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Home My WebLink About3.5 Annual Report of the Audit CommitteeBoardDocs® Pro Agenda Item Details Meeting Page I of I Sep 18, 2018 - REGULAR MEETING OF THEM UT PROSPECT VILLAGE BOARD - 7:00 p.m. 3. MAYOR'S REPORT Subject 3.5 Annual Report of the Audit Committee and Acceptance of Comprehensive Annual Financial Report (CAFR) for December 31, 2017 Access Public me Public Content Information The Audit Committee has prepared it's annual report to the Village Board on Committee activities for the past year. A primar function of the Audit Committee is oversight of the annual audit process. The audit process for 2017 has concluded and the Comprehensive Annual Financial Report (CAFR) has been provided to the Village Board for review and final acceptance. The Audit Committee Chair and staff will be on hand to present information and answer questions on the recently concluded audi process and 2017 CAFR. Follow this link to vew the complete 2017 CAFR r I Alternatives 1. Accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for period ending December 31, 2017 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 Financia' Report of the Village for period ending December 31, 2017. AC 20 1 . .. .. .. .. .. )c . .. ... 20".11.7 CA1:::::1�Z V�kk�age of IIii c 1 1, A in in u a �� 1�Ze o i -t. I.,. 1.� 7 1111 1 1 f- (6 �5 3 K [::13) 0 ff: (A. &.11A. K[::13) Administrative Content Executive Content https://www.boarddocs.com/il/vomp/Board.nsf/Public 9/19/2018 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: SEPTEMBER 10, 2018 SUBJECT: ANNUAL REPORT OF AUDIT COMMITTEE — 2017 The audit for fiscal year 2017 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 fourth year of their five-year engagement with the Village. During the past year, the Audit Committee met June 25, 2018. Included on the agenda for this meeting were discussion on results of the 2017 Comprehensive Annual Financial Report (CAFR), Single Audit Report, Auditor Communication to the Village Board and Management Letter comments as prepared by Sikich LLP. The committee also discussed the annual report the Audit Committee is to make to the Village Board. Audit Committee activities included: • At the June 25 meeting, the Audit Committee met with Village staff and the partner in charge of the audit, Jim Savio. A presentation on the 2017 audit was made by staff and auditor. Items discussed included overall results of the audit, the Auditor Communication to the Village Board/Management Letter, and Single Audit for federal grants. • At the June meeting, the Audit Committee met with staff to discuss the annual report to the Village Board. • The Audit Committee also performed a review of the duties and responsibilities as assigned by the Village Code. The following are some of the significant items from the 2017 Audit. • On page two of the Comprehensive Annual Financial Report, the firm expresses in their opinion that the financial statements present fairly in all respects the financial position for year ended December 31, 2017 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 — 2017 Activities September 10, 2018 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 were no management letter comments identified for the current year. Other information provided in the auditor communication for 2017 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 seven new pronouncements were noted with effective dates between December 31, 2018 and December 31, 2020. 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 $12,560,127 (based on December 2017 figures). 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 at the time of implementation from Statement No. 68 was a reduction of $72,968,926. The impact on the government -wide financials from incorporating GASB Statement No. 68 and anticipated impact from GASB Statement No. 75 is a reduction in the net position of $85,529,053. At December 31, 2017, the Village's net position is a negative $56,874,737. 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 — 2017 Activities September 10, 2018 Page 3 o There was one (1) prior year management letter comment. It was recommended that the Village develop and implement a formal written accounts receivable write-off policy. The new policy was approved in December 2017. This 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 $1.3 million in grant expenses were incurred during 2017. • An initial TIF report on the Prospect and Main TIF was not required for the period ending December 31, 2017 as cumulative property tax receipts did not exceed $100,000 for the year. A TIF report will be prepared for 2018 as receipts will exceed that threshold amount. • The final item we are highlighting from the Comprehensive Annual Financial Report is under the first tab (Introduction). On page viii is the Certificate of Achievement for Excellence in Financial Reporting that the Village received for its 2016 report. This marks the 24th consecutive year the Village has received this award. Application has been made to the Certificate program for fiscal year 2017. Notice of the award is expected toward the end of 2018. The next meeting of the Audit Committee is expected in late 2018 to discuss the audit engagement for 2018. The Audit Committee and staff are satisfied with the work of Sikich on the Village's audit and will have them return for the final year of the five-year engagement. Please contact me should you have any questions or need additional information related to this report or the Audit Committee activities. Respectfully Submitted, Tim McDermott ■1!x!1 VILLAGE OF MOUNT PROSPECT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2017 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 Letter of Transmittal............................................................................................................... iii -vii Certificate of Achievement for Excellence in Financial Reporting ...................................... viii 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 ............. 11 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities........................................................... 12 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Position.................................................................................... 13-14 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...................................................................................... 20-77 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual GeneralFund........................................................................................................... 78 RefuseDisposal Fund.............................................................................................. 79 Schedule of Funding Progress Other Postemployment Benefits Plan................................................................. 80 Schedule of Employer Contributions Illinois Municipal Retirement Fund........................................................................ 81 PolicePension Fund................................................................................................ 82 Firefighters' Pension Fund................................................................................. 83 Other Postemployment Benefits Plan................................................................. 84 Schedule of the Village's Proportionate Share of the Net Pension Liability Illinois Municipal Retirement Fund...................................................................... 85 Schedule of Changes in the Employer's Net Pension Liability and Related Ratios PolicePension Fund................................................................................................ 86 Firefighters' Pension Fund...................................................................................... 87 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........................................................................................... 88 Firefighters' Pension Fund................................................................................. 89 Notes to Required Supplementary Information....................................................... 90 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund Schedule of Revenues - Budget and Actual............................................................ 91-93 Schedule of Expenditures - Budget and Actual ...................................................... 94 Schedule of Detailed Expenditures - Budget and Actual ....................................... 95-106 Special Revenue Fund Refuse Disposal Fund Schedule of Operating Revenues - Budget and Actual ....................................... 107 Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual .................................................... 108 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet............................................................................................ 109 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances......................................................................................... 110 Nonmajor Special Revenue Funds Combining Balance Sheet....................................................................................... 111-112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances.................................................................................... 113-114 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS (Continued) Nonmajor Special Revenue Funds (Continued) Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 115 Schedule of Expenditures - Budget and Actual .................................................. 116 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 117 Schedule of Expenditures - Budget and Actual .................................................. 118 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual AssetSeizure Fund.............................................................................................. 119 Federal Equitable Share Fund............................................................................. 120 DUIFines Fund................................................................................................... 121 Foreign Fire Insurance Fund................................................................................ 122 Business District Fund......................................................................................... 123 Prospect/Main TIF Fund...................................................................................... 124 Nonmajor Capital Projects Funds Combining Balance Sheet....................................................................................... 125 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances.................................................................................... 126 Capital Improvement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 127 Schedule of Expenditures - Budget and Actual .................................................. 128 Nonmajor Capital Projects Funds Flood Control Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 129 Schedule of Expenditures - Budget and Actual .................................................. 130 Street Improvement Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................ 131 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) MAJOR ENTERPRISE FUND Water and Sewer Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 132 Schedule of Operating Revenues - Budget and Actual .......................................... 133 Schedule of Operating Expenses - Budget and Actual ........................................... 134-136 NONMAJOR ENTERPRISE FUNDS Combining Statement of Net Position......................................................................... 137 Combining Statement of Revenues, Expenses, and Changes in Net Position ............ 138 Combining Statement of Cash Flows.......................................................................... 139-140 Parking System Revenue Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 141 Schedule of Operating Expenses - Budget and Actual ........................................... 142 Village Parking System Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 143 Schedule of Operating Expenses - Budget and Actual ........................................... 144 INTERNAL SERVICE FUNDS Combining Statement of Net Position......................................................................... 145 Combining Statement of Revenues, Expenses, and Changes in Net Position ............ 146 Combining Statement of Cash Flows.......................................................................... 147-148 Computer Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 149 Schedule of Operating Expenses - Budget and Actual ........................................... 150 Risk Management Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 151 Schedule of Operating Revenues - Budget and Actual .......................................... 152 Schedule of Operating Expenses - Budget and Actual ........................................... 153 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) INTERNAL SERVICE FUNDS (Continued) Vehicle Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 154 Schedule of Operating Revenues - Budget and Actual .......................................... 155 Schedule of Operating Expenses - Budget and Actual ........................................... 156 Vehicle Maintenance Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ...................................................... 157 Schedule of Operating Revenues - Budget and Actual .......................................... 158 Schedule of Operating Expenses - Budget and Actual ........................................... 159 FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Net Position - Pension Trust Funds ............................... 160 Combining Statement of Changes in Net Position - Pension Trust Funds ............ 161 Schedule of Changes in Net Position - Budget and Actual PolicePension Fund............................................................................................ 162 Firefighters' Pension Fund.................................................................................. 163 AGENCYFUNDS Combining Statement of Changes in Assets and Liabilities - Agency Funds.................................................................................... 164-165 SUPPLEMENTAL DATA LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS Schedule of General Long -Term Debt......................................................................... 166-167 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) LONG-TERM DEBT REQUIREMENTS General Obligation Bonds of 2009.............................................................................. 168 General Obligation Refunding Bonds of 2009B......................................................... 169 Taxable General Obligation Bonds of 2009C............................................................. 170 General Obligation Bonds of 2011B............................................................................ 171 General Obligation Bonds of 2012.............................................................................. 172 General Obligation Bonds of 2013.............................................................................. 173 General Obligation Bonds of 2014.............................................................................. 174 General Obligation Refunding Bonds of 2016............................................................ 175 General Obligation Refunding Bonds of 2016A......................................................... 176 General Obligation Bonds of 2017.............................................................................. 177 IEPA Flood Loan (L17-1087) Contract Payable of 1999 ............................................ 178 Installment Note Payable of 2012................................................................................ 179 ADDITIONAL SUPPLEMENTAL DATA Schedule of Insurance in Force.................................................................................... 180 STATISTICAL SECTION Financial Trends Net Position by Component..................................................................................... 181-182 Change in Net Position............................................................................................. 183-186 Fund Balances of Governmental Funds................................................................... 187-188 Changes in Fund Balances of Governmental Funds ................................................ 189-190 Revenue Capacity Assessed Value and Actual Value of Taxable Property ........................................... 191 Property Tax Rates - Direct and Overlapping Governments ................................... 192-193 Principal Property Taxpayers................................................................................... 194 Property Tax Levies and Collections....................................................................... 195 SalesTaxes by Category.......................................................................................... 196 Business District Sales Taxes by Category.............................................................. 197 Home Rule Sales by Category.................................................................................. 198 Direct and Overlapping Sales Tax Rates.................................................................. 199 Debt Capacity Ratios of Outstanding Debt by Type........................................................................ 200 Ratios of General Bonded Debt Outstanding........................................................... 201 Direct and Overlapping Governmental Activities Debt ........................................... 202 Schedule of Legal Debt Margin............................................................................... 203 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION (Continued) Demographic and Economic Information Demographic and Economic Information................................................................ 204 PrincipalEmployers................................................................................................. 205 Operating Information Full -Time Equivalent Employees................................................................................. 206-207 Operating Indicators..................................................................................................... 208-209 Capital Assets Statistics by Function........................................................................... 210 Additional Disclosures Required by SEC Rule 15c2-12 .................................................. 211-218 VILLAGE OF MOUNT PROSPECT, ILLINOIS PRINCIPAL OFFICIALS William A. Grassi Eleni Hatzis Paul Wm. Hoefert Michael J. Cassady Nellie S. Beckner Karen Agoranos David O. Erb William J. Cooney, Jr. William M. Schroeder Julie K. Kane Michael Eterno Brian Lambel Sean P. Dorsey DECEMBER 31, 2017 MAYOR Arlene A. Juracek TRUSTEES ADMINISTRATION - 1 - Richard F. Rogers Colleen E. Saccotelli Michael A. Zadel Village Manager Assistant to the Village Manager Village Clerk Finance Director/Treasurer Community Development Director Director of Building and Inspection Services Human Services Director Acting Police Chief Fire Chief Public Works Director VILLAGE OF MOUNT PROSPECT ORGANIZATIONAL STRUCTURE Electorate Village Board Mayor and Six Trustees Elected At Large Audit Committee Boards Village Services Commissions Fire & Police Finance Fire Pension Board Commissioners Commission Village Manager Economic Development Commission Foreign Fire Village Transportation Police Pension Board Finance Department Safety Insurance Tax Board Administration Commission Planning &Zoning Commission Community Human Services Special Events Development Department Commission Department Centennial Commission -F Police Department [A Fire Department Sister Cities Commission Public Works Department MAYOR Arlene A. Juracek TRUSTEES William A. Grossi Eleni Hatzis Paul Wm. Hoefert Richard F. Rogers Colleen E. Saccotelli Michael A. Zadel June 26, 2018 61 Village of = o nt 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 www.mountprospect. org The Comprehensive Annual Financial Report of the Village of Mount Prospect, Illinois for the fiscal year ended December 31, 2017 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, 2017, 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, 2017 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 August. A proposed budget is prepared and delivered to the Village Board and Finance Commission at the end of September. The proposed budget is also made available for public inspection in the Village Clerk's Office, on the village website and at the Mount Prospect Public Library. A series of joint workshops are held with members of the Village Board and Finance Commission at two (2) Committee of the Whole meetings in October. The Finance Commission also meets separately with staff in October. The Village Board is required to hold a public hearing on the proposed budget and to adopt a final budget no later than December 31st of each year, the close of the Village's previous budget year. The budget is prepared by fund and by department. Expense cost centers are created within departments giving a true picture of the cost of providing a particular service (i.e. Police Department Investigations). Budget amendments require approval of the Village Board. Budget -to -actual comparisons are provided for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Corporate Fund and major special revenue funds, this comparison is presented in the required supplementary information. For governmental funds, other than the General Corporate Fund and major special revenue funds, with appropriated annual budgets, this comparison is presented in the major and non -major governmental fund subsections of this report. Major Initiatives The Village staff, following directives of the Village Board and the Village Manager, has been involved in a variety of projects throughout the year; projects which reflect initiatives found in the Village's Strategic Plan and commitment to ensuring its citizens are able to live and work in an enviable environment. Below is a list of the more significant accomplishments that address various goals identified for 2017. • Golf Plaza II — Village staff facilitated the opening of KD Market and continued to work with the owners of this important south -side plaza on further redevelopment of the site and provide assistance with filling remaining vacancies. • Levee 37 Plan — An engineering study to address flooding along the Des Plaines River was completed, providing options for increasing the capacity of existing pump stations. Next steps include design engineering as recommended in the study. • Water/Sewer Rate Study — A comprehensive utility rate study was completed that assessed the revenue stream for this enterprise function and determined the long-term renewal/replacement needs for maintaining the system. A 10 -year funding plan was developed that provides for adequate funding of ongoing operations and improves the rate at which water system replacements can be made. • Elk Grove Rural Fire Protection District Agreement (EGRFPD) —A resolution was approved that authorized the execution of an agreement between the Village and the EGRFPD. An agreement will allow for uninterrupted fire protection service in the newly annexed areas. • Busse Triangle Development — Village staff helped facilitate the preliminary PUD approval of 20 West Triangle redevelopment project, and expedited downtown building demolition permit applications and projects. Ground breaking for the 20 West project is scheduled for mid -2018. • Annexation Initiative — Continued annexation strategy to incorporate areas surrounded by the Mount Prospect corporate limits. Successful annexations included areas surrounding the United Airlines property and Birch Manor condominiums. • Police Succession Plan — The Village Manager took a first step in developing a succession plan for the Police Department by hiring a new Police Chief. This position had been vacant due to the resignation of the previous Chief. With this position now filled, a long-term plan can be developed for filling other leadership and front-line positions within the department as they become open through retirements and other organizational changes. Refer to the Strategic Plan tab of the 2018 Annual Budget document for a complete listing of major initiatives and accomplishments. All Departments continue to perform extremely well in delivering high quality services to our residents and business community. Initiatives included in the Village's strategic plan have provided a focus for these services. The Village's Annual Budget and Audit Documents were again recognized for their clarity and usability and Mount Prospect was recognized as Tree City U.S.A. for the 33rd consecutive year. -v- Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Village operates. Local economy. The Village continues to benefit from growth in the local economy. There are a number of factors that influence the economy of a specific community, and various measures are used to gauge the economic outlook. Perhaps four of the most objective measures are the level of retail sales, the employment level of the community, income levels in the community and building activity. In Illinois, sales taxes are allocated based upon the point-of-sale, and accordingly represent the sales in the community. Total state sales tax receipts received during the calendar year ended December 31, 2017 were $18,521,934 compared to $16,344,573 for the previous year, an increase of 13.3%. The increase from the prior year is due to strong growth in the drug and miscellaneous retail and automobile/filling station categories. Since the Village's portion of sales tax receipts is based on a 1% tax rate, these receipts represent total retail sales of approximately $1.85 billion for 2017. The Village projects that this revenue source will increase 4.5% during 2018 and 2019. 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 2017 was 3.7%. This was a decrease from the prior year of 90 basis points (4.6% in 2016). The average unemployment rate for the State of Illinois for 2017 was decreased 80 basis points from the prior year coming in at 5.0%. During the 12 months of 2017, the average rate had been 5.8%. The rate for U.S. decreased 50 basis points from 4.9% to 4.4%. 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 Zurich North America. The corridor is also home to regional headquarters for such corporations as AT&T and Siemens. The Corridor will continue to grow, as thousands of acres remain available for development on its far western edge. Long-term financial planning. In 2003, the Village conducted its first long-range financial planning workshop. The workshop was held in response to the slowing economy and its impact to the Village's financial condition. The goal of the workshop was to put the Village's financial condition back on firm ground in such a manner as to not overburden residents and businesses from a tax standpoint or reduce the scope and quality of municipal services that would jeopardize the livability and curb appeal of the community. The goal of the workshop was accomplished through a series of revenue enhancements, budget cuts and the planned drawdown of fund balance. Subsequent workshops continued into 2017. During the 2017 workshop, financial status reports were provided for end -of -year results for 2016, updated projections for 2017 and a revised forecast for 2018. 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 (2018-2022), the Village has identified $116.8 million in water and sewer, flood control, street, public building, equipment and other miscellaneous capital projects. The second is the Village Strategic Plan for 2020 completed in early 2016. The strategic plan provides the mission, vision, and goals for vision attainment along with the strategic action plan of the organization. An implementation guide was developed in October 2016 using the goals identified in the Strategic Plan. This implementation guide provides the objectives, short-term challenges and opportunities, and action items to be taken for accomplishing the goals of the Village. Action items were prioritized as top or high priority by the Village Board and fall into three categories; Policy Agenda, Management Agenda and Management in Progress. The implementation guide is updated annually reflecting work completed and changing priorities. Funding of initiatives identified in the strategic plan will receive a higher priority during the budget process. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Mount Prospect for its comprehensive annual financial report for the year ended December 31, 2016. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report (CAFR) whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village of Mount Prospect has received a Certificate of Achievement since 1983. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA for evaluation. In addition, the Village of Mount Prospect also received the Government Finance Officers Association's Award for Distinguished Budget Presentation for its annual budget for the fiscal year beginning on January 1, 2017 and ending December 31, 2017. 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 2018 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 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2016 Executive Director/CEO CFRTMED, PUBLIC ACCOUNTANTS & ADVISORS SIKICK 1415 West If.:)iiehIll IRoad, Sulil to +400 Naperville, IIII.... 60563 630.566.8400 S ID 1K I C H, C 01"t 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, 2017, 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. ACCC) U14'1,1hi C VP IE. ('J44u4w,'4a10CY ADVISORY - 1 - We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2017, 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. 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 additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. -2- The introductory section, supplemental data, and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 26, 2018, on our consideration of the Village's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village's internal control over financial reporting and compliance. S « . p Naperville, Illinois June 26, 2018 -3- GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For Fiscal Year Ended December 31, 2017 The Village of Mount Prospect (the "Village") Management's Discussion and Analysis is designed to (1) assist the reader in focusing on significant issues, (2) provide an overview of the Village's financial activity, (3) identify changes in the Village's financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. Since the Management's Discussion and Analysis (MD&A) is designed to focus on the current year's activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning on page iii), and the Village's financial statements (beginning on page 4). USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL REPORT The primary focus of local governmental financial statements had been to summarize fund type information on a current financial resource basis. This approach was modified by Governmental Accounting Standards Board (GASB) Statement No. 34. As a result, these financial statements now present two kinds of statements, each with a different snapshot of the Village's finances. The financial statement's focus under GASB Statement No. 34 is on both the Village as a whole (government -wide) and on the major individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the Village's accountability. Government -Wide Financial Statements The government -wide financial statements (see pages 4-7) are designed to be corporate -like in that all of the governmental and business -type activities are consolidated into columns that add to a total for the Primary Government. The focus of the Statement of Net Position (the "Unrestricted Net Position") found on pages 4-5 is designed to be similar to bottom line results for the Village and its governmental and business -type activities. This statement combines and consolidates the governmental fund's current financial resources (short-term spendable resources) with capital assets and long term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities (see pages 6-7) is focused on both the gross and net cost of various activities (including governmental and business -type), which are supported by the government's general taxes and other resources. This is intended to summarize and simplify the user's analysis of the cost of various governmental services and/or subsidy to various business -type activities. The governmental activities reflect the Village's basic services, including police, fire, public works, and administration. Property taxes, sales and income taxes and local utility taxes finance the majority of these services. The business -type activities reflect private sector type operations (water, sewer, and parking operations), where the fee for service typically covers all or most of the cost of operation, including depreciation. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. The focus is on major funds rather than (the previous model's) fund types. The Governmental Major Fund (see pages 8-12) presentation is organized on a sources and uses of liquid resources basis. This is the manner in which the financial plan (the budget) is typically developed. The flow and availability of liquid resources is a clear and appropriate focus of any analysis of a government Funds are established for various purposes and the Fund Financial Statement allows the demonstration of sources and uses and/or budgeting compliance associated therewith. (See independent auditor's report.) MD&A 1 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The Fund Financial Statements also allow the government to address its Fiduciary Funds (Pension Trust and Agency Funds). While these funds represent trust responsibilities of the government, these assets are restricted in purpose and do not represent discretionary assets of the government. Therefore, these assets are not presented as part of the 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 interf ind transfers as other financial sources, as well as capital expenditures and bond principal payments as expenditures. The reconciliation will eliminate these transactions and incorporate the capital assets and long-term obligation (bonds and others) into the Governmental Activities column (in the government -wide statements). Infrastructure Assets Historically, a government's largest group of assets (infrastructure — i.e. roads, bridges, storm sewers, etc.) have not been reported nor depreciated in governmental financial statements. GASB Statement No. 34 requires that these assets be valued and reported within the Governmental Activities column of the Government -wide Statements. Additionally, the government must elect to either (1) depreciate these assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity. If the government develops the asset management system (the modified approach), which periodically (at least every third year), by category, measures and demonstrates its maintenance of locally established levels of service standards, the government may record its cost of maintenance in lieu of depreciation. The Village of Mount Prospect has chosen to depreciate assets over their useful life. If a road project is considered maintenance -a recurring cost that does not extend the road's original useful life or expand its capacity -the cost of the project will be expensed. An "overlay" of a road will be considered maintenance whereas a "rebuild" of a road will be capitalized. GOVERNMENT -WIDE STATEMENTS Statement of Net Position The Village's combined net position for the primary government decreased from a negative $12.8 million to a negative $14.8 million. The net decrease of $2.0 million is attributable to a decrease of $2.8 million in Governmental Activities and an increase of $0.8 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&A 2 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 Table 1 Statement of Net Position as of December 31, 2017 (in millions) Governmental Activities 2017 2016 S 78.6 S 73.7 63.4 64.3 S 142.0 rS 138.0 14.2 19.3 S 156.2 S 157.3 Business -type Activities Total 2017 2016 2017 2016 S 12.4 S 7.8 S 91.0 S 81.5 36.7 36.6 100.1 100.9 S 49.1 IF 44.4 IF 191.1 r S 182.4 1.0 1.3 15.2 20.6 S 50.1 S 45.7 S 206.3 S 203.0 Current liabilities S 5.9 S 5.2 S 1.0 S 2.4 S 6.9 S 7.6 Noncurrent liabilities 175.1 181.6 6.9 2.0 182.0 183.6 Total liabilities S 181.0 S 186.8 S 7.9 S 4.4 "S 188.9 ""S 191.2 Deferred inflows of resources 32.0 24.5 0.2 0.1 32.2 24.6 Total liabilities/deferred inflows S 213.0 S 211.3 S 8.1 S 4.5 S 221.1 S 215.8 Net Position Net investment in capital assets S 34.2 S 43.0 S 36.0 S 36.6 S 70.2 S 79.6 Restricted net position 4.1 4.6 - - 4.1 4.6 Unrestricted net position (95.1) (101.6) 6.0 4.6 (89.1) (97.0) Total net position S (56.8) S (54.0) S 42.0 S 41.2 S (14.8) S (12.8) Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net results of activities - which will impact (increase/decrease) current assets and unrestricted net position. Borrowing for capital -which will increase current assets and long-term debt Spending borrowed proceeds on new capital - which will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the net investment in capital assets. Spending of non -borrowed current assets on new capital - which will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase net investment in capital assets. Principal payment on debt - which will (a) reduce current assets and reduce long-term debt and (b) reduce unrestricted net position and increase net investment in capital assets. Reduction of capital assets through depreciation - which will reduce capital assets and net investment in capital assets. (See independent auditor's report.) MD&A3 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Current Year Impacts Governmental activities net position decreased $2.8 million while the business -type activities net position increased by $0.8 million. The governmental activities total assets decreased by $1.1 million and the governmental activities total liabilities/deferred inflows increased by $1.7 million. The total assets decrease of $1.1 million in governmental activities was the result of an increase of $4.9 million in current and other assets a decrease of $0.9 million in capital assets and a decrease in deferred outflows of $5.1 million. The $4.9 million increase in current assets was due to an increase in cash of $6.8 million and a decrease in due from other governments of $1.9 million. Surplus from operations in the General Fund and proceeds from the sale of bonds accounted for the increase in cash and investments. Amounts due from the Mount Prospect Public Library related to their outstanding debt accounted for the decrease in due from other governments. The increase in total net position of $0.8 million in business -type activities was due to an increase in current assets of $4.6 million, an increase in capital assets of $0.1 million, a decrease in deferred outflows of $0.3 million, a net increase in current and noncurrent liabilities of $3.5 million, and an increase in deferred inflows of $0.1 million. The decrease in deferred outflows of $5.1 million for the governmental activities was due to a decrease in pension - related items for IMRF, Police and Fire. Total liabilities for governmental activities decreased $5.8 million due to an increase in current liabilities of $0.7 million and a decrease in non-current liabilities of $6.5 million. The decrease in non-current liabilities was due to a decrease in debt due in more than one year. Deferred inflows of resources increased $7.5 million for pension -related items for IMRF, Police and Fire. Changes in the other categories resulted in the timing related to the normal course of operations. Liabilities and deferred inflows of resources for business -type activities increased from $4.5 million to $8.1 million. This increase was due to an increase in non-current liabilities of $4.9 million and a decrease in current liabilities of $1.4 million. Changes in Net Position The Village's combined change in net position for the primary government in 2017 was a decrease of $2.1 million versus a decrease of $7.3 million in 2016. Activities for the governmental activities saw a decrease in net position of $2.9 million from 2016, while activities for the business -type funds saw an increase in net position of $0.8 million from 2016. 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&A 4 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 2 Changes in Net Position as of December 31, 2017 (in millions) Govemmental Business -type Activities Activities Total Revenues 2017 2016 2017 2016 2017 2016 Program revenue s Charges for service $ 10.7 $ 11.4 $ 13.7 $ 13.3 $ 24.4 $ 24.7 Operating grants 2.7 2.6 - - 2.7 2.6 Capital grants/contrib. 0.2 - - 0.2 0.2 0.2 General revenues Property taxes 18.4 20.5 1.5 1.5 19.9 22.0 Business district taxes 0.3 0.3 - - 0.3 0.3 Sales/Use taxes 25.3 23.2 - 0.1 25.3 23.3 Income taxes 5.0 5.3 - - 5.0 5.3 Utility taxes 3.5 3.6 - - 3.5 3.6 Othertaxes 4.4 4.4 - - 4.4 4.4 Investment income 0.2 0.1 - - 0.2 0.1 Contributions - - - - - - Other - - 0.1 0.1 0.1 0.1 Total revenue $ 70.7 S 71.4 S 15.3 °S 15.2 S 86.0 S 86.6 Expenses General government $ 10.7 $ 9.9 $ - $ - $ 10.7 $ 9.9 Public safety 37.4 38.3 - - 37.4 38.3 Highways and streets 16.2 20.0 - - 16.2 20.0 Health 4.6 4.6 - - 4.6 4.6 Welfare 2.1 2.1 - - 2.1 2.1 Culture and recreation 0.6 0.5 - - 0.6 0.5 Interest 2.0 2.0 - - 2.0 2.0 Water and sewer - - 14.3 16.1 14.3 16.1 Parking - - 0.2 0.4 0.2 0.4 Total expenses $ 73.6 $ 77.4 $ 14.5 $ 16.5 $ 88.1 $ 93.9 Change in net position $ (2.9) $ (6.0) $ 0.8 $ (1.3) $ (2.1) $ (7.3) Net Position, January 1 $ (54.0) $ (50.5) $ 41.2 $ 41.9 $ (12.8) $ (8.6) Change in accounting principal - 2.5 - 0.6 - 3.1 Prior Period Adjustment - - - - - - Net Position (Deficit), January 1, Restated $ (54.0) $ (48.0) $ 41.2 $ 42.5 $ (12.8) $ (5.5) Net Position (Deficit), December 31 S (56.9) S (54.0) IS 42.0 S 41.2 S (14.9) S (12.8) (Note: There may be some slight differences in totals due to rounding). (See independent auditor's report.) MD&A5 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Normal Impacts There are eight basic impacts on revenues and expenses and are reflected below. Revenues: Economic condition - This can reflect a declining, stable or growing economic environment and has a substantial impact on state income, sales and utility tax revenue as well as public spending habits for building permits, elective user fees and volumes of consumption. Increase/decrease in Village approved rates - While certain tax rates are set by statute, the Village Board has significant authority to impose and periodically increase/decrease rates (water, sewer, licenses and fees, home rule sales tax, utility taxes, etc.). Changing patterns in intergovernmental and grant revenue (both recurring and non-recurring) - Certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-recurring (or one-time) grants are less predictable and often distorting in their impact on year-to-year comparisons. Market impacts on investment income - The Village's investment portfolio is managed using a short-term average maturity and the market condition may cause investment income to fluctuate less than alternative longer-term options. Expenses: Introduction of new programs - Within the functional expense categories (Public Safety, Public Works, General Government, etc.) individual programs may be added or deleted to meet changing community needs or unfunded mandates from other governmental levels. Increase/Decrease in authorized personnel - Changes in service demand may cause the Village Board to increase/decrease authorized staffing levels. Staffing costs (salary and related benefits) represent approximately 80% of the Village's General Fund operating costs. Salary increases (annual adjustments and merit) - The ability to attract and retain human and intellectual resources requires the Village to strive for a competitive salary range position in the marketplace. In addition, the Village has 4 separate bargaining units representing various segments of the employee population. Inflation - While overall inflation appears to be reasonably low, the Village is a major consumer of certain commodities such as supplies, fuels and parts. Some specific areas may experience unusually high price increases. CURRENT YEAR IMPACTS Governmental Activities Revenue: Total revenues for the Village's Governmental Activities for 2017 were $70.7 million. Sales/Use taxes are the largest revenue source for governmental activities accounting for $25.3 million or an increase of $2.1 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 $18.4 million in revenue. This revenue has historically been the most stable source for the Village. This was a decrease of $2.1 million from the prior year due to the termination of the Downtown Redevelopment TIF District. There was a decrease of $0.7 million in charges for service. Other taxes and revenues did not change from the prior year. (See independent auditor's report.) MD&A 6 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Governmental Activities (cont) Expenses: Total expenses for the Village's Governmental Activities for 2017 were $73.6 million. Public Safety, which includes Police and Fire, accounts for the largest portion of governmental expenses. Total Public Safety expenses in 2017 were $37.4 million, a decrease of $0.9 million from 2016. 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 $16.2 million, a decrease of $3.8 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 2017 were $15.3 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 $13.7 million generated in 2017, $10.5 million is from water sales, $2.7 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 2016, water sales accounted for $10.1 million and sewer fees were $2.6 million. The Water and Sewer Fund also receives special service area taxes in the amount of $1.5 million. This amount is unchanged from the prior year. These taxes support the delivery of Lake Michigan Water to Village residents that are connected to the Village's water system. Expenses: Total expenses for the Village's Business -Type Activities for 2017 were $14.5 million. Of the total expenses for business -type activities, $14.3 million is attributable to Water and Sewer while $0.2 million is attributable to parking. $6.5 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 $16.5 million in expenses for 2016, $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 $0.7 million in 2017 from $18.7 million to $19.4 million. In 2017, General Fund revenues came in below final budget by $0.8 million while expenditures and net transfers came in $1.5 million under budget. The final Village budget had anticipated a decrease in the General Fund fund balance of $0.1 million. No other significant deviations from the final budget were seen in revenues during 2017. (See independent auditor's report.) MD&A 7 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) General Fund Budgeting Highlights During 2017, the Village amended the budget four (4) times. Table 3 below reflects the original and revised budget and the actual revenues and expenditures for the General Fund. More information can be found in the schedule of revenues, expenditures and changes in fund balance beginning on page 94. Other Major Funds There are two (2) other Major Funds for Fiscal Year ended December 31, 2017. 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 2017 were $4.3 million, a decrease of $0.3 million from the prior year. Almost the entire amount of revenue received during 2017 was due to charges for service. Total expenditures for 2017 were $4.2 million, a decrease of $0.2 million from the prior year. Ending fund balance increased $0.1 million to $1.5 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 2017 were $4.9 million, a decrease of $0.1 million from the prior year. Of this total revenue amount, $2.3 million is from property taxes, $1.6 million is from an intergovernmental transfer from the Mount Prospect Public Library to pay for library related debt, and $1.0 million is from other taxes. Total expenditures for 2017 were $4.9 million, a decrease of $0.4 from the prior year. (See independent auditor's report.) Table 3 General Fund Budgetary Changes Calendar Year 2017 (in millions) Original Revised Bum Bum Actual Revenues and Other Financing Sources Taxes $ 23.7 $ 23.8 $ 23.2 Intergovernmental 25.0 25.4 25.8 Other 4.6 5.5 4.8 Total Revenues $ 53.3 $ 54.7 $ 53.8 Expenditures and Transfers Expenditures $ 52.7 $ 54.0 $ 52.5 Net Transfers 0.6 0.6 0.6 Total Expenditures and Transfers $ 53.3 $ 54.6 $ 53.1 Change in Fund Balance $ - $ 0.1 $ 0.7 Other Major Funds There are two (2) other Major Funds for Fiscal Year ended December 31, 2017. 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 2017 were $4.3 million, a decrease of $0.3 million from the prior year. Almost the entire amount of revenue received during 2017 was due to charges for service. Total expenditures for 2017 were $4.2 million, a decrease of $0.2 million from the prior year. Ending fund balance increased $0.1 million to $1.5 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 2017 were $4.9 million, a decrease of $0.1 million from the prior year. Of this total revenue amount, $2.3 million is from property taxes, $1.6 million is from an intergovernmental transfer from the Mount Prospect Public Library to pay for library related debt, and $1.0 million is from other taxes. Total expenditures for 2017 were $4.9 million, a decrease of $0.4 from the prior year. (See independent auditor's report.) VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Capital Assets At the end of 2017, the Village had a combined total of $100.2 million invested in a broad range of capital assets including village facilities, roads, bridges, water/sewer lines and machinery and equipment (see Table 4 below). The following reconciliation sumo iarizes 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 $0.7 million from 2016. (This space is intentionally left blank.) (See independent auditor's report.) MD&A 9 Governmental Business -type Total Primary Activities Activities Government 2017 2016 2017 2016 2017 2016 Land (including right-of-way) $ 10.3 $ 10.3 $ 17.6 $ 17.6 $ 27.9 $ 27.9 Construction in Progress 2.3 2.1 0.9 0.4 3.2 2.5 Buildings &Improvements 27.8 27.8 1.5 2.0 29.3 29.8 Vehicles 4.4 3.8 - - 4.4 3.8 Machinery & Equipment 1.5 1.1 1.7 1.9 3.2 3.0 Infrastructure 17.2 19.2 15.0 14.7 32.2 33.9 Total Capital Assets $ 63.5 "$ 64.3 $ 36.7 $ 36.6 $ 100.2 $ 100.9 This amount represents a net decrease (including additions and deletions) of $0.7 million from 2016. (This space is intentionally left blank.) (See independent auditor's report.) MD&A 9 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 5 Change in Capital Assets (in millions) Governmental Business -type Activities Activities Total Beginning Balance $ 64.3 $ 36.6 $ 100.9 Additions Depreciable 3.2 0.7 3.9 Non -Depreciable 1.2 0.7 1.9 Retirements Depreciable (1.0) (0.4) (1.4) Non -Depreciable (1.0) (0.2) (1.2) Depreciation (4.1) (0.7) (4.8) Retirement 0.9 - 0.9 Ending Balance $ 63.5 $ 36.7 $ 100.2 Table 5 above shows the change in capital assets during 2017. This year's major additions to the capital assets include the following (in millions): Governmental Activities Vehicles for Public Safety, Public Works and Village Fleet - $1.3 Building and other Infrastructure Improvements - $1.3 Various construction projects in -progress - $1.2 Purchases of various machinery & equipment - $0.6 Business -Type Activities Various construction projects in -progress - $0.7 Infrastructure Improvements - $0.7 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 $182.0 million as of December 31, 2017. 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, $10.8 million of general obligation debt and notes payable were issued while compensated absences, claims and judgments, and post -employment benefits increased $2.5 million. Decreases in long term debt include the retirement of $3.1 million in general obligation debt, $9.0 million reduction in pension liability for police and fire, and $0.6 million in notes and loan contracts. The Village of Mount Prospect maintains an AA+ rating from Standard and Poor's. As a home rule authority, the Village of Mount Prospect does not have a legal debt limit. More detailed information on long-term debt activity can be found in Note 6 of the notes to the financial statements beginning on page 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 2017. The $0.7 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 2017 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 2018 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 2017 was 3.7%. This is below the state and national unemployment rate of 5.0% and 4.4% respectively. The Village's unemployment rate decreased 90 basis points from the prior year. The 2018 Budget represents a 6.6% increase from the amended 2017 Budget and totals $123.7 million. The General Fund increased $1.4 million, or 2.6% from the prior year. The Village's Operating Budget (that part which funds the Village's day-to-day operations) shows an increase of 1.8% and totals $72.4 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, 2017 ASSETS Cash and investments Receivables (net of allowance, where applicable) Property taxes Other taxes Accrued interest Utility customers Miscellaneous Prepaid items Inventory Due from fiduciary 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 - IMRE 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 - IMRE Pension items - Police Pension Pension items - Firefighters' Pension Total deferred inflows of resources Total liabilities and deferred inflows of resources Primary Government Governmental Business -Type Activities Activities Total $ 40,200,592 S 8,108,897 $ 48,309,489 18,713,005 1,515,464 20,228,469 7,488,185 - 7,488,185 17,731 4,009 21,740 - 1,420,341 1,420,341 1,062,996 5,972 1,068,968 508,212 16,404 524,616 310,169 358,919 669,088 5,654 - 5,654 8,084,573 771 8,085,344 2,190,074 - 2,190,074 - 953,442 953,442 12,585,293 18,497,649 31,082,942 50,867,163 18,209,122 69,076,285 142,033,647 49,090,990 191,124,637 4,346,340 1,017,311 5,363,651 3,373,499 - 3,373,499 5,925,943 5,925,943 524,395 524,395 14,170,177 1,017,311 15,187,488 156,203,824 50,108,301 206,312,125 3,936,808 883,872 4,820,680 896,885 80,067 976,952 105,674 - 105,674 170,677 15,442 186,119 68,622 1,877 70,499 41,918 - 41,918 643,482 34,275 677,757 9,099 - 9,099 5,812,362 172,851 5,985,213 169,359,688 6,702,779 176,062,467 181,045,215 7,891,163 188,936,378 18,713,005 - 18,713,005 788,153 184,476 972,629 7,615,408 - 7,615,408 4,916,780 4,916,780 32,033,346 184,476 32,217,822 213,078,561 8,075,639 221,154,200 (This statement is continued on the following page.) -4- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF NET POSITION (Continued) December 31, 2017 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 S 34,171,129 S 35,765,755 S 69,936,884 1,873,899 1,873,899 334,030 334,030 352,417 352,417 184,195 184,195 1,360,019 - 1,360,019 (95,150,426) 6,266,907 (88,883,519) S (56,874,737) S 42,032,662 S (14,842,075) See accompanying notes to financial statements. -5- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2017 Total governmental activities 73,504,612 10,725,855 2,705,584 159,682 Business -Type Activities Water and sewer 14,308,117 13,395,619 - - Parking 229,873 343,314 - - Total business -type activities 14,537,990 13,738,933 - - TOTAL PRIMARY GOVERNMENT $ 88,042,602 $ 24,464,788 $ 2,705,584 $ 159,682 mom Program Revenues Operating Capital Charges Grants and Grants and Expenses for Services Contributions Contributions FUNCTIONS/PROGRAMS PRIMARY GOVERNMENT Governmental Activities General government $ 10,690,075 $ 4,178,495 $ 17,087 $ - Public safety 37,351,039 1,761,708 760,127 159,682 Highways and streets 16,176,313 169,389 1,430,753 - Health 4,557,211 4,310,647 - - Welfare 2,068,368 39,621 405,499 - Culture and recreation 611,653 61,895 49,500 - Interest 2,049,953 204,100 42,618 - Total governmental activities 73,504,612 10,725,855 2,705,584 159,682 Business -Type Activities Water and sewer 14,308,117 13,395,619 - - Parking 229,873 343,314 - - Total business -type activities 14,537,990 13,738,933 - - TOTAL PRIMARY GOVERNMENT $ 88,042,602 $ 24,464,788 $ 2,705,584 $ 159,682 mom 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 Income tax Replacement tax Investment income Miscellaneous Total CHANGE IN NET POSITION NET POSITION (DEFICIT), JANUARY 1 NET POSITION (DEFICIT), DECEMBER 31 Net (Expense) Revenue and Change in Net Position Primary Government Governmental Business -Type Activities Activities Total $ (6,494,493) $ - $ (6,494,493) (34,669,522) - (34,669,522) (14,576,171) - (14,576,171) (246,564) - (246,564) (1,623,248) - (1,623,248) (500,258) - (500,258) (1,803,235) - (1,803,235) (59,913,491) - (59,913,491) - (912,498) (912,498) - 113,441 113,441 - (799,057) (799,057) (59,913,491) (799,057) (60,712,548) 18, 396, 040 1,514,452 19, 910,492 3,491,473 - 3,491,473 322,936 - 322,936 5,365,011 - 5,365,011 1,222,166 - 1,222,166 1,190,331 - 1,190,331 706,715 - 706,715 479,927 - 479,927 6,236 - 6,236 205,092 - 205,092 19,894,716 - 19,894,716 4,975,194 - 4,975,194 456,136 - 456,136 196,995 25,334 222,329 125,949 92,905 218,854 57,034,917 1,632,691 58,667,608 (2,878,574) 833,634 (2,044,940) (53,996,163) 41,199,028 (12,797,135) $ (56,874,737) $ 42,032,662 $ (14,842,075) See accompanying notes to financial statements. -7- VILLAGE OF MOUNT PROSPECT, ILLINOIS BALANCE SHEET GOVERNMENTALFUNDS December 31, 2017 Refuse Debt General Disposal Service Nonmajor Total ASSETS Cash and investments $ 14,814,727 $ 1,054,842 $ 162,895 $ 11,957,711 $ 27,990,175 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 16,333,702 - 2,379,303 - 18,713,005 Other taxes 6,220,011 - 1,268,174 7,488,185 Accrued interest 9,571 - - 9,571 Other 408,285 535,088 95,094 1,038,467 Due from other funds 92,845 - - - 92,845 Due from other governments 186,629 7,381,300 506,518 8,074,447 Inventories 1,936 - - - 1,936 Prepaid items 259,283 82,626 - 606 342,515 TOTAL ASSETS $ 38,326,989 $ 1,672,556 $ 9,923,498 $ 13,828,103 $ 63,751,146 (This statement is continued on the following page.) -8- VILLAGE OF MOUNT PROSPECT, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS (Continued) LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts payable Accrued payroll Retainage payable Other payables Compensated absences Unearned revenue Due to other governments Due to other funds Due to fiduciary funds 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 Total fund balances December 31, 2017 Refuse Debt General Disposal Service Nonmajor Total $ 1,463,624 $ 222,369 $ $ 2,121,364 $ 3,807,357 852,506 7,542 - 860,048 5,332 - 165,345 170,677 53,741 - 53,741 23,650 - 23,650 144,446 499,036 643,482 9,099 - 9,099 - 87,192 87,192 41,918 - 41,918 2,594,316 229,911 2,872,937 5,697,164 16,333,702 2,379,303 18,713,005 - 7,360,000 7,360,000 16,333,702 9,739,303 - 26,073,005 18,928,018 229,911 9,739,303 2,872,937 31,770,169 1,936 - - 1,936 259,283 82,626 606 342,515 6,688,899 6,688,899 334,030 334,030 - 352,417 352,417 - 184,195 - 184,195 1,360,019 - 1,360,019 - 3,579,214 3,579,214 19.137.752 - 19.137.752 19,398,971 1,442,645 184,195 10,955,166 31,980,977 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 38,326,989 $ 1,672,556 $ 9,923,498 $ 13,828,103 $ 63,751,146 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, 2017 FUND BALANCES OF GOVERNMENTAL FUNDS $ 31,980,977 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 63,452,456 Less internal service funds included below (6,748,340) 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 4,346,340 Deferred inflows of resources (788,153) Differences between expected and actual experiences, assumption changes, and net differences between projected and actual earnings for the Police Pension Plan are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position Deferred outflows of resources 3,373,499 Deferred inflows of resources (7,615,408) 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 5,925,943 Deferred inflows of resources (4,916,780) Long-term intergovernmental receivables are not available to pay for current period expenditures and, therefore, are deferred inflows of resources in the governmental funds 7,360,000 Interest payable is not due and payable in the current period and, therefore, not reported in the governmental funds (105,673) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds General obligation bonds payable (44,500,000) Loan contracts payable (170,271) Installment notes payable (1,105,000) Business district limited tax note payable (32,525,273) Compensated absences payable (3,591,958) Net pension liability - Illinois Municipal Retirement Fund (6,289,542) Net pension liability - Police Pension Plan (43,096,949) Net pension liability - Firefighters Pension Plan (38,857,145) Unamortized bond premiums (1,284,843) Unamortized loss on refunding 524,395 Net other postemployment benefits obligation (1,979,837) The net position of the internal service funds are included in the governmental activities in the statement of net position 19,736,825 NET POSITION (DEFICIT) OF GOVERNMENTAL ACTIVITIES $ (56,874,737) See accompanying notes to financial statements. -10- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS 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, 2017 Refuse Debt General Disposal Service Nonmajor Total $ 16,112,039 $ - $ 2,284,000 $ - $ 18,396,039 7,129,671 - 1,002,092 5,256,335 13,388,098 2,334,232 - - 1,648,265 3,982,497 25,833,177 - 1,621,718 1,744,417 29,199,312 1,527,168 4,283,563 - - 5,810,731 415,189 - - - 415,189 132,925 7,124 5,393 51,553 196,995 - - - 19,824 19,824 317,562 27,084 - 247,706 592,352 53,801,963 4,317,771 4,913,203 8,968,100 72,001,037 8,311,613 - - 1,749,291 10,060,904 34,166,460 - - 112,602 34,279,062 7,613,341 - - 1,148,795 8,762,136 261,533 4,238,747 - - 4,500,280 1,548,489 - - 404,566 1,953,055 585,907 - - - 585,907 - - - 5,786,667 5,786,667 - - 3,518,904 - 3,518,904 - - 1.378.256 - 1.378.256 52,487,343 4,238,747 4,897,160 9,201,921 70,825,171 1,314,620 79,024 16,043 (233,821) 1,175,866 Issuance of debt - - - 4,815,000 4,815,000 Premium on issuance of debt - - - 115,835 115,835 Transfers in - - - 600,000 600,000 Transfers (out) (600,000) - - - (600,000) Total other financing sources (uses) (600,000) - - 5,530,835 4,930,835 NET CHANGE IN FUND BALANCES 714,620 79,024 16,043 5,297,014 6,106,701 FUND BALANCES, JANUARY 1 18,684,351 1,363,621 168,152 5,658,152 25,874,276 FUND BALANCES, DECEMBER 31 $ 19,398,971 $ 1,442,645 $ 184,195 $ 10,955,166 $ 31,980,977 See accompanying notes to financial statements. - 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, 2017 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 6,106,701 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 789,055 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 (4,137,386) Less internal service funds included below 712,880 The issuance of long-term debt and related costs are shown on the fund financial statements as other financing sources (uses) and current expenditures but are recorded as long-term liabilities and deferred outflows and inflows of resources on the government -wide statements Issuance of bonds (4,815,000) Premium on issuance of bonds (115,835) The repayment of long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities General obligation bonds payable 2,910,000 Loan contracts payable 188,905 Installment notes payable 420,000 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 (758,020) Amortization of premium 141,065 Amortization of gains and losses on refundings (61,853) Increase in compensated absences (352,924) Increase in net other postemployment benefits obligation (540,098) Change in accrued interest 7,111 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 (941,613) 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 (340,184) 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 (1,279,141) Revenues in the statement of activities that are not available in governmental funds are not reported as a revenue in governmental funds until received (1,375,000) The change in net position of the internal service funds is reported with governmental activities 562,763 CHANGE IN NET POSITION (DEFICIT) OF GOVERNMENTAL ACTIVITIES $ (2,878,574) See accompanying notes to financial statements. -12- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2017 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service CURRENT ASSETS 232,354 18,497,649 1,387,786 Cash and investments $ 7,577,274 $ 531,623 $ 8,108,897 $ 12,210,417 Receivables (364,800) (20,846,563) (8,362,075) Property taxes 1,515,464 - 1,515,464 - Accounts - billed 653,381 - 653,381 - Accounts - unbilled 766,960 - 766,960 - Accrued interest 4,009 - 4,009 8,160 Other 5,972 - 5,972 24,529 Inventories 358,919 - 358,919 308,233 Prepaid items 16,404 - 16,404 165,697 Due from other governments 771 - 771 10,126 Total current assets 10,899,154 531,623 11,430,777 12,727,162 NONCURRENT ASSETS 31,244 Total current liabilities 1,137,726 Deposits - insurance - - - 2,190,074 Deposit with joint venture 953,442 - 953,442 - Subtotal noncurrent assets 953,442 - 953,442 2,190,074 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 - IMRF 18,265,295 232,354 18,497,649 1,387,786 38,690,885 364,800 39,055,685 13,722,629 (20,481,763) (364,800) (20,846,563) (8,362,075) 12,766 883,872 129,451 Accrued payroll 36,474,417 232,354 36,706,771 6,748,340 Retainage payable 15,442 - 15,442 37,427,859 232,354 37,660,213 8,938,414 - 1,349,957 Unearned revenue - 48,327,013 763,977 49,090,990 21,665,576 1.017.311 - 1.017.311 - Total assets and deferred outflows of resources 49,344,324 763,977 50,108,301 21,665,576 CURRENT LIABILITIES Accounts payable 871,106 12,766 883,872 129,451 Accrued payroll 77,630 2,437 80,067 36,837 Retainage payable 15,442 - 15,442 - Claims payable - - - 1,349,957 Unearned revenue - 34,275 34,275 - Other payables 1,877 - 1,877 14,881 Bonds payable, current 125,000 - 125,000 - Compensated absences payable 46,671 1,180 47,851 31,244 Total current liabilities 1,137,726 50,658 1,188,384 1,562,370 (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 Bonds payable, noncurrent Net other postemployment benefits obligation Net pension liability - IMRF Total long-term liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Pension items - IMRF December 31, 2017 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service $ 186,686 $ 4,720 $ 191,406 $ 124,974 - - - 189,713 4,938,964 - 4,938,964 - 96,370 3,899 100,269 51,694 1,472,140 - 1,472,140 - 5,794,561 472,346 6,266,907 12,988,485 6,694,160 8,619 6,702,779 366,381 TOTAL NET POSITION $ 41,327,962 $ 704,700 $ 42,032,662 7,831,886 59,277 7,891,163 1,928,751 184.476 - 184.476 - Total liabilities and deferred inflows of resources 8,016,362 59,277 8,075,639 1,928,751 NET POSITION Investment in capital assets 35,533,401 232,354 35,765,755 6,748,340 Unrestricted 5,794,561 472,346 6,266,907 12,988,485 TOTAL NET POSITION $ 41,327,962 $ 704,700 $ 42,032,662 $ 19,736,825 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, 2017 OPERATING REVENUES Charges for services Contributions Miscellaneous Total operating revenues OPERATING EXPENSES Administration and maintenance Insurance and claims Depreciation Total operating expenses OPERATING INCOME (LOBS) NON-OPERATING REVENUES (EXPENSES) Property taxes Investment income Interest and fiscal charges Other income Gain (loss) on the sale of capital assets Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service $ 13,395,619 $ 343,314 $ 13,738,933 $ 10,594,838 - - - 1,398,673 - - - 48275 13.395.619 343.314 13.738.933 12.041.786 13,548,366 229,873 13,778,239 2,651,323 - - - 8,295,721 681,477 - 681,477 712,880 - (2.381) 90.718 14,229,843 229,873 14,459,716 11,659,924 $ 19,736,825 (834,224) 113,441 (720,783) 381,862 1,514,452 - 1,514,452 - 22,453 2,881 25,334 90,183 (75,893) - (75,893) - 92,905 - 92,905 - (2.381) - (2.381) 90.718 1.551.536 1881 1.554.417 180.901 717,312 116,322 833,634 562,763 40,610,650 588,378 41,199,028 19,174,062 $ 41,327,962 $ 704,700 $ 42,032,662 $ 19,736,825 See accompanying notes to financial statements. - 15 - VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2017 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 13,291,171 $ 332,646 $ 13,623,817 $ 2,266,508 Receipts from interfund services - - - 9,715,705 Receipts from miscellaneous revenues 128,793 4,003 132,796 62,238 Payments to suppliers (11,974,496) (141,823) (12,116,319) (9,461,282) Payments to employees (2,768,985) (92,726) (2,861,711) (1,210,512) Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Issuance of bonds Proceeds from sale of capital assets 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 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 (1,323,517) 102,100 (1,221,417) 1,372,657 1514.452 - 1514.452 - 1,514,452 - 1,514,452 - 4,988,122 - 4,988,122 - - - - 97,091 (802,052) - (802,052) (2,523,123) 4,186,070 - 4,186,070 (2,426,032) 20,644 2,881 23,525 86,408 20,644 2,881 23,525 86,408 4,397,649 104,981 4,502,630 (966,967) 3,179,625 428,260 3,607,885 13,177,384 $ 7,577,274 $ 533,241 $ 8,110,515 $ 12,210,417 (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, 2017 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 Governmental Business -Type Activities Activities Water Nonmajor Internal and Sewer Enterprise Total Service $ (834,224) $ 113,441 $ (720,783) $ 381,862 681,477 - 681,477 712,880 92,905 - 92,905 - (68,560) - (68,560) (19,950) 51,368 - 51,368 (15,172) (6,224) - (6,224) (3,667) (71,678) - (71,678) 53,948 (1,415,302) (8,954) (1,424,256) (80,465) 13,602 1,272 14,874 17,839 12,723 1,388 14,111 8,232 220,396 - 220,396 - - (6,665) (6,665) - - - - 317,150 $ (1,323,517) $ 100,482 $ (1,223,035) $ 1,372,657 See accompanying notes to financial statements. -17- VILLAGE OF MOUNT PROSPECT, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2017 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 Due to other funds Total liabilities NET POSITION RESTRICTED FOR PENSIONS Pension Trust Agency Funds Funds $ 2,300,683 $ 1,126,624 2,528,079 - 22, 824,429 - 20,085,755 - 3,183,460 - 86,146,284 - 282,361 - 2,831 - 41,918 - - 7,140 137,395,800 $ 1,133,764 55,744 $ - - 1,133,764 5,654 - 61,398 $ 1,133,764 $ 137,334,402 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, 2017 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 NETINCREASE NET POSITION RESTRICTED FOR PENSIONS January 1 December 31 See accompanying notes to financial statements. -19- $ 7,144,659 1,938,948 9,083,607 1,404,142 17,099,327 (213,085) 18,290,384 27,373,991 99,122 10,261,982 10,361,104 17,012,887 120,321,515 $ 137,334,402 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2017 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. 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 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 monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both the revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability or deferred inflow of resources for unearned and unavailable/deferred revenue is removed from the financial statements and revenue is recognized. e. Cash and Investments For purposes of the statement of cash flows, the Village's proprietary funds consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. f. 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 lendingiborrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Advances are offset by nonspendable fund balance in applicable governmental funds. Interfund service transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. h. Inventories Inventories are valued at cost, which approximates market, using the average cost method. The costs of governmental fund inventories are recorded as expenditures when consumed rather than when purchased. Prepaid Items 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. 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 2017 attached as an enforceable lien on January 1, 2017 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, 2018 and August 1, 2018 and are payable in two installments, on or about March 1, 2018 and September 1, 2018. 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 2017 levy is intended to fund the 2018 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 Firefighters' Pension Plan. The Village maintains a cash and investment pool that is available for use by all funds, except the pension trust funds. Each fund's portion of this pool is displayed on the financial statements as "cash and investments." In addition, investments are separately held by several of the Village's funds. The deposits and investments of the pension trust funds are held separately from those of other funds. Village Deposits and Investments The Village's investment policy authorizes the Village to invest in all investments allowed by Illinois Compiled Statutes (ILCS). These include deposits/investments in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States Government or agreements to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, Illinois Funds, and Illinois Metropolitan Investment Fund (IMET). The Village's investment policy does limit its deposits to financial institutions that are members of the FDIC system and are capable of posting collateral for amounts in excess of FDIC insurance. -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. The Illinois Public Treasurers' Investment Pool, known as Illinois Funds, operates as a qualified external investment pool in accordance with the criteria established in GASB Statement No. 79, Certain External Investment Pools and Pool Participants, and thus, reports all investments at amortized cost rather than market value. The investment in Illinois Funds by participants is also reported at amortized cost. Illinois Funds does not have any limitations or restrictions on participant withdrawals. The Illinois Treasurer's Office issues a separate financial report for Illinois Funds which may be obtained by contacting the Administrative Office at Illinois Business Center, 400 West Monroe Street, Suite 401, Springfield, Illinois 62704. -31- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) 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 AIET's share price, the price for which the investment could be sold. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Village will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Village's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by an independent third party custodian and evidenced by safekeeping receipts and a written custodial agreement. 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 $ 26,918 Mount Prospect Public Library 7,360,000 Grants 648,662 Miscellaneous 48,993 TOTAL $ 8,084,573 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 -32- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. RECEIVABLES (Continued) Bonds during fiscal year 2016. The future principal and interest payments owed from the Library are as follows, with the principal portion recorded as an intergovernmental receivable in the debt service fund/governmental activities. The annual debt service requirements are as follows: Year Endin 2018 2019 2020 2021 2022 TOTAL 4. CAPITAL ASSETS Principal Interest $ 1,400,000 $ 176,150 11425,000 148,150 1,470,000 105,400 11515,000 61,300 1,550,000 31,000 $ 7,360,000 $ 522,000 Capital asset activity for the Village for the year ended December 31, 2017 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 2,110,797 1,198,858 1,015,808 2,293,847 12,402,243 1,198,858 1,015,808 12,585,293 38,009,332 769,166 - 38,778,498 436,273 - - 436,273 10,627,558 1,241,958 562,915 11,306,601 3,596,799 554,278 376,995 3,774,082 85,785,567 608,188 - 86,393,755 138,455,529 3,173,590 939,910 140,689,209 10,302,226 762,546 - 11,064,772 359,121 21,814 - 380,935 6,869,038 591,154 539,483 6,920,709 2,450,361 216,882 349,592 2,317,651 66,592,989 2,544,990 - 69,137,979 86,573,735 4,137,386 889,075 89,822,046 51.881.794 (963.796) 50.835 50.867.163 $ 64,284,037 $ 235,062 $ 1,066,643 $ 63,452,456 -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 Balances Balances January 1 Additions Retirements December 31 $ 17,551,172 $ - $ - $ 17,551,172 418,164 726,529 198,216 946,477 17,969,336 726,529 198,216 18,497,649 4,875,816 - 376,008 4,499,808 5,017,968 - - 5,017,968 28,893,528 649,695 5,314 29,537,909 38,787,312 649,695 381,322 39,055,685 2,887,855 67,760 22,693 2,932,922 3,190,989 152,641 - 3,343,630 14.089.176 483.769 2.934 14.570.011 Total accumulated depreciation 20,168,020 704,170 25,627 20,846,563 Total capital assets being depreciated, net 18,619,292 (54,475) 355,695 18,209,122 BUSINESS -TYPE ACTIVITIES CAPITAL ASSETS, NET $ 36,588,628 $ 672,054 $ 553,911 $ 36,706,771 Depreciation expense was charged to functions/programs of the governmental activities as follows: GOVERNMENTAL ACTIVITIES General government $ 403,270 Public safety 384,790 Highways and streets 2,626,858 Health and welfare 2,349 Culture and recreation 7,240 Internal service funds 712,879 TOTAL $ 4,137,386 -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, 2017 was $1,539,670. 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, 2015 $ 1,500 $ 770,868 $ 60,600 $ 832,968 Claims incurred - 2016 114,444 583,114 57,752 755,310 Claims payments - 2016 56,932 282,963 25,863 365,758 UNPAID CLAIMS, DECEMBER 31, 2016 59,012 1,071,019 92,489 1,222,520 Claims incurred - 2017 60,817 571,900 327,119 959,836 Claims payments - 2017 104,131 187,990 350,565 642,686 UNPAID CLAIMS, DECEMBER 31, 2017 $ 15,698 $ 1,454,929 $ 69,043 $ 1,539,670 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. LONG-TERM DEBT a. General Obligation Bonds The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. Any general obligation bonds issued for proprietary funds are reported in the proprietary funds if they are expected to be repaid from proprietary revenues. General obligation bonds have been issued for general governmental activities and for the Library only. In addition, general obligation bonds have been issued to refund general obligation bonds. On December 20, 2017, the Village issued General Obligation Bonds, Series 2017 in the amount of $9,740,000. The proceeds were split into $4,815,000 used to fund activity in the new Prospect/Main TIF Fund and $4,925,000 to be used in the Water and Sewer Fund. 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, 2017: Current Debt Balances Balances Portion at Retired by January 1 Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES $10,000,000 General Obligation Bonds, Series 2009, due in annual installments of $200,000 to $1,955,000, plus interest at 3.005% to 4.500% through Debt December 1, 2028. Service $ 600,000 $ - $ - $ 600,000 $ - $3,430,000 General Obligation Refunding Bonds, Series 2009B, due in annual installments of $230,000 to $370,000, plus interest at 2.50% to Debt 3.75% through December 1, 2021. Service 1,720,000 - 320,000 1,400,000 330,000 $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 2,530,000 - 75,000 2,455,000 95,000 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long -Term Liabilities (Continued) GOVERNMENTAL ACTIVITIES (Continued) $5,160,000 General Obligation Bonds, Series 201113, 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 2012C, 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. $4,815,000 General Obligation Bonds, Series 2017, due in annual installments of $140,000 to $460,000, plus interest at 2.50% to 4.00% through December 1, 2037. Total bonds Current Debt Balances Balances Portion at Retired by January 1 Additions Reductions December 31 December 31 Debt Service $ 2,980,000 $ Debt Service 1,745,000 Debt Service 9,800,000 Debt Service 5,385,000 Debt Service 8,735,000 Debt Service Debt Service 9,100,000 - $ 715,000 $ 2,265,000 $ 735,000 - - 1,745,000 - - - 9,800,000 - - 305,000 5,080,000 405,000 - 1,375,000 7,360,000 1,400,000 - 120,000 8,980,000 120,000 - 4,815,000 - 4,815,000 - 42,595,000 4,815,000 2,910,000 44,500,000 3,085,000 -39- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long -Term Liabilities (Continued) GOVERNMENTAL ACTIVITIES (Continued) $1,203,550 IEPA Flood Loan Contract Payable of 1997 (L17-0855), due in semiannual installments of $62,285 to $79,035, plus interest at 2.89% through November 1, 2017. $1,760,422 IEPA Flood Loan Contract Payable of 1999 (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 TOTAL GOVERNMENTAL ACTIVITIES BUSINESS -TYPE ACTIVITIES Current Debt Balances Balances Portion at Retired by January 1 Additions Reductions December 31 December 31 Debt Service $ 79,035 $ Debt Service Debt Service 280.140 - $ 79,035 $ - 109.869 170.271 112.771 359,175 - 188,904 170,271 112,771 1,525,000 - 420,000 1,105,000 515,000 1,525,000 - 420,000 1,105,000 515,000 Business District 31,767,253 758,020 - 32,525,273 - 31,767,253 - - 32,525,273 - $ 76,246,428 $ 5,573,020 $ 3,518,904 $ 78,300,544 $ 3,712,771 $4,925,000 General Obligation Bonds, Series 2017, due in annual installments of $125,000 to $405,000, plus interest at 2.50% to 4.00% through December 1, Water 2037. $ - $ 4,925,000 $ - $ 4,925,000 $ 125,000 TOTAL BUSINESS -TYPE ACTIVITIES $ - $ 4,925,000 $ - $ 4,925,000 $ 125,000 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 2017: Balances Current Debt January 1, as Balances Portion at Retired by Restated Additions Reductions December 31 December 31 GOVERNMENTAL ACTIVITIES Compensated absences General $ 3,410,968 $ 1,013,041 $ 652,183 $ 3,771,826 $ 749,634 Claims and judgments Internal Service 1,222,520 959,835 642,685 1,539,670 1,349,957 Net other postemployment benefit obligation General 1,483,201 548,330 - 2,031,531 - General obligation bonds Debt Service 42,595,000 4,815,000 2,910,000 44,500,000 3,085,000 Unamortized bond premium 1,310,073 115,836 141,066 1,284,843 - Loan contracts payable Debt Service 359,175 - 188,904 170,271 112,771 Installment notes payable Debt Service 1,525,000 - 420,000 1,105,000 515,000 Net pension liability - IMRF General 6,961,499 - 671,957 6,289,542 - Net pension liability - Police Pension General 48,348,979 - 5,252,030 43,096,949 - Net pension liability - Firetighters' Pension General 42,652,737 - 3,795,592 38,857,145 - Business District limited tax Business note payable District 31,767,253 758,020 - 32,525,273 - Total governmental activities 181,636,405 8,210,062 14,674,417 175,172,050 5,812,362 BUSINESS -TYPE ACTIVITIES General obligation bonds Water - 4,925,000 - 4,925,000 125,000 Unamortized bond premium - 138,964 - 138,964 - Compensated absences* 243,417 44,523 48,683 239,257 47,851 Net pension liability - IMRF** 1,629,419 - 157,279 1,472,140 - Net other postemployment benefit obligation* 86,158 14,111 - 100,269 - Total business -type activities 1,958,994 5,122,598 205,962 6,875,630 172,851 TOTAL $ 183,595,399 $ 13,332,660 $ 14,880,379 $ 182,047,680 $ 5,985,213 Compensated absences, net pension liabilities, and the net other postemployment benefit obligation of the governmental activities are primarily liquidated by the General Fund. *Compensated absences, net pension liabilities, 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 2018 S 3,085,000 S 1,433,368 S 112,771 S 3,735 S 515,000 S 10,056 2019 3,200,000 1,363,682 57,500 754 590,000 5,369 2020 4,060,000 1,267,076 - - - - 2021 4,580,000 1,143,916 - - - - 2022 4,800,000 1,013,911 - - - - 2023 2,995,000 873,475 - - - - 2024 2,470,000 773,125 - - - - 2025 2,590,000 684,925 - - - - 2026 2,690,000 598,725 - - - - 2027 2,780,000 511,275 - - - - 2028 2,890,000 422,050 - - - - 2029 2,030,000 329,007 - - - - 2030 1,080,000 233,682 - - - - 2031 1,130,000 193,745 - - - - 2032 1,185,000 148,545 - - - - 2033 1,245,000 101,145 - - - - 2034 385,000 53,388 - - - - 2035 410,000 41,356 - - - - 2036 435,000 28,544 - - - - 2037 460,000 14,950 - - - - TOTAL S 44,500,000 S 11,229,890 S 170,271 S 4,489 S 1,105,000 S 15,425 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) e. Debt Service Requirements to Maturity (Continued) Year Business -Type Activities Ending General Obligation Bonds December 31, Principal Interest 2018 S 125,000 S 157,363 2019 125,000 161,131 2020 140,000 156,131 2021 150,000 150,531 2022 160,000 144,531 2023 175,000 138,131 2024 190,000 131,131 2025 205,000 123,531 2026 220,000 115,331 2027 230,000 108,731 2028 245,000 102,981 2029 260,000 96,550 2030 275,000 89,400 2031 290,000 81,494 2032 305,000 69,894 2033 330,000 57,694 2034 345,000 47,381 2035 365,000 36,600 2036 385,000 25,194 2037 405,000 13,163 TOTAL S 4,925,000 S 2,006,893 f. Legal Debt Margin The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin. "The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property ... (2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: ... indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum . .. shall not be included in the foregoing percentage amounts." To date the General Assembly has set no limits for home rule municipalities. -43- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 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 $129,988 to HELP in 2017. For 2018, the Village estimates it will pay $43,286. 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 2018, the Village estimates it will pay SWANCC $1,013,707, with annual increases ranging from 0% to 3% through 2022. 8. INTERFUND ACTIVITY Due From/To Other Funds Receivable Fund Payable Fund Amount General Fiduciary Police Pension Firefighters' Pension TOTAL Street Improvement Construction General General The purpose of the significant interfund receivables/payables are as follows: $ 87,192 5,654 41,918 $ 134,764 • $87,192 due to the General Fund from the Street Improvement Fund. The balance represents a short-term operating loan. • $5,654 due to the General Fund from the Police Pension Fund for property tax refunds issued by the county. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 8. INTERFUND ACTIVITY (Continued) Due From/To Other Funds (Continued) • $41,918 due to the Firefighters' Pension Fund from the General Fund for 2017 tax collections received in January and February 2018. Transfers The purpose of significant transfers from/to between funds are as follows: • $600,000 transferred to the Capital Improvement Fund from the General Fund for capital projects. 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. -45- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) a. Solid Waste Agency of Northern Cook County (Continued) 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. 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 $904,291 to SWANCC in 2017. The payments have been recorded in the Refuse Disposal Fund. The Village does not have an equity interest in SWANCC at December 31, 2017. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. JOINT VENTURES (Continued) 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, 2017 are as follows: TOTAL 100.00% These percentage shares are based upon formulae contained in the water supply agreement and are subject to change in future years based upon consumption by the municipalities. 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. -47- Percent Share Village of Elk Grove Village 17.66% Village of Hanover Park 8.79% Village of Hoffman Estates 16.19% Village of Mount Prospect 12.12% City of Rolling Meadows 7.42% Village of Schaumburg 27.12% Village of Streamwood 10.70% TOTAL 100.00% These percentage shares are based upon formulae contained in the water supply agreement and are subject to change in future years based upon consumption by the municipalities. The members form a contiguous geographic service area which is located 15 to 30 miles northwest of downtown Chicago. Under the Agency Agreement, additional members may join JAWA upon the approval of each member. JAWA is governed by a Board of Directors which consist of one elected official from each member municipality. Each director has an equal vote. The officers of JAWA are appointed by the Board of Directors. The Board of Directors determines the general policy of JAWA, makes all appropriations, approves contracts for sale or purchase of water, provides for the issuance of debt, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the agency agreement or the by-laws. -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) 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. 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 $6,541,119 to JAWA for 2017. Deposits with JAWA in the amount of $953,442 represent amounts held for security for debt service. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) It. OTHER POSTEMPLOYMENT BENEFITS a. Plan Description In addition to providing the pension benefits described, the Village provides postemployment health care benefits (OPEB) for retired employees through a single -employer defined benefit plan (the Plan). The benefits, benefit levels, employee contributions, and employer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. Certain benefits are controlled by state laws and can only be changed by the Illinois Legislature. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the Plan. The Plan does not issue a separate report. The activity of the Plan is reported in the Village's governmental and business -type activities. b. Benefits Provided The Village provides pre and post -Medicare postretirement health insurance to retirees, their spouses, and dependents (enrolled at time of employee's retirement). To be eligible for benefits, the employee must qualify for retirement under one of the Village's three retirement plans. The retirees pay the blended premium. Upon a retiree becoming eligible for Medicare, the amount payable under the Village's health plan will be reduced by the amount payable under Medicare for those expenses that are covered under both. 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, 2017, retirees contributed $753,141. C. Membership At December 31, 2017 membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 80 Active employees 294 TOTAL 374 Participating employers 1 -49- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) d. Funding Policy The Village is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the Plan until retirement. e. Annual OPEB Costs and Net OPEB Obligation The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2017 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 2015 $ 682,426 $ 362,130 53.07% $ 1,243,267 2016 688,222 362,130 52.62% 1,569,359 2017 917,839 355,398 38.72% 2,131,800 The net OPEB obligation as of December 31, 2017 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 $ 913,356 54,928 (50,445) 917,839 (355,398) 562,441 1.569.359 $ 2,131,800 Funded Status and Funding Progress: The funded status and funding progress of the Plan as of December 31, 2017 was as follows: Actuarial accrued liability (AAL) $ 12,560,127 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 12,560,127 Funded ratio (actuarial value of plan assets/AAL) 0.00% Covered payroll (active plan members) $ 25,199,376 UAAL as a percentage of covered payroll 49.84% -50- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) II. 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, 2017 actuarial valuation (latest information available), the entry -age normal actuarial cost method was used. The actuarial assumptions included a 3.50% investment rate of return and an initial healthcare cost trend rate of 9.00% with an ultimate healthcare inflation rate of 5.00%. Both rates include a 3.00% inflation assumption and 4.00% 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, 2017 was 30 years. 12. EMPLOYEE RETIREMENT SYSTEMS The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent multiple -employer public employee retirement system; the Police Pension Plan which is a single -employer pension plan; and the Firefighters' Pension Plan which is also a single -employer pension plan. The benefits, benefit levels, employee contributions, and employer contributions for all three plans are governed by IL,CS and can only be amended by the Illinois General Assembly. None of the pension plans issue separate reports on the pension plans. However, IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523 or at imrf org. -51- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions Illinois Municipal Retirement Fund All employees (other than those covered by the Police Pension Plan or Firefighters' Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. For financial reporting purposes, the Village and Library participate in IMRF as a cost-sharing multiple - employer pension plan. IMRF provides two tiers of pension benefits. Employees hired prior to January 1, 2011, are eligible for Tier 1 benefits. For Tier 1 employees, pension benefits vest after eight years of service. Participating members who retire at age 55 (reduced benefits) or after age 60 (full benefits) with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire at age 62 (reduced benefits) or after age 67 (full benefits) with ten years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 12/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. Participating members are required to contribute 4.50% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund IMRF as specified by statute. The employer required contribution rate for calendar year 2017 was 11.53%. Plan Membership At December 31, 2016, IMRF membership consisted of: Inactive plan members currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members 232 162 254 TOTAL 648 The IMRF data included in the table above includes membership of both the Village and the Library. -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) 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 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 For nondisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP -2014 (base year 2012). 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 2012). The IMRF specific rates were developed from the RP -2014 Disabled Retirees Mortality Table applying the same adjustments that were applied for nondisabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP -2014 (base year 2012). The IMRF specific rates were developed from the RP -2014 Employee Mortality Table with adjustments to match current IMRF experience. -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) Discount Rate The discount rate used to measure the IMRF total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the IMRF's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Changes in the Net Pension Liability 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 Other (net transfer) Net changes BALANCES AT DECEMBER 31, 2016 (a) (b) (a) - (b) Total Plan Net Pension Fiduciary Pension Liability Net Position Liability S 91,989,499 S 80,242,038 S 11,747,461 1,768,746 - 1,768,746 6,803,558 - 6,803,558 (756,505) - (756,505) (232,520) - (232,520) - 2,031,571 (2,031,571) - 745,535 (745,535) - 51536,369 (5,536,369) (3,834,437) (3,834,437) - - 403,724 (403,724) 3,748,842 4,882,762 (1,133,920) S 95,738,341 S 85,124,800 S 10,613,541 There were changes in assumptions made since the prior measurement date. The discount rate used in the current actuarial valuation, dated December 31, 2016 is 7.50%. The discount rate used in the prior actuarial valuation, dated December 31, 2015 was 7.48%. -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 (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, 2016, the employer contributions, and the net pension liability at December 31, 2016 were $8,590,918, $1,453,487, and $7,761,683, respectively. The Library's collective shares of the net pension liability at January 1, 2016, the employer contributions, and the net pension liability at December 31, 2016 were $3,156,543, $534,295, and $2,851,858, respectively. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2017, the Village recognized pension expense of $2,615,497. At December 31, 2017, 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 $ 417,521 $ 1,157,679 880,404 172,381 1,856,899 - 4,179,715 - $ 7,334,539 $ 1,330,060 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, 2017 was $4,391,022. The Library's proportionate share of the deferred outflows and inflows of resources at December 31, 2017 was $1,613,457. The Village and the Library contributed an additional $1,343,240 and $513,659, respectively, to the plan subsequent to the measurement date of December 31, 2016 which are included in deferred outflows of resources as of December 31, 2017. -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) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources (Continued) $1,343,240 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, 2018. 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 2018 2019 2020 2021 TOTAL Discount Rate Sensitivity $ 1,506,785 730,425 729,034 81,538 $ 3,047,782 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 7.50% 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 (6.50%) or 1 percentage point higher (8.50%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.50%) (7.50%) (8.50%) Net pension liability (Village) $ 16,937,655 $ 7,761,683 $ 234,683 Net pension liability (Library) 6,223,367 2,851,858 86,229 Net pension liability (Total) $ 23,161,022 $ 10,613,541 $ 320,912 -56- 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, 2017, the Police Pension Plan membership consisted of: Inactive plan members currently receiving benefits 73 Inactive plan members entitled to but not yet receiving benefits 8 Active plan members 81 TOTAL Benefits Provided 162 The Police Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. -57- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Benefits Provided (Continued) Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Police officers' salary for pension purposes is capped at $106,800, plus the lesser of �/z of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., 1/2% for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1st after the police officer retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or 1/2 of the change in the Consumer Price Index for the preceding calendar year. Contributions Employees are required by IL,CS 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, 2017, the Village's contribution was 44.86% 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 IL,CS. 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 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. 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 Taraet of Return Fixed Income 45.00% 1.60% Large Cap Domestic Equities 38.50% 6.80% Small Cap Domestic Equities 11.00% 8.70% International Equities 5.50% 6.60% -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) 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, 2017. The International Equity equals the MSCI EAFE Index for the period December 31, 1977 through December 31, 2017. The long-term expected real rates of return are net of inflation and investment expense. Long-term returns for the asset classes are calculated on a geometric mean basis. Investment Valuations All investments are stated at fair value at December 31, 2017. 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, 2017, 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, 2017, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 14.29%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 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, 2017: Investment Maturities (in Years) Less Greater Investment Tvlle Fair Value than 1 1-5 6-10 than 10 U.S. Treasuries $ 3,999,032 $ 448,088 $ 1,712,996 $ 1,738,165 $ 99,783 U.S. agencies 6,513,197 11,686 254,091 1,045,917 5,201,503 State, local, and municipal bonds 2,046,737 49,537 246,273 105,200 1,645,727 Corporate bonds 10,620,264 698,111 6,609,650 3,138,845 173,658 TOTAL $ 23,179,230 $ 1,207,422 $ 8,823,010 $ 6,028,127 $ 7,120,671 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, 2017: 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. -61- 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, 2017 were as follows: BALANCES AT JANUARY 1, 2017 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, 2017 (a) (b) (a) - (b) Total Plan Net Pension Fiduciary Pension Liability Net Position Liability $ 110,325,665 $ 61,976,686 $ 48,348,979 1,557,284 - 1,557,284 7,951,856 - 7,951,856 (1,650,048) - (1,650,048) 385,618 - 385,618 - 31747,825 (3,747,825) - 830,240 (830,240) - 8,967,014 (8,967,014) (4,404,364) (4,404,364) - - (48,339) 48,339 -62- 3,840,346 9,092,376 (5,252,030) $ 114,166,011 $ 71,069,062 $ 43,096,949 VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Net Pension Liability (Continued) There was also a change in assumption made since the prior measurement date to reflect revised expectations with respect to mortality rates. See the schedule of changes in the employer's net pension liability and related ratios in the required supplementary information for additional 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, 2017 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2017 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 -63- 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 2018 using Scale MP -2016. Mortality rates for disabled individuals were based on the RP -2000 Disabled Mortality Table, projected from 2006 to 2018 using Scale MP -2016 The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount Rate The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Interest Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate of 7.25% as well as what the Village's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.25%) or 1 percentage point higher (8.25%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.25% (7.25% (8.25%) Net pension liability $ 56,340,206 $ 43,096,949 $ 31,230,231 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, 2017, the Village recognized police pension expense of $4,088,009. At December 31, 2017, 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 Deferred Outflows of Inflows of Resources Resources $ 39,385 $ 4,842,422 3,334,114 - - 2,772,986 $ 3,373,499 $ 7,615,408 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, 2018 $ (141,376) 2019 (141,375) 2020 (1,782,000) 2021 (1,966,418) 2022 (210.740) TOTAL $ (4,241,909) -65- 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, 2017, 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 Firefighters' Pension Plan Benefits Provided The Firefighters' Pension Plan provides retirement benefits as disability benefits. Tier 1 employees (those hired prior to January 73 161 well as death and 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held at the date of retirement. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a covered employee who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) b. 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 �/z of the annual change in the Consumer Price Index or 3% compounded annually. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., 1/2% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st after the firefighter retires or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or �/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, 2017, the Village's contribution was 46.63% 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 IL,CS. 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 -67- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Investment Policy (Continued) obligations of the State of Israel, money market mutual funds whose investments consist of obligations of the U.S. Treasury or U.S. agencies, separate accounts managed by life insurance companies, mutual funds, common and preferred stock, 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. It is the policy of the Fund to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Fund and conforming to all state and local statutes governing the investment of public funds, using the "prudent person" standard for managing the overall portfolio. The primary objectives of the policy are, in order of priority, safety of principal, risk aversion, liquidity, and return on investment. The Fund's investment policy in accordance with ILCS establishes the following target allocation across asset classes: Long -Term Expected Real Asset Class Target Rate of Return U.S. Fixed Income 35% 2.50% U.S. Equities 40% 7.50% International Equities 16% 8.50% Real Estate 9% 4.50% The long-term expected real rate of return is based on an arithmetic calculation that uses the GASB building block method. The arithmetic calculation was developed through an evaluation process overseen by the Andco Consulting Investment Policy Committee. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Investment Valuations All investments are stated at fair value at December 31, 2017. 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, 2017, 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, 2017, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 16.49%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Custodial Credit Risk -Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Fund's deposits may not be returned to it. The Fund's investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral held by the an independent third party or the Federal Reserve Bank, and evidenced by safekeeping receipts. VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Interest Rate Risk The following table presents the investments and maturities of the Fund's debt securities as of December 31, 2017: Investment Maturities (in Years) Less Greater Investment Type Fair Value than 1 1-5 6-10 than 10 U.S. Treasury $ 3,530,576 $ 298,933 $ 1,431,962 $ 1,799,681 $ - U.S. agencies 8,781,624 537 741,800 1,419,658 6,619,629 State, local and municipal bonds 481,342 50,000 272,139 159,203 - Corporate bonds 9,465,491 363,414 6,068,752 2,935,921 97,404 TOTAL $ 22,259,033 $ 712,884 $ 8,514,653 $ 6,314,463 $ 6,717,033 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, 2017: the U.S. Treasury obligations and mutual funds were valued using quoted prices in active markets for identical assets (Level 1 inputs); and U.S. agency obligations, state, local, and municipal obligations, corporate bond obligations, and investments in real estate pools were valued using quoted matrix pricing models (Level 2 inputs). Credit Risk Credit risk is the risk that the issuer of a debt security will not pay its par value upon maturity. The Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. The U.S. 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. -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 - 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 Firefighters' Pension Plan as of December 31, 2017 were as follows: BALANCES AT JANUARY 1, 2017 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, 2017 (a) (b) (a) - (b) Total Plan Net Pension Fiduciary Pension Liabilitv Net Position Liabilitv S 100,997,566 S 58,344,829 S 42,652,737 1,426,033 7,228,968 1,426,033 7,228,968 1,470,077 - 1,470,077 (572,774) - (572,774) - 3,396,834 (3,396,834) - 678,476 (678,476) - 9,323,369 (9,323,369) (5,427,385) (5,427,385) - - (50,783) 50,783 4,124,919 7,920,511 (3,795,592) S 105,122,485 S 66,265,340 S 38,857,145 -71- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Net Pension Liability (Continued) There was also a change in assumption made since the prior measurement date to reflect revised expectations with respect to mortality rates. See the schedule of changes in the employer's net pension liability and related ratios in the required supplementary information for additional 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, 2017 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2017 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 -72- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Actuarial Assumptions (Continued) Mortality rates for healthy individuals were based on the RP -2014 Mortality Table with a blue collar adjustment, projected from 2006 to 2018 using Scale MP -2016. Mortality rates for disabled individuals were based on the RP -2004 Disabled Mortality Table, projected from 2006 to 2018 using Scale MP -2016 The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount Rate The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Interest Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the Village calculated using the discount rate of 7.25% as well as what the Village's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.25%) or 1 percentage point higher (8.25%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Net pension liability $ 51,471,843 $ 38,857,145 $ 27,594,022 -73- 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, 2017, the Village recognized firefighter's pension expense of $4,675,975. At December 31, 2017, 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 $ 2,019,460 $ 1,065,019 3,906,483 490,949 - 3,360,812 $ 5,925,943 $ 4,916,780 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, 2018 $ 827,814 2019 827,815 2020 310,446 2021 (1,056,974) 2022 (28,125) Thereafter 128,187 TOTAL $ 1,009,163 -74- 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 Due to other funds Total liabilities Police Firefighters' Pension Pension Total $ 1,232,315 $ 1,068,368 $ 2,300,683 2,046,737 481,342 2,528,079 10,512,229 12,312,200 22,824,429 10,620,264 9,465,491 20,085,755 - 3,183,460 3,183,460 46,550,389 39,595,895 86,146,284 150,155 132,206 282,361 - 41,918 41,918 1.162 1.669 2.831 71,113,251 66,282,549 137,395,800 38,535 17,209 55,744 5.654 - 5.654 44,189 17,209 61,398 NET POSITION $ 71,069,062 $ 66,265,340 $ 137,334,402 -75- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) b. Fiduciary Funds Summary Financial Information (Continued) Schedule of Changes in Net Position Police Firefighters' Pension Pension Total ADDITIONS Contributions Employer $ 3,747,825 $ 3,396,834 $ 7,144,659 Employee 1,260,472 678,476 1,938,948 Total contributions 5,008,297 4,075,310 9,083,607 Invest income Net appreciation in fair value of investments 8,325,232 8,774,095 17,099,327 Interest income 763,695 640,447 1,404,142 Less investment expense (121,912) (91,173) (213,085) Net investment income 8,967,015 9,323,369 18,290,384 Total additions 13,975,312 13,398,679 27,373,991 DEDUCTIONS Administrative 48,339 50,783 99,122 Pension benefits and refunds 4,834,597 5,427,385 10,261,982 Total deductions 4.882.936 5.478.168 10.361.104 NET INCREASE 9,092,376 7,920,511 17,012,887 NET POSITION RESTRICTED FOR PENSIONS January 1 61,976,686 58,344,829 120,321,515 December 31 $ 71,069,062 $ 66,265,340 $ 137,334,402 -76- VILLAGE OF MOUNT PROSPECT, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. SUBSEQUENT EVENTS On May 1, 2018, the Village issued General Obligation Bonds, Series 2018A, in the amount of $12,100,000. A portion of the proceeds will fund infrastructure projects in the Village's water and sewer utility system. The balance of the bond proceeds from the issue will be used to fund land acquisition related to relocation and construction of a new Police Department Headquarters, Fire Department Headquarters and for capitalized interest. -77- 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, 2017 REVENUES Property taxes Other taxes Licenses, permits, and fees Intergovernmental Charges for services Fines and forfeits Investment income Miscellaneous Total revenues EXPENDITURES General government Public safety Highways and streets Health Welfare Culture and recreation Total expenditures OTHER FINANCING SOURCES (USES) Transfers (out) Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Original Final Budget Budget Actual $ 16,278,000 $ 16,278,000 $ 16,112,039 7,383,000 7,524,500 7,129,671 2,281,000 2,347,000 2,334,232 25,008,040 25,426,540 25,833,177 1,582,955 1,582,955 1,527,168 452,000 452,000 415,189 43,000 151,000 132,925 303,600 908,100 317,562 53,331,595 54,670,095 53,801,963 7,881,577 8,509,156 8,311,613 34,092,239 34,668,333 34,166,460 8,282,369 8,282,369 7,613,341 248,627 248,627 261,533 1,591,611 1,613,704 1,548,489 635,172 635,172 585,907 52,731,595 53,957,361 52,487,343 (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) $ - $ 112,734 714,620 (See independent auditor's report.) -78- 18,684,351 $ 19,398,971 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, 2017 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 $ 4,597,000 $ 4,597,000 $ 4,283,563 2,000 2,000 7,124 11,000 11,000 27,084 4,610,000 4,610,000 4,317,771 256,271 256,271 248,932 113,666 113,666 115,363 1,298 1,298 1,199 4,078,062 4,078,062 3,804,784 465 465 303 29,528 29,528 29,528 39,975 39,975 38,638 4,519,265 4,519,265 4,238,747 $ 90,735 $ 90,735 79,024 (See independent auditor's report.) -79- 1,363,621 $ 1,442,645 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFITS PLAN Last Six Fiscal Years (See independent auditor's report.) -80- (6) (2) UAAL Actuarial (4) as a Actuarial (1) Accrued Unfunded Percentage Valuation Actuarial Liability (3) AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets Entry -Age (1)/(2) (2)-(1) Payroll (4)/(5) 2012 N/A N/A N/A N/A N/A N/A 2013 S - S 7,201,300 0.00% S 7,201,300 S 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 2017 12,560,127 0.00% 12,560,127 25,199,376 49.84% N/A - Information not available. (See independent auditor's report.) -80- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND Last Three Fiscal Years FISCAL YEAR ENDED DECEMBER 31, Actuarially determined contribution Contributions in relation to the actuarially determined contribution 2015 2016 2017 $ 1,362,420 $ 1,453,487 $ 1,432,869 1,362,420 1,453,487 1,432,869 CONTRIBUTION DEFICIENCY (Excess) $ - $ - $ - Covered -employee payroll Contributions as a percentage of covered -employee payroll Notes to Required Supplementary Information $ 11,923,390 $ 12,119,270 $ 12,425,097 11.43% 11.99% 11.53% 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 27 years; the asset valuation method was five-year smoothed market; and the significant actuarial assumptions were an investment rate of return at 7.50% annually, projected salary increases assumption of 3.75% to 14.50% compounded annually and postretirement benefit increases of 3.00% compounded annually. Ultimately, this schedule should present return information for the last ten years. However, until ten years of information can be compiled, information will be presented for as many years as is available. (See independent auditor's report.) -81- w oNo N cz i c M W r- � `O 0 r- V1 0 cz "" m 00 W N 00 O O M 00 N M r cz u N M N 00 Ui 7 O I ff3 ff3 G O � T W W O1 O� O M cz � U o N 00 ff3 ff3 V ' � N cd cd W N 00 � r- M N O W y cd N l� O y cz �8 OL O N O � U N 00 + � m Vl W C, 11 U E EU 00 d N O M Ol M W � O j, O y O T o o N a W O M 3 Q. c � N l� ? N R W N ff3 ff3 .� O W O O l� M M c cd U U N Ol vi o cc, E U M N � cz-. °1 U y N p c't WO O O. U G cz cz N /r O cz .. U cd U E YE C U cz ', U u U V y 6 cz Ucz O. cz co �_ oEl a �� w�acz o ZO o O p U o U� o U U U U Z F^ cz 0-0 w M O M c cd U O� O� 00 O cz u � U U 00 N N O p U 9 O ff3 ff3 G O � T O 00 0 0 3 p 3 ff3 ff3 V ' � N cd cd W a O vi O� 00 O o r- y cz C N �O O y cz �4 i _ U a � U N � m G N cz U EU W � N � i w. w � cz 00 M a aro � Ol W Vl � Vl U W � N ff3 ff3 � O W 00 0 cz m U 00 W V) O U V M N O 00 W o W U M � � a) W 00 N W y N QO It WO O. U O G N /r p cz .. U cd U YE E i U 0 cd � V U U y 6 czcz �-•. N +�-+ �' O .O �+ W O C O V T U a. �U, m U C �' y �' 6 ^� a. N O. a. 6 cz O c Z U lu co �_ oEl O O E ri O a �� w—ct acz o ZO o O p o U� o cz 0n� VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS OTHER POSTEMPLOYMENT BENEFITS PLAN December 31, 2017 Fiscal Employer Year Contributions 2012 2013 2014 2015 2016 2017 609,856 275,814 287,447 362,130 362,130 355,398 Annual Required Contribution (ARC) $ 442,722 582,335 605,628 679,933 679,933 913,356 (See independent auditor's report.) -84- Percentage Contributed 137.75% 47.36% 47.46% 53.26% 53.26% 38.91% VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ILLINOIS MUNICIPAL RETIREMENT FUND Last Three Fiscal Years MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 Employer's proportion of net pension liability 73.13% 73.13% 73.13% Employer's proportionate share of net pension liability S 5,212,280 S 8,590,918 S 7,761,683 Employer's covered -employee payroll Employer's proportionate share of the net pension liability as a percentage of its covered -employee payroll 11,890,055 11,923,390 12,115,732 43.84% 72.05% 64.06% Plan fiduciary net position as a percentage of the total pension liability 91.93% 87.23% 88.91% 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.) -85- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND MEASUREMENT DATE DECEMBER 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 Last Four Fiscal Years 2014 2015 2016 2017 $ 1,890,407 $ 1,777,310 $ 1,732,924 $ 1,557,284 6,479,504 7,210,826 8,221,483 7,951,856 860,183 95,650 (5,201,074) (1,650,048) 4,844,398 7,268,193 29,971 385,618 (4,117,120) (4,529,962) (4,688,978) (4,404,364) 9,957,372 11,822,017 94,326 3,840,346 88,451,950 98,409,322 110,231,339 110,325,665 $ 98,409,322 $ 110,231,339 $ 110,325,665 $ 114,166,011 $ 2,924,226 $ 2,918,395 $ 3,232,887 $ 3,747,825 851,363 795,827 815,684 830,240 3,845,862 545,802 4,161,658 8,967,014 (4,117,120) (4,529,962) (4,688,978) (4,404,364) (60,382) (49,947) (44,605) (48,339) 3,443,949 (319,885) 3,476,646 9,092,376 55,375,976 58,819,925 58,500,040 61,976,686 $ 58,819,925 $ 58,500,040 $ 61,976,686 $ 71,069,062 $ 39,589,397 $ 51,731,299 $ 48,348,979 $ 43,096,949 59.77% 53.07% 56.18% 62.25% $ 7,848,795 $ 8,049,995 $ 8,276,985 $ 8,354,290 504.40% 642.60% 584.10% 515.90% Year Ended December 31, 2017 - There were changes in assumptions related to the mortality rates from December 31, 2016. Year Ended December 31, 2016 - There was a change in assumption related to the discount rate made since the prior measurement date. The discount rate used in the current actuarial valuation, dated December 31, 2016, is 7.25%. The discount rate used in the prior actuarial valuation, dated December 31, 2015, was 7.50%. There was also a change in assumption related to the projected rate for annual pay increases made since the prior measurement date. The projected rate for annual pay increases used in the current actuarial valuation, dated December 31, 2016, is 4.00%. The projected rate for annual pay increases used in the prior actuarial valuation, dated December 31, 2015, was 5.00%. There was also a change in assumption made since the prior measurement date to reflect revised expectations with respect to mortality rates. Year Ended December 31, 2015 - There was a change with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates, turnover rates, and retirement rates. Year Ended December 31, 2014 - There was a change with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates, turnover rates, and retirement rates. * The Village reported portability contributions as employee contributions in the basic financial statements, whereas the actuary has included these amounts as part of the other components of changes in plan fiduciary net position. 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.) -86- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS FIREFIGHTERS' PENSION FUND Last Four Fiscal Years MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 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 $ 1,426,033 5,780,241 6,270,507 7,296,444 7,228,968 225,575 1,603,162 (1,491,027) 1,470,077 3,234,155 7,648,623 396,832 (572,774) (4,158,988) (4,594,876) (4,981,207) (5,427,385) 6,754,819 12,442,517 2,650,852 4,124,919 79,149,378 85,904,197 98,346,714 100,997,566 $ 85,904,197 $ 98,346,714 $ 100,997,566 $ 105,122,485 $ 2,466,165 $ 2,532,317 $ 2,806,983 $ 3,396,834 644,384 606,932 668,070 678,476 3,963,252 1,806,126 3,049,538 9,323,369 (4,158,988) (4,594,876) (4,981,207) (5,427,385) (62,889) (62,136) (55,257) (50,783) 2,851,924 288,363 1,488,127 7,920,511 53,716,415 56,568,339 56,856,702 58,344,829 $ 56,568,339 $ 56,856,702 $ 58,344,829 $ 66,265,340 $ 29,335,858 $ 41,490,012 $ 42,652,737 $ 38,857,145 65.85% 57.81% 57.77% 63.04% $ 6,495,510 $ 6,441,588 $ 6,981,704 $ 7,284,199 451.60% 644.10% 610.90% 533.40% Year Ended December 31, 2017 - There were changes in assumptions related to the mortality rates from December 31, 2016. Year Ended December 31, 2016 - There was a change in assumption related to the discount rate made since the prior measurement date. The discount rate used in the current actuarial valuation, dated December 31, 2016, is 7.25%. The discount rate used in the prior actuarial valuation, dated December 31, 2015, was 7.50%. There was also a change in assumption related to the projected rate for annual pay increases made since the prior measurement date. The projected rate for annual pay increases used in the current actuarial valuation, dated December 31, 2016, is 4.00%. The projected rate for annual pay increases used in the prior actuarial valuation, dated December 31, 2015, was 5.00%. There was also a change in assumption made since the prior measurement date to reflect revised expectations with respect to mortality rates. Year Ended December 31, 2015 - There was a change with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates, turnover rates, and retirement rates. Year Ended December 31, 2014 - There was a change with respect to the actuarial assumptions from the prior year to reflect revised expectations with respect to mortality rates, turnover rates, and retirement rates. Ultimately, this schedule should present return information for the last ten years. However, until ten years of information can be compiled, information will be presented for as many years as is available. (See independent auditor's report.) -87- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND Last Four Fiscal Years FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 Annual money -weighted rate of return, net of investment expense 6.92% 0.92% 7.15% 14.29% 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 INVESTMENT RETURNS FIREFIGHTERS' PENSION FUND Last Four Fiscal Years FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 Annual money -weighted rate of return, net of investment expense 7.60% 3.38% 5.58% 16.49% 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 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2017 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: Actual Final Expenditures/ Budget/ Fund Expenses Appropriation Risk Management Fund $ 8,752,275 $ 8,441,820 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 GENERALFUND For the Year Ended December 31, 2017 Total taxes Budget 23,802,500 23,241,710 Original Final Actual TAXES Liquor licenses 180,000 Property taxes - general $ 10,089,000 $ 10,089,000 $ 9,969,346 Property taxes - police pension 3,367,000 3,367,000 3,337,700 Property taxes - firefighters' pension 2,707,000 2,707,000 2,686,526 Road and bridge property taxes 115,000 115,000 118,467 Auto rental tax 20,000 20,000 17,967 Food and beverage tax 773,000 773,000 839,472 Real estate transfer tax 1,075,000 1,190,500 1,190,331 Hotel/moteltax 300,000 300,000 249,175 Telecommunications tax 2,100,000 2,100,000 1,890,752 Home rule sales tax 1,450,000 1,450,000 1,341,253 Gas utility tax 515,000 515,000 491,142 Electronic games tax - 26,000 - Electric utility tax 1,150,000 1,150,000 1,109,579 Total taxes 23,661,000 23,802,500 23,241,710 LICENSES, PERMITS, AND FEES Liquor licenses 180,000 180,000 181,523 Business licenses 160,000 160,000 148,514 Contractor licenses 55,000 55,000 52,835 Alarm licenses 44,000 44,000 46,130 Elevator licenses 25,000 25,000 34,150 Building permit fees 550,000 550,000 557,680 Electrical permit fees 8,000 8,000 7,200 Permit penalties 1,000 1,000 - Reinspection fees 50,000 50,000 45,100 Vacant structure registration fees 2,000 2,000 11,500 Truck rental fees 1,000 1,000 2,005 Utility permit fees 4,000 4,000 4,950 Plan examination fees 7,000 7,000 15,402 Stormwater detention 10,000 10,000 - Street opening fees 2,000 2,000 100 ZBA hearing fees 15,000 15,000 16,250 Public improvement inspections 15,000 81,000 80,502 Village impact fees - - 8,100 False alarm fees 8,000 8,000 10,250 Landlord/tenant fees 300,000 300,000 294,541 Cable TV franchise 844,000 844,000 817,500 Total licenses, permits, and fees 2,281,000 2,347,000 2,334,232 INTERGOVERNMENTAL State sales tax 17,150,000 17,150,000 18,117,489 State income tax 5,543,000 5,543,000 4,975,194 State use tax 1,272,000 1,383,000 1,372,782 Charitable games tax 4,000 4,000 6,236 (This schedule is continued on the following pages.) -91- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2017 Total intergovernmental Budget 25,426,540 25,833,177 Original Final Actual INTERGOVERNMENTAL (Continued) Water and sewer service charge - Replacement taxes $ 302,000 $ 449,500 $ 449,104 Replacement taxes - road and bridge 8,000 8,000 7,032 Grant - tobacco enforcement 2,700 2,700 - Grant - body armor 6,840 6,840 6,371 Grant - NACCHO 2,000 2,000 263 Grant - SAFER 717,500 717,500 739,024 Grant - AEG Grant - 160.000 159.682 Total intergovernmental 25,008,040 25,426,540 25,833,177 CHARGES FOR SERVICES Water and sewer service charge - - 450 Maintenance of state highways 105,000 105,000 100,460 Ambulance transport fees 1,133,000 1,133,000 1,101,619 Forest River Rural FPD 53,000 53,000 52,950 Cable programming fees 27,255 27,255 - Other programs 40,500 40,500 60,346 Special detail revenue 42,000 42,000 42,239 Police training revenue 5,000 5,000 7,633 Fire training revenue 20,000 20,000 21,563 Lease payments - cell tower 141,000 141,000 122,357 General store lease 16,200 16,200 17,551 Total charges for services 1,582,955 1,582,955 1,527,168 FINES AND FORFEITS Fines - parking 250,000 250,000 254,101 Fines - local ordinances 5,000 5,000 100 Fines - code enforcement 20,000 20,000 9,859 Fines - circuit court 144,000 144,000 110,873 Fines - parental responsibility 3,000 3,000 1,050 Forfeited escrow funds 30,000 30,000 39,206 Total fines and forfeits 452,000 452,000 415,189 INVESTMENT INCOME Investment income 41,000 149,000 126,693 Interest - escrow funds 2,000 2,000 6,232 Total investment income 43,000 151,000 132,925 MISCELLANEOUS Reimburse - high school youth officer 95,500 95,500 94,955 Reimburse - Library 28,000 28,000 27,351 Shared cost - sidewalk 15,000 15,000 15,029 Shared cost - tree replacement 30,000 30,000 2,423 Reimburse - village property 15,000 15,000 4,498 (This schedule is continued on the following page.) -92- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERALFUND For the Year Ended December 31, 2017 Total miscellaneous 303,600 908,100 317,562 TOTAL REVENUES $ 53,331,595 $ 54,670,095 $ 53,801,963 (See independent auditor's report.) -93- Budget Original Final Actual MISCELLANEOUS (Continued) Other reimbursements $ 25,000 $ 25,000 $ 17,087 Human services revenue 16,000 16,000 12,270 Fire and police reports 5,000 5,000 5,755 Animal release fees 1,000 1,000 275 Subpoena fees 1,000 1,000 325 Other revenue 72.100 676.600 137.594 Total miscellaneous 303,600 908,100 317,562 TOTAL REVENUES $ 53,331,595 $ 54,670,095 $ 53,801,963 (See independent auditor's report.) -93- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2017 GENERAL GOVERNMENT Public representation - administration Village administration Finance department Community development - administration Benefit payments Total general government Budget Original Final Actual $ 173,847 $ 163,600 $ 134,039 4,224,906 4,780,126 4,730,808 2,570,392 2,570,392 2,466,917 865,651 948,257 933,069 46,781 46,781 46,780 7,881,577 8,509,156 8,311,613 PUBLIC SAFETY Community development - code enforcement 911,898 829,292 820,925 Police department 18,177,171 18,229,821 17,823,169 Fire department 15,003,170 15,609,220 15,522,366 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 34,092,239 34,668,333 34,166,460 8,282,369 8,282,369 7,613,341 8,282,369 8,282,369 7,613,341 248,627 248,627 261,533 1,133,296 1,155,389 1,117,710 458,315 458,315 430,779 1,591,611 1,613,704 1,548,489 635,172 635,172 585,907 $ 52,731,595 $ 53,957,361 $ 52,487,343 (See independent auditor's report.) -94- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2017 GENERAL GOVERNMENT Public representation - administration Mayor and Board of Trustees Personal services Employee benefits Other employee costs Contractual services Utilities Office equipment Commodities and supplies Total public representation - administration Village administration Village Manager's office Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Office and other equipment Budget Original Final Actual $ 43,524 $ 36,657 $ 37,280 11,523 8,143 7,749 5,900 5,900 4,900 105,551 105,551 75,744 449 449 410 1,800 1,800 - 5,100 5,100 7,956 173,847 163,600 134,039 424,922 424,922 467,322 151,850 151,850 191,291 21,100 21,100 12,894 82,611 82,611 58,479 3,625 3,625 3,718 6,466 6,466 5,215 200 200 - Total Village Manager's office 690,774 690,774 738,919 Legal services Contractual services 662,500 662,500 898,409 Human resources Personal services 175,917 175,917 180,078 Employee benefits 120,614 120,614 174,627 Other employee costs 69,600 69,600 48,218 Contractual services 37,650 37,650 37,644 Commodities and supplies 1,200 1,200 800 Total human resources 404,981 404,981 441,367 Information technology Personal services 543,294 543,294 543,599 Employee benefits 208,322 208,322 208,071 Other employee costs 13,864 20,364 11,773 Contractual services 768,471 768,471 608,885 Utilities 5,518 5,518 4,875 Commodities and supplies 4,645 4,645 1,008 Office and other equipment 5,760 5,760 465 Total information technology 1,549,874 1,556,374 1,378,676 (This schedule is continued on the following pages.) -95- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND GENERAL GOVERNMENT (Continued) Village administration (Continued) Communication division Communications Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total communications Television services Personal services Employee benefits Contractual services Utilities Commodities and supplies Office and other equipment Total television services Community engagement Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total communication engagement Total communication division Property acquisition and relocation expense Contractual services Village Clerk's office Administration and support Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Total Village Clerk's office Computer hardware/software Office and other equipment Total computer hardware/software Total Village administration For the Year Ended December 31, 2017 Budget Original Final Actual $ 81,601 $ 81,601 $ 82,903 41,880 41,880 44,950 2,650 2,650 2,394 77,299 77,299 59,157 1,624 1,624 1,425 205,054 205,054 190,829 61,202 61,202 59,498 31,810 31,810 28,977 29,590 29,590 24,999 1,678 1,678 1,515 4,500 4,500 4,018 22,900 22,900 18,569 151,680 151,680 137,576 61,800 68,667 48,829 30,400 33,780 24,403 8,200 8,200 1,242 71,573 71,573 84,350 920 920 785 1,381 1,381 152 174,274 184,521 159,761 531,008 541,255 488,166 503,473 503,473 142,946 142,946 84,153 75,437 75,437 35,755 1,367 1,367 1,476 31,317 31,317 23,240 839 839 758 1,082 1,082 1,092 252,988 252,988 146,474 132,781 167,781 135,324 132,781 167,781 135,324 4,224,906 4,780,126 4,730,808 (This schedule is continued on the following pages.) -96- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2017 (This schedule is continued on the following pages.) -97- Budget Original Final Actual GENERAL GOVERNMENT (Continued) Finance department Administration and support Personal services $ 148,341 $ 148,341 $ 148,339 Employee benefits 41,586 41,586 43,436 Other employee costs 28,735 28,735 20,142 Contractual services 262,322 262,322 199,538 Utilities 5,500 5,500 4,741 Commodities and supplies 20,663 20,663 15,089 Office and other equipment 673,211 673,211 676,637 Total administration and support 1,180,358 1,180,358 1,107,922 Accounting Personal services 361,627 361,627 349,979 Employee benefits 122,773 122,773 150,119 Other employee costs 1,530 1,530 - Contractual services 4,392 4,392 1,910 Commodities and supplies 16,422 16,422 7,267 Total accounting 506,744 506,744 509,275 Insurance Personal services 37,265 37,265 37,265 Employee benefits 10,578 10,578 12,216 Insurance 406,258 406,258 401,291 Total insurance 454,101 454,101 450,772 Customer service Personal services 256,132 256,132 251,268 Employee benefits 83,887 83,887 81,532 Contractual services 70,955 70,955 57,304 Other employee costs 2,205 2,205 - Commodities and supplies 16,010 16,010 8,844 Total customer service 429,189 429,189 398,948 Total finance department 2,570,392 2,570,392 2,466,917 Community development - administration Administration and support Personal services 232,909 290,922 272,413 Employee benefits 104,557 124,243 120,929 Other employee costs 4,846 7,066 4,575 Utilities 2,234 2,234 758 Commodities and supplies 1,082 1,082 328 Total administration and support 345,628 425,547 399,003 (This schedule is continued on the following pages.) -97- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2017 (This schedule is continued on the following pages.) -98- Budget Original Final Actual GENERAL GOVERNMENT (Continued) Community development - administration (Continued) Planning and zoning Personal services $ 210,905 $ 210,905 $ 204,708 Employee benefits 89,120 89,120 96,015 Other employee costs 7,747 7,747 4,894 Contractual services 24,449 26,899 38,371 Utilities 1,298 580 643 Commodities and supplies 3,924 2,192 2,275 Total planning and zoning 337,443 337,443 346,906 Economic development Personal services 37,387 40,074 77,772 Employee benefits 11,070 11,070 20,376 Other employee costs 1,623 1,623 1,188 Contractual services 132,500 132,500 87,824 Total economic development 182,580 185,267 187,160 Total community development - administration 865,651 948,257 933,069 Benefit payments Contractual services 46,781 46,781 46,780 Total benefit payments 46,781 46,781 46,780 Total general government 7,881,577 8,509,156 8,311,613 PUBLIC SAFETY Community development - code enforcement Building inspections Personal services 331,061 270,361 353,610 Employee benefits 163,124 143,438 172,245 Other employee costs 7,909 5,689 4,516 Contractual services 391,438 391,438 274,243 Utilities 9,861 9,861 8,766 Commodities and supplies 8,505 8,505 7,545 Total community development - code enforcement 911,898 829,292 820,925 Police department Administration and support Personal services 786,865 786,865 866,947 Employee benefits 4,236,887 4,236,887 4,266,050 Other employee costs 170,500 175,500 143,331 Contractual services 129,410 149,360 105,586 Utilities 33,973 33,973 27,705 Commodities and supplies 26,123 31,623 25,779 Office and other equipment 9,250 24,250 12,584 Total administration and support 5,393,008 5,438,458 5,447,982 (This schedule is continued on the following pages.) -98- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2017 PUBLIC SAFETY (Continued) Police department (Continued) Records Personal services Employee benefits Total records Patrol and traffic enforcement Personal services Employee benefits Contractual services Commodities and supplies Office and other equipment Total patrol and traffic enforcement Crime prevention and public services Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total crime prevention and public services Investigative Personal services Employee benefits Contractual services Utilities Commodities and supplies Office and other equipment Total investigative Equipment maintenance Contractual services Commodities and supplies Office and other equipment Total equipment maintenance Total police department Budget Original Final Actual $ 325,556 $ 325,556 $ 311,925 119,704 119,704 124,981 445,260 445,260 436,906 7,585,181 7,585,181 7,317,057 1,349,136 1,349,136 1,359,300 599,050 593,550 583,639 92,420 101,120 92,740 7,230 7,230 5,506 9,633,017 9,636,217 9,358,242 130,841 130,841 133,614 36,309 36,309 30,837 2,500 2,500 2,445 4,252 4,252 710 9,820 11,320 16,041 183,722 185,222 183,647 1,476,240 1,476,240 1,407,849 219,282 219,282 212,714 41,680 41,680 26,825 13,650 13,650 10,049 4,230 4,230 1,266 800 800 750 1,755,882 1,755,882 1,659,453 741,282 738,782 713,389 16,300 16,300 14,606 8.700 13.700 8.944 766,282 768,782 736,939 18,177,171 18,229,821 17,823,169 (This schedule is continued on the following pages.) -99- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2017 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 Office and other equipment Budget Original Final Actual $ 643,488 $ 643,488 $ 663,456 3,720,719 3,821,719 3,818,296 93,360 93,360 59,906 49,590 49,720 51,773 11,015 11,270 8,930 1.350 1.795 1.487 4,519,522 4,621,352 4,603,848 7,250,928 7,583,928 7,508,462 1,215,768 1,215,768 1,296,726 90,375 82,375 79,765 184,238 186,793 182,184 15,270 15,970 14,559 107,817 282,982 277,268 Total fire department operations 8,864,396 9,367,816 9,358,964 Fire prevention 47,413 3,000 825 Personal services 270,708 264,708 256,170 Employee benefits 115,465 115,465 108,442 Other employee costs 5,850 5,850 4,449 Contractual services 10,500 10,500 9,768 Commodities and supplies 12,020 11,620 11,851 Total fire prevention 414,543 408,143 390,680 Communications Contractual services 3,670 3,670 2,184 Utilities 62,860 62,860 51,197 Commodities and supplies 1,590 1,590 1,429 Office and other equipment 15,650 16,850 15,733 Total communications Equipment maintenance Contractual services Total equipment maintenance Emergency preparedness Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total emergency preparedness 83,770 84,970 70,543 864,637 864,637 864,637 864,637 864,637 864,637 128,486 134,486 145,301 49,872 49,872 47,413 3,000 825 940 4,000 4,000 3,352 6,520 8,695 8,228 191,878 197,878 205,234 (This schedule is continued on the following pages.) -100- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2017 Total administration Maintenance - public buildings Personal services Employee benefits Contractual services Utilities Commodities and supplies Other expenditures Total maintenance - public buildings 151,513 151,513 183,159 448,531 Budget 453,070 159,427 159,427 Original Final Actual 302,497 54,331 PUBLIC SAFETY (Continued) 13,508 123,351 123,351 Fire department (Continued) 12,092 12,092 4,704 Paid on call Personal services $ 26,252 $ 26,252 $ 11,759 Employee benefits 1,522 1,522 901 Other employee costs 11,150 11,150 4,285 Office and other equipment 1,660 1,660 1,660 Total paid on call 40,584 40,584 18,605 Computer hardware and software Capital expenditure 23,840 23,840 9,855 Total fire department 15,003,170 15,609,220 15,522,366 Total public safety 34,092,239 34,668,333 34,166,460 HIGHWAYS AND STREETS Public works department Administration and support Personal services 272,531 272,531 230,518 Employee benefits 171,700 171,700 162,312 Other employee costs 30,879 30,879 30,470 Contractual services 1,117,520 1,117,520 1,114,579 Utilities 14,744 14,744 12,714 Commodities and supplies 15,713 15,713 17,228 Office and other equipment 1,573 1,573 1,535 Total administration and support 1,624,660 1,624,660 1,569,356 Street and buildings division Administration Personal services 101,781 101,781 107,602 Employee benefits 45,462 45,462 72,333 Utilities 4,000 4,000 3,224 Commodities and supplies 270 270 - Total administration Maintenance - public buildings Personal services Employee benefits Contractual services Utilities Commodities and supplies Other expenditures Total maintenance - public buildings 151,513 151,513 183,159 448,531 448,531 453,070 159,427 159,427 180,430 376,011 376,011 302,497 54,331 54,331 13,508 123,351 123,351 110,201 12,092 12,092 4,704 1,173,743 1,173,743 1,064,410 (This schedule is continued on the following pages.) -101 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2017 (This schedule is continued on the following pages.) -102- Budget Original Final Actual HIGHWAYS AND STREETS (Continued) Public works department (Continued) Street and buildings division (Continued) Street maintenance Personal services $ 132,850 $ 132,850 $ 118,729 Employee benefits 49,547 49,547 47,653 Contractual services 465,896 465,896 289,445 Commodities and supplies 163,105 163,105 136,329 Total street maintenance 811,398 811,398 592,156 Snow removal Personal services 332,695 332,695 307,937 Employee benefits 124,742 124,742 121,753 Contractual services 124,867 124,867 75,297 Commodities and supplies 13,957 13,957 13,077 Office and other equipment 15,918 15,918 11,539 Total snow removal 612,179 612,179 529,603 Storm sewer/basin maintenance Personal services 71,196 71,196 63,913 Employee benefits 23,662 23,662 21,064 Contractual services 12,634 12,634 9,380 Commodities and supplies 7,828 7,828 7,799 Total storm sewer/basin maintenance 115,320 115,320 102,156 Maintenance of state highways Personal services 32,128 32,128 30,184 Employee benefits 13,271 13,271 12,169 Contractual services 19,204 19,204 15,859 Commodities and supplies 31,048 31,048 20,674 Total maintenance of state highways 95,651 95,651 78,886 Traffic sign maintenance Personal services 86,773 86,773 85,385 Employee benefits 30,051 30,051 30,721 Commodities and supplies 24,999 24,999 24,915 Total traffic sign maintenance 141,823 141,823 141,021 Total street and buildings division 3,101,627 3,101,627 2,691,391 Forestry division Administration and support Personal services 104,011 104,011 98,605 Employee benefits 35,897 35,897 33,449 Commodities and supplies 450 450 270 Total administration and support 140,358 140,358 132,324 (This schedule is continued on the following pages.) -102- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND 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 Total forestry program Public grounds beautification Personal services Employee benefits Contractual services Commodities and supplies Total public grounds beautification Total forestry division Engineering division Engineering services Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies 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 For the Year Ended December 31, 2017 Budget Original Final Actual 264,292 $ 264,292 $ 260,240 95,056 95,056 92,446 142,777 142,777 126,061 9,369 9,369 9,363 48.168 48.168 43.358 559,662 559,662 531,468 348,537 348,537 341,865 143,907 143,907 140,141 6,336 6,336 6,336 455,420 455,420 407,729 3,356 3,356 3,791 11,583 11,583 11,151 969,139 969,139 911,013 29,037 29,037 28,103 9,493 9,493 9,439 2,598 2,598 949 34,844 34,844 34,182 75,972 75,972 72,673 1,745,131 1,745,131 1,647,478 645,042 645,042 630,954 217,713 217,713 224,525 5,346 5,346 5,414 102,752 102,752 107,234 5,200 5,200 5,458 5,743 5,743 5,581 2.361 2.361 1.513 984,157 984,157 980,679 128,902 128,902 125,580 49,233 49,233 55,288 16,469 16,469 15,649 72,000 72,000 64,786 26,990 26,990 22,341 293,594 293,594 283,644 1,277,751 1,277,751 1,264,323 (This schedule is continued on the following pages.) -103- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND 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 WELFARE Human services department Administration and support Personal services Employee benefits Other employee costs Contractual services Utilities Commodities and supplies Office and other equipment For the Year Ended December 31, 2017 Budget Original Final Actual $ 250,200 $ 250,200 $ 233,480 283,000 283,000 207,313 533,200 533,200 440,793 8,282,369 8,282,369 7,613,341 157,070 157,070 154,716 76,637 76,637 75,198 1,423 1,423 540 9,164 9,164 29,503 1,935 1,935 606 2,398 2,398 970 248,627 248,627 261,533 141,866 141,866 147,808 82,598 82,598 89,455 1,645 1,645 808 24,088 45,028 36,515 7,030 7,030 4,781 3,281 4,434 2,779 514 514 387 Total administration and support 261,022 283,115 282,533 Social services 49,084 819 819 Personal services 224,553 224,553 216,816 Employee benefits 83,411 83,411 79,715 Other employee costs 2,897 2,897 2,405 Commodities and supplies 520 520 185 Total social services Nursing/health services Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total nursing/health services 311,381 311,381 299,121 114,318 114,318 110,129 47,645 47,645 49,084 819 819 593 411 411 - 4,588 4,588 3,152 167,781 167,781 162,958 (This schedule is continued on the following pages.) -104- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2017 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 $ 205,215 $ 205,215 $ 202,520 83,600 83,600 79,834 1,968 1,968 1,460 97,250 97,250 85,494 2,690 2,690 2,640 2,389 2,389 1,150 393,112 393,112 373,098 1,133,296 1,155,389 1,117,710 268,828 268,828 247,593 108,761 108,761 111,348 5,295 5,295 1,255 65,211 65,211 67,164 5,298 5,298 606 4,922 4,922 2,813 458,315 458,315 430,779 1,591,611 1,613,704 1,548,489 155,230 155,230 179,837 7,000 7,000 4,035 162,230 162,230 183,872 156,058 156,058 134,002 50,590 50,590 40,622 59,353 59,353 41,746 40,554 40,554 31,279 306,555 306,555 247,649 19,800 19,800 21,040 35,000 35,000 30,212 54,800 54,800 51,252 (This schedule is continued on the following page.) -105- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2017 CULTURE AND RECREATION (Continued) public relations - community and civic services (Continued) Holiday decorations Personal services Employee benefits Contractual services Commodities and supplies Total holiday decorations Blood drive program Personal services Employee benefits Commodities and supplies Total blood drive program Total culture and recreation 0tell W.VN0MwNO11NI10.700 Budget Original Final Actual $ 10,198 $ 10,198 $ 8,152 2,845 2,845 2,435 71,726 71,726 66,580 23,272 23,272 23,212 108,041 108,041 100,379 1,844 1,844 1,843 142 142 141 1,560 1,560 771 3,546 3,546 2,755 635,172 635,172 585,907 $ 52,731,595 $ 53,957,361 $ 52,487,343 (See independent auditor's report.) -106- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL REFUSE DISPOSAL FUND SPECIAL REVENUE FUND For the Year Ended December 31, 2017 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 $ 3,202,545 955,000 955,000 946,140 36,000 36,000 31,798 6,000 6,000 6,832 198,000 198,000 95,548 205,000 205,000 - 1,000 1,000 700 4,597,000 4,597,000 4,283,563 2,000 2,000 7,124 11,000 11,000 27,084 $ 4,610,000 $ 4,610,000 $ 4,317,771 (See independent auditor's report.) -107- 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, 2017 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 NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 2,284,000 $ 2,284,000 $ 2,284,000 1,002,092 1,002,092 1,002,092 100 100 5,393 1,642,300 1,642,300 1,621,718 4,928,492 4,928,492 4,913,203 3,378,903 3,378,903 3,518,904 1,543,110 1,543,110 1,378,256 4,922,013 4,922,013 4,897,160 $ 6,479 $ 6,479 16,043 (See independent auditor's report.) -108- 168,152 $ 184,195 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. 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, 2017 Special Capital Revenue Projects Total ASSETS Cash and investments S 8,748,239 S 3,209,472 S 11,957,711 Receivables Other taxes 209,724 1,058,450 1,268,174 Other 95,094 - 95,094 Due from other governments 506,518 - 506,518 Prepaid items 606 - 606 TOTAL ASSETS S 9,560,181 S 41267,922 S 13,828,103 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable S 1,682,689 S 438,675 S 2,121,364 Retainage payable 2,504 162,841 165,345 Due to other funds - 87,192 87,192 Unearned revenue 499,036 - 499,036 Total liabilities 2,184,229 688,708 2,872,937 FUND BALANCES Nonspendable Prepaid items 606 - 606 Restricted Highways and streets 6,688,899 - 6,688,899 Public safety - police 334,030 - 334,030 Public safety - fire 352,417 - 352,417 Assigned Capital projects - 3,579,214 3,579,214 Total fund balances 7,375,952 3,579,214 10,955,166 TOTAL LIABILITIES AND FUND BALANCES S 9,560,181 S 41267,922 S 13,828,103 (See independent auditor's report.) -109- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2017 REVENUES Other taxes Licenses, permits, and fees Intergovernmental Investment income Other reimbursements Miscellaneous Total revenues EXPENDITURES Current General government Public safety Highways and streets Welfare Capital outlay Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES Special Capital Revenue Projects Total $ 1,527,953 $ 3,728,382 $ 5,256,335 - 1,648,265 1,648,265 1,710,753 33,664 1,744,417 27,991 23,562 51,553 - 19,824 19,824 159,968 87,738 247,706 3,426,665 5,541,435 8,968,100 1,749,291 - 1,749,291 112,602 - 112,602 1,148,795 - 1,148,795 404,566 - 404,566 - 5,786,667 5,786,667 3,415,254 5,786,667 9,201,921 11,411 (245,232) (233,821) OTHER FINANCING SOURCES (USES) Issuance of debt 4,815,000 - 4,815,000 Premium on issuance of debt 115,835 - 115,835 Transfers in - 600,000 600,000 Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 4,930,835 600,000 5,530,835 4,942,246 354,768 5,297,014 2,433,706 3,224,446 5,658,152 $ 7,375,952 $ 3,579,214 $ 10,955,166 (See independent auditor's report.) - 110 - VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2017 Community Federal Motor Development Asset Equitable Fuel Tax Block Grant Seizure Share ASSETS Cash and investments $ 2,695,243 $ 24,583 $ 180,542 $ 20,194 Receivables Other taxes 119,690 - - - Other 1,170 - - - Due from other governments 9,247 495,820 1,451 - Prepaid items - - - - TOTAL ASSETS $ 2,825,350 $ 520,403 $ 181,993 $ 20,194 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 80,878 $ 20,633 $ 9,085 $ - Retainage payable - 734 - - Unearned revenue - 499,036 - - Total liabilities 80,878 520,403 9,085 - FUND BALANCES Nonspendable Prepaid items - - - - Restricted Highways and streets 2,744,472 - - - Public safety - police - - 172,908 20,194 Public safety - fire - - - - Total fund balances 2,744,472 - 172,908 20,194 TOTAL LIABILITIES AND FUND BALANCES $ 2,825,350 $ 520,403 $ 181,993 $ 20,194 Foreign DUI Fire Fines Insurance Business Prospect/Main District TIF Total $ 137,347 $ 384,935 $ 1,363,957 $ 3,581 3,257 6 90,034 69,122 3,941,438 $ 8,748,239 - 209,724 17,964 95,094 - 506,518 600 606 $ 140,928 $ 388,198 $ 1,523,113 $ 3,960,002 $ 9,560,181 $ - $ 35,775 $ 1,523,113 $ 13,205 $ 1,682,689 - - 1,770 2,504 - - - 499,036 35,775 1,523,113 14,975 2,184,229 6 - 600 606 - - - 3,944,427 6,688,899 140,928 - - - 334,030 - 352,417 - - 352,417 140,928 352,423 - 3,945,027 7,375,952 $ 140,928 $ 388,198 $ 1,523,113 $ 3,960,002 $ 9,560,181 (See independent auditor's report.) - 112 - 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, 2017 Community Federal Motor Development Asset Equitable Fuel Tax Block Grant Seizure Share REVENUES Taxes $ - $ - $ - $ - Intergovernmental 1,381,615 273,344 29,172 - Investment income 17,424 - 880 181 Miscellaneous 28,746 131,222 - - Total revenues 1,427,785 404,566 30,052 181 EXPENDITURES Current General government - - - - Public safety - - 30,223 - Highways and streets 1,148,795 - - - Welfare - 404,566 - - Total expenditures 1,148,795 404,566 30,223 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 278,990 - (171) 181 OTHER FINANCING SOURCES (USES) Issuance of debt - - - - Premium on issuance of debt - - - - Total other financing sources (uses) - - - - NET CHANGE IN FUND BALANCES 278,990 - (171) 181 FUND BALANCES (DEFICIT), JANUARY 1 2,465,482 - 173,079 20,013 FUND BALANCES, DECEMBER 31 $ 2,744,472 $ - $ 172,908 $ 20,194 - 113 - Foreign DUI Fire Business Prospect/Main Fines Insurance District TIF Total $ - $ 83,092 $ 1,444,861 $ - $ 1,527,953 26,622 - - - 1,710,753 503 2,386 6,310 307 27,991 - - - - 159,968 27,125 85,478 1,451,171 307 3,426,665 - - 1,451,171 298,120 1,749,291 7,646 74,733 - - 112,602 - - - - 1,148,795 - - - - 404,566 7,646 74,733 1,451,171 298,120 3,415,254 19.479 10.745 - (297.813) 11.411 - 4,815,000 4,815,000 - 115,835 115,835 - - - 4,930,835 4,930,835 19,479 10,745 - 4,633,022 4,942,246 121,449 341,678 - (687,995) 2,433,706 $ 140,928 $ 352,423 $ - $ 3,945,027 $ 7,375,952 (See independent auditor's report.) - 114 - 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, 2017 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 $ 1,400,000 $ 1,400,000 $ 1,381,615 4,000 4,000 17,424 15,000 15,000 28,746 1,419,000 1,419,000 1,427,785 1,897,071 1,947,071 1,148,795 1,897,071 1,947,071 1,148,795 $ (478,071) $ (528,071) 278,990 (See independent auditor's report.) -115- 2,465,482 $ 2,744,472 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, 2017 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 Infrastructure Total street improvement projects TOTAL EXPENDITURES Budget Original Final Actual $ 172,566 $ 172,566 $ 170,054 172,566 172,566 170,054 79,591 79,591 73,938 471,518 471,518 82,265 551,109 551,109 156,203 94,031 94,031 86,397 162,365 162,365 149,800 256,396 256,396 236,197 917,000 967,000 586,341 917,000 967,000 586,341 $ 1,897,071 $ 1,947,071 $ 1,148,795 (See independent auditor's report.) - 116 - 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, 2017 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 Original Final Actual $ 530,921 $ 554,718 $ 273,344 60,000 60,000 131,222 590,921 614,718 404,566 48,247 48,247 47,420 44,000 67,797 56,230 498,674 498,674 300,916 590,921 614,718 404,566 (See independent auditor's report.) - 117 - 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, 2017 WELFARE Administration and support Personal services Employee benefits Other employee costs Contractual services Commodities and supplies Total administration and support Community programs Contractual services Total community programs Residential rehabilitation Personal services Employee benefits Contractual services Total residential rehabilitation TOTAL EXPENDITURES Budget Original Final Actual $ 27,291 $ 27,291 $ 27,857 13,478 13,478 17,233 1,082 1,082 104 5,856 5,856 2,226 540 540 - 48,247 48,247 47,420 44,000 67,797 56,230 44,000 67,797 56,230 23,880 23,880 8,427 11,794 11,794 1,589 463,000 463,000 290,900 498,674 498,674 300,916 $ 590,921 $ 614,718 $ 404,566 (See independent auditor's report.) - 118- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ASSET SEIZURE FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2017 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 $ 10,000 $ 10,000 $ 29,172 200 200 880 10,200 10,200 30,052 1,000 16,000 12,858 3,000 3,000 - 3,000 17,365 17,365 7,000 36,365 30,223 $ 3,200 $ (26,165) (171) (See independent auditor's report.) - 119 - 173,079 $ 172,908 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, 2017 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 $ - 100 100 181 200 200 181 1,000 1,000 - 1,000 1,000 - 2,000 2,000 - $ (1,800) $ (1,800) 181 (See independent auditor's report.) -120- 20,013 $ 20,194 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, 2017 REVENUES Intergovernmental DUI fines Investment income Total revenues EXPENDITURES Public safety Patrol and traffic enforcement Other employee costs Equipment Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 20,000 $ 20,000 $ 26,622 100 100 503 20,100 20,100 27,125 10,000 10,000 6,729 10,000 10,000 917 20,000 20,000 7,646 $ 100 $ 100 19,479 (See independent auditor's report.) - 121 - 121,449 $ 140,928 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, 2017 REVENUES Other taxes Foreign fire insurance tax Investment income Total revenues EXPENDITURES Public safety Insurance Training 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 $ 85,000 $ 85,000 $ 83,092 1,000 1,000 2,386 86,000 86,000 85,478 500 500 - 15,000 15,000 4,054 15,000 15,000 8,457 5,000 5,000 6,013 30,000 56,500 56,209 65,500 92,000 74,733 $ 20,500 $ (6,000) 10,745 (See independent auditor's report.) -122- 341,678 $ 352,423 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, 2017 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 NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Budget Original Final Actual $ 440,000 $ 440,000 $ 382,694 230,000 230,000 230,752 110,000 110,000 104,034 370,000 370,000 322,936 570,000 570,000 404,445 1,000 1,000 6,310 1,721,000 1,721,000 1,451,171 1,721,000 1,721,000 1,451,171 1,721,000 1,721,000 1,451,171 (See independent auditor's report.) -123- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PROSPECT/MAIN TIF FUND NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2017 REVENUES Taxes Property Interest income Total revenues EXPENDITURES General government Contractual services Other expenditures Debt service Debt issuance costs Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES Budget Original Final Actual $ - $ 275,000 $ - - - 307 - 275,000 307 - 295,000 164,293 - 400,000 59,630 - - 74,197 - 695,000 298,120 - (420,000) (297,813) OTHER FINANCING SOURCES (USES) Issuance of debt - - 4,815,000 Premium on issuance of debt - - 115,835 Proceeds from sale of capital assets - 700,000 - Total other financing sources (uses) - 700,000 4,930,835 NET CHANGE IN FUND BALANCE FUND BALANCE (DEFICIT), JANUARY 1 FUND BALANCE, DECEMBER 31 $ - $ 280,000 4,633,022 (See independent auditor's report.) -124- (687,995) $ 3,945,027 VILLAGE OF MOUNT PROSPECT, ILLINOIS ASSETS Cash and investments Receivables Othertaxes TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Due to other funds Retainage payable Total liabilities FUND BALANCES Unrestricted Assigned Capital projects Total fund balances COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS December 31, 2017 Flood Street Capital Control Improvement Improvement Construction Construction Total $ 1,446,155 $ 1,763,317 $ - $ 3,209,472 430,256 133,528 494,666 1,058,450 $ 1,876,411 $ 1,896,845 $ 494,666 $ 4,267,922 $ 97,801 $ 45,569 $ 295,305 $ 438,675 - - 87,192 87,192 79,167 32,736 50,938 162,841 176,968 78,305 433,435 688,708 1,699,443 1,818,540 61,231 3,579,214 1,699,443 1,818,540 61,231 3,579,214 TOTAL LIABILITIES AND FUND BALANCES $ 1,876,411 $ 1,896,845 $ 494,666 $ 4,267,922 (See independent auditor's report.) -125- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 16410764105 KeselW:A91r.111N0WON IMMtm1110 For the Year Ended December 31, 2017 REVENUES Taxes Other Licenses, permits, and fees Intergovernmental Investment income Other reimbursements Miscellaneous Total revenues EXPENDITURES Capital outlay Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES Flood Street Capital Control Improvement Improvement Construction Construction Total S 1,341,253 S 339,161 S 2,047,968 S 3,728,382 - - 1,648,265 1,648,265 33,664 - - 33,664 9,118 10,271 4,173 23,562 - 19,824 - 19,824 33,900 26,783 27,055 87,738 1,417,935 396,039 3,727,461 5,541,435 1,269,450 596,631 3,920,586 5,786,667 1,269,450 596,631 3,920,586 5,786,667 148,485 (200,592) (193,125) (245,232) OTHER FINANCING SOURCES (USES) Transfers in 600,000 - - 600,000 NET CHANGE IN FUND BALANCES 748,485 (200,592) (193,125) 354,768 FUND BALANCES, JANUARY 1 950,958 2,019,132 254,356 3,224,446 FUND BALANCES, DECEMBER 31 S 1,699,443 S 1,818,540 S 61,231 S 3,579,214 (See independent auditor's report.) -126- 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, 2017 REVENUES Other taxes Home rule sales tax Investment income Intergovernmental Miscellaneous Other Donations Total revenues EXPENDITURES Capital outlay Equipment Building improvements Infrastructure Contractual services Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES Budget Original Final Actual $ 1,450,000 $ 1,450,000 $ 1,341,253 5,000 5,000 9,118 - 34,000 33,664 - 34,000 33,900 10,000 10,000 - 1,465,000 1,533,000 1,417,935 864,392 998,531 716,666 329,500 379,500 327,704 1,055,000 1,490,832 225,080 - 25,000 - 2,248,892 2,893,863 1,269,450 (783,892) (1,360,863) 148,485 OTHER FINANCING SOURCES (USES) Transfers in 600,000 600,000 600,000 NET CHANGE IN FUND BALANCE FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 $ (183,892) $ (760,863) 748,485 (See independent auditor's report.) -127- 950,958 $ 1,699,443 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL CAPITAL IMPROVEMENT FUND NONMAJOR CAPITAL PROJECTS FUNDS For the Year Ended December 31, 2017 EXPENDITURES Equipment Computer software - Microsoft Office Suite Wireless connectivity - other public facilities Telephone system -village hall Desktop virtualization Cable TV equipment Paramedic equipment Police department software Water recovery equipment Radio equipment - police/fire/public works Total equipment Building improvements Salt storage building HVAC replacements Contractual services - brick sidewalks Electrical panel Other public building improvements Total building improvements Infrastructure D/T Streetscape Program Residential street lights Corridor improvements Jogging path Kensington road improvement Detention pond improvements Downtown pedestrian improvement Parking deck maintenance Bike route sign project Total infrastructure Contractual services Needs studies - traffic study/improvements Total contractual services TOTAL EXPENDITURES Budget Original Final Actual $ - $ 77,139 $ 74,212 52,000 52,000 - - 27,000 9,985 - 30,000 10,177 60,650 60,650 43,449 514,495 356,000 354,349 110,000 110,000 - - 32,000 31,976 127,247 253,742 192,518 864,392 998,531 716,666 - - 16,044 25,000 75,000 16,745 76,500 76,500 75,000 90,000 90,000 82,999 138,000 138,000 136,916 329,500 379,500 327,704 - 88,213 19,311 75,000 75,000 43,819 200,000 200,000 - - 205,339 46,273 - 88,086 - 280,000 310,000 20,047 400,000 400,000 19,899 100,000 100,000 60,749 - 24,194 14,982 1,055,000 1,490,832 225,080 - 25,000 - - 25.000 $ 2,248,892 $ 2,893,863 $ 1,269,450 (See independent auditor's report.) -128- 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, 2017 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 $ 450,000 $ 450,000 $ 339,161 40,000 40,000 26,783 - - 19,824 6,000 6,000 10,271 496,000 496,000 396,039 788,042 921,314 594,274 7,702 7,702 2,357 795,744 929,016 596,631 $ (299,744) $ (433,016) (200,592) (See independent auditor's report.) -129- 2,019,132 $ 1,818,540 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, 2017 CAPITAL OUTLAY Public improvements Infrastructure Levee repairs Culvert and ditch Levee supplies Creek bank stabilization Creek tree trimming Private property drainage Storm sewer inspection program Levee 37 Storm sewer improvements Total infrastructure Other Electricity Residential reimbursements Total other TOTAL EXPENDITURES Budget Original Final Actual $ 42,840 $ 42,840 $ 25,938 30,000 30,000 29,112 5,202 5,202 4,935 25,000 25,000 3,656 25,000 25,000 24,808 100,000 100,000 92,431 100,000 100,000 46,225 100,000 100,000 49,454 360,000 493,272 317,715 788,042 921,314 594,274 2,500 2,500 1,917 5,202 5,202 440 7,702 7,702 2,357 $ 795,744 $ 929,016 $ 596,631 (See independent auditor's report.) -130- 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, 2017 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 $ 1,450,000 $ 1,450,000 $ 1,341,253 675,000 707,000 706,715 1,670,000 1,670,000 1,648,265 2,000 2,000 4,173 50,000 50,000 27,055 3,847,000 3,879,000 3,727,461 40,000 40,000 37,076 3,972,000 3,972,000 3,883,510 4,012,000 4,012,000 3,920,586 $ (165,000) $ (133,000) (193,125) (See independent auditor's report.) -131 - 254,356 $ 61,231 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, 2017 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Administration and maintenance Depreciation Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Property taxes Loss on the sale of capital assets Interest and fiscal charges Investment income Other income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual S 13,896,000 S 13,896,000 S 13,395,619 13,896,000 13,896,000 13,395,619 14,918,542 15,033,878 13,548,366 - - 681,477 14,918,542 15,033,878 14,229,843 (1,022,542) (1,137,878) (834,224) 1,530,000 1,530,000 1,514,452 - - (2,381) - - (75,893) 5,000 5,000 22,453 85,000 85,000 92,905 1,620,000 1,620,000 1,551,536 S 597,458 S 482,122 717,312 (See independent auditor's report.) -132- 40,610,650 S 41,327,962 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, 2017 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 $ 10,964,000 $ 10,964,000 $ 10,546,653 2,110,000 2,110,000 2,044,524 682,000 682,000 654,601 80,000 80,000 81,478 15,000 15,000 17,220 25,000 25,000 23,900 20,000 20,000 21,392 - - 5,851 $ 13,896,000 $ 13,896,000 $ 13,395,619 (See independent auditor's report.) -133- 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, 2017 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 $ 562,755 $ 562,755 $ 524,783 272,831 272,831 318,687 42,404 42,404 40,313 191,637 191,637 231,574 49,673 49,673 50,642 10 0, 04 2 10 0, 04 2 10 0, 04 2 13,022 13,022 12,087 12,335 12,335 11,733 1,244,699 1,244,699 1,289,861 171,405 171,405 163,496 79,128 79,128 94,895 17,509 17,509 6,271 6,367 6,367 4,153 1,592 1,592 1,555 276,001 276,001 270,370 69,071 69,071 58,513 21,438 21,438 26,677 36,605 36,605 36,513 6,276 6,276 6,272 133,390 133,390 127,975 445,602 445,602 406,793 166,670 166,670 203,972 177,740 177,740 112,013 90,203 90,203 57,537 83,648 83,648 42,070 963,863 963,863 822,385 (This schedule is continued on the following pages.) -134- 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, 2017 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 $ 309,244 $ 309,244 $ 284,013 98,631 98,631 118,884 278,592 258,592 200,377 78,893 78,893 44,932 1,040 1,040 326 766,400 746,400 648,532 277,687 277,687 262,486 93,690 93,690 120,241 47,443 47,443 43,644 106,812 106,812 79,718 525,632 525,632 506,089 191,628 191,628 191,071 68,817 68,817 85,504 113,358 113,358 85,480 3,303 3,303 1,054 30,000 50,000 49,143 407,106 427,106 412,252 965,576 965,576 965,576 291,348 291,348 221,242 103,465 103,465 116,495 215,739 215,739 144,258 23,929 23,929 22,682 28,444 28,444 21,665 662,925 662,925 526,342 (This schedule is continued on the following page.) -135- 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, 2017 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 $ 1,243,950 $ 1,499,286 $ 1,248,136 (650,000) (790,000) (622,060) 593,950 709,286 626,076 1,700,000 1,700,000 991,597 (179,000) (179,000) (179,941) 1,521,000 1,521,000 811,656 70,000 70,000 67,128 70,000 70,000 67,128 6,788,000 6,788,000 6,474,124 6,788,000 6,788,000 6,474,124 14,918,542 15,033,878 13,548,366 681,477 $ 14,918,542 $ 15,033,878 $ 14,229,843 (See independent auditor's report.) -136- NONMAJOR ENTERPRISE FUNDS Parking System Revenue Fund - to account for the provision of public parking services with fees shared with the commuter railroad. All activities are accounted for including administration, operations, maintenance, and collection. Village Parking System - to account for the provision of village -owned public parking services including the Village Hall parking deck and leased commuter spaces. All activities are accounted for including administration, operations, maintenance, financing, related debt service, and billing and collection. VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS December 31, 2017 Parking Village System Parking Revenue System Total CURRENT ASSETS Cash and investments $ 178,066 S 353,557 S 531,623 Total current assets 178,066 353,557 531,623 CAPITAL ASSETS Capital assets not being depreciated - 232,354 232,354 Capital assets being depreciated, cost 364,800 - 364,800 Accumulated depreciation (364,800) - (364,800) Net capital assets - 232,354 232,354 Total assets 178,066 585,911 763,977 CURRENT LIABILITIES Accounts payable 10,872 1,894 12,766 Accrued payroll 1,030 1,407 2,437 Unearned revenues 15,360 18,915 34,275 Compensated absences payable 507 673 1,180 Total current liabilities 27,769 22,889 50,658 LONG-TERM LIABILITIES Compensated absences payable 2,027 2,693 4,720 Net other postemployment benefits obligation 809 3,090 3,899 Total long-term liabilities 2,836 5,783 8,619 Total liabilities 30,605 28,672 59,277 NET POSITION Investment in capital assets - 232,354 232,354 Unrestricted 147,461 324,885 472,346 TOTAL NET POSITION S 147,461 S 557,239 S 704,700 (See independent auditor's report.) -137- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2017 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 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 $ 154,564 S 178,086 S 332,650 - 6,661 6,661 4 4 1,317 2,682 3,999 155,881 187,433 343,314 149,203 80,670 229,873 149,203 80,670 229,873 6,678 106,763 113,441 810 2,071 2,881 810 2,071 2,881 7,488 108,834 116,322 139,973 448,405 588,378 S 147,461 S 557,239 S 704,700 (See independent auditor's report.) -138- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2017 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 None Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES None Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Investment income Net cash from investing activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 Parking Village System Parking Revenue System Total $ 152,484 $ 180,162 $ 332,646 1,317 2,686 4,003 (111,802) (30,021) (141,823) (39,300) (53,426) (92,726) 2,699 99,401 102,100 810 2,071 2,881 810 2,071 2,881 3,509 101,472 104,981 174,557 253,703 428,260 $ 178,066 $ 355,175 $ 533,241 (This statement is continued on the following page.) -139- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2017 RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income 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 System Total $ 6,678 $ 106,763 $ 113,441 (1,126) (7,828) (8,954) 537 735 1,272 (1,310) 2,698 1,388 (2,080) (4,585) (6,665) $ 2,699 $ 97,783 $ 100,482 (See independent auditor's report.) -140- 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, 2017 OPERATING REVENUES Charges for services Parking fees 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 S 161,000 S 161,000 S 154,564 - - 1,317 161,000 161,000 155,881 163,759 163,759 149,203 163,759 163,759 149,203 (2,759) (2,759) 6,678 810 810 S (2,759) S (2,759) 7,488 (See independent auditor's report.) - 141 - 139,973 S 147,461 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, 2017 ADMINISTRATION, MAINTENANCE, AND IMPROVEMENTS Personal services Employee benefits Contractual services Utilities Insurance Commodities and supplies TOTAL OPERATING EXPENSES Budget Original Final Actual $ 27,691 $ 27,691 $ 27,054 13,104 13,104 11,473 100,040 100,040 99,830 11,165 11,165 6,246 1,382 1,382 1,382 10,377 10,377 3,218 $ 163,759 $ 163,759 $ 149,203 (See independent auditor's report.) -142- 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, 2017 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 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 S 177,000 S 177,000 S 178,086 6,600 6,600 6,661 4 2,682 183,600 183,600 187,433 110,766 110,766 80,670 110,766 110,766 80,670 72,834 72,834 106,763 500 500 2,071 500 500 2,071 S 73,334 S 73,334 1 108,834 (See independent auditor's report.) -143- 448,405 S 557,239 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, 2017 ADMINISTRATION, MAINTENANCE, AND IMPROVEMENTS Personal services Employee benefits Contractual services Insurance Commodities and supplies Capital expenditures TOTAL OPERATING EXPENSES Budget Original Final Actual $ 37,805 $ 37,805 $ 36,804 17,708 17,708 20,055 45,757 45,757 22,197 1,596 1,596 1,596 541 541 18 7,359 7,359 - $ 110,766 $ 110,766 $ 80,670 (See independent auditor's report.) -144- 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, 2017 NONCURRENT ASSETS Deposits - insurance - 2,190,074 - - 2,190,074 CAPITAL ASSETS Computer Risk Vehicle Vehicle - - 1,387,786 Replacement Management Replacement Maintenance Total CURRENT ASSETS (85,816) - (8,184,197) (92,062) (8,362,075) Net capital assets 47,981 Cash and investments $ 671,253 $ 2,213,537 $ 8,555,938 $ 769,689 $ 12,210,417 Receivables 5.737 1.416.737 20.625 119.271 1.562.370 Accrued interest - - 8,160 - 8,160 Other - 22,615 - 1,914 24,529 Due from other governments - - 2,338 7,788 10,126 Prepaid items - 165,686 - 11 165,697 Inventories - - - 308,233 308,233 Total current assets 671,253 2,401,838 8,566,436 1,087,635 12,727,162 NONCURRENT ASSETS Deposits - insurance - 2,190,074 - - 2,190,074 CAPITAL ASSETS Compensated absences payable - - - 124,974 124,974 Capital assets not being depreciated - - 1,387,786 - 1,387,786 Capital assets being depreciated, cost 133,797 - 13,496,770 92,062 13,722,629 Accumulated depreciation (85,816) - (8,184,197) (92,062) (8,362,075) Net capital assets 47,981 - 6,700,359 - 6,748,340 Total assets 719,234 4,591,912 15,266,795 1,087,635 21,665,576 CURRENT LIABILITIES Compensated absences payable - - - 124,974 124,974 Accounts payable 5,737 51,899 20,625 51,190 129,451 Accrued payroll - - - 36,837 36,837 Claims payable - 1,349,957 - - 1,349,957 Other payables - 14,881 - - 14,881 Compensated absences payable - - - 31,244 31,244 Total current liabilities 5.737 1.416.737 20.625 119.271 1.562.370 LONG-TERM LIABILITIES Compensated absences payable - - - 124,974 124,974 Claims payable - 189,713 - - 189,713 Net other postemployment benefits obligation - - - 51,694 51,694 Total long-term liabilities - 189,713 - 176,668 366,381 Total liabilities 5,737 1,606,450 20,625 295,939 1,928,751 NET POSITION Investment in capital assets 47,981 - 6,700,359 - 6,748,340 Unrestricted 665,516 2,985,462 8,545,811 791,696 12,988,485 TOTAL NET POSITION $ 713,497 $ 2,985,462 $ 15,246,170 $ 791,696 $ 19,736,825 (See independent auditor's report.) -145- OPERATING REVENUES Charges for services Contributions Miscellaneous Total operating revenues OPERATING EXPENSES Administration and maintenance Insurance and claims Depreciation Total operating expenses OPERATING INCOME (LOSS) VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ 240,829 $ 6,667,747 $ 1,656,298 $ 2,029,964 $ 10,594,838 - 1,398,673 - - 1,398,673 - 48,275 - - 48,275 240,829 8,114,695 1,656,298 2,029,964 12,041,786 107,911 456,554 40,236 2,046,622 2,651,323 - 8,295,721 - - 8,295,721 13,709 - 697,578 1,593 712,880 121,620 8,752,275 737,814 2,048,215 11,659,924 119,209 (637,580) 918,484 (18,251) 381,862 NON-OPERATING REVENUES (EXPENSES) Investment income 3,407 17,170 64,686 4,920 90,183 Gain (loss) on disposal of capital assets - - 97,091 (6,373) 90,718 Total non-operating revenues (expenses) 3,407 17,170 161,777 (1,453) 180,901 CHANGES IN NET POSITION 122,616 (620,410) 1,080,261 (19,704) 562,763 NET POSITION, JANUARY 1 590,881 3,605,872 14,165,909 811,400 19,174,062 NET POSITION, DECEMBER 31 $ 713,497 $ 2,985,462 $ 15,246,170 $ 791,696 $ 19,736,825 (See independent auditor's report.) -146- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from interfund services Miscellaneous receipts 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 Proceeds from sale of capital assets 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 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 Computer Risk Vehicle Vehicle Replacement Management Replacement Maintenance Total $ - $ 2,266,508 $ - $ - $ 2,266,508 240,829 5,799,912 1,645,000 2,029,964 9,715,705 - 48,275 11,980 1,983 62,238 (107,254) (8,411,617) (98,537) (843,874) (9,461,282) - - (1,210,512) (1,210,512) 133,575 (296,922) 1,558,443 (22,439) 1,372,657 97,091 97,091 (2,523,123) (2,523,123) (2,426,032) (2,426,032) 3,407 17,170 60,911 4,920 86,408 3,407 17,170 60,911 4,920 86,408 136,982 (279,752) (806,678) (17,519) (966,967) 534,271 2,493,289 9,362,616 787,208 13,177,384 $ 671,253 $ 2,213,537 $ 8,555,938 $ 769,689 $ 12,210,417 (This statement is continued on the following page.) -147- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation Changes in assets and liabilities Receivables Inventories Prepaid 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 $ 119,209 $ (637,580) $ 918,484 $ (18,251) $ 381,862 13,709 697,578 1,593 712,880 (22,615) 682 1,983 (19,950) - (15,172) (15,172) (3,668) 1 (3,667) - 53,948 53,948 657 (4,157) (58,301) (18,664) (80,465) - 17,839 17,839 - 8,232 8,232 317,150 - 317,150 $ 133,575 $ (296,922) $ 1,558,443 $ (22,439) $ 1,372,657 (See independent auditor's report.) -148- 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, 2017 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 (LOSS) NON-OPERATING REVENUES (EXPENSES) Investment income CHANGE IN NET POSITION NET POSITION, JANUARY I NET POSITION, DECEMBER 31 Budget Original Final Actual $ 713 S 713 S 713 15,264 15,264 15,264 224,852 224,852 224,852 240,829 240,829 240,829 314,310 314,310 107,911 - - 13,709 314,310 314,310 121,620 (73,481) (73,481) 119,209 1,500 1,500 3,407 S (71,981) S (71,981) 122,616 (See independent auditor's report.) -149- 590,881 S 713,497 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMPUTER REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 ADMINISTRATION Capital outlay Less capital assets capitalized Total administration Depreciation TOTAL OPERATING EXPENSES Budget Original Final Actual $ 314,310 $ 314,310 $ 107,911 314,310 314,310 107,911 - - 13,709 $ 314,310 $ 314,310 $ 121,620 (See independent auditor's report.) -150- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL RISK MANAGEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 OPERATING REVENUES Charges for services Contributions Miscellaneous Total operating revenues OPERATING EXPENSES Administration Insurance and claims Total operating expenses OPERATING INCOME (LOSS) Budget Original Final Actual S 6,538,333 S 6,538,333 S 6,667,747 1,320,000 1,428,500 1,398,673 1,500 49,000 48,275 7,859,833 8,015,833 8,114,695 427,525 427,525 456,554 7,281,795 8,014,295 8,295,721 7,709,320 8,441,820 8,752,275 150,513 (425,987) (637,580) NON-OPERATING REVENUES (EXPENSES) Investment income 5,000 5,000 17,170 CHANGE IN NET POSITION S 155,513 S (420,987) (620,410) NET POSITION, JANUARY 1 3,605,872 NET POSITION, DECEMBER 31 (See independent auditor's report.) -151 - S 2,985,462 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL RISK MANAGEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 Budget Original Final Actual OPERATING REVENUES Employee Charges for services Health insurance 499,000 499,000 General Fund $ 5,459,063 $ 5,459,063 $ 5,582,432 Refuse Disposal Fund 35,942 35,942 35,942 Water and Sewer Fund 154,783 154,783 154,783 Parking System Revenue Fund 1,382 1,382 1,382 Village Parking Fund 1,596 1,596 1,596 Vehicle Maintenance Fund 23,777 23,777 23,777 Library 861,790 861,790 867,835 Total charges for services 6,538,333 6,538,333 6,667,747 Contributions Employee Health insurance 499,000 499,000 518,426 Dental insurance - 88,000 87,912 Additional life insurance 22,000 22,000 24,029 Retiree Health insurance 799,000 799,000 748,157 Dental insurnace - 20,500 20,149 Total contributions 1,320,000 1,428,500 1,398,673 Miscellaneous Other reimbursements 1,000 48,500 48,275 Miscellaneous income 500 500 - Total miscellaneous 1,500 49,000 48,275 TOTAL OPERATING REVENUES $ 7,859,833 $ 8,015,833 $ 8,114,695 (See independent auditor's report.) -152- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL RISK MANAGEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 Budget Original Final Actual ADMINISTRATION Casualty and property program Claims administration $ 12,000 $ 12,000 $ 18,152 Other contractual services 12,000 12,000 28,250 Total casualty and property program 24,000 24,000 46,402 Medical expense - indemnity plan 4,811,339 Medical program 5,084,026 Medical expense - dental - Claims administration 321,525 321,525 340,228 20,000 14,705 Workers' compensation 44,400 44,400 46,359 Claims administration 82,000 82,000 69,924 Total insurance and claims 7,281,795 Total administration 427,525 427,525 456,554 8,441,820 $ 8,752,275 INSURANCE AND CLAIMS Casualty and property program Property insurance 115,000 115,000 94,586 HELP excess liability insurance 128,000 128,000 129,988 Workers' compensation insurance 105,000 105,000 120,310 Faithful performance insurance 4,000 4,000 3,043 Surety bonds 500 500 450 Other insurance 3,000 3,000 3,380 Property claims 1,000 1,000 - Liability claims 100,000 320,500 260,359 Workers' compensation claims 500,000 572,000 979,940 Auto claims 40,000 40,000 60,817 Village property claims 10,000 10,000 - Unemployment compensation claims 10,000 10,000 1,837 Tree hazard study 10,000 10,000 6,630 Other claims 10,000 10,000 69 Total casualty and property program 1,036,500 1,329,000 1,661,409 Medical program Medical expense - HMO plan 1,369,556 1,369,556 1,301,409 Medical expense - indemnity plan 4,811,339 5,063,339 5,084,026 Medical expense - dental - 188,000 187,813 Health and wellness supplies 20,000 20,000 14,705 Life insurance 44,400 44,400 46,359 Total medical program 6,245,295 6,685,295 6,634,312 Total insurance and claims 7,281,795 8,014,295 8,295,721 TOTAL OPERATING EXPENSES $ 7,709,320 $ 8,441,820 $ 8,752,275 (See independent auditor's report.) -153- 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, 2017 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) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual S 1,653,000 S 1,653,000 S 1,656,298 1,653,000 1,653,000 1,656,298 1,010,232 40,236 - 697,578 1,010,232 737,814 1,653,000 642,768 918,484 20,000 20,000 64,686 - - 97,091 20,000 20,000 161,777 S 1,673,000 S 662,768 S 1,080,261 (See independent auditor's report.) -154- 14,165,909 S 15,246,170 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 CHARGES FOR SERVICES General Fund Manager's office 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 $ 3,400 $ 3,400 $ 3,400 1,500 1,500 1,500 1,800 1,800 1,800 7,300 7,300 7,300 1,500 1,500 1,500 143,700 143,700 143,700 543,700 543,700 543,700 451,700 451,700 451,700 10,600 10,600 10,600 400 400 400 479,400 479,400 479,400 8,000 8,000 11,298 $ 1,653,000 $ 1,653,000 $ 1,656,298 (See independent auditor's report.) -155- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VEHICLE REPLACEMENT FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 OPERATING EXPENSES Administration 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 $ 403,000 $ 433,078 $ 344,076 25,000 25,000 20,283 648,000 1,468,599 1,075,768 1,048,000 1,651,139 1,167,693 (2,124,000) (2,567,584) (2,567,584) - 1,010,232 40,236 - - 697,578 $ - $ 1,010,232 $ 737,814 (See independent auditor's report.) -156- 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, 2017 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Administration and maintenance Depreciation Total operating expenses OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Loss on sale of capital assets Investment income Total non-operating revenues (expenses) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Budget Original Final Actual S 2,029,964 S 2,029,964 S 2,029,964 2,029,964 2,029,964 2,029,964 2,174,423 2,174,423 2,046,622 - - 1,593 2,174,423 2,174,423 2,048,215 (144,459) (144,459) (18,251) - - (6,373) 600 600 4,920 600 600 (1,453) S (143,859) S (143,859) (19,704) (See independent auditor's report.) -157- 811,400 S 791,696 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 Budget Original Final Actual CHARGES FOR SERVICES General Fund Mayor and board $ - $ - $ - Manager's office 3,045 3,045 3,045 Television services division 3,248 3,248 3,248 Community development - planning 3,045 3,045 3,045 Community development - building 4,263 4,263 4,263 Community development - housing 21,315 21,315 21,315 Community development - health 3,045 3,045 3,045 Police department 517,032 517,032 517,032 Fire department 320,937 320,937 320,937 Public works department 631,725 631,725 631,725 Engineering division 33,088 33,088 33,088 Human service charges 3,045 3,045 3,045 Water and Sewer Fund 486,176 486,176 486,176 TOTAL OPERATING REVENUES $ 2,029,964 $ 2,029,964 $ 2,029,964 (See independent auditor's report.) -158- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL VEHICLE MAINTENANCE FUND INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 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 $ 115,797 $ 115,797 $ 115,148 66,271 66,271 86,159 4,005 4,005 4,032 10,597 10,597 9,971 3,259 3,259 5,076 2,002 2,002 1,937 590 590 590 202,521 202,521 222,913 869,882 869,882 918,928 335,233 335,233 346,644 95,886 95,886 85,674 667,113 667,113 468,675 3,788 3,788 3,788 1,971,902 1,971,902 1,823,709 2,174,423 2,174,423 2,046,622 - - 1,593 $ 2,174,423 $ 2,174,423 $ 2,048,215 (See independent auditor's report.) -159- 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, 2017 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 Due to other funds Total liabilities NET POSITION RESTRICTED FOR PENSIONS Police Firefighters' Pension Pension Total $ 1,232,315 $ 1,068,368 $ 2,300,683 2,046,737 481,342 2,528,079 10,512,229 12,312,200 22,824,429 10,620,264 9,465,491 20,085,755 - 3,183,460 3,183,460 46,550,389 39,595,895 86,146,284 70,961,934 66,106,756 137,068,690 150,155 132,206 282,361 - 41,918 41,918 1,162 1,669 2,831 71,113,251 66,282,549 137,395,800 38,535 17,209 55,744 5,654 - 5,654 44,189 17,209 61,398 $ 71,069,062 $ 66,265,340 $ 137,334,402 (See independent auditor's report.) -160- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2017 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 NETINCREASE NET POSITION RESTRICTED FOR PENSIONS January 1 December 31 Police Firefighters' Pension Pension Total $ 3,747,825 $ 3,396,834 $ 7,144,659 1,260,472 678,476 1,938,948 5,008,297 4,075,310 9,083,607 763,695 640,447 1,404,142 8,325,232 8,774,095 17,099,327 (121,912) (91,173) (213,085) 8,967,015 9,323,369 18,290,384 13,975,312 13,398,679 27,373,991 48,339 50,783 99,122 4,834,597 5,427,385 10,261,982 4,882,936 5,478,168 10,361,104 9,092,376 7,920,511 17,012,887 61,976,686 58,344,829 120,321,515 $ 71,069,062 $ 66,265,340 $ 137,334,402 (See independent auditor's report.) -161 - VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN NET POSITION - BUDGET AND ACTUAL POLICE PENSION FUND For the Year Ended December 31, 2017 Budget Original Final Actual ADDITIONS Contributions Employer $ 3,838,125 $ 4,169,125 $ 3,747,825 Plan members 770,000 1,200,500 1,260,472 Other 500 500 - 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 NETINCREASE NET POSITION RESTRICTED FOR PENSIONS January 1 December 31 4,608,625 5,370,125 5,008,297 798,500 798,500 763,695 3,118,000 8,707,000 8,325,232 (116,000) (116,000) (121,912) 3,800,500 9,389,500 8,967,015 8,409,125 14,759,625 13,975,312 65,600 65,600 48,339 4,756,710 4,856,210 4,834,597 4,822,310 4,921,810 4,882,936 $ 3,586,815 $ 9,837,815 9,092,376 (See independent auditor's report.) -162- 61,976,686 $ 71,069,062 VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF CHANGES IN NET POSITION - BUDGET AND ACTUAL FIREFIGHTERS' PENSION FUND For the Year Ended December 31, 2017 Budget Original Final Actual ADDITIONS Contributions Employer $ 3,410,580 $ 3,819,080 $ 3,396,834 Plan members 680,000 680,000 678,476 Other 500 500 - Total contributions 4,091,080 4,499,580 4,075,310 Investment income Interest earned 625,500 625,500 640,447 Net change in fair value 3,286,000 9,091,000 8,774,095 Less investment expenses (91,000) (91,000) (91,173) Net investment income 3,820,500 9,625,500 9,323,369 Total additions 7,911,580 14,125,080 13,398,679 DEDUCTIONS Administration 68,600 68,600 50,783 Benefits and refunds 5,189,810 5,428,310 5,427,385 Total deductions 5,258,410 5,496,910 5,478,168 NET INCREASE $ 2,653,170 $ 8,628,170 7,920,511 NET POSITION RESTRICTED FOR PENSIONS January 1 58,344,829 December 31 $ 66,265,340 (See independent auditor's report.) -163- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS All Funds ASSETS For the Year Ended December 31, 2017 Balances Balances January 1 Additions Deductions December 31 Cash and investments S 1,368,315 S 1,355,766 S 1,597,457 S 1,126,624 Due from other funds - 10,601 10,601 - Deposits 7,140 - - 7,140 Other receivables - 83 83 - TOTAL ASSETS LIABILITIES Deposits payable Due to other funds Other liabilities TOTAL LIABILITIES 1. Escrow Deposit Fund ASSETS Cash and investments Due from other funds Other receivables TOTAL ASSETS LIABILITIES Deposits payable Due to other funds Other liabilities TOTAL LIABILITIES S 1,375,455 S 1,366,450 S 1,608,141 S 1,133,764 S 1,375,455 S 1,024,514 S 1,266,205 S 1,133,764 - 147,172 147,172 - - 715,204 715,204 - S 1,375,455 S 1,886,890 S 2,128,581 S 1,133,764 S 1,342,992 S 1,085,803 S 1,329,344 S 1,099,451 - 10,601 10,601 - 83 83 - S 1,342,992 S 1,096,487 S 1,340,028 S 1,099,451 S 1,342,992 S 754,413 S 997,954 S 1,099,451 - 140,953 140,953 - 715,204 715,204 - S 1,342,992 S 1,610,570 S 1,854,111 S 1,099,451 (This statement is continued on the following page.) -164- VILLAGE OF MOUNT PROSPECT, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (Continued) AGENCY FUNDS For the Year Ended December 31, 2017 Balances Balances January 1 Additions Deductions December 31 2. Flexcomp Escrow Fund ASSETS Cash and investments $ 25,323 S 269,963 S 268,113 S 27,173 Deposits 7,140 - - 7,140 TOTAL ASSETS S 32,463 S 269,963 S 268,113 S 34,313 LIABILITIES Deposits payable S 32,463 S 270,101 S 268,251 S 34,313 Due to other funds - 6,219 6,219 - TOTAL LIABILITIES S 32,463 S 276,320 S 274,470 S 34,313 (See independent auditor's report.) -165- 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. 0 6 F 0 Ca. Qa O O O Q O 0 Qy 69 69 69 O O O O 69 69 69 O O O aLi CC .a � 000 000 000 G Z = N GD GD GD � �O O 69 69 69 O O O aLi CC .a � bA l0p M lop M lop M G p O es vv vv O O O aLi CC .a Z 000 O 000 O 000 O = p � O 69 69 69 O O O bA C y .� G o O 69 69 69 O O O d G ?A = p r 69 r 69 r 69 O O O o O O o O 7 7 7 0 0 0 -• V � � N O 69 69 69 O O O d O p p O O O O 69 69 69 F 0 Ca. Qa Q O 0 a�TjF coFz E �a oao aaaE o F. U _ ƒ22� 2)) ƒ LONG-TERM DEBT REQUIREMENTS VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2009 December 31, 2017 Date of Issue March 11, 2009 Date of Maturity December 1, 2028 Authorized Issue $10,000,000 Denomination of Bonds $5,000 Interest Rates 3.005% to 4.500% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Mellon Trust Company CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 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 $ 168,000 $ 768,000 $ 84,000 $ 84,000 (See independent auditor's report.) -168- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2009B December 31, 2017 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 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 $ 1,400,000 $ 133,050 $ 1,533,050 $ 66,523 $ 66,527 (See independent auditor's report.) -169- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS TAXABLE GENERAL OBLIGATION BONDS OF 2009C December 31, 2017 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 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 $ 2,455,000 $ 1,009,155 $ 3,464,155 $ 504,578 $ 504,577 (See independent auditor's report.) -170- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2011B December 31, 2017 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 I Amount December I Amount 2017 580-726 $ 735,000 $ 57,078 $ 792,078 2018 $ 28,539 2018 727-877 755,000 38,556 793,556 2019 19,278 2019 878-1032 775,000 19,530 794,530 2020 9,765 $ 2,265,000 $ 115,164 $ 2,380,164 $ 57,582 (See independent auditor's report.) -171 - 2018 $ 28,539 2019 19,278 2020 9,765 $ 57,582 VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2012 December 31, 2017 Date of Issue January 3, 2012 Date of Maturity December 1, 2022 Authorized Issue $2,975,000 Denomination of Bonds $5,000 Interest Rates 3.10% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at JP Morgan Chase CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 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 $ 243,820 $ 1,988,820 $ 121,910 $ 121,910 (See independent auditor's report.) -172- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2013 December 31, 2017 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 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 $ 3,871,101 $ 13,671,101 $ 1,935,548 $ 1,935,553 (See independent auditor's report.) -173- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2014 December 31, 2017 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 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 $ 5,080,000 $ 626,400 $ 5,706,400 $ 313,200 $ 313,200 (See independent auditor's report.) -174- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2016 December 31, 2017 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 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 $ 7,360,000 $ 522,000 $ 7,882,000 $ 261,000 $ 261,000 (See independent auditor's report.) -175- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BONDS OF 2016A December 31, 2017 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 I Amount December I Amount 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 $ 8,980,000 $ 2,403,300 $ 11,383,300 $ 1,201,650 $ 1,201,650 (See independent auditor's report.) -176- Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS OF 2017 December 31, 2017 December 20, 2017 December 1, 2037 $9,740,000 $5,000 2.50% to 4.00% June 1 and December 1 December 1 Mesirow Financial CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Requirements Interest Due on Year Principal Interest Total June 1 Amount December 1 Amount 2017 $ 125,000 $ 308,321 $ 433,321 2018 $ 145,571 2018 $ 162,750 2018 125,000 320,501 445,501 2019 160,250 2019 160,250 2019 140,000 315,501 455,501 2020 157,750 2020 157,750 2020 290,000 309,901 599,901 2021 154,950 2021 154,950 2021 315,000 298,301 613,301 2022 149,150 2022 149,150 2022 345,000 285,701 630,701 2023 142,850 2023 142,850 2023 375,000 271,901 646,901 2024 135,950 2024 135,950 2024 405,000 256,901 661,901 2025 128,450 2025 128,450 2025 440,000 240,701 680,701 2026 120,350 2026 120,350 2026 465,000 227,501 692,501 2027 113,750 2027 113,750 2027 500,000 215,876 715,876 2028 107,938 2028 107,938 2028 530,000 202,750 732,750 2029 101,375 2029 101,375 2029 565,000 188,175 753,175 2030 94,088 2030 94,088 2030 600,000 171,932 771,932 2031 85,966 2031 85,966 2031 640,000 147,932 787,932 2032 73,966 2032 73,966 2032 690,000 122,332 812,332 2033 61,166 2033 61,166 2033 730,000 100,770 830,770 2034 50,384 2034 50,384 2034 775,000 77,956 852,956 2035 38,978 2035 38,978 2035 820,000 53,738 873,738 2036 26,869 2036 26,869 2036 865,000 28,112 893,112 2037 14,056 2037 14,056 $ 9,740,000 $ 4,144,803 $ 13,884,803 $ 2,063,807 $ 2,080,986 (See independent auditor's report.) -177- 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, 2017 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 Fiscal Payment Requirements Year Numbers Principal Interest Total 2018 37-38 $ 112,771 $ 3,735 $ 116,506 2019 39 57,500 754 58,254 $ 170,271 $ 4,489 $ 174,760 (See independent auditor's report.) -178- VILLAGE OF MOUNT PROSPECT, ILLINOIS LONG-TERM DEBT REQUIREMENTS INSTALLMENT NOTE PAYABLE OF 2012 December 31, 2017 Date of Issue December 31, 2012 Date of Maturity December 1, 2019 Authorized Issue $2,500,000 Denomination of Bonds $5,000 Interest Rates 0.91% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Mount Prospect State Bank CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Payment Requirements Interest Due on Year Numbers Principal Interest Total June 1 Amount December 1 Amount 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 $ 1,105,000 $ 15,425 $ 1,120,425 $ 7,712 $ 7,713 (See independent auditor's report.) -179- ADDITIONAL SUPPLEMENTAL DATA ow 00 00 00 00 00 00 00 00 00 00 00 WA 00 00 If) If) If) If) I 0 U � r U O O h ct ct Ct Ct M u ton 0n v° > > N N N N a) rv�� 72 F 4 Ui Ui Ui Ui Ui Ui Fir �r �r �Tr I� V bA 04 Z" 00 z z z z z 00 O O z z O O O O z o�fj If) If) o OC N V y z z z z z O O O O O O O O O z 7:$y Qfj O U N T$ r r� o vl O O O O O O O vl vl vl vl vl N N N N N N O Ef3 M G O y � y U U O vi T ^ ' 7--O N th vi vi vi CG ¢' "� a vi cd O O cd cd cd cd ✓ I� .x' �Tl U U U o 0 o F- a w CO 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. 181-190 Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue source, the property tax. 191-199 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. 200-203 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. 204-205 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. 206-210 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. VILLAGE OF MOUNT PROSPECT, ILLINOIS NET POSITION BY COMPONENT 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 Net investment in capital assets Restricted Unrestricted TOTAL PRIMARY GOVERNMENT Last Ten Fiscal Years 2008 2009 2010 2011 $ 29,663,909 $ 27,741,453 $ 30,020,260 $ 53,524,378 2,367,670 4,497,173 4,891,298 2,828,903 21,216,625 20,277,880 18,296,001 20,019,184 $ 53,248,204 $ 52,516,506 $ 53,207,559 $ 76,372,465 $ 20,776,324 $ 22,412,134 $ 23,044,064 $ 26,892,474 6,852,644 5,996,007 5,927,430 5,167,986 $ 27,628,968 $ 28,408,141 $ 28,971,494 $ 32,060,460 $ 50,440,233 $ 50,153,587 $ 53,064,324 $ 80,416,852 2,367,670 4,497,173 4,891,298 2,828,903 28,069,269 26,273,887 24,223,431 25,187,170 $ 80,877,172 $ 80,924,647 $ 82,179,053 $ 108,432,925 * 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. Data Source Audited Financial Statements - 181 - 2012 2013 2014* 2015** 2016 2017 $ 48,521,357 $ 48,152,760 $ 46,326,047 $ 43,755,661 $ 33,224,875 $ 34,171,129 3,547,328 3,045,922 4,186,505 5,319,794 4,557,424 4,104,560 24,952,139 24,153,907 (10,441,020) (99,563,419) (91,778,462) (95,150,426) $ 77,020,824 $ 75,352,589 $ 40,071,532 $ (50,487,964) $ (53,996,163) $ (56,874,737) $ 26,566,375 $ 26,352,289 $ 26,854,967 $ 36,336,899 $ 36,588,628 $ 35,765,755 6,820,901 8,057,996 7,734,851 5,580,049 4,610,400 6,266,907 $ 33,387,276 $ 34,410,285 $ 34,589,818 $ 41,916,948 $ 41,199,028 $ 42,032,662 $ 75,087,732 $ 74,505,049 $ 73,181,014 $ 80,092,560 $ 79,613,503 $ 69,936,884 3,547,328 3,045,922 4,186,505 5,319,794 4,557,424 4,104,560 31,773,040 32,211,903 (2,706,169) (93,983,370) (96,968,062) (88,883,519) $ 110,408,100 $ 109,762,874 $ 74,661,350 $ (8,571,016) $ (12,797,135) $ (14,842,075) -182- VILLAGE OF MOUNT PROSPECT, ILLINOIS CHANGE IN NET POSITION Last Ten Fiscal Years Fiscal Year 2008 2009 2010 2011 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) $ 6,682,541 $ 7,192,572 $ 6,541,405 $ 6,992,107 26,646,855 27,172,360 27,303,165 27,276,948 13,540,232 12,101,419 12,924,872 18,141,803 4,163,354 4,194,045 4,133,883 4,289,103 1,744,504 2,316,995 2,039,805 1,902,841 409,066 367,635 322,553 353,308 837.127 1047.961 1.146.789 1.329.499 54,023,679 54,392,987 54,412,472 60,285,609 9,179,399 9,393,148 9,950,591 10,444,247 263,394 233,701 284,607 327,224 9.442.793 9.626.849 10.235.198 10.771.471 $ 63,466,472 $ 64,019,836 $ 64,647,670 $ 71,057,080 $ 5,045,338 $ 6,705,200 $ 6,271,966 $ 6,343,828 2,242,952 1,580,052 1,486,144 1,545,333 169,615 237,786 135,641 108,865 320,488 65,933 70,964 32,040 1,800,781 2,551,348 2,338,965 2,749,168 764,283 406,734 443,278 65,905 10,343,457 11,547,053 10,746,958 10,845,139 8,774,681 8,500,396 8,916,621 9,081,731 269,400 218,735 210,324 219,040 9,044,081 8,719,131 9,126,945 9,300,771 $ 19,387,538 $ 20,266,184 $ 19,873,903 $ 20,145,910 $ (43,680,222) $ (42,845,934) $ (43,665,514) $ (49,440,470) (398,712) (907,718) (1,108,253) (1,470,700) $ (44,078,934) $ (43,753,652) $ (44,773,767) $ (50,911,170) - 183 - 2012 2013 2014 2015* 2016 2017 $ 6,233,324 $ 7,356,433 $ 10,171,883 $ 11,514,091 $ 9,949,082 $ 10,690,075 28,134,173 29,771,502 30,812,251 38,535,612 38,328,609 37,351,039 15,853,017 18,570,593 19,923,120 26,650,772 19,990,440 16,176,313 4,407,533 4,459,897 4,591,946 4,538,800 4,620,982 4,557,211 1,909,062 1,868,952 1,844,911 1,813,254 2,109,733 2,068,368 406,606 443,171 425,217 453,534 515,555 611,653 1,033,923 1,016,337 2,899,466 2,064,448 1,926,793 2,049,953 57,977,638 63,486,885 70,668,794 85,570,511 77,441,194 73,504,612 11,129,942 12,078,221 13,779,500 14,143,610 16,054,624 14,308,117 345,715 346,303 329,988 269,619 390,118 229,873 11.475.657 12.424524 14.109.488 14.413.229 16.444.742 14537.990 $ 69,453,295 $ 75,911,409 $ 84,778,282 $ 99,983,740 $ 93,885,936 $ 88,042,602 $ 7,068,010 $ 6,908,188 $ 7,785,745 $ 4,458,450 $ 4,496,290 $ 4,178,495 1,412,279 1,583,328 1,712,860 1,796,729 1,795,838 1,761,708 126,660 269,066 414,316 183,246 290,172 169,389 39,163 41,220 515,095 4,467,864 4,799,080 4,616,263 1,974,867 2,356,665 2,209,036 1,912,795 2,629,030 2,705,584 72,175 288,752 140,181 47,274 - 159,682 10,693,154 11,447,219 12,777,233 12,866,358 14,010,410 13,591,121 10,990,923 11,507,264 11,970,681 12,434,405 12,931,867 13,395,619 225,214 234,458 254,784 261,745 334,102 343,314 - - 373,498 8,889,998 244,423 - 11,216,137 11,741,722 12,598,963 21,586,148 13,510,392 13,738,933 $ 21,909,291 $ 23,188,941 $ 25,376,196 $ 34,452,506 $ 27,520,802 $ 27,330,054 $ (47,284,484) $ (52,039,666) $ (57,891,561) $ (72,704,153) $ (63,430,784) $ (59,913,491) (259,520) (682,802) (1,510,525) 7,172,919 (2,934,350) (799,057) $ (47,544,004) $ (52,722,468) $ (59,402,086) $ (65,531,234) $ (66,365,134) $ (60,712,548) 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 Property tax Home rule sales tax Investment income Miscellaneous Transfers Total business -type activities TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION Governmental activities Business -type activities TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION Last Ten Fiscal Years 2008 2009 2010 2011 $ 15,942,106 $ 16,543,215 $ 17,165,849 $ 17,942,394 - 4,519,175 4,589,221 4,624,678 14,862,634 4,061,202 4,392,753 4,673,134 2,770,473 - - - 10,346,444 1,524,823 1,598,056 1,976,997 - 9,761,726 11,110,707 11,411,781 - 4,573,162 4,428,176 4,328,196 - 338,134 362,532 357,596 - - - 3,986 416,673 187,793 67,001 29,043 93,781 605,006 633,902 235,167 - - 8,370 - 51,120 - - - 44,483,231 42,114,236 44,356,567 45,582,972 1,505,394 1,520,602 1,513,114 1,526,828 92,154 82,882 89,942 107,576 159,150 26,646 1,653 836 - 56,761 75,267 73,858 - - (8,370) - 1,756,698 1,686,891 1,671,606 1,709,098 $ 46,239,929 $ 43,801,127 $ 46,028,173 $ 47,292,070 $ 803,009 $ (731,698) $ 691,053 $ (3,857,498) 1,357,986 779,173 563,353 238,398 $ 2,160,995 $ 47,475 $ 1,254,406 $ (3,619,100) * The Village implemented GASB Statement No. 68 in fiscal year 2015. Audited Financial Statements - 185 - 2012 2013 2014 2015* 2016 2017 $ 18,385,422 $ 18,890,542 $ 19,745,699 $ 19,884,986 $ 20,463,758 $ 18,396,040 4,658,265 3,891,713 4,093,596 3,774,729 3,629,525 3,491,473 283,706 317,527 331,933 342,040 341,340 322,936 4,750,232 5,035,998 5,320,795 5,367,762 5,553,213 5,365,011 2,408,064 2,952,665 3,421,604 3,940,993 3,645,424 3,804,231 11,877,115 13,254,358 14,310,773 16,311,253 17,630,758 19,894,716 4,759,513 5,161,051 5,186,155 5,763,542 5,272,834 4,975,194 358,286 396,999 407,764 386,154 386,338 456,136 - - - 365,634 380,758 - 4,090 4,090 4,812 - 4,101 6,236 42,452 29,785 (46,496) 24,784 76,594 196,995 278,293 436,703 47,636 42,059 33,286 125,949 - - - (200,000) - - 47,805,438 50,371,431 52,824,271 56,003,936 57,417,929 57,034,917 1,515,605 1,507,661 1,508,704 1,519,375 1,524,901 1,514,452 99,795 104,050 100,697 101,595 - - 517 3,387 3,189 34,195 14,419 25,334 (29,581) 90,713 77,468 94,424 90,810 92,905 - - - 200,000 - - 1,586,336 1,705,811 1,690,058 1,949,589 1,630,130 1,632,691 $ 49,391,774 $ 52,077,242 $ 54,514,329 $ 57,953,525 $ 59,048,059 $ 58,667,608 $ 520,954 $ (1,668,235) $ (5,067,290) $ (16,700,217) $ (6,012,855) $ (2,878,574) 1,326,816 1,023,009 179,533 9,122,508 (1,304,220) 833,634 $ 1,847,770 $ (645,226) $ (4,887,757) $ (7,577,709) $ (7,317,075) $ (2,044,940) VILLAGE OF MOUNT PROSPECT, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Fiscal Year GENERAL FUND Reserved Unreserved Nonspendable Unassigned TOTAL GENERAL FUND ALL OTHER GOVERNMENTAL FUNDS Reserved Unreserved, reported in Special Revenue Funds Debt Service Funds Capital Project Funds Nonspendable Restricted Assigned Unassigned TOTAL ALL OTHER Last Ten Fiscal Years 2008 2009 2010 2011* $ 228,750 $ 88,492 $ 53,536 $ - 12,312,075 10,110,989 10,364,455 - - - - 100,590 - - - 10,704,282 $ 12,540,825 $ 10,199,481 $ 10,417,991 $ 10,804,872 $ 2,523,221 $ 4,762,560 $ 2,188,376 $ - 2,043,378 1,674,387 2,148,898 - (908,466) (485,274) (78,844) - 303,492 1,965,761 2,459,761 - - - - 147,130 - - 2,828,903 - - 3,564,914 - - (5,578) GOVERNMENTAL FUNDS $ 3,961,625 $ 7,917,434 $ 6,718,191 $ 6,535,369 * The Village implemented GASB Statement No. 54 in fiscal year 2011. Data Source Audited Financial Statements -187- 2012 2013 2014 2015 2016 2017 98,150 297,762 337,165 204,023 188,247 261,219 11,466,179 11,580,820 12,508,457 17,016,920 18,496,104 19,137,752 $ 11,564,329 $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 18,684,351 $ 19,398,971 144,114 132,464 147,412 107,609 96,771 83,232 3,625,715 3,166,583 13,941,797 5,212,985 4,557,424 8,919,560 7,525,930 15,705,506 7,371,630 3,679,129 3,224,446 3,579,214 (664) (689) (789) (448,034) (688,716) - $ 11,295,095 $ 19,003,864 $ 21,460,050 $ 8,551,689 $ 7,189,925 $ 12,582,006 VILLAGE OF MOUNT PROSPECT, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2008 2009 2010 2011 REVENUES 5,725,191 5,796,151 5,240,716 5,284,168 Taxes $ 27,287,056 $ 26,648,415 $ 27,740,802 $ 29,217,203 Licenses, permits, and fees 3,094,828 3,748,456 3,394,211 3,356,816 Intergovernmental 19,104,781 17,274,500 18,719,087 18, 895,261 Charges for services 3,618,419 3,832,341 3,789,976 3,974,677 Fines and forfeits 720,351 529,655 556,178 548,993 Investment income 416,673 137,142 55,457 23,103 Other reimbursements - - - - Miscellaneous 533,460 834,738 781,149 406,118 Total revenues 54,775,568 53,005,247 55,036,860 56,422,171 EXPENDITURES - 16,080,000 - 5,160,000 Premium on bonds issued - 124,535 General government 5,725,191 5,796,151 5,240,716 5,284,168 Public safety 25,906,274 26,384,953 26,935,085 26,992,535 Highways and streets 9,168,071 8,291,493 7,450,823 7,681,534 Health 4,156,319 4,188,172 4,128,010 4,286,754 Welfare 1,736,791 2,316,995 2,039,805 1,902,841 Culture and recreation 381,892 358,207 313,125 346,068 Capital outlay 6,623,970 14,296,659 7,739,590 7,274,213 Debt service Principal retirement 4,149,735 1,425,219 1,046,203 1,377,700 Interest and fiscal charges 891,181 1,023,907 1,124,236 1,057,464 Total expenditures 58,739,424 64,081,756 56,017,593 56,203,277 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,963,856) (11,076,509) (980,733) 218,894 OTHER FINANCING SOURCES (USES) Bonds issued - 16,080,000 - 5,160,000 Premium on bonds issued - 124,535 - - Payment to escrow agent - (3,513,925) - (5,139,582) Transfers in 809,422 635,100 450,000 80,089 Transfers (out) (833,242) (635,100) (450,000) (115,342) Sale of capital assets 2,895 364 - - Total other financing sources (uses) (20,925) 12,690,974 - (14,835.00) NET CHANGE IN FUND BALANCES $ (3,984,781) $ 1,614,465 $ (980,733) $ 204,059 DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 9.00% 4.55% 4.12% 4.35% Data Source Audited Financial Statements 2012 2013 2014 2015 2016 2017 $ 30,485,689 $ 31,088,445 $ 32,564,624 $ 33,433,891 $ 34,113,260 $ 31,784,137 3,657,586 3,589,368 3,516,082 3,915,635 4,001,458 3,982,497 18,862,827 21,103,909 23,914,974 26,018,173 27,434,551 29,199,312 4,417,110 4,408,987 5,220,730 5,664,398 6,347,775 5,810,731 403,036 430,960 587,966 511,536 414,885 415,189 36,491 16,751 (46,495) 24,784 76,594 196,995 - - - - 35,000 19,824 629,892 1,167,196 983,623 656,877 549,816 592,352 58,492,631 61,805,616 66,741,504 70,225,294 72,973,339 72,001,037 5,827,275 7,452,147 7,050,018 7,598,649 9,435,601 10,060,904 28,022,943 29,233,562 30,706,685 30,350,270 32,512,612 34,279,062 7,734,185 9,094,846 8,291,698 7,744,122 8,148,696 8,762,136 4,405,184 4,457,548 4,590,027 4,589,156 4,585,572 4,500,280 1,909,062 1,868,952 1,865,265 1,961,516 1,994,918 1,953,055 399,366 435,931 421,517 467,611 499,208 585,907 4,761,739 8,588,414 12,075,460 20,998,508 10,718,553 5,786,667 1,479,732 1,537,312 2,987,587 3,048,912 3,243,840 3,518,904 959,812 913,882 1,914,718 1,799,590 2,017,192 1,378,256 55,499,298 63,582,594 69,902,975 78,558,334 73,156,192 70,825,171 2,993,333 (1,776,978) (3,161,471) (8,333,040) (182,853) 1,175,866 5,475,000 9,800,000 6,290,000 - 17,835,000 4,815,000 - - 294,697 - 1,022,839 115,835 (2,949,150) - - - (18,573,342) - - 239,977 - 81,599 1,637,926 600,000 - (239,977) - (281,599) (1,637,926) (600,000) 2,525,850 9,800,000 6,584,697 (200,000) 284,497 4,930,835 $ 5,519,183 $ 8,023,022 $ 3,423,226 $ (8,533,040) $ 101,644 $ 6,106,701 4.40% 4.01% 7.02% 6.20% 7.32% 6.99% -190- 0 0 0 0 0 0 0 0 0 0 c� O 00 O O, O� O O Vl � N N O Vl Vl If) 00 00 y� 00 M N 00 M Vl h += d � N \O Yf 00 M N. 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'� U O F-,>-' C/o o o ce ce ce � �U� N O A A F H F � O Fzl O � F O Fzl C/1 ai � F Ca 0 M Q O wth N N N N wP- �x �x dQF� F W W ddO=" F WW �c c v ci0. i�an �0. thEs Q�j FG�1 v OC7U FG�1FF OC7U o O N Vl O O C) 10 Vl O- h Vl o Vl 0 �p 00 N 1 h O 00 00 00 O h O M N O O -� 00 rl 00 � � �--� � � a, � M a, V1 N 01 q N O01 N N N N 10 O 00 ,--� -� �O O- 'O 1 'oV) -� O h 00 vl O rl M a, r- r- a, O 1.0 V1 'T 00 N N N ^ 0000 N'T N O 01 00 01 N O1 00 M O o o I— 'T 1— 00 N M N N N O M V) 01 N N 00 00 V) 00 01 'T V) O M — r- N N N O N 00 01h M \O N ^-� 00 \O N 'O V) 00 o M o (n h V) 'T \O V) M 00 M N a,N V1 V1 ^' N 00 00 h In 00 01 00 V) O N O h N N N O N o 00 o N M M V) M V) O,O ^' M 00 r- N Vl N N 01 M 'T�O 00 h N vl 'T O O10, a, N N 'T O N M M O M O M'T O O O N O M 00 00 Cl) 00 -- O, )10 In �O 00 M O 00 101 a1 O O N N M O M O N O O O O M h 0 - M O Vl 00 00l� V) V) N O -� l� o o O N M O� h Vl M --� V) V) 00 10 O, 00 a N V1 O M M M M 01 h V1 N N h O N �O o 00 0 N pq ON 01 In m O -) h h h N O O V1 O N 00 � \O V1 M �--� M O 01 \O V1 N O00 00 7 00 N 01 In M N O N o 0 r M a, N� Vl M a, a, O Vl N Q M 00 10 Vl M O 00 10 1 M N N O N O A A F H F � O Fzl O � F O Fzl C/1 ai � F Ca 0 M Q O wth N N N N wP- �x �x dQF� F W W ddO=" F WW �c c v ci0. i�an �0. thEs Q�j FG�1 v OC7U FG�1FF OC7U o M 0 0 0 0 0 0 0 0 of -Al h h O CO M nl nl O 01 01 h O �D 01 al O CO O h �D 7 7 v1 �D O �D 01 01 Co 01 O N 7 nl nl O �D G CO CO h ill 7 7 7 nl O �D 01 al O CO O h �D 7 7 v1 �D O �D 01 01 Co 01 O N 7 nl nl 0 V1 �D 7 01 � 01 CO Co 7 t` U E N 7 O M O h h V1 CO O M CO 7 7 O ill h O h nl �l �D G CO CO h ill 7 7 7 nl O O al � O O al h al nl � M i CO M 01 h 7 CO N h N � 9 0 V1 �D 7 01 � 01 CO Co 7 t` U E N 7 O M O h h V1 CO 1p M N N 01 h h h 01 �l O �D O CO CO h ill 7 7 7 nl O h o0 al � h al h al nl � M o0 CO M 01 h 7 CO N h N CO 0 ,--i nl M 7 ill 10 h 00 of Oa O ill O O M h CO �D CO CO �tl nl h o0 al � h al h al nl � M o0 CO M 01 h 7 CO N h N CO CO V1 �D 7 01 h 7 01 CO Co 7 t` CO vl N 7 O M O h h V1 CO 1p M N N 01 h h h 01 �l X11 VILLAGE OF MOUNT PROSPECT, ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Levy Years Fiscal Year Levy Year Tax Levied Collected within the Fiscal Year of the Levy Percentage Amount of Levy Collections in Subsequent Years Total Collections to Date Percentage Amount of Levy 2008 2007 $ 14,014,838 $ 13,648,416 97.39% $ (77,455) $ 13,570,961 96.83% 2009 2008 14,472,269 14,137,805 97.69% (13,619) 14,124,186 97.59% 2010 2009 15,194,636 14,856,084 97.77% (129,548) 14,726,536 96.92% 2011 2010 15,194,635 14,961,411 98.47% (57,871) 14,903,540 98.08% 2012 2011 15,852,352 15,614,490 98.50% (24,467) 15,590,023 98.35% 2013 2012 16,477,871 16,278,228 98.79% (56,444) 16,221,784 98.45% 2014 2013 17,301,436 17,064,355 98.63% (4,764) 17,059,591 98.60% 2015 2014 17,741,219 17,521,845 98.76% 17,305 17,539,150 98.86% 2016 2015 18,313,527 18,130,372 99.00% 27,853 18,158,225 99.15% 2017 2016 18,733,668 18,534,114 98.93% - 18,534,114 98.93% Data Source Office of the County Clerk -195- N �O v1 v1 O h M 00 h v1 M O O N -• -• GD M GD 69 69 �O h M h �l1 �l1 Q1 Q1 h O 00 rti v1 00 �O O NQ1 Qt O 00 �--i N 0," V1 l0 V1 M 69 69 O O_ N v1 00 O o h d" �O h N Ql Cl _ 10 llc 00 (I Q1 Ql N h Ql h V1 VO O Ql O Q1 V) N Q1 In N O O O a, M VO O N ONO N F, If) s9 s9 O o Q1 M N v1 M v1 00 h Cl _ O O v1 M 1p M h M �" d' O Q1 O 00 7 rti V1 M 00 00 h M N �O v1 00 h d" h N O M 00 v1 00 O N 00 h �--� N h V1 V1 00 M N N M 69 69 00M h O O M M o M h 00 V1 00 Ql O �' h M V1 O 00 00 MCD h r -t CD O o0 ONO dN- N 00 h --� N h ti O 1 N M ti N 69 69 reh �" h h h N Q1 0 F N N O Cl O O CD O CD d' CD O 00 U C:J m N_ �O � N 00 v1 O ti N M O O aF� � O 00 �O ,-• N �O �O dN" O O U C a 69 69 Z W O Cl� O M M00 O 00 O d- O 00 'cam �O �l1 1p �O h N00 M M N N M w W M O O W 69 69 10 o O a, O O O 00 i�r O N O Q, v1 N M M Ii 69 69 O 10 h M 00 00 O d" O 00 N M 00 Cl 00 M h N d" O AO O O h 01 O O V1 N M V1 O 10 N V1 M V1 N 000 O kr)M N 10 N N O ti ti ( ti Q 69 69 O v1 Cl 00 O h v1 h h M M h Cl h v1 00 Q1 v1 v1 O Q1 O O O Q1 00 Q, Q, d" 00 M dt h O N O O v1 O 69 69 � U 3 on P. c o c o bqto ✓" C y ci N^. -L w c7 w° Q Q w � � Q Q w r oMo 0 o N II N N O N -x o O N 7 O N � O O w s9 M N N 10 M F Q� � a G7ct � � U O N �t c 1 N O � OO W Ca C7 � W o oa 00 V1 0 O N s9 00 O O N w 69 N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 oMo 00 o N II N N m o s9 N 10 M O M �t Ql h 00 N OO 00 V1 00 s9 00 00 Cl d O h h v 00 s9 h � N d d M 00 00 00 O Cl Cl If) O 00 d- N d' 00 N �" �--� �--� O M s9 M 0000 dam" InO O N Qn 00 O N s9 ti 00 � 00 M OO M N llc� ' r-�, Qn ' 0000 - N OOi ti 69 N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 II II o T IM N 7 N M o0 00 10 10 11 111 Nil o •• • p N 69 69 o o0 7 D, O l� N N D, oo oc 01 O O .--i 00 1p N N �O ,�.--� 01 oc N oc N o0 oc 7 7 N O z F Q 69 69 01 M 7 O O M O O1 O o O, DD DD ko .--i OC o0 01 OC 00 OC 7 M 7 p oc N oc ,-. N 00 N 69 69 �(l 00 10 00 00 O�(l M l� N 00 LD N Ol 0o O O --i 7 7 �O M GD N 00 O O I p oc N N Ol M M N 69 69 O M 00 10 N O1 00 00 O M o 01 01 M 01 M O M M 00 O 7 O oo D, D, 7 M 10 N l� 10 0o O M iri o0 O 7 00 I M o0 O1 N O1 00 p N � 69 69 O O 10 00 M 00 I D, oc 7 D, O O M oo 01 O 00 10 0o O O x _ N O M p N 69 69 D, N D, O o0 01 0 oc _ I 7 M _ 7 D, M 00 O O --I p 7 vl 01 vl M 00 o0 N � 69 69 O 10 7 N 01 M o0 O o N 10 7 O1 O 00 00 Ooc I O1 O O O p M M N 01 00 M N 00 p oc N � 00 00 l� 7 O Ol M M vl o oc N t 0, O M 00 p 10 N �n N 10 �n 7 0o 10 O N 69 69 00 00 oc 10 01 O 10 O1 7 l� �n 10 O O 00 OC OC p 00 00 N � 69 69 •• • O z F Q •• • VILLAGE OF MOUNT PROSPECT, ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years * Business district is assessed additional 0.25% sales tax State of Illinois -199- Regional Village Home Rule Fiscal State County Transportation Direct Sales Tax Year Rate Rate Authority Rate Rate Total 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% 2017 * 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% * Business district is assessed additional 0.25% sales tax State of Illinois -199- et C� O N W ter. 0 O N C� V p 69 w o 0 0 0 0 0 0 0 0 o O O O 00 M M \O ACW 0 r". O SV. a 00 r CW O a U 00 01 �. l� W) CW 10 � N V') 00 00 O, O � O v'� cr ,O ,O O cr l� N 00 O, O O V) 00 U 00 H 10 00 ON 0 N N � a — N N 'O 00 0 0 r -- CW CW O V p O 69 � � O a Q •on y O v O • v� O� �O N � O �, 0 0 0 0 0 0 O O r-- o o O 00 N w t cw �O O� M O� a O O 00 v') O M N I v') � O t, W O DD M r-- 00 ISI CW r -- C W o 00 a 69 U r O � 0 O v O O O O vt M ll � y C' O� M a M N O o0 -- O �r •••� O M CW CW M. N --i 00 V7 M V7 U 69 U .a U � U X C, C� % CW O_ W ter. 0 O N VILLAGE OF MOUNT PROSPECT, ILLINOIS RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years 2008 Percentage of Less Amounts Estimated General Available Actual Taxable Fiscal Obligation In Debt Value of Per Year Bonds Service Fund Total Property* Capita 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 2017 45,784,843 184,195 45,600,648 0.94% 841.85 *See the schedule of Assessed Value and Actual Value of Taxable Property on page 191 for property value data. Note: Details of the Village's outstanding debt can be found in the notes to financial statements. Data Sources Audited financial statements Office of the County Clerk -201 - VILLAGE OF MOUNT PROSPECT, ILLINOIS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2017 (2) (3) Percentage Village of (1) Debt Applicable Mount Prospect Gross to the Village of Share Governmental unit Debt Mount Prospect of Debt Village of Mount Prospect S 79,585,387 100.000% S 79,585,387 County of Cook 3,085,186,750 1.128% 34,800,907 Forest Preserve District of Cook County 101,200,000 1.128% 1,141,536 Metropolitan Water Reclamation District 2,428,705,091 1.150% 27,930,109 Community College District 9535 28,950,000 0.014% 4,053 Community College District 9512 126,895,000 8.543% 10,840,640 School District 9214 37,480,000 18.912% 7,088,218 School District 9207 14,540,000 0.069% 10,033 School District 957 7,860,000 95.003% 7,467,236 School District 926 8,665,000 77.771% 6,738,857 School District 925 47,360,000 2.629% 1,245,094 School District 923 7,540,000 7.709% 581,259 School District 921 30,255,000 3.202% 968,765 School District 959 15,235,000 15.273% 2,326,842 Arlington Heights Park District 10,890,000 1.615% 175,874 Des Plaines Park District 2,050,000 1.749% 35,855 Mount Prospect Park District 3,758,788 65.520% 2,462,758 5,956,570,629 103,818,036 S 6,036,156,016 S 183,403,423 (1) Gross bonded debt excluding outstanding general obligation (alternate revenue bonds) which are expected to be paid from sources other then general taxation. (2) Determined by ratio of 2016 assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village of Mount Prospect. (3) Amount in column (2) multiplied by amount in column (1). Data Source Governmental units and the percentage of overlapping debt from the County Clerk's office. Gross debt of the overlapping governmental units obtained from publicly -available sources. -202- VILLAGE OF MOUNT PROSPECT, ILLINOIS SCHEDULE OF LEGAL DEBT MARGIN December 31, 2017 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. -203- 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 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 1,304,972,506 1,798,831,903 33,209 4.60% 2017 54,167 N/A 1,841,190,497 33,991 3.70% Note: 2017 Equalized Assessed Valuation is not available until 2018. Data Sources (1) U.S. Department of Commerce, Bureau of the Census (2) Office of the Cook County Clerk (3) IDES Local Area Unemployment Statistics -204- RM 0 0 0 0 0 0 0 0 0 0 0 N N o o M M�t N o 0 r- r- w,) o w,) w,) o 0 0 0 0 0 0 0 . 0 CC o � O o � O U O a �+ O � O p„i U O U � � �n d, oo O d, d, oo t N oo O kn kn kn a� o r M M o (a, w,) M N N oo kn � M M N N N N N RM 0 0 0 0 0 0 0 0 0 0 W t N `o N r- r- w,) w,) w,) w,) CC o � O O U O a � � U O U � � �n d, oo O d, d, oo t N O � O U Cn U U a v 0 _O 7.. W �" •'" O bq U � O Q, ,�' U O � O U U ti P.. CA RM 0 0 0 0 0 0 0 0 0 0 W t N `o N r- r- w,) w,) w,) w,) CC o � O O U O a � � U U �n d, oo O d, d, oo t N O � RM W CC U � U U W �" •'" O bq U � O Q, ,�' O � O RM VILLAGE OF MOUNT PROSPECT, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years Function/Program 2008 2009 2010 2011 PUBLIC REPRESENTATION/COMMUNITY AND CIVIC SERVICES 1.05 1.05 1.05 2.10 Total 1.05 1.05 1.05 2.10 GENERAL GOVERNMENT Village administration Administration 16.95 16.95 14.95 14.95 Finance 15.00 15.00 13.00 13.00 Total 31.95 31.95 27.95 27.95 Community development Community development 23.40 23.15 20.48 20.48 Community development/CDBG 1.20 1.20 1.25 1.25 Total 24.60 24.35 21.73 21.73 Human services department 7.60 10.60 9.50 9.50 Total 7.60 10.60 9.50 9.50 PUBLIC SAFETY AND PROTECTION Police Department 111.50 111.50 97.83 97.83 Fire Department 84.20 82.20 74.75 74.75 Total 195.70 193.70 172.58 172.58 PUBLIC WORKS DEPARTMENT Administration 3.35 3.35 2.85 2.85 Streets/buildings/parking 14.60 14.80 11.35 11.85 Forestry 10.80 10.80 10.70 9.75 Engineering 8.30 8.30 8.00 8.00 Water/sewer 26.15 26.15 26.50 25.00 Refuse disposal 2.90 2.90 2.90 2.90 Parking - - - 0.90 Vehicle maintenance 9.10 10.90 10.90 10.90 Total 75.20 77.20 73.20 72.15 VILLAGE TOTAL 336.10 338.85 306.01 306.01 Data Source Village budget -206- 2012 2013 2014 2015 2016 2017 2.10 2.10 2.05 2.15 2.20 2.10 2.10 2.10 2.05 2.15 2.20 2.10 15.45 15.45 15.45 16.85 16.75 17.35 13.00 13.00 13.00 13.00 13.00 13.00 28.45 28.45 28.45 29.85 29.75 30.35 17.75 18.50 18.50 18.50 18.75 18.75 1.25 1.00 1.00 1.00 0.75 0.75 19.00 19.50 19.50 19.50 19.50 19.50 9.50 9.50 9.50 9.50 9.50 9.55 9.50 9.50 9.50 9.50 9.50 9.55 99.50 100.50 100.50 99.50 101.50 102.50 74.50 74.50 74.50 75.00 81.00 81.00 174.00 175.00 175.00 174.50 182.50 183.50 2.85 2.85 2.85 2.85 3.85 3.35 11.85 12.45 12.40 12.40 12.35 12.35 9.75 9.25 9.35 9.25 8.35 8.35 8.00 8.00 8.00 8.00 8.00 8.00 25.00 24.75 24.75 24.75 2.90 25.25 2.90 2.90 2.90 2.90 24.75 2.90 0.90 0.90 0.90 0.90 0.90 0.90 10.90 10.75 10.75 10.75 10.75 10.75 72.15 71.85 71.90 71.80 71.85 71.85 305.20 306.40 306.40 307.30 315.30 316.85 -207- VILLAGE OF MOUNT PROSPECT, ILLINOIS OPERATING INDICATORS Last Ten Fiscal Years Function/Program 2008 2009 2010 2011 FINANCE DEPARTMENT Vehicle stickers issued 39,208 39,650 40,018 39,834 Utility bills 86,577 86,458 86,057 86,701 Real estate transfer tax stamps sold 947 986 1,086 1,022 COMMUNITY DEVELOPMENT Building Division Permits issued 2,687 2,415 2,922 2,821 Plan reviews 452 420 505 515 Building code inspections 7,631 8,564 8,783 8,508 Environmental Health Division Inspections Food service 340 394 400 394 Multi -family buildings 279 491 664 664 Swimming pools/spa 59 28 - - PUBLIC SAFETY Police Number of crimes 4,242 3,921 3,696 3,359 Number of service calls 25,631 23,600 22,028 19,943 Number of arrests 1,769 1,736 1,898 1,845 Moving violations 8,723 10,355 10,139 7,026 Parking citations 10,690 10,256 11,317 9,363 Fire Fire calls 2,019 1,817 1,888 2,350 EMS calls 3,487 3,535 3,465 3,590 Fire prevention inspections 3,264 4,258 3,790 3,418 Training hours 21,073 23,851 24,313 23,578 PUBLIC WORKS Streets Street reconstruction (miles) Street resurfacing (miles) 5.00 5.80 5.00 4.70 Crack filling (lbs) 55,000 57,118 46,846 40,871 Leaves removed (cubic yards) 16,272 18,970 15,424 14,843 Water Water mains installed (lineal feet) 8,079 5,475 5,475 - Water billed (1,000 gallons) 1,369,479 1,346,272 1,296,556 1,287,525 Sanitary sewers cleaned (ft) 30,000 55,150 55,150 54,236 Refuse (single/multi-family) Solid waste collected (tons) 32,101 30,231 31,963 32,264 Recycling (tons) 6,644 6,154 6,117 6,644 * 2017 are estimated amounts. Final figures are not available at time of printing report. Data Source Various village departments 2012 2013 2014 2015 2016 2017* 43,092 43,490 42,789 41,964 41,323 41,601 90,147 152,312 152,649 152,703 152,872 152,733 1,282 1,451 1,426 1,433 1,541 1,512 2,278 2,383 2,653 2,490 2,500 2,400 595 524 471 536 513 490 9,154 7,824 10,952 10,590 9,535 9,500 405 393 434 409 400 400 565 568 1,068 1,043 1,000 1,000 3,178 2,809 2,480 2,399 2,235 2,400 19,184 19,206 18,594 18,906 18,130 18,000 1,602 1,509 1,307 1,178 1,083 1,080 5,979 6,152 4,928 4,839 4,139 4,000 7,640 7,314 7,671 7,166 5,637 8,000 1,892 1,967 1,926 1,883 1,889 1,800 3,885 3,912 3,985 4,061 4,032 4,024 3,308 3,144 3,047 2,700 3,800 2,300 21,340 21,149 24,033 21,454 29,024 29,700 5.20 7.50 18.80 9.80 6.30 7.20 51,885 49,153 59,568 51,412 53,623 55,000 12,569 14,577 14,652 14,000 11,804 14,000 - - - 1,990 600 600 1,341,268 1,284,779 1,301,528 1,204,478 1,224,661 1,208,079 58,922 65,000 90,000 120,000 75,000 60,000 31,385 29,494 30,320 30,605 26,574 28,454 6,028 5,692 5,498 5,369 5,357 5,465 -209- I M N [� ,-� N 00 -- O N 00 N O M O M N 00 M N m O N 00O v -- O N 00 N ~ M 00 M N M \O N l 00 O v� -- O N 00 N ~ CIA M ~ om M N M\O N l� M m -- O N 00 N en M M Nm `O r—m N 00 kn O N 00 N M M O N w,)00 N M Nm N 00 O N 00 N U 00 m N m of N r- 00 N m � o N °O F- N M N N w 00 ,t O M N m O dl N l 00 Cq v' -- O N 00 N ~ M Cq 00 M -,t Ol M Nm `p M O 00 N O O N 00 N ~ M M -,t dl 00 M Nm `p M d Nkn O O N 00 N U ti bq W by 00 00 p �'. sfs. fs. y� O 41 O y ADDITIONAL DISCLOSURES REQUIRED BY SEC RULE 15c2-12 VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS FINANCIAL INFORMATION STATEMENT OF INDEBTEDNESS Notes: 1. The Village is a home rule unit under the 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 installment contract has a final maturity on June 3, 2019. Total principal outstanding on the IEPA installment contract was $170,271 as of December 31, 2017. Debt service is being paid from the Village's Y4 cent home rule sales tax instituted effective September 1, 1991 for the purpose of funding the Village's flood control program. Amount As Percent of Per Capita Applicable as of Assessed Estimated 2000 Census December 31, 2017 Value True Value 54,167 Assessed Valuation of Taxable Real Property, 2016 $ 1,619,158,852 100.00% 33.33% $ 29,891.98 Estimated True Value of Taxable Real Property, 2016 4,857,476,556 300.00% 100.00% 89,675.94 Direct Bonded Debt payable from Property Taxes (1) Payable From Property taxes $ 45,784,843 2.83% 0.94% $ 845.25 Self -Supporting Debt 33,800,544 2.09% 0.70% 624.01 Total Direct Bonded Debt $ 79,585,387 4.92% 1.64% $ 1,469.26 Overlapping Bonded Debt Payable from Property Taxes (2) Schools $ 37,270,997 2.30% 0.77% $ 688.08 Other Than Schools 66,547,039 4.11% 1.37% 1,228.55 Total Overlapping Bonded Debt $ 103,818,036 6.41% 2.14% $ 1,916.63 Total Direct and Overlapping Bonded Debt $ 183,403,423 11.33% 3.78% $ 3,385.89 Total Direct and Overlapping Bonded Debt Excl. Self -Supporting $ 149,602,879 9.24% 3.08% $ 2,761.88 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, 2017". RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December, 31, 2017) Principal Maturities Due Source of Payments Total Maturities Debt Service Tax Levies Calendar Property Annual Cumul. Levy Property Date Taxes Amount Percent Year Taxes 2018 3,085,000 3,085,000 6.9% 2017 4,518,368 2019 3,200,000 3,200,000 14.1% 2018 4,563,682 2020 4,920,000 4,920,000 25.2% 2019 5,327,076 2021 4,605,000 4,605,000 35.5% 2020 5,723,916 2022 3,915,000 3,915,000 44.3% 2021 5,813,911 2023 2,995,000 2,995,000 51.1% 2022 3,868,475 2024 2,470,000 2,470,000 56.6% 2023 3,243,125 2025 2,590,000 2,590,000 62.4% 2024 3,274,925 2026 2,690,000 2,690,000 68.5% 2025 3,288,725 2027 2,780,000 2,780,000 74.7% 2026 3,291,275 2028 2,890,000 2,890,000 81.2% 2027 3,312,050 2029 2,030,000 2,030,000 85.8% 2028 2,359,006 2030 1,080,000 1,080,000 88.2% 2029 1,313,681 2031 1,130, 000 1,130, 000 90.7% 2030 1,323,744 2032 1,185, 000 1,185, 000 93.4% 2031 1,333,544 2033 1,245,000 1,245,000 96.2% 2032 1,346,144 2034 385,000 385,000 97.1% 2033 438,388 2035 410,000 410,000 98.0% 2034 451,356 2036 435,000 435,000 99.0% 2035 463,544 2037 460,000 460,000 100.0% 2036 474,950 $44,500,000 $44,500,000 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 installment contract has a final maturity on June 3, 2019. Total principal outstanding on the IEPA installment contract was $170,271 as of December 31, 2017. Debt service is being paid from the Village's Y4 cent home rule sales tax instituted effective September 1, 1991 for the purpose of funding the Village's flood control program. DEBT RATIOS AND PER CAPITAL DEBT -LAST TEN GENERAL OBLIGATION BOND SALES (Note 1) Per Capita (3) Direct & Overlapping Debt Including Excluding Ratio to Estimated Actual Value Self - Supporting Supporting (2) Direct Debt Direct & Overlapping Debt 2,362.39 2,287.21 Including Excluding Including Excluding Village Issue 2,749.42 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% December 20, 2017 9,740,000 1.64% 1.04% 3.78% 3.19% Per Capita (3) Direct & Overlapping Debt Including Excluding Self- Self - Supporting Supporting (2) 2,544.05 2,316.16 2,362.39 2,287.21 2,445.85 2,445.85 2,749.42 2,749.42 2,749.42 2,749.42 2,921.82 2,921.82 2,921.82 2,921.82 2,921.82 2,921.82 3,042.80 3,043.80 3,253.40 3,223.59 3,356.50 3,309.47 3,356.50 3,296.96 3,385.89 2,829.19 Notes: 1. Information in table pulled from applicable Official Statements. 2. Excludes the Village's general obligation bonds which are payable from non -property taxes. 3. Village population estimates used in these calculations were 56,265 in 2001-2009, and 54,167 beginning in 2010. 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 2016. 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". -212- Real Property Tax Net For Plus Total For All Increase Levy General Taxing Incremental Taxing Over Year (2) Purposes (3) Valuation Purposes (4) Prior Year 2011 1,694,952,801 42,659,295 1,737,612,096 (7.7%) 2012 1,568,774,082 38,247,882 1,607,021,964 (7.5%) 2013 1,357,294,084 32,976,484 1,390,270,568 (13.5%) 2014 1,390,377,678 33,230,688 1,423,608,366 2.4% 2015 1,354,550,848 32,251,850 1,386,802,698 (2.6%) 2016 1,619,158,852 - 1,619,158,852 16.8% 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 2016. 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". -212- DETAILED OVERLAPPING BONDED INDEBTEDNESS PAYABLE FROM PROPERTY TAXES AT DECEMBER 31, 2017 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 2016 of Gross Debt to be Real Property Gross Paid From Property Taxes (1) in Taxing Body Bonded Debt Percent Amount 37.7% 7,860,000 95.003% 7,467,236 26.7% 15,235,000 15.273% 2,326,842 26.4% 8,665,000 77.771% 6,738,857 3.4% 30,255,000 3.202% 968,765 3.2% 47,360,000 2.629% 1,245,094 2.5% 7,540,000 7.709% 581,259 99.8% 37,480,000 18.912% 7,088,218 0.2% 14,540,000 0.069% 10,033 0.2% 28,950,000 0.014% 4,053 99.8% 126,895,000 8.543% 10,840,640 0.426 0.406 0.557 37,270,997 100.0% 3,186,386,750 1.128% 35,942,443 100.0% 2,428,705,091 1.150% 27,930,109 66.8% 3,758,788 65.520% 2,462,758 25.4% - - - 2.8%a 10,890,000 1.615% 175,874 1.8% 2,050,000 1.749% 35,855 3.3% - - - Notes: 1. Village's share based upon 2016 Real Property valuations. TAX RATES PER $100 EQUALIZED ASSESSED VALUATION (Note 1) Village of Mount Prospect: Bonds and Interest Pensions (Police, Fire) Police Protection Fire Protection Corporate Garbage Total Village Cook County, Including Forest Preserve District Metropolitan Water Reclamation District Mount Prospect Park District Mount Prospect Public Library Special Service Area No. 5 Community Consolidated School District No. 59 Township High School District No. 214 Harper College No. 512 All Other Total (2) Village as a Percent of Total 66,547,039 $ 8.813 $ 10.418 $ 10.420 $ 10.819 $ 9.605 11.9% 12.2% 12.2% 12.5% 12.0% 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. -213- Levy Years 2012 2013 2014 2015 2016 $ 0.113 $ 0.167 $ 0.165 $ 0.170 $ 0.143 0.316 0.393 0.387 0.426 0.381 - - - 0.372 0.311 - - - 0.384 0.322 0.501 0.689 0.724 - - 0.121 0.026 - - $ 1.051 $ 1.275 $ 1.276 $ 1.352 $ 1.157 0.594 0.629 0.637 0.621 0.596 0.370 0.417 0.430 0.426 0.406 0.557 0.657 0.654 0.681 0.594 0.646 0.761 0.758 0.801 0.687 0.122 0.140 0.138 0.142 0.119 2.673 3.172 3.176 3.291 2.998 2.324 2.768 2.776 2.881 2.527 0.373 0.444 0.451 0.466 0.416 0.103 0.155 0.124 0.158 0.105 $ 8.813 $ 10.418 $ 10.420 $ 10.819 $ 9.605 11.9% 12.2% 12.2% 12.5% 12.0% 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. -213- TAX EXTENSIONS AND COLLECTIONS (Village Purposes Only) Total Taxes Collected as Levy Collection Total Taxes of December 31, 2017 (Note 1) Year Year Extended Amount Percent (2) 2012 2013 16,477,871 16,278,228 98.79% 2013 2014 17,301,436 17,064,355 98.63% Taxpayer 2014 2015 17,741,219 17,521,845 98.76% 2015 2016 18,313,527 18,130,372 99.00% 2 2016 2017 18,733,668 18,534,114 98.93% Mount Prospect Plaza 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, 2016 for 2017 tax purposes. 2. Total 2016 Village valuation is $1,619,158,852. -214- Equalized Assessed Percent of Rank Taxpayer Business/Properties Valuation (1) Village (2) 1 DLC Management Corporation Shopping Center 26,458,780 1.63% 2 Home Properties Colony Square Apartments 18,963,895 1.17% 3 Mount Prospect Plaza Shopping Center 16,479,990 1.02% 4 United Airlines Inc. Operations Center 13,911,530 0.86% 5 Individual Commercial 12,887,703 0.80% 6 Golf Plaza I and II Shopping Center 12,744,927 0.79% 7 First Industrial Realty Real Estate 9,588,778 0.59% 8 Cummins Allison Corporation Manufacturing 7,422,916 0.46% 9 Costco Properties Warehouse Store 7,307,278 0.45% 10 LIT Industrial Limited Real Estate 7,012,558 0.43% $ 132, 778, 355 8.20% Notes: 1. Valuations as of January 1, 2016 for 2017 tax purposes. 2. Total 2016 Village valuation is $1,619,158,852. -214- 2010 AND 2016 TAX BASE DISTRIBUTION BY PROPERTY CLASSIFICATION* A breakdown by property classification of the Village's levy year 2017 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 2017 Revenues: 2013 Taxable Valuation 2015 Percent of Total Budget Classification 2010 2016 % Increase 2010 2016 Residential 1,330,339,716 1,191,992,297 -10.40% 72.51% 73.66% Commercial 332,297,825 304,999,806 -8.21% 18.11% 18.85% Industrial 171,115,770 121,128,843 -29.21% 9.33% 7.49% Railroad 927,196 103,906 -88.79% 0.05% 0.01% Total 1,834,680,507 1,618,224,852 -11.80% 100.00% 100.00% A breakdown by property classification of the Village's levy year 2017 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) -215- Actual 2017 Revenues: 2013 2014 2015 2016 Budget Actual Property Taxes 12,645,791 14,392,732 15,317,183 15,917,480 16,278,000 16,112,039 Sales Taxes 13,627,166 14,640,814 16,370,735 17,202,418 18,600,000 19,458,742 State Income Taxes 5,161,051 5,186,155 5,763,542 5,272,834 5,543,000 4,975,194 Licenses, Permits & Fees 3,589,368 2,496,760 2,428,969 2,350,787 2,347,000 2,334,232 Utility Taxes 4,658,265 4,093,598 3,774,729 3,629,525 3,765,000 3,491,473 Charges for Service 1,858,829 1,928,223 1,699,217 1,782,869 1,582,955 1,527,168 Fines & Forfeits 430,960 470,466 511,536 414,885 452,000 415,189 Investment Income 6,561 (64,978) 8,612 49,202 151,000 132,925 Food & Beverage Tax 719,190 738,642 759,073 805,172 773,000 839,472 Real Estate Transfer Tax 853,617 954,644 1,371,699 1,049,770 1,190,500 1,190,331 All Other Revenues 1,445,740 2,450,829 2,315,618 3,076,582 3,987,640 3,325,198 Total Revenues $ 44,996,538 $ 47,287,885 $ 50,320,913 $ 51,551,524 $ 54,670,095 $ 53,801,963 Expenditures: General Government Public Representation Division 114,948 142,574 137,716 141,249 163,600 134,039 Village Manager's Office 3,185,452 3,166,149 3,529,065 4,031,450 4,780,126 4,730,808 Finance Department 1,843,581 2,007,010 1,945,587 1,972,523 2,570,392 2,466,917 Community Development - Administration 661,459 673,549 662,596 734,282 948,257 933,069 Benefit Payments 46,150 46,300 46,455 46,615 46,781 46,780 Total General Government $ 5,851,590 $ 6,035,582 $ 6,321,419 $ 6,926,119 $ 8,509,156 $ 8,311,613 Public Safety: Code Enforcement 711,081 880,723 812,292 877,060 829,292 820,925 Police Department 15,783,921 16,578,937 16,277,671 17,067,883 18,229,821 17,823,169 Fire & Emergency Protection Department 12,678,986 13,166,937 13,171,002 14,473,302 15,609,220 15,522,366 Total Public Safety $ 29,173,988 $ 30,626,597 $ 30,260,965 $ 32,418,245 $ 34,668,333 $ 34,166,460 Highways & Streets 7,342,643 7,500,480 6,935,457 7,282,165 8,282,369 7,613,341 Health 142,062 151,586 148,731 160,555 248,627 261,533 Welfare 1,569,824 1,585,083 1,529,810 1,561,199 1,613, 704 1,548,489 Culture & Recreation 435,931 421,517 467,611 499,208 635,172 585,907 Net Transfers (InyOut 166,247 - 281,599 1,240,625 600,000 600,000 Total Expenditures $ 44,682,285 $ 46,320,845 $ 45,945,592 $ 50,088,116 $ 54,557,361 $ 53,087,343 Revenues Over (Under) Expenditures $ 314,253 $ 967,040 $ 4,375,321 $ 1,463,408 $ 112,734 $ 714,620 Ending Fund Balance $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 18,684,351 $ 18,797,085 $ 19,398,971 -215- Balance Sheet - December 31 Assets: 2013 2014 2015 2016 2017 Cash & Investments $ 6,886,656 $ 6,879,252 $ 11,009,774 $ 11,892,092 $ 14,814,727 Receivables Property Taxes 14,543,097 15,160,497 15,733,573 16,087,246 16,333,702 Other Taxes 5,711,586 5,747,674 6,344,148 6,772,937 6,220,011 All Other 492,912 468,180 471,824 435,700 417,856 Due From Other Funds 212,603 154,882 473,348 735,763 92,845 Due From Other Governments 53,602 136,834 159,403 653,254 186,629 All Other Assets 297,762 337,165 204,023 188,247 261,219 Total Assets $ 280 198,218 $ 28,884,484 $ 34,396,093 $ 36,765,239 $ 38,326,989 Liabilities & Fund Balance Accounts Payable $ 334,043 $ 216,535 $ 578,648 $ 833,274 $ 1,463,624 Deferred Revenues Property Taxes 14,396,036 15,138,046 15,691,708 16,087,246 16,333,702 All Other Liabilities 1,589,557 684,281 904,794 1,160,368 1,130,692 Fund Balance: Nonspendable 297,762 337,165 204,023 188,247 261,219 Restricted - - - - - Committed - - - - Unassigned 11, 580, 820 12, 508, 457 17, 016, 920 18, 496,104 19,137, 752 Total Fund Balance $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 18,684,351 $ 19,398,971 Total Liabilities & Fund Balance $ 28,198,218 $ 28,884,484 $ 34,396,093 $ 36,765,239 $ 38,326,989 Notes: 1. This condensed financial information for the years ending December 31, 2013-2017 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. -216- COMBINED STATEMENT -ALL FUNDS (Note 1) Fund Balances 2013-2016 and Summary 2017 Revenues, Excess Revenues and Fund Balance (Fiscal Years Ended December 31) Notes: 1. This condensed financial information for the years ending December 31, 2013-2017 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, 2017 included an unmodified "Independent Auditor's Report". Similar unqualified/unmodified opinions were included in the Village's Comprehensive Annual Financial Reports for the years ending December 31, 2013-2016. 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, 2017, 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 ofAmerica." 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. -217- Fiscal Year Ended December 31, 2017 Revenue Revenue Incl. Transfers Over Property (Under) Fund Governmental Fund Types (2): 2013 2014 2015 2016 Tax Total Expenditures Balance General Fund * $ 11,878,582 $ 12,845,622 $ 17,220,943 $ 18,684,351 $ 16,112,039 $ 53,801,963 $ 714,620 $ 19,398,971 Special Revenue Funds: Motor Fuel Tax $ 338,861 $ 1,397,365 $ 1,927,676 $ 2,465,482 $ - $ 1,427,785 $ 278,990 $ 2,744,472 Community Development Block Grant - - - - 404,566 - - Refuse Disposal* 2,445,117 1,652,809 1,191,201 1,363,621 4,317,771 79,024 1,442,645 Asset Seizure 42,659 83,675 92,655 173,079 30,052 (171) 172,908 DEA shared Funds 11,514 19,938 19,951 20,013 181 181 20,194 DUI Fines 65,287 101,080 124,735 121,449 27,125 19,479 140,928 Foreign Fire Tax Fund 273,346 287,977 302,729 341,678 85,478 10,745 352,423 Business District Fund 83 - - - 1,451,171 - - Prospect/Main TIF (687,995) 4,931,142 4,633,022 3,945,027 Total Special Revenue 3,176,8673,542,844r 3,658,947 r 3,797,327 $ $ 12,675,271 5,021,270 '8,818,597 Debt Service * 121,491 131,635 154,206 168,152 2,284,000 4,913,203 16,043 184,195 Capital Projects (3) 15,705,506 17,785,571 4,738,536 3,224,446 5,541,435 354,768 3,579,214 Total Governmental $ 30,882,446 $ 34,305,672 $ 25,772,632 $ 25,874,276 $ 18,396,039 $ 76,931,872 $ 6,106,701 $ 31,980,977 Proprietary & Fiduciary Fund Types Enterprise Funds (4): Water and Sewer* 34,086,453 34,240,404 41,273,710 40,610,650 $ 1,514,452 $ 13,510,977 $ 717,312 41,327,962 Village Parking System 323,832 349,414 643,238 588,378 - 346,195 116,322 704,700 Internal Service Funds (5) 14,587,299 15,797,609 17,537,531 19,174,062 12,222,687 600,653 19,774,715 Pension Trust Funds: Police Pension 55,375,975 58,819,925 58,500,040 61,976,686 13,975,312 9,092,376 71,069,062 Firefighter's Pension 53,716,416 56,568,339 56,856,702 58,344,829 13,398,679 7,920,511 66,265,340 Total Proprietary & Fiduciary $ 158,089,975 $ 165,775,691 $ 174,811,221 $ 180,694,605 $ 1,514,452 $ 53,453,850 $ 18,447,174 $ 199,141,779 Total All Funds (Memo Only) $ 188,972,421 $ 200,081,363 $ 200,583,853 $ 206,568,881 $ 19,910,491 $ 130,385,722 $ 24,553,875 $ 231,122,756 * Designated as major funds. Cash & Investments at 12/31 (6): 2013 2014 2015 2016 2017 General Fund $ 6,886,656 $ 6,879,252 $ 11,009,774 $ 11,892,092 $ 14,814,727 Internal Service Funds 10,830,350 10,476,211 11,551,998 13,177,384 12,210,417 Refuse Disposal 2,231,180 1,365,133 844,053 960,475 1,054,842 Other Special Revenue Funds 1,575,858 2,716,735 3,541,745 4,399,893 8,748,239 Debt Service Funds 113,267 130,210 138,721 167,652 162,895 Subtotal $ 21,637,311 $ 21,567,541 $ 27,086,291 $ 30,597,496 $ 36,991,120 Capital Project Funds 15,487,737 16,290,597 5,442,661 2,794,596 3,209,472 Water &Sewer 5,382,441 4,697,147 3,185,314 3,179,625 7,577,274 Other Enterprise Funds 316,808 300,258 488,612 428,260 531,623 Pension Trust Funds 108,760,597 115,091,487 115,116,154 119,963,475 137,068,690 Other Fiduciary Funds 1,511,610 1,209,488 1,136,998 1,368,315 1,126,624 Total $ 153,096,504 $ 159,156,518 $ 152,456,030 $ 158,331,767 $ 186,504,803 Notes: 1. This condensed financial information for the years ending December 31, 2013-2017 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, 2017 included an unmodified "Independent Auditor's Report". Similar unqualified/unmodified opinions were included in the Village's Comprehensive Annual Financial Reports for the years ending December 31, 2013-2016. 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, 2017, 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 ofAmerica." 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. -217- CAPITAL ASSETS (Note) (December 31, 2017) 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. -218- 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 $ 2,293,847 Construction in Progress $ 946,477 Total Assets Not Being Depreciated $ 12,585,293 Total Assets Not Being Depreciated $ 18,497,649 Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings $ 38,778,498 Buildings and Improvements $ 4,499,808 Improvements Othern Than Buildings 436,273 Equipment 5,017,968 Infrastructure and All Other 101,512,328 Infrastructure 29,537,909 Total Capital Assets Being Depreciated $ 140,727,099 Total Capital Assets Being Depreciated $ 39,055,685 Less Accumulated Deprteciation $ 89,822,046 Less Accumulated Deprteciation $ 20,846,563 Total Capital Assets Being Depreciated, Net $ 50,905,053 Total Capital Assets Being Depreciated, Net $ 18,209,122 Net Assets $ 63,490,346 Net Assets $ 36,706,771 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. -218-