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Home My WebLink About3.1 Annual Report of the Audit CommitteeBoardDocs® Pro Agenda Item Details Page 1 of 1 Meeting Jul 18, 2017 - 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, 2016. Type Discussion, Information 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 2016 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, Audit Manager and staff will be on hand to present information and answer questions on the recently concluded audit process and 2016 CAFR. Al�orn��i�ioc 1. Accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for period ending December 31, 2016. 2. Action at discretion of Village Board. Staff Recommendation Staff recommends the Village Board accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for Period Ending December 31, 2016. Annual Report AC..... 2 ®Ipd -f (3 97 IIK IIS http://www.boarddocs.com/il/vomp/Board.nsf/Public 7/17/2017 Village of Mount Prospect Wit Prospc Mount Prospect, Illinois INTEROFFICE MEMORANDUM f TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FROM: TIM MCDERMOTT, AUDIT COMMITTEE CHAIR DATE: JULY 12, 2017 SUBJECT: ANNUAL REPORT OF AUDIT COMMITTEE — 2016 The audit for fiscal year 2016 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 marked the completion of the third year of their five-year engagement with the Village. During the past year, the Audit Committee met twice, on June 20 and July 11, 2017. Agendas for these meetings included discussion on results of the 2016 Comprehensive Annual Financial Report, Single Audit and TIF reports, and management letter comments as prepared by Sikich LLP. The committee also discussed the annual report of the Audit Committee to the Village Board. Audit Committee activities included: In January, the Audit Committee Chair and Finance Director reviewed the engagement letter for the 2016 audit. Terms and conditions of the engagement were consistent with their original proposal. The letter was forwarded to the Village President for signature to allow audit work to .. u. •.7TT iT7"i7.7� • At the June 20 meeting, the Audit Committee met with Village staff and the partner in charge of the audit, Jim Savio. A presentation on the 2016 audit was made by staff and auditor. Items discussed included overall results of the audit, the management letter/auditor communication to the Board, single audit for federal grants and TIF reports. • At the July 11 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 2016 Audit. • On page two of the Comprehensive Annual Financial Report, the firm expresses that the financial statements present fairly in all respects the financial position for year ended December 31, 2016 in accordance with generally accepting accounting principles. o 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 — 2016 July 12, 2017 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. None were identified by the auditor. The 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. o There was one (1) current year management letter comment. It was recommended that the Village develop and implement a formal written accounts receivable write-off policy. Work on the new policy will be done during 2017. Other information provided in the auditor communication for 2016 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 eight new pronouncements were noted with effective dates between December 31, 2017 and December 31, 2019. One pronouncement of note is GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Statement No. 75 requires governments providing defined benefit OPEB to recognize their long-term obligation for OPEB as a liability for the first time, and to more comprehensively and comparably measure the annual cost of OPEB benefits. This Statement also enhances accountability and transparency through revised and new note disclosures and required supplementary information (RSI). The provisions in Statement No. 75 are effective for financial statements for the fiscal year ended December 31, 2018. The Village must incorporate the changes related to the pronouncement as retiring employees are offered to remain on the Village's health plan, although paying 100% of the monthly premium. This pronouncement continues a trend of moving away from off-balance sheet items to including them on the governmental -wide financial statements. The impact to the net position of the Village from Statement No. 75 will be a reduction of $10,485,116 (based on December 2014 figures, most currently available). Previously, the Village implemented GASB Statement No. 68, Accounting and Financial Reporting for Pension. This pronouncement required the Village to recognize the long- term obligation for pension benefits for police, fire and general employees. The impact to the net position of the Village from Statement No. 68 was a reduction of $72,968,926. The impact on the government -wide financials from incorporating GASB Statements Nos. 68 and 75 is a reduction in the net position of $83,454,042. At December 31, 2016, the Village's net position is a negative $53,996,163. Please note that the liabilities for pensions and OPEB had always been accounted for and reported in the annual financial report. The difference is now the liability appears in the government -wide financials rather than as a footnote disclosure. Annual Report of Audit Committee — 2016 July 12, 2017 Page 3 o There was one (1) prior year management letter comment. Prior year comment recommended a credit card policy be formulated to encompass credit card usage and authorizations and communicate the policy to all authorized users. The auditor recommendation has been satisfactorily addressed. • A single audit was required as federal grant related expenses totaling greater than $750,000 were incurred during the year. Federal grants include CDBG programs and SAFER funding. A total of $1.1 million in grant expenses were incurred during 2016. A similar amount is expected for 2017 as both the CDBG and SAFER programs remain in place for this budget year. • A final TIF report was generated for the Downtown Redevelopment TIF. The TIF Fund was closed out and a new Prospect and Main TIF was created. An initial TIF report on the Prospect and Main TIF will be prepared for the period ending December 31, 2017 if cumulative property tax receipts exceed $100,000. The final item we are highlighting from the Comprehensive Annual Financial Report is under the first tab (Introduction). On page xi is the Certificate of Achievement for Excellence in Financial Reporting that the Village received for its 2015 report. This marks the 23rd consecutive year the Village has received this award. Application has been made to the Certificate program for fiscal year 2016. Notice of the award is expected toward the end of 2017. The next meeting of the Audit Committee is expected in late 2017 to discuss the audit engagement for 2017. The Audit Committee and staff are satisfied with the work of Sikich on the Village's audit and will have them return for year four 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 VILLAGE OF MOUNT PROSPECT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2016 Prepared by: Finance Department David O. Erb Finance Director/Treasurer Lynn M. Jarog Deputy Finance Director VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION PrincipalOfficials................................................................................................................... i OrganizationalChart .............................................................................................................. ii Letterof Transmittal............................................................................................................... iii -x Certificate of Achievement for Excellence in Financial Reporting ...................................... xi FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT............................................................................ 1-3 Management's Discussion and Analysis.................................................................... MD&A 1-11 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Basic Financial Statements Government -Wide Financial Statements Statement of Net Position........................................................................................ 4-5 Statement of Activities............................................................................................ 6-7 Fund Financial Statements Governmental Funds BalanceSheet....................................................................................................... 8-9 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position ......................... 10 Statement of Revenues, Expenditures, and Changes in Fund Balances ............. 1 l Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities........................................................... 12 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Position.................................................................................... 13-14 Statement of Revenues, Expenses, and Changes in Net Position ....................... 15 Statement of Cash Flows..................................................................................... 16-17 Fiduciary Funds Statement of Fiduciary Net Position................................................................... 18 Statement of Changes in Fiduciary Net Position ................................................ 19 Notes to Financial Statements...................................................................................... 20-79 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual GeneralFund........................................................................................................... 80 RefuseDisposal Fund.............................................................................................. 81 Schedule of Funding Progress Other Postemployment Benefits Plan................................................................. 82 Schedule of Employer Contributions Illinois Municipal Retirement Fund........................................................................ 83 PolicePension Fund................................................................................................ 84 Firefighters' Pension Fund................................................................................. 85 Other Postemployment Benefits Plan................................................................. 86 Schedule of the Village's Proportionate Share of the Net Pension Liability Illinois Municipal Retirement Fund...................................................................... 87 Schedule of Changes in the Employer's Net Pension Liability and Related Ratios PolicePension Fund................................................................................................ 88 Firefighters' Pension Fund...................................................................................... 89 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........................................................................................... 90 Firefighters' Pension Fund................................................................................. 91 Notes to Required Supplementary Information....................................................... 92 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund Schedule of Revenues - Budget and Actual............................................................ 93-95 Schedule of Expenditures - Budget and Actual ...................................................... 96 Schedule of Detailed Expenditures - Budget and Actual ....................................... 97-108 Special Revenue Fund Refuse Disposal Fund Schedule of Operating Revenues - Budget and Actual ....................................... 109 Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual .................................................... 110 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet............................................................................................ 111 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances......................................................................................... 112 Nonmajor Special Revenue Funds Combining Balance Sheet....................................................................................... 113-114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances.................................................................................... 115-116 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) 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 Schedule of Expenditures - Budget and Actual. Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Schedule of Expenditures - Budget and Actual. Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Asset Seizure Fund .......................................... Federal Equitable Share Fund ......................... DUI Fines Fund ............................................... Foreign Fire Insurance Fund ............................ Business District Fund ..................................... Prospect/Main TIF Fund .................................. Nonmajor Capital Projects Funds Combining Balance Sheet ............................................. Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................................... Capital huprovement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ...... Schedule of Expenditures - Budget and Actual ........ Downtown Redevelopment Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ...... Schedule of Expenditures - Budget and Actual ......... Page(s) 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS (Continued) Nonmajor Capital Projects Funds (Continued) Flood Control Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Schedule of Expenditures - Budget and Actual. Street Improvement Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual MAJOR ENTERPRISE FUND Water and Sewer Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ........... Schedule of Operating Revenues - Budget and Actual Schedule of Operating Expenses - Budget and Actual NONMAJOR ENTERPRISE FUNDS Combining Statement of Net Position............................................................. Combining Statement of Revenues, Expenses, and Changes in Net Position Combining Statement of Cash Flows.............................................................. Parking System Revenue Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ........... Schedule of Operating Expenses - Budget and Actual Village Parking System Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... Schedule of Operating Expenses - Budget and Actual ........................................... INTERNAL SERVICE FUNDS Combining Statement of Net Position......................................................................... Combining Statement of Revenues, Expenses, and Changes in Net Position ............ Combining Statement of Cash Flows.......................................................................... Page(s) 133 134 135 136 137 138-140 141 142 143-144 145 146 147 148 149 150 151-152 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) INTERNAL SERVICE FUNDS (Continued) Computer Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 153 Schedule of Operating Expenses - Budget and Actual ........................................... 154 Risk Management Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 155 Schedule of Operating Revenues - Budget and Actual .......................................... 156 Schedule of Operating Expenses - Budget and Actual ........................................... 157 Vehicle Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 158 Schedule of Operating Revenues - Budget and Actual .......................................... 159 Schedule of Operating Expenses - Budget and Actual ........................................... 160 Vehicle Maintenance Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 161 Schedule of Operating Revenues - Budget and Actual .......................................... 162 Schedule of Operating Expenses - Budget and Actual ........................................... 163 FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Net Position - Pension Trust Funds ............................... 164 Combining Statement of Changes in Net Position - Pension Trust Funds ............ 165 Schedule of Changes in Net Position - Budget and Actual PolicePension Fund............................................................................................ 166 Firefighters' Pension Fund.................................................................................. 167 AGENCYFUNDS Combining Statement of Changes in Assets and Liabilities - Agency Funds.................................................................................... 168-169 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) SUPPLEMENTAL DATA LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS Schedule of General Long -Term Debt......................................................................... 170-171 LONG-TERM DEBT REQUIREMENTS General Obligation Bonds of 2009.............................................................................. 172 General Obligation Refunding Bonds of 2009B......................................................... 173 Taxable General Obligation Bonds of 2009C............................................................. 174 General Obligation Bonds of 2011B............................................................................ 175 General Obligation Bonds of 2012.............................................................................. 176 General Obligation Bonds of 2013.............................................................................. 177 General Obligation Bonds of 2014.............................................................................. 178 General Obligation Refunding Bonds of 2016............................................................ 179 General Obligation Refunding Bonds of 2016A......................................................... 180 IEPA Flood Loan (L17-0855) Contract Payable of 1997 ............................................ 181 IEPA Flood Loan (L17-1087) Contract Payable of 1999 ............................................ 182 Installment Note Payable of 2012................................................................................ 183 ADDITIONAL SUPPLEMENTAL DATA Schedule of Insurance in Force.................................................................................... 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 Sale Taxes by Category......................................................................... 202 Direct and Overlapping Sales Tax Rates.................................................................. 203 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) STATISTICAL SECTION (Continued) Debt Capacity Page(s) 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 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 .................................................. 215-222 Paul Wm. Hoefert Colleen E. Saccotelli John J. Matuszak VILLAGE OF MOUNT PROSPECT, ILLINOIS PRINCIPAL OFFICIALS December 31, 2016 LEGISLATIVE Arlene A. Juracek, Mayor Steven S. Polit Richard F. Rogers ADMINISTRATIVE Michael J. Cassady, Village Manager Nellie S. Beckner, Assistant to the Village Manager David O. Erb, Finance Director/Treasurer William J. Cooney, Jr., Director of Community Development Julie K. Kane, Director of Human Services Brian Lambel, Fire Chief Timothy Janowick, Police Chief Sean P. Dorsey, Director of Public Works Karen Agoranos, Deputy Village Clerk -i- Michael A. Zadel VILLAGE OF MOUNT PROSPECT ORGANIZATIONAL STRUCTURE Electorate Village Board Mayor and Six Trustees Elected At Large Audit Committee Boards Village Services Commissions Fire & Police Fire Pension Board Commissioners Village Manager Finance Commission Economic Development Commission Police Pension Board Foreign Fire Insurance Tax Board Village Finance Department Administration Transportation Safety Commission Planning &Zoning Commission Community Human Services Development Department Department Special Events Commission Centennial Commission Police DepartmentFire Department Sister Cities Commission Public Works Department - H - MAYOR Arlene A. Juracek TRUSTEES William A. Grossi Eleni Hatzis Paul Wm. Hoefert Richard F. Rogers Colleen E. Saccotelli Michael A. Zadel June 21, 2017 Moana Village of Mount Prospect 50 South Emerson Street, Mount Prospect, Illinois 60056 The Honorable Arlene A. Juracek, Village President Members of the Board of Trustees Village Manager Michael J. Cassady, and Citizens of the Village of Mount Prospect, Illinois VILLAGE MANAGER Michael J. Cassady VILLAGE CLERK Karen Agoranos Phone: 847/392-6000 Fax: 847/392-6022 iviviv.mountprospect.org The Comprehensive Annual Financial Report of the Village of Mount Prospect, Illinois for the fiscal year ended December 31, 2016 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, 2016, 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, 2016 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Village's MD&A can be found immediately following the report of the independent auditors. Profile of the Village of Mount Prospect The Village of Mount Prospect, a home rule community as defined by the Illinois Constitution, was incorporated February 3, 1917 and is located 22 miles northwest from downtown Chicago in Cook County. The Village currently has land area of 10.8 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 September. A proposed budget is prepared and delivered to the Village Board and Finance Commission in early October. The proposed budget is also made available for public inspection in the Village Clerk's Office, on the village website and at the Mount Prospect Public Library. A series of joint workshops are held with members of the Village Board and Finance Commission at two (2) Committee of the Whole meetings in late October and early November. The Village Board is required to hold a public hearing on the proposed budget and to adopt a final budget no later than December 31st of each year, the close of the Village's previous budget year. The budget is prepared by fund and by department. Expense cost centers are created within departments giving a true picture of the cost of providing a particular service (i.e. Police Department Investigations). Budget amendments require approval of the Village Board. Budget -to -actual comparisons are provided for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Corporate Fund and major special revenue funds, this comparison is presented in the required supplementary information. For governmental funds, other than the General Corporate Fund and major special revenue funds, with appropriated annual budgets, this comparison is presented in the non -major governmental fund subsection of this report. -1V- 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 2020 and commitment to ensuring its citizens are able to live and work in an enviable environment. Also included in this section are any other major activities of note that occurred during the year. A departmental listing of significant projects and activities are discussed below: COMMUNITY DEVELOPMENT DEPARTMENT • Worked with the Regional Transportation Authority (RTA) and Teska Associates to complete the Rand Road Corridor Plan. The plan reassessed the corridor to address three main goals related to all forms of transportation. • Continued to work with the Mount Prospect Chamber of Commerce, Mount Prospect Public Library, and the Mount Prospect Downtown Merchants Association on the Mount Prospect Entrepreneur's Initiative. Efforts included a quarterly Spotlight on Success film series, an E -newsletter specifically for entrepreneurs, and a Business Event Calendar. • Welcomed the following new businesses: o Sam's Beauty Supply, Northland Laboratories and Mount Prospect Ice Arena as new tenants in the KBC. o National Technical Systems as a new tenant at 1660 Wall Street, which underwent significant investment at their facility. o Public storage facility in the former Hinz Lithograph building at 1750 W. Central Road, which underwent significant improvements including interior remodeling and a 3rd floor building addition. o Issued permits to several new restaurant tenants in Randhurst Village including Smokey Bones, Truco Taqueria and Outback Steakhouse. o Actively worked with developers to redevelop the site formerly occupied by McDonald's Restaurant into a two -unit commercial building anchored by Potbelly's Restaurant. o Approved conditional use permits for Starbuck's and Andy's Custard to develop drive-through restaurants along Rand Road. • Initiated the process to disband an existing Tax Increment Financing (TIF) District and create a new TIF District that would expand the benefitting area to the south, east and west of the existing District. • Completed site demolition and environmental abatement of the Central Plaza shopping center located at the northwest corner of Central Road and Main Street. Proceeded with final steps in court to recover demolition costs by foreclosing on the property. A Request for Proposals was initiated to solicit development proposals for the property. • Completed annexations of certain property along the Illinois Tollway Authority (1-90), Lynn Court, Addison Court, and portions of Dempster Street, Algonquin Road, Malmo Drive, and Nordic Road on the south side of the Village. Continued open dialogue with United Airlines regarding the annexation and redevelopment of their former office headquarters along Algonquin Road. -v- HUMAN SERVICES DEPARTMENT The Human Services Department continued to focus on staff development for all department members in 2016. Department staff attended trainings related to individual job responsibilities. Trainings included American Red Cross Shelter Basic's, Trauma Informed Care, Dementia Live, Social Security Benefits, Clinical and Legal Consideration in Mental Health Practice, Elder Law, Customer Service training and management training for Department administrators. • The Department launched a Facebook page in August of 2016 and has used its social media presence to disseminate information about department programs and resources. The Department also utilizes social media as a means to promote health and wellness within the community. The Emergency Assistance program provided assistance to Mount Prospect residents in need throughout the year. The food pantry served an average of 45 households per month as well as providing holiday meal baskets for both Thanksgiving and Christmas to 125 families. School age children of families who accessed the emergency assistance program during the year were also provided with back packs and school supplies in August. The Department serves as a service extension unit for the Salvation Army and provided emergency financial assistance to residents in need for rent, utilities, medication and emergency lodging. A new service, Senior Assessment, was offered to homebound seniors who are finding it difficult to remain in their homes due to a variety of circumstances: decreased mobility, medication management problems, difficulties in monitoring chronic illnesses like diabetes or hypertension, transportation issues, meal preparation or family members living far away. Interested residents received a free private assessment in their home by a social worker and nurse to receive resources to improve their situation. POLICE DEPARTMENT • The Department continued meeting its mission of providing quality law enforcement services to our citizens with pride, integrity, and professionalism. They were ssuccessful in reducing Part II crimes (simple assaults, fraud, forgery, prostitution, narcotics, etc.) by 2% compared to 2015 Part II crimes. • The Department continued to engage the community with its signature events including the Citizen's Police Academy, "Kickin' it with the Cops," National Night Out, as well as by hosting a community pool party. The Police Department also continued its community outreach initiatives through its participation in the Special Olympics annual "Cop on Top" and Torch Run events. • An extensive policy review was conducted to ensure the department's policies meet contemporary needs and standards as part of the Illinois Law Enforcement Accreditation Program (ILEAP). Process improvements were implemented by utilizing an electronic reporting system and a SharePoint program to more efficiently manage workflows within the agency. • The Crime Prevention Unit further expanded the Department's presence on social media, actively disseminating pertinent information on Facebook, Twitter, and YouTube through a series of public service messages. The department reached its goal of having 1,500 Twitter followers and 2,000 Facebook likes in 2016. (Actual 1,569 Twitter followers and 2,708 Facebook likes as of 07-01-2016). • The department recruited and hired two (2) new full-time Community Service Officers and two (2) new part-time Community Service Officers as authorized by the Village Board. FIRE DEPARTMENT Six firefighters were sworn in to start the year after being hired with funds awarded from the SAFER Grant. Later in March, the Fire Chief and Deputy Chief were sworn in along with four new Lieutenants. With these hiring's staffing has returned to pre -recession levels. In 2011 there was a reduction of 6 firefighters, casualties of budget reductions. • Automatic Aid Agreement with Prospect Heights was reinstated and we signed our first agreement with Village of Elk Grove. These agreements filled two voids that existed with neighboring communities. We now have Automatic Aid with all communities that border the Village of Mount Prospect. • The department also reinstated their membership with NIPSTA (Northeastern Illinois Public Safety Training Academy). This membership has given us access to numerous certified classes and hands-on training. To date, firefighters have completed over 64 certified classes to enhance their skills. IN addition, Funding was provided to train Company Officers to the Fire Officer II state certification or the Advanced Company Officer state certification. Also, 45 department paramedics were trained and certified to the Advanced Cardiac Life Support certification. The department began developing an Active Shooter protocol in 2015. We are pleased to say that the ballistic gear has been purchased and plans to roll out the program in the first quarter of 2017 are underway. PUBLIC WORKS DEPARTMENT The Village's Street Improvement Program completed resurfacing of 6.8 miles of local streets during 2016. A streets funding plan approved in 2013 allows the Village to keep pace with the annual program. All local streets within the village would be resurfaced over a 20 -year period under the current program avoiding the need for the more costly full street reconstruction project. In addition, staff completed extensive sidewalk improvement programs including installation of new sidewalks on Gregory Street and Rand Road along with sidewalk replacements facilitated by the Cost Share and Community Development Block Grant sidewalk improvement programs. A Corridor Street Lighting Improvement Program was also initiated along Central Road between Emerson Street and Mount Prospect Road. This work eliminated a gap in lighting along Central Road providing a safe environment for pedestrians and vehicles. Several engineering studies were also initiated in to improve the flow of vehicular and pedestrian traffic including a Downtown Transportation Study, a Rand Road/Central Road/Mount Prospect Road Phase 1 Study, and a Central Road Pedestrian Crossing Study. 2016 saw significant activity of the village's Urban Forest. The department received Growth Award for the 16th time and was recognized as a Tree City USA community for the 32nd consecutive time. Staff completed scheduled tree trimming of approximately 4,000 trees maintaining the Village's five (5) year tree trimming cycle. Over 600 unhealthy trees removed in a timely manner avoiding costly private property damage from falling branches. The department also planted 700 new trees of varying species to maintain a diversified urban forest. The Village completed installation of relief storm sewers on Park Drive to alleviate a stormwater conveyance bottleneck that contributed to persistent street flooding. Staff also increased the capacity of existing sewers on Wheeling Road and Beachwood Drive. • Work performed on the village's Water and Sewer System included rehabilitation of the 1 million gallon welded steel ground -level finished water storage reservoir adjacent to Booster Pumping Station 11. Staff also completed the replacement of water main on Elm Street between Central Road and Thayer Street. This work included upsizing of water main utilizing an innovative directional drilling technique in lieu of conventional open cut excavation. The department also completed the second phase of approximately $15 million worth of improvements identified in the 2015 Combined Sewer System Evaluation study which included lining and rehabilitation of over 11,000 lineal feet of combined sewer pipe; the department's largest single lining project to date. The department also replaced the 40+ year old Louis Street sewer pumping station. • Crews also cleaned over 4,000 miles of Village streets, repaired over 5,000 lineal feet of sidewalk defects, and inspected over 70,000 lineal feet of storm sewer mains. Working in conjunction with Metra and the Union Pacific Railroad, work was also completed on an extensive renovation of the commuter rail station. In addition, new covered bike rack facilities were installed adjacent to the train station to improve intermodal transportation options for commuters. • Staff also successfully negotiated a new ten (10) year solid waste contract that provides a cost reduction for basic services (garbage and recycling) and introduced new services such as "no sticker" unlimited yard waste collection. 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. An emphasis during 2016 was the gathering of our cable television, web site, newsletter, local newspaper press releases, and social media under a single Division to enable the Village to present a more comprehensive and unified message to its constituents. 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 32 d consecutive year. 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 continued to see a steady, albeit measured, growth in economy during 2016. 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, 2016 were $16,344,573 compared to $15,126,650 for the previous year, an increase of 8.1%. The increase from the prior year is due to strong growth in the drug and miscellaneous retail and drinking/eating categories. Since the Village's portion of sales tax receipts is based on a 1% tax rate, these receipts represent total retail sales of approximately $1.6 billion for 2016. The Village projects that this revenue source will increase 5.0% during 2017 and 2018. 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 2016 was 4.6%. This was an increase from the prior year of 30 basis points (4.3% in 2015). The average unemployment rate for the State of Illinois for 2016 was unchanged from the prior year coming in at 5.9%. During the 12 months of 2016, the rate had been as high as 6.7% and as low as 5.2%. Seasonal fluctuations accounted for the 150 basis point range in rates. The rate for U.S. decreased 40 basis points from 5.3% to 4.9%. Mount Prospect's median family income, $67,823 as of the 2010 Census (using 5 -year estimates), was 26% higher than the median for Cook County ($53,942) and 22% higher than the median for the State of Illinois ($55,735). In a suburban setting where it is often difficult to distinguish the boundaries of one community from a neighboring community, the economic activity of the "region" is a major influence on the economies of the individual communities. The Village of Mount Prospect is located on the eastern edge of the "Golden Corridor" which extends along Interstate 90 from O'Hare Airport to Elgin, a stretch of approximately 25 miles. Along this corridor can be found the corporate headquarters of such corporations as Sears and Motorola. The corridor is also home to regional headquarters for such corporations as AT&T and Siemens. The Corridor will continue to grow, as thousands of acres remain available for development on its far western edge. Long-term financial planning. In 2003, the Village conducted its first long-range financial planning workshop. The workshop was held in response to the slowing economy and its impact to the Village's financial condition. The goal of the workshop was to put the Village's financial condition back on firm ground in such a manner as to not overburden residents and businesses from a tax standpoint or reduce the scope and quality of municipal services that would jeopardize the livability and curb appeal of the community. The goal of the workshop was accomplished through a series of revenue enhancements, budget cuts and the planned drawdown of fund balance. Subsequent workshops were held between 2004 and 2016. During the 2016 workshop, financial status reports were provided for end -of -year results for 2015, updated projections for 2016 and a revised forecast for 2017. 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 (2017-2021), the Village has identified $75.3 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 2015. 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 2015 using the goals identified in the Strategic Plan for 2020. This implementation guide provides the objectives, short-term challenges and opportunities, and action items to be taken for accomplishing the goals of the Village. Action items were prioritized as top, medium or moderate priority by the Village Board and fall into three categories; Policy Agenda, Management in Progress, and Major Projects. The implementation guide will be 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, 2015. 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. -1X- 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, 2016 and ending December 31, 2016. 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 2017 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. 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, David O. Erb Finance Director - X - Government Finance Officers Association Certificate of Achievement for Excellence in Financial Presented to 4 #' Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2015 */00 r A4 0 -� PO4 04 Executive Director/CEO -X1- 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, 2016, 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. -1- SikichR, 630,566,8400 // wwwww.silkur;°i ,con," "1415 W. Diehl Roead, Suite 400 Certified Public Accountants & Advisors Naperville, Illinois 60563 Members of Arnericarr Institute of Certified Public Accountants 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, 2016, 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. -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, 2016, 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 As discussed in Note 14, the Village adopted GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68, which established standards for recognizing employer pension contributions made after the measurement date of the net pension liability, due to a change in the recognition of the net pension liability. 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. 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 -2- 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 21, 2017, 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. Sat- zz;v Naperville, Illinois June 21, 2017 -3- GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For Fiscal Year Ended December 31, 2016 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 govermnental 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 governinent 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 $8.6 million to a negative $12.8 million. The net decrease of $4.2 million is attributable to a decrease of $3.5 million in Governmental Activities and a decrease of $0.7 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) Current and other assets Capital assets Total assets Deferred outflows of resources Total assets/deferred outflows Current liabilities Noncurrent liabilities Total liabilities Deferred inflows of resources Total liabilities/deferred inflows Net Po s ition Net investment in capital assets Restricted net position Unrestricted net position Total net position Table 1 Statement of Net Position as of December 31, 2016 (in millions) Governmental Business -type Activities Activities Total 2016 2015 2016 2015 2016 2015 $ 73.7 $ 73.4 $ 7.8 $ 7.5 $ 81.5 $ 80.9 tint 1<K 1) Ztiti It"1 1W)O 1M1z S 138.0 $ 139.6 S 44.4 S 43.8 $ 182.4 S 183.4 19.3 19.8 1.3 1.1 20.6 20.9 $ 157.3 $ 159.4 $ 45.7 $ 44.9 $ 203.0 $ 204.3 $ 5.2 $ 5.6 $ 2.4 $ 1.0 $ 7.6 $ 6.6 181.6 $ (54.0) 185.8 41.2 $ 41.9 $ (12.8) 2.0 1.9 183.6 187.7 $ 186.8 $ 191.4 $ 4.4 $ 2.9 r$ 191.2 r$ 194.3 24.5 18.5 0.1 0.1 24.6 18.6 $ 211.3 $ 209.9 $ 4.5 $ 3.0 $ 215.8 $ 212.9 $ 43.0 $ 43.7 $ 36.6 $ 36.3 $ 79.6 $ 80.0 4.6 5.2 - - 4.6 5.2 101.6 (99.4) 4.6 5.6 97.0 (93.8) $ (54.0) $ (50.5) $ 41.2 $ 41.9 $ (12.8) $ (8.6) 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. Borrowingfor 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 nonborrowed current assets on new capital - which will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase invested in capital assets, net of debt. Principal payment on debt - which will (a) reduce current assets and reduce long-term debt and (b) reduce unrestricted net position and increase invested in capital assets, net of debt. Reduction of capital assets through depreciation - which will reduce capital assets and invested in capital assets, net of debt. (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 $3.5 million while the business -type activities net position decreased by $0.7 million. The governmental activities total assets decreased by $2.1 million and the governmental activities total liabilities/deferred inflows increased by $1.4 million. The total assets decrease of $2.1 million in governmental activities was the result of a decrease of $0.2 million in current and other assets and a decrease of $1.9 million in capital assets. The $0.2 million decrease in current assets was due to a decrease in due from other governments of $1.4 million, a decrease in deferred outflows of resources of $0.4 million, an increase in cash and investments of $0.9 million, and an increase in other assets of $0.7 million. Changes in net pension obligation and unamortized loss on refunding accounted for the $1.2 decrease in deferred outflow of resources. Surplus from operations in the General Fund accounted for the increase in cash and investments. Amounts due from the Mount Prospect Public Library related to their outstanding debt accounted for decrease in due from other governments. The decrease in total net position of $0.7 million in business -type activities was due to an increase in current assets of $0.5 million, an increase in capital assets of $0.3 million, and a net increase in current and noncurrent liabilities of $1.5 million. The increase in total liabilities of $1.4 million for the governmental activities was due to a decrease in non-current liabilities of $4.2 million and an increase in current liabilities of $5.6 million. The increase in current liabilities was made up of an increase in the deferred inflows of resources for police and fire pensions. Changes in the other categories resulted in the timing related to the normal course of operations. Liabilities for business -type activities increased from $3.0 million to $4.5 million. This increase was due to an increase in accounts payable of $1.5 million. Changes in Net Position The Village's combined change in net position for the primary government in 2016 was a decrease of $7.3 million versus a decrease of $7.6 million in 2015. Activities for the governmental activities saw a decrease in net position of $6.0 million from 2015, while activities for the business -type funds saw a decrease in net position of $1.3 million from 2015. 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, 2016 (in millions) Governmental Business -type Activities Activities Total Revenues 2016 2015 2016 2015 2016 2015 Program revenues Charges for service $ 11.4 $ 10.8 $ 13.3 $ 12.7 $ 24.7 $ 23.5 Operating grants 2.6 1.9 - - 2.6 1.9 Capital grants/contrib. - - 0.2 8.9 0.2 8.9 General revenues Property taxes 20.5 19.9 1.5 1.5 22.0 21.4 Business district taxes 0.3 0.3 - - 0.3 0.3 Sales/Use taxes 23.2 21.7 0.1 0.1 23.3 21.8 Income taxes 5.3 5.8 - - 5.3 5.8 Utility taxes 3.6 3.8 - - 3.6 3.8 Other taxes 4.4 4.7 - - 4.4 4.7 Investment income 0.1 0.1 - - 0.1 0.1 Contributions - - - - - - Other - 0.1 0.1 0.3 0.1 0.2 Total revenue $ 71.4 �$ 68.9 $ 15.2 �$ 23.5 $ 86.6 $ 92.4 Expenses General government $ 9.9 $ 11.5 $ - $ - $ 9.9 $ 11.5 Public safety 38.3 38.5 - - 38.3 38.5 Highways and streets 20.0 26.7 - - 20.0 26.7 Health 4.6 4.5 - - 4.6 4.5 Welfare 2.1 1.8 - - 2.1 1.8 Culture and recreation 0.5 0.5 - - 0.5 0.5 Interest 2.0 2.1 - - 2.0 2.1 Water and sewer - - 16.1 14.1 16.1 14.1 Parking - - 0.4 0.3 0.4 0.3 Total expenses $ 77.4 $ 85.6 $ 16.5 $ 14.4 $ 93.9 $ 100.0 Change in net position $ (6.0) $ (16.7) $ (1.3) $ 9.1 $ (7.3) $ (7.6) Net Position, January 1 $ (50.5) $ 40.1 $ 41.9 $ 34.6 $ (8.6) $ 74.7 Change in accounting principal 2.5 - 0.6 - 3.1 - Prior Period Adjustment - (73.9) - (1.8) - (75.7) Net Position (Deficit), January 1, Restated $ (48.0) $ (33.8) "$ 42.5 $ 32.8 $ (5.5) $ (1.0) Net Position (Deficit), December 31 $ (54.0) $ (50.5) '$ 41.2 $ 41.9 $ (12.8) $ (8.6) (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 maybe 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 2016 were $71.4 million. Sales/Use taxes are the largest revenue source for governmental activities accounting for $23.2 million or an increase of $1.5 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 $20.5 million in revenue. This revenue has historically been the most stable source for the Village. This was an increase of $0.6 million from the prior year. There was an increase of $0.6 million in charges for service. Other taxes and revenues decreased a collective $0.2 million from the prior year. (See independent auditor's report.) MD&A6 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Governmental Activities (cont) Expenses: Total expenses for the Village's Governmental Activities for 2016 were $77.4 million. Public Safety, which includes Police and Fire, accounts for the largest portion of governmental expenses. Total Public Safety expenses in 2016 were $38.3 million, a decrease of $0.2 million from 2015. 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 $20.0 million, a decrease of $6.7 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 2016 were $15.2 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 $13.3 million generated in 2016, $10.1 million is from water sales, $2.6 million is from sewer fees and charges, $0.3 million is from parking operations and the balance is from various penalties, tap and meter fees. For 2015, water sales accounted for $9.7 million and sewer fees were $2.6 million. Additionally for 2016, there was $0.2 million in capital grants/contributions related to fixed asset additions. The decrease in capital grants/contributions of $8.7 million were due to the recording of fixed asset additions in the prior year as construction -in -progress. The Water and Sewer Fund also receives special service area taxes in the amount of $1.5 million. This amount is unchanged from the prior year. These taxes support the delivery of Lake Michigan Water to Village residents that are connected to the Village's water system. Expenses: Total expenses for the Village's Business -Type Activities for 2016 were $16.5 million. Of the total expenses for business -type activities, $16.1 million is attributable to Water and Sewer while $0.4 million is attributable to parking. $6.4 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 $14.1 million in expenses for 2015, $6.4 million were attributable to the acquisition of water through JAWA. FINANCIAL ANALYSIS OF THE VILLAGE'S GENERAL FUND The General Fund is the Village's primary operating fund. It supports a majority of the day-to-day services delivered to its residences and businesses. The fund balance of the General Fund saw an increase of $1.5 million in 2016 from $17.2 million to $18.7 million. In 2016, General Fund revenues came in above the final budget by $0.4 million while expenditures and net transfers came in $1.1 million under budget. The final Village budget had anticipated no change in the General Fund fund balance. No other significant deviations from the final budget were seen in revenues during 2016. (See independent auditor's report.) MD&A7 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) General Fund Budgeting Highlights During 2016, the Village amended the budget three (3) times. Table 3 below reflects the original and revised budget and the actual revenues and expenditures for the General Fund. More information can be found in the schedule of revenues and expenditures beginning on page 93. Table 3 General Fund Budgetary Changes Calendar Year 2016 (in millions) Original Revised Bum Bum Actual Revenues and Other Financing Sources Taxes $ 23.2 $ 23.2 $ 23.0 Intergovernmental 21.9 23.3 23.6 Other 4.6 4.7 5.0 Total Revenues $ 49.7 $ 51.2 $ 51.6 Expenditures and Transfers Expenditures $ 49.7 $ 50.6 $ 48.9 Net Transfers - 0.6 1.2 Total Expenditures and Transfers $ 49.7 $ 51.2 $ 50.1 Change in Fund Balance Other Major Funds 1.5 There are two (2) other Major Funds for Fiscal Year ended December 31, 2016. These two Funds are 1) Refuse Disposal Fund, and 2) Debt Service Fund. Refuse Disposal Fund - This Fund coordinates the Village's comprehensive municipal solid waste program. Total revenues for 2016 were $4.6 million, an increase of $0.6 million fi-om the prior year. Almost the entire amount of revenue received during 2016 was due to charges for service. Total expenditures for 2016 were $4.4 million, no change from the prior year. Ending fund balance increased $0.2 million to $1.4 million. Debt Service Fund - This Fund is used to accumulate monies for payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2016 were $5.0 million, an increase of $0.1 million from the prior year. Of this total revenue amount, $2.3 million is from property taxes, $1.7 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 2016 were $5.3 million, an increase of $0.5 from the prior year. Other financing sources/uses included proceeds from and the payment on Series 2006 Library and Series 2009 Village bonds. There was a net other financing source of $0.3 million as a result of the refundings. Ending fund balance remained at $0.2 million. (See independent auditor's report.) MD&A 8 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Capital Assets At the end of 2016, the Village had a combined total of $100.9 million invested in abroad 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) This amount represents a net decrease (including additions and deletions) of $1.6 million from 2015. (This space is intentionally left blank.) (See independent auditor's report.) MD&A9 Governmental Business -type TotalPrirnary Activities Activities Government 2016 2015 2016 2015 2016 2015 Land (including right-of-way) $ 10.3 $ 10.3 $ 17.6 $ 17.6 $ 27.9 $ 27.9 Construction in Progress 2.1 1.2 0.4 11.3 2.5 12.5 Buildings & Improvements 27.8 28.6 2.0 2.1 29.8 30.7 Vehicles 3.8 3.5 - - 3.8 3.5 Machinery & Equipment 1.1 0.9 1.9 1.0 3.0 1.9 Infrastructure 19.2 21.7 14.7 4.3 33.9 26.0 Total Capital Assets $ 64.3 �$ 66.2 $ 36.6 $ 36.3 $ 100.9 $ 102.5 This amount represents a net decrease (including additions and deletions) of $1.6 million from 2015. (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) Beginning Balance Additions Depreciable Non -Depreciable Retirements Depreciable Non -Depreciable Depreciation Retirement Ending Balance Governmental Business -type Activities Activities Total $ 66.2 $ 36.3 $ 102.5 1.4 11.8 13.2 1.4 0.4 1.8 (0.5) (0.1) (0.6) (0.5) (11.3) (11.8) (4.2) (0.6) (4.8) 0.5 0.1 0.6 $ 64.3 $ 36.6 $ 100.9 Table 5 above shows the change in capital assets during 2016. This year's maj or additions to the capital assets include the following (in millions): Governmental Activities Vehicles for Public Safety, Public Works and Village Fleet - $0.9 Various construction projects in -progress - $1.4 Purchases of various machinery & equipment - $0.4 Business -Type Activities Storm sewer main replacement - $10.8 Purchases of various machinery & equipment - $1.0 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 $183.6 million as of December 31, 2016. 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, $17.8 million of general obligation debt and notes payable were issued while compensated absences, pension liability for IMRF and fire, and post -employment benefits increased $6.1 million. Decreases in long term debt include the retirement of $20.9 million in general obligation debt, $3.4 million reduction in pension liability for police and $0.4 million in notes and loan contracts. The Village of Mount Prospect maintains an AA+ rating from Standard and Poor's. As a home rule authority, the Village of Mount Prospect does not have a legal debt limit. More detailed information on long-term debt activity can be found in Note 6 of the notes to the financial statements beginning on page 37. (See independent auditor's report.) MD&A 10 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Economic Factor's and Next Year's Budget The General Fund, the Village's main operating fund, ended with a solid surplus for calendar year 2016. The $1.5 million surplus increases the fund balance to 35% 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 2016 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 2017 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 2016 was 4.6%. This is below the state and national unemployment rate of 5.9% and 4.9% respectively. The Village's unemployment rate increased 30 basis points from the prior year. The 2017 Budget represents a 3.4% decrease from the amended 2016 Budget and totals $112.8 million. The General Fund increased $3.4 million, or 6.8% from the prior year. The Village's Operating Budget (that part which funds the Village's day-to-day operations) shows an increase of 3.3% and totals $70.6 million. The Operating Budget includes all General Fund expenditures as well as refuse disposal, water and sewer service, and various special revenue activities. Request for Information This financial report is designed to provide a general overview of the Village of Mount Prospect's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to David O. Erb, Finance Director/Treasurer, Village of Mount Prospect, 50 South Emerson, Mount Prospect, Illinois 60056. (See independent auditor's report.) MD&A 11 BASIC FINANCIAL STATEMENTS VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF NET POSITION December 31, 2016 ASSETS Cash and investments Receivables (net of allowance, where applicable) Property taxes Othertaxes Accrued interest Accounts Utility customers Miscellaneous Prepaid items Tnventory Due from other governments Deposits - insurance Deposits with joint venture Capital assets not being depreciated Capital assets being depreciated (net of accumulated depreciation) Total assets DEFERRED OUTFLOWS OF RESOURCES Pension items - 1MRF Pension items - Police Pension Pension items - Firefighters' Pension Unamortized loss on refunding Total deferred outflows of resources Total assets and deferred outflows of resources LIABILITIES Accounts payable Accrued payroll Accrued interest payable Retainage payable Other payables Due to fiduciary funds Unearned revenue Due to other governments Noncurrent liabilities Due within one year Due in more than one year Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred revenue - property taxes Pension items - 1MRF Pension items - Police Pension Pension items - Firefighters' Pension Total deferred inflows of resources Total liabilities and deferred inflows of resources Primary Government Governmental Activities Business -Type Activities Total $ 33,392,092 $ 3,607,885 $ 36,999,977 18,360,104 1,515,464 19,875,568 7,845,070 - 7,845,070 13,467 2,200 15,667 514 - 514 - 1,315,893 1,315,893 1,055,195 41,988 1,097,183 416,622 10,180 426,802 323,487 410,287 733,774 10,028,482 643 10,029,125 2,244,022 - 2,244,022 - 881,764 881,764 12,402,243 17,969,336 30,371,579 51,881,794 18,619,292 70,501,086 137,963,092 44,374,932 182,338,024 5,705,047 1,335,332 7,040,379 5,684,533 - 5,684,533 7,361,919 7,361,919 586,248 586,248 19,337,747 1,335,332 20,673,079 157,300,839 45,710,264 203,011,103 3,097,535 2,300,342 5,397,877 752,342 61,033 813,375 112,785 - 112,785 226,666 24,272 250,938 31,772 833 32,605 140,273 - 140,273 737,993 40,940 778,933 55,586 - 55,586 5,221,307 48,684 5,269,991 176,415,098 1,910,310 178,325,408 186,791,357 4,386,414 191,177,771 18,360,104 - 18,360,104 533,290 124,822 658,112 4,334,228 - 4,334,228 1,278,023 1,278,023 24,505,645 124,822 24,630,467 211,297,002 4,511,236 215,808,238 (This statement is continued on the following page.) -4- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF NET POSITION (Continued) December 31, 2016 NET POSITION Net investment in capital assets Restricted for Highways and streets Public safety - police Public safety - fire Debt service Refuse disposal Unrestricted (deficit) TOTAL NET POSITION (DEFICIT) Primary Government Governmental Business -Type Activities Activities Total $ 43,024,875 $ 36,588,628 $ 79,613,503 2,465,482 2,465,482 314,541 314,541 338,465 338,465 168,152 168,152 1,270,784 - 1,270,784 (101,578,462) 4,610,400 (96,968,062) $ (53,996,163) $ 41,199,028 L_( See accompanying notes to financial statements. -5- FUNCTIONS/PROGRAMS PRIMARY GOVERNMENT Governmental Activities General government Public safety Highways and streets Health Welfare Culture and recreation Interest Total governmental activities Business -Type Activities Water and sewer Parking Total business -type activities VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2016 Program Revenues Operating Capital Charges Grants and Grants and Expenses for Services Contributions Contributions $ 9,949,082 S 4,496,290 $ 29,677 $ 38,328,609 1,795,838 668,528 19,990,440 290,172 1,400,707 4,620,982 4,595,123 - 2,109,733 46,164 437,442 515,555 30,500 49,337 1,926,793 127,293 43,339 77,441,194 11,381,380 2,629,030 16,054,624 12,931,867 244,423 390,118 334,102 - 16,444,742 13,265,969 244,423 TOTAL PRIMARY GOVERNMENT $ 93,885,936 $ 24,647,349 $ 2,629,030 $ 244,423 General Revenues Taxes Property Utility Business district Home rule sales Food and beverage Real estate transfer Municipal motor fuel Hotel/motel Charitable games Other Intergovernmental - unrestricted State sales and use tax Property tax TIF rebate Income tax Replacement tax Investment income Miscellaneous Total CHANGE IN NET POSITION NET POSITION, JANUARY 1 Change in accounting principle NET POSITION (DEFICIT), JANUARY 1, RESTATED NET POSITION (DEFICIT), DECEMBER 31 Net (Expense) Revenue and Change in Net Position Primary Government Governmental Business -Type Activities Activities Total $ (5,423,115) $ $ (5,423,115) (35,864,243) (35,864,243) (18,299,561) (18,299,561) (25,859) (25,859) (1,626,127) (1,626,127) (435,718) (435,718) (1,756,161) (1,756,161) (63,430,784) (63,430,784) (2,878,334) (2,878,334) (56,016) (56,016) (2,934,350) (2,934,350) (63,430,784) (2,934,350) (66,365,134) 20,463,758 1,524,901 21,988,659 3,629,525 - 3,629,525 341,340 341,340 5,553,213 5,553,213 1,197,389 1,197,389 1,049,770 1,049, 770 676,040 676,040 501,314 501,314 4,101 4,101 220,911 220,911 17,630,758 17,630,758 380,758 380,758 5,272,834 5,272,834 386,338 - 386,338 76,594 14,419 91,013 33,286 90,810 124,096 57,417,929 1,630,130 59,048,059 (6,012,855) (1,304,220) (7,317,075) (50,487,964) 41,916,948 (8,571,016) 2,504,656 586.300 3,090,956 (47,983,308) 42,503,248 (5,480,060) $ (53,996,163) $ 41,199,028 $ (12,797,135) See accompanying notes to financial statements. -7- VILLAGE OF MOUNT PROSPECT, ILLINOIS BALANCE SHEET GOVERNMENTALFUNDS December 31, 2016 Refuse Debt General Disposal Service Nonmajor Total ASSETS Cash and investments $ 11,892,092 $ 960,475 $ 167,652 $ 7,194,489 $ 20,214,708 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 16,087,246 - 2,272,858 - 18,360,104 Other taxes 6,772,937 - 1,072,133 7,845,070 Accounts 514 - 514 Accrued interest 9,082 - - - 9,082 Other 426,104 545,937 500 79,803 1,052,344 Due from other funds 735,763 - - - 735,763 Due from other governments 653,254 - 8,735,000 628,374 10,016,628 Inventories 1,765 28,661 - - 30,426 Prepaid items 186,482 64,176 - 3,934 254,592 TOTAL ASSETS $ 36,765,239 $ 1,599,249 $ 11,176,010 $ 8,978,733 $ 58,519,231 (This statment is continued on the following page.) -8- VILLAGE OF MOUNT PROSPECT, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS (Continued) December 31, 2016 Refuse Debt General Disposal Service Nonmajor Total LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts payable $ 833,274 $ 229,755 $ $ 1,822,888 $ 2,885,917 Accrued payroll 719,948 5,873 1,359 727,180 Retainage payable 11,521 - 215,145 226,666 Other payables 18,593 - 18,593 Compensated absences 21,880 - 21,880 Unearned revenue 192,567 545,426 737,993 Due to other governments 55,586 - 55,586 Due to other funds - 735,763 735,763 Due to fiduciary funds 140,273 - 140,273 Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - other Total deferred inflows of resources Total liabilities and deferred inflows of resources FUND BALANCES Nonspendable Inventory Prepaid items Restricted Highways and streets Public safety- police Public safety- fire Debt service Refuse disposal Unrestricted Assigned Capital projects Unassigned (deficit) Total fund balances 1,993,642 235,628 3,320,581 5,549,851 16,087,246 2,272,858 18,360,104 - 8,735,000 8,735,000 16,087,246 - 11,007,858 - 27,095,104 18,080,888 235,628 11,007,858 3,320,581 32,644,955 1,765 28,661 - 30,426 186,482 64,176 3,934 254,592 2,465,482 2,465,482 314,541 314,541 - 338,465 338,465 - 168,152 - 168,152 1,270,784 - 1,270,784 - 3,224,446 3,224,446 18,496,104 (688,716) 17,807,388 18,684,351 1,363,621 168,152 5,658,152 25,874,276 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 36,765,239 $ 1,599,249 $ 11,176,010 $ 8,978,733 $ 58,519,231 See accompanying notes to financial statements. -9- VILLAGE OF MOUNT PROSPECT, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION December 31, 2016 FUND BALANCES OF GOVERNMENTAL FUNDS $ 25,874,276 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 64,284,037 Less internal service funds included below (4,944,470) 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 5,705,047 Deferred inflows of resources (533,290) Differences between expected and actual experiences, assumption changes, and net differences between projected and actual earnings for the Police Pensin Plan are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position Deferred outflows of resources 5,684,533 Deferred inflows of resources (4,334,228) 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 7,361,919 Deferred inflows of resources (1,278,023) Long -tern intergovernmental receivables are not available to pay for current period expenditures and, therefore, are deferred inflows of resources in the governmental funds 8,735,000 Interest payable is not due and payable in the current period and, therefore, not reported in the governmental funds (112,785) Long -tern liabilities are not due and payable in the current period and, therefore are not reported in the governmental funds General obligation bonds payable (42,595,000) Loan contracts payable (359,175) Installment notes payable (1,525,000) Business District limited tax note payable (31,767,253) Compensated absences payable (3,239,034) Net pension liability - Illinois Municipal Retirement Fund (6,961,499) Net pension liability - Police Pension Plan (48,348,979) Net pension liability - Firefighters Pension Plan (42,652,737) Unamortized bond premiums (1,310,073) Unamortized loss on refunding 586,248 Net other postemployment benefits obligation (1,439,739) The net position of the internal service funds are included in the governmental activities in the statement of net position 19,174,062 NET POSITION (DEFICIT) OF GOVERNMENTAL ACTIVITIES $ (53,996,163) See accompanying notes to financial statements. -10- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS REVENUES Property taxes Other taxes Licenses, permits, and fees Intergovernmental Charges for services Fines and forfeits Investment income Other reimbursements Miscellaneous Total revenues EXPENDITURES Current General government Public safety Highways and streets Health Welfare Culture and recreation Capital outlay Debt service Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) For the Year Ended December 31, 2016 Refuse Debt General Disposal Service Nonmajor Total $ 15,917,480 $ - $ 2,272,000 $ 2,274,278 $ 20,463,758 7,115,142 - 1,000,368 5,533,992 13,649,502 2,350,787 - - 1,650,671 4,001,458 23,585,057 - 1,715,633 2,133,861 27,434,551 1,782,869 4,564,906 - - 6,347,775 414,885 - - - 414,885 49,202 2,315 2,480 22,597 76,594 - - - 35,000 35,000 336,102 30,216 - 183,498 549,816 51,551,524 4,597,437 4,990,481 11,833,897 72,973,339 6,926,119 - - 2,509,482 9,435,601 32,417,472 - - 95,140 32,512,612 7,282,165 - - 866,531 8,148,696 160,555 4,425,017 - - 4,585,572 1,561,972 - - 432,946 1,994,918 499,208 - - - 499,208 - - - 10,718,553 10,718,553 - - 3,243,840 - 3,243,840 - - 2,017,192 - 2,017,192 48,847,491 4,425,017 5,261,032 14,622,652 73,156,192 2,704,033 172,420 (270,551) (2,788,755) (182,853) Refunding bonds issued - - 17,835,000 - 17,835,000 Premium on bonds issued - - 1,022,839 - 1,022,839 Payment to escrow agent - - (18,573,342) - (18,573,342) Transfers in - - - 1,637,926 1,637,926 Transfers (out) (1,240,625) - - (397,301) (1,637,926) Total other financing sources (uses) (1,240,625) - 284,497 1,240,625 284,497 NET CHANGE IN FUND BALANCES 1,463,408 172,420 13,946 (1,548,130) 101,644 FUND BALANCES, JANUARY 1 17,220,943 1,191,201 154,206 7,206,282 25,772,632 FUND BALANCES, DECEMBER 31 S 18,684,351 $ 1,363,621 S 168,152 S 5,658,152 $ 25,874,276 See accompanying notes to financial statemnents. -11- 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, 2016 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 101,644 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 1,269,883 The loss on disposal of capital assets is shown as an increase of expense on the statement of activities (9,843) 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 (4,189,159) Less internal service funds included below 644,112 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 refunding bonds (17,835,000) Premium on issuance of bonds (1,022,839) Loss on refunding 373,342 The repayment of long -terra 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 2,645,000 General obligation bonds refunded 18,200,000 Loan contracts payable 183,840 Installment notes payable 415,000 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 22,887 Amortization of premium 35,697 Increase in compensated absences (2,762) Increase in net other postemployment benefits obligation (260,103) Change in accrued interest 31,815 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 (1,326,849) 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 (2,551,820) 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 (2,829,231) Revenues in the statement of activities that are not available in governmental funds are not reported as a revenue in governmental fiords until received (1,545,000) The change in net position of the internal service funds is reported with governmental activities 1,636,531 CHANGE IN NET POSITION (DEFICIT) OF GOVERNMENTAL ACTIVITIES $ (6,012,855) See accompanying notes to financial statements. -12- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS CURRENT ASSETS Cash and investments Receivables Property taxes Accounts - billed Accounts - unbilled Accrued interest Other Inventories Prepaid items Due from other governments Total current assets NONCURRENT ASSETS Deposits - insurance Deposit with joint venture Subtotal noncurrent assets Capital assets Capital assets not being depreciated Capital assets being depreciated, cost Accumulated depreciation Net capital assets Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Pension items - 1MRF Total assets and deferred outflows of resources CURRENT LIABILITIES Accounts payable Accrued payroll Retainage payable Claims payable Unearned revenue Other payables Compensated absences payable Total current liabilities December 31, 2016 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service $ 3,179,625 $ 428,260 $ 3,607,885 $ 13,177,384 1,515,464 - 1,515,464 - 530,971 - 530,971 - 784,922 - 784,922 - 2,200 - 2,200 4,385 41,988 - 41,988 2,851 410,287 - 410,287 293,061 10,180 - 10,180 162,030 643 - 643 11,854 6,476,280 428,260 6,904,540 13,651,565 - - - 2,244,022 881.764 - 881.764 - 881,764 - 881,764 2,244,022 17,736,982 232,354 17,969,336 304,047 38,422,512 364,800 38,787,312 13,178,694 (19,803,220) (364,800) (20,168,020) (8,538,271) 36,356,274 232,354 36,588,628 4,944,470 37,238,038 232,354 37,470,392 7,188,492 43,714,318 660,614 44,374,932 20,840,057 1,335,332 - 1,335,332 - 45,049,650 660,614 45,710,264 20,840,057 2,278,622 21,720 2,300,342 211,618 58,942 2,091 61,033 25,162 24,272 - 24,272 - - - - 1,020,210 - 40,940 40,940 - 833 - 833 13,179 47,689 995 48,684 30,010 2,410,358 65,746 2,476,104 1,300,179 (This statement is continued on the following page.) -13- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF NET POSITION (Continued) PROPRIETARY FUNDS LONG-TERM LIABILITIES Compensated absences payable Claims payable Net other postemployment benefits obligation Net pension liability - IMRF Total long-term liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Pension items - IMRF December 31, 2016 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service $ 190,754 $ 3,979 $ 194,733 $ 120,044 - - - 202,310 83,647 2,511 86,158 43,462 1,629,419 - 1,629,419 - 1,903,820 6,490 1,910,310 365,816 4,314,178 72,236 4,386,414 1,665,995 124,822 - 124,822 - Total liabilities and deferred inflows of resources 4,439,000 72,236 4,511,236 1,665,995 NET POSITION Investment in capital assets 36,356,274 232,354 36,588,628 4,944,470 Unrestricted 4,254,376 356,024 4,610,400 14,229,592 TOTAL NET POSITION $ 40,610,650 $ 588,378 $ 41,199,028 $ 19,174,062 See accompanying notes to financial statements. -14- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2016 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service OPERATING REVENUES Charges for services $ 12,931,867 $ 334,102 $ 13,265,969 $ 10,798,374 Contributions - - - 1,291,865 Miscellaneous - - - 16,462 Total operating revenues 12,931,867 334,102 13,265,969 12,106,701 OPERATING EXPENSES Administration and maintenance 15,445,931 390,118 15,836,049 2,671,815 Insurance and claims - - - 7,267,819 Depreciation 604,661 - 604,661 644,112 Total operating expenses 16,050,592 390,118 16,440,710 10,583,746 OPERATING INCOME (LOSS) (3,118,725) (56,016) (3,174,741) 1,522,955 NON-OPERATING REVENUES (EXPENSES) Property taxes 1,524,901 - 1,524,901 - Investment income 13,263 1,156 14,419 36,386 Other income 90,810 - 90,810 - Gain (loss) on the sale of capital assets (4,032) - (4,032) 49,007 Total non-operating revenues (expenses) 1,624,942 1,156 1,626,098 85,393 INCOME (LOSS) BEFORE CAPITAL GRANTS AND CONTRIBUTIONS (1,493,783) (54,860) (1,548,643) 1,608,348 CAPITAL GRANTS AND CONTRIBUTIONS 244,423 - 244,423 28,183 CHANGE IN NET POSITION (1,249,360) (54,860) (1,304,220) 1,636,531 NET POSITION, JANUARY 1 41,273,710 643,238 41,916,948 17,537,531 Change in accounting principle 586,300 - 586,300 - NET POSITION, JANUARY 1, RESTATED 41,860,010 643,238 42,503,248 17,537,531 NET POSITION, DECEMBER 31 $ 40,610,650 $ 588,378 $ 41,199,028 $ 19,174,062 See accompanying notes to financial statements. -15- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from interfund services Receipts from miscellaneous revenues Payments to suppliers Payments to employees Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Home rule sales taxes Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Investment income Net cash from investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY] CASH AND CASH EQUIVALENTS, DECEMBER 31 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service $ 12,865,821 $ 291,668 $ 13,157,489 $ 2,188,652 - - - 9,890,172 58,798 25,871 84,669 28,057 (11,237,300) (286,694) (11,523,994) (8,139,638) (2,616,507) (93,948) (2,710,455) (1,403,742) (929,188) (63,103) (992,291) 2,563,501 1,528,435 - 1,528,435 - - 1,595 1,595 - 1,528,435 1,595 1,530,030 - (615,999) - (615,999) (970,116) (615,999) - (615,999) (970,116) 11,063 1,156 12,219 32,001 11,063 1,156 12,219 32,001 (5,689) (60,352) (66,041) 1,625,386 3,185,314 488,612 3,673,926 11,551,998 $ 3,179,625 $ 428,260 $ 3,607,885 $ 13,177,384 (This statement is continued on the following page.) -16- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS For the Year Ended December 31, 2016 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation Other income Changes in assets and liabilities Receivables Inventories Prepaid items Deposits Accounts payable and retainage payable Accrued payroll and compensated absences Net other postemployment benefits obligation Pension items - IMRF Unearned revenues Claims payable NET CASH FROM OPERATING ACTIVITIES NONCASH TRANSACTIONS Capital contributions Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service $ (3,118,725) $ (56,016) $ (3,174,741) $ 1,522,955 604,661 - 604,661 644,112 90,810 - 90,810 - (98,058) - (98,058) 180 (15,971) - (15,971) (15,933) (3,185) - (3,185) (22,504) (184,517) - (184,517) (139,607) 1,399,470 6,272 1,405,742 155,053 40,531 1,833 42,364 10,251 45,176 1,371 46,547 19,442 310,620 - 310,620 - - (16,563) (16,563) - - - - 389.552 $ (929,188) $ (63,103) $ (992,291) $ 2,563,501 $ 244,423 $ - $ 244,423.0 $ 28,183 See accompanying notes to financial statements. -17- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2016 ASSETS Cash and cash equivalents Investments State and local obligations U.S. Government and U. S. agency obligations Corporate bonds and obligations Real estate Mutual funds Accrued interest receivable Prepaids Due from other funds Deposits Total assets LIABILITIES Accounts payable Deposits payable Other liabilities Total liabilities NET POSITION RESTRICTED FOR PENSIONS Pension Trust Agency Funds Funds $ 1,102,823 $ 1,368,315 3,004,536 - 21,728,745 - 18,108,464 - 2,950,073 - 73,068,834 - 258,718 - 3,582 - 140,273 - - 7,140 120,366,048 $ 1,375,455 44,533 $ - - 1,375,455 44,533 $ 1,375,455 $ 120,321,515 See accompanying notes to financial statements. -18- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2016 ADDITIONS Contributions Employer Plan members Total contributions Investment income Interest earned Net change in fair value Less investment expenses Net investment income Total additions DEDUCTIONS Administration Benefits and refunds Total deductions NET INCREASE NET POSITION RESTRICTED FOR PENSIONS January 1 December 31 See accompanying notes to financial statements. -19- $ 6,039,870 1,483,754 7,523,624 1,356,324 6,051,931 (197,059) 7,211,196 14,734,820 99,862 9,670,185 9,770,047 4,964,773 115,356,742 $ 120,321,515 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2016 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. -20- 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. -21- 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. -22- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Government -Wide and Fund Financial Statements (Continued) The Refuse Disposal Fund is a special revenue fund used to account for the revenues and expenditures associated with providing solid waste collection services. Financing is provided by restricted property taxes, user fees, and recycling income. The Village has elected to present the Refuse Disposal Fund as a major fund. The Debt Service Fund is used to account for the servicing of general long-term debt not being financed by proprietary funds. The 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. -23- 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, income taxes, and telecommunication taxes which use 90 days. The Village recognizes property taxes when they become both measurable and available in the year for which they are levied (i.e., intended to finance). Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as expenditures when due. Sales taxes owed to the state at year-end, franchise taxes, licenses, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and are recognized as 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. -24- 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 loonies 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. -25- 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. -26- 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. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and improvements 20-50 Machinery and equipment 2-20 Vehicles 2-20 Infrastructure 15-50 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. -27- 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 2016 attached as an enforceable lien on January 1, 2016 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, 2017 and August 1, 2017 and are payable in two installments, on or about March 1, 2017 and September 1, 2017. 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 2016 levy is intended to fund the 2017 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. 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. -29- 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 generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 2. DEPOSITS AND INVESTMENTS The Village and pension funds categorize fair value measurements within the fair value hierarchy established by generally accepted accounting principles. 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. The Village does not have any investments for which fair valuation is applicable. Refer to Note 12 for relevant information related to the Police Pension Plan and Fire 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, Illinois Funds (created by the Illinois State Legislature under the control of the State Comptroller that maintains a S1 per share value which is equal to the participants fair value), and Illinois Metropolitan Investment Fund (IMET). The Village's investment policy does limit its deposits to financial institutions that are members of the FDIC system and are capable of posting collateral for amounts in excess of FDIC insurance. -30- 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 Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for short and long-term cash flow needs while providing a reasonable rate of return based on the current market. Unless matched to a specific cash flow, maturities should not exceed two years from the date of purchase. Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The Village limits its exposure to credit risk by permitting investments in only those securities allowed under law and by specifically prohibiting investments in leveraged or derivative securities. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the state to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company. Investments in Illinois Funds are valued at Illinois Funds' share price, the price for which the investment could be sold. 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. -31- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) Village Deposits and Investments (Continued) Investments (Continued) Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Village will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Village's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by an independent third party custodian and evidenced by safekeeping receipts and a written custodial agreement. Illinois Funds, money market mutual funds, and IMET are not subject to custodial credit risk. Concentration of credit risk is the risk that the Village has 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. 3. RECEIVABLES The following receivables are included in due from other governments on the statement of net position: GOVERNMENTAL ACTIVITIES Court fines $ 27,560 Mount Prospect Public Library 8,748,336 Grants 839,469 TIF surplus 380,758 Miscellaneous 32,359 TOTAL $ 10,028,482 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/govemmental activities. -32- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. RECEIVABLES (Continued) The annual debt service requirements are as follows: Year Ending 2017 2018 2019 2020 2021 2022 TOTAL 4. CAPITAL ASSETS Principal Interest $ 1,375,000 $ 203,650 1,400,000 176,150 1,425,000 148,150 1,470,000 105,400 1,515,000 61,300 1,550,000 31,000 $ 8,735,000 $ 725,650 Capital asset activity for the Village for the year ended December 31, 2016 was as follows: GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land (including right-of-ways) Construction in progress Total capital assets not being depreciated Capital assets being depreciated Buildings Improvements other than buildings Vehicles Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for Buildings Improvements other than buildings Vehicles Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET Balances Balances January 1 Additions Retirements December 31 $ 10,291,446 $ - $ - $ 10,291,446 1,201,514 1,398,727 489,444 2,110,797 11,492,960 1,398,727 489,444 12,402,243 38,009,332 - - 38,009,332 436,273 - - 436,273 10,1 16,129 867,406 355,977 10,627,558 3,334,880 392,968 131,049 3,596,799 85,628,750 175,203 18,386 85,785,567 137.525.364 1.435.577 505.412 138.455.529 9,547,371 754,855 - 10,302,226 337,307 21,814 - 359,121 6,643,276 545,725 319,963 6,869,038 2,401,987 177,923 129,549 2,450,361 63,922,533 2,688,842 18,386 66,592,989 82.852.474 4.189.159 467.898 86.573.735 54,672,890 (2,753,582) 37,514 51,881,794 $ 66,165,850 $ (1,354,855) $ 526,958 $ 64,284,037 -33- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS (Continued) BUSINESS -TYPE ACTIVITIES Capital assets not being depreciated Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated Buildings and improvements Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for Buildings and improvements Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net BUSINESS -TYPE ACTIVITIES CAPITAL ASSETS, NET Balances Balances January 1 Additions Retirements December 31 $ 17,551,172 $ - $ - $ 17,551,172 11,298,816 418,164 11,298,816 418,164 28,849,988 418,164 11,298,816 17,969,336 4,875,816 - - 4,875,816 4,062,241 955,727 - 5,017,968 18,174,213 10,785,347 66,032 28,893,528 27,112,270 11,741,074 66,032 38,787,312 2,812,574 75,281 - 2,887,855 3,024,550 166,439 - 3,190,989 13,788,235 362,941 62,000 14,089,176 19,625,359 604,661 62,000 20,168,020 7,486,911 11,136,413 4,032 18,619,292 $ 36,336,899 $ 11,554,577 $ 11,302,848 $ 36,588,628 Depreciation expense was charged to functions/programs of the governmental activities as follows: GOVERNMENTAL ACTIVITIES General government $ 403,271 Public safety 369,170 Highways and streets 2,763,017 Health and welfare 2,349 Culture and recreation 7,240 Internal service funds 644,112 TOTAL $ 4,189,159 -34- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and injuries to the Village's employees. These risks along with medical claims for employees and retirees are provided for through a limited self-insurance program. The Village is self-insured for the first $25,000 for property claims, $2,000,000 for liability claims, $2,000,000 for errors and omissions, and $650,000 for workers' compensation claims. Commercial insurance is carried for amounts in excess of the self-insured amounts. There were no significant changes in insurance coverage from the prior year. For all programs, settlement amounts have not exceeded insurance coverage for the current or three prior years. The Village's self-insurance activities are reported in the Risk Management Fund which is an internal service fund. Premiums are paid into the Risk Management Fund by the departments of the General Fund and other funds based upon historical cost estimates. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Reported liabilities are actuarially determined and include an amount for claims that have been incurred but not reported. The total claims liability as of December 31, 2016 was $1,222,520. 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, 2014 $ 97 $ Claims incurred - 2015 7,391 Claims payments - 2015 5,988 UNPAID CLAIMS, DECEMBER 31, 2015 1,500 Claims incurred - 2016 114,444 Claims payments - 2016 56,932 821,389 $ 108,000 $ 929,486 750,086 (34,715) 722,762 800.607 12.685 819.280 770,868 60,600 832,968 583,114 57,752 755,310 282.963 25.863 365.758 UNPAID CLAIMS, DECEMBER 31, 2016 $ 59,012 $ 1,071,019 $ 92,489 $ 1,222,520 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. -35- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT (Continued) a. High -Level Excess Liability Pool (Continued) HELP was organized on April 1, 1987 with the initial agreement extended to April 30, 2018. The purpose of HELP is to act as a joint self-insurance pool for the purpose of seeking the prevention or lessening of liability claims for injuries to persons or property or claims for errors and omissions made against the members and other parties included within the scope of coverage of HELP. HELP is governed by a Board of Directors which consists of one appointed representative from each member municipality. Each director has an equal vote. The officers of HELP are appointed by the Board of Directors. The Board of Directors determines the general policy of HELP; makes all appropriations; approves contracts; adopts resolutions providing for the issuance of debt by HELP; adopts bylaws, rules, and regulations; and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the by-laws. The Village does not exercise any control over the activities of HELP beyond its representation on the Board of Directors. The Village of Elk Grove Village, Illinois (the initial Host Member) issued $5,000,000 of general obligation bonds in 1987 to provide initial funding for HELP. The bond proceeds were put into escrow. An intergovernmental agreement among HELP, the Village of Elk Grove Village, Illinois, and the members provided that HELP and its members were obligated to the Village of Elk Grove Village, Illinois for payment of principal and interest on the bonds until such bonds were retired. Additionally, each member was liable for its proportionate share of any default by other members. The obligations of HELP and its members are unconditional. The bonds were paid in full as of April 30, 1997. b. Intergovernmental Personnel Benefit Cooperative 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. -36- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT (Continued) b. Intergovernmental Personnel Benefit Cooperative (Continued) IPBC acts as an administrative agency to receive, process, and pay such claims as may come within the benefit program of each member. IPBC maintains specific reinsurance coverage for claims in excess of $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. 6. LONGTERM DEBT a. General Obligation Bonds The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. Any general obligation bonds issued for proprietary funds are reported in the proprietary funds if they are expected to be repaid from proprietary revenues. General obligation bonds have been issued for general governmental activities and for the Library only. In addition, general obligation bonds have been issued to refund general obligation bonds. On September 8, 2016, the Village issued General Obligation Library Refunding Bonds, Series 2016 to advance refund the General Obligation Library Refunding Bonds, Series 2006. The refunding resulted in a cash flow savings of $939,438 and an economic gain of $812,179. Additionally, on December 1, 2016, the Village issued General Obligation Refunding Bonds, Series 2016 to advance refund the General Obligation Bonds, Series 2009. The refunding resulted in a cash flow savings of $1,152,339 and an economic gain of $1,156,813. 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. -37- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) 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. d. Changes in Long -Term Liabilities The following is a summary of changes in long-term debt for the year ended December 31, 2016: Current Debt Balances Balances Portion at Retired by January l Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES $10,000,000 General Obligation Bonds, Series 2006, due in annual installments of $450,000 to $1,655,000, plus interest at 3.75% to 4.10% through December 1, Debt 2022. Service $ 9,555,000 $ - $ 9,555,000 $ $10,000,000 General Obligation Bonds, Series 2009, due in annual installments of $200,000 to $1,955,000, plus interest at 3.005% to 4.500% through Debt December 1, 2028. Service 9,800,000 - 9,200,000 600,000 - $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 2,035,000 - 315,000 1,720,000 320,000 $2,650,000 Taxable General Obligation Bonds, Series 2009C, due in annual installments of $25,000 to $1,000,000, plus interest at 3.00% to 5.75% through Debt December 1, 2029. Service 2,585,000 - 55,000 2,530,000 75,000 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long -Term Liabilities (Continued) $4,100,000 General Obligation Bonds, Series 2011A, due in annual installments of $60,000 to $1,100,000, plus interest at 1.75% through December 1, 2016. $5,160,000 General Obligation Bonds, Series 201 1B, due in annual installments from $40,000 to $775,000, plus interest at 2.52% through 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% through December 1, 2022. $9,800,000 General Obligation Bonds, Series 2013, due in annual installments of $555,000 to $885,000, plus interest at 3.000% to 4.125% through December 1, 2033. $6,290,000 General Obligation Bonds, Series 2014, due in annual installments of $290,000 to $1,265,000, plus interest at 3% through December 1, 2023. $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% through December 1, 2022. $9,100,000 General Obligation Bonds, Series 2016A, due in annual installments of $120,000 to $1,905,000, plus interest at 3% through December 1, 2028. Total bonds Current Debt Balances Balances Portion at Retired by January 1 Additions Reductions December 31 December 31 Debt Service $ 725,000 $ Debt Service 3,675,000 Debt Service 1,745,000 Debt Service Debt Service Debt Service Debt Service 9,800,000 - $ 725,000 $ - $ - - 695,000 2,980,000 715,000 - - 1,745,000 - - - 9,800,000 - 5,685,000 - 300,000 5,385,000 305,000 - 8,735,000 - 8,735,000 1,375,000 - 9,100,000 - 9,100,000 120,000 45,605,000 17,835,000 20,845,000 42,595,000 2,910,000 -39- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long -Term Liabilities (Continued) $1,203,550 IEPA Flood Loan Contract Payable of 1997 (1,17-0855), due in semiannual installments of $62,285 to $79,035, plus interest at 2.89% through November 1, 2017. $1,760,422 TEPA Flood Loan Contract Payable of 1999 (L17-1087), due in semiannual installments of $57,498 to $112,771, plus interest at 2.625% through June 3, 2019. Total IEPA flood loan installment notes payable $2,500,000 installment note payable of 2012, due in annual installments of $25,000 to $590,000, plus interest at 0.91 % through December 1, 2019. Total installment notes payable $25,000,000 Business District limited tax note payable of 2010, interest at 6.71% due in semiannual installments contingent upon sufficient pledged revenues. Total Business District limited tax note payable Current Debt Balances Balances Portion at Retired by January 1 Additions Reductions December 31 December 31 Debt Service $ 155,835 $ - $ 76,800 $ 79,035 $ 79,035 Debt Service 387,179 - 107,039 280,140 109 543,014 - 183,839 359,175 188,903 Debt Service 1,940,000 - 415,000 1,525,000 420,000 1,940,000 - 415,000 1,525,000 420,000 Business District 31,790,140 - 22,887 31,767,253 31.790.140 - 22.887 31.767.253 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 2016: Balances Current Debt January 1, as Balances Portion at Retired by Restated Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES Compensated absences General $ 3,374,988 $ 148,655 $ 112,675 $ 3,410,968 $ 682,194 Claims and judgments Internal Service 832,968 755,394 365,842 1,222,520 1,020,210 Net other postemployrnent benefit obligation General 1,203,656 279,545 - 1,483,201 - General obligation bonds Debt Service 45,605,000 17,835,000 20,845,000 42,595,000 2,910,000 Unamortized bond premium 322,931 1,022,839 35,697 1,310,073 - Loan contracts payable Debt Service 543,015 - 183,840 359,175 188,903 Installment notes payable Debt Service 1,940,000 - 415,000 1,525,000 420,000 Net pension liability - IMRF General 4,223,679 2,737,820 - 6,961,499 - Net pension liability - Police Pension General 51,731,299 - 3,382,320 48,348,979 - Net pension liability - Firefighters' Pension General 41,490,012 1,162,725 - 42,652,737 - Business District limited tax Business note payable District 31,790,140 - 22,887 31,767,253 - Total governmental activities 183,057,688 23,941,978 25,363,261 181,636,405 5,221,307 BUSINESS -TYPE ACTIVITIES Compensated absences* 207,327 36,090 - 243,417 48,684 Net pension liability - IMRF** 988,601 640,818 - 1,629,419 - Net other postemployment benefit obligation* 39,611 46,547 - 86,158 - Total business -type activities 1,235,539 723,455 - 1,958,994 48,684 TOTAL $ 184,293,227 $ 24,665,433 $ 25,363,261 $ 183,595,399 $ 5,269,991 *Compensated absences and the net other postemployment benefit obligation 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. -41- 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 2017 $ 2,910,000 $ 876,815 $ 188,903 $ 8,355 $ 420,000 $ 13,878 2018 3,085,000 836,860 112,772 3,735 515,000 10,056 2019 3,200,000 790,363 57,500 754 590,000 5,369 2020 4,060,000 736,507 - - - - 2021 4,440,000 657,447 - - - - 2022 4,645,000 563,342 - - - - 2023 2,825,000 460,106 - - - - 2024 2,285,000 382,006 - - - - 2025 2,390,000 333,006 - - - - 2026 2,470,000 307,006 - - - - 2027 2,545,000 280,006 - - - - 2028 2,635,000 252,006 - - - - 2029 1,760,000 222,807 - - - - 2030 790,000 134,907 - - - - 2031 820,000 103,307 - - - - 2032 850,000 70,507 - - - - 2033 885,000 36,507 - - - - TOTAL $ 42,595,000 $ 7,043,505 $ 359,175 $ 12,844 $ 1,525,000 $ 29,303 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. -42- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) £ Legal Debt Margin The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin. "The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property ... (2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: ... indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum ... shall not be included in the foregoing percentage amounts." To date the General Assembly has set no limits for home rule municipalities. 7. CONTRACTUAL COMMITMENTS a. High -Level Excess Liability Pool The Village has committed to purchase excess liability insurance from HELP, a public entity risk pool for certain Illinois municipalities through April 30, 2018. There is no minimum annual commitment amount for the purchase of this insurance coverage. Future premiums will be calculated using the Village's allocation percentage. HELP's agreement provides that each year members will be assessed based on a formula utilizing miles of streets, number of vehicles, operating revenues, and full-time equivalent employees. The Village paid $122,368 to HELP in 2016. For 2017, the Village estimates it will pay $129,989. b. 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 2017, the Village estimates it will pay SWANCC $904,291, with annual increases ranging from 0% to 3% through 2022. -43- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 8. INTERFUND ACTIVITY Due From/To Other Funds Receivable Fund General Fiduciary Police Pension Firefighters' Pension TOTAL le Fund Amount Prospect/Main TIF Fund $ 687,995 CDBG Fund 47.768 735.763 General 58,891 General 81,382 The purpose of the significant interfund receivables/payables are as follows: 140,273 $ 876,036 • $687,995 due to the General Fund from the Prospect/Main TIF Fund. The balance represents a short-term operating loan to this newly created TIF. Expenses related to property acquisition and site clean-up were funded by a short-term loan which is expected to be repaid upon the sale of subject property. Repayment is expected during calendar year 2017. • $58,891 due to the Police Pension Fund from the General Fund. This was the contributions due for 2016 tax collections received in January and February 2017. • $81,382 due to the Firefighters' Pension Fund from the General Fund. This was the contributions due for 2016 tax collections received in January and February 2017. The purpose of significant transfers from/to between funds are as follows: • $664,544 transferred to the Business District Fund from the General Fund for the business district portion of 2015 Sales Tax not transferred in 2015. • $973,382 transferred to the nonmajor Downtown Redevelopment Fund from the General Fund. The transfer allowed for the closing out of the Downtown Redevelopment Fund TIF which carried a deficit fund balance. The Downtown Redevelopment TIF Fund was terminated by board action on October 18, 2016 and made effective December 31, 2016. 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. 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. -45- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) a. Solid Waste Agency of Northern Cook County (Continued) 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 $1,063,494 to SWANCC in 2016. The payments have been recorded in the Refuse Disposal Fund. The Village does not have an equity interest in SWANCC at December 31, 2016. 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. The seven members of JAWA and their percentage shares as of April 30, 2016 are as follows: Village of Elk Grove Village Village of Hanover Park Village of Hoffman Estates Village of Mount Prospect City of Rolling Meadows Village of Schaumburg Village of Streamwood TOTAL Mem Percent Share 16.95% 9.08% 16.44% 12.25% 7.38% 26.73% 11.17% 100.00% 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) 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. 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. -47- 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 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 $6,375,206 to JAWA for 2016. Deposits with JAWA in the amount of $881,764 represent amounts held for security for debt service. 11. OTHER POSTEMPLOYMENT BENEFITS a. Plan Description In addition to providing the pension benefits described, the Village provides postemployment health care benefits (OPEB) for retired employees through a single -employer defined benefit plan (the Plan). The benefits, benefit levels, employee contributions, and employer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. Certain benefits are controlled by state laws and can only be changed by the Illinois Legislature. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the Plan. The Plan does not issue a separate report. The activity of the Plan is reported in the Village's governmental and business -type activities. b. Benefits Provided The Village provides pre and post -Medicare postretirement health insurance to retirees, their spouses, and dependents (enrolled at time of employee's retirement). VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) b. Benefits Provided (Continued) 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, 2016, retirees contributed $769,119. C. Membership At December 31, 2014 (latest information available), membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 78 Active employees 271 TOTAL Participating employers d. Funding Policy 349 1 The Village is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the Plan until retirement. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Annual OPEB Costs and Net OPEB Obligation The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2016 and the two preceding years was as follows: Fiscal Annual Percentage of Year OPEB Employer Annual OPEB Net OPEB Ended Cost Contributions Cost Contributed Obligation 2014 $ 607,350 $ 287,447 47.33% $ 922,971 2015 682,426 362,130 53.07% 1,243,267 2016 688,222 362,130 53.09% 1,569,359 The net OPEB obligation as of December 31, 2016 was calculated as follows: Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost Contributions made Increase in net OPEB obligation Net OPEB obligation, beginning of year NET OPEB OBLIGATION, END OF YEAR $ 679,933 49,731 (41,442) 688,222 362.130 326,092 1,243,267 $ 1,569,359 Funded Status and Funding Progress: The funded status and funding progress of the Plan as of December 31, 2014 (latest information available) was as follows: Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan assets/AAL) Covered payroll (active plan members) UAAL as a percentage of covered payroll -50- $ 10,485,116 10,485,116 0.00% $ 27,084,313 38.71% VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Annual OPEB Costs and Net OPEB Obligation (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend rate. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial methods and assumptions - projections of benefits for financial reporting purposes are based on the substantive plan (the Plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the December 31, 2014 actuarial valuation (latest information available), the entry -age normal actuarial cost method was used. The actuarial assumptions included a 3.5% investment rate of return and an initial healthcare cost trend rate of 2.1 % with an ultimate healthcare inflation rate of 5.5%. Both rates include a 3.5% inflation assumption and 4.0% wage inflation assumption. The actuarial value of assets was not determined as the Village has not advance funded its obligation. The Plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 1, 2014 was 30 years. -51- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 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 imr£org. 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. 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 required contribution rate for calendar year 2016 was 11.99%. -52- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Plan Membership At December 31, 2015, IMRF membership consisted of: Inactive plan members currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members TOTAL 216 174 244 The IMRF data included in the table above includes membership of both the Village and the Library. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2015 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2015 Actuarial cost method Entry -age normal Asset valuation method Market value of assets Assumptions Price inflation 2.75% Salary increases 3.75% to 14.50% 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 -53- 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 (Continued) For nondisabled retirees, an IMRF-specific mortality table was used with fully generational projection scale MP -2014 (base year 2014). 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 -2014 (base year 2014). The IMRF specific rates were developed from the RP -2014 Disabled Retirees Mortality Table applying the same adjustments that were applied for non -disabled lives. For active members, an IMRF-specific mortality table was used with fully generational projection scale MP -2014 (base year 2014). The IMRF specific rates were developed from the RP -2014 Employee Mortality Table with adjustments to match current IMRF experience. Discount Rate The discount rate used to measure the IMRF total pension liability was 7.48%. 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 not projected to be available to make all projected future benefit payments of current plan members and therefore was blended with the index rate of 3.57% for tax exempt general obligation municipal bonds rated AA or better at December 31, 2015 to arrive at a discount rate of 7.48% used to determine the total pension liability. -54- 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 BALANCES AT JANUARY 1, 2015 Changes for the period Service cost Interest Difference between expected and actual experience Changes in assumptions Employer contributions Employee contributions Net investment income Benefit payments and refunds Other (net transfer) Net changes BALANCES AT DECEMBER 31, 2015 (a) (b) 113,021 - Total Plan (a) - (b) Pension Fiduciary Net Pension Liability Net Position Liability $ 88,324,160 $ 81,196,743 $ 7,127,417 1,810,785 - 1,810,785 6,548,331 - 6,548,331 (1,203,005) - (1,203,005) 113,021 - 113,021 - 1,863,011 (1,863,011) - 731,552 (731,552) - 403,461 (403,461) (3,603,793) (3,603,793) - - (348,936) 348,936 3,665,339 (954,705) 4,620,044 $ 91,989,499 $ 80,242,038 $ 11,747,461 There were changes in assumptions made since the prior measurement date. The discount rate used in the current actuarial valuation, dated December 31, 2015 is 7.48%. The discount rate used in the prior actuarial valuation, dated December 31, 2014 was 7.49%. -55- 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, 2015, the employer contributions, and the net pension liability at December 31, 2015 were $5,212,280, $1,362,420, and $8,590,918, respectively. The Library's collective shares of the net pension liability at January 1, 2015, the employer contributions, and the net pension liability at December 31, 2015 were $1,915,137, $500,591, and $3,156,543, respectively. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2016, the Village recognized pension expense of $1,326,849. At December 31, 2016, the Village reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following sources: Difference between expected and actual experience Changes in assumptions Employer contributions after the measurement date Net difference between projected and actual earnings on pension plan investments TOTAL Deferred Deferred Outflows of Inflows of Resources Resources $ 806,165 1,676,199 1,987,782 $ 899,920 5,157,307 - $ 9,627,453 $ 899,920 The net deferred outflows and inflows presented in the table above include amounts for both the Village and the Library. The Village's proportionate share of the net deferred outflows and inflows of resources at December 31, 2016 was $6,382,267. The Library's proportionate share of the deferred outflows of resources at December 31, 2016 was $2,345,266. The Village and Library contributed an additional $1,453,487 and $534,295, respectively, to the plan subsequent to the measurement date of December 31, 2015 which are included in deferred outflows of resources as of December 31, 2016. -56- 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 Defer'r'ed Outflows of Resources and Defer'r'ed Inflows of Resources (Continued) $1,453,487 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, 2017. 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, 2017 2018 2019 2020 TOTAL Discount Rate Sensitivity $ 1,626,971 1,626,971 850,610 824,228 $ 4,928,780 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 7.48% 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 (6.48%) or 1 percentage point higher (8.48%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.48%) (7.48%) (8.48%) Net pension liability (Village) $ 17,546,541 $ 8,590,918 $ 1,216,103 Net pension liability (Library) 6,447,088 3,156,543 446,830 Net pension liability (total) $ 23,993,629 $ 11,747,461 $ 1,662,933 -57- 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, 2016, the Police Pension Plan membership consisted of- Inactive £ Inactive plan members currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members TOTAL Benefits Provided 71 7 83 161 The Police Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. 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 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., '/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 Pt 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, 2016, the Village's contribution was 39.06% of covered payroll. The Village utilizes the entry -age normal actuarial cost method to fund the plan. 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 -59- 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) 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. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the state to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company. Investments in Illinois Funds are valued at Illinois Funds' share price, the price for which the investment could be sold. Investments in IMET are valued at IMET's share price, the price for which the investment could be sold. It is the policy of the 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 Rate Asset Class Tarvet of Return Fixed Income 45.0% 1.4% Large Cap Domestic Equities 38.5% 6.6% Small Cap Domestic Equities 11.0% 8.6% International Equities 5.5% 6.9% -60- 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 Stocks, Bonds, Bills and Inflation 2013 Yearbook - Morningstar for the period December 31, 1925 through December 31, 2015. The International Equity equals the MSCI EAFE Index for the period December 31, 1977 through December 31, 2015. 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, 2016. 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 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, 2016, 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, 2016, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 7.15%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. -61- 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, 2016: Investment Maturities (in Years) Less Greater Investment Type Fair Value than 1 1-5 6-10 than 10 U.S. Treasuries $ 4,045,138 $ 449,780 $ 1,971,586 $ 1,529,924 $ 93,848 U.S. agencies 6,495,150 1,112 317,701 599,034 5,577,303 State, local, and municipal bonds 2,158,254 306,350 234,825 105,517 1,511,562 Corporate bonds 10,299,758 370,786 5,913,660 3,745,711 269,601 TOTAL $ 22,998,300 $ 1,128,028 $ 8,437,772 $ 5,980,186 $ 7,452,314 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, 2016: 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. Treasuries and agencies, money market mutual funds, and Illinois Funds are rated AAA. The state, local, and municipal bonds are rated AAA. The corporate bonds are rated BAA3 to AAA. -62- 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. 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, 2016 were as follows: BALANCES AT JANUARY 1, 2016 Changes for the period Service cost Interest Difference between expected and actual experience Changes in assumptions Employer contributions Employee contributions Net investment income Benefit payments and refunds Administrative expense Net changes BALANCES AT DECEMBER 31, 2016 (a) (b) 29,971 - Total Plan (a) - (b) Pension Fiduciary Net Pension Liability Net Position Liability $ 110,231,339 $ 58,500,040 $ 51,731,299 1,732,924 - 1,732,924 8,221,483 - 8,221,483 (5,201,074) - (5,201,074) 29,971 - 29,971 - 3,232,887 (3,232,887) - 815,684 (815,684) - 4,161,658 (4,166,658) (4,688,978) (4,688,978) - - (44,605) 49,605 -63- 94,326 3,476,646 (3,382,320) $ 110,325,665 $ 61,976,686 $ 48,348,979 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 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%. The projected rate for annual pay increases used in the prior actuarial valuation, dated December 31, 2015, was 5%. 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 information 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, 2016 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2016 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 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, projected from 2006 to 2017 using Scale MP -2016. Mortality rates for disabled individuals were based on the RP -2000 Disabled Mortality Table, projected from 2006 to 2017 using Scale MP -2016 The actuarial assumptions used in the December 31, 2016 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated September 26, 2012. Discount Rate The discount rate used to measure the total pension liability was 7.25%. 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 1 % Increase (6.25%) (7.25%) (8.25%) Net pension liability $ 62,691,315 $ 48,348,979 $ 35,656,646 -65- 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, 2016, the Village recognized police pension expense of $5,784,707. At December 31, 2016, the Village reported deferred outflows of resources and deferred inflows of resources related to the police pension from the following sources: Difference between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on pension plan investments TOTAL Deferred Outflows of Resources Deferred Inflows of Resources $ 58,140 $ 4,334,228 4,442,897 - 1,183,496 - $ 5,684,533 $ 4,334,228 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 2017 $ 963,194 2018 963,194 2019 963,195 2020 (677,430) 2021 (861,848) TOTAL $ 1,350,305 MGM 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, 2016, the Firefighters' Pension Plan membership consisted of: Inactive plan members currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members TOTAL Benefits Provided 84 1 71 156 The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held at the date of retirement. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a covered employee who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. -67- 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 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., '/z% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st after the firefighter retires or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or'/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, 2016, the Village's contribution was 40.20% 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 obligations of the State of Israel, money market mutual funds whose investments 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) 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. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the state to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company. Investments in Illinois Funds are valued at Illinois Funds' share price, the price for which the investment could be sold. Investments in IMET are valued at IMET's share price, the price for which the investment could be sold. It is the policy of the 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% -69- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Investment Policy (Continued) The 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. Investment Valuations All investments are stated at fair value at December 31, 2016. 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 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, 2016, 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, 2016, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 5.58%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. -70- 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 - 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 the an independent third party or the Federal Reserve Bank, and evidenced by safekeeping receipts. Interest Rate Risk The following table presents the investments and maturities of the Fund's debt securities as of December 31, 2016: Investment Maturities (in Years) Less Greater Investment Type Fair Value than 1 1-5 6-10 than 10 U.S. Treasuries $ 2,528,576 $ 554,925 $ 746,092 $ 1,227,559 $ - U.S. agencies 8,659,881 150,570 854,166 1,067,871 6,587,274 State, local and municipal bonds 846,282 357,291 380,773 108,218 - Corporate bonds 7,808,706 213,327 4,615,021 2,842,710 137,648 TOTAL $ 19,843,445 $ 1,276,113 $ 6,596,052 $ 5,246,358 $ 6,724,922 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, 2016: 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). -71- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Credit Risk Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. The U.S. Treasuries and agencies, money market mutual funds, and Illinois Funds are rated AAA. The state, local, and municipal bonds are rated AA2 to AAA. The corporate bonds are rated Bal to AAA. Custodial Credit Risk - Investments Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the 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. Illinois Funds and money market mutual funds are not subject to custodial credit risk. -72- 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 The components of the net pension liability of the Firefighters' Pension Plan as of December 31, 2016 were as follows: BALANCES AT JANUARY 1, 2016 Changes for the period Service cost Interest Difference between expected and actual experience Changes in assumptions Employer contributions Employee contributions Net investment income Benefit payments and refunds Administrative expense Net changes BALANCES AT DECEMBER 31, 2016 (a) (b) (a) - (b) Total Plan Net Pension Fiduciary Pension Liability Net Position Liability $ 98,346,714 $ 56,856,702 $ 41,490,012 1,429,810 - 1,429,810 7,296,444 - 7,296,444 (1,491,027) - (1,491,027) 396,832 - 396,832 - 2,806,983 (2,806,983) - 668,070 (668,070) - 3,049,538 (3,049,538) (4,981,207) (4,981,207) - - (55,257) 55,257 2,650,852 1,488,127 1,162,725 $ 100,997,566 $ 58,344,829 $ 42,652,737 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%. -73- 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 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%. The projected rate for annual pay increases used in the prior actuarial valuation, dated December 31, 2015, was 5%. 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 information 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, 2016 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2016 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 -74- 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 2017 using Scale MP -2016. Mortality rates for disabled individuals were based on the RP -2004 Disabled Mortality Table, projected from 2006 to 2017 using Scale MP -2016 The actuarial assumptions used in the December 31, 2016 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated September 26, 2012. Discount Rate The discount rate used to measure the total pension liability was 7.25%. 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 1 % Increase (6.25%) (7.25%) (8.25%) Net pension liability $ 54,772,445 $ 42,652,737 $ 31,831,569 -75- 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, 2016, the Village recognized firefighter's pension expense of $5,636,214. At December 31, 2016, the Village reported deferred outflows of resources and deferred inflows of resources related to the firefighter's pension from the following sources: Difference between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on pension plan investments TOTAL Deferred Outflows of Resources Deferred Inflows of Resources $ 1,040,650 $ 1,278,023 5,305,037 - 1,016,232 $ 7,361,919 $ 1,278,023 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 2017 $ 1,728,472 2018 1,728,472 2019 1,728,473 2020 1,211,104 2021 (156,314) Thereafter (156,311) TOTAL $ 6,083,896 -76- 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 ASSETS Cash and cash equivalents Investments State and local obligations U.S. Government and U.S. agency obligations Corporate bonds and obligations Real estate Mutual funds Accrued interest receivable Due from other funds Prepaids Total assets LIABILITIES Accounts payable Total liabilities Police Pension Firefighters' Pension Total $ 678,397 $ 424,426 $ 1,102,823 2,158,254 846,282 3,004,536 10,540,288 11,188,457 21,728,745 10,299,758 7,808,706 18,108,464 - 2,950,073 2,950,073 38,123,159 34,945,675 73,068,834 146,527 112,191 258,718 58,891 81,382 140,273 1.912 1.670 3.582 62,007,186 58,358,862 120,366,048 30,500 14,033 44,533 30.500 14.033 44.533 NET POSITION $ 61,976,686 $ 58,344,829 $ 120,321,515 -77- 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 ADDITIONS Contributions Employer Employee Total contributions Police Firefighters' Pension Pension Total $ 3,232,887 $ 2,806,983 $ 6,039,870 815,684 668,070 1,483,754 4,048,571 3,475,053 7,523,624 Invest income Net appreciation in fair value of investments 3,512,674 2,539,257 6,051,931 Interest income 760,605 595,719 1,356,324 Less investment expense (111,621) (85,438) (197,059) Net investment income 4,161,658 3,049,538 7,211,196 Total additions 8,210,229 6,524,591 14,734,820 DEDUCTIONS Administrative 44,605 55,257 99,862 Pension benefits and refunds 4,688,978 4,981,207 9,670,185 Total deductions 4,733,583 5,036,464 9,770,047 NET INCREASE 3,476,646 1,488,127 4,964,773 NET POSITION RESTRICTED FOR PENSIONS January 1 58,500,040 56,856,702 115,356,742 December 31 $ 61,976,686 $ 58,344,829 $ 120,321,515 13. DEFICIT FUND BALANCES As of December 31, 2016, the Prospect/Main TIF Fund had a deficit fund balance of $687,995. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. CHANGE IN ACCOUNTING PRINCIPLES In 2015, the Village adopted Government Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of GASB Statement No. 27. The new standard requires the Village to recognize a liability in its government -wide financial statements for the net pension liability associated with its pension plans. In 2016, the Village made a determination to report information from the December 31, 2015 actuarial valuation for IMRF in order to continue its dedication to timely financial reporting. Therefore, the related accounts were restated for the prior year to reflect the net pension liabilities and related deferred inflows and outflows of resources from December 31, 2014. Additionally, due to the requirements set forth in GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68, the Village reported contributions made subsequent to the measurement date as deferred outflows of resources. These amounts are part of the restatement disclosed in the table below. NET POSITION - GOVERNMENTAL ACTIVITIES AS PREVIOUSLY REPORTED, JANUARY 1, 2015 $ (50,487,964) Deferred outflows of resources - IMRF (766,453) Net pension liability - IMRF 2,737,820 IMRF deferred inflows of resources - IMRF 533,289 Total adjustments 2,504,656 TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES, AS RESTATED, DECEMBER 31, 2015 $ (47,983,308) NET POSITION - BUSINESS -TYPE ACTIVITIES AS PREVIOUSLY REPORTED, JANUARY 1, 2015 $ 41,916,948 Water and sewer fund Deferred outflows of resources - IMRF (179,340) Net pension liability - IMRF 640,819 IMRF deferred inflows of resources - IMRF 124,821 Total water and sewer 586,300 TOTAL NET POSITION - BUSINESS -TYPE ACTIVITIES AS RESTATED, JANUARY 1, 2015 $ 42,503,248 -79- 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, 2016 Original Final Budget Budget Actual REVENUES 6,870,160 7,349,086 6,926,119 Property taxes $ 15,884,000 $ 15,884,000 $ 15,917,480 Other taxes 7,340,000 7,340,000 7,115,142 Licenses, permits, and fees 2,153,000 2,273,000 2,350,787 Intergovernmental 21,892,020 23,292,020 23,585,057 Charges for services 1,671,300 1,671,300 1,782,869 Fines and forfeits 442,000 442,000 414,885 Investment income 4,100 4,100 49,202 Miscellaneous 271,800 271,800 336,102 Total revenues 49,658,220 51,178,220 51,551,524 EXPENDITURES General government 6,870,160 7,349,086 6,926,119 Public safety 32,777,349 33,045,849 32,417,472 Highways and streets 7,728,237 7,858,003 7,282,165 Health 161,466 251,496 160,555 Welfare 1,564,584 1,574,584 1,561,972 Culture and recreation 556,424 556,424 499,208 Total expenditures 49,658,220 50,635,442 48,847,491 OTHER FINANCING SOURCES (USES) Transfers (out) - (576,367) (1,240,625) Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 - (576,367) (140,625) $ - $ (33,589) 1,463,408 (See independent auditor's report.) -80- 17,220,943 $ 18,684,351 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, 2016 REVENUES Charges for services Investment income Miscellaneous Total revenues EXPENDITURES Health Refuse disposal division Personal services Employee benefits Other employee costs Contractual services Utilities Insurance Commodities and supplies Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Original Final Budget Budget Actual $ 4,588,500 $ 4,588,500 $ 4,564,906 500 500 2,315 11,000 11,000 30,216 4,600,000 4,600,000 4,597,437 241,809 241,809 252,386 116,065 116,065 115,843 1,273 1,273 1,273 4,341,424 4,334,224 3,980,458 456 456 228 28,914 28,914 28,914 39,203 46,403 45,915 4,769,144 4,769,144 4,425,017 $ (169,144) $ (169,144) 172,420 (See independent auditor's report.) -81- 1,191,201 $ 1,363,621 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFITS PLAN Last Six Fiscal Years N/A - Information not available. (See independent auditor's report.) -82- (6) (2) UAAL Actuarial (4) as a Actuarial (1) Accrued Unfunded Percentage Valuation Actuarial Liability (3) AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets Entry -Age (1)/(2) (2)-(l) Payroll (4)/(5) 2011 $ - $ 8,280,690 0.00% S 8,280,690 S 22,325,901 37.09% 2012 N/A N/A N/A N/A N/A N/A 2013 - 7,201,300 0.00% 7,201,300 24,540,441 29.34% 2014 N/A N/A N/A N/A N/A N/A 2015 - 10,485,116 0.00% 10,485,116 27,084,313 38.71% 2016 N/A N/A N/A N/A N/A N/A N/A - Information not available. (See independent auditor's report.) -82- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND Last Two Fiscal Years FISCAL YEAR ENDED DECEMBER 31, 2015 2016 Actuarially determined contribution Contributions in relation to the actuarially determined contribution CONTRIBUTION DEFICIENCY (Excess) Covered -employee payroll Contributions as a percentage of covered -employee payroll Notes to Required Supplementary Information $ 1,362,420 $ 1,453,487 1,362,420 1,453,487 $ 11,923,390 $ 12,119,270 11.43% 11.99% 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 28 years; the asset valuation method was five-year smoothed market; and the significant actuarial assumptions were an investment rate of return at 7.5% annually, projected salary increases assumption of 4.4% to 16.0% compounded annually and postretirement benefit increases of 3.0% 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 (See independent auditor's report.) -83- d z � O N M � � � z � O c4 p O iLl �'+ Cn m O ON O w � N � U � � m N O N p � m ac N r O m m O N m r, d O 00 N rq Cl ^ ZS ZS [9 59 v1 OC o "I o bq O M N 00 U m D\ W N �c cn CC M V G W O 69 6S y �n QCC O L F � U y N In CI M p N iC N c cu N L 69 > Z l� a o cC cC "O ID M o Ic o m N O C C O 0 v 4 ^ W 00 � N 1r; M cC o rq N > •�_ N M � M C. C ss �v o o � 4 y y y v omo cz O 69 A U bb _U ill N M O oGoc N � T OC 0 17' � N ifl cti N � o 'O O v� G 'V7 \ M N 00 00 Vl U "a O C 2�1 W Cd WE y O N C5 Uto o q)3 ca € t:. s w ^ o M^ � o E P �. tb O .O W V T L7, C O O O OLI u U O O VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS OTHER POSTEMPLOYMENT BENEFITS PLAN Last Six Fiscal Years (See independent auditor's report.) -86- Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC) Contributed 2011 S 254,814 $ 270,764 94.11% 2012 609,856 442,722 137.75% 2013 275,814 582,335 47.36% 2014 287,447 605,628 47.46% 2015 362,130 679,933 53.26% 2016 362,130 679,933 53.26% (See independent auditor's report.) -86- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ILLINOIS MUNICIPAL RETIREMENT FUND Last Two Fiscal Years MEASUREMENT DATE DECEMBER 31, Employer's proportion of net pension liability Employer's proportionate share of net pension liability Employer's covered -employee payroll Employer's proportionate share of the net pension liability as a percentage of its covered -employee payroll 2014 2015 73.13% 73.13% $ 5,212,280 $ 8,590,918 11,890,055 11,923,390 43.84% 72.05% Plan fiduciary net position as a percentage of the total pension liability 91.93% 87.23% 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.) -87- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND Last Three Fiscal Years MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 TOTAL PENSION LIABILITY Service cost Investment income Changes of benefit teens Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of member contributions Net change in total pension liability Total pension liability - beginning TOTAL PENSION LIABILITY - ENDING PLAN FIDUCIARY NET POSITION Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of member contributions Administrative expense Net change in plan fiduciary net position Plan fiduciary net position - beginning PLAN FIDUCIARY NET POSITION - ENDING EMPLOYER'S NET PENSION LIABILITY Plan fiduciary net position as a percentage of the total pension liability Covered -employee payroll Employer's net pension liability as a percentage of covered -employee payroll Notes to Required Supplementary Information $ 1,890,407 $ 1,777,310 $ 1,732,924 6,479,504 7,210,826 8,221,483 860,183 95,650 (5,201,074) 4,844,398 7,268,193 29,971 (4,117,120) (4,529,962) (4,688,978) 9,957,372 11,822,017 94,326 88,451,950 98,409,322 110,231,339 $ 98,409,322 $ 110,231,339 $ 110,325,665 $ 2,924,226 $ 2,918,395 $ 3,232,887 851,363 795,827 815,684 3,845,862 545,802 4,161,658 (4,117,120) (4,529,962) (4,688,978) (60,382) (49,947) (44,605) 3,443,949 (319,885) 3,476,646 55,375,976 58,819,925 58,500,040 $ 58,819,925 $ 58,500,040 $ 61,976,686 $ 39,589397 $ 51,731,299 $ 48,348,979 59.77% 53.07% 56.18% $ 7,848,795 $ 8,049,995 $ 8,276,985 504.40% 642.60% 584.10% 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. 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.) -88- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS FIREFIGHTERS' PENSION FUND Last Three Fiscal Years MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 TOTAL PENSION LIABILITY Service cost Investment income Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of member contributions Net change in total pension liability Total pension liability - beginning TOTAL PENSION LIABILITY - ENDING PLAN FIDUCIARY NET POSITION Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of member contributions Administrative expense Net change in plan fiduciary net position Plan fiduciary net position - beginning PLAN FIDUCIARY NET POSITION - ENDING EMPLOYER'S NET PENSION LIABILITY Plan fiduciary net position as a percentage of the total pension liability Covered -employee payroll Employer's net pension liability as a percentage of covered -employee payroll Notes to Required Supplementary Information $ 1,673,836 $ 1,515,101 $ 1,429,810 5,780,241 6,270,507 7,296,444 225,575 1,603,162 (1,491,027) 3,234,155 7,648,623 396,832 (4,158,988) (4,594,876) (4,981,207) 6,754,819 12,442,517 2,650,852 79,149,378 85,904,197 98,346,714 $ 85,904,197 $ 98,346,714 $ 100,997,566 $ 2,466,165 $ 2,532,317 $ 2,806,983 644,384 606,932 668,070 3,963,252 1,806,126 3,049,538 (4,158,988) (4,594,876) (4,981,207) (62,889) (62,136) (55,257) 2,851,924 288,363 1,488,127 53,716,415 56,568,339 56,856,702 $ 56,568,339 $ 56,856,702 $ 58,344,829 $ 29,335,858 $ 41,490,012 $ 42,652,737 65.85% 57.81% 57.77% $ 6,495,510 $ 6,441,588 $ 6,981,704 451.60% 644.10% 61090% 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. 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.) -89- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND Last Three Fiscal Years FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 Annual money -weighted rate of return, net of investment expense 6.92% 0.92% 7.15% 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 INVESTMENT RETURNS FIREFIGHTERS' PENSION FUND Last Three Fiscal Years FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 Annual money -weighted rate of return, net of investment expense 7.60% 3.38% 5.58% 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 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2016 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 generally accepted accounting principles. Annual appropriated budgets are adopted for the General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Pension Trust Funds. All annual appropriations lapse at fiscal year end. The proposed budget is presented to the governing body for review. The governing body holds public hearings and may add to, subtract from, or change appropriations, but may not change the form of the budget. The Village Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the governing body. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, budget amendments were approved by the Village Board of Trustees. The budget figures included in this report reflect all budget amendments made during the year. b. Excess of Actual Expenditures over Budget in Individual Funds The following individual funds exceeded the budgets/appropriations in the following amounts: Final Actual Budget/ Fund Expenditures Appropriation Debt Service Fund Prospect/Main TIF Fund -92- $ 5,261,032 $ 5,084,687 290,694 289,792 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. DEBT SERVICE FUND Debt Service Fund - to accumulate monies for payment of principal and interest on general obligation bonds, IEPA loans, and installment notes. VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2016 (This schedule is continued on the following pages.) -93- Budget Original Final Actual TAXES Property taxes - general $ 10,092,000 $ 10,092,000 $ 10,096,693 Property taxes - police pension 3,147,000 3,147,000 3,154,601 Property taxes - firefighters' pension 2,530,000 2,530,000 2,539,235 Road and bridge property taxes 115,000 115,000 126,951 Auto rental tax 20,000 20,000 20,204 Food and beverage tax 720,000 720,000 805,172 Real estate transfer tax 925,000 1,050,000 1,049,770 Hotel/motel tax 288,000 288,000 272,626 Telecommunications tax 2,200,000 2,075,000 2,020,525 Home rule sales tax 1,405,000 1,405,000 1,337,845 Gas utility tax 590,000 590,000 451,363 Electric utility tax 1,192,000 1,192,000 1,157,637 Total taxes 23,224,000 23,224,000 23,032,622 LICENSES, PERMITS, AND FEES Liquor licenses 165,000 165,000 181,825 Business licenses 140,000 140,000 144,825 Contractor licenses 55,000 55,000 53,815 Alarm licenses 42,000 42,000 39,421 Elevator licenses 28,000 28,000 29,250 Building permit fees 500,000 620,000 616,831 Electrical permit fees 6,000 6,000 8,900 Permit penalties 1,000 1,000 - Plumbing permit fees - - 255 Reinspection fees 50,000 50,000 50,834 Vacant structure registration fees 2,000 2,000 11,500 Truck rental fees 1,000 1,000 465 Utility permit fees 4,000 4,000 5,050 Plan examination fees 7,000 7,000 7,215 Stormwater detention 10,000 10,000 18,450 Street opening fees 2,000 2,000 900 ZBA hearing fees 15,000 15,000 9,400 Public improvement inspections 1,000 1,000 41,508 Village impact fees - - 8,100 False alarm fees 8,000 8,000 14,050 Landlord/tenant fees 315,000 315,000 293,830 Cable TV franchise 801,000 801,000 814,363 Total licenses, pennits, and fees 2,153,000 2,273,000 2,350,787 INTERGOVERNMENTAL State sales tax 14,375,000 15,625,000 15,864,573 State income tax 5,350,000 5,350,000 5,272,834 State use tax 1,010,000 1,160,000 1,286,185 Charitable games tax 4,000 4,000 4,101 Incremental taxes 100,200 100,200 107,919 (This schedule is continued on the following pages.) -93- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2016 Total intergovernmental CHARGES FOR SERVICES Water and sewer service charge Maintenance of state highways Ambulance transport fees Forest River Rural FPD Cable programming fees Other programs Special detail revenue Police training revenue Fire training revenue Lease payments - cell tower General store lease Total charges for services FINES AND FORFEITS Fines - parking Fines - local ordinances Fines - code enforcement Fines - circuit court Fines - parental responsibility Forfeited escrow funds Total fines and forfeits INVESTMENT INCOME Investment income Interest - escrow funds Total investment income 21,892,020 23,292,020 23,585,057 250,000 Budget 250,000 102,000 102,000 Original Final Actual INTERGOVERNMENTAL (Continued) 53,000 53,000 55,625 Replacement taxes $ 385,000 $ 385,000 $ 378,709 Replacement taxes - road and bridge 8,000 8,000 7,630 Grant - tobacco enforcement 3,300 3,300 3,300 Grant - body armor 9,720 9,720 9,000 Grant - NACCHO 5,000 5,000 3,946 Grant- SAFER 641,800 641,800 646,160 Grant - other grants - - 700 Total intergovernmental CHARGES FOR SERVICES Water and sewer service charge Maintenance of state highways Ambulance transport fees Forest River Rural FPD Cable programming fees Other programs Special detail revenue Police training revenue Fire training revenue Lease payments - cell tower General store lease Total charges for services FINES AND FORFEITS Fines - parking Fines - local ordinances Fines - code enforcement Fines - circuit court Fines - parental responsibility Forfeited escrow funds Total fines and forfeits INVESTMENT INCOME Investment income Interest - escrow funds Total investment income 21,892,020 23,292,020 23,585,057 250,000 250,000 250,000 102,000 102,000 148,272 980,000 980,000 1,053,949 53,000 53,000 55,625 26,600 26,600 25,757 42,500 42,500 31,574 42,000 42,000 37,746 5,000 5,000 3,113 17,000 17,000 24,619 137,000 137,000 136,013 16,200 16,200 16,201 1,671,300 1,671,300 1,782,869 250,000 250,000 241,279 5,000 5,000 5,323 20,000 20,000 29,650 144,000 144,000 108,973 3,000 3,000 900 20,000 20,000 28,760 442,000 442,000 414,885 3,100 3,100 46,462 1,000 1,000 2,740 100 4.100 49.202 MISCELLANEOUS Reimburse- high school youth officer 90,000 90,000 92,755 Reimburse - Library 20,000 20,000 27,969 Shared cost - sidewalk 15,000 15,000 14,076 Shared cost - tree replacement 20,000 20,000 23,288 Reimburse - village property 10,000 10,000 28,599 (This schedule is continued on the following page.) -94- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2016 (See independent auditor's report.) -95- Budget Original Final Actual MISCELLANEOUS (Continued) Other reimbursements $ 10,000 $ 10,000 $ 33,968 Human services revenue 19,200 19,200 18,195 Fire and police reports 6,000 6,000 6,245 Animal release fees 500 500 275 Subpoena fees 500 500 812 Other revenue 80,600 80,600 89,920 Total miscellaneous 271,800 271,800 336,102 TOTAL REVENUES $ 49,658,220 $ 51,178,220 $51,551,524 (See independent auditor's report.) -95- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERALFUND For the Year Ended December 31, 2016 GENERAL GOVERNMENT Public representation - administration Village administration Finance department Community development - administration Benefit payments Total general government PUBLIC SAFETY Community development - code enforcement Police department Fire department Total public safety HIGHWAYS AND STREETS Public works department Total highways and streets HEALTH Community development - health WELFARE Human services department Community development - housing Total welfare CULTURE AND RECREATION Public representation - community and civic services TOTAL EXPENDITURES Budget Original Final Actual $ 142,950 $ 137,184 $ 141,249 3,745,375 4,320,097 4,031,450 2,035,030 2,035,030 1,972,523 900,189 810,159 734,282 46,616 46,616 46,615 6,870,160 7,349,086 6,926,119 906,018 906,018 877,060 17,497,344 17,540,844 17,067,110 14,373,987 14,598,987 14,473,302 32,777,349 33,045,849 32,417,472 7,728,237 7,858,003 7,282,165 7,728,237 7,858,003 7,282,165 161,466 251,496 160,555 1,107,503 1,117,503 1,110,590 457,081 457,081 451,382 1,564,584 1,574,584 1,561,972 556,424 556,424 499,208 $ 49,658,220 $ 50,635,442 $ 48,847,491 (See independent auditor's report.) -96- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL GENERALFUND For the Year Ended December 31, 2016 GENERAL GOVERNMENT Public representation - administration Mayor and Board of Trustees Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total public representation - administration Budget Original Final Actual $ 42,980 $ 42,980 $ 41,196 12,011 12,011 10,560 4,000 4,000 2,488 80,658 74,892 82,867 440 440 311 2,861 2,861 3,827 142,950 137,184 141,249 Village administration Village Manager's office Personal services 435,215 495,215 494,086 Employee benefits 185,476 185,476 246,343 Other employee costs 8,335 8,335 15,788 Contractual services 115,777 155,777 119,100 Utilities 2,999 2,999 3,194 Commodities and supplies 5,304 5,954 6,152 Office and other equipment 200 200 200 Total Village Manager's office 753,306 853,956 884,863 Legal services Contractual services 555,820 858,820 851,288 Human resources Personal services 193,281 193,281 198,382 Employee benefits 130,712 130,712 97,220 Other employee costs 21,017 30,017 34,000 Contractual services 3,880 3,880 5,984 Commodities and supplies 713 713 804 Total human resources 349,603 358,603 336,390 Information technology Personal services 401,079 441,079 440,776 Employee benefits 153,032 153,032 170,582 Other employee costs 13,592 13,592 16,037 Contractual services 746,220 805,720 679,536 Utilities 5,410 5,410 5,118 Commodities and supplies 4,501 4,501 3,305 Office and other equipment 5,672 5,672 5,591 Total information technology 1,329,506 1,429,006 1,320,945 (This schedule is continued on the following pages.) -97- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND GENERAL GOVERNMENT (Continued) Village administration (Continued) Communication division Communications Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total communications Television services Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Office and other equipment For the Year Ended December 31, 2016 Budget Original Final Actual $ 60,589 $ 63,024 $ 76,188 32,203 45,650 51,126 6,763 2,296 1,783 145,088 86,762 32,476 902 - 240 1,355 5,837 - 246,900 197,732 161,813 97,630 34,606 37,624 45,650 - - 2,296 - - 30,739 29,896 27,896 1,645 1,645 1,139 5,837 5,837 3,930 11,300 11,300 6,500 Total television services 195,097 83,284 77,089 Community engagement Personal services 60,589 63,046 Employee benefits 32,203 32,794 Other employee costs 6,763 1,811 Contractual services 70,169 39,590 Utilities 902 588 Commodities and supplies 1,355 47 Total communication engagement Total communication division Village Clerk's office Administration and support Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Office equipment Total Village Clerk's office Computer hardware/software Office and other equipment Total computer hardware/software Total Village administration 171,981 137,876 441,997 452,997 376,778 132,818 132,818 133,886 72,665 72,665 75,050 974 974 1,510 29,857 29,857 19,218 823 823 570 1,061 1,061 615 - - 1,137 238,198 238,198 231,986 76,945 128,517 29,200 76,945 128,517 29,200 3,745,375 4,320,097 4,031,450 (This schedule is continued on the following pages.) -98- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND GENERAL GOVERNMENT (Continued) Finance department Administration and support Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Office and other equipment Total administration and support Accounting For the Year Ended December 31, 2016 Budget Original Final Actual $ 144,167 $ 144,167 $ 149,461 43,402 43,402 39,949 19,238 19,238 16,321 232,578 232,578 250,690 5,434 5,434 3,775 23,599 23,599 23,485 22,421 22,421 22,421 490,839 490,839 506,102 Personal services 353,444 353,444 328,355 Employee benefits 160,919 160,919 129,897 Other employee costs 1,500 1,500 955 Contractual services 4,305 4,305 2,087 Commodities and supplies 24,764 24,764 3,799 Total accounting Insurance Personal services Employee benefits Insurance Total insurance Customer service Personal services Employee benefits Contractual services Commodities and supplies Total customer service Total finance department Community development - administration Administration and support Personal services Employee benefits Other employee costs Utilities Commodities and supplies Total administration and support 544,932 544,932 465,093 36,135 36,135 37,626 11,143 11,143 10,996 403,228 403,228 402,912 450,506 450,506 451,534 334,405 334,405 353,255 130,891 130,891 130,551 69,556 69,556 57,196 13,901 13,901 8,792 548,753 548,753 549,794 2,035,030 2,035,030 1,972,523 284,757 228,372 230,004 153,936 120,291 118,235 3,978 3,978 4,977 2,190 2,190 570 1,061 1,061 - 445,922 355,892 353,786 (This schedule is continued on the following pages.) -99- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2016 (This schedule is continued on the following pages.) -100- Budget Original Final Actual GENERAL GOVERNMENT (Continued) Community development - administration (Continued) Planning and zoning Personal services $ 197,718 $ 197,718 $ 168,841 Employee benefits 88,948 88,948 71,540 Other employee costs 7,411 7,411 6,569 Contractual services 24,080 24,080 17,636 Utilities 1,273 1,273 854 Commodities and supplies 3,555 3,555 3,309 Total planning and zoning 322,985 322,985 268,749 Economic development Personal services 58,028 58,028 46,929 Employee benefits 15,563 15,563 12,830 Other employee costs 1,591 1,591 1,790 Contractual services 56,100 56,100 50,198 Total economic development 131,282 131,282 111,747 Total community development - administration 900,189 810,159 734,282 Benefit payments Contractual services 46,616 46,616 46,615 Total benefit payments 46,616 46,616 46,615 Total general government 6,870,160 7,349,086 6,926,119 PUBLIC SAFETY Community development - code enforcement Building inspections Personal services 322,190 322,190 323,433 Employee benefits 173,457 173,457 170,968 Other employee costs 7,753 7,753 5,424 Contractual services 384,613 384,613 361,917 Utilities 9,667 9,667 7,236 Commodities and supplies 8,338 8,338 8,082 Total community development - code enforcement 906,018 906,018 877,060 Police department Administration and support Personal services 769,572 769,572 771,081 Employee benefits 3,697,140 3,697,140 3,772,305 Other employee costs 167,197 177,197 141,096 Contractual services 97,081 108,081 76,554 Utilities 29,279 29,279 24,933 Commodities and supplies 21,424 21,424 21,139 Office and other equipment 18,000 40,500 21,428 Total administration and support 4,799,693 4,843,193 4,828,536 (This schedule is continued on the following pages.) -100- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2016 Total police department 17,497,344 17,540,844 17,067,110 (This schedule is continued on the following pages.) -101- Budget Original Final Actual PUBLIC SAFETY (Continued) Police department (Continued) Records Personal services $ 333,507 $ 333,507 $ 314,528 Employee benefits 137,850 137,850 132,511 Total records 471,357 471,357 447,039 Patrol and traffic enforcement Personal services 7,156,846 7,156,846 7,115,637 Employee benefits 1,445,608 1,445,608 1,387,428 Contractual services 579,283 579,283 576,790 Commodities and supplies 89,585 89,585 70,611 Office and other equipment 7,195 7,195 5,534 Total patrol and traffic enforcement 9,278,517 9,278,517 9,156,000 Crime prevention and public services Personal services 127,230 127,230 128,027 Employee benefits 38,786 38,786 40,985 Other employee costs 2,500 2,500 2,500 Contractual services 4,183 4,183 456 Commodities and supplies 9,650 9,650 10,367 Total crime prevention and public services 182,349 182,349 182,335 Investigative Personal services 1,536,038 1,536,038 1,366,899 Employee benefits 294,500 294,500 210,749 Contractual services 40,146 40,146 27,924 Utilities 13,385 13,385 10,259 Commodities and supplies 4,165 4,165 2,299 Office and other equipment 800 800 392 Total investigative 1,889,034 1,889,034 1,618,522 Equipment maintenance Contractual services 843,494 837,994 813,228 Commodities and supplies 16,100 16,100 9,957 Office and other equipment 8,700 14,200 11,493 Total equipment maintenance 868,294 868,294 834,678 Computer software/hardware Office and other equipment 8,100 8,100 - Total police department 17,497,344 17,540,844 17,067,110 (This schedule is continued on the following pages.) -101- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND PUBLIC SAFETY (Continued) Fire department Administration and support Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Office and other equipment Total administration and support Fire department operations Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Other expenditures Office and other equipment For the Year Ended December 31, 2016 Budget Original Final Actual $ 619,875 $ 619,875 $ 617,501 3,084,637 3,084,637 3,216,649 80,000 81,000 53,306 56,220 54,785 63,200 9,375 9,725 11,125 1,350 1,350 1,094 3,851,457 3,851,372 3,962,875 7,143,739 7,368,739 7,321,310 1,276,223 1,276,223 1,285,124 89,500 89,125 75,389 146,250 145,565 147,904 15,240 14,740 14,296 178,000 178,000 - 106,680 109,805 95,123 Total fire department operations 8,955,632 9,182,197 8,939,146 Fire prevention Personal services 379,709 379,709 387,542 Employee benefits 174,433 174,433 180,940 Other employee costs 5,750 5,750 5,358 Contractual services 10,500 10,057 10,056 Commodities and supplies 8,700 7,663 7,187 Total fire prevention 579,092 577,612 591,083 Communications Contractual services 3,650 4,650 3,314 Utilities 33,690 33,690 60,211 Commodities and supplies 1,500 1,850 1,826 Office and other equipment 8,480 7,130 6,943 Total communications 47,320 47,320 72,294 Equipment maintenance Contractual services 877,564 877,564 877,564 Total equipment maintenance 877,564 877,564 877,564 Emergency preparedness Employee benefits - - 199 Other employee costs 1,300 1,300 1,267 Contractual services 4,000 4,000 3,605 Commodities and supplies 6,350 6,350 3,942 Total emergency preparedness 11,650 11,650 9,013 (This schedule is continued on the following pages.) - 102- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2016 Total administration Maintenance - public buildings 159,333 159,333 119,180 Personal services Budget 445,161 465,680 Employee benefits Original Final Actual Contractual services 368,637 PUBLIC SAFETY (Continued) 295,408 Utilities 53,265 Fire department (Continued) 24,979 Commodities and supplies 120,931 Paid on call 114,547 Other expenditures 4,080 Personal services $ 23,678 $ 23,678 $ 13,082 Employee benefits 1,324 1,324 1,001 Other employee costs 11,110 11,110 5,600 Office and other equipment 1,660 1,660 1,644 Total paid on call 37,772 37,772 21,327 Computer hardware Capital expenditure 13,500 13,500 - Total fire department 14,373,987 14,598,987 14,473,302 Total public safety 32,777,349 33,045,849 32,417,472 HIGHWAYS AND STREETS Public works department Administration and support Personal services 310,043 310,043 279,726 Employee benefits 220,070 220,070 227,179 Other employee costs 26,863 29,763 32,244 Contractual services 1,061,168 1,066,934 1,060,960 Utilities 14,353 14,353 10,596 Commodities and supplies 15,406 15,406 16,344 Office and other equipment 1,543 1,543 1,090 Total administration and support 1,649,446 1,658,112 1,628,139 Street and buildings division Administration Personal services 106,859 106,859 76,276 Employee benefits 48,914 48,914 39,655 Utilities 3,290 3,290 3,249 Commodities and supplies 270 270 - Total administration Maintenance - public buildings 159,333 159,333 119,180 Personal services 445,161 445,161 465,680 Employee benefits 181,993 181,993 182,653 Contractual services 368,637 368,637 295,408 Utilities 53,265 53,265 24,979 Commodities and supplies 120,931 120,931 114,547 Other expenditures 4,080 4,080 - Total maintenance - public buildings 1,174,067 1,174,067 1,083,267 (This schedule is continued on the following pages.) -103- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND HIGHWAYS AND STREETS (Continued) Public works department (Continued) Street and buildings division (Continued) Street maintenance Personal services Employee benefits Contractual services Commodities and supplies Total street maintenance Snow removal Personal services Employee benefits Contractual services Commodities and supplies Office and other equipment Total snow removal For the Year Ended December 31, 2016 Budget Original Final Actual $ 127,724 $ 127,724 $ 126,831 55,433 55,433 49,014 64,604 64,604 42,078 27,555 27,555 24,035 275,316 275,316 241,958 320,269 320,269 330,522 127,469 127,469 126,583 122,420 119,520 53,727 13,683 13,683 10,827 15,606 15,606 15,605 599,447 596,547 537,264 Storm sewer/basin maintenance 30,684 32,877 13,370 Personal services 67,899 67,899 71,730 Employee benefits 24,113 24,113 23,124 Contractual services 12,386 12,386 7,186 Commodities and supplies 7,675 7,675 2,351 Total storm sewer/basin maintenance Maintenance of state highways Personal services Employee benefits Contractual services Commodities and supplies Total maintenance of state highways Traffic sign maintenance Personal services Employee benefits Commodities and supplies Total traffic sign maintenance Total street and buildings division Forestry division Administration and support Personal services Employee benefits Commodities and supplies Total administration and support 112,073 112,073 104,391 30,684 30,684 32,877 13,370 13,370 13,102 18,828 18,828 13,944 30,439 30,439 25,878 93,321 93,321 85,801 81,138 81,138 89,055 29,454 29,454 31,122 24,509 24,509 24,445 135,101 135,101 144,622 2,548,658 2,545,758 2,316,483 101,404 101,404 96,692 36,580 36,580 34,337 450 450 - 138,434 138,434 131,029 (This schedule is continued on the following pages.) -104- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND HIGHWAYS AND STREETS (Continued) Public works department (Continued) Forestry division (Continued) Maintenance of grounds Personal services Employee benefits Contractual services Commodities and supplies Office and other equipment Total maintenance of grounds Forestry program Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies For the Year Ended December 31, 2016 Budget Original Final Actual $ 253,856 $ 253,856 $ 252,779 92,015 92,015 92,236 135,001 135,001 106,618 9,185 9,185 8,986 47,223 47,223 41,559 537,280 537,280 502,178 336,222 336,222 345,489 142,379 142,379 146,382 6,212 6,212 6,209 446,489 446,489 373,287 3,290 3,290 3,560 11,356 11,356 10,456 Total forestry program 945,948 945,948 885,383 Public grounds beautification 229,796 3,770 3,770 Personal services 28,112 28,112 28,649 Employee benefits 9,650 9,650 9,657 Contractual services 2,547 2,547 1,233 Commodities and supplies 34,161 34,161 21,355 Total public grounds beautification Total forestry division Engineering division Engineering services Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Office and other equipment Total engineering services Traffic control and street lighting Personal services Employee benefits Contractual services Utilities Commodities and supplies Total traffic control and street lighting Total engineering division 74,470 74,470 60,894 1,696,132 1,696,132 1,579,484 637,361 637,361 634,329 221,477 221,477 229,796 3,770 3,770 3,767 58,947 62,947 77,232 5,098 5,098 4,674 5,656 5,656 5,585 2,315 2,315 1,998 934,624 938,624 957,381 126,410 126,410 125,018 51,378 51,378 51,313 10,506 10,506 9,299 78,529 78,529 55,789 26,465 26,465 25,934 293,288 293,288 267,353 1,227,912 1,231,912 1,224,734 (This schedule is continued on the following pages.) - 105- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND HIGHWAYS AND STREETS (Continued) Capital expenditures Infrastructure Resurfacing/curbs Miscellaneous - forestry Total capital expenditures Total highways and streets HEALTH Community development - health Health inspections Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total health For the Year Ended December 31, 2016 Budget Original Final Actual $ 228,400 $ 348,400 $ 263,545 377,689 377,689 269,780 606,089 726,089 533,325 7,728,237 7,858,003 7,282,165 98,980 155,365 97,547 47,748 81,393 52,903 1,395 1,395 795 9,095 9,095 7,281 1,897 1,897 456 2,351 2,351 1,573 161,466 251,496 160,555 WELFARE Human services department Administration and support Personal services 138,221 138,221 141,513 Employee benefits 91,524 91,524 89,960 Other employee costs 1,424 1,424 1,067 Contractual services 15,620 15,620 9,841 Utilities 6,971 6,971 3,984 Commodities and supplies 8,227 8,227 5,888 Office and other equipment 504 504 386 Total administration and support 262,491 262,491 252,639 Social services Personal services 224,134 224,134 220,234 Employee benefits 87,971 87,971 85,813 Other employee costs 2,494 2,494 1,968 Commodities and supplies 510 510 53 Total social services 315,109 315,109 308,068 Nursing/health services Personal services 106,082 106,082 106,715 Employee benefits 50,132 50,132 51,148 Other employee costs 803 803 200 Contractual services 403 403 - Commodities and supplies 3,925 3,925 2,092 Total nursing/health services 161,345 161,345 160,155 (This schedule is continued on the following pages.) - 106- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2016 WELFARE (Continued) Human services department (Continued) Community Connections Center Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total Community Connections Center Total human services department Community development - housing Housing inspections Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total community development - housing Total welfare CULTURE AND RECREATION Community groups and miscellaneous Contractual services Other expenditures Total community groups and miscellaneous Public relations - community and civic services 4th of July and civic events Personal services Employee benefits Contractual services Commodities and supplies Total 4th of July and civic events Centennial commission Contractual services Commodities and supplies Total centennial commission Budget Original Final Actual $ 196,649 $ 196,649 $ 204,819 66,531 66,531 88,948 1,320 1,320 569 96,763 107,038 91,531 4,953 4,953 2,618 2.342 2.067 1.243 58 378,558 389,728 1,107,503 1,117,503 1,110,590 262,918 262,918 272,959 114,211 114,211 120,227 5,191 5,191 3,842 64,742 64,742 49,545 5,194 5,194 456 4,825 4,825 4,353 457,081 457,081 451,382 1,564,584 1,574,584 1,561,972 132,226 132,226 126,320 7,283 7,283 4,263 139,509 139,509 130,583 128,841 128,841 142,917 47,494 47,494 41,892 58,190 53,290 36,508 39,761 44,661 38,193 274,286 274,286 259,510 29,384 29,384 27,884 25,000 25,000 12,293 54,384 54,384 40,177 (This schedule is continued on the following page.) - 107- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2016 Budget Original Final Actual CULTURE AND RECREATION (Continued) Public relations - community and civic services (Continued) Holiday decorations Personal services $ 9,537 $ 9,537 $ 8,507 Employee benefits 2,615 2,615 2,500 Contractual services 49,761 49,761 40,465 Commodities and supplies 22,816 22,816 14,530 Total holiday decorations 84,729 84,729 66,002 Blood drive program Personal services 1,844 1,844 1,843 Employee benefits 142 142 141 Commodities and supplies 1,530 1,530 952 Total blood drive program 3,516 3,516 2,936 Total culture and recreation 556,424 556,424 499,208 TOTAL EXPENDITURES $ 49,658,220 $ 50,635,442 $ 48,847,491 (See independent auditor's report.) - 108- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL REFUSE DISPOSAL FUND SPECIAL REVENUE FUND For the Year Ended December 31, 2016 CHARGES FOR SERVICES Single-family service charges Multi -family service charges Single-family penalties Multi -family penalties Contract administrative fees Refuse stickers Recycling bins Total charges for services INVESTMENT INCOME MISCELLANEOUS TOTAL OPERATING REVENUES Budget Original Final Actual $ 3,196,000 $ 3,196,000 $ 3,200,181 984,000 984,000 941,320 28,000 28,000 32,627 6,000 6,000 4,167 174,000 174,000 191,511 200,000 200,000 194,275 500 500 825 4,588,500 4,588,500 4,564,906 500 500 2,315 11,000 11,000 30,216 $ 4,600,000 $ 4,600,000 $ 4,597,437 (See independent auditor's report.) - 109- 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, 2016 REVENUES Taxes Property - levy Other taxes Home rule sales tax Investment income Intergovernmental revenue Total revenues EXPENDITURES Debt service Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Bonds issued Premium on bonds issued Payment to escrow agent Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual S 2,272,000 $ 2,272,000 $ 2,272,000 1,000,368 1,000,368 1,000,368 100 100 2,480 1,714,543 1,714,543 1,715,633 4,987,011 4,987,011 4,990,481 3,243,840 3,248,840 3,243,840 1,734,347 1,835,847 2,017,192 4,978,187 5,084,687 5,261,032 8,824 (97,676) (270,551) - 8,735,000 17,835,000 - 405,000 1,022,839 - (9,045,000) (18,573,342) - 95,000 284,497 $ 8,824 $ (2,676) 13,946 (See independent auditor's report.) - 110 - 154,206 $ 168,152 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. Prospect/Main TIF District 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 and investment Income. NONMAJOR GOVERNMENTAL FUNDS (Continued) NONMAJOR CAPITAL PROJECTS FUNDS Capital Improvement Fund - to account for the resources to provide for certain capital improvements and the replacement of village equipment. Financing is being provided by home rule sales tax, developer contributions, transfers from other funds, and investment income. Downtown Redevelopment Construction Fund - to account for the resources to acquire property and construct certain improvements in the Downtown Redevelopment Tax Incremental Financing District No. 1. Financing is being provided by incremental property taxes and investment income. 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, 2016 Special Capital Revenue Projects Total ASSETS Cash and investments $ 4,399,893 S 2,794,596 $ 7,194,489 Receivables Other taxes 219,938 852,195 1,072,133 Other 76,805 2,998 79,803 Due from other governments 628,374 - 628,374 Prepaid items 3,934 - 3,934 TOTAL ASSETS $ 5,328,944 $ 3,649,789 $ 8,978,733 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 1,611,915 $ 210,973 $ 1,822,888 Accrued payroll 1,359 - 1,359 Retainage payable 775 214,370 215,145 Due from other funds 735,763 - 735,763 Unearned revenue 545,426 - 545,426 Total liabilities 2,895,238 425,343 3,320,581 FUND BALANCES Nonspendable Prepaid items 3,934 - 3,934 Restricted Highways and streets 2,465,482 - 2,465,482 Public safety - police 314,541 - 314,541 Public safety - fire 338,465 - 338,465 Assigned Capital projects - 3,224,446 3,224,446 Unassigned (deficit) (688,716) - (688,716) Total fund balances 2,433,706 3,224,446 5,658,152 TOTAL LIABILITIES AND FUND BALANCES $ 5,328,944 $ 3,649,789 $ 8,978,733 (See independent auditor's report.) - 111 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2016 Special Capital Revenue Projects Total REVENUES Current Property taxes $ - $ 2,274,278 $ 2,274,278 Other taxes 1,642,952 3,891,040 5,533,992 Licenses, permits and fees - 1,650,671 1,650,671 Intergovernmental 1,861,023 272,838 2,133,861 Investment income 8,431 14,166 22,597 Other reimbursements - 35,000 35,000 Miscellaneous 90,410 93,088 183,498 Total revenues 3,602,816 8,231,081 11,833,897 EXPENDITURES Current General government 2,509,482 - 2,509,482 Public safety 95,140 - 95,140 Highways and streets 866,531 - 866,531 Welfare 432,946 - 432,946 Capital outlay - 10,718,553 10,718,553 Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 3,904,099 10,718,553 14,622,652 (301,283) (2,487,472) (2,788,755) 664,544 973,382 1,637,926 (397,301) - (397,301) 267,243 973,382 1,240,625 (34,040) (1,514,090) (1,548,130) 2,467,746 4,738,536 7,206,282 FUND BALANCES, DECEMBER 31 $ 2,433,706 $ 3,224,446 $ 5,658,152 (See independent auditor's report.) - 112- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2016 ASSETS Cash and investments Receivables Other taxes Other Due from other governments Prepaid items TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accrued payroll Retainage payable Due to other funds Unearned revenue Total liabilities FUND BALANCES Nonspendable Prepaid items Restricted Highways and streets Public safety - police Public safety - fire Unassigned (deficit) Total fund balances (deficit) TOTAL LIABILITIES AND FUND BALANCES Motor Fuel Tax Community Development Block Grant Asset Seizure Federal Equitable Share $ 2,364,388 $ - $ 168,408 $ 20,013 128,499 - - - 1,170 - - - 4,923 618,780 4,671 - - 721 - - $ 2,498,980 $ 619,501 $ 173,079 $ 20,013 $ 33,498 $ 24,173- - 1,359 - - - 775 - - - 47,768 - - - 545,426 - - 33,498 619,501 - - 721 - - 2,465,482 - - - - - 173,079 20,013 - (721) - - 2,465,482 - 173,079 20,013 $ 2,498,980 $ 619,501 $ 173,079 $ 20,013 DUI Fines $ 117,758 $ 3,691 Foreign Fire Business Prospect/Main Insurance District TIF Total 328,143 $ 1,401,183 $ - $ 4,399,893 - 91,439 - 219,938 10,322 61,622 - 76,805 - - - 628,374 31213 - - 3,934 $ 121,449 $ 341,678 $ 1,554,244 $ - $ 5,328,944 1,554,244 $ - $ 1,611,915 - - 1,359 775 687,995 735,763 - - 545,426 1,554,244 687,995 2,895,238 31213 - - 3,934 - - - - 2,465,482 121,449 - - - 314,541 - 338,465 - - 338,465 - - - (687,995) (688,716) 121,449 341,678 - (687,995) 2,433,706 $ 121,449 $ 341,678 $ 1,554,244 $ - $ 5,328,944 (See independent auditor's report.) - 114 - 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, 2016 Community Federal Motor Development Asset Equitable Fuel Tax Block Grant Seizure Share REVENUES Taxes $ - $ - $ - $ - Intergovernmental 1,379,126 362,551 85,136 - Investment income 5,196 - 220 62 Miscellaneous 20,015 70,395 - - Total revenues 1,404,337 432,946 85,356 62 EXPENDITURES Current General government - - - - Public safety - - 4,932 - Highways and streets 866,531 - - - Welfare - 432,946 - - Total expenditures 866,531 432,946 4,932 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 537,806 - 80,424 62 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers (out) - - - - Total other financing sources (uses) - - - - NET CHANGE IN FUND BALANCES 537,806 - 80,424 62 FUND BALANCES, JANUARY 1 1,927,676 - 92,655 19,951 FUND BALANCES (DEFICIT), DECEMBER 31 $ 2,465,482 $ - $ 173,079 $ 20,013 - 115- Foreign DUI Fire Business Prospect/Main Fines Insurance District TIF Total $ - $ 90,673 $ 1,552,279 $ - $ 1,642,952 34,210 - - - 1,861,023 175 813 1,965 - 8,431 - - - - 90,410 34,385 91,486 1,554,244 - 3,602,816 - - 2,218,788 290,694 2,509,482 37,671 52,537 - - 95,140 - - - - 866,531 - - - - 432,946 37,671 52,537 2,218,788 290,694 3,904,099 (3,286) 38,949 (664,544) (290,694) (301,283) - - 664,544 - 664,544 - - - (397,301) (397,301) - - 664,544 (397,301) 267,243 (3,286) 38,949 - (687,995) (34,040) 124,735 302,729 - - 2,467,746 S 121,449 $ 341,678 $ - $ (687,995) $ 2,433,706 (See independent auditor's report.) - 116- 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, 2016 REVENUES Intergovernmental Motor fuel tax allotments Investment income Miscellaneous Total revenues EXPENDITURES Highways and streets Street division Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 1,225,000 $ 1,225,000 $ 1,379,126 500 500 5,196 12,000 12,000 20,015 1,237,500 1,237,500 1,404,337 2,111,834 2,209,091 866,531 2,111,834 2,209,091 866,531 $ (874,334) $ (971,591) 537,806 (See independent auditor's report.) - 117- 1,927,676 $ 2,465,482 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, 2016 HIGHWAYS AND STREETS Public works department Street division Street maintenance Contractual services Total street maintenance Snow removal Contractual services Commodities and supplies Total snow removal Traffic control/street lighting Contractual services Utilities Total traffic control/street lighting Street improvement projects Building improvements Infrastructure Total street improvement projects TOTAL EXPENDITURES Budget Original Final Actual $ 120,163 $ 120,163 $ 120,073 120,163 120,163 120,073 78,030 78,030 77,830 462,273 462,273 358,112 540,303 540,303 435,942 92,187 92,187 65,923 159,181 159,181 159,181 251,368 251,368 225,104 600,000 600,000 - 600,000 697,257 85,412 1,200,000 1,297,257 85,412 $ 2,111,834 $ 2,209,091 $ 866,531 (See independent auditor's report.) - 118- 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, 2016 REVENUES Intergovernmental Grant - CDBG Miscellaneous Program income Total revenues EXPENDITURES Welfare Administration Community programs Residential rehabilitation Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget OriLyinal Final Actual $ 527,104 $ 375,766 $ 362,551 60,000 60,000 70,395 587,104 435,766 432,946 48,276 48,276 62,593 55,000 45,439 45,437 483,828 342,051 324,916 587,104 435,766 432,946 (See independent auditor's report.) - 119- 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, 2016 WELFARE Administration and support Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total administration and support Community programs Contractual services Total commmunity programs Residential rehabilitation Personal services Employee benefits Contractual services Total residential rehabilitation TOTAL EXPENDITURES Budget Original Final Actual $ 26,680 $ 26,680 $ 34,644 14,265 14,265 23,526 1,060 1,060 201 5,741 5,741 4,222 530 530 - 48,276 48,276 62,593 55,000 45,439 45,437 55,000 45,439 45,437 23,345 23,345 15,572 12,483 12,483 3,041 448,000 306,223 306,303 483,828 342,051 324,916 $ 587,104 $ 435,766 $ 432,946 (See independent auditor's report.) - 120- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ASSET SEIZURE FUND IM3010 W10161 1W U We NO a A WA "Lima KIWI 03.1 For the Year Ended December 31, 2016 REVENUES Intergovernmental Seized assets Investment income Total revenues EXPENDITURES Public safety Other employee costs Contractual services Equipment Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 15,000 $ 80,000 $ 85,136 100 100 220 15,100 80,100 85,356 1,000 1,000 - 3,000 3,000 2,000 3,000 3,000 2,932 7,000 7,000 4,932 $ 8,100 $ 73,100 80,424 (See independent auditor's report.) - 121 - 92,655 $ 173,079 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, 2016 REVENUES Intergovernmental Federal equitable shared funds Investment income Total revenues EXPENDITURES Public safety Contractual services Equipment Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 100 $ 100 $ - 100 100 62 200 200 62 1,000 1,000 - 1,000 1,000 - 2,000 2,000 - $ (1,800) $ (1,800) 62 (See independent auditor's report.) -122- 19,951 $ 20,013 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, 2016 REVENUES Intergovernmental DUI fines Investment income Total revenues EXPENDITURES Public safety Patrol and traffic enforcement Other employee costs Contractual services Equipment Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY I FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 20,000 $ 30,000 $ 34,210 100 100 175 20,100 30,100 34,385 1,000 - 1,000 11,000 15,000 16,000 10,343 11,255 16,073 2,000 42,000 37,671 $ 18,100 $ (11,900) (3,286) 124,735 (See independent auditor's report.) - 123 - $ 121,449 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, 2016 REVENUES Other taxes Foreign fire insurance tax Investment income Total revenues EXPENDITURES Public safety Insurance Contractual services Commodities and supplies Equipment Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 70,000 $ 80,000 $ 90,673 100 100 813 70,100 80,100 91,486 500 500 - 15,000 25,000 22,444 5,000 5,000 832 30,000 30,000 29,261 50,500 60,500 52,537 $ 19,600 $ 19,600 38,949 (See independent auditor's report.) -124- 302,729 $ 341,678 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, 2016 REVENUES Other taxes Food and beverage tax Hotel/motel tax Movie theatre tax Business district tax State sales tax Investment income Total revenues EXPENDITURES General government Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 367,000 $ 367,000 $ 392,217 250,000 250,000 228,688 112,000 112,000 110,034 368,000 368,000 341,340 - 480,000 480,000 100 100 1,965 1,097,100 1,577,100 1,554,244 1,097,100 2,242,100 2,218,788 1,097,100 2,242,100 2,218,788 - (665,000) (664,544) - 665,000 664,544 (See independent auditor's report.) - 125- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES 1N FUND BALANCE - BUDGET AND ACTUAL PROSPECT/MAIN TIF FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2016 REVENUES None Total revenues EXPENDITURES General government Contractual services Other expenditures Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE (DEFICIT), DECEMBER 31 Budget Original Final Actual - 284,572 284,572 - 5,220 6,122 - 289.792 290.694 - (289,792) (290,694) - - (397,301) $ - S (289,792) (687,995) (See independent auditor's report.) - 126- $ (687,995) ASSETS Cash and investments Receivables Other taxes Other TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Retainage payable Total liabilities FUND BALANCES Unrestricted Assigned Capital projects Total fund balances TOTAL LIABILITIES AND FUND BALANCES VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS December 31, 2016 Downtown Flood Street Capital Redevelopment Control Improvement Drovement Construction Construction Construction Total $ 906,154 $ - $ 1,674,141 $ 214,301 $ 2,794,596 394,238 - 394,606 63,351 852,195 - - 2,998 - 2,998 $ 1,300,392 $ - $ 2,071,745 $ 277,652 $ 3,649,789 $ 161,328 $ - $ 26,349 $ 23,296 $ 210,973 188,106 - 26,264 - 214,370 349,434 - 52,613 23,296 425,343 950,958 - 2,019,132 254,356 3,224,446 950,958 - 2,019,132 254,356 3,224,446 $ 1,300,392 $ - $ 2,071,745 $ 277,652 $ 3,649,789 (See independent auditor's report.) - 127- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES REVENUES Taxes Property Other Licenses, permits, and fees Intergovernmental Investment income Other reimbursements Miscellaneous Total revenues EXPENDITURES Capital outlay Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in NET CHANGE IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2016 Downtown Flood Street Capital Redevelopment Control Improvement Improvement Construction Construction Construction Total $ - $ 2,274,278 $ - $ - $ 2,274,278 1,405,000 - 405,000 2,081,040 3,891,040 - - - 1,650,671 1,650,671 - 272,838 - - 272,838 5,148 1,353 6,563 1,102 14,166 - - 35,000 - 35,000 13,275 39,775 40,038 93,088 1,423,423 2,548,469 486,338 3,772,851 8,231,081 2,737,164 3,074,522 1,110,761 3,796,106 10,718,553 2,737,164 3,074,522 1,110,761 3,796,106 10,718,553 (1,313,741) (526,053) (624,423) (23,255) (2,487,472) 973,382 973,382 (1,313,741) 447,329 (624,423) (23,255) (1,514,090) FUND BALANCES (DEFICIT), JANUARY 1 2,264,699 (447,329) 2,643,555 277,611 4,738,536 FUND BALANCES, DECEMBER 31 $ 950,958 $ - $ 2,019,132 $ 254,356 $ 3,224,446 (See independent auditor's report.) - 128- 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, 2016 Budget Original Final Actual REVENUES Other taxes Home rule sales tax $ 1,405,000 $ 1,405,000 $ 1,405,000 Investment income 500 500 5,148 Miscellaneous Donations 10,000 10,000 13,275 Total revenues 1,415,500 1,415,500 1,423,423 EXPENDITURES Capital outlay Equipment 196,000 525,672 349,017 Building improvements 1,590,000 1,733,126 1,615,320 Infrastructure 770,000 1,243,122 748,832 Contractual services 25,000 46,000 23,995 Total expenditures 2,581,000 3,547,920 2,737,164 NET CHANGE IN FUND BALANCE $ (1,165,500) $ (2,132,420) (1,313,741) FUND BALANCE, JANUARY 1 2,264,699 FUND BALANCE, DECEMBER 31 $ 950,958 (See independent auditor's report.) - 129- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL CAPITAL IMPROVEMENT FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2016 EXPENDITURES Equipment Computer software - Microsoft Office Suite Wireless connectivity - other public facilities Telephone system - village hall Security cameras Desktop virtualization Door access control system Board room cameras Financial software Fire hose and appliances Paramedic equipment Radio equipment - police/fire/public works Total equipment Building improvements Firing range Roof repair Salt storage building HVAC replacements Contractual services - brick sidewalks Emergency vehicle preemption sytstem Other public building improvements Total building improvements Infrastructure D/T Streetscape Program Residential street lights Jogging path Kensington road improvement Detention pond improvements Other infrastructure - parking Bike route sign project Total infrastructure Contractual services Needs studies - traffic study/improvements Needs studies - space needs study Total contractual services TOTAL EXPENDITURES Budget Original Final Actual $ 85,000 $ 85,000 $ 7,860 39,000 39,000 27,301 27,000 27,000 - - - 19,260 - 95,000 - - - 7,166 - 44,700 44,694 - - 12,168 25,000 25,000 21,539 20,000 20,000 19,967 - 189.972 189.062 196,000 525,672 349,017 - 78,126 78,126 1,075,000 1,140,000 469,087 100,000 100,000 738,296 50,000 50,000 - 75,000 75,000 69,215 135,000 135,000 108,118 155,000 155,000 152,478 1,590,000 1,733,126 1,615,320 - 88,213 - 60,000 60,000 57,541 512,000 788,823 583,485 68,000 88,086 - - 30,000 - - 58,000 2,000 130,000 130,000 105,806 770,000 1,243,122 748,832 25,000 25,000 - - 21.000 23.995 25,000 46,000 23,995 S 2,581,000 S 3,547,920 S 2,737,164 (See independent auditor's report.) - 130- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DOWNTOWN REDEVELOPMENT CONSTRUCTION FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2016 Budget Original Final Actual REVENUES Taxes Property taxes - other Tax increment $ 2,998,000 $ 2,738,000 $ 2,274,278 Intergovernmental - 260,000 272,838 Investment income 500 500 1,353 Total revenues 2,998,500 2,998,500 2,548,469 EXPENDITURES Capital outlay Public improvements Contractual services 79,078 89,286 77,199 Public improvements 3,297,789 3,297,789 2,989,441 Infrastructure 10,404 164,262 7,882 Total expenditures 3,387,271 3,551,337 3,074,522 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 (388,771) (552,837) (526,053) - - 973,382 - - 973,382 $ (388,771) $ (552,837) 447,329 (See independent auditor's report.) - 131 - (447,329) VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL DOWNTOWN REDEVELOPMENT CONSTRUCTION FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2016 CAPITAL OUTLAY Public improvements Contractual services Audit services Other professional services Demolition expense Streetscape corridor maintenance Total contractual services Public improvements Property tax expense Downtown pedestrian improvement Downtown wayfinding signage Return of increment Cook County Collection Facade program Total public improvements Infrastructure Downtown streetscape program Brick sidewalk Total infrastructure TOTAL EXPENDITURES Budget Original Final Actual $ 1,900 S 1,900 $ 1,900 10,000 15,428 12,161 - 4,780 904 67,178 67,178 62,234 79,078 89,286 77,199 8,000 8,000 7,864 265,000 265,000 17,784 165,000 165,000 170,817 2,759,789 2,759,789 2,759,289 100,000 100,000 33,687 3,297,789 3,297,789 2,989,441 - 153,858 1,702 10,404 10,404 6,180 10,404 164,262 7,882 $ 3,387,271 S 3,551,337 $ 3,074,522 (See independent auditor's report.) - 132- 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, 2016 REVENUES Taxes Other taxes Home rule sales tax Miscellaneous Fees Other reimbursements Investment income Total revenues EXPENDITURES Capital outlay Public improvements Infrastructure Other Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 405,000 $ 405,000 $ 405,000 40,000 40,000 39,775 - 35,000 35,000 2,000 2,000 6,563 447,000 482,000 486,338 832,100 1,759,725 1,106,555 7,446 7,446 4,206 839,546 1,767,171 1,110,761 $ (392,546) $ (1,285,171) (624,423) (See independent auditor's report.) - 133 - 2,643,555 $ 2,019,132 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, 2016 CAPITAL OUTLAY Public improvements Infrastructure Levee repairs Levee supplies Creek bank stabilization Creek tree trimming Private property drainage Prospect Meadows flood improvements Hydraulic analysis Storm sewer inspection program Emergency pumping - levee 37 Storm sewer improvements Isabella combined sewer improvements Total infrastructure Other Electricity Residential reimbursements Total other TOTAL EXPENDITURES Budget Original Final Actual $ 42,000 $ 42,000 $ 20,340 5,100 5,100 - 25,000 25,000 8,005 25,000 25,000 20,441 100,000 191,360 145,916 - 220,000 210,313 - 48,000 40,026 100,000 100,000 75,474 85,000 85,000 - 450,000 450,000 308,351 - 568,265 277,689 832,100 1,759,725 1,106,555 2,346 2,346 2,206 5,100 5,100 2,000 7,446 7,446 4,206 $ 839,546 $ 1,767,171 $ 1,110,761 (See independent auditor's report.) - 134- 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, 2016 REVENUES Other taxes Home rule sales tax Municipal motor fuel tax License fees Investment income Miscellaneous income Total revenues EXPENDITURES Capital outlay Contractual services Infrastructure Street resurfacing Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual S 1,405,000 S 1,405,000 S 1,405,000 675,000 675,000 676,040 1,670,000 1,670,000 1,650,671 1,500 1,500 1,102 10,000 45,000 40,038 3,761,500 3,796,500 3,772,851 37,000 37,000 26,430 3,594,000 3,867,000 3,769,676 3,631,000 3,904,000 3,796,106 S 130,500 S (107,500) (23,255) (See independent auditor's report.) - 135 - 277,611 $ 254,356 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, 2016 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Administration and maintenance Depreciation Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Budget Original Final Actual S 14,039,500 $ 13,119,500 $ 12,931,867 14,039,500 13,119,500 12,931,867 14,610,178 15,575,390 15,445,931 - - 604,661 14,610,178 15,575,390 16,050,592 (570,678) (2,455,890) (3,118,725) Property taxes 1,530,000 1,530,000 1,524,901 Loss on the sale of capital assets - - (4,032) Investment income 2,100 2,100 13,263 Other income 98,000 98,000 90,810 Total non-operating revenues (expenses) INCOME (LOSS) BEFORE CAPITAL GRANTS AND CONTRIBUTIONS CAPITAL GRANTS AND CONTRIBUTIONS CHANGE IN NET POSITION NET POSITION, JANUARY 1 Change in accounting principle NET POSITION, JANUARY 1, RESTATED NET POSITION, DECEMBER 31 1,630,100 1,630,100 1,624,942 1,059,422 (825,790) (1,493,783) - - 244,423 $ 1,059,422 $ (825,790) (1,249,360) (See independent auditor's report.) - 136- 41,273,710 586,300 41,860,010 S 40,610,650 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, 2016 CHARGES FOR SERVICES Water sales Sewer fees Sewer construction charge Water penalties Water meter fees Water and sewer taps Sewer penalties Miscellaneous TOTAL OPERATING REVENUES Budget Original Final Actual $ 11,050,000 $ 10,150,000 $ 10,135,751 2,137,000 2,117,000 1,933,012 684,000 684,000 682,905 100,000 100,000 75,011 20,000 20,000 20,220 20,000 20,000 35,900 28,000 28,000 20,657 500 500 28,411 $ 14,039,500 S 13,119,500 $ 12,931,867 (See independent auditor's report.) - 137- 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, 2016 ADMINISTRATION AND MAINTENANCE Administration and support Personal services Employee benefits Other employee costs Contractual services Utilities Insurance Commodities and supplies Capital expenditures Total administration and support Maintenance of buildings Personal services Employee benefits Contractual services Utilities Commodities and supplies Total maintenance of buildings Maintenance of grounds Personal services Employee benefits Contractual services Commodities and supplies Total maintenance of grounds Water supply maintenance and repair Personal services Employee benefits Contractual services Utilities Commodities and supplies Total water supply maintenance and repair Budget Original Final Actual $ 417,692 $ 417,692 $ 444,874 240,858 240,858 398,814 38,141 38,141 38,150 478,413 478,413 482,496 45,526 45,526 40,589 97,471 97,471 97,471 12,776 12,776 10,867 5,219 5,219 1,799 1,336,096 1,336,096 1,515,060 160,863 160,863 169,195 75,955 75,955 100,292 17,166 17,166 9,745 6,242 6,242 3,685 1,561 1,561 234 261,787 261,787 283,151 66,452 66,452 64,168 21,050 21,050 30,041 33,584 33,584 31,577 6,153 6,153 6,119 127,239 127,239 131,905 407,280 407,280 404,699 156,547 156,547 223,789 150,246 150,246 90,134 88,434 88,434 65,332 82,722 82,722 56,922 885,229 885,229 840,876 (This schedule is continued on the following pages.) - 138- 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, 2016 ADMINISTRATION AND MAINTENANCE (Continued) Water distribution maintenance and repair Personal services Employee benefits Contractual services Commodities and supplies Capital expenditures Total water distribution maintenance and repair Water valve and hydrant maintenance Personal services Employee benefits Contractual services Commodities and supplies Total water valve and hydrant maintenance Water meter installation, repair, and replacement Personal services Employee benefits Contractual services Commodities and supplies Capital expenditures Total water meter installation, repair, and replacement Equipment maintenance Contractual services Sanitary sewer maintenance and repair Personal services Employee benefits Contractual services Utilities Commodities and supplies Total sanitary sewer maintenance and repair Budget Original Final Actual $ 292,116 $ 292,116 $ 303,185 91,099 91,099 137,265 248,464 248,464 200,445 77,346 77,346 51,194 1,020 1,020 723 710,045 710,045 692,812 288,039 288,039 270,910 108,522 108,522 133,891 46,513 46,513 37,328 86,187 86,187 82,579 529,261 529,261 524,708 174,298 174,298 178,165 50,326 50,326 90,234 111,135 111,135 47,840 3,238 3,238 1,359 40,000 40,000 22,653 378,997 378,997 340,251 868,050 868,050 868,050 235,421 235,421 238,522 85,326 85,326 135,412 169,912 169,912 140,491 23,929 23,929 11,282 27,886 27,886 24,476 542,474 542,474 550,183 (This schedule is continued on the following page.) - 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, 2016 ADMINISTRATION AND MAINTENANCE (Continued) Water system improvements Capital expenditures Less capital expenditures capitalized Total water system improvements Sanitary system improvements Capital expenditures Less capital expenditures capitalized Total sanitary system improvements Improvements to public buildings Capital expenditures Total improvements to public buildings Lake Michigan water acquisition Contractual services Total Lake Michigan water acquisition Total administration and maintenance Depreciation TOTAL OPERATING EXPENSES Budget Original Final Actual $ 1,510,000 $ 2,855,212 $ 2,475,011 (350,000) (350,000) (425,773) 1,160,000 2,505,212 2,049,238 1,675,000 1,675,000 1,417,116 (875,000) (875,000) (204,207) 800,000 800,000 1,212,909 65,000 65,000 61,581 65,000 65,000 61,581 6,946,000 6,566,000 6,375,207 6,946,000 6,566,000 6,375,207 14,610,178 15,575,390 15,445,931 604,661 $ 14,610,178 $ 15,575,390 $ 16,050,592 (See independent auditor's report.) -140- 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 CURRENT ASSETS Cash and investments Total current assets CAPITAL ASSETS Capital assets not being depreciated Capital assets being depreciated, cost Accumulated depreciation Net capital assets Total assets CURRENT LIABILITIES Accounts payable Accrued payroll Unearned revenues Compensated absences payable Total current liabilities LONGTERM LIABILITIES Compensated absences payable Net other postemployment benefits obligation Total long-term liabilities Total liabilities NET POSITION Investment in capital assets Unrestricted TOTAL NET POSITION December 31, 2016 Parking Village System Parking Revenue Svstem Total $ 174,557 $ 253,703 $ 428,260 174,557 253,703 428,260 - 232,354 232,354 3641,800 - 364,800 (364,800) - (364,800) - 232,354 232.354 174,557 486,057 660,614 11,998 9,722 21,720 884 1,207 2,091 17,440 23,500 40,940 429 566 995 30,751 34,995 65,746 1,714 2,265 3,979 2,119 392 2,511 3,833 2,657 6,490 34,584 37,652 72,236 - 232,354 232,354 139,973 216,051 356,024 $ 139,973 $ 448,405 $ 588,378 (See independent auditor's report.) -141- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2016 OPERATING REVENUES Charges for services Parking fees Rental fees Miscellaneous Convenience fees Total operating revenues OPERATING EXPENSES Administration, maintenance, and improvements Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Investment income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Parking Village System Parking Revenue System Total $ 138,743 $ 162,888 $ 301,631 - 6,600 6,600 4,781 18,980 23,761 738 1,372 2,110 144,262 189,840 334,102 136,695 253,423 390,118 136,695 253,423 390,118 7,567 (63,583) (56,016) 313 843 1,156 313 843 1,156 7,880 (62,740) (54,860) 132,093 511,145 643,238 $ 139,973 $ 448,405 $ 588,378 (See independent auditor's report.) -142- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from miscellaneous revenues Payments to suppliers Payments to employees Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Home rule sales tax Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES None Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Investment income Net cash from investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 Parking Village System Parking Revenue Svstem Total $ 136,635 $ 155,033 $ 291,668 5,519 20,352 $ 25,871 (92,144) (194,550) (286,694) (39,777) (54,171) (93,948) 10,233 (73,336) (63,103) 1,595 - 1,595 1,595 - 1,595 313 843 1,156 313 843 1,156 12,141 (72,493) (60,352) 162,416 326,196 488,612 $ 174,557 $ 253,703 $ 428,260 (This statement is continued on the following page.) -143- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2016 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities Changes in assets and liabilities Accounts payable Accrued payroll and compensated absences Net other postemployment benefits obligation Unearned revenues NET CASH FROM OPERATING ACTIVITIES Parking Village System Parking Revenue Svstem Total $ 7,567 $ (63,583) $ (56,016) 2,803 3,469 6,272 811 1,022 1,833 1,160 211 1,371 (2,108) (14,455) (16,563) $ 10,233 $ (73,336) $ (63,103) (See independent auditor's report.) -144- 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, 2016 OPERATING REVENUES Charges for services Parking fees Miscellaneous Convenience fees Total operating revenues OPERATING EXPENSES Administration, maintenance, and improvements Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Investment income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY I NET POSITION, DECEMBER 31 Budget Original Final Actual $ 146,000 $ 146,000 $ 138,743 - - 4,781 - - 738 146,000 146,000 144,262 226,164 226,164 136,695 226,164 226,164 136,695 (80,164) (80,164) 7,567 - - 313 - - 313 $ (80,164) $ (80,164) 7,880 (See independent auditor's report.) - 145- $ 139,973 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, 2016 ADMINISTRATION, MAINTENANCE, AND IMPROVEMENTS Personal services Employee benefits Contractual services Utilities Insurance Commodities and supplies Capital expenditures TOTAL OPERATING EXPENSES Budget Original Final Actual $ 26,182 $ 26,182 $ 27,295 13,063 13,063 14,453 89,261 89,261 80,020 10,947 10,947 6,964 1,537 1,537 1,537 10,174 10,174 6,426 75,000 75,000 - $ 226,164 $ 226,164 $ 136,695 (See independent auditor's report.) -146- 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, 2016 OPERATING REVENUES Charges for services Parking fees Rental fees Miscellaneous Convenience fees Total operating revenues OPERATING EXPENSES Administration, maintenance, and improvements Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Investment income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual $ 162,000 $ 162,000 $ 162,888 6,600 6,600 6,600 - - 18,980 - - 1,372 168.600 168.600 189.840 257,796 361,296 253,423 257,796 361,296 253,423 (89,196) (192,696) (63,583) 100 100 843 100 100 843 $ (89,096) $ (192,596) (62,740) (See independent auditor's report.) -147- 511,145 $ 448,405 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, 2016 ADMINISTRATION, MAINTENANCE, AND IMPROVEMENTS Personal services Employee benefits Contractual services Insurance Commodities and supplies Capital expenditures TOTAL OPERATING EXPENSES Budget Original Final Actual $ 35,625 $ 35,625 $ 37,266 17,665 17,665 18,138 44,859 44,859 7,336 1,902 1,902 1,902 530 530 530 157,215 260,715 188,251 $ 257,796 S 361,296 $ 253,423 (See independent auditor's report.) - 148- 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, 2016 NONCURRENT ASSETS Deposits - insurance - 2,244,022 - - 2,244,022 CAPITAL ASSETS Computer Risk Vehicle Vehicle - 304,047 Capital assets being depreciated, cost 133,797 Replacement Management Replacement Maintenance Total CURRENT ASSETS - 4,874,814 7,966 4,944,470 1,020,210 Other payables - 13,179 Cash and investments $ 534,271 $ 2,493,289 $ 9,362,616 $ 787,208 $ 13,177,384 Receivables 5,080 1,091,147 78,926 125,026 1,300,179 Accrued interest - - 4,385 - 4,385 Other - - 100 2,751 2,851 Due from other governments - - 2,920 8,934 11,854 Prepaid items - 162,018 - 12 162,030 Inventories - - - 293,061 293,061 Total current assets 534,271 2,655,307 9,370,021 1,091,966 13,651,565 NONCURRENT ASSETS Deposits - insurance - 2,244,022 - - 2,244,022 CAPITAL ASSETS Compensated absences payable Capital assets not being depreciated - - 304,047 - 304,047 Capital assets being depreciated, cost 133,797 - 12,905,037 139,860 13,178,694 Accumulated depreciation (72,107) - (8,334,270) (131,894) (8,538,271) Net capital assets 61,690 - 4,874,814 7,966 4,944,470 Total assets 595,961 4,899,329 14,244,835 1,099,932 20,840,057 CURRENT LIABILITIES Compensated absences payable - - - 120,044 120,044 Accounts payable 5,080 57,758 78,926 69,854 211,618 Accrued payroll - - - 25,162 25,162 Claims payable - 1,020,210 - - 1,020,210 Other payables - 13,179 - - 13,179 Compensated absences payable - - - 30,010 30,010 Total current liabilities 5,080 1,091,147 78,926 125,026 1,300,179 LONGTERM LIABILITIES Compensated absences payable - - - 120,044 120,044 Claims payable - 202,310 - - 202,310 Net other postemployment benefits obligation - - - 43,462 43,462 Total long-term liabilities - 202,310 - 163,506 365,816 Total liabilities 5,080 1,293,457 78,926 288,532 1,665,995 NET POSITION Investment in capital assets 61,690 - 4,874,814 7,966 4,944,470 Unrestricted 529,191 3,605,872 9,291,095 803,434 14,229,592 TOTAL NET POSITION $ 590,881 $ 3,605,872 $ 14,165,909 $ 811,400 $ 19,174,062 (See independent auditor's report.) -149- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 OPERATING REVENUES Charges for services Contributions Miscellaneous Total operating revenues OPERATING EXPENSES Administration and maintenance Insurance and claims Depreciation Total operating expenses OPERATING INCOME NON-OPERATING REVENUES (EXPENSES) Investment income Gain on disposal of capital assets Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ 254,050 $ 6,892,660 $ 1,607,615 $ 2,044,049 $ 10,798,374 - 1,291,865 - - 1,291,865 - 16,462 - - 16,462 254,050 8,200,987 1,607,615 2,044,049 12,106,701 132,813 423,934 81,404 2,033,664 2,671,815 - 7,267,819 - - 7,267,819 10,380 - 630,545 3,187 644,112 GRANTS AND CONTRIBUTIONS 112,149 514,999 143,193 7,691,753 711,949 2,036,851 10,583,746 CAPITAL GRANTS AND CONTRIBUTIONS - 110,857 509,234 895,666 7,198 1,522,955 1,292 5,765 27,331 1,998 36,386 - - 49.007 - 49.007 Total non-operating revenues (expenses) 1,292 5,765 76,338 1,998 85,393 INCOME BEFORE CAPITAL GRANTS AND CONTRIBUTIONS 112,149 514,999 972,004 9,196 1,608,348 CAPITAL GRANTS AND CONTRIBUTIONS - - 28,183 - 28,183 CHANGES IN NET POSITION 112,149 514,999 1,000,187 9,196 1,636,531 NET POSITION, JANUARY 1 478,732 3,090,873 13,165,722 802,204 17,537,531 NET POSITION, DECEMBER 31 $ 590,881 $ 3,605,872 $ 14,165,909 $ 811,400 $ 19,174,062 (See independent auditor's report.) - 150- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from interfund services Miscellaneous receipts (payments) Payments to suppliers Payments to employees Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES None Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Investment income Net cash from investing activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, ,JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ - $ 2,188,652 $ - $ - $ 2,188,652 254,050 5,995,873 1,596,200 2,044,049 9,890,172 - 16,462 12,814 (1,219) 28,057 (129,265) (7,422,140) (4,718) (583,515) (8,139,638) - - - (1,403,742) (1,403,742) 124,785 778,847 1,604,296 55,573 2,563,501 (68,544) - (901,572) - (970,116) (68,544) - (901,572) - (970,116) 1,292 5,765 22,946 1,998 32,001 1,292 5,765 22,946 1,998 32,001 57,533 784,612 725,670 57,571 1,625,386 476,738 1,708,677 8,636,946 729,637 11,551,998 $ 534,271 $ 2,493,289 $ 9,362,616 $ 787,208 $ 13,177,384 (This statement is continued on the following page.) - 151 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation Changes in assets and liabilities Receivables Inventories Prepaid items Deposits - insurance Accounts and others payable Accrued payroll and compensated absences Net other postemployment benefits obligation Claims payable NET CASH FROM OPERATING ACTIVITIES Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ 110,857 $ 509,234 $ 895,666 $ 7,198 $ 1,522,955 10,380 - 630,545 3,187 644,112 - - 1,399 (1,219) 180 - - - (15,933) (15,933) - (22,835) - 331 (22,504) - (139,607) - - (139,607) 3,548 42,503 76,686 32,316 155,053 - - - 10,251 10,251 - - - 19,442 19,442 - 389,552 - - 389,552 $ 124,785 $ 778,847 $ 1,604,296 $ 55,573 $ 2,563,501 (See independent auditor's report.) - 152- 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, 2016 OPERATING REVENUES Charges for services Refuse Disposal Fund Water and Sewer Fund General Fund Total operating revenues OPERATING EXPENSES Administration Capital outlay Depreciation Total operating expenses OPERATING INCOME NON-OPERATING REVENUES (EXPENSES) Investment income CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual $ 746 $ 746 $ 746 17,936 17,936 17,936 235,368 235,368 235,368 254,050 254,050 254,050 196,256 196,256 132,813 - - 10,380 196,256 196,256 143,193 57,794 57,794 110,857 500 500 1,292 $ 58,294 $ 58,294 112,149 (See independent auditor's report.) - 153 - 478,732 $ 590,881 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMPUTER REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 ADMINISTRATION Capital outlay Less capital assets capitalized Total administration Depreciation TOTAL OPERATING EXPENSES Budget Original Final Actual $ 264,800 $ 264,800 S 201,357 (68,544) (68,544) (68,544) 196,256 196,256 132,813 - - 10,380 $ 196,256 $ 196,256 $ 143,193 (See independent auditor's report.) - 154- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL RISK MANAGEMENT FUND OPERATING REVENUES Charges for services Contributions Miscellaneous Total operating revenues OPERATING EXPENSES Administration Insurance and claims Total operating expenses INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 Budget Original Final Actual $ 7,041,034 $ 7,041,034 $ 6,892,660 1,340,000 1,340,000 1,291,865 1,500 1,500 16,462 8,382,534 8,382,534 8,200,987 400,480 400,480 423,934 7,661,234 7,661,234 7,267,819 8,061,714 8,061,714 7,691,753 320,820 320,820 509,234 NON-OPERATING REVENUES (EXPENSES) Investment income 2,000 2,000 5,765 CHANGE IN NET POSITION $ 322,820 $ 322,820 514,999 NET POSITION, JANUARY 1 3,090,873 NET POSITION, DECEMBER 31 (See independent auditor's report.) - 155- $ 3,605,872 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL RISK MANAGEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 OPERATING REVENUES Charges for services General Fund Refuse Disposal Fund Water and Sewer Fund Parking System Revenue Fund Village Parking Fund Vehicle Maintenance Fund Library Total charges for services Contributions Employee Health insurance Additional life insurance Retiree Health insurance Total contributions Miscellaneous Other reimbursements Miscellaneous income Total miscellaneous TOTAL OPERATING REVENUES Budget Original Final Actual $ 5,935,903 $ 5,935,903 $ 5,757,397 37,119 37,119 37,119 167,501 167,501 167,501 1,537 1,537 1,537 1,902 1,902 1,902 30,417 30,417 30,417 866,655 866,655 896,787 7,041,034 7,041,034 6,892,660 467,000 467,000 500,447 20,000 20,000 22,299 853,000 853,000 769,119 1,340,000 1,340,000 1,291,865 1,000 1,000 16,462 500 500 - 1,500 1,500 16,462 $ 8,382,534 $ 8,382,534 $ 8,200,987 (See independent auditor's report.) - 156- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL RISK MANAGEMENT FUND ADMINISTRATION Casualty and property program Claims administration Other contractual services Total casualty and property program Medical program Claims administration Workers' compensation Claims administration Capital outlay Other equipment Total administration INSURANCE AND CLAIMS Casualty and property program Property insurance HELP excess liability insurance Workers' compensation insurance Faithful performance insurance Surety bonds Other insurance Property claims Liability claims Workers' compensation claims Auto claims Village property claims Unemployment compensation claims Tree hazard study Other claims Total casualty and property program Medical program Medical expense - HMO plan Medical expense - indemnity plan Health and wellness supplies Life insurance Total medical program Total insurance and claims TOTAL OPERATING EXPENSES INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 Budget Original Final Actual $ 11,000 $ 11,000 S 11,931 22,000 22,000 12,001 33,000 33,000 23,932 303,480 303,480 310,763 64,000 64,000 88,939 300 400,480 400,480 423,934 114,000 114,000 113,579 120,000 120,000 122,368 99,000 99,000 102,013 4,000 4,000 2,933 500 500 510 4,000 4,000 2,611 1,000 1,000 - 100,000 100,000 57,755 700,000 700,000 583,195 15,000 15,000 114,444 10,000 10,000 - 10,000 10,000 15,606 10,000 10,000 7,724 10,000 10,000 7,448 1,197,500 1,197,500 1,130,186 1,613,507 1,613,507 1,432,709 4,809,684 4,809,684 4,646,768 - - 15,194 40,543 40,543 42,962 6,463,734 6,463,734 6,137,633 7,661,234 7,661,234 7,267,819 $ 8,061,714 $ 8,061,714 S 7,691,753 (See independent auditor's report.) - 157- 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, 2016 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Administration Depreciation Total operating expenses OPERATING INCOME NON-OPERATING REVENUES (EXPENSES) Investment income Gain on sale of capital assets Total non-operating revenues (expenses) INCOME BEFORE CAPITAL GRANTS AND CONTRIBUTIONS CAPITAL GRANTS AND CONTRIBUTIONS CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual $ 1,604,200 $ 1,604,200 $ 1,607,615 1,604,200 1,604,200 1,607,615 30,000 30,000 81,404 - - 630,545 30,000 30,000 711,949 1,574,200 1,574,200 895,666 4,000 4,000 27,331 - - 49,007 4,000 4,000 76,338 1,578,200 1,578,200 972,004 - - 28,183 $ 1,578,200 $ 1,578,200 1,000,187 (See independent auditor's report.) - 158- 13,165,722 $ 14,165,909 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 CHARGES FOR SERVICES General Fund Mayor and board Manager's office Television services division Community development - planning Community development - building Community development - housing Community development - health Police department Fire department Public works department Engineering division Human services Water and Sewer Fund Other fee TOTAL OPERATING REVENUE Budget Original Final Actual $ 2,700 $ - $ - 4,100 4,100 4,100 800 800 800 1,500 1,500 1,500 2,500 2,500 2,500 7,400 7,400 7,400 1,500 1,500 1,500 239,100 239,100 239,100 554,400 554,400 554,400 394,700 397,400 397,400 8,900 8,900 8,900 100 100 100 378,500 378,500 378,500 8,000 8,000 11,415 $ 1,604,200 $ 1,604,200 $ 1,607,615 (See independent auditor's report.) - 159- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 OPERATING EXPENSES Administration 431,588 Capital outlay - police vehicles Capital outlay - pool vehicles Capital outlay - fire Capital outlay - public works Less capital assets capitalized Total administration Depreciation TOTAL OPERATING EXPENSES Budget Original Final Actual $ 374,000 $ 461,668 $ 431,588 30,000 30,000 - 850,000 855,000 34,402 1,073,000 1,208,000 603,847 (2,297,000) (2,524,668) (988,433) 30,000 30,000 81,404 - - 630,545 $ 30,000 $ 30,000 $ 711,949 (See independent auditor's report.) - 160- 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, 2016 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Administration and maintenance Depreciation Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Investment income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual $ 2,044,049 $ 2,044,049 $ 2,044,049 2,044,049 2,044,049 2,044,049 2,134,037 2,174,393 2,033,664 - - 3,187 2,134,037 2,174,393 2,036,851 (89,988) (130,344) 7,198 600 600 1,998 600 600 1,998 $ (89,388) $ (129,744) 9,196 (See independent auditor's report.) - 161 - 802,204 $ 811,400 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 CHARGES FOR SERVICES General Fund Mayor and board Manager's office Television services division Community development - planning Community development - building Community development - housing Community development - health Police department Fire department Public works department Engineering division Human service charges Water and Sewer Fund TOTAL OPERATING REVENUES Budget Original Final Actual $ 3,066 $ - $ - 3,066 3,066 3,066 3,270 3,270 3,270 3,066 3,066 3,066 4,293 4,293 4,293 21,463 21,463 21,463 3,066 3,066 3,066 520,619 520,619 520,619 323,164 323,164 323,164 633,042 636,108 636,108 33,318 33,318 33,318 3,066 3,066 3,066 489,550 489,550 489,550 $ 2,044,049 $ 2,044,049 $ 2,044,049 (See independent auditor's report.) - 162- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 ADMINISTRATION AND MAINTENANCE Vehicle division administration Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Office equipment Total vehicle division administration Vehicle maintenance program Personal services Employee benefits Contractual services Commodities and supplies Other equipment Total vehicle maintenance program Total administration and maintenance Depreciation TOTAL OPERATING EXPENSES Budget Original Final Actual $ 112,878 $ 112,878 $ 113,594 73,874 73,874 104,076 2,456 2,456 1,720 10,579 50,935 47,155 3,195 3,195 4,194 1,969 1,969 981 578 578 175 205,529 245,885 271,895 858,873 858,873 875,785 317,883 317,883 339,980 94,005 94,005 90,794 654,033 654,033 454,052 3,714 3,714 1,158 1,928,508 1,928,508 1,761,769 2,134,037 2,174,393 2,033,664 - - 3,187 $ 2,134,037 $ 2,174,393 $ 2,036,851 (See independent auditor's report.) - 163 - FIDUCIARY FUNDS PENSION TRUST FUNDS Police Pension Fund - to account for the resources necessary to provide retirement and disability benefits to personnel of the Mount Prospect Police Department. Revenues are provided by the following: Village contributions (made possible by a property tax levy), employee withholdings, and investment income. Firefighters' Pension Fund - to account for the resources necessary to provide retirement and disability benefits to personnel of the Mount Prospect Fire Department. Revenues are provided by the following: Village contributions (made possible by a property tax levy), employee withholdings, and investment income. AGENCY FUNDS Escrow Deposit Fund - to account for refundable deposits held by the Village to ensure the completion of public improvements. The money is held by the Village until the improvements are completed. Flexcomp Escrow Fund - to account for employee payroll deductions pursuant to a Section 125 flexible compensation plan. The money is reimbursed to employees for qualified medical and dependent care expenses. VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF NET POSITION PENSION TRUST FUNDS December 31, 2016 ASSETS Cash and cash equivalents Investments State and local obligations U.S. Government and U.S. agency obligations Corporate bonds and obligations Real estate Mutual funds Total cash and investments Accrued interest receivable Due from other funds Prepaids Total assets LIABILITIES Accounts payable Total liabilities NET POSITION RESTRICTED FOR PENSIONS Police Firefighters' Pension Pension Total $ 678,397 $ 424,426 $ 1,102,823 2,158,254 10,540,288 10,299,758 38,123,159 846,282 11,188,457 7,808,706 2,950,073 34,945,675 3,004,536 21,728,745 18,108,464 2,950,073 73,068,834 61,799,856 58,163,619 119,963,475 146,527 112,191 258,718 58,891 81,382 140,273 1,912 1,670 3,582 62,007,186 58,358,862 120,366,048 30,500 14,033 44,533 30,500 14,033 44,533 $ 61,976,686 $ 58,344,829 $ 120,321,515 (See independent auditor's report.) -164- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2016 ADDITIONS Contributions Employer Plan members Total contributions Investment income Interest earned Net change in fair value Less investment expenses Net investment income Total additions DEDUCTIONS Administration Benefits and refunds Total deductions NET INCREASE NET POSITION RESTRICTED FOR PENSIONS January 1 December 31 Police Firefighters' Pension Pension Total $ 3,232,887 $ 2,806,983 $ 6,039,870 815,684 668,070 1,483,754 4,048,571 3,475,053 7,523,624 760,605 3,512,674 (111,621 595,719 2,539,257 (85,438 1,356,324 6,051,931 (197,059 4,161,658 3,049,538 7,211,196 8,210,229 6,524,591 14,734,820 44,605 55,257 99,862 4,688,978 4,981,207 9,670,185 4,733,583 5,036,464 9,770,047 3,476,646 1,488,127 4,964,773 58,500,040 56,856,702 115,356,742 $ 61,976,686 $ 58,344,829 $ 120,321,515 (See independent auditor's report.) - 165- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN NET POSITION - BUDGET AND ACTUAL POLICE PENSION FUND For the Year Ended December 31, 2016 Budget Original Final Actual ADDITIONS 4,111,500 4,111,500 4,161,658 Contributions 8,147,000 8,147,000 8,210,229 Employer $ 3,219,000 $ 3,219,000 $ 3,232,887 Plan members 816,000 816,000 815,684 Other 500 500 - Total contributions 4,035,500 4,035,500 4,048,571 Investment income Interest earned 800,500 800,500 760,605 Net change in fair value 3,430,000 3,430,000 3,512,674 Less investment expenses (119,000) (119,000) (111,621) Net investment income 4,111,500 4,111,500 4,161,658 Total additions 8,147,000 8,147,000 8,210,229 DEDUCTIONS Administration 71,200 71,200 44,605 Benefits and refunds 4,642,976 4,697,976 4,688,978 Total deductions 4,714,176 4,769,176 4,733,583 NET INCREASE $ 3,432,824 $ 3,377,824 3,476,646 NET POSITION RESTRICTED FOR PENSIONS January 1 58,500,040 December 31 $ 61,976,686 (See independent auditor's report.) - 166- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN NET POSITION - BUDGET AND ACTUAL FIREFIGHTERS' PENSION FUND For the Year Ended December 31, 2016 Budget Original Final Actual ADDITIONS Contributions Employer $ 2,737,340 $ 2,737,340 $ 2,806,983 Plan members 642,000 642,000 668,070 Other 500 500 - Total contributions Investment income Interest earned Net change in fair value Less investment expenses 3,379,840 3,379,840 3,475,053 690,500 690,500 595,719 3,545,000 3,545,000 2,539,257 (91,000) (91,000) (85,438) Net investment income 4,144,500 4,144,500 3,049,538 Total additions 7,524,340 7,524,340 6,524,591 DEDUCTIONS Administration 75,200 75,200 55,257 Benefits and refunds 4,734,831 4,999,831 4,981,207 Total deductions 4,810,031 5,075,031 5,036,464 NET INCREASE $ 2,714,309 $ 2,449,309 1,488,127 NET POSITION RESTRICTED FOR PENSIONS January 1 56,856,702 December 31 $ 58,344,829 (See independent auditor's report.) - 167- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS All Funds ASSETS For the Year Ended December 31, 2016 Balances Balances January 1 Additions Deductions December 31 Cash and investments $ 1,136,998 $ 2,099,292 $ 1,867,975 $ 1,368,315 Due from other funds - 864 864 - Deposits 5,090 2,050 - 7,140 Other receivables - 9,315 9,315 - TOTAL ASSETS $ 1,142,088 $ 2,111,521 $ 1,878,154 $ 1,375,455 LIABILITIES Deposits payable $ 1,136,112 $ 1,203,085 $ 963,742 $ 1,375,455 Due to other funds - 127,776 127,776 - Other liabilities 5,976 455,305 461,281 - TOTAL LIABILITIES $ 1,142,088 $ 1,786,166 $ 1,552,799 $ 1,375,455 1. Escrow Deposit Fund ASSETS Cash and investments $ 1,101,399 $ 1,844,763 $ 1,603,170 $ 1,342,992 Due from other funds - 864 864 - Other receivables - 9,315 9,315 - TOTAL ASSETS $ 1,101,399 $ 1,854,942 $ 1,613,349 $ 1,342,992 LIABILITIES Deposits payable $ 1,095,423 $ 947,731 $ 700,162 $ 1,342,992 Due to other funds - 124,535 124,535 - Other liabilities 5,976 455,305 461,281 - TOTAL LIABILITIES $ 1,101,399 $ 1,527,571 $ 1,285,978 $ 1,342,992 (This statement is continued on the following page.) - 168- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (Continued) AGENCY FUNDS For the Year Ended December 31, 2016 Balances Balances January 1 Additions Deductions December 31 2. Flexcomp Escrow Fund ASSETS Cash and investments $ 35,599 $ 254,529 $ 264,805 $ 25,323 Deposits 5,090 2,050 - 7,140 TOTAL ASSETS $ 40,689 $ 256,579 $ 264,805 $ 32,463 LIABILITIES Deposits payable $ 40,689 $ 255,354 $ 263,580 $ 32,463 Due to other funds - 3,241 3,241 - TOTAL LIABILITIES $ 40,689 $ 258,595 $ 266,821 $ 32,463 (See independent auditor's report.) - 169- 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 other postemployment benefits obligations. 171 u th 0 U U u U H O Cy Cd V1 V'1 V"1 U :4 E." 6S 69 oho -IQ v a� Q, Ol O� O 69 6S (f3 O O O o y 48. •~ M l M r M � O N OC OC 00 6S 69 64 O O O x 00 v O A V) 69 O O O C y O O O r+ M d R O O O O O O •~ oG o0 00 O N O 6S 69 69 Cl O O O O O O p 69 6S Hj O O O O O O O O N N N N O 64 A Goa 0 0 0 o 0 0 c 0 ' ' ' ' ' ' ' ' ' C "� p � vMi vMi vMi O N � N N N Q f V) 69 Cl 0 Cl 0 0 0 rq C`J O N •--� 6S 69 69 O O O O O O O r O O O r p 41 N � 6S 6S FA 171 u th 0 U U u U H O oho -IQ v a� 0 OW W o o 0 N n o y 48. ° z ° L)zzz 171 u th 0 U U u U H 10 V1 V) O Vl O M 00 01 01 r M gwca 00 0o O O N 01 V 01 r o c m m vi IVi r O oo N O CC O, I N 10 -- '�O V l -- 0S m lO m I >z p CD M M D 00 Cq40 v L � C O N O N C ' ' ' ' ' ' ' ' ' c iia y •� M M N a+ O 4 00 00 0 IIJ a M M M r O r O r . . . . . . . . o '� .p ❑ 0 0 0 C � � C p., .7 ss vj s4 r r r y, o N N zw CA ° N N Cs w zzz z a r r r O ♦+ V y •�' r 5 OC M 00 M 00 M OO 00 00 a 6S 69 En OC OC 00 d 1p 1p � 4) m eY eY O ¢ cu N CJ •p a M M M o 0 0 � g g g , d rqN N N p �z V1 V1 Vl H gwca o >z x z ° ° zzz z LONG-TERM DEBT REQUIREMENTS VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2009 December 31, 2016 Date of Issue March 11, 2009 Date of Maturity December 1, 2028 Authorized Issue $10,000,000 Denomination of Bonds $5,000 Interest Rates 3.005% to 4.500% Interest Dates June 1 and December 1 Principal Maturity Date December 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 2016 - $ - $ 24,000 $ 24,000 2017 $ 12,000 2017 $ 12,000 2017 - - 24,000 24,000 2018 12,000 2018 12,000 2018 - - 24,000 24,000 2019 12,000 2019 12,000 2019 - - 24,000 24,000 2020 12,000 2020 12,000 2020 - - 24,000 24,000 2021 12,000 2021 12,000 2021 - - 24,000 24,000 2022 12,000 2022 12,000 2022 - - 24,000 24,000 2023 12,000 2023 12,000 2023 41-559 600,000 24,000 624,000 2024 12,000 2024 12,000 $ 600,000 $ 192,000 $ 792,000 $ 96,000 $ 96,000 (See independent auditor's report.) -172- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2009B December 31, 2016 Date of Issue December 22, 2009 Date of Maturity December 1, 2021 Authorized Issue $3,430,000 Denomination of Bonds $5,000 Interest Rates 2.50% to 3.75% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2016 343-406 $ 320,000 $ 61,275 $ 381,275 2017 $ 30,637 2017 $ 30,638 2017 407-472 330,000 51,675 381,675 2018 25,837 2018 25,838 2018 473-540 340,000 40,125 380,125 2019 20,062 2019 20,063 2019 541-612 360,000 27,375 387,375 2020 13,687 2020 13,688 2020 613-686 370,000 13,875 383,875 2021 6,937 2021 6,938 $ 1,720,000 $ 194,325 $ 1,914,325 $ 97,160 $ 97,165 (See independent auditor's report.) - 173 - VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS TAXABLE GENERAL OBLIGATION BONDS OF 2009C December 31, 2016 Date of Issue December 22, 2009 Date of Maturity December 1, 2029 Authorized Issue $2,650,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 5.75% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2016 25-39 $ 75,000 $ 130,842 $ 205,842 2017 $ 65,421 2017 $ 65,421 2017 40-58 95,000 127,655 222,655 2018 63,828 2018 63,827 2018 59-82 120,000 123,380 243,380 2019 61,690 2019 61,690 2019 83-110 140,000 118,100 258,100 2020 59,050 2020 59,050 2020 111-142 160,000 111,520 271,520 2021 55,760 2021 55,760 2021 143-242 500,000 104,000 604,000 2022 52,000 2022 52,000 2022 243-330 440,000 79,500 519,500 2023 39,750 2023 39,750 2023 - - 57,500 57,500 2024 28,750 2024 28,750 2024 - - 57,500 57,500 2025 28,750 2025 28,750 2025 - - 57,500 57,500 2026 28,750 2026 28,750 2026 - - 57,500 57,500 2027 28,750 2027 28,750 2027 - - 57,500 57,500 2028 28,750 2028 28,750 2028 331-530 1,000,000 57,500 1,057,500 2029 28,750 2029 28,750 $ 2,530,000 $ 1,139,997 $ 3,669,997 $ 569,999 $ 569,998 (See independent auditor's report.) -174- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2011B December 31, 2016 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 2016 437-579 $ 715,000 $ 75,096 $ 790,096 2017 $ 37,548 2017 $ 37,548 2017 580-726 735,000 57,078 792,078 2018 28,539 2018 28,539 2018 727-877 755,000 38,556 793,556 2019 19,278 2019 19,278 2019 878-1032 775,000 19,530 794,530 2020 9,765 2020 9,765 $ 2,980,000 $ 190,260 $ 3,170,260 $ 95,130 $ 95,130 (See independent auditor's report.) -175- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2012 December 31, 2016 Date of Issue January 3, 2012 Date of Maturity December 1, 2022 Authorized Issue $2,975,000 Denomination of Bonds $5,000 Interest Rates 3.1% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at JP Morgan Chase CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2016 - $ - $ 54,096 $ 54,096 2017 $ 27,048 2017 $ 27,048 2017 - - 54,096 54,096 2018 27,048 2018 27,048 2018 - - 54,096 54,096 2019 27,048 2019 27,048 2019 - - 54,096 54,096 2020 27,048 2020 27,048 2020 247-418 860,000 54,096 914,096 2021 27,048 2021 27,048 2021 419-595 885,000 27,436 912,436 2022 13,718 2022 13,718 $ 1,745,000 $ 297,916 $ 2,042,916 $ 148,958 $ 148,958 (See independent auditor's report.) -176- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2013 December 31, 2016 Date of Issue September 10, 2013 Date of Maturity December 1, 2033 Authorized Issue $9,800,000 Denomination of Bonds $5,000 Interest Rates 3.000% to 4.125% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2016 - $ - $ 369,956 $ 369,956 2017 $ 184,978 2017 $ 184,978 2017 - - 369,956 369,956 2018 184,978 2018 184,978 2018 - - 369,956 369,956 2019 184,978 2019 184,978 2019 1-111 555,000 369,956 924,956 2020 184,978 2020 184,978 2020 112-225 570,000 353,306 923,306 2021 176,653 2021 176,653 2021 226-342 585,000 336,206 921,206 2022 168,103 2022 168,103 2022 343-463 605,000 318,656 923,656 2023 159,328 2023 159,328 2023 464-588 625,000 300,506 925,506 2024 150,253 2024 150,253 2024 589-718 650,000 275,506 925,506 2025 137,753 2025 137,753 2025 719-853 675,000 249,506 924,506 2026 124,753 2026 124,753 2026 854-993 700,000 222,506 922,506 2027 111,253 2027 111,253 2027 994-1139 730,000 194,506 924,506 2028 97,253 2028 97,253 2028 1140-1291 760,000 165,307 925,307 2029 82,653 2029 82,654 2029 1292-1449 790,000 134,907 924,907 2030 67,453 2030 67,454 2030 1450-1613 820,000 103,307 923,307 2031 51,653 2031 51,654 2031 1614-1783 850,000 70,507 920,507 2032 35,253 2032 35,254 2032 1784-1960 885,000 36,507 921,507 2033 18,253 2033 18,254 $ 9,800,000 $ 4,241,057 $ 14,041,057 $ 2,120,526 $ 2,120,531 (See independent auditor's report.) - 177- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2014 December 31, 2016 Date of Issue February 4, 2014 Date of Maturity December 1, 2023 Authorized Issue $6,290,000 Denomination of Bonds $5,000 Interest Rate 3% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2016 182-242 $ 305,000 $ 161,550 $ 466,550 2017 $ 80,775 2017 $ 80,775 2017 243-323 405,000 152,400 557,400 2018 76,200 2018 76,200 2018 324-435 560,000 140,250 700,250 2019 70,125 2019 70,125 2019 436-587 760,000 123,450 883,450 2020 61,725 2020 61,725 2020 588-780 965,000 100,650 1,065,650 2021 50,325 2021 50,325 2021 781-1005 1,125,000 71,700 1,196,700 2022 35,850 2022 35,850 2022 1006-1258 1,265,000 37,950 1,302,950 2023 18,975 2023 18,975 $ 5,385,000 $ 787,950 $ 6,172,950 $ 393,975 $ 393,975 (See independent auditor's report.) - 178- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2016 December 31, 2016 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 1 and December 1 Principal Maturity Date December 1 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 2016 0025-0295 $ 1,375,000 $ 203,650 $ 1,578,650 2017 $ 101,825 2017 $ 101,825 2017 0296-0573 1,400,000 176,150 1,576,150 2018 88,075 2018 88,075 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 $ 8,735,000 $ 725,650 $ 9,460,650 $ 362,825 $ 362,825 (See independent auditor's report.) -179- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2016A December 31, 2016 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 1 and December 1 Principal Maturity Date December 1 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 2016 0001-0024 $ 120,000 $ 273,000 $ 393,000 2017 $ 136,500 2017 $ 136,500 2017 0025-0048 120,000 269,400 389,400 2018 134,700 2018 134,700 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 $ 9,100,000 $ 2,676,300 $ 11,776,300 $ 1,338,150 $ 1,338,150 (See independent auditor's report.) - 180- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS IEPA FLOOD LOAN (L17-0855) CONTRACT PAYABLE OF 1997 Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at December 31, 2016 November 1, 1997 November 1, 2017 $1,203,550 2.89% May 1 and November 1 May 1 and November 1 Illinois Environmental Protection Agency CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Payment Requirements Year Numbers Principal Interest Total 2017 39-40 $ 79,035 $ 1,717 $ 80,752 $ 79,035 $ 1,717 $ 80,752 (See independent auditor's report.) - 181 - VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS IEPA FLOOD LOAN (L17-1087) CONTRACT PAYABLE OF 1999 Date of Issue Date of Maturity Authorized Issue Interest Rates Interest Dates Principal Maturity Date Payable at December 31, 2016 December 1, 1999 June 3, 2019 $1,760,422 2.625% June 3 and December 3 June 3 Illinois Environmental Protection Agency CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Payment Requirements Year Numbers Principal Interest Total 2017 35-36 $ 109,868 $ 6,638 $ 116,506 2018 37-38 112,771 3,735 116,506 2019 39 57,501 754 58,255 $ 280,140 $ 11,127 $ 291,267 (See independent auditor's report.) - 182- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS INSTALLMENT NOTE PAYABLE OF 2012 December 31, 2016 Date of Issue December 31, 2012 Date of Maturity December 1, 2019 Authorized Issue $2,500,000 Denomination of Bonds $5,000 Interest Rates 0.91% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Mount Prospect State Bank CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Payment Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2017 9-10 $ 420,000 $ 13,878 $ 433,878 2017 $ 6,939 2017 $ 6,939 2018 11-12 515,000 10,056 525,056 2018 5,028 2018 5,028 2019 13-14 590,000 5,369 595,369 2019 2,684 2019 2,685 $ 1,525,000 $ 29,303 $ 1,554,303 $ 14,651 $ 14,652 (See independent auditor's report.) - 183 - ADDITIONAL SUPPLEMENTAL DATA r r r r m r r r 0 0 O o o 0 0 0 0 0 0 N N z z z z z N N N N N N N N � � ° ° M � M U y s t U z zz S.' y O ° ° U w O sy, o Nry" c y P, ED y O cz tU bA y y u yi' •B u y u v .y�. y CIO �, Chi a a a a O O Oz ID cyn pr b w w w C7 bb w a.+ a uuu w w Q w w w U w H y o y u y y y O O O y y O O O o y O o O O o 0 oO o 0 0 o O 0 0 0 0 0 0 0 O O O 0 0 0 0 0 0 0 Z o z z z z z oO O z z o00 o z 0 0 In o 0 0 0 o N o kf) M d 59 a z z z z z o 0 0 0 0 0 0 0 o z _ V] In In M 59 N V1 N N N N N N O O 0 5R M s t U z zz S.' O O sy, Nry" ED y O tU bA yi' •B v .y�. y CIO �, Chi O O Oz cyn pr PO w C7 w a.+ a i= rw w w Q w w w U w H 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 fbr the relevant year. VILLAGE OF MOUNT PROSPECT, ILLINOIS NET POSITION BY COMPONENT Fiscal Year GOVERNMENTAL ACTIVITIES Net investment in capital assets Restricted Unrestricted TOTAL GOVERNMENTAL ACTIVITIES BUSINESS -TYPE ACTIVITIES Net investment in capital assets Unrestricted TOTAL BUSINESS -TYPE ACTIVITIES PRIMARY GOVERNMENT Last Ten Fiscal Years 2007 2008 2009 2010 $ 26,114,472 $ 29,663,909 $ 27,741,453 $ 30,020,260 3,178,963 2,367,670 4,497,173 4,891,298 23,151,760 21,216,625 20,277,880 18,296,001 $ 52,445,195 $ 53,248,204 $ 52,516,506 $ 53,207,559 $ 19,437,672 $ 20,776,324 $ 22,412,134 $ 23,044,064 6,833,310 6,852,644 5,996,007 5,927,430 4,497,173 4,891,298 Unrestricted 29,985,070 $ 26,270,982 $ 27,628,968 $ 28,408,141 $ 28,971,494 Net investment in capital assets $ 45,552,144 $ 50,440,233 $ 50,153,587 $ 53,064,324 Restricted 3,178,963 2,367,670 4,497,173 4,891,298 Unrestricted 29,985,070 28,069,269 26,273,887 24,223,431 TOTAL PRIMARY GOVERNMENT $ 78,716,177 $ 80,877,172 $ 80,924,647 $ 82,179,053 * 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. Audited Financial Statements -185- 2011 2012 2013 2014* 2015** 2016 $ 53,524,378 $ 48,521,357 $ 48,152,760 $ 46,326,047 $ 43,755,661 $ 43,024,875 2,828,903 3,547,328 3,045,922 4,186,505 5,319,794 4,557,424 20,019,184 24,952,139 24,153,907 (10,441,020) (99,563,419) (101,578,462) $ 76,372,465 $ 77,020,824 $ 75,352,589 $ 40,071,532 $ (50,487,964) $ (53,996,163) $ 26,892,474 $ 26,566,375 $ 26,352,289 $ 26,854,967 $ 36,336,899 $ 36,588,628 5,167,986 6,820,901 8,057,996 7,734,851 5,580,049 4,610,400 $ 32,060,460 $ 33,387,276 $ 34,410,285 $ 34,589,818 $ 41,916,948 $ 41,199,028 $ 80,416,852 $ 75,087,732 $ 74,505,049 $ 73,181,014 $ 80,092,560 $ 79,613,503 2,828,903 3,547,328 3,045,922 4,186,505 5,319,794 4,557,424 25,187,170 31,773,040 32,211,903 (2,706,169) (93,983,370) (96,968,062) $ 108,432,925 $ 110,408,100 $ 109,762,874 $ 74,661,350 $ (8,571,016) $ (12,797,135) iV VILLAGE OF MOUNT PROSPECT, ILLINOIS CHANGE IN NET POSITION Last Ten Fiscal Years Fiscal Year 2007 2008 2009 2010 EXPENSES Governmental Activities General government Public safety Highways and streets Health Welfare Culture and recreation Interest Total governmental activities expenses Business -Type Activities Water and sewer Commuter parking Total business -type activities expenses TOTAL PRIMARY GOVERNMENTAL EXPENSES PROGRAM REVENUES Governmental Activities Charges for services General government Public safety Highway and streets Other activities Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -Type Activities Charges for services Water and sewer Commuter parking Capital grants and contributions Total business -type activities program revenues TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES NET REVENUE (EXPENSE) Governmental activities Business -type activities TOTAL PRIMARY GOVERNMENT NET REVENUE (EXPENSE) $ 5,777,024 $ 6,682,541 $ 7,192,572 $ 6,541,405 24,565,640 26,646,855 27,172,360 27,303,165 11,512,271 13,540,232 12,101,419 12,924, 872 4,085,316 4,163,354 4,194,045 4,133,883 1,759,776 1,744,504 2,316,995 2,039,805 221,806 409,066 367,635 322,553 728,640 837,127 1,047,961 1,146,789 48,650,473 54,023,679 54,392,987 54,412,472 8,839,710 9,179,399 9,393,148 9,950,591 259.434 263.394 233.701 284.607 9,099,144 9,442,793 9,626,849 10,235,198 $ 57,749,617 $ 63,466,472 $ 64,019,836 $ 64,647,670 $ 5,057,855 $ 5,045,338 $ 6,705,200 $ 6,271,966 2,658,824 2,242,952 1,580,052 1,486,144 231,468 169,615 237,786 135,641 305,467 320,488 65,933 70,964 594,223 1,800,781 2,551,348 2,338,965 2,812,836 764,283 406,734 443,278 11,660,673 10,343,457 11,547,053 10,746,958 8,888,249 8,774,681 8,500,396 8,916,621 210,036 269,400 218,735 210,324 9,098,285 9,044,081 8,719,131 9,126,945 $ 20,758,958 $ 19,387,538 $ 20,266,184 $ 19,873,903 $ (36,989,800) $ (43,680,222) $ (42,845,934) $ (43,665,514) (859) (398,712) (907,718) (1,108,253) $ (36,990,659) $ (44,078,934) $ (43,753,652) $ (44,773,767) _189- 2011 2012 2013 2014 2015* 2016 $ 6,992,107 $ 6,233,324 $ 7,356,433 $ 10,171,883 $ 11,514,091 $ 9,949,082 27,276,948 28,134,173 29,771,502 30,812,251 38,535,612 38,328,609 18,141,803 15,853,017 18,570,593 19,923,120 26,650,772 19,990,440 4,289,103 4,407,533 4,459,897 4,591,946 4,538,800 4,620,982 1,902,841 1,909,062 1,868,952 1,844,911 1,813,254 2,109,733 353,308 406,606 443,171 425,217 453,534 515,555 1,329,499 1,033,923 1,016,337 2,899,466 2,064,448 1,926,793 60285,609 57,977,638 63,486,885 70,668,794 85,570,511 77,441,194 10,444,247 11,129,942 12,078,221 13,779,500 14,143,610 16,054,624 327.224 345.715 346.303 329.988 269.619 390.118 10,771,471 11,475,657 12,424,524 14,109,488 14,413,229 16,444,742 $ 71,057,080 $ 69,453,295 $ 75,911,409 $ 84,778,282 $ 99,983,740 $ 93,885,936 $ 6,343,828 $ 7,068,010 $ 6,908,188 $ 7,785,745 $ 4,458,450 $ 4,496,290 1,545,333 1,412,279 1,583,328 1,712,860 1,796,729 1,795,838 108,865 126,660 269,066 414,316 183,246 290,172 32,040 39,163 41,220 515,095 4,467,864 4,799,080 2,749,168 1,974,867 2,356,665 2,209,036 1,912,795 2,629,030 65.905 72.175 288.752 140.181 47.274 - 10,845,139 10,693,154 11,447,219 12,777,233 12,866,358 14,010,410 9,081,731 10,990,923 11,507,264 11,970,681 12,434,405 12,931,867 219,040 225,214 234,458 254,784 261,745 334,102 - - - 373.498 8.889.998 244.423 9,300,771 11,216,137 11,741,722 12,598,963 21,586,148 13,510,392 $ 20,145,910 $ 21,909,291 $ 23,188,941 $ 25,376,196 $ 34,452,506 $ 27,520,802 $ (49,440,470) $ (47,284,484) $ (52,039,666) $ (57,891,561) $ (72,704,153) $ (63,430,784) (1,470,700) (259,520) (682,802) (1,510,525) 7,172,919 (2,934,350) $ (50,911,170) $ (47,544,004) $ (52,722,468) $ (59,402,086) $ (65,531,234) $ (66,365,134) -190- VILLAGE OF MOUNT PROSPECT, ILLINOIS CHANGE IN NET POSITION (Continued) Fiscal Year GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities Taxes Property Utility Business district Home rule sales Telecommunications Other Intergovernmental State sales and use Income taxes Replacement taxes Property tax TIF rebate Charitable games tax Investment income Miscellaneous Transfers Contributions Total governmental activities Business -Type Activities Last Ten Fiscal Years 2007 2008 2009 2010 $ 15,817,195 $ 15,942,106 S 16,543,215 $ 17,165,849 - - 4,519,175 4,589,221 12,773,695 14,862,634 4,061,202 4,392,753 2,741,121 2,770,473 - - 9,712,568 10,346,444 1,524,823 1,598,056 - - 9,761,726 11,110,707 - - 4,573,162 4,428,176 - - 338,134 362,532 924,989 416,673 187,793 67,001 42,868 93,781 605,006 633,902 - - - 8,370 - 51,120 - - 42,012,436 44,483,231 42,114,236 44,356,567 Property tax 1,504,501 1,505,394 1,520,602 1,513,114 Home rule sales tax - 92,154 82,882 89,942 Investment income 262,430 159,150 26,646 1,653 Miscellaneous - - 56,761 75,267 Transfers - - - (8.370 Total business -type activities TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION Governmental activities Business -type activities TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION 1,766,931 1,756,698 1,686,891 1,671,606 $ 43,779,367 $ 46,239,929 $ 43,801,127 $ 46,028,173 $ 5,022,636 $ 803,009 $ (731,698) $ 691,053 1,766,072 1,357,986 779,173 563,353 $ 6,788,708 $ 2,160,995 S 47,475 $ 1,254,406 * The Village implemented GASB Statement No. 68 in fiscal year 2015. Data Source Audited Financial Statements -191 - 2011 2012 2013 2014 2015* 2016 $ 17,942,394 $ 18,385,422 $ 18,890,542 $ 19,745,699 $ 19,884,986 $ 20,463,758 4,624,678 4,658,265 3,891,713 4,093,596 3,774,729 3,629,525 - 283,706 317,527 331,933 342,040 341,340 4,673,134 4,750,232 5,035,998 5,320,795 5,367,762 5,553,213 1,976,997 2,408,064 2,952,665 3,421,604 3,940,993 3,645,424 11,411,781 11,877,115 13,254,358 14,310,773 16,311,253 17,630,758 4,328,196 4,759,513 5,161,051 5,186,155 5,763,542 5,272,834 357,596 358,286 396,999 407,764 386,154 386,338 - - - - 365,634 380,758 3,986 4,090 4,090 4,812 - 4,101 29,043 42,452 29,785 (46,496) 24,784 76,594 235,167 278,293 436,703 47,636 42,059 33,286 - - - - (200,000) - 45,582,972 47,805,438 50,371,431 52,824,271 56,003,936 57,417,929 1,526,828 1,515,605 1,507,661 1,508,704 1,519,375 1,524,901 107,576 99,795 104,050 100,697 101,595 - 836 517 3,387 3,189 34,195 14,419 73,858 (29,581) 90,713 77,468 94,424 90,810 - - - - 200.000 - 1,709,098 1,586,336 1,705,811 1,690,058 1,949,589 1,630,130 $ 47,292,070 $ 49,391,774 $ 52,077,242 $ 54,514,329 $ 57,953,525 $ 59,048,059 $ (3,857,498) $ 520,954 $ (1,668,235) $ (5,067,290) $ (16,700,217) $ (6,012,855) 238,398 1,326,816 1,023,009 179,533 9,122,508 (1,304,220) $ (3,619,100) $ 1,847,770 $ (645,226) $ (4,887,757) $ (7,577,709) $ (7,317,075) -192- VILLAGE OF MOUNT PROSPECT, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2007 2008 2009 2010 GENERAL FUND Reserved $ 40,910 $ 228,750 $ 88,492 $ 53,536 Unreserved 12,774,003 12,312,075 10,110,989 10,364,455 Nonspendable - - - - Unassigned - - - - TOTAL GENERAL FUND $ 12,814,913 $ 12,540,825 $ 10,199,481 $ 10,417,991 ALL OTHER GOVERNMENTAL FUNDS Reserved $ 3,329,107 $ 2,523,221 $ 4,762,560 $ 2,188,376 Unreserved, reported in Special Revenue Funds 2,028,077 2,043,378 1,674,387 2,148,898 Debt Service Funds - (908,466) (485,274) (78,844) Capital Project Funds 2,315,134 303,492 1,965,761 2,459,761 Nonspendable - - - - Restricted - - - - Assigned - - - - Unassigned - - - - TOTAL ALL OTHER GOVERNMENTALFUNDS $ 7,672,318 $ 3,961,625 $ 7,917,434 $ 6,718,191 * The Village implemented GASB Statement No. 54 in fiscal year 2011. Audited Financial Statements - 193 - 2011* 2012 2013 2014 2015 2016 $ - $ - $ - $ - $ 100,590 98,150 297,762 337,165 204,023 188,247 10,704,282 11,466,179 11,580,820 12,508,457 17,016,920 18,496,104 $ 10,804,872 $ 11,564,329 $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 18,684,351 $ - $ - $ - $ - $ - $ - 147,130 144,114 132,464 147,412 107,609 96,771 2,828,903 3,625,715 3,166,583 13,941,797 5,212,985 4,557,424 3,564,914 7,525,930 15,705,506 7,371,630 3,679,129 3,224,446 (5,578) (664) (689) (789) (448,034) (688,716) $ 6,535,369 $ 11,295,095 $ 19,003,864 $ 21,460,050 $ 8,551,689 $ 7,189,925 -194- VILLAGE OF MOUNT PROSPECT, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2007 2008 2009 2010 REVENUES - - 16,080,000 - Premium on bonds issued - - 124,535 - Payment to escrow agent Taxes $ 26,460,490 $ 27,287,056 $ 26,648,415 $ 27,740,802 Licenses, permits, and fees 3,445,370 3,094,828 3,748,456 3,394,211 Intergovernmental 17,783,855 19,104,781 17,274,500 18,719,087 Charges for services 31780,453 3,618,419 3,832,341 3,789,976 Fines and forfeits 720,673 720,351 529,655 556,178 Investment income 924,989 416,673 137,142 55,457 Other reimbursements - - - - Miscellaneous 557.279 533.460 834.738 781.149 Total revenues 53,673,109 54,775,568 53,005,247 55,036,860 EXPENDITURES - - 16,080,000 - Premium on bonds issued - - 124,535 - Payment to escrow agent General government 5,298,202 5,725,191 5,796,151 5,240,716 Public safety 24,767,992 25,906,274 26,384,953 26,935,085 Highways and streets 9,204,868 9,168,071 8,291,493 7,450,823 Health 4,102,547 4,156,319 4,188,172 4,128,010 Welfare 1,786,121 1,736,791 2,316,995 2,039,805 Culture and recreation 281,737 381,892 358,207 313,125 Capital outlay 2,437,381 6,623,970 14,296,659 7,739,590 Debt service Principal retirement 3,529,734 4,149,735 1,425,219 1,046,203 Interest and fiscal charges 1,044,123 891,181 1,023,907 1,124,236 Total expenditures 52,452,705 58,739,424 64,081,756 56,017,593 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 11220,404 (3,963,856) (11,076,509) (980,733) OTHER FINANCING SOURCES (USES) Bonds issued - - 16,080,000 - Premium on bonds issued - - 124,535 - Payment to escrow agent - - (3,513,925) - Transfers in 105 809,422 635,100 450,000 Transfers (out) (165,211) (833,242) (635,100) (450,000) Sale of capital assets - 2,895 364 - Total other financing sources (uses) (165,106) (20,925) 12,690,974 - NET CHANGE IN FUND BALANCES S 1,055,298 $ (3,984,781) S 1,614,465 $ (980,733) DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 8.78% 9.00% 4.55% 4.12% Data Source Audited Financial Statements - 195- 2011 2012 2013 2014 2015 2016 $ 29,217,203 $ 30,485,689 $ 31,088,445 $ 32,564,624 $ 33,433,891 $ 34,113,260 3,356,816 3,657,586 3,589,368 3,516,082 3,915,635 4,001,458 18,895,261 18,862,827 21,103,909 23,914,974 26,018,173 27,434,551 3,974,677 4,417,110 4,408,987 5,220,730 5,664,398 6,347,775 548,993 403,036 430,960 587,966 511,536 414,885 23,103 36,491 16,751 (46,495) 24,784 76,594 - - - - - 35,000 406.118 629.892 1.167.196 983.623 656.877 549.816 56,422,171 58,492,631 61,805,616 66,741,504 70,225,294 72,973,339 5,284,168 5,827,275 7,452,147 7,050,018 7,598,649 9,435,601 26,992,535 28,022,943 29,233,562 30,706,685 30,350,270 32,512,612 7,681,534 7,734,185 9,094,846 8,291,698 7,744,122 8,148,696 4,286,754 4,405,184 4,457,548 4,590,027 4,589,156 4,585,572 1,902,841 1,909,062 1,868,952 1,865,265 1,961,516 1,994,918 346,068 399,366 435,931 421,517 467,611 499,208 7,274,213 4,761,739 8,588,414 12,075,460 20,998,508 10,718,553 1,377,700 1,479,732 1,537,312 2,987,587 3,048,912 3,243,840 1,057,464 959,812 913,882 1,914,718 1,799,590 2,017,192 56,203,277 55,499,298 63,582,594 69,902,975 78,558,334 73,156,192 218,894 2,993,333 (1,776,978) (3,161,471) (8,333,040) (182,853) 5,160,000 5,475,000 9,800,000 6,290,000 - 17,835,000 - - - 294,697 - 1,022,839 (5,139,582) (2,949,150) - - - (18,573,342) 80,089 - 239,977 - 81,599 1,637,926 (115,342) - (239,977) - (281,599) (1,637,926) (14,835) 2,525,850 9,800,000 6,584,697 (200,000) 284,497 $ 204,059 $ 5,519,183 $ 8,023,022 $ 3,423,226 $ (8,533,040) $ 101,644 4.35% 4.40% 4.01% 7.02% 6.20% 7.32% -196- M M M M M M M M M M i � y�" ✓ M M M M M M M M M M u, W CC O M 00 O M \O N DC D1 kn � N O 't kr) M � M ;1 O ODC kr) oc M N M p N 17 t--00 O1 l N O 'n o0 M oc 00 kr, o0 N -zt \c M m O W kn kn O c kn O kn O 4A k N to O it O CC EA 00 00 00 t V m o C+l In o0 0 Q �c 00 � W y o N a, oc In � ol l� kn y kn OC C1 O 00 \O kn M M M H O N N V a1 O 0`n0 O 'O O oc N a a v) oy kn o l V N v kn oo m o p y kn kn oc O W a M CD N 10 V ON (n M u Dc O 01 O kn 00 V r • +•• kn m 00 ,--i M M oc a+ O 01 N o0 N N ISI N N Qi EA r� N Ni V kn V 41 M d1 l� m ,mom V'1 N 00 O Q1 M Q1 O kn kn M 00 l� 4. oo m kn v a, kn a rn M aCC� aj oc kn kn c � c i kn �i r-�' (V l� N 00 M M M N N V V N N N N 'O N V) 1 N rqke) 00 � cC OAC 00 � N oC kn p O` 00 l N M oc m y y OO N N M kn M 01 C CO l� M N O N DO 01 N bA y� N kn cn oc G � � T y V %+ o0 M V) D QJ O O O O y y a N N N U O 4W z Q o o 10 o If l� M F1 00 ' ' N �--� M M O O O O O V v'i oo a1 O O O O 00 h 10 O 00 N C0 O O O O O aJ �o 01 N 00 a � 0 o 00 00000 M Cl) O CO CO O O O O O N � � O O O O O d M o oc M �O DD oG �, 00 V O O O O O O O O N M N N N O O d\ N CG O V Ln0 N O O V'1 O F N � o, � oo V V) [� .� o 0o Ln O Ln M �o N --i W oo 'n 0 0 O 0 0 0 0 0 0 0 0 00 �t -� 11 10 0 0 0 0 0 � o0 00 C1 O a1 N 0, 00 '0 7 kc) �o Ao M r- v'1 0 cn 0 O L � _O O1 _M 00 Vr �o M �c o l� N V'1 -- N �o--� rV M 'T_ l� V'l l- V'> 0 0� � 0 0 0 0 0 0 0 0 0 l� � �o •--� �O O O Cl O O O O O O O O O O O O N O O O M O t�c N V M O\ 'ZT O\ "o T M Ln N M l -- 1.o O Ln N O N h I N N S M Cl O O O O O O O O O M M V1 -� Vr V� O O O O , O O O O O O O O O O N O O O N O N ("I (n 00 O "o V) oo N M n O l� T 'o N N 00 Ao N h N W) 00 zT N O �T IrD M a, N O O O O O O O O O O O O O O O O N O O O N O ON M ^ � Q\ h ^ M oo V)= OG 01 G\ V1 O �n C1 M �--� N �n �^ •--� O �--� N v o v� a o� Cl o N o 10 00 CIA V) V v,MooN o000000000lcN m oo v 0 0 0 0 0 0 0 0 o O o 0 0 0 0 0 0 0 o V7 -� N V oo Q, In Q, Q' M N 00 h �c o, Io O l- -� V� V1 m O 00 W" r- 01 �c N_ M M O Wn 00 00 n 01 O T N 00 O •--� M O O O m O N O O N 0 0 0 0 0 0 N O l'- � kn M M D\ \o O of oC M_ O\ M 00 --� 00 O M 00 O L-- O O M O N 00 �z l� O N O � Q � ca o-0' `1 [- m Q IjS-1 fl�-I V] .4 o oyn OR p_, ai ai ami 'o 'O .a o o o o F a c o 0 0 °� o 7C 0 o y ani 0 0 0 0 o �UWC7o,rw w� O Uuc, �-,F-E�C7L7C P'dC2PdZ�U�> ciD �T O O1 N N N N 10 O 00 — — [-- �c 01 �rl V �o �T Ln ^y O [� 00 M m M --� 00 00 N �T N Cl 41 o0 01 N 01 o0 M [-- �� o0 N M N N N O M V) 01 N �!. h Ln 00 01 It Ln O M --i [-- N N o0 O1 r— M �O N 4 ;- CO �O �--� N �O V) h Lr �O V) M M N 01 Q1 N Vl V) lG h V'� 00 01 00 Ln N N m M O V O M�T 0 N O V N M M `J Ln Cl) 10�T V) 01 O M r- V) N N G1 M O �O 00 N In V O O 01 N N V M M O M O M M OG M � •--� O1 Ic a1 O -� � � � C) V� 10 Vf � N N_ �T O1 4, O --� M O ;- V) r o0 00 [� V) V) N O -� N 00 V- M O1 V ,r) O ') , m m 01 L- �n N N� o N a m o N n o m v v o .� �n moo �0 [— N �O �T M O V) •--� h l� O G O o0 00 00 �T CA 01 V) M N 4 O m 01 N 01 V) m 01 01 O V) � V) � l o0 o0 N � 01 V) 10 �O l O1 a1 oC V V) V O V) h M 01 N N l0 N'T O Vr 01 V) M O O [— 00 Ic N M. O M O N M O O — O — O N r O\ O A W A W � � ,--, �Wo w� TWO wv Wo zaacc We o QQ aWzz wa azz wa o v.o.� Opa HF.� O►�a HHS W ors.x aOa I P- F' oa �Q rs»c w w FC4 � � a rsa0 w w FCC � r N � N � N N � � W w . � bA N ✓ c Cr � >, kA P6 � �: �.� �� u v o �ca� Baa as zap �-aa T wad�-yy V Odd a o o o ¢' o o P. w p. � o H wx W F HFx� W awx Ov] En cC, v1 c4 c/1 v] OM" 0 0 0 0 0 0 0 0 0 0 0 x ,n M V b In o � o In n a, ,� o ,-• N .x' °� ra 00 0o In ,n In N o. v oo ss s9 s 12 0 y � H ry rA y a co y CA ti v H o�q C VD N R. Fes-. bA Lia ii. .C, ❑ � 00. y � G. a o x a, o U rq 0 3 d c� z x41 x 3 a F o o o 0 o j vmi vNi o N o 0 Cl. w 0 x -� N a _ O l� l� 01 lD O V'1 M oo O O CD O O M m > O O In cl I! N N N F Q M F 6R 69 b9 � N CA y0. b to N tb F 2 Wit.. � Ci' w Lia y Lia � R v� vA o c � o as � .a > •o .a y u v ro c c o F a c c ro w VILLAGE OF MOUNT PROSPECT, ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Levy Years Data Source Office of the County Clerk -201 - 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 2007 2006 S 13,506,574 $ 12,369,490 91.58% $ 872,158 $ 13,241,648 98.04% 2008 2007 14,014,838 13,648,416 97.39% (77,462) 13,570,954 96.83% 2009 2008 14,472,269 14,137,805 97.69% (13,794) 14,124,011 97.59% 2010 2009 15,194,636 14,856,084 97.77% (129,263) 14,726,821 96.92% 2011 2010 15,194,635 14,961,411 98.47% (45,676) 14,915,735 98.16% 2012 2011 15,852,352 15,614,490 98.50% (12,537) 15,601,953 98.42% 2013 2012 16,477,871 16,278,228 98.79% (5,594) 16,272,634 98.75% 2014 2013 17,301,436 17,064,355 98.63% 91,887 17,156,242 99.16% 2015 2014 17,741,219 17,521,845 98.76% 120,636 17,642,481 99.44% 2016 2015 18,313,527 18,130,372 99.00% - 18,130,372 99.00% Data Source Office of the County Clerk -201 - �O [- Mr- V) V'1 of 0\ 0\ [- W O oc h oc In o0 'V O N G\ 01 O O 01 00 V) M tf3 69 Lr) O_ N v) oc O c tv o0 D, t` 0, v) O 01 lO N al llc N O1 N lc n lO O dl kn N ;T Vl N O O O a, M lO N �c N D1 N M N_ o a oc N r Lr lc l� h M v1 Vl N CG M oo D,. O M M M �t O 7 V)oc M IC o0 N M V) 01 l-- �E N V) l— r- O o0 oc O o0 h ^ N V) CO M N 69 E{3 l� oc V1 OC 41 O M Vl O o0 oc 69 ff} O o0 M IC V) 1! N In N O O, O O O V O o0 � � .Ny oc oc \O �O V) N r- lO 00 Ic N O O a �A EH --c O O F N 000 O l� .`�-i O O Q7 O IC M M dl o0 O o0 O O o0 lc 'T V) 01 01 p I— m M o0 V) oc M O\ V py F O Ol oc In N N lo V) M M O a� U H1 EA o0 M IO Lr) r- ol O` r- O QC+ F O h oC IO oo V) O1 N N oc o0 `I [� ca O O rJ1 Vl N �O �O M /-� a N M O w O a 69 V{ O M l� V) Ib l— 01 M o0 \o o V) oc 'T a N m oc co Q� I4 01 O O O V) o0 N ` M 'I If) 01 Cl M IrD N V) M V) a O O O N M N V) r- t` t` O`• V) O o0 O V N O N N O 5 5R ff3 h h N D1 N m V) oc I— r- M r- ,--i V) 0, V) O O a, O In l m a1 l oo In O O 01 oc 01 01 IZT oc m l� oc Vi 7 O O O In N n N N O 0o O 01 !` Cl V7 r- O lo O O o dl M N 01 V1 O M O M o0 O O N 01 r- D0 GD M `O lc O 'I O l� l- N M 0, M 1- M O O O oc M V) Vl _ O N O Lr) N o0 M oc GD 69 Ef3 O W cl M 'O u ca c� `["�' 'O F 7r L1 xi N F O 0 ¢y °7 N W V 0 4 �3 W ra p R 0 7:) G N O b4 c'l F a cC O w N 'V M �D M Ol M ti O c V_ N Chi N O 00 N O w Vl O r� ¢ F 0] V ~ O � i1 w � 00 n O DD CW7 Ca w z o N � a ,-- M O Ff3 O O 45 N r O CT M O N w N 'V M �D CT Ol M 41 c V_ V C1 Vl L` 00 N M Vl 00 n 00 n O DD a ,-- M Ff3 45 59 DO CT M r- c U OC V) 7 Vl 01 O OI O N V O Ql O t` n V1 N O 0o N C C U 7. r. O M fA d 69 01 h N M o M m CYJ in O oo a1 N O 00 N 69 59 G1 �O V Do oC V kn O1 O M a, O N N 01 n 00 d; O 00 -- M 69 59 M 00 00 r- CT C) DC 10 In O kn M W V M N lD N CT 00 01 �-c 1 O r- 7 M O 00 — N •-- '• oc, N cf3 59 c O fA 59 0 o 0 0 0 Gla SA c O b9 S9 0 O EA 59 q a 45 f U 7i O O ycz.i C C U 7. O U d q aa N �c N 10 a N M N I- o M In In 00 a U N N W 00 O l- r- O a In M N l- lO lO llO a O oo 't N N u a MI-- �O �O In V c �c C _- M M N a 7 O 00 N 00 r- N 00 or N � s9 s9 0 a CO O M W N N a O l� �O M llO O O M a M N a O In a 00 I� I- M 00 W l� oc a 00 7 M 7 O 00 N 00 l- oc kn rY N � Hi 59 V N In N a In M C, o n 00 O 0o Co O In r N 00N a O � O V V VO M 00 N 10 00 O O In O� In In 00 M EA 59 10 N a 00 00 O In M o a a M a M O M M o O V O Oo 01 a M �O N l� lO 00 O M In O V o0 In M 00 a N a 00 Cc 00 N h N r- M 69 59 O O l;J 0o M co t` M c O M oo O O N O M a N co a O a 00 oc � O �y O O o0 M V In t` In In �O N N 7 In 7 I- O W N N � 6A 59 o0 a o O O a Do In M a M O In N In 7r r- M O 10 10 �o I` oc O a �t N M V V') a In M 00 a M In M l� Cl l� N In .-- N �O 00 t` N � Hi 59 O �OZtN a M In O o0 O o ti O M O O M a x O �O M M N IO a 00 M N GO p oo N h N IO Vr N � EA ss 00 00 r- tY Ic O a M M In o O N_ l� N a N o0 O O 0� N h - O O� M o0 a M M O O l- l 01 O r^ O O N to N Ic, In N � sz I's W W I` N Do N N L` a O o Vi a O lO a In ''Y h In Vr O O N M a N N oc In a I� a O 00 In o CDM L O �O �O 'V O Do In O a N In Nr- 1 7 00 00 N � sea 59 In In M N In 00 M a o oc oc � r- a oc o0 � to r- N In o0 r- O r -- -O C) _ ON Do O a N M FA S9 W o cd a U N N W W i ; t U Q 't cctij C7 w VILLAGE OF MOUNT PROSPECT, ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years * Business District is assessed additional 0.25% sales tax Data Source State of Illinois -205- Regional Village Home Rule Fiscal State County Transportation Direct Sales Tax Year Rate Rate Authority Rate Rate Total 2007 5.00% 1.00% 0.75% 1.00% 0.75% 8.50% 2008 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% 2009 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% 2010 5.00% 1.50% 1.00% 1.00% 1.00% 9.50% 2011 5.00% 1.50% 1.00% 1.00% 1.00% 9.50% 2012* 5.00% 1.25% 1.00% 1.00% 1.00% 9.25% 2013* 5.00% 1.00% 1.00% 1.00% 1.00% 9.00% 2014* 5.00% 1.00% 1.00% 1.00% 1.00% 9.00% 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% * Business District is assessed additional 0.25% sales tax Data Source State of Illinois -205- cz U U w IN 5 �— C, o co 0o M N— N y • '.= l-- O 01 00 l-- U1 M 00 M U U n P� ct U o � 0 0 0 lop, 0 o 00 00 V) v �" O Ay ►- U M 00 O, "C C �t l N "C O l-- V) V) V) 00 00 O N lr oo oc d, i O r-- �,--�r--N N 00 O, V) W) C C O O, O O oc O, l O N S u u y �c 00 rl- V) �c kr) M O rl- s a N N N N N C 00 00 1, ur O 4� O �r Y U V cYC O E" C.) V) CC3 O N 1 1 1 1 1 1 M N O V d\ I > ^ z Us � O OLr) '> 4.1 O N N N•--�-- M Y LLi r� 64 i, N N W) rq �C N 00 U aO, O O 00 v') O M N Vi W C N oc M r- N r- I-- V) M Y C y O O , O rrTT US 0 0 0 0 0 0 0 00 .Y M d 0 �, O O O O O O O N M l� bq CU p> O Vi O O O Okr) M h in O • m y IC O l 't N U N rG� M M N 00 V'� M Z- ct &9 C13 bG U U it l- 00 O, M V) VO U tj ,--i — ,--i — ^ — O W N N N N VILLAGE OF MOUNT PROSPECT, ILLINOIS RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years 2007 Percentage of Less Amounts Estimated General Available Actual Taxable Fiscal Obligation In Debt Value of Per Year Bonds Service Fund Total Property* Capita 2007 $ 16,415,000 $ 94,398 $ 16,320,602 0.34% $ 290.07 2008 13,105,000 - 13,105,000 0.23% 232.92 2009 24,770,000 - 24,770,000 0.42% 440.24 2010 24,240,000 - 24,240,000 0.40% 430.82 2011 23,630,000 131,372 23,498,628 0.43% 433.82 2012 22,790,000 135,817 22,654,183 0.45% 418.23 2013 31,645,000 121,491 31,523,509 0.67% 581.97 2014 48,433,628 131,635 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 *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. Audited financial statements Office of the County Clerk -207- VILLAGE OF MOUNT PROSPECT, ILLINOIS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Governmental unit Village of Mount Prospect County of Cook Forest Preserve District of Cook County Metropolitan Water Reclamation District Community College District #535 Community College District #512 School District #214 School District #207 School District #57 School District #26 School District #25 School District #23 School District #21 School District #59 Arlington Heights Park District Des Plaines Park District Mount Prospect Park District December 31, 2016 (2) (3) Percentage Village of (1) Debt Applicable Mount Prospect Gross to the Village of Share Debt Mount Prospect of Debt $ 77,556,501 100.000% $ 77,556,501 3,264,281,750 159,490,000 2,716,750,000 30,895,000 148,515,000 39,760,000 6,020,000 6,295,000 9,360,000 14,555,000 8,380,000 33,950,000 15,235,000 12,390,000 528,015 4,040,000 6,470,444,765 $ 6,548,001,266 1.023% 33,393,602 1.023% 1,631,583 1.042% 28,308,535 0.016% 4,943 8.933% 13,266,845 18.355% 7,297,948 0.077% 4,635 94.904% 5,974,207 77.743% 7,276,745 2.670% 388,619 7.622% 638,724 2.988% 1,014,426 14.847% 2,261,940 1.598% 197,992 1.655% 8,739 63.995% 2,585,398 104,254,881 $ 181,811,382 (1) Gross bonded debt excluding outstanding general obligation (alternate revenue bonds) which are expected to be paid from sources other than general taxation. (2) Determined by ratio of 2015 assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in Village of Mount Prospect. (3) Amount in column (2) multiplied by amount in column (1). Data Source Comprehensive Annual Financial Reports on file with Cook County Treasurer's Office. VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF LEGAL DEBT MARGIN December 31, 2016 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. -209- 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 2007 56,265 $ 1,870,325,316 $ 1,488,996,960 $ 26,464 3.40% 2008 56,265 1,979,496,030 1,488,996,960 26,464 4.50% 2009 56,265 2,017,411,353 1,488,996,960 26,464 7.90% 2010 56,265 1,834,680,507 1,488,996,960 26,464 7.80% 2011 54,167 1,694,952,801 1,798,831,903 33,209 7.40% 2012 54,167 1,568,774,082 1,798,831,903 33,209 6.60% 2013 54,167 1,357,294,084 1,798,831,903 33,209 6.70% 2014 54,167 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 N/A 1,798,831,903 33,209 4.60% Note: 2016 Equalized Assessed Valuation is not available until 2017. (1) U.S. Department of Commerce, Bureau of the Census (2) Office of the Cook County Clerk (3) IDES Local Area Unemployment Statistics -210- O O N 7 A 7 w 0 0 0 0 o 0 0 0 0 W 0 O l� N O� M O cn It rn `D O r 'o -j 't A M M W eC o SCC W � � � O O pr o Y ti H Y H � U q a 000�noo��no,o,a, O� kn Y M M N N N N P 0 0 0 0 o 0 0 0 0 W 0 O N oo W) O� eC o SCC W � � o Y ti Y H � U q a 000�noo��no,o,a, s0, CZ; Y p O O N 4, O N U N M M M N N — — — °oo S S v��v��a yx3 W .. 2 0 0 0 0 o 0 0 0 0 0 0 O N oo W) O� o SCC W � � o py Y H a 000�noo��no,o,a, s0, CZ; Y p N V% M M M N N — — — °oo S .. 2 W SCC W Y s0, CZ; Y p °oo S S W O b-0 N V/ bJO ° Y U o � � o 3 3 .. 2 VILLAGE OF MOUNT PROSPECT, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years PUBLIC REPRESENTATION/COMMUNITY AND CIVIC SERVICES Total GENERAL GOVERNMENT Village administration Administration Finance Total Community development Community development Community development/CDBG Total Human services department Total PUBLIC SAFETY AND PROTECTION Police Department Fire Department Total PUBLIC WORKS DEPARTMENT Administration Streets/buildings/parking Forestry Engineering Water/sewer Refuse disposal Parking Vehicle maintenance Total VILLAGE TOTAL Data Source Village budget 2007 2008 2009 2010 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 16.45 16.95 16.95 14.95 15.00 15.00 15.00 13.00 31.45 31.95 31.95 27.95 22.90 23.40 23.15 20.48 1.20 1.20 1.20 1.25 24.10 24.60 24.35 21.73 7.60 7.60 10.60 9.50 7.60 7.60 10.60 9.50 111.50 111.50 111.50 97.83 84.20 84.20 82.20 74.75 195.70 195.70 193.70 172.58 3.35 3.35 3.35 2.85 14.80 14.60 14.80 11.35 10.80 10.80 10.80 10.70 8.30 8.30 8.30 8.00 26.15 26.15 26.15 26.50 2.90 2.90 2.90 2.90 8.90 9.10 10.90 10.90 75.20 75.20 77.20 73.20 335.10 336.10 338.85 306.01 -212- 2011 2012 2013 2014 2015 2016 2.10 2.10 2.10 2.05 2.15 2.20 2.10 2.10 2.10 2.05 2.15 2.20 14.95 15.45 15.45 15.45 16.85 16.75 13.00 13.00 13.00 13.00 13.00 13.00 27.95 28.45 28.45 28.45 29.85 29.75 20.48 17.75 18.50 18.50 18.50 18.75 1.25 1.25 1.00 1.00 1.00 0.75 21.73 19.00 19.50 19.50 19.50 19.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 9.50 97.83 99.50 100.50 100.50 99.50 101.50 74.75 74.50 74.50 74.50 75.00 81.00 172.58 174.00 175.00 175.00 174.50 182.50 2.85 2.85 2.85 2.85 2.85 3.85 11.85 11.85 12.45 12.40 12.40 12.35 9.75 9.75 9.25 9.35 9.25 8.35 8.00 8.00 8.00 8.00 8.00 8.00 25.00 25.00 24.75 24.75 24.75 2.90 2.90 2.90 2.90 2.90 2.90 24.75 0.90 0.90 0.90 0.90 0.90 0.90 10.90 10.90 10.75 10.75 10.75 10.75 72.15 72.15 71.85 71.90 71.80 71.85 306.01 305.20 306.40 306.40 307.30 315.30 -213 - VILLAGE OF MOUNT PROSPECT, ILLINOIS OPERATING INDICATORS Last Ten Fiscal Years 2007 2008 FINANCE DEPARTMENT Vehicle stickers issued 38,851 39,208 Utility bills 97,677 86,577 Real estate transfer tax stamps sold 1,249 947 COMMUNITY DEVELOPMENT 28 - Building Division Pen -nits issued 2,801 2,687 Plan reviews 553 452 Building code inspections 8,438 7,631 Environmental Health Division Inspections Food service 392 340 Multi -family buildings 476 279 Swimming pools/spa 62 59 PUBLIC SAFETY Police Number of crimes 4,295 4,242 Number of service calls 26,694 25,631 Number of arrests 1,928 1,769 Moving violations 7,985 8,723 Parking citations 9,438 10,690 Fire Fire calls 2,273 2,019 EMS calls 3,518 3,487 Fire prevention inspections 3,652 3,264 Training hours 22,837 21,073 PUBLIC WORKS Streets Street reconstruction (miles) Street resurfacing (miles) 7.00 5.00 Crack filling (lbs) 57,660 55,000 Leaves removed (cubic yards) 15,187 16,272 Water Water mains installed (lineal feet) 3,200 8,079 Water billed (1,000 gallons) 1,440,716 1,369,479 Sanitary sewers cleaned (ft) 70,000 30,000 Refuse (single/multi-family) Solid waste collected (tons) 32,928 32,101 Recycling (tons) 6,728 6,644 * 2016 are estimated amounts. Final figures are not available at time of printing report Data Source Various village departments -214- 2009 2010 39,650 40,018 86,458 86,057 986 1,086 2,415 2,922 420 505 8,564 8,783 394 400 491 664 28 - 3,921 23,600 1,736 10,355 10,256 1,817 3,535 4,258 23,851 5.80 57,118 18,970 5,475 1,346,272 55,150 30,231 6,154 3,696 22,028 1,898 10,139 11,317 1,888 3,465 3,790 24,313 5.00 46,846 15,424 5,475 1,296,556 55,150 31,963 6,117 2011 2012 2013 2014 2015 2016* 40,871 51,885 49,153 50,100 51,412 54,300 39,834 43,092 43,490 43,803 41,964 40,815 86,701 90,147 152,312 152,519 152,703 152,850 1,022 1,282 1,451 1,409 1,433 1,472 2,821 2,278 2,383 2,400 2,490 2,500 515 595 524 500 536 525 8,508 9,154 7,824 9,500 10,590 10,000 394 405 393 345 409 400 664 565 568 575 1,043 1,000 3,359 3,178 2,809 2,670 2,399 2,400 19,943 19,184 19,206 19,300 18,906 18,500 1,845 1,602 1,509 1,410 1,178 1,205 7,026 5,979 6,152 5,800 4,839 4,800 9,363 7,640 7,314 8,000 7,166 7,000 2,350 1,892 1,967 1,996 1,883 1,865 3,590 3,885 3,912 4,200 4,061 4,135 3,418 3,308 3,144 3,400 2,700 3,500 23,578 21,340 21,149 21,257 21,454 26,970 4.70 5.20 7.50 18.90 9.80 6.50 40,871 51,885 49,153 50,100 51,412 54,300 14,843 12,569 14,577 13,000 14,000 13,900 - - - - 1,990 600 1,287,525 1,341,268 1,284,779 1,301,528 1,204,478 1,224,661 54,236 58,922 65,000 70,000 120,000 75,000 32,264 31,385 29,494 31,598 30,605 28,101 6,644 6,028 5,692 6,777 5,369 5,477 -215- --� O M M N kn O M N 00 Vl kn .M�O N00 O N 06 N Oa zt tn N oc O -� kn -ti O N 00 N M ~ kn zt M N M \O l� My N 00 N M M M M N N M --� •-� M Vl M .--i .--i N OD -ti O N °O N --� M M O N kn 00 zt N kn -ti O N OD N 00 M N M N oc l— N kn C13 p �j00 N U Oa w O M N .M� N oc r- rq kn N O N 00 � N "C OO M -!t 01 01 M, N M M /Oc O OO N 00 M T 07 N M OD N �n O O ry 06 N 00 M M 01 M � 41 O O N � N O - N U E ^ ct' Qy) 7- -I hal ISI FSI •.� L� Q VJ ca rrT%T-1 F� rrT� r�l 1�� I960 ;60> I ADDITIONAL DISCLOSURES REQUIRED BY SEC RULE 15c2-12 VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS FINANCIAL INFORMATION STATEMENT OF INDEBTEDNESS Amount As Per Cent of Applicable as of Assessed December 31, 2016 Value Assessed Valuation of Taxable Real Property, 2015 $ 1,386,802,698 (3) 100.00% Estimated True Value of Taxable Real Property, 2015 4,160,408,094 300.00% Direct Bonded Debt payable from Property Taxes (t) Payable From Property taxes $ 43,905,074 Self -Supporting Debt 33,651,427 Total Direct Bonded Debt $ 77,556,501 Overlapping Bonded Debt Payable from Property Taxes (2) 621.25 Schools $ 38,129,032 Other Than Schools 66,125,849 Total Overlapping Bonded Debt $ 104,254,881 Total Direct and Overlapping Bonded Debt $ 181,811,382 Total Direct and Overlapping Bonded Debt Excl. Self -Supporting $ 148,159,955 Estimated True Value 33.33% 100.00% Per Capita 2000 Census 54,167 $ 25,602.35 76, 807.06 3.17% 1.06% $ 810.55 2.43% 0.81% Source of Payments 621.25 5.59% 1.86% $ 1,431.80 2.75% 0.92% $ 703.92 4.77% 1.59% Percent 1,220.78 7.52% 2.51% $ 1,924.69 13.11% 4.37% $ 3,356.50 10.68% 3.56% $ 2,735.24 Notes: 1. The Village is a home -rule unit under the Illinois constitution and, therefore, has no debt limit nor is it required to seek referendum approval for the issuance of general obligation debt. 2. See "Detailed Overlapping Bonded Indebtedness Payable From Property Taxes at December 31, 2016". 3. The Village's 2015 equalized assessed valuation includes $32,251,850 incremental valuation in the Village's tax increment financial district. RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December, 31, 2016) Notes: 1. The Village is a home rule unit under the 1970 Illinois Constitution and as such has no debt limit, nor is it required to seek referendum approval for the issuance of general obligation debt. The Village had entered into five installment contracts with the Illinois EPA (excluded from the table above) to provide funding for a portion of the Village's storm water/flood control program. The remaining two installment contracts (each with semi-annual payments) have final maturities on November 1, 2017 and June 3, 2019. Total principal outstanding on the IEPA installment contracts was $359,175 as of December 31, 2016. Debt service is being paid from the Village's'/4 cent home rule sales tax instituted effective September 1, 1991 for the purpose of funding the Village's flood control program. -217- Principal Maturities Due Source of Payments Total Maturities Debt Service Tax Levies Calendar Property Annual Cumul. Levy Property Date Taxes Amount Percent Year Taxes 2017 2,910,000 2,910,000 6.8% 2016 4,263,465 2018 3,085,000 3,085,000 14.1% 2017 4,367,410 2019 3,200,000 3,200,000 21.6% 2018 4,404,313 2020 4,920,000 4,920,000 33.1% 2019 5,167,707 2021 4,465,000 4,465,000 43.6% 2020 5,424,547 2022 3,760,000 3,760,000 52.4% 2021 5,505,142 2023 2,825,000 2,825,000 59.1% 2022 3,550,906 2024 2,285,000 2,285,000 64.4% 2023 2,917,356 2025 2,390,000 2,390,000 70.1% 2024 2,941,556 2026 2,470,000 2,470,000 75.9% 2025 2,943,356 2027 2,545,000 2,545,000 81.8% 2026 2,937,506 2028 2,635,000 2,635,000 88.0% 2027 2,944,156 2029 1,760,000 1,760,000 92.1% 2028 1,982,806 2030 790,000 790,000 94.0% 2029 924,906 2031 820,000 820,000 95.9% 2030 923,306 2032 850,000 850,000 97.9% 2031 920,506 2033 885,000 885,000 100.0% 2032 921,506 $42,595,000 $42,595,000 Notes: 1. The Village is a home rule unit under the 1970 Illinois Constitution and as such has no debt limit, nor is it required to seek referendum approval for the issuance of general obligation debt. The Village had entered into five installment contracts with the Illinois EPA (excluded from the table above) to provide funding for a portion of the Village's storm water/flood control program. The remaining two installment contracts (each with semi-annual payments) have final maturities on November 1, 2017 and June 3, 2019. Total principal outstanding on the IEPA installment contracts was $359,175 as of December 31, 2016. Debt service is being paid from the Village's'/4 cent home rule sales tax instituted effective September 1, 1991 for the purpose of funding the Village's flood control program. -217- DEBT RATIOS AND PER CAPITAL DEBT -LAST TEN GENERAL OBLIGATION BOND SALES (Note 1) Per Caoita (3 Direct & O�erlao)ina Debt Including Excluding Self- Self - Ratio to Estimated Actual Value Supporting Supporting (2) 2,544.05 Direct Debt Direct & Overlapping Debt Increase 2,362.39 Including Excluding Including Excluding Village Issue 2,445.85 Self- Self- Self- Self - Sale Date Amount Supporting Supporting (2) Supporting Supporting (2) January 21, 2003 12,235,000 1.39% 1.05% 3.77% 3.43% December 15, 2006 10,000,000 0.78% 0.69% 2.72% 2.63% February 17, 2009 10,000,000 0.72% 0.72% 2.45% 2.45% December 1, 2009 3,430,000 0.70% 0.70% 2.47% 2.47% December 1, 2009 2,650,000 0.70% 0.70% 2.47% 2.47% July 29, 2011 4,100,000 0.60% 0.60% 2.80% 2.80% July 29, 2011 5,160,000 0.60% 0.60% 2.80% 2.80% January 3, 2012 2,975,000 0.60% 0.60% 2.80% 2.80% September 10, 2013 9,800,000 0.92% 0.92% 3.42% 3.42% February 4, 2014 6,279,000 1.13% 1.09% 3.74% 3.71% September 8, 2016 8,735,000 2.00% 1.16% 5.29% 4.45% December 1, 2016 9,100,000 1.90% 1.09% 5.25% 4.43% Per Caoita (3 Direct & O�erlao)ina Debt Including Excluding Self- Self - Supporting Supporting (2) 2,544.05 Plus 2,316.16 Increase 2,362.39 General Taxing 2,287.21 Taxing 2,445.85 Year (2) 2,445.85 Valuation 2,749.42 Prior Year 2,749.42 1,834,680,507 2,749.42 1,883,395,630 2,749.42 2011 2,921.82 42,659,295 2,921.82 (7.7%) 2,921.82 1,568,774,082 2,921.82 1,607,021,964 2,921.82 2013 2,921.82 32,976,484 3,042.80 (13.5%) 3,043.80 1,390,377,678 3,253.40 1,423,608,366 3,223.59 2015 3,934.38 32,251,850 3,309.47 (2.6%) 3,908.70 3,296.96 Notes: 1. Information in table pulled from applicable Official Statements. 2. Excludes the Village's general obligation bonds which are payable from non -property taxes. 3. Village population estimates used in these calculations were 56,265 in 2001-2009, and 54,589 beginning in 2010. EQUALIZED ASSESSED VALUATION FOR TAXING PURPOSES (Note 1) Notes: 1. Property in Cook County is separated into two primary classifications for assessment purposes (10% for residential and 25% for commercial property). After the assessor establishes the fair market value of a parcel of land, the value is multiplied by one of the classification percentages to arrive at the assessed valuation for that parcel. The Illinois Department of Revenue furnishes each county with an adjustment factor (the equalization factor) to equalize the level of assessment between counties. After the equalization factor is applied, the valuation of the property for taxing purposes has been established -tax rates are applied to the equalized valuation. 2. Under the current triennial reassessment system in Cook County, the Village was most recently reassessed in 2013. 3. Excludes four categories of exemptions: the Senior Citizens' Homestead Exemption; the General Homestead Exemption; the Senior Citizens' Tax Freeze Homestead Exemption and the Long -Term Homeowner Exemption. 4. The Village's tax rate is calculated based on the village's Net Equalized Assessed Valuation (shown in this table as "Net for General Taxing Purposes") and is extended against its entire Equalized Assessed Valuation (shown in this table as "Total for all Taxing Purposes") excluding only the statuary exemptions. Of the taxes collected, that portion applicable to incremental valuation (valuation of tax increment districts) is remitted to the Village by the County Collector for deposit in the applicable tax allocation fund. The Equalized Assessed Valuation for which the Village receives its portion of the total tax rate for all non -TIF purposes is shown in this table as "Net for General Taxing Purposes". -218- 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 2010 1,834,680,507 48,715,123 1,883,395,630 (8.8%) 2011 1,694,952,801 42,659,295 1,737,612,096 (7.7%) 2012 1,568,774,082 38,247,882 1,607,021,964 (7.5%) 2013 1,357,294,084 32,976,484 1,390,270,568 (13.5%) 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%) Notes: 1. Property in Cook County is separated into two primary classifications for assessment purposes (10% for residential and 25% for commercial property). After the assessor establishes the fair market value of a parcel of land, the value is multiplied by one of the classification percentages to arrive at the assessed valuation for that parcel. The Illinois Department of Revenue furnishes each county with an adjustment factor (the equalization factor) to equalize the level of assessment between counties. After the equalization factor is applied, the valuation of the property for taxing purposes has been established -tax rates are applied to the equalized valuation. 2. Under the current triennial reassessment system in Cook County, the Village was most recently reassessed in 2013. 3. Excludes four categories of exemptions: the Senior Citizens' Homestead Exemption; the General Homestead Exemption; the Senior Citizens' Tax Freeze Homestead Exemption and the Long -Term Homeowner Exemption. 4. The Village's tax rate is calculated based on the village's Net Equalized Assessed Valuation (shown in this table as "Net for General Taxing Purposes") and is extended against its entire Equalized Assessed Valuation (shown in this table as "Total for all Taxing Purposes") excluding only the statuary exemptions. Of the taxes collected, that portion applicable to incremental valuation (valuation of tax increment districts) is remitted to the Village by the County Collector for deposit in the applicable tax allocation fund. The Equalized Assessed Valuation for which the Village receives its portion of the total tax rate for all non -TIF purposes is shown in this table as "Net for General Taxing Purposes". -218- DETAILED OVERLAPPING BONDED INDEBTEDNESS PAYABLE FROM PROPERTY TAXES AT DECEMBER 31, 2016 SCHOOL DISTRICTS: Elementary Districts: Mount Prospect No. 57 Community Consolidated No. 59 River Trails No. 26 Wheeling Community Consolidated No. 21 Arlington Heights No. 25 Prospect Heights No. 23 High School Districts: Wheeling/Elk Grove No. 214 Maine Township No. 207 Community Colleges: Oakton No. 535 Harper No. 512 Total Schools OTHER THAN SCHOOL DISTRICTS: Cook County, Including Forest Preserve District Metropolitan Water Reclamation District Park Districts: Mount Prospect River Trails Arlington Heights Des Plaines Prospect Heights Total Other Than Schools Percent of Village's Applicable Share Village's 2015 of Gross Debt to be Real Property Gross Paid From Property Taxes (1) in Taxing Body Bonded Debt Percent Amount 37.7% 6,295,000 94.904% 5,974,207 26.7% 15,235,000 14.847% 2,261,940 26.4% 9,360,000 77.743% 7,276,745 3.4% 33,950,000 2.988% 1,014,426 3.2% 14,555,000 2.670% 388,619 2.5% 8,380,000 7.622% 638,724 99.8% 39,760,000 18.355% 7,297,948 0.2% 6,020,000 0.077% 4,635 0.2% 30,895,000 0.016% 4,943 99.8% 148,515,000 8.933% 13,266,845 0.372 Fire Protection 38,129, 032 100.0% 3, 423, 771, 750 1.023% 35, 025,185 100.0% 2,716,750,000 1.042% 28,308,535 66.8% 4,040,000 63.995% 2,585,398 25.4% - - - 2.8% 12,390,000 1.598% 197,992 1.8% 528,015 1.655% 8,739 Notes: 1. Village's share based upon 2015 Real Property valuations. 3.3% - 66,125,849 TAX RATES PER $100 EQUALIZED ASSESSED VALUATION (Note 1) Notes 1. As a home rule unit under the 1970 Illinois Constitution, the Village has no statutory tax rate or levy limitations. 2. Tax rate applicable to the largest tax code in the Village and most recent available from Cook County. -219- Levy Years Village of Mount Prospect: 2011 2012 2013 2014 2015 Bonds and Interest $ 0.105 $ 0.113 $ 0.167 $ 0.165 $ 0.170 Pensions (Police, Fire) 0.278 0.316 0.393 0.387 0.426 Police Protection - - - - 0.372 Fire Protection - - - - 0.384 Corporate 0.444 0.501 0.689 0.724 - Garbage 0.109 0.121 0.026 - - Total Village 0.936 $ 1.051 $ 1.275 $ 1.276 $ 1.352 Cook County, Including Forest Preserve District 0.520 0.594 0.629 0.637 0.621 Metropolitan Water Reclamation District 0.320 0.370 0.417 0.430 0.426 Mount Prospect Park District 0.502 0.557 0.657 0.654 0.681 Mount Prospect Public Library 0.582 0.646 0.761 0.758 0.801 Special Service Area No. 5 0.114 0.122 0.140 0.138 0.142 Community Consolidated School District No. 59 2.422 2.673 3.172 3.176 3.291 Township High School District No. 214 2.067 2.324 2.768 2.776 2.881 Harper College No. 512 0.334 0.373 0.444 0.451 0.466 All Other 0.116 0.103 0.155 0.124 0.158 Total (2) $ 7.913 $ 8.813 $ 10.418 $ 10.420 $ 10.819 Village as a Percent of Total 11.8% 11.9% 12.2% 12.2% 12.5% Notes 1. As a home rule unit under the 1970 Illinois Constitution, the Village has no statutory tax rate or levy limitations. 2. Tax rate applicable to the largest tax code in the Village and most recent available from Cook County. -219- TAX EXTENSIONS AND COLLECTIONS (Village Purposes Only) Notes: 1. Source: Cook County Treasurer's Office. Tax payments, including late payments and proceeds from tax sales, are shown as collections in the year when due. The "Amount Collected" is not the same as distributions to the Village because tax refunds (pursuant to court orders, first time homestead exemptions other exemptions, etc.) are deducted from "Amount Collected" and interest earnings are added to "Amount Collected" in calculating the distributions. 2. Cook County property taxes are payable in two installments: the first on March 1, and the second on the latter of August 1 or 30 days after the mailing of the tax bills. The first installment is an estimated bill and is 55% of the prior year's bill. The second installment is based on the current levy, assessment and equalization and reflects any changes from the prior year in those factors. TEN LARGEST TAXPAYERS Total Taxes Collected as Levy Collection Total Taxes of December 31, 2016 (Note 1) Year Year Extended Amount Percent (2) 2011 2012 15,852,352 15,614,490 98.50% 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% Notes: 1. Source: Cook County Treasurer's Office. Tax payments, including late payments and proceeds from tax sales, are shown as collections in the year when due. The "Amount Collected" is not the same as distributions to the Village because tax refunds (pursuant to court orders, first time homestead exemptions other exemptions, etc.) are deducted from "Amount Collected" and interest earnings are added to "Amount Collected" in calculating the distributions. 2. Cook County property taxes are payable in two installments: the first on March 1, and the second on the latter of August 1 or 30 days after the mailing of the tax bills. The first installment is an estimated bill and is 55% of the prior year's bill. The second installment is based on the current levy, assessment and equalization and reflects any changes from the prior year in those factors. TEN LARGEST TAXPAYERS Notes: 1. Valuations as of January 1, 2015 for 2016 tax purposes. 2. Total 2015 Village valuation excluding incremental valuation in the Village's tax increment district is $1,354,550,848. -220- Equalized Assessed Percent of Rank Taxpayer Business/Properties Valuation (1) Village (2) 1 Randhurst Improvements, LLC. Shopping Center 21,171,001 1.56% 2 Ramco -Gershenson Properties Shopping Center 20,212,777 1.49% 3 Home Properties Colony Square Apartments 15,447,546 1.14% 4 Golf Plaza I and II Shopping Center 13,252,769 0.98% 5 United Airlines Inc. Corporate Offices 13,243,050 0.98% 6 CRP 3 Acquisitions, LLC Real Estate 10,943,334 0.81% 7 First Industrial Realty Real Estate 8,269,908 0.61% 8 Costco Properties Warehouse Store 7,134,307 0.53% 9 LIT Industrial Limited Real Estate 7,098,640 0.52% 10 Cummins Allison Corporation Manufacturing 6,804,630 0.50% $ 123, 577, 963 9.12% Notes: 1. Valuations as of January 1, 2015 for 2016 tax purposes. 2. Total 2015 Village valuation excluding incremental valuation in the Village's tax increment district is $1,354,550,848. -220- 2009 AND 2015 TAX BASE DISTRIBUTION BY PROPERTY CLASSIFICATION* * Excludes the incremental valuation in the Village's tax increment financing district (classified as commercial valuation). A breakdown by property classification of the Village's levy year 2016 valuation is not available as of the date of this report. GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) Village of Mount Prospect 2016 Revenues: 2012 Taxable Valuation 2014 Percent of Total Budget Classification 2009 2015 % Increase 2009 2015 Residential 1,452,220,540 962,934,812 -33.69% 71.98% 71.09% Commercial 387,256,513 279,463,359 -27.84% 19.20% 20.63% Industrial 177,285,176 111,147,033 -37.31% 8.79% 8.21% Railroad 649,124 1,005,644 54.92% 0.03% 0.07% Total 2,017,411,353 1,354,550,848 -32.86% 100.00% 100.00% * Excludes the incremental valuation in the Village's tax increment financing district (classified as commercial valuation). A breakdown by property classification of the Village's levy year 2016 valuation is not available as of the date of this report. GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) -221 - Actual 2016 Revenues: 2012 2013 2014 2015 Budget Actual Property Taxes 12,099,210 12,645,791 14,392,732 15,317,183 15,884,000 15,917,480 Sales Taxes 12,252,909 13,627,166 14,640,814 16,370,735 17,030,000 17,202,418 State Income Taxes 4,759,513 5,161,051 5,186,155 5,763,542 5,350,000 5,272,834 Licenses, Permits & Fees 3,657,586 3,589,368 2,496,760 2,428,969 2,273,000 2,350,787 Utility Taxes 4,658,265 4,658,265 4,093,598 3,774,729 3,857,000 3,629,525 Charges for Service 1,741,906 1,858,829 1,928,223 1,699,217 1,671,300 1,782,869 Fines & Forfeits 403,036 430,960 470,466 511,536 442,000 414,885 Investment Income 29,927 6,561 (64,978) 8,612 4,100 49,202 Food & Beverage Tax 710,328 719,190 738,642 759,073 720,000 805,172 Real Estate Transfer Tax 515,330 853,617 954,644 1,371,699 1,050,000 1,049,770 All Other Revenues 1,789,713 1,445,740 2,450,829 2,315,618 2,896,820 3,076,582 Total Revenues $ 42,617,723 $ 44,996,538 $ 47,287,885 $ 50,320,913 $ 51,178,220 $ 51,551,524 Expenditures: General Government Public Representation Division 110,257 114,948 142,574 137,716 137,184 141,249 Village Manager's Office 3,106,851 3,185,452 3,166,149 3,529,065 4,320,097 4,031,450 Finance Department 1,505,295 1,843,581 2,007,010 1,945,587 2,035,030 1,972,523 Community Development -Administration 644,281 661,459 673,549 662,596 810,159 734,282 Benefit Payments 46,004 46,150 46,300 46,455 46,616 46,615 Total General Government $ 5,412,688 $ 5,851,590 $ 6,035,582 $ 6,321,419 $ 7,349,086 $ 6,926,119 Public Safety: Code Enforcement 739,004 711,081 880,723 812,292 906,018 877,060 Police Department 15,286,394 15,783,921 16,578,937 16,277,671 17,540,844 17,067,883 Fire & Emergency Protection Department 11,946,079 12,678,986 13,166,937 13,171,002 14,598,987 14,473,302 Total Public Safety $ 27,971,477 $ 29,173,988 $ 30,626,597 $ 30,260,965 $ 33,045,849 $ 32,418,245 Highways & Streets 6,307,158 7,342,643 7,500,480 6,935,457 7,858,003 7,282,165 Health 143,295 142,062 151,586 148,731 251,496 160,555 Welfare 1,624,282 1,569,824 1,585,083 1,529,810 1,574,584 1,561,199 Culture & Recreation 399,366 435,931 421,517 467,611 556,424 499,208 Net Transfers (In)/Out - 166,247 - 281,599 576,367 1,240,625 Total Expenditures $ 41,858,266 $ 44,682,285 $ 46,320,845 $ 45,945,592 $ 51,211,809 $ 50,088,116 Revenues Over (Under) Expenditures $ 759,457 $ 314,253 $ 967,040 $ 4,375,321 $ (33,589) $ 1,463,408 Ending Fund Balance $ 11,564,329 $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 17,187,354 $ 18,684,351 -221 - Balance Sheet - December 31 Assets: 2012 2013 2014 2015 2016 Cash & Investments $ 7,352,604 $ 6,886,656 $ 6,879,252 $ 11,009,774 $ 11,892,092 Receivables Property Taxes 12,657,923 14,543,097 15,160,497 15,733,573 16,087,246 Other Taxes 5,290,786 5,711,586 5,747,674 6,344,148 6,772,937 All Other 448,569 492,912 468,180 471,824 435,700 Due From Other Funds 91,318 212,603 154,882 473,348 735,763 Due From Other Governments 274,942 53,602 136,834 159,403 653,254 All Other Assets 98,150 297,762 337,165 204,023 188,247 Total Assets $$ 26,214,292$ 28,198,218 $ 28,884,484 $ 34,396,093 $ 36,765,239 Liabilities & Fund Balance Accounts Payable $ 621,570 $ 334,043 $ 216,535 $ 578,648 $ 833,274 Deferred Revenues Property Taxes 12,554,622 14,396,036 15,138,046 15,691,708 16,087,246 All Other Liabilities 1,473,771 1,589,557 684,281 904,794 1,160,368 Fund Balance: Nonspendable 98,150 297,762 337,165 204,023 188,247 Restricted - - - - - Committed - - - - - Unassigned 11,466,179 11, 580, 820 12, 508,457 17, 016, 920 18,496,104 Total Fund Balance $ 11,564,329 $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 18,684,351 Total Liabilities & Fund Balance $ 26,214,292 $ 28,198,218 $ 28,884,484 $ 34,396,093 $ 36,765,239 Notes: 1. This condensed financial information for the years ending December 31, 2012-2016 has been excerpted from the full Comprehensive Annual Financial Reports of the Village. The accounting policies of the Village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: The General Fund is accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized when the related fund liability is incurred. -222- COMBINED STATEMENT -ALL FUNDS (Note 1) Fund Balances 2012-2015 and Summary 2016 Revenues, Excess Revenues and Fund Balance (Fiscal Years Ended December 31) Notes: 1. This condensed financial information for the years ending December 31, 2012-2016 has been excerpted from the full Comprehensive Annual Financial Reports of the Village. The accounting policies of the village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: All Governmental Funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets; expenditures are recognized when the related fund liability is incurred. All Proprietary Funds and Pension Trust Funds are accounted for using the accrual basis of accounting. This table excludes the Village's Expendable Trust Funds and Agency Funds. The Village's Comprehensive Annual Financial Report for the year ended December 31, 2016 included an unqualified "Independent Auditor's Report". Similar unqualified opinions were included in the Village's Comprehensive Annual Financial Reports for the years ending December 31, 2012-2015. The "Independent Auditor's Report" included in the latest audit states, in part: "7n 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, 2016, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America." 2. The Village's property tax revenue recognition policy conforms to the provisions of "NCGA Interpretation 3, Revenue Recognition Property Taxes." The current net tax levy receivable is recognized in the balance sheet along with a corresponding amount of deferred revenue. In addition, the debt service payments and liabilities related to the current net tax levy are not reflected in the Debt Service Funds; the un -matured principal is reflected in the General Long -Term Debt Account Group. 3. Includes the Capital Improvement Fund, which accounts for the resources used to provide for mid-sized capital projects. Financing is provided by one- quarter cent home rule sales tax, developer contributions, interfund transfers, investment income, and bond proceeds. 4. Fund balances shown for the Enterprise Funds are total fund equity, including contributed capital and retained earnings, and the column "Revenue Over Expenditures" represents the change in that amount. 5. The Village created a Risk Management Fund in 1984 to account for the servicing and payment of claims for liability, property, casualty coverage and Workers' Compensation. Financing is provided by charges to the various Village funds. The Village created a Vehicle Replacement Fund in fiscal year 1991 to account for the acquisition and depreciation of Village vehicles. Financing is provided by charges to the General, Water and Sewer, and Parking Funds. The Village created a Vehicle Maintenance Fund in 1996 to account for maintenance and repair of all Village vehicles except Fire Department vehicles. In 1997, the Village created a Computer Replacement Fund to account for the acquisition and depreciation of Village computer hardware. 6. Excludes agency funds. -223- Fiscal Year Ended December 31, 2016 Revenue Revenue Incl. Transfers Over Property (Under) Fund Governmental Fund Types (2): 2012 2013 2014 2015 Tax Total Expenditures Balance General Fund * $ 11,564,329 $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 15,917,480 $ 51,551,524 $ 1,463,408 $ 18,684,351 Special Revenue Funds: Motor Fuel Tax $ 509,470 $ 338,861 $ 1,397,365 $ 1,927,676 $ - $ 1,404,337 $ 537,806 $ 2,465,482 Community Development Block Grant - - - - - 432,946 - - Refuse Disposal * 2,355,748 2,445,117 1,652,809 1,191,201 - 4,597,437 172,420 1,363,621 Asset Seizure 40,479 42,659 83,675 92,655 85,356 80,424 173,079 DEA shared Funds 4,919 11,514 19,938 19,951 62 62 20,013 DUI Fines 55,431 65,287 101,080 124,735 34,385 (3,286) 121,449 Foreign Fire Tax Fund 227,346 273,346 287,977 302,729 91,486 38,949 341,678 Justice Assistant Grant Fund 835 - - - - - - Business District Fund 434,120 83 1,554,244 Total Special Revenue 3,628,348 3,176,867 3,542,844 3,658,947 $ - $ 8,200,253 826,375 4,485,322 Debt SeMce * 135,817 121,491 131,635 154,206 2,272,000 4,990,481 13,946 168,152 Capital Projects (3) 7,530,930 15,705,506 17,785,571 4,738,536 2,274,278 8,231,081 (1,514,090) 3,224,446 Total Governmental $ 22,859,424 $ 30,882,446 $ 34,305,672 $ 25,772,632 $ 20,463,758 $ 72,973,339 $ 789,639 $ 26,562,271 Proprietary & Fiduciary Fund Types Enterprise Funds (4): Water and Sewer* 33,055,996 34,086,453 34,240,404 41,273,710 $ 1,524,901 $ 12,931,867 $ (663,060) 40,610,650 Village Parking System 331,280 323,832 349,414 643,238 - 334,102 (54,860) 588,378 Internal Service Funds (5) 13,420,662 14,587,299 15,797,609 17,537,531 - 12,106,701 1,636,531 19,174,062 Pension Trust Funds: Police Pension 48,922,651 55,375,975 58,819,925 58,500,040 8,214,647 3,476,646 61,976,686 Firefighter's Pension 47,233,555 53,716,416 56,568,339 56,856,702 6,532,091 1,488,127 58,344,829 Total Proprietary & Fiduciary $ 142,964,144 $ 158,089,975 $ 165,775,691 $ 174,811,221 $ 1,524,901 $ 40,119,408 $ 5,883,384 $ 180,694,605 Total All Funds (Memo Only) $ 165,823,568 $ 188,972,421 $ 200,081,363 $ 200,583,853 $ 21,988,659 $ 113,092,747 $ 6,673,023 $ 207,256,876 * Designated as major funds. Cash & Investments at 12/31 (6): 2012 2013 2014 2015 2016 General Fund $ 7,352,604 $ 6,886,656 $ 6,879,252 $ 11,009,774 $ 11,892,092 Internal SeNce Funds 9,567,402 10,830,350 10,476,211 11,551,998 13,177,384 Refuse Disposal 2,022,049 2,231,180 1,365,133 844,053 960,475 Other Special Revenue Funds 1,179,343 1,575,858 2,716,735 3,541,745 4,399,893 Debt Service Funds 20,636 113,267 130,210 138,721 167,652 Subtotal $ 20,142,034 $ 21,637,311 $ 21,567,541 $ 27,086,291 $ 30,597,496 Capital Project Funds 6,657,075 15,487,737 16,290,597 5,442,661 2,794,596 Water &Sewer 4,356,739 5,382,441 4,697,147 3,185,314 3,179,625 Other Enterprise Funds 345,528 316,808 300,258 488,612 428,260 Pension Trust Funds 95,892,376 1D8,760,597 115,091,487 115,116,154 119,963,475 Other Fiduciary Funds 1,443,227 1,511,610 1,209,488 1,136,998 1,368,315 Total $ 128,836,979 $ 153,096,504 $ 159,156,518 $ 152,456,030 $ 158,331,767 Notes: 1. This condensed financial information for the years ending December 31, 2012-2016 has been excerpted from the full Comprehensive Annual Financial Reports of the Village. The accounting policies of the village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: All Governmental Funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets; expenditures are recognized when the related fund liability is incurred. All Proprietary Funds and Pension Trust Funds are accounted for using the accrual basis of accounting. This table excludes the Village's Expendable Trust Funds and Agency Funds. The Village's Comprehensive Annual Financial Report for the year ended December 31, 2016 included an unqualified "Independent Auditor's Report". Similar unqualified opinions were included in the Village's Comprehensive Annual Financial Reports for the years ending December 31, 2012-2015. The "Independent Auditor's Report" included in the latest audit states, in part: "7n 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, 2016, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America." 2. The Village's property tax revenue recognition policy conforms to the provisions of "NCGA Interpretation 3, Revenue Recognition Property Taxes." The current net tax levy receivable is recognized in the balance sheet along with a corresponding amount of deferred revenue. In addition, the debt service payments and liabilities related to the current net tax levy are not reflected in the Debt Service Funds; the un -matured principal is reflected in the General Long -Term Debt Account Group. 3. Includes the Capital Improvement Fund, which accounts for the resources used to provide for mid-sized capital projects. Financing is provided by one- quarter cent home rule sales tax, developer contributions, interfund transfers, investment income, and bond proceeds. 4. Fund balances shown for the Enterprise Funds are total fund equity, including contributed capital and retained earnings, and the column "Revenue Over Expenditures" represents the change in that amount. 5. The Village created a Risk Management Fund in 1984 to account for the servicing and payment of claims for liability, property, casualty coverage and Workers' Compensation. Financing is provided by charges to the various Village funds. The Village created a Vehicle Replacement Fund in fiscal year 1991 to account for the acquisition and depreciation of Village vehicles. Financing is provided by charges to the General, Water and Sewer, and Parking Funds. The Village created a Vehicle Maintenance Fund in 1996 to account for maintenance and repair of all Village vehicles except Fire Department vehicles. In 1997, the Village created a Computer Replacement Fund to account for the acquisition and depreciation of Village computer hardware. 6. Excludes agency funds. -223- CAPITAL ASSETS (Note) (December 31, 2016) Note: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000, except for infrastructure for which the cost is $50,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. -224- Governmental Business Type Activities Activities Capital Assets Not Being Depreciated Capital Assets Not Being Depreciated Land $ 10,291,446 Land $ 17,551,172 Construction in Progress $ 2,110,797 Construction in Progress $ 418,164 Total Assets Not Being Depreciated $ 12,402,243 Total Assets Not Being Depreciated $ 17,969,336 Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings $ 38,009,332 Buildings and Improvements $ 4,875,816 Improvements Othern Than Buildings 436,273 Equipment 5,017,968 Infrastructure and All Other 100,009,924 Infrastructure 28,893,528 Total Capital Assets Being Depreciated $ 138,455,529 Total Capital Assets Being Depreciated $ 38,787,312 Less Accumulated Deprteciation $ 86,573,735 Less Accumulated Deprteciation $ 20,168,020 Total Capital Assets Being Depreciated, Net $ 51,881,794 Total Capital Assets Being Depreciated, Net $ 18,619,292 Net Assets $ 64,284,037 Net Assets $ 36,588,628 Note: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000, except for infrastructure for which the cost is $50,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. -224-