,496) 3,189 (43,307) Miscellaneous 47,636 77,468 125,104 Total 52,824,271 1,690,058 54,514,329 CHANGE IN NET POSITION (5,067,290) 179,533 (4,887,757) NET POSITION, JANUARY 1 75,352,589 34,410,285 109,762,874 Prior period adjustment (30,213,767) - (30,213,767) NET POSITION, JANUARY 1, RESTATED 45,138,822 34,410,285 79,549,107 NET POSITION, DECEMBER 31 $ 40,071,532 $ 34,589,818 $ 74,661,350 See accompanying notes to financial statements. -6- h 'O O O N V N N O O ,-. 00 �c tr) U� t n N v1 00 O 00 C r 00 O �O O v1 h O C 00 N N 69 OU � 000 c If) ' O O ' V ' 00 V 00 �O C 00 h �O h O N vi .-� 69 �O vi M h M N M v1 � s d � y c � i � � C s v 0 o y (� C O o z a 11 � d •V w O w o O C7 a s a C' h 'O O O N V N N O O ,-. 00 �c tr) U� t n N v1 00 O 00 C r 00 O �O O v1 h O C 00 N N 69 OU � 000 c If) ' O O ' V ' 00 V 00 �O C 00 h �O h O N vi .-� 69 �O vi M h M N M v1 N 69 N h V O N V In °, C--00 00 m o N V �O 00 00 O 00 � v �c n In Gs M v o o o � M N 69 N h V O N V In °, C--00 00 m o N V �O 00 00 O 00 � v �c n In Gs 'O �O N v1 r' N h O, In O In � N In In m V � 00 N O 0� N r n m v N m n O In °, 3- n N �c °, r` O r` ° °, m 0o v v Cl v o r ° " 0 °, 00 M v 00 m vi 00 � � �c r` v N In O �c In t - 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W Q U d a¢¢xO�QQ x � A�� wz VILLAGE OF MOUNT PROSPECT, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION December 31, 2014 FUND BALANCES OF GOVERNMENTAL FUNDS $ 34,305,672 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 70,402,258 Less internal service funds included below (4,546,016) The net pension asset is not a current financial resource and, therefore, is not reported in the governmental funds 448,716 Interest payable is not due and payable in the current period and, therefore, not reported in the governmental funds (150,173) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds General obligation bonds payable (48,075,000) Loan contracts payable (721,927) Installment notes payable (2,340,000) Business district limited tax note payable (31,514,427) Compensated absences payable (3,335,452) Net pension obligation (628,724) Unamortized bond premium (358,628) Unamortized loss on refunding 243,321 Net other postemployment benefits obligation (890,697) Long-term intergovernmental receivables are not available to pay for current period expenditures and, therefore, are deferred inflows of resources in the governmental funds 11,435,000 The net position of the internal service funds are included in the governmental activities in the statement of net position 15,797,609 NET POSITION OF GOVERNMENTAL ACTIVITIES $ 40,071,532 See accompanying notes to financial statements. -9- H � V oo v'i x r v1 r o O r v1 0o r M �0 d, N O d, N I'Dti M Qn w w I— I'D o , W')� o�oN H a cn W W O v'i r` 7 01 01 l0 N r 00 a Q' N n 00 V O N N N V O I'0 'nm V oo v'i x r v1 r o r a r v1 0o r M �0 d, N O d, N I'Dti 00 r- I— I'D o , W')� o�oN v',r M p 4 O r 0 m O �0 .- O vi v'i r` 7 01 01 l0 N r 00 N n 00 V O d1 0 O 00 V W 00 -00 �� m 00 kn r kq ' O V O N ' ' M ' I'0 00 V V O O � ti M r 00 00 a 00 a, U U ID CC b4 r N O V N 0 d M 00 � d1 r V M d1 N V1 O d1 a3 y Ua3 N W M 00 r cn O �F� /1 F�riI F�riI 00 N /1 W a 0 a 4 U w 4 N M V1 O N 01 D1 r 09 Or O kr i i i � i i i i i i i kr r- 1— r 0 00 N r M V 00 N O 0 d 0' O N .- ti v c i O r V N M O O O N m V M M � N Nx O O to I'0 00 O N r 0 M r M \O 00 N� r O x 00 01 00 00 00 ,-� m I— M r 00 N � d1 V'1 V'1 V V'1 O V'1 N V �0 r` 00 O V I'D O 01 M 0', N r I'0 00 M N O V'1 00 N M V1 V O 01 V V'1 N 7T V r N 0 W W w a3 U U ID CC �i CZ3 by a3 jl a3 y Ua3 W a3 cn �F� /1 F�riI F�riI u /1 W a 0 a 4 U w 4 U U Q CD � CIA G, N v O I'D o N v o � � 00 N 00 0 N N V 00 M M M EF? Ef3 rO N 00 O ' z y �� � N oy NN CD 00 oll 0 0 o � N V EF? Ef3 d A � b4 Ef3 00 O O C� M 00 y � A N b9CD 6i V 00 N S. h 00 v � 00 00 b4 b4 w M w z z VILLAGE OF MOUNT PROSPECT, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2014 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 3,423,226 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures; however, they are capitalized and depreciated in the statement of activities 106,246 The loss on disposal of capital assets is shown as an increase of expense on the statement of activities (686) The issuance of long-term debt and related costs are shown on the financial statements as other financing sources (uses) and current expenditures, but are recorded as long-term liabilities and deferred outflows of resources on the government -wide statements Issuance of bonds (6,290,000) Premium on issuance of bonds (294,697) Depreciation in the statement of activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds (3,996,643) 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 2,987,587 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds Increase in accrued interest payable (990,030) Amortization of accounting loss on refunding (30,415) Amortization of premium 35,697 Increase in compensated absences 231,423 Increase in net pension obligation (15,275) Increase in net pension asset 11,379 Increase in net other postemployment benefits obligation (315,412) Revenues in the statement of activities that are not available in governmental funds are not reported as a revenue in governmental funds until received (1,140,000) The change in net position of the internal service funds is reported with governmental activities 1,210,310 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ (5,067,290) See accompanying notes to financial statements. -12- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2014 Governmental Business -Type Activities Activities Rater and Nonmajor Internal Sewer Enternrise Total Service CURRENT ASSETS Cash and investments $ 4,697,147 $ 300,258 $ 4,997,405 $ 10,476,211 Receivables Property taxes 1,517,036 - 1,517,036 - Accounts - billed 568,043 568,043 Accounts - unbilled 716,420 - 716,420 Other taxes - 35,319 35,319 - Other 5,230 - 5,230 1,958 Inventories 492,632 - 492,632 290,941 Prepaid expenses 159,856 589 160,445 102,109 Due from other governments 682 - 682 11,439 Total current assets 8,157,046 336,166 8,493,212 10,882,658 NONCURRENT ASSETS Deposits - insurance - - - 1,599,995 Deposit with joint venture 665,077 665,077 - Subtotal noncurrent assets 665,077 - 665,077 1,599,995 Capital assets Capital assets not being depreciated 17,924,100 232,354 18,156,454 768,303 Capital assets being depreciated, cost 27,458,078 364,800 27,822,878 11,829,702 Accumulated depreciation (18,759,565) (364,800) (19,124,365) (8,051,989) Net capital assets 26,622,613 232,354 26,854,967 4,546,016 Total noncurrent assets 27,287,690 232,354 27,520,044 6,146,011 Total assets 35,444,736 568,520 36,013,256 17,028,669 CURRENT LIABILITIES Accounts payable 887,613 4,233 891,846 58,317 Accrued payroll 32,237 1,321 33,558 15,916 Retainage payable 30,167 - 30,167 - Claims payable - - - 929,486 Unearned revenue 53,212 53,212 - Due to other funds 154,882 154,882 - Other payables - - - 87,781 Compensated absences payable 44,922 578 45,500 25,863 Total current liabilities 994,939 214,226 1,209,165 1,117,363 LONG-TERM LIABILITIES Compensated absences payable 179,688 2,311 181,999 103,450 Net other postemployment benefits obligation 29,705 2,569 32,274 10,247 Total long-term liabilities 209,393 4,880 214,273 113,697 Total liabilities 1,204,332 219,106 1,423,438 1,231,060 NET POSITION Investment in capital assets 26,622,613 232,354 26,854,967 4,546,016 Unrestricted 7,617,791 117,060 7,734,851 11,251,593 TOTAL NET POSITION $ 34,240,404 $ 349,414 $ 34,589,818 $ 15,797,609 See accompanying notes to financial statements. - 13 - VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2014 Governmental Business -Type Activities Activities Water and Nonmajor Internal Sewer Enterprise Total Service OPERATING REVENUES Charges for services $ 11,970,681 $ 254,784 $ 12,225,465 $ 9,985,317 Contributions - - - 1,307,936 Miscellaneous - - - 32,224 Total operating revenues OPERATING EXPENSES Administration and maintenance Insurance and claims Depreciation Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) 11,970,681 254,784 12,225,465 11,325,477 13,312,623 329,988 13,642,611 2,578,657 - - - 7,020,470 466,877 - 466,877 591,351 13,779,500 329,988 14,109,488 10,190,478 (1,808,819) (75,204) (1,884,023) 1,134,999 Property taxes 1,508,704 - 1,508,704 - Home rule sales tax - 100,697 100,697 - Investment income 3,100 89 3,189 10,277 Other income 79,470 - 79,470 - Gain (loss) on disposal of capital assets (2,002) - (2,002) 65,034 Total non-operating revenues (expenses) 1,589,272 100,786 1,690,058 75,311 INCOME (LOSS) BEFORE CAPITAL GRANTS AND CONTRIBUTIONS CAPITAL GRANTS AND CONTRIBUTIONS CHANGE IN NET POSITION (219,547) 25,582 (193,965) 1,210,310 373,498 - 373,498 - 153,951 25,582 179,533 1,210,310 NET POSITION, JANUARY 1 34,086,453 323,832 34,410,285 14,587,299 NET POSITION, DECEMBER 31 $ 34,240,404 $ 349,414 $ 34,589,818 $ 15,797,609 See accompanying notes to financial statements. -14- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2014 Governmental Business -Type Activities Activities Water and Nonmajor Internal Sewer Enterprise Total Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 11,856,875 $ 284,587 $ 12,141,462 $ 1,310,560 Receipts from interfund services - - - 9,969,067 Receipts from miscellaneous revenues 81,257 - 81,257 48,791 Payments to suppliers (10,657,488) (241,300) (10,898,788) (9,296,503) Payments to employees (2,884,454) (95,616) (2,980,070) (1,389,379) Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Home rule sales taxes Interfund transactions Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets Acquisition of capital assets Net cash from capital and related financing activities (1,603,810) (52,329) (1,656,139) 642,536 1,513,475 - 1,513,475 - - 93,411 93,411 - - (57,721) (57,721) - 1.513.475 35.690 1.549.165 - - - - 122,182 (598,059) - (598,059) (1,129,134) (598,059) - (598,059) (1,006,952) CASH FLOWS FROM INVESTING ACTIVITIES Investment income 3,100 89 3,189 10,277 Net cash from investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 3,100 89 3,189 10,277 (685,294) (16,550) (701,844) (354,139) 5,382,441 316,808 5,699,249 10,830,350 $ 4,697,147 $ 300,258 $ 4,997,405 $ 10,476,211 (This statement is continued on the following page.) -15- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS For the Year Ended December 31, 2014 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation Other income Changes in assets and liabilities Receivables Inventories Prepaid expenses Deposits Accounts payable and retainage payable Accrued payroll and compensated absences Net other postemployment benefits obligation Unearned revenues Claims payable NET CASH FROM OPERATING ACTIVITIES CASH AND INVESTMENTS Cash and cash equivalents Investments TOTAL CASH AND INVESTMENTS NONCASH TRANSACTIONS Capital Contributions Governmental Business -Type Activities Activities Water and Nonmajor Internal Sewer Enterprise Total Service $ (1,808,819) $ (75,204) $ (1,884,023) $ 1,134,999 466,877 - 466,877 591,351 79,470 - 79,470 - (112,019) - (112,019) 2,941 (245,128) - (245,128) 390 (151,356) (589) (151,945) (28,489) (1,736) - (1,736) (1,078,185) 287,120 (5,241) 281,879 27,291 (128,515) (1,989) (130,504) (90,920) 10,296 891 11,187 3,551 - 29,803 29,803 - - - - 79,607 $ (1,603,810) $ (52,329) $ (1,656,139) $ 642,536 $ 4,697,147 $ 300,258 $ 4,997,405 $ 10,476,211 $ 4,697,147 $ 300,258 $ 4,997,405 $ 10,476,211 $ 373,498 $ - $ 373,498 $ - See accompanying notes to financial statements. -16- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2014 ASSETS Cash and cash equivalents Investments State and local obligations U.S. Government and agency obligations Corporate bonds and obligations Mutual funds Receivables, net of allowances Accrued interest Prepaids Due from other funds Other receiveables Total assets LIABILITIES Accounts payable Deposits payable Other liabilities Total liabilities NET POSITION HELD IN TRUST FOR PENSION BENEFITS Pension Trust Agency $ 2,290,788 $ 1,209,488 3,836,892 - 24,494,544 - 15,469,079 - 69,000,184 - 237,096 - 2,502 - 104,147 - 309 - 115,435,541 $ 1,209,488 47,277 $ - - 1,209,488 47,277 $ 1,209,488 $ 115,388,264 See accompanying notes to financial statements. -17- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2014 ADDITIONS Contributions Employer Participants Other $ 5,390,341 1,495,747 50 Total contributions 6,886,138 Investment income Interest earned 1,439,426 Net change in fair value 6,557,481 Less investment expenses (187,793) Net investment income 7,809,114 Total additions 14,695,252 DEDUCTIONS Administration 123,271 Benefits and refunds 8,276,108 Total deductions 8,399,379 NET INCREASE 6,295,873 NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 109,092,391 December 31 $ 115,388,264 See accompanying notes to financial statements. -18- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2014 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Mount Prospect, Illinois (the Village) was incorporated in 1917. The Village operates under the Council/Manager form of government. The Village's major operations include public works, finance, police, fire, community development, human services, and communications. The financial statements of the Village have been prepared in conformity with accounting principles generally accepted in the United States of America (hereinafter referred to as generally accepted accounting principles (GAAP)), as applied to government units. 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 Village's accounting policies are described below. a. Reporting Entity The Village is a municipal corporation governed by an elected mayor and a six - member board of trustees. In determining the financial reporting entity, the Village complies with the provisions of GASB Statement No. 61, The Financial Reporting Omnibus an Amendment of GASB Statement No. 14 and No. 34, and includes all component units that have a significant operational or financial relationship with the Village. There are no component units for which the Village is considered to be financially accountable for. The Village's financial statements include two pension trust funds. Police Pension Employees Retirement System The Village's sworn police employees participate in the Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed by a five -member pension board. Two members appointed by the Village's President, one elected pension beneficiary, and two elected police employees constitute the pension board. The participants are required to contribute a percentage of salary as established by state statute and the Village is obligated to fund all remaining PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of the Village's contribution levels. Although it is legally separate from the Village, PPERS is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the Village's police employees. PPERS is reported as a pension trust fund. -19- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) Firefighters' Pension Employees Retirement System The Village's sworn full-time firefighters participate in the Firefighters' Pension Employees Retirement System (FPERS). FPERS functions for the benefit of these employees and is governed by a five -member pension board. Two members appointed by the Village's President, one elected pension beneficiary, and two elected from active participants of the Fund constitute the pension board. The participants are required to contribute a percentage of salary as established by state statute and the Village is obligated to fund all remaining FPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it is legally separate from the Village, FPERS is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the Village's sworn full-time firefighters. FPERS is reported as a pension trust fund. b. Fund Accounting The Village uses funds to report on its financial position, changes in its financial position, and cash flows. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self -balancing set of accounts. The minimum number of funds are maintained consistent with legal and managerial requirements. Funds are classified into the following categories: governmental, proprietary, and fiduciary. Governmental funds are used to account for all or most of a government's general activities, including the collection and disbursement of restricted or committed monies (special revenue funds), the funds committed, restricted, or assigned for the acquisition or construction of capital assets (capital projects funds), and the funds committed, restricted, or assigned for the servicing of long-term debt (debt service funds). The general fund is used to account for all activities of the general government not accounted for in some other fund. -20- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting (Continued) Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the Village (internal service funds). Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the Village. The Village utilizes pension trust funds and agency funds which are generally used to account for assets that the Village holds in a fiduciary capacity or on behalf of others as their agent. 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 Village. The effect of material interfund activity has been eliminated from these statements. Interfund services provided and used are not eliminated on 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. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds: The General Fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund. -21- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Government -Wide and Fund Financial Statements (Continued) The Village reports the following major governmental funds (Continued): The Refuse Disposal Fund is a special revenue fund used to account for the revenues and expenditures associated with providing solid waste collection services. Financing is provided by restricted property taxes, user fees, and recycling income. The Village has elected to present the Refuse Disposal Fund as a major fund. The Debt Service Fund is used to account for the servicing of general long- term debt not being financed by proprietary funds. The Flood Control Construction Fund is used to account for the resources to implement flood control projects throughout the Village. The Street Improvement Construction Fund is used to account for the resources to reconstruct Village streets. The Village reports the following major proprietary fund: The Water and Sewer Fund accounts for the activities of the water and sewer operations. The Village operates the sewerage treatment plant, sewerage pumping stations and collection systems, and the water distribution system. The Village reports the following internal service funds: Internal Service Funds account for operations that provide services to other departments or agencies of the Village, or to other governments, on a cost - reimbursement basis. The Computer Replacement Fund accounts for the acquisition of village computer hardware. Financing is being provided by charges to various village funds. The Risk Management Fund accounts for the servicing and payment of claims for liability, property, casualty coverage, workers' compensation, and medical benefits. Financing is being provided by charges to the various village funds. The Vehicle Replacement Fund accounts for the acquisition and depreciation of village vehicles. Financing is being provided by charges to the General, Water and Sewer, Parking System Revenue, and Village Parking System. The Vehicle Maintenance Fund accounts for the maintenance and repair of all village vehicles except Fire Department vehicles. Financing is being provided by charges to various village funds. -22- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Government -Wide and Fund Financial Statements (Continued) The Village reports the following fiduciary funds: The Village reports Pension Trust Funds as fiduciary funds to account for the Police Pension Fund and Firefighters' Pension Fund. The Village reports the following agency funds: Escrow Deposit, Flexcomp Escrow, and Library Bonds Escrow as fiduciary funds. d. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e., intended to finance). Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues and expenses are directly attributable to the operation of the proprietary funds. Non-operating revenue/expenses are incidental to the operations of these funds. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, generally 60 days except for sales taxes, income taxes, and telecommunication taxes which use 90 days. The Village recognizes property taxes when they become both measurable and available in the year for which they are levied (i.e., intended to finance). Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as expenditures when due. Sales taxes owed to the state at year end, franchise taxes, licenses, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and are recognized as revenues of the current fiscal period. Income and motor fuel taxes and fines collected and held by the state or county at year end on behalf of the Village also are recognized as revenue. Fines and permits revenues are not susceptible to accrual because generally they are not measurable until received in cash. -23- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) In applying the susceptible to accrual concept to intergovernmental revenues (e.g., federal and state grants), the legal and contractual requirements of the numerous individual programs are used as guidelines. There are, however, essentially two types of revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the Village; therefore, revenues are recognized based upon the expenditures recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and are generally revocable only for failure to comply with prescribed eligibility requirements, such as equal employment opportunity. These resources are reflected as revenues at the time of receipt or earlier if they meet the availability criterion. The Village reports unearned revenue and unavailable/deferred revenue on its financial statements. Unavailable revenues arise when a potential revenue does not meet both the measurable and available criteria for recognition in the current period, under the modified accrual basis of accounting. Deferred revenues arise when property taxes levied are intended to finance the next fiscal year. Unearned revenue arises when a revenue is measurable but not earned under the accrual basis of accounting. Unearned revenues also arise when resources are received by the Village before it has a legal claim to them or prior to the provision of services, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the liability and deferred inflows of resource for unearned and unavailable/deferred revenue are removed from the financial statements and revenue is recognized. e. Cash and Investments For purposes of the statement of cash flows, the Village's proprietary funds consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. f Investments Investments with a maturity of less than one year when purchased and non-negotiable certificates of deposit are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased and all investments of the pension trust funds are stated at fair value. Fair value is based on prices listed on national exchanges as of December 31 for debt and equity securities. -24- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) g. Interfund Receivables/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." Advances are offset by nonspendable fund balance in applicable governmental funds. Interfund service transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. h. Inventories Inventories are valued at cost, which approximates market, using the average cost method. The costs of governmental fund inventories are recorded as expenditures when consumed rather than when purchased. Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. Prepaid items/expenses are recorded as expenditures/expenses when consumed rather than when purchased. j. Restricted (Noncurrent) Assets Certain deposits of the Water and Sewer Fund are recorded as restricted assets because their use is restricted by an intergovernmental agreement with the Northwest Suburban Municipal Joint Action Water Agency. Also, certain deposits of the Risk Management Fund are recorded as restricted assets because their use is restricted by an agreement with the various third party administrators. -25- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets, other than infrastructure, buildings and improvements, purchased or acquired with an original cost of over $20,000 and infrastructure, buildings and improvements with an original cost of over $50,000 are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. The costs of normal maintenance and repairs, including street overlays, that do not add to the value or service capacity of the asset or materially extend asset lives, are not capitalized. Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are capitalized at estimated fair market value on the date donated. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and improvements 20-50 Machinery and equipment 2-20 Vehicles 2-20 Infrastructure 15-50 Compensated Absences Vested or accumulated vacation and sick leave are reported as an expenditure 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 proprietary funds and governmental activities are recorded as an expense and liability of those funds as the benefits accrue to employees. -26- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In. Rebatable Arbitrage The Village reports rebatable arbitrage as a reduction of revenue. Where applicable, any liability for rebatable arbitrage is reported in the fund in which the excess investment income was recorded. n. 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, as well as gains (losses) on refundings, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount and gains (losses) on refundings. Bond issuance costs are reported as expenses at the time of issuance. In the fund financial statements, governmental funds recognize bond premiums and discounts 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. o. Property Taxes Property taxes for 2014 attach as an enforceable lien on January 1, 2014 on property values assessed as of the same date. Taxes are levied by December of the fiscal year (by passage of a Tax Levy Ordinance). Tax bills are prepared by the County and issued on or about February 1, 2015 and August 1, 2015 and are payable in two installments, on or about March 1, 2015 and September 1, 2015. The County collects such taxes and remits them periodically. The allowance for uncollectible taxes has been stated at 2% of the tax levy, to reflect actual collection experience. Since the 2014 levy is intended to fund the 2015 fiscal year, the levy has been recorded as a receivable and deferred inflow of resources. p. 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, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial -27- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) p. Deferred Outflows/Inflows of Resources (Continued) position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. q. Fund Balances/Net Position 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 a specific purpose, or externally imposed by outside entities. None of the restricted fund balance resulted from enabling legislation adopted by the Village. Committed fund balance is constrained by formal actions of the Village's Board, which is considered the Village's highest level of decision-making authority. Formal actions include ordinances approved by the Board. Assigned fund balance represents amounts constrained by the Village's intent to use them for a specific purpose. The authority to assign fund balance has been delegated to the Village Manager through the fund balance policy adopted by the Village Board. Any residual fund balance of the General Fund and any deficit in other governmental funds is reported as unassigned. The Village'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 Village considers committed funds to be expended first followed by assigned and then unassigned funds. The Village's policy states that the General Fund should maintain an unrestricted fund balance level between 20% and 30% of the subsequent fiscal year's expenditures, the special revenue funds (except the CDBG Fund) should maintain a fund balance level between 10% and 25% of the annual budgeted expenditures, not including capital, debt service and transfers, the Debt Service Fund should maintain a fund balance level at a maximum of the amount of the next principal and interest payment due, and the Capital Projects Fund should maintain a fund balance level between 25% and 50% of the five-year average for capital expenditures by the fund to a maximum of $1 million. 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 book value of capital assets less any long-term debt issued to acquire or construct the capital assets. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) r. Use of 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, deferred outflows of resources, liabilities and deferred inflows of resources 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. 2. DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds, except the pension trust funds. Each fund's portion of this pool is displayed on the financial statements as "cash and investments." In addition, investments are separately held by several of the Village's funds. The deposits and investments of the pension trust funds are held separately from those of other funds. Village Deposits and Investments The Village's investment policy authorizes the Village to invest in all investments allowed by Illinois Compiled Statutes. These include deposits/investments in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States Government or agreements to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, Illinois Funds (created by the Illinois State Legislature under the control of the State Comptroller that maintains a $1 per share value which is equal to the participants fair value), and Illinois Metropolitan Investment Fund (IMET). The Village's investment policy does limit its deposits to financial institutions that are members of the FDIC system and are capable of posting collateral for amounts in excess of FDIC insurance. It is the policy of the Village 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 Village 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 are, in order of priority, legality, safety of principal, liquidity, and rate of return. -29- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) Village Deposits and Investments (Continued) Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Village's deposits may not be returned to it. The Village's investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 105% of the fair market value of the funds secured, with the collateral witnessed by a written collateral agreement and held by an independent third party. Investments 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 Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for short and long-term cash flow needs while providing a reasonable rate of return based on the current market. Unless matched to a specific cash flow, maturities should not exceed two years from the date of purchase. Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The Village limits its exposure to credit risk by permitting investments in only those securities allowed under law and by specifically prohibiting investments in leveraged or derivative securities. 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, the price for which the investment could be sold. Illinois Metropolitan Investment Fund (IMET) is a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an investment company. Investments in IMET are valued at IMET's share price, the price for which the investment could be sold. -30- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) Village Deposits and Investments (Continued) Investments (Continued) Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Village will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Village's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by an independent third party custodian and evidenced by safekeeping receipts and a written custodial agreement. Illinois Funds, money market mutual funds, and IMET are not subject to custodial credit risk. Concentration of credit risk is the risk that the Village has a high percentage of its investments invested in one type of investment. The Village's investment policy requires diversification of investments to avoid unreasonable risk. No financial institution shall hold more than 50% of the Village's investment portfolio, exclusive of any securities held in safekeeping; Illinois Funds shall not exceed 50% of the investment portfolio; and IMET shall not exceed 50% of the investment portfolio. At year end, the Village's investments are in compliance with its investment policy as it relates to concentration risk. 3. RECEIVABLES The following receivables are included in due from other governments on the statement of net position: GOVERNMENTAL ACTIVITIES Court fines $ 20,540 Mount Prospect Public Library 11,441,739 Grants 1,020,285 TIF surplus 252,075 Miscellaneous 52,234 TOTAL $ 12,786,873 The Series 2006 General Obligation Refunding Bonds and the Series 2011A General Obligation Bonds were issued to provide financing to the Mount Prospect Public Library (the Library). The Library is repaying these bonds issued by the Village. Future principal and interest payments owed from the Library are as follows, with the principal portion recorded as an intergovernmental receivable in the debt service fund/governmental activities. -31- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. RECEIVABLES (Continued) The annual debt service requirements are as follows: Year Ending 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL 4. CAPITAL ASSETS Principal Interest $ 1,155,000 $ 413,356 1,280,000 392,044 1,360,000 358,266 1,410,000 305,906 1,465,000 250,916 1,525,000 193,048 1,585,000 132,048 1,655,000 67,856 $ 11,435,000 $ 2,113,440 Capital asset activity for the Village for the year ended December 31, 2014 was as follows: GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land (including right-of-ways) Construction in progress Total capital assets not being depreciated Capital assets being depreciated Buildings Improvements other than buildings Vehicles Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for Buildings Improvements other than buildings Vehicles Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET Balances Balances January 1 Additions Retirements December 31 $ 10,291,446 $ - $ - $ 10,291,446 601,934 823,457 248,575 1,176,816 10,893,380 823,457 248,575 11,468,262 38,009,332 - - 38,009,332 384,000 - - 384,000 11,577,570 653,591 606,573 11,624,588 1,250,776 - - 1,250,776 88,925,070 51,092 56,175 88,919,987 140,146,748 704,683 662,748 140,188,683 8,035,836 756,680 - 8,792,516 297,600 19,200 - 316,800 7,804,918 575,113 505,239 7,874,792 699,151 100,100 - 799,251 60,389,919 3,136,901 55,492 63,471,328 77,227,424 4,587,994 560,731 81,254,687 62,919,324 (3,883,311) 102,017 58,933,996 $ 73,812,704 $ (3,059,854) $ 350,592 $ 70,402,258 -32- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS (Continued) BUSINESS -TYPE ACTIVITIES Capital assets not being depreciated Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated Buildings and improvements Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for Buildings and improvements Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net BUSINESS -TYPE ACTIVITIES CAPITAL ASSETS, NET Balances Balances January 1 Additions Retirements December 31 $ 17,551,172 $ - $ - $ 17,551,172 231,018 562,782 188,518 605,282 17,782,190 562,782 188,518 18,156,454 4,694,456 181,360 - 4,875,816 3,646,309 415,933 - 4,062,242 18,892,491 - 7,671 18,884,820 27,233,256 597,293 7,671 27,822,878 2,659,147 76,587 - 2,735,734 2,731,965 142,360 - 2,874,325 13,272,045 247,930 5,669 13,514,306 18,663,157 466,877 5,669 19,124,365 8,570,099 130,416 2,002 8,698,513 $ 26,352,289 $ 693,198 $ 190,520 $ 26,854,967 Depreciation expense was charged to functions/programs of the governmental activities as follows: GOVERNMENTAL ACTIVITIES General government Public safety Highways and streets Health and welfare Culture and recreation TOTAL -33 - $ 418,384 676,500 3,483,521 2,349 7,240 $ 4,587,994 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and injuries to the Village's employees. These risks along with medical claims for employees and retirees are provided for through a limited self-insurance program. The Village is self-insured for the first $25,000 for property claims, $2,000,000 for liability claims, $2,000,000 for errors and omissions, and $500,000 for workers' compensation claims. Commercial insurance is carried for amounts in excess of the self-insured amounts. There has been no significant reduction in coverage in any program from coverage in the prior year. For all programs, settlement amounts have not exceeded insurance coverage for the current or three prior years. The Village's self-insurance activities are reported in the Risk Management Fund which is an internal service fund. Premiums are paid into the Risk Management Fund by the departments of the General Fund and other funds based upon historical cost estimates. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Reported liabilities are actuarially determined and include an amount for claims that have been incurred but not reported. The total claims liability as of December 31, 2014 was $929,486. A reconciliation of claims liability for the current year and that of the preceding year follows: UNPAID CLAIMS, DECEMBER 31, 2012 Claims incurred - 2013 Claims payments - 2013 UNPAID CLAIMS, DECEMBER 31, 2013 Claims incurred - 2014 Claims payments - 2014 UNPAID CLAIMS, DECEMBER 31, 2014 Workers' General Auto Compensation Liability Total $ 3,500 $ 1,242,310 $ - $ 1,245,810 62,475 431,062 15,000 508,537 (25,673) (878,795) - (904,468) 40,302 794,577 15,000 849,879 - 694,923 739,192 1,434,115 40,205 668,111 646,192 1,354,508 $ 97 $ 821,389 $ 108,000 $ 929,486 a. High -Level Excess Liability Pool (HELP) The Village participates in the High -Level Excess Liability Pool (HELP). HELP is a public entity risk pool established by certain municipalities in Illinois to provide excess liability coverage ($12,000,000 of coverage after a $2,000,000 self-insurance retention). The Village's payments to HELP are displayed on the financial statements as expenditures/expenses in appropriate funds. -34- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT (Continued) a. High -Level Excess Liability Pool (HELP) (Continued) HELP was organized on April 1, 1987 with the initial agreement extended to April 30, 2018. The purpose of HELP is to act as a joint self-insurance pool for the purpose of seeking the prevention or lessening of liability claims for injuries to persons or property or claims for errors and omissions made against the members and other parties included within the scope of coverage of HELP. HELP is governed by a Board of Directors which consists of one appointed representative from each member municipality. Each director has an equal vote. The officers of HELP are appointed by the Board of Directors. The Board of Directors determines the general policy of HELP; makes all appropriations; approves contracts; adopts resolutions providing for the issuance of debt by HELP; adopts bylaws, rules, and regulations; and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the by-laws. The Village does not exercise any control over the activities of HELP beyond its representation on the Board of Directors. The Village of Elk Grove Village, Illinois (the initial Host Member) issued $5,000,000 of general obligation bonds in 1987 to provide initial funding for HELP. The bond proceeds were put into escrow. An intergovernmental agreement among HELP, the Village of Elk Grove Village, Illinois, and the members provided that HELP and its members were obligated to the Village of Elk Grove Village, Illinois for payment of principal and interest on the bonds until such bonds were retired. Additionally, each member was liable for its proportionate share of any default by other members. The obligations of HELP and its members are unconditional. The bonds were paid in full as of April 30, 1997. b. Intergovernmental Personnel Benefit Cooperative (IPBC) The Village participates in the Intergovernmental Personnel Benefit Cooperative (IPBC). IPBC is a public entity risk pool established by certain units of local government in Illinois to administer some or all of the personnel benefit programs (primarily medical, dental, and life insurance coverage) offered by these members to their officers and employees and to the officers and employees of certain other governmental, quasi governmental, and nonprofit public service entities. Management consists of a Board of Directors comprised of one appointed representative from each member. The officers of IPBC are chosen by the Board of Directors from among their membership. The Village does not exercise any control over the activities of IPBC beyond its representation on the Board of Directors. -35 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT (Continued) b. Intergovernmental Personnel Benefit Cooperative (IPBC) (Continued) IPBC acts as an administrative agency to receive, process, and pay such claims as may come within the benefit program of each member. IPBC maintains specific reinsurance coverage for claims in excess of $50,000 per individual employee participant. The Village pays premiums to IPBC based upon current employee participation and its prior experience factor with the pool. Current year overages and underages for the participation in the pool are adjusted into subsequent years experience factor for premiums. There were no significant changes in insurance coverages from the prior year and settlements did not exceed insurance coverage in any of the past three fiscal years. 6. LONG-TERM DEBT a. General Obligation Bonds The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. Any general obligation bonds issued for proprietary funds are reported in the proprietary funds if they are expected to be repaid from proprietary revenues. General obligation bonds have been issued for general governmental activities and for the Mount Prospect Public Library only. In addition, general obligation bonds have been issued to refund general obligation bonds. b. Installment Notes Payable The Village enters into installment notes payable to provide funds for acquisition of capital assets. Installment notes payable have been issued for the governmental activities. Installment notes payable are direct obligations and pledge the full faith and credit of the Village. C. Business District Limited Tax Note Payable The Village has issued a note payable related to a developer agreement. The limited tax note payable has been issued for the governmental activities and is a limited obligation of the Village, payable solely from certain tax revenues as set forth in the developer agreement. The developer agreement term will expire upon the earlier to occur of (a) the expiration of the term of any bonds issued by the Village which yield developer proceeds equal to the maximum reimbursement amount, (b) the date which all obligations under this agreement have been discharged, including, but not limited to, payments on any bonds issued by the Village and on the note payable, or (c) 35 years following the issuance of the note payable. After a final accounting is completed and any remaining amounts are paid to the developer, the note payable shall be marked "cancelled" and returned to the Village. -36- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long -Term Liabilities The following is a summary of changes in long-term debt for the year ended December 31, 2014: Balances Debt January 1, Retired by restated $10,000,000 General Obligation Bonds, Series 2006, due in annual installments of $450,000 to $1,655,000 plus interest at 3.75% to 4.10% through December 1, Debt 2022. Service $ 9,665,000 $ $10,000,000 General Obligation Bonds, Series 2009, due in annual installments of $200,000 to $1,955,000 plus interest at 3.005% to 4.500% through Debt December 1, 2028. Service 9,800,000 $3,430,000 General Obligation Refunding Bonds, Series 2009B, due in annual installments of $230,000 to $370,000 plus interest at 2.50% to Debt 3.75% through December 1, 2021. Service 2,635,000 $2,650,000 Taxable General Obligation Bonds, Series 2009C, due in annual installments of $25,000 to $1,000,000 plus interest at 3.00% to 5.75% through Debt December 1, 2029. Service 2,650,000 $4,100,000 General Obligation Bonds, Series 2011A, due in annual installments of $60,000 to $1,100,000 plus interest at 1.75% through Debt December 1, 2016. Service 2,910,000 $5,160,000 General Obligation Bonds, Series 2011B, due in annual installments from $40,000 to $775,000 plus interest Debt at 2.52% through December 1, 2020. Service 5,015,000 $2,975,000 General Obligation Bonds, Series 2012C, due in annual installments from $610,000 to $865,000 plus interest Debt at 3.10% through December 1, 2022. Service 1,745,000 -37- Current Balances Portion at Additions Reductions December 31 December 31 - $ 55,000 $ 9,610,000 $ 55,000 - - 9,800,000 - - 295,000 2,340,000 305,000 - 25,000 2,625,000 40,000 - 1,085,000 1,825,000 1,100,000 - 660,000 4,355,000 680,000 - - 1,745,000 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long -Term Liabilities (Continued) GOVERNMENTAL ACTIVITIES (Continued) $9,800,000 General Obligation Bonds, Series 2013, due in annual installments of $555,000 to $885,000 plus interest at 3.000% to 4.125% through December 1, 2033. $6,290,000 General Obligation Bonds, Series 2014, due in annual installments of $290,000 to $1,265,000 plus interest at 3% through December 1, 2023. Total bonds $3,695,354 IEPA Flood Loan Contract Payable of 1994 (L17-0744), due in semiannual installments of $126,134 to $246,050 plus interest at 3.36% through May 1, 2014. $1,711,672 IEPA Flood Loan Contract Payable of 1994 (1,17-0857), due in semiannual installments of $99,329 to $117,337 plus interest at 3.36% through December 10, 2014. $1,203,550 IEPA Flood Loan Contract Payable of 1997 (1,17-0855), due in semiannual installments of $62,285 to $79,035 plus interest at 2.89% through November 1, 2017. $1,760,422 IEPA Flood Loan Contract Payable of 1999 (1,17-1087), due in semiannual installments of $57,498 to $112,771 plus interest at 2.625% through June 3, 2019. Total IEPA flood loan installment notes payable $2,500,000 installment note payable of 2012, due in annual installments of $25,000 to $590,000 plus interest at 0.91% through December 1, 2019. Total installment notes payable Balances Current Debt January 1, Balances Portion at Retired by restated Additions Reductions December 31 December 31 Debt Service $ 9,800,000 $ - $ - $ 9,800,000 $ - Debt Service - 6,290,000 315,000 5,975,000 290,000 44,220,000 6,290,000 2,435,000 48,075,000 2,470,000 Debt Service 126,134 - 126,134 - - Debt Service 117,336 - 117,336 - - Debt Service 302,979 - 72,516 230,463 74,628 Debt Service 593,063 - 101,599 491,464 104,285 1,139,512 - 417,585 721,927 178,913 Debt Service 2,475,000 - 135,000 2,340,000 400,000 2,475,000 - 135,000 2,340,000 400,000 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long -Term Liabilities (Continued) Balances Current Debt January 1, Balances Portion at Retired by restated Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES (Continued) $25,000,000 Business District limited tax note payable of 2010, interest at 6.71% due in semiannual installments contingent upon sufficient pledged Business revenues. District $ 30,451,305 $ 1,063,122 $ - $ 31,514,427 $ - Total Business District limited tax note payable 30,451,305 1,063,122 - 31,514,427 - The following is a summary of changes in long-term liabilities during 2014: Balances Current Debt January 1, Balances Portion at Retired by restated Additions Reductions December 31 December 31 Compensated absences General $ 3,720,228 $ 488,583 $ 744,046 $ 3,464,765 $ 692,953 Net pension obligation General 613,449 15,275 - 628,724 - Net other postemployment benefit obligation General 581,981 318,963 - 900,944 - General obligation bonds Debt Service 44,220,000 6,290,000 2,435,000 48,075,000 2,470,000 Unamortized bond premium 99,628 294,697 35,697 358,628 - Loan contracts payable Debt Service 1,139,512 - 417,585 721,927 178,913 Installment notes payable Debt Service 2,475,000 - 135,000 2,340,000 400,000 Business District limited tax note Business payable District 30,451,305 1,063,122 - 31,514,427 - Total governmental activities 83,301,103 8,470,640 3,767,328 88,004,415 3,741,866 BUSINESS -TYPE ACTIVITIES Compensated absences* Net other postemployment benefit obligation* Total business -type activities TOTAL 231,962 41,929 46,392 227,499 45,500 21,087 11,187 - 32,274 - 253,049 53,116 46,392 259,773 45,500 $ 83,554,152 $ 8,523,756 $ 3,813,720 $ 88,264,188 $ 3,813,229 *Compensated absences and net other postemployment benefit obligation are retired by the Water and Sewer, Parking System Revenue and Village Parking System Funds. -39- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) e. Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Year Governmental Activities Ending General Obligation Bonds Loan Contracts Payable Installment Notes Payable December 31, Principal Interest Principal Interest Principal Interest 2015 $ 2,470,000 $ 1,756,288 $ 178,913 $ 18,345 $ 400,000 $ 21,294 2016 2,645,000 1,700,175 183,840 13,418 415,000 17,654 2017 2,775,000 1,628,342 188,903 8,355 420,000 13,878 2018 2,975,000 1,536,027 112,771 3,735 515,000 10,056 2019 3,240,000 1,434,540 57,500 754 590,000 5,369 2020 4,115,000 1,322,817 - - - - 2021 4,510,000 1,182,757 - - - - 2022 4,750,000 1,024,459 - - - - 2023 3,345,000 853,368 - - - - 2024 2,185,000 733,870 - - - - 2025 2,300,000 646,470 - - - - 2026 2,425,000 551,170 - - - - 2027 2,550,000 448,920 - - - - 2028 2,685,000 339,982 - - - - 2029 1,760,000 222,807 - - - - 2030 790,000 134,907 - - - - 2031 820,000 103,307 - - - - 2032 850,000 70,507 - - - - 2033 885,000 36,507 - - - - TOTAL $ 48,075,000 $ 15,727,220 $ 721,927 $ 44,607 $ 2,340,000 $ 68,251 The repayment of the Business District limited tax note payable is based on incremental tax revenue received. As such, there is no debt service to maturity schedule. .m VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) f. Legal Debt Margin The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin. "The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property ... (2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: ... indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum ... shall not be included in the foregoing percentage amounts." To date the General Assembly has set no limits for home rule municipalities. 7. CONTRACTUAL COMMITMENTS a. High -Level Excess Liability Pool The Village has committed to purchase excess liability insurance from HELP, a public entity risk pool for certain Illinois municipalities through April 30, 2018. There is no minimum annual commitment amount for the purchase of this insurance coverage. Future premiums will be calculated using the Village's allocation percentage. HELP's agreement provides that each year members will be assessed based on a formula utilizing miles of streets, number of vehicles, operating revenues, and full- time equivalent employees. The Village paid $79,755 to HELP in 2014. For 2015, the Village estimates it will pay $82,281. b. Solid Waste Agency of Northern Cook County (SWANCC) Annual payments to SWANCC are based on estimated tonnage of waste transported to SWANCC. It is assumed that there will be no material changes in deliveries to SWANCC. For 2015, the Village estimates it will pay SWANCC $1,210,081, with annual increases ranging from 0% to 3% through 2022. -41- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 8. INTERFUND ACTIVITY Due From/To Other Funds Receivable Fund Payable Fund Amount General Fiduciary Police Pension Firefighters' Pension TOTAL Parking System Revenue $ 154,882 154.882 General 56,708 General 47,439 104,147 The purpose of the significant Due From/To Other Funds is as follows: $ 259,029 • $154,882 due to the General Fund from Nonmajor Business -Type Funds (Parking System Revenue Fund). The balance represents an operating loan to support operations of the Parking System Revenue Fund. Although the cash shortage continues to be on going, the fund was able to reduce the amount in 2014. Funding alternatives that are being considered include a parking rate increase to eliminate the need for support and address the amount due. • $56,708 due to the Police Pension Fund from the General Fund. This was the contributions due for 2014 tax collections received in January and February 2015. • $47,439 due to the Fire Pension Fund from the General Fund. This was the contributions due for 2014 tax collections received in January and February 2015. 9. CONTINGENT LIABILITIES a. Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village's attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. -42- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9. CONTINGENT LIABILITIES (Continued) 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 Village expects such amounts, if any, to be immaterial. 10. JOINT VENTURES a. Solid Waste Agency of Northern Cook County The Village is a member of SWANCC which consists of 23 municipalities. SWANCC is a municipal corporation and public body politic and corporate established pursuant to the Intergovernmental Cooperation Act of the State of Illinois. SWANCC is empowered to plan, construct, finance, operate, and maintain a solid waste disposal system to serve its members. SWANCC is governed by a board of directors which consists of the mayor or president from each member municipality. Each director has an equal vote. The officers of SWANCC are appointed by the Board of Directors. The Board of Directors determines the general policy of SWANCC, makes all appropriations, approves contracts, provides for the issuance of debt, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the agency agreement or the by-laws. Complete financial statements can be obtained from the Solid Waste Agency of Northern Cook County administrative office at 1616 East Golf Road, Des Plaines, Illinois 60016 or online at www.swancc.org. SWANCC's outstanding bonds are revenue obligations. They are limited obligations of SWANCC with a claim for payment solely from and secured by a pledge of the revenues of the system and amounts in various funds and accounts established by SWANCC resolutions. The bonds are not the debt of any member. SWANCC has no power to levy taxes. Revenues of the system consist of (1) all receipts derived from solid waste disposal contracts or any other contracts for the disposal of waste; (2) all income derived from the investment of monies; and (3) all income, fees, service charges, and all grants, rents, and receipts derived by SWANCC from the ownership and operation of the system. SWANCC covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. -43- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) a. Solid Waste Agency of Northern Cook County (Continued) SWANCC has entered into solid waste disposal contracts with the member municipalities. The contracts are irrevocable and may not be terminated or amended except as provided for in the contract. Each member is obligated, on a "take or pay" basis, to deliver a minimum amount of solid waste to the system. The obligation of the Village to make all payments as required by this contract is unconditional and irrevocable, without regard to performance or nonperformance by SWANCC of its obligations under the contract. The contract does not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. In accordance with the contract, the Village made payments totaling $1,235,026 to SWANCC in 2014. The payments have been recorded in the Municipal Waste System Fund. The Village does not have an equity interest in SWANCC at December 31, 2014. b. Northwest Suburban Municipal Joint Action Water Agency (JAWA) Description of Joint Venture The Village is a member of JAWA which consists of seven municipalities. JAWA is a municipal corporation and public body politic and corporate established pursuant to the Intergovernmental Cooperation Act of the State of Illinois. JAWA is empowered to plan, construct, improve, extend, acquire, finance, operate, and maintain a water supply system to serve its members and other potential water purchasers. The seven members of JAWA and their percentage shares as of April 30, 2014 are as follows: TOTAL 100.00% These percentage shares are based upon formulae contained in the water supply agreement and are subject to change in future years based upon consumption by the municipalities. Percent Share Village of Elk Grove Village 16.64% Village of Hanover Park 8.87% Village of Hoffman Estates 16.77% Village of Mount Prospect 12.41% City of Rolling Meadows 7.37% Village of Schaumburg 27.21% Village of Streamwood 10.73% TOTAL 100.00% These percentage shares are based upon formulae contained in the water supply agreement and are subject to change in future years based upon consumption by the municipalities. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) b. Northwest Suburban Municipal Joint Action Water Agency (JAWA) (Continued) Description of Joint Venture (Continued) The members form a contiguous geographic service area which is located 15 to 30 miles northwest of downtown Chicago. Under the Agency Agreement, additional members may join JAWA upon the approval of each member. JAWA is governed by a board of directors which consist of one elected official from each member municipality. Each director has an equal vote. The officers of JAWA are appointed by the Board of Directors. The Board of Directors determines the general policy of JAWA, makes all appropriations, approves contracts for sale or purchase of water, provides for the issuance of debt, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the agency agreement or the by-laws. Complete financial statements can be obtained from the Northwest Suburban Municipal Joint Action Water Agency, 903 Brantwood Avenue, Elk Grove Village, Illinois 60007. Revenues of the system consist of: (a) all receipts derived from Water Supply Agreements or any other contract for the supply of water; (b) all income derived from the investment of monies; and (c) all income, fees, water service charges, and all rates, rents, and receipts derived by JAWA from the ownership and operation of the system and the sale of water. JAWA covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. JAWA has entered into water supply agreements with the seven -member municipalities for a term of 40 years, extending to 2022. The agreements are irrevocable and may not be terminated or amended except as provided for in the General Resolution. Each member is obligated, on a "take or pay" basis, to purchase or in any event to pay for a minimum annual quantity of water. JAWA has entered into an agreement with the City of Chicago (the City) under which the City has agreed to sell quantities of Lake Michigan water sufficient to meet the projected water needs of the members through the year 2020. The obligation of the Village to make all payments as required by this agreement is unconditional and irrevocable, without regard to performance or nonperformance by JAWA of its obligations under this agreement. -45- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) b. Northwest Suburban Municipal Joint Action Water Agency (JAWA) (Continued) Description of Joint Venture (Continued) The payments required to be made by the Village under this agreement shall be required to be made solely from revenues to be derived by the Village from the operation of the Waterworks and Sewerage System. Members are not prohibited by the agreement, however, from using other available funds to make payments under the agreement. This agreement shall not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. The obligation of the Village to make payments required by this agreement is payable from the Village's Water and Sewer Fund. In accordance with the joint venture agreement, the Village remitted $5,962,704 to JAWA for 2014. Deposits with JAWA in the amount of $665,077 represent amounts held for security for debt service. 11. OTHER POSTEMPLOYMENT BENEFITS a. Plan Description In addition to providing the pension benefits described, the Village 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 Village and can be amended by the Village 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 Village's governmental and business -type activities. b. Benefits Provided The Village 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 Village's three retirement plans. The retirees pay the blended premium. Upon a retiree becoming eligible for Medicare, the amount payable under the Village's health plan will be reduced by the amount payable under Medicare for those expenses that are covered under both. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) It. OTHER POSTEMPLOYMENT BENEFITS (Continued) b. Benefits Provided (Continued) All healthcare benefits are provided through the Village's health insurance plan. The benefit levels are the same as those afforded to active employees. Benefits include general inpatient and outpatient medical services; mental, nervous, and substance abuse care; and prescriptions. Upon a retiree reaching 65 years of age, Medicare becomes the primary insurer and the Village's plan becomes secondary. All retirees contribute 100% of the actuarially determined premium to the Plan. For the fiscal year ended December 31, 2014, retirees contributed $848,253. C. Membership At December 31, 2012 (latest information available), membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them Active employees TOTAL Participating employers d. Funding Policy 84 291 375 1 The Village 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 Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2014 and the two preceding years was as follows: Fiscal Annual Percentage of Year OPEB Employer Annual OPEB Net OPEB Ended Cost Contributions Cost Contributed Obligation 2012 $ 450,309 $ 609,856 135.43% $ 295,702 2013 583,180 275,814 47.29% 603,068 2014 607,350 287,447 47.33% 922,971 -47- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) It. OTHER POSTEMPLOYMENT BENEFITS (Continued) Annual OPEB Costs and Net OPEB Obligation (Continued) The net OPEB obligation as of December 31, 2014 was calculated as follows: Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost Contributions made Increase in net OPEB obligation Net OPEB obligation, beginning of year NET OPEB OBLIGATION, END OF YEAR $ 605,628 21,107 (19,385) 607,350 287.447 319,903 603.068 $ 922,971 Funded Status and Funding Progress: The funded status and funding progress of the Plan as of December 31, 2012 (latest information available) was as follows: Actuarial accrued liability (AAL) $ 7,201,300 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 7,201,300 Funded ratio (actuarial value of plan assets/AAL) 0.00% Covered payroll (active plan members) $ 24,540,441 UAAL as a percentage of covered payroll 29.34% 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. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) Annual OPEB Costs and Net OPEB Obligation (Continued) 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. In the December 31, 2012 actuarial valuation, the entry -age normal actuarial cost method was used. The actuarial assumptions included a 3.5% investment rate of return and an initial healthcare cost trend rate of 8.8% with an ultimate healthcare inflation rate of 5%. Both rates include a 3% inflation assumption and 4% wage inflation assumption. The actuarial value of assets was not determined as the Village has not advance funded its obligation. The Plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2012 was 30 years. 12. EMPLOYEE RETIREMENT SYSTEMS The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent multiple -employer public employee retirement system; the Police Pension Plan which is a single -employer pension plan; and the Firefighters' Pension Plan which is also a single -employer pension plan. The benefits, benefit levels, employee contributions, and employer contributions for all three plans are governed by Illinois Compiled Statutes (IL,CS) and can only be amended by the Illinois General Assembly. None of the pension plans issue separate reports on the pension plans. However, IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. a. Plan Descriptions Illinois Municipal Retirement Fund All employees (other than those covered by the Police or Firefighters' Pension Plans) 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 12/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire at age 62 (reduced benefits) or after age 67 (full benefits) with ten years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 12/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. Participating members are required to contribute 4.5% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund IMRF as specified by statute. The employer required contribution rate for calendar year 2014 was 12.15%. Police Pension Plan Plan Administration Police sworn personnel are covered by the Police Pension Plan which is a defined benefit single -employer pension plan. Although this is a single -employer pension plan, the defined benefits and employee and employer contributions levels are governed by Illinois Compiled Statutes (Chapter 40 - Article 5/3) and may be amended only by the Illinois legislature. The Village accounts for the Police Pension Plan as a pension trust fund. The plan is governed by a five -member pension board. Two members are appointed by the Village's President, one member is elected by pension beneficiaries, and two members are elected by active police employees. Plan Membership At December 31, 2014, the Police Pension Plan membership consisted of: Inactive plan members currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members TOTAL -50- 71 3 82 156 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Benefits Provided The Police Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January 1, 2012) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Police officers' salary for pension purposes is capped at $106,800, plus the lesser of 1/2 of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., 1/2% for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1 s1 after the police officer retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or 1/2 of the change in the Consumer Price Index for the proceeding calendar year. -51- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Contributions Employees are required by ILCS to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. Effective January 1, 2011, the Village has until the year 2040 to fund 90% of the past service cost for the Police Pension Plan. For the year ended December 31, 2014, the Village's contribution was 37.26% of covered payroll. Investment Policy The Police Pension Fund's investment policy authorizes the Police Pension Fund to invest in all investments allowed by ILCS. These include deposits/investments in insured commercial banks, savings and loan institutions, interest-bearing obligations of the U.S. Treasury and U.S. agencies, interest-bearing bonds of the State of Illinois or any county, township, or municipal corporation of the State of Illinois, direct obligations of the State of Israel, money market mutual funds whose investments consist of obligations of the U.S. Treasury or U.S. agencies, separate accounts managed by life insurance companies, mutual funds, common and preferred stock, Illinois Funds (created by the Illinois State Legislature under the control of the State Comptroller that maintains a $1 per share value which is equal to the participants fair value), and IMET, a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an investment company. Investments in IMET are valued at IMET's share price, the price for which the investment could be sold. It is the policy of the Police Pension Fund to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the cash flow demands of the Police Pension Fund 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 are, in order of priority, safety of principal, risk aversion, rate of return, and liquidity. -52- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Investment Policy (Continued) The Police Pension Fund's investment policy in accordance with ILCS establishes the following target allocation across asset classes: Long -Term Expected Asset Class Target Real Rate of Return Fixed Income 45.0% 2.1% Large Cap Domestic Equities 38.5% 6.9% Small Cap Domestic Equities 11.0% 8.5% International Equities 5.5% 7.6% Asset class returns are from Stocks, Bonds, Bills and Inflation 2013 Yearbook - Morningstar for the period of December 31, 1925 through December 31, 2013. The international equity equals the MSCI EAFE Index for the period December 31, 1976 through December 31, 2013. Long-term returns for asset classes are calculated on a geometric mean basis. Investment Valuations All investments in the plan are stated at fair value and are recorded as of the trade date. Fair value is based on quoted market prices at December 31 for debt securities, equity securities and mutual funds, and contract values for insurance contracts. Investment Concentrations Concentration of credit risk is the risk that the Police Pension Fund has a high percentage of its investments invested in one type of investment. The Police Pension Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities custodians of the Police Pension Fund, shall hold more than 10% of the Police Pension Fund's portfolio at any time. Neither shall Illinois Funds hold more than 10% of the Police Pension Fund's portfolio at any time. In addition, the following allocations are desired: depository accounts and money market mutual funds at 1% to 5%, fixed income securities at 40% to 44%, and equity securities at 55%. At December 31, 2014, there were no significant investments (other than U.S. Government guaranteed obligations or mutual funds) in any one organization that represent 5% or more of the Police Pension Fund's investments. -53 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Investment Rate of Return For the year ended December 31, 2014, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 6.92%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Custodial Credit Risk - Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Police Pension Fund's deposits may not be returned to it. The Police Pension Fund's investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral held by the an independent third party or the Federal Reserve Bank, and evidenced by safekeeping receipts. Interest Rate Risk The following table presents the investments and maturities of the Police Pension Fund's debt securities as of December 31, 2014: Investment Maturities (in Years) Investment Type Fair Value Less than 1 1-5 6-10 Greater than 10 U.S. Treasuries U.S. agencies State, local, and municipal bonds Corporate bonds TOTAL $ 3,751,878 $ 333,030 $ 2,602,174 $ 716,835 $ 99,839 8,862,377 136,536 780,705 601,279 7,343,857 2,530,858 - 668,004 267,865 1,594,989 8,004,178 809,898 3,775,978 2,988,583 429,719 $ 23,149,291 $ 1,279,464 $ 7,826,861 $ 4,574,562 $ 9,468,404 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 Police Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for all reasonably anticipated operating requirements while providing a reasonable rate of return based on the current market with a minimum return of 7% desired during a market cycle. In addition, no investment in a fixed income security shall have a maturity of greater than 30 years from the time of purchase. -54- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Credit Risk Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The Police Pension Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. The U.S. Treasuries and agencies, money market mutual funds, and Illinois Funds are rated AAA. The state, local, and municipal bonds are rated A3 to AAA. The corporate bonds are rated BAA3 to AAA. Custodial Credit Risk - Investments Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Police Pension Fund will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Police Pension Fund's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third party custodian and evidenced by safekeeping receipts. Illinois Funds and money market mutual funds are not subject to custodial credit risk. Net Pension Liability The components of the net pension liability of the Police Pension Plan as of December 31, 2014 calculated in accordance with GASB Statement No. 67 were as follows: Total pension liability $ 98,409,322 Plan fiduciary net position 58,819,925 Village's net pension liability 39,589,397 Plan fiduciary net position as a percentage of the total pension liability 59.8% See the schedule of changes in the employer's net pension liability and related ratios in the required supplementary information for additional information related to the funded status of the Police Pension Fund. -55- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2014 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2014 Actuarial cost method Entry -age normal Assumptions Inflation 3.00% Salary increases 5.00% Discount rate 7.50% Cost of living adjustments 3.00% Asset valuation method Market Mortality rates were based on the RP -2000 CHBCA Mortality Table. The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated September 26, 2012. Discount Rate The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Police Pension Fund's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long- term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. -56- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 7.5% as well as what the Village's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.5%) or 1 percentage point higher (8.5%) than the current rate: Current Discount 1% Decrease Rate 1% Increase (6.5%) (7.5%) (8.5%) Net pension liability $ 52,446,370 $ 39,589,397 $ 28,947,095 Firefighters' Pension Plan Plan Administration Fire sworn personnel are covered by the Firefighters' Pension Plan which is a defined benefit single -employer pension plan. Although this is a single -employer pension plan, the defined benefits as well as the employee and employer contributions levels are mandated by Illinois Compiled Statutes (Chapter 40 - Article 5/4) and may be amended only by the Illinois legislature. The Village accounts for the Firefighters' Pension Plan as a pension trust fund. The plan is governed by a five -member pension board. Two members are appointed by the Village's President, one member is elected by pension beneficiaries, and two members are elected by active police employees. Plan Membership At December 31, 2014, the Firefighters' Pension Plan membership consisted of: Inactive plan members currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members TOTAL -57- 75 67 142 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Benefits Provided The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held at the date of retirement. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a covered employee who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Firefighters' salary for pension purposes is capped at $106,800, plus the lesser of 1/2 of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., 1/2% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1St after the firefighter retires or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or 1/2 of the change in the Consumer Price Index for the proceeding calendar year. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Contributions Covered employees are required to contribute 9.455% of their base salary to the Firefighters' Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to finance the Firefighters' Pension Plan as actuarially determined by an enrolled actuary. Effective January 1, 2011, the Village has until the year 2040 to fully fund the past services costs for the Firefighters' Pension Plan. For the year ended December 31, 2014, the Village's contribution was 37.97% of covered payroll. Investment Policy The Firefighters' Pension Fund's investment policy authorizes the Firefighters' Pension Fund to invest in all investments allowed by ILCS. These include deposits/investments in insured commercial banks, savings and loan institutions, interest-bearing obligations of the U.S. Treasury and U.S. agencies, interest-bearing bonds of the State of Illinois or any county, township, or municipal corporation of the State of Illinois, direct obligations of the State of Israel, money market mutual funds whose investments consist of obligations of the U.S. Treasury or U.S. agencies, separate accounts managed by life insurance companies, mutual funds, common and preferred stock, Illinois Funds (created by the Illinois State Legislature under the control of the State Comptroller that maintains a $1 per share value which is equal to the participants fair value), and IMET, a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an investment company. Investments in IMET are valued at IMET's share price, the price for which the investment could be sold. It is the policy of the Firefighters' Pension Fund 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 Firefighters' Pension Fund 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 are, in order of priority, safety of principal, risk aversion, liquidity, and return on investment. -59- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Investment Policy (Continued) The Firefighters' Pension Fund's investment policy in accordance with ILCS establishes the following target allocation across asset classes: U.S. Fixed Income U.S. Equities International Equities Real Estate Long -Term Expected Real Asset Class Target Rate of Return 35% 2.5% 49% 7.5% 11% 8.5% 5% 4.5% The long-term expected real rate of return is based on expected average returns over the foreseeable future for each asset class voting on arithmetic calculation. Investment Valuations All investments in the plan are stated at fair value and are recorded as of the trade date. Fair value is based on quoted market prices at December 31 for debt securities, equity securities and mutual funds, and contract values for insurance contracts. Concentrations Concentration of credit risk is the risk that the Firefighters' Pension Fund has a high percentage of its investments invested in one type of investment. The Firefighters' Pension Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities custodians of the Firefighters' Pension Fund, shall hold more than 10% of the Firefighters' Pension Fund's portfolio at any time. Neither shall Illinois Funds hold more than 10% of the Firefighters' Pension Fund's portfolio at any time. In addition, the following allocations are desired: depository accounts and money market mutual funds at 1% to 5%, fixed income securities at 40% to 44%, and 55% in equity securities. At December 31, 2014, there were no significant investments (other than U.S. Government guaranteed obligations) in any one organization that represent 5% or more of the Firefighters' Pension Fund's investments. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Rate o f Return For the year ended December 31, 2014, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 7.6%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Custodial Credit Risk - Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Firefighters' Pension Fund's deposits may not be returned to it. The Firefighters' Pension Fund's investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral held by the an independent third party. Interest Rate Risk The following table presents the investments and maturities of the Firefighters' Pension Fund's debt securities as of December 31, 2014: Investment Maturities in Years Investment Type Fair Value Less than 1 1-5 6-10 Greater than 10 U.S. Treasuries $ 1,745,174 $ - $ 1,357,954 $ 387,220 $ - U.S. agencies 10,135,115 233,024 1,010,307 1,798,747 7,093,037 State, local, and municipal bonds 1,306,034 112,285 990,269 203,480 - Corporate bonds 7,464,901 652,890 3,083,952 3,521,932 206,127 TOTAL $ 20,651,224 $ 998,199 $ 6,442,482 $ 5,911,379 $ 7,299,164 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 Firefighters' Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for all reasonably anticipated operating requirements while providing a reasonable rate of return based on the current market with a minimum return of 7% desired during a market cycle. In addition, no investment in a fixed income security shall have a maturity of greater than 30 years from the time of purchase. -61- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Credit Risk Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The Firefighters' Pension Fund limits its exposure to credit risk by primarily investing U.S. Treasury obligations and other obligations which are rated AA or better by a national rating agency. The Firefighters' Pension Fund's investment policy does not address the management of credit risk. The U.S. Treasuries and agencies, money market mutual funds, and Illinois Funds are rated AAA. The state, local, and municipal bonds are rated AA2 to AAA. The corporate bonds are rated BAA3 to AAA. Custodial Credit Risk - Investments Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Firefighters' Pension Fund will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Firefighters' Pension Fund's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment basis (DVP) with the underlying investments held by a third party custodian and evidenced by safekeeping receipts. Illinois Funds and the money market mutual funds are not subject to custodial credit risk. Net Pension Liability The components of the net pension liability of the Firefighters' Pension Plan as of December 31, 2014 calculated in accordance with GASB Statement No. 67 were as follows: Total pension liability $ 85,904,197 Plan fiduciary net position 56,568,339 Village's net pension liability 29,335,858 Plan fiduciary net position as a percentage of the total pension liability 65.9% See the schedule of changes in the employer's net pension liability and related ratios in the required supplementary information for additional information related to the funded status of the Firefighters' Pension Fund. -62- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2014 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2014 Actuarial cost method Entry -age normal Assumptions Inflation 3.00% Salary increases 5.00% Discount rate 7.50% Cost of living adjustments 3.00% Asset valuation method Market Mortality rates were based on the RP -2000 CHBCA Mortality Table. The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated September 26, 2012. Discount Rate The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Firefighters' Pension Fund's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. -63- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 7.5% as well as what the Village's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.5%) or 1 percentage point higher (8.5%) than the current rate: 1% Decrease Current Discount 1% Increase Rate (6.5%) (7.5%) (8.5%) Net pension liability $ 39,288,065 $ 29,335,858 $ 20,953,696 b. Annual Pension Cost Illinois Municipal Police Firefighters' Retirement Pension Pension Actuarial valuation date December 31, December 31, December 31, 2012 2013 2013 Actuarial cost method Entry -age Entry -age Entry -age Normal Normal Normal Asset valuation method 5 Year Market Market Smoothed Market Amortization method Level Level Level Percentage of Percentage of Percentage of Payroll Payroll Payroll Amortization period 29 Years, 27 Years, 27 Years, Closed Closed Closed VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) b. Annual Pension Cost (Continued) Illinois The Village's annual pension cost and net pension obligation (asset) for the Illinois Municipal Retirement Fund, Police Pension, and Firefighters' Pension Plans for the year ended December 31, 2014 were as follows: Annual required contributions Interest on net pension obligation Adjustment to annual required contribution Annual pension cost Contributions made Increase (decrease) in net pension obligation (asset) Net pension obligation (asset), beginning of year Illinois Municipal Police Firefighters' Retirement* Pension Pension $ 1,994,769 $ 2,922,979 $ 2,468,554 35,157 (32,762) 10,834 (25,566) 22,630 (7,539) 2,004,360 2,912,847 2,471,849 1,994,769 2,924,226 2,466,165 9,591 (11,379) 5,684 468.766 (437.337) 144.683 NET PENSION OBLIGATION (ASSET), END OF YEAR $ 478,357 $ (448,716) $ 150,367 * Includes both the Village and the Library. -65- Municipal Police Firefighters' Retirement Pension Pension Significant actuarial assumptions a) Rate of return on 7.50% 7.50% 7.50% present and future assets Compounded Compounded Compounded Annually Annually Annually b) Projected salary increase - 4.00% 5.00% 5.00% attributable to inflation Compounded Compounded Compounded Annually Annually Annually c) Additional projected .40% to 10.00% 5.00% 5.00% salary increases d) Postretirement benefit 3.00% 3.00% 3.00% increases C. Net Pension Obligation (Asset) The Village's annual pension cost and net pension obligation (asset) for the Illinois Municipal Retirement Fund, Police Pension, and Firefighters' Pension Plans for the year ended December 31, 2014 were as follows: Annual required contributions Interest on net pension obligation Adjustment to annual required contribution Annual pension cost Contributions made Increase (decrease) in net pension obligation (asset) Net pension obligation (asset), beginning of year Illinois Municipal Police Firefighters' Retirement* Pension Pension $ 1,994,769 $ 2,922,979 $ 2,468,554 35,157 (32,762) 10,834 (25,566) 22,630 (7,539) 2,004,360 2,912,847 2,471,849 1,994,769 2,924,226 2,466,165 9,591 (11,379) 5,684 468.766 (437.337) 144.683 NET PENSION OBLIGATION (ASSET), END OF YEAR $ 478,357 $ (448,716) $ 150,367 * Includes both the Village and the Library. -65- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) d. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. * Includes both the Village and the Library. e. Funded Status and Funding Progress The funded status and funding progress of the plans as of December 31, 2014 for the Illinois Municipal Retirement Fund, Police Pension Fund, and Firefighters' Pension Fund were as follows: Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan assets/AAL) Covered payroll (active plan members) UAAL as a percentage of covered payroll * Includes both the Village and the Library. Illinois Municipal Police Firefighters' Retirement* Pension Pension $ 51,991,456 $ 98,409,322 $ 85,904,197 40,715,187 58,819,925 56,568,339 11,276,269 39,589,397 29,335,858 78.31% 59.8% 65.9% 16,417,851 7,848,795 6,495,510 68.68% 504.4% 451.6% Illinois Fiscal Municipal Police Firefighters' Year Retirement* Pension Pension Annual pension cost 2012 $ 1,724,654 $ 2,349,369 $ 2,152,571 (APC) 2013 1,964,004 2,728,366 2,430,486 2014 2,004,360 2,912,847 2,471,849 Actual contribution 2012 $ 1,715,043 $ 2,511,349 $ 2,260,834 2013 1,954,187 2,631,038 2,371,347 2014 1,994,769 2,924,226 2,466,165 Percentage of APC 2012 99.44% 106.89% 105.03% contributed 2013 99.50% 96.43% 97.57% 2014 99.52% 100.39% 99.77% NPO (asset) 2012 $ 458,949 $ (534,665) $ 85,544 2013 468,766 (437,337) 144,683 2014 478,357 (448,716) 150,367 * Includes both the Village and the Library. e. Funded Status and Funding Progress The funded status and funding progress of the plans as of December 31, 2014 for the Illinois Municipal Retirement Fund, Police Pension Fund, and Firefighters' Pension Fund were as follows: Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan assets/AAL) Covered payroll (active plan members) UAAL as a percentage of covered payroll * Includes both the Village and the Library. Illinois Municipal Police Firefighters' Retirement* Pension Pension $ 51,991,456 $ 98,409,322 $ 85,904,197 40,715,187 58,819,925 56,568,339 11,276,269 39,589,397 29,335,858 78.31% 59.8% 65.9% 16,417,851 7,848,795 6,495,510 68.68% 504.4% 451.6% VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. PENSION TRUST FUNDS a. Schedule of Net Position as of December 31, 2014: Police Pension ASSETS Cash and short-term investments Investments State and local obligations U.S. Government and agency obligations Corporate bonds and obligations Mutual funds Receivables Accrued interest Other Due from other funds Prepaid expenses Total assets LIABILITIES Accounts payable Total liabilities NET POSITION Firefighters' Pension Total $ 1,371,257 $ 919,531 $ 2,290,788 2,530,858 1,306,034 3,836,892 12,614,255 11,880,289 24,494,544 8,004,178 7,464,901 15,469,079 34,140,326 34,859,858 69,000,184 129,425 107,671 237,096 309 - 309 56,708 47,439 104,147 1.392 1,110 2.502 58,848,708 56.586.833 115,435,541 28.783 18.494 47277 28.783 18.494 47277 $ 58,819,925 $ 56,568,339 $ 115,388,264 -67- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. PENSION TRUST FUNDS (Continued) b. Schedule of Changes in Net Position for the year ended December 31, 2014: Police Firefighters' Pension Pension Total ADDITIONS Contributions Employer $ 2,924,226 $ 2,466,115 $ 5,390,341 Employee 851,363 644,384 1,495,747 Other - 50 50 Total contributions INVESTMENT INCOME Net appreciation in fair value of investments Interest income Less investment expense Net investment income Total additions DEDUCTIONS Administrative Pension benefits and refunds Total deductions NET INCREASE NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 December 31 3.775.589 3.110.549 6.886.138 3,157,710 3,399,771 6,557,481 790,677 648,749 1,439,426 (102,525) (85,268) (187,793) 3,845,862 3,963,252 7,809,114 7.621.451 7.073.801 14.695.252 60,382 62,889 123,271 4.117.120 4.158.988 8.276.108 4,177,502 4,221,877 8,399,379 3,443,949 2,851,924 6,295,873 55,375,976 53,716,415 109,092,391 $ 58,819,925 $ 56,568,339 $ 115,388,264 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. RESTATEMENT The Village has restated net position at the beginning of the year to remove the Mount Prospect Public Library from the reporting entity due to the implementation of GASB Statement No. 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34, and to recognize the Business District Limited Tax note payable. NET POSITION, DECEMBER 31, 2013, AS PREVIOUSLY REPORTED a. GASB Statement No. 61 implementation b. Business District limited tax note payable NET POSITION, DECEMBER 31, 2013, AS RESTATED Governmental Activities $ 75,352,589 237,538 (30,451,305) $ 45,138,822 REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2014 REVENUES Property taxes Other taxes Licenses, permits, and fees Intergovernmental Charges for services Fines and forfeits Investment income Miscellaneous Total revenues EXPENDITURES General government Public safety Highways and streets Health Welfare Culture and recreation Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Original Final Budget Budget Actual $ 14,464,000 $ 14,464,000 $ 14,392,732 7,638,500 7,437,500 7,534,342 2,483,500 2,523,500 2,496,760 18,031,566 19,997,566 20,017,840 1,729,700 1,939,700 1,928,223 485,000 480,000 470,466 22,500 22,500 (64,978) 959,300 524,300 512,500 45,814,066 47,389,066 47,287,885 5,738,103 6,335,151 6,035,582 30,290,748 30,896,648 30,626,597 7,513,954 7,834,954 7,500,480 158,190 158,190 151,586 1,622,272 1,665,972 1,585,083 490,799 505,799 421,517 45,814,066 47,396,714 46,320,845 $ - $ (7,648) 967,040 (See independent auditor's report.) -70- 11,878,582 $ 12,845,622 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REFUSE DISPOSAL FUND For the Year Ended December 31, 2014 REVENUES Taxes Charges for services Investment income Miscellaneous Total revenues EXPENDITURES Health Refuse disposal division Personal services Employee benefits Other employee costs Contractual services Utilities Insurance Commodities and supplies Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Original Final Budget Budget Actual $ 342,000 $ 342,000 $ 342,000 3,283,500 3,283,500 3,292,507 500 500 604 500 10,500 11,022 3,626,500 3,636,500 3,646,133 231,735 231,735 250,102 75,057 75,057 108,876 1,224 1,224 1,224 4,157,884 4,187,284 4,013,048 438 438 261 28,640 28,640 28,640 31,295 36,895 36,290 4,526,273 4,561,273 4,438,441 $ (899,773) $ (924,773) (792,308) (See independent auditor's report.) -71- 2,445,117 $ 1,652,809 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF FUNDING PROGRESS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2014 (See independent auditor's report.) -72- (2) UAAL Actuarial (4) as a Actuarial (1) Accrued (3) Unfunded Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets Entry -Age (1)/(2) (2)-(l) Payroll (4)/(5) 2009 $ 32,885,215 $ 42,060,919 78.18% $ 9,175,704 $ 15,057,932 60.94% 2010 35,647,745 44,326,209 80.42% 8,678,464 15,105,113 57.45% 2011 32,515,052 44,098,030 73.73% 11,582,978 14,928,114 77.59% 2012 35,970,552 46,229,045 77.81% 10,258,493 14,939,401 68.67% 2013 38,571,986 47,218,842 81.69% 8,646,856 15,375,191 56.24% 2014 40,715,187 51,991,456 78.31% 11,276,269 16,417,851 68.68% (See independent auditor's report.) -72- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND December 31, 2014 (See independent auditor's report.) -73- (2) UAAL Actuarial (4) as a Actuarial (1) Accrued (3) Unfunded Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets Entry -Age (1)/(2) (2)-(l) Payroll (4)/(5) 2009 $ 41,020,478 $ 67,715,945 60.58% $ 26,695,467 $ 7,421,123 359.72% 2010 44,540,310 75,131,534 59.28% 30,591,224 7,183,594 425.85% 2011 44,777,147 79,366,157 56.42% 34,589,010 7,591,498 455.63% 2012 48,922,651 85,202,766 57.42% 36,280,115 7,871,917 460.88% 2013 55,375,976 88,451,950 62.61% 33,075,974 8,121,622 407.26% 2014 58,819,925 98,409,322 59.77% 39,589,397 7,848,795 504.40% (See independent auditor's report.) -73- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF FUNDING PROGRESS FIREFIGHTERS' PENSION FUND December 31, 2014 (See independent auditor's report.) -74- (2) UAAL Actuarial (4) as a Actuarial (1) Accrued (3) Unfunded Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets Entry -Age (1)/(2) (2)-(1) Payroll (4)/(5) 2009 $ 40,800,749 $ 62,747,542 65.02% $ 21,946,793 $ 6,181,788 355.02% 2010 43,860,979 69,228,826 63.36% 25,367,847 5,896,317 430.23% 2011 43,864,976 72,307,211 60.66% 28,442,235 6,201,120 458.66% 2012 47,233,554 75,639,594 62.45% 28,406,040 6,150,974 461.81% 2013 53,716,415 79,149,378 67.87% 25,432,963 6,436,911 395.11% 2014 56,568,339 85,904,197 65.85% 29,335,858 6,495,510 451.63% (See independent auditor's report.) -74- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFITS PLAN December 31, 2014 N/A - Information not available. (See independent auditor's report.) -75- (6) (2) UAAL Actuarial (4) as a Actuarial (1) Accrued Unfunded Percentage Valuation Actuarial Liability (3) AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets Entry -Age (1)/(2) (2)-(1) Payroll (4)/(5) 2008 N/A N/A N/A N/A N/A N/A 2009 $ - $ 5,796,773 0.00% $ 5,796,773 $ 26,655,049 21.75% 2010 N/A N/A N/A N/A N/A N/A 2011 - 8,280,690 0.00% 8,280,690 22,325,901 37.09% 2012 - 7,201,300 0.00% 7,201,300 24,540,441 29.34% 2013 N/A N/A N/A N/A N/A N/A N/A - Information not available. (See independent auditor's report.) -75- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2014 Fiscal Employer Year Contributions 2009 2010 2011 2012 2013 2014 1,338,650 1,477,280 1,606,265 1,715,043 1,954,187 1,994,769 Annual Required Contribution (ARC) $ 1,338,650 1,792,977 1,733,154 1,715,043 1,954,187 1,994,769 (See independent auditor's report.) -76- Percentage Contributed 100.00% 82.39% 92.68% 100.00% 100.00% 100.00% 00 o o` w V1 N O V1 1p � o- N N N N N N U U O � s.. U U U cd O A A � O G G � � 4, � N � O L � 3 � — s o cd E cd o � U N OMU E _C cd 'I U A L U � � 3 G E O U Uto t a E cd 3 CA ami . cd > o E cd U cd � 4; � CA s N dj z 3 > O U G N d cd 4 U = E N Q� U O .- s c � o cd > d U U U � � EEL ,s..' N a. - o O 4 aEs O O E a o v, 'C c E A L O cd U U 7 N N 7 N 00 7 M N N N l f 69 69 M M M M � N N (A N (A 00 69 00 M 7 G` N_ — = M 00 N r N N N h C o N o N N N l 69 69 69 C 00 O_ N M M C N N N z — �O ra. 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C O E s� a A b ESI VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS OTHER POSTEMPLOYMENT BENEFITS PLAN December 31, 2014 Fiscal Employer Year Contributions 2009 2010 2011 2012 2013 2014 $ 254,814 254,814 254,814 609,856 275,814 287,447 Annual Required Contribution (ARC) $ 273,536 270,764 270,764 442,722 582,335 605,628 (See independent auditor's report.) -79- Percentage Contributed 93.16% 94.11% 94.11% 137.75% 47.36% 47.46% VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND December 31, 2014 2014 TOTAL PENSION LIABILITY Service cost $ 1,890,407 Investment income 6,479,504 Changes of benefit terms - Differences between expected and actual experience 860,183 Changes of assumptions 4,844,398 Benefit payments, including refunds of member contributions (4,117,120) Net change in total pension liability 9,957,372 Total pension liability - beginning 88,451,950 TOTAL PENSION LIABILITY - ENDING $ 98,409,322 PLAN FIDUCIARY NET POSITION Contributions - employer $ 2,924,226 Contributions - member 851,363 Net investment income 3,845,862 Benefit payments, including refunds of member contributions (4,117,120) Administrative expense (60,382) Net change in plan fiduciary net position 3,443,949 Plan fiduciary net position - beginning 55,375,976 PLAN FIDUCIARY NET POSITION - ENDING $ 58,819,925 EMPLOYER'S NET PENSION LIABILITY $ 39,589,397 Plan fiduciary net position as a percentage of the total pension liability 59.8% Covered -employee payroll $ 7,848,795 Employer's net pension liability as a percentage of covered -employee payroll 504.4% Notes to Requried Supplementary Information There was a chance with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates, turnover rates, and retirement rates. (See independent auditor's report.) -80- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS FIREFIGHTERS' PENSION FUND December 31, 2014 2014 TOTAL PENSION LIABILITY Service cost $ 1,673,836 Investment income 5,780,241 Changes of benefit terms - Differences between expected and actual experience 225,575 Changes of assumptions 3,234,155 Benefit payments, including refunds of member contributions (4,158,988) Net change in total pension liability 6,754,819 Total pension liability - beginning 79,149,378 TOTAL PENSION LIABILITY - ENDING 85,904,197 PLAN FIDUCIARY NET POSITION Contributions - employer $ 2,466,165 Contributions - member 644,384 Net investment income 3,963,252 Benefit payments, including refunds of member contributions (4,158,988) Administrative expense (62,889) Net change in plan fiduciary net position 2,851,924 Plan fiduciary net position - beginning 53,716,415 PLAN FIDUCIARY NET POSITION - ENDING 56,568,339 EMPLOYER'S NET PENSION LIABILITY 29,335,858 Plan fiduciary net position as a percentage of the total pension liability 65.9% Covered -employee payroll $ 6,495,510 Employer's net pension liability as a percentage of covered -employee payroll 451.6% Notes to Requried Supplementary Information There was a chance with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates, turnover rates, and retirement rates. (See independent auditor's report.) -81- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND December 31, 2014 Annual money -weighted rate of return, net of investment expense (See independent auditor's report.) -82- 2014 6.92% VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF INVESTMENT RETURNS FIREFIGHTERS' PENSION FUND December 31, 2014 Annual money -weighted rate of return, net of investment expense (See independent auditor's report.) -83- 2014 7.60% VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2014 BUDGETS All departments of the Village submit requests for appropriation to the Village Manager so that a budget may be prepared. The budget is prepared by fund and includes information on the past year, current year estimates, and requested appropriations for the next fiscal year. Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, special revenue, debt service, capital projects, enterprise, internal service, and pension trust funds. All annual appropriations lapse at fiscal year end. The proposed budget is presented to the governing body for review. The governing body holds public hearings and may add to, subtract from, or change appropriations, but may not change the form of the budget. The Village Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the governing body. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, budget amendments were approved by the Village Board. The budget figures included in this report reflect all budget amendments made during the year. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS GENERAL FUND General Fund - to account for all financial resources of the general government, except those accounted for in another fund. SPECIAL REVENUE FUND The Refuse Disposal Fund - to account for the revenues and expenditures associated with providing solid waste collection services. Financing is provided by restricted property taxes, user fees, and recycling income. The Village has elected to present the Refuse Disposal Fund as a major fund. DEBT SERVICE FUND Debt Service Fund - to accumulate monies for payment of principal and interest on general obligation bonds, IEPA loans, and installment notes. CAPITAL PROJECTS FUNDS Flood Control Construction Fund - to account for the resources to implement flood control projects throughout the Village. Financing is being provided by the sale of general obligation bonds, grants, investment income, and by installment loans from the Illinois Environmental Protection Agency (IEPA). Street Improvement Construction Fund - to account for the resources to reconstruct the Village's streets. Financing is being provided by the sale of general obligation bonds, various taxes, licenses, permits, fees, and investment income. VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2014 (This schedule is continued on the following pages.) -85- Budget Original Final Actual TAXES Property taxes - general $ 9,205,000 $ 9,205,000 $ 9,141,821 Property taxes - police pension 2,857,000 2,857,000 2,853,242 Property taxes - firefighters' pension 2,402,000 2,402,000 2,397,669 Road and bridge taxes 120,000 120,000 113,223 Auto rental tax 15,500 15,500 20,782 Food and beverage tax 725,000 810,000 738,642 Real estate transfer tax 800,000 955,000 954,644 Hotel/motel tax 240,000 240,000 258,080 Telecommunications tax 2,600,000 2,100,000 2,208,292 Home rule sales tax 1,346,000 1,346,000 1,355,373 Gas utility tax 562,000 687,000 718,224 Electric utility tax 1,230,000 1,164,000 1,167,082 Total taxes 22,102,500 21,901,500 21,927,074 LICENSES, PERMITS, AND FEES Vehicle license fees 340,000 340,000 340,344 Liquor licenses 160,000 160,000 150,502 Business licenses 145,000 145,000 135,186 Contractor licenses 50,000 50,000 53,270 Alarm licenses 16,000 16,000 17,395 Elevator licenses 20,000 20,000 27,575 Building permit fees 550,000 590,000 588,759 Electrical permit fees 8,000 8,000 8,250 Permit penalties 1,000 1,000 - Plumbing permit fees 25,000 25,000 20,063 Reinspection fees 90,000 90,000 69,611 Vacant structure registration fees 1,000 1,000 6,000 Truck rental fees 500 500 1,295 Utility permit fees 4,000 4,000 4,250 Plan examination fees 15,000 15,000 10,750 Stormwater detention 10,000 10,000 14,155 Street opening fees 2,000 2,000 2,000 ZBA hearing fees 15,000 15,000 16,300 Public improvement inspections 15,000 15,000 - False alarm fees 5,000 5,000 9,180 Landlord/tenant fees 288,000 288,000 293,107 Cable TV franchise 723,000 723,000 728,768 Total licenses, permits, and fees 2,483,500 2,523,500 2,496,760 INTERGOVERNMENTAL State sales tax 11,360,000 13,271,000 13,285,441 State income tax 5,275,000 5,185,000 5,186,155 State use tax 922,000 1,027,000 1,025,332 Charitable games tax 4,000 4,000 4,812 Incremental taxes 90,466 90,466 96,631 Replacement taxes 365,000 405,000 400,936 Replacement taxes - road and bridge 10,000 10,000 6,827 (This schedule is continued on the following pages.) -85- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2014 Budget Original Final Actual INTERGOVERNMENTAL (Continued) Grant - tobacco enforcement $ 4,000 $ 4,000 $ 4,180 Grant - body armor 1,100 1,100 4,143 Grant - NACCHO - - 2,520 Grant - fire prevention and safety - - 863 Total intergovernmental 18,031,566 19,997,566 20,017,840 CHARGES FOR SERVICES Water and sewer service charge 520,000 520,000 520,000 Parking service charge 47,500 47,500 47,500 Maintenance of state highways 97,000 97,000 95,864 Ambulance transport fees 750,000 960,000 942,996 Forest River Rural FPD 45,000 45,000 51,396 Cable programming fees 25,000 25,000 24,586 Other programs 32,500 32,500 35,698 Special detail revenue 40,000 40,000 35,864 Police training revenue 10,000 10,000 6,094 Fire training revenue 17,500 17,500 22,758 Lease payments - cell tower 129,000 129,000 129,266 General store lease 16,200 16,200 16,201 Total charges for services 1,729,700 1,939,700 1,928,223 FINES AND FORFEITS Fines -parking 190,000 190,000 213,111 Fines - local ordinances 5,000 5,000 3,000 Fines - code enforcement 25,000 80,000 79,661 Fines - circuit court 220,000 160,000 148,017 Fines - parental responsibility 5,000 5,000 1,200 Forfeited escrow funds 40,000 40,000 25,477 Total fines and forfeits 485,000 480,000 470,466 INVESTMENT INCOME Investment income 20,500 20,500 (66,971) Interest - escrow funds 2,000 2,000 1,993 Total investment income 22,500 22,500 (64,978) MISCELLANEOUS Reimburse - H/S youth officer 86,000 86,000 86,702 Reimburse - Mount Prospect Library 20,000 20,000 28,095 Shared cost - sidewalk 30,000 30,000 21,219 Shared cost - tree replacement 35,000 35,000 31,621 Reimburse - Village property 20,000 20,000 11,792 (This schedule is continued on the following page.) -86- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2014 (See independent auditor's report.) -87- Budget Original Final Actual MISCELLANEOUS (Continued) Other reimbursements $ 15,000 $ 220,000 $ 214,285 Human services revenue 19,800 19,800 13,974 Fire and police reports 6,000 6,000 5,582 Animal release fees 500 500 250 Subpoena fees 1,000 1,000 943 Insurance payment IPBC 640,000 - - Tree escrow 20,000 20,000 20,000 Other revenue 66,000 66,000 78,037 Total miscellaneous 959,300 524,300 512,500 TOTAL REVENUES $ 45,814,066 $ 47,389,066 $ 47,287,885 (See independent auditor's report.) -87- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERALFUND For the Year Ended December 31, 2014 GENERAL GOVERNMENT Public representation - administration Village administration Finance department Community development - administration Benefit payments Total general government PUBLIC SAFETY Community development - code enforcement Police department Fire department Total public safety HIGHWAYS AND STREETS Public works department Emergency events Total highways and streets HEALTH Community development - health WELFARE Human services department Community development - housing Total welfare CULTURE AND RECREATION Public representation - community and civic services TOTAL EXPENDITURES Budget Original Final Actual $ 120,022 $ 135,522 $ 142,574 3,006,258 3,320,958 3,166,149 1,846,374 2,094,374 2,007,010 719,148 737,996 673,549 46,301 46,301 46,300 5,738,103 6,335,151 6,035,582 876,610 876,610 880,723 16,535,251 16,817,251 16,578,937 12,878,887 13,202,787 13,166,937 30,290,748 30,896,648 30,626,597 7,513,954 7,699,954 7,358,197 - 135,000 142,283 7,513,954 7,834,954 7,500,480 158,190 158,190 151,586 1,084,236 1,105,836 1,049,675 538,036 560,136 535,408 1,622,272 1,665,972 1,585,083 490,799 505,799 421,517 $ 45,814,066 $ 47,396,714 $ 46,320,845 (See independent auditor's report.) -88- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL GENERALFUND For the Year Ended December 31, 2014 Village administration Village Manager's office Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Capital expenditures Total Village Manager's office Legal services Contractual services Human resources Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total human resources Information technology Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Capital expenditures Total information technology 376,007 Budget 404,179 174,718 174,718 Original Final Actual GENERAL GOVERNMENT 9,707 9,707 7,534 Public representation - administration 2,882 3,679 4,978 Mayor and Board of Trustees 4,943 200 200 Personal services $ 31,678 $ 31,678 $ 31,953 Employee benefits 6,037 6,037 6,159 Other employee costs 1,989 1,989 2,740 Contractual services 71,442 86,942 92,285 Utilities 423 423 356 Commodities and supplies 2,010 2,010 2,139 Total Mayor and Board of Trustees 113,579 129,079 135,632 Advisory boards and commissions Personal services 3,755 3,755 3,911 Employee benefits 2,238 2,238 2,201 Contractual services 250 250 74 Commodities and supplies 200 200 200 Capital expenditures - - 556 Total advisory boards and commmissions 6,443 6,443 6,942 Total public representation - administration 120,022 135,522 142,574 Village administration Village Manager's office Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Capital expenditures Total Village Manager's office Legal services Contractual services Human resources Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total human resources Information technology Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Capital expenditures Total information technology 376,007 376,007 404,179 174,718 174,718 188,508 7,544 7,544 6,028 9,707 9,707 7,534 2,882 2,882 3,679 4,978 4,978 4,943 200 200 164 576,036 576,036 615,035 440,800 727,800 736,948 181,029 181,029 164,243 128,333 128,333 86,815 12,600 12,600 17,114 2,750 2,750 7,413 400 400 510 325,112 325,112 276,095 361,210 361,210 363,415 149,810 149,810 150,705 5,600 5,600 2,382 397,420 422,020 387,530 5,203 5,203 5,327 4,300 4,300 2,465 5,250 5,250 5,241 928,793 953,393 917,065 (This schedule is continued on the following pages.) -89- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 (This schedule is continued on the following pages.) -90- Budget Original Final Actual GENERAL GOVERNMENT (Continued) Village administration (Continued) Public information Personal services $ 64,261 $ 64,261 $ 50,917 Employee benefits 34,876 34,876 27,888 Other employee costs 6,500 6,500 866 Contractual services 127,444 127,444 77,311 Utilities 867 867 770 Commodities and supplies 1,310 1,310 282 Total public information 235,258 235,258 158,034 Television services division Personal services 89,385 89,385 93,561 Employee benefits 44,971 44,971 44,519 Other employee costs 765 765 730 Contractual services 30,764 30,764 27,769 Utilities 1,581 1,581 1,307 Commodities and supplies 5,610 5,610 5,472 Capital expenditures 8,100 8,100 4,394 Total television services division 181,176 181,176 177,752 Computer hardware/software Capital expenditures 99,509 102,609 73,827 Total computer hardware/software 99,509 102,609 73,827 Village Clerk's office Administration and support Personal services 125,713 125,713 127,247 Employee benefits 57,839 57,839 57,509 Other employee costs 933 933 470 Contractual services 33,278 33,278 24,999 Utilities 791 791 653 Commodities and supplies 1,020 1,020 515 Total Village Clerk's office 219,574 219,574 211,393 Total Village administration 3,006,258 3,320,958 3,166,149 Finance department Administration and support Personal services 126,679 126,679 128,054 Employee benefits 44,864 44,864 39,671 Other employee costs 9,750 9,750 8,925 Contractual services 166,445 234,445 206,371 Utilities 4,835 4,835 4,446 Commodities and supplies 22,990 22,990 16,618 Capital expenditures - 180,000 179,083 Total administration and support 375,563 623,563 583,168 (This schedule is continued on the following pages.) -90- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 (This schedule is continued on the following pages.) -91- Budget Original Final Actual GENERAL GOVERNMENT (Continued) Finance department (Continued) Accounting Personal services $ 323,887 $ 323,887 $ 329,371 Employee benefits 160,750 160,750 160,278 Contractual services 4,085 4,085 2,830 Commodities and supplies 5,578 5,578 3,279 Total accounting 494,300 494,300 495,758 Insurance Personal services 34,185 34,185 34,528 Employee benefits 11,033 11,033 11,649 Insurance 350,519 350,519 350,531 Total insurance 395,737 395,737 396,708 Customer service Personal services 315,360 315,360 307,713 Employee benefits 153,702 153,702 124,781 Contractual services 66,203 66,203 61,313 Commodities and supplies 12,860 12,860 8,376 Total customer service 548,125 548,125 502,183 Cash management Personal services 24,125 24,125 24,469 Employee benefits 8,524 8,524 4,724 Total cash management 32,649 32,649 29,193 Total finance department 1,846,374 2,094,374 2,007,010 Community development - administration Administration and support Personal services 188,254 188,254 184,743 Employee benefits 104,346 104,346 100,327 Other employee costs 3,825 3,825 2,979 Utilities 2,105 2,105 653 Commodities and supplies 1,020 1,020 1,020 Total administration and support 299,550 299,550 289,722 Planning and zoning Personal services 195,090 195,090 195,583 Employee benefits 67,841 67,841 60,209 Other employee costs 7,127 7,127 6,270 Contractual services 23,614 23,614 15,383 Utilities 1,224 1,224 980 Commodities and supplies 3,417 3,417 2,670 Total planning and zoning 298,313 298,313 281,095 (This schedule is continued on the following pages.) -91- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 (This schedule is continued on the following pages.) -92- Budget Original Final Actual GENERAL GOVERNMENT (Continued) Community development - administration (Continued) Economic development Personal services $ 61,085 $ 61,085 $ 61,581 Employee benefits 22,970 22,970 22,162 Other employee costs 1,530 1,530 1,250 Contractual services 35,700 54,548 17,739 Total economic development 121,285 140,133 102,732 Total community development - administration 719,148 737,996 673,549 Benefit payments Contractual services 46,301 46,301 46,300 Total benefit payments 46,301 46,301 46,300 Total general government 5,738,103 6,335,151 6,035,582 PUBLIC SAFETY Community development - code enforcement Building inspections Personal services 323,696 323,696 311,795 Employee benefits 158,280 158,280 155,234 Other employee costs 7,451 7,451 4,590 Contractual services 369,877 369,877 395,599 Utilities 9,291 9,291 8,374 Commodities and supplies 8,015 8,015 5,131 Total community development - code enforcement 876,610 876,610 880,723 Police department Administration and support Personal services 417,646 480,646 484,007 Employee benefits 3,268,019 3,423,019 3,414,036 Other employee costs 158,450 158,450 124,769 Contractual services 72,930 72,930 73,123 Utilities 31,265 31,265 26,887 Commodities and supplies 20,681 20,681 16,111 Capital expenditures 18,015 18,015 615 Total administration and support 3,987,006 4,205,006 4,139,548 Records Personal services 276,143 276,143 266,670 Employee benefits 98,660 98,660 97,356 Total records 374,803 374,803 364,026 Patrol and traffic enforcement Personal services 6,702,134 6,766,134 6,825,077 Employee benefits 1,298,527 1,298,527 1,329,215 Contractual services 567,592 567,592 568,160 Commodities and supplies 64,634 64,634 68,192 Capital expenditures 5,685 5,685 4,086 Total patrol and traffic enforcement 8,638,572 8,702,572 8,794,730 (This schedule is continued on the following pages.) -92- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 (This schedule is continued on the following pages.) -93- Budget Original Final Actual PUBLIC SAFETY (Continued) Police department (Continued) Technical services Personal services $ 275,899 $ 275,899 $ 274,935 Employee benefits 65,594 65,594 71,789 Total technical services 341,493 341,493 346,724 Auxiliary service Personal services 210,143 210,143 207,556 Employee benefits 78,248 78,248 80,929 Total auxiliary services 288,391 288,391 288,485 Crime prevention and public services Personal services 122,371 122,371 124,630 Employee benefits 38,815 38,815 39,507 Other employee costs 2,244 2,244 282 Contractual services 765 765 439 Commodities and supplies 8,563 8,563 13,590 Total crime prevention and public services 172,758 172,758 178,448 Investigative Personal services 1,516,207 1,516,207 1,359,966 Employee benefits 344,494 344,494 302,542 Contractual services 38,946 38,946 27,901 Commodities and supplies 5,215 5,215 2,714 Capital expenditures 900 900 507 Total investigative 1,905,762 1,905,762 1,693,630 Equipment maintenance Contractual services 781,916 781,916 746,172 Commodities and supplies 23,100 23,100 12,781 Capital expenditures 5,850 5,850 1,671 Total equipment maintenance 810,866 810,866 760,624 Computer software/bardware Capital expenditures 15,600 15,600 12,722 Total police department 16,535,251 16,817,251 16,578,937 Fire department Administration and support Personal services 596,201 596,201 603,555 Employee benefits 2,769,988 2,913,988 2,870,761 Other employee costs 72,712 74,137 68,846 Contractual services 28,920 33,690 36,288 Commodities and supplies 8,100 8,300 7,232 Capital expenditures 5,270 5,270 4,297 Total administration and support 3,481,191 3,631,586 3,590,979 (This schedule is continued on the following pages.) -93- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 PUBLIC SAFETY (Continued) Fire department (Continued) Fire department operations Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Capital expenditures Budget Original Final Actual $ 6,470,706 $ 6,649,706 $ 6,669,373 1,146,648 1,146,648 1,175,169 50,340 47,740 47,661 138,600 137,586 139,371 21,937 21,567 18,978 71,708 73,497 72,742 Total fire department operations 7,899,939 8,076,744 8,123,294 Fire prevention Personal services 367,639 367,639 356,954 Employee benefits 153,661 153,661 143,236 Other employee costs 5,600 2,900 2,814 Contractual services 7,400 5,852 5,851 Commodities and supplies 8,700 9,600 9,310 Total fire prevention 543,000 539,652 518,165 Communications Contractual services 5,550 3,650 2,787 Utilities 32,385 32,385 31,580 Commodities and supplies 1,500 1,500 1,469 Capital expenditures 7,500 7,500 7,420 Total communications 46,935 45,035 43,256 Equipment maintenance Contractual services 847,496 847,496 847,496 Total equipment maintenance 847,496 847,496 847,496 Emergency preparedness Other employee costs 1,250 1,250 320 Contractual services 4,000 4,000 2,867 Commodities and supplies 5,640 5,640 4,679 Total emergency preparedness 10,890 10,890 7,866 Paid on call Personal services 28,722 28,722 17,895 Employee benefits 1,719 1,719 1,357 Other employee costs 12,270 10,270 4,159 Capital expenditures 1,625 5,573 5,498 Total paid on call 44,336 46,284 28,909 (This schedule is continued on the following pages.) -94- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 (This schedule is continued on the following pages.) -95- Budget Original Final Actual PUBLIC SAFETY (Continued) Fire department (Continued) Improvements Computer hardware/software Computer software $ 5,100 $ 5,100 $ 6,972 Total improvements 5,100 5,100 6,972 Total fire department 12,878,887 13,202,787 13,166,937 Total public safety 30,290,748 30,896,648 30,626,597 HIGHWAYS AND STREETS Public works department Administration and support Personal services 228,866 228,866 232,632 Employee benefits 145,628 178,628 183,584 Other employee costs 26,291 26,291 22,863 Contractual services 1,035,272 1,035,272 1,035,191 Utilities 13,796 13,796 10,726 Commodities and supplies 14,806 14,806 15,958 Capital expenditures 1,484 1,484 767 Total administration and support 1,466,143 1,499,143 1,501,721 Street and buildings division Administration Personal services 101,714 101,714 106,494 Employee benefits 46,609 46,609 48,832 Utilities 3,162 3,162 2,330 Commodities and supplies 270 270 267 Total administration 151,755 151,755 157,923 Maintenance - public buildings Personal services 417,233 479,233 466,537 Employee benefits 167,103 167,103 179,519 Contractual services 372,023 362,023 282,608 Utilities 51,197 61,197 65,339 Commodities and supplies 116,236 116,236 103,927 Other expenditures 4,080 4,080 Total maintenance - public buildings 1,127,872 1,189,872 1,097,930 Street maintenance Personal services 120,855 145,855 175,073 Employee benefits 37,280 37,280 61,227 Contractual services 23,648 23,648 13,473 Commodities and supplies 26,485 26,485 24,286 Total street maintenance 208,268 233,268 274,059 (This schedule is continued on the following pages.) -95- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 HIGHWAYS AND STREETS (Continued) Public works department (Continued) Street and buildings division (Continued) Snow removal Personal services Employee benefits Contractual services Commodities and supplies Capital expenditures Total snow removal Budget Original Final Actual $ 309,391 $ 344,391 $ 354,877 119,755 119,755 127,756 114,725 114,725 107,391 13,153 13,153 10,305 15,000 15,000 14,921 7,316 Commodities and supplies 7,376 572,024 607,024 615,250 Storm sewer/basin maintenance 30,107 33,347 12,999 Personal services 65,990 65,990 73,211 Employee benefits 24,529 24,529 22,901 Contractual services 11,904 11,904 7,316 Commodities and supplies 7,376 7,376 1,138 Total storm sewer/basin maintenance Maintenance of state highways Personal services Employee benefits Contractual services Commodities and supplies Total maintenance of state highways Traffic sign maintenance Personal services Employee benefits Commodities and supplies Total traffic sign maintenance Total street and buildings division Forestry division Administration and support Personal services Employee benefits Commodities and supplies Total administration and support Maintenance of grounds Personal services Employee benefits Contractual services Commodities and supplies Capital expenditures Total maintenance of grounds 109,799 109,799 104,566 30,107 30,107 33,347 12,999 12,999 12,858 18,097 18,097 13,271 29,257 29,257 24,476 122,998 122,998 135,149 90,460 90,460 83,952 78,784 78,784 90,427 28,019 28,019 28,591 16,195 16,195 16,131 8,829 8,829 8,390 122,998 122,998 135,149 2,383,176 2,505,176 2,468,829 175,718 175,718 140,472 74,304 74,304 68,699 450 450 75 250,472 250,472 209,246 269,646 269,646 265,375 102,642 102,642 92,007 123,916 123,916 108,408 8,829 8,829 8,390 45,390 45,390 36,861 550,423 550,423 511,041 (This schedule is continued on the following pages.) -96- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 HIGHWAYS AND STREETS (Continued) Public works department (Continued) Forestry program Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total forestry program Public grounds beautification Personal services Employee benefits Contractual services Commodities and supplies Total public grounds beautification Total forestry division Engineering division Engineering services Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Capital expenditures Total engineering services Traffic control and street lighting Personal services Employee benefits Contractual services Utilities Commodities and supplies Total traffic control and street lighting Total engineering division Capital expenditures Software development Infrastructure Storm sewer Resurfacing/curbs Miscellaneous - forestry Total capital expenditures Emergency events Contractual services Commodities and supplies Total emergency events Total highways and streets Budget Original Final Actual $ 329,063 $ 353,063 $ 345,842 134,970 134,970 138,167 5,971 5,971 5,971 447,980 458,080 424,525 3,162 3,162 2,062 10,916 10,916 9,359 932,062 966,162 925,926 27,419 27,419 29,284 10,019 10,019 10,366 2,448 2,448 - 32,835 36,435 33,821 72,721 76,321 73,471 1,805,678 1843378 1719 684 612,772 612,772 613,926 259,930 259,930 232,482 3,623 3,623 3,623 60,590 60,590 56,870 4,900 4,900 4,310 7,247 7,247 3,192 2,226 2,226 1,261 951,288 951,288 915,664 121,415 121,415 124,905 49,639 49,639 51,335 10,098 10,098 4,293 75,480 75,480 43,726 25,245 25,245 12,137 281,877 281,877 236,396 1,233,165 1,233,165 1,152,060 15,000 15,000 772 100,000 100,000 70,223 85,000 85,000 58,311 425,792 419,092 386,597 625,792 619,092 515,903 80,500 87,986 54,500 54,297 135,000 142,283 7,513,954 7834954 7,500,480 (This schedule is continued on the following pages.) -97- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 HEALTH Community development - health Health inspections Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total health WELFARE Human services department Administration and support Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Capital expenditures Total administration and support Social services Personal services Employee benefits Other employee costs Commodities and supplies Total social services Nursing/health services Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total nursing/health services Senior citizen leisure activities Personal services Employee benefits Total senior citizen leisure activities Community Connections Center Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total Community Connections Center Total human services department Budget Original Final Actual $ 95,434 $ 95,434 $ 95,059 48,271 48,271 47,451 1,341 1,341 1,055 9,060 9,060 7,175 1,823 1,823 515 2,261 2,261 331 158,190 158,190 151,586 100,410 100,410 93,456 57,023 76,023 77,550 808 808 674 6,375 6,375 3,320 5,590 5,590 5,049 3,006 5,606 4,557 100 100 - 173,312 194,912 184,606 253,718 253,718 231,205 101,855 101,855 90,454 1,173 1,173 605 510 510 442 357,256 357,256 322,706 118,433 118,433 119,235 59,320 59,320 60,102 918 918 213 714 714 946 2,709 2,709 1,547 182,094 182,094 182,043 20,345 20,345 19,827 8,867 8,867 9,035 29,212 29,212 28,862 174,298 174,298 178,631 62,840 62,840 62,671 1,421 1,421 466 95,722 95,722 84,713 5,327 5,327 3,154 2,754 2,754 1,823 342,362 342,362 331,458 1,084,236 1 105 836 1,049,675 (This schedule is continued on the following page.) -98- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2014 WELFARE Community development - housing Housing inspections Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total community development - housing Total welfare CULTURE AND RECREATION Community groups and miscellaneous Contractual services Other expenditures Total community groups and miscellaneous Public relations - community and civic services 4th of July and civic events Personal services Employee benefits Contractual services Commodities and supplies Total 4th of July and civic events Holiday decorations Personal services Employee benefits Contractual services Commodities and supplies Total holiday decorations Blood drive program Personal services Employee benefits Commodities and supplies Budget Original Final Actual $ 323,065 $ 323,065 $ 314,794 148,423 148,423 145,367 4,979 4,979 2,951 51,938 74,038 69,286 4,993 4,993 531 4.638 4.638 2.479 538,036 560,136 535,408 1,622,272 1,665,972 1,585,083 134,500 134,500 121,209 7,000 7,000 5,754 55,930 55,930 25,343 141,500 141,500 126,963 125,611 140,611 139,777 46,337 46,337 43,848 55,930 55,930 25,343 38,219 38,219 27,465 266,097 281,097 236,433 8,403 8,403 8,725 2,305 2,305 2,387 47,828 47,828 27,983 21,930 21,930 16,210 80,466 80,466 55,305 1,844 1,844 1,843 142 142 141 750 750 832 Total blood drive program 2,736 2,736 2,816 Total culture and recreation 490,799 505,799 421,517 TOTAL EXPENDITURES $ 45,814,066 $ 47,396,714 $ 46,320,845 (See independent auditor's report.) -99- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL REFUSE DISPOSAL FUND For the Year Ended December 31, 2014 TAXES Property - levy CHARGES FOR SERVICES Single-family service charges Multi -family service charges Single-family penalties Multi -family penalties Contract administative fees Refuse stickers Recycling bins Total charges for services INVESTMENT INCOME MISCELLANEOUS TOTAL OPERATING REVENUES Budget Original Final Actual $ 342,000 $ 342,000 $ 342,000 1,925,000 1,925,000 1,985,428 975,000 975,000 936,980 20,000 20,000 22,916 5,000 5,000 3,799 173,000 173,000 170,705 185,000 185,000 172,179 500 500 500 3,283,500 3,283,500 3,292,507 500 500 604 500 10,500 11,022 $ 3,626,500 $ 3,636,500 $ 3,646,133 (See independent auditor's report.) _100- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended December 31, 2014 REVENUES Taxes Property - levy Other taxes Home rule sales tax Investment income Intergovernmental revenue Miscellaneous Other revenue Total revenues EXPENDITURES Debt service Principal retirement Interest and fiscal charges Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual S 2,237,000 S 2,237,000 S 2,237,000 1,056,532 400 43,005 1,056,532 400 1,617,883 1,056,532 96 1,618,709 112 3,336,937 4,911,815 4,912,449 1,532,587 2,987,587 2,987,587 1,795,913 1,915,791 1,914,718 3,328,500 4,903,378 4,902,305 $ 8,437 $ 8,437 10,144 (See independent auditor's report.) -101 - 121,491 $ 131,635 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FLOOD CONTROL CONSTRUCTION FUND For the Year Ended December 31, 2014 REVENUES Taxes Other taxes Home rule sales tax Investment income Total revenues EXPENDITURES Capital outlay Public improvements Infrastructure Other Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 289,468 $ 289,468 $ 298,841 500 500 12,273 289,968 289,968 311,114 10,805,000 1,488,800 555,392 6,000 6,000 916 10,811,000 1,494,800 556,308 $ (10,521,032) $ (1,204,832) (245,194) (See independent auditor's report.) -102- 11,672,318 $ 11,427,124 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FLOOD CONTROL CONSTRUCTION FUND For the Year Ended December 31, 2014 CAPITAL OUTLAY Public improvements Infrastructure Creek bank stabilization Creek tree trimming Levee 37 Private property drainage Prospect Meadows flood improvements Weller Creek improvements Isabella combined sewer improvements Total infrastructure Other Electricity Residential reimbursements Total other TOTAL EXPENDITURES Budget Original Final Actual $ 25,000 $ 38,800 $ 32,818 25,000 25,000 24,362 175,000 175,000 14,816 100,000 100,000 98,307 650,000 720,000 11,591 30,000 30,000 - 9,800,000 400,000 373,498 10,805,000 1,488,800 555,392 1,000 1,000 916 5,000 5,000 - 6,000 6,000 916 $ 10,811,000 $ 1,494,800 $ 556,308 (See independent auditor's report.) -103- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STREET IMPROVEMENT CONSTRUCTION FUND For the Year Ended December 31, 2014 REVENUES Other taxes Home rule sales tax Municipal motor fuel tax License fees Forfeited escrow funds Investment income Miscellaneous income Total revenues EXPENDITURES Capital outlay Contractual services Infrastructure Street resurfacing Total expenditures OTHER FINANCING SOURCES Bonds issued Premium on bonds issued Total other financing sources NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 1,346,000 $ 1,346,000 $ 1,355,373 711,000 711,000 699,499 1,045,000 1,045,000 1,019,322 - 118,000 117,500 100 100 4,349 6,000 104,000 103,821 3,108,100 3,324,100 3,299,864 30,600 112,600 89,153 9,943,280 7,943,280 7,733,640 9,973,880 8,055,880 7,822,793 6,500,000 6,290,000 6,290,000 - 300,000 294,697 6,500,000 6,590,000 6,584,697 $ (365,780) $ 1,858,220 2,061,768 (See independent auditor's report.) -104- 866,952 $ 2,928,720 NONMAJOR GOVERNMENTAL FUNDS NONMAJOR SPECIAL REVENUE FUNDS Motor Fuel Tax Fund - to account for the activities involved with street maintenance and construction. Financing is provided by the Village's share of state gasoline taxes. State law requires these gasoline taxes to be used to maintain streets. Community Development Block Grant (CDBG) Fund - to account for the revenue and expenditures associated with the CDBG. The grant is provided by the U.S. Department of Housing and Urban Development to develop urban communities by expanding economic opportunities and providing decent housing and a suitable living environment. The beneficiaries of CDBG must be individuals with low and/or moderate incomes. Asset Seizure Fund - to account for the revenues and expenditures associated with the asset seizure program in which the Village participates. Funds received are restricted for use in the fight against drugs. Federal Equitable Share Fund - to account for the revenues and expenditures associated with the Federal Shared Funds Program. The use of funds is restricted for use in the fight against drugs. DUI Fines Fund - to account for revenues and expenditures associated with the Cook County DUI fine program. Use of the funds is restricted to the fight against drunk driving. Foreign Fire Insurance Fund - to account for revenues derived from the Foreign Fire Insurance Tax and disbursement of these funds for the benefit, use, and maintenance related to the Fire Department. Business District Fund - to account for the revenues and expenditures associated with the Business Districts within the Village. The Village currently has one Business District, the Randhurst Village Business District Area. NONMAJOR GOVERNMENTAL FUNDS (Continued) NONMAJOR CAPITAL PROJECTS FUNDS Capital Improvement Fund - to account for the resources to provide for certain capital improvements and the replacement of Village equipment. Financing is being provided by home rule sales tax, developer contributions, transfers from other funds, and investment income. Downtown Redevelopment Construction Fund - to account for the resources to acquire property and construct certain improvements in the Downtown Redevelopment Tax Incremental Financing District No. 1. Financing is being provided by incremental property taxes and investment income. VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2014 Special Capital Revenue Projects Total ASSETS Cash and investments $ 2,716,735 $ 2,471,795 $ 5,188,530 Receivables Prepaid items 5,992 3,245 Other taxes 233,944 440,075 674,019 Other 68,094 - 68,094 Due from other governments 672,405 604,075 1,276,480 Prepaid items 5,992 3,245 9,237 TOTAL ASSETS $ 3,697,170 $ 3,519,190 $ 7,216,360 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 1,057,778 $ 81,963 $ 1,139,741 Accrued payroll 778 - 778 Retainage payable - 7,500 7,500 Unearned revenue 748,579 - 748,579 Total liabilities 1,807,135 89,463 1,896,598 FUND BALANCES Nonspendable Prepaid items 5,992 3,245 9,237 Restricted Highways and streets 1,397,365 - 1,397,365 Public safety - police 204,693 - 204,693 Public safety - fire 282,774 - 282,774 Economic development - 655,404 655,404 Assigned Capital projects - 2,771,078 2,771,078 Unassigned (789) - (789) Total fund balances 1,890,035 3,429,727 5,319,762 TOTAL LIABILITIES AND FUND BALANCES $ 3,697,170 $ 3,519,190 $ 7,216,360 (See independent auditor's report.) -105- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2014 REVENUES Property taxes Other taxes Intergovernmental Investment income Miscellaneous Total revenues EXPENDITURES Current General government Public safety Highways and streets Welfare Capital outlay Total expenditures NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 Special Capital Revenue Projects Total $ - $ 2,311,740 $ 2,311,740 1,081,889 1,254,676 2,336,565 2,026,050 252,375 2,278,425 283 878 1,161 215,987 140,181 356,168 3,324,209 3,959,850 7,284,059 1,014,436 - 1,014,436 80,088 - 80,088 791,218 - 791,218 280,182 - 280,182 - 3,696,359 3,696,359 2,165,924 3,696,359 5,862,283 1,158,285 263,491 1,421,776 731,750 3,166,236 3,897,986 $ 1,890,035 $ 3,429,727 $ 5,319,762 (See independent auditor's report.) -106- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2014 -107- Community Federal Motor Development Asset Equitable Fuel Tax Block Grant Seizure Share ASSETS Cash and investments $ 1,278,678 $ 96,489 $ 79,269 $ 19,938 Receivables Other taxes 136,405 - - - Other 1,220 - 4,484 - Due from other governments 4,120 668,285 - - Prepaid items - 789 - - TOTAL ASSETS $ 1,420,423 $ 765,563 $ 83,753 $ 19,938 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 23,058 $ 16,206 $ 78 $ - Accrued payroll - 778 - - Unearned revenue - 748,579 - - Total liabilities 23,058 765,563 78 - FUND BALANCES Nonspendable Prepaid items - 789 - - Restricted Highways and streets 1,397,365 - - - Public safety - police - - 83,675 19,938 Public safety - fire - - - - Unassigned - (789) - - Total fund balances 1,397,365 - 83,675 19,938 TOTAL LIABILITIES AND FUND BALANCES $ 1,420,423 $ 765,563 $ 83,753 $ 19,938 -107- Foreign DUI Fire Business Fines Insurance District Total $ 96,142 $ 286,774 $ 859,445 $ 2,716,735 - - 97,539 233,944 4,938 - 57,452 68,094 - - - 672,405 51203 - 5,992 $ 101,080 $ 291,977 $ 1,014,436 $ 3,697,170 $ - $ 4,000 $ 1,014,436 $ 1,057,778 - - 778 748,579 4,000 1,014,436 1,807,135 51203 - 5,992 - - - 1,397,365 101,080 - - 204,693 - 282,774 - 282,774 - - (789) 101,080 287,977 - 1,890,035 $ 101,080 $ 291,977 $ 1,014,436 $ 3,697,170 (See independent auditor's report.) -108- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 EXPENDITURES Current General government - - - - Public safety - - 8,039 16,233 Highways and streets 791,218 - - - Welfare - 280,182 - - Total expenditures 791,218 280,182 8,039 16,233 NET CHANGE IN FUND BALANCES 1,058,504 - 41,016 8,424 FUND BALANCES, JANUARY 1 338,861 Community 11,514 Federal $ 1,397,365 $ Motor Development Asset Equitable Fuel Tax Block Grant Seizure Share REVENUES Taxes $ - $ - $ - $ - Intergovernmental 1,830,552 83,298 49,039 24,638 Investment income 67 - 16 19 Miscellaneous 19,103 196,884 - - Total revenues 1,849,722 280,182 49,055 24,657 EXPENDITURES Current General government - - - - Public safety - - 8,039 16,233 Highways and streets 791,218 - - - Welfare - 280,182 - - Total expenditures 791,218 280,182 8,039 16,233 NET CHANGE IN FUND BALANCES 1,058,504 - 41,016 8,424 FUND BALANCES, JANUARY 1 338,861 - 42,659 11,514 FUND BALANCES, DECEMBER 31 $ 1,397,365 $ - $ 83,675 $ 19,938 -109- Foreign DUI Fire Business Fines Insurance District Total $ - $ 67,577 $ 1,014,312 $ 1,081,889 38,523 - - 2,026,050 37 103 41 283 - - - 215,987 38,560 67,680 1,014,353 3,324,209 - - 1,014,436 1,014,436 2,767 53,049 - 80,088 - - - 791,218 280,182 2,767 53,049 1,014,436 2,165,924 35,793 14,631 (83) 1,158,285 65,287 273,346 83 731,750 $ 101,080 $ 287,977 $ - $ 1,890,035 (See independent auditor's report.) - 110 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MOTOR FUEL TAX FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 REVENUES Intergovernmental Motor fuel tax allotments Investment income Miscellaneous Total revenues EXPENDITURES Highways and streets Street division NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 1,290,000 $ 1,810,000 $ 1,830,552 100 100 67 6,000 6,000 19,103 1,296,100 1,816,100 1,849,722 1,551,900 828,900 791,218 $ (255,800) $ 987,200 1,058,504 (See independent auditor's report.) - 111 - 338,861 $ 1,397,365 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL MOTOR FUEL TAX FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 HIGHWAYS AND STREETS Public works department Street division Street maintenance Contractual services Snow removal Contractual services Commodities and supplies Total snow removal Traffic control/street lighting Contractual services Utilities Total traffic control/street lighting Street improvement projects Infrastructure TOTAL EXPENDITURES Budget Original Final Actual $ 115,497 $ 115,497 $ 115,153 - 75,000 63,050 284,796 381,796 375,112 284,796 456,796 438,162 88,607 88,607 69,787 153,000 153,000 156,037 241,607 241,607 225,824 910,000 15,000 12,079 $ 1,551,900 $ 828,900 $ 791,218 (See independent auditor's report.) - 112 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 REVENUES Intergovernmental Grant - CDBG Miscellaneous Program income Total revenues EXPENDITURES Welfare Administration Community programs Residential rehabilitation CDBG public rehabilitation projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 293,202 $ 126,450 $ 83,298 60,000 230,000 196,884 353,202 356,450 280,182 49,109 49,109 62,434 42,000 48,450 47,597 217,093 178,891 94,074 45,000 80,000 76,077 353,202 356,450 280,182 (See independent auditor's report.) -113- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 WELFARE Administration and support Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total administration and support Community programs Contractual services Total community programs Residential rehabilitation Personal services Employee benefits Contractual services Other expenditures Total residential rehabilitation CDBG public rehabilitation projects Contractual services Capital expenditures Total CDBG programs TOTAL EXPENDITURES Budget Original Final Actual $ 27,896 $ 27,896 $ 35,632 14,163 14,163 23,617 1,020 1,020 178 5,520 5,520 3,007 510 510 - 49,109 49,109 62,434 42,000 48,450 47,597 42,000 48,450 47,597 20,034 20,034 11,863 12,059 12,059 2,349 25,000 48,250 36,400 160,000 98,548 43,462 217,093 178,891 94,074 25,000 25,000 24,985 20,000 55,000 51,092 45,000 80,000 76,077 $ 353,202 $ 356,450 $ 280,182 (See independent auditor's report.) - 114 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ASSET SEIZURE FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 REVENUES Intergovernmental Seized assets Investment income Total revenues EXPENDITURES Public safety Other employee costs Contractual services Capital expenditures Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 2,000 $ 45,000 $ 49,039 100 100 16 2,100 45,100 49,055 1,000 1,000 - 3,000 3,000 6,000 15,000 15,000 2,039 19,000 19,000 8,039 $ (16,900) $ 26,100 41,016 (See independent auditor's report.) -115- 42,659 $ 83,675 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FEDERAL EQUITABLE SHARE FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 REVENUES Intergovernmental Federal equitable shared funds Investment income Total revenues EXPENDITURES Public safety Contractual services Capital expenditures Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 100 $ 25,100 $ 24,638 100 100 19 200 25,200 24,657 1,000 1,000 - 1,000 17,000 16,233 2,000 18,000 16,233 $ (1,800) $ 7,200 8,424 (See independent auditor's report.) - 116 - 11,514 $ 19,938 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DUI FINES FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 REVENUES Intergovernmental DUI fines Investment income Total revenues EXPENDITURES Public safety Patrol and traffic enforcement Other employee costs Capital expenditures Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 20,000 $ 32,000 $ 38,523 100 100 37 20,100 32,100 38,560 1,000 1,000 - 10,000 10,000 2,767 11,000 11,000 2,767 $ 9,100 $ 21,100 35,793 (See independent auditor's report.) - 117 - 65,287 $ 101,080 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOREIGN FIRE INSURANCE FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 REVENUES Other taxes Foreign fire insurance tax Investment income Total revenues EXPENDITURES Public safety Insurance Contractual services Commodities and supplies Equipment Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 70,000 $ 70,000 $ 67,577 1,000 1,000 103 71,000 71,000 67,680 500 500 - 10,000 10,000 3,967 5,000 5,000 212 15,000 45,000 48,870 30,500 60,500 53,049 $ 40,500 $ 10,500 14,631 (See independent auditor's report.) - 118 - 273,346 $ 287,977 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL BUSINESS DISTRICT FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2014 REVENUES Other taxes Food and beverage tax Hotel/motel tax Movie theatre tax Business district tax Investment income Total revenues EXPENDITURES General government Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 312,000 $ 375,000 $ 358,152 170,000 220,000 211,526 139,000 120,000 112,701 322,000 335,000 331,933 100 100 41 943,100 1,050,100 1,014,353 923,100 1,050,000 1,014,436 923,100 1,050,000 1,014,436 $ 20,000 $ 100 (83) (See independent auditor's report.) - 119 - 83 VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS December 31, 2014 Downtown Capital Redevelopment Improvement Construction Total ASSETS Cash and investments $ 2,035,319 $ 436,476 $ 2,471,795 Receivables Other taxes 440,075 - 440,075 Due from other governments 352,000 252,075 604,075 Prepaid items 3,245 - 3,245 TOTAL ASSETS $ 2,830,639 $ 688,551 $ 3,519,190 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 56,316 $ 25,647 $ 81,963 Retainage payable - 7,500 7,500 Total liabilities 56,316 33,147 89,463 FUND BALANCES Nonspendable Prepaid items 3,245 - 3,245 Restricted Economic development - 655,404 655,404 Unrestricted Assigned Capital projects 2,771,078 - 2,771,078 Total fund balances 2,774,323 655,404 3,429,727 TOTAL LIABILITIES AND FUND BALANCES $ 2,830,639 $ 688,551 $ 3,519,190 (See independent auditor's report.) -120- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2014 REVENUES Taxes Property Other Intergovernmental Investment income Miscellaneous Total revenues EXPENDITURES Capital outlay Total expenditures NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 Downtown Capital Redevelopment Improvement Construction Total $ - $ 2,311,740 $ 2,311,740 1,254,676 - 1,254,676 - 252,375 252,375 517 361 878 140,181 - 140,181 1,395,374 2,564,476 3,959,850 718,354 2,978,005 3,696,359 718,354 2,978,005 3,696,359 677,020 (413,529) 263,491 2,097,303 1,068,933 3,166,236 $ 2,774,323 $ 655,404 $ 3,429,727 (See independent auditor's report.) - 121 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL IMPROVEMENT FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2014 REVENUES Othertaxes Home rule sales tax Investment income Miscellaneous Donations Total revenues EXPENDITURES Capital outlay Equipment Building improvements Infrastructure Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 1,246,000 $ 1,246,000 $ 1,254,676 1,000 1,000 517 10,000 141,000 140,181 1,257,000 1,388,000 1,395,374 304,247 334,847 238,622 637,000 910,800 380,382 755,000 849,200 99,350 1,696,247 2,094,847 718,354 $ (439,247) $ (706,847) 677,020 (See independent auditor's report.) -122- 2,097,303 $ 2,774,323 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL CAPITAL IMPROVEMENT FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2014 Budget Original Final Actual EXPENDITURES Equipment 75,000 64,800 35,072 SCI computer conversion 16,000 16,000 2,273 Bunker gear lockers 30,000 30,000 10,883 Computer financial software - - 4,500 Furniture replacement 33,000 33,000 - Thermal imaging camera 33,000 33,000 - Telephone system - Village hall - 14,000 13,955 Extrication equipment 65,000 65,000 65,000 Mobile video - 16,600 10,845 Radio equipment - police/fire 127,247 127,247 131,166 Total equipment 304,247 334,847 238,622 Building improvements Police and fire headquarters 96,000 140,800 78,319 Public works facility - 2,000 1,950 Other public facilities 541,000 768,000 300,113 Total building improvements 637,000 910,800 380,382 Infrastructure Residential street lights 75,000 64,800 35,072 Jogging path 240,000 240,000 11,395 Kensington road improvement - 66,000 45,914 Detention pond improvements 100,000 138,400 6,969 Other infrastructure 340,000 340,000 - Total infrastructure 755,000 849,200 99,350 TOTAL EXPENDITURES $ 1,696,247 $ 2,094,847 $ 718,354 (See independent auditor's report.) -123- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DOWNTOWN REDEVELOPMENT CONSTRUCTION FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2014 REVENUES Taxes Property taxes - other Tax increment Intergovernmental Investment income Total revenues EXPENDITURES Capital outlay Public improvements Contractual services Public improvements Infrastructure Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 2,425,000 246,000 1,000 2,672,000 $ 2,425,000 246,000 1,000 2,672,000 $ 2,311,740 252,375 361 2,564,476 193,040 193,040 196,419 2,813,922 2,873,922 2,764,810 115,000 355,000 16,776 3,121,962 3,421,962 2,978,005 $ (449,962) $ (749,962) (413,529) (See independent auditor's report.) -124- 1,068,933 $ 655,404 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL DOWNTOWN REDEVELOPMENT CONSTRUCTION FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2014 CAPITAL OUTLAY Public improvements Contractual services Audit services Other professional services Streetscape corridor maintenance Brick sidewalk sealing Streetscape furnishing Total contractual services Public improvements Other financing costs Property tax expense Sales tax rebate Return of increment Cook County Collection Facade program Total public improvements Infrastructure Downtown streetscape program Brick sidewalk Total infrastructure TOTAL EXPENDITURES Budget Original Final Actual $ 1,040 $ 1,040 $ 980 20,000 20,000 25,609 57,000 57,000 55,757 75,000 75,000 75,000 40,000 40,000 39,073 193,040 193,040 196,419 10,000 10,000 - 7,000 7,000 7,724 107,000 107,000 92,164 2,629,922 2,629,922 2,629,922 60,000 120,000 35,000 2,813,922 2,873,922 2,764,810 105,000 345,000 9,240 10,000 10,000 7,536 115,000 355,000 16,776 $ 3,121,962 $ 3,421,962 $ 2,978,005 (See independent auditor's report.) -125- MAJOR ENTERPRISE FUND VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATER AND SEWER FUND MAJOR ENTERPRISE FUND For the Year Ended December 31, 2014 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Administration and maintenance Depreciation Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Budget Original Final Actual $ 12,812,000 $ 12,812,000 $ 11,970,681 12,812,000 12,812,000 11,970,681 13,606,653 15,352,350 13,312,623 - - 466,877 13,606,653 15,352,350 13,779,500 (794,653) (2,540,350) (1,808,819) Property taxes 1,530,000 1,530,000 1,508,704 Investment income 1,100 1,100 3,100 Other income 42,000 42,000 79,470 Gain (loss) on disposal of capital assets - - (2,002) Total non-operating revenues (expenses) INCOME (LOSS) BEFORE CAPITAL GRANTS AND CONTRIBUTIONS CAPITAL GRANTS AND CONTRIBUTIONS CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 1,573,100 1,573,100 1,589,272 778,447 (967,250) (219,547) 373,498 $ 778,447 $ (967,250) 153,951 (See independent auditor's report.) -126- 34,086,453 $ 34,240,404 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL WATER AND SEWER FUND MAJOR ENTERPRISE FUND For the Year Ended December 31, 2014 CHARGES FOR SERVICES Water sales Sewer fees Sewer construction charge Water penalties Water meter fees Water and sewer taps Sewer penalties Miscellaneous TOTAL OPERATING REVENUES Budget Original Final Actual $ 9,763,000 $ 9,763,000 $ 9,097,239 2,223,000 2,223,000 2,029,010 685,000 685,000 682,827 100,000 100,000 83,969 20,000 20,000 22,488 20,000 20,000 20,826 - - 26,185 1,000 1,000 8,137 $ 12,812,000 $ 12,812,000 $ 11,970,681 (See independent auditor's report.) -127- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER AND SEWER FUND lu/:11L0].aOL41Ia'j9'j6y0MI1►D, For the Year Ended December 31, 2014 ADMINISTRATION AND MAINTENANCE Administration and support Personal services Employee benefits Other employee costs Contractual services Utilities Insurance Commodities and supplies Capital expenditures Total administration and support Maintenance of buildings Personal services Employee benefits Contractual services Utilities Commodities and supplies Total maintenance of buildings Maintenance of grounds Personal services Employee benefits Contractual services Commodities and supplies Total maintenance of grounds Water supply maintenance and repair Personal services Employee benefits Contractual services Utilities Commodities and supplies Total water supply maintenance and repair Budget Original Final Actual $ 397,260 $ 397,260 $ 403,950 209,833 209,833 219,930 36,660 36,660 29,513 685,826 685,826 690,745 43,758 43,758 32,705 80,474 80,474 80,474 12,382 12,382 9,905 12,200 12,200 2,714 1,478,393 1,478,393 1,469,936 151,739 151,739 164,915 69,065 69,065 71,729 16,500 63,500 7,755 6,000 6,000 5,656 1,530 1,530 196 244,834 291,834 250,251 63,415 63,415 66,953 20,218 20,218 21,303 28,560 28,560 27,957 5,915 5,915 4,717 118,108 118,108 120,930 386,247 386,247 407,993 144,562 144,562 147,062 145,431 145,431 104,601 85,000 85,000 85,509 80,000 80,000 52,191 841,240 841,240 797,356 (This schedule is continued on the following pages.) -128- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL (Continued) WATER AND SEWER FUND lu /:11L0].a OL41I a'j 9'j 64 0IlB1►1 %, For the Year Ended December 31, 2014 ADMINISTRATION AND MAINTENANCE (Continued) Water distribution maintenance and repair Personal services Employee benefits Contractual services Commodities and supplies Capital expenditures Total water distribution maintenance and repair Water valve and hydrant maintenance Personal services Employee benefits Contractual services Commodities and supplies Total water valve and hydrant maintenance Water meter installation, repair, and replacement Personal services Employee benefits Contractual services Commodities and supplies Capital expenditures Budget Original Final Actual $ 299,223 $ 299,223 $ 308,234 100,817 100,817 90,238 227,383 212,883 168,737 71,403 71,403 98,809 1,370 1,370 - 700,196 685,696 666,018 275,631 275,631 305,253 111,117 111,117 106,597 19,588 19,588 15,693 95,784 95,784 41,888 502,120 502,120 469,431 15 4, 02 6 15 4, 02 6 119,725 44,099 44,099 33,057 99,505 99,505 38,965 2,178 2,178 1,198 65,000 65,000 47,552 Total water meter installation, repair, and replacement 364,808 364,808 240,497 Equipment maintenance Contractual services Sanitary sewer maintenance and repair Personal services Employee benefits Contractual services Utilities Commodities and supplies Total sanitary sewer maintenance and repair 786,646 786,646 786,646 225,123 225,123 222,292 88,182 88,182 77,004 150,300 150,300 106,531 23,000 23,000 10,875 26,530 26,530 11,821 513,135 513,135 428,523 (This schedule is continued on the following page.) -129- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL (Continued) WATER AND SEWER FUND lu/:11L0].aOL41Ia'j9'j6y0IlB1►D, For the Year Ended December 31, 2014 Budget Original Final Actual ADMINISTRATION AND MAINTENANCE (Continued) Water system improvements Capital expenditures $ 875,000 $ 1,191,500 $ 1,035,039 Less capital expenditures capitalized - (13,403) (13,403) Total water system improvements Sanitary system improvements Capital expenditures Less capital expenditures capitalized Total sanitary system improvements Improvements to public buildings Capital expenditures Less capital expenditures capitalized Total improvements to public buildings Lake Michigan water acquisition Contractual services Total Lake Michigan water acquisition Total administration and maintenance Depreciation TOTAL OPERATING EXPENSES 875,000 1,178,097 1,021,636 1,175,000 1,440,000 487,971 - (265,000) (158,580) 1,175,000 1,175,000 329,391 1,219,500 2,783,000 1,195,379 (525,000) (861,400) (426,075) 694,500 1,921,600 769,304 5,312,673 5,495,673 5,962,704 5,312,673 5,495,673 5,962,704 13,606,653 15,352,350 13,312,623 - - 466,877 $ 13,606,653 $ 15,352,350 $ 13,779,500 (See independent auditor's report.) -130- NONMAJOR ENTERPRISE FUNDS Parking System Revenue Fund - to account for the provision of public parking services with fees shared with the commuter railroad. All activities are accounted for including administration, operations, maintenance, and collection. Village Parking System - to account for the provision of Village -owned public parking services including the Village Hall parking deck and leased commuter spaces. All activities are accounted for including administration, operations, maintenance, financing, related debt service, and billing and collection. VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS December 31, 2014 CURRENT ASSETS Parking Village System Parking Revenue System Total Cash and investments $ - $ 300,258 $ 300,258 Prepaid items 270 319 589 Receivables Othertaxes 31,787 3,532 35,319 Total current assets 32,057 304,109 336,166 CAPITAL ASSETS Capital assets not being depreciated - 232,354 232,354 Capital assets being depreciated, cost 364,800 - 364,800 Accumulated depreciation (364,800) - (364,800) Net capital assets - 232,354 232,354 Total assets 32,057 536,463 568,520 CURRENT LIABILITIES Accounts payable 4,213 20 4,233 Accrued payroll 562 759 1,321 Due to other funds 154,882 - 154,882 Unearned revenues 17,762 35,450 53,212 Compensated absences payable 241 337 578 Total current liabilities 177,660 36,566 214,226 LONG-TERM LIABILITIES Compensated absences payable 963 1,348 2,311 Net other postemployment benefits obligation 699 1,870 2,569 Total noncurrent liabilities 1,662 3,218 4,880 Total liabilities 179,322 39,784 219,106 NET POSITION Investment in capital assets - 232,354 232,354 Unrestricted (147,265) 264,325 117,060 TOTAL NET POSITION $ (147,265) $ 496,679 $ 349,414 (See independent auditor's report.) -131 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2014 OPERATING REVENUES Charges for services Parking fees Rental fees Total operating revenues OPERATING EXPENSES Administration, maintenance, and improvements Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Home rule sales tax Investment income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION (DEFICIT), JANUARY 1 NET POSITION (DEFICIT), DECEMBER 31 Parking Village System Parking Revenue System Total $ 119,480 $ 128,704 $ 248,184 - 6,600 6,600 119,480 135,304 254,784 154,770 175,218 329,988 154,770 175,218 329,988 (35,290) (39,914) (75,204) 90,627 10,070 100,697 - 89 89 90,627 10,159 100,786 55,337 (29,755) 25,582 (202,602) 526,434 323,832 $ (147,265) $ 496,679 $ 349,414 (See independent auditor's report.) -132- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2014 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Payments to suppliers Payments to employees Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Home rule sales tax Interfund transactions Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES None Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Investment income Net cash from investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 Parking Village System Parking Revenue System Total $ 134,047 $ 150,540 $ 284,587 (119,939) (121,361) (241,300) (40,457) (55,159) (95,616) (26,349) (25,980) (52,329) 84,070 9,341 93,411 (57,721) - (57,721) 26,349 9,341 35,690 89 89 89 89 (16,550) (16,550) 316,808 316,808 $ - $ 300,258 $ 300,258 (This statement is continued on the following page.) -133- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2014 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities Changes in assets and liabilities Prepaid expenses Accounts payable Accrued payroll and compensated absences Net other postemployment benefits obligation Unearned revenues NET CASH FROM OPERATING ACTIVITIES CASH AND INVESTMENTS Cash and cash equivalents Investments TOTAL CASH AND INVESTMENTS NONCASH TRANSACTIONS None Parking Village System Parking Revenue System Total $ (35,290) $ (39,914) $ (75,204) (270) (319) (589) (4,765) (476) (5,241) (834) (1,155) (1,989) 243 648 891 14,567 15,236 29,803 $ (26,349) $ (25,980) $ (52,329) $ - $ 300,258 $ 300,258 $ - $ 300,258 $ 300,258 (See independent auditor's report.) -134- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL PARKING SYSTEM REVENUE FUND NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2014 OPERATING REVENUES Charges for services Parking fees Parking fees - Lot A Parking fees - Lot C Total operating revenues OPERATING EXPENSES Administration, maintenance, and improvements Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Home rule sales tax Investment income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION (DEFICIT), JANUARY 1 NET POSITION (DEFICIT), DECEMBER 31 Budget Original Final Actual $ 60,000 $ 60,000 $ 62,881 52,000 52,000 56,599 112,000 112,000 119,480 250,032 250,032 154,770 250,032 250,032 154,770 (138,032) (138,032) (35,290) 90,000 90,000 90,627 100 100 - 90,100 90,100 90,627 $ (47,932) $ (47,932) 55,337 (See independent auditor's report.) -135- (202,602) $ (147,265) VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL PARKING SYSTEM REVENUE FUND NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2014 ADMINISTRATION, MAINTENANCE, AND IMPROVEMENTS Personal services Employee benefits Contractual services Utilities Insurance Commodities and supplies Capital expenditures TOTAL OPERATING EXPENSES Budget Original Final Actual $ 28,598 $ 28,598 $ 26,974 13,772 13,772 12,892 110,954 110,954 98,413 10,523 10,523 7,430 1,406 1,406 1,406 9,779 9,779 7,655 75,000 75,000 - $ 250,032 $ 250,032 $ 154,770 (See independent auditor's report.) -136- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL VILLAGE PARKING SYSTEM FUND NONMAJOR ENTERPRISES FUNDS For the Year Ended December 31, 2014 OPERATING REVENUES Charges for services Parking fees Parking fees - Lot D Space rent - Wille Street lot Rental fees Total operating revenues OPERATING EXPENSES Administration, maintenance, and improvements Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Home rule sales tax Investment income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual $ 105,000 $ 105,000 $ 116,164 10,000 10,000 12,540 6,600 6,600 6,600 121,600 121,600 135,304 306,760 306,760 175,218 306,760 306,760 175,218 (185,160) (185,160) (39,914) 10,000 10,000 10,070 100 100 89 10,100 10,100 10,159 $ (175,060) $ (175,060) (29,755) (See independent auditor's report.) -137- 526,434 $ 496,679 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VILLAGE PARKING SYSTEM FUND NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2014 ADMINISTRATION, MAINTENANCE, AND IMPROVEMENTS Personal services Employee benefits Contractual services Insurance Commodities and supplies Capital expenditures TOTAL OPERATING EXPENSES Budget Original Final Actual $ 35,788 $ 35,788 $ 36,903 17,796 17,796 17,749 91,055 91,055 70,702 1,175 1,175 1,175 510 510 499 160,436 160,436 48,190 $ 306,760 $ 306,760 $ 175,218 (See independent auditor's report.) -138- INTERNAL SERVICE FUNDS Computer Replacement Fund - to account for the acquisition of Village computer hardware. Financing is being provided by charges to various village funds. Risk Management Fund - to account for the servicing and payment of claims for liability, property, casualty coverage, workers' compensation, and medical benefits. Financing is being provided by charges to the various village funds. Vehicle Replacement Fund - to account for the acquisition and depreciation of village vehicles. Financing is being provided by charges to the various village funds. Vehicle Maintenance Fund - to account for the maintenance and repair of all village vehicles. Financing is being provided by charges to various village funds. CURRENT ASSETS Cash and investments Receivables Other Due from other governments Prepaids Inventories Total current assets NONCURRENT ASSETS Deposits - insurance VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2014 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ 352,377 $ 1,688,165 $ 7,916,996 $ 518,673 $ 10,476,211 - - - 1,958 1,958 - - 2,154 9,285 11,439 17,864 83,702 - 543 102,109 - - - 290,941 290,941 370,241 1,771,867 7,919,150 821,400 10,882,658 - 1,599,995 - - 1,599,995 CAPITAL ASSETS Capital assets not being depreciated - - 768,303 - 768,303 Capital assets being depreciated, cost 65,253 - 11,624,589 139,860 11,829,702 Accumulated depreciation (51,677) - (7,874,792) (125,520) (8,051,989) Net capital assets 13,576 - 4,518,100 14,340 4,546,016 Total assets 383,817 3,371,862 12,437,250 835,740 17,028,669 CURRENT LIABILITIES Accounts payable 1,549 9,804 28,232 18,732 58,317 Accrued payroll - - - 15,916 15,916 Claims payable - 929,486 - - 929,486 Other payables - 87,781 - - 87,781 Compensated absences payable - - - 25,863 25,863 Total current liabilities 1,549 1,027,071 28,232 60,511 1,117,363 LONG-TERM LIABILITIES Compensated absences payable - - - 103,450 103,450 Net other postemployment benefits obligation - - - 10,247 10,247 Total long-term liabilities - - - 113,697 113,697 Total liabilities 1,549 1,027,071 28,232 174,208 1,231,060 NET POSITION Investment in capital assets 13,576 - 4,518,100 14,340 4,546,016 Unrestricted 368,692 2,344,791 7,890,918 647,192 11,251,593 TOTAL NET POSITION $ 382,268 $ 2,344,791 $ 12,409,018 $ 661,532 $ 15,797,609 (See independent auditor's report.) -139- OPERATING REVENUES Charges for services Contributions Miscellaneous Total operating revenues OPERATING EXPENSES Administration and maintenance Insurance and claims Depreciation Total operating expenses OPERATING INCOME (LOSS) VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2014 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ 23,088 $ 6,461,362 $ 1,362,550 $ 2,138,317 $ 9,985,317 - 1,307,936 - - 1,307,936 - 31,698 - 526 32,224 23,088 7,800,996 1,362,550 2,138,843 11,325,477 142,362 380,326 5,960 2,050,009 2,578,657 - 7,020,470 - - 7,020,470 13,051 - 575,113 3,187 591,351 155,413 7,400,796 581,073 2,053,196 10,190,478 (132,325) 400,200 781,477 85,647 1,134,999 NON-OPERATING REVENUES (EXPENSES) Investment income 738 2,222 6,763 554 10,277 Gain on disposal of capital assets - - 65,034 - 65,034 Total non-operating revenues (expenses) 738 2,222 71,797 554 75,311 CHANGES IN NET POSITION (131,587) 402,422 853,274 86,201 1,210,310 NET POSITION, JANUARY 1 513,855 1,942,369 11,555,744 575,331 14,587,299 NET POSITION, DECEMBER 31 $ 382,268 $ 2,344,791 $ 12,409,018 $ 661,532 $ 15,797,609 (See independent auditor's report.) -140- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2014 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from interfund services Receipts from miscellaneous revenues Payments to suppliers Payments to employees Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfer in Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets Purchase of capital assets Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments Purchase of investments Investment income Net cash from investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ - $ 1,310,560 $ - $ - $ 1,310,560 23,088 6,461,362 1,346,300 2,138,317 9,969,067 - 31,698 16,718 375 48,791 (158,678) (8,368,756) 21,922 (790,991) (9,296,503) - (1,389,379) (1,389,379) (135,590) (565,136) 1,384,940 (41,678) 642,536 122,182 122,182 (1.129.134) (1.129.134 (1,006,952) (1,006,952) 738 2,222 6,763 554 10,277 738 2,222 6,763 554 10,277 (134,852) (562,914) 384,751 (41,124) (354,139) 487,229 2,251,079 7,532,245 559,797 10,830,350 $ 352,377 $ 1,688,165 $ 7,916,996 $ 518,673 $ 10,476,211 (This statement is continued on the following page.) - 141 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) INTERNAL SERVICE FUNDS For the Year Ended December 31, 2014 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation Changes in assets and liabilities Receivables Inventories Prepaid expenses Deposits - insurance Accounts payable Accrued payroll and compensated absences Net other postemployment benefits obligation Claims payable NET CASH FROM OPERATING ACTIVITIES CASH AND INVESTMENTS Cash and cash equivalents Investments TOTAL CASH AND INVESTMENTS NONCASH TRANSACTIONS None Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ (132,325) $ 400,200 $ 781,477 $ 85,647 $ 1,134,999 13,051 575,113 3,187 591,351 2,624 468 (151) 2,941 - - 390 390 (17,865) (10,602) (22) (28,489) - (1,078,185) - - (1,078,185) 1,549 41,220 27,882 (43,360) 27,291 - - - (90,920) (90,920) - 3,551 3,551 79,607 - 79,607 $ (135,590) $ (565,136) $ 1,384,940 $ (41,678) $ 642,536 $ 352,377 $ 1,688,165 $ 7,916,996 $ 518,673 $ 10,476,211 $ 352,377 $ 1,688,165 $ 7,916,996 $ 518,673 $ 10,476,211 (See independent auditor's report.) -142- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL COMPUTER REPLACEMENT FUND For the Year Ended December 31, 2014 OPERATING REVENUES Charges for services Refuse Disposal Fund Water and Sewer Fund Vehicle Maintenance Fund Total operating revenues OPERATING EXPENSES Administration Capital outlay Depreciation Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Investment income CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual $ 771 $ 771 $ 771 19,232 19,232 19,232 3,085 3,085 3,085 23,088 23,088 23,088 247,480 247,480 142,362 - - 13,051 247,480 247,480 155,413 (224,392) (224,392) (132,325) 1,000 1,000 738 $ (223,392) $ (223,392) (131,587) (See independent auditor's report.) -143- 513,855 $ 382,268 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMPUTER REPLACEMENT FUND For the Year Ended December 31, 2014 ADMINISTRATION Capital outlay Total administration Depreciation TOTAL OPERATING EXPENSES Budget Original Final Actual $ 247,480 $ 247,480 $ 142,362 247,480 247,480 142,362 - - 13,051 247,480 $ 247,480 $ 155,413 (See independent auditor's report.) -144- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL RISK MANAGEMENT FUND For the Year Ended December 31, 2014 OPERATING REVENUES Charges for services Contributions Miscellaneous Total operating revenues OPERATING EXPENSES Administration Insurance and claims Total operating expenses OPERATING INCOME (LOSS) Budget Original Final Actual $ 6,456,273 $ 6,456,273 $ 6,461,362 1,357,600 1,357,600 1,307,936 1,000 1,000 31,698 7,814,873 7,814,873 7,800,996 388,682 388,682 380,326 7,456,256 8,416,256 7,020,470 7,844,938 8,804,938 7,400,796 (30,065) (990,065) 400,200 NON-OPERATING REVENUES (EXPENSES) Investment income 2,000 2,000 2,222 CHANGE IN NET POSITION $ (28,065) $ (988,065) 402,422 NET POSITION, JANUARY 1 1,942,369 NET POSITION, DECEMBER 31 (See independent auditor's report.) -145- $ 2,344,791 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL RISK MANAGEMENT FUND For the Year Ended December 31, 2014 OPERATING REVENUES Charges for services General Fund Refuse Disposal Fund Water and Sewer Fund Parking System Revenue Fund Village Parking Fund Vehicle Maintenance Fund Library Total charges for services Contributions Employee Health insurance Additional life insurance Retiree Health insurance Total contributions Miscellaneous Other reimbursements Miscellaneous income Total miscellaneous TOTAL OPERATING REVENUES Budget Original Final Actual $ 5,509,258 $ 5,509,258 $ 5,371,196 34,280 34,280 34,280 125,594 125,594 125,594 1,406 1,406 1,406 1,175 1,175 1,175 22,560 22,560 22,560 762,000 762,000 905,151 6,456,273 6,456,273 6,461,362 467,000 467,000 447,179 12,600 12,600 12,504 878,000 878,000 848,253 1,357,600 1,357,600 1,307,936 1,000 1,000 31,213 - - 485 1,000 1,000 31,698 $ 7,814,873 $ 7,814,873 $ 7,800,996 (See independent auditor's report.) -146- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL RISK MANAGEMENT FUND For the Year Ended December 31, 2014 Budget Original Final Actual ADMINISTRATION Casualty and property program Claims administration $ 10,000 $ 10,000 $ 13,630 Other contractual services 12,000 12,000 10,300 Total casualty and property program 22,000 22,000 23,930 Medical program Claims administration 298,682 298,682 296,580 Workers' compensation Claims administration 63,000 63,000 59,816 Capital outlay Other equipment 5,000 5,000 - Total administration 388,682 388,682 380,326 INSURANCE AND CLAIMS Casualty and property program Property insurance 112,000 112,000 108,622 HELP excess liability insurance 77,500 77,500 79,755 Workers' compensation insurance 78,000 78,000 87,054 Faithful performance insurance 3,000 3,000 2,678 Surety bonds 2,000 2,000 900 Other insurance 2,500 2,500 2,311 Property claims 1,000 1,000 - Liability claims 100,000 710,000 739,192 Workers' compensation claims 420,000 770,000 704,889 Auto claims 20,000 20,000 37,297 Village property claims 20,000 20,000 6,538 Unemployment compensation claims 10,000 10,000 - Tree hazard study 15,000 15,000 5,688 Other claims 2,000 2,000 6,381 Total casualty and property program 863,000 1,823,000 1,781,305 Medical program Medical expense - HMO plan 1,759,958 1,759,958 1,671,984 Medical expense - indemnity plan 4,801,838 4,801,838 3,541,344 Life insurance 31,460 31,460 25,837 Total medical program 6,593,256 6,593,256 5,239,165 Total insurance and claims 7,456,256 8,416,256 7,020,470 TOTAL OPERATING EXPENSES $ 7,844,938 $ 8,804,938 $ 7,400,796 (See independent auditor's report.) -147- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND For the Year Ended December 31, 2014 OPERATING REVENUES Charges for services OPERATING EXPENSES Administration Depreciation Total operating expenses OPERATING INCOME NON-OPERATING REVENUES (EXPENSES) Investment income Gain on sale of capital assets Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual $ 1,356,300 $ 1,356,300 $ 1,362,550 467,000 630,700 5,960 - - 575,113 467,000 630,700 581,073 889,300 725,600 781,477 5,000 5,000 6,763 60,000 60,000 65,034 65,000 65,000 71,797 $ 954,300 $ 790,600 853,274 (See independent auditor's report.) -148- 11,555,744 $ 12,409,018 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND For the Year Ended December 31, 2014 CHARGES FOR SERVICES General Fund Mayor and board Manager's office Television services division Community development - planning Community development - building Community development - housing Community development - health Police department Fire department Public works department Engineering division Water and Sewer Fund Parking System Revenue Fund Village Parking Fund Other fee TOTAL OPERATING REVENUE Budget Original Final Actual $ 2,500 $ 2,500 $ 2,500 3,200 3,200 3,200 1,600 1,600 1,600 1,500 1,500 1,500 2,100 2,100 2,100 9,800 9,800 9,800 1,500 1,500 1,500 154,800 154,800 154,800 509,000 509,000 509,000 343,700 343,700 343,700 8,900 8,900 8,900 283,500 283,500 283,500 9,680 9,680 9,680 14,520 14,520 14,520 10,000 10,000 16,250 $ 1,356,300 $ 1,356,300 $ 1,362,550 (See independent auditor's report.) -149- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND For the Year Ended December 31, 2014 OPERATING EXPENSES Administration Capital outlay Less capital assets capitalized Total administration Depreciation TOTAL OPERATING EXPENSES Budget Original Final Actual $ 1,614,000 $ 1,777,700 $ 1,135,094 (1,147,000) (1,147,000) (1,129,134) 467,000 630,700 5,960 575,113 $ 467,000 $ 630,700 $ 581,073 (See independent auditor's report.) -150- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND For the Year Ended December 31, 2014 Budget Original Final Actual OPERATING REVENUES Charges for services $ 2,138,317 $ 2,138,317 $ 2,138,317 Miscellaneous income - - 526 Total operating revenues OPERATING EXPENSES Administration and maintenance Depreciation Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES Investment income Total non-operating revenues CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 2,138,317 2,138,317 2,138,843 2,152,732 2,212,732 2,050,009 - - 3,187 2,152,732 2,212,732 2,053,196 (14,415) (74,415) 85,647 554 554 $ (14,415) $ (74,415) 86,201 (See independent auditor's report.) -151 - 575,331 $ 661,532 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND For the Year Ended December 31, 2014 CHARGES FOR SERVICES General Fund Mayor and board Manager's office Television services division Community development - planning Community development - building Community development - housing Community development - health Police department Fire department Public works department Engineering division Water and Sewer Fund Parking System Revenue Fund Village Parking Fund Total charges for services Miscellaneous income Budget Original Final Actual $ 3,207 $ 3,207 $ 3,207 3,207 3,207 3,207 3,422 3,422 3,422 3,207 3,207 3,207 4,490 4,490 4,490 22,452 22,452 22,452 3,207 3,207 3,207 545,486 545,486 545,486 338,496 338,496 338,496 663,306 663,306 663,306 34,855 34,855 34,855 503,146 503,146 503,146 4,918 4,918 4,918 4,918 4,918 4,918 2,138,317 2,138,317 2,138,317 - - 526 TOTAL OPERATING EXPENSES $ 2,138,317 $ 2,138,317 $ 2,138,843 (See independent auditor's report.) -152- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND For the Year Ended December 31, 2014 ADMINISTRATION AND MAINTENANCE Vehicle division administration Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Office equipment Total vehicle division administration Vehicle maintenance program Personal services Employee benefits Contractual services Commodities and supplies Other equipment Total vehicle maintenance program Total administration and maintenance Depreciation TOTAL OPERATING EXPENSES Budget Original Final Actual $ 109,198 $ 109,198 $ 109,664 69,053 69,053 45,746 2,361 2,361 2,366 10,383 10,383 5,539 3,070 3,070 2,260 1,904 1,904 2,194 556 556 268 196,525 196,525 168,037 831,331 891,331 844,022 315,574 315,574 302,578 90,355 90,355 78,350 699,177 699,177 638,633 19,770 19,770 18,389 1,956,207 2,016,207 1,881,972 2,152,732 2,212,732 2,050,009 3,187 $ 2,152,732 $ 2,212,732 $ 2,053,196 (See independent auditor's report.) -153- FIDUCIARY FUNDS PENSION TRUST FUNDS Police Pension Fund - to account for the resources necessary to provide retirement and disability benefits to personnel of the Mount Prospect Police Department. Revenues are provided by the following: Village contributions (made possible by a property tax levy), employee withholdings, and investment income. Firefighters' Pension Fund - to account for the resources necessary to provide retirement and disability benefits to personnel of the Mount Prospect Fire Department. Revenues are provided by the following: Village contributions (made possible by a property tax levy), employee withholdings, and investment income. AGENCY FUNDS Escrow Deposit Fund - to account for refundable deposits held by the Village to ensure the completion of public improvements. The money is held by the Village until the improvements are completed. Flexcomp Escrow Fund - to account for employee payroll deductions pursuant to a Section 125 flexible compensation plan. The money is reimbursed to employees for qualified medical and dependent care expenses. Library Bonds Escrow Fund - to account for the accumulation of resources for the Library bond issue payments. VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF NET POSITION PENSION TRUST FUNDS December 31, 2014 ASSETS Cash and cash equivalents Investments State and local obligations U.S. Government and agency obligations Corporate bonds and obligations Mutual funds Total cash and investments Accrued interest receivable Due from other funds Prepaids Other receivables Total assets LIABILITIES Accounts payable Total liabilities NET POSITION HELD IN TRUST FOR PENSION BENEFITS Police Firefighters' Pension Pension Total $ 1,371,257 $ 919,531 $ 2,290,788 2,530,858 1,306,034 3,836,892 12,614,255 11,880,289 24,494,544 8,004,178 7,464,901 15,469,079 34,140,326 34,859,858 69,000,184 58,660,874 56,430,613 115,091,487 129,425 107,671 237,096 56,708 47,439 104,147 1,392 1,110 2,502 309 - 309 58,848,708 56,586,833 115,435,541 28,783 18,494 47,277 28,783 18,494 47,277 $ 58,819,925 $ 56,568,339 $ 115,388,264 (See independent auditor's report.) -154- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2014 Police Firefighters' Pension Pension Total ADDITIONS Contributions Employer $ 2,924,226 $ 2,466,115 $ 5,390,341 Plan members 851,363 644,384 1,495,747 Other - 50 50 Total contributions 3,775,589 3,110,549 6,886,138 Investment income Interest earned 790,677 648,749 1,439,426 Net change in fair value 3,157,710 3,399,771 6,557,481 Less investment expenses (102,525) (85,268) (187,793) Net investment income 3,845,862 3,963,252 7,809,114 Total additions 7,621,451 7,073,801 14,695,252 DEDUCTIONS Administration 60,382 62,889 123,271 Benefits and refunds 4,117,120 4,158,988 8,276,108 Total deductions 4,177,502 4,221,877 8,399,379 NET INCREASE 3,443,949 2,851,924 6,295,873 NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 55,375,976 53,716,415 109,092,391 December 31 $ 58,819,925 $ 56,568,339 $115,388,264 (See independent auditor's report.) -155- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN NET POSITION - BUDGET AND ACTUAL POLICE PENSION FUND For the Year Ended December 31, 2014 Budget Original Final Actual ADDITIONS Contributions Employer $ 2,923,224 $ 2,923,224 $ 2,924,226 Plan members 817,000 817,000 851,363 Other 2,000 2,000 - Total contributions 3,742,224 3,742,224 3,775,589 Investment income Interest earned 711,900 711,900 790,677 Net change in fair value 2,704,000 2,930,000 3,157,710 Less investment expenses (101,000) (101,000) (102,525) Net investment income 3,314,900 3,540,900 3,845,862 Total additions 7,057,124 7,283,124 7,621,451 DEDUCTIONS Administration 61,450 75,450 60,382 Benefits and refunds 3,937,366 4,126,366 4,117,120 Total deductions 3,998,816 4,201,816 4,177,502 NET INCREASE $ 3,058,308 $ 3,081,308 3,443,949 NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 55,375,976 December 31 $ 58,819,925 (See independent auditor's report.) -156- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN NET POSITION - BUDGET AND ACTUAL FIREFIGHTERS' PENSION FUND For the Year Ended December 31, 2014 Budget Original Final Actual ADDITIONS Contributions Employer $ 2,469,042 $ 2,469,042 $ 2,466,115 Plan members 608,000 608,000 644,384 Other 2,000 2,000 50 Total contributions 3,079,042 3,079,042 3,110,549 Investment income Interest earned 658,200 658,200 648,749 Net change in fair value 2,507,000 2,287,000 3,399,771 Less investment expenses (89,000) (89,000) (85,268) Net investment income 3,076,200 2,856,200 3,963,252 Total additions 6,155,242 5,935,242 7,073,801 DEDUCTIONS Administration 63,600 77,600 62,889 Benefits and refunds 4,021,161 4,166,161 4,158,988 Total deductions 4,084,761 4,243,761 4,221,877 NET INCREASE $ 2,070,481 $ 1,691,481 2,851,924 NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 53,716,415 December 31 $ 56,568,339 (See independent auditor's report.) -157- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2014 Balances Balances January 1 Additions Deductions December 31 All Funds ASSETS Cash and investments $ 1,511,610 $ 4,734,280 $ 5,036,402 $ 1,209,488 Due from other funds - 99,210 99,210 - Other receivables - 16,810 16,810 - TOTAL ASSETS $ 1,511,610 $ 4,850,300 $ 5,152,422 $ 1,209,488 LIABILITIES Deposits payable $ 1,504,273 $ 1,503,236 $ 1,798,021 $ 1,209,488 Due to other funds - 412,690 412,690 - Other liabilities 7,221 944,818 952,039 - Due to other governments 116 1,574,893 1,575,009 - TOTAL LIABILITIES $ 1,511,610 $ 4,435,637 $ 4,737,759 $ 1,209,488 Escrow Deposit Fund ASSETS Cash and investments $ 1,472,644 $ 1,655,933 $ 1,952,206 $ 1,176,371 Due from other funds - 99,210 99,210 - Other receivables - 16,810 16,810 - TOTAL ASSETS $ 1,472,644 $ 1,771,953 $ 2,068,226 $ 1,176,371 LIABILITIES Deposits payable $ 1,465,423 $ 1,266,768 $ 1,555,820 $ 1,176,371 Due to other funds - 400,231 400,231 - Other liabilities 7,221 944,818 952,039 - TOTAL LIABILITIES $ 1,472,644 $ 2,611,817 $ 2,908,090 $ 1,176,371 (This statement is continued on the following page.) -158- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (Continued) AGENCYFUNDS For the Year Ended December 31, 2014 Balances Balances January 1 Additions Deductions December 31 Flexcomp Escrow Fund ASSETS Cash and investments $ 38,850 $ 392,991 $ 398,724 $ 33,117 TOTAL ASSETS $ 38,850 $ 392,991 $ 398,724 $ 33,117 LIABILITIES Deposits payable $ 38,850 $ 236,468 $ 242,201 $ 33,117 Due to other funds - 12,459 12,459 - TOTAL LIABILITIES $ 38,850 $ 248,927 $ 254,660 $ 33,117 Library Bonds Escrow Fund ASSETS Cash and investments $ 116 $ 2,685,356 $ 2,685,472 $ - TOTAL ASSETS $ 116 $ 2,685,356 $ 2,685,472 $ - LIABILITIES Due to other governments $ 116 $ 1,574,893 $ 1,575,009 $ - TOTAL LIABILITIES $ 116 $ 1,574,893 $ 1,575,009 $ - (See independent auditor's report.) -159- LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS To account for the noncurrent portion of the Village's General Obligation Bond Issues, EPA flood loans, installment contracts and notes payable, pension contributions, compensated absences, and other postemployment benefits obligations. H A°A a t o� Oxw a A --E W ° -2 c o C7 0 o Cc) o o 0 on a) 0 2 or`or`Nvr O N O N n N c o°�ovvr`� vi N -� o V w c r` 00 N M V M v N 00 N [� c o z � cd 0 n. u c fl p a w O W o o w an o o ca b LONG-TERM DEBT REQUIREMENTS VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2006 December 31, 2014 Date of Issue December 15, 2006 Date of Maturity December 1, 2022 Authorized Issue $10,000,000 Denomination of Bonds $5,000 Interest Rates 3.75% to 4.10% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Wells Fargo Bank, N.A. CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2014 9 $ 55,000 $ 381,418 $ 436,418 2015 $ 190,709 2015 $ 190,709 2015 10 555,000 379,355 934,355 2016 189,678 2016 189,677 2016 11 1,360,000 358,265 1,718,265 2017 179,132 2017 179,133 2017 12 1,410,000 305,905 1,715,905 2018 152,953 2018 152,952 2018 13 1,465,000 250,915 1,715,915 2019 125,457 2019 125,458 2019 14 1,525,000 193,048 1,718,048 2020 96,524 2020 96,524 2020 15 1,585,000 132,048 1,717,048 2021 66,024 2021 66,024 2021 16 1,655,000 67,855 1,722,855 2022 33,928 2022 33,927 $ 9,610,000 $ 2,068,809 $ 11,678,809 $ 1,034,405 $ 1,034,404 (See independent auditor's report.) -162- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2009 December 31, 2014 Date of Issue March 11, 2009 Date of Maturity December 1, 2028 Authorized Issue $10,000,000 Denomination of Bonds $5,000 Interest Rates 3.005% to 4.500% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June I Amount December 1 Amount 2014 - $ - $ 417,262 $ 417,262 2015 $ 208,631 2015 $ 208,631 2015 - - 417,262 417,262 2016 208,631 2016 208,631 2016 - - 417,262 417,262 2017 208,631 2017 208,631 2017 - - 417,262 417,262 2018 208,631 2018 208,631 2018 - - 417,262 417,262 2019 208,631 2019 208,631 2019 - - 417,262 417,262 2020 208,631 2020 208,631 2020 - - 417,262 417,262 2021 208,631 2021 208,631 2021 - - 417,262 417,262 2022 208,631 2022 208,631 2022 41-247 1,035,000 417,262 1,452,262 2023 208,631 2023 208,631 2023 248-559 1,560,000 375,864 1,935,864 2024 187,932 2024 187,932 2024 560-889 1,650,000 313,464 1,963,464 2025 156,732 2025 156,732 2025 890-1239 1,750,000 244,164 1,994,164 2026 122,082 2026 122,082 2026 1240-1609 1,850,000 168,914 2,018,914 2027 84,457 2027 84,457 2027 1610-2000 1,955,000 87,976 2,042,976 2028 43,988 2028 43,988 $ 9,800,000 $ 4,945,740 $ 14,745,740 $ 2,472,870 $ 2,472,870 (See independent auditor's report.) -163- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2009B December 31, 2014 Date of Issue December 22, 2009 Date of Maturity December 1, 2021 Authorized Issue $3,430,000 Denomination of Bonds $5,000 Interest Rates 2.50% to 3.75% Interest Dates June I and December I Principal Maturity Date December I Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June I Amount December I Amount 2014 219-279 $ 305,000 $ 78,350 $ 383,350 2015 $ 39,175 2015 $ 39,175 2015 280-342 315,000 70,725 385,725 2016 35,362 2016 35,363 2016 343-406 320,000 61,275 381,275 2017 30,637 2017 30,638 2017 407-472 330,000 51,675 381,675 2018 25,837 2018 25,838 2018 473-540 340,000 40,125 380,125 2019 20,062 2019 20,063 2019 541-612 360,000 27,375 387,375 2020 13,687 2020 13,688 2020 613-686 370,000 13,875 383,875 2021 6,937 2021 6,938 $ 2,340,000 $ 343,400 $ 2,683,400 $ 171,697 $ 171,703 (See independent auditor's report.) -164- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS TAXABLE GENERAL OBLIGATION BONDS OF 2009C December 31, 2014 Date of Issue December 22, 2009 Date of Maturity December 1, 2029 Authorized Issue $2,650,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 5.75% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2014 6-13 $ 40,000 $ 134,272 $ 174,272 2015 $ 67,136 2015 $ 67,136 2015 14-24 55,000 132,933 187,933 2016 66,467 2016 66,466 2016 25-39 75,000 130,842 205,842 2017 65,421 2017 65,421 2017 40-58 95,000 127,655 222,655 2018 63,828 2018 63,827 2018 59-82 120,000 123,380 243,380 2019 61,690 2019 61,690 2019 83-110 140,000 118,100 258,100 2020 59,050 2020 59,050 2020 111-142 160,000 111,520 271,520 2021 55,760 2021 55,760 2021 143-242 500,000 104,000 604,000 2022 52,000 2022 52,000 2022 243-330 440,000 79,500 519,500 2023 39,750 2023 39,750 2023 - - 57,500 57,500 2024 28,750 2024 28,750 2024 - - 57,500 57,500 2025 28,750 2025 28,750 2025 - - 57,500 57,500 2026 28,750 2026 28,750 2026 - - 57,500 57,500 2027 28,750 2027 28,750 2027 - - 57,500 57,500 2028 28,750 2028 28,750 2028 331-530 1,000,000 57,500 1,057,500 2029 28,750 2029 28,750 $ 2,625,000 $ 1,407,202 $ 4,032,202 $ 703,602 $ 703,600 (See independent auditor's report.) -165- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2011A December 31, 2014 Date of Issue July 29, 2011 Date of Maturity December 1, 2016 Authorized Issue $4,100,000 Denomination of Bonds $5,000 Interest Rates 1.75% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at JP Morgan Chase CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2014 456-675 $ 1,100,000 $ 31,938 $ 1,131,938 2015 $ 15,969 2015 $ 15,969 2015 676-820 725,000 12,688 737,688 2016 6,344 2016 6,344 $ 1,825,000 $ 44,626 $ 1,869,626 $ 22,313 $ 22,313 (See independent auditor's report.) -166- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2011B December 31, 2014 Date of Issue July 29, 2011 Date of Maturity December 1, 2020 Authorized Issue $5,160,000 Denomination of Bonds $5,000 Interest Rates 2.52% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at JP Morgan Chase CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2014 162-297 $ 680,000 $ 109,746 $ 789,746 2015 $ 54,873 2015 $ 54,873 2015 298-436 695,000 92,610 787,610 2016 46,305 2016 46,305 2016 437-579 715,000 75,096 790,096 2017 37,548 2017 37,548 2017 580-726 735,000 57,078 792,078 2018 28,539 2018 28,539 2018 727-877 755,000 38,556 793,556 2019 19,278 2019 19,278 2019 878-1032 775,000 19,530 794,530 2020 9,765 2020 9,765 $ 4,355,000 $ 392,616 $ 4,747,616 $ 196,308 $ 196,308 (See independent auditor's report.) -167- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2012C December 31, 2014 Date of Issue January 3, 2012 Date of Maturity December 1, 2022 Authorized Issue $2,975,000 Denomination of Bonds $5,000 Interest Rates 3.1% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at JP Morgan Chase CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2014 - $ - $ 54,096 $ 54,096 2015 $ 27,048 2015 $ 27,048 2015 - - 54,096 54,096 2016 27,048 2016 27,048 2016 - - 54,096 54,096 2017 27,048 2017 27,048 2017 - - 54,096 54,096 2018 27,048 2018 27,048 2018 - - 54,096 54,096 2019 27,048 2019 27,048 2019 - - 54,096 54,096 2020 27,048 2020 27,048 2020 247-418 860,000 54,096 914,096 2021 27,048 2021 27,048 2021 419-595 885,000 27,436 912,436 2022 13,718 2022 13,718 $ 1,745,000 $ 406,108 $ 2,151,108 $ 203,054 $ 203,054 (See independent auditor's report.) -168- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2013 December 31, 2014 Date of Issue September 10,2013 Date of Maturity December 1, 2033 Authorized Issue $9,800,000 Denomination of Bonds $5,000 Interest Rates 3.000% to 4.125% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2014 $ - $ 369,956 $ 369,956 2015 $ 184,978 2015 $ 184,978 2015 - 369,956 369,956 2016 184,978 2016 184,978 2016 - - 369,956 369,956 2017 184,978 2017 184,978 2017 - - 369,956 369,956 2018 184,978 2018 184,978 2018 - - 369,956 369,956 2019 184,978 2019 184,978 2019 1-111 555,000 369,956 924,956 2020 184,978 2020 184,978 2020 112-225 570,000 353,306 923,306 2021 176,653 2021 176,653 2021 226-342 585,000 336,206 921,206 2022 168,103 2022 168,103 2022 343-463 605,000 318,656 923,656 2023 159,328 2023 159,328 2023 464-588 625,000 300,506 925,506 2024 150,253 2024 150,253 2024 589-718 650,000 275,506 925,506 2025 137,753 2025 137,753 2025 719-853 675,000 249,506 924,506 2026 124,753 2026 124,753 2026 854-993 700,000 222,506 922,506 2027 111,253 2027 111,253 2027 994-1139 730,000 194,506 924,506 2028 97,253 2028 97,253 2028 1140-1291 760,000 165,307 925,307 2029 82,653 2029 82,654 2029 1292-1449 790,000 134,907 924,907 2030 67,453 2030 67,454 2030 1450-1613 820,000 103,307 923,307 2031 51,653 2031 51,654 2031 1614-1783 850,000 70,507 920,507 2032 35,253 2032 35,254 2032 1784-1960 885,000 36,507 921,507 2033 18,253 2033 18,254 $ 9,800,000 $ 4,980,969 $ 14,780,969 $ 2,490,482 $ 2,490,487 (See independent auditor's report.) -169- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2014 December 31, 2014 Date of Issue February 4, 2014 Date of Maturity December 1, 2023 Authorized Issue $6,290,000 Denomination of Bonds $5,000 Interest Rate 3% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2014 64-121 $ 290,000 $ 179,250 $ 469,250 2015 $ 89,625 2015 $ 89,625 2015 122-181 300,000 170,550 470,550 2016 85,275 2016 85,275 2016 182-242 305,000 161,550 466,550 2017 80,775 2017 80,775 2017 243-323 405,000 152,400 557,400 2018 76,200 2018 76,200 2018 324-435 560,000 140,250 700,250 2019 70,125 2019 70,125 2019 436-587 760,000 123,450 883,450 2020 61,725 2020 61,725 2020 588-780 965,000 100,650 1,065,650 2021 50,325 2021 50,325 2021 781-1005 1,125,000 71,700 1,196,700 2022 35,850 2022 35,850 2022 1006-1258 1,265,000 37,950 1,302,950 2023 18,975 2023 18,975 $ 5,975,000 $ 1,137,750 $ 7,112,750 $ 568,875 $ 568,875 (See independent auditor's report.) -170- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS IEPA FLOOD LOAN (L17-0855) CONTRACT PAYABLE OF 1997 Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at December 31, 2014 November 1, 1997 November 1, 2017 $1,203,550 2.89% May 1 and November 1 May 1 and November 1 Illinois Environmental Protection Agency CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Payment Requirements Year Numbers Principal Interest Total 2015 35-36 $ 74,628 $ 6,124 $ 80,752 2016 37-38 76,800 3,952 80,752 2017 39-40 79,035 1,717 80,752 $ 230,463 $ 11,793 $ 242,256 (See independent auditor's report.) -171- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS IEPA FLOOD LOAN (L17-1087) CONTRACT PAYABLE OF 1999 Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at December 31, 2014 December 1, 1999 June 3, 2019 $1,760,422 2.625% June 3 and December 3 June 3 Illinois Environmental Protection Agency CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Payment Requirements Year Numbers Principal Interest Total 2015 31-32 $ 104,285 $ 12,221 $ 116,506 2016 33-34 107,040 9,466 116,506 2017 35-36 109,868 6,638 116,506 2018 37-38 112,771 3,735 116,506 2019 39 57,500 754 58,254 $ 491,464 $ (See independent auditor's report.) - 172 - 32,814 $ 524,278 VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS INSTALLMENT NOTE PAYABLE OF 2012 December 31, 2014 Date of Issue December 31, 2012 Date of Maturity December 1, 2019 Authorized Issue $2,500,000 Denomination of Bonds $5,000 Interest Rates 0.91% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Mount Prospect State Bank CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Payment Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2015 5-6 $ 400,000 $ 21,294 $ 421,294 2015 $ 10,647 2015 $ 10,647 2016 7-8 415,000 17,654 432,654 2016 8,827 2016 8,827 2017 9-10 420,000 13,878 433,878 2017 6,939 2017 6,939 2018 11-12 515,000 10,056 525,056 2018 5,028 2018 5,028 2019 13-14 590,000 5,369 595,369 2019 2,684 2019 2,685 $ 2,340,000 $ 68,251 $ 2,408,251 $ 34,125 $ 34,126 (See independent auditor's report.) -173- SUPPLEMENTAL DATA i 00 0 o z z z z z o o cn o 0 0 0 0 o cn 00 00 V .� 0 0 0 0 0 0 0 0 0 0 0 0 � G G O O '6 U U r� � � .� y O Q. � ✓ � x � O .i m m - o o o O CO o a o w w w w a w C7 d w a a w w w a Ca a a a U w H ESI n. 0 0 U o � o � U cdCd cd cd '�C cd cd cd cd U Cd Cd o _: _: _: _: _:Cd .-t U U U to U N bA x w cn cn cn cn cn cn w w F- F- a a a w CD o 0 0 0 0 0 0 o 0 0 o 0 0 0 0 0 0 z o 0 z 0 z 0 z 0 z 0 z 0 0 o 0 0 o 0 z 0 z 0 0 0 o0 0 0 0 o z 0 0 0 0 D o n o 0 0 0 o N o v v S v 0 o � O z O z O z O z o z 0 0 o0 0 0 0 0 0 0 0 0 0 000 0 0 o z 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N 0 0 0 0 o N N oo N 0 0 Go� M � G G O O '6 U U r� � � .� y O Q. � ✓ � x � O .i m m - o o o O CO o a o w w w w a w C7 d w a a w w w a Ca a a a U w H ESI STATISTICAL STATISTICAL SECTION This part of the Village of Mount Prospect, Illinois' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. 175-184 Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue source, the property tax. 185-193 Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future. 194-197 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place. 198-199 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village's financial report relates to the services the Village provides and the activities it performs. 200-204 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. VILLAGE OF MOUNT PROSPECT, ILLINOIS I►1No01yyIIIMH"WKKO]uliS]►1OL411 Fiscal Year GOVERNMENTAL ACTIVITIES Net investment in capital assets Restricted Unrestricted TOTAL GOVERNMENTAL ACTIVITIES BUSINESS -TYPE ACTIVITIES Net investment in capital assets Unrestricted TOTAL BUSINESS -TYPE ACTIVITIES Last Ten Fiscal Years 2005 2006 2007 $ 23,851,038 $ 24,671,547 $ 26,114,472 4,828,517 4,197,018 3,178,963 13,689,604 18,553,994 23,151,760 $ 42,369,159 $ 47,422,559 $ 52,445,195 $ 17,846,548 $ 18,321,345 $ 19,437,672 5,808,766 6,172,718 6,833,310 $ 23,655,314 $ 24,494,063 $ 26,270,982 PRIMARY GOVERNMENT Net investment in capital assets $ 41,697,586 $ 42,992,892 $ 45,552,144 Restricted 4,828,517 4,197,018 3,178,963 Unrestricted 19,498,370 24,726,712 29,985,070 TOTAL PRIMARY GOVERNMENT $ 66,024,473 $ 71,916,622 $ 78,716,177 * The unrestricted net position decreased in 2014 due to the recognition of the Business District limited tax note payable Audited Financial Statements -175- 2008 2009 2010 2011 2012 2013 2014 $ 29,663,909 $ 27,741,453 $ 30,020,260 $ 53,524,378 $ 48,521,357 $ 48,152,760 $ 46,326,047 2,367,670 4,497,173 4,891,298 2,828,903 3,547,328 3,045,922 4,186,505 21,216,625 20,277,880 18,296,001 20,019,184 24,952,139 24,153,907 (10,441,020) $ 53,248,204 $ 52,516,506 $ 53,207,559 $ 76,372,465 $ 77,020,824 $ 75,352,589 $ 40,071,532 $ 20,776,324 $ 22,412,134 $ 23,044,064 $ 26,892,474 $ 26,566,375 $ 26,352,289 $ 26,854,967 6,852,644 5,996,007 5,927,430 5,167,986 6,820,901 8,057,996 7,734,851 $ 27,628,968 $ 28,408,141 $ 28,971,494 $ 32,060,460 $ 33,387,276 $ 34,410,285 $ 34,589,818 $ 50,440,233 $ 50,153,587 $ 53,064,324 $ 80,416,852 $ 75,087,732 $ 74,505,049 $ 73,181,014 2,367,670 4,497,173 4,891,298 2,828,903 3,547,328 3,045,922 4,186,505 28,069,269 26,273,887 24,223,431 25,187,170 31,773,040 32,211,903 (2,706,169) $ 80,877,172 $ 80,924,647 $ 82,179,053 $ 108,432,925 $ 110,408,100 $ 109,762,874 $ 74,661,350 -176- VILLAGE OF MOUNT PROSPECT, ILLINOIS CHANGE IN NET POSITION Fiscal Year EXPENSES Governmental Activities General government Public safety Highways and streets Health Welfare Culture and recreation Interest Total governmental activities expenses Business -Type Activities Water and sewer Commuter parking Total business -type activities expenses TOTAL PRIMARY GOVERNMENTAL EXPENSES PROGRAM REVENUES Governmental Activities Charges for services General government Public safety Highway and streets Other activities Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -Type Activities Charges for services Water and sewer Commuter parking Operating grants and contributions Capital grants and contributions Total business -type activities program revenues TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES NET (EXPENSE) REVENUE Governmental activities Business -type activities TOTAL PRIMARY GOVERNMENT NET (EXPENSE) REVENUE Last Ten Fiscal Years -177- 2005 2006 2007 $ 3,090,918 $ 5,110,605 $ 5,777,024 21,660,877 23,336,436 24,565,640 9,364,421 10,888,397 11,512,271 3,642,891 3,863,140 4,085,316 1,465,197 1,344,516 1,759,776 237,024 272,826 221,806 1,3 50,049 1,360,081 728,640 40,811,377 46,176,001 48,650,473 8,954,899 9,200,271 8,839,710 369,825 409,041 259,434 9,324,724 9,609,312 9,099,144 $ 50,136,101 $ 55,785,313 $ 57,749,617 $ 3,626,936 $ 4,750,937 $ 5,057,855 2,029,632 2,096,875 2,658,824 135,151 176,019 231,468 280,083 288,914 305,467 556,072 513,703 594,223 1,894,095 2,106,688 2,812,836 8,521,969 9,933,136 11,660,673 7,400,759 8,506,767 8,888,249 205,215 207,085 210,036 7,605,974 8,713,852 9,098,285 $ 16,127,943 $ 18,646,988 $ 20,758,958 $ (32,289,408) $ (36,242,865) $ (36,989,800) (1,718,750) (895,460) (859) $ (34,008,158) $ (37,138,325) $ (36,990,659) 2008 2009 2010 2011 2012 2013 2014 $ 6,682,541 $ 7,192,572 $ 6,541,405 $ 6,992,107 $ 6,233,324 $ 7,356,433 $ 10,171,883 26,646,855 27,172,360 27,303,165 27,276,948 28,134,173 29,771,502 30,812,251 13,540,232 12,101,419 12,924,872 18,141,803 15,853,017 18,570,593 19,923,120 4,163,354 4,194,045 4,133,883 4,289,103 4,407,533 4,459,897 4,591,946 1,744,504 2,316,995 2,039,805 1,902,841 1,909,062 1,868,952 1,844,911 409,066 367,635 322,553 353,308 406,606 443,171 425,217 837,127 1,047,961 1,146,789 1,329,499 1,033,923 1,016,337 2,899,466 54,023,679 54,392,987 54,412,472 60,285,609 57,977,638 63,486,885 70,668,794 9,179,399 9,393,148 9,950,591 10,444,247 11,129,942 12,078,221 13,779,500 263,394 233,701 284,607 327,224 345,715 346,303 329,988 9,442,793 9,626,849 10,235,198 10,771,471 11,475,657 12,424,524 14,109,488 $ 63,466,472 $ 64,019,836 $ 64,647,670 $ 71,057,080 $ 69,453,295 $ 75,911,409 $ 84,778,282 $ 5,045,338 $ 6,705,200 $ 6,271,966 $ 6,343,828 $ 7,068,010 $ 6,908,188 $ 7,785,745 2,242,952 1,580,052 1,486,144 1,545,333 1,412,279 1,583,328 1,712,860 169,615 237,786 135,641 108,865 126,660 269,066 414,316 320,488 65,933 70,964 32,040 39,163 41,220 515,095 1,800,781 2,551,348 2,338,965 2,749,168 1,974,867 2,356,665 2,209,036 764,283 406,734 443,278 65,905 72,175 288,752 140,181 10,343,457 11,547,053 10,746,958 10,845,139 10,693,154 11,447,219 12,777,233 8,774,681 8,500,396 8,916,621 9,081,731 10,990,923 11,507,264 11,970,681 269,400 218,735 210,324 219,040 225,214 234,458 254,784 - - - - - - 373,498 9,044,081 8,719,131 9,126,945 9,300,771 11,216,137 11,741,722 12,598,963 $ 19,387,538 $ 20,266,184 $ 19,873,903 $ 20,145,910 $ 21,909,291 $ 23,188,941 $ 25,376,196 $ (43,680,222) $ (42,845,934) $ (43,665,514) $ (49,440,470) $ (47,284,484) $ (52,039,666) $ (57,891,561) (398,712) (907,718) (1,108,253) (1,470,700) (259,520) (682,802) (1,510,525) $ (44,078,934) $ (43,753,652) $ (44,773,767) $ (50,911,170) $ (47,544,004) $ (52,722,468) $ (59,402,086) -178- VILLAGE OF MOUNT PROSPECT, ILLINOIS CHANGE IN NET POSITION (Continued) Fiscal Year GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities Taxes Property Utility Business district Home rule sales Telecommunications Other Intergovernmental State sales and use Income taxes Replacement taxes Charitable games tax Investment income Miscellaneous Transfers Contributions Total governmental activities Business -Type Activities Property tax Home rule sales tax Investment income Miscellaneous Transfers Total business -type activities TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION Governmental activities Business -type activities TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION Data Source Audited Financial Statements Last Ten Fiscal Years -179- 2005 2006 2007 $ 13,775,669 $ 15,183,214 $ 15,817,195 11,871,553 12,720,614 12,773,695 2,802,467 2,471,590 2,741,121 9,509,376 9,537,327 9,712,568 433,605 908,782 924,989 126,411 101,242 42,868 - 10,433 - 38,519,081 40,933,202 42,012,436 1,533,910 1,527,407 1,504,501 107,068 217,235 262,430 - (10,433) - 1,640,978 1,734,209 1,766,931 $ 40,160,059 $ 42,667,411 $ 43,779,367 $ 6,229,673 $ 4,690,337 $ 5,022,636 (77,772) 838,749 1,766,072 $ 6,151,901 $ 5,529,086 $ 6,788,708 2008 2009 2010 2011 2012 2013 2014 $ 15,942,106 $ 16,543,215 $ 17,165,849 $ 17,942,394 $ 18,385,422 $ 18,890,542 $ 19,745,699 - 4,519,175 4,589,221 4,624,678 4,658,265 3,891,713 4,093,596 - - - - 283,706 317,527 331,933 14,862,634 4,061,202 4,392,753 4,673,134 4,750,232 5,035,998 5,320,795 2,770,473 - - - - - - 10,346,444 1,524,823 1,598,056 1,976,997 2,408,064 2,952,665 3,421,604 - 9,761,726 11,110,707 11,411,781 11,877,115 13,254,358 14,310,773 - 4,573,162 4,428,176 4,328,196 4,759,513 5,161,051 5,186,155 - 338,134 362,532 357,596 358,286 396,999 407,764 - - - 3,986 4,090 4,090 4,812 416,673 187,793 67,001 29,043 42,452 29,785 (46,496) 93,781 605,006 633,902 235,167 278,293 436,703 47,636 - - 8,370 - - - - 51.120 - - - - - - 44,483,231 42,114,236 44,356,567 45,582,972 47,805,438 50,371,431 52,824,271 1,505,394 1,520,602 1,513,114 1,526,828 1,515,605 1,507,661 1,508,704 92,154 82,882 89,942 107,576 99,795 104,050 100,697 159,150 26,646 1,653 836 517 3,387 3,189 - 56,761 75,267 73,858 (29,581) 90,713 77,468 - - (8,370) - - - - 1,756,698 1,686, 891 1,671,606 1,709,098 1,5 86,336 1,705, 811 1,690,058 $ 46,239,929 $ 43,801,127 $ 46,028,173 $ 47,292,070 $ 49,391,774 $ 52,077,242 $ 54,514,329 $ 803,009 $ (731,698) $ 691,053 $ (3,857,498) $ 520,954 $ (1,668,235) $ (5,067,290) 1,357,986 779,173 563,353 238,398 1,326,816 1,023,009 179,533 $ 2,160,995 $ 47,475 $ 1,254,406 $ (3,619,100) $ 1,847,770 $ (645,226) $ (4,887,757) VILLAGE OF MOUNT PROSPECT, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year GENERAL FUND Reserved Unreserved Nonspendable Unassigned TOTAL GENERAL FUND ALL OTHER GOVERNMENTAL FUNDS Reserved Unreserved, reported in Special Revenue Funds Debt Service Funds Capital Project Funds Nonspendable Restricted Assigned Unassigned TOTAL ALL OTHER GOVERNMENTAL FUNDS The Village implemented GASB Statement No. 54 in fiscal year 2011. Audited Financial Statements - 181 - 2005 2006 2007 $ 312,499 $ 73,529 $ 40,910 10,203,878 11,733,539 12,774,003 $ 10,516,377 $ 11,807,068 $ 12,814,913 $ 4,958,811 $ 4,333,108 $ 3,329,107 1,556,490 1,844,687 2,028,077 161,614 1,447,070 2,315,134 $ 6,676,915 $ 7,624,865 $ 7,672,318 2008 2009 2010 2011 2012 2013 2014 $ 228,750 $ 88,492 $ 53,536- 12,312,075 10,110,989 10,364,455 - - - - - - - 100,590 98,150 297,762 337,165 - - - 10,704,282 11,466,179 11,580,820 12,508,457 $ 12,540,825 $ 10,199,481 $ 10,417,991 $ 10,804,872 $ 11,564,329 $ 11,878,582 $ 12,845,622 $ 2,523,221 $ 4,762,560 $ 2,188,376 $ - $ - $ - $ - 2,043,378 1,674,387 2,148,898 - - - - (908,466) (485,274) (78,844) - - - - 303,492 1,965,761 2,459,761 - - - - - - - 147,130 144,114 132,464 147,412 - - - 2,828,903 3,625,715 3,166,583 13,941,797 - - - 3,564,914 7,525,930 15,705,506 7,371,630 - - - (5,578) (664) (689) (789) $ 3,961,625 $ 7,917,434 $ 6,718,191 $ 6,535,369 $ 11,295,095 $ 19,003,864 $ 21,460,050 -182- VILLAGE OF MOUNT PROSPECT, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Fiscal Year REVENUES Taxes Licenses, permits, and fees Intergovernmental Charges for services Fines and forfeits Investment income Miscellaneous Total revenues EXPENDITURES General government Public safety Highways and streets Health Welfare Culture and recreation Capital outlay Debt service Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Bonds issued Premium on bonds issued Payment to escrow agent Transfers in Transfers (out) Sale of capital assets Total other financing sources (uses) NET CHANGE IN FUND BALANCES DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES Data Source Audited Financial Statements Last Ten Fiscal Years - 183 - 2005 2006 2007 $ 24,897,774 $ 25,829,233 $ 26,460,490 3,135,996 3,216,982 3,445,370 15,459,395 16,664,264 17,783,855 1,710,556 3,226,074 3,780,453 581,439 521,473 720,673 433,605 908,782 924,989 822,285 489,097 557,279 2,040,534 3,470,144 2,437,381 47,041,050 50,855,905 53,673,109 4,463,740 4,901,739 5,298,202 21,677,185 23,205,517 24,767,992 7,265,128 7,555,575 9,204,868 31650,121 3,873,480 4,102,547 1,482,943 1,366,367 1,786,121 284,229 333,148 281,737 2,040,534 3,470,144 2,437,381 3,205,838 2,605,399 3,529,734 1,318,154 1,264,364 1,044,123 45,387,872 48,575,733 52,452,705 1,653,178 2,280,172 1,220,404 989,519 1,344,953 105 (989,519) (1,386,484) (165,211) 2,168,051 - - 2,168,051 (41,531) (165,106) $ 3,821,229 $ 2,238,641 $ 1,055,298 10.08% 8.07% 8.78% 2008 2009 2010 2011 2012 2013 2014 $ 27,287,056 $ 26,648,415 $ 27,740,802 $ 29,217,203 $ 30,485,689 $ 31,088,445 $ 32,564,624 3,094,828 3,748,456 3,394,211 3,356,816 3,657,586 3,589,368 3,516,082 19,104,781 17,274,500 18,719,087 18,895,261 18,862,827 21,103,909 23,914,974 3,618,419 3,832,341 3,789,976 3,974,677 4,417,110 4,408,987 5,220,730 720,351 529,655 556,178 548,993 403,036 430,960 587,966 416,673 137,142 55,457 23,103 36,491 16,751 (46,495) 533,460 834,738 781,149 406,118 629,892 1,167,196 983,623 54,775,568 53,005,247 55,036,860 56,422,171 58,492,631 61,805,616 66,741,504 5,725,191 5,796,151 5,240,716 5,284,168 5,827,275 7,452,147 7,050,018 25,906,274 26,384,953 26,935,085 26,992,535 28,022,943 29,233,562 30,706,685 9,168,071 8,291,493 7,450,823 7,681,534 7,734,185 9,094,846 8,291,698 4,156,319 4,188,172 4,128,010 4,286,754 4,405,184 4,457,548 4,590,027 1,736,791 2,316,995 2,039,805 1,902,841 1,909,062 1,868,952 1,865,265 381,892 358,207 313,125 346,068 399,366 435,931 421,517 6,623,970 14,296,659 7,739,590 7,274,213 4,761,739 8,588,414 12,075,460 4,149,735 1,425,219 1,046,203 1,377,700 1,479,732 1,537,312 2,987,587 891,181 1,023,907 1,124,236 1,057,464 959,812 913,882 1,914,718 204,059 $ 5,519,183 $ 8,023,022 $ 3,423,226 58,739,424 64,081,756 56,017,593 56,203,277 55,499,298 63,582,594 69,902,975 (3,963,856) (11,076,509) (980,733) 218,894 2,993,333 (1,776,978) (3,161,471) - 16,080,000 - 5,160,000 5,475,000 9,800,000 6,290,000 - 124,535 - - - - 294,697 - (3,513,925) - (5,139,582) (2,949,150) - - 809,422 635,100 450,000 80,089 - 239,977 - (833,242) (635,100) (450,000) (115,342) - (239,977) - 2,895 364 - - - - - (20,925) 12,690,974 - (14,835) 2,525,850 9,800,000 6,584,697 $ (3,984,781) $ 1,614,465 $ (980,733) $ 204,059 $ 5,519,183 $ 8,023,022 $ 3,423,226 9.00% 4.55% 4.12% 4.35% 4.40% 4.01% 7.02% 00 .—I 0 0 0 0 0 0 0 0 0 0 M M M M M M M M M M "'O M M M M M M M M M M � w � o M 00 O O1 M N M �O 00 � O, V'1 NO kn ,-� M C, O O ll: N N rte•` ^•� Gi M N N 00 M W) CIA N CIA 00 01 -zt 01 01 : 00 N N O 00 � M 1�0 00 --� Cd l� 00 M O 00 O 64 l� �O O N +.•, 00 00 00 00 O N .•i O O O O HA�x v1 N �O O M lD N 00 (D 00 00 00 00 O O H m 01 01 01 O M 01 00 \O � 00 mn M � 64 � al •'o � o0 0 0o N o; 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AO M O O l- l- O N N O M O N M O O — O — O N = W) O M M M M 0� � n N N� O N .-� dl .-� M O N W) O M O M v1 G dl V� v1 V l� v1 N N O �O �O ti V h 110 h N 110 V M G O vi h h O a1 O V O N 01 V 110 - O ti ll l- r- V N V N 00 V -O Vl M M O d, \O ul M O N N O N O N M O O O O— O N -- V O 00 00 G 00 N 01 V1 M N �--� O M 0� N 0� �O �/1 M O� O� O V v1 M 00 1p V17t O 00 -D -O .--i M O N N O N O N M O O O O- O N V V v1 V r- 00 00 N A V 0� V1 110 110 h h 0� 0� 00 V W) V O W) l m 0� N �O N V 1-0 N V O 1-0 O� v1 M O O r- 00 - �c O N M O M O N M O O - O - O N 0� M v1 O O O O V O h h 00 V1 V N 00 00 V 00 01 V1 � v1 v1 O V N V 00 1p 00 M M O 00 h h - v1 O N M O N O N M O O O O - O N W) O 00 N l N l m N vi vi W) V vi oo oo �O N l N M a, 7 O N M O N O N M O O O O - O N Y U O .y H 1 W � O Esi � Y O /y Q � w O � U � � CL C7 C7 u 11r) h v1 Q Q. M Q Q bU-0 N W a 4t 4t ' 4t y 4t 4t U Y Y a Y � Y Y to rrQll Y DO Fi �Q Q Q W Q o/� o O � own ss00�l Q. UD UD I—I Q. W Q. 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'6 G U O .a x .a G O � � � bq � O O 0 C O cd O x 01 a boo c� c O O U U U o 0 ami o caww o m y cd ami CION cd u x c7 x U a w U U F Z o Q O VILLAGE OF MOUNT PROSPECT, ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Levy Years Fiscal Year Levy Year Tax Levied Collected within the Fiscal Year of the Levy Percentage Amount of Levy Collections in Subsequent Years Total Collections to Date Percentage Amount of Levy 2005 2004 $ 11,939,893 $ 11,534,824 96.61% $ 113,577 $ 11,648,401 97.56% 2006 2005 13,175,689 12,222,889 92.77% 645,519 12,868,408 97.67% 2007 2006 13,506,574 12,369,490 91.58% 872,396 13,241,886 98.04% 2008 2007 14,014,838 13,648,416 97.39% (74,080) 13,574,336 96.86% 2009 2008 14,472,269 14,137,805 97.69% (6,590) 14,131,215 97.64% 2010 2009 15,194,636 14,856,084 97.77% (49,716) 14,806,368 97.44% 2011 2010 15,194,635 14,961,411 98.47% 4,154 14,965,565 98.49% 2012 2011 15,852,352 15,614,490 98.50% 42,771 15,657,261 98.77% 2013 2012 16,477,871 16,278,228 98.79% 133,641 16,411,869 99.60% 2014 2013 17,301,436 17,064,355 98.63% - 17,064,355 98.63% Office of the County Clerk M 7 Ill m a 00 M o c� �O In 00 r` V r` N O M o0 V1 00 N If) vi oo m cy, 69 64 00� oo M vl h 00 oo a, O o O v � M m M In o o M 00 M O O 00N o� oo N o N 0000 C N C-- o � m Gs �s r 0 0o 00 M m o 0 0 N Irl N O Q\ O O O V O CO N ?c00 cv 0o In o cv m o 0 o N N v o 0 �s �s N V00 00 O O N Ol Irl (D O h N h h Q\ M c O C M O Q\ O M M Q\ 00 O 00 O O CO M 00 Ill 00 m of � N v1 M O Q\ 00 Ir) N N In M Q\ 69 69 00 V N N 00 M �O �O o O 00 O h M 00 00 In O, N N 00 00 O N o a n N o M o M a Gq Gq r4 H O Om 00 Vol r` Irl N � M r` 00 01,m 00 h 00 o r U CJ O O O Irl 00 v v Irl � O M N O Irl Irl o H rn O� o 0 Oa 00 o O (4 N In M m N N n o �O r` N r` ry r` cy M a In O O U N r M Q a F w r` n 00 oo N r vi v r m m r n a m o o W a) a� O r m m a� V oo In r1C H 00 o Q" a, 01,V �c 00 �c � O h r- 00 O o0 0 ca ca N O O In N r cy M cy O o O a 6s 6s ca O w C/) 00 M O N Ol Ol r` Irl o` O n ,-. r` M O O �o M a, 00 o O O O y rn cu a o0 0o m o 0 0 : o ca aO O V 000 V r O m If)If)^ 00 ' cy O In N 00 m v 00 E 64 64 � V Irlh 00 N 00 00 00 00 � m M M CD O O_ O 00 N �O O Qn � r` O r-- O O ° X N ac 00 r 00 00 a v O O N V)ti oo 000 N 00 O 64 64 cC N Q\ r` Q\ 00 v 00 00 r- v Irl m �O 00 of v M M r` o O n N T ct U In 0 m 0 o v o m O In 00 (D v If) o w N of In N of ,-. cy N r ,-. r 06' a H 64 64 � O 0 0 7-' W a > In a o ca caa w > a) y0 V o to ca x to w caw ani � ca A w ca c 7-' w� x toCj sem. v �Ccav ca E ca ��-1 0 Q Q ha1 v1 N V V M c M 01 00 01 00 O M 110 M I l� O V1 v1 M .T V1 N 7 vi O 00 a1 V N V O ^I 00 `n N b4 Ff3 d1V V �O 00 00 Ci V1 On d1 V1 O M M I 0� 00 O C� N V� N M 00 01 W)d1 v1 h O - 00 V O N N b4 Ff3 M00 M 00 00 h d1 0 c 01 M a1 00 V V 00 110V \O I l- vi dl O h O O N 0100 01 O V M C- rl 00 00 .--� N DO N N b9 Ff3 c I I I I I I I I I p ^I O O N b9 Ff3 CCD I I I I I I I I I O p O N b9 Ff3 CCD I I I I I I I I I O O O N 0 7, oC�3 O O 0 on N C�3 C�3 U U U C � I I I I I I I I I O O U � r O 10- O N � "O U c O O O Y � O N C3 Esi 7l o U U Okn L O I I I I I I I I I O O U N � 69 69 N O R� C U v W oC�3 ¢'C�3 t bq n/ O —F3 (x [� U O IDO cli U cd U U Q W O cd D OO bq H W Q E F' d � 5.,`O d Q Q o V If) N 00 V 1p 00 00 V 00 O V V1) N d1 00 00 M 0 c O .T .T M cl� l N O 00 � V M 00 N 110 V1 00 O O V1 O 00 V1 0� O N 00 M vj O M00 d, d, �O N d1 00 00 O C/1 0 c M ry rl V1O 00 V V V1 00 vi M M V 00 V 0� O N 01 0� 00 M O N 00 N N yj b4 Ff3 OO V 110 00 N M d, 00 V O h M M 00 h O c O a< ry, 01 O d1 00 O OO N O O 00 M 110 vi h vi v1 �O NV N V h O 00 N N N 110a, V 00 � b4 Ff3 d1 O O 01 00 _ v1 N d1 M _ O OO O1 c O .T M If) Nm a v N M O 00 0� N M a; v M h O N l N vi ,-• N 11000 � b4 Ff3 N �O NV 01 d1 O M 00 v1 00 O v1 OO a1 c O O O h V ll(: ' M O O vl a, O 00 �O M M Ov1 N110 01 V 00 N M N O oc O N N � 0000 O N_ h h V N O a1 N OO d1 N M "DO M c O V d1 N kr 00 N h O h a O m O1 00 V 0� m M m N o V o d1 t- O r- V 0 00 O N 7 vi � i C N 00 00 h N 00 r o 0� c ao 0 0o o0 v 00 o 0 v o 0 v c. o o oo v � 0 O N 0, N N V OO oo v b4 f3 C�3 V)V1 O V M �-• V1 � V1 d1 00 O 00 h M d1 Vl 00 c vl O C� U V1 dr AO C� M V V M V1 O V1 h yUa ' N v1 CD 00 V O O N C,3 b4 Ff3 � C� d1 V v1 M V O v1 v1 O N d1 r- O v1 M 00 0� c 00 Q do M 00 00 1p 00 V1 M do AO O h �„ N N "D00 w o N 110v v° 000 r u C3 ds 7� M d1 N 00 00 N d1 1 0 d1 .--� d1 _ O N O 00 � a1 O o c v1 Vl N U U rn 0: kn 00 01 V1 M kr N Cl, 00 V O M VO V 00 m h O '-O U U N N O N oO M M � C3 C�3 ren to ;� O W H '7 Cj F, U O �r w �, to C�3 QJ O ' 3 q U 4 7� t. M �y � � U U Ncli "O O �I b�D bq U F' U �W V Vi W Cd '� Q C13O bq"tub '� H / O w a d Q dU VILLAGE OF MOUNT PROSPECT, ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years *Business District is assessed additional 0.25% sales tax Data Source State of Illinois -193- Regional Village Home Rule Fiscal State County Transportation Direct Sales Tax Year Rate Rate Authority Rate Rate Total 2005 5.00% 1.00% 0.75% 1.00% 0.75% 8.50% 2006 5.00% 1.00% 0.75% 1.00% 0.75% 8.50% 2007 5.00% 1.00% 0.75% 1.00% 0.75% 8.50% 2008 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% 2009 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% 2010 5.00% 1.50% 1.00% 1.00% 1.00% 9.50% 2011 5.00% 1.50% 1.00% 1.00% 1.00% 9.50% 2012* 5.00% 1.25% 1.00% 1.00% 1.00% 9.25% 2013* 5.00% 1.00% 1.00% 1.00% 1.00% 9.00% 2014* 5.00% 1.00% 1.00% 1.00% 1.00% 9.00% *Business District is assessed additional 0.25% sales tax Data Source State of Illinois -193- C a d WN O a s oll oll O O N I'D V h M V'1 01 M 01 V 00 V I V O o0 O h o0 M v1 00 M h o d1 00 h d1 N b9 0 0 0 0 0 0 0 0 0 0 M V1 01 N V O V'1 01 00 I'D V 00 00 'T V'1 I'D V'1 O = M 00 oll�O �O VI— V 00 d1 \O V N V'1 00 00 M V1 h �O h N 00 d1 V'1 Clv1 O d1 O O OO C 1 l h- V OO l - vi I'D vi N N N N N N N N I'D 00 b9 W') r -- CD O N v ,7) O M M b9 0 0 0 0 0 0 O O o O O O O O to O �T M N N N 00 h M 00 01 V N h V V h Vl V1 V'1 N N v'1 O O v1 v1 d1 � � d1 �O a1 O O 00 v'i O m N N h N 00 M h N h h V1 �T �T M M N N — — O O O O O O V'1 O V'1 I M N — N v o o o o o o o o W)"000000000 v l O O O O O O O O V O O v1 O O O O vi v1 Ch V I'D O Ch V M oll V th C1 n l l l IO O N N N N M V W') I'D l 00 01 O_ — N M V O O O O O O O O O O O O O O O N N N N N N N N N N Y C� r) VILLAGE OF MOUNT PROSPECT, ILLINOIS RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years 2005 Percentage of Less: Amounts Estimated General Available Actual Taxable Fiscal Obligation In Debt Value of Per Year Bonds Service Fund Total Property* Capita 2005 $ 21,339,452 $ 419,317 $ 20,920,135 0.47% $ 371.81 2006 19,110,764 465,990 18,644,774 0.39% 331.37 2007 16,415,000 94,398 16,320,602 0.34% 290.07 2008 13,105,000 - 13,105,000 0.23% 232.92 2009 24,770,000 - 24,770,000 0.42% 440.24 2010 24,240,000 - 24,240,000 0.40% 430.82 2011 23,630,000 131,372 23,498,628 0.43% 433.82 2012 22,790,000 135,817 22,654,183 0.45% 418.23 2013 31,645,000 121,491 31,523,509 0.67% 581.97 2014 48,075,000 131,635 47,943,365 1.18% 885.10 *See the schedule of Assessed Value and Actual Value of Taxable Property on page 185 for property value data. Note: Details of the Village's outstanding debt can be found in the notes to financial statements. Data Source Audited financial statements Office of the County Clerk -195- VILLAGE OF MOUNT PROSPECT, ILLINOIS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2014 (2) (3) Percentage Village of (1) Debt Applicable Mount Prospect Gross to the Village of Share Governmental unit Debt Mount Prospect of Debt Village of Mount Prospect $ 51,136,927 100.000% $ 51,136,927 County of Cook 3,598,980,000 1.080% 38,868,984 Forest Preserve District of Cook County 172,535,000 1.080% 1,863,378 Metropolitan Water Reclamation District 2,394,997,000 1.102% 26,392,867 Community College District #535 35,370,000 0.013% 4,598 Community College District #512 166,045,000 8.847% 14,690,001 School District #214 42,800,000 18.254% 7,812,712 School District #207 8,570,000 0.063% 5,399 School District #57 7,045,000 94.988% 6,691,905 School District #25 - 2.684% - School District #26 10,610,000 77.929% 8,268,267 School District #23 9,940,000 7.542% 749,675 School District #21 40,805,000 3.003% 1,225,374 School District #59 5,540,000 14.489% 802,691 Arlington Heights Park District 13,205,000 1.609% 212,468 Des Plaines Park District 5,457,240 1.640% 89,499 Mount Prospect Park District 4,297,000 63.648% 2,734,955 Prospect Heights Park District - 15.274% - 6,516,196,240 110,412,773 $ 6,567,333,167 $ 161,549,700 (1) Gross bonded debt excluding outstanding general obligation (alternate revenue bonds) which are expected to be paid from sources other than general taxation. (2) Determined by ratio of 2013 assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village. (3) Amount in column (2) multiplied by amount in column (1). Data Source Comprehensive Annual Financial Report for Cook County, Illinois (2013) and Metropolitan Water Reclamation District of Greater Chicago (2013) and Office of the County Clerk for all other Governmental Units (2014). -196- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF LEGAL DEBT MARGIN December 31, 2014 The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin. The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property... (2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: ... indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum.... shall not be included in the foregoing percentage amounts. To date the General Assembly has set no limits for home rule municipalities. The government is a home rule municipality. -197- VILLAGE OF MOUNT PROSPECT, ILLINOIS DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years (1) Per (2) Capita (3) Fiscal (1) Equalized Personal Personal Unemployment Year Population Assessed Value Income Income Rate 2005 56,265 $ 1,594,975,722 $ 1,488,996,960 $ 26,464 4.40% 2006 56,265 1,597,309,461 1,488,996,960 26,464 3.20% 2007 56,265 1,870,325,316 1,488,996,960 26,464 3.40% 2008 56,265 1,979,496,030 1,488,996,960 26,464 4.50% 2009 56,265 2,017,411,353 1,488,996,960 26,464 7.90% 2010 56,265 1,834,680,507 1,488,996,960 26,464 7.80% 2011 54,167 1,694,952,801 1,798,831,903 33,209 7.40% 2012 54,167 1,568,774,082 1,798,831,903 33,209 6.60% 2013 54,167 1,357,294,084 1,798,831,903 33,209 6.70% 2014 54,167 N/A 1,798,831,903 33,209 5.50% Note: 2014 Equalized Assessed Valuation is unavailable until 2015. Data Source (1) U.S. Department of Commerce, Bureau of the Census (2) Office of the Cook County Clerk (3) IDES Local Area Unemployment Statistics O O N E O O� O't 110 vl O M N O l G CC � O py O py U l� H U � cd O E O O� O't 110 vl O M N O l G CC � O py H U l� U � cd O N � O N QD a —Cd 0 0 0 a. U0 U U p Cd bA Nom. ;� O to N bA p O O O� O't 110 vl O M N O l o :C � O py H U � G :C U � cd O a. U to N bA p VILLAGE OF MOUNT PROSPECT, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years Function/Program 2005 2006 2007 PUBLIC REPRESENTATION/COMMUNITY AND CIVIC SERVICES 1.05 1.05 1.05 Total 1.05 1.05 1.05 GENERAL GOVERNMENT Village administration Administration 15.15 15.45 16.45 Finance 15.00 15.00 15.00 Total 30.15 30.45 31.45 Community development Community development 20.90 20.90 22.90 Community development/CDBG 1.20 1.20 1.20 Total 22.10 22.10 24.10 Human services department 7.60 7.60 7.60 Total 7.60 7.60 7.60 PUBLIC SAFETY AND PROTECTION Police Department 105.50 110.50 111.50 Fire Department 90.70 93.90 94.20 Total 196.20 194.40 195.70 PUBLIC WORKS DEPARTMENT Administration 3.35 3.35 3.35 Streets/buildings/parking 14.60 14.60 14.90 Forestry 10.90 10.90 10.90 Engineering 7.90 9.30 9.30 Water/sewer 25.75 25.55 26.15 Refuse disposal 2.90 2.90 2.90 Parking - - - Vehicle maintenance 9.10 9.90 9.90 Total 74.40 74.40 75.20 VILLAGE TOTAL 321.50 330.00 335.10 Data Source Village budget -200- 2008 2009 2010 2011 2012 2013 2014 1.05 1.05 1.05 2.10 2.10 2.10 2.05 1.05 1.05 1.05 2.10 2.10 2.10 2.05 16.95 16.95 14.95 14.95 15.45 15.45 15.45 15.00 15.00 13.00 13.00 13.00 13.00 13.00 31.95 31.95 27.95 27.95 28.45 28.45 28.45 23.40 23.15 20.48 20.48 17.75 18.50 18.50 1.20 1.20 1.25 1.25 1.25 1.00 1.00 24.60 24.35 21.73 21.73 19.00 19.50 19.50 7.60 10.60 9.50 9.50 9.50 9.50 9.50 7.60 10.60 9.50 9.50 9.50 9.50 9.50 111.50 111.50 97.83 97.83 99.50 100.50 100.50 84.20 82.20 74.75 74.75 74.50 74.50 74.50 195.70 193.70 172.58 172.58 174.00 175.00 175.00 3.35 3.35 2.85 2.85 2.85 2.85 2.85 14.60 14.80 11.35 11.85 11.85 12.45 12.40 10.80 10.80 10.70 9.75 9.75 9.25 9.35 8.30 8.30 8.00 8.00 8.00 8.00 8.00 26.15 26.15 26.50 25.00 25.00 24.75 24.75 2.90 2.90 2.90 2.90 2.90 2.90 2.90 - - - 0.90 0.90 0.90 0.90 9.10 10.90 10.90 10.90 10.90 10.75 10.75 75.20 77.20 73.20 72.15 72.15 71.85 71.90 336.10 338.85 306.01 306.01 305.20 306.40 306.40 -201 - VILLAGE OF MOUNT PROSPECT, ILLINOIS OPERATING INDICATORS Last Ten Fiscal Years Function/Program 2005 2006 2007 FINANCE DEPARTMENT Vehicle stickers issued 38,425 38,973 38,851 Utility bills 85,894 100,846 97,677 Real estate transfer tax stamps sold 1,903 1,624 1,249 COMMUNITY DEVELOPMENT Building Division Permits issued 3,217 2,866 2,801 Plan reviews 744 787 553 Building code inspections 14,364 9,590 8,438 Environmental Health Division Inspections Food service 364 400 392 Multi -family buildings 414 583 476 Swimming pools/spa 6 33 62 PUBLIC SAFETY Police Number of crimes 3,834 3,247 4,295 Number of service calls 30,387 25,443 26,694 Number of arrests 1,740 1,855 1,928 Moving violations 7,383 6,522 7,985 Parking citations 8,194 7,641 9,438 Fire Fire calls 1,837 1,647 2,273 EMS calls 3,443 3,679 3,518 Fire prevention inspections 2,692 4,388 3,652 Training hours 22,397 21,865 22,837 PUBLIC WORKS Streets Street reconstruction (miles) Streeting resurfacing (miles) 5.00 9.00 7.00 Crack filling (lbs.) 58,700 47,390 57,660 Leaves removed (cubic yards) 16,897 14,302 15,187 Water Water mains installed (lineal feet) 3,250 3,000 3,200 Water billed (1,000 gallons) 1,491,251 1,501,699 1,440,716 Sanitary sewers cleaned (ft) 45,000 70,000 70,000 Refuse (single/multi-family) Solid waste collected (tons) 33,019 32,188 32,928 Recycling (tons) 7,348 6,890 6,728 * 2014 are estimated amounts. Final figures are not available at time of printing report. Data Source Various village departments -202- 2008 2009 2010 2011 2012 2013 2014* 39,208 39,650 40,018 86,577 86,458 86,057 947 986 1,086 2,687 2,415 2,922 452 420 505 7,631 8,564 8,783 340 394 400 279 491 664 59 28 - 4,242 3,921 3,696 25,631 23,600 22,028 1,769 1,736 1,898 8,723 10,355 10,139 10,690 10,256 11,317 2,019 1,817 1,888 3,487 3,535 3,465 3,264 4,258 3,790 21,073 23,851 24,313 39,834 43,092 43,490 43,803 86,701 90,147 152,312 152,519 1,022 1,282 1,451 1,409 2,821 2,278 2,383 2,400 515 595 524 500 8,508 9,154 7,824 9,500 394 405 393 345 664 565 568 575 3,359 3,178 2,809 2,670 19,943 19,184 19,206 19,300 1,845 1,602 1,509 1,410 7,026 5,979 6,152 5,800 9,363 7,640 7,314 8,000 2,350 1,892 1,967 1,996 3,590 3,885 3,912 4,200 3,418 3,308 3,144 3,400 23,578 21,340 21,149 21,257 5.00 5.80 5.00 4.70 5.20 7.50 18.90 55,000 57,118 46,846 40,871 51,885 49,153 50,100 16,272 18,970 15,424 14,843 12,569 14,577 13,000 8,079 5,475 5,475 - - - - 1,369,479 1,346,272 1,296,556 1,287,525 1,341,268 1,284,779 1,301,528 30,000 55,150 55,150 54,236 58,922 65,000 70,000 32,101 30,231 31,963 32,264 31,385 29,494 31,598 6,644 6,154 6,117 6,644 6,028 5,692 6,777 -203- I 4 O N p N � N p N � N V'1 00 0 Ol N p N 00 N -- � � N oo p N 00 N � N V'1 p N 00 N 00 M00 Ol V 00 N w 00 [� N O �j o0 N O O N � N M NM- O N all V O O �j . o0 N - j �r O 0 ISI y 00 •� W a) y 0 ci PLO 40 40 U Q 4 O N ADDITIONAL DISCLOSURES REQUIRED BY SEC RULE 15c2-12 VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS FINANCIAL INFORMATION STATEMENT OF INDEBTEDNESS Notes: 1. The Village is a home -rule unit under the Illinois constitution and, therefore, has no debt limit nor is it required to seek referendum approval for the issuance of general obligation debt. 2. See "Detailed Overlapping Bonded Indebtedness Payable From Property Taxes at December 31, 2014". 3. The Village's 2013 equalized assessed valuation includes $32,976,484 incremental valuation in the Village's tax increment financial district. RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December, 31, 2014) Principal Maturities Due Source of Payments Total Maturities Calendar Property Annual Cumul. Date Taxes Amount Percent Debt Service Tax Levies Levy Property Year Taxes 2015 2,470,000 Amount As Per Cent of Per Capita 4,226,289 2016 Applicable as of Assessed Estimated 2000 Census 4,345,176 December 31, 2014 Value True Value 54,167 Assessed Valuation of Taxable Real Property, 2013 $ 1,390,270,568 (3) 100.00% 33.33% $ 25,666.38 Estimated True Value of Taxable Real Property, 2013 4,511,028 4,170,811,704 300.00% 100.00% 76,999.13 Direct Bonded Debt payable from Property Taxes (i) 4,674,541 2020 4,975,000 4,975,000 39.7% Payable From Property taxes $ 48,075,000 3.46% 1.15% $ 887.53 Self -Supporting Debt 5,692,758 3,061,927 0.22% 0.07% 56.53 Total Direct Bonded Debt $ 51,136,927 3.68% 1.23% $ 944.06 Overlapping Bonded Debt Payable from Property Taxes (2) 4,198,369 2024 2,185,000 2,185,000 68.7% Schools $ 40,250,622 2.90% 0.97% $ 743.08 Other Than Schools 2,946,469 70,162,151 5.05% 1.68% 1,295.29 Total Overlapping Bonded Debt $ 110,412,773 7.94% 2.65% $ 2,038.38 Total Direct and Overlapping Bonded Debt $ 161,549,700 11.62% 3.879% $ 2,982.44 Total Direct and Overlapping Bonded Debt Excl. Self -Supporting $ 158,487,773 11.40% 3.80% $ 2,925.91 Notes: 1. The Village is a home -rule unit under the Illinois constitution and, therefore, has no debt limit nor is it required to seek referendum approval for the issuance of general obligation debt. 2. See "Detailed Overlapping Bonded Indebtedness Payable From Property Taxes at December 31, 2014". 3. The Village's 2013 equalized assessed valuation includes $32,976,484 incremental valuation in the Village's tax increment financial district. RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December, 31, 2014) Principal Maturities Due Source of Payments Total Maturities Calendar Property Annual Cumul. Date Taxes Amount Percent Debt Service Tax Levies Levy Property Year Taxes 2015 2,470,000 2,470,000 5.1% 2014 4,226,289 2016 2,645,000 2,645,000 10.6% 2015 4,345,176 2017 2,775,000 2,775,000 16.4% 2016 4,403,343 2018 2,975,000 2,975,000 22.6% 2017 4,511,028 2019 3,240,000 3,240,000 29.3% 2018 4,674,541 2020 4,975,000 4,975,000 39.7% 2019 5,437,818 2021 4,535,000 4,535,000 49.1% 2020 5,692,758 2022 3,865,000 3,865,000 57.2% 2021 5,774,460 2023 3,345,000 3,345,000 64.1% 2022 4,198,369 2024 2,185,000 2,185,000 68.7% 2023 2,918,869 2025 2,300,000 2,300,000 73.4% 2024 2,946,469 2026 2,425,000 2,425,000 78.5% 2025 2,976,169 2027 2,550,000 2,550,000 83.8% 2026 2,998,919 2028 2,685,000 2,685,000 89.4% 2027 3,024,981 2029 1,760,000 1,760,000 93.0% 2028 1,982,806 2030 790,000 790,000 94.7% 2029 924,906 2031 820,000 820,000 96.4% 2030 923,306 2032 850,000 850,000 98.2% 2031 920,506 2033 885,000 885,000 100.0% 2032 921,506 $48,075,000 $48,075,000 Notes: 1. The Village is a home rule unit under the 1970 Illinois Constitution and as such has no debt limit, nor is it required to seek referendum approval for the issuance of general obligation debt. The Village had entered into five installment contracts with the Illinois EPA (excluded from the table above) to provide funding for a portion of the Village's storm water/flood control program. The remaining two installment contracts (each with semi-annual payments) have final maturities on November 1, 2017 and June 3, 2019. Total principal outstanding on the IEPA installment contracts was $3,061,927 as of December 31, 2014. Debt service is being paid from the Village's Y4 cent home rule sales tax instituted effective September 1, 1991 for the purpose of funding the Village's $18.6 million flood control program. -205- DEBT RATIOS AND PER CAPITAL DEBT -LAST TEN GENERAL OBLIGATION BOND SALES (Note 1) Village Issue Sale Date Amount January 21, 2003 December 15, 2006 February 17, 2009 December 1, 2009 December 1, 2009 July 29, 2011 July 29, 2011 January 3, 2012 September 10, 2013 February 4, 2014 11,1:35, uuu 10,000,000 10,000,000 3,430,000 2,650,000 4,100,000 5,160,000 2,975,000 9,800,000 6,279,000 Ratio to Estimated Actual Value Direct Debt Including Self - Supporting 1.39% 0.78% 0.72% 0.70% 0.70% 0.60% 0.60% 0.60% 0.92% 1.13% Excluding Self - Supporting (2) 1.05% 0.69% 0.72% 0.70% 0.70% 0.60% 0.60% 0.60% 0.92% 1.09% Direct & Overlapping Debt Including Excluding Self- Self - Supporting Supporting (2) 3.77% 3.43% 2.72% 2.63% 2.45% 2.45% 2.47% 2.47% 2.47% 2.47% 2.80% 2.80% 2.80% 2.80% 2.80% 2.80% 3.42% 3.42% 3.74% 3.71% Per Capita (3) Direct & Overlapping Debt Including Excluding Self- Self - Supporting Supporting (2) 2,544.05 2,316.16 2,362.39 2,287.21 2,445.85 2,445.85 2,749.42 2,749.42 2,749.42 2,749.42 2,921.82 2,921.82 2,921.82 2,921.82 2,921.82 2,921.82 3,042.80 3,043.80 3,253.40 3,223.59 Notes: 1. Information in table pulled from applicable Official Statements. 2. Excludes the Village's general obligation bonds which are payable from non -property taxes. 3. Village population estimates used in these calculations were 56,265 in 2001-2009, and 54,167 beginning in 2010. Notes 2. 3. 4. EQUALIZED ASSESSED VALUATION FOR TAXING PURPOSES (Note 1) Property in Cook County is separated into two primary classifications for assessment purposes (10% for residential and 25% for commercial property). After the assessor establishes the fair market value of a parcel of land, the value is multiplied by one of the classification percentages to arrive at the assessed valuation for that parcel. The Illinois Department of Revenue furnishes each county with an adjustment factor (the equalization factor) to equalize the level of assessment between counties. After the equalization factor is applied, the valuation of the property for taxing purposes has been established -tax rates are applied to the equalized valuation. Under the current triennial reassessment system in Cook County, the Village was most recently reassessed in 2013. Excludes four categories of exemptions: the Senior Citizens' Homestead Exemption; the General Homestead Exemption; the Senior Citizens' Tax Freeze Homestead Exemption and the Long -Term Homeowner Exemption. The Village's tax rate is calculated based on the village's Net Equalized Assessed Valuation (shown in this table as "Net for General Taxing Purposes") and is extended against its entire Equalized Assessed Valuation (shown in this table as "Total for all Taxing Purposes") excluding only the statuary exemptions. Of the taxes collected, that portion applicable to incremental valuation (valuation of tax increment districts) is remitted to the Village by the County Collector for deposit in the applicable tax allocation fund. The Equalized Assessed Valuation for which the Village receives its portion of the total tax rate for all non -TIF purposes is shown in this table as "Net for General Taxing Purposes". -206- Real Property Tax Net For Plus Total For All Increase Levy General Taxing Incremental Taxing Over Year (2) Purposes (3) Valuation Purposes (4) Prior Year 2008 1,979,496,030 48,422,280 2,027,918,310 5.8% 2009 2,017,411,353 47,418,968 2,064,830,321 1.8% 2010 1,834,680,507 48,715,123 1,883,395,630 (8.8%) 2011 1,694,952,801 42,659,295 1,737,612,096 (7.7%) 2012 1,568,774,082 38,247,882 1,607,021,964 (7.5%) 2013 1,357,294,084 32,976,484 1,390,270,568 (13.5%) Property in Cook County is separated into two primary classifications for assessment purposes (10% for residential and 25% for commercial property). After the assessor establishes the fair market value of a parcel of land, the value is multiplied by one of the classification percentages to arrive at the assessed valuation for that parcel. The Illinois Department of Revenue furnishes each county with an adjustment factor (the equalization factor) to equalize the level of assessment between counties. After the equalization factor is applied, the valuation of the property for taxing purposes has been established -tax rates are applied to the equalized valuation. Under the current triennial reassessment system in Cook County, the Village was most recently reassessed in 2013. Excludes four categories of exemptions: the Senior Citizens' Homestead Exemption; the General Homestead Exemption; the Senior Citizens' Tax Freeze Homestead Exemption and the Long -Term Homeowner Exemption. The Village's tax rate is calculated based on the village's Net Equalized Assessed Valuation (shown in this table as "Net for General Taxing Purposes") and is extended against its entire Equalized Assessed Valuation (shown in this table as "Total for all Taxing Purposes") excluding only the statuary exemptions. Of the taxes collected, that portion applicable to incremental valuation (valuation of tax increment districts) is remitted to the Village by the County Collector for deposit in the applicable tax allocation fund. The Equalized Assessed Valuation for which the Village receives its portion of the total tax rate for all non -TIF purposes is shown in this table as "Net for General Taxing Purposes". -206- DETAILED OVERLAPPING BONDED INDEBTEDNESS PAYABLE FROM PROPERTY TAXES AT DECEMBER 31, 2014 Levy Years Percent of Village's Applicable Share Village of Mount Prospect: Village's 2014 2010 of Gross Debt to be Real Property Gross Paid From Property Taxes (1) SCHOOL DISTRICTS: in Taxing Body Bonded Debt Percent Amount Elementary Districts: 0.257 0.278 0.316 Mount Prospect No. 57 34.8% 7,045,000 94.988% 6,691,905 River Trails No. 26 28.2% 10,610,000 77.929% 8,268,267 Community Consolidated No. 59 27.7% 5,540,000 14.489% 802,691 Wheeling Community Consolidated No. 21 3.5% 40,805,000 3.003% 1,225,374 Prospect Heights No. 23 2.9% 9,940,000 7.542% 749,675 Arlington Heights No. 25 2.8% - 2.684% - High School Districts: 0.274 0.320 0.370 Wheeling/Elk Grove No. 214 99.8% 42,800,000 18.254% 7,812,712 Maine Township No. 207 0.2% 8,570,000 0.063% 5,399 Community Colleges: 0.582 0.646 0.761 Oakton No. 535 0.2% 35,370,000 0.013% 4,598 Harper No. 512 99.8% 166,045,000 8.847% 14,690,001 Total Schools 2.673 3.172 40,250,622 OTHER THAN SCHOOL DISTRICTS: 1.839 2.067 2.324 Cook County, Including Forest Preserve District 100.0% 3,771,515,000 1.080% 40,732,362 Metropolitan Water Reclamation District 100.0% 2,394,997,000 1.102% 26,392,867 Park Districts: 0.116 0.103 0.155 Mount Prospect 64.3% 4,297,000 63.648% 2,734,955 Arlington Heights 2.5% 13,205,000 1.609% 212,468 Des Plaines 1.6% 5,457,240 1.640% 89,499 Prospect Heights 3.6% - 15.274% - Total Other Than Schools 70,162,151 Notes: 1. Village's share based upon 2013 Real Property valuations. TAX RATES PER $100 EQUALIZED ASSESSED VALUATION (Note 1) Levy Years Village of Mount Prospect: 2009 2010 2011 2012 2013 Bonds and Interest $ 0.076 $ 0.098 $ 0.105 $ 0.113 $ 0.167 Pensions (Police, Fire) 0.190 0.257 0.278 0.316 0.393 Corporate 0.399 0.377 0.444 0.501 0.689 Garbage 0.089 0.097 0.109 0.121 0.026 Total Village $ 0.754 $ 0.829 $ 0.936 $ 1.051 $ 1.275 Cook County, Including Forest Preserve District 0.443 0.474 0.520 0.594 0.629 Metropolitan Water Reclamation District 0.261 0.274 0.320 0.370 0.417 Mount Prospect Park District 0.411 0.453 0.502 0.557 0.657 Mount Prospect Public Library 0.450 0.519 0.582 0.646 0.761 Special Service Area No. 5 0.095 0.105 0.114 0.122 0.140 Community Consolidated School District No. 59 1.945 2.129 2.422 2.673 3.172 Township High School District No. 214 1.636 1.839 2.067 2.324 2.768 Harper College No. 512 0.258 0.295 0.334 0.373 0.444 All Other 0.093 0.080 0.116 0.103 0.155 Total (2) $ 6.346 $ 6.997 $ 7.913 $ 8.813 $ 10.418 Village as a Percent of Total 11.9% 11.8% 11.8% 11.9% 12.2% Notes 1. As a home rule unit under the 1970 Illinois Constitution, the Village has no statutory tax rate or levy limitations. 2. Tax rate applicable to the largest tax code in the Village and most recent available from Cook County. -207- TAX EXTENSIONS AND COLLECTIONS (Village Purposes Only) Notes: 1. Source: Cook County Treasurer's Office. Tax payments, including late payments and proceeds from tax sales, are shown as collections in the year when due. The "Amount Collected" is not the same as distributions to the Village because tax refunds (pursuant to court orders, first time homestead exemptions other exemptions, etc.) are deducted from "Amount Collected" and interest earnings are added to "Amount Collected" in calculating the distributions. 2. Cook County property taxes are payable in two installments: the first on March 1, and the second on the latter of August 1 or 30 days after the mailing of the tax bills. The first installment is an estimated bill and is 55% of the prior year's bill. The second installment is based on the current levy, assessment and equalization and reflects any changes from the prior year in those factors. TEN LARGEST TAXPAYERS Total Taxes Collected as Levy Collection Total Taxes of December 31, 2014 (Note 1) Year Year Extended Amount Percent (2) 2009 2010 15,194, 636 14, 806, 368 97.44% 2010 2011 15,194, 635 14, 965, 565 98.49% 2011 2012 15, 852, 352 15, 657, 261 98.77% 2012 2013 16,477, 871 16,411, 869 99.60% 2013 2014 17, 301,436 17, 064, 355 98.63% Notes: 1. Source: Cook County Treasurer's Office. Tax payments, including late payments and proceeds from tax sales, are shown as collections in the year when due. The "Amount Collected" is not the same as distributions to the Village because tax refunds (pursuant to court orders, first time homestead exemptions other exemptions, etc.) are deducted from "Amount Collected" and interest earnings are added to "Amount Collected" in calculating the distributions. 2. Cook County property taxes are payable in two installments: the first on March 1, and the second on the latter of August 1 or 30 days after the mailing of the tax bills. The first installment is an estimated bill and is 55% of the prior year's bill. The second installment is based on the current levy, assessment and equalization and reflects any changes from the prior year in those factors. TEN LARGEST TAXPAYERS Notes: 1. Valuations as of January 1, 2013 for 2014 tax purposes. 2. Total 2013 Village valuation excluding incremental valuation in the Village's tax increment district is $1,390,270,568. Equalized Assessed Percent of Rank Taxpayer Business/Properties Valuation (1) Village (2) 1 Ramco Gershenson Prop Shopping Center $ 21,401,661 1.58% 2 Randhurst Casto Conger Shopping Center 21,120,282 1.56% 3 Golf Plaza I & II Shopping Center 13,485,708 0.99% 4 Home Properties Colony Colony Square Apartments 10,287,164 0.76% 5 CRP Holdings Real Estate 9,899,919 0.73% 6 LIT Industrial Lirnited Real Estate 7,501,215 0.55% 7 First Industrial Real Estate 7,474,259 0.55% 8 Costco Properties Warehouse Store 7,117,196 0.52% 9 Cummins -Allison Corp. Manufacturing 7,044,662 0.52% 10 Kensington Business Center Real Estate 7,022,165 0.52% $ 112,354,231 8.28% Notes: 1. Valuations as of January 1, 2013 for 2014 tax purposes. 2. Total 2013 Village valuation excluding incremental valuation in the Village's tax increment district is $1,390,270,568. 2007 AND 2013 TAX BASE DISTRIBUTION BY PROPERTY CLASSIFICATION* " Excludes the incremental valuation in the Village's tax increment financing district (classified as commercial valuation). A breakdown by property classification of the Village's levy year 2014 valuation is not available as of the date of this report. GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) Actual Village of Mount Prospect 2014 Revenues: 2010 2011 Taxable Valuation 2013 Percent of Total Actual Classification 2007 2013 % Increase 2007 2013 Residential 1,227,488,556 948,371,026 -22.74% 65.63% 69.87% Commercial 412,588,412 272,696,503 -33.91% 22.06% 20.09% Industrial 229,739,726 135,438,749 -41.05% 12.28% 9.98% Railroad 508,622 787,806 54.89% 0.03% 0.06% Total 1, 870, 325, 316 1, 357, 294, 084 -27.43% 100.00% 100.00% " Excludes the incremental valuation in the Village's tax increment financing district (classified as commercial valuation). A breakdown by property classification of the Village's levy year 2014 valuation is not available as of the date of this report. GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) -209- Actual 2014 Revenues: 2010 2011 2012 2013 Budget Actual Property Taxes 11,719,530 11,596,829 12,099,210 12,645,791 14,464,000 14,392,732 Sales Taxes 10,388,196 11,809,779 12,252,909 13,627,166 14,617,000 14,640,814 State Income Taxes 4,428,176 4,328,196 4,759,513 5,161,051 5,185,000 5,186,155 Licenses, Permits & Fees 3,394,211 3,356,816 3,657,586 3,589,368 2,523,500 2,496,760 Utility Taxes 5,709,895 4,624,678 4,658,265 4,658,265 3,951,000 4,093,598 Charges for Service 1,655,275 1,694,638 1,741,906 1,858,829 1,939,700 1,928,223 Fines & Forfeits 556,178 548,993 403,036 430,960 480,000 470,466 InvestmentIncome 43,540 23,067 29,927 6,561 22,500 (64,978) Food & Beverage Tax 790,965 867,630 710,328 719,190 810,000 738,642 Real Estate Transfer Tax 379,942 363,194 515,330 853,617 955,000 954,644 All Other Revenues 1,646,416 1,959,168 1,789,713 1,445,740 2,441,366 2,450,829 Total Revenues $40,712,324 $41,172,988 $42,617,723 $44,996,538 $47,389,066 $47,287,885 Expenditures: General Government Public Representation Division 155,765 108,809 110,257 114,948 135,522 142,574 Village Manager's Office 2,842,920 2,939,764 3,106,851 3,185,452 3,320,958 3,166,149 Finance Department 1,571,136 1,561,758 1,505,295 1,843,581 2,094,374 2,007,010 Community Development - Administration 625,171 628,017 644,281 661,459 737,996 673,549 Benefit Payments 45,724 45,861 46,004 46,150 46,301 46,300 Total General Government $ 5,240,716 $ 5,284,209 $ 5,412,688 $ 5,851,590 $ 6,335,151 $ 6,035,582 Public Safety: Code Enforcement 909,852 837,639 739,004 711,081 876,610 880,723 Police Department 14,512,406 14,657,035 15,286,394 15,783,921 16,817,251 16,578,937 Fire & Emergency Protection Department 11,443,146 11,448,614 11,946,079 12,678,986 13,202,787 13,166,937 Total Public Safety $ 26,865,404 $ 26,943,288 $ 27,971,477 $ 29,173,988 $ 30,896,648 $ 30,626,597 Highways & Streets 5,925,170 6,587,426 6,307,158 7,342,643 7,834,954 7,500,480 Heath 125,512 137,445 143,295 142,062 158,190 151,586 Welfare 1,573,887 1,487,707 1,624,282 1,569,824 1,665,972 1,585,083 Culture & Recreation 313,125 346,032 399,366 435,931 505,799 421,517 Net Transfers (I n)/Out 450,000 - - 166,247 - - Total Expenditures $40,493,814 $40,786,107 $41,858,266 $44,682,285 $47,396,714 $46,320,845 Revenues Over (Under) Expenditures $ 218,510 $ 386,881 $ 759,457 $ 314,253 $ (7,648) $ 967,040 Ending Fund Balance $ 10,417,991 $10,804,872 $ 11,564,329 $11,878,582 $ 11,870,934 $12,845,622 -209- Notes: 1 Assets: Cash & Investments Receivables Property Taxes Other Taxes All Other Due From Other Funds Due From Other Governments All Other Assets Total Assets Balance Sheet — December 31 2010 2011 2012 2013 2014 $ 4,067,456 $ 5,512,091 $ 7,352,604 $ 6,886,656 $ 6,879,252 12,668, 700 12,125,463 12,657, 923 14,543, 097 15,160,497 5,553,370 5,707,230 5,290,786 5,711,586 5,747,674 484,576 461,664 448,569 492,912 468,180 1,563,298 568,815 91,318 212,603 154,882 409,880 94,142 274,942 53,602 136,834 53,536 100,590 98,150 297,762 337,165 $ 24,800,816 $ 24,569,995 $ 26,214,292 $ 28,198,218 $ 28,884,484 Liabilities & Fund Balance Accounts Payable $ 669,697 $ 530,670 $ 621,570 $ 334,043 $ 216,535 Deferred Revenues Property Taxes 11,392,567 11,991,724 12,554,622 14,396,036 15,138,046 All Other Liabilities 2,320,561 1,242,729 1,473,771 1,589,557 684,281 Fund Balance: Nonspendable 53,536 100,590 98,150 297,762 337,165 Restricted - - - - - Committed - - - - - Unassigned 10,364,455 10,704,282 11,466,179 11,580,820 12,508,457 Total Fund Balance $ 10,417,991 $ 10,804,872 $ 11,564,329 $ 11,878,582 $ 12,845,622 Total Liabilities & Fund Balance $ 24,800,816 $ 24,569,995 $ 26,214,292 $ 28,198,218 $ 28,884,484 This condensed financial information for the years ending December 31, 2010-2014 has been excerpted from the full Comprehensive Annual Financial Reports of the Village. The accounting policies of the Village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: The General Fund is accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized when the related fund liability is incurred. -210- COMBINED STATEMENT -ALL FUNDS (Note 1) Fund Balances 2010-2013 and Summary 2014 Revenues, Excess Revenues and Fund Balance (Fiscal Years Ended December 31) Governmental Fund Types (2): General Fund * Special Revenue Funds: Motor Fuel Tax Community Development Block Grant Refuse Disposal* Asset Seizure DEA shared Funds DUI Fines Foreign Fire Tax Fund Justice Assistant Grant Fund Business District Fund Total Special Revenue Debt Service * Capital Projects (3) Total Governmental Proprietary & Fiduciary Fund Types Enterprise Funds (a): Water and Sewer Village Parking System Internal Service Funds (5) Pension Trust Funds: Police Pension Firefighter's Pension Total Proprietary & Fiduciary Total All Funds (Memo Only) Designated as major funds. Fiscal Year Ended December 31, 2014 Revenue Revenue Incl. Transfers Over Property (Under) Fund 2010 2011 2012 2013 Tax Total Expenditures Balance $ 10,417,991 $ 10,804,872 $ 11,564,329 $ 11,878,582 $ 14,392,732 $ 47,287,885 $ 967,040 $ 12,845,622 $ (230,294) $ 336,394 $ 509,470 $ 338,861 $ - $ 1,849,722 $ 1,058,504 $ 1,397,365 - - - - - 280,182 - - 2,261,635 2,146,149 2,355,748 2,445,117 342,000 3,646,133 (792,308) 1,652,809 60,205 54,000 40,479 42,659 - 49,055 41,016 83,675 16,749 4,909 4,919 11,514 - 24,657 8,424 19,938 41,302 44,132 55,431 65,287 - 38,560 35,793 101,080 116,134 171,030 227,346 273,346 - 67,680 14,631 287,977 - 10,203 835 - - - - - 77,195 434,120 83 1,014,353 (83) $ 2,265,731 2,844,012 3,628,348 3,176,867 $ 342,000 $ 6,970,342 365,977 3,542,844 (78,844) 131,372 135,817 121,491 2,237,000 4,912,449 10,144 131,635 4,531,304 3,559,985 7,530,930 15,705,506 2,311,740 7,570,828 2,080,065 17,785,571 $ 17,136,182 $ 17,340,241 $ 22,859,424 $ 30,882,446 $ 19,283,472 $ 66,741,504 $ 3,423,226 $ 34,305,672 $ 31,469,468 352,594 14,308,173 31,708,474 33,055,996 34,086,453 $ 1,508,704 $ 12,053,251 $ 153,951 34,240,404 351,986 331,280 323,832 - 355,570 25,582 349,414 13,484,444 13,420,662 14,587,299 - 11,400,788 1,210,310 15,797,609 44,540,311 44,777,147 48,922,651 55,375,975 - 7,621,451 3,443,949 58,819,924 43,860,979 43,864,977 47,233,555 53,716,416 7,073,801 2,851,924 56,568,340 $ 134,531,525 $ 134,059,623 $ 142,964,144 $ 158,089,975 $ 1,508,704 $ 38,504,861 $ 7,685,716 $ 165,775,691 $ 151,667,707 $ 151,399,864 $ 165,823,568 $ 188,972,421 $ 20,792,176 $ 105,246,365 $ 11,108,942 $200,081,363 Cash & Investments at 12/31 (e): 2010 2011 2012 2013 2014 General Fund $ 4,067,456 $ 5,512,091 $ 7,352,604 $ 6,886,656 $ 6,879,252 Internal Service Funds 9,720,037 10,014,605 9,567,402 10,830,350 10,476,211 Refuse Disposal 1,885,464 1,969,567 2,022,049 2,231,180 1,365,133 Other Special Revenue Funds 258,648 592,878 1,179,343 1,575,858 2,716,735 Debt Service Funds 438,301 20,636 113,267 130,210 Subtotal $$ 16� $ 18,089,141 $ 20,142,034 $ 21,637,311 $ 21,567,541 Capital Project Funds 3,635,004 3,221,653 6,657,075 15,487,737 16,290,597 Water & Sewer 3,148,880 2,709,629 4,356,739 5,382,441 4,697,147 Other Enterprise Funds 369,051 330,277 345,528 316,808 300,258 Pension Trust Funds 87,488,289 88,669,220 95,892,376 108,760,597 115,091,487 Other Fiduciary Funds 1,226,743 1,189,052 1,443,227 1,511,610 1,209,488 Total $ 112,237,873 $ 114,208,972 $ 128,836,979 $ 153,096,504 $ 159,156,518 Notes: 1. This condensed financial information for the years ending December 31, 2010-2014 has been excerpted from the full Comprehensive Annual Financial Reports of the Village. The accounting policies of the village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: All Governmental Funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets; expenditures are recognized when the related fund liability is incurred. All Proprietary Funds and Pension Trust Funds are accounted for using the accrual basis of accounting. This table excludes the Village's Expendable Trust Funds and Agency Funds. The Village's Comprehensive Annual Financial Report for the year ended December 31, 2014 included an unqualified "Independent Auditor's Report". Similar unqualified opinions were included in the Village's Comprehensive Annual Financial Reports for the years ending December 31, 2010-2013. The "Independent Auditor's Report" included in the latest audit states, in part: "7n our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2014, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America." 2. The Village's property tax revenue recognition policy conforms to the provisions of "NCGA Interpretation 3, Revenue Recognition Property Taxes." The current net tax levy receivable is recognized in the balance sheet along with a corresponding amount of deferred revenue. In addition, the debt service payments and liabilities related to the current net tax levy are not reflected in the Debt Service Funds; the un -matured principal is reflected in the General Long -Term Debt Account Group. 3. Includes the Capital Improvement Fund, which accounts for the resources used to provide for mid-sized capital projects. Financing is provided by one-quarter cent home rule sales tax, developer contributions, interfund transfers, investment income, and bond proceeds. 4. Fund balances shown for the Enterprise Funds are total fund equity, including contributed capital and retained earnings, and the column "Revenue Over Expenditures" represents the change in that amount. 5. The Village created a Risk Management Fund in 1984 to account for the servicing and payment of claims for liability, property, casualty coverage and Workers' Compensation. Financing is provided by charges to the various Village funds. The Village created a Vehicle Replacement Fund in fiscal year 1991 to account for the acquisition and depreciation of Village vehicles. Financing is provided by charges to the General, Water and Sewer, and Parking Funds. The Village created a Vehicle Maintenance Fund in 1996 to account for maintenance and repair of all Village vehicles except Fire Department vehicles. In 1997, the Village created a Computer Replacement Fund to account for the acquisition and depreciation of Village computer hardware. 6. Excludes agency funds. CAPITAL ASSETS (Note) (December 31, 2014) Note: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000, except for infrastructure for which the cost is $50,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. -212- Governmental Business Type Activities Activities Capital Assets Not Being Depreciated Capital Assets Not Being Depreciated Land $ 10,291,446 Land $ 17,551,172 Construction in Progress $ 1,176,816 Construction in Progress $ 605,282 Total Assets Not Being Depreciated $ 11,468,262 Total Assets Not Being Depreciated $ 18,156,454 Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings $ 38,009,332 Buildings and Improvements $ 4,875,816 Improvements Othern Than Buildings 384,000 Equipment 4,062,242 Infrastructure and All Other 101,795,351 Infrastructure 18,884,820 Total Capital Assets Being Depreciated $ 140,188,683 Total Capital Assets Being Depreciated $ 27,822,878 Less Accumulated Deprteciation $ 81,254,687 Less Accumulated Deprteciation $ 19,124,365 Total Capital Assets Being Depreciated, Net $ 58,933,996 Total Capital Assets Being Depreciated, Net $ 8,698,513 Net Assets $ 70,402,258 Net Assets $ 26,854,967 Note: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000, except for infrastructure for which the cost is $50,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. -212- Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MAYOR ARLENE A. JURACEK AND BOARD OF TRUSTEES FROM: DOREEN JAROSZ ADMINISTRATIVE ASSISTANT TO THE VILLAGE MANAGER DATE: NOVEMBER 9, 2015 SUBJECT: TOKENS AND TANKARDS, INC. d/b/a TOKENS AND TANKARDS (FORMER YE OLDE TOWN INN) 18 W. BUSSE AVE. REQUEST FOR A NEW CLASS "F3" LIQUOR LICENSE On Wednesday November 4, 2015, the Village Manager, Assistant Village Manager and Administrative Assistant to the Village Manager met with owner Vincent Scalabrino and Chief Advisor Tom Reboletti regarding his request for the creation of a new Class "F3" liquor license for the above referenced establishment which was previously occupied by "Ye Olde Town Inn." The Class "F-3" license provides for the full service of alcohol in a restaurant with lounge. Tokens and Tankards, created by Mr. Scalabrino, is a gastropub featuring a British pub fare themed atmosphere with vintage arcade games. It will be the first suburban gastropub where customers can enjoy the unique combination of elevated British pub dishes, large variety of craft beers and a premiere entertainment and gaming experience of classic pin ball machines made in Chicago. While Mr. Scalabrino has no previous experience as a liquor license holder he has fourteen years of management and entrepreneurial experience in marketing and video games. Chief advisor Mr. Reboletti has over thirty years experience consulting on restaurant and bar startups. Both intend to make this venture their full-time endeavor and will be on the site as the management team. A complete interior renovation of this historic 3000 square foot building is currently underway. This rehab will feature two bars and increased seating capacity to 36 tables with a thematic fantasy feel. The restaurant will be open Tuesday through Thursday from 3:00 p.m. to 11:00 p.m. and until 1:00 a.m. on Friday and Saturday. A late night menu will be offered to customers after 10 p.m. on weekends. Among the items discussed with the applicant were the requirements of the Village's Liquor Code including the need to be mindful of sales to minors as well as obviously intoxicated persons. Also discussed was the need for new managers to be fingerprinted and all employees involved in the delivery of alcohol to complete a certified liquor servers training course. Per village code Mr. Scalabrino has successfully completed a certified liquor servers' training course. The requirements of the Village's Fight Ordinance were also discussed and emphasized was the need for appropriate controls to be in place to insure that restaurant employees do not inadvertently violate code requirements. A completed application along with fees and required documents have been submitted. The applicant's fingerprints and background check are on file. If the Village Board views this application favorably, an Ordinance creating a new class "F-3" license is recommended for approval. DOREEN JAROSZ Administrative Assistant to the Village Manager [63V91101_l0[y=11110[�] AN ORDINANCE AMENDING CHAPTER 13 OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That in accordance with Subsection A of Section 13.108 of Chapter 13 of the Village Code of Mount Prospect, as amended, the Corporate Authorities shall determine the number of Liquor Licenses available in each Classification and shall establish a list specifying the number of Liquor Licenses authorized. Said list is hereby amended increasing the number of Class "F-3" Liquor Licenses by One (1) TOKENS AND TANKARDS INC. D/B/A TOKENS AND TANKARDS at 18 W. BUSSE AVENUE Said list is as follows: Five (5) Class P-1 License Nine (9) Class P-2 Licenses One (1) Class P-3 Licenses Zero (0) Class P-4 Licenses Zero (0) Class P-5 License Seven (7) Class F-1 License Nine (9) Class F-2 License Twenty -Seven (27) Class F-3 License One (1) Class F-4 License Two (2) Class F-5 License Two (2) Class F-6 License One (1) Class F-7 License One (1) Class S-1 License One (1) Class S-2 Licenses One (1) Class S-31-icenses Zero (0) Class S-41-icense One (1) Class S-5 License Zero (0) Class S-6 License Zero (0) Class S-7 License Zero (0) Class S-8 (with conditions as Attached to License) SECTION TWO: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of 12015. Mayor ATTEST: Village Clerk Class Establishment Number P1 Balzano Liquor; D&H Liquors; Jay Liquors; Mt. Prospect Liquors; Red Cardinal 5 P2 Costco; Fiesta Market; Fresh Thyme Farmers Market, LLC; Osco Drug Store; 9 CVS Pharmacy; Walgreens #00209 (Kensington); Walgreens #05107(Elmhurst) Wal-Mart #1681; World Market P3 Aldi; 1 P-4 0 P5 0 F-1 Chipotle Mexican Grill; Chungkiwa Restaurant; Izakaya Sankyu; LePeep Cafe; 7 Los Arcos; MI Restaurant; New Pusan Restaurant F-2 Arnie Salerno's Pizzeria; Avanti Cafe and Sandwich Bar; Frankie's Fast Food; 9 Mr. Beef & Pizza; Pei Wei Asian Diner; Photo's Hot Dogs; Qulinarnia; Tortas Locas; Yupin Thai Kitchen F-3 Balkan Taste; Bar Louie; Black Finn American Grille; Buffalo Wild Wings 27 Grill and Bar; Canta Napoli; Crave Pizza; Draft Picks; E&O Food & Drink; EI Sombrero; Emerson's Ale House; Fellini Restaurant and Pizzeria; K -Nal Restaurant; Jameson's Charhouse; Kampai Japanese Steak House; Langostino's; Mia's Cantina; Mina Restaurant; Mrs. P & Me; Nina Restaurant; Outback Steakhouse; Pap's Grill & Bar; Retro Bistro; Rokudenashi; Sam's Place; Smokey Bones Bar & Fire Grill; Tokens and Tankards; Truco F-4 Prospect Moose Lodge 1 F-5 Bristol Palace; Emerald Banquets 2 F-6 Mt. Prospect Park District -Golf Course; Prospect Heights Park District 2 F-7 Dave's Specialty Foods 1 S-1 Hampton Inn & Suites 1 S-2 Brunswick Zone 1 S-3 Moretti's; 1 S-4 0 S-5 AMC Randhurst 12 1 S-6 0 S-7 0 S-8 0 68 Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: BOARD OF TRUSTEES VILLAGE MANAGER MICHAEL CASSADY VILLAGE CLERK LISA ANGELL JOHN KEANE, TRANSPORTATION / SAFETY CHAIR FROM: MAYOR ARLENE A. JURACEK DATE: NOVEMBER 9, 2015 SUBJECT: APPOINTMENT/REAPPOINTMENT TO BOARDS/COMMISSIONS lilt Pre7speCE I hereby nominate the following individual for reappointment to the following Boards and Commission: Transportation/Safety Commission Reappointment: Robert Fisher 604 S. School Iindasfisher1403 �ya_hoo.com Term to expire November 2019 I recommend the above -listed individual be reappointed. I believe he will represent the Village fairly and objectively. AJ/d j ARLENE A. JUKACEK Mayor