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Home My WebLink About3.1 Annual Report of the Audit Committee and Acceptance of Comprehensive Annual Financial Report (CAFR) 8/20/2019 BoardDocs®Pro v „tllr, T-77 Agenda Item Details Meeting Aug 20, 2019 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 3. MAYOR'S REPORT Subject 3.1 Annual Report of the Audit Committee and Acceptance of Comprehensive Annual Financial Report (CAFR) for December 31, 2018 Access Public Type Discussion, Information Public Content Information The Audit Committee has prepared it's annual report to the Village Board on Committee activities for the past year. A primary function of the Audit Committee is oversight of the annual audit process. The audit process for 2018 has concluded, and the Comprehensive Annual Financial Report (CAFR) has been provided to the Village Board for review and final acceptance. The Audit Committee Chair and staff will be on hand to present information and answer questions on the recently concluded audit process and 2018 CAFR. Follow this link to view the complete 2018 CAFR report. The major items to consider from the CAFR is: a) For the year 2018, the independent audit firm Sikich, LLP has issued a clean and unqualified opinion on the financial statement. Per the audit report, the financial statements are free from any material misstatement, and it fairly represents the financial condition of the Village. The financial statements are also prepared in accordance with the generally accepted accounting principles. b) The Management letter communicates if there are any material weaknesses in the internal controls, and the auditor has identified none. c) The General Fund reported a surplus of $3.65 million of the expenses and the ending fund balance for the General Fund is $23.0 million d) The GASB 75 - Other Post-Employment Benefit reporting is implemented, and the net liability of $10.8 million is reported per the GASB first time. e) The Audit was conducted in March to May 2019 and was concluded in June 2019. The extensive fieldwork was completed in May 2019. The Audit Committee approved and accepted the audit on June 26, 2019. f) The CAFR also included the Certificate of Achievement for Excellence in the Financial Reporting received from GFOA for 2017 Audit. This marks 25th consecutive year of the Village receiving this award. The Village will also be submitting the 2018 CAFR for the award. Alternatives 1. Accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for the period ending December 31, 2018. 2. Action at the discretion of Village Board. https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login# 1/2 8/20/2019 BoardDocs®Pro Staff Recommendation: Staff recommends the Village Board accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for the period ending December 31, 2018. 2018 CAFR - Village of Mount Prospect.pdf (3,862 KB) Annual Report - Audit Committee - 2018.pdf (765 KB) Administrative Content Executive Content https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login# 2/2 MOUNT PROSPECT, ILLINOIS -M� 4 COMPREHENSIVE ANNUAL FINANCIAL RhTOR'1' VILLAGE OF MOUNT PROSPECT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2018 Prepared by: Finance Department Amit Thakkar Director of Finance Lynn M. Jarog Deputy Director of Finance VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION PrincipalOfficials................................................................................................................... i OrganizationalChart.............................................................................................................. ii Letter of Transmittal............................................................................................................... in-vii Certificate of Achievement for Excellence in Financial Reporting...................................... viii FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT ............................................................................ 1-3 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS........................ 4-5 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........................................................................................ 6-7 Statement of Activities............................................................................................ 8-9 Fund Financial Statements Governmental Funds BalanceSheet....................................................................................................... 10-11 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position......................... 12 Statement of Revenues, Expenditures, and Changes in Fund Balances............. 13 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities ........................................................... 14 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.................................................................................... 15-16 Statement of Revenues, Expenses, and Changes in Net Position....................... 17 Statement of Cash Flows..................................................................................... 18-19 Fiduciary Funds Statement of Fiduciary Net Position ................................................................... 20 Statement of Changes in Fiduciary Net Position................................................ 21 Notes to Financial Statements...................................................................................... 22-82 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual GeneralFund........................................................................................................... 83 RefuseDisposal Fund.............................................................................................. 84 Prospect/Main TIF Fund......................................................................................... 85 Schedule of Changes in the Employer's Total OPEB Liability and Related Ratios Other Postemployment Benefits Plan................................................................. 86 Schedule of Employer Contributions Illinois Municipal Retirement Fund........................................................................ 87 PolicePension Fund................................................................................................ 88 Firefighters' Pension Fund ................................................................................. 89 Schedule of the Village's Proportionate Share of the Net Pension Liability Illinois Municipal Retirement Fund ...................................................................... 90 Schedule of Changes in the Employer's Net Pension Liability and Related Ratios PolicePension Fund................................................................................................ 91 Firefighters' Pension Fund...................................................................................... 92 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Required Supplementary Information(Continued) Schedule of Investment Returns PolicePension Fund........................................................................................... 93 Firefighters' Pension Fund ................................................................................. 94 Notes to Required Supplementary Information....................................................... 95 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund Schedule of Revenues -Budget and Actual............................................................ 96-98 Schedule of Expenditures - Budget and Actual...................................................... 99 Schedule of Detailed Expenditures - Budget and Actual....................................... 100-111 Special Revenue Fund Refuse Disposal Fund Schedule of Operating Revenues- Budget and Actual....................................... 112 Capital Projects Fund Police and Fire Building Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budgetand Actual ............................................................................................. 113 Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual.................................................... 114 NONMAJOR GOVERNMENTAL FUNDS CombiningBalance Sheet............................................................................................ 115 Combining Statement of Revenues, Expenditures, and Changesin Fund Balances ......................................................................................... 116 Nonmajor Special Revenue Funds Combining Balance Sheet....................................................................................... 117-118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................................................... 119-120 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 Special Revenue Funds (Continued) Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual ................................................ 121 Schedule of Expenditures - Budget and Actual.................................................. 122 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual................................................ 123 Schedule of Expenditures - Budget and Actual.................................................. 124 Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual AssetSeizure Fund.............................................................................................. 125 Federal Equitable Share Fund............................................................................. 126 DUIFines Fund................................................................................................... 127 Foreign Fire Insurance Fund................................................................................ 128 Business District Fund......................................................................................... 129 Nonmajor Capital Projects Funds CombiningBalance Sheet....................................................................................... 130 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................................................... 131 Capital Improvement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual ................................................ 132 Schedule of Expenditures - Budget and Actual.................................................. 133 Flood Control Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual ................................................ 134 Schedule of Expenditures - Budget and Actual.................................................. 135 Street Improvement Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual ................................................ 136 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) MAJOR ENTERPRISE FUND Water and Sewer Fund Schedule of Revenues, Expenses, and Changes in Net Position- Budget and Actual...................................................... 137 Schedule of Operating Revenues- Budget and Actual .......................................... 138 Schedule of Operating Expenses- Budget and Actual........................................... 139-141 NONMAJOR ENTERPRISE FUNDS Combining Statement of Net Position......................................................................... 142 Combining Statement of Revenues, Expenses, and Changes in Net Position............ 143 Combining Statement of Cash Flows .......................................................................... 144-145 Parking System Revenue Fund Schedule of Revenues, Expenses, and Changes in Net Position- Budget and Actual...................................................... 146 Schedule of Operating Expenses- Budget and Actual........................................... 147 Village Parking System Fund Schedule of Revenues, Expenses, and Changes in Net Position- Budget and Actual...................................................... 148 Schedule of Operating Expenses- Budget and Actual........................................... 149 INTERNAL SERVICE FUNDS Combining Statement of Net Position......................................................................... 150 Combining Statement of Revenues, Expenses, and Changes in Net Position............ 151 Combining Statement of Cash Flows .......................................................................... 152-153 Computer Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Position- Budget and Actual...................................................... 154 Schedule of Operating Expenses- Budget and Actual........................................... 155 Risk Management Fund Schedule of Revenues, Expenses, and Changes in Net Position- Budget and Actual...................................................... 156 Schedule of Operating Revenues- Budget and Actual .......................................... 157 Schedule of Operating Expenses- Budget and Actual........................................... 158 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) Vehicle Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Position- Budget and Actual...................................................... 159 Schedule of Operating Revenues- Budget and Actual .......................................... 160 Schedule of Operating Expenses- Budget and Actual........................................... 161 Vehicle Maintenance Fund Schedule of Revenues, Expenses, and Changes in Net Position- Budget and Actual...................................................... 162 Schedule of Operating Revenues- Budget and Actual .......................................... 163 Schedule of Operating Expenses- Budget and Actual........................................... 164 FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Net Position-Pension Trust Funds ............................... 165 Combining Statement of Changes in Net Position-Pension Trust Funds............ 166 Schedule of Changes in Net Position- Budget and Actual PolicePension Fund............................................................................................ 167 Firefighters' Pension Fund .................................................................................. 168 AGENCY FUNDS Combining Statement of Changes in Assets and Liabilities -Agency Funds .................................................................................... 169-170 OTHER SUPPLEMENTAL DATA Consolidated Year End Financial Report.................................................................... 171 SUPPLEMENTAL DATA LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS Schedule of General Long-Term Debt......................................................................... 172-173 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) SUPPLEMENTAL DATA (Continued) LONG-TERM DEBT REQUIREMENTS General Obligation Bonds of 2011B............................................................................ 174 General Obligation Bonds of 2012 .............................................................................. 175 General Obligation Bonds of 2013 .............................................................................. 176 General Obligation Bonds of 2014 .............................................................................. 177 General Obligation Refunding Bonds of 2016............................................................ 178 General Obligation Refunding Bonds of 2016A......................................................... 179 General Obligation Bonds of 2017 .............................................................................. 180 General Obligation Bonds of 2018A........................................................................... 181 General Obligation Bonds of 2018B............................................................................ 182 IEPA Flood Loan(L17-1087) Contract Payable of 1999............................................ 183 Installment Note Payable of 2012................................................................................ 184 STATISTICAL SECTION Financial Trends Net Position by Component..................................................................................... 185-186 Change in Net Position............................................................................................. 187-190 Fund Balances of Governmental Funds ................................................................... 191-192 Changes in Fund Balances of Governmental Funds ................................................ 193-194 Revenue Capacity Assessed Value and Actual Value of Taxable Property........................................... 195 Property Tax Rates - Direct and Overlapping Governments ................................... 196-197 Principal Property Taxpayers................................................................................... 198 Property Tax Levies and Collections ....................................................................... 199 SalesTaxes by Category.......................................................................................... 200 Business District Sales Taxes by Category.............................................................. 201 Home Rule Sales by Category.................................................................................. 202 Direct and Overlapping Sales Tax Rates.................................................................. 203 Debt Capacity Ratios of Outstanding Debt by Type........................................................................ 204 Ratios of General Bonded Debt Outstanding........................................................... 205 Direct and Overlapping Governmental Activities Debt........................................... 206 Schedule of Legal Debt Margin ............................................................................... 207 Demographic and Economic Information Demographic and Economic Information................................................................ 208 PrincipalEmployers................................................................................................. 209 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION(Continued) Operating Information Full-Time Equivalent Employees................................................................................. 210-211 Operating Indicators..................................................................................................... 212-213 Capital Assets Statistics by Function........................................................................... 214 Additional Disclosures Required by SEC Rule 15c2-12.................................................. 215-227 VILLAGE OF MOUNT PROSPECT, ILLINOIS PRINCIPAL OFFICIALS DECEMBER 31, 2018 MAYOR Arlene A.Juracek TRUSTEES William A. Grassi Richard F. Rogers Eleni Hatzis Colleen E. Soccotelli Paul Wm. Hoefert Michael A.Zadel ADMINISTRATION Michael J. Cassady Village Manager Nellie S. Beckner Assistant Village Manager Karen Agoranos Village Clerk David O. Erb Director of Finance/Treasurer William J. Cooney,Jr. Director of Community Development William M.Schroeder Director of Building and Inspection Services Julie K. Kane Director of Human Services John A. Koziol Police Chief Brian Lambel Fire Chief Sean P. Dorsey Director of Public Works - 1- VILLAGE OF MOUNT PROSPECT, ILLINOIS ORGANIZATIONAL STRUCTURE Electorate 01 "IN Village Board Mayor Six Trustees Elected At Large Audit Committee Boards Village Services Commissions Fire Pension Police Pension Finance Economic Board Board Village Manager Commission Development Commission Fire&Police Foreign Fire Village Finance Transportation Planning& Insurance Tax Safety Zoning Commissioners Board Administration Department Commission Commission Community Human Services Special Events Sister Cities Development Department Commission Commission Department Police Fire Department Department Public Works Department The mission of Mount Prospect Village Government is to advance our community's collective quality of life and potential through adaptive leadership and leading-edge service delivery. - ii - MAYOR VILLAGE MANAGER Arlene A.Juracek Michael J.Cassady TRUSTEES Moa Ana Prmspe(I'll VILLAGE CLERK William A.Grossi Karen Agoranos Eleni Hatzis Paul Wm.Hoefert Phone: 847/392-6000 Richard F.Rogers Fax: 847/392-6022 Colleen E.Saccotelli iviviv.mowitprospect.org Michael A.Zadel Village of Mount Prospect 50 South Emerson Street, Mount Prospect, Illinois 60056 June 27, 2019 The Honorable Arlene A.Juracek, Village President Members of the Board of Trustees Village Manager Michael J. Cassady, 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, 2018 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 31,2018,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, 2018 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. - iii - 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 10.8 square miles and a population of 54,167 (2010 Census). 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 communication (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-July 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 August. Initial budget requests are compiled by the end of August. A proposed budget is prepared and delivered to the Village Board and Finance Commission at the end of September. 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 joint workshops are held with members of the Village Board and Finance Commission at two (2) Committee of the Whole meetings in October. The Finance Commission also meets separately with staff in October. 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 and major special revenue funds, with appropriated annual budgets, this comparison is presented in the non-major governmental fund subsection of this report. - iv - 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 initiatives found in the Village's Strategic Plan and commitment to ensuring its citizens are able to live and work in an enviable environment. Below is a list of the more significant accomplishments that address various goals identified for 2018. • Public Safety Building — Village staff completed the acquisition of 799 Biermann Ct. for the new Police Headquarters and 111 E. Rand Road for the new Fire Headquarters and station#13 facility. • Levee 37 Plan—The Village has successfully secured $2,000,000 in grant funding for the construction of storm water detention and associated storm mainline pipe upsizing in the Newton subdivision tributary to the Des Plaines River. • Sidewalk Policy & Program — The Village has deployed various strategies successfully to repair the sidewalks and have mitigated over 2,000 vertical offsets in the Village's sidewalk network. • Parenti and Raffaelli Ltd development & Busse Triangle Property Development — The Village has successfully completed the relocation of Parenti and Raffaelli Limited and the relocation has opened up this key site for redevelopment in the downtown.The development at 20 West and Park Terrace will bring 85 additional residential units in the downtown. • Annexation Initiative — Continued annexation strategy to incorporate areas surrounded by the Mount Prospect corporate limits. The Village has successfully completed the tollway annexation, which allows the annexation of the property north of 1-90 and west of Wellner Creek. • Downtown Intersection Study — The Village has completed a study that included an additional vehicle crossing at the railroad tracks. • Downtown Pedestrian: Busse/Main Crossing—The final design engineering for the project is completed and the project is submitted to the Illinois Department of Transportation for their review. • Traffic Control on Major Corridors — The Village has completed the Phase I engineering for Rand Road/Central Road/Mount Prospect Road intersection. The Village has also started the Phase I engineering for Rand Road/Kensington Road/Route 83 intersection. • Business Attraction Strategy—The Village has deployed various business attraction strategies.To attract new restaurants, the Village has approved a Gaming Ordinance in support of restaurateurs. As a part of the Village's branding strategy, the branding and marketing plan is being implemented. Refer to the Strategic Plan tab of the 2019 Annual Budget document for a complete listing of major initiatives and accomplishments. All Departments continue to perform extremely well in delivering high quality services to our residents and business community. Initiatives included in the Village's strategic plan have provided a focus for these services. The Village's Annual Budget and Audit Documents were again recognized for their clarity and usability and Mount Prospect was recognized as Tree City U.S.A.for the 34th consecutive year. - v - 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. Local economy. The Village continues to benefit from growth in the local economy. 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, 2018 were$23,658,634 compared to $19,458,742 for the previous year, an increase of 21.58%. The increase from the prior year is due to strong growth in the drug and miscellaneous retail and automobile/filling station 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 $2.30 billion for 2018. The Village projects that this revenue source will increase 3.0% during 2019 and 2020. The Village will continue its efforts in the area of economic development and is optimistic that retail sales will grow in the coming years. Mount Prospect's average unemployment during 2018 was 2.9%. This was a decrease from the prior year of 80 basis points (3.7% in 2017). The average unemployment rate for the State of Illinois for 2018 was decreased 80 basis points from the prior year coming in at 4.2%.The rate for U.S. decreased 50 basis points from 4.4%to 3.9%. Mount Prospect's median family income, $71,925 as of the 2010 Census(using 5-year estimates),was 21% higher than the median for Cook County($59,426) and 17% higher than the median for the State of Illinois ($61,229). 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 Zurich North America. 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 continued into 2018. During the 2018 workshop, financial status reports were provided for end-of-year results for 2017, updated projections for 2018 and a revised forecast for 2019. Two additional tools have been developed in managing the long-range finances of the Village. The first is a Five- Year Community Investment Program that outlines the major capital expenditure/project initiatives of the Village over the next five years and identifies funding sources. Over the next five years (2019-2023), the Village has identified $160.4 million in water and sewer, flood control, street, public building, equipment and other miscellaneous capital projects. The second is the Village Strategic Plan for 2020 completed in early 2016. The strategic plan provides the mission, vision, and goals for vision attainment along with the strategic action plan of the organization. An implementation guide was developed in October 2016 using the goals identified in the Strategic Plan. This implementation guide provides the objectives, short-term challenges and opportunities, and - vi - action items to be taken for accomplishing the goals of the Village. Action items were prioritized as top or high priority by the Village Board and fall into three categories; Policy Agenda, Management Agenda and Management in Progress. The implementation guide is updated annually reflecting work completed and changing priorities. Funding of initiatives identified in the strategic plan will receive a higher priority during the budget process. 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, 2017. 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. 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, 2018 and ending December 31, 2018. 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 2019 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, Mike Grochocki, Accounting Supervisor and Accountants Nancy Warnock and Rumiana Nihtianova who contributed greatly to its preparation. I would also like to thank Dave Erb, Former Finance Director,for providing exceptional leadership to the Finance Department at the Village of Mount Prospect for fifteen years. Additionally, I would like to acknowledge the Mayor, the Board of Trustees, the Finance Commission and 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, A0 Amit Thakkar Finance Director - vii - 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, 2017 P. 2)10w� Executive Director/CEO - viii- CERTIFIED PUBLIC ACCOUNTANTS&ADVISOPS SIKICH. , embets of Amei-i a n drustuluaa`c o a-rilrfle d Ptibdu`r &(outdlont: 1415 Wash If.)lia"hIl I1::?,oad, Suulite 433 N all ei viilllle, IIIL..60563 33 .533.3400 IICIwM INDEPENDENT AUDITOR'S REPORT The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois Report on the Financial Statements 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, 2018, and the related notes to the 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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. ACCOUNTING TIEC111.111NOILOGY ADVISORY - 1 - We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2018, 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 GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which established standards for measuring and recognizing liabilities, deferred inflows and outflows of resources and expenses and modified certain disclosures in the notes to financial statements and the required supplementary information as discussed in Note 13 to the basic financial statements. 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, supplemental data, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. - 2 - 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. The introductory section, supplemental data, and statistical section 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated June 26, 2019, on our consideration of the Village's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village's internal control over financial reporting and compliance. s * "" zap Naperville, Illinois June 26, 2019 - 3 - CERTIFIED PUBLIC ACCOUNTANTS&ADVISOPS SIKICH. , cmbets ol'Amei-i a n drustuluaa`c o a-rilrfle d d"ublir &(outdlont: 1415 West If.)lia"hIl I1::?,oad, Suulite 433 N all ei viilllle, IIIL..60563 330.533.3400 IICIwM INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois We have audited,in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the 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, 2018, and the related notes to financial statements, which collectively comprise the Village's basic financial statements and have issued our report thereon dated June 26, 2019 Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we do not express an opinion on the effectiveness of the Village's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent, or detect and correct, misstatements on a timely basis. 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. 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 by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. ACCOUNTING TIEC111.111NOILOGY ADVISORY - 4 - Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. satd zdp Naperville, Illinois June 26, 2019 - 5 - GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS VILLAGE OF MOUNT PROSPECT,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For Fiscal Year Ended December 31,2018 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 4-7) 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 pages 4-5 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 6-7)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 8-12)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&A1 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 Government-Wide Financial Statements. While the Business-type Activities column on the Proprietary Fund Financial Statements(see pages 13-17)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 10 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 decreased from a negative$14.8 million to a negative $29.6 million. There is a restatement done to the net position as of January 1, 2018 due to change in the accounting principle due to the first time application of GASB statement 75 (Accounting and Financial Reporting for Post- Employment Benefits Other Than Pensions). The net decrease of$11.0 million is attributable to the change in the accounting principal,$2.9 million is attributable to a decrease of$2.8 million in Governmental Activities and decrease of$0.9 in Business-Type Activities. Table 1 reflects the condensed Statement of Net Position. For more detailed information see the Statement of Net Position found on pages 4-5. 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.) MD&A2 VILLAGE OF MOUNT PROSPECT,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS(Continued) Table 1 Statement of Net Position as of December 31,2018(in millions) Governmental Business-type Activities Activities Total 2018 2017 2018 2017 2018 2017 Current and other assets $ 114.0 $ 78.6 $ 15.7 $ 12.4 $ 129.7 $ 91.0 Capital assets 68.4 63.4 37.6 36.7 106.0 100.1 Total assets $ 182.4 $ 142.0 $ 53.3 $ 49.1 $ 235.7 $ 191.1 Deferred outflows of resources 17.3 14.2 0.4 1.0 17.7 15.2 Total assets/deferred outflows $ 199.7 $ 156.2 $ 53.7 $ 50.1 $ 253.4 $ 206.3 Current liabilities $ 5.3 $ 5.9 $ 1.4 $ 1.0 $ 6.7 $ 6.9 Noncurrent liabilities 232.4 175.1 10.3 6.9 242.7 182.0 Total liabilities $ 237.7 $ 181.0 $ 11.7 $ 7.9 $ 249.4 $ 188.9 Deferred inflows of resources 32.5 32.0 1.1 0.2 33.6 32.2 Total liabilities/deferred inflows $ 270.2 $ 213.0 $ 12.8 $ 8.1 $ 283.0 $ 221.1 Net Position Net investment in capital assets $ 30.2 $ 34.2 $ 32.5 $ 36.0 $ 62.7 $ 70.2 Restricted net position 7.1 4.1 - - 7.1 4.1 Unrestricted net position 107.8 95.1 8.4 6.0 99.4 89.1 Total net position $ (70.5) $ (56.8) $ 40.9 $ 42.0 $ (29.6) $ (14.8) 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 f,� or 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 non-borrowed 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. (See independent auditor's report.) MD&A3 VILLAGE OF MOUNT PROSPECT,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS(Continued) Current Year Impacts Governmental activities net position decreased$2.9 million while the business-type activities net position decreased by $0.9 million. The governmental activities total assets/deferred outflows increased by $43.5 million and the governmental activities total liabilities/deferred inflows increased by $57.2 million, of which $10.75 million of increases are attributable to first time application of GASB 75 (Accounting and Financial Reporting for Post- Employment Benefits Other Than Pensions). The total assets increase of$43.5 million in governmental activities was the result of an increase of$35.4 million in current and other assets,increase of$5.0 million in capital assets and, an increase in deferred outflows of$3.1 million. The$35.4 million increase in current assets was due to an increase in cash of$40.4 million and a decrease in due from other governments of$1.6 million. Surplus from operations in the General Fund and proceeds from the sale of bonds accounted for the increase in cash and investments. Amounts due from the Mount Prospect Public Library related to their outstanding debt accounted for the decrease in due from other governments. The decrease in total net position of$0.9 million in business-type activities was due to an increase in current assets of$3.3 million, an increase in capital assets of$0.9 million, a decrease in deferred outflows of$0.6 million,a net increase in current and noncurrent liabilities of$3.8 million,and an increase in deferred inflows of$0.9 million. The increase in deferred outflows of$3.1 million for the governmental activities was due to a increase in pension- related items for 1MRF,Police and Fire. The decrease in current liabilities was primarily due to decrease in the total accounts payable. Changes in the other categories resulted in the timing related to the normal course of operations. Liabilities for business-type activities increased from $7.9 million to $11.7 million. This increase was due to an increase in non-current liabilities of$3.4 million and an increase in current liabilities of$0.4 million. Changes in Net Position The Village's combined change in net position for the primary government in 2018 was a decrease of$3.8 million versus a decrease of$2.1 million in 2017. Activities for the governmental activities saw a decrease in net position of $2.9 million from 2017,while activities for the business-type funds saw a decrease in net position of$0.9 million from 2017. 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 31,2018(in millions) Governmental Business-type Activities Activities Total Revenues 2018 2017 2018 2017 2018 2017 Program revenues Charges for service $ 11.0 $ 10.7 $ 14.6 $ 13.7 $ 25.6 $ 24.4 Operating grants 2.0 2.7 - - 2.0 2.7 Capital grants/contrib. 0.5 0.2 - - 0.5 0.2 General revenues Property taxes 19.2 18.4 - 1.5 19.2 19.9 Business district taxes 0.3 0.3 - - 0.3 0.3 Sales/Use taxes 29.8 25.3 - - 29.8 25.3 Income taxes 5.2 5.0 - - 5.2 5.0 Utility taxes 3.5 3.5 - - 3.5 3.5 Other taxes 4.3 4.4 - - 4.3 4.4 Investment income 0.7 0.2 - - 0.7 0.2 Contributions - - - - - - Other 1.2 - 0.2 0.1 1.4 0.1 Total revenue $ 77.7 $ 70.7 $ 14.8 $ 15.3 $ 92.5 $ 86.0 Expenses General government $ 11.9 $ 10.7 $ - $ - $ 11.9 $ 10.7 Public safety 42.7 37.4 - - 42.7 37.4 Highways and streets 15.6 16.2 - - 15.6 16.2 Health 4.8 4.6 - - 4.8 4.6 Welfare 1.6 2.1 - - 1.6 2.1 Culture and recreation 0.6 0.6 - - 0.6 0.6 Interest 3.4 2.0 - - 3.4 2.0 Water and sewer - - 15.4 14.3 15.4 14.3 Parking - - 0.3 0.2 0.3 0.2 Total expenses $ 80.6 $ 73.6 $ 15.7 $ 14.5 $ 96.3 $ 88.1 Change in net position $ (2.9) $ (2.9) $ (0.9) $ 0.8 $ (3.8) $ (2.1) Net Position,January 1 $ (56.9) $ (54.0) $ 42.0 $ 41.2 $ (14.9) $ (12.8) Change in accounting principal (10.7) - (0.3) - (11.0) - Prior Period Adjustment - - - - -Net Position(Deficit),January 1,Restated $ (67.6) $ (54.0) $ 41.7 $ 41.2 $ (25.9) $ (12.8) Net Position(Deficit),December 31 $ (70.5) $ (56.9) $ 40.8 $ 42.0 $ (29.7) $ (14.9) (Note:There may 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 grant 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 2018 were$77.7 million. Sales/Use taxes are the largest revenue source for governmental activities accounting for $29.8 million or an increase of$4.5 million from the prior year. The increase was due primarily to the steadily improving local 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. Property taxes are the second highest revenue source with $19.2 million in revenue. This revenue has historically been the most stable source for the Village. This was an increase of$0.8 million from the prior year due to a new Tax Increment Financing district of Prospect/Main. There was an increase of$0.3 million in charges for service. The investment income for the year is $0.7 million or an increase of 0.5 million from the prior year. Other taxes and revenues sources didn't show any significant changes compared to 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 2018 were$80.6 million. Public Safety, which includes Police and Fire, accounts for the largest portion of governmental expenses. Total Public Safety expenses in 2017 were $42.7 million, an increase of$5.3 million from 2017. The increases are mainly attributable to capital projects as well as the increase in the Police and Fire pension expenses.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$15.6 million, a decrease of$0.6 million from the prior year. The decrease is primarily due to expenses related to capital projects. Business-Type Activities Revenues: Total revenues for the Village's Business-Type Activities for 2018 were$14.8 million. Business-type activities in the Village consist of Water and Sewer Operations and Parking Operations. Charges for service annually account for the largest share of revenue for business-type activities. Of the $14.6 million generated in 2018, $14.2 million is from water sales and sewer fees and charges, $0.3 million is from parking operations and the balance is from various penalties, tap and meter fees. For 2017, water sales and sewer fees were$13.4 million. Previously,the Water and Sewer Fund also received special service area taxes in the amount of$1.5 million. The final debt payment pertaining to the special service area is concluded and special service area taxes are eliminated for the fiscal year 2018 and onwards. These taxes supported 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 2018 were$15.7 million. Of the total expenses for business-type activities, $15.4 million is attributable to Water and Sewer while $0.3 million is attributable to parking. $6.6 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 $14.5 million in expenses for 2017,$6.5 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$3.7 million in 2018 from $19.3 million to$23.0 million. In 2018,General Fund revenues came in above the final budget by$0.7 million while expenditures and net transfers came in$1.8 million under budget. The final Village budget had anticipated an increase in the General Fund-fund balance of$1.2 million. No other significant deviations from the final budget were seen in revenues during 2018. (See independent auditor's report.) MD&A7 VILLAGE OF MOUNT PROSPECT,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS(Continued) General Fund Budgeting Highlights During 2018,the Village amended the budget four(4)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 94. Table 3 General Fund Budgetary Changes Calendar Year 2018 (in millions) Original Revised Budtzet Budget Actual Revenues and Other Financing Sources Taxes $ 23.9 $ 23.8 $ 23.8 Intergovernmental 24.7 28.8 29.4 Other 4.9 5.7 5.8 Total Revenues $ 53.5 $ 58.3 $ 59.0 Expenditures and Transfers Expenditures $ 54.1 $ 54.7 $ 52.9 Net Transfers 0.8 2.4 2.4 Total Expenditures and Transfers $ 54.9 $ 57.1 $ 55.3 Change in Fund Balance $ (1.4) $ 1.2 $ 3.7 Other Major Funds There are four (4) other Major Funds for Fiscal Year ended December 31, 2018. These four Funds are 1) Refuse Disposal Fund,2)Debt Service Fund,3)Prospect/Main TIF Fund,4)Police and Fire Building Construction. Refuse Disposal Fund-This special revenue type Fund coordinates the Village's comprehensive municipal solid waste program. Total revenues for 2019 were$4.4 million,an increase of$0.1 million from the prior year. Almost the entire amount of revenue received during 2018 was due to charges for service. Total expenditures for 2018 were$4.5 million, an increase of$0.3 million from the prior year. Ending fund balance decreased by$0.1 million to$1.3 million. Debt Service Fund-This Fund is used to accumulate monies for payment ofprincipal and interest on general obligation bonds and other borrowings. Total revenues for 2018 were$5.0 million,an increase of$0.1 million from the prior year. Of this total revenue amount, $2.4 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 $1.0 million is from other taxes. Total expenditures for 2018 were $5.0 million, an increase of$0.1 from the prior year. During the fiscal year 2018, a new refunding bonds were issued for$5.9 million and an additional premium of$0.5 million was received.$4.2 million was paid to bond escrow agent to refund the bond.There was also an interfund transfer of$1.6 million received by the debt service fund.Ending fund balance increased by 4.0 million to$4.2 million. Prospect/Main TIF-This special revenue type TIF Fund is used to account for the resources to acquire property and construct certain improvements in the Prospect/Main Tax Incremental Financing District.Financing is being provided by incremental property taxes,general obligation bond proceeds,and investment income. The Village issued General Obligation Bonds, Series 2018A in the amount of $11.9 million, of which $7.1 million were received by the Prospect/Main TIF with a premium of$0.2 million. Total revenues for 2018 were 0.7 million. The total revenues for 2017 were negligible. The total expenses for 2018 were$11.3 million,of which$7.4 million is used for land acquisitions (See independent auditor's report.) MD&A 8 VILLAGE OF MOUNT PROSPECT,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS(Continued) and 3.2 million is used for other capital outlay items. The total expenses for prior year was 0.3 million. Ending fund balance for the TIF is 0.7 million,a decrease of 3.2 million from prior year. Police and Fire Building Construction-This capital project type fund is used to account for the resources to construct the police and fire building.Financing is provided primarily by general obligation bond proceeds.Total revenues for the year 2018 are $0.2 million. The Village issued Village issued $32.5 General Obligation Bonds and has received an additional premium of$1.0 million on issuance of the bonds.The total expenses for 2018 is$2.0 million. $0.7 million is used for the debt service and$1.3 million is used for the construction projects. The ending fund balance is $31.7 million to be used for the construction of Fire and Police headquarters. Capital Assets At the end of 2018,the Village had a combined total of$106.0 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. Table 4 Capital Assets at Year End Net of Depreciation(in millions) Governmental Business-type Total Primary Activities Activities Government 2018 2017 2018 2017 2018 2017 Land(including right-of-way) $ 13.1 $ 10.3 $ 17.6 $ 17.6 $ 30.7 $ 27.9 Construction in Progress 7.0 2.3 1.6 0.9 8.6 3.2 Buildings &Improvements 27.2 27.8 1.5 1.5 28.7 29.3 Vehicles 4.0 4.4 - - 4.0 4.4 Machinery&Equipment 1.5 1.5 1.5 1.7 3.0 3.2 Infrastructure 15.6 17.2 15.4 15.0 31.0 32.2 Total Capital Assets $ 68.4 $ 63.5 $ 37.6 $ 36.7 $ 106.0 $ 100.2 This amount represents a net increase(including additions and deletions)of$5.8 million from 2017. (This space is intentionally left blank.) (See independent auditor's report.) MD&A9 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 $ 63.5 $ 36.7 $ 100.2 Additions Depreciable 1.5 1.6 3.1 Non-Depreciable 8.0 0.9 8.9 Retirements Depreciable (0.9) - (0.9) Non-Depreciable (0.5) (0.9) (1.4) Depreciation (4.1) (0.7) (4.8) Retirement 0.9 - 0.9 Ending Balance $ 68.4 $ 37.6 $ 106.0 Table 5 above shows the change in capital assets during 2018. This year's major additions to the capital assets include the following(in millions): Governmental Activities Land acquisitions-$2.8 Vehicles for Public Safety,Public Works and Village Fleet-$0.3 Various construction projects in-progress-$5.2 Purchases of various machinery&equipment-$0.4 Infrastructure Improvements-0.8 Business-Type Activities Various construction projects in-progress-$1.6 Infrastructure Improvements-$0.9 More detailed information on capital asset activity can be found in Note 4 of the notes to the financial statements beginning on page 33. Debt Outstanding The Village of Mount Prospect had total long-term debt and loans payable of$242.9 million as of December 31,2018. Long- term debt is comprised of general obligation debt,compensated absences to employees,other post-employment benefits(OPEB), loans payable,and pension liability for IMRF,police and fire. During the year,$50.3 million of general obligation debt and notes payable were issued while pension liability for police,and fire,increased by$15.6 million.The net pension liability of IMRF decreased by$5.7 million.The compensated absences had a net decrease of$0.4 million,while the total OPEB(Other Post Employment Benefit)liability has a net decrease of 2.2 million. Decreases in long term debt include the retirement of $7.4 million in general obligation debt, 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. (See independent auditor's report.) MD&A 10 VILLAGE OF MOUNT PROSPECT,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS(Continued) More detailed information on long-term debt activity can be found in Note 6 of the notes to the financial statements beginning on page 37 Economic Factor's and Next Year's Budget The General Fund, the Village's main operating fund, ended with a solid surplus for calendar year 2018. The $3.7 million surplus increases the fund balance to 40%of the subsequent year budgeted expenditures. The Village Board has set as its benchmark a level of reserves equal to 25%of subsequent year expenditures. Total village revenues for 2018 continued to see positive increases from the prior year. Conservative approaches to estimating revenue and strong expenditure management by the various departments 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 2019 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 2018 was 2.9%. This is below the state and national unemployment rate of 4.2% and 3.9%respectively. The Village's unemployment rate decreased 80 basis points from the prior year. The 2019 Budget represents a 17.9%increase from the amended 2018 Budget and totals$169.5 million.The increases are mainly attributable to major capital projects including Police and Fire building construction. The General Fund increased $0.9 million, or 1.5% from the prior year. The Village's Operating Budget (that part which funds the Village's day-to-day operations) shows an increase of 0.96%and totals$74 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 Amit Thakkar,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 31,2018 Primary Government Governmental Business-Type Activities Activities Total ASSETS Cash and investments $ 75,705,412 $ 13,003,971 $ 88,709,383 Receivables(net of allowance, where applicable) Property taxes 18,713,005 - 18,713,005 Other taxes 8,584,994 8,584,994 Accrued interest 43,879 - 43,879 Utility customers - 1,491,569 1,491,569 Miscellaneous 1,001,491 3,360 1,004,851 Prepaid items 414,476 10,626 425,102 Inventory 326,863 272,137 599,000 Due from fiduciary 2,808 52 2,860 Due from other governments 6,514,548 1,167 6,515,715 Deposits-insurance 2,663,925 - 2,663,925 Deposits with joint venture - 976,550 976,550 Capital assets not being depreciated 20,157,054 19,133,897 39,290,951 Capital assets being depreciated(net of accumulated depreciation) 48,259,880 18,454,130 66,714,010 Total assets 182,388,335 53,347,459 235,735,794 DEFERRED OUTFLOWS OF RESOURCES Pension items-1MRF 1,609,087 376,615 1,985,702 Pension items-Police Pension 7,751,377 - 7,751,377 Pension items-Firefighters'Pension 7,454,589 7,454,589 Unamortized loss on refunding 462,542 - 462,542 Total deferred outflows of resources 17,277,595 376,615 17,654,210 Total assets and deferred outflows of resources 199,665,930 53,724,074 253,390,004 LIABILITIES Accounts payable 3,000,018 1,000,080 4,000,098 Accrued payroll 977,242 69,565 1,046,807 Accrued interest payable 420,846 28,591 449,437 Retainage payable 85,949 206,662 292,611 Other payables 202,233 1,863 204,096 Unearned revenue 590,319 35,815 626,134 Due to other governments 16,602 - 16,602 Noncurrent liabilities Due within one year 5,544,889 288,701 5,833,590 Due in more than one year 226,900,263 10,156,295 237,056,558 Total liabilities 237,738,361 11,787,572 249,525,933 DEFERRED INFLOWS OF RESOURCES Deferred revenue-property taxes 18,713,005 - 18,713,005 OPEB items 2,469,659 70,520 2,540,179 Pension items-IMRF 4,198,143 982,620 5,180,763 Pension items-Police Pension 3,874,360 - 3,874,360 Pension items-Firefighters'Pension 3,194,847 - 3,194,847 Total deferred inflows of resources 32,450,014 1.053,140 33,503,154 Total liabilities and deferred inflows of resources 270,188,375 12,840,712 283,029,087 (This statement is continued on the following page.) - 6 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF NET POSITION(Continued) December 31,2018 Primary Government Governmental Business-Type Activities Activities Total NET POSITION Net investment in capital assets $ 30,192,091 $ 32,472,358 $ 62,664,449 Restricted for Highways and streets 2,575,480 - 2,575,480 Public safety-police 298,936 298,936 Public safety-fire 398,223 398,223 Debt service 2,546,115 2,546,115 Refuse disposal 1,246,659 - 1,246,659 Unrestricted(deficit) (107,779,949) 8,411,004 (99,368,945) TOTAL NET POSITION(DEFICIT) $ (70,522,445) $ 40,883,362 $ (29,639,083) See accompanying notes to financial statements. - 7 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31,2018 Program Revenues Operating Capital Charges Grants and Grants and Expenses for Services Contributions Contributions FUNCTIONS/PROGRAMS PRIMARY GOVERNMENT Governmental Activities General government $ 11,942,073 $ 4,362,732 $ 59,713 $ - Public safety 42,702,313 1,678,492 60,620 - Highways and streets 15,587,445 387,676 1,448,810 488,470 Health 4,811,335 4,359,038 - - Welfare 1,636,190 39,645 390,566 - Culture and recreation 573,403 41,932 4,491 - Interest 3,396,566 176,600 42,977 - Total goverinnental activities 80,649,325 11,046,115 2,007,177 488,470 Business-Type Activities Water and sewer 15,419,616 14,224,032 - - Parking 311,736 342,560 - - Total business-type activities 15,731,352 14,566,592 - - TOTAL PRIMARY GOVERNMENT $ 96,380,677 $ 25,612,707 $ 2,007,177 $ 488,470 - 8 - Net(Expense)Revenue and Change in Net Position Primary Government Governmental Business-Type Activities Activities Total $ (7,519,628) $ - $ (7,519,628) (40,963,201) - (40,963,201) (13,262,489) - (13,262,489) (452,297) - (452,297) (1,205,979) - (1,205,979) (526,980) - (526,980) (3,176,989) - (3,176,989) (67,107,563) - (67,107,563) - (1,195,584) (1,195,584) - 30,824 30,824 - (1,164,760) (1,164,760) (67,107,563) (1,164,760) (68,272,323) General Revenues Taxes Property 19,228,572 - 19,228,572 Utility 3,476,968 - 3,476,968 Business district 315,425 - 315,425 Home rule sales 5,455,278 - 5,455,278 Food and beverage 1,259,809 - 1,259,809 Real estate transfer 1,426,037 - 1,426,037 Municipal motor fuel 701,716 - 701,716 Hotel/motel 478,585 - 478,585 Charitable games 8,627 - 8,627 Other 206,759 - 206,759 Intergovernmental-unrestricted State sales and use tax 24,370,264 - 24,370,264 Income tax 5,187,361 - 5,187,361 Replacement tax 370,542 - 370,542 Investment income 675,703 196,817 872,520 Miscellaneous 1,049,155 83,369 1,132,524 Total 64,210,801 280,186 64,490,987 CHANGE IN NET POSITION (2,896,762) (884,574) (3,781,336) NET POSITION(DEFICIT),JANUARY 1 (56,874,737) 42,032,662 (14,842,075) Change in accounting principle (10,750,946) (264,726) (11,015,672) NET POSITION(DEFICIT),JANUARY 1,RESTATED (67,625,683) 41,767,936 (25,857,747) NET POSITION(DEFICIT),DECEMBER 31 $ (70,522,445) $ 40,883,362 $ (29,639,083) See accompanying notes to financial statements. - 9 - VILLAGE OF MOUNT PROSPECT,ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31,2018 Police and Fire Refuse Prospect/Main Building Debt General Disposal TIF Construction Service Nonmajor Total ASSETS Cash and investments $ 16,672,691 $ 949,936 $ 712,311 $ 31,708,378 $ 4,100,470 $ 9,792,239 $ 63,936,025 Receivables(net,where applicable, of allowances for uncollectibles) Property taxes 16,290,898 - - - 2,422,107 - 18,713,005 Other taxes 7,994,192 - 49,586 541,216 8,584,994 Accrued interest 1,443 - 38,074 - - 39,517 Other 370,038 554,516 - 65,590 990,144 Due from other funds 22,254 - - - - 22,254 Due from other governments 49,471 748 5,960,450 491,732 6,502,401 Inventories 2,604 - - - - 2,604 Prepaid items 217,461 74,095 600 - 8 292,164 TOTAL ASSETS $ 41,621,052 $ 1,578,547 $ 713,659 $ 31,746,452 $ 12,532,613 $ 10,890,785 $ 99,083,108 (This statement is continued on the following page.) - 10 - VILLAGE OF MOUNT PROSPECT,ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS(Continued) December 31,2018 Police and Fire Refuse Prospect/Main Building Debt General Disposal TIF Construction Service Nonmajor Total LIABILITIES,DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts payable $ 957,709 $ 249,658 $ 14,729 $ 26,272 $ $ 1,633,132 $ 2,881,500 Accrued payroll 938,549 8,135 - - - 946,684 Retainage payable 930 - 85,019 85,949 Other payables 184,921 - 184,921 Compensated absences 30,682 - 30,682 Unearned revenue 152,283 438,036 590,319 Due to other governments 7,513 9,089 16,602 Due to other funds - - - - 19,446 19,446 Total liabilities 2,272,587 257,793 14,729 26,272 2,184,722 4,756,103 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes 16,290,898 - - - 2,422,107 18,713,005 Unavailable revenue-other - 5,960,000 5,960,000 Total deferred inflows ofresources 16,290,898 8,382,107 24,673,005 Total liabilities and deferred inflows of resources 18,563,485 257,793 14,729 26,272 8,382,107 2,184,722 29,429,108 FUND BALANCES Nouspendable Inventory 2,604 - - - - - 2,604 Prepaid items 217,461 74,095 600 8 292,164 Restricted Highways and streets - - 698,330 2,431,135 3,129,465 Publicsatety-police - 298,936 298,936 Public safety-fire 398,223 398,223 Capital projects 31,720,180 - - 31,720,180 Debt service - 2,546,115 2,546,115 Refuse disposal 1,246,659 - t,246,659 Unrestricted Assigned Capital projects - - 5,577,761 5,577,761 Debt service 1,604,391 - 1,604,391 Unassigned 22,837,502 - - - 22,837,502 Total fiord balances 23,057,567 1,320,754 698,930 31,720,180 4,150,506 8,706,063 69,654,000 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES,AND FUND BALANCES $ 41,621,052 $ 1,578,547 $ 713,659 $ 31,746,452 $ 12,532,613 $ 10,890,785 $ 99,083,108 See accompanying notes to financial statements. - 11 - VILLAGE OF MOUNT PROSPECT,ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION December 31,2018 FUND BALANCES OF GOVERNMENTAL FUNDS $ 69,654,000 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 68,416,934 Less internal service funds included below (7,330,085) Differences between expected and actual experiences,assumption changes,net differences between projected and actual earnings,and contributions subsequent to the measurement date for the Illinois Municipal Retirement Fund are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position Deferred outflows of resources 1,609,087 Deferred inflows of resources (4,198,143) Differences between expected and actual experiences,assumption changes,and net differences between projected and actual earnings for the Police Pension Plan are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position Deferred outflows of resources 7,751,377 Deferred inflows of resources (3,874,360) Differences between expected and actual experiences,assumption changes,and net differences between projected and actual earnings for the Firefighters'Pension Plan are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position Deferred outflows of resources 7,454,589 Deferred inflows of resources (3,194,847) Differences between expected and actual experiences,assumption changes,and net differences between projected and actual earnings for the Postemployment Benefit Plan are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position Deferred inflows of resources (2,420,426) Long-term intergovernmental receivables are not available to pay for current period expenditures and,therefore,are deferred inflows of resources in the governmental funds 5,960,000 Interest payable is not due and payable in the current period and,therefore,not reported in the governmental funds (420,846) Long-temr liabilities are not due and payable in the current period and,therefore,are not reported in the governmental funds General obligation bonds payable (82,885,000) Loan contracts payable (57,500) Installment notes payable (590,000) Business district limited tax note payable (33,192,363) Compensated absences payable (3,426,446) Net pension liability-Illinois Municipal Retirement Fund (555,045) Net pension liability-Police Pension Plan (53,267,003) Net pension liability-Firefighters Pension Plan (44,305,742) Unamortized bond premiums (2,852,998) Unamortized loss on refunding 462,542 Total OPEB liability (10,375,782) The net position of the internal service funds are included in the governmental activities in the statement of net position 21,115,612 NET POSITION(DEFICIT)OF GOVERNMENTAL ACTIVITIES $ (70,522,445) See accompanying notes to financial statements. - 12 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS For the Year Ended December 31,2018 Police and Fire Refuse Prospect/Main Building Debt General Disposal TIF Construction Service Nonmajor Total REVENUES Property taxes $ 16,368,958 $ $ 469,613 $ $ 2,390,000 $ $ 19,228,571 Other taxes 7,421,670 - 1,062,104 5,368,202 13,851,976 Licenses,permits,and fees 2,484,451 - 1,600,690 4,085,141 Intergovernmental 29,421,850 1,619,577 1,770,427 32,811,854 Charges for services 1,475,149 4,359,038 - - 5,834,187 Fines and forfeits 403,842 - - - - 403,842 Investment income 318,490 10,139 78,498 140,508 24,243 103,822 675,700 Other reimbursements - - - 20,552 - 91,877 112,429 Miscellaneous 1.072,315 37,928 169,343 - 450 380,357 1,660,393 Total revenues 58,966,725 4,407,105 717,454 161,060 5,096,374 9,315,375 78,664,093 EXPENDITURES Current General government 7,743,642 - 250,725 - - 1,571,930 9,566,297 Public safety 35,005,442 - 1,177,398 104,687 36,287,527 Highways and streets 7,915,559 - - 1,742,900 9,658,459 Health 306,314 4,528,996 - 4,835,310 Welfare 1,410,612 - 387,846 1,798,458 Culture and recreation 572,169 - - - 572,169 Capital outlay - 10,618,596 65,100 4,562,088 15,245,784 Debt service Principal retirement - - 3,671,871 - 3,671,871 Interest and fiscal charges - 413,109 726,065 1,345,711 - 2,484,885 Total expenditures 52,953,738 4,528,996 11,282,430 1,968,563 5,017,582 8,369,451 84,120,760 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 6,012,987 (121,891) (10,564,976) (1,807,503) 78,792 945,924 (5,456,667) OTHER FINANCING SOURCES(USES) Issuance of debt - 7,060,000 32,499,177 5,940,823 - 45,500,000 Premium on issuance of debt 258,879 1,028,506 496,121 1,783,506 Payment to escrow agent - - (4,153,816) (4,153,816) Transfers in 1,604,391 750,000 2,354,391 Transfers(out) (2,354,391) - - (2,354,391) Total other financing sources(uses) (2,354,391) 7,318,879 33,527,683 3,887,519 750,000 43,129,690 NET CHANGE 1N FUND BALANCES 3,658,596 (121,891) (3,246,097) 31,720,180 3,966,311 1,695,924 37,673,023 FUND BALANCES,JANUARY 1 19,398,971 1,442,645 3,945,027 - 184,195 7,010,139 31,980,977 FUND BALANCES,DECEMBER 31 $23,057,567 $ 1,320,754 $ 698,930 $ 31,720,180 $ 4,150,506 $ 8,706,063 $69,654,000 See accompanying notes to financial statements. - 13 - 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 31,2018 NET CHANGE IN FUND BALANCES- TOTAL GOVERNMENTAL FUNDS $ 37,673,023 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 7,170,571 Contributions of capital assets are reported as capital contributions in the statement of activities 488,470 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 (4,096,532) Less internal service funds included below 820,224 The issuance of long-term debt and related costs are shown on the fund financial statements as other financing sources(uses)and current expenditures but are recorded as long-term liabilities and deferred outflows and inflows of resources on the government-wide statements Issuance of bonds (45,500,000) Premium on issuance of bonds (1,783,506) 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 General obligation bonds payable 7,115,000 Loan contracts payable 112,771 Installment notes payable 515,000 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 Accreted interest on business district limited tax note payable (667,090) Amortization of premium 215,351 Amortization of gains and losses on refundings (61,853) Increase in compensated absences 165,512 Change in accrued interest (315,173) The change in the Illinois Municipal Retirement Fund net pension liability and deferred outflows and inflows of resources is not a source or use of a financial resource (412,746) The change in the Police Pension Plan net pension liability and deferred outflow/inflows of resources is not a source or use of a financial resource (2,051,128) The change in the Firefighters'Pension Plan net pension liability and deferred outflow/inflows of resources is not a source or use of a financial resource (2,198,018) The change in the total OPEB liability and deferred outflow/inflows of resources is not a source or use of a financial resource (268,551) Revenues in the statement of activities that are not available in governmental funds are not reported as a revenue in governmental funds until received (1,400,000) The change in net position of the internal service funds is reported with governmental activities 1,581,913 CHANGE IN NET POSITION(DEFICIT)OF GOVERNMENTAL ACTIVITIES $ (2,896,762) See accompanying notes to financial statements. - 14 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31,2018 Governmental Business-Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service CURRENT ASSETS Cash and investments $ 12,425,604 $ 578,367 $ 13,003,971 $ 11,769,387 Receivables Accounts-billed 667,896 - 667,896 - Accounts-unbilled 823,673 - 823,673 - Accrued interest - - - 4,362 Other 3,360 - 3,360 11,347 Inventories 272,137 - 272,137 324,259 Prepaid items 10,626 - 10,626 122,312 Due from other funds 52 - 52 - Due from other governments 1,167 - 1,167 12,147 Total current assets 14,204,515 578,367 14,782,882 12,243,814 NONCURRENT ASSETS Deposits-insurance - - - 2,663,925 Deposit with joint venture 976,550 - 976,550 - Subtotal noncurrent assets 976,550 - 976,550 2,663,925 Capital assets Capital assets not being depreciated 18,901,543 232,354 19,133,897 2,109,186 Capital assets being depreciated,cost 39,624,959 364,800 39,989,759 13,586,841 Accumulated depreciation (21,170,829) (364,800) (21,535,629) (8,365,942) Net capital assets 37,355,673 232,354 37,588,027 7,330,085 Total noncurrent assets 38,332,223 232,354 38,564,577 9,994,010 Total assets 52,536,738 810,721 53,347,459 22,237,824 DEFERRED OUTFLOWS OF RESOURCES Pension items-1MRF 376,615 - 376,615 - Total assets and deferred outflows of resources 52,913,353 810,721 53,724,074 22,237,824 CURRENT LIABILITIES Accounts payable 977,237 22,843 1,000,080 118,518 Accrued payroll 67,315 2,250 69,565 30,558 Retainage payable 206,662 - 206,662 - Claims payable - - - 556,605 Unearned revenue - 35,815 35,815 - Accrued interest payable 28,591 - 28,591 - Other payables 1,863 - 1,863 17,312 Bonds payable,current 240,000 - 240,000 - Compensated absences payable 36,042 927 36,969 20,004 Total OPEB liability 11,127 605 11,732 8,190 Total current liabilities 1,568,837 62,440 1,631,277 751,187 (This statement is continued on the following page.) - 15 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF NET POSITION(Continued) PROPRIETARY FUNDS December 31,2018 Governmental Business-Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service LONG-TERM LIABILITIES Compensated absences payable $ 144,169 $ 3,707 $ 147,876 $ 80,018 Claims payable - - - 38,914 Bonds payable,noncurrent 9,587,936 - 9,587,936 - Total OPEB liability 275,584 14,984 290,568 202,860 Net pension liability-IMRF 129,915 - 129,915 - Total long-term liabilities 10,137,604 18,691 10,156,295 321,792 Total liabilities 11,706,441 81,131 11,787,572 1,072,979 DEFERRED INFLOWS OF RESOURCES OPEB items 66,883 3,637 70,520 49,233 Pension items-IMRF 982,620 - 982,620 - Total deferred inflows of resources 1,049,503 3,637 1,053,140 49,233 Total liabilities and deferred inflows of resources 12,755,944 84,768 12,840,712 1,122,212 NET POSITION Investment in capital assets 32,240,004 232,354 32,472,358 7,330,085 Unrestricted 7,917,405 493,599 8,411,004 13,785,527 TOTAL NET POSITION $ 40,157,409 $ 725,953 $ 40,883,362 $ 21,115,612 See accompanying notes to financial statements. - 16 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF REVENUES,EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31,2018 Governmental Business-Type Activities Activities Rater Nonmajor Internal and Sewer Enterprise Total Service OPERATING REVENUES Charges for services $ 14,224,032 $ 342,560 $ 14,566,592 $ 10,962,924 Contributions - - - 1,708,941 Miscellaneous - - - 19,337 Total operating revenues 14,224,032 342,560 14,566,592 12,691,202 OPERATING EXPENSES Administration and maintenance 14,348,479 311,736 14,660,215 2,804,309 Insurance and claims - - - 7,740,158 Depreciation 696,008 - 696,008 820,224 Total operating expenses 15,044,487 311,736 15,356,223 11,364,691 OPERATING INCOME(LOSS) (820,455) 30,824 (789,631) 1,326,511 NON-OPERATING REVENUES(EXPENSES) Property taxes (5,037) - (5,037) - Investment income 191,465 5,352 196,817 147,051 Interest and fiscal charges (370,031) - (370,031) - Other income 83,369 - 83,369 - Gain(loss)on the sale of capital assets (61) - (61) 108,351 Total non-operating revenues(expenses) (100,295) 5,352 (94,943) 255,402 CHANGE 1N NET POSITION (920,750) 36,176 (884,574) 1,581,913 NET POSITION,JANUARY 1 41,327,962 704,700 42,032,662 19,736,825 Change in accounting principle (249,803) (14,923) (264,726) (203,126) NET POSITION,JANUARY 1,RESTATED 41,078,159 689,777 41,767,936 19,533,699 NET POSITION,DECEMBER 31 $ 40,157,409 $ 725,953 $ 40,883,362 $ 21,115,612 See accompanying notes to financial statements. - 17 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31,2018 Governmental Business-Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 14,152,804 $ 339,855 $ 14,492,659 $ 3,003,942 Receipts from interfund services - - - 9,657,136 Receipts from miscellaneous revenues 85,585 4,245 89,830 20,247 Payments to suppliers (10,612,390) (206,436) (10,818,826) (10,417,535) Payments to employees (3,328,725) (96,272) (3,424,997) (1,562,051) Net cash from operating activities 297,274 41,392 338,666 701,739 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes 1,510,427 - 1,510,427 - Net cash from noncapital financing activities 1,510,427 - 1,510,427 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Issuance of bonds 4,393,940 - 4,393,940 - Proceeds from sale of capital assets - - - 108,351 Acquisition of capital assets (1,577,376) - (1,577,376) (1,401,969) Net cash from capital and related financing activities 2,816,564 - 2,816,564 (1,293,618) CASH FLOWS FROM INVESTING ACTIVITIES Investment income 224,065 5,352 229,417 150,849 Net cash from investing activities 224,065 5,352 229,417 150,849 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 4,848,330 46,744 4,895,074 (441,030) CASH AND CASH EQUIVALENTS, JANUARY 1 7,577,274 531,623 8,108,897 12,210,417 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 12,425,604 $ 578,367 $ 13,003,971 $ 11,769,387 (This statement is continued on the following page.) - 18 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF CASH FLOWS(Continued) PROPRIETARY FUNDS For the Year Ended December 31,2018 Governmental Business-Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ (820,455) $ 30,824 $ (789,631) $ 1,326,511 Adjustments to reconcile operating income(loss)to net cash from operating activities Depreciation 696,008 - 696,008 820,224 Other income 83,369 - 83,369 - Changes in assets and liabilities Receivables (69,012) - (69,012) 11,161 Inventories 86,782 - 86,782 (16,026) Prepaid items 5,778 - 5,778 43,385 Deposits (23,108) - (23,108) (473,851) Accounts payable and retainage payable 297,337 10,077 307,414 (8,502) Accrued payroll and compensated absences (63,461) (1,453) (64,914) (62,475) OPEB items 7,421 404 7,825 5,463 Pension items-IMRF 96,615 - 96,615 - Unearned revenues - 1,540 1,540 - Claims payable - - - (944,151) NET CASH FROM OPERATING ACTIVITIES $ 297,274 $ 41,392 $ 338,666 $ 701,739 See accompanying notes to financial statements. - 19 - VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2018 Pension Trust Agency Funds Funds ASSETS Cash and cash equivalents $ 2,351,076 $ 1,115,737 Investments State and local obligations 2,995,990 - U.S. Government and U. S. agency obligations 25,135,844 - Corporate bonds and obligations 18,541,893 - Real estate 6,085,331 - Mutual funds 73,461,186 - Accrued interest receivable 274,339 - Prepaids 2,832 - Deposits - 8,611 Total assets 128,848,491 $ 1,124,348 LIABILITIES Accounts payable 73,045 45 Deposits payable - 1,124,251 Due to other funds 2,808 52 Total liabilities 75,853 $ 1,124,348 NET POSITION RESTRICTED FOR PENSIONS $ 128,772,638 See accompanying notes to financial statements. - 20 - VILLAGE OF MOUNT PROSPECT,ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2018 ADDITIONS Contributions Employer $ 6,941,375 Plan members 1,526,873 Other 20 Total contributions 8,468,268 Investment income Interest earned 1,459,804 Net change in fair value (6,845,795) Less investment expenses (225,179) Net investment income (5,611,170) Total additions 2,857,098 DEDUCTIONS Administration 101,256 Benefits and refunds 11,317,606 Total deductions 11,418,862 NET INCREASE (8,561,764) NET POSITION RESTRICTED FOR PENSIONS January 1 137,334,402 December 31 $ 128,772,638 See accompanying notes to financial statements. - 21 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2018 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 Statements 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. - 22 - 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 Firefighters' Pension 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. - 23 - 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. C. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the 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. - 24 - 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 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 Prospect/Main TIF Fund is used to account for the resources to acquire property and construct certain improvements in the Prospect/Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. The Debt Service Fund is used to account for the servicing of general long-term debt not being financed by proprietary funds. The Police and Fire Building Construction Fund is used to account for the resources to construct the police and fire building. Financing is provided primarily by general obligation bond proceeds. 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 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 Funds. The Vehicle Maintenance Fund accounts for the maintenance and repair of all village vehicles. Financing is being provided by charges to various village funds. - 25 - 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 Pension Trust Funds account for the Police Pension Fund and Firefighters' Pension Fund. The agency funds account for the Escrow Deposits and Flexcomp Escrow. 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 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 liabilities or 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. - 26 - 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 unavailable/deferred and unearned revenue on its financial statements. Unavailable/deferred revenues arise when a potential revenue does not meet both the measurable and available or earned criteria for recognition in the current period. Unearned revenues arise when resources are received by the government before it has a legal claim to them such as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both the revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability or deferred inflow of resources for unearned and unavailable/deferred revenue is 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. £ Investments Investments with a maturity of less than one year when purchased, non-negotiable certificates of deposit, and other nonparticipating investments 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 the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. - 27 - 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. i. Prepaid Items Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items. Prepaid items are recorded as expenditures/expenses when consumed rather than when purchased. j. Capital Assets Capital assets, which include property,plant, equipment, and infrastructure assets (e.g., roads, bridges, stormsewers, 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. Donated capital assets are recorded at acquisition value at the date of donation. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. - 28 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j. Capital Assets (Continued) 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 recorded at acquisition value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and improvements 20-50 Machinery and equipment 2-20 Vehicles 2-20 Infrastructure 15-50 k. 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. 1. 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. - 29 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) in. 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. 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. n. Property Taxes Property taxes for 2018 attached as an enforceable lien on January 1, 2018 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, 2019 and August 1, 2019 and are payable in two installments, on or about March 1, 2019 and September 1, 2019. 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 2018 levy is intended to fund the 2019 fiscal year, the levy has been recorded as a receivable and deferred inflow of resources. o. 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 net 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. - 30 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) p. 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 that are 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 of Trustees, which is considered the Village's highest level of decision-making authority. Formal actions include ordinances approved by the Board of Trustees. 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 of Trustees. 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 annual budgeted expenditures, the special revenue funds (except the CDBG Fund) should maintain a fund balance level between 10% and 25% of the subsequent fiscal year's 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 position is legally restricted by outside parties for a specific purpose. Net investment in capital assets represents the book value of capital assets less any outstanding long-term debt issued to acquire or construct the capital assets. - 31 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) q. Use of Estimates The preparation of financial statements in conformity with GAAP 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 and pension funds categorize fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. Refer to Note 12 for relevant information related to the Police Pension Plan and Firefighters' Pension Plan. 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 (ILCS). 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, The Illinois Funds, 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. - 32 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) Village Deposits and Investments (Continued) 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, safety of principal, liquidity, and rate of return. 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 The following table presents the investments and maturities of the Village's debt securities as of December 31, 2018: Investment Maturities(in Years) Less Greater Investment Type Fair Value than 1 1-5 6-10 than 10 U.S. Treasury $ 9,207,002 $ 7,136,332 $ 2,070,670 - U.S. agencies 4,949,280 2,477,918 2,471,362 - - TOTAL $ 14,156,282 $ 9,614,250 $ 4,542,032 $ 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. - 33 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) 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. The U.S. agency securities, The Illinois Funds, and IMET are rated AAA. The Illinois Public Treasurers' Investment Pool, known as The Illinois Funds, operates as a qualified external investment pool in accordance with the criteria established in GASB Statement No. 79, Certain External Investment Pools and Pool Participants, and thus, reports all investments at amortized cost rather than market value. The investment in The Illinois Funds by participants is also reported at amortized cost. The Illinois Funds does not have any limitations or restrictions on participant withdrawals. The Illinois Treasurer's Office issues a separate financial report for The Illinois Funds which may be obtained by contacting the Administrative Office at Illinois Business Center, 400 West Monroe Street, Suite 401, Springfield, Illinois 62704. 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. 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. The 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 too high a percentage of their investments invested in one type of investment. The Village's investment policy requires diversification of investment to avoid unreasonable risk. The Village's investment policy states the Village's portfolio shall be diversified in order to limit the investment holdings of a specific issuer or business sector to avoid over concentration in any one institution or area excluding investments in U.S. Treasury securities and authorized investment pools. - 34 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. RECEIVABLES The following receivables are included in due from other governments on the statement of net position: GOVERNMENTAL ACTIVITIES Court fines $ 27,948 Mount Prospect Public Library 5,960,450 Grants 490,670 Miscellaneous 35,480 TOTAL $ 6,514,548 The Series 2006 General Obligation Library Refunding Bonds, the Series 2011A General Obligation Refunding Bonds, and the Series 2016 General Obligation Refunding Bonds were issued to provide financing to the Mount Prospect Public Library (the Library). The Library is repaying these bonds issued by the Village. The Series 2006 General Obligation Library Refunding Bonds were refunded by the Series 2016 General Obligation Refunding Bonds during fiscal year 2016. The 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. The annual debt service requirements are as follows: Year Ending December 31, Principal Interest 2019 $ 1,425,000 $ 148,150 2020 1,470,000 105,400 2021 1,515,000 61,300 2022 1,550,000 31,000 TOTAL $ 5,960,000 $ 345,850 - 35 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS Capital asset activity for the Village for the year ended December 31, 2018 was as follows: Balances Balances January 1 Additions Retirements December 31 GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land(including right-of-ways) $ 10,291,446 $ 2,837,682 $ - $ 13,129,128 Construction in progress 2,293,847 5,165,854 431,775 7,027,926 Total capital assets not being depreciated 12,585,293 8,003,536 431,775 20,157,054 Capital assets being depreciated Buildings 38,778,498 - - 38,778,498 Improvements other than buildings 436,273 - - 436,273 Vehicles 11,306,601 346,591 701,316 10,951,876 Machinery and equipment 3,774,082 398,469 207,293 3,965,258 Infrastructure 86,393,755 771,622 10,465 87,154,912 Total capital assets being depreciated 140,689,209 1,516,682 919,074 141,286,817 Less accumulated depreciation for Buildings 11,064,772 770,238 - 11,835,010 Improvements other than buildings 380,935 12,214 - 393,149 Vehicles 6,920,709 602,543 676,316 6,846,936 Machinery and equipment 2,317,651 303,969 205,293 2,416,327 Infrastructure 69,137,979 2,407,568 10,032 71,535,515 Total accumulated depreciation 89,822,046 4,096,532 891,641 93,026,937 Total capital assets being depreciated,net 50,867,163 (2,579,850) 27,433 48,259,880 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS,NET $ 63,452,456 $ 5,423,686 $ 459,208 $ 68,416,934 - 36 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS (Continued) Balances Balances January 1 Additions Retirements December 31 BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $ 17,551,172 $ - $ - $ 17,551,172 Construction in progress 946,477 1,582,725 946,477 1,582,725 Total capital assets not being depreciated 18,497,649 1,582,725 946,477 19,133,897 Capital assets being depreciated Buildings and improvements 4,499,808 - - 4,499,808 Machinery and equipment 5,017,968 - - 5,017,968 Infrastructure 29,537,909 941,077 7,003 30,471,983 Total capital assets being depreciated 39,055,685 941,077 7,003 39,989,759 Less accumulated depreciation for Buildings and improvements 2,932,922 66,341 - 2,999,263 Machinery and equipment 3,343,630 142,728 - 3,486,358 Infrastructure 14,570,011 486,939 6,942 15,050,008 Total accumulated depreciation 20,846,563 696,008 6,942 21,535,629 Total capital assets being depreciated,net 18,209,122 245,069 61 18,454,130 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS,NET $ 36,706,771 $ 1,827,794 $ 946,538 $ 37,588,027 Depreciation expense was charged to functions/programs of the governmental activities as follows: GOVERNMENTAL ACTIVITIES General government $ 375,421 Public safety 394,171 Highways and streets 2,497,127 Health and welfare 2,349 Culture and recreation 7,240 Internal service funds 820,224 TOTAL $ 4,096,532 - 37 - 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 were provided for through a limited self-insurance program through December 31, 2018. Effective January 1, 2018, The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of Illinois municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperation Statute to pool its risk management needs. IRMA administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers' compensation claim administration and litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. Each member appoints one delegate along with an alternate delegate, to represent the member on the Board of Directors. The Village does not exercise any control over the activities of IRMA beyond its representation on the Board of Directors. Initial contributions are determined each year based on the individual member's eligible revenue as defined in the by-laws of IRMA and experience modification factors based on past member loss experience. Each member assumes the first $10,000 (higher optional deductibles available) of each occurrence, and IRMA has self-insurance retentions at various amounts above that level. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. Supplemental contributions may be required to fund these deficits. The Village's payments to IRMA are displayed on the financial statements as expenditures/expenses in the appropriate funds. The coverages provided by IRMA arc generally consistent with the coverages in the prior year. The Village has chosen an optional higher deductible of $100,000. A related reserve deposit of$446,245 is being held at IRMA at December 31, 2018. The Village's 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. The total claims liability remaining as of December 31, 2018 was $595,519. - 38 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT (Continued) A reconciliation of claims liability for the current year and that of the preceding year follows: Workers' General Auto Compensation Liability Total UNPAID CLAIMS, DECEMBER 31, 2016 $ 59,012 $ 1,071,019 $ 92,489 $ 1,222,520 Claims incurred-2017 60,817 571,900 327,119 959,836 Claims payments -2017 104,131 187,990 350,565 642,686 UNPAID CLAIMS, DECEMBER 31, 2017 15,698 1,454,929 69,043 1,539,670 Claims incurred-2018 - 191,886 59,573 251,459 Claims payments -2018 15,657 1,160,872 19,081 1,195,610 UNPAID CLAIMS, DECEMBER 31, 2018 $ 41 $ 485,943 $ 109,535 $ 595,519 a. High-Level Excess Liability Pool 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 ($13,000,000 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. 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. - 39 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT (Continued) a. High-Level Excess Liability Pool (Continued) 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. The Village paid$43,286 to HELP in 2018. The Village discontinued its participation in HELP effective April 30, 2018. b. Intergovernmental Personnel Benefit Cooperative 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. 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 $75,000 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. - 40 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 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 fiends 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 Library only. In addition, general obligation bonds have been issued to refund general obligation bonds. On May 1, 2018, the Village issued General Obligation Bonds, Series 2018A in the amount of $11,950,000. The proceeds were split into $7,060,000 used to fund activity in the Prospect/Main TIF Fund and $4,890,000 to be used in the Water and Sewer Fund. On October 16, 2018, the Village issued $38,440,000 General Obligation Bonds, Series 2018B in part to refund $600,000 of the Series 2009 General Obligation Bonds, $1,070,000 of the Series 2009B General Obligation Bonds, and$2,400,900 of the 2009C General Obligation Bonds. Through the refunding, the Village recognized a cash flow loss of$116,056 and an economic gain of$35,844. 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. - 41 - 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, 2018: Current Debt Balances Balances Portion at Retired by January 1 Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES $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 $ 600,000 $ - $ 600,000 $ - $ - $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 1,400,000 - 1,400,000 - - $2,650,000 Taxable General Obligation Bonds,Series 20090,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 2,455,000 - 2,455,000 - - $5,160,000 General Obligation Bonds, Series 2011 B,due in annual installments from$40,000 to$775,000, Debt plus interest at 2.52%through Service 2,265,000 - 735,000 1,530,000 755,000 December 1,2020. $2,975,000 General Obligation Bonds, Series 20120,due in annual installments from$610,000 to $865,000,plus interest at 3.10% Debt through December 1,2022. Service 1,745,000 - - 1,745,000 - $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 Debt 1,2033. Service 9,800,000 - - 9,800,000 - $6,290,000 General Obligation Bonds, Series 2014,due in annual installments of$290,000 to$1,265,000,plus interest Debt at 3%through December 1,2023. Service 5,080,000 - 405,000 4,675,000 560,000 - 42 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long-Term Liabilities (Continued) Current Debt Balances Balances Portion at Retired by January 1 Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES (Continued) $8,735,000 General Obligation Bonds,Series 2016,due in annual installments of$1,375,000 to $1,550,000,plus interest at 2%to 3% Debt through December 1,2022. Service $ 7,360,000 $ - $ 1,400,000 $ 5,960,000 $ 1,425,000 $9,100,000 General Obligation Bonds,Series 2016A,due in annual installments of$120,000 to $1,905,000,plus interest at 3% Debt through December 1,2028. Service 8,980,000 - 120,000 8,860,000 - $4,815,000 General Obligation Bonds,Series 2017,due in annual installments of$140,000 to$460,000, plus interest at 2.50%to 4.00% Debt through December 1,2037. Service 4,815,000 - - 4,815,000 - $7,060,000 General Obligation Bonds,Series 2018A,due in annual installments of$180,000 to$700,000, plus interest at 3.25%to 5.00% Debt through December 1,2037. Service - 7,060,000 - 7,060,000 - $38,440,000 General Obligation Bonds,Series 2018B,due in annual installments of$155,000 to $3,110,000,plus interest at 3.625%to Debt 5.00%through December 1,2042. Service - 38,440,000 - 38,440,000 400,000 Total bonds 44,500,000 45,500,000 7,115,000 82,885,000 3,140,000 $1,760,422 IEPA Flood Loan Contract Payable of 1999(L17-1087), due in semiannual installments of $57,498 to$112,771,plus interest at Debt 2.625%through June 3,2019. Service 170,271 - 112,771 57,500 57,500 Total]EPA flood loan installment notes payable 170,271 - 112,771 57,500 57,500 - 43 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long-Term Liabilities (Continued) Current Debt Balances Balances Portion at Retired by January 1 Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES (Continued) $2,500,000 installment note payable of 2012,due in annual installments of $25,000 to$590,000,plus interest at Debt 0.91%through December 1,2019. Service $ 1,105,000 $ - $ 515,000 $ 590,000 $ 590,000 Total installment notes payable 1,105,000 - 515,000 590,000 590,000 $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 32,525,273 667,090 - 33,192,363 - Total Business District limited tax note payable 32,525,273 667,090 - 33,192,363 - TOTAL GOVERNMENTAL ACTIVITIES $ 78,300,544 $ 46,167,090 $ 7,742,771 $ 116,724,863 $ 3,787,500 BUSINESS-TYPE ACTIVITIES $4,925,000 General Obligation Bonds,Series 2017,due in annual installments of$125,000 to$405,000, plus interest at 2.50%to 4.00% through December 1,2037. Water $ 4,925,000 $ - $ 125,000 $ 4,800,000 $ 125,000 $4,890,000 General Obligation Bonds,Series 2018,due in annual installments of$115,000 to$410,000, plus interest at 3%to 5%through December 1,2037. Water - 4,890,000 180,000 4,710,000 115,000 TOTAL BUSINESS-TYPE ACTIVITIES $ 4,925,000 $ 4,890,000 $ 305,000 $ 9,510,000 $ 240,000 - 44 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long-Term Liabilities (Continued) The following is a summary of changes in long-term liabilities during 2018: Balances Current Debt January 1, Balances Portion at Retired by Restated Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES Compensated absences General $ 3,771,826 $ 193,521 $ 408,197 $ 3,557,150 $ 789,936 Internal Claimsandjudgrments Service 1,539,670 251,459 1,195,610 595,519 556,605 Total OPEB liability General 12,782,477 - 2,195,645 10,586,832 410,848 General obligation bonds Debt Service 44,500,000 45,500,000 7,115,000 82,885,000 3,140,000 Unamortizedbond premium 1,284,843 1,783,506 215,351 2,852,998 - Loan contracts payable Debt Service 170,271 - 112,771 57,500 57,500 Installment notes payable Debt Service 1,105,000 - 515,000 590,000 590,000 Net pension liability-IMRF General 6,289,542 - 5,734,497 555,045 - Net pension liability- Police Pension General 43,096,949 10,170,054 - 53,267,003 - Net pension liability- Firefighters'Pension General 38,857,145 5,448,597 - 44,305,742 - Business District limited tax Business note payable District 32,525,273 667,090 - 33,192,363 - Total governmental activities 185,922,996 64,014,227 17,492,071 232,445,152 5,544,889 BUSINESS-TYPE ACTIVITIES General obligation bonds Water 4,925,000 4,890,000 305,000 9,510,000 240,000 Unamortized bond premium 138,964 185,920 6,948 317,936 - Compensated absences* 239,257 - 54,412 184,845 36,969 Net pension liability-TMRF** 1,472,140 - 1,342,225 129,915 - Total OPEB liability* 364,995 - 62,695 302,300 11,732 Total business-type activities 7,140,356 5,075,920 1,771,280 10,444,996 288,701 TOTAL $ 193,063,352 $ 69,090,147 $ 19,263,351 $ 242,890,148 $ 5,833,549 Compensated absences, net pension liabilities, and the net total OPEB liability of the governmental activities are primarily liquidated by the General Fund. *Compensated absences, net pension liabilities, and the total OPEB liability are retired by the Water and Sewer, Parking System Revenue, and Village Parking System Funds. **The IMRF net pension liability is retired by the Water and Sewer Fund. - 45 - 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 2019 $ 3,140,000 $ 3,282,733 $ 57,500 $ 754 $ 590,000 $ 5,369 2020 4,015,000 2,980,470 - - - - 2021 4,590,000 2,854,640 - - - - 2022 4,505,000 2,719,030 - - - - 2023 2,780,000 2,592,844 - - - - 2024 2,890,000 2,503,244 - - - - 2025 3,025,000 2,388,044 - - - - 2026 3,160,000 2,280,094 - - - - 2027 3,285,000 2,169,144 - - - - 2028 3,435,000 2,058,069 - - - - 2029 3,075,000 1,941,475 - - - - 2030 3,335,000 1,805,400 - - - - 2031 3,510,000 1,657,063 - - - - 2032 3,695,000 1,501,088 - - - - 2033 3,890,000 1,337,025 - - - - 2034 3,170,000 1,165,119 - - - - 2035 3,320,000 1,052,850 - - - - 2036 3,475,000 933,219 - - - - 2037 3,630,000 807,275 - - - - 2038 2,560,000 675,200 - - - - 2039 2,660,000 576,000 - - - - 2040 2,765,000 469,600 - - - - 2041 2,875,000 359,000 - - - - 2042 2,990,000 244,000 - - - - 2043 3,110,000 124,400 - - - - TOTAL $ 82,885,000 $ 40,477,026 $ 57,500 $ 754 $ 590,000 $ 5,369 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. - 46 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) e. Debt Service Requirements to Maturity(Continued) Year Business-Type Activities Ending General Obligation Bonds December 31, Principal Interest 2019 $ 240,000 $ 343,081 2020 265,000 334,631 2021 285,000 325,281 2022 310,000 312,531 2023 335,000 298,631 2024 365,000 283,631 2025 395,000 267,281 2026 430,000 249,581 2027 455,000 232,481 2028 485,000 217,731 2029 515,000 201,700 2030 550,000 184,350 2031 585,000 165,444 2032 615,000 144,257 2033 660,000 121,982 2034 695,000 100,119 2035 735,000 77,088 2036 775,000 53,194 2037 815,000 27,513 TOTAL $ 9,510,000 $ 3,940,507 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. - 47 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. CONTRACTUAL COMMITMENTS Solid Waste Agency of Northern Cook County Annual payments to Solid Waste Agency of Northern Cook County(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 2019, the Village estimates it will pay SWANCC $955,403, with annual increases ranging from 0% to 3% through 2022. 8. INTERFUND ACTIVITY Due From/To Other Funds Receivable Fund Payable Fund Amount General CDBG $ 19,446 Fiduciary General Police Pension 1,681 General Firefighters' Pension 1,127 TOTAL $ 22,254 The purpose of the significant interf ind receivables/payables are as follows: • $19,446 due to the General Fund from the CDBG Fund. The balance represents a short-term operating loan. • $2,808 due to the General Fund from the Police and Firefighters' Pension Funds for property tax refunds issued by the county. Transfers The purpose of significant transfers from/to between funds are as follows: • $750,000 transferred to the Capital Improvement Fund from the General Fund for capital projects. • $1,604,391 transferred to the Debt Service Fund from the General Fund for debt service payments. - 48 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 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. 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 77 West Hintz Road, Suite 200, Wheeling, Illinois 60090 or online at www.swancc.org. - 49 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) a. Solid Waste Agency of Northern Cook County(Continued) 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. 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 $1,013,707 to SWANCC in 2018. The payments have been recorded in the Refuse Disposal Fund. The Village does not have an equity interest in SWANCC at December 31, 2018. b. Northwest Suburban Municipal Joint Action Water Agency Description of Joint Venture The Village is a member of Northwest Suburban Municipal Joint Action Water Agency (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. - 50 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) b. Northwest Suburban Municipal Joint Action Water Agency(Continued) Description of Joint Venture(Continued) The seven members of JAWA and their percentage shares as of April 30, 2018 are as follows: Percent Share Village of Elk Grove Village 17.74% Village of Hanover Park 8.97% Village of Hoffman Estates 15.66% Village of Mount Prospect 11.90% City of Rolling Meadows 7.41% Village of Schaumburg 27.69% Village of Streamwood 10.63% 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. 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, 901 Wellington Avenue, Elk Grove Village, Illinois 60007. - 51 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) b. Northwest Suburban Municipal Joint Action Water Agency(Continued) Description of Joint Venture(Continued) 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. 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 Water and Sewer 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 $6,642,177 to JAWA for 2018. Deposits with JAWA in the amount of$976,550 represent amounts held for security for debt service. - 52 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 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. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. 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. 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, 2018, retirees contributed $892,619. For any disabled employees who qualify for health insurance benefits under the Public Safety Employee Benefits Act (PSEBA), the Village is required to pay 100% of the cost of basic health insurance for the employee and their dependents for their lifetime. C. Membership At December 31, 2018 membership consisted of: Inactive employees currently receiving benefit payments 82 Inactive employees entitled to but not yet receiving benefits - Active employees 296 TOTAL 378 Participating employers 1 - 53 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) d. Actuarial Assumptions and Other Inputs The total OPEB liability was determined by an actuarial valuation performed as of December 31, 2018 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2018 Actuarial cost method Entry-age normal Inflation 3.50% Discount rate 4.11% Healthcare cost trend rates 8.50%in Fiscal 2018, to an ultimate trend rate of 4.50% Asset valuation method N/A Mortality rates RPH- 2018 fully generational using scale MP-2018 e. Discount Rate The discount rate was based on the S&P Municipal Bond 20 year high-grade rate index rate for tax exempt general obligation municipal bonds rated AA or better at December 31, 2018. £ Changes in the Total OPEB Liability Total OPEB Liability BALANCES AT JANUARY 1, 2018 $ 13,147,473 Changes for the period Service cost 523,084 Interest 463,660 Changes in assumptions (1,704,999) Differences between expected and actual experience (1,152,702) Benefit payments (387,384) Net changes (2,258,341) BALANCES AT DECEMBER 31, 2018 $ 10,889,132 - 54 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) £ Changes in the Total OPEB Liability (Continued) There was a change in assumptions related to the mortality tables, discount rate, payroll growth rate, healthcare trend rates, and disability, termination and retirement rates in 2018. g. Rate Sensitivity The following is a sensitive analysis of total OPEB liability to changes in the discount rate and the healthcare cost trend rate. The table below presents the total OPEB liability of the Village calculated using the discount rate of 4.11% as well as what the Village's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (3.11%) or 1 percentage point higher (5.11%) than the current rate: Current 1%Decrease Discount Rate 1%Increase (3.11%) (4.11%) (5.11%) Total OPEB liability $ 12,480,842 $ 10,889,132 $ 9,595,466 The table below presents the total OPEB liability of the Village calculated using the healthcare rate of 8.50% to 4.50% as well as what the Village's total OPEB liability would be if it were calculated using a healthcare rate that is 1 percentage point lower (7.50% to 3.50%) or 1 percentage point higher (9.50% to 5.50%) than the current rate: Current 1%Decrease Healthcare Rate 1%Increase (7.50%to 3.50%) (8.50%to 4.50%) (9.50%to 5.50%) Total OPEB liability $ 9,387,576 $ 10,889,132 $ 12,797,101 - 55 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) h. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2018, the Village recognized OPEB expense of $669,222. At December 31, 2018, the Village reported deferred outflows and deferred inflows of resources related to OPEB from the following sources: Deferred Inflows of Resources Differences between expected and actual experience $ 1,024,624 Changes in assumption 1,515,555 TOTAL $ 2,540,179 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ending December 31, 2019 $ (317,522) 2020 (317,522) 2021 (317,522) 2022 (317,522) 2023 (317,522) Thereafter (952,569) TOTAL $ (2,540,179) 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 ILCS 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 or at imrf.org. - 56 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions Illinois Municipal Retirement Fund All employees (other than those covered by the Police Pension Plan or Firefighters' Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. For financial reporting purposes, the Village and Library participate in IMRF as a cost-sharing multiple-employer pension plan. IMRF provides two tiers of pension benefits. Employees hired prior to January 1, 2011, are eligible for Tier 1 benefits. For Tier 1 employees, pension benefits vest after eight years of service. Participating members who retire at age 55 (reduced benefits) or after age 60 (full benefits) with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after 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 4.50% 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 contribution rate for calendar year 2018 was 11.76%. Plan Membership At December 31, 2017 (most recent information available), IMRF membership consisted of- Inactive £Inactive plan members currently receiving benefits 249 Inactive plan members entitled to but not yet receiving benefits 160 Active plan members 247 TOTAL 656 The IMRF data included in the table above includes membership of both the Village and the Library. - 57 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2017 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2017 Actuarial cost method Entry-age normal Asset valuation method Market value of assets Assumptions Price inflation 2.50% Salary increases 3.39%to 14.25% Investment rate of return 7.50% Cost of living adjustments - Tier 1 3.00% Cost of living adjustments - Tier 2 3.00% or '/z of the increase in the Consumer Price Index, whichever is less For nondisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustments that were applied for nondisabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2014). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. - 58 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Discount Rate The discount rate used to measure the IMRF total pension liability was 7.50°/x. 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 IMRF's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Changes in the Net Pension Liability (a) (b) (a) -(b) Total Plan Net Pension Fiduciary Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2017 $ 95,738,341 $ 85,124,800 $ 10,613,541 Changes for the period Service cost 1,811,298 - 1,811,298 Interest 7,087,425 - 7,087,425 Difference between expected and actual experience 570,864 - 570,864 Changes in assumptions (3,034,659) - (3,034,659) Employer contributions - 1,941,668 (1,941,668) Employee contributions - 766,547 (766,547) Net investment income - 14,755,335 (14,755,335) Benefit payments and refunds (4,289,989) (4,289,989) - Other(net transfer) - (1,351,715) 1,351,715 Net changes 2,144,939 11,821,846 (9,676,907) BALANCES AT DECEMBER 31, 2017 $ 97,883,280 $ 96,946,646 $ 936,634 There was a change with respect to actuarial assumptions. Certain demographic assumptions were changed, which impacted mortality rates, mortality improvement rates, retirement rates, disability rates, and termination rates. - 59 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Changes in the Net Pension Liability (Continued) The table presented on the previous page includes amounts for both the Village and the Library. The Village's collective shares of the net pension liability at January 1, 2017, the employer contributions, and the net pension liability at December 31, 2017 were $7,761,683, $1,419,942, and $684,960, respectively. The Library's collective shares of the net pension liability at January 1, 2017, the employer contributions, and the net pension liability at December 31, 2017 were $2,851,858, $521,726, and $251,674,respectively. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2018, the Village recognized pension expense of $2,099,450. At December 31, 2018, the Village reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Difference between expected and actual experience $ 333,840 $ 481,878 Changes in assumptions 61,875 1,744,485 Employer contributions after the measurement date 1,589,987 - Net difference between projected and actual earnings on pension plan investments - 2,954,400 TOTAL $ 1,985,702 $ 5,180,763 - 60 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources (Continued) $1,589,987 reported as deferred outflows of resources related to pensions resulting from village contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the reporting year ending December 31, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to IMRF will be recognized as pension expense by the Village as follows: Year Ending December 31, 2019 $ (962,096) 2020 (963,487) 2021 (1,619,041) 2022 (1,240,424) TOTAL $ (4,785,048) Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability (asset)to changes in the discount rate. The table below presents the net pension liability (asset) of the Village calculated using the discount rate of 7.50% as well as what the Village's net pension liability (asset) would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher(8.50%) than the current rate: Current 1% Decrease Discount Rate 1%Increase (6.50%) (7.50%) (8.50%) Net pension liability(village) $ 9,608,472 $ 684,960 $ (6,702,722) Net pension liability(library) 3,530,421 251,674 (2,462,767) Net pension liability(total) $ 13,138,893 $ 936,634 $ (9,165,489) - 61 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) 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, 2018, the Police Pension Plan membership consisted of- Inactive £Inactive plan members currently receiving benefits 80 Inactive plan members entitled to but not yet receiving benefits 9 Active plan members 84 TOTAL 173 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 2.50% 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. - 62 - 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(Continued) 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 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/z of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.50% 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., %z% for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January I" 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 % of the change in the Consumer Price Index for the preceding calendar year. 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. However, the Village has decided to fund 100% of the past service cost by 2040. For the year ended December 31, 2018, the Village's contribution was 42.32% of covered payroll. The Village utilizes the entry-age normal actuarial cost method to fund the plan. - 63 - 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 The Police Pension Fund's (the Fund) investment policy authorizes the 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), 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. The 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. It is the policy of the 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 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. The Fund's investment policy in accordance with ILCS establishes the following target allocation across asset classes: Long-Term Expected Real Asset Class Target Rate of Return Fixed Income 45.00% 1.60% Large Cap Domestic Equities 38.50% 6.80% Small Cap Domestic Equities 11.00% 8.70% International Equities 5.50% 6.60% - 64 - 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) Asset class returns and risk premium data are from Morningstar Analyst Research Center — SBBI Data for the period December 31, 1925 through December 31, 2017. The International Equity equals the MSCI EAFE Index for the period December 31, 1969 through December 31, 2017. The long-term expected real rates of return are net of inflation and investment expense. Long-term returns for the asset classes are calculated on a geometric mean basis. Investment Valuations All investments are stated at fair value at December 31, 2018. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investment Concentrations Concentration of credit risk is the risk that the Fund has a high percentage of its investments invested in one type of investment. The Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities custodians of the Fund, shall hold more than 10% of the Fund's portfolio at any time. Neither shall The Illinois Funds hold more than 10% of the 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, 2018, there were no significant investments (other than United States Government guaranteed obligations or mutual funds) in any one organization that represent 5% or more of the Fund's investments. Investment Rate of Return For the year ended December 31, 2018, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (5.21)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. - 65 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Interest Rate Risk The following table presents the investments and maturities of the Fund's debt securities as of December 31, 2018: Investment Maturities(in Years) Less Greater Investment Type Fair Value than 1 1-5 6-10 than 10 U.S. Treasury $ 3,980,240 $ 94,288 $ 1,618,425 $ 2,172,671 $ 94,856 U.S. agencies 6,991,899 1,610 314,820 1,078,159 5,597,310 State,local,and municipal bonds 2,257,990 140,102 413,735 510,670 1,193,483 Corporate bonds 9,374,108 527,607 5,970,890 2,657,173 218,438 TOTAL $ 22,604,237 $ 763,607 $ 8,317,870 $ 6,418,673 $ 7,104,087 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 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. The Fund has the following recurring fair value measurements as of December 31, 2018: the U.S. Treasury obligations and mutual funds were valued using quoted prices in active markets for identical assets (Level 1 inputs) and U.S. agency obligations; state, local, and municipal obligations, and corporate bond obligations were valued using quoted matrix pricing models (Level 2 inputs). Credit Risk Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The 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. Treasury and U.S. agencies, money market mutual funds, and The Illinois Funds are rated AAA. The state, local, and municipal bonds are rated AAA. The corporate bonds are rated BAA3 to AAA. - 66 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) 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 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 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. The 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, 2018 were as follows: (a) (b) (a) - (b) Total Plan Net Pension Fiduciary Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2018 $ 114,166,011 $ 71,069,062 $ 43,096,949 Changes for the period Service cost 1,575,461 - 1,575,461 Interest 8,195,228 - 8,195,228 Difference between expected and actual experience (208,550) - (208,550) Changes in assumptions 1,320,658 - 1,320,658 Employer contributions - 3,608,602 (3,608,602) Employee contributions - 838,893 (838,893) Net investment income - (3,697,156) 3,697,156 Benefit payments and refunds (5,407,697) (5,407,697) - Administrative expense - (37,596) 37,596 Net changes 5,475,100 (4,694,954) 10,170,054 BALANCES AT DECEMBER 31, 2018 $ 119,641,111 $ 66,374,108 $ 53,267,003 - 67 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Net Pension Liability (Continued) There was also a change in assumption made since the prior measurement date to reflect revised expectations with respect to mortality rates. See the schedule of changes in the employer's net pension liability and related ratios in the required supplementary information for additional inforination related to the funded status of the Fund. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation perforined as of December 31, 2018 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2018 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Salary increases 4.00% Discount rate 7.25% Cost of living adjustments - Tier 1 3.00% Cost of living adjustments - Tier 2 1.25% Asset valuation method Market value of assets - 68 - 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 (Continued) Mortality rates for healthy individuals were based on the RP-2014 Mortality Table with a blue collar adjustment, with improvement scale MP-2018 applied generally from 2013. Mortality rates for disabled individuals were 115% of the health mortality table with improvement scale MP-2018 applied generally from 2013. The actuarial assumptions used in the December 31, 2018 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount Rate The discount rate used to measure the total pension liability was 7.25%. 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 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. Interest Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate of 7.25% 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(6.25%) or 1 percentage point higher(8.25%) than the current rate: Current I% Decrease Discount Rate I% Increase (6.25%) (7.25%) (8.25%) Net pension liability $ 70,641,028 $ 53,267,003 $ 39,191,652 - 69 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2018, the Village recognized police pension expense of$5,659,730. At December 31, 2018, the Village reported deferred outflows of resources and deferred inflows of resources related to the police pension from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Difference between expected and actual experience $ 20,630 $ 3,874,360 Changes in assumptions 2,940,261 - Net difference between projected and actual earnings on pension plan investments 4,790,486 - TOTAL $ 7,751,377 $ 3,874,360 Amounts reported as deferred outflows of resources and deferred inflows of resources related to the police pension will be recognized in pension expense as follows: Year Ending December 31, 2019 $ 1,806,676 2020 166,051 2021 (18,367) 2022 1,737,309 2023 185,348 TOTAL $ 3,877,017 - 70 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) 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 firefighter employees. Plan Membership At December 31, 2018, the Firefighters' Pension Plan membership consisted of: Inactive plan members currently receiving benefits 89 Inactive plan members entitled to but not yet receiving benefits 2 Active plan members 73 TOTAL 164 Firefighters' Pension Plan 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 2.50% 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. - 71 - 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(Continued) 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'/2 of the annual change in the Consumer Price Index or 3% compounded annually. The annual benefit shall be increased by 2.50% 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., '/z% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1 st 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 '/z of the change in the Consumer Price Index for the preceding calendar year. 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 service costs for the Firefighters' Pension Plan. However, the Village has decided to fund 100% of the past service cost by 2040. For the year ended December 31, 2018, the Village's contribution was 44.32% of covered payroll. The Village utilizes the entry-age normal actuarial cost method to fund the plan. Investment Policy The Firefighters' Pension Fund's (the Fund) investment policy authorizes the 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 - 72 - 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) 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, The Illinois Funds (created by the Illinois State Legislature under the control of the State Comptroller), 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. The 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. It is the policy of the 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 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. The Fund's investment policy in accordance with ILCS establishes the following target allocation across asset classes: Long-Term Expected Real Asset Class Target Rate of Return U.S. Fixed Income 35% 2.50% U.S. Equities 40% 7.50% International Equities 16% 8.50% Real Estate 9% 4.50% The long-term expected real rate of return is based on an arithmetic calculation that uses the GASB building block method. The arithmetic calculation was developed through an evaluation process overseen by the Andco Consulting Investment Policy Committee. - 73 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Investment Valuations All investments are stated at fair value at December 31, 2018. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Concentrations Concentration of credit risk is the risk that the Fund has a high percentage of its investments invested in one type of investment. The Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities custodians and fixed income investment managers of the Fund, shall hold more than 10% of the Fund's portfolio at any time. Neither shall The Illinois Funds hold more than 10% of the 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 50% to 54%, and 55% in equity securities. At December 31, 2018, there were no significant investments (other than United States Government guaranteed obligations) in any one organization that represent 5% or more of the Fund's investments. Rate of'Return For the year ended December 31, 2018, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (2.80)%. 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 Fund's deposits may not be returned to it. The 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 an independent third party or the Federal Reserve Bank, and evidenced by safekeeping receipts. - 74 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Interest Rate Risk The following table presents the investments and maturities of the Fund's debt securities as of December 31, 2018: Investment Maturities(in Years) Less Greater Investment Type Fair Value than 1 1-5 6-10 than 10 U.S. Treasury $ 3,985,083 $ 248,033 $ 1,953,613 $ 1,783,437 $ - U.S. agencies 10,178,622 1,609 899,677 1,731,246 7,546,090 State,local and municipal bonds 738,000 211,555 415,985 110,460 - Corporate bonds 9,167,785 65,446 6,439,011 2,525,283 138,045 TOTAL $ 24,069,490 $ 526,643 $ 9,708,286 $ 6,150,426 $ 7,684,135 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 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. The Fund has the following recurring fair value measurements as of December 31, 2018: the U.S. Treasury obligations and mutual funds were valued using quoted prices in active markets for identical assets (Level 1 inputs); and U.S. agency obligations, state, local, and municipal obligations, corporate bond obligations, and investments in real estate pools were valued using quoted matrix pricing models (Level 2 inputs). Credit Risk Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The 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. Treasury and U.S. agencies, money market mutual funds, and The Illinois Funds are rated AAA. The state, local, and municipal bonds are rated AA2 to AAA. The corporate bonds are rated Bal to AAA. - 75 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) 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 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 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. The 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 Firefighters' Pension Plan as of December 31, 2018 were as follows: (a) (b) (a) - (b) Total Plan Net Pension Fiduciary Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2018 $ 105,122,485 $ 66,265,340 $ 38,857,145 Changes for the period Service cost 1,427,248 - 1,427,248 Interest 7,510,621 - 7,510,621 Difference between expected and actual experience (2,255,993) - (2,255,993) Changes in assumptions 809,820 - 809,820 Employer contributions - 3,332,773 (3,332,773) Employee contributions - 688,000 (688,000) Net investment income - (1,914,014) 1,914,014 Benefit payments and refunds (5,909,909) (5,909,909) - Administrative expense - (63,660) 63,660 Net changes 1,581,787 (3,866,810) 5,448,597 BALANCES AT DECEMBER 31, 2018 $ 106,704,272 $ 62,398,530 $ 44,305,742 - 76 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Net Pension Liability (Continued) There was also a change in assumption made since the prior measurement date to reflect revised expectations with respect to mortality rates. See the schedule of changes in the employer's net pension liability and related ratios in the required supplementary information for additional infonnation related to the funded status of the Fund. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2018 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2018 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Salary increases 4.00% Discount rate 7.25% Cost of living adjustments - Tier 1 3.00% Cost of living adjustments - Tier 2 1.25% Asset valuation method Market value of assets - 77 - 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 (Continued) Mortality rates for healthy individuals were based on the RP-2014 Mortality Table with a blue collar adjustment, projected from 2006 to 2018 using Scale MP-2017. Mortality rates for disabled individuals were based on the RP-2004 Disabled Mortality Table, projected from 2006 to 2018 using Scale MP-2017 The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount Rate The discount rate used to measure the total pension liability was 7.25%. 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 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. Interest Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate of 7.25% 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(6.25%) or 1 percentage point higher (8.25%) than the current rate: Current I% Decrease Discount Rate I% Increase (6.25%) (7.25%) (8.25%) Net pension liability $ 58,176,403 S 44,305,742 S 32,916,484 - 78 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2018, the Village recognized firefighter's pension expense of$5,530,791. At December 31, 2018, the Village reported deferred outflows of resources and deferred inflows of resources related to the firefighter's pension from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Difference between expected and actual experience $ 1,528,193 $ 2,785,723 Changes in assumptions 3,202,060 409,124 Net difference between projected and actual earnings on pension plan investments 2,724,336 - TOTAL $ 7,454,589 $ 3,194,847 Amounts reported as deferred outflows of resources and deferred inflows of resources related to the firefighter's pension will be recognized in pension expense as follows: Year Ending December 31, 2019 $ 1,950,711 2020 1,433,342 2021 65,922 2022 1,094,773 2023 (78,409) Thereafter (206,597) TOTAL $ 4,259,742 - 79 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) b. Fiduciary Funds Summary Financial Information The following is summary financial information for the Police Pension Plan and the Firefighters' Pension Plan. Statement of Net Position Police Firefighters' Pension Pension Total ASSETS Cash and cash equivalents $ 1,018,476 $ 1,332,600 $ 2,351,076 Investments State and local obligations 2,257,990 738,000 2,995,990 U.S. Government and U.S. agency obligations 10,972,139 14,163,705 25,135,844 Corporate bonds and obligations 9,374,108 9,167,785 18,541,893 Real estate - 6,085,331 6,085,331 Mutual funds 42,656,272 30,804,914 73,461,186 Accrued interest receivable 135,485 138,854 274,339 Prepaids 1,162 1,670 2,832 Total assets 66,415,632 62,432,859 128,848,491 LIABILITIES Accounts payable 39,843 33,202 73,045 Due to other funds 1,681 1,127 2,808 Total liabilities 41,524 34,329 75,853 NET POSITION $ 66,374,108 $ 62,398,530 $ 128,772,638 - 80 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) b. Fiduciary Funds Summary Financial Information (Continued) Schedule of Changes in Net Position Police Firefighters' Pension Pension Total ADDITIONS Contributions Employer $ 3,608,602 $ 3,332,773 $ 6,941,375 Employee 838,873 688,000 1,526,873 Other 20 - 20 Total contributions 4,447,495 4,020,773 8,468,268 Invest income Net (depreciation) in fair value of investments (4,332,402) (2,513,393) (6,845,795) Interest income 762,164 697,640 1,459,804 Less investment expense (126,918) (98,261) (225,179) Net investment income (3,697,156) (1,914,014) (5,611,170) Total additions 750,339 2,106,759 2,857,098 DEDUCTIONS Administrative 37,596 63,660 101,256 Pension benefits and refunds 5,407,697 5,909,909 11,317,606 Total deductions 5,445,293 5,973,569 11,418,862 NET INCREASE (DECREASE) (4,694,954) (3,866,810) (8,561,764) NET POSITION RESTRICTED FOR PENSIONS January 1 71,069,062 66,265,340 137,334,402 December 31 $ 66,374,108 $ 62,398,530 $ 128,772,638 - 81 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. CHANGE IN ACCOUNTING PRINCIPLE The Village adopted new accounting guidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, during the year ended December 31, 2018. The implementation of this guidance resulted in changes to the postemployment benefit related liability, revenue, expense, notes presented in the notes to financial statements and to the required supplementary information. The beginning net position reported in the government-wide financial statements has been restated to reflect the new guidance as follows: GOVERNMENTAL ACTIVITIES BEGINNING NET POSITION(DEFICIT),AS PREVIOUSLY REPORTED $ (56,874,737) Change in accounting principle To record the Village total OPEB liability (10,750,946) BEGINNING NET POSITION(DEFICIT),RESTATED $ (67,625,683) BUSINESS-TYPE ACTIVITIES Parking Total System Village Business- Revenue Parking Water and Type Fund System Fund Sewer Fund Activities NET POSITION, AS PREVIOUSLY REPORTED $ 147,461 $ 557,239 $ 41,327,962 $ 42,032,662 Change in accounting principle (1,555) (13,368) (249,803) (264,726) NET POSITION, RESTATED $ 145,906 $ 543,871 $ 41,078,159 $ 41,767,936 With the implementation of GASB Statement No. 75, the Village is required to retroactively record the total OPEB liability. 14. SUBSEQUENT EVENTS On May 1, 2018, the Village issued General Obligation Bonds, Series 2018A, in the amount of$12,100,000. A portion of the proceeds will fund infrastructure projects in the Village's water and sewer utility system. The balance of the bond proceeds from the issue will be used to fund land acquisition related to relocation and construction of a new Police Department Headquarters, Fire Department Headquarters, and for capitalized interest. - 82 - 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, 2018 Original Final Budget Budget Actual REVENUES Property taxes $ 16,540,000 $ 16,540,000 $ 16,368,958 Other taxes 7,355,000 7,285,000 7,421,670 Licenses, permits, and fees 2,405,000 2,695,000 2,484,451 Intergovernmental 24,723,860 28,823,860 29,421,850 Charges for services 1,544,900 1,324,900 1,475,149 Fines and forfeits 427,000 377,000 403,842 Investment income 205,000 315,000 318,490 Miscellaneous 267,500 982,500 1,072,315 Total revenues 53,468,260 58,343,260 58,966,725 EXPENDITURES General government 8,363,436 8,843,505 7,743,642 Public safety 34,898,479 34,940,648 35,005,442 Highways and streets 8,251,789 8,414,227 7,915,559 Health 285,148 285,148 306,314 Welfare 1,660,594 1,660,594 1,410,612 Culture and recreation 605,972 605,972 572,169 Total expenditures 54,065,418 54,750,094 52,953,738 OTHER FINANCING SOURCES (USES) Transfers (out) (750,000) (2,392,000) (2,354,391) Total other financing sources (uses) (750,000) (2,392,000) (2,354,391) NET CHANGE IN FUND BALANCE $ (1,347,158) $ 1,201,166 3,658,596 FUND BALANCE, JANUARY 1 19,398,971 FUND BALANCE, DECEMBER 31 $ 23,057,567 (See independent auditor's report.) - 83 - 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, 2018 Original Final Budget Budget Actual REVENUES Charges for services $ 4,322,000 $ 4,322,000 $ 4,359,038 Investment income 4,000 4,000 10,139 Miscellaneous 11,000 11,000 37,928 Total revenues 4,337,000 4,337,000 4,407,105 EXPENDITURES Health Refuse disposal division Personal services 270,999 270,999 267,842 Employee benefits 119,861 119,861 123,512 Other employee costs 1,324 1,324 349 Contractual services 3,888,076 4,136,141 4,095,525 Utilities 474 474 153 Insurance 26,673 26,673 5,892 Commodities and supplies 40,763 40,763 35,723 Total expenditures 4,348,170 4,596,235 4,528,996 NET CHANGE IN FUND BALANCE $ (11,170) $ (259,235) (121,891) FUND BALANCE, JANUARY 1 1,442,645 FUND BALANCE, DECEMBER 31 $ 1,320,754 (See independent auditor's report.) - 84 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL PROSPECT/MAIN TIF FUND For the Year Ended December 31, 2018 Budget Original Final Actual REVENUES Taxes Property $ 253,953 $ 470,000 $ 469,613 Investment income - 86,000 78,498 Miscellaneous - 170,000 169,343 Total revenues 253,953 726,000 717,454 EXPENDITURES General government Contractual services 183,000 330,000 250,564 Cominodities and supplies 1,500 1,500 161 Capital outlay Infrastructure 1,070,000 1,070,000 5,113 Land improvements 750,000 750,000 40,053 Land acquisition 1,000,000 7,213,000 7,374,427 Other 2,323,000 3,323,000 3,199,003 Debt service Interest and fiscal charges 183,419 446,419 413,109 Total expenditures 5,510,919 13,133,919 11,282,430 EXCESS (DEFICIENCY)OF REVENUES OVER EXPENDITURES (5,256,966) (12,407,919) (10,564,976) OTHER FINANCING SOURCES (USES) Bonds issued - 7,061,000 7,060,000 Premium on bonds issued - 159,000 258,879 Proceeds from sale of capital assets 1,600,000 - - Total other financing sources (uses) 1,600,000 7,220,000 7,318,879 NET CHANGE IN FUND BALANCE $ (3,656,966) $ (5,187,919) (3,246,097) FUND BALANCE,JANUARY 1 3,945,027 FUND BALANCE,DECEMBER 31 $_698 930 (See independent auditor's report.) - 85 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S TOTAL OPEB LIABILITY AND RELATED RATIOS OTHER POSTRETIREMENT BENEFIT PLAN Last Fiscal Year MEASUREMENT DATE DECEMBER 31, 2018 TOTAL OPEB LIABILITY Service cost $ 523,084 Interest 463,660 Changes in assumptions (1,704,999) Differences between expected and actual experience (1,152,702) Implicit benefit payments (387,384) Net change in total OPEB liability (2,258,341) Total OPEB liability-beginning 13,147,473 TOTAL OPEB LIABILITY-ENDING $ 10,889,132 Covered payroll $ 26,110,072 Employer's total OPEB liability as a percentage of covered payroll 41.70% No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. There was a change in assumptions related to the mortality tables, discount rate, payroll growth rate, healthcare trend rates, and disability, termination, and retirement rates in 2018. Ultimately, this schedule should present information for the last ten years. However, until ten years of information can be compiled,information will be presented for as many years as is available. (See independent auditor's report.) - 86 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND Last Four Fiscal Years FISCAL YEAR ENDED DECEMBER 31, 2015 2016 2017 2018 Actuarially determined contribution $ 1,362,420 $ 1,453,487 $ 1,432,869 $ 1,589,987 Contributions in relation to the actuarially determined contribution 1,362,420 1,453,487 1,432,869 1,589,987 CONTRIBUTION DEFICIENCY(Excess) $ - $ - $ - $ - Covered payroll $ 11,923,390 $ 12,115,732 $ 12,407,217 $ 13,521,371 Contributions as a percentage of covered payroll 11.43% 12.00% 11.55% 11.76% Notes to Required Supplementary Information The information presented was determined as part of the actuarial valuations as of January 1 of the prior fiscal year. Additional information as of the latest actuarial valuation presented is as follows: the actuarial cost method was entry-age normal; the amortization method was level percent of pay, closed, and the amortization period was 26 years; the asset valuation method was five-year smoothed market; and the significant actuarial assumptions were an investment rate of return at 7.50% annually, projected salary increases assumption of 3.75% to 14.50% compounded annually and postretirement benefit increases of 3.00%compounded annually. Ultimately, this schedule should present return information for the last ten years. However, until ten years of information can be compiled,information will be presented for as many years as is available. 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R o I UU. o O o o ° o o w U U U U Z E- m y VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ILLINOIS MUNICIPAL RETIREMENT FUND Last Four Fiscal Years MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 Employer's proportion of net pension liability 73.13% 73.13% 73.13% 73.13% Employer's proportionate share of net pension liability $ 5,212,280 $ 8,590,918 $ 7,761,683 $ 684,961 Employer's covered payroll 11,890,055 11,923,390 12,115,732 12,407,217 Employer's proportionate share of the net pension liability as a percentage of its covered payroll 43.84% 72.05% 64.06% 5.52% Plan fiduciary net position as a percentage of the total pension liability 91.93% 87.23% 88.91% 99.04% Ultimately, this schedule should present return information for the last ten years. However, until ten years of information can be compiled,information will be presented for as many years as is available. (See independent auditor's report.) - 90 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND Last Five Fiscal Years MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service cost $ 1,890,407 $ 1,777,310 $ 1,732,924 $ 1,557,284 $ 1,575,461 Investment income 6,479,504 7,210,826 8,221,483 7,951,856 8,195,228 Differences between expected and actual experience 860,183 95,650 (5,201,074) (1,650,048) (208,550) Changes of assumptions 4,844,398 7,268,193 29,971 385,618 1,320,658 Benefit payments,including refunds of member contributions (4,117,120) (4,529,962) (4,688,978) (4,404,364) (5,407,697) Net change in total pension liability 9,957,372 11,822,017 94,326 3,840,346 5,475,100 Total pension liability-beginning 88,451,950 98,409,322 110,231,339 110,325,665 114,166,011 TOTAL PENSION LIABILITY-ENDING $ 98,409,322 $ 110,231,339 $ 110,325,665 $ 114,166,011 $ 119,641,111 PLAN FIDUCIARY NET POSITION Contributions-employer $ 2,924,226 $ 2,918,395 $ 3,232,887 $ 3,747,825 $ 3,608,602 Contributions-member 851,363 795,827 815,684 830,240 838,893 Net investment income 3,845,862 545,802 4,161,658 8,967,014 (3,697,156) Benefit payments,including refunds of member contributions (4,117,120) (4,529,962) (4,688,978) (4,404,364) (5,407,697) Administrative expense (60,382) (49,947) (44,605) (48,339) (37,596) Net change in plan fiduciary net position 3,443,949 (319,885) 3,476,646 9,092,376 (4,694,954) Plan fiduciary net position-beginning 55,375,976 58,819,925 58,500,040 61,976,686 71,069,062 PLAN FIDUCIARY NET POSITION-ENDING $ 58,819,925 $ 58,500,040 $ 61,976,686 $ 71,069,062 $ 66,374,108 EMPLOYER'S NET PENSION LIABILITY $ 39,589,397 $ 51,731,299 $ 48,348,979 $ 43,096,949 $ 53,267,003 Plan fiduciary net position as a percentage of the total pension liability 59.77% 53.07% 56.18% 62.25% 55.48% Covered payroll $ 7,848,795 $ 8,049,995 $ 8,276,985 $ 8,354,290 $ 8,526,976 Employer's net pension liability as a percentage of covered payroll 504.40% 642.60% 584.10% 515.90% 624.70% Notes to Required Supplementary information Year Ended December 31,2018-There were changes in assumptions related to the mortality rates from December 31,2017. Year Ended December 31,2017-There were changes in assumptions related to the mortality rates from December 31,2016. Year Ended December 31,2016-There was a change in assumption related to the discount rate made since the prior measurement date.The discount rate used in the current actuarial valuation,dated December 31,2016,is 7.25%.The discount rate used in the prior actuarial valuation,dated December 31,2015, was 7.50%. There was also a change in assumption related to the projected rate for annual pay increases made since the prior measurement date.The projected rate for annual pay increases used in the current actuarial valuation,dated December 31,2016,is 4.00%.The projected rate for annual pay increases used in the prior actuarial valuation, dated December 31,2015,was 5.00%. There was also a change in assumption made since the prior measurement date to reflect revised expectations with respect to mortality rates. Year Ended December 31,2015-There was a change with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates,turnover rates,and retirement rates. Year Ended December 31,2014-There was a change with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates,turnover rates,and retirement rates. Ultimately,this schedule should present return information for the last ten years. However,until ten years of information can be compiled,information will be presented for as many years as is available. (See independent auditor's report.) - 91 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS FIREFIGHTERS'PENSION FUND Last Five Fiscal Years MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service cost $ 1,673,836 $ 1,515,101 $ 1,429,810 S 1,426,033 $ 1,427,248 Investment income 5,780,241 6,270,507 7,296,444 7,228,968 7,510,621 Differences between expected and actual experience 225,575 1,603,162 (1,491,027) 1,470,077 (2,255,993) Changes of assumptions 3,234,155 7,648,623 396,832 (572,774) 809,820 Benefit payments,including refunds of member contributions (4,158,988) (4,594,876) (4,981,207) (5,427,385) (5,909,909) Net change in total pension liability 6,754,819 12,442,517 2,650,852 4,124,919 1,581,787 Total pension liability-beginning 79,149,378 85,904,197 98,346,714 100,997,566 105,122,485 TOTAL PENSION LIABILITY-ENDING $ 85,904,197 $ 98,346,714 $ 100,997,566 S 105,122,485 S 106,704,272 PLAN FIDUCIARY NET POSITION Contributions-employer $ 2,466,165 $ 2,532,317 $ 2,806,983 $ 3,396,834 $ 3,332,773 Contributions-member 644,384 606,932 668,070 678,476 688,000 Net investment income 3,963,252 1,806,126 3,049,538 9,323,369 (11914,014) Benefit payments,including refunds ofinember contributions (4,158,988) (4,594,876) (4,981,207) (5,427,385) (5,909,909) Administrative expense (62,889) (62,136) (55,257) (50,783) (63,660) Net change in plan fiduciary net position 2,851,924 288,363 1,488,127 7,920,511 (3,866,810) Plan fiduciary net position-beginning 53,716,415 56,568,339 56,856,702 58,344,829 66,265,340 PLAN FIDUCIARY NET POSITION-ENDING $ 56,568,339 $ 56,856,702 $ 58,344,829 $ 66,265,340 $ 62,398,530 EMPLOYER'S NET PENSION LIABILITY $ 29,335,858 $ 41,490,012 $ 42,652,737 $ 38,857,145 $ 44,305,742 Plan fiduciary net position as a percentage of the total pension liability 65.85% 57.81% 57.77% 63.04% 58.48% Covered payroll $ 6,495,510 $ 6,441,588 $ 6,981,704 S 7,284,199 S 7,519,070 Employer's net pension liability as a percentage of covered payroll 451.60% 644.10% 610.90% 533.40% 589.20% Notes to Required Supplementary Information Year Ended December 31,2018-There were changes in assumptions related to the mortality rates from December 31,2017. Year Ended December 31,2017-There were changes in assumptions related to the mortality rates from December 31,2016. Year Ended December 31,2016-There was a change in assumption related to the discount rate made since the prior measurement date.The discount rate used in the current actuarial valuation,dated December 31,2016,is 7.25%.The discount rate used in the prior actuarial valuation,dated December 31,2015, was 7.50%. There was also a change in assumption related to the projected rate for annual pay increases made since the prior measurement date.The projected rate for annual pay increases used in the current actuarial valuation,dated December 31,2016,is 4.00%.The projected rate for annual pay increases used in the prior actuarial valuation, dated December 31,2015,was 5.00%. There was also a change in assumption made since the prior measurement date to reflect revised expectations with respect to mortality rates. Year Ended December 31,2015-There was a change with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates,turnover rates,and retirement rates. Year Ended December 31,2014-There was a change with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates,turnover rates,and retirement rates. Ultimately,this schedule should present return information for the last ten years. However,until ten years of information can be compiled,information will be presented for as many years as is available. (See independent auditor's report.) - 92 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND Last Five Fiscal Years FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018 Annual money-weighted rate of return, net of investment expense 6.92% 0.92% 7.15% 14.29% (5.21%) Ultimately,this schedule should present return information for the last ten years. However,until ten years of information can be compiled,information will be presented for as many years as is available. (See independent auditor's report.) - 93 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF INVESTMENT RETURNS FIREFIGHTERS'PENSION FUND Last Five Fiscal Years FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018 Annual money-weighted rate of return, net of investment expense 7.60% 3.38% 5.58% 16.49% (2.80%) Ultimately,this schedule should present return information for the last ten years. However,until ten years of information can be compiled,information will be presented for as many years as is available. (See independent auditor's report.) - 94 - VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2018 BUDGETS a. 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 GAAP. 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 of Trustees. The budget figures included in this report reflect all budget amendments made during the year. - 95 - 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 user fees and recycling income. The Village has elected to present the Refuse Disposal Fund as a major fund. The Prospect/Main TIF Fund - to account for the resources to acquire property and construct certain improvements in the Prospect/Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. 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 FUND Police and Fire Building Construction Fund- to account for the resources to construct the police and fire building. VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF REVENUES-BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual TAXES Property taxes-general $ 10,089,000 $ 10,089,000 $ 9,977,875 Property taxes-police pension 3,323,000 3,323,000 3,296,602 Property taxes-firefighters'pension 2,998,000 2,998,000 2,971,973 Road and bridge property taxes 130,000 130,000 122,508 Auto rental tax 20,000 20,000 18,940 Food and beverage tax 815,000 815,000 884,637 Real estate transfer tax 1,250,000 1,430,000 1,426,037 Hotel/motel tax 300,000 300,000 251,397 Telecommunications tax 2,000,000 1,750,000 1,783,974 Home rule sales tax 1,300,000 1,300,000 1,363,690 Gas utility tax 510,000 510,000 536,397 Electric utility tax 1,160,000 1,160,000 1,156,598 Total taxes 23,895,000 23,825,000 23,790,628 LICENSES,PERMITS,AND FEES Liquor licenses 180,000 180,000 180,875 Business licenses 150,000 150,000 147,694 Contractor licenses 55,000 55,000 97,900 Alarm licenses 44,000 44,000 45,315 Elevator licenses 30,000 30,000 25,050 Building permit fees 600,000 785,000 780,756 Electrical permit fees 8,000 8,000 - Reinspection fees 40,000 40,000 16,600 Vacant structure registration fees 5,000 5,000 7,500 Truck rental fees 1,000 1,000 3,115 Utility permit fees 5,000 5,000 6,700 Plan examination fees 60,000 60,000 - Stormwater detention 5,000 5,000 - Street opening fees 2,000 2,000 - ZBA hearing fees 10,000 10,000 11,750 Public improvement inspections 45,000 45,000 - Village impact fees - 105,000 102,231 False alarm fees 10,000 10,000 4,405 Landlord/tenant fees 300,000 300,000 290,182 Cable TV franchise 855,000 855,000 764,378 Total licenses,permits,and fees 2,405,000 2,695,000 2,484,451 INTERGOVERNMENTAL State sales tax 17,765,000 21,925,000 22,294,944 State income tax 5,150,000 5,150,000 5,187,361 State use tax 1,370,000 1,370,000 1,543,922 Charitable games tax 5,000 5,000 8,627 (This schedule is continued on the following pages.) - 96 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF REVENUES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual INTERGOVERNMENTAL(Continued) Replacement taxes $ 425,000 $ 365,000 $ 363,594 Replacement taxes-road and bridge 7,000 7,000 6,948 Grant-body armor 1,860 1,860 5,339 Grant-NACCHO - - 2,115 Grant-other - - 9,000 Total intergovernmental 24,723,860 28,823,860 29,421,850 CHARGES FOR SERVICES Maintenance of state highways 105,000 105,000 103,774 Ambulance transport fees 1,120,000 900,000 1,068,641 Forest River Rural FPD 55,000 55,000 48,600 Cable programming fees 27,000 27,000 - Other programs 35,500 35,500 41,078 Special detail revenue 35,000 35,000 46,528 Police training revenue 5,000 5,000 6,253 Fire training revenue 25,000 25,000 14,969 Lease payments-cell tower 118,500 118,500 126,405 General store lease 18,900 18,900 18,901 Total charges for services 1,544,900 1,324,900 1,475,149 FINES AND FORFEITS Fines-parking 260,000 210,000 209,616 Fines- local ordinances 1,000 1,000 900 Fines-code enforcement 20,000 20,000 23,940 Fines-circuit court 110,000 110,000 105,655 Fines-parental responsibility 1,000 1,000 1,050 Forfeited escrow funds 35,000 35,000 62,681 Total fines and forfeits 427,000 377,000 403,842 INVESTMENT INCOME Investment income 201,000 311,000 306,897 Interest-escrow funds 4,000 4,000 11,593 Total investment income 205,000 315,000 318,490 MISCELLANEOUS Reimburse-high school youth officer 95,900 95,900 97,653 Reimburse-Library 28,000 28,000 20,906 Shared cost-sidewalk 15,000 15,000 5,676 Shared cost-tree replacement 25,000 25,000 1,980 Reimburse-village property 15,000 15,000 6,481 (This schedule is continued on the following page.) - 97 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF REVENUES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual MISCELLANEOUS(Continued) Other reimbursements $ 25,000 $ 25,000 $ 101,706 Human services revenue 12,000 12,000 18,738 Fire and police reports 5,000 5,000 6,242 Animal release fees 500 500 175 Subpoena fees 1,000 1,000 230 Other revenue 45,100 760,100 812,528 Total miscellaneous 267,500 982,500 1,072,315 TOTAL REVENUES $ 53,468,260 $ 58,343,260 $ 58,966,725 (See independent auditor's report.) - 98 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2018 Budget Original Final Actual GENERAL GOVERNMENT Public representation- administration $ 167,901 $ 167,901 $ 159,710 Village administration 4,201,126 4,201,126 3,733,109 Finance department 2,638,570 3,159,770 2,735,100 Community development- administration 1,308,889 1,308,889 1,109,904 Benefit payments 46,950 5,819 5,819 Total general government 8,363,436 8,843,505 7,743,642 PUBLIC SAFETY Community development- code enforcement 785,310 785,310 854,780 Police department 18,560,040 18,584,620 18,564,213 Fire department 15,553,129 15,570,718 15,586,449 Total public safety 34,898,479 34,940,648 35,005,442 HIGHWAYS AND STREETS Public works department 8,251,789 8,414,227 7,915,559 Total highways and streets 8,251,789 8,414,227 7,915,559 HEALTH Community development-health 285,148 285,148 306,314 WELFARE Human services department 1,246,498 1,246,498 1,165,269 Community development-housing 414,096 414,096 245,343 Total welfare 1,660,594 1,660,594 1,410,612 CULTURE AND RECREATION Public representation- community and civic services 605,972 605,972 572,169 TOTAL EXPENDITURES $ 54,065,418 $ 54,750,094 $ 52,953,738 (See independent auditor's report.) - 99 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual GENERAL GOVERNMENT Public representation-administration Mayor and Board of Trustees Personal services $ 37,882 $ 37,882 $ 38,190 Employee benefits 8,418 8,418 8,371 Other employee costs 6,000 6,000 2,964 Contractual services 110,320 110,320 106,771 Utilities 449 449 787 Commodities and supplies 4,832 4,832 2,627 Total public representation-administration 167,901 167,901 159,710 Village administration Village Manager's office Personal services 464,924 464,924 482,113 Employee benefits 168,435 168,435 210,868 Other employee costs 23,242 23,242 16,649 Contractual services 70,376 70,376 17,842 Utilities 3,625 3,625 4,139 Commodities and supplies 6,601 6,601 6,905 Office and other equipment 225 225 225 Insurance - - 17,018 Total Village Manager's office 737,428 737,428 755,759 Legal services Contractual services 785,500 785,500 556,076 Human resources Personal services 180,594 180,594 162,123 Employee benefits 162,874 162,874 224,279 Other employee costs 59,600 59,600 37,694 Contractual services 8,900 8,900 5,783 Commodities and supplies 1,200 1,200 1,062 Total human resources 413,168 413,168 430,941 Inforination technology Personal services 555,229 555,229 480,278 Employee benefits 218,317 218,317 252,590 Other employee costs 14,141 14,141 9,500 Contractual services 715,727 715,727 598,862 Utilities 5,628 5,628 4,921 Commodities and supplies 3,645 3,645 372 Office and other equipment 17,250 17,250 15,247 Total information technology 1,529,937 1,529,937 1,361,770 (This schedule is continued on the following pages.) - 100 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual GENERAL GOVERNMENT(Continued) Village administration(Continued) Communication division Communications Personal services $ 84,545 $ 84,545 $ 84,864 Employee benefits 44,436 44,436 47,124 Other employee costs 2,900 2,900 735 Contractual services 77,317 77,317 61,967 Utilities 300 300 - Commodities and supplies 1,800 1,800 1,217 Total communications 211,298 211,298 195,907 Television services Personal services 65,774 65,774 66,434 Employee benefits 33,853 33,853 33,292 Contractual services 34,065 34,065 29,121 Utilities 1,678 1,678 765 Commodities and supplies 4,500 4,500 2,340 Office and other equipment 25,000 25,000 13,856 Total television services 164,870 164,870 145,808 Community engagement Other employee costs 8,200 8,200 - Contractual services 130,000 130,000 125,392 Utilities 920 920 1,151 Commodities and supplies 1,381 1,381 18 Total communication engagement 140,501 140,501 126,561 Total communication division 516,669 516,669 468,276 Village Clerk's office Administration and support Personal services 91,807 91,807 85,579 Employee benefits 47,743 47,743 39,833 Other employee costs 1,800 1,800 2,043 Contractual services 37,932 37,932 18,507 Utilities 839 839 382 Commodities and supplies 1,103 1,103 736 Total Village Cleric's office 181,224 181,224 147,080 Computer hardware/software Office and other equipment 37,200 37,200 13,207 Total computer hardware/software 37,200 37,200 13,207 Total Village administration 4,201,126 4.201,126 3,733,109 (This schedule is continued on the following pages.) - 101 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual GENERAL GOVERNMENT(Continued) Finance department Administration and support Personal services $ 151,367 $ 151,367 $ 155,061 Employee benefits 42,943 42,943 66,374 Other employee costs 29,050 29,050 15,829 Contractual services 254,361 254,361 198,028 Utilities 5,500 5,500 3,352 Commodities and supplies 18,450 18,450 7,516 Office and other equipment 673,211 1,194,411 1,285,031 Insurance - - 11,230 Total administration and support 1,174,882 1,696,082 1,742,421 Accounting Personal services 379,600 379,600 363,544 Employee benefits 152,977 152,977 138,191 Other employee costs 2,135 2,135 - Contractual services 3,100 3,100 1,519 Commodities and supplies 16,549 16,549 11,411 Total accounting 554,361 554,361 514,665 Insurance Personal services 38,032 38,032 38,921 Employee benefits 11,040 11,040 13,908 Insurance 417,611 417,611 22,074 Total insurance 466,683 466,683 74,903 Customer service Personal services 266,787 266,787 253,178 Employee benefits 88,957 88,957 86,138 Contractual services 72,410 72,410 55,862 Other employee costs 2,250 2,250 115 Commodities and supplies 12,240 12,240 7,818 Total customer service 442,644 442,644 403,111 Total finance department 2,638,570 3,159,770 2,735,100 Community development-administration Administration and support-economic development planning and zoning Personal services 126,206 126,206 126,683 Employee benefits 48,797 48,797 43,046 Other employee costs 4,943 4,943 4,606 Contractual services 27,000 27,000 45,700 Utilities 2,280 2,280 1,808 Insurance - - 4,991 Commodities and supplies 1,104 1,104 206 Total administration and support-economic development 210,330 210,330 227,040 planning and zoning (This schedule is continued on the following pages.) - 102 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual GENERAL GOVERNMENT(Continued) Community development-administration(Continued) Planning and zoning Personal services $ 204,217 $ 204,217 $ 192,254 Employee benefits 69,233 69,233 51,843 Other employee costs 7,903 7,903 8,617 Contractual services 49,343 49,343 11,356 Utilities 1,324 1,324 573 Commodities and supplies 16,002 16,002 8,363 Total planning and zoning 348,022 348,022 273,006 Economic development Personal services 131,282 131,282 129,204 Employee benefits 31,977 31,977 32,252 Other employee costs 1,656 1,656 530 Contractual services 90,000 90,000 42,517 Total economic development 254,915 254,915 204,503 Community development-administration Administration and support-building and inspections Personal services 304,351 304,351 241,070 Employee benefits 148,334 148,334 99,359 Other employee costs 3,037 3,037 2,041 Contractual services 27,000 27,000 44,000 Utilities 9,841 9,841 - Insurance - - 15,716 Commodities and supplies 3,059 3,059 3,169 Total administration and support-building and inspections 495,622 495,622 405,355 Total community development-administration 1,308,889 1,308,889 1,109,904 Benefit payments Contractual services 46,950 5,819 5,819 Total benefit payments 46,950 5,819 5,819 Total general government 8,363,436 8,843,505 7,743,642 PUBLIC SAFETY" Community development-code enforcement Building inspections Personal services 403,356 403,356 514,557 Employee benefits 197,750 197,750 249,789 Other employee costs 4,872 4,872 2,411 Contractual services 136,316 136,316 71,185 Utilities 9,861 9,861 9,596 Commodities and supplies 33,155 33,155 7,242 Total community development-code enforcement 785,310 785,310 854,780 (This schedule is continued on the following pages.) - 103 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual PUBLIC SAFETY(Continued) Police department Administration and support Personal services $ 804,446 $ 804,446 $ 785,432 Employee benefits 4,040,035 4,040,035 3,918,722 Other employee costs 173,900 173,900 136,939 Contractual services 111,277 123,077 75,468 Utilities 34,651 34,651 26,615 Commodities and supplies 26,912 26,912 21,595 Office and other equipment 13,060 22,060 5,714 Insurance - - 126,383 Total administration and support 5,204,281 5,225,081 5,096,868 Records Personal services 344,265 344,265 339,561 Employee benefits 148,274 148,274 159,328 Contractual services 16,670 16,670 10,102 Commodities and supplies 4,830 4,830 4,647 Office and other equipment 500 500 - Totalrecords 514,539 514,539 513,638 Patrol and traffic enforcement Personal services 7,597,320 7,512,419 7,605,588 Employee benefits 1,448,103 1,432,921 1,711,913 Contractual services 781,390 775,390 693,918 Commodities and supplies 86,210 95,990 91,258 Office and other equipment 7,325 7,325 4,280 Total patrol and traffic enforcement 9,920,348 9,824,045 10,106,957 K-9 unit Personal services - 84,901 84,899 Employee benefits 15,182 15,181 Total K-9 unit - 100,083 100,080 Crime prevention and public services Personal services 133,437 133,437 134,458 Employee benefits 33,355 33,355 34,757 Other employee costs 4,000 4,000 3,836 Contractual services 4,337 4,337 1,083 Commodities and supplies 15,985 15,985 26,274 Total crime prevention and public services 191,114 191,114 200,408 Investigative Personal services 1,607,229 1,607,229 1,471,713 Employee benefits 276,542 276,542 272,177 Contractual services 42,455 42,455 31,496 Utilities 13,923 13,923 10,164 Commodities and supplies 4,290 4,290 4,030 Office and other equipment 800 800 283 Total investigative 1,945,239 1,945,239 1,789,863 (This schedule is continued on the following pages.) - 104 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual PUBLIC SAFETY(Continued) Police department(Continued) Equipment maintenance Contractual services $ 743,019 $ 743,019 $ 720,694 Commodities and supplies 32,800 32,800 25,581 Office and other equipment 8,700 8,700 10,124 Total equipment maintenance 784,519 784,519 756,399 Total police department 18,560,040 18,584,620 18,564,213 Fire department Administration and support Personal services 668,835 668,835 618,299 Employee benefits 3,700,098 3,700,098 3,693,267 Other employee costs 47,550 47,650 38,362 Contractual services 67,348 68,648 72,410 Commodities and supplies 11,250 11,250 9,486 Office and other equipment 1,500 1,500 1,420 Insurance - - 156,840 Total administration and support 4,496,581 4,497,981 4,590,084 Fire department operations Personal services 7,502,294 7,502,294 7,586,531 Employee benefits 1,415,382 1,415,382 1,375,966 Other employee costs 91,900 89,750 63,764 Contractual services 200,793 201,693 182,118 Commodities and supplies 15,722 17,199 18,829 Office and other equipment 142,403 159,915 151,068 Total fire department operations 9,368,494 9,386,233 9,378,276 Fire prevention Personal services 275,096 275,096 265,162 Employee benefits 122,499 122,499 114,402 Other employee costs 6,005 6,005 5,011 Contractual services 10,730 9,180 8,511 Commodities and supplies 12,260 12,260 10,764 Total fire prevention 426,590 425,040 403,850 Communications Contractual services 2,700 2,700 2,594 Utilities 64,117 64,117 39,282 Commodities and supplies 1,600 1,600 1,178 Office and other equipment 17,000 17,000 16,922 Total communications 85,417 85,417 59,976 Equipment maintenance Contractual services 900,855 900,855 900,855 Total equipment maintenance 900,855 900,855 900,855 (This schedule is continued on the following pages.) - 105 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual PUBLIC SAFETY(Continued) Fie department(Continued) Emergency preparedness Personal services $ 146,020 $ 146,020 $ 148,222 Employee benefits 38,637 38,637 46,634 Other employee costs 3,060 3,060 1,833 Contractual services 4,080 4,080 5,115 Commodities and supplies 8,870 8,870 8,082 Total emergency preparedness 200,667 200,667 209,886 Paid on call Personal services 26,252 26,252 11,292 Employee benefits 1,423 1,423 798 Other employee costs 10,150 10,150 2,525 Office and other equipment 1,700 1,700 1,700 Total paid on call 39,525 39,525 16,315 Computer hardware/software Capital expenditure 35,000 35,000 27,207 Total computer hardware/software 35,000 35,000 27,207 Total fire department 15,553,129 15,570,718 15,586,449 Total public safety 34,898,479 34,940,648 35,005,442 HIGHWAYS AND STREETS Public works department Administration and support Personal services 259,352 259,352 264,177 Employee benefits 174,118 174,118 217,697 Other employee costs 31,497 31,497 30,903 Contractual services 1,096,117 1,096,117 1,092,640 Utilities 15,039 15,039 8,306 Commodities and supplies 16,126 16,126 18,098 Office and other equipment 1,605 1,605 542 Insurance - - 105,227 Total administration and support 1,593,854 1,593,854 1,737,590 Street and buildings division Administration Personal services 108,731 108,731 112,022 Employee benefits 48,976 48,976 41,992 Utilities 4,080 4,080 3,561 Commodities and supplies 270 270 - Total administration 162,057 162,057 157,575 (This schedule is continued on the following pages.) - 106 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual HIGHWAYS AND STREETS(Continued) Public works department(Continued) Street and buildings division(Continued) Maintenance-public buildings Personal services $ 433,660 $ 433,660 $ 478,609 Employee benefits 177,017 177,017 225,284 Contractual services 383,531 383,531 289,240 Utilities 58,523 58,523 49,886 Commodities and supplies 128,154 128,154 120,532 Other expenditures 54,245 54,245 - Total maintenance-public buildings 1,235,130 1,235,130 1,163,551 Sheet maintenance Personal services 133,235 133,235 126,147 Employee benefits 49,608 49,608 54,565 Contractual services 509,714 672,152 380,002 Commodities and supplies 28,667 28,667 27,603 Total street maintenance 721,224 883,662 588,317 Snow removal Personal services 333,239 333,239 336,277 Employee benefits 126,182 126,182 134,982 Contractual services 127,364 127,364 72,462 Commodities and supplies 14,265 14,265 12,787 Office and other equipment 16,236 16,236 537 Total snow removal 617,286 617,286 557,045 Storm sewer/basin maintenance Personal services 72,175 72,175 66,975 Employee benefits 24,262 24,262 55,796 Contractual services 12,831 12,831 7,906 Commodities and supplies 9,855 9,855 4,378 Total storm sewer/basin maintenance 119,123 119,123 135,055 Maintenance of state highways Personal services 32,549 32,549 28,800 Employee benefits 13,343 13,343 14,721 Contractual services 19,589 19,589 15,978 Commodities and supplies 31,670 31,670 25,320 Total maintenance of state highways 97,151 97,151 84,819 Traffic sign maintenance Personal services 87,639 87,639 92,991 Employee benefits 30,228 30,228 80,652 Commodities and supplies 25,500 25,500 25,424 Total traffic sign maintenance 143,367 143,367 199,067 Total street and buildings division 3,095,338 3,257,776 2,885,429 (This schedule is continued on the following pages.) - 107 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual HIGHWAYS AND STREETS(Continued) Public works department(Continued) Forestry division Administration and support Personal services $ 105,947 $ 105,947 $ 101,351 Employee benefits 37,084 37,084 35,170 Commodities and supplies 450 450 265 Total administration and support 143,481 143,481 136,786 Maintenance of grounds Personal services 266,581 266,581 280,304 Employee benefits 95,860 95,860 143,430 Contractual services 172,560 172,560 151,762 Commodities and supplies 9,556 9,556 7,564 Office and other equipment 49,132 49,132 43,942 Total maintenance of grounds 593,689 593,689 627,002 Forestry program Personal services 352,287 352,287 359,713 Employee benefits 144,542 144,542 144,968 Other employee costs 6,462 6,462 6,028 Contractual services 464,528 464,528 376,330 Utilities 3,423 3,423 4,654 Commodities and supplies 11,814 11,814 10,372 Total forestry program 983,056 983,056 902,065 Public grounds beautification Personal services 29,508 29,508 31,613 Employee benefits 9,818 9,818 10,165 Contractual services 2,650 2,650 2,644 Commodities and supplies 35,541 35,541 35,368 Total public grounds beautification 77,517 77,517 79,790 Total forestry division 1,797,743 1,797,743 1,745,643 Engineering division Engineering services Personal services 648,465 648,465 666,385 Employee benefits 240,722 240,722 238,896 Other employee costs 5,453 5,453 4,845 Contractual services 65,111 65,111 59,862 Utilities 5,304 5,304 5,586 Commodities and supplies 5,832 5,832 5,366 Office and other equipment 2,408 2,408 1,950 Total engineering services 973,295 973,295 982,890 (This schedule is continued on the following pages.) - 108 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual HIGHWAYS AND STREETS(Continued) Engineering division(Continued) Traffic control and street lighting Personal services $ 123,062 $ 123,062 $ 118,129 Employee benefits 52,733 52,733 54,253 Contractual services 16,799 16,799 21,079 Utilities 73,440 73,440 45,333 Commodities and supplies 27,525 27,525 26,544 Total traffic control and street lighting 293,559 293,559 265,338 Total engineering division 1,266,854 1,266,854 1,248,228 Capital expenditures Infrastructure Resurfacing/curbs 282,000 282,000 95,812 Miscellaneous-forestry 216,000 216,000 202,857 Total capital expenditures 498,000 498,000 298,669 Total highways and streets 8,251,789 8,414,227 7,915,559 HEALTH Community development-health Health inspections Personal services 183,179 183,179 165,530 Employee benefits 85,657 85,657 130,953 Other employee costs 1,423 1,423 223 Contractual services 10,106 10,106 8,386 Utilities 1,935 1,935 306 Commodities and supplies 2,848 2,848 916 Total health 285,148 285,148 306,314 WELFARE Human services department Administration and support Personal services 147,068 147,068 147,923 Employee benefits 86,867 86,867 76,263 Other employee costs 1,718 1,718 780 Contractual services 31,748 31,748 23,606 Utilities 7,170 7,170 4,391 Commodities and supplies 3,543 3,543 4,653 Office and other equipment 2,090 2,090 412 Insurance 9,574 Total administration and support 280,204 280,204 267,602 Social services Personal services 271,283 271,283 217,309 Employee benefits 107,269 107,269 74,899 Other employee costs 4,081 4,081 1,612 Commodities and supplies 531 531 27 Total social services 383,164 383,164 293,847 (This schedule is continued on the following pages.) - 109 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual WELFARE(Continued) Human services department(Continued) Nursing/health services Personal services $ 117,119 $ 117,119 $ 113,593 Employee benefits 51,411 51,411 52,890 Other employee costs 920 920 543 Contractual services 419 419 237 Commodities and supplies 5,280 5,280 3,393 Total nursing/health services 175,149 175,149 170,656 Community Connections Center Personal services 212,083 212,083 247,256 Employee benefits 84,008 84,008 95,661 Other employee costs 3,396 3,396 692 Contractual services 100,689 100,689 84,961 Utilities 4,908 4,908 2,784 Commodities and supplies 2,897 2,897 1,810 Total Community Connections Center 407,981 407,981 433,164 Total human services department 1,246,498 1,246,498 1,165,269 Community development-housing Housing inspections Personal services 229,123 229,123 128,078 Employee benefits 101,258 101,258 62,729 Other employee costs 5,295 5,295 764 Contractual services 67,750 67,750 49,844 Utilities 5,298 5,298 306 Commodities and supplies 5,372 5,372 3,622 Total community development-housing 414,096 414,096 245,343 Total welfare 1,660,594 1,660,594 1,410,612 CULTURE AND RECREATION Community}noups and miscellaneous Contractual services 177,700 177,700 190,802 Other expenditures 6,000 6,000 3,744 Total community groups and miscellaneous 183,700 183,700 194,546 Public relations-community and civic services 4th of July and civic events Personal services 155,399 155,399 148,429 Employee benefits 49,866 49,866 44,177 Contractual services 60,538 60,538 52,704 Commodities and supplies 41,341 41,341 32,737 Total 4th of July and civic events 307,144 307,144 278,047 Centennial commission Commodities and supplies - - 35 Total centennial commission 35 (This schedule is continued on the following page.) - 110 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF DETAILED EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2018 Budget Original Final Actual CULTURE AND RECREATION(Continued) Public relations-community and civic services(Continued) Holiday decorations Personal services $ 10,362 $ 10,362 $ 8,376 Employee benefits 2,831 2,831 2,488 Contractual services 74,711 74,711 62,984 Commodities and supplies 23,738 23,738 22,364 Total holiday decorations 111,642 111,642 96,212 Blood drive program Personal services 1,844 1,844 1,843 Employee benefits 142 142 141 Commodities and supplies 1,500 1,500 1,345 Total blood drive program 3,486 3,486 3,329 Total culture and recreation 605,972 605,972 572,169 TOTAL EXPENDITURES $ 54,065,418 $ 54,750,094 $ 52,953,738 (See independent auditor's report.) - 111 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL REFUSE DISPOSAL FUND SPECIAL REVENUE FUND For the Year Ended December 31, 2018 Budget Original Final Actual CHARGES FOR SERVICES Single-family service charges $ 3,200,000 $ 3,200,000 $ 3,205,703 Multi-family service charges 975,000 975,000 1,000,083 Single-family penalties 40,000 40,000 32,771 Multi-family penalties 6,000 6,000 3,858 Contract administrative fees 100,000 100,000 96,119 Yard waste cart rental - - 19,704 Recycling bins 1,000 1,000 800 Total charges for services 4,322,000 4,322,000 4,359,038 INVESTMENT INCOME 4,000 4,000 10,139 MISCELLANEOUS 11,000 11,000 37,928 TOTAL OPERATING REVENUES $ 4,337,000 $ 4,337,000 $ 4,407,105 (See independent auditor's report.) - 112 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL POLICE AND FIRE BUILDING CONSTRUCTION FUND CAPITAL PROJECTS FUND For the Year Ended December 31, 2018 Budget Original Final Actual REVENUES Investment income $ - $ 140,000 $ 140,508 Other reimbursements - 21,000 20,552 Total revenues - 161,000 161,060 EXPENDITURES Public safety Contractual services - 1,250,000 1,177,398 Capital outlay Facility construction - 75,000 65,100 Debt service Interest and fiscal charges - 726,000 726,065 Total expenditures - 2,051,000 1,968,563 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES - (1,890,000) (1,807,503) OTHER FINANCING SOURCES (USES) Issuance of debt - 32,500,000 32,499,177 Premium on issuance of debt - 1,028,000 1,028,506 Total other financing sources (uses) - 33,528,000 33,527,683 NET CHANGE IN FUND BALANCE $ - $ 31,638,000 31,720,180 FUND BALANCE, JANUARY 1 - FUND BALANCE,DECEMBER 31 $ 31,720,180 (See independent auditor's report.) - 113 - 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, 2018 Budget Original Final Actual REVENUES Taxes Property- levy $ 2,380,000 S 2,390,000 $ 2,390,000 Other taxes Home rule sales tax 1,012,518 1,012,518 1,062,104 Investment income 1,000 24,500 24,243 Intergovernmental revenue 1,618,150 1,619,150 1,619,577 Miscellaneous income - - 450 Total revenues 5,011,668 5,046,168 5,096,374 EXPENDITURES Debt service Principal retirement 3,712,771 3,671,871 3,671,871 Interest and fiscal charges 1,302,201 1,347,349 1,345,711 Total expenditures 5,014,972 5,019,220 5,017,582 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,304) 26,948 78,792 OTHER FINANCING SOURCES (USES) Issuance of debt - 5,940,000 5,940,823 Premium on issuance of debt - 496,700 496,121 Payment to escrow agent - (4,153,817) (4,153,816) Transfers in - 1,642,000 1,604,391 Total other financing sources (uses) - 3,924,883 3,887,519 NET CHANGE IN FUND BALANCE $ (3,304) $ 3,951,831 3,966,311 FUND BALANCE, JANUARY 1 184,195 FUND BALANCE,DECEMBER 31 $ 4,150,506 (See independent auditor's report.) - 114 - 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. Flood Control Construction Fund - to account for the resources to implement flood control projects throughout the Village. Financing is provided by home rule sales taxes, service charges, and investment income. Street Improvement Construction Fund - to account for the resources to reconstruct the Village's streets. Financing is provided by various taxes, licenses,permits, fees, and investment income. VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2018 Special Capital Revenue Projects Total ASSETS Cash and investments $ 3,842,406 $ 5,949,833 $ 9,792,239 Receivables Other taxes 344,959 196,257 541,216 Other 65,590 - 65,590 Due from other governments 476,245 15,487 491,732 Prepaid items 8 - 8 TOTAL ASSETS $ 4,729,208 $ 6,161,577 $ 10,890,785 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 1,134,335 $ 498,797 $ 1,633,132 Retainage payable - 85,019 85,019 Due to other funds 19,446 - 19,446 Due to other governments 9,089 - 9,089 Unearned revenue 438,036 - 438,036 Total liabilities 1,600,906 583,816 2,184,722 FUND BALANCES Nonspendable Prepaid items 8 - 8 Restricted Highways and streets 2,431,135 - 2,431,135 Public safety-police 298,936 - 298,936 Public safety- fire 398,223 - 398,223 Assigned Capital projects - 5,577,761 5,577,761 Total fund balances 3,128,302 5,577,761 8,706,063 TOTAL LIABILITIES AND FUND BALANCES $ 4,729,208 $ 6,161,577 $ 10,890,785 (See independent auditor's report.) - 115 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2018 Special Capital Revenue Projects Total REVENUES Other taxes $ 1,637,002 $ 3,731,200 $ 5,368,202 Licenses,permits, and fees - 1,600,690 1,600,690 Intergovernmental 1,720,327 50,100 1,770,427 Investment income 51,573 52,249 103,822 Other reimbursements - 91,877 91,877 Miscellaneous 95,838 284,519 380,357 Total revenues 3,504,740 5,810,635 9,315,375 EXPENDITURES Current General government 1,571,930 - 1,571,930 Public safety 104,687 - 104,687 Highways and streets 1,742,900 - 1,742,900 Welfare 387,846 - 387,846 Capital outlay - 4,562,088 4,562,088 Total expenditures 3,807,363 4,562,088 8,369,451 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (302,623) 1,248,547 945,924 OTHER FINANCING SOURCES (USES) Transfers in - 750,000 750,000 Total other financing sources (uses) - 750,000 750,000 NET CHANGE IN FUND BALANCES (302,623) 1,998,547 1,695,924 FUND BALANCES, JANUARY 1 3,430,925 3,579,214 7,010,139 FUND BALANCES, DECEMBER 31 $ 3,128,302 $ 5,577,761 $ 8,706,063 (See independent auditor's report.) - 116 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2018 Community Federal Motor Development Asset Equitable Fuel Tax Block Grant Seizure Share ASSETS Cash and investments $ 2,347,524 $ - $ 142,105 $ 20,308 Receivables Other taxes 117,649 - - - Other - - - - Due from other governments 2,412 473,833 - - Prepaid items - - - - TOTAL ASSETS $ 2,467,585 $ 473,833 $ 142,105 $ 20,308 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 27,361 $ 16,351 $ 850 $ - Due to other funds - 19,446 - - Due to other governments 9,089 - - - Unearned revenue - 438,036 - - Total liabilities 36,450 473,833 850 - FUND BALANCES Nonspendable Prepaid items - - - - Restricted Highways and streets 2,431,135 - - - Public safety-police - - 141,255 20,308 Public safety-fire - - - - Total fund balances 2,431,135 - 141,255 20,308 TOTAL LIABILITIES AND FUND BALANCES $ 2,467,585 $ 473,833 $ 142,105 $ 20,308 - 117 - Foreign DUI Fire Business Fines Insurance District Total $ 133,350 $ 398,642 $ 800,477 $ 3,842,406 - - 227,310 344,959 5,703 - 59,887 65,590 - - - 476,245 - 8 - 8 $ 139,053 $ 398,650 $ 1,087,674 $ 4,729,208 $ 1,680 $ 419 $ 1,087,674 $ 1,134,335 - - - 19,446 - - - 9,089 - - - 438,036 1,680 419 1,087,674 1,600,906 - 8 - 8 - - - 2,431,135 137,373 - - 298,936 - 398,223 - 398,223 137,373 398,231 - 3,128,302 $ 139,053 $ 398,650 $ 1,087,674 $ 4,729,208 (See independent auditor's report.) - 118 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31,2018 Community Federal Motor Development Asset Equitable Fuel Tax Block Grant Seizure Share REVENUES Taxes $ - $ - $ - $ - Intergovernmental 1,386,441 302,577 9,644 - Investment income 32,553 - 1,639 114 Miscellaneous 10,569 85,269 - - Total revenues 1,429,563 387,846 11,283 114 EXPENDITURES Current General government - - - - Public safety - - 42,936 - Highways and streets 1,742,900 - - - Welfare - 387,846 - - Total expenditures 1,742,900 387,846 42,936 - NET CHANGE IN FUND BALANCES (313,337) - (31,653) 114 FUND BALANCES,JANUARY 1 2,744,472 - 172,908 20,194 FUND BALANCES,DECEMBER 31 $ 2,431,135 $ - $ 141,255 $ 20,308 Foreign DUI Fire Business Fines Insurance District Total $ - $ 78,234 $ 1,558,768 $ 1,637,002 21,665 - - 1,720,327 311 3,794 13,162 51,573 - - - 95,838 21,976 82,028 1,571,930 3,504,740 - - 1,571,930 1,571,930 25,531 36,220 - 104,687 - - - 1,742,900 - - - 387,846 25,531 36,220 1,571,930 3,807,363 (3,555) 45,808 - (302,623) 140,928 352,423 - 3,430,925 $ 137,373 $ 398,231 $ - $ 3,128,302 (See independent auditor's report.) - 120 - 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, 2018 Budget Original Final Actual REVENUES Intergovernmental Motor fuel tax allotments $ 1,395,000 $ 1,395,000 $ 1,386,441 Investment income 5,000 5,000 32,553 Miscellaneous 15,000 15,000 10,569 Total revenues 1,415,000 1,415,000 1,429,563 EXPENDITURES Highways and streets Street division 1,468,723 1,799,382 1,742,900 Total expenditures 1,468,723 1,799,382 1,742,900 NET CHANGE IN FUND BALANCE $ (53,723) $ (384,382) (313,337) FUND BALANCE, JANUARY 1 2,744,472 FUND BALANCE, DECEMBER 31 $ 2,431,135 (See independent auditor's report.) - 121 - 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, 2018 Budget Original Final Actual HIGHWAYS AND STREETS Public works department Street division Street maintenance Contractual services $ 176,016 $ 176,016 $ 175,994 Total street division 176,016 176,016 175,994 Snow removal Contractual services 81,183 81,183 79,247 Commodities and supplies 350,000 350,000 335,020 Total snow removal 431,183 431,183 414,267 Traffic control/street lighting Contractual services 95,912 95,912 72,952 Utilities 165,612 165,612 167,487 Total traffic control/street lighting 261,524 261,524 240,439 Street improvement projects Infrastructure 600,000 930,659 912,200 Total street improvement projects 600,000 930,659 912,200 TOTAL EXPENDITURES $ 1,468,723 $ 1,799,382 $ 1,742,900 (See independent auditor's report.) - 122 - 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, 2018 Budget Original Final Actual REVENUES Intergovernmental Grant- CDBG $ 378,666 $ 412,925 $ 302,577 Miscellaneous Program income 60,000 60,000 85,269 Total revenues 438,666 472,925 387,846 EXPENDITURES Welfare Administration 7,628 40,121 33,866 Community programs 49,000 50,766 34,993 Residential rehabilitation 382,038 382,038 318,987 Total expenditures 438,666 472,925 387,846 NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 - FUND BALANCE, DECEMBER 31 $ - (See independent auditor's report.) - 123 - 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, 2018 Budget Original Final Actual WELFARE Administration and support Personal services $ - $ 27,440 $ 27,440 Employee benefits - 5,053 5,052 Other employee costs 1,104 1,104 1,114 Contractual services 5,974 5,974 250 Commodities and supplies 550 550 10 Total administration and support 7,628 40,121 33,866 Community programs Contractual services 49,000 50,766 34,993 Total community programs 49,000 50,766 34,993 Residential rehabilitation Contractual services 382,038 382,038 318,987 Total residential rehabilitation 382,038 382,038 318,987 TOTAL EXPENDITURES $ 438,666 $ 472,925 $ 387,846 (See independent auditor's report.) - 124 - 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, 2018 Budget Original Final Actual REVENUES Intergovernmental Seized assets $ 6,500 $ 6,500 $ 9,644 Investment income 500 500 1,639 Total revenues 7,000 7,000 11,283 EXPENDITURES Public safety Other employee costs 1,000 1,000 - Contractual services 15,500 16,500 10,349 Commodities and supplies 24,400 24,400 15,365 Equipment 3,000 18,000 17,222 Total expenditures 43,900 59,900 42,936 NET CHANGE IN FUND BALANCE $ (36,900) $ (52,900) (31,653) FUND BALANCE, JANUARY 1 172,908 FUND BALANCE, DECEMBER 31 $ 141,255 (See independent auditor's report.) - 125 - 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, 2018 Budget Original Final Actual REVENUES Intergovernmental Federal equitable shared funds $ 1,800 $ 1,800 $ - Investment income 200 200 114 Total revenues 2,000 2,000 114 EXPENDITURES Public safety Contractual services 1,000 1,000 - Equipment 1,000 1,000 - Total expenditures 2,000 2,000 - NET CHANGE IN FUND BALANCE $ - $ - 114 FUND BALANCE, JANUARY 1 20,194 FUND BALANCE, DECEMBER 31 $ 20,308 (See independent auditor's report.) - 126 - 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, 2018 Budget Original Final Actual REVENUES Intergovernmental DUI fines $ 25,000 $ 25,000 $ 21,665 Investment income 500 500 311 Total revenues 25,500 25,500 21,976 EXPENDITURES Public safety Patrol and traffic enforcement Other employee costs 1,000 1,000 550 Contractual services 1,000 1,000 - Equipment 1,000 24,000 24,981 Total expenditures 3,000 26,000 25,531 NET CHANGE IN FUND BALANCE $ 22,500 $ (500) (3,555) FUND BALANCE, JANUARY 1 140,928 FUND BALANCE, DECEMBER 31 $ 137,373 (See independent auditor's report.) - 127 - 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, 2018 Budget Original Final Actual REVENUES Other taxes Foreign fire insurance tax $ 90,000 $ 90,000 $ 78,234 Investment income 2,000 2,000 3,794 Total revenues 92,000 92,000 82,028 EXPENDITURES Public safety Insurance 500 500 - Other employee costs 15,000 15,000 3,731 Contractual services 15,000 15,130 10,729 Commodities and supplies 5,000 13,000 13,000 Equipment 30,000 21,870 8,760 Total expenditures 65,500 65,500 36,220 NET CHANGE IN FUND BALANCE $ 26,500 $ 26,500 45,808 FUND BALANCE, JANUARY 1 352,423 FUND BALANCE, DECEMBER 31 $ 398,231 (See independent auditor's report.) - 128 - 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, 2018 Budget Original Final Actual REVENUES Other taxes Food and beverage tax $ 420,000 $ 370,000 $ 375,172 Hotel/motel tax 245,000 245,000 227,188 Movie theatre tax 110,000 110,000 109,585 Business district tax 325,000 325,000 315,425 State sales tax 420,000 520,000 531,398 Investment income 3,000 3,000 13,162 Total revenues 1,523,000 1,573,000 1,571,930 EXPENDITURES General government 1,523,000 1,573,000 1,571,930 Total expenditures 1,523,000 1,573,000 1,571,930 NET CHANGE IN FUND BALANCE $ - $ - - FUND BALANCE, JANUARY 1 - FUND BALANCE, DECEMBER 31 $ - (See independent auditor's report.) - 129 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS December 31, 2018 Flood Street Capital Control Improvement Improvement Construction Construction Total ASSETS Cash and investments $ 2,833,642 $ 1,790,756 $ 1,325,435 $ 5,949,833 Receivables Other taxes 63,690 14,104 118,463 196,257 Due from other governments - - 15,487 15,487 TOTAL ASSETS $ 2,897,332 $ 1,804,860 $ 1,459,385 $ 6,161,577 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 436,419 $ 24,602 $ 37,776 $ 498,797 Retainage payable 46,119 38,900 - 85,019 Total liabilities 482,538 63,502 37,776 583,816 FUND BALANCES Unrestricted Assigned Capital projects 2,414,794 1,741,358 1,421,609 5,577,761 Total fund balances 2,414,794 1,741,358 1,421,609 5,577,761 TOTAL LIABILITIES AND FUND BALANCES $ 2,897,332 $ 1,804,860 $ 1,459,385 $ 6,161,577 (See independent auditor's report.) - 130 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31,2018 Flood Street Capital Control Improvement Improvement Construction Construction Total REVENUES Taxes Other $ 1,363,690 $ 302,104 $ 2,065,406 $ 3,731,200 Licenses,permits, and fees - - 1,600,690 1,600,690 Intergovernmental - - 50,100 50,100 Investment income 22,818 18,716 10,715 52,249 Other reimbursements - 20,000 71,877 91,877 Miscellaneous 56,036 50,595 177,888 284,519 Total revenues 1,442,544 391,415 3,976,676 5,810,635 EXPENDITURES Capital outlay 1,477,193 468,597 2,616,298 4,562,088 Total expenditures 1,477,193 468,597 2,616,298 4,562,088 EXCESS (DEFICIENCY)OF REVENUES OVER EXPENDITURES (34,649) (77,182) 1,360,378 1,248,547 OTHER FINANCING SOURCES (USES) Transfers in 750,000 - - 750,000 NET CHANGE 1N FUND BALANCES 715,351 (77,182) 1,360,378 1,998,547 FUND BALANCES,JANUARY 1 1,699,443 1,818,540 61,231 3,579,214 FUND BALANCES, DECEMBER 31 $ 2,414,794 $ 1,741,358 $ 1,421,609 $ 5,577,761 (See independent auditor's report.) - 131 - 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, 2018 Budget Original Final Actual REVENUES Other taxes Home rule sales tax $ 1,300,000 $ 1,300,000 $ 1,363,690 Investment income 1,000 1,000 22,818 Miscellaneous Other - 57,000 56,036 Donations 10,000 10,000 - Total revenues 1,311,000 1,368,000 1,442,544 EXPENDITURES Capital outlay Equipment 412,247 522,247 343,353 Building improvements 480,000 538,225 339,283 Infrastructure 1,457,030 2,050,151 794,557 Total expenditures 2,349,277 3,110,623 1,477,193 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,038,277) (1,742,623) (34,649) OTHER FINANCING SOURCES (USES) Transfers in 750,000 750,000 750,000 NET CHANGE IN FUND BALANCE $ (288,277) $ (992,623) 715,351 FUND BALANCE, JANUARY 1 1,699,443 FUND BALANCE,DECEMBER 31 $ 2,414,794 (See independent auditor's report.) - 132 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL CAPITAL IMPROVEMENT FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual EXPENDITURES Equipment Cable TV equipment $ - $ - $ 37,492 Avid edit system 40,000 40,000 28,046 Car lift 150,000 150,000 48,336 Paramedic equipment 40,000 40,000 19,955 Police department software - 110,000 53,432 Fire notification system 55,000 55,000 26,546 Radio equipment-police/fire/public works 127,247 127,247 129,546 Total equipment 412,247 522,247 343,353 Building improvements Public works facility improvements 105,000 105,000 9,998 HVAC replacements 275,000 333,225 255,818 Other public building improvements 100,000 100,000 73,467 Total building improvements 480,000 538,225 339,283 Infrastructure D/T Streetscape Program - 68,902 - Residential street lights 125,000 156,181 120,900 Residential street light improvements 224,000 224,000 204,878 Contractual services-brick sidewalks 78,030 78,030 76,313 Corridor improvements 200,000 300,000 15,500 Corridor street lights 305,000 305,000 - Jogging path - 15,000 - Kensington road improvement - 88,086 65,435 Kensignton road bike path 95,000 95,000 - Brick sidewalks 30,000 30,000 19,250 Detention pond improvements - 289,952 208,171 Bridge rehab 175,000 175,000 42,400 Pedestrian bridge 125,000 125,000 - Parking deck maintenance 100,000 100,000 41,710 Total infrastructure 1,457,030 2,050,151 794,557 TOTAL EXPENDITURES $ 2,349,277 $ 3,110,623 $ 1,477,193 (See independent auditor's report.) - 133 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FLOOD CONTROL CONSTRUCTION FUND NONMAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2018 Budget Original Final Actual REVENUES Taxes Other taxes Home rule sales tax $ 288,000 $ 288,000 $ 302,104 Miscellaneous Fees 25,000 25,000 50,595 Other reimbursements 20,000 20,000 20,000 Investment income 6,000 6,000 18,716 Total revenues 339,000 339,000 391,415 EXPENDITURES Capital outlay Public improvements Infrastructure 762,102 1,063,322 435,008 Other 57,856 57,856 33,589 Total expenditures 819,958 1,121,178 468,597 NET CHANGE IN FUND BALANCE $ (480,958) $ (782,178) (77,182) FUND BALANCE, JANUARY 1 1,818,540 FUND BALANCE, DECEMBER 31 $ 1,741,358 (See independent auditor's report.) - 134 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FLOOD CONTROL CONSTRUCTION FUND NONMAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2018 Budget Original Final Actual CAPITAL OUTLAY Public improvements Infrastructure Levee repairs $ 43,696 $ 43,696 $ 42,174 Culvert and ditch 30,600 30,600 15,224 Levee supplies 5,306 5,306 4,351 Creek bank stabilization 25,000 46,343 27,734 Creek tree trimming 25,500 25,500 22,392 Private property drainage 120,000 120,000 103,975 Weller Creek improvements 50,000 50,000 2,664 Storm sewer inspection program 102,000 155,775 45,108 Levee 37 360,000 410,546 88,746 Storm sewer improvements - 175,556 82,640 Total infrastructure 762,102 1,063,322 435,008 Other Electricity 2,550 2,550 2,132 Residential reimbursements 5,306 5,306 1,000 Contractual services 50,000 50,000 30,457 Total other 57,856 57,856 33,589 TOTAL EXPENDITURES $ 819,958 $ 11121,178 $ 468,597 (See independent auditor's report.) - 135 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL STREET IMPROVEMENT CONSTRUCTION FUND NONMAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2018 Budget Original Final Actual REVENUES Other taxes Home rule sales tax $ 1,300,000 $ 1,300,000 $ 1,363,690 Municipal motor fuel tax 680,000 680,000 701,716 License fees 1,650,000 1,650,000 1,600,690 Intergovernmental - - 50,100 Investment income 2,000 2,000 10,715 Other reimbursements - 72,000 71,877 Miscellaneous income 30,000 190,000 177,888 Total revenues 3,662,000 3,894,000 3,976,676 EXPENDITURES Capital outlay Contractual services 40,000 40,000 18,631 Infrastructure Street resurfacing 3,777,000 3,777,000 2,597,667 Total expenditures 3,817,000 3,817,000 2,616,298 NET CHANGE IN FUND BALANCE $ (155,000) $ 77,000 1,360,378 FUND BALANCE, JANUARY 1 61,231 FUND BALANCE, DECEMBER 31 $ 1,421,609 (See independent auditor's report.) - 136 - 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 31,2018 Budget Original Final Actual OPERATING REVENUES Charges for services $ 14,574,200 $ 14,199,200 $ 14,224,032 Total operating revenues 14,574,200 14,199,200 14,224,032 OPERATING EXPENSES Administration and maintenance 18,488,910 18,232,410 15,925,804 Total operating expenses 18,488,910 18,232,410 15,925,804 OPERATING INCOME(LOSS) (3,914,710) (4,033,210) (1,701,772) NON-OPERATING REVENUES(EXPENSES) Property taxes - - (5,037) Loss on the sale of capital assets - - (61) Interest and fiscal charges (182,546) (374,546) (370,031) Investment income 16,100 163,100 191,465 Proceeds from issuance of debt 5,000,000 5,000,000 5,075,920 Principal payments (115,000) (295,000) (305,000) Other income 100,000 100,000 83,369 Total non-operating revenues(expenses) 4,818,554 4,593,554 4,670,625 CHANGE IN NET POSITION-BUDGETARY BASIS $ 903,844 $ 560,344 2,968,853 ADJUSTNIENTS TO GAAP BASIS Depreciation (696,008) Capital assets capitalized 1,577,325 Proceeds from issuance of debt (5,075,920) Principal payments 305,000 Total adjustments to GAAP basis (3,889,603) CHANGE IN NET POSITION-GAAP BASIS (920,750) NET POSITION,JANUARY 1 41,327,962 Change in accounting principle (249,803) NET POSITION,JANUARY 1,RESTATED 41,078,159 NET POSITION,DECEMBER 31 $ 40,157,409 (See independent auditor's report.) - 137 - 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, 2018 Budget Original Final Actual CHARGES FOR SERVICES Water sales $ 11,537,200 $ 11,249,200 $ 11,304,051 Sewer fees 2,185,000 2,780,000 2,792,522 Sewer construction charge 682,000 - - Water penalties 100,000 100,000 82,724 Water meter fees 20,000 20,000 16,430 Water and sewer taps 20,000 20,000 6,530 Sewer penalties 30,000 30,000 21,775 TOTAL OPERATING REVENUES $ 14,574,200 $ 14,199,200 $ 14,224,032 (See independent auditor's report.) - 138 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL WATER AND SEWER FUND MAJOR ENTERPRISE FUND For the Year Ended December 31,2018 Budget Original Final Actual ADMINISTRATION AND MAINTENANCE Administration and support Personal services $ 564,305 $ 564,305 $ 562,807 Employee benefits 284,165 284,165 313,404 Other employee costs 43,599 43,599 43,352 Contractual services 301,307 301,307 206,922 Utilities 50,666 50,666 24,088 Insurance 94,942 94,942 99,975 Commodities and supplies 14,830 14,830 10,990 Capital expenditures 2,381 2,381 1,869 Total administration and support 1,356,195 1,356,195 1,263,407 Maintenance of buildings Personal services 179,657 179,657 181,287 Employee benefits 79,869 79,869 89,329 Contractual services 17,858 17,858 8,577 Utilities 6,494 6,494 5,086 Commodities and supplies 1,623 1,623 1,595 Total maintenance of buildings 285,501 285,501 285,874 Maintenance of grounds Personal services 70,018 70,018 64,264 Employee benefits 21,573 21,573 23,711 Contractual services 51,627 51,627 50,470 Commodities and supplies 6,401 6,401 5,831 Total maintenance of grounds 149,619 149,619 144,276 Water supply maintenance and repair Personal services 410,244 410,244 443,441 Employee benefits 166,457 166,457 230,645 Contractual services 129,783 129,783 92,073 Utilities 90,203 90,203 74,103 Commodities and supplies 85,320 85,320 45,338 Distribution system 51,000 51,000 2,400 Total water supply maintenance and repair 933,007 933,007 888,000 (This schedule is continued on the following pages.) - 139 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL(Continued) WATER AND SEWER FUND MAJOR ENTERPRISE FUND For the Year Ended December 31,2018 Budget Original Final Actual ADMINISTRATION AND MAINTENANCE (Continued) Water distribution maintenance and repair Personal services $ 314,392 $ 314,392 $ 320,118 Employee benefits 99,652 99,652 115,042 Contractual services 284,162 284,162 216,085 Commodities and supplies 80,469 80,469 84,546 Distribution systems 36,414 36,414 - Capital expenditures 1,060 1,060 1,060 Total water distribution maintenance and repair 816,149 816,149 736,851 Water valve and hydrant maintenance Personal services 289,245 289,245 273,943 Employee benefits 94,990 94,990 96,721 Contractual services 48,391 48,391 45,984 Commodities and supplies 108,947 108,947 89,654 Total water valve and hydrant maintenance 541,573 541,573 506,302 Water meter installation,repair,and replacement Personal services 194,163 194,163 198,889 Employee benefits 69,790 69,790 77,644 Contractual services 115,624 115,624 113,239 Commodities and supplies 3,368 3,368 3,177 Capital expenditures 30,000 30,000 103,495 Total water meter installation,repair, and replacement 412,945 412,945 496,444 Equipment maintenance Contractual services 925,078 925,078 925,078 Total equipment maintenance 925,078 925,078 925,078 Sanitary sewer maintenance and repair Personal services 296,124 296,124 252,338 Employee benefits 112,727 112,727 114,623 Contractual services 220,052 220,052 171,035 Utilities 23,929 23,929 13,330 Commodities and supplies 29,011 29,011 19,518 Total sanitary sewer maintenance and repair 681,843 681,843 570,844 (This schedule is continued on the following page.) - 140 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL(Continued) WATER AND SEWER FUND MAJOR ENTERPRISE FUND For the Year Ended December 31,2018 Budget Original Final Actual ADMINISTRATION AND MAINTENANCE (Continued) Water system improvements Capital expenditures $ 3,065,000 $ 3,261,000 $ 1,674,540 Total water system improvements 3,065,000 3,261,000 1,674,540 Sanitary system improvements Capital expenditures 1,650,000 1,797,500 1,044,601 Total sanitary system improvements 1,650,000 1,797,500 1,044,601 Storm sewer improvements Capital expenditures 800,000 800,000 679,848 Total storm sewer improvements 800,000 800,000 679,848 Improvements to public buildings Capital expenditures 80,000 80,000 67,562 Total improvements to public buildings 80,000 80,000 67,562 Lake Michigan water acquisition Contractual services 6,792,000 6,192,000 6,642,177 Total Lake Michigan water acquisition 6,792,000 6,192,000 6,642,177 Total administration and maintenance 18,488,910 18,232,410 15,925,804 TOTAL OPERATING EXPENSES $ 18,488,910 $ 18,232,410 $_15,925,804 (See independent auditor's report.) - 141 - 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 31,2018 Parking Village System Parking Revenue System Total CURRENT ASSETS Cash and investments $ 169,785 $ 408,582 $ 578,367 Total current assets 169,785 408,582 578,367 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 169,785 640,936 810,721 CURRENT LIABILITIES Accounts payable 20,961 1,882 22,843 Accrued payroll 964 1,286 2,250 Unearned revenues 17,840 17,975 35,815 Compensated absences payable 398 529 927 Total OPEB liability 76 529 605 Total current liabilities 40,239 22,201 62,440 LONG-TERM LIABILITIES Compensated absences payable 1,591 2,116 3,707 Total OPEB liability 1,882 13,102 14,984 Total long-term liabilities 3,473 15,218 18,691 Total liabilities 43,712 37,419 81,131 DEFERRED INFLOWS OF RESOURCES OPEB items 457 3,180 3,637 Total liabilities and deferred inflows of resources 44,169 40,599 84,768 NET POSITION Investment in capital assets - 232,354 232,354 Unrestricted 125,616 367,983 493,599 TOTAL NET POSITION $ 125,616 $ 600,337 $ 725,953 (See independent auditor's report.) - 142 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2018 Parking Village System Parking Revenue System Total OPERATING REVENUES Charges for services Parking fees $ 155,249 $ 176,466 $ 331,715 Rental fees - 6,600 6,600 Convenience fees 1,201 3,044 4,245 Total operating revenues 156,450 186,110 342,560 OPERATING EXPENSES Administration, maintenance, and improvements 178,443 133,293 311,736 Total operating expenses 178,443 133,293 311,736 OPERATING INCOME (LOSS) (21,993) 52,817 30,824 NON-OPERATING REVENUES (EXPENSES) Investment income 1,703 3,649 5,352 Total non-operating revenues (expenses) 1,703 3,649 5,352 CHANGE IN NET POSITION (20,290) 56,466 36,176 NET POSITION, JANUARY 1 147,461 557,239 704,700 Change in accounting principle (1,555) (13,368) (14,923) NET POSITION, JANUARY 1, RESTATED 145,906 543,871 689,777 NET POSITION,DECEMBER 31 $ 125,616 $ 600,337 $ 725,953 (See independent auditor's report.) - 143 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2018 Parking Village System Parking Revenue System Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 157,729 $ 182,126 $ 339,855 Receipts from miscellaneous revenues 1,201 3,044 4,245 Payments to suppliers (129,827) (76,609) (206,436) Payments to employees (39,087) (57,185) (96,272) Net cash from operating activities (9,984) 51,376 41,392 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES None - - - 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 1,703 3,649 5,352 Net cash from investing activities 1,703 3,649 5,352 NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS (8,281) 55,025 46,744 CASH AND CASH EQUIVALENTS, JANUARY ] 178,066 353,557 531,623 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 169,785 $ 408,582 $ 578,367 (This statement is continued on the following page.) - 144 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2018 Parking Village System Parking Revenue System Total RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) S (21,993) $ 52,817 S 30,824 Adjustments to reconcile operating income to net cash from operating activities Changes in assets and liabilities Accounts payable 10,089 (12) 10,077 Accrued payroll and compensated absences (611) (842) (1,453) OPEB items 51 353 404 Unearned revenues 2,480 (940) 1,540 NET CASH FROM OPERATING ACTIVITIES $ (9,984) $ 51,376 $ 41,392 (See independent auditor's report.) - 145 - 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, 2018 Budget Original Final Actual OPERATING REVENUES Charges for services Parking fees $ 156,000 $ 156,000 $ 155,249 Convenience fees 1,000 1,000 1,201 Total operating revenues 157,000 157,000 156,450 OPERATING EXPENSES Administration, maintenance, and improvements 173,209 203,209 178,443 Total operating expenses 173,209 203,209 178,443 OPERATING INCOME (LOSS) (16,209) (46,209) (21,993) NON-OPERATING REVENUES (EXPENSES) Investment income 500 500 1,703 Total non-operating revenues (expenses) 500 500 1,703 CHANGE IN NET POSITION $ 15,709 $ 45,709 (20,290) NET POSITION, JANUARY 1 147,461 Change in accounting principle (1,555) NET POSITION, JANUARY 1, RESTATED 145,906 NET POSITION, DECEMBER 31 $ 125,616 (See independent auditor's report.) - 146 - 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, 2018 Budget Original Final Actual ADMINISTRATION, MAINTENANCE, AND IMPROVEMENTS Personal services $ 28,275 $ 28,275 $ 28,703 Employee benefits 13,097 13,097 12,763 Contractual services 108,898 108,898 94,767 Utilities 11,387 11,387 5,976 Insurance 967 967 248 Commodities and supplies 10,585 10,585 6,865 Capital expenditures - 30,000 29,121 TOTAL OPERATING EXPENSES $ 173,209 $ 203,209 $ 178,443 (See independent auditor's report.) - 147 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION- BUDGET AND ACTUAL VILLAGE PARKING SYSTEM FUND NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual OPERATING REVENUES Charges for services Parking fees $ 187,000 $ 187,000 $ 176,466 Rental fees 6,600 6,600 6,600 Convenience fees 3,000 3,000 3,044 Total operating revenues 196,600 196,600 186,110 OPERATING EXPENSES Administration,maintenance, and improvements 176,167 176,167 133,293 Total operating expenses 176,167 176,167 133,293 OPERATING INCOME 20,433 20,433 52,817 NON-OPERATING REVENUES (EXPENSES) Investment income 1,000 1,000 3,649 Total non-operating revenues (expenses) 1,000 1,000 3,649 CHANGE IN NET POSITION $ 21,433 $ 21,433 56,466 NET POSITION, JANUARY 1 557,239 Change in accounting principle (13,368) NET POSITION, JANUARY 1, RESTATED 543,871 NET POSITION, DECEMBER 31 $ 600,337 (See independent auditor's report.) - 148 - 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, 2018 Budget Original Final Actual ADMINISTRATION, MAINTENANCE, AND IMPROVEMENTS Personal services $ 38,677 $ 38,677 $ 39,187 Employee benefits 17,705 17,705 17,508 Contractual services 61,073 61,073 40,774 Insurance 654 654 242 Commodities and supplies 552 552 552 Capital expenditures 57,506 57,506 35,030 TOTAL OPERATING EXPENSES $ 176,167 $ 176,167 $ 133,293 (See independent auditor's report.) - 149 - 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. VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31,2018 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total CURRENT ASSETS Cash and investments $ 747,044 $ 1,556,735 $ 8,977,216 $ 488,392 $ 11,769,387 Receivables Accrued interest - - 4,362 - 4,362 Other 9,433 1,914 11,347 Due from other governments - 2,782 9,365 12,147 Prepaid items 122,300 - 12 122,312 Inventories - - - 324,259 324,259 Total current assets 747,044 1,679,035 8,993,793 823,942 12,243,814 NONCURRENT ASSETS Deposits-insurance - 2,663,925 - - 2,663,925 CAPITAL ASSETS Capital assets not being depreciated - - 2,109,186 - 2,109,186 Capital assets being depreciated,cost 133,797 13,360,982 92,062 13,586,841 Accumulated depreciation (99,525) (8,174,355) (92,062) (8,365,942) Net capital assets 34,272 7,295,813 - 7,330,085 Total assets 781,316 4,342,960 16,289,606 823,942 22,237,824 CURRENT LIABILITIES Accounts payable 16,288 51,997 13,877 36,356 118,518 Accrued payroll - - - 30,558 30,558 Claims payable 556,605 - 556,605 Other payables 17,312 - 17,312 Compensated absences payable - 20,004 20,004 Total OPEB liability - - - 8,190 8,190 Total current liabilities 16,288 625,914 13,877 95,108 751,187 LONG-TERM LIABILITIES Compensated absences payable - - - 80,018 80,018 Claims payable 38,914 - 38,914 Total OPEB liability - 202,860 202,860 Total Ion-term liabilities 38,914 282,878 321,792 Total liabilities 16,288 664,828 13,877 377,986 1,072,979 DEFERRED INFLOWS OF RESOURCES OPEB items - - - 49,233 49,233 Total liabilities and deferred inflows of resources 16,288 664,828 13,877 427,219 1,122,212 NET POSITION Investment in capital assets 34,272 - 7,295,813 - 7,330,085 Unrestricted 730,756 3,678,132 8,979,916 396,723 13,785,527 TOTAL NET POSITION $ 765,028 $ 3,678,132 S 16,275,729 $ 396,723 $ 21,115,612 (See independent auditor's report.) - 150 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF REVENUES,EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31,2018 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total OPERATING REVENUES Charges for services $ 205,097 $ 7,094,913 $ 1,622,087 $ 2,040,827 $ 10,962,924 Contributions - 1,708,941 - - 1,708,941 Miscellaneous - 19,337 - - 19,337 Total operating revenues 205,097 8,823,191 1,622,087 2,040,827 12,691,202 OPERATING EXPENSES Administration and maintenance 146,625 411,307 5,598 2,240,779 2,804,309 Insurance and claims - 7,740,158 - - 7,740,158 Depreciation 13,709 - 806,515 - 820,224 Total operating expenses 160,334 8,151,465 812,113 2,240,779 11,364,691 OPERATING INCOME(LOSS) 44,763 671,726 809,974 (199,952) 1,326,511 NON-OPERATING REVENUES(EXPENSES) Investment income 6,768 20,944 112,771 6,568 147,051 Gain(loss)on disposal of capital assets - - 106,814 1,537 108,351 Total non-operating revenues(expenses) 6,768 20,944 219,585 8,105 255,402 CHANGES IN NET POSITION 51,531 692,670 1,029,559 (191,847) 1,581,913 NET POSITION,JANUARY 1 713,497 2,985,462 15,246,170 791,696 19,736,825 Change in accounting principle - - - (203,126) (203,126) NET POSITION,JANUARY 1,RESTATED 713,497 2,985,462 15,246,170 588,570 19,533,699 NET POSITION,DECEMBER 31 $ 765,028 $ 3,678,132 $ 16,275,729 $ 396,723 $ 21,115,612 (See independent auditor's report.) - 151 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31,2018 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ - $ 3,003,942 $ - $ - $ 3,003,942 Receipts from interfund services 205,097 5,799,912 1,611,300 2,040,827 9,657,136 Miscellaneous receipts - 19,337 910 - 20,247 Payments to suppliers (136,074) (9,500,937) (12,346) (768,178) (10,417,535) Payments to employees - - - (1,562,051) (1,562,051) Net cash from operating activities 69,023 (677,746) 1,599,864 (289,402) 701,739 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES None - - - - - Net cash from noncapital financing activities - - - - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - - 106,814 1,537 108,351 Acquisition of capital assets - - (1,401,969) - (1,401,969) Net cash from capital and related financing activities - - (1,295,155) 1,537 (1,293,618) CASH FLOWS FROM INVESTING ACTIVITIES Investment income 6,768 20,944 116,569 6,568 150,849 Net cash from investing activities 6,768 20,944 116,569 6,568 150,849 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 75,791 (656,802) 421,278 (281,297) (441,030) CASH AND CASH EQUIVALENTS, JANUARY 1 671,253 2,213,537 8,555,938 769,689 12,210,417 CASH AND CASH EQUIVALENTS, DECEMBER31 $ 747,044 $ 1,556,735 $ 8,977,216 $ 488,392 $ 11,769,387 (This statement is continued on the following page.) - 152 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF CASH FLOWS(Continued) INTERNAL SERVICE FUNDS For the Year Ended December 31,2018 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ 44,763 $ 671,726 $ 809,974 $ (199,952) $ 1,326,511 Adjustments to reconcile operating income(loss)to net cash from operating activities Depreciation 13,709 - 806,515 - 820,224 Changes in assets and liabilities Receivables - 22,615 (9,877) (1,577) 11,161 Inventories - - - (16,026) (16,026) Prepaid items - 43,386 - (1) 43,385 Deposits-insurance - (473,851) - - (473,851) Accounts and others payable 10,551 2,529 (6,748) (14,834) (8,502) Accrued payroll and compensated absences - - - (62,475) (62,475) OPEB items - - - 5,463 5,463 Claims payable - (944,151) - - (944,151) NET CASH FROM OPERATING ACTIVITIES $ 69,023 $ (677,746) $ 1,599,864 $ (289,402) $ 701,739 (See independent auditor's report.) - 153 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL COMPUTER REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual OPERATING REVENUES Charges for services Refuse Disposal Fund $ 1,000 $ 1,000 $ 1,000 Water and Sewer Fund 18,000 18,000 18,000 General Fund 186,097 186,097 186,097 Total operating revenues 205,097 205,097 205,097 OPERATING EXPENSES Administration Capital outlay 295,515 295,515 146,625 Depreciation - - 13,709 Total operating expenses 295,515 295,515 160,334 OPERATING INCOME (LOSS) (90,418) (90,418) 44,763 NON-OPERATING REVENUES (EXPENSES) Investment income 1,500 1,500 6,768 CHANGE IN NET POSITION $ (88,918) $ (88,918) 51,531 NET POSITION, JANUARY 1 713,497 NET POSITION, DECEMBER 31 $ 765,028 (See independent auditor's report.) - 154 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMPUTER REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual ADMINISTRATION Capital outlay $ 295,515 $ 295,515 $ 146,625 Total administration 295,515 295,515 146,625 Depreciation - - 13,709 TOTAL OPERATING EXPENSES $ 295,515 $ 295,515 $ 160,334 (See independent auditor's report.) - 155 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL RISK MANAGEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual OPERATING REVENUES Charges for services $ 7,164,350 $ 7,164,350 $ 7,094,913 Contributions 1,582,028 1,582,028 1,708,941 Miscellaneous 1,500 1,500 19,337 Total operating revenues 8,747,878 8,747,878 8,823,191 OPERATING EXPENSES Administration 437,512 437,512 411,307 Insurance and claims 8,175,826 8,610,501 7,740,158 Total operating expenses 8,613,338 9,048,013 8,151,465 OPERATING INCOME (LOSS) 134,540 (300,135) 671,726 NON-OPERATING REVENUES (EXPENSES) Investment income 13,000 13,000 20,944 CHANGE IN NET POSITION $ 147,540 $ (287,135) 692,670 NET POSITION, JANUARY 1 2,985,462 NET POSITION, DECEMBER 31 $ 3,678,132 (See independent auditor's report.) - 156 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL RISK MANAGEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual OPERATING REVENUES Charges for services General Fund $ 6,043,417 $ 6,043,417 $ 5,876,947 Refuse Disposal Fund 33,136 33,136 12,530 Water and Sewer Fund 151,217 151,217 213,588 Parking System Revenue Fund 967 967 527 Village Parking Fund 654 654 514 Vehicle Maintenance Fund 23,959 23,959 21,126 Library 911,000 911,000 969,681 Total charges for services 7,164,350 7,164,350 7,094,913 Contributions Employee Health insurance 655,500 655,500 630,677 Dental insurance 115,000 115,000 128,642 Additional life insurance 26,528 26,528 24,809 Retiree Health insurance 758,000 758,000 892,619 Dental insurnace 27,000 27,000 32,194 Total contributions 1,582,028 1,582,028 1,708,941 Miscellaneous Other reimbursements 1,000 1,000 19,337 Miscellaneous income 500 500 - Total miscellaneous 1,500 1,500 19,337 TOTAL OPERATING REVENUES $ 8,747,878 $ 8,747,878 $ 8,823,191 (See independent auditor's report.) - 157 - VILLAGE OF MOUNT PROSPECT,ILLINOIS SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL RISK MANAGEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31,2018 Budget Original Final Actual ADMINISTRATION Casualty and property program Claims administration s 10,000 S 10,000 S 5,751 Other equipment - - 1,113 Other contractual services 17,000 17,000 11,198 Total casualty and property program 27,000 27,000 18,062 Medical program Claims administration 337,512 337,512 361,712 Workers'compensation Claims administration 73,000 73,000 31,533 Total administration 437,512 437,512 411,307 INSURANCE AND CLAIMS Casualty and property program Property insurance 97,000 - - Liability insurance - 639,342 639,342 HELP excess liability insurance 130,000 43,286 43,286 Workers'compensation insurance 125,000 2,047 2,047 Faithful performance insurance 4,000 - - Surety bonds 500 500 100 Other insurance 3,000 3,000 225 Property claims 1,000 1,000 21,272 Liability claims 100,000 206,000 219,851 Workers'compensation claims 500,000 500,000 (209,383) Auto claims 50,000 50,000 22,611 Village property claims 10,000 10,000 - Unemployment compensation claims 10,000 10,000 1,739 Tree hazard study 10,000 10,000 5,000 Other claims 10,000 10,000 - Total casualty and property program 1,050,500 1,485,175 746,090 Medical program Medical expense-HMO plan 1,283,183 1,283,183 1,246,650 Medical expense-indemnity plan 5,516,683 5,516,683 5,433,123 Medical expense-dental 256,282 256,282 258,070 Health and wellness supplies 20,000 20,000 8,668 Life insurance 49,178 49,178 47,557 Total medical program 7,125,326 7,125,326 6,994,068 Total insurance and claims 8,175,826 8,610,501 7,740,158 TOTAL OPERATING EXPENSES $ 8,613,338 $ 9,048,013 $ 8,151,465 (See independent auditor's report.) - 158 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual OPERATING REVENUES Charges for services $ 1,619,300 $ 1,619,300 $ 1,622,087 Total operating revenues 1,619,300 1,619,300 1,622,087 OPERATING EXPENSES Administration - - 5,598 Depreciation - - 806,515 Total operating expenses - - 812,113 OPERATING INCOME 1,619,300 1,619,300 809,974 NON-OPERATING REVENUES (EXPENSES) Investment income 50,000 121,000 112,771 Gain on sale of capital assets 65,000 134,000 106,814 Total non-operating revenues (expenses) 115,000 255,000 219,585 CHANGE IN NET POSITION $ 1,734,300 $ 1,874,300 $ 1,029,559 NET POSITION, JANUARY 1 15,246,170 NET POSITION, DECEMBER 31 $ 16,275,729 (See independent auditor's report.) - 159 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual CHARGES FOR SERVICES General Fund Manager's office $ 3,300 $ 3,300 $ 3,300 Community development-planning 1,500 1,500 1,500 Community development- building 8,900 8,900 8,900 Community development- housing 7,800 7,800 7,800 Community development- health 1,500 1,500 1,500 Police department 136,800 136,800 136,800 Fire department 578,200 578,200 578,200 Public works department 423,900 423,900 423,900 Engineering division 12,400 12,400 12,400 Human services 700 700 700 Water and Sewer Fund 436,300 436,300 436,300 Other fee 8,000 8,000 10,787 TOTAL OPERATING REVENUE $ 1,619,300 $ 1,619,300 $ 1,622,087 (See independent auditor's report.) - 160 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual OPERATING EXPENSES Administration Capital outlay-police vehicles $ 12,000 $ 101,002 $ 32,072 Capital outlay- CDBG vehicles 36,000 36,000 20,265 Capital outlay- fire vehicles 1,569,000 1,569,000 731,514 Capital outlay-public works 769,000 1,252,444 650,715 Less capital assets capitalized (2,386,000) (2,958,446) (1,428,968) Total administration - - 5,598 Depreciation - - 806,515 TOTAL OPERATING EXPENSES $ - $ - $ 812,113 (See independent auditor's report.) - 161 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual OPERATING REVENUES Charges for services $ 2,040,827 $ 2,040,827 $ 2,040,827 Total operating revenues 2,040,827 2,040,827 2,040,827 OPERATING EXPENSES Administration and maintenance 2,056,210 2,299,210 2,240,779 Total operating expenses 2,056,210 2,299,210 2,240,779 OPERATING INCOME (LOSS) (15,383) (258,383) (199,952) NON-OPERATING REVENUES (EXPENSES) Proceeds from sale of capital assets - - 1,537 Investment income 3,000 3,000 6,568 Total non-operating revenues (expenses) 3,000 3,000 8,105 CHANGE IN NET POSITION $ (12,383) $ (255,383) (191,847) NET POSITION, JANUARY 1 791,696 Change in accounting principle (203,126) NET POSITION, JANUARY 1, RESTATED 588,570 NET POSITION, DECEMBER 31 $ 396,723 (See independent auditor's report.) - 162 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual CHARGES FOR SERVICES General Fund Manager's office $ 3,061 $ 3,061 $ 3,061 Television services division 3,265 3,265 3,265 Community development-planning 3,061 3,061 3,061 Community development- building 4,286 4,286 4,286 Community development- housing 21,429 21,429 21,429 Community development- health 3,061 3,061 3,061 Police department 519,799 519,799 519,799 Fire department 322,655 322,655 322,655 Public works department 635,106 635,106 635,106 Engineering division 33,265 33,265 33,265 Human service charges 3,061 3,061 3,061 Water and Sewer Fund 488,778 488,778 488,778 TOTAL OPERATING REVENUES $ 2,040,827 $ 2,040,827 $ 2,040,827 (See independent auditor's report.) - 163 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Budget Original Final Actual ADMINISTRATION AND MAINTENANCE Vehicle division administration Personal services $ 118,142 $ 118,142 $ 120,002 Employee benefits 66,471 66,471 11,580 Other employee costs 4,085 4,085 3,984 Contractual services 10,997 10,997 28,170 Utilities 3,325 3,325 5,071 Commodities and supplies 2,036 2,036 1,834 Office equipment 602 602 298 Total vehicle division administration 205,658 205,658 170,939 Vehicle maintenance program Personal services 890,290 937,290 929,505 Employee benefits 338,852 450,852 445,431 Contractual services 97,803 97,803 95,166 Commodities and supplies 519,743 603,743 596,234 Other equipment 3,864 3,864 3,504 Total vehicle maintenance program 1,850,552 2,093,552 2,069,840 Total administration and maintenance 2,056,210 2,299,210 2,240,779 TOTAL OPERATING EXPENSES $ 2,056,210 S 2,299,210 $ 2,240,779 (See independent auditor's report.) - 164 - 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: the 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: the 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. VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF NET POSITION PENSION TRUST FUNDS December 31, 2018 Police Firefighters' Pension Pension Total ASSETS Cash and cash equivalents $ 1,018,476 $ 1,332,600 $ 2,351,076 Investments State and local obligations 2,257,990 738,000 2,995,990 U.S. Government and U.S. agency obligations 10,972,139 14,163,705 25,135,844 Corporate bonds and obligations 9,374,108 9,167,785 18,541,893 Real estate - 6,085,331 6,085,331 Mutual funds 42,656,272 30,804,914 73,461,186 Total cash and investments 66,278,985 62,292,335 128,571,320 Accrued interest receivable 135,485 138,854 274,339 Prepaids 1,162 1,670 2,832 Total assets 66,415,632 62,432,859 128,848,491 LIABILITIES Accounts payable 39,843 33,202 73,045 Due to other funds 1,681 1,127 2,808 Total liabilities 41,524 34,329 75,853 NET POSITION RESTRICTED FOR PENSIONS $ 66,374,108 $ 62,398,530 $ 128,772,638 (See independent auditor's report.) - 165 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2018 Police Firefighters' Pension Pension Total ADDITIONS Contributions Employer $ 3,608,602 $ 3,332,773 $ 6,941,375 Plan members 838,873 688,000 1,526,873 Other 20 - 20 Total contributions 4,447,495 4,020,773 8,468,268 Investment income Interest earned 762,164 697,640 1,459,804 Net change in fair value (4,332,402) (2,513,393) (6,845,795) Less investment expenses (126,918) (98,261) (225,179) Net investment income (3,697,156) (1,914,014) (5,611,170) Total additions 750,339 2,106,759 2,857,098 DEDUCTIONS Administration 37,596 63,660 101,256 Benefits and refunds 5,407,697 5,909,909 11,317,606 Total deductions 5,445,293 5,973,569 11,418,862 NET INCREASE (DECREASE) (4,694,954) (3,866,810) (8,561,764) NET POSITION RESTRICTED FOR PENSIONS January 1 71,069,062 66,265,340 137,334,402 December 31 $ 66,374,108 $ 62,398,530 $ 128,772,638 (See independent auditor's report.) - 166 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN NET POSITION - BUDGET AND ACTUAL POLICE PENSION FUND For the Year Ended December 31, 2018 Budget Original Final Actual ADDITIONS Contributions Employer $ 3,635,000 $ 3,611,000 $ 3,608,602 Plan members 849,000 849,000 838,873 Other 500 500 20 Total contributions 4,484,500 4,460,500 4,447,495 Investment income Interest earned 842,000 789,000 762,164 Net change in fair value 4,419,000 (4,624,000) (4,332,402) Less investment expenses (124,000) (124,000) (126,918) Net investment income 5,137,000 (3,959,000) (3,697,156) Total additions 9,621,500 501,500 750,339 DEDUCTIONS Administration 66,600 66,600 37,596 Benefits and refunds 5,033,555 5,408,555 5,407,697 Total deductions 5,100,155 5,475,155 5,445,293 NET INCREASE (DECREASE) $ 4,521,345 $ (4,973,655) (4,694,954) NET POSITION RESTRICTED FOR PENSIONS January 1 71,069,062 December 31 $ 66,374,108 (See independent auditor's report.) - 167 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN NET POSITION - BUDGET AND ACTUAL FIREFIGHTERS'PENSION FUND For the Year Ended December 31, 2018 Budget Original Final Actual ADDITIONS Contributions Employer $ 3,358,800 $ 3,334,800 $ 3,332,773 Plan members 680,000 680,000 688,000 Other 500 500 - Total contributions 4,039,300 4,015,300 4,020,773 Investment income Interest earned 732,000 732,000 697,640 Net change in fair value 4,346,000 (2,748,000) (2,513,393) Less investment expenses (88,000) (99,000) (98,261) Net investment income 4,990,000 (2,115,000) (1,914,014) Total additions 9,029,300 1,900,300 2,106,759 DEDUCTIONS Administration 70,600 70,600 63,660 Benefits and refunds 5,601,610 5,911,610 5,909,909 Total deductions 5,672,210 5,982,210 5,973,569 NET INCREASE (DECREASE) $ 3,357,090 $ (4,081,910) (3,866,810) NET POSITION RESTRICTED FOR PENSIONS January 1 66,265,340 December 31 $ 62,398,530 (See independent auditor's report.) - 168 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2018 Balances Balances January 1 Additions Deductions December 31 All Funds ASSETS Cash and investments $ 1,126,624 $ 2,214,886 $ 2,225,773 $ 1,115,737 Due from other funds - 100,715 100,715 - Deposits 7,140 1,471 - 8,611 Other receivables - 11,782 11,782 - TOTAL ASSETS $ 1,133,764 $ 2,328,854 $ 2,338,270 $ 1,124,348 LIABILITIES Deposits payable $ 1,133,764 $ 1,712,383 $ 1,721,896 $ 1,124,251 Due to other funds - 121,264 121,212 52 Other liabilities - 673,309 673,264 45 TOTAL LIABILITIES $ 1,133,764 $ 2,506,956 $ 2,516,372 $ 1,124,348 1. Escrow Deposit Fund ASSETS Cash and investments $ 1,099,451 $ 1,836,977 $ 1,839,246 $ 1,097,182 Due from other funds - 100,715 100,715 - Other receivables - 11,782 11,782 - TOTAL ASSETS $ 1,099,451 $ 1,949,474 $ 1,951,743 $ 1,097,182 LIABILITIES Deposits payable $ 1,099,451 $ 1,334,240 $ 1,336,606 $ 1,097,085 Due to other funds - 114,361 114,309 52 Other liabilities - 673,309 673,264 45 TOTAL LIABILITIES $ 1,099,451 $ 2,121,910 $ 2,124,179 $ 1,097,182 (This statement is continued on the following page.) - 169 - VILLAGE OF MOUNT PROSPECT,ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (Continued) AGENCY FUNDS For the Year Ended December 31, 2018 Balances Balances January 1 Additions Deductions December 31 2. Flexcomp Escrow Fund ASSETS Cash and investments $ 27,173 $ 377,909 $ 386,527 $ 18,555 Deposits 7,140 1,471 - 8,611 TOTAL ASSETS $ 34,313 $ 379,380 $ 386,527 $ 27,166 LIABILITIES Deposits payable $ 34,313 $ 378,143 $ 385,290 $ 27,166 Due to other funds - 6,903 6,903 - TOTAL LIABILITIES S 34,313 S 385,046 S 392,193 $ 27,166 (See independent auditor's report.) - 170 - OTHER SUPPLEMENTAL DATA VILLAGE OF MOUNT PROSPECT,ILLINOIS ILLINOIS GRANT ACCOUNTABILITY AND TRANSPARENCY ACT CONSOLIDATED YEAR END FINANCIAL REPORT For the Year Ended December 31,2018 CSFA Program Number Name State Federal Other Total Motor Fuel Tax Program $ 1,742,900 $ - $ - $ 1,742,900 Community Development Block Grant - 302,577 33,700 336,277 Body Armor Grant - 5,339 - 5,339 Illinois American Water-Hydrank Makers - - 1,000 1,000 IRMA Lexipol Grant - - 8,000 8,000 NACCHO Grant - 2,115 - 2,115 All other costs not allocated - - 94,285,046 94,285,046 TOTALS $ 1,742,900 $ 310,031 $ 94,327,746 $ 96,380,677 (See independent auditor's report.) - 171 - SUPPLEMENTAL DATA LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS To account for the noncurrent portion of the Village's General Obligation Bond Issues, IEPA flood loans, installment contracts and notes payable, net pension liabilities, compensated absences, and total OPEB liabilities. 0 0 0 0 � cE a ° W U v� sus ss vs �r � O N fi0 W 00 W FA 6S A 6S r G O � EA 6S b9 6S A y O O O O 69 EA b4 65 ❑ 4, O O O O V O Fn � FR bS EA bS C� a � F�y V 69 b9 69 b5 W C7 W C o }s _ L 69 A es O W d cyi R o o 0 0 0c) v w Q a 000 000 Cl 00o O c o W <» bs bs 51 Q a v r v r tr` � � rV 0 0 0 0 6s Gs �s 6s F� A w w W O A w O F w v W a0 a o y O� O �cC. O c3 O O O ,N W M O O O M O v7 M N oO N c c vi r'o cV r-vi r-vi r4 c N N N b5 &S Ff3 b5 N N N N M M M M of W . . . . . . W W 10 I Ic a 69 6S A 64 a co oc oc oc 0 Cl a y N N N N p '�' o0 oe oa o0 d N CA N � a v3 sus ss vs y N N N N y O O O O M M M M M M M M G O O G Q O CCi QI m M M M CA 171 w bs rs v3 v3 Z o 0 0 o O Woc ds ss �s .,s p � WW In �--i 10 a a � � A •� � M M M M WWWW N W a d G O O G G1 C C F � w raw z p � Z y a o L 2 C e3 O O O ,N cQ a t bA O F4 LONG-TERM DEBT REQUIREMENTS VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 201113 December 31,2018 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 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 $ 1,530,000 $ 58,086 $ 1,588,086 $ 29,043 $ 29,043 (See independent auditor's report.) - 174 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2012 December 31,2018 Date of Issue January 3,2012 Date of Maturity December 1,2022 Authorized Issue $2,975,000 Denomination of Bonds $5,000 Interest Rates 3.10% 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 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 $ 189,724 $ 1,934,724 $ 94,862 $ 94,862 (See independent auditor's report.) - 175 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2013 December 31,2018 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 I and December 1 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 1 Amount December 1 Amount 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 $ 3,501,145 $ 13,301,145 $ 1,750,570 $ 1,750,575 (See independent auditor's report.) - 176 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2014 December 31,2018 Date of Issue Febivary 4,2014 Date of Maturity December 1,2023 Authorized Issue $6,290,000 Denomination of Bonds $5,000 Interest Rate 3% Interest Dates June I and December 1 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 1 Amount December 1 Amount 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 $ 4,675,000 $ 474,000 $ 5,149,000 $ 237,000 $ 237,000 (See independent auditor's report.) - 177 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2016 December 31,2018 Date of Issue September 8,2016 Date of Maturity December 1,2022 Authorized Issue $8,735,000 Denomination of Bonds $5,000 Interest Rate 2%to 3% Interest Dates June I and December 1 Principal Maturity Date December I Payable at Zions Bancorporation 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 2018 0574-0860 $ 1,425,000 $ 148,150 $ 1,573,150 2019 $ 74,075 2019 $ 74,075 2019 0861-1156 1,470,000 105,400 1,575,400 2020 52,700 2020 52,700 2020 1157-1461 1,515,000 61,300 1,576,300 2021 30,650 2021 30,650 2021 1462-1776 1,550,000 31,000 1,581,000 2022 15,500 2022 15,500 $ 5,960,000 $ 345,850 $ 6,305,850 $ 172,925 $ 172,925 (See independent auditor's report.) - 178 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2016A December 31,2018 Date of Issue December 1,2016 Date of Maturity December 1,2028 Authorized Issue $9,100,000 Denomination of Bonds $5,000 Interest Rates 3% Interest Dates June I and December I Principal Maturity Date December I Payable at Zions Bancorporation 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 2018 - $ - $ 265,800 $ 265,800 2019 $ 132,900 2019 $ 132,900 2019 - - 265,800 265,800 2020 132,900 2020 132,900 2020 - - 265,800 265,800 2021 132,900 2021 132,900 2021 - - 265,800 265,800 2022 132,900 2022 132,900 2022 0049-0151 515,000 265,800 780,800 2023 132,900 2023 132,900 2023 0152-0363 1,060,000 250,350 1,310,350 2024 125,175 2024 125,175 2024 0364-0711 1,740,000 218,550 1,958,550 2025 109,275 2025 109,275 2025 0712-1070 1,795,000 166,350 1,961,350 2026 83,175 2026 83,175 2026 1071-1439 1,845,000 112,500 1,957,500 2027 56,250 2027 56,250 2027 1440-1820 1,905,000 57,150 1,962,150 2028 28,575 2028 28,575 $ 8,860,000 $ 2,133,900 $ 10,993,900 $ 1,066,950 $ 1,066,950 (See independent auditor's report.) - 179 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2017 December 31,2018 Date of Issue December 20,2017 Date of Maturity December 1,2037 Authorized Issue $9,740,000 Denomination of Bonds $5,000 Interest Rates 2.50%to 4.00% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Zions Bancorporation CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Requirements Interest Due on Year Principal Interest Total June 1 Amount December 1 Amount 2018 $ 125,000 $ 320,501 $ 445,501 2019 $ 160,250 2019 $ 160,250 2019 140,000 315,501 455,501 2020 157,750 2020 157,750 2020 290,000 309,901 599,901 2021 154,950 2021 154,950 2021 315,000 298,301 613,301 2022 149,150 2022 149,150 2022 345,000 285,701 630,701 2023 142,850 2023 142,850 2023 375,000 271,901 646,901 2024 135,950 2024 135,950 2024 405,000 256,901 661,901 2025 128,450 2025 128,450 2025 440,000 240,701 680,701 2026 120,350 2026 120,350 2026 465,000 227,501 692,501 2027 113,750 2027 113,750 2027 500,000 215,876 715,876 2028 107,938 2028 107,938 2028 530,000 202,750 732,750 2029 101,375 2029 101,375 2029 565,000 188,175 753,175 2030 94,088 2030 94,088 2030 600,000 171,932 771,932 2031 85,966 2031 85,966 2031 640,000 147,932 787,932 2032 73,966 2032 73,966 2032 690,000 122,332 812,332 2033 61,166 2033 61,166 2033 730,000 100,770 830,770 2034 50,384 2034 50,384 2034 775,000 77,956 852,956 2035 38,978 2035 38,978 2035 820,000 53,738 873,738 2036 26,869 2036 26,869 2036 865,000 28,112 893,112 2037 14,056 2037 14,056 $ 9,615,000 $ 3,836,482 $ 13,451,482 $ 1,918,236 $ 1,918,236 (See independent auditor's report.) - 180 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2018A December 31,2018 Date of Issue May 1,2018 Date of Maturity December 1,2037 Authorized Issue $7,060,000 Denomination of Bonds $5,000 Interest Rates 3.25%to 5.00% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Zions Bankcorporation CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Requirements Interest Due on Year Principal Interest Total June 1 Amount December 1 Amount 2018 $ - $ 273,368 $ 273,368 2019 $ 136,684 2019 $ 136,684 2019 - 273,368 273,368 2020 136,684 2020 136,684 2020 180,000 273,368 453,368 2021 136,684 2021 136,684 2021 205,000 264,368 469,368 2022 132,184 2022 132,184 2022 225,000 254,120 479,120 2023 127,060 2023 127,060 2023 250,000 242,870 492,870 2024 121,435 2024 121,435 2024 280,000 230,370 510,370 2025 115,185 2025 115,185 2025 310,000 216,370 526,370 2026 108,185 2026 108,185 2026 340,000 200,870 540,870 2027 100,435 2027 100,435 2027 370,000 187,270 557,270 2028 93,635 2028 93,635 2028 400,000 172,470 572,470 2029 86,235 2029 86,235 2029 435,000 156,470 591,470 2030 78,235 2030 78,235 2030 470,000 139,070 609,070 2031 69,535 2031 69,535 2031 505,000 123,794 628,794 2032 61,897 2032 61,897 2032 540,000 107,380 647,380 2033 53,690 2033 53,690 2033 575,000 88,480 663,480 2034 44,240 2034 44,240 2034 615,000 68,354 683,354 2035 34,177 2035 34,177 2035 660,000 47,600 707,600 2036 23,800 2036 23,800 2036 700,000 24,500 724,500 2037 12,250 2037 12,250 $ 7,060,000 $ 3,344,460 $ 10,404,460 $ 1,672,230 $ 1,672,230 (See independent auditor's report.) - 181 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2018B December 31,2018 Date of Issue October 16,2018 Date of Maturity December 1,2043 Authorized Issue $38,440,000 Denomination of Bonds $5,000 Interest Rates 3.625%to 5.00% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Zions Bankcorporation CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Requirements Interest Due on Year Principal Interest Total June 1 Amount December 1 Amount 2018 $ 400,000 $ 1,833,188 $ 2,233,188 2019 $ 916,594 2019 $ 916,594 2019 455,000 1,609,500 2,064,500 2020 804,750 2020 804,750 2020 360,000 1,586,750 1,946,750 2021 793,375 2021 793,375 2021 - 1,568,750 1,568,750 2022 784,375 2022 784,375 2022 - 1,568,750 1,568,750 2023 784,375 2023 784,375 2023 770,000 1,568,750 2,338,750 2024 784,375 2024 784,375 2024 155,000 1,530,250 1,685,250 2025 765,125 2025 765,125 2025 160,000 1,522,500 1,682,500 2026 761,250 2026 761,250 2026 165,000 1,514,500 1,679,500 2027 757,250 2027 757,250 2027 175,000 1,506,250 1,681,250 2028 753,125 2028 753,125 2028 1,645,000 1,497,500 3,142,500 2029 748,750 2029 748,750 2029 1,820,000 1,415,250 3,235,250 2030 707,625 2030 707,625 2030 1,910,000 1,324,250 3,234,250 2031 662,125 2031 662,125 2031 2,005,000 1,228,750 3,233,750 2032 614,375 2032 614,375 2032 2,105,000 1,128,500 3,233,500 2033 564,250 2033 564,250 2033 2,210,000 1,023,250 3,233,250 2034 511,625 2034 511,625 2034 2,295,000 943,138 3,238,138 2035 471,569 2035 471,569 2035 2,380,000 857,076 3,237,076 2036 428,538 2036 428,538 2036 2,470,000 767,826 3,237,826 2037 383,913 2037 383,913 2037 2,560,000 675,200 3,235,200 2038 337,600 2038 337,600 2038 2,660,000 576,000 3,236,000 2039 288,000 2039 288,000 2039 2,765,000 469,600 3,234,600 2040 234,800 2040 234,800 2040 2,875,000 359,000 3,234,000 2041 179,500 2041 179,500 2041 2,990,000 244,000 3,234,000 2042 122,000 2042 122,000 2042 3,110,000 124,400 3,234,400 2043 62,200 2043 62,200 $ 38,440,000 $ 28,442,928 $ 66,882,928 $ 14,221,464 $ 14,221,464 (See independent auditor's report.) - 182 - VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS IEPA FLOOD LOAN (L17-1087) CONTRACT PAYABLE OF 1999 December 31, 2018 Date of Issue December 1, 1999 Date of Maturity June 3, 2019 Authorized Issue $1,760,422 Interest Rates 2.625% Interest Dates June 3 and December 3 Principal Maturity Date June 3 Payable at Illinois Environmental Protection Agency CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Payment Requirements Year Numbers Principal Interest Total 2019 39 $ 57,500 $ 754 $ 58,254 $ 57,500 $ 754 $ 58,254 (See independent auditor's report.) - 183 - VILLAGE OF MOUNT PROSPECT,ILLINOIS LONG-TERM DEBT REQUIREMENTS INSTALLMENT NOTE PAYABLE OF 2012 December 31,2018 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 Fiscal Payment Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2019 13-14 $ 590,000 $ 5,369 $ 595,369 2019 $ 2,684 2019 $ 2,685 $ 590,000 $ 5,369 $ 595,369 $ 2,684 $ 2,685 (See independent auditor's report.) - 184 - 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(s) 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. 185-194 Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue source, the property tax. 195-203 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. 204-207 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. 208-209 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. 210-214 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. VILLAGE OF MOUNT PROSPECT,ILLINOIS NET POSITION BY COMPONENT Last Ten Fiscal Years Fiscal Year 2009 2010 2011 2012 GOVERNMENTAL ACTIVITIES Net investment in capital assets $ 27,741,453 $ 30,020,260 $ 53,524,378 $ 48,521,357 Restricted 4,497,173 4,891,298 2,828,903 3,547,328 Unrestricted 20,277,880 18,296,001 20,019,184 24,952,139 TOTAL GOVERNMENTAL ACTIVITIES $ 52,516,506 $ 53,207,559 $ 76,372,465 $ 77,020,824 BUSINESS-TYPE ACTIVITIES Net investment in capital assets $ 22,412,134 $ 23,044,064 $ 26,892,474 $ 26,566,375 Unrestricted 5,996,007 5,927,430 5,167,986 6,820,901 TOTAL BUSINESS-TYPE ACTIVITIES $ 28,408,141 $ 28,971,494 $ 32,060,460 $ 33,387,276 PRIMARY GOVERNMENT Net investment in capital assets $ 50,153,587 $ 53,064,324 $ 80,416,852 $ 75,087,732 Restricted 4,497,173 4,891,298 2,828,903 3,547,328 Unrestricted 26,273,887 24,223,431 25,187,170 31,773,040 TOTAL PRIMARY GOVERNMENT $ 80,924,647 $ 82,179,053 $ 108,432,925 $ 110,408,100 *The unrestricted net position decreased in 2014 due to the recognition of the business district limited tax note payable. **The Village implemented GASB Statement No. 68 in fiscal year 2015. ***The Village implemented GASB Statement No. 75 for fiscal year 2018. Data Source Audited Financial Statements - 185 - 2013 2014* 2015** 2016 2017 2018*** $ 48,152,760 $ 46,326,047 $ 43,755,661 $ 33,224,875 $ 34,171,129 $ 30,192,091 3,045,922 4,186,505 5,319,794 4,557,424 4,104,560 7,065,413 24,153,907 (10,441,020) (99,563,419) (91,778,462) (95,150,426) (107,779,949) $ 75,352,589 $ 40,071,532 $ (50,487,964) $ (53,996,163) $ (56,874,737) $ (70,522,445) $ 26,352,289 $ 26,854,967 $ 36,336,899 $ 36,588,628 $ 35,765,755 $ 32,472,358 8,057,996 7,734,851 5,580,049 4,610,400 6,266,907 8,411,004 $ 34,410,285 $ 34,589,818 $ 41,916,948 $ 41,199,028 $ 42,032,662 $ 40,883,362 $ 74,505,049 $ 73,181,014 $ 80,092,560 $ 69,813,503 $ 69,936,884 $ 62,664,449 3,045,922 4,186,505 5,319,794 4,557,424 4,104,560 7,065,413 32,211,903 (2,706,169) (93,983,370) (87,168,062) (88,883,519) (99,368,945) $ 109,762,874 $ 74,661,350 $ (8,571,016) $ (12,797,135) $ (14,842,075) $ (29,639,083) - 186 - VILLAGE OF MOUNT PROSPECT,ILLINOIS CHANGE IN NET POSITION Last Ten Fiscal Years Fiscal Year 2009 2010 2011 2012 EXPENSES Governmental Activities General government $ 7,192,572 $ 6,541,405 $ 6,992,107 $ 6,233,324 Public safety 27,172,360 27,303,165 27,276,948 28,134,173 Highways and streets 12,101,419 12,924,872 18,141,803 15,853,017 Health 4,194,045 4,133,883 4,289,103 4,407,533 Welfare 2,316,995 2,039,805 1,902,841 1,909,062 Culture and recreation 367,635 322,553 353,308 406,606 Interest 1,047,961 1,146,789 1,329,499 1,033,923 Total governmental activities expenses 54,392,987 54,412,472 60,285,609 57,977,638 Business-Type Activities Water and sewer 9,393,148 9,950,591 10,444,247 11,129,942 Commuter parking 233,701 284,607 327,224 345,715 Total business-type activities expenses 9,626,849 10,235,198 10,771,471 11,475,657 TOTAL PRIMARY GOVERNMENTAL EXPENSES $ 64,019,836 $ 64,647,670 $ 71,057,080 $ 69,453,295 PROGRAM REVENUES Governmental Activities Charges for services General government $ 6,705,200 $ 6,271,966 $ 6,343,828 $ 7,068,010 Public safety 1,580,052 1,486,144 1,545,333 1,412,279 Highway and streets 237,786 135,641 108,865 126,660 Other activities 65,933 70,964 32,040 39,163 Operating grants and contributions 2,551,348 2,338,965 2,749,168 1,974,867 Capital grants and contributions 406,734 443,278 65,905 72,175 Total governmental activities program revenues 11,547,053 10,746,958 10,845,139 10,693,154 Business-Type Activities Charges for services Water and sewer 8,500,396 8,916,621 9,081,731 10,990,923 Commuter parking 218,735 210,324 219,040 225,214 Capital grants and contributions - - - - Total business-type activities program revenues 8,719,131 9,126,945 9,300,771 11,216,137 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES $ 20,266,184 $ 19,873,903 $ 20,145,910 $ 21,909,291 NET REVENUE(EXPENSE) Governmental activities $ (42,845,934) $ (43,665,514) $ (49,440,470) $ (47,284,484) Business-type activities (907,718) (1,108,253) (1,470,700) (259,520) TOTAL PRIMARY GOVERNMENT NET REVENUE(EXPENSE) $ (43,753,652) $ (44,773,767) $ (50,911,170) $ (47,544,004) - 187 - 2013 2014 2015* 2016 2017 2018** $ 7,356,433 $ 10,171,883 $ 11,514,091 $ 9,949,082 $ 10,690,075 $ 11,942,073 29,771,502 30,812,251 38,535,612 38,328,609 37,351,039 42,702,313 18,570,593 19,923,120 26,650,772 19,990,440 16,176,313 15,587,445 4,459,897 4,591,946 4,538,800 4,620,982 4,557,211 4,811,335 1,868,952 1,844,911 1,813,254 2,109,733 2,068,368 1,636,190 443,171 425,217 453,534 515,555 611,653 573,403 1,016,337 2,899,466 2,064,448 1,926,793 2,049,953 3,396,566 63,486,885 70,668,794 85,570,511 77,441,194 73,504,612 80,649,325 12,078,221 13,779,500 14,143,610 16,054,624 14,308,117 15,419,616 346,303 329,988 269,619 390,118 229,873 311,736 12,424,524 14,109,488 14,413,229 16,444,742 14,537,990 15,731,352 $ 75,911,409 $ 84,778,282 $ 99,983,740 $ 93,885,936 $ 88,042,602 $ 96,380,677 $ 6,908,188 $ 7,785,745 $ 4,458,450 $ 4,496,290 $ 4,178,495 $ 4,362,732 1,583,328 1,712,860 1,796,729 1,795,838 1,761,708 1,678,492 269,066 414,316 183,246 290,172 169,389 387,676 41,220 515,095 4,467,864 4,799,080 4,616,263 4,617,215 2,356,665 2,209,036 1,912,795 2,629,030 2,705,584 2,007,177 288,752 140,181 47,274 - 159,682 488,470 11,447,219 12,777,233 12,866,358 14,010,410 13,591,121 13,541,762 11,507,264 11,970,681 12,434,405 12,931,867 13,395,619 14,224,032 234,458 254,784 261,745 334,102 343,314 342,560 - 373,498 8,889,998 244,423 - - 11,741,722 12,598,963 21,586,148 13,510,392 13,738,933 14,566,592 $ 23,188,941 $ 25,376,196 $ 34,452,506 $ 27,520,802 $ 27,330,054 $ 28,108,354 $ (52,039,666) $ (57,891,561) $ (72,704,153) $ (63,430,784) $ (59,913,491) $ (67,107,563) (682,802) (1,510,525) 7,172,919 (2,934,350) (799,057) (1,164,760) $ (52,722,468) $ (59,402,086) $ (65,531,234) $ (66,365,134) $ (60,712,548) $ (68,272,323) - 188 - VILLAGE OF MOUNT PROSPECT,ILLINOIS CHANGE IN NET POSITION(Continued) Last Ten Fiscal Years Fiscal Year 2009 2010 2011 2012 GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities Taxes Property $ 16,543,215 $ 17,165,849 $ 17,942,394 $ 18,385,422 Utility 4,519,175 4,589,221 4,624,678 4,658,265 Business district - - - 283,706 Home rule sales 4,061,202 4,392,753 4,673,134 4,750,232 Other 1,524,823 1,598,056 1,976,997 2,408,064 Intergovernmental State sales and use 9,761,726 11,110,707 11,411,781 11,877,115 Income taxes 4,573,162 4,428,176 4,328,196 4,759,513 Replacement taxes 338,134 362,532 357,596 358,286 Property tax TIF rebate - - - - Charitable games tax - - 3,986 4,090 Investment income 187,793 67,001 29,043 42,452 Miscellaneous 605,006 633,902 235,167 278,293 Transfers - 8,370 - - Contributions - - - - Total governmental activities 42,114,236 44,356,567 45,582,972 47,805,438 Business-Type Activities Property tax 1,520,602 1,513,114 1,526,828 1,515,605 Home rule sales tax 82,882 89,942 107,576 99,795 Investment income 26,646 1,653 836 517 Miscellaneous 56,761 75,267 73,858 (29,581) Transfers - (8,370) - - Total business-type activities 1,686,891 1,671,606 1,709,098 1,586,336 TOTAL PRIMARY GOVERNMENT $ 43,801,127 $ 46,028,173 $ 47,292,070 $ 49,391,774 CHANGE IN NET POSITION Governmental activities $ (731,698) $ 691,053 $ (3,857,498) $ 520,954 Business-type activities 779,173 563,353 238,398 1,326,816 TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION $ 47,475 $ 1,254,406 $ (3,619,100) $ 1,847,770 *The Village implemented GASB Statement No.68 in fiscal year 2015. **The Village implemented GASB Statement No.75 in fiscal year 2018. Data Source Audited Financial Statements - 189 - 2013 2014 2015* 2016 2017 2018** $ 18,890,542 $ 19,745,699 $ 19,884,986 $ 20,463,758 $ 18,396,040 $ 19,228,572 3,891,713 4,093,596 3,774,729 3,629,525 3,491,473 3,476,968 317,527 331,933 342,040 341,340 322,936 315,425 5,035,998 5,320,795 5,367,762 5,553,213 5,365,011 5,455,278 2,952,665 3,421,604 3,940,993 3,645,424 3,804,231 4,072,906 13,254,358 14,310,773 16,311,253 17,630,758 19,894,716 24,370,264 5,161,051 5,186,155 5,763,542 5,272,834 4,975,194 5,187,361 396,999 407,764 386,154 386,338 456,136 370,542 - - 365,634 380,758 - - 4,090 4,812 - 4,101 - 8,627 29,785 (46,496) 24,784 76,594 196,995 675,703 436,703 47,636 42,059 33,286 125,949 1,049,155 - - (200,000) - - - 50,371,431 52,824,271 56,003,936 57,417,929 57,028,681 64,210,801 1,507,661 1,508,704 1,519,375 1,524,901 1,514,452 - 104,050 100,697 101,595 - - - 3,387 3,189 34,195 14,419 25,334 196,817 90,713 77,468 94,424 90,810 92,905 83,369 - - 200,000 - - - 1,705,811 1,690,058 1,949,589 1,630,130 1,632,691 280,186 $ 52,077,242 $ 54,514,329 $ 57,953,525 $ 59,048,059 $ 58,661,372 $ 64,490,987 $ (1,668,235) $ (5,067,290) $ (16,700,217) $ (6,012,855) $ (2,878,574) $ (2,896,762) 1,023,009 179,533 9,122,508 (1,304,220) 833,634 (884,574) $ (645,226) $ (4,887,757) $ (7,577,709) $ (7,317,075) $ (2,044,940) $ (3,781,336) - 190 - VILLAGE OF MOUNT PROSPECT,ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2009 2010 2011* 2012 GENERAL FUND Reserved $ 88,492 $ 53,536 $ - $ - Unreserved 10,110,989 10,3 64,455 - - Nonspendable - - 100,590 98,150 Unassigned - - 10,704,282 11,466,179 TOTAL GENERAL FUND $ 10,199,481 $ 10,417,991 $ 10,804,872 $ 11,564,329 ALL OTHER GOVERNMENTAL FUNDS Reserved $ 4,762,560 $ 2,188,376 $ - $ - Unreserved,reported in Special Revenue Funds 1,674,387 2,148,898 - - Debt Service Funds (485,274) (78,844) - - Capital Project Funds 1,965,761 2,459,761 - - Nonspendable - - 147,130 144,114 Restricted - - 2,828,903 3,625,715 Assigned - - 3,564,914 7,525,930 Unassigned - - (5,578) (664) TOTAL ALL OTHER GOVERNMENTAL FUNDS $ 7,917,434 $ 6,718,191 $ 6,535,369 $ 11,295,095 *The Village implemented GASB Statement No. 54 in fiscal year 2011. Data Source Audited Financial Statements 2013 2014 2015 2016 2017 2018 $ - $ - $ - $ - $ - $ - 297,762 337,165 204,023 188,247 261,219 220,065 11,580,820 12,508,457 17,016,920 18,496,104 19,137,752 22,837,502 $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 18,684,351 $ 19,398,971 $ 23,057,567 $ - $ - $ - $ - $ - $ - 132,464 147,412 107,609 96,771 83,232 74,703 3,166,583 13,941,797 5,212,985 4,557,424 8,919,560 39,339,578 15,705,506 7,371,630 3,679,129 3,224,446 3,579,214 7,182,152 (689) (789) (448,034) (688,716) - - $ 19,003,864 $ 21,460,050 $ 8,551,689 $ 7,189,925 $ 12,582,006 $ 46,596,433 - 192 - VILLAGE OF MOUNT PROSPECT,ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2009 2010 2011 2012 REVENUES Taxes $ 26,648,415 $ 27,740,802 $ 29,217,203 $ 30,485,689 Licenses,permits,and fees 3,748,456 3,394,211 3,356,816 3,657,586 Intergovernmental 17,274,500 18,719,087 18,895,261 18,862,827 Charges for services 3,832,341 3,789,976 3,974,677 4,417,110 Fines and forfeits 529,655 556,178 548,993 403,036 Investment income 137,142 55,457 23,103 36,491 Other reimbursements - - - - Miscellaneous 834,738 781,149 406,118 629,892 Total revenues 53,005,247 55,036,860 56,422,171 58,492,631 EXPENDITURES General government 5,796,151 5,240,716 5,284,168 5,827,275 Public safety 26,384,953 26,935,085 26,992,535 28,022,943 Highways and streets 8,291,493 7,450,823 7,681,534 7,734,185 Health 4,188,172 4,128,010 4,286,754 4,405,184 Welfare 2,316,995 2,039,805 1,902,841 1,909,062 Culture and recreation 358,207 313,125 346,068 399,366 Capital outlay 14,296,659 7,739,590 7,274,213 4,761,739 Debt service Principal retirement 1,425,219 1,046,203 1,377,700 1,479,732 Interest and fiscal charges 1,023,907 1,124,236 1,057,464 959,812 Total expenditures 64,081,756 56,017,593 56,203,277 55,499,298 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (11,076,509) (980,733) 218,894 2,993,333 OTHER FINANCING SOURCES(USES) Bonds issued 16,080,000 - 5,160,000 5,475,000 Premium on bonds issued 124,535 - - - Payment to escrow agent (3,513,925) - (5,139,582) (2,949,150) Transfers in 635,100 450,000 80,089 - Transfers(out) (635,100) (450,000) (115,342) - Sale of capital assets 364 - - - Total other financing sources(uses) 12,690,974 - (14,835.00) 2,525,850 NET CHANGE IN FUND BALANCES S 1,614,465 S (980,733) S 204,059 S 5,519,183 DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 4.55% 4.12% 4.35% 4.40% Data Source Audited Financial Statements - 193 - 2013 2014 2015 2016 2017 2018 $ 31,088,445 $ 32,564,624 $ 33,433,891 $ 34,113,260 $ 31,784,137 $ 33,080,547 3,589,368 3,516,082 3,915,635 4,001,458 3,982,497 4,085,141 21,103,909 23,914,974 26,018,173 27,434,551 29,199,312 32,811,854 4,408,987 5,220,730 5,664,398 6,347,775 5,810,731 5,834,187 430,960 587,966 511,536 414,885 415,189 403,842 16,751 (46,495) 24,784 76,594 196,995 675,700 - - - 35,000 19,824 112,429 1,167,196 983,623 656,877 549,816 592,352 1,660,393 61,805,616 66,741,504 70,225,294 72,973,339 72,001,037 78,664,093 7,452,147 7,050,018 7,598,649 9,435,601 10,060,904 9,566,297 29,233,562 30,706,685 30,350,270 32,512,612 34,279,062 36,287,527 9,094,846 8,291,698 7,744,122 8,148,696 8,762,136 9,658,459 4,457,548 4,590,027 4,589,156 4,585,572 4,500,280 4,835,310 1,868,952 1,865,265 1,961,516 1,994,918 1,953,055 1,798,458 435,931 421,517 467,611 499,208 585,907 572,169 8,588,414 12,075,460 20,998,508 10,718,553 5,786,667 15,245,784 1,537,312 2,987,587 3,048,912 3,243,840 3,518,904 3,671,871 913,882 1,914,718 1,799,590 2,017,192 1,378,256 2,484,885 63,582,594 69,902,975 78,558,334 73,156,192 70,825,171 84,120,760 (1,776,978) (3,161,471) (8,333,040) (182,853) 1,175,866 (5,456,667) 9,800,000 6,290,000 - 17,835,000 4,815,000 45,500,000 - 294,697 - 1,022,839 115,835 1,783,506 - - - (18,573,342) - (4,153,816) 239,977 - 81,599 1,637,926 600,000 2,354,391 (239,977) - (281,599) (1,637,926) (600,000) (2,354,391) 9,800,000 6,584,697 (200,000) 284,497 4,930,835 43,129,690 $ 8,023,022 $ 3,423,226 $ (8,533,040) $ 101,644 $ 6,106,701 $ 37,673,023 4.01% 7.02% 6.20% 7.32% 6.99% 8.00% - 194 - o c o 0 0 0 0 J, 0 0 U YQ Cd Y .y h W C3 O O o1 M lD N V l0 l� a In N o v vn m In O O v) V N N O Vl v) m .O oc oc N N m N to to i al t N O W M o0 m lfl 't I C�3 O D N V V l0m l- N_ M V1 O o0 O l� l� l0 v) 01 O n O l r O O o0 O k lD vi v) V V V If) G� IOS N � O1 lD lD N M M vl N l- l- D� 01 O N N M O O O O CCS LLQ O M h N oc CO W N O`. 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V1 --� M --� Q\ �Y cd N O F > Wo za ° x We C yQQ aFA wa aFxa wa b y ° � O d F FCon O CA a F F OO P" `(A p" � U � � cr a � yCpO 0+ 6 D OWpCC m � y F � N Nr) w, O U v Q � > H � gQ � Ca � �1q oQ Fwa �y O � � FW � p p � .a o y > o .� A a o � o ion � 5 01, ri� vic� viwv� ri� �1wW N o l o x o 0 N Cn C o M m m t� oo N N Cl N N cn 00 10 M Vl .0 m ' Dc oc z V � N v� co 7 M 7 r o v-: m C > In F v y � � c bD bA b-0 y C O �' N � O ,Lp' 'C � L SJ. O ✓ A Vi f� V1 U c/a G C CC Q V � N P N 71 U F � � 0 In W � � y p '� F R •= N 3 0 a N x m M cl C` O O N O N N y V �D O N 7 V m NV N N 10 h ILI kn o is F NIV N Ob sa ss 6s ic c 0 F c t1b = 0 0 � c d U U Z3 o O.. VILLAGE OF MOUNT PROSPECT,ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Levy Years Collected within the Fiscal Year of the Levy Collections Total Collections to Date Fiscal Levy Percentage in Subsequent Percentage Year Year Tax Levied Amount of Levy Years Amount of Levy 2009 2008 $ 14,472,269 $ 14,137,805 97.69% $ (13,612) $ 14,124,193 97.59% 2010 2009 15,194,636 14,856,084 97.77% (129,982) 14,726,102 96.92% 2011 2010 15,194,635 14,961,411 98.47% (67,949) 14,893,462 98.02% 2012 2011 15,852,352 15,614,490 98.50% (31,262) 15,583,228 98.30% 2013 2012 16,477,871 16,278,228 98.79% (75,609) 16,202,619 98.33% 2014 2013 17,301,436 17,064,355 98.63% (43,980) 17,020,375 98.38% 2015 2014 17,741,219 17,521,845 98.76% (71,832) 17,450,013 98.36% 2016 2015 18,313,527 18,130,372 99.00% (65,049) 18,065,323 98.64% 2017 2016 18,733,668 18,534,114 98.93% 41,957 18,576,071 99.16% 2018 2017 19,096,392 18,865,589 98.79% - 18,865,589 98.79% Data Source Office of the County Clerk - 199 - a, a1 00 10 O I0 O1 OO 10 N m o 00 Inl� of 'V l— N o0 V) V) �t O r- 00 N r- M O O 00 10 0o 11-1 "O �--� 00 kn M �n 'S N O O 00 C1 00 O l� N ~ ~ m m N ^� N l— 00 o0 0\ o N N �O kn In m o0 kn M O O W) G7 rl 00V� O 00 N O O o0 00 -� N oC `O a1 vl 00 M CO 69 ff3 V) V) Q1 ,�-i � O oc rl 1 00 C O O1 CG N V) M EA { O_ N O r l 01 � oe a, h O` in O C 41 C �O N O1 _ l0 (i O 01 O O1 In N O O O O M O Oji oN0 �c CIAN vCIA m V7 M Vl k eq En f F^ aj O N oo M CO D1 O m m m � O oo 'A G .may M al oc � N O ~ 00 N CO M N �i �••� �A f e ^al O r- CO v) N D1 O � n M O 00 N o0 ,.o H � N � M N n n n oc � U �n M D, O O 00 ztVl O CO CO U O o0 r- N l— lr O \O M k eq H k. r` •� knv l l l N O` v) O O o0 M IC. In O O O DO D (V W N rq O OA O ~ O O O W '� 0?0 1.0AO r- 00 N r- G �~ cu N ~ DD •--� N O O v .--i o a 69 �A W _ _ _ C/1 j- 00 N O N .a-i M o C N CO O O D1 O h h h � O m M �r =_ Cl O_ M M O1 00 O o0 O O a ri 1�0 1r1 \O \0 r M In M V1 a --� 7T O1 ON M o0 00 01 N M ~ N *0 O G\ 00 V) 5R f 0 t O v v v o0 00 D1 4; 00 Ln Ef3 4Fr N Ln 00 o L ca 00 Ql N M 00 00 r- Q, O o1 U 01 O V) N M 1r1 O V N V) M V1 O O O N M N L f` r- r- V) O o0 O Ln 59 Ff3 �' C7 O N -0 N Iz x cz 40, 7D wH o cs o Id •� O M v� oo N a1 m c O N N M �/'1 N rl �o N O � M N �O �O Ol �c oc oc M O '10 o N 00 N N M V1 M M V1 # It O O N r O O a1 Lr) vi N O l— N N O M N 69 lo3 M Q1 CO N M V1 1p N 00 V1 O .ti oc N EA { l� 41 M o0 d, M O o �O �O oc M V) Vl M l� 10 O M O O O N In O r- r In N O oc O M N En f M 0oc 0 00 O Vl M V1 L O 7 In O oc cli O 00 N O M M N M W A fe ool0 V M, O,N O N in M (O n; DL U V] M o0 O Lr) r- C, V1 O a N --i DD O N O M � � N Oy cC 610 ll3 c�0 w V1 U U rl W w M o0 M h oC H a d N N N H N oc CO 01 �I C 00 N 41 oc Ncu U --IIIID--yi�i� a N tb W H cd U Q o U I4 IDtb U 5R U U c � N G � Ef3 4Ft N . o � � O U U w~ O G N ° a t� W •D cj cl aiIz C7 a Q y. ani °o . � � � � � rte'4 �c O � � � � � •� IO r O 01 00 N 7 M o0 0 N O1 _ O r O O V r oo O lO N oo N O O 00 O N c O1 00 V'i c 00 000 N 000 N D`' O vN'1 vN') O FA A o0 00 Y1 r O 00 D`. 00 00 V1 �O O O N O, r �--I N M M Ql N M r O r V) O 00 N 00 00 O1 r M N Vl bo b4 O1 O1 N \O N �O Cl N r o M Vl kl Do Ol \O O N N O` 00 O r r O O, vl M N r lc ll: \O U O oo Ic r14 ri �c r a M r o rl Vl �O �O O p o0 N oo �--� N oc 0o N yj FA 64 O1 M V O O M O O` O r o O1 0o O M M O O 0o N N d, O r M O O M a, M N d` O V� 01 00 r r M 00 00 r rl O 0C O, oo eY M eY O 00 N 00 .--i N r 00 V1 N 69 EA V N V r Vl N Cr Vl M 4` c vl 00 oo CD O vl r N 0o a` O a1 � N oc, � 7 V V lO M �--� '10 M 'VGO O 00 N r r Ol Vl Vl M M N � �I b9 EA '7O O M 00 .--i \D N O1 00 00 O M c q --� O, Oi n Ol M o0 O a x 7 O oo al C`. M N r �O oo O Vl O V DD 4l M oo O` N a, 00 oc N r N O cl r M_ lo W U s`n• oo O oO O� N O M 01 N � 01 O Qv CD o0 O (� ) Do vl N w) O N N b5 69 W 41 r �O r l0 N oo m M O 00 In o �--i �n �Y M �--i 7 4` O W C4 n N n V r M O l0 lO \O r a0 O N O1 N O1 •--� r U ..y In .�-i M oc GO oc �O M 10 M r N cd p r N �!1 N V. oo � ¢' N o o 0 00 0o v a 0 2w v v In N 10 O N � tL O Q O � cJ c 00 O N ,rte N Cl1 r N Co N V r- O y..i •� O 0 M 00 Ql M M l0 O Q\ 7 M N �t O 7 0o O 'O 'p N Vl N fA 64 � a�J N c�G N V N rA W W m > W a o y � bq '6 -5 Ell Ns a W H dA 0. N 'O !Q VILLAGE OF MOUNT PROSPECT,ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years Regional Village Home Rule Fiscal State County Transportation Direct Sales Tax Year Rate Rate Authority Rate Rate Total 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% 2015* 5.00% 1.00% 1.00% 1.00% 1.00% 9.00% 2016* 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% 2017* 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% 2018* 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% *Business district is assessed additional 0.25%sales tax. Data Source State of Illinois - 203 - C7, Ol 00 00 m N ti N M y U 4, Cl C-- 61 M CO M �, OC a0 U � cy N M O O V O f] Y Y w O O O O O O O O O O eC y oo in in M r` O CG 1w a '� C o a U � � kf) V-� kc) N co co O V) a, y N V1 CKJ Go 01 O V1 V) dl Ic AO O Ol �.o 01 vl r-- O ol Owl l� O ON � ' O 00 r- kr) �c kr) M O � Cl s O a rah N N N N Ic o0 o0 l� o0 N --i J, VI [� 7Crn y � y O y y bA O oc O Q W kr) (0100 Q 9, P.•i A 64 cYd � � O V') l— O m M M Q ✓�' C�0 i i i i OM v) I-- � kr, W W o N cY +r O 4 a �-� 6S •� � U O O I O 0000000 � � � � d o 0 0 0 0 o O V) M 01 W tiLr) Q O 00 0 p Gl4 V U. p �� 01 Wp kO N l� V v o p an a N V) 00 kr� 01 ON �- 'O ) a C � G1 Ic � 01 ,--i Moll O [� U O O 75i.y O O o0 V) O M N 11 kf) .r-i kf) 6) ISI 04 M N 'O O' CC O E OU R y0 U CJ n 6 G c U ci cl w C13 o E� CA, ULl O O O O O 00 ,--i M M 00 O O O O O Vr 01 O 00 Ol _ y O O O M � Lr O �? 0 cih M O M N O o0 M O U ani � NIc � Ic ZtO1clt- � aN d M N _: V) Q U cd V N N N N M o0 4 j aa)i o 75 O a) -� tfj m b0 Q-. o - _ cz U VILLAGE OF MOUNT PROSPECT,ILLINOIS RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years Percentage of Less Amounts Estimated General Available Actual Taxable Fiscal Obligation In Debt Value of Per Year Bonds Service Fund Total Property* Capita 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 48,433,628 131,635 48,301,993 1.19% 891.72 2015 45,927,931 154,206 45,773,725 1.10% 845.05 2016 43,905,073 168,152 43,736,921 1.08% 807.45 2017 50,848,807 184,195 50,664,612 1.04% 935.34 2018 95,565,934 1,604,391 93,961,543 1.87% 1,734.66 *See the schedule of Assessed Value and Actual Value of Taxable Property on page 195 for property value data. Note: Details of the Village's outstanding debt can be found in the notes to financial statements. Data Sources Audited financial statements Office of the County Clerk - 205 - VILLAGE OF MOUNT PROSPECT,ILLINOIS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2018 (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 $ 119,577,861 100.000% $ 119,577,861 County of Cook 3,092,046,750 1.108% 34,259,878 Forest Preserve District of Cook County 101,200,000 1.108% 1,121,296 Metropolitan Water Reclamation District 1,910,355,000 1.129% 21,567,908 Community College District 4535 34,150,000 0.015% 5,123 Community College District#512 126,895,000 8.703% 11,043,672 School District#214 37,480,000 19.282% 7,226,894 School District#207 14,540,000 0.072% 10,469 School District#57 7,860,000 94.911% 7,460,005 School District#26 8,665,000 78.036% 6,761,819 School District#25 47,360,000 2.625% 1,243,200 School District#23 7,540,000 7.647% 576,584 School District#21 30,255,000 3.125% 945,469 School District#59 12,385,000 16.780% 2,078,203 Arlington Heights Park District 11,200,000 1.606% 179,872 Des Plaines Park District 2,050,000 1.685% 34,543 Mount Prospect Park District 20,923,888 67.760% 14,178,027 5,464,905,638 108,692,962 $ 5,584,483,499 $ 228,270,823 (1) Gross bonded debt excluding outstanding general obligation (alternate revenue bonds) which are expected to be paid from sources other then general taxation. (2) Determined by ratio of 2017 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 Governmental units and the percentage of overlapping debt from the County Clerk's office. Gross debt of the overlapping governmental units obtained from CAFR's on file with the Cook County Treasurer's Office. - 206 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF LEGAL DEBT MARGIN December 31, 2018 The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt 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. - 207 - 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 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 1,390,377,678 1,798,831,903 33,209 5.50% 2015 54,167 1,354,550,848 1,798,831,903 33,209 4.30% 2016 54,167 1,304,972,506 1,798,831,903 33,209 4.60% 2017 54,167 1,670,725,439 1,798,831,903 33,209 3.70% 2018 54,167 N/A 1,798,831,903 33,209 2.90% Note: 2018 Equalized Assessed Valuation is not available until 2019. Data Sources (1)U.S. Department of Commerce, Bureau of the Census (2) Office of the Cook County Clerk (3) IDES Local Area Unemployment Statistics - 208 - w c o 0 0 0 0 0 0 0 0 O N N O, t O O, M M �t N � O O a H v') ON O O oo O Ln G 00 kn M M M N N N CL W kn "o � OD 01 O eC O O N r— cr u r/1 O O ami Q z t-, O G U O O00 p O � + O bA y � .� U ti Q 73 Ua z c w � o ZC13 o 0 0 0 0 0 0 0 0 o N O p ca eC O N l l O W) L CWJ U E" kn 011 Oo N O O Oo Ln N M M M M M N N N W N M OO p1 O C." CC 0 a O N kn CIA U U CZ� r bb s p U UnU 73 O = p o o U P4 U > :4a ti 3 L1 > VILLAGE OF MOUNT PROSPECT,ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years Function/Program 2009 2010 2011 2012 PUBLIC REPRESENTATION/COMMUNITY AND CIVIC SERVICES 1.05 1.05 2.10 2.10 Total 1.05 1.05 2.10 2.10 GENERAL GOVERNMENT Village administration Administration 16.95 14.95 14.95 15.45 Finance 15.00 13.00 13.00 13.00 Total 31.95 27.95 27.95 28.45 Community development Community development 23.15 20.48 20.48 17.75 Community development/CDBG 1.20 1.25 1.25 1.25 Total 24.35 21.73 21.73 19.00 Human services department 10.60 9.50 9.50 9.50 Total 10.60 9.50 9.50 9.50 PUBLIC SAFETY AND PROTECTION Police Department 111.50 97.83 97.83 99.50 Fire Department 82.20 74.75 74.75 74.50 Total 193.70 172.58 172.58 174.00 PUBLIC WORKS DEPARTMENT Administration 3.35 2.85 2.85 2.85 Streets/buildings/parking 14.80 11.35 11.85 11.85 Forestry 10.80 10.70 9.75 9.75 Engineering 8.30 8.00 8.00 8.00 Water/sewer 26.15 26.50 25.00 25.00 Refuse disposal 2.90 2.90 2.90 2.90 Parking - - 0.90 0.90 Vehicle maintenance 10.90 10.90 10.90 10.90 Total 77.20 73.20 72.15 72.15 VILLAGE TOTAL 338.85 306.01 306.01 305.20 Data Source Village budget - 210 - 2013 2014 2015 2016 2017 2018 2.10 2.05 2.15 2.20 2.10 2.05 2.10 2.05 2.15 2.20 2.10 2.05 15.45 15.45 16.85 16.75 17.35 15.85 13.00 13.00 13.00 13.00 13.00 13.50 28.45 28.45 29.85 29.75 30.35 29.35 18.50 18.50 18.50 18.75 18.75 21.00 1.00 1.00 1.00 0.75 0.75 - 19.50 19.50 19.50 19.50 19.50 21.00 9.50 9.50 9.50 9.50 9.55 10.55 9.50 9.50 9.50 9.50 9.55 10.55 100.50 100.50 99.50 101.50 102.50 103.00 74.50 74.50 75.00 81.00 81.00 81.00 175.00 175.00 174.50 182.50 183.50 184.00 2.85 2.85 2.85 3.85 3.35 4.75 12.45 12.40 12.40 12.35 12.35 14.20 9.25 9.35 9.25 8.35 8.35 8.35 8.00 8.00 8.00 8.00 8.00 7.90 24.75 24.75 24.75 2.90 25.25 25.75 2.90 2.90 2.90 24.75 2.90 - 0.90 0.90 0.90 0.90 0.90 - 10.75 10.75 10.75 10.75 10.75 10.75 71.85 71.90 71.80 71.85 71.85 71.70 306.40 306.40 307.30 315.30 316.85 318.65 - 211 - VILLAGE OF MOUNT PROSPECT,ILLINOIS OPERATING INDICATORS Last Ten Fiscal Years Function/Program 2009 2010 2011 2012 FINANCE DEPARTMENT Vehicle stickers issued 39,650 40,018 39,834 43,092 Utility bills 86,458 86,057 86,701 90,147 Real estate transfer tax stamps sold 986 1,086 1,022 1,282 COMMUNITY DEVELOPMENT Building Division Permits issued 2,415 2,922 2,821 2,278 Plan reviews 420 505 515 595 Building code inspections 8,564 8,783 8,508 9,154 Environmental Health Division Inspections Food service 394 400 394 405 Multi-family buildings 491 664 664 565 PUBLIC SAFETY Police Number of crimes 3,921 3,696 3,359 3,178 Number of service calls 23,600 22,028 19,943 19,184 Number of arrests 1,736 1,898 1,845 1,602 Moving violations 10,355 10,139 7,026 5,979 Parking citations 10,256 11,317 9,363 7,640 Fire Fire calls 1,817 1,888 2,350 1,892 EMS calls 3,535 3,465 3,590 3,885 Fire prevention inspections 4,258 3,790 3,418 3,308 Training hours 23,851 24,313 23,578 21,340 PUBLIC WORKS Streets Street resurfacing(miles) 5.80 5.00 4.70 5.20 Crack filling(lbs) 57,118 46,846 40,871 51,885 Leaves removed(cubic yards) 18,970 15,424 14,843 12,569 Water Water mains installed(lineal feet) 5,475 5,475 - - Water billed(1,000 gallons) 1,346,272 1,296,556 1,287,525 1,341,268 Sanitary sewers cleaned(ft) 55,150 55,150 54,236 58,922 Refuse(single/multi-family) Solid waste collected(tons) 30,231 31,963 32,264 31,385 Recycling(tons) 6,154 6,117 6,644 6,028 *2018 are estimated amounts. Final figures are not available at time of printing report. Data Source Various village departments - 212 - 2013 2014 2015 2016 2017 2018* 43,490 42,789 41,964 41,323 40,638 40,240 152,312 152,649 152,703 152,872 152,689 152,576 1,451 1,426 1,433 1,541 1,472 1,489 2,383 2,653 2,490 2,500 2,375 2,400 524 471 536 513 425 450 7,824 10,952 10,590 9,535 9,640 9,500 393 434 409 400 400 400 568 1,068 1,043 1,000 1,000 1,000 2,809 2,480 2,399 2,235 2,387 2,350 19,206 18,594 18,906 18,130 18,393 18,000 1,509 1,307 1,178 1,083 1,102 966 6,152 4,928 4,839 4,139 3,842 3,500 7,314 7,671 7,166 5,637 8,179 6,800 1,967 1,926 1,883 1,889 1,816 1,800 3,912 3,985 4,061 4,032 4,105 4,150 3,144 3,047 2,700 3,800 2,075 2,500 21,149 24,033 21,454 29,024 31,626 31,400 7.50 18.80 9.80 6.30 7.20 7.30 49,153 59,568 51,412 53,623 51,412 56,300 14,577 14,652 14,000 11,804 14,000 14,500 - - 1,990 600 1,990 3,900 1,284,779 1,301,528 1,204,478 1,224,661 1,208,079 1,179,096 65,000 90,000 120,000 75,000 60,000 60,000 29,494 30,320 30,605 26,574 29,613 28,976 5,692 5,498 5,369 5,357 5,490 5,600 - 213 - 00 rl H 06 O N N M �O �O N O Vl M N M OC -ti N o6 O N O M M N Do Vl M N MocO V) N O N 00 N 00 zt oc l� O Vl N p N 00 N oc M� V O N cq 00 U N M M kn M N M \O l� l— M Vl M N 00 NOC N N00 Z O N O � � N W CO O M N MS 00N W-1 N ~ N oc O N rq 00Vl O M p N oc N o o O in, Cs� nn d cr o cn U ca W60 a � w a � � wV—) � V') v� v Q ADDITIONAL DISCLOSURES REQUIRED BY SEC RULE 15c2-12 Amount As Percent of Per Capita Applicable as of Assessed Estimated 2000 Census December 31,2018 Value True Value 54,167 Assessed Valuation of Taxable Real Property,2017 $ 1,670,725,439 100.00% 33.33% $ 30,843.97 Estimated True Value of Taxable Real Property,2017 5,012,176,317 300.00% 100.00% 92,531.92 Direct Bonded Debt payable from Property Taxes(1) Payable From Property taxes $ 61,210,000 3.66% 1.22% $ 1,130.02 Self-Supporting Debt 58,367,861 3.49% 1.16% 1,077.55 Total Direct Bonded Debt $ 119,577,861 7.16% 2.39% $ 2,207.58 Overlapping Bonded Debt Payable from Property Taxes(2) Schools $ 37,351,438 2.24% 0.75% $ 689.56 Other Than Schools 71,341,524 4.27% 1.42% 1,317.07 Total Overlapping Bonded Debt $ 108,692,962 6.51% 2.17% $ 2,006.63 Total Direct and Overlapping Bonded Debt $ 228,270,823 13.66% 4.55% $ 4,214.20 Total Direct and Overlapping Bonded Debt Excl.Self-Supporting $ 169,902,962 10.17% 3.39% $ 3,136.65 $ 4,214.20 CAFR Page 197-Schedule of General Lond-Term Debt 20118 1530000 Prop Tax 2012 1745000 Prop Tax 2013 9800000 Self 2014 4675000 Prop Tax 2016 5960000 Prop Tax 2016A 8860000 Prop Tax 2017 4815000 Self 2018A 7060000 Self 20188 38440000 Prop Tax Loan Contract 57500 Self Installment Note 590000 Self Business District Note 33192363 Self Unamortized Bond Discount 2852998 Self 119577861 61210000 Prop Tax 58367861 Self 119577861 Verify with Overlapping Debt Schedule School 37351438 Other 71341524 108692962 - 215 - Principal Maturities Due Source of Payments Total Maturities Debt Service Tax Levies Calendar Property Annual Cumul. Levy Property Date Taxes Amount Percent Year Taxes 2019 3,140,000 3,140,000 3.8% 2018 6,422,733 2020 4,015,000 4,015,000 8.6% 2019 6,995,470 2021 4,590,000 4,590,000 14.2% 2020 7,444,640 2022 4,505,000 4,505,000 19.6% 2021 7,224,030 2023 2,780,000 2,780,000 23.0% 2022 5,372,844 2024 2,890,000 2,890,000 26.4% 2023 5,393,244 2025 3,025,000 3,025,000 30.1% 2024 5,413,044 2026 3,160,000 3,160,000 33.9% 2025 5,540,094 2027 3,285,000 3,285,000 37.9% 2026 5,454,144 2028 3,435,000 3,435,000 42.0% 2027 5,493,069 2029 3,075,000 3,075,000 45.7% 2028 5,016,475 2030 3,335,000 3,335,000 49.7% 2029 5,140,400 2031 3,510,000 3,510,000 54.0% 2030 5,167,063 2032 3,695,000 3,695,000 58.4% 2030 5,196,088 2033 3,890,000 3,890,000 63.1% 2031 5,227,025 2034 3,170,000 3,170,000 67.0% 2033 4,335,119 2035 3,320,000 3,320,000 71.0% 2034 4,372,850 2036 3,475,000 3,475,000 75.2% 2035 4,408,219 2037 3,630,000 3,630,000 79.5% 2036 4,437,275 2038 2,560,000 2,560,000 82.6% 2037 3,235,200 2039 2,660,000 2,660,000 85.8% 2038 3,236,000 2040 2,765,000 2,765,000 89.2% 2039 3,234,600 2041 2,875,000 2,875,000 92.6% 2040 3,234,000 2042 2,990,000 2,990,000 96.2% 2041 3,234,000 2043 3,110,000 3,110,000 100.0% 2042 3,234,400 $82,885,000 $82,885,000 - 216 - Ratio to Estimated Actual Value Per Capita(3) Direct Debt Direct&Overlapping Debt Direct&Overlapping Debt Including Excluding Including Excluding Including Excluding Village Issue Self- Self- Self- Self- Self- Self- Sale Date Amount Supporting Supporting(2) Supporting Supporting(2) Supporting Supporting(2) January 21,2003 12,235,000 1.39% 1.05% 3.77% 3.43% 2,544.05 2,316.16 December 15,2006 10,000,000 0.78% 0.69% 2.72% 2.63% 2,362.39 2,287.21 February 17,2009 10,000,000 0.72% 0.72% 2.45% 2.45% 2,445.85 2,445.85 December 1,2009 3,430,000 0.70% 0.70% 2.47% 2.47% 2,749.42 2,749.42 December 1,2009 2,650,000 0.70% 0.70% 2.47% 2.47% 2,749.42 2,749.42 July 29,2011 4,100,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 July 29,2011 5,160,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 January 3,2012 2,975,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 September 10,2013 9,800,000 0.92% 0.92% 3.42% 3.42% 3,042.80 3,043.80 February 4,2014 6,279,000 1.13% 1.09% 3.74% 3.71% 3,253.40 3,223.59 September 8,2016 8,735,000 2.00% 1.16% 5.29% 4.45% 3,356.50 3,309.47 December 1,2016 9,100,000 1.90% 1.09% 5.25% 4.43% 3,356.50 3,296.96 December 20,2017 9,740,000 1.64% 1.04% 3.78% 3.19% 3,385.89 2,829.19 May 1,2018 7,060,000 1.62% 0.62% 3.79% 2.75% 4,214.20 2,450.93 October 16,2018 38,440,000 2.39% 1.28% 4.55% 3.41% 4,214.20 3,135.48 - 217 - 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 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%) 2014 1,390,377,678 33,230,688 1,423,608,366 2.4% 2015 1,354,550,848 32,251,850 1,386,802,698 (2.6%) 2016 1,619,158,852 47,669,419 1,666,828,271 20.2% 2017 1,670,725,439 - 1,670,725,439 0.2% - 218 - Percent of Village's Applicable Share Village's 2017 of Gross Debt to be Real Property Gross Paid From Property Taxes(1) SCHOOL DISTRICTS: in Taxing Body Bonded Debt Percent Amount Elementary Districts: Mount Prospect No.57 37.7% 7,860,000 94.911% 7,460,005 Community Consolidated No.59 26.7% 12,385,000 16.780% 2,078,203 River Trails No.26 26.4% 8,665,000 78.036% 6,761,819 Wheeling Community Consolidated No.21 3.4% 30,255,000 3.125% 945,469 Arlington Heights No.25 3.2% 47,360,000 2.625% 1,243,200 Prospect Heights No.23 2.5% 7,540,000 7.647% 576,584 High School Districts: Wheeling/Elk Grove No.214 99.8% 37,480,000 19.282% 7,226,894 Maine Township No.207 0.2% 14,540,000 0.072% 10,469 Community Colleges: Oakton No.535 0.2% 34,150,000 0.015% 5,123 Harper No.512 99.8% 126,895,000 8.703% 11,043,672 Total Schools 37,351,438 OTHER THAN SCHOOL DISTRICTS: Cook County, Including Forest Preserve District 100.0% 3,193,246,750 1.108% 35,381,174 Metropolitan Water Reclamation District 100.0% 1,910,355,000 1.129% 21,567,908 Park Districts: Mount Prospect 66.8% 20,923,888 67.760% 14,178,027 River Trails 25.4% - - - Arlington Heights 2.8% 11,200,000 1.606% 179,872 Des Plaines 1.8% 2,050,000 1.685% 34,543 Prospect Heights 3.3% - - - Total Other Than Schools 71,341,524 - 219 - Levy Years Village of Mount Prospect: 2013 2014 2015 2016 2017 Bonds and Interest $ 0.167 $ 0.165 $ 0.170 $ 0.143 $ 0.146 Pensions(Police, Fire) 0.393 0.387 0.426 0.381 0.384 Police Protection - - 0.372 0.311 0.312 Fire Protection - - 0.384 0.322 0.301 Corporate 0.689 0.724 - - - Garbage 0.026 - - - - Total Village $ 1.275 $ 1.276 $ 1.352 $ 1.157 $ 1.143 Cook County, Including Forest Preserve District 0.629 0.637 0.621 0.596 0.558 Metropolitan Water Reclamation District 0.417 0.430 0.426 0.406 0.402 Mount Prospect Park District 0.657 0.654 0.681 0.594 0.609 Mount Prospect Public Library 0.761 0.758 0.801 0.687 0.681 Special Service Area No.5 0.140 0.138 0.142 0.119 0.118 Community Consolidated School District No. 59 3.172 3.176 3.291 2.998 3.031 Township High School District No.214 2.768 2.776 2.881 2.527 2.563 Harper College No.512 0.444 0.451 0.466 0.416 0.425 All Other 0.155 0.124 0.158 0.105 0.135 Total(2) $ 10.418 $ 10.420 $ 10.819 $ 9.605 $ 9.665 Village as a Percent of Total 12.2% 12.2% 12.5% 12.0% 11.8% - 220 - Total Taxes Collected as Levy Collection Total Taxes of December 31, 2018(Note 1) Year Year Extended Amount Percent(2) 2012 2013 16,477,871 16,278,228 98.79% 2013 2014 17,301,436 17,064,355 98.63% 2014 2015 17,741,219 17,521,845 98.76% 2015 2016 18,313,527 18,130,372 99.00% 2016 2017 18,733,668 18,534,114 98.93% 2017 2018 19,096,392 18,865,589 98.79% - 221 - Equalized Assessed Percent of Rank Taxpayer Business/Properties Valuation(1) Village(2) 1 DLC Management Corporation Shopping Center 24,376,335 1.46% 2 Home Properties Colony Square Apartments 20,042,926 1.20% 3 Mount Prospect Plaza Shopping Center 18,365,958 1.10% 4 United Airlines Inc. Operations Center 14,703,087 0.88% 5 Individual Commercial 13,621,004 0.82% 6 Golf Plaza I and II Shopping Center 13,140,778 0.79% 7 Cummins Allison Corporation Manufacturing 7,845,274 0.47% 8 First Industrial Realty Real Estate 7,733,139 0.46% 9 Costco Properties Warehouse Store 7,723,057 0.46% 10 LIT Industrial Limited Real Estate 7,569,734 0.45% $ 135,121,292 8.09% - 222 - Village of Mount Prospect Taxable Valuation Percent of Total Classification 2010 2017 % Increase 2010 2017 Residential 1,330,339,716 1,185,479,107 -10.89% 72.51% 70.96% Commercial 332,297,825 321,277,244 -3.32% 18.11% 19.23% Industrial 171,115,770 162,946,209 -4.77% 9.33% 9.75% Railroad 927,196 1,022,879 10.32% 0.05% 0.06% Total 1,834,680,507 1,670,725,439 -8.94% 100.00% 100.00% - 223 - Actual 2018 Revenues: 2014 2015 2016 2017 Budget Actual Property Taxes 14,392,732 15,317,183 15,917,480 16,112,039 16,540,000 16,112,039 Sales Taxes 14,640,814 16,370,735 17,202,418 19,458,742 23,225,000 23,658,634 State Income Taxes 5,186,155 5,763,542 5,272,834 4,975,194 5,150,000 5,187,361 Licenses,Permits&Fees 2,496,760 2,428,969 2,350,787 2,334,232 2,695,000 2,484,451 Utility Taxes 4,093,598 3,774,729 3,629,525 3,491,473 3,420,000 3,476,969 Charges for Service 1,928,223 1,699,217 1,782,869 1,527,168 1,324,900 1,475,149 Fines&Forfeits 470,466 511,536 414,885 415,189 377,000 403,842 Investment Income (64,978) 8,612 49,202 132,925 315,000 318,490 Food&Beverage Tax 738,642 759,073 805,172 839,472 815,000 884,637 Real Estate Transfer Tax 954,644 1,371,699 1,049,770 1,190,331 1,430,000 1,426,037 All Other Revenues 2,450,829 2,315,618 3,076,582 3,325,198 3,051,360 3,539,116 Total Revenues $47,287,885 $50,320,913 $51,551,524 $53,801,963 $58,343,260 $58,966,725 Expenditures: General Government Public Representation Division 142,574 137,716 141,249 134,039 167,901 159,710 Village Manager's Office 3,166,149 3,529,065 4,031,450 4,730,808 4,201,126 3,733,109 Finance Department 2,007,010 1,945,587 1,972,523 2,466,917 3,159,770 2,735,100 Community Development-Administration 673,549 662,596 734,282 933,069 1,308,889 1,109,904 Benefit Payments 46,300 46,455 46,615 46,780 46,950 5,819 Total General Government $ 6,035,582 $ 6,321,419 $ 6,926,119 $ 8,311,613 $ 8,884,636 $ 7,743,642 Public Safety: Code Enforcement 880,723 812,292 877,060 820,925 785,310 854,780 Police Department 16,578,937 16,277,671 17,067,883 17,823,169 18,584,620 18,564,213 Fire&Emergency Protection Department 13,166,937 13,171,002 14,473,302 15,522,366 15,570,718 15,586,449 Total Public Safety $30,626,597 $30,260,965 $32,418,245 $34,166,460 $34,940,648 $35,005,442 Highways&Streets 7,500,480 6,935,457 7,282,165 7,613,341 8,414,227 7,915,559 Health 151,586 148,731 160,555 261,533 285,148 306,314 Welfare 1,585,083 1,529,810 1,561,199 1,548,489 1,660,594 1,410,612 Culture&Recreation 421,517 467,611 499,208 585,907 605,972 572,169 Net Transfers(In)/Out - 281,599 1,240,625 600,000 2,392,000 2,354,391 Total Expenditures $46,320,845 $45,945,592 $50,088,116 $53,087,343 $57,183,225 $55,308,129 Revenues Over(Under)Expenditures $ 967,040 $ 4,375,321 $ 1,463,408 $ 714,620 $ 1,160,035 $ 3,658,596 Ending Fund Balance $12,845,622 $17,220,943 $18,684,351 $19,398,971 $20,559,006 $23,057,567 - 224 - Assets: 2014 2015 2016 2017 2018 Cash&Investments $ 6,879,252 $ 11,009,774 $ 11,892,092 $ 14,814,727 $ 16,672,691 Receivables Property Taxes 15,160,497 15,733,573 16,087,246 16,333,702 16,290,898 Other Taxes 5,747,674 6,344,148 6,772,937 6,220,011 7,994,192 All Other 468,180 471,824 435,700 417,856 371,481 Due From Other Funds 154,882 473,348 735,763 92,845 22,254 Due From Other Governments 136,834 159,403 653,254 186,629 49,471 All Other Assets 337,165 204,023 188,247 261,219 220,065 Total Assets $ 28,884,484 $ 34,396,093 $ 36,765,239 $ 38,326,989 $ 41,621,052 Liabilities&Fund Balance Accounts Payable $ 216,535 $ 578,648 $ 833,274 $ 1,463,624 $ 957,709 Deferred Revenues Property Taxes 15,138,046 15,691,708 16,087,246 16,333,702 16,290,898 All Other Liabilities 684,281 904,794 1,160,368 1,130,692 1,314,878 Fund Balance: Nonspendable 337,165 204,023 188,247 261,219 220,065 Restricted - - - - - Committed - - - - - Unassigned 12,508,457 17,016,920 18,496,104 19,137,752 22,837,502 Total Fund Balance $ 12,845,622 $ 17,220,943 $ 18,684,351 $ 19,398,971 $ 23,057,567 Total Liabilities&Fund Balance $ 28,884,484 $ 34,396,093 $ 36,765,239 $ 38,326,989 $ 41,621,052 - 225 - Fiscal Year Ended December 31,2018 Revenue Revenue Ind.Transfers Over Property (Under) Fund Governmental Fund Types(2): 2014 2015 2016 2017 Tax Total Expenditures Balance General Fund* $ 12,845,622 $ 17,220,943 $ 18,684,351 19,398,971 $ 16,368,958 $ 58,966,725 $ 3,658,596 $ 23,057,567 Special Revenue Funds: Motor Fuel Tax $ 1,397,365 $ 1,927,676 $ 2,465,482 2,744,472 $ - $ 1,429,563 $ (313,337) $ 2,431,135 Community Development Block Grant - - - - - 387,846 - - Refuse Disposal* 1,652,809 1,191,201 1,363,621 1,442,645 - 4,407,105 (121,891) 1,320,754 Asset Seizure 83,675 92,655 173,079 172,908 - 11,283 (31,653) 141,255 DEA shared Funds 19,938 19,951 20,013 20,194 - 114 114 20,308 DUI Fines 101,080 124,735 121,449 140,928 - 21,976 (3,555) 137,373 Foreign Fire Tax Fund 287,977 302,729 341,678 352,423 - 82,028 45,808 398,231 Business District Fund - - - - - 1,571,930 - - Police&Fire Building Construction - - - - - 33,527,683 31,720,180 31,720,180 Prospect/Main TIF (687,995) 3,945,027 469,613 7,566,720 (3,246,097) 698,930 Total Special Revenue 3,542,844 3,658,947 3,797,327 8,818,597 $ 469,613 $ 49,006,248 28,049,569 36,868,166 Debt Service* 131,635 154,206 168,152 184,195 2,390,000 13,110,709 3,966,311 4,150,506 Capital Projects(3) 17,785,571 4,738,536 3,224,446 3,579,214 - 6,560,635 1,998,547 5,577,761 Total Governmental $ 34,305,672 $ 25,772,632 $ 25,874,276 31,980,977 $ 19,228,571 $127,644,317 $ 37,673,023 $ 69,654,000 Proprietary&Fiduciary Fund Types Enterprise Funds(4): Water and Sewer* 34,240,404 41,273,710 40,610,650 41,327,962 $ - $ 14,498,866 $ (1,170,553) 40,157,409 Village Parking System 349,414 643,238 588,378 704,700 - 347,912 21,253 725,953 Internal Service Funds(5) 15,797,609 17,537,531 19,174,062 19,736,825 - 12,946,604 1,378,787 21,115,612 Pension Trust Funds: Police Pension 58,819,925 58,500,040 61,976,686 71,069,062 - 5,209,659 (4,694,954) 66,374,108 Firefighter's Pension 56,568,339 56,856,702 58,344,829 66,265,340 4,718,413 (3,866,810) 62,398,530 Total Proprietary&Fiduciary $165,775,691 $174,811,221 $180,694,605 $199,141,779 $ - $ 37,721,454 $ (8,332,277) $190,771,612 Total All Funds(Memo Only) $200,081,363 $200,583,853 $206,568,881 $231,122,756 $ 19,228,571 $165,365,771 $ 29,340,746 $260,425,612 "Designated as major funds. Cash&Investments at 12/31(s): 2014 2015 2016 2017 2018 General Fund $ 6,879,252 $ 11,009,774 $ 11,892,092 $ 14,814,727 $ 16,672,691 Internal Service Funds 10,476,211 11,551,998 13,177,384 12,210,417 11,769,387 Refuse Disposal 1,365,133 844,053 960,475 1,054,842 949,936 Police&Fire Building Construction - - - - 31,708,378 Other Special Revenue Funds 2,716,735 3,541,745 4,399,893 8,748,239 4,554,717 Debt Service Funds 130,210 138,721 167,652 162,895 4,100,470 Subtotal $ 21,567,541 $ 27,086,291 $ 30,597,496 $ 36,991,120 $ 69,755,579 Capital Project Funds 16,290,597 5,442,661 2,794,596 3,209,472 5,949,833 Water&Sewer 4,697,147 3,185,314 3,179,625 7,577,274 12,425,604 Other Enterprise Funds 300,258 488,612 428,260 531,623 578,367 Pension Trust Funds 115,091,487 115,116,154 119,963,475 137,068,690 128,571,320 Other Fiduciary Funds 1,209,488 1,136,998 1,368,315 1,126,624 1,115,737 Total $159,156,518 $152,456,030 $158,331,767 $186,504,803 $218,396,440 - 226 - Governmental Business Type Activities Activities Capital Assets Not Being Depreciated Capital Assets Not Being Depreciated Land $ 13,129,128 Land $ 17,551,172 Construction in Progress $ 7,027,926 Construction in Progress $ 1,582,725 Total Assets Not Being Depreciated $ 20,157,054 Total Assets Not Being Depreciated $ 19,133,897 Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings $ 38,778,498 Buildings and Improvements $ 4,499,808 Improvements Othern Than Buildings 436,273 Equipment 5,017,968 Infrastructure and All Other 102,072,046 Infrastructure 30,471,983 Total Capital Assets Being Depreciated $ 141,286,817 Total Capital Assets Being Depreciated $ 39,989,759 Less Accumulated Deprteciation $ 93,026,937 Less Accumulated Deprteciation $ 21,535,629 Total Capital Assets Being Depreciated,Net $ 48,259,880 Total Capital Assets Being Depreciated,Net $ 18,454,130 Net Assets $ 68,416,934 Net Assets $ 37,588,027 - 227 - Village of Mount Prospect int p Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FROM: TIM MCDERMOTT, AUDIT COMMITTEE CHAIR DATE: AUGUST 9, 2019 SUBJECT: ANNUAL REPORT OF AUDIT COMMITTEE—2018 The audit for the fiscal year 2018 is complete and 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 fifth year of their five-year engagement with the Village. During the past year,the Audit Committee met on June 26,2018. Included on the agenda for this meeting was a discussion on results of the 2018 Comprehensive Annual Financial Report (CAFR), Single Audit Report, Auditor Communication to the Village Board and Management Letter comments as prepared by Sikich LLP.The committee also discussed the annual report the Audit Committee is to make to the Village Board. Audit Committee activities included: • At the June 26 meeting, the Audit Committee met with Village staff and the audit manager in charge of the audit, Martha Trotter. A presentation on the 2018 audit was made by staff and auditor. Items discussed included overall results of the audit,financial statement, and the impact of the application of GASB 75 (Other Post Employment Benefits) on the financial statement.The first time application of GASB 75 (Other Post Employment Benefit) reported a restatement of $11.0 million as a change in the accounting principal, and as of December 31, 2018, a net OPEB obligation of$10.37 million is reported. • At the June meeting, the Audit Committee met with staff to discuss the annual report to the Village Board. The following are some of the significant items from the 2018 Audit. • On page two of the Comprehensive Annual Financial Report, the firm expresses in their opinion that the financial statements present fairly in all respects the financial position for the year ended December 31, 2018, in accordance with generally accepting accounting principles. c 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 Village's financial statements and position. Annual Report of Audit Committee—2018 Activities July 16, 2019 Page 2 • The Committee also reviewed the audit firm's Management Letter and Auditor Communication to the Board that accompanied the audit report. The Management Letter communicates whether there are any material weaknesses in internal control. The auditor identified none. Auditor Communication to the Board communicates certain information related to the performance of the audit. Also included in this report are recommendations for addressing any deficiency in internal control as well as an update from any recommendation made during the prior year's audit. c There were no management letter comments identified for the current year. • Other information provided in the auditor communication for 2018 included future accounting pronouncements. These future pronouncements are changes to accounting rules that may have an impact on Village finances in the future. A total of six new pronouncements were noted with effective dates between December 31, 2019, and December 31, 2020. • The year 2018 Comprehensive Annual Financial Report (CAFR) also incorporates the state GATA requirements of the Consolidated Year-End Financial Report.This report is expected to be part of the CAFR each year going forward.The report depicts the expenses funded through grants and all other non-grant funded expenses as well. • A single audit was not required as federal grant related expenses incurred during the year 2018 were not more than $750,000. Federal grants include CDBG programs and Body Armor Grant. • The final item we are highlighting from the Comprehensive Annual Financial Report is under the first tab (Introduction). On page viii is the Certificate of Achievement for Excellence in Financial Reporting that the Village received for its 2017 report. This marks the 25th consecutive year the Village has received this award. Application has been made to the Certificate program for the fiscal year 2018. Notice of the award is expected toward the end of 2019. The next meeting of the Audit Committee is expected in late 2019 to discuss the audit engagement for 2020. The Audit Committee and staff are satisfied with the work of Sikich on the Village's audit and will have them return for the final year of the five-year engagement. Please contact me should you have any questions or need additional information related to this report or the Audit Committee activities. Respectfully Submitted, Tim McDermott