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HomeMy WebLinkAbout4.1 Annual Report of the Audit Committee and Acceptance of Comprehensive Annual Financial Report (CAFR) for December 31, 2020t�.f)AAI1C 1�d'+rn�iect Subject Annual Report ofthe Audit Committee and Acceptance of ComprehensiveAnnual Report for • 31, • • Meeting July 20, 2021 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - Fiscal Impact Dollar Amount Budget Source Category • • Type Action Item Information The Audit Committee has prepared it's annual report to the Village Board on Committee activities for the past year. A primary function of the Audit Committee is oversight of the annual audit process. The audit process for 2020 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 the information and answer questions on the recently concluded audit process and 2020 CAFR. Please follow this link to view the 2020 CAFR. The major items to consider from the CAFR are: a) For the year 2020, the independent audit firm Lauterbach & Amen, LLP has issued a clean and unqualified opinion on the financial statements. Per the audit report, the financial statements are free from any material misstatement, and it fairly represents the financial condition of the Village. The financial statements are prepared in accordance with the generally accepted accounting principals and standards issued by the Government Accounting Standard Board. b) The Management Letter communicates if there are any material weaknesses in the internal controls, and the auditor has identified none. 1 c) The General Fund Reserves are $26.2 million, of which $23.5 million is unrestricted. d) The overall Governmental Activity Fund Balance is $40.4 million. e) The overall Business Type activity Fund Balance is $37.9 million, of which $20.5 million is invested in capital assets and infrastructures. f) Police and Fire Pension Funds are showing the funded ratio of 70 percent and 30 percent unfunded liability totals at $32.5 million for Fire and $37.5 million for Police. g) There was a minor restatement of $1.7 million (prior period adjustment for the business district note) in the non-current liability section, which positively impacted the net position of the Village. h ) The CAFR also included the Certificate of Achievement for Excellence in the Financial Reporting received from GFOA for 2019 Audit. This marks 27th consecutive year of the Village receiving this award. The Village has also submitted the 2020 CAFR for the award program. Alternatives 1. Accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for the period ending December 31, 2020. 2. Action at the discretion of Village Board. Staff Recommendation Accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for the period ending December 31, 2020. ATTACHMENTS: Mount Prospect Comprehensive Annual Financial Report 1220.pdf Annual Report Audit Committee - 2020.pdf 2 VILLAGE OF MOUNT PROSPECT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020 Prepared by: Finance Department Amit R. Thakkar Director of Finance Jennifer Fitzgerald Assistant to the Director of Finance 4 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS INTRODUCTORY SECTION PAGE List of Principal Officials 1 Organizational Chart 2 Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 9 FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 12 MANAGEMENT'S DISCUSSION AND ANALYSIS 16 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements Statement of Net Position 29 Statement of Activities 31 Fund Financial Statements Balance Sheet - Governmental Funds 33 Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities 35 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 37 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities 39 Statement of Net Position - Proprietary Funds 41 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 43 Statement of Cash Flows - Proprietary 44 Statement of Fiduciary Net Position 45 Statement of Changes in Fiduciary Net Position 46 Notes to the Financial Statements 47 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions Illinois Municipal Retirement Fund 107 Police Pension Fund 108 Firefighters' Pension Fund 109 5 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS PAGE FINANCIAL SECTION - Continued REQUIRED SUPPLEMENTARY INFORMATION - Continued Schedule of Changes in the Employer's Net Pension Liability Illinois Municipal Retirement Fund 110 Police Pension Fund 112 Firefighters' Pension Fund 114 Schedule of Investment Returns Police Pension Fund 116 Firefighters' Pension Fund 117 Schedule of Changes in the Employer's Total OPEB Liability 128 Retiree Benefit Plan 118 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 145 General Fund 119 Prospect/Main TIF - Special Revenue Fund 120 OTHER SUPPLEMENTARY INFORMATION Governmental Funds Major Governmental Funds General Fund Schedule of Revenues - Budget and Actual 124 Schedule of Expenditures - Budget and Actual 127 Schedule of Detailed Expenditures - Budget and Actual 128 Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 145 Police and Fire Building Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 146 Nonmajor Governmental Funds Combining Balance Sheet 149 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 150 Nonmajor Special Revenue Funds Combining Balance Sheet 152 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 154 Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 156 Schedule of Expenditures - Budget and Actual 157 Refuse Disposal - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 158 Schedule of Expenditures - Budget and Actual 159 6 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION - Continued PAGE OTHER SUPPLEMENTARY INFORMATION - Continued Community Development Block Grant - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 160 Asset Seizure - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 161 Federal Equitable Share - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 162 DUI Fines - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 163 Foreign Fire Insurance - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 164 Business District - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 165 Nonmajor Capital Projects Funds Combining Balance Sheet 166 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 167 Capital Improvement- Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 168 Schedule of Expenditures - Budget and Actual 169 Flood Control Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 170 Schedule of Expenditures - Budget and Actual 171 Street Improvement Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 172 Proprietary Funds Enterprise Funds Water and Sewer Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 175 Schedule of Operating Revenues 176 Schedule of Operating Expenses - Budget and Actual 177 Nonmajor Enterprise Funds Combining Statement of Net Position 180 Combining Statement of Revenues, Expenses and Changes in Net Position 181 Combining Statement of Cash Flows 182 Parking System Revenue Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 183 Schedule of Operating Expenses - Budget and Actual 184 7 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION - Continued PAGE OTHER SUPPLEMENTARY INFORMATION - Continued Village Parking System Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 185 Schedule of Operating Expenses - Budget and Actual 186 Internal Service Funds Combining Statement of Net Position 189 Combining Statement of Revenues, Expenses and Changes in Net Position 191 Combining Statement of Cash Flows 193 Computer Replacement Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 195 Schedule of Operating Expenses - Budget and Actual 196 Risk Management Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 197 Schedule of Operating Revenues 198 Schedule of Operating Expenses - Budget and Actual 199 Vehicle Replacement Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 200 Schedule of Operating Revenues 201 Schedule of Operating Expenses - Budget and Actual 202 Vehicle Maintenance Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 203 Schedule of Operating Revenues 204 Schedule of Operating Expenses - Budget and Actual 205 Fiduciary Funds Pension Trust Funds Combining Statement of Fiduciary Net Position 207 Combining Statement of Changes in Fiduciary Net Position 208 Schedule of Changes in the Fiduciary Net Position - Budget and Actual Police Pension 209 Firefighters' Pension 210 Consolidated Year -End Financial Report 211 SUPPLEMENTAL SCHEDULES General Long -Tenn Debt Long -Term Debt Payable by Governmental Funds 214 0 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS PAGE FINANCIAL SECTION - Continued SUPPLEMENTAL SCHEDULES - Continued Long -Term Debt Requirements General Obligation Bonds of 2012 216 General Obligation Bonds of 2013 217 General Obligation Bonds of 2014 218 General Obligation Refunding Bonds of 2016 219 General Obligation Refunding Bonds of 2016A 220 General Obligation Bonds of 2017 221 General Obligation Bonds of 2018A 222 General Obligation Bonds of 2018B 223 General Obligation Bonds of 2019A 224 General Obligation Bonds of 2019B 225 STATISTICAL SECTION (Unaudited) Net Position by Component - Last Ten Fiscal Years 228 Changes in Net Position - Last Ten Fiscal Years 230 Fund Balances of Governmental Funds - Last Ten Fiscal Years 232 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 234 Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years 236 Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years 238 Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago 240 Property Tax Levies and Collections - Last Ten Fiscal Years 241 Sales Taxes by Category - Last Ten Fiscal Years 242 Business District Sales Taxes by Category - Last Ten Fiscal Years 244 Home Rule Sales Taxes by Category - Last Ten Fiscal Years 246 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 248 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 249 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 250 Schedule of Direct and Overlapping Governmental Activities Debt 251 Schedule of Legal Debt Margin 252 Demographic and Economic Statistics - Last Ten Fiscal Years 253 Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago 254 Full -Time Equivalent Employees by Function/Program - Last Ten Fiscal Years 256 Operating Indicators by Function/Program - Last Ten Fiscal Years 258 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 260 Additional Disclosures Required by SEC Rule 15c2-12 263 0 INTRODUCTORY SECTION This section includes miscellaneous data regarding the Village including: • List of Principal Officials • Organizational Chart • Letter of Transmittal • Certificate of Achievement for Excellence in Financial Reporting 10 VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Officials December 31, 2020 LEGISLATIVE Mayor Arlene A. Juracek Trustees William A. Grossi Richard F. Rogers Eleni Hatzis Colleen E. Saccotelli Paul Wm. Hoefert Michael A. Zadel ADMINISTRATION Michael J. Cassady, Village Manager Nellie S. Beckner, Assistant Village Manager Karen Agoranos, Village Clerk Amit R. Thakkar, Director of Finance/Treasurer William J. Cooney, Jr., Director of Community Development William M. Schroeder, Director of Building and Inspection Services Julie K. Kane, Director of Human Services John A. Koziol, Chief of Police Brian Lambel, Fire Chief Sean P. Dorsey, Director of Public Works 1 11 VILLAGE OF MOUNT PROSPECT, ILLINOIS Organizational Structure 12 MAYOR Paul Wm. Hoefert TRUSTEES Agostino S. Filippone Terri Gens John J. Matuszak Peggy Pissarreck Richard F. Rogers I Colleen E. Saccotelli Village of Mount Prospect 50 S. Emerson Street, Mount Prospect, Illinois 60056 June 23, 2021 The Honorable Paul W. Hoefert, 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, 2020 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 Lauterbach & Amen, 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, 2020 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, 2020 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. 3 13 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 23 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 workshops are held with members of the Village Board and Finance Commission in October and November. 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 (e.g., Police Department Investigations). Budget amendments require approval of the Village Board. Budget -to -actual comparisons are provided for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Corporate Fund and major special revenue funds, this comparison is presented in the required supplementary information. For governmental funds, other than the General Corporate Fund and major special revenue funds, with appropriated annual budgets, this comparison is presented in the non -major governmental fund subsection of this report. 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 a commitment to ensuring its citizens are able to live and work in an enviable environment. Below is a list of the more significant accomplishments and initiatives that address various goals identified for 2020. COVID-19 Pandemic — COVID-19, a global pandemic started in February 2020, impacted the Village operations starting in March 2020. The Village was quick in implementing strategies to minimize the impact of COVID-19. The Village enacted a State of Emergency, started an Emergency Operation Center, allowed its employees to work from home based on the nature of the job and reduced the footprint. All of the above steps were implemented without impacting service levels or quality of service. The Village also implemented a Contingency Plan based on the initial estimate of $5.6 million in reduced revenues and proposed spending reductions of $7.0 million. Due to a strong tax base and the thriving local economy in the Village, the Village revenues were not impacted to a greater degree. With outperforming income tax, use tax, ambulance billing fees and a few other revenue sources, the Village did not incur any loss in the revenue for the year 2020. The Village also did not experience any major incident of outbreak within its employees or departments. 4 14 • Public Safety Building — The construction of the new Police Headquarter at 799 Biermann Ct. and Fire Headquarter at 111 E. Rand Road was completed during the year 2020. Both of the facilities are in operation since spring 2020. • Levee 37 Plan — The Village successfully secured $1,300,000 in grant funding for the construction of storm water detention and associated stoim mainline pipe upsizing in the Newton subdivision tributary to the Des Plaines River. The project was approved in FY 2019 and was significantly completed in FY 2020. The Village also secured $3,000,000 in grant funding for the Levee 37 Phase Il improvements at Aspen Trails Park. • Maple Street Parking Deck — The Village issued $8.0 million bonds in 2019 for the development projects within the Prospect & Main TIF. $7.0 million from the bond was spent on the construction of the Maple Street Parking Deck. The Parking deck provides 268 spaces in the downtown area for commuters and retail use. • Edwin and Elsie Meyn Busse Park (Pocket Park) — The Village completed the construction of the Edwin and Elsie Meyn Busse Park, also known as Pocket Park in 2020. The park was dedicated on August 8 and is a new thriving downtown destination for people of all age groups. • Sidewalk Policy & Program — The Village successfully implemented various strategies to repair the sidewalks and have mitigated over 2,000 vertical offsets in the Village's sidewalk network. • Street Lights Program — The Village completed the conversion of 80 streetlights to LED fixtures reducing energy usage on Central Road. • Busse Triangle Property Development & 10 N. Main Development —The development of 20 West and Park Terrace added 85 additional residential units in the downtown area. The construction for 97 apartment units was also significantly completed at 10 N. Main in 2020. The Village also acquired the properties for Phase 11 development of the Busse Triangle. Part of the acquired property will be sold to Chase Bank and the Mount Prospect Downtown branch of Chase Bank will be relocated to the corner of Main and Northwest Highway. • Traffic Control on Major Corridors — The Village completed Phase I engineering for the Rand Road/ Central Road/Mount Prospect Road intersection. The Village also started Phase I engineering for Rand Road/Kensington Road/Route 83 intersection. • Business Grant Program — The Village used part of the Cares Act allocation from Cook County and repurposed some of the existing budgets and funded a $590,000 Restaurant Grant Program. A total of 59 qualified restaurants were given $10,000 each during the year 2020. • Recreational Marijuana — The State of Illinois approved recreational use of cannabis in 2019. The Village had initially disapproved the sale of adult cannabis in 2019, but reconsidered the issue in 2020 and opted to allow the sale of adult recreational cannabis in the Village. The Village is estimated to bring additional tax revenues from $600,000 to $900,000 per year from the sale of recreational cannabis. Refer to the Strategic Plan tab of the 2021 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 36`h consecutive year. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Village operates. 15 Global Pandemic. COVID-19 was an uncharted territory for every organization, and local governments are not an exception to this. At the beginning of the pandemic in early 2020, the Village had to adopt many operational changes and reduce its footprint wherever possible. The Village was able to successfully handle the pandemic and its financial impact due to early adoption of its contingency plan. The Village has a five-step contingency plan, as listed below: 1. Eliminate or defer capital projects/purchases. 2. Reduce funding (lease payments) of computer and vehicle replacement programs. 3. Institute a freeze or reduction in commodity, contractual service, and supply accounts, where possible. 4. Review the catalog of programs and services provided by the Village. 5. Review of staffing levels. The Village implemented the first three steps of the contingency plan. Village Administration and the Leadership Team came up with $3.4 million in the postponement of capital improvement items and $3.6 million in the operating budget items. The Village's flexible and conservative budget policies came to the rescue and the Village was able to adopt the plan in May 2020. The revenue shortfall amount was revised from time to time during 2020. Because of outperforming revenues including income tax, use tax, Cares Act grant, and ambulance billing fees, the Village did not experience major revenue shortfalls. The outperforming revenues have offset the shortfalls from the underperforming revenues. Since the total revenue shortfall was not to the extent estimated in May 2020, the Village resumed the vehicle replacement program and contributed the full budgeted amount for the year 2020. In addition, all the postponed capital project items were approved and funded as part of the Community Investment Program for the year 2021. 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, 2020 were $21,922,547 compared to $22,930,474 for the previous year, a decrease of 4.39 percent. The decrease from the prior year is mainly due to the COVID-19 pandemic. The Village has seen an extraordinary growth in the sales tax revenue in recent years. In spite of the pandemic, the Village was able to retain a significant portion of the growth in the sales tax revenue. Since the Village's portion of sales tax receipts is based on a 1% tax rate, these receipts represent total retail sales of approximately $2.19 billion for 2020. The segment generating the most sales tax contains products with inelastic demand, which protects the Village's sales tax revenue. The Village will continue its efforts in the area of economic development and is optimistic to recover from the economic losses in the fiscal year 2021. The Village is divided mainly between Elk Grove Township and Wheeling Township, and there is a small portion of the Village within the jurisdiction of the Maine Township. Due to the recent triennial assessment in 2019, the Elk Grove Township assessed values increased on average by 53 percent, while the same increased by 31 percent in Wheeling Township. The increases in the assessed value has restored the equalized assessed value of the Village back to its 2008 - 2009 level. The total equalized assessed value for the tax year 2019 (after exemptions) was $1,971,307,340. With new development in the downtown Mount Prospect, the equalized assessed value for the Village and its Prospect & Main Tax Increment Financing District is expected to improve further for the tax year 2020 (tax payable in 2021). Mount Prospect's average unemployment during 2020 was 6.6%. This is a significant increase from the prior year (2.7 in 2019). The average unemployment rate for Cook County for 2020 was 9.4%, while the same for the State of Illinois was 9.5%. Mount Prospect's median family income of $79,733 as of July 1, 2019 (per the census.gov data) was 19% higher than the median for Cook County ($64,660) and 17% higher than the median for the State of Illinois ($65,886). 6 16 The Village is strategically located in the middle of a thriving economic activity center for the Midwest region of our country. It is close to major interstate highways including 90 and 294, while its proximity to O'Hare International Airport makes the Village's location a prime spot. The Village's commercial and industrial real estate has a very low vacancy rate and, in spite of the pandemic, the Village revenues have performed consistently due to a strong and diversified tax base. The Village is connected to the "Golden Corridor," which extends Interstate 90 from O'Hare to Elgin, which makes the Village a desirable location for commercial, industrial ventures as well as for corporate headquarters for Fortune 500 companies. 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 2020. During the 2020 workshop, financial status reports were provided for end -of -year results for 2019, updated projections for 2020 and a revised forecast for 2021. 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 (2021-2025), the Village has identified $139.6 million in water and sewer, flood control, street, public building, equipment and other miscellaneous capital projects. The second is the Village Strategic Plan for 2021 completed in early 2020. 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 May 2020 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, 2019. 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 whose contents conform to program standards. Such reports 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. It is believed that the current report continues to conform to the Certificate of Achievement program requirements, and will be submitted 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, 2020 and ending December 31, 2020. 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 2021 Budget document. 7 17 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 Jennifer Fitzgerald, Assistant to the Finance Director, Accountants Nancy Warnock, Rumiana Nihtianova and Terri Atienza, and our AP and Risk Coordinator Mike Grochocki, who contributed greatly to its preparation. Additionally, I would like to acknowledge the Mayor, the Board of Trustees, the Finance Commission, the Audit Committee 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, 1 6nes iP Z� �z. Amit R. Thakkar Finance Director 18 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Mount Prospect Illinois For its Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 Executive Director/CEO 9 19 FINANCIAL SECTION This section includes: Independent Auditors' Report Management's Discussion and Analysis Basic Financial Statements Required Supplementary Information Other Supplementary Information Supplemental Schedules 10 20 INDEPENDENT AUDITORS' REPORT This section includes the opinion of the Village's' independent auditing firm. 11 21 668 N. RIVER ROAD • NAPERVILLE, ILLINOIS IINOIS 60563 PHONE: 630.393 1483 • FAX 630.393 251 5 www.laxiteirba-a(,,~txi ieii.r,oin7 CERTIFIED PUBI.AC; ACCOUNTANTS INDEPENDENT AUDITORS' REPORT June 23, 2021 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, as of and for the year ended December 31, 2020, 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 of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 12 22 Village of Mount Prospect, Illinois June 23, 2021 Page 2 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, 2020, 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 as listed in the table of contents and budgetary information reported in the required supplementary information as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Mount Prospect, Illinois' basic financial statements. The introductory section, other supplementary information, supplemental schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information and supplemental 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 other supplementary information and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 13 23 Village of Mount Prospect, Illinois June 23, 2021 Page 3 Other Matters - Continued Other Information - Continued The introductory and statistical sections 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 23, 2021, 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 the effectiveness of the Village's 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. LAUTERBACH & AMEN, LLP 14 24 MANAGEMENT'S DISCUSSION AND ANALYSIS 15 25 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For the Fiscal Year Ended December 31, 2020 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, and the Village's financial statements. 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 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") 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 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 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) 16 26 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). 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 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. The flow of current financial resources will reflect bond proceeds and interfund transfers as other financial sources or uses, 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 increased from a negative $26.6 million, as restated, to a negative $20.4 million. The net increase of $6.2 million is mainly attributable to intergovernmental revenues including income tax, use tax, ambulance billing fees and government grants, as well as reduced operating expenditures due to the COVID-19 contingency planning implementation. The net position for governmental activities is negative $58.3 million, while the net position for the business -type activities is $37.9 million. Table 1 reflects the condensed Statement of Net Position. For more detailed information see the Statement of Net Position in the basic financial statements. (This space is intentionally left blank.) (See independent auditor's report) 17 27 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 1 Statement of Net Position As of December 31, 2020 (in millions) Current and Other Assets Capital Assets Total Assets Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources Current Liabilities Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources Net Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) Total Net Position Governmental Activities Business -Type Activities Totals 2020 2019 2020 2019 2020 2019 S 86.8 111.0 114.1 88.1 20.8 39.8 23.3 38.4 107.6 150.8 137.4 126.5 197.8 10.5 202.2 13.1 60.6 1.8 61.7 2.6 258.4 12.3 263.9 15.7 208.3 215.3 62.4 64.3 270.7 279.6 12.8 207.7 17.9 229.4 1.9 21.7 2.2 22.7 14.7 229.4 20.1 252.1 220.5 46.1 247.3 35.4 23.6 0.9 24.9 0.3 244.1 47.0 272.2 35.7 266.6 282.7 24.5 25.2 291.1 307.9 26.4 31.6 20.6 33.2 47.0 64.8 6.2 8.7 6.2 8.7 (909) (107.7) 17.3 59 (73.6) (101.8) (58.3) (67.4) 37.9 39.1 (20.4) (28.3) Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net results of activities - which will impact (increase/decrease) current assets and unrestricted net position. Borrowingfor or capital - which will increase current assets and long-term debt. Spending borrowed proceeds on new capital - which will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the invested in capital assets, net of debt. Spending of non -borrowed current assets on new capital - which will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase invested in capital assets, net of debt. Principal payment on debt - which will (a) reduce current assets and reduce long-term debt and (b) reduce unrestricted net position and increase invested in capital assets, net of debt. Reduction of capital assets through depreciation - which will reduce capital assets and invested in capital assets, net of debt. (See independent auditor's report) 18 28 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Current Year Impacts Governmental activities net position increased by $9.1 million while the business -type activities net position decreased by $1.2 million. The net position was also restated to correct an error in governmental activities Business District Limited Tax Note Payable by $1.7 million. The governmental activities total assets/deferred outflows decreased by $7 million and the governmental activities total liabilities/deferred inflows decreased by $16.1 million, of which $21.7 million of decreases are attributable to the decreases in the noncurrent liabilities. The reduction in the net pension liability is the main reason for reduction in the noncurrent liability. The total assets decreased by $7 million in governmental activities. The current assets for the previous year included unspent bond proceeds, which were used in 2020 for the appropriate projects. The decrease in deferred outflows of $2.6 million for the governmental activities was due to a decrease in pension -related items for IMRF, Police and Fire. The net position of the business -type activities decreased by $1.2 million. The decrease in total net position is mainly attributable to the current deficit of revenues over expenditures. The business -type activities total assets/ deferred outflows decreased by $1.9 million and the business -type activities total liabilities/deferred inflows decreased by $0.7 million. The current assets decreased by $2.5 million, mainly attributable to the use of unspent bond proceeds in 2020 for the appropriate projects. The business -type capital assets increased by $1.4 million. During the fiscal year 2019, the Village has implemented GASB 83 — Certain Asset Retirement Obligations. The implementation resulted in a recognition of deferred outflow of resources of $0.8 million, as well as an increase in the non-current liabilities by the same amount. The liabilities for business -type activities decreased from $24.9 million to $23.6 million. The non-current liabilities decreased by $1.0 million, mainly due to repayment of certain long-term debt obligations per the established debt service schedules. Changes in Net Position The Village's combined change in net position (including restatement of beginning net position) for the primary government in 2020 was an increase of $6.4 million versus an increase of $1.3 million in 2019. Activities for the governmental activities saw an increase in net position of $7.4 million from 2019, while activities for the business -type funds saw a decrease in net position of $1.2 million from 2019. The following chart lists the revenues and expenses for the current and prior fiscal years. Table 2 focuses on the changes in net position of the governmental and business -type activities. (This space in intentionally left blank.) (See independent auditor's report) 19 29 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 2 Change in Net Position For the Year Ended on December 31, 2020 (in millions) Expenses General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Interest on Long -Term Debt Water and Sewer Parking 7.8 11.6 40.5 38.8 12.8 15.6 4.8 4.9 1.9 1.5 0.2 0.4 4.2 4.5 18.0 16.9 0.2 1.9 7.8 11.6 40.5 38.8 12.8 15.6 4.8 4.9 1.9 1.5 0.2 0.4 4.2 4.5 18.0 16.9 0.2 1.9 72.2 77.3 18.2 18.8 90.4 96.1 Change in Net Position 7.4 3.8 (1.2) (1.8) 6.2 2.0 Net Position - Beginning as Restated (65.7) (70.5) 39.1 40.9 (26.6) (29.6) Net Position - Ending (58.3) (66.7) 37.9 39.1 (20.4) (27.6) (Note: There may be some slight differences in totals due to rounding.) (See independent auditor's report) 20 30 Governmental Business -Type Activities Activities Totals 2020 2019 2020 2019 2020 2019 Revenues Program Revenues Charges for Services S 10.8 11.4 16.8 15.3 27.6 26.7 Operating Grants/Contributions 3.0 2.1 3.0 2.1 Capital Grants/Contributions 1.3 0.1 1.3 0.1 General Revenues Property Taxes 20.0 19.1 20.0 19.1 Utility Taxes 3.0 3.3 3.0 3.3 Business District Taxes 0.3 0.3 0.3 0.3 Sales/Use Taxes 29.5 30.6 29.5 30.6 Income Taxes 5.9 5.8 5.9 5.8 Other Taxes 3.4 4.5 3.4 4.5 Interest 0.3 1.4 0.2 0.3 0.5 1.7 Other 2.1 2.5 - 1.4 2.1 3.9 79.6 81.1 17.0 17.0 96.6 98.1 Expenses General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Interest on Long -Term Debt Water and Sewer Parking 7.8 11.6 40.5 38.8 12.8 15.6 4.8 4.9 1.9 1.5 0.2 0.4 4.2 4.5 18.0 16.9 0.2 1.9 7.8 11.6 40.5 38.8 12.8 15.6 4.8 4.9 1.9 1.5 0.2 0.4 4.2 4.5 18.0 16.9 0.2 1.9 72.2 77.3 18.2 18.8 90.4 96.1 Change in Net Position 7.4 3.8 (1.2) (1.8) 6.2 2.0 Net Position - Beginning as Restated (65.7) (70.5) 39.1 40.9 (26.6) (29.6) Net Position - Ending (58.3) (66.7) 37.9 39.1 (20.4) (27.6) (Note: There may be some slight differences in totals due to rounding.) (See independent auditor's report) 20 30 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, Highways and Streets, 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 73% 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 four 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 2020 were $79.6 million. The year 2020 was a challenging year due to the pandemic, but the Village revenues, especially intergovernmental revenues were stronger than usual. The Village's sales tax and other locally collected taxes were impacted, but all the shortfalls from the state sales tax, home -rule sales tax, and other locally collected taxes were offset by outperforming revenues including, income tax, use tax, ambulance billing fees, and government grants. The Village's General Fund collected $58.7 million in total revenues, as budgeted. The increased online sales activities has allowed the State of Illinois to collect additional use tax. The use tax revenue for the Village shows an out performance of $0.8 million or 50% over the budgeted amount. Ambulance billing fees collection were $1.9 million, an increase of $0.7 million or 52% higher than the budgeted amount. (See independent auditor's report) 21 31 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Governmental Activities (cont.) Expenses: Total expenses for the Village's Governmental Activities for 2020 were $72.2 million. Public Safety, which includes Police and Fire, accounts for the largest portion of governmental expenses. Total Public Safety expenses in 2020 were $40.5 million, an increase of $1.7 million from 2019. The increase in the expenditures are mainly attributable to pension related adjustments. 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 $12.8 million. The General Government expenditures totaled $7.8 million, a decrease of $3.8 million from the prior year. This decrease of $3.8 million is mainly attributable to the decreased operating expenditures due to the cancellation of various Village Sponsored events due to COVID-19, and the absence of statutory payments to Elk Grove Rural Fire Protection District in 2020 as the expenses were incurred from 2017 to 2019. Business -Type Activities Revenues: Total revenues for the Village's Business -Type Activities for 2020 were $17.0 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 $17.0 million generated in 2020, $16.7 million is from water sales and sewer fees and charges, $0.1 million is from parking operations and $0.2 million is from investment income. Expenses: Total expenses for the Village's Business -Type Activities for 2020 were $18.2 million. Of the total expenses for business -type activities, $18.0 million is attributable to Water and Sewer while $0.2 million is attributable to parking operations. $7.5 million in Water and Sewer Fund expenses were for the acquisition of water through the Northwest Suburban Municipal Joint Action Water Agency (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 a decrease of $0.5 million in 2020 from $26.7 million to $26.2 million. In 2020, in spite of COVID-19, the General Fund revenues came in line with the approved 2020 budget. The Village earned $58,740,916 in General Fund revenues against the approved budget of $58,662,926. The final Village budget had anticipated a decrease in the General Fund's fund balance of $3.5 million; however, due to reduced operating expenditures and outperforming revenues, the decrease in the fund balance was limited to $0.5 million. Out of the total fund balance of $26.2 million, $2.3 million is considered committed fund balance for the Levee 37 Flood Control Construction Project. During the year 2020, the income tax revenue outperformed by $0.6 million, while the use tax outperformed by $0.8 million. The sales tax underperformed by $1.5 million compared to the original budget. The revised budget was adjusted to reflect the outperforming revenues. The largest revenue source for the General Fund for the fiscal year 2020 was the Intergovernmental revenues totaling $30.7 million, while the property taxes totaled $16.4 million. The other locally collected taxes were recognized at $6.2 million. Due to the pandemic, the revenues from other taxes struggled. The Village recognized revenues totaling $6.2 million against the budget of $7.0 million. The licenses and permit fees outperformed by $0.1 million and totaled $2.4 million. Charges for services also outperformed by $0.6 million, due to an increase of ambulance fees at the newly established rates. (See independent auditor's report) 22 32 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) General Fund Budgeting Highlights During 2020, the Village amended the general fund budget three times. Table 3 below reflects the original and revised budget and the actual revenues and expenditures for the General Fund. Table 3 General Fund Budgetary Changes For the Fiscal Year Ended December 31, 2020 (in millions) Change in Fund Balance Other Major Funds (3.4) (3.5) (0.5) There are three (3) other Major Funds for Fiscal Year ended December 31, 2020. These three Funds are 1) Prospect and Main TIF Fund, 2) Debt Service Fund, 3) Police and Fire Building Construction. Prospect and Main TIF - This special revenue type TIF Fund is used to account for the resources to acquire property and construct certain improvements in the Prospect/Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. Total revenues for 2020 were $1.0 million, while the total revenues for 2019 were $0.5 million. The total expenses for 2020 were $10.1 million, of which $9.3 million was used for capital outlay items. The Prospect and Main TIF also received $0.6 million in interfund transfers from the Police and Fire Building Construction Fund. Debt Service Fund - This Fund is used to accumulate monies for the payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2020 were $5.1 million, a decrease of $0.1 million from the prior year. Of this total revenue amount, $2.5 million was from property taxes, $1.6 million was from an intergovernmental transfer from the Mount Prospect Public Library to pay for library related debt, and $1.0 million was from other taxes. Total expenditures for 2020 were $6.6 million, a decrease of $0.1 from the prior year. There was also an interfund transfer of $1.1 million received from the General Fund. Ending fund balance decreased by $0.3 million to $3.1 million. (See independent auditor's report) 23 33 Original Final Budget Budget Actual Revenues and Other Financing Sources Taxes $ 23.5 23.5 22.5 Intergovernmental 30.2 30.2 30.8 Other 5.0 5.0 5.4 Total Revenues and Other Financing Sources 58.7 58.7 58.7 Expenditures and Other Financing Uses Expenditures 57.3 57.6 54.6 Transfers Out 4.8 4.6 4.6 Total Expenditures and Other Financing Uses 62.1 62.2 59.2 Change in Fund Balance Other Major Funds (3.4) (3.5) (0.5) There are three (3) other Major Funds for Fiscal Year ended December 31, 2020. These three Funds are 1) Prospect and Main TIF Fund, 2) Debt Service Fund, 3) Police and Fire Building Construction. Prospect and Main TIF - This special revenue type TIF Fund is used to account for the resources to acquire property and construct certain improvements in the Prospect/Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. Total revenues for 2020 were $1.0 million, while the total revenues for 2019 were $0.5 million. The total expenses for 2020 were $10.1 million, of which $9.3 million was used for capital outlay items. The Prospect and Main TIF also received $0.6 million in interfund transfers from the Police and Fire Building Construction Fund. Debt Service Fund - This Fund is used to accumulate monies for the payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2020 were $5.1 million, a decrease of $0.1 million from the prior year. Of this total revenue amount, $2.5 million was from property taxes, $1.6 million was from an intergovernmental transfer from the Mount Prospect Public Library to pay for library related debt, and $1.0 million was from other taxes. Total expenditures for 2020 were $6.6 million, a decrease of $0.1 from the prior year. There was also an interfund transfer of $1.1 million received from the General Fund. Ending fund balance decreased by $0.3 million to $3.1 million. (See independent auditor's report) 23 33 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Other Major Funds - Continued Police and Fire Building Construction - This capital project type fund is used to account for the resources to construct the police and fire headquarters. Financing was provided primarily by general obligation bond proceeds. Total revenues for the year 2020 are $0.1 million. The total construction expenses for 2020 is $13.6 million. The ending fund balance is $44,134; it will be transferred to the General Fund in 2021, and the fund will be closed out. Capital Assets At the end of 2020, the Village had a combined total of $150.8 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). Table 4 Capital Assets at Year End Net of Depreciation (in millions) This amount represents a net increase (including additions and deletions) of $24.3 million from 2019. The following reconciliation in Table 5 summarizes the changes in Capital Assets. (This space in intentionally left blank.) (See independent auditor's report) 24 34 Governmental Business -Type Activities Activities Totals 2020 2019 2020 2019 2020 2019 Land $ 15.6 14.3 17.3 17.3 32.9 31.6 Construction in Progress 24.9 23.9 2.5 2.2 27.4 26.1 Buildings 42.3 26.4 1.4 1.4 43.7 27.8 Improvements Other than Buildings 1.1 0.5 1.1 0.5 Vehicles 5.2 5.3 5.2 5.3 Machinery and Equipment 3.7 2.4 1.3 1.4 5.0 3.8 Infrastructure 18.2 15.3 17.3 16.1 35.5 31.4 111.0 88.1 39.8 38.4 150.8 126.5 This amount represents a net increase (including additions and deletions) of $24.3 million from 2019. The following reconciliation in Table 5 summarizes the changes in Capital Assets. (This space in intentionally left blank.) (See independent auditor's report) 24 34 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 5 Change in Capital Assets (in millions) Governmental Business -Type Activities Activities Totals Beginning Balance $ 88.1 38.4 126.5 Additions Depreciable 15.3 0.4 15.7 Nondepreciable 12.0 1.6 13.6 Retirements Depreciable (0.9) - (0.9) Nondepreciable Depreciation (4.3) (0.6) (4.9) Retirement 0.8 - 0.8 Ending Balance 111.0 39.8 150.8 Table 5 above shows the change in capital assets during 2020. This year's major additions to the capital assets include the following (in millions): Governmental Activities Land acquisitions - $1.3 Buildings - $16.8 Improvements other than buildings - $0.6 Vehicles for Public Safety, Public Works and Village Fleet - $1.0 Various construction projects in -progress - $10.7 Purchases of various machinery & equipment - $1.6 Infrastructure Improvements - $5.0 Business -Type Activities Various construction projects in -progress - $1.6 Infrastructure Improvements - $1.7 More detailed information on capital asset activity can be found in Note 3 of the notes to the financial statements. Debt Outstanding The Village of Mount Prospect had total long-term debt and loans payable of $237.1 million as of December 31, 2020. Long-term debt is comprised of general obligation debt, compensated absences to employees, other post - employment benefits (OPEB), loans payable, claims and judgements, and pension liability for IMRF, Police and Fire. Pension liability for police and fire decreased by $13.4 million. The net pension liability of IMRF decreased by $6.8 million. The compensated absences had a net increase of $0.5 million, while the total OPEB (Other Post Employment Benefit) liability increased by $2.7 million. Decreases in long term debt include the retirement of $4.3 million in general obligation debt. (See independent auditor's report) 25 35 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 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 3 of the notes to the financial statements. Economic Factors and Next Year's Budget The General Fund, the Village's main operating fund, holds a strong cash and fund balance position as of December 31, 2020. The Village has pledged $2.3 million from the unassigned fund balance for a Levee 37 Flood Control Construction Project. To reflect the pledged fund balance for the project, $2.3 million is classified as a committed fund balance. The unassigned fund balance as of December 31, 2020 is $23.5 million. The amount of fund balance as of December 31, 2020 represents 37.2 percent of the 2021 General Fund Budget. In spite of COVID-19, the Village did not experience a shortfall in the total General Fund revenues. The Village Board has set as its benchmark a level of reserves equal to 25% of subsequent year expenditures. The Village has recovered gracefully from the pandemic and a return to normalcy is expected in 2021. Total Village revenues for 2021 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 2021 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 73% of the operating budget is made up of these personnel and related costs. The Village's average unemployment for 2020 was 6.6 percent. This is below the state and national unemployment rates of 9.5 percent and 8.1 percent, respectively. All the unemployment rates are significantly impacted by the COVID-19 pandemic. The Village is mainly divided between Elk Grove Township and Wheeling Township, and a small portion of the Village is within Maine Township. The year 2019 was a year of the triennial assessment. The Elk Grove Township increased the assessed value of all the properties on an average by 53 percent, while the Wheeling Township increased the average assessed value by 31.0 percent. After the triennial assessment, the total equalized assessed value for the Village is $1.97 billion, an 18.0 percent increase from the prior year. The 2021 (amended) Budget represents an 8.7 percent decrease from the amended 2020 Budget and totals $137.5 million. The decrease in the budget is attributable to significant completion of the major capital projects in 2020 and the Village reverting back to a more normal capital improvement plan. The General Fund decreased $0.4 million, or 0.7% from the prior year. Of the total budget of $137.5 million, the operating budget totals $77.3 million and Community Investment Program (capital improvement plan) totals $32.7 million. During May 2021, the Village received $3.5 million as the first installment of the American Rescue Plan. The Village will be receiving the second and final installment in May 2022 for an equal amount. The American Rescue Plan provides financial support to the local government in responding to the COVID-19 pandemic and allows spending on certain qualified items as defined by the U.S. Treasury in the interim final rule. The Village's financial health and cash position is strong. The Village does not anticipate any short-term concerns and Village Administration is vigilant and committed to maintaining the long-term fiscal health of the Village. Request for Information This financial report is designed to provide a general overview of the Village of Mount Prospect's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Amit Thakkar, Director of Finance/ Treasurer, Village of Mount Prospect, 50 South Emerson, Mount Prospect, Illinois 60056. (See independent auditor's report) 26 36 BASIC FINANCIAL STATEMENTS The basic financial Statements include integrated sets of financial statements as required by the GASB. The sets of statements include: • Government -Wide Financial Statements • Fund Financial Statements Governmental Funds Proprietary Funds Fiduciary Funds In addition, the notes to the financial statements are included to provide information that is essential to a user's understanding of the basic financial statements. 27 37 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position December 31, 2020 See Following Page 28 38 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position December 31, 2020 ASSETS Current Assets Cash and Cash Equivalents Receivables - Net of Allowances Due from Other Governments Deposits - Insurance Prepaids/Inventories Total Current Assets Noncurrent Assets Capital Assets Nondepreciable Depreciable Accumulated Depreciation Total Capital Assets Other Assets Deposits - Insurance Equity Interest in Joint Venture Total Other Assets Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF Deferred Items - Police Pension Deferred Items - Firefighters' Pension Deferred Items - RBP Unamortized Asset Retirement Obligation Loss on Refunding Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources Primary Government Governmental Business -Type Activities Activities Totals $ 48,866,812 18,077,815 66,944,627 28,654,177 1,970,194 30,624,371 4,444,826 347 4,445,173 2,812,678 — 2,812,678 918,619 266,930 1,185,549 85,697,112 20,315,286 106,012,398 40,537,122 19,775,338 60,312,460 170,257,612 42,824,240 213,081,852 (99,801,560) (22,845,148) (122,646,708) 110,993,174 39,754,430 150,747,604 1,116,941 — 1,116,941 — 499,401 499,401 1,116,941 499,401 1,616,342 112,110,115 40,253,831 152,363,946 197,807,227 60,569,117 258,376,344 3,773,397 728,391 4,501,788 793,862 — 793,862 2,057,971 — 2,057,971 3,564,477 326,997 3,891,474 — 735,000 735,000 306,113 — 306,113 10,495,820 1,790,388 12,286,208 208,303,047 62,359,505 270,662,552 The notes to the financial statements are an integral part of this statement. 39 29 LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Retainage Payable Due to Other Governments Accrued Interest Payable Other Payables Current Portion of Long -Term Liabilities Compensated Absences Payable Claims Payable General Obligation Bonds Payable - Net Business District Limited Tax Note Payable Total Current Liabilities Noncurrent Liabilities Compensated Absences Payable Claims Payable Net Pension Liability - IMRF Net Pension Liability - Police Pension Net Pension Liability - Firefighters' Pension Total OPEB Liability - RBP Asset Retirement Obligation General Obligation Bonds Payable - Net Business District Limited Tax Note Payable Total Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Property Taxes Deferred Items - TMRF Deferred Items - Police Pension Deferred Items - Firefighters' Pension Deferred Items - RBP Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Restricted Public Safety - Police Public Safety - Fire Highways and Streets Debt Service Unrestricted (Deficit) Total Net Position Primary Government Governmental Activities Business -Type Activities Totals $ 1,386,508 1,099,384 2,485,892 1,372,799 105,265 1,478,064 125,648 — 125,648 275,584 642 276,226 260,000 55,257 315,257 2,348,161 14,537 2,362,698 966,237 59,557 1,025,794 476,885 — 476,885 4,590,000 525,000 5,115,000 1,051,254 — 1,051,254 12,853,076 1,859,642 14,712,718 3,258,876 238,232 3,497,108 222,313 — 222,313 4,140,549 799,264 4,939,813 37,487,635 — 37,487,635 32,549,685 — 32,549,685 13,608,837 1,248,443 14,857,280 — 750,000 750,000 81,556,970 18,681,498 100,238,468 34,853,922 — 34,853,922 207,678,787 21,717,437 229,396,224 220,531,863 23,577,079 244,108,942 19,044,943 — 19,044,943 3,181,456 614,127 3,795,583 10,824,633 — 10,824,633 10,079,261 — 10,079,261 2,981,062 273,476 3,254,538 46,111,355 887,603 46,998,958 266,643,218 24,464,682 291,107,900 26,448,689 20,547,932 46,996,621 322,594 — 322,594 413,742 — 413,742 3,814,051 — 3,814,051 1,261,124 — 1,261,124 (90,600,371) 17,346,891 (73,253,480) (58,340,171) 37,894,823 (20,445,348) The notes to the financial statements are an integral part of this statement. 40 30 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2020 Program Revenues Charges Operating Capital for Grants/ Grants/ Expenses Services Contributions Contributions Governmental Activities General Government $ 7,778,670 7,052,725 Public Safety 40,594,163 2,322,390 694,449 — Highways and Streets 11769,508 1,468,859 1,971,208 1,348,000 Health 4,785,802 Welfare 1,884,331 — 191,878 — Culture and Recreation 181,061 Interest on Long -Term Debt 4,271,762 — 105,400 — Total Governmental Activities 72,265,297 10,843,974 2,962,935 1,348,000 Business -Type Activities Water and Sewer 18,033,170 16,732,889 Parking 225,412 104,016 Total Business -Type Activities 18,258,582 16,836,905 Total Primary Government 90,523,879 27,680,879 2,962,935 1,348,000 General Revenues Taxes Property Utility Business District Home Rule Sales Food and Beverage Real Estate Transfer Municipal Motor Fuel Hotel/Motel Other Taxes Intergovernmental - Unrestricted Income Taxes State Sales and Local Use Tax Replacement Taxes Charitable Games Tax Interest Miscellaneous Total General Revenues Change in Net Position Net Position - Beginning as Restated Net Position - Ending The notes to the financial statements are an integral part of this statement. 41 31 Net (Expenses)/Revenues Governmental Business -Type Activities Activities Totals (725,945) — (725,945) (37,577,324) — (37,577,324) (7,981,441) — (7,981,441) (4,785,802) — (4,785,802) (1,692,453) — (1,692,453) (181,061) — (181,061) (4,166,362) — (4,166,362) (57,110,388) — (57,110,388) (1,300,281) (1,300,281) (121,396) (121,396) (1,421,677) (1,421,677) (57,110,388) (1,421,677) (58,532,065) 19,994,090 — 19,994,090 3,025,210 — 3,025,210 250,056 — 250,056 5,334,399 — 5,334,399 1,115,824 — 1,115,824 962,687 — 962,687 584,989 — 584,989 134,353 — 134,353 199,337 — 199,337 5,886,270 — 5,886,270 24,214,948 — 24,214,948 411,866 — 411,866 3,340 — 3,340 286,627 160,643 447,270 2,089,687 34,208 2,123,895 64,493,683 194,851 64,688,534 7,383,295 (1,226,826) 6,156,469 (65,723,466) 39,121,649 (26,601, 817) (58340,171) 37,894,823 (20,445,348) The notes to the financial statements are an integral part of this statement. 42 32 VILLAGE OF MOUNT PROSPECT, ILLINOIS Balance Sheet - Governmental Funds December 31, 2020 ASSETS Cash and Investments Receivables - Net of Allowances Property Taxes Other Taxes Other Accounts Due from Other Governments Due from Other Funds Inventories Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Retainage Payable Accrued Interest Payable Due to Other Governments Due to Other Funds Other Payables Total Liabilities DEFERRED INFLOWS OF RESOURCES Property Taxes Unavailable Revenues Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances General $ 20,649,384 16,397,406 7,968,423 305,811 48,244 525,000 752 381,150 46.276.170 606,869 1,317,754 267,551 17,213 1,537,640 3,747,027 16,354,772 16,354,772 20,101,799 381,902 2,300,000 23,492,469 26,174,371 46,276,170 The notes to the financial statements are an integral part of this statement. 43 33 Prospect Police and Fire and Main Debt Building TIF District Service Construction Nonmajor Totals 10,018 3,119,837 153,863 11,150,518 35,083,620 18,210 2,690,171 - - 19,105,787 1,234 663,257 8,632,914 607,058 912,869 - 310 310 - 3,070,678 - 1,317,236 4,436,158 525,000 23,492,469 752 1,500 1,350 - 105,645 489,645 29,728 8,882,036 155,097 13,844,024 69,187,055 3,737 - 186 466,192 1,076,984 13,287 1,331,041 110,777 14,871 125,648 3,541 271,092 525,000 542,213 1,753,147 3,290,787 3,737 - 110,963 2,776,038 6,637,765 2,690,171 - - 19,044,943 3,065,000 - - 3,065,000 - 5,755,171 - - 22,109,943 3,737 5,755,171 110,963 2,776,038 28,747,708 1,500 1,350 - 105,645 490,397 24,491 1,521,124 - 4,525,896 6,071,511 934,034 3,234,034 - 1,604,391 44,134 5,502,411 7,150,936 - 23,492,469 25,991 3,126, 865 44,134 11,067,986 40,439,347 29,728 8,882,036 155,097 13,844,024 69,187,055 The notes to the financial statements are an integral part of this statement. 44 34 VILLAGE OF MOUNT PROSPECT, ILLINOIS Reconciliation of the Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities December 31, 2020 Total Governmental Fund Balances $ 40,439,347 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 funds. 110,993,174 (Less: Internal Service Capital Assets) (7,237,473) Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF 591,941 Deferred Items - Police Pension (10,030,771) Deferred Items - Firefighters' Pension (8,021,290) Deferred Items - RBP 560,155 Certain revenues that are deferred in the governmental funds are recognized as revenue in the governmental activities 3,065,000 Internal Service Funds are used by the Village to charge the costs of vehicle and equipment management and employee compensated absences to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Position. 23,618,874 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated Absences Payable (4,120,193) Net Pension Liability - IMRF (4,140,549) Net Pension Liability - Police Pension (37,487,635) Net Pension Liability - Firefighters' Pension (32,549,685) Total OPEB Liability - RBP (13,066,287) General Obligation Bonds Payable - Net (86,146,970) Unamortized Loss on Refunding 306,113 Business District Limited Tax Note Payable (35,905,176) Plus: Amounts Recorded in the Governmental Funds Balance Sheet 1,051,254 Accrued Interest Payable (260,000) Net Position of Governmental Activities (58,340,171) The notes to the financial statements are an integral part of this statement. 45 35 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2020 See Following Page 36 46 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2020 Revenues Taxes Intergovernmental Licenses and Permits Charges for Services Fines and Forfietures Interest Miscellaneous Total Revenues Expenditures Current General Government Public Safety Highways and Streets Helath Welfare Culture and Recreation Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Disposal of Capital Assets Transfers In Transfers Out Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending The notes to the financial statements are an integral part of this statement. 37 General $ 22,560,551 30,799,463 2,402,150 2,320,837 242,004 99,326 316,585 58,740,916 6,897,411 37,297,450 8,705,967 132,833 1,446,675 166,740 54,647,076 4,093,840 383 (4,598,000) (4,597,617) (503,777) 26,678,148 26,174,3 71 47 Prospect Police and Fire and Main Debt Building TIF District Service Construction Nonmajor Totals 944,024 3,544,461 — 4,551,909 31,600,945 — 1,575,400 — 3,922,496 36,297,359 10,576,961 1,414,357 3,816,507 — 377,614 4,464,626 6,785,463 166,740 9,267,760 — 242,004 20,108 11,582 62,564 41,203 234,783 21,700 — 34,121 1,717,281 2,089,687 985,832 5,131,443 96,685 16,111,872 81,066,748 110,714 1,036,290 8,044,415 149,264 137,530 37,584,244 1,870,994 10,576,961 4,660,338 4,793,171 377,614 1,824,289 166,740 9,267,760 — 13,455,257 10,516,557 33,239,574 — 4,015,000 — — 4,015,000 703,411 2,549,937 3,253,348 10,081,885 6,564,937 13,604,521 18,599,323 103,497,742 (9,096,053) (1,433,494) (13,507,836) (2,487,451) (22,430,994) 383 590,000 1,105,000 — 3,493,000 5,188,000 — — (590,000) — (5,188,000) 590,000 1,105,000 (590,000) 3,493,000 383 (8,506,053) (328,494) (14,097,836) 1,005,549 (22,430,611) 8,532,044 3,455,359 14,141,970 10,062,437 62,869,958 25,991 3,126,865 44,134 11,067,986 40,439,347 The notes to the financial statements are an integral part of this statement. 48 38 VILLAGE OF MOUNT PROSPECT, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities - Governmental Activities For the Fiscal Year Ended December 31, 2020 Net Change in Fund Balances - Total Governmental Funds $ (22,430,611) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital Outlays 26,643,409 Depreciation Expense (3,246,898) Disposals - Cost (7,823) Disposals - Accumulated Depreciation 7,823 Changes in certain revenues recognized as revenue only in the governmental activities. (1,470,000) The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF (5,969,142) Change in Deferred Items - Police Pension (4,498,677) Change in Deferred Items - Firefighters' Pension (4,890,054) Change in Deferred Items - RBP 2,003,770 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal on long-term debt consumes the current financial resources of the governmental funds. Change in Compensated Absences Payable (461,537) Change in Net Pension Liability - IMRF 5,363,549 Change in Net Pension Liability - Police Pension 7,502,503 Change in Net Pension Liability - Firefighters' Pension 5,910,403 Change in Total OPEB Liability - RBP (1,462,091) Retirement of Debt 4,015,000 Amortization of Bond Premium 314,605 Amortization of Loss of Refunding (94,576) Accreted Interest on Business District Limited Tax Note Payable (1,249,665) Change in Accrued Interest Payable 11,222 Internal service funds are used by the Village to charge the costs of vehicle and equipment management and employee compensated absences to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 1,392,085 Changes in Net Position of Governmental Activities 7,383,295 The notes to the financial statements are an integral part of this statement. 49 39 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2020 See Following Page 40 50 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2020 ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Accounts - Billed Accounts - Unbilled Accrued Interest Other Due from Other Governments Deposits - Insurance Inventories Prepaids Total Current Assets Noncurrent Assets Capital Assets Nondepreciable Depreciable Accumulated Depreciation Total Capital Assets Other Assets Deposits - Insurance Equity Interest in Joint Venture Total Other Assets Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF Deferred Items - RBP Unamortized Asset Retirement Obligation Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service $ 17,631,177 446,638 18,077,815 13,783,192 789,851 - 789,851 - 1,034,004 - 1,034,004 - 54,156 - 54,156 40 92,183 - 92,183 2,257 347 - 347 8,668 2,812,678 189,785 - 189,785 340,573 77,128 17 77,145 87,649 19,868,631 446,655 20,315,286 17,035,057 19,775,338 - 19,775,338 398,531 42,459,440 364,800 42,824,240 15,601,126 (22,480,348) (364,800) (22,845,148) (8,762,184) 39,754,430 - 39,754,430 7,237,473 728,391 - 728,391 - 1,116,941 499,401 - 499,401 - 499,401 - 499,401 1,116,941 40,253,831 - 40,253,831 8,354,414 60,122,462 446,655 60,569,117 25,389,471 728,391 - 728,391 - 326,997 - 326,997 142,107 735,000 - 735,000 - 1,790,388 - 1,790,388 142,107 61,912,850 446,655 62,359,505 25,531,578 The notes to the financial statements are an integral part of this statement. 51 41 Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service LIABILITIES Compensated Absences Payable Current Liabilities 4,835 238,232 83,936 Claims Payable Accounts Payable $ 1,092,235 7,149 1,099,384 292,311 Accrued Payroll 103,671 1,594 105,265 41,758 Due to Other Governments - 642 642 4,492 Claims Payable - 18,681,498 - Total Noncurrent Liabilities 476,885 Accrued Interest Payable 55,257 - 55,257 - Other Payables 14,147 390 14,537 108,628 Compensated Absences Payable 58,349 1,208 59,557 20,984 General Obligation Bonds Payable 525,000 - 525,000 - Total Current Liabilities 1,848,659 10,983 1,859,642 945,058 Noncurrent Liabilities Compensated Absences Payable 233,397 4,835 238,232 83,936 Claims Payable 222,313 Net Pension Liability - IMRF 799,264 - 799,264 - Total OPEB Liability - RBP 1,248,443 - 1,248,443 542,550 Asset Retirement Obligation 750,000 - 750,000 - General Obligation Bonds Payable 18,681,498 - 18,681,498 - Total Noncurrent Liabilities 21,712,602 4,835 21,717,437 848,799 Total Liabilities 23,561,261 15,818 23,577,079 1,793,857 DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF 614,127 - 614,127 - Deferred Items - RBP 273,476 - 273,476 118,847 Total Deferred Inflows of Resources 887,603 - 887,603 118,847 Total Liabilities and Deferred Inflows of Resources 24,448,864 15,818 24,464,682 1,912,704 NET POSITION Net Investment in Capital Assets 20,547,932 - 20,547,932 7,237,473 Unrestricted 16,916,054 430,837 17,346,891 16,381,401 Total Net Position 37,463,986 430,837 37,894,823 23,618,874 The notes to the financial statements are an integral part of this statement. 52 42 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds For the Fiscal Year Ended December 31, 2020 Operating Revenues Charges for Services Contributions Miscellaneous Total Operating Revenues Operating Expenses Administration Insurance and Claims Depreciation and Amortization Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Disposal of Capital Assets Interest Income Other Income Property Taxes Interest Expense Change in Net Position Net Position - Beginning Net Position - Ending Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service $ 16,732,889 104,016 16,836,905 12,141,880 1,747,350 589,639 16,732,889 104,016 16,836,905 14,478,869 16,536,174 225,412 16,761,586 2,760,980 9,325,727 658,705 — 658,705 1,060,945 17,194,879 225,412 17,420,291 13,147,652 (461,990) (121,396) (583,386) 1,331,217 (12,499) 158,801 1,842 160,643 51,844 32,973 1,235 34,208 21,523 (24,959) — (24,959) — (813,332) — (813,332) — (646,517) 3,077 (643,440) 60,868 (1,108,507) (118,319) (1,226,826) 1,392,085 38,572,493 549,156 39,121,649 22,226,789 37,463,986 430,837 37,894,823 23,618,874 The notes to the financial statements are an integral part of this statement. 53 43 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended December 31, 2020 Governmental Cash Flows from Noncapital Financing Activities Property Taxes (24,959) — (24,959) — Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets Purchase of Capital Assets Principal Paid on Debt Interest Paid on Debt Cash Flows from Investing Activities Interest Received Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization Other Income (Expense) (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities 73,716 (1,989,895) Business -Type Activities - Enterprise Activities (813,332) Water and (3,128,227) — (3,128,227) (613,913) Internal (266,077) (74,295) Sewer Nonmajor Totals Service Cash Flows from Operating Activities Receipts from Customers and Users $ 17,858,490 166,798 18,025,288 3,331,543 Interfund Services Provided — 10,757,174 Payments to Suppliers (14,525,821) (271,145) (14,796,966) (10,484,816) Payments to Employees (2,243,457) (27,327) (2,270,784) (965,940) 1,089,212 (131,674) 957,538 2,637,961 Cash Flows from Noncapital Financing Activities Property Taxes (24,959) — (24,959) — Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets Purchase of Capital Assets Principal Paid on Debt Interest Paid on Debt Cash Flows from Investing Activities Interest Received Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization Other Income (Expense) (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities 73,716 (1,989,895) — (1,989,895) (687,629) (325,000) — (325,000) — (813,332) — (813,332) — (3,128,227) — (3,128,227) (613,913) 158,801 1,842 160,643 51,844 (1,905,173) (129,832) (2,035,005) 2,075,892 19,536,350 576,470 20,112,820 11,707,300 17,631,177 446,638 18,077,815 13,783,192 (461,990) (121,396) (583,386) 1,331,217 658,705 — 658,705 1,060,945 32,973 1,235 34,208 21,523 1,125,601 62,782 1,188,383 (411,675) (266,077) (74,295) (340,372) 635,951 1,089,212 (131,674) 957,538 2,637,961 The notes to the financial statements are an integral part of this statement. 54 44 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Fiduciary Net Position December 31, 2020 ASSETS Cash and Cash Equivalents Investments U.S. Government Obligations U.S. Agency Obligations State and Local Obligations Corporate Bonds Real Estate Mutual Funds Receivables Accrued Interest Due from Other Funds Prepaids Total Assets LIABILITIES Accounts Payable NET POSITION Net Position Restricted for Pensions Pension Trust $ 4,843,793 9,403,381 24,058,487 4,068,014 18,046,980 6,470,201 100,303,510 245,814 17,213 1,840 167,459,233 91,533 167,367,700 The notes to the financial statements are an integral part of this statement. 55 45 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2020 Pension Trust Additions Contributions - Employer S 7,350,592 Contributions - Plan Members 1,618,900 Total Contributions 8,969,492 Investment Income Interest Earned 3,726 Net Change in Fair Value 22,034,451 22,038,177 Less Investment Expenses (256,543) Net Investment Income 21,781,634 Total Additions 30,751,126 Deductions Administration 96,674 Benefits and Refunds 12,848,237 Total Deductions 12,944,911 Change in Fiduciary Net Position 17,806,215 Net Position Restricted for Pensions Beginning 149,561,485 Ending 167,367,700 The notes to the financial statements are an integral part of this statement. 56 46 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Mount Prospect (Village), Illinois, was incorporated in 1917. The Village operates under the Council/Manager form of government. The appointed manager administers daily operations with the community while the elected Village Mayor and six -member Board of Trustees determine Village policy. The Village's major operations include public works, finance, police, fire, community development, human services and communications. The government -wide financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant of the Village's accounting policies established in GAAP and used by the Village are described below. REPORTING ENTITY The Village's financial reporting entity comprises the following: Primary Government: Village of Mount Prospect 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. Based upon the criteria set forth in the GASB Statement No. 61, there are no component units included in the reporting entity. 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 Mayor, 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 contribution levels. Although it is legally separate from the Village, the 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. The PPERS is reported as a fiduciary fund, and specifically a pension trust fund, due to the fiduciary responsibility exercised over the PPERS. 47 57 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued REPORTING ENTITY - Continued Firefighters' Pension Employees Retirement System The Village's sworn 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, with two members appointed by the Village's Mayor, two elected from active participants of the Fund, and one elected pension beneficiary of the Fund. 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, the 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 firefighters. The FPERS is reported as a fiduciary fund, and specifically a pension trust fund, due to the fiduciary responsibility exercised over the FPERS. BASIS OF PRESENTATION Government -Wide Statements The Village's basic financial statements include both government -wide (reporting the Village as a whole) and fund financial statements (reporting the Village's major funds). Both the government -wide and fund financial statements categorize primary activities as either governmental or business -type. The Village's police and fire safety, highways and street maintenance and reconstruction, building code enforcement, public improvements, economic development, planning and zoning, and general administrative services are classified as governmental activities. The Village's waterworks and sewerage, and commuter parking activities are classified as business -type activities. In the government -wide Statement of Net Position, both the governmental and business -type activities columns are: (a) presented on a consolidated basis by column, and (b) reported on a full accrual, economic resource basis, which recognizes all long-term assets/deferred outflows and receivables as well as long-term debt/deferred inflows and obligations. The Village's net position is reported in three parts: net investment in capital assets; restricted; and unrestricted. The Village utilizes restricted resources to finance qualifying activities. 48 58 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Government -Wide Statements - Continued The government -wide Statement of Activities reports both the gross and net cost of each of the Village's functions and business -type activities (administration and finance, public safety, public works, development services, etc.). The functions are supported by administration and finance revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, which 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. The net costs (by function or business -type activity) are normally covered by general revenue (property taxes, intergovernmental revenues, fines, permits and charges, etc.). This government -wide focus is more on the sustainability of the Village as an entity and the change in the Village's net position resulting from the current year's activities. Fund Financial Statements The financial transactions of the Village are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self -balancing accounts that comprise its assets/deferred outflows, liabilities/deferred inflows, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. The emphasis in fund financial statements is on the major funds in either the governmental or business -type activities categories. GASB Statement No. 34 sets forth minimum criteria (percentage of the assets/deferred outflows, liabilities/deferred inflows, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The Village electively added funds, as major funds, which either had debt outstanding or specific community focus. The nonmajor funds are combined in a column in the fund financial statements. A fund is considered major if it is a primary operating fund of the Village or meets the following criteria: 49 59 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. The various funds are reported by generic classification within the financial statements. The following fund types are used by the Village: Governmental Funds The focus of the governmental funds' measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the Village: General Fund is the general operating fund of the Village. It accounts for all revenues and expenditures of the Village which are not accounted for in other funds. The General Fund is a major fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The Village maintains one major special revenue fund, the Prospect and Main TIF Fund, which is used to account for the resources to acquire property and construct certain improvements in the Prospect and Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. The Village also maintains eight nonmajor special revenue funds. Debt Service Funds are used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. The Village maintains one major debt service fund, the Debt Service Fund. The Debt Service Fund is used to account for the payment of interest and principal on the Village's general long-term debt obligations for the governmental activities. 50 60 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued Governmental Funds - Continued Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The Village maintains one major capital projects fund, the Police and Fire Building Construction Fund. The Police and Fire Building Construction Fund is used to account for the resources to construct the police and fire building. Financing is provided primarily by general obligation bond proceeds. The Village also maintains three nonmajor capital projects funds. Proprietary Funds The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. Enterprise funds account for operations for which a fee is charged to external users for goods or services and the activity (a) is financed with debt that is solely secured by a pledge of the net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be recovered with fees and charges or (c) establishes fees and charges based on a pricing policy designed to recover similar costs. The Village maintains one major enterprise fund, the Water and Sewer, which is used to account for the activities of the water and sewer operations. The Village operates sewerage lift and relief stations and waste water collection systems and the water distribution system. The Village maintains two nonmajor enterprise funds. Internal Service Funds are used to account for the financing of goods or services provided by an activity to other departments, funds or component units of the Village on a cost -reimbursement basis. The Village maintains four internal services funds. The Computer Replacement Fund is used to account for the acquisition of Village computer hardware. Financing is being provided by charges to various Village funds. The Risk Management Fund is used 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 in the various Village funds. The Vehicle Replacement Fund is used to account 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 Funds. The Vehicle Maintenance Fund is used to account for the maintenance and repair of all Village vehicles. Financing is being provided by charges to various Village funds. 51 61 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued Proprietary Funds - Continued The Village's internal service funds are presented in the proprietary funds financial statements. Because the principal users of the internal services are the Village's governmental activities, the financial statements of the internal service funds are consolidated into the governmental column when presented in the government -wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity (general government, public safety, highways and streets, etc.). Fiduciary Funds Fiduciary funds are used to report assets held in a trustee or custodial capacity for others and therefore are not available to support Village programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds. Pension trust funds are used to account for assets held in a trustee capacity for pension benefit payments. The Police Pension Fund accounts for the accumulation of resources to pay retirement and other related benefits for sworn members of the Village's police force. The Firefighters' Pension Fund accounts for the accumulation of resources to pay retirement and other related benefits for sworn members of the Village's Fire Department. The Village's pension trust funds are presented in the fiduciary fund financial statements. Since by definition these assets are being held for the benefit of a third party (pension participants) and cannot be used to address activities or obligations of the Village, these funds are not incorporated into the government -wide statements. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government -wide Statement of Net Position and the Statement of Activities, both governmental and business -type activities are presented using the economic resources measurement focus as defined below. 52 62 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING - Continued Measurement Focus - Continued In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets/deferred outflows and liabilities/deferred inflows are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. All proprietary and pension trust funds utilize an "economic resources" measurement focus. The accounting objectives of the "economic resources" measurement focus is the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows, liabilities/deferred inflows (whether current or noncurrent) associated with their activities are reported. Basis of Accounting In the government -wide Statement of Net Position and Statement of Activities, governmental and business -type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability/deferred inflow is incurred or economic asset used. Revenues, expenses, gains, losses, assets/deferred outflows, and liabilities/deferred inflows resulting from exchange and exchange -like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. The Village recognizes property taxes when they become both measurable and available in accordance with GASB Codification Section P70. A sixty-day availability period is used for revenue recognition for all other governmental fund revenues. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are recognized when due. 53 63 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING - Continued Basis of Accounting - Continued In applying the susceptible to accrual concept under the modified accrual basis, those revenues susceptible to accrual are property taxes, sales and use taxes, income taxes, use taxes, telecommunications taxes, local and state motor fuel taxes, food and beverages taxes, replacement taxes, franchise taxes, utility taxes, hotel/motel taxes, fines, interest revenue, and charges for services. All other revenues are not susceptible to accrual because generally they are not measurable until received in cash. All proprietary funds and pension trust funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Village's enterprise funds and of the Village's internal service funds are charges to customers for sales and services. The Village also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY Cash and Investments Cash and cash equivalents on the Statement of Net Position are considered to be cash on hand, demand deposits, cash with fiscal agent. For the purpose of the proprietary funds "Statement of Cash Flows," cash and cash equivalents are considered to be cash on hand, demand deposits, cash with fiscal agent, and all highly liquid investments with an original maturity of three months or less. Investments are generally reported at fair value. Short-term investments are reported at cost, which approximates fair value. For investments, the Village categorizes its 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; Level 3 inputs are significant unobservable inputs. 54 64 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY - Continued Interfund Receivables, Payables and Activity Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Receivables In the government -wide financial statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivables balances for governmental activities include property taxes, sales and use taxes, income taxes, utility taxes, and grants. Business -type activities report charges for services as their major receivables. Prepaids/Inventories Prepaids/inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The cost of governmental fund -type prepaids/inventories are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both the government -wide and fund financial statements. Deferred Outflows/Inflows of Resources Deferred outflow/inflow of resources represents an acquisition/reduction of net position that applies to a future period and therefore will not be recognized as an outflow of resources (expense)/inflow of resources (revenue) until that future time. 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. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. 55 65 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY - Continued Capital Assets - Continued The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. General capital assets are long-lived assets of the Village as a whole. Infrastructure such as streets and storm sewers are capitalized. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by the governmental activities) the government chose to include all such items regardless of their acquisition date. The valuation basis for general capital assets is historical cost, or where historical cost is not available, estimated historical cost based on replacement costs. Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are capitalized at acquisition value on the date donated. Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives: Buildings and Improvements 20 - 50 Years Machinery and Equipment 2 - 20 Years Vehicles 2 - 20 Years Infrastructure 15 - 50 Years Compensated Absences The Village accrues accumulated unpaid vacation and associated employee -related costs when earned (or estimated to be earned) by the employee. In accordance with GASB Statement No. 16, no liability is recorded for nonvesting accumulation rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave that is estimated to be taken as "terminal leave" prior to retirement. All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Long -Term Obligations In the government -wide financial statements, and proprietary fund types 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 type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenses at the time of issuance. 56 66 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY - Continued Long -Term Obligations - Continued In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Net Position In the government -wide financial statements, equity is classified as net position and displayed in three components: Net Investment in Capital Assets - Consists of capital assets, including restricted capital assets, net of accumulated depreciation, and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted - Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. Unrestricted - All other net position balances that do not meet the definition of "restricted" or "net investment in capital assets." NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY BUDGETARY INFORMATION All departments of the Village submit requests for appropriations 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. 57 67 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - Continued BUDGETARY INFORMATION - Continued The proposed budget is presented to the governing body for review. The governing body holds public hearings and may add to, subtract from, or change appropriations, but may not change the form of the budget. The Village Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the governing body. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, budget amendments were approved by the Village Board. The final budget figures included in this report reflect all budget amendments made during the year. EXCESS OF ACTUAL EXPENDITURES/EXPENSES OVER BUDGET IN INDIVIDUAL FUNDS The following fund had an excess of actual expenditures/expenses, exclusive of depreciation, over budget as of the date of this report: Fund Excess Risk Management $ 102,989 Police Pension 188,798 Firefighters' Pension 100,948 NOTE 3 - DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds except the pension trust funds. Each fund type'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. Permitted Deposits and Investments - Illinois Statutes authorizes the Village to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, obligations of States and their political subdivisions, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating services, Illinois Funds and the Illinois Metropolitan Investment Fund. 58 68 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued The deposits and investments of the Pension Funds are held separately from those of other Village funds. Illinois Statutes authorizes the Pension Fund to make deposits/invest in interest bearing direct obligations of the United States of America; obligations that are fully guaranteed or insured as to the payment of principal and interest by the United States of America; bonds, notes, debentures, or similar obligations of agencies of the United States of America; savings accounts or certificates of deposit issued by banks or savings and loan associations chartered by the United States of America or by the State of Illinois, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; credit unions, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; State of Illinois bonds; pooled accounts managed by the Illinois Funds Market Fund (Formerly known as IPTIP, Illinois Public Treasurer's Investment Pool), or by banks, their subsidiaries or holding companies, in accordance with the laws of the State of Illinois; bonds or tax anticipation warrants of any county, township, or municipal corporation of the State of Illinois; direct obligations of the State of Israel; money market mutual funds managed by investment companies that are registered under the Federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended management investment companies, provided the portfolio is limited to specified restrictions; general accounts of life insurance companies; and separate accounts of life insurance companies and mutual funds, the mutual funds must meet specific restrictions, provided the investment in separate accounts and mutual funds does not exceed ten percent of the Pension Fund's plan net position; and corporate bonds managed through an investment advisor, rated as investment grade by one of the two largest rating services at the time of purchase. Pension Funds with plan net position of $2.5 million or more may invest up to forty-five percent of plan net position in separate accounts of life insurance companies and mutual funds. Pension Funds with plan net position of at least $5 million that have appointed an investment advisor, may through that investment advisor invest up to forty-five percent of the plan net position in common and preferred stocks that meet specific restrictions. In addition, Pension Funds with plan net position of at least $10 million that have appointed an investment advisor, may invest up to fifty percent of its net position in common and preferred stocks and mutual funds that meet specific restrictions effective July 1, 2011 and up to fifty- five percent effective July 1, 2012. The Illinois Funds is an investment pool managed by the Illinois Public Treasurer's Office which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company. Investments in Illinois Funds are valued at the share price, the price for which the investment could be sold. 59 69 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued The Illinois Metropolitan Investment Fund (IMET) is a non -for-profit investment trust formed pursuant to the Illinois Municipal Code. IMET is 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 the share price, the price for which the investment could be sold. The Illinois Public Reserves Investment Management Trust (IPRIME) is an investment opportunity and cash management service for Illinois Municipal Treasurers acting on behalf of counties, townships, cities, towns, villages, special road districts, public water supply districts, fire protection districts, drainage districts, levee districts, sewer districts, housing authorities, and all other political corporations or subdivisions of the State of Illinois. Participation in IPRIME is voluntary. IPRIME is not registered with the SEC as an Investment Company. Investments in IPRIME are valued at the share price, the price for which the investment could be sold. Village - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk Deposits. At year-end, the carrying amount of the Village's deposits for governmental and business -type totaled $26,052,440 and the bank balances totaled $29,447,502. In addition, the Village has $16,286,614 invested in IPRIME, $24,584,358 invested in the Illinois Funds, and $21,215 invested in IMET at year-end, which have an average maturity of less than one year. Interest Rate Risk. 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. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. 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 Funds were rated AAAm by Standard & Poor's. The Illinois Metropolitan Investment Trust Convenience Fund and IPRIME are not rated and the Illinois Metropolitan Investment Trust 1-3 Year Fund is rated AAAf by Standard & Poor's. 60 70 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Village - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Concentration Risk. This is the risk of loss attributed to the magnitude of the Village's investment in a single issuer. 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. At year-end, the Village does not have any investments over 5 percent of the cash and investment portfolio (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a 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 in the Village's name. For an investment, this is the risk that in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. To limit its exposure, the Village's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by an independent third -party custodian and evidenced by safekeeping receipts and a written custodial agreement. The Illinois Funds, money market mutual funds, and IMET are not subject to custodial credit risk. Police Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk Deposits. At year-end, the carrying amount of the Fund's deposits totaled $3,167,675 and the bank balances totaled $3,166,753. 61 71 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Investments. The following table presents the investments and maturities of the Fund's debt securities as of December 31, 2020: Investment Maturities (in Years) Fair Less Than More Than Investment Type Value 1 1-5 6-10 10 U.S. Government Obligations $ 3,591,666 455,181 1,729,806 1,406,679 — U.S. Agency Obligations 11,980,941 41,959 1,612,880 6,774,325 3,551,777 State and Local Obligations 3,707,677 190,002 727,577 1,949,871 840,227 Corporate Bonds 8,045,520 1,112,521 4,219,589 2,713,410 — Totals 27,325,804 1,799,663 8,289,852 12,844,285 4,392,004 The Fund has the following recurring fair value measurements as of December 31, 2020: Investments by Fair Value Level Debt Securities U.S. Government Obligations U.S. Agency Obligations State and Local Obligations Corporate Bonds Equity Securities Mutual Funds Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Totals (Level 1) (Level 2) (Level 3) $ 3,591,666 3,591,666 11,980,941 — 3,707,677 — 8,045,520 — 56,329,456 56,329,456 11,980,941 — 3,707,677 — 8,045,520 — Total Investments Measured at Fair Value 83,655,260 59,921,122 23,734,138 — 62 72 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Investfnents - Continued. Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. Interest Rate Risk. 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. Credit Risk. The Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. At year-end, the Fund's investments in U.S. Agency obligations were rated AAA by Standard & Poor's, the state and local obligations were rated AAA by Standard & Poor's, and the corporate bonds were rated BAA3 to AAA by Standard & Poor's. Custodial Credit Risk. For deposits, this 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 does not address custodial credit risk for deposits. At December 31, 2020, the entire amount of the bank balance of the deposits was covered by federal depository or equivalent insurance. For investments, the Fund's investment policy limits its exposure by requiring 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, in the name of the respective Fund, and evidenced by safekeeping receipts. Concentration Risk. The Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities custodians of the Fund, shall hold more than 10% of the Fund's portfolio at any time. Neither shall The Illinois Funds hold more than 10% of the Fund's portfolio at any time. In addition, the following allocations are desired: depository accounts and money market mutual funds at 1% to 5%, fixed income securities at 40% to 44%, and equity securities at 55%. In addition to the securities and fair values listed above, the Fund also has $56,329,456 invested in mutual funds. At year-end, the Fund does not have any investments (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments) in any one organization that represent 5 percent or more of net position available for retirement benefits. 63 73 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Concentration Risk - Continued. The Fund's investment policy in accordance with Illinois Compiled Statutes (ILCS) establishes the following target allocation across asset classes: Long -Term Expected Real Asset Class Target Return Fixed Income 35.00% 1.40% Equity Mutual Funds 65.00% 7.00% Cash 0.00% 0.00% Illinois Compiled Statutes (ILCS) limit the Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The long-term expected rate of return on the Fund's investments was determined using an asset allocation study conducted by the Fund's investment management consultant in April 2021 in which best -estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the Fund's target asset allocation as of December 31, 2020 are listed in the table above. Rate of Return For the year ended December 31, 2020, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 13.20%. The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 64 74 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Firefighters' Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk Deposits. At year-end, the carrying amount of the Fund's deposits totaled $1,676,118 and the bank balances totaled $1,676,118. Investments. At year-end, the Firefighters' Pension Fund has the following investments and maturities: Investment Maturities (in Years) Fair Less Than More Than Investment Type Value 1 1-5 6-10 10 U.S. Government Obligations $ 5,811,715 808,194 3,460,412 1,543,109 — U.S. Agency Obligations 12,077,546 101,646 2,570,026 2,361,228 7,044,646 State and Local Obligations 360,337 — 304,679 55,658 — Corporate Bonds 10,001,460 549,983 5,913,753 3,381,552 156,172 Totals 28,251,058 1,459,823 12,248,870 7,341,547 7,200,818 The Fund has the following recurring fair value measurements as of December 31, 2020: Total Investments Measured at Fair Value 78,695,313 56,255,970 22,439,343 — 65 75 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Investments by Fair Value Level Total (Level 1) (Level 2) (Level 3) Debt Securities U.S. Government Obligations $ 5,811,715 5,811,715 U.S. Agency Obligations 12,077,546 — 12,077,546 — State and Local Obligations 360,337 — 360,337 — Corporate Bonds 10,001,460 — 10,001,460 — Equity Securities Real Estate Annuity 6,470,201 6,470,201 Mutual Funds 43,974,054 43,974,054 Total Investments Measured at Fair Value 78,695,313 56,255,970 22,439,343 — 65 75 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Firefighters' Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Investments - Continued. Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. Interest Rate Risk. 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. Credit Risk. The Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. At year-end, the Fund's investments in U.S. Agency obligations were rated AAA by Standard & Poor's, the state and local obligations were rated AA2 to AAA by Standard & Poor's, and the corporate bonds were rated Bal- to AAA by Standard & Poor's. Custodial Credit Risks. For deposits, the Fund's investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral held by an independent third party or the Federal Reserve Bank, and evidenced by safekeeping receipts. At December 31, 2020, the entire amount of the bank balance of the deposits was covered by federal depository or equivalent insurance. For investments, 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. Concentration Risk. The Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities custodians and fixed income investment managers of the Fund, shall hold more than 10% of the Fund's portfolio at any time. Neither shall The Illinois Funds hold more than 10% of the Fund's portfolio at any time. In addition, the following allocations are desired: depository accounts and money market mutual funds at 1% to 5%, fixed income securities at 50% to 54%, and 55% in equity securities. In addition to the securities and fair values listed above, the Fund also has $43,974,054 invested in mutual funds and $6,470,201 invested in real estate. At year-end, the Fund does not have any investments (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments) in any one organization that represent 5 percent or more of net position available for retirement benefits. 66 76 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Firefighters' Pension Fund - Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentration Risk - Continued Concentration Risk - Continued. The Fund's investment policy in accordance with Illinois Compiled Statutes (ILCS) establishes the following target allocation across asset classes: Long -Term Expected Real Asset Class Target Return Fixed Income 35.00% 2.50% Equity Mutual Funds 55.00% 8.00% Real Estate 10.00% 4.50% Cash 0.00% 0.00% Illinois Compiled Statutes (ILCS) limit the Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The long-term expected rate of return on the Fund's investments was determined using an asset allocation study conducted by the Fund's investment management consultant in April 2021 in which best -estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the Fund's target asset allocation as of December 31, 2020 are listed in the table above. Rate of Return For the year ended December 31, 2020, 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. PROPERTY TAXES Property taxes for 2019 attach as an enforceable lien on January 1, on property values assessed as of the same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy Ordinance). Tax bills are prepared by Cook County and are payable in two installments, on or about March l and September 1 during the following year. 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. 67 77 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS Governmental Activities Governmental capital asset activity for the year was as follows: Nondepreciable Capital Assets Land Construction in Progress Depreciable Capital Assets Buildings Improvements Other than Buildings Vehicles Machinery and Equipment Infrastructure Less Accumulated Depreciation Buildings Improvements Other than Buildings Vehicles Machinery and Equipment Infrastructure Beginning Ending Balances Increases Decreases Balances $ 14,313,779 1,298,541 — 15,612,320 23,901,931 10,671,236 9,648,365 24,924,802 38,215,710 11,969,777 9,648,365 40,537,122 39,036,928 16,781,916 — 55,818,844 891,239 625,681 — 1,516,920 12,286,674 978,944 803,298 12,462,320 4,872,633 1,579,432 65,253 6,386,812 89,036,886 5,043,653 7,823 94,072,716 146,124,360 25,009,626 876,374 170,257,612 12,607,832 943,226 — 13,551,058 400,312 27,355 — 427,667 6,947,186 956,383 717,083 7,186,486 2,539,717 248,924 65,253 2,723,388 73,788,829 2,131,955 7,823 75,912,961 96,283,876 4,307,843 790,159 99,801,560 Total Net Depreciable Capital Assets 49,840,484 20,701,783 86,215 70,456,052 Total Net Capital Assets 88,056,194 32,671,560 9,734,580 110,993,174 Depreciation expense was charged to governmental activities as follows: General Government $ 437,437 Public Safety 535,390 Highways and Streets 2,260,730 Health 2,349 Welfare 3,752 Culture and Recreation 7,240 Internal Service 1,060,945 4,307,843 68 78 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS - Continued Business -Type Activities Business -type capital asset activity for the year was as follows: Nondepreciable Capital Assets Land Construction in Progress Depreciable Capital Assets Building and Improvements Machinery and Equipment Infrastructure Less Accumulated Depreciation Building and Improvements Machinery and Equipment Infrastructure Total Other Capital Assets Total Capital Assets Beginning Ending Balances Increases Decreases Balances $ 17,318,818 17,318,818 2,163,498 1,585,682 1,292,660 2,456,520 19,482,316 1,585,682 1,292,660 19,775,338 4,499,808 4,499,808 5,017,968 5,017,968 31,638,611 1,696,873 29,020 33,306,464 41,156,387 1,696,873 29,020 42,824,240 3,064,185 64,922 — 3,129,107 3,612,740 118,705 — 3,731,445 15,510,454 503,162 29,020 15,984,596 22,187,379 686,789 29,020 22,845,148 18,969,008 1,010,084 — 19,979,092 38,451,324 2,595,766 1,292,660 39,754,430 Depreciation expense was charged to business -type activities as follows: Water and Sewer $ 686,789 69 79 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued INTERFUND TRANSFERS Interfund transfers for the year consisted of the following: Transfer In Transfer Out Amount Prospect and Main TIF District Police and Fire Building Construction $ 590,000 Debt Service General 1,105,000 Nomnajor Governmental General 3,493,000 5,188,000 The purpose of significant transfers from/to between funds are as follows: • $590,000 transferred to the Prospect and Main TIF District Fund from the Police and Fire Building Construction Fund as a partial reimbursement for land acquisition costs paid by the Prospect and Main TIF District. • $1,105,000 transferred to the Debt Service Fund from the General Fund for debt service payments. • $3,493,000 transferred to the Flood Control Fund, a nonmajor governmental fund, from the General Fund to fund the project at Burning Bush Trials Park for installation of large storm sewer main and associated detention basins providing flood relief to neighborhoods' tributary to Levee 37. INTERFUND BALANCES Interfund balances are advances in anticipation of receipts. The composition of interfund balances as of the date of this report, is as follows: Receivable Fund Payable Fund Amount General Nonmajor Governmental $ 525,000 Police Pension General 9,014 Fire Pension General 8,199 542,213 70 80 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued INTERGOVERNMENTAL RECEIVABLES The following receivables are included in due from other governments on the statement of net position: Governmental Activities Mount Prospect Public Library $ 3,072,158 Grants 1,320,535 Miscellaneous 52,480 Total 4,445,173 The Series 2006 General Obligation Library Refunding Bonds, the Series 2011A General Obligation Refunding Bonds, and the Series 2016 General Obligation Refunding Bonds were issued to provide financing to the Mount Prospect Public Library (the Library). The Library is repaying these bonds issued by the Village. The Series 2006 General Obligation Library Refunding Bonds were refunded by the Series 2016 General Obligation Refunding Bonds during fiscal year 2016. The future principal and interest payments owed from the Library are as follows with the principal portion recorded as an intergovernmental receivable in the debt service fund/governmental activities. The annual debt service requirements are as follows: Fiscal Year Principal Interest 2021 $ 1,515,000 61,300 2022 1,550,000 31,000 3,065,000 92,300 NOTE 3 - DETAIL NOTES ON ALL FUNDS LONG-TERM DEBT Asset Retirement Obligation The Village has recognized an asset retirement obligation (ARO) and related deferred outflow of resources in connection with its obligation to seal and abandon various water wells at the end of their estimated useful lives in accordance with the Illinois Administrative Code Title 77. The ARO was measured using actual historical costs for similar abandonments, adjusted for inflation through the end of the year. The estimated remaining useful lives of the water wells are 100 years. 71 81 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued General Obligation Bonds The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental and business -type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. General obligation bonds currently outstanding are as follows: Fund Debt Beginning Ending Retired by Balances Issuances Retirements Balances $5,160,0000 General Obligation Bonds of 201113, due in annual installments of $40,000 to $775,000 plus interest at 2.52% Debt through December 1, 2020. Service $ 775,000 — 775,000 $2,975,000 General Obligation Bonds of 2012, due in annual installments of $610,000 to $885,000 plus interest at 3.10% Debt through December 1, 2022. Service 1,745,000 1,745,000 $9,800,000 General Obligation Bonds of 2013, due in annual installments of $555,000 to $885,000 plus interest at 3.00% to 4.125% through December 1, Debt 2033. Service 9,800,000 — 555,000 9,245,000 $6,290,000 General Obligation Bonds of 2014, due in annual installments of $290,000 to $1,265,000 plus interest at 3.00% Debt through December 1, 2023. Service 4,115,000 — 760,000 3,355,000 72 82 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued General Obligation Bonds - Continued Fund Debt Beginning Ending Retired by Balances Issuances Retirements Balances $8,735,000 General Obligation Refunding Bonds of 2016, due in annual installments of $1,375,000 to $1,550,000 plus interest at 2.00% to 3.00% through Debt December 1, 2022. Service $ 4,535,000 — 1,470,000 3,065,000 $9,100,000 General Obligation Refunding Bonds of 2016A, due in annual installments of $120,000 to $1,905,000 plus interest at 3.00% through Debt December 1, 2028. Service 8,860,000 8,860,000 $9,740,000 General Obligation Bonds of 2017, due in annual prospect and installments of $125,000 to Main TIF 4,815,000 4,815,000 $460,000 plus interest at 2.50% to Water and 4.00% through December 1, 2037. Sewer 4,675,000 — 140,000 4,535,000 $11,950,000 General Obligation prospect and Bonds of 2018A, due in annual Main TIF 7,060,000 7,060,000 installments of $115,000 to $700,000 plus interest at 3.25% to Water and 5.00% through December 1, 2037. Sewer 4,595,000 — 125,000 4,470,000 $38,440,000 General Obligation Bonds of 2018B, due in annual installments of $155,000 to $3,110,000 plus interest at 3.625% to 5.000% through Debt December 1, 2043. Service 38,040,000 — 455,000 37,585,000 73 83 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued General Obligation Bonds - Continued Fund Debt Beginning Ending Retired by Balances Issuances Retirements Balances $9,600,000 General Obligation Bonds of 2019A, due in annual installments of $60,000 to $800,000 plus interest at 2.00% to Water and 5.00% through December 1, 2039. Sewer $ 9,600,000 $7,725,000 General Obligation Bonds of 2019B, due in annual installments of $210,000 to $740,000 plus interest at 3.00% to Prospect and 5.00% through December 1, 2039. Main TIF 7,725,000 Limited Tax Note Payable 60,000 9,540,000 7,725,000 106,340,000 — 4,340,000 102,000,000 The Village has issued a note payable (direct borrowing) 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 teen 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. Notes payable currently outstanding are as follows: Fund Debt Beginning Ending Retired by Balances Issuances Retirements Balances $25,000,000 Business District Limited Tax Note Payable of 2010, due in semiannual installments plus interest at 6.710% contingent upon sufficient Business pledged revenues. District $ 35,329,187 2,285,955 1,709,966 35,905,176 74 84 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONGTERM DEBT - Continued Long -Term Liabilities Activity Changes in long-term liabilities during the fiscal year were as follows: Amounts Beginning Ending within Type of Debt Balances Additions Deductions Balances One Year Governmental Activities Compensated Absences General Internal Services Claims Payable Net Pension Liability IMRF Police Pension Firefighters' Pension Total OPEB Liability - RBP General Internal Services General Obligation Bonds Unamortized Premium Business District Limited Tax Note Payable $ 3,658,656 923,074 461,537 4,120,193 945,253 96,914 16,012 8,006 104,920 20,984 414,909 1,107,301 823,012 699,198 476,885 9,504,098 44,990,138 38,460,088 5,363,549 7,502,503 5,910,403 11,604,196 1,462,091 - 236,037 306,513 - 87,470,000 - 4,015,000 3,006,575 - 314,605 35,329,187 2,285,955 1,709,966 4,140,549 37,487,635 32,549,685 13,066,287 - 542,550 - 83,455,000 4,590,000 2,691,970 - 35,905,176 1,051,254 For the governmental activities, payments on the compensated absences, the net pension liabilities and the total OPEB liability are made by the General Fund. Payments on general obligation bonds are being liquidated by the Debt Service Fund and the Prospect and Main TIF, and the Business District Limited Tax Note Payable is being liquidated by the Business District Fund. Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. 75 85 234,770,798 6,100,946 26,108,581 214,763,163 7,084,376 Business -Type Activities Compensated Absences 211,207 173,165 86,583 297,789 59,557 Net Pension Liability - IMRF 2,224,548 - 1,425,284 799,264 - Total OPEB Liability - RBP 338,090 910,353 - 1,248,443 - Asset Retirement Obligation 750,000 - - 750,000 - General Obligation Bonds 18,870,000 - 325,000 18,545,000 525,000 Unamortized Premium 697,083 - 35,585 661,498 - 23,090,928 1,083,518 1,872,452 22,301,994 584,557 For the governmental activities, payments on the compensated absences, the net pension liabilities and the total OPEB liability are made by the General Fund. Payments on general obligation bonds are being liquidated by the Debt Service Fund and the Prospect and Main TIF, and the Business District Limited Tax Note Payable is being liquidated by the Business District Fund. Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. 75 85 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONGTERM DEBT - Continued Long -Term Liabilities Activity - Continued Additionally, for business -type activities, compensated absences and the total OPEB liability are liquidated by the Water and Sewer, Parking System Revenue and Village Parking System Funds. The net pension liability and the general obligation bonds are being liquidated by the Water and Sewer Fund. Debt Service Requirements to Maturity The annual debt service requirements to maturity, including principal and interest, are as follows: Governmental Activities Business -Type Activities General Obligation General Obligation Fiscal Bonds Bonds Year Principal Interest Principal Interest 2021 $ 4,590,000 3,119,988 525,000 663,082 2022 4,505,000 2,984,378 575,000 638,332 2023 2,990,000 2,858,192 625,000 611,182 2024 3,125,000 2,758,092 680,000 581,682 2025 3,285,000 2,631,142 740,000 549,582 2026 3,450,000 2,510,192 805,000 514,632 2027 3,605,000 2,384,742 860,000 478,782 2028 3,785,000 2,257,668 920,000 447,832 2029 3,455,000 2,127,075 980,000 414,400 2030 3,750,000 1,975,799 1,045,000 378,450 2031 3,955,000 1,815,013 1,110,000 344,694 2032 4,170,000 1,645,689 1,170,000 307,756 2033 4,400,000 1,467,375 1,245,000 268,832 2034 3,715,000 1,280,170 1,315,000 229,420 2035 3,900,000 1,151,550 1,390,000 187,788 2036 4,090,000 1,014,519 1,460,000 144,244 2037 4,285,000 870,125 1,540,000 98,012 2038 3,260,000 718,400 760,000 48,750 2039 3,400,000 598,200 800,000 25,000 2040 2,765,000 469,600 2041 2,875,000 359,000 2042 2,990,000 244,000 2043 3,110,000 124,400 Totals 83,455,000 37,365,309 18,545,000 6,932,452 76 86 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONGTERM DEBT - Continued Legal Debt Margin Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. "The General Assembly may limit by law the amount and require referendum approval of debt to the 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 Illinois General Assembly has set no limits for home rule municipalities. The Village is a home rule municipality. NET POSITION CLASSIFICATIONS Net investment in capital assets was comprised of the following as of December 31, 2020: Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 110,993,174 Plus: Unamortized Refunding Loss 306,113 Unspent Bond Proceeds 1,296,372 Less Capital Related Debt: General Obligation Bonds of 2012 (1,745,000) General Obligation Bonds of 2013 (9,245,000) General Obligation Bonds of 2014 (3,355,000) General Obligation Refunding Bonds of 2016 (3,065,000) General Obligation Refunding Bonds of 2016A (8,860,000) General Obligation Bonds of 2017 (4,815,000) General Obligation Bonds of 2018A (7,060,000) General Obligation Bonds of 2018B (37,585,000) General Obligation Bonds of 2019B (7,725,000) Premium on Debt Issuance (2,691,970) Net Investment in Capital Assets 26,448,689 77 87 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued NET POSITION CLASSIFICATIONS - Continued Business -Type Activities Capital Assets - Net of Accumulated Depreciation $ Less Capital Related Debt: General Obligation Bonds of 2017 General Obligation Bonds of 2018A General Obligation Bonds of 2019A 39,754,430 (4,535,000) (4,470,000) (9,540,000) Premium on Debt Issuance (661,498) Net Investment in Capital Assets 20,547,932 FUND BALANCE CLASSIFICATIONS In the governmental funds financial statements, the Village considers restricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. The Village first utilizes committed, then assigned and then unassigned fund balance when an expenditure is incurred for purposes for which all three unrestricted fund balances are available. Nonspendable Fund Balance. Consists of resources that cannot be spent because they are either: a) not in a spendable form; or b) legally or contractually required to be maintained intact. Restricted Fund Balance. Consists of resources that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance. Consists of resources constrained (issuance of an ordinance) to specific purposes by the government itself, using its highest level of decision-making authority, the Board of Trustees; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest -level action to remove or change the constraint. Assigned Fund Balance. Consists of amounts that are constrained by the Board of Trustees's intent to be used for specific purposes but are neither restricted nor committed. Intent is expressed by a) the Board of Trustees itself or b) a body or official to which the Board of Trustees has delegated the authority to assign amounts to be used for specific purposes. The Village's highest level of decision-making authority is the Board of Trustees, who is authorized to assign amounts to a specific purpose. Unassigned Fund Balance. Consists of residual net resources of a fund that has not been restricted, committed, or assigned within the General Fund and deficit fund balances of other governmental funds. 78 88 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued FUND BALANCE CLASSIFICATIONS - Continued Minimum Fund Balance Policy. The Village's policy manual states that the General Fund should maintain an unrestricted fund balance level between 20% to 30% of the subsequent fiscal year's expenditures, the special revenue funds (except the CDBG Fund) should maintain a fund balance level between 10% and 25% of the annual budgeted expenditures, not including capital, debt service and transfers, the Debt Service Fund should maintain a fund balance level at a maximum of the amount of the next principal and interest payment due, and the Capital Projects Fund should maintain a fund balance level between 25% and 50% of the five-year average for capital expenditures supported by the fund to a maximum of $1 million. The following is a schedule of fund balance classifications for the governmental funds as of the date of this report: Special Revenue Capital Projects Prospect/ Police and Fire Main Debt Building General TIF Service Construction Nonmajor Totals Fund Balances Nonspendable Inventories $ 752 752 Prepaids 381,150 1,500 1,350 — 105,645 489,645 381,902 1,500 1,350 — 105,645 490,397 Restricted Public Safety Police 322,594 322,594 Fire 413,742 413,742 Highways and Streets — 24,491 — — 3,789,560 3,814,051 Debt Service — — 1,521,124 — — 1,521,124 — 24,491 1,521,124 — 4,525,896 6,071,511 Committed Capital Projects 2,300,000 2,300,000 Refuse Disposal 934,034 934,034 2,300,000 934,034 3,234,034 Assigned Debt Service — — 1,604,391 — — 1,604,391 Capital Projects 44,134 5,502,411 5,546,545 1,604,391 44,134 5,502,411 7,150,936 Unassigned 23,492,469 — 23,492,469 Total Fund Balances 26,174,371 25,991 3,126,865 44,134 11,067,986 40,439,347 79 89 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued NET POSITION RESTATEMENT Beginning net position was restated to correct an error in governmental activities Business District Limited Tax Note Payable. The following is a summary of the net position as originally reported and as restated: Net Position As Reported As Restated Increase Governmental Activities $ (67,448,396) (65,723,466) 1,724,930 NOTE 4 - OTHER INFORMATION 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 the Village's participation in the Intergovernmental Risk Management Agency (IRMA) and the Intergovernmental Personnel Benefit Cooperative ([PBC). There have been no significant reductions in coverage from the prior year and settled claims have not exceeded coverage for any of the past three years. Intergovernmental Risk Management Agency (IRMA) The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperations Statute to pool its risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers' compensation claim administration/litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the Board of Directors. Initial contributions are determined each year based on the individual member's eligible revenue as defined in the by-laws of IRMA and experience modification factors based on past member loss experience. Each member assumes the first $10,000 (higher optional deductibles available) of each occurrence, and IRMA has self-insurance retentions at various amounts above that level. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. Supplemental contributions may be required to fund these deficits. The Village's payments to IRMA are displayed on the financial statements as expenditures/expenses in the appropriate funds. The coverages provided by IRMA are generally consistent with the coverages in the prior year. 80 90 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued RISK MANAGEMENT - Continued Intergovernmental Risk Management Agency (IRMA) - Continued The Village has chosen an optional higher deductible of $100,000. A related reserve deposit of $1,116,941 is being held at IRMA at December 31, 2020. The Village's insurance activities are reported in the Risk Management Fund which is an internal service fund. Premiums are paid into the Risk Management Fund by the departments of the General Fund and other funds based upon historical cost estimates. The total claims liability remaining as of December 31, 2020 was $699,198. Changes in the balances of claims liabilities during the fiscal year are as follows: Workers' General Auto Compensation Liability Total Claims Payable - December 31, 2018 $ 41 485,943 109,535 595,519 Incurred Claims 157,471 681,263 26,429 865,163 Claims Paid (157,512) (776,382) (111,879) (1,045,773) Claims Payable - December 31, 2019 390,824 24,085 414,909 Incurred Claims 44,366 903,218 159,717 1,107,301 Claims Paid (43,972) (713,675) (65,365) (823,012) Claims Payable - December 31, 2020 394 580,367 118,437 699,198 Intergovernmental Personnel Benefit Cooperative (IPBC) Risks for medical and death benefits for employees and retirees are provided for through the Village's participation in the Intergovernmental Personnel Benefit Cooperative (IPBC). 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 or underages for participation in the pool are adjusted into subsequent years experience factor for premiums. here 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. A reserve deposit of $2,812,678 is being held at IPBC at December 31, 2020. 81 91 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued CONTINGENT LIABILITIES 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 attorneys, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. 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. Financial Impact from COVID-19 In March 2020, the World Health Organization declared the COVID-19 virus a public health emergency. As of the date of this report, the extent of the impact of COVID-19 on the Village's operations and financial position cannot be determined. COMMITMENTS Solid Waste Agency of Northern Cook County (SWANCC) 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 2021, the Village estimates it will pay SWANCC $1,038,810, with annual increases ranging from 0% to 3% through 2022. Northwest Suburban Municipal Joint Action Water Agency (JAWA) The Village has committed to purchase water from the Northwest Suburban Municipal Joint Action Water Agency (JAWA). A new agreement, negotiated by the Member Communities and JAWA was approved on March 13, 2018. This Revised Water Supply Agreement will expire in FY 2032. The obligation to pay minimum annual amounts was removed from the new agreement. 82 92 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued JOINT VENTURES Northwest Suburban Municipal Joint Action Water Agency (JAWA) The Village is a member of the 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, 2020 are as follows: Percent Share Village of Elk Grove Village 18.03% Village of Hanover Park 8.82% Village of Hoffman Estates 15.74% Village of Mount Prospect 12.21% City of Rolling Meadows 6.77% Village of Schaumburg 27.42% Village of Streamwood 11.01% 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 consists 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 bylaws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the bylaws. 83 93 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued JOINT VENTURES - Continued Northwest Suburban Municipal Joint Action Water Agency (JAWA) - 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 December 31, 2022. The Agreements are irrevocable and may not be terminated or amended except as provided 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 under which the City has agreed to sell quantities of lake water sufficient to supply the projected water needs of JAWA 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 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 from revenues of the Water System shall be payable from the operation and maintenance account of the Water and Sewer Fund. In accordance with the joint venture agreement, the Village remitted $7,517,582 to JAWA for the year ended December 31, 2020. All payments were paid from the Water and Sewer Fund. Deposits with JAWA in the amount of $499,401 represent amounts held for security of debt service. 84 94 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued JOINT VENTURES - Continued Solid Waste Agency of Northern Cook County (SWANCC) The Village is a member of the Solid Waste Agency of Northern Cook County (SWANCC) which consists of twenty-three municipalities. SWANCC is a municipal corporation and public body politic, established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the Act). SWANCC is empowered under the Act to plan, construct, finance, operate, and maintain a solid waste disposal system to serve its members. SWANCC is reported as a nonequity proprietary joint venture. SWANCC 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 SWANCC are appointed by the Board of Directors. The Board of Directors determines the general policy of SWANCC, makes all appropriations, approves contracts, adopts resolutions providing for the issuance of bonds or notes by SWANCC, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the SWANCC agreement or by-laws. Separate audited financial statements are available from SWANCC's administrative office at 77 W Hintz Road, Suite 200, Wheeling, Illinois 60090. The Village's contract with SWANCC provides that each member is liable for its proportionate share of annual operating and fixed costs. The Village's share of these costs is expected to be funded through tipping fees paid by refuse haulers. In addition, the Village is obligated for any costs arising from defaults in payment obligations by other members. In accordance with the joint venture agreement, the Village remitted $1,018,287 to SWANCC for the year ended December 31, 2020, which is recorded in the Village's Refuse Disposal Fund. EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), a defined benefit 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. IMRF does issue a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole, but not by individual employer. That report may be obtained on-line at www.imrf.org. The Police and Firefighters' Pension Plans also issue separate reports that may be obtained by writing the Village at 3600 Kirchoff Road, Rolling Meadows, Illinois 60008.. The benefits, benefit levels, employee contributions and employer contributions are governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly. 85 95 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued The aggregate amounts recognized for the pension plans are: Expenses/ Net Pension Deferred Deferred (Revenues) Liabilities Outflows Inflows 1 LARIVI Village $ 2,095,274 4,939,813 4,501,788 3,795,583 Library 571,265 1,697,276 1,546,774 1,304,128 Police Pension 851,928 37,487,635 793,862 10,824,633 Firefighters' Pension 2,474,489 32,549,685 2,057,971 10,079,261 5,992,956 76,674,409 8,900,395 26,003,605 Illinois Municipal Retirement Fund (IMRF) Plan Descriptions Plan Administration. All employees (other than those covered by the Police and Firefighters' Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff's Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date). IMRF provides two tiers of pension benefits. Employees hired before January 1, 2011, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement. 86 96 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Benefits Provided - Continued. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: • 3% of the original pension amount, or • 1/2 of the increase in the Consumer Price Index of the original pension amount. Plan Membership. As of December 31, 2019, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 265 Inactive Plan Members Entitled to but not yet Receiving Benefits 165 Active Plan Members 253 Total The IMRF data included in the table above includes membership of both the Village and the Library. Contributions. As set by statute, the Village's Regular Plan Members are required to contribute 4.50% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. For the year - ended December 31, 2020, the Village's and the Library's contribution was 11.11% of covered payroll. Net Pension Liability. The Village's net pension liability was measured as of December 31, 2019. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. 87 97 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed, as of December 31, 2019, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Market Actuarial Assumptions Interest Rate 7.25% Salary Increases 3.35% - 14.25% Cost of Living Adjustments 2.50% Inflation 2.50% For non -disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP -2017 (base year 2015). The IMRF specific rates were developed from the RP -2014 Blue Collar Healthy Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP -2017 (base year 2015). The IMRF specific rates were developed from the RP -2014 Disabled Retirees Mortality Table applying the same adjustments that were applied for non -disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP -2017 (base year 2015). The IMRF specific rates were developed from the RP -2014 Employee Mortality Table with adjustments to match current IMRF experience. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: 88 98 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Plan Descriptions - Continued Actuarial Assumptions - Continued. Asset Class Target Long -Term Expected Real Rate of Return Fixed Income 28.00% 3.25% Domestic Equities 37.00% 5.75% International Equities 18.00% 6.50% Real Estate 9.00% 5.20% Blended 7.00% 3.60% - 7.60% Cash and Cash Equivalents 1.00% 1.85% Discount Rate The discount rate used to measure the total pension liability was 7.25%, the same as the prior valuation. 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 Village contributions will be made at rates equal to the difference between the 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 project future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table below presents the pension liability/(asset) of the Village calculated using the discount rate as well as what the Village's net pension liability/(asset) would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Village Library 1% Decrease (6.25%) $ 15,500,264 5,325,753 Current Discount Rate (7.25%) 4,939,813 1,697,276 1% Increase (8.25%) (3,785,673) (1,300,723) Net Pension Liability/(Asset) 20,826,017 6,637,089 (5,086,396) 89 99 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Changes in the Net Pension Liability Total Pension Liability Service Cost Interest Differences Between Expected and Actual Experience Change 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 - Members Net Investment Income Benefit Payments, Including Refunds of Member Contributions Other (Net Transfer) Position Plan Net Position - Beginning Plan Net Position - Ending Village Library Totals $ 1,383,072 5,939,183 1,043,584 475,211 1,761,075 358,566 1,858,283 7,700,258 1,402,150 (4,104,163) (1,410,154) (5,514,317) 4,261,676 1,184,698 5,446,374 79,008,520 29,029,950 108,038,470 83,270,196 30,214,648 113,484,844 1,248,809 429,079 1,677,888 654,669 224,938 879,607 12,858,298 4,417,997 17,276,295 (4,104,163) (1,410,154) (5,514,317) 392,896 134,996 527,892 11,050,509 3,796,856 14,847,365 67,279,874 24,720,516 92,000,390 78,330,383 28,517,372 106,847,755 Employer's Net Pension Liability 4,939,813 1,697,276 6,637,089 90 100 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the Village recognized pension expense of $2,095,274 and the Library recognized pension expense of $571,265. At December 31, 2020, the Village reported deferred outflows or resources and deferred inflows of resources related to pensions from the following sources: Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Total Expense to be Recognized in Future Periods Contributions Sub to Measurement Date Total Deferred Amounts Related to IMRF Village Library Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Totals $ 1,943,462 — 667,756 — 2,611,218 1,064,789 (558,449) 365,852 (191,878) 680,314 — (3,237,134) — (1,112,250) (4,349,384) 3,008,251 (3,795,583) 1,033,608 (1,304,128) (1,057,852) 1,493,537 — 513,166 — 2,006,703 4,501,788 (3,795,583) 1,546,774 (1,304,128) 948,851 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Fiscal Net Deferred Outflows/(Inflows) of Resources Year Village Library Totals 2021 $ 88,290 2022 236,615 2023 479,663 2024 (1,591,900) 2025 Thereafter — 30,336 118,626 81,299 317,914 164,808 644,471 (546,963) (2,138,863) Totals (787,332) (270,520) (1,057,852) 91 101 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Police Pension Plan Plan Descriptions Plan Administration. The Police Pension Plan is a single -employer defined benefit pension plan that covers all sworn police personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The Village accounts for the Fund as a pension trust fund. The Fund is governed by a five -member pension board. Two members of the Board are appointed by the Village President, one member is elected by pension beneficiaries and two members are elected by active police employees. Plan Membership. At December 31, 2020, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits 79 Inactive Plan Members Entitled to but not yet Receiving Benefits 9 Active Plan Members 82 Total 170 Benefits Provided. The following is a summary of the Police Pension Plan as provided for in Illinois State Statutes. The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of/z of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent 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 percent of the original pension and 3 percent compounded annually thereafter. 92 102 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Plan Descriptions - Continued Benefits Provided - Continued. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 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 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Police officer salary for the pension purposes is capped at $106,800, plus the lesser of 1/2 of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., 1/Z percent for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January Ist 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 percent or '/z of the change in the Consumer Price Index for the proceeding calendar year. Contributions. Covered employees are required 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. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past service cost by the year 2040. For the year - ended December 31, 2020, the Village's contribution was 43.86% of covered payroll. Concentrations. At year end, the Pension Plan does not have any investments over 5 percent of net plan position available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). 93 103 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of December 31, 2020, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.25% Salary Increases 4.00% Adjustments Tier 1: 3.00%, Tier 2: 1.25% Inflation 2.50% Mortality rates for healthy individuals were based on the RP -2014 Mortality Table with a blue collar adjustment, with improvement scale MP -2020 applied generationally from 2013. Mortality rates for disabled individuals were based 115% of the Healthy Mortality Table with improvement scale MP -2020 applied generationally from 2013. Discount Rate The discount rate used to measure the total pension liability was 7.25%, the same as the prior valuation. 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 Village contributions will be made at rates equal to the difference between the 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 project future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. 94 104 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate as well as what the Village's net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Current I% Decrease Discount Rate 1 % Increase (6.25%) (7.25%) (8.25%) Net Pension Liability S 54,752,379 37,487,635 23,382,806 Changes in the Net Pension Liability Balances at December 31, 2019 Changes for the Year: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Liability Changes of Assumptions Contributions - Employer Contributions - Employees Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Other (Net Transfer) Net Changes Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) $ 123,323,682 78,333,544 44,990,138 1,571,647 — 1,571,647 8,826,306 — 8,826,306 (2,533,619) — (2,533,619) (485,790) — (485,790) — 3,855,754 (3,855,754) — 860,062 (860,062) — 10,224,907 (10,224,907) (6,306,360) (6,306,360) — (59,676) 59,676 1,072,184 8,574,687 (7,502,503) Balances at December 31, 2020 124,395,866 86,908,231 37,487,635 M 105 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the Village recognized pension expense of $851,928. At December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Total Deferred Amounts Related to Police Pension Deferred Deferred Outflows of Inflows of Resources Resources Totals $ — (3,925,439) (3,925,439) 793,862 (633,834) 160,028 (6,265,360) (6,265,360) 793,862 (10,824,633) (10,030,771) Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Net Deferred Fiscal (Inflows) Year of Resources 2021 $ (3,310,696) 2022 (1,555,020) 2023 (3,106,983) 2024 (1,554,838) 2025 (503,234) Thereafter — Total (10,030,771) 96 106 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan Plan Descriptions Plan Administration. The Firefighters' Pension Plan is a single -employer defined benefit pension plan that covers all sworn firefighter personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The Village accounts for the Fund as a pension trust fund. The Fund is governed by a five -member pension board. Two members of the Board are appointed by the Village President, one member is elected by pension beneficiaries and two members are elected by active fire employees. Plan Membership. At December 31, 2020, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits 90 Inactive Plan Members Entitled to but not yet Receiving Benefits 2 Active Plan Members 72 Total 164 Benefits Provided. The following is a summary of the Firefighters' Pension Plan as provided for in Illinois State Statutes. The Firefighters' Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of '/z of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent 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 firefighter 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 percent of the original pension and 3percent compounded annually thereafter. 97 107 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan - Continued Plan Descriptions - Continued Benefits Provided - Continued. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 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 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Firefighters' salary for the pension purposes is capped at $106,800, plus the lesser of/z of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., '/2 percent for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January lit 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 percent of '/z of the change in the Consumer Price Index for the proceeding 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 contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past service cost by the year 2040. For the year -ended December 31, 2020, the Village's contribution was 43.55% of covered payroll. Concentrations. At year end, the Pension Plan does not have any investments over 5 percent of net plan position available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). 98 108 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan - Continued Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of December 31, 2020, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.25% Salary Increases 4.00% Cost of Living Adjustments Tier 1: 3.00%, Tier 2: 1.25% Inflation 2.50% Mortality rates for healthy individuals were based on the RP -2014 Mortality Table with a blue collar adjustment, with improvement scale MP -2020 applied generationally from 2013. Mortality rates for disabled individuals were based 115% of the Healthy Mortality Table with improvement scale MP -2020 applied generationally from 2013. Discount Rate The discount rate used to measure the total pension liability was 7.25%, the same as the prior valuation. 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 Village contributions will be made at rates equal to the difference between the 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 project future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. 99 109 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan - Continued Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate as well as what the Village's net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Net Pension Liability Changes in the Net Pension Liability Balances at December 31, 2019 Current I% Decrease Discount Rate 1 % Increase (6.25%) (7.25%) (8.25%) $ 46,985,889 32,549,685 20,655,174 Changes for the Year: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Liability Changes of Assumptions Contributions - Employer Contributions - Employees Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Other (Net Transfer) Net Changes Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) $ 109,688,029 71,227,941 38,460,088 1,581,259 — 1,581,259 7,829,880 — 7,829,880 970,396 — 970,396 (518,533) — (518,533) — 3,494,838 (3,494,838) — 758,838 (758,838) — 11,556,727 (11,556,727) (6,541,877) (6,541,877) — (36,998) 36,998 3,321,125 9,231,528 (5,910,403) Balances at December 31, 2020 113,009,154 80,459,469 32,549,685 100 110 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Firefighters' Pension Plan - Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the Village recognized pension expense of $2,474,489. At December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Difference Between Expected and Actual Experience Change in Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Total Deferred Amounts Related to Firefighters' Pension Deferred Deferred Outflows of Inflows of Resources Resources Totals $ 1,481,836 (1,715,145) (233,309) 576,135 (908,539) (332,404) — (7,455,577) (7,455,577) 2,057,971 (10,079,261) (8,021,290) Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Net Deferred Outflows/ Fiscal (Inflows) Year of Resources 2021 $ (2,502,493) 2022 (1,473,642) 2023 (2,646,824) 2024 (1,473,639) 2025 75,308 Thereafter — Total (8,021,290) VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS General Information about the OPEB Plan Plan Description. The Village's defined benefit OPEB plan, Village of Mount Prospect Retiree Benefit Plan (RBP), provides OPEB for all permanent full-time general and public safety employees of the Village. RBP is a single -employer defined benefit OPEB plan administered by the Village. Article 11 of the State Compiled Statutes grants the authority to establish and amend the benefit terms and financing requirements to the Village Board. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits Provided. RBP provides pre and post -Medicare postretirement health insurance to retirees, their spouses, and dependents (enrolled at time of employee's retirement). Plan Membership. As of December 31, 2020, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 82 Inactive Plan Members Entitled to but not yet Receiving Benefits — Active Plan Members 296 Total 378 The plan membership as noted above includes both the Village and the Library members. Total OPEB Liability The Village's total OPEB liability was measured as of December 31, 2020, and was determined by an actuarial valuation as of that date. Actuarial assumptions and other inputs. The total OPEB liability in the December 31, 2020 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: 102 112 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS - Continued Total OPEB Liability - Continued Actuarial assumptions and other inputs - Continued. Inflation 2.50% Salary Increases 3.50% Discount Rate 2.12% Healthcare Cost Trend Rates 8.0% decreasing to an ultimate rate of 4.50% Retirees' Share of Benefit -Related Costs 100% of projected health insurance premiums for retirees The discount rate was based on the S&P Municipal Bond 20 Year High -Grade Rate Index for tax exempt general obligation municipal bonds rated AA or better as of December 31, 2019. Mortality rates were based on the RPH-2018 Blue Collar Mortality Table fully generational usning scale MP -2018. Change in the Total OPEB Liability Total OPEB Liability Balance at December 31, 2019 $ 12,178,323 Changes for the Year: Service Cost 560,011 Interest on the Total OPEB Liability 407,957 Changes of Benefit Terms — Difference Between Expected and Actual Experience (1,053,887) Changes of Assumptions or Other Inputs 3,217,155 Benefit Payments (452,279) Net Changes 2,678,957 Balance at December 31, 2020 14,857,280 103 113 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS - Continued Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability, calculated using a Single Discount Rate of 2.12%, as well as what the total OPEB liability would be if it were calculated using a Single Discount Rate that is one percentage point lower or one percentage point higher: Current 1% Decrease Discount Rate 1% Increase (1.12%) (2.12%) (3.12%) Total OPEB Liability $ 17,352,884 14,857,280 12,854,547 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability, calculated using a variable Healthcare Trend Rate, as well as what the total OPEB liability would be if it were calculated using a Healthcare Trend Rate that is one percentage point lower or one percentage point higher: Healthcare Cost Trend 1% Decrease Rates 1% Increase (Varies) (Varies) (Varies) Total OPEB Liability $ 12,444,603 14,857,280 18,022,530 104 114 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2020 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS - Continued OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2020, the Village recognized OPEB expense of $979,260. At December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Totals Difference Between Expected and Actual Experience $ — (2,117,871) (2,117,871) Change in Assumptions 3,891,474 (1,136,667) 2,754,807 Net Difference Between Projected and Actual Earnings Total Deferred Amounts Related to OPEB 3,891,474 (3,254,538) 636,936 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year 2021 2022 2023 2024 2025 Thereafter Net Deferred Outflows of Resources 11,293 11,293 11,293 11,293 11,293 580,471 Totals 636,936 105 115 REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information includes financial information and disclosures that are required by the GASB but are not considered a part of the basic financial statements. Such information includes: • Schedule Employer Contributions Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund • Schedule of Changes in the Employer's Net Pension Liability Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund • Schedule of Investment Returns Police Pension Fund Firefighters' Pension Fund • Schedule of Changes in the Employer's Total OPEB Liability Retiree Benefit Plan • Budgetary Comparison Schedules General Fund Prospect/Main TIF - Special Revenue Fund Notes to the Required Supplementary Information Budgetary information - Budgets are adopted on a basis consistent with generally accepted accounting principles. 106 116 VILLAGE OF MOUNT PROSPECT, ILLINOIS Illinois Municipal Retirement Fund Schedule of Employer Contributions December 31, 2020 Contributions Totals in Relation to 1,863,012 $ Actuarially the Actuarially Contribution Contributions as Fiscal Determined Determined Excess/ Covered a Percentage of Year Contribution Contribution (Deficiency) Payroll Covered Payroll 2015 Totals $ 1,863,012 $ 1,863,012 $ — $ 16,256,645 11.46% 2016 Totals 1,968,206 2,031,571 63,365 16,567,389 12.26% 2017 Totals 1,900,189 1,941,668 41,479 16,965,974 11.44% 2018 Totals 1,930,380 2,032,727 102,347 17,940,334 11.33% 2019 Totals 1,600,357 1,677,888 77,531 18,248,083 9.19% 2020 Village 1,493,537 1,493,537 — 13,440,154 11.11% Library 513,166 513,166 — 4,617,920 11.11 % Totals 2,006,703 2,006,703 — 18,058,074 11.11% Notes to the Required Supplementary Information: Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return Retirement Age Mortality Entry Age Normal Level % Pay (Closed) 24 Years 5 -Year Smoothed Fair Value 2.50% 3.35% - 14.25% 7.50% See the Notes to the Financial Statements IMRF specific mortality table was used with fully generational projection scale MP -2017 (base year 2015). Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 107 117 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Employer Contributions December 31, 2020 Contributions $ 2,467,527 in Relation to 37,174 Actuarially the Actuarially Contribution Contributions as Fiscal Determined Determined Excess/ Covered a Percentage of Year Contribution Contribution (Deficiency) Payroll Covered Payroll 2011 $ 2,467,527 $ 2,504,701 S 37,174 $ 7,591,498 32.99% 2012 2,484,859 2,511,349 26,490 7,871,917 31.90% 2013 2,631,811 2,631,038 (773) 8,121,622 32.40% 2014 2,922,979 2,924,226 1,247 7,848,795 37.26% 2015 2,909,868 2,918,395 8,527 8,049,995 36.25% 2016 3,204,363 3,232,887 28,524 8,276,985 39.06% 2017 3,817,579 3,747,825 (69,754) 8,354,290 44.86% 2018 3,601,216 3,608,602 7,386 8,526,976 42.32% 2019 3,607,934 3,582,409 (25,525) 8,505,172 42.12% 2020 3,864,556 3,855,754 (8,802) 8,791,984 43.86% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 21 Years Asset Valuation Method 5 -Year Smoothed Fair Value Inflation 2.50% Salary Increases 4.00% Investment Rate of Return 7.25% Retirement Age See the Notes to the Financial Statements Mortality RP 2014 Mortality Table with a Blue Collar Adjustment, with improvement Scale MP -2019 applied generationally from 2013 108 118 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Employer Contributions December 31, 2020 Contributions $ 2,140,664 in Relation to 15,311 Actuarially the Actuarially Contribution Contributions as Fiscal Determined Determined Excess/ Covered a Percentage of Year Contribution Contribution (Deficiency) Payroll Covered Payroll 2011 $ 2,140,664 $ 2,155,975 $ 15,311 $ 6,201,120 34.77% 2012 2,224,122 2,260,834 36,712 6,150,974 36.76% 2013 2,323,609 2,371,347 47,738 6,436,911 36.84% 2014 2,468,554 2,466,165 (2,389) 6,495,510 37.97% 2015 2,526,101 2,532,316 6,215 6,441,588 39.31% 2016 2,589,599 2,806,983 217,384 6,981,704 40.20% 2017 3,206,186 3,396,834 190,648 7,284,199 46.63% 2018 3,320,940 3,332,773 11,833 7,519,070 44.32% 2019 3,375,839 3,363,390 (12,449) 7,854,176 42.82% 2020 3,488,379 3,494,838 6,459 8,024,566 43.55% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 21 Years Asset Valuation Method 5 -Year Smoothed Fair Value Inflation 2.50% Salary Increases 4.00% Investment Rate of Return 7.25% Retirement Age See the Notes to the Financial Statements Mortality RP -2014 Mortality Table with a blue collar adjustment, with improvement scale MP -2019 applied generationally from 2013 109 119 VILLAGE OF MOUNT PROSPECT, ILLINOIS Illinois Municipal Retirement Fund Schedule of Changes in the Employer's Net Pension Liability December 31, 2020 Total Pension Liability - Ending 88,324,160 Plan Fiduciary Net Position 12/31/2014 Contributions - Employer Total Total Pension Liability 757,565 Service Cost $ 1,830,586 Interest 5,880,604 Changes in Benefit Terms — Differences Between Expected and Actual Experience 1,583,453 Change of Assumptions 3,126,293 Benefit Payments, Including Refunds 76,759,094 of Member Contributions (3,179,063) Net Change in Total Pension Liability 9,241,873 Total Pension Liability - Beginning 79,082,287 Total Pension Liability - Ending 88,324,160 Plan Fiduciary Net Position Contributions - Employer $ 1,908,296 Contributions - Members 757,565 Net Investment Income 4,666,652 Benefit Payments, Including Refunds of Member Contributions (3,179,063) Other (Net Transfer) 284,199 Net Change in Plan Fiduciary Net Position 4,437,649 Plan Net Position - Beginning 76,759,094 Plan Net Position - Ending 81,196,743 Employer's Net Pension Liability $ 7,127,417 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 91.93% Covered Payroll $ 16,258,793 Employer's Net Pension Liability as a Percentage of Covered Payroll 43.84% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 110 120 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Total Total Total Total Village Library Totals 1,810,785 1,768,746 1,811,298 1,690,492 1,383,072 475,211 1,858,283 6,548,331 6,803,558 7,087,425 7,223,810 5,939,183 1,761,075 7,700,258 (1,203,005) (756,505) 570,864 3,043,104 1,043,584 358,566 1,402,150 113,021 (232,520) (3,034,659) 3,019,891 (3,603,793) (3,834,437) (4,289,989) (4,822,107) (4,104,163) (1,410,154) (5,514,317) 3,665,339 88,324,160 3,748,842 91,989,499 2,144,939 95,738,341 10,155,190 97,883,280 4,261,676 79,008,520 1,184,698 29,029,950 5,446,374 108,038,470 91,989,499 95,738,341 97,883,280 108,038,470 83,270,196 30,214,648 113,484,844 1,863,011 2,031,571 1,941,668 2,032,727 1,248,809 429,079 1,677,888 731,552 745,535 766,547 1,104,133 654,669 224,938 879,607 403,461 5,536,369 14,755,335 (5,230,039) 12,858,298 4,417,997 17,276,295 (3,603,793) (3,834,437) (4,289,989) (4,822,107) (4,104,163) (1,410,154) (5,514,317) (348,936) 403,724 (1,351,715) 1,969,030 392,896 134,996 527,892 (954,705) 4,882,762 11,821,846 (4,946,256) 11,050,509 3,796,856 14,847,365 81,196,743 80,242,038 85,124,800 96,946,646 67,279,874 24,720,516 92,000,390 80,242,038 85,124,800 96,946,646 92,000,390 78,330,383 28,517,372 106,847,755 11,747,461 10,613,541 936,634 16,038,080 4,939,813 1,697,276 6,637,089 87.23% 88.91% 16,256,645 16,567,389 72.26% 64.06% 99.04% 16,965,974 5.52% 85.16% 17,940,334 89.40% 111 94.07% 94.38% 94.15% 13,581,575 4,666,508 18,248,083 36.37% 36.37% 36.37% 121 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Changes in the Employer's Net Pension Liability December 31, 2020 Total Pension Liability - Ending 98,409,322 Plan Fiduciary Net Position 12/31/2014 Total Pension Liability $ 2,924,226 Service Cost $ 1,890,407 Interest 6,479,504 Changes in Benefit Terms — Differences Between Expected and Actual Experience 860,183 Change of Assumptions 4,844,398 Benefit Payments, Including Refunds 3,443,949 of Member Contributions (4,117,120) Net Change in Total Pension Liability 9,957,372 Total Pension Liability - Beginning 88,451,950 Total Pension Liability - Ending 98,409,322 Plan Fiduciary Net Position Contributions - Employer $ 2,924,226 Contributions - Members 851,363 Net Investment Income 3,845,862 Benefit Payments, Including Refunds of Member Contributions (4,117,120) Administrative Expenses (60,382) Net Change in Plan Fiduciary Net Position 3,443,949 Plan Net Position - Beginning 55,375,976 Plan Net Position - Ending 58,819,925 Employer's Net Pension Liability $ 39,589,397 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 59.77% Covered Payroll $ 7,848,795 Employer's Net Pension Liability as a Percentage of Covered Payroll 504.40% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 112 122 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 1,777,310 1,732,924 1,557,284 1,575,461 1,576,407 1,571,647 7,210,826 8,221,483 7,951,856 8,195,228 8,574,834 8,826,306 - - - - 202,152 - 95,650 (5,201,074) (1,650,048) (208,550) (439,430) (2,533,619) 7,268,193 29,971 385,618 1,320,658 (343,513) (485,790) (4,529,962) (4,688,978) (4,404,364) (5,407,697) (5,887,879) (6,306,360) 11,822,017 94,326 3,840,346 5,475,100 3,682,571 1,072,184 98,409,322 110,231,339 110,325,665 114,166,011 119,641,111 123,323,682 110,231,339 110,325,665 114,166,011 119,641,111 123,323,682 124,395,866 2,918,395 3,232,887 3,747,825 3,608,602 3,582,499 3,855,754 795,827 815,684 830,240 838,893 860,265 860,062 545,802 4,161,658 8,967,014 (3,697,156) 13,440,246 10,224,907 (4,529,962) (4,688,978) (4,404,364) (5,407,697) (5,887,879) (6,306,360) (49,947) (44,605) (48,339) (37,596) (35,695) (59,676) (319,885) 3,476,646 9,092,376 (4,694,954) 11,959,436 8,574,687 58,819,925 58,500,040 61,976,686 71,069,062 66,374,108 78,333,544 58,500,040 61,976,686 71,069,062 66,374,108 78,333,544 86,908,231 51,731,299 48,348,979 43,096,949 53,267,003 44,990,138 37,487,635 53.07% 56.18% 62.25% 55.48% 63.52% 69.86% 8,049,995 8,276,985 8,354,290 8,526,976 8,505,172 8,791,984 642.63% 584.14% 515.87% 624.69% 528.97% 426.38% 113 123 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Changes in the Employer's Net Pension Liability December 31, 2020 Total Pension Liability - Ending 85,904,197 Plan Fiduciary Net Position 12/31/2014 Total Pension Liability $ 2,466,165 Service Cost $ 1,673,836 Interest 5,780,241 Changes in Benefit Terms — Differences Between Expected and Actual Experience 225,575 Change of Assumptions 3,234,155 Benefit Payments, Including Refunds 2,851,924 of Member Contributions (4,158,988) Net Change in Total Pension Liability 6,754,819 Total Pension Liability - Beginning 79,149,378 Total Pension Liability - Ending 85,904,197 Plan Fiduciary Net Position Contributions - Employer $ 2,466,165 Contributions - Members 644,384 Net Investment Income 3,963,252 Benefit Payments, Including Refunds of Member Contributions (4,158,988) Administrative Expenses (62,889) Net Change in Plan Fiduciary Net Position 2,851,924 Plan Net Position - Beginning 53,716,415 Plan Net Position - Ending 56,568,339 Employer's Net Pension Liability $ 29,335,858 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 65.85% Covered Payroll $ 6,495,510 Employer's Net Pension Liability as a Percentage of Covered Payroll 451.63% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 114 124 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 1,515,101 1,429,810 1,426,033 1,427,248 1,479,272 1,581,259 6,270,507 7,296,444 7,228,968 7,510,621 7,617,301 7,829,880 - - - - 403,544 - 1,603,162 (1,491,027) 1,470,077 (2,255,993) 64,710 970,396 7,648,623 396,832 (572,774) 809,820 (346,430) (518,533) (4,594,876) (4,981,207) (5,427,385) (5,909,909) (6,234,640) (6,541,877) 12,442,517 2,650,852 4,124,919 1,581,787 2,983,757 3,321,125 85,904,197 98,346,714 100,997,566 105,122,485 106,704,272 109,688,029 98,346,714 100,997,566 105,122,485 106,704,272 109,688,029 113,009,154 2,532,317 2,806,983 3,396,834 3,332,773 3,363,390 3,494,838 606,932 668,070 678,476 688,000 793,037 758,838 1,806,126 3,049,538 9,323,369 (1,914,014) 10,947,884 11,556,727 (4,594,876) (4,981,207) (5,427,385) (5,909,909) (6,234,640) (6,541,877) (62,136) (55,257) (50,783) (63,660) (40,260) (36,998) 288,363 1,488,127 7,920,511 (3,866,810) 8,829,411 9,231,528 56,568,339 56,856,702 58,344,829 66,265,340 62,398,530 71,227,941 56,856,702 58,344,829 66,265,340 62,398,530 71,227,941 80,459,469 41,490,012 42,652,737 38,857,145 44,305,742 38,460,088 32,549,685 57.81% 57.77% 63.04% 58.48% 64.94% 6,441,588 6,981,704 7,284,199 7,519,070 7,854,176 644.10% 610.92% 533.44% 589.24% 489.68% 71.20% 8,024,566 405.63% 115 125 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Investment Returns December 31, 2020 Annual Money - Weighted Rate of Return, Net Fiscal of Investment Year Expense 2014 6.92% 2015 0.92% 2016 7.15% 2017 14.29% 2018 (5.21°/x) 2019 20.29% 2020 13.20% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 116 126 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Investment Returns December 31, 2020 Annual Money - Weighted Rate of Return, Net Fiscal of Investment Year Expense 2014 7.60% 2015 3.38% 2016 5.58% 2017 16.49% 2018 (2.80°/x) 2019 16.52% 2020 16.49% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 117 127 VILLAGE OF MOUNT PROSPECT, ILLINOIS Retiree Benefit Plan Schedule of Changes in the Employer's Total OPEB Liability December 31, 2020 Total OPEB Liability Service Cost Interest Changes in Benefit Terms Differences Between Expected and Actual Experience Change of Assumptions or Other Inputs Benefit Payments Net Change in Total OPEB Liability Total OPEB Liability - Beginning Total OPEB Liability - Ending Covered Payroll Total OPEB Liability as a Percentage of Covered Payroll 12/31/2018 12/31/2019 12/31/2020 $ 523,084 457,933 560,011 463,660 457,768 407,957 (1,152,702) (530,505) (1,053,887) (1,704,999) 1,326,575 3,217,155 (387,384) (422,580) (452,279) (2,258,341) 1,289,191 2,678,957 13,147,473 10,889,132 12,178,323 10,889,132 12,178,323 14,857,280 $ 26,110,072 26,958,649 27,836,531 41.70% 45.17% 53.37% Notes: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2018, 2019 and 2020. 118 128 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Revenues Taxes $ 23,527,609 23,527,609 22,560,551 Licenses and Permits 2,291,080 2,291,080 2,402,150 Intergovernmental 30,200,250 30,200,250 30,799,463 Charges for Services 1,667,200 1,667,200 2,320,837 Fines and Forfeitures 355,050 355,050 242,004 Interest 266,000 266,000 99,326 Miscellaneous 355,737 355,737 316,585 Total Revenues 58,662,926 58,662,926 58,740,916 Expenditures General Government 7,287,703 7,776,416 6,897,411 Public Safety 38,008,699 38,150,563 37,297,450 Highways and Streets 9,810,351 9,448,438 8,705,967 Health 144,940 144,209 132,833 Welfare 1,522,473 1,516,801 1,446,675 Culture and Recreation 568,459 568,459 166,740 Total Expenditures 57,342,625 57,604,886 54,647,076 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,320,301 1,058,040 4,093,840 Other Financing Sources (Uses) Disposal of Capital Assets Transfers Out Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending 3,500 3,500 383 (4,768,000) (4,598,000) (4,598,000) (4,764,500) (4,594,500) (4,597,617) (3,444,199) (3,536,460) (503,777) 26,678,148 26,174,371 119 129 VILLAGE OF MOUNT PROSPECT, ILLINOIS Prospect and Main TIF - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Revenues Taxes Property Taxes Interest Miscellaneous Total Revenues Expenditures General Government Other Employee Costs Contractual Services Commodities and Supplies Capital Outlay Infrastructure Building Improvements Land Improvements Land Acquisition Other Debt Service Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 738,000 738,000 944,024 15,500 15,500 20,108 21,700 753,500 753,500 985,832 1,500 1,500 600 233,636 233,636 110,114 1,500 1,500 — 1,035,990 325,000 10,596 — 6,688,082 6,568,902 — 314,096 191,592 — 1,300,000 1,301,591 458,500 1,545,000 1,195,079 787,447 787,447 703,411 2,518,573 11,196,261 10,081,885 (1,765,073) (10,442,76 (9,096,053) 590,000 590,000 (1,765,073) (9,852,761) (8,506,053) 8,532,044 25,991 120 130 OTHER SUPPLEMENTARY INFORMATION Other supplementary information includes financial statements and schedules not required by the GASB, nor a part of the basic financial statements, but are presented for purposes of additional analysis. Such statements and schedules include: • Budgetary Comparison Schedules - Major Governmental Funds • Combining Statements - Nonmajor Governmental Funds • Budgetary Comparison Schedules - Nonmajor Governmental Funds • Budgetary Comparison Schedules - Enterprise Funds • Combining Statements - Internal Service Funds • Budgetary Comparison Schedules - Internal Service Funds • Combining Statements - Pension Trust Funds • Consolidated Year -End Financial Report 121 131 GOVERNMENTAL FUNDS 122 132 MAJOR GOVERNMENTAL FUNDS GENERAL FUND General Fund: The General Fund is used to account for all financial resources except those required to be accounted for in another fund. SPECIAL REVENUE FUND Prospect and Main TIF Fund: The Prospect/Main TIF Fund is used to account for the resources to acquire property and construct certain improvements in the Prospect/Main Tax Incremental Financing District. Financing is being provided by incremental property taxes, general obligation bond proceeds, and investment income. DEBT SERVICE FUND Debt Service Fund: The Debt Service Fund is used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. CAPITAL PROJECTS FUND Police and Fire Building Construction Fund: The Police and Fire Building Construction Fund is used to account for the resources to construct the police and fire building. 123 133 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2020 Taxes Property Taxes - General Property Taxes - Police Pension Property Taxes - Firefighters' Pension Road and Bridge Property Tax Auto Rental Tax Food and Beverage Tax Real Estate Transfer Tax Hotel/Motel Tax Telecommunications Tax Home Rule Sales Tax Gas Utility Tax Electric Utility Tax Total Taxes Licenses and Permits Liquor Licenses Business Licenses Contractor Licenses Alarm Licenses Elevator Licenses Building Permit Fees Reinspection Fees Gaming License Fees Vacant Structure Registration Fees Truck Rental Fees Utility Permit Fees ZBA Hearing Fees Village Impact Fees False Alarm Fees Landlord/Tenant Fees Cable TV Franchise Fees Total Licenses and Permits 124 Budget Original Final Actual S 9,396,074 9,396,074 9,269,838 3,767,056 3,767,056 3,739,754 3,375,879 3,375,879 3,358,038 130,100 130,100 134,186 16,500 16,500 23,823 856,000 856,000 818,911 1,125,000 1,125,000 962,687 265,000 265,000 60,705 1,535,000 1,535,000 1,439,154 1,389,000 1,389,000 1,167,399 522,000 522,000 495,114 1,150,000 1,150,000 1,090,942 23,527,609 23,527,609 22,560,551 202,000 202,000 125,013 149,000 149,000 148,629 94,900 94,900 123,600 48,000 48,000 46,655 27,000 27,000 25,132 575,000 575,000 701,011 16,500 16,500 6,250 57,400 57,400 49,275 5,000 5,000 4,500 2,000 2,000 11,990 5,000 5,000 8,900 12,000 12,000 15,800 20,000 20,000 113,037 7,500 7,500 6,740 297,500 297,500 291,462 772,280 772,280 724,156 2,291,080 2,291,080 2,402,150 134 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Intergovernmental State Sales Tax State Income Tax State Use Tax Charitable Games Tax Cannabis Education Fund Replacement Taxes Replacement Taxes - Road and Bridge Grant - Body Armor Grant - Gas Mask Grant - Other Total Intergovernmental Charges for Services Maintenance of State Highways Ambulance Transport Fees Forest River Rural FPD Cable Programming Fees Other Programs Special Detail Revenue Police Training Revenue Fire Training Revenue Lease Payments - Cell Towers General Store Lease Total Charges for Services Fines and Forfeitures Fines - Parking Fines - Local Ordinances Fines - Code Enforcement Fines - Circuit Court Fines - Parental Responsibility Forfeited Escrow Funds Total Fines and Forfeitures Budget Original Final Actual $ 23,075,300 23,075,300 21,526,123 5,250,000 5,250,000 5,886,270 1,498,750 1,498,750 2,254,976 7,000 7,000 3,340 35,600 35,600 37,425 360,000 360,000 404,003 6,200 6,200 7,863 3,000 3,000 5,384 95,000 95,000 52,260 19,600 19,600 621,819 30,200,250 30,200,250 30,799,463 98,000 98,000 54,502 1,275,000 1,275,000 1,942,064 52,000 52,000 54,400 27,000 27,000 7,497 35,600 35,600 36,110 45,000 45,000 72,868 5,000 5,000 300 15,000 15,000 10,754 95,000 95,000 137,616 19,600 19,600 4,726 1,667,200 1,667,200 2,320,837 210,000 210,000 91,254 1,000 1,000 6,300 5,000 5,000 10,513 103,000 103,000 85,762 1,050 1,050 300 35,000 35,000 47,875 355,050 355,050 242,004 125 135 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Interest Investment Income Interest - Escrow Funds Total Interest Miscellaneous Reimburse - H/S Youth Officer Reimburse - Mount Prospect Library Shared Cost - Sidewalk Shared Cost - Tree Replacement Reimburse - Village Property Other Reimbursements Human Services Revenue Fire and Police Reports Animal Release Fees Subpoena Fees Other Revenue Total Miscellaneous Total Revenues Budget Original Final Actual $ 255,000 255,000 95,796 11,000 11,000 3,530 266,000 266,000 99,326 213,637 213,637 102,553 21,000 21,000 28,613 7,500 7,500 19,125 5,000 5,000 - 5,000 5,000 - 25,000 25,000 120,606 12,000 12,000 1,648 5,000 5,000 4,985 200 200 175 400 400 105 61,000 61,000 38,775 355,737 355,737 316,585 58,662,926 58,662,926 58,740,916 126 136 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2020 General Government Public Representation - Administration Village Administration Finance Department Community Development - Administration Benefit Payments Total General Government Public Safety Community Development - Code Enforcement Police Department Fire Department Total Public Safety Highways and Streets Public Works Department Health Community Development - Health Welfare Human Services Department Community Development - Housing Total Welfare Culture and Recreation Public Representation - Community and Civic Services Total Expenditures Budget Original Final Actual $ 160,009 159,551 120,925 4,115,378 4,216,046 3,498,838 1,667,927 1,665,927 1,548,016 1,338,215 1,728,718 1,723,459 6,174 6,174 6,173 7,287,703 7,776,416 6,897,411 1,152,868 1,150,648 1,062,597 19,867,439 19,899,737 19,137,940 16,988,392 17,100,178 17,096,913 38,008,699 38,150,563 37,297,450 9,810,351 9,448,438 8,705,967 144,940 144,209 132,833 1,198,882 1,193,859 1,157,029 323,591 322,942 289,646 1,522,473 1,516,801 1,446,675 568,459 568,459 166,740 57,342,625 57,604,886 54,647,076 127 137 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2020 General Government Public Representation - Administration Mayor and Board of Trustees Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Mayor and Board of Trustees Village Administration Village Manager's Office Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Village Manager's Office Legal Services Contractual Services Human Resources Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Human Resources Budget Original Final Actual $ 25,006 25,006 25,000 1,917 1,917 1,912 7,000 7,000 310 120,428 120,428 90,116 458 4,000 - 5,200 5,200 3,587 160,009 159,551 120,925 574,337 574,337 565,639 227,418 227,418 214,301 28,086 28,086 12,734 72,529 72,529 11,068 4,805 4,000 3,653 7,579 7,579 2,545 235 235 - 22,961 22,961 22,961 937,950 937,145 832,901 634,500 634,500 450,618 204,280 204,280 210,244 204,895 204,895 237,915 65,200 65,200 39,855 9,250 9,250 7,489 1,300 1,300 761 484,925 484,925 496,264 128 138 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual General Government - Continued 91,043 91,043 90,590 Village Administration - Continued 47,286 47,286 48,324 Information Technology 3,100 3,100 224 Personal Services $ 492,429 492,429 495,546 Employee Benefits 184,569 184,569 214,392 Other Employee Costs 9,200 9,200 1,636 Contractual Services 608,223 617,223 337,871 Utilities 5,765 100,416 42,588 Commodities and Supplies 1,000 1,000 665 Office and Other Equipment 16,000 16,000 16,547 Total Information Technology 1,317,186 1,420,837 1,109,245 Communications Personal Services 91,043 91,043 90,590 Employee Benefits 47,286 47,286 48,324 Other Employee Costs 3,100 3,100 224 Contractual Services 82,200 82,200 76,577 Commodities and Supplies 1,800 1,800 - Office and Other Equipment 25,000 Total Communications 225,429 225,429 215,715 Television Services Personal Services 73,731 73,731 64,616 Employee Benefits 31,565 31,565 30,187 Contractual Services 36,083 36,083 21,751 Utilities 1,678 1,000 10 Commodities and Supplies 4,500 4,500 1,591 Office and Other Equipment 25,000 25,000 10,265 Total Television Services 172,557 170,879 128,410 Community Engagement Other Employee Costs 5,000 5,000 1,385 Contractual Services 143,000 143,000 95,015 Utilities 920 920 1,195 Commodities and Supplies 1,000 1,000 10 Total Community Engagement 149,920 149,920 97,605 129 139 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 General Government - Continued Village Administration - Continued 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 Total Village Administration Finance Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Accounting Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Accounting Insurance Budget Original Final Actual $ 104,093 104,093 103,245 51,876 51,876 47,777 2,800 2,800 413 32,622 32,622 15,937 500 2,500 1,699 1,020 1,020 708 192,911 192,411 168,080 4,115,378 4,216,046 3,498,838 204,279 204,279 203,221 78,201 78,201 92,223 29,400 29,400 6,025 215,974 215,974 196,908 4,500 2,500 1,699 18,150 18,150 4,099 88,742 15,152 15,152 15,152 565,656 563,656 608,069 426,651 426,651 359,310 177,924 177,924 144,857 2,220 2,220 1,219 3,225 3,225 947 11,812 11,812 3,271 621,832 621,832 509,604 25,443 25,443 22,433 130 140 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 General Government - Continued Finance Department - Continued Customer Service Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Customer Service Total Finance Department Community Development - Administration Administration and Support - Economic Development Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Insurance Budget Original Final Actual $ 285,224 285,224 250,728 81,652 81,652 87,724 2,345 2,345 - 70,010 70,010 57,199 15,765 15,765 12,259 454,996 454,996 407,910 1,667,927 1,665,927 1,548,016 135,688 127,488 128,730 48,699 48,699 49,036 6,343 6,343 2,470 28,091 73,091 58,663 2,372 1,452 2,743 1,149 1,149 79 6,734 6,734 6,734 Total Administration and Support - Economic Development 229,076 264,956 248,455 Planning and Zoning Personal Services 248,499 211,599 206,955 Employee Benefits 79,605 79,605 71,571 Other Employee Costs 8,223 8,223 3,712 Contractual Services 31,442 31,442 15,638 Utilities 1,377 Commodities and Supplies 16,649 16,649 1,701 Total Planning and Zoning 385,795 347,518 299,577 131 141 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 General Government - Continued Community Development - Administration Personal Services Employee Benefits Other Employee Costs Contractual Services Total Community Development - Administration Administration and Support - Building and Inspections Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Insurance Total Administration and Support - Building and Inspections Total Community Development - Administration Benefit Payments Contractual Services Total General Government Public Safety Community Development - Code Enforcement Building Inspection Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Community Development - Code Enforcement Budget Original Final Actual $ 132,976 96,076 97,918 52,965 52,965 42,461 1,723 1,723 990 100,000 532,000 619,856 287,664 682,764 761,225 259,094 259,094 261,155 110,215 110,215 110,049 3,037 3,037 1,179 29,000 29,000 19,567 9,841 7,641 - 3,288 3,288 1,047 21,205 21,205 21,205 435,680 433,480 414,202 1,338,215 1,728,718 1,723,459 6,174 6,174 6,173 7,287,703 7,776,416 6,897,411 676,059 676,059 678,239 335,628 335,628 327,248 4,872 4,872 2,859 117,749 117,749 38,473 9,861 7,641 8,655 8,699 8,699 7,123 1,152,868 1,150,648 1,062,597 132 142 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Public Safety - Continued Police Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Records Personal Services Employee Benefits Contractual Services Commodities and Supplies Office and Other Equipment Total Records Patrol and Traffic Enforcement Personal Services Employee Benefits Contractual Services Commodities and Supplies Office and Other Equipment Total Patrol and Traffic Enforcement K-9 Unit Personal Services Employee Benefits Contractual Services Commodities and Supplies Total K-9 Unit Budget Original Final Actual $ 778,534 778,534 875,787 4,241,038 4,241,038 4,216,822 180,485 180,485 70,221 134,386 286,886 140,512 35,822 17,960 23,047 29,475 29,475 22,023 28,180 43,180 34,510 170,524 170,524 170,524 5,598,444 5,748,082 5,553,446 372,913 372,913 373,657 179,458 179,458 190,344 36,216 36,216 19,620 5,320 5,320 4,010 520 520 395 594,427 594,427 588,026 8,057,678 8,057,678 7,855,504 1,486,812 1,486,812 1,369,504 767,261 597,261 488,282 111,660 111,760 94,685 10,660 10,660 3,330 10,434,071 10,264,171 9,811,305 128,335 128,335 131,427 20,882 20,882 27,652 5,620 5,620 1,758 5,020 5,020 4,066 159,857 159,857 164,903 133 143 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Public Safety - Continued Police Department - Continued 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 Field Operations Commodities and Supplies Total Police Department Budget Original Final Actual $ 143,754 143,754 137,390 35,956 35,956 38,251 5,500 5,500 800 1,775 1,775 1,316 16,970 16,970 14,216 203,955 203,955 191,973 1,522,063 1,522,063 1,507,377 275,629 275,629 257,353 39,486 39,486 20,333 14,485 14,485 9,427 4,645 4,645 2,139 840 840 674 1,857,148 1,857,148 1,797,303 967,862 965,862 932,536 34,375 34,375 31,885 17,300 19,300 14,303 1,019,537 1,019,537 978,724 52,560 52,260 19,867,439 19,899,737 19,137,940 134 144 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Public Safety - Continued Fire Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Fire Department Operations Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Office and Other Equipment Total Fire Department Operations Fire Prevention Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Fire Prevention Communications Contractual Services Utilities Commodities and Supplies Office and Other Equipment Total Communications Budget Original Final Actual $ 709,962 709,962 713,978 3,891,147 3,891,147 3,992,400 52,594 52,594 40,139 94,157 71,917 97,408 14,310 12,510 6,745 51,000 5,000 1,553 211,619 211,619 211,619 4,978,789 4,954,749 5,063,842 8,191,623 8,191,623 8,243,478 1,464,010 1,464,010 1,551,625 96,913 96,913 48,828 213,013 305,013 274,598 22,810 22,810 19,101 146,133 139,965 131,681 10,134,502 10,220,334 10,269,311 291,661 291,661 253,065 1311,264 131,264 99,636 6,020 6,920 4,253 3,530 3,530 2,897 19,310 18,410 16,211 451,785 451,785 376,062 3,800 3,800 795 67,858 20,000 16,093 1,600 1,600 196 24,000 24,000 21,827 97,258 49,400 38,911 135 145 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Public Safety - Continued Fire Department - Continued Equipment Maintenance Contractual Services Emergency Preparedness Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Emergency Preparedness Paid on Call Personal Services Employee Benefits Other Employee Costs Office and Other Equipment Total Paid on Call Total Fire Department Total Public Safety Highways and Streets Public Works Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support Budget Original Final Actual $ 1,056,789 1,056,789 1,056,789 153,981 153,981 143,398 41,432 41,432 50,409 3,000 3,000 796 5,000 5,000 228 23,100 123,100 77,925 226,513 326,513 272,756 29,021 29,021 12,712 1,535 1,535 972 8,600 8,600 4,199 3,600 1,452 1,359 42,756 40,608 19,242 16,988,392 17,100,178 17,096,913 38,008,699 38,150,563 37,297,450 294,111 294,111 283,473 238,649 238,649 238,521 32,422 32,422 24,958 1,315,903 1,316,694 1,308,118 15,647 4,245 3,976 16,773 15,982 9,635 1,670 1,670 917 141,979 141,979 141,979 2,057,154 2,045,752 2,011,577 136 146 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Highways and Streets - Continued Public Works Department - Continued Street and Buildings Division Administration Personal Services Employee Benefits Utilities Commodities and Supplies Total Administration Maintenance - Public Buildings Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Other Expenditures Total Maintenance - Public Buildings Street Maintenance Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Street Maintenance Snow Removal Personal Services Employee Benefits Contractual Services Commodities and Supplies Office and Other Equipment Total Snow Removal Budget Original Final Actual $ 121,043 121,043 115,362 45,231 45,231 49,491 4,245 4,245 4,714 270 270 180 170,789 170,789 169,747 423,230 423,230 367,470 168,521 168,521 192,546 460,578 455,578 352,414 54,500 54,500 68,786 163,900 168,900 135,880 4,417 4,417 - 1,275, t46 1,275,146 1,117,096 318,529 318,529 293,872 122,861 122,861 133,693 469,929 468,168 461,451 39,918 39,918 28,635 951,237 949,476 917,651 403,842 403,842 341,655 153,255 153,255 145,538 132,382 142,082 49,747 14,839 17,139 16,440 12,000 - 716,318 716,318 553,380 137 147 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Highways and Streets - Continued Public Works Department - Continued Street and Buildings Division - Continued Storm Sewer/Basin Maintenance Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Storm Sewer/Basin Maintenance Maintenance of State Highways Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Maintenance of State Highways Traffic Sign Maintenance Personal Services Employee Benefits Commodities and Supplies Total Traffic Sign Maintenance Civic Events Personal Services Employee Benefits Commodities and Supplies Total Civic Events Total Street and Buildings Division Budget Original Final Actual $ 87,555 87,555 74,407 33,046 33,046 32,071 13,349 13,349 5,150 10,253 10,253 12,870 144,203 144,203 124,498 40,857 40,857 35,239 16,319 16,319 16,212 20,379 20,379 18,626 32,950 32,950 7,429 110,505 110,505 77,506 80,876 80,876 68,834 28,594 28,594 27,950 36,075 36,075 35,970 145,545 145,545 132,754 40,967 40,967 - 7,071 7,071 - 100 100 - 48,138 48,138 - 3,561,881 3,560,120 3,092,632 138 148 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Highways and Streets - Continued Public Works Department - Continued Forestry Division Administration and Support Personal Services Employee Benefits Commodities and Supplies Total Administration and Support Maintenance of Grounds Personal Services Employee Benefits Contractual Services Commodities and Supplies 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 Budget Original Final Actual $ 114,703 114,703 112,898 41,150 41,150 40,066 450 1,025 1,103 156,303 156,878 154,067 181,787 181,787 190,482 67,485 67,485 78,660 209,756 206,955 268,775 9,942 9,942 8,453 51,066 53,867 53,246 520,036 520,036 599,616 507,996 507,996 438,884 195,491 195,491 179,781 6,723 6,723 288 483,293 478,572 384,882 3,978 3,978 7,813 12,291 16,437 15,181 1,209,772 1,209,197 1,026,829 109,430 109,430 94,978 43,010 43,010 40,149 2,703 2,703 - 36,978 36,978 35,408 192,121 192,121 170,535 139 149 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Highways and Streets - Continued Public Works Department - Continued Forestry Division Civic Events Personal Services Employee Benefits Total Civic Events Holiday Personal Services Employee Benefits Total Holiday 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 Budget Original Final Actual $ 47,562 47,562 - 9,455 9,455 - 57,017 57,017 - 9,990 9,990 8,829 4,418 4,418 4,186 14,408 14,408 13,015 2,149,657 2,149,657 1,964,062 832,816 832,816 808,857 255,169 255,169 288,307 5,673 6,673 4,030 122,463 135,963 110,928 6,000 6,000 6,141 6,266 4,266 4,455 2,504 2,504 818 1,230,891 1,243,391 1,223,536 54,451 54,451 51,333 23,072 23,072 24,473 17,289 12,789 8,971 76,407 76,407 83,871 28,629 20,629 17,307 199,848 187,348 185,955 1,430,739 1,430,739 1,409,491 140 150 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Highways and Streets - Continued Public Works Department - Continued Capital Expenditures Infrastructure Resurfacing/Curbs $ 325,600 141,850 114,154 Miscellaneous - Forestry 285,320 120,320 114,051 Total Capital Expenditures 610,920 262,170 228,205 Total Highways and Streets 9,810,351 9,448,438 8,705,967 Health Community Development - Health Health Inspections Personal Services 97,707 97,707 92,812 Employee Benefits 31,271 31,271 29,394 Other Employee Costs 1,423 1,423 408 Contractual Services 9,727 9,727 9,371 Utilities 1,935 1,204 - Commodities and Supplies 2,877 2,877 848 Total Health 144,940 144,209 132,833 Welfare Human Services Department Administration and Support Personal Services 156,543 156,543 159,825 Employee Benefits 74,583 74,583 77,102 Other Employee Costs 3,196 3,196 1,428 Contractual Services 32,120 32,120 24,569 Utilities 7,215 4,000 3,406 Commodities and Supplies 3,794 3,309 1,588 Office and Other Equipment 547 Insurance 12,918 12,918 12,918 Total Administration and Support 290,916 286,669 280,836 141 151 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Welfare - Continued 206,399 206,264 55,100 Human Services Department - Continued 62,930 3,099 3,099 Social Services 101,407 101,407 87,693 Personal Services $ 255,743 255,743 251,952 Employee Benefits 90,794 90,794 89,546 Other Employee Costs 4,300 4,300 1,054 Commodities and Supplies 1,000 1,000 506 Total Social Services 351,837 351,837 343,058 Nursing/Health Services Personal Services 124,720 124,720 120,070 Employee Benefits 48,029 48,029 49,931 Other Employee Costs 1,300 1,300 174 Contractual Services 255 255 - Commodities and Supplies 5,573 5,573 1,606 Office and Other Equipment 510 510 98 Total Nursing/Health Services Community Connections Center Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Community Connections Center Total Human Services Department 180,387 180,387 171,879 206,399 206,399 206,264 55,100 55,100 62,930 3,099 3,099 534 101,407 101,407 87,693 5,734 4,958 3,075 4,003 4,003 760 375,742 374,966 361,256 1,198,882 1,193,859 1,157,029 142 152 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Welfare - Continued 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 Public Representation - Community and Civic Services Community Groups and Miscellaneous Contractual Services Other Expenditures Total Community Groups and Miscellaneous 4th of July and Civic Events Employee Benefits Contractual Services Commodities and Supplies Total 4th of July and Civic Events Holiday Decorations Contractual Services Commodities and Supplies Total Holiday Decorations Budget Original Final Actual $ 169,924 169,924 169,567 64,350 64,350 66,642 5,295 5,295 258 73,287 73,287 49,608 5,298 4,649 - 5,437 5,437 3,571 323,591 322,942 289,646 1,522,473 1,516,801 1,446,675 234,935 234,935 89,766 106,120 106,120 3,236 121,520 121,520 3,113 341,055 341,055 93,002 16,845 16,845 - 61,784 61,784 - 42,891 42,891 3,113 121,520 121,520 3,113 77,701 77,701 49,668 24,697 24,697 19,832 102,398 102,398 69,500 143 153 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Culture and Recreation - Continued Blood Drive Program Personal Services Employee Benefits Commodities and Supplies Total Blood Drive Program Total Culture and Recreation Total Expenditures Budget Original Final Actual $ 1,844 1,844 614 142 142 47 1,500 1,500 464 3,486 3,486 1,125 568,459 568,459 166,740 57,342,625 57,604,886 54,647,076 144 154 VILLAGE OF MOUNT PROSPECT, ILLINOIS Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Revenues Taxes Property - Levy Other Taxes Home Rule Sales Tax Video Gaming Tax Intergovernmental Interest Total Revenues Expenditures Debt Service Principal Retirement interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 2,548,250 2,548,250 2,548,250 925,000 925,000 925,000 25,000 25,000 71,211 1,575,900 1,575,900 1,575,400 35,000 35,000 11,582 5,109,150 5,109,150 5,131,443 4,015,000 4,015,000 4,015,000 2,550,732 2,550,732 2,549,937 6,565,732 6,565,732 6,564,937 (1,456,582) (1,456,582) (1,433,494) 1,105,000 1,105,000 (1,456,582) (351,582) (328,494) 3,455,359 3,126,865 145 155 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police and Fire Building Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Revenues Interest Miscellaneous Total Revenues Expenditures Public Safety Contractual Services Capital Outlay Facility Construction Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing (Uses) Transfers Out Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 36,500 36,500 62,564 34,121 36,500 36,500 96,685 372,610 207,019 149,264 7,729,790 13,942,311 13,455,257 8,102,400 14,149,330 13,604,521 (8,065,900) (14,112,830) (13,507,836) (590,000) (590,000) (8,065,900) (14,702,830) (14,097,836) 44,134 146 156 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Motor Fuel Tax Fund: The Motor Fuel Tax Fund is used 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. The Refuse Disposal Fund: - The Refuse Disposal Fund is used to account for the revenues and expenditures associated with providing solid waste collection services. Financing provided by restricted user fees and recycling income. Community Development Block Grant (CDBG) Fund: The Community Development Block Grant Fund is used 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: The Asset Seizure Fund is used 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: The Federal Equitable Share Fund is used to account for the revenues and expenditures associated with the Federal Shared Funds program. The use of funds is restricted for use in the flight against drugs. DUI Fines Fund: The DUI Fines Fund is used to account for the revenues and expenditures associated with the Cook County DUI fine program. Use of funds is restricted to fight against drunk driving. Foreign Fire Insurance Fund: The Foreign Fire Insurance Fund is used to account for the 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: The Business District Fund is used 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. 147 157 NONMAJOR GOVERNMENTAL FUNDS - Continued CAPITAL PROJECTS FUNDS Capital Improvement Fund: The Capital Improvement Fund is used 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: The Flood Control Construction fund is used 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: The Street Improvement Construction Fund is used to account for the resources to reconstruct Village streets. Financing is being provided by various taxes, licenses, permits, fees and interest income. 148 158 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2020 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Other Accounts Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Retainage Payable Due to Other Governments Due to Other Funds Other Payables Total Liabilities FUND BALANCES Nonspendable Restricted Committed Assigned Total Fund Balances Total Liabilities and Fund Balances 149 Special Capital Revenue Projects Totals $ 5,825,227 5,325,291 11,150,518 401,463 261,794 663,257 607,058 — 607,058 310 — 310 722,390 594,846 1,317,236 86,081 19,564 105,645 7,642,529 6,201,495 13,844,024 326,543 139,649 466,192 13,287 — 13,287 — 14,871 14,871 3,541 — 3,541 — 525,000 525,000 1,753,147 — 1,753,147 2,096,518 679,520 2,776,038 86,081 19,564 105,645 4,525,896 — 4,525,896 934,034 — 934,034 — 5,502,411 5,502,411 5,546,011 5,521,975 11,067,986 7,642,529 6,201,495 13,844,024 159 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2020 Revenues Taxes Intergovernmental Licenses and Permits Charges for Services Interest Miscellaneous Total Revenues Expenditures Current General Government Public Safety Highways and Streets Helath Welfare Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Special Capital Revenue Projects Totals $ 724,920 3,826,989 4,551,909 2,574,496 1,348,000 3,922,496 — 1,414,357 1,414,357 4,464,626 — 4,464,626 19,987 21,216 41,203 1,444,362 272,919 1,717,281 9,228,391 6,883,481 16,111,872 1,036,290 — 1,036,290 137,530 — 137,530 1,870,994 — 1,870,994 4,660,338 — 4,660,338 377,614 — 377,614 — 10,516,557 10,516,557 8,082,766 10,516,557 18,599,323 1,145,625 (3,633,076) (2,487,451) 3,493,000 3,493,000 1,145,625 (140,076) 1,005,549 4,400,386 5,662,051 10,062,437 5,546,011 5,521,975 11,067,986 150 160 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet December 31, 2020 See Following Page 151 161 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet December 31, 2020 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Other Accounts Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Due to Other Governments Other Payables Total Liabilities FUND BALANCES N onspendable Restricted Committed Total Fund Balances Total Liabilities and Fund Balances Motor Community Fuel Refuse Development Tax Disposal Block Grant S 3,633,714 650,981 5,645 179,814 1,367 574,947 — 9,534 — 712,856 — 86,068 — 152 3,824,429 1,311,996 718,501 31,328 278,607 16,608 — 13,287 — 3,541 701,893 34,869 291,894 718,501 — 86,068 — 3,789,560 — 934,034 — 3,789,560 1,020,102 — 3,824,429 1,311,996 718,501 162 Asset Seizure Federal Equitable Share DUI Fines Foreign Fire Insurance Business District Totals 120,520 51,989 146,888 413,555 801,935 5,825,227 - - 3,074 - 218,575 401,463 - 30,744 607,058 123 - - 187 - 310 722,390 - - - 13 - 86,081 120,643 51,989 149,962 413,755 1,051,254 7,642,529 326,543 13,287 3,541 1,051,254 1,753,147 1,051,254 2,096,518 - - - 13 - 86,081 120,643 51,989 149,962 413,742 - 4,525,896 934,034 120,643 51,989 149,962 413,755 - 5,546,011 120,643 51,989 149,962 413,755 1,051,254 7,642,529 153 163 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2020 Revenues Taxes Intergovernmental Charges for Services Interest Miscellaneous Total Revenues Expenditures Current General Government Public Safety Highways and Streets Health Welfare Total Expenditures Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Motor Community Fuel Refuse Development Tax Disposal Block Grant 1,971,208 — 191,878 — 4,464,626 — 11,116 2,666 — 1,212,617 46,009 185,736 3,194,941 4,513,301 377,614 1,870,994 4,660,338 — 377,614 1,870,994 4,660,338 377,614 1,323,947 (147,037) — 2,465,613 1,167,139 — 154 3,789,560 1,020,102 — 164 120,643 51,989 149,962 413,755 - 5,546,011 155 165 Federal 1,036,290 Foreign 20,951 - 1,075 Asset Equitable DUI Fire Business 1,870,994 Seizure Share Fines Insurance District Totals 377,614 20,951 89,275 635,645 724,920 6,032 1,401 7,553 - 396,424 2,574,496 (24,797) - 1,145,625 135,102 50,545 143,435 438,552 - 4,464,626 460 43 49 1,432 4,221 19,987 1,444,362 6,492 1,444 7,602 90,707 1,036,290 9,228,391 120,643 51,989 149,962 413,755 - 5,546,011 155 165 1,036,290 1,036,290 20,951 - 1,075 115,504 - 137,530 1,870,994 4,660,338 - 377,614 20,951 - 1,075 115,504 1,036,290 8,082,766 (14,459) 1,444 6,527 (24,797) - 1,145,625 135,102 50,545 143,435 438,552 - 4,400,386 120,643 51,989 149,962 413,755 - 5,546,011 155 165 VILLAGE OF MOUNT PROSPECT, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Revenues Intergovernmental Motor Fuel Tax Allotments $ 1,907,850 1,907,850 1,971,208 Interest 16,500 16,500 11,116 Miscellaneous 10,000 1,199,940 1,212,617 Total Revenues 1,934,350 3,124,290 3,194,941 Expenditures Highway and Streets Street Maintenance 2,226,376 2,101,376 1,870,994 Net Change in Fund Balance (292,026) 1,022,914 1,323,947 Fund Balance - Beginning 2,465,613 Fund Balance - Ending 3,789,560 156 166 VILLAGE OF MOUNT PROSPECT, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2020 Highway and Streets Street Division Street Maintenance Contractual Services Budget Original Final Actual $ 183,126 183,126 181,777 Snow Removal Contractual Services 84,463 84,463 83,173 Commodities and Supplies 380,000 380,000 251,631 Total Snow Removal 464,463 464,463 334,804 Traffic Control/Street Lighting Contractual Services Utilities Total Traffic Control/Street Lighting Street Improvement Projects Infrastructure Total Expenditures 99,787 99,787 76,623 204,000 204,000 127,790 303,787 303,787 204,413 1,275,000 1,150,000 1,150,000 2,226,376 2,101,376 1,870,994 157 167 VILLAGE OF MOUNT PROSPECT, ILLINOIS Refuse Disposal - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Revenues Charges for Services S 4,353,000 4,353,000 4,464,626 Interest 10,950 10,950 2,666 Miscellaneous 11,000 11,000 46,009 Total Revenues 4,374,950 4,374,950 4,513,301 Expenditures Health Refuse Disposal Division Personal Services 319,769 319,769 283,914 Employee Benefits 133,567 133,567 133,286 Other Employee Costs 1,377 1,877 112 Contractual Services 4,277,177 4,292,177 4,195,098 Utilities 493 493 — Commodities and Supplies 42,410 41,910 39,978 Insurance 7,950 7,950 7,950 Total Expenditures 4,782,743 4,797,743 4,660,338 Net Change in Fund Balance (407,793) (422,793) (147,037) Fund Balance - Beginning 1,167,139 Fund Balance - Ending 1,020,102 158 168 VILLAGE OF MOUNT PROSPECT, ILLINOIS Refuse Disposal - Special Revenue Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2020 Charges for Services Single -Family Service Charges Multi -Family Service Charges Single -Family Penalties Multi -Family Penalties Contract Administrative Fees Recycling Bins Yard Waste Cart Rental Total Charges for Services Interest Miscellaneous Reimbursements Other Total Miscellaneous Total Revenues 159 Budget Original Final Actual S 3,200,000 3,200,000 3,216,052 995,000 995,000 1,067,097 35,000 35,000 23,084 3,500 3,500 5,432 100,000 100,000 128,439 1,000 1,000 1,050 18,500 18,500 23,472 4,353,000 4,353,000 4,464,626 10,950 10,950 2,666 1,000 1,000 40,348 10,000 10,000 5,661 11,000 11,000 46,009 4,374,950 4,374,950 4,513,301 169 VILLAGE OF MOUNT PROSPECT, ILLINOIS Community Development Block Grant - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Revenues Intergovernmental Grant - CDBG $ 562,800 562,800 191,878 Miscellaneous Program Income 60,000 60,000 185,736 Total Revenues 622,800 622,800 377,614 Expenditures Welfare Administration and Support 418 Community Programs 55,800 55,800 43,128 Residential Rehabilitation 567,000 567,000 334,068 Total Expenditures 622,800 622,800 377,614 Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending 160 170 VILLAGE OF MOUNT PROSPECT, ILLINOIS Asset Seizure - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 161 171 Budget Original Final Actual Revenues Intergovernmental Seized Assets S 12,500 12,500 6,032 Interest 2,000 2,000 460 Total Revenues 14,500 14,500 6,492 Expenditures Public Safety Other Employee Costs 1,000 1,000 — Contractual Services 3,000 3,000 — Equipment 3,000 21,000 20,951 Total Expenditures 7,000 25,000 20,951 Net Change in Fund Balance 7,500 (10,500) (14,459) Fund Balance - Beginning 135,102 Fund Balance - Ending 120,643 161 171 VILLAGE OF MOUNT PROSPECT, ILLINOIS Federal Equitable Share - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Revenues Intergovernmental Federal Equitable Shared Funds Interest Total Revenues Expenditures Public Safety Contractual Services Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 2,000 2,000 1,401 100 100 43 2,100 2,100 1,444 1,000 1,000 — 1,100 1,100 1,444 50,545 51,989 162 172 VILLAGE OF MOUNT PROSPECT, ILLINOIS DUI Fines - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Revenues Intergovernmental DUI Fines Interest Total Revenues Expenditures Public Safety Other Employee Costs Contractual Services Equipment Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 24,000 300 24,000 7,553 300 49 24,300 24,300 7,602 1,000 1,000 — 1,000 1,000 — 1,075 2,000 2,000 1,075 22,300 22,300 6,527 f[ftWAFEW 149,962 163 173 VILLAGE OF MOUNT PROSPECT, ILLINOIS Foreign Fire Insurance - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Revenues Taxes Other Taxes Foreign Fire Insurance Tax $ 75,000 75,000 89,275 Interest 3,200 3,200 1,432 Total Revenues 78,200 78,200 90,707 Expenditures Public Safety Insurance 500 500 — Other Employee Costs 15,000 15,000 124 Contractual Services 10,500 10,500 7,130 Commodities and Supplies 13,000 13,000 1,170 Building Improvements 5,000 5,000 — Equipment 24,000 79,000 107,080 Total Expenditures 68,000 123,000 115,504 Net Change in Fund Balance 10,200 (44,800) (24,797) Fund Balance - Beginning 438,552 Fund Balance - Ending 413,755 164 174 VILLAGE OF MOUNT PROSPECT, ILLINOIS Business District - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Revenues Taxes Other Taxes Food and Beverage Tax $ 389,295 389,295 296,913 Hotel/Motel Tax 228,000 228,000 73,648 Movie Theatre Tax 107,600 107,600 15,028 Business District Tax 308,700 308,700 250,056 Intergovernmental State Sales Tax 514,000 514,000 396,424 Interest 6,500 6,500 4,221 Total Revenues 1,554,095 1,554,095 1,036,290 Expenditures General Government 1,554,095 1,554,095 1,036,290 Net Change in Fund Balance Fund Balance - Beginning — Fund Balance - Ending — 165 175 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Capital Projects Funds Combining Balance Sheet December 31, 2020 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable Retainage Payable Due to Other Funds Total Liabilities FUND BALANCES Capital Improvement Flood Control Construction Street Improvement Construction Totals $ 3,343,920 3,558 1,977,813 5,325,291 212,759 — 49,035 261,794 594,846 — 594,846 19,564 19,564 3,576,243 598,404 2,026,848 6,201,495 90,144 48,437 1,068 139,649 14,871 14,871 525,000 — 525,000 105,015 573,437 1,068 679,520 Nonspendable 19,564 19,564 Assigned 3,451,664 24,967 2,025,780 5,502,411 Total Fund Balances 3,471,228 24,967 2,025,780 5,521,975 Total Liabilities and Fund Balances 3,576,243 598,404 2,026,848 6,201,495 166 176 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2020 Revenues Taxes Other Intergovernmental Licenses, Permits and Fees Interest Miscellaneous Total Revenues Expenditures Capital Outlay Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Flood Street Capital Control Improvement Improvement Construction Construction Totals $ 1,389,000 464,000 1,973,989 3,826,989 — 1,348,000 — 1,348,000 2,047,899 1,414,357 1,414,357 12,071 1,037 8,108 21,216 — 29,833 243,086 272,919 1,401,071 1,842,870 3,639,540 6,883,481 1,256,337 5,598,561 3,661,659 10,516,557 144,734 (3,755,691) 3,493,000 (22,119) (3,633,076) 3,493,000 144,734 (262,691) (22,119) (140,076) 3,326,494 287,658 2,047,899 5,662,051 3,471,228 24,967 2,025,780 5,521,975 167 177 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Improvement - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Budget Original Final Actual Revenues Taxes Other Taxes Home Rules Sales Tax S 1,389,000 1,389,000 1,389,000 Interest 16,900 16,900 12,071 Total Revenues 1,405,900 1,405,900 1,401,071 Expenditures Capital Outlay Equipment 487,400 731,800 415,123 Building Improvements 1,613,000 303,194 300,960 Infrastructure 1,268,872 842,975 540,254 Total Expenditures 3,369,272 1,877,969 1,256,337 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,963,372) (472,069) 144,734 Other Financing Sources Transfers In 400,000 Net Change in Fund Balance (1,563,372) (472,069) 144,734 Fund Balance - Beginning 3,326,494 Fund Balance - Ending 3,471,228 168 178 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Improvement - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2020 Capital Outlay Equipment Police Department Software Fire Safety Trailer Field Cameras Computer Eqpt - New Public Safety Drone Mobile Video Rec Sys Fire Hose & Appliances Village Warning Sirens Total Equipment Building Improvements Emergency Generators Public Works Facility Improvements HVAC Replacements Parking Lot Improvements Village Hall Facility Improvements Train Station Platform Extension Intersection Improvements Other Public Building Improvements Total Building Improvements Infrastructure Residential Street Lights Residential Street Light Improvements Contractual Services - Brick Sidewalks Corridor Improvements Kensington Road Bike Path Brick Sidewalks Bridge Rehab Pedestrian Bridge Parking Deck Maintenance Central Road Pedestrian Crossing Total Infrastructure Budget Original Final Actual $ 50,000 50,000 47,523 - 82,000 - 40,000 40,000 - 14,800 14,800 1,162 12,600 - - 225,000 400,000 341,716 25,000 25,000 24,722 120,000 120,000 - 487,400 731,800 415,123 - 24,350 23,849 310,000 - 92,780 140,000 81,182 79,769 35,000 100,000 - 63,000 - - 900,000 50,000 35,287 - 128,844 122,480 165,000 150,000 61,851 1,613,000 303,194 300,960 132,690 112,690 51,780 - 52,467 - 81,182 81,182 79,769 100,000 100,000 - 670,000 67,000 89,270 50,000 50,000 35,287 35,000 - 41,522 41,523 - 31,254 35,657 200,000 306,860 206,968 1,268,872 842,975 540,254 Total Expenditures 3,369,272 1,877,969 1,256,337 169 179 VILLAGE OF MOUNT PROSPECT, ILLINOIS Flood Control Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Revenues Taxes Other Taxes Home Rule Sales Tax Intergovernmental Interest Miscellaneous Fees Reimbursements Total Revenues Expenditures Capital Outlay Public Improvements Infrastructure Other Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual S 464,000 464,000 464,000 888,000 1,348,000 1,348,000 16,500 16,500 1,037 40,000 40,000 9,833 16,800 16,800 20,000 1,425,300 1,885,300 1,842,870 4,454,131 6,570,938 5,547,547 59,570 59,570 51,014 4,513,701 6,630,508 5,598,561 (3,088,401) (4,745,208) (3,755,691) 3,393,000 3,493,000 3,493,000 304,599 (1,252,208) (262,691) 287,658 24,967 170 180 VILLAGE OF MOUNT PROSPECT, ILLINOIS Flood Control Construction - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2020 Capital Outlay Public Improvements Infrastructure Levee Repairs Culvert and Ditch Levee Supplies Creek Bank Stabilization Creek Tree Trimming Private Property Drainage Weller Creek Improvements Storm Sewer Inspection Program Levee 37 Total Infrastructure Other Electricity Residential Reimbursements Contractual Services Budget Original Final Actual $ 40,800 40,800 6,474 30,600 30,600 3,750 5,100 5,100 4,162 25,500 25,500 16,624 25,500 25,500 22,348 120,000 196,896 163,127 25,000 25,000 - 788,000 788,000 14,920 3,393,631 5,433,542 5,316,142 4,454,131 6,570,938 5,547,547 3,570 3,570 38 5,000 5,000 - 51,000 51,000 50,976 Total Other 59,570 59,570 51,014 Total Expenditures 4,513,701 6,630,508 5,598,561 171 181 VILLAGE OF MOUNT PROSPECT, ILLINOIS Street Improvement Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2020 Revenues Taxes Other Taxes Home Rule Sales Tax Municipal Motor Fuel Tax Licenses, Permits and Fees Interest Miscellaneous Reimbursements Other Total Revenues Expenditures Capital Outlay Contractual Services Infrastructure Street Resurfacing Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual S 1,389,000 1,389,000 1,389,000 685,000 685,000 584,989 1,616,500 1,616,500 1,414,357 8,500 8,500 8,108 15,000 15,000 — 25,000 25,000 243,086 3,739,000 3,739,000 3,639,540 40,000 40,000 30,120 4,050,000 3,752,042 3,631,539 4,090,000 3,792,042 3,661,659 (351,000) (53,042) (22,119) 2,047,899 2,025,780 172 182 PROPRIETARY FUNDS 173 183 ENTERPRISE FUNDS The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where it has been decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purpose. Water and Sewer Fund: The Water and Sewer Fund is a major fund and is used to account for the activities of the water and sewer operations. The Village operates sewerage lift and relief stations and waste water collection systems and the water distribution system. Parking System Revenue Fund: The Parking System Revenue Fund is a nonmajor fund and is used 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 Fund: The Village Parking System Fund is a nonmajor fund and is used 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. 174 184 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 Operating Revenues Charges for Services Operating Expenses Administration and Maintenance Operating (Loss) Nonoperating Revenues (Expenses) Interest Income Other Income Principal Payment Property Taxes Interest Expense Change in Net Position - Budgetary Basis Adjustments to GAAP Basis Depreciation Amortization of Asset Retirement Obligation Capital Assets Capitalized Total Adjustments to GAAP Basis Change in Net Position - GAAP Basis Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 16,240,840 16,240,840 16,732,889 19,607,818 19,510,059 18,526,069 (3,366,978) (3,269,219) (1,793,180) 66,100 66,100 158,801 90,000 90,000 32,973 (265,000) (265,000) — (24,959) (903,748) (903,748) (813,332) (1,012,648) (1,012,648) (646,517) (4,379,626) (4,281,867) (2,439,697) (651,205) (7,500) 1,989,895 (1,108,507) 38,572,493 37,463,986 175 185 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2020 Total Operating Revenues 16,240,840 16,240,840 16,732,889 176 186 Budget Original Final Actual Charges for Services Water Sales $ 12,976,860 12,976,860 13,319,598 Sewer Fees 3,126,980 3,126,980 3,270,262 Sewer Construction Charge 36 Water Penalties 80,000 80,000 98,377 Water Meter Fees 22,000 22,000 20,080 Water and Sewer Taps 15,000 15,000 650 Sewer Penalties 20,000 20,000 23,886 Total Operating Revenues 16,240,840 16,240,840 16,732,889 176 186 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2020 Administration and Maintenance Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Insurance Commodities and Supplies Capital Expenses 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 Distribution System Total Water Supply Maintenance and Repair Budget Original Final Actual $ 510,559 510,559 500,866 316,086 316,086 1,245,067 45,347 45,347 28,373 292,914 292,914 258,433 52,923 52,923 10,907 134,892 134,892 134,892 15,456 15,456 1,984 2,478 2,478 1,980 1,370,655 1,370,655 2,182,502 180,119 180,119 161,416 78,940 78,940 75,943 18,578 18,578 85 6,756 6,756 5,364 1,688 1,688 1,648 286,081 286,081 244,456 47,572 47,572 41,032 14,392 14,392 13,151 53,690 53,690 36,305 6,659 6,659 2,216 122,313 122,313 92,704 368,514 368,514 343,570 147,251 147,251 144,508 124,350 124,350 82,437 81,600 81,600 80,448 80,125 80,125 42,532 51,000 51,000 35,919 852,840 852,840 729,414 177 187 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Expenses - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Administration and Maintenance - Continued Water Distribution Maintenance and Repair Personal Services Employee Benefits Contractual Services Commodities and Supplies Distribution System Capital Expenses 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 Expenses 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 $ 590,999 590,999 510,674 222,009 222,009 205,560 295,639 295,639 241,070 83,726 83,726 121,924 37,142 37,142 - 1,103 1,103 - 1,230,618 1,230,618 1,079,228 211,328 211,328 185,151 70,850 70,850 61,820 60,838 60,838 60,560 113,348 113,348 102,702 456,364 456,364 410,233 62,119 62,119 51,472 17,266 17,266 15,587 137,058 137,058 82,216 3,504 3,504 2,749 66,300 66,300 89,601 286,247 286,247 241,625 998,307 998,307 998,307 378,542 378,542 332,613 154,135 154,135 143,379 228,939 228,939 85,883 24,895 24,895 12,381 30,182 30,182 24,163 816,693 816,693 598,419 178 188 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Expenses - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2020 Administration and Maintenance - Continued Water System Improvements Capital Expenses Sanitary System Improvements Capital Expenses Storm Sewer Improvements Capital Expenses Improvements to Public Buildings Capital Expenses Lake Michigan Water Acquisition Contractual Services Capital Expenses Total Lake Michigan Water Acquisition Total Operating Expenses Budget Original Final Actual $ 3,555,000 3,753,185 812,516 1,425,000 1,394,056 848,375 800,000 800,000 769,206 385,000 120,000 11,607 7,022,700 7,022,700 7,517,582 1,989,895 7,022,700 7,022,700 9,507,477 19,607,818 19,510,059 18,526,069 179 189 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Net Position December 31, 2020 ASSETS Current Assets Cash and Investments Prepaids Total Current Assets Noncurrent Assets Capital Assets Depreciable Accumulated Depreciation Total Noncurrent Assets Total Assets LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Due to Other Governments Other Payables Compensated Absences Payable Total Current Liabilities Noncurrent Liabilities Compensated Absences Payable Total OPEB Liability - RBP Total Noncurrent Liabilities Total Liabilities NET POSITION Parking System Village Parking Revenue System Totals S 141,944 304,694 446,638 - 17 17 141,944 304,711 446,655 364,800 - 364,800 (364,800) - (364,800) 141,944 304,711 446,655 3,124 4,025 7,149 797 797 1,594 - 642 642 240 150 390 604 604 1,208 4,765 6,218 10,983 2,417 2,418 4,835 2,417 2,418 4,835 7,182 8,636 15,818 Unrestricted 134,762 296,075 430,837 180 190 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Fiscal Year Ended December 31, 2020 Operating Revenues Charges for Services Parking Fees Rental Fees Convenience Fees Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating (Loss) Nonoperating Revenues Interest Income Other Income Change in Net Position Net Position - Beginning Net Position - Ending Parking System Village Parking Revenue System Totals $ 56,662 44,651 101,313 — 1,683 1,683 500 520 1,020 57,162 46,854 104,016 181 84,578 140,834 225,412 (27,416) (93,980) (121,396) 582 1,260 1,842 — 1,235 1,235 582 2,495 3,077 (26,834) (91,485) (118,319) 161,596 387,560 549,156 134,762 296,075 430,837 191 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2020 Cash Flows from Operating Activities Receipts from Customers and Users Payments to Suppliers Payments to Employees Cash Flows from Investing Activities Interest Received Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating (Loss) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Other Income (Expense) (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities 182 Parking System Village Parking Revenue System Totals $ 57,374 109,424 166,798 (99,781) (171,364) (271,145) (13,619) (13,708) (27,327) (56,026) (75,648) (131,674) 582 1,260 1,842 (55,444) (74,388) (129,832) 197,388 379,082 576,470 141,944 304,694 446,638 (27,416) (93,980) (121,396) — 1,235 1,235 212 62,570 62,782 (28,822) (45,473) (74,295) (56,026) (75,648) (131,674) 192 VILLAGE OF MOUNT PROSPECT, ILLINOIS Parking System Revenue - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 Operating Revenues Charges for Services Parking Fees Convenience Fees Total Operating Revenues Operating Expenses Budget Original Final Actual $ 156,500 156,500 56,662 2,200 2,200 500 158,700 158,700 57,162 Administration, Maintenance and Improvements 162,310 162,310 84,578 Operating (Loss) (3,610) (3,610) (27,416) Nonoperating Revenues Interest Income 1,650 1,650 582 Change in Net Position (1,960) (1,960) (26,834) Net Position - Beginning 161,596 Net Position - Ending 134,762 183 193 VILLAGE OF MOUNT PROSPECT, ILLINOIS Parking System Revenue - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2020 Administration, Maintenance and Improvements Personal Services Employee Benefits Contractual Services Utilities Insurance Commodities and Supplies Budget Original Final Actual $ 18,838 18,838 13,709 7,667 7,667 4,081 114,461 114,461 57,610 9,998 9,998 1,682 335 335 335 11,011 11,011 7,161 Total Operating Expenses 162,310 162,310 84,578 184 194 VILLAGE OF MOUNT PROSPECT, ILLINOIS Village Parking System - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 Operating Revenues Charges for Services Parking Fees Rental Fees Convenience Fees Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating (Loss) Nonoperating Revenues Other Income Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 184,500 184,500 44,651 6,600 6,600 1,683 3,000 3,000 520 194,100 194,100 46,854 277,458 277,458 140,834 (83,358) (83,358) (93,980) 3,500 3,500 3,500 3,500 (79,858) (79,858) 1,235 1,260 2,495 (91,485) 387,560 296,075 185 195 VILLAGE OF MOUNT PROSPECT, ILLINOIS Village Parking System - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2020 Administration, Maintenance and Improvements Personal Services Employee Benefits Contractual Services Insurance Commodities and Supplies Capital Expenses Budget Original Final Actual $ 18,933 18,933 13,709 7,713 7,713 (10,778) 199,912 198,912 105,322 326 326 326 574 574 574 50,000 51,000 31,681 Total Operating Expenses 277,458 277,458 140,834 186 196 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies other governmental unit, or to other governmental units, on a cost - reimbursement basis. Computer Replacement Fund: The Computer Replacement Fund is used to account for the acquisition of Village computer hardware. Financing is being provided by charges to various Village funds. Risk Management Fund: The Risk Management Fund is used 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 in the various Village funds. Vehicle Replacement Fund: The Vehicle Replacement Fund is used to account for the acquisition and depreciation of Village vehicles. Financing is being provided by charges to the General, and Water and Sewer Funds. Vehicle Maintenance Fund: The Vehicle Maintenance Fund is used to account for the maintenance and repair of all Village vehicles. Financing is being provided by charges to various Village funds. 187 197 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Net Position December 31, 2020 See Following Page 188 198 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Net Position December 31, 2020 ASSETS Current Assets Cash and Investments Receivables - Net of Allowances - Accounts Accrued Interest Other Due from Other Governments Deposits - Insurance Inventories Prepaids Total Current Assets Noncurrent Assets Capital Assets Nondepreciable Depreciable Accumulated Depreciation Other Assets Deposits - Insurance Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Items - RBP Total Assets and Deferred Outflows of Resources LIABILITIES Current Liabilities Accounts Payable Accrued Payroll Due to Other Governments Claims Payable Other Payables Compensated Absences Payable Total Current Liabilities Noncurrent Liabilities Compensated Absences Payable Claims Payable Total OPEB Liability - RBP Total Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Items - RBP Total Liabilities and Deferred Inflows of Resources NET POSITION Investment in Capital Assets Unrestricted Total Net Position Computer Replacement $ 398,166 398,166 150,000 68,544 (61,689) 156,855 156,855 555,021 555,021 4,329 4,329 4,329 4,329 156,855 393,837 550,692 189 199 Risk Vehicle Vehicle Management Replacement Maintenance Totals 723,153 11,639,048 1,022,825 13,783,192 40 - - 40 278 - 1,979 2,257 - - 8,668 8,668 2,812,678 - - 2,812,678 - - 340,573 340,573 71,959 - 15,690 87,649 3,608,108 11,639,048 1,389,735 17,035,057 - 248,531 - 398,531 - 15,440,520 92,062 15,601,126 - (8,608,433) (92,062) (8,762,184) - 7,080,618 - 7,237,473 1,116,941 - - 1,116,941 1,116,941 7,080,618 - 8,354,414 4,725,049 18,719,666 1,389,735 25,389,471 - - 142,107 142,107 4,725,049 18,719,666 1,531, 842 25,531,578 187,586 79,113 21,283 292,311 - - 41,758 41,758 4,492 4,492 476,885 - - 476,885 108,628 - - 108,628 - - 20,984 20,984 777,591 79,113 84,025 945,058 - - 83,936 83,936 222,313 - - 222,313 - - 542,550 542,550 222,313 - 626,486 848,799 999,904 79,113 710,511 1,793,857 - - 118,847 118,847 999,904 79,113 829,358 1,912,704 - 7,080,618 - 7,237,473 3,725,145 11,559,935 702,484 16,381,401 3,725,145 18,640,553 702,484 23,618,874 190 200 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Fiscal Year Ended December 31, 2020 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) Nonoperating Revenues (Expenses) Disposal of Capital Assets Interest Income Other Income Change in Net Position Net Position - Beginning Net Position - Ending Computer Replacement $ 43,995 43,995 206,884 13,709 220,593 (176,598) 2,087 2,087 (174,511) 725,203 550,692 191 201 Risk Vehicle Vehicle Management Replacement Maintenance Totals 7,797,137 1,780,260 2,520,488 12,141,880 1,747,350 1,747,350 589,399 — 240 589,639 10,133,886 1,780,260 2,520,728 14,478,869 382,562 9,093 2,162,441 2,760,980 9,325,727 9,325,727 — 1,047,236 — 1,060,945 9,708,289 1,056,329 2,162,441 13,147,652 425,597 723,931 358,287 1,331,217 — (12,721) 222 (12,499) 683 47,978 1,096 51,844 — 21,523 — 21,523 683 56,780 1,318 60,868 426,280 780,711 359,605 1,392,085 3,298,865 17,859,842 342,879 22,226,789 3,725,145 18,640,553 702,484 23,618,874 192 202 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2020 Computer Replacement Cash Flows from Operating Activities Receipts from Customers and Users $ — Interfund Services Provided 43,995 Payments to Suppliers (227,714) Payments to Employees — (183,719) Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets — Purchase of Capital Assets (150,000) (150,000) Cash Flows from Investing Activities Interest Received 2,087 Net Change in Cash and Cash Equivalents (331,632) Cash and Cash Equivalents - Beginning 729,798 Cash and Cash Equivalents - Ending 398,166 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (176,598) Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation 13,709 Other Income — (Increase) Decrease in Current Assets — Increase (Decrease) in Current Liabilities (20,830) Net Cash Provided by Operating Activities (183,719) 193 203 Risk Vehicle Vehicle Management Replacement Maintenance Totals 3,331,303 — 240 3,331,543 6,365,532 1,958,092 2,389,555 10,757,174 (9,469,108) 24,014 (812,008) (10,484,816) (965,940) (965,940) 227,727 1,982,106 611,847 2,637,961 73,494 222 73,716 (537,629) — (687,629) (464,135) 222 (613,913) 683 47,978 1,096 51,844 228,410 1,565,949 613,165 2,075,892 494,743 10,073,099 409,660 11,707,300 723,153 11,639,048 1,022,825 13,783,192 425,597 723,931 358,287 1,331,217 1,047,236 — 1,060,945 21,523 — 21,523 (437,051) 156,309 (130,933) (411,675) 239,181 33,107 384,493 635,951 227,727 1,982,106 611,847 2,637,961 194 204 VILLAGE OF MOUNT PROSPECT, ILLINOIS Computer Replacement - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 195 205 Budget Original Final Actual Operating Revenues Charges for Services Refuse Disposal Fund $ 1,493 1,493 373 Water and Sewer Fund 3,732 3,732 933 General Fund 154,754 154,754 42,689 Total Operating Revenues 159,979 159,979 43,995 Operating Expenses Administration Capital Outlay 189,978 369,978 206,884 Depreciation 13,709 Total Operating Expenses 189,978 369,978 220,593 Operating (Loss) (29,999) (209,999) (176,598) Nonoperating Revenues Interest Income 2,087 Change in Net Position (29,999) (209,999) (174,511) Net Position - Beginning 725,203 Net Position - Ending 550,692 195 205 VILLAGE OF MOUNT PROSPECT, ILLINOIS Computer Replacement - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2020 Administration Capital Outlay Depreciation Budget Original Final Actual $ 189,978 369,978 206,884 13,709 Total Operating Expenses 189,978 369,978 220,593 196 206 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 197 207 Budget Original Final Actual Operating Revenues Charges for Services $ 7,738,478 7,738,478 7,797,137 Contributions 1,656,000 1,656,000 1,747,350 Miscellaneous 52,000 52,000 589,399 Total Operating Revenues 9,446,478 9,446,478 10,133,886 Operating Expenses Administration 392,000 392,000 382,562 Insurance and Claims 9,213,300 9,213,300 9,325,727 Total Operating Expenses 9,605,300 9,605,300 9,708,289 Operating Income (Loss) (158,822) (158,822) 425,597 Nonoperating Revenues Interest Income 16,000 16,000 683 Change in Net Position (142,822) (142,822) 426,280 Net Position - Beginning 3,298,865 Net Position - Ending 3,725,145 197 207 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2020 Charges for Services General Fund Refuse Disposal Fund Water and Sewer Fund Parking System Revenue Fund Village Parking System Fund Vehicle Maintenance Fund Library Total Charges for Services Contributions Employee Health Insurance Dental Insurance Additional Life Insurance Retiree Health Insurance Dental Insurance Total Contributions Miscellaneous Other Reimbursements Budget Original Final Actual $ 6,465,370 6,465,370 6,509,475 14,750 14,750 14,750 252,261 252,261 252,261 622 622 622 605 605 605 24,870 24,870 24,870 980,000 980,000 994,554 7,738,478 7,738,478 7,797,137 635,000 635,000 648,599 140,000 140,000 151,190 24,000 24,000 24,620 825,000 825,000 889,306 32,000 32,000 33,635 1,656,000 1,656,000 1,747,350 52,000 52,000 589,399 Total Operating Revenues 9,446,478 9,446,478 10,133,886 198 208 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2020 Administration Casualty and Property Program Other Contractual Services Medical Program Claims Administration Total Administration Insurance and Claims Casualty and Property Program Liability Insurance Otherinsurance Property Claims Liability Claims Workers' Compensation Claims Auto Claims Unemployment Compensation Claims Tree Hazard Study Other Claims Total Casualty and Property Program Medical Program Medical Expense - HMO Plan Medical Expense - Indemnity Plan Medical Expense - Dental Health and Wellness Supplies Life Insurance Total Medical Program Budget Original Final Actual $ 30,000 30,000 28,500 362,000 362,000 354,062 392,000 392,000 382,562 725,000 725,000 563,767 25,000 25,000 28,922 100,000 100,000 - 150,000 150,000 342,255 450,000 450,000 586,867 7,733,300 7,733,300 394 10,000 10,000 4,492 10,000 10,000 - 10,000 10,000 50,454 1,480,000 1,480,000 1,577,151 1,264,300 1,264,300 1,196,174 6,108,400 6,108,400 6,202,293 288,800 288,800 296,642 22,500 22,500 6,140 49,300 49,300 47,327 7,733,300 7,733,300 7,748,576 Total Insurance and Claims 9,213,300 9,213,300 9,325,727 Total Operating Expenses 9,605,300 9,605,300 9,708,289 199 209 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 Operating Revenues Charges for Services Operating Expenses Administration Depreciation Total Operating Expenses Operating Income Nonoperating Revenues (Expenses) Disposal of Capital Assets Interest Income Other Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 1,798,560 1,798,560 1,780,260 9,093 1,047,236 1,056,329 1,798,560 1,798,560 723,931 (12,721) 144,000 144,000 47,978 21,523 144,000 144,000 56,780 1,942,560 1,942,560 780,711 17,859,842 18,640,553 200 210 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2020 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 Water and Sewer Fund Other Fees Budget Original Final Actual $ 3,620 3,620 3,620 1,500 1,500 1,500 3,780 3,780 3,780 9,400 9,400 9,400 1,500 1,500 1,500 241,580 241,580 241,580 658,300 658,300 658,300 451,960 451,960 451,960 13,270 13,270 13,270 394,650 394,650 394,650 19,000 19,000 700 Total Operating Revenues 1,798,560 1,798,560 1,780,260 201 211 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2020 Administration Capital Outlay Police Vehicles Fire Vehicles Public Works Total Capital Outlay Less Capital Assets Capitalized Total Administration Depreciation Budget Original Final Actual $ 311,000 314,950 314,950 — 5,000 1,008 891,000 652,428 205,112 1,202,000 972,378 521,070 (1,202,000) (972,378) (511,977) 9,093 1,047,236 Total Operating Expenses 1,056,329 202 212 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 Operating Revenues Charges for Services Miscellaneous Total Operating Revenues Operating Expenses Administration and Maintenance Operating Income Nonoperating Revenues Disposal of Capital Assets Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 2,520,488 2,520,488 2,520,488 240 2,520,488 2,520,488 2,520,728 2,326,536 2,326,536 2,162,441 193,952 193,952 358,287 222 6,000 6,000 1,096 6,000 6,000 1,318 199,952 199,952 359,605 342,879 702,484 203 213 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2020 Charges for Services General Fund Manager's Office Television Services Division Community Development - Planning Community Development - Building Community Development - Housing Community Development - Health Police Department Fire Department Public Works Department Engineering Division Human Service Charges Water and Sewer Fund Miscellaneous Budget Original Final Actual $ 3,781 3,781 3,781 4,033 4,033 4,033 3,781 3,781 3,781 5,293 5,293 5,293 26,465 26,465 26,465 3,781 3,781 3,781 641,968 641,968 641,968 398,489 398,489 398,489 784,375 784,375 784,375 41,084 41,084 41,084 3,781 3,781 3,781 603,657 603,657 603,657 2,520,488 2,520,488 2,520,488 240 Total Operating Revenues 2,520,488 2,520,488 2,520,728 204 214 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2020 Administration and Maintenance Vehicle Division Administration Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities & Supplies Office Equipment Insurance Total Vehicle Division Administration Vehicle Maintenance Program Personal Services Employee Benefits Contractual Services Commodities & Supplies Other Equipment Total Vehicle Maintenance Program Budget Original Final Actual $ 127,186 127,186 123,664 61,440 61,440 334,768 4,250 4,750 1,815 12,200 28,360 18,041 5,431 5,431 3,750 2,106 2,106 1,179 626 126 - 13,405 13,405 13,405 226,644 242,804 496,622 995,231 995,231 805,412 371,811 371,811 338,218 101,754 101,754 52,724 627,077 610,917 468,581 4,019 4,019 884 2,099,892 2,083,732 1,665,819 Total Operating Expenses 2,326,536 2,326,536 2,162,441 205 215 PENSION TRUST FUNDS Police Pension Fund: The Police Pension Fund is used 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: The Firefighters' Pension Fund is used 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. 206 216 VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Trust Funds Combining Statement of Fiduciary Net Position December 31, 2020 ASSETS Cash and Cash Equivalents Investments U.S. Government Obligations U.S. Agency Obligations State and Local Obligations Corporate Bonds Real Estate Mutual Funds Receivables - Net of Allowance Accrued Interest Due from Other Funds Prepaids Total Assets LIABILITIES Accounts Payable NET POSITION Net Position Restricted for Pensions Police Firefighters' Pension Pension Totals $ 3,167,675 1,676,] 18 4,843,793 3,591,666 5,811,715 9,403,381 11,980,941 12,077,546 24,058,487 3,707,677 360,337 4,068,014 8,045,520 10,001,460 18,046,980 — 6,470,201 6,470,201 56,329,456 43,974,054 100,303,510 109,664 136,150 245,814 9,014 8,199 17,213 795 1,045 1,840 86,942,408 34,177 80,516,825 167,459,233 57,356 91,533 86,908,231 80,459,469 167,367,700 207 217 VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Trust Funds Combining Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2020 Investment Earnings Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment Income Total Additions Deductions Administration Benefits and Refunds Total Deductions Change in Fiduciary Net Position Net Position Restricted for Pensions Beginning 2,910 816 3,726 10,347,333 11,687,118 22,034,451 10,350,243 11,687,934 22,038,177 (125,336) (131,207) (256,543) 10,224,907 11,556,727 21,781,634 14,940,723 15,810,403 30,751,126 59,676 36,998 96,674 6,306,360 6,541,877 12,848,237 6,366,036 6,578,875 12,944,911 8,574,687 9,231,528 17,806,215 78,333,544 71,227,941 149,561,485 Ending 86,908,231 80,459,469 167,367,700 208 218 Police Firefighters' Pension Pension Totals Additions Contributions - Employer $ 3,855,754 3,494,838 7,350,592 Contributions - Plan Members 860,062 758,838 1,618,900 Total Contributions 4,715,816 4,253,676 8,969,492 Investment Earnings Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment Income Total Additions Deductions Administration Benefits and Refunds Total Deductions Change in Fiduciary Net Position Net Position Restricted for Pensions Beginning 2,910 816 3,726 10,347,333 11,687,118 22,034,451 10,350,243 11,687,934 22,038,177 (125,336) (131,207) (256,543) 10,224,907 11,556,727 21,781,634 14,940,723 15,810,403 30,751,126 59,676 36,998 96,674 6,306,360 6,541,877 12,848,237 6,366,036 6,578,875 12,944,911 8,574,687 9,231,528 17,806,215 78,333,544 71,227,941 149,561,485 Ending 86,908,231 80,459,469 167,367,700 208 218 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension - Pension Trust Fund Schedule of Changes in the Fiduciary Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 Additions Contributions - Employer Contributions - Plan Members Total Contributions Investment Earnings Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment Income Total Additions Deductions Administration Benefits and Refunds Total Deductions Change in Fiduciary Net Position Net Position Restricted for Pensions Beginning Ending Budget Original Final Actual $ 3,864,600 3,864,600 3,855,754 886,625 886,625 860,062 4,751,225 4,751,225 4,715,816 13,000 13,000 2,910 4,064,150 4,064,150 10,347,333 4,077,150 4,077,150 10,350,243 (129,000) (129,000) (125,336) 3,948,150 3,948,150 10,224,907 8,699,375 8,699,375 14,940,723 67,140 67,140 59,676 6,106,434 6,106,434 6,306,360 6,173,574 6,173,574 6,366,036 2,525,801 2,525,801 8,574,687 78,333,544 86,908,231 209 219 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension - Pension Trust Fund Schedule of Changes in the Fiduciary Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2020 210 220 Budget Original Final Actual Additions Contributions - Employer $ 3,488,400 3,488,400 3,494,838 Contributions - Plan Members 724,500 724,500 758,838 Other 250 250 — Total Contributions 4,213,150 4,213,150 4,253,676 Investment Earnings Interest Earned 6,000 6,000 816 Net Change in Fair Value 3,785,100 3,785,100 11,687,118 3,791,100 3,791,100 11,687,934 Less Investment Expenses (94,550) (94,550) (131,207) Net Investment Income 3,696,550 3,696,550 11,556,727 Total Additions 7,909,700 7,909,700 15,810,403 Deductions Administration 74,730 74,730 36,998 Benefits and Refunds 6,439,854 6,439,854 6,541,877 Total Deductions 6,514,584 6,514,584 6,578,875 Change in Fiduciary Net Position 1,395,116 1,395,116 9,231,528 Net Position Restricted for Pensions Beginning 71,227,941 Ending 80,459,469 210 220 VILLAGE OF MOUNT PROSPECT, ILLINOIS Consolidated Year -End Financial Report December 31, 2020 CSFA # Program Name State Federal Other Total 420-00-1992 Purchase and Installation of a Back-up Generator for a Levee $ 6,530 494-00-1488 Motor Fuel Tax 1,870,992 Other Grant Programs and Activities All Other Costs Not Allocated 211 6,530 1,870,992 795,794 1,643,737 2,439,531 86,206,826 86,206,826 1,877,522 795,794 87,850,563 90,523,879 221 SUPPLEMENTAL SCHEDULES 212 222 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of General Long -Term Debt Long -Term Debt Payable by Governmental Funds December 31, 2020 See Following Page 213 223 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of General Long -Term Debt Long -Term Debt Payable by Governmental Funds December 31, 2020 General General General General General General General Obligation Obligation Obligation Obligation Obligation Obligation Obligation Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of 2012 2013 2014 2016 2016A 2017 2018A AMOUNTS TO BE PROVIDED FOR THE RETIREMENT OF GENERAL LONG- TERM DEBT $ 1,745,000 9,245,000 3,355,000 3,065,000 8,860,000 4,815,000 7,060,000 GENERAL LONG-TERM DEBT PAYABLE General Obligation Bonds Payable $ 1,745,000 9,245,000 3,355,000 3,065,000 8,860,000 4,815,000 7,060,000 Business District Limited Tax Note Payable Compensated Absences Payable Net Pension Liability - IMRF Net Pension Liability - Police Pension Net Pension Liability - Firefighters' Pension Total OPEB Liability - RBP Unamortized Bond Premium Totals 1,745,000 9,245,000 3,355,000 3,065,000 8,860,000 4,815,000 7,060,000 214 224 General General Business Net Net Net Obligation Obligation District Pension Pension Pension Total Unamortized Bonds of Bonds of Limited Tax Compensated Liability Liability Liability OPEB Bond 2018B 2019B Note Absences IMRF Police Firefighters Liability Premiums Totals 37,585,000 7,725,000 35,905,176 4,225,113 4,140,549 37,487,635 32,549,685 13,608,837 2,691,970 214,063,965 37,585,000 7,725,000 83,455,000 — — 35,905,176 — — — — — — 35,905,176 — 4,225,113 — — — — — 4,225,113 — 4,140,549 — — — — 4,140,549 — 37,487,635 — — — 37,487,635 — 32,549,685 — — 32,549,685 — 13,608,837 — 13,608,837 2,691,970 2,691,970 37,585,000 7,725,000 35,905,176 4,225,113 4,140,549 37,487,635 32,549,685 13,608,837 2,691,970 214,063,965 215 225 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2012 December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at January 3, 2012 December 1, 2022 $2,975,000 $5,000 3.10% June 1 and December 1 December 1 JP Morgan Chase CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 2021 $ 860,000 54,096 914,096 2021 27,048 2021 27,048 2022 885,000 27,436 912,436 2022 13,718 2022 13,718 1,745,000 81,532 1,826,532 40,766 40,766 216 226 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2013 December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at September 10, 2013 December 1, 2033 $9,800,000 $5,000 3.000% to 4.125% June 1 and December 1 December 1 The Bank of New York Mellon Trust Company CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 2021 $ 570,000 353,306 923,306 2021 176,653 2021 176,653 2022 585,000 336,206 921,206 2022 168,103 2022 168,103 2023 605,000 318,656 923,656 2023 159,328 2023 159,328 2024 625,000 300,506 925,506 2024 150,253 2024 150,253 2025 650,000 275,506 925,506 2025 137,753 2025 137,753 2026 675,000 249,506 924,506 2026 124,753 2026 124,753 2027 700,000 222,506 922,506 2027 111,253 2027 111,253 2028 730,000 194,506 924,506 2028 97,253 2028 97,253 2029 760,000 165,307 925,307 2029 82,653 2029 82,654 2030 790,000 134,907 924,907 2030 67,453 2030 67,454 2031 820,000 103,307 923,307 2031 51,653 2031 51,654 2032 850,000 70,507 920,507 2032 35,253 2032 35,254 2033 885,000 36,507 921,507 2033 18,253 2033 18,254 9,245,000 2,761,233 12,006,233 1,380,614 1,380,619 217 227 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2014 December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at February 4, 2014 December 1, 2023 $6,290,000 $5,000 3.00% June 1 and December 1 December 1 The Bank of New York Mellon Trust Company CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year Principal Requirements Interest Totals Jun.l Interest Due On Amount Dec.l Amount 2021 $ 965,000 100,650 1,065,650 2021 50,325 2021 50,325 2022 1,125,000 71,700 1,196,700 2022 35,850 2022 35,850 2023 1,265,000 37,950 1,302,950 2023 18,975 2023 18,975 3,355,000 210,300 3,565,300 105,150 105,150 218 228 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Refunding Bonds of 2016 December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at September 8, 2016 December 1, 2022 $8,735,000 $5,000 2.00% to 3.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Year Principal Interest Totals 2021 $ 1,515,000 61,300 1,576,300 2022 1,550,000 31,000 1,581,000 3,065,000 92,300 3,157,300 Interest Due On Jun.l Amount Dec.l Amount 2021 30,650 2021 30,650 2022 15,500 2022 15,500 46,150 46,150 219 229 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Refunding Bonds of 2016A December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at December 1, 2016 December 1, 2028 $9,100,000 $5,000 3.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year Principal Requirements Interest Totals Jun.l Interest Due On Amount Dec.l Amount 2021 $ - 265,800 265,800 2021 132,900 2021 132,900 2022 - 265,800 265,800 2022 132,900 2022 132,900 2023 515,000 265,800 780,800 2023 132,900 2023 132,900 2024 1,060,000 250,350 1,310,350 2024 125,175 2024 125,175 2025 1,740,000 218,550 1,958,550 2025 109,275 2025 109,275 2026 1,795,000 166,350 1,961,350 2026 83,175 2026 83,175 2027 1,845,000 112,500 1,957,500 2027 56,250 2027 56,250 2028 1,905,000 57,150 1,962,150 2028 28,575 2028 28,575 8,860,000 1,602,300 10,462,300 801,150 801,150 220 230 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2017 December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at December 20, 2017 December 1, 2037 $9,740,000 $5,000 2.50% to 4.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.l Amount 2021 $ 290,000 309,900 599,900 2021 154,950 2021 154,950 2022 315,000 298,300 613,300 2022 149,150 2022 149,150 2023 345,000 285,700 630,700 2023 142,850 2023 142,850 2024 375,000 271,900 646,900 2024 135,950 2024 135,950 2025 405,000 256,900 661,900 2025 128,450 2025 128,450 2026 440,000 240,700 680,700 2026 120,350 2026 120,350 2027 465,000 227,500 692,500 2027 113,750 2027 113,750 2028 500,000 215,876 715,876 2028 107,938 2028 107,938 2029 530,000 202,750 732,750 2029 101,375 2029 101,375 2030 565,000 188,174 753,174 2030 94,087 2030 94,087 2031 600,000 171,932 771,932 2031 85,966 2031 85,966 2032 640,000 147,932 787,932 2032 73,966 2032 73,966 2033 690,000 122,332 812,332 2033 61,166 2033 61,166 2034 730,000 100,770 830,770 2034 50,385 2034 50,385 2035 775,000 77,956 852,956 2035 38,978 2035 38,978 2036 820,000 53,738 873,738 2036 26,869 2036 26,869 2037 865,000 28,112 893,112 2037 14,056 2037 14,056 9,350,000 3,200,472 12,550,472 4,815,000 Governmental Activities 4,535,000 Business -Type Activities 9,350,000 1,600,236 1,600,236 221 231 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2018A December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at May 1, 2018 December 1, 2037 $11,950,000 $5,000 3.25% to 5.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.l Amount 2021 $ 315,000 448,118 763,118 2021 224,059 2021 224,059 2022 355,000 432,368 787,368 2022 216,184 2022 216,184 2023 385,000 414,618 799,618 2023 207,309 2023 207,309 2024 425,000 395,368 820,368 2024 197,684 2024 197,684 2025 470,000 374,118 844,118 2025 187,059 2025 187,059 2026 520,000 350,618 870,618 2026 175,309 2026 175,309 2027 565,000 324,618 889,618 2027 162,309 2027 162,309 2028 610,000 302,018 912,018 2028 151,009 2028 151,009 2029 655,000 277,618 932,618 2029 138,809 2029 138,809 2030 710,000 251,418 961,418 2030 125,709 2030 125,709 2031 765,000 223,018 988,018 2031 111,509 2031 111,509 2032 815,000 198,156 1,013,156 2032 99,078 2032 99,078 2033 870,000 171,668 1,041,668 2033 85,834 2033 85,834 2034 925,000 141,220 1,066,220 2034 70,610 2034 70,610 2035 985,000 108,844 1,093,844 2035 54,422 2035 54,422 2036 1,050,000 75,600 1,125,600 2036 37,800 2036 37,800 2037 1,110,000 38,850 1,148,850 2037 19,425 2037 19,425 11,530,000 4,528,236 16,058,236 7,060,000 Governmental Activities 4,470,000 Business -Type Activities 11,530,000 2,264,118 2,264,118 222 232 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2018B December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at October 16, 2018 December 1, 2043 $38,440,000 $5,000 3.625% to 5.000% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 2021 $ 360,000 1,586,750 1,946,750 2021 793,375 2021 793,375 2022 - 1,568,750 1,568,750 2022 784,375 2022 784,375 2023 - 1,568,750 1,568,750 2023 784,375 2023 784,375 2024 770,000 1,568,750 2,338,750 2024 784,375 2024 784,375 2025 155,000 1,530,250 1,685,250 2025 765,125 2025 765,125 2026 160,000 1,522,500 1,682,500 2026 761,250 2026 761,250 2027 165,000 1,514,500 1,679,500 2027 757,250 2027 757,250 2028 175,000 1,506,250 1,681,250 2028 753,125 2028 753,125 2029 1,645,000 1,497,500 3,142,500 2029 748,750 2029 748,750 2030 1,820,000 1,415,250 3,235,250 2030 707,625 2030 707,625 2031 1,910,000 1,324,250 3,234,250 2031 662,125 2031 662,125 2032 2,005,000 1,228,750 3,233,750 2032 614,375 2032 614,375 2033 2,105,000 1,128,500 3,233,500 2033 564,250 2033 564,250 2034 2,210,000 1,023,250 3,233,250 2034 511,625 2034 511,625 2035 2,295,000 943,138 3,238,138 2035 471,569 2035 471,569 2036 2,380,000 857,075 3,237,075 2036 428,538 2036 428,537 2037 2,470,000 767,825 3,237,825 2037 383,913 2037 383,912 2038 2,560,000 675,200 3,235,200 2038 337,600 2038 337,600 2039 2,660,000 576,000 3,236,000 2039 288,000 2039 288,000 2040 2,765,000 469,600 3,234,600 2040 234,800 2040 234,800 2041 2,875,000 359,000 3,234,000 2041 179,500 2041 179,500 2042 2,990,000 244,000 3,234,000 2042 122,000 2042 122,000 2043 3,110,000 124,400 3,234,400 2043 62,200 2043 62,200 37,585,000 25,000,238 62,585,238 12,500,120 12,500,118 223 233 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2019A December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at June 3, 2019 December 1, 2039 $9,600,000 $5,000 2.00% to 5.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.l Amount 2021 $ 240,000 337,800 577,800 2021 168,900 2021 168,900 2022 265,000 325,800 590,800 2022 162,900 2022 162,900 2023 290,000 312,550 602,550 2023 156,275 2023 156,275 2024 315,000 298,050 613,050 2024 149,025 2024 149,025 2025 345,000 282,300 627,300 2025 141,150 2025 141,150 2026 375,000 265,050 640,050 2026 132,525 2026 132,525 2027 405,000 246,300 651,300 2027 123,150 2027 123,150 2028 435,000 230,100 665,100 2028 115,050 2028 115,050 2029 465,000 212,700 677,700 2029 106,350 2029 106,350 2030 495,000 194,100 689,100 2030 97,050 2030 97,050 2031 525,000 179,250 704,250 2031 89,625 2031 89,625 2032 555,000 163,500 718,500 2032 81,750 2032 81,750 2033 585,000 146,850 731,850 2033 73,425 2033 73,425 2034 620,000 129,300 749,300 2034 64,650 2034 64,650 2035 655,000 110,700 765,700 2035 55,350 2035 55,350 2036 685,000 91,050 776,050 2036 45,525 2036 45,525 2037 725,000 70,500 795,500 2037 35,250 2037 35,250 2038 760,000 48,750 808,750 2038 24,375 2038 24,375 2039 800,000 25,000 825,000 2039 12,500 2039 12,500 9,540,000 3,669,650 13,209,650 1,834,825 1,834,825 224 234 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2019B December 31, 2020 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at November 25, 2019 December 1, 2039 $7,725,000 $5,000 3.00% to 5.00% June 1 and December 1 December 1 Zions Bancorporation CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.l Amount 2021 $ - 265,350 265,350 2021 132,675 2021 132,675 2022 - 265,350 265,350 2022 132,675 2022 132,675 2023 210,000 265,350 475,350 2023 132,675 2023 132,675 2024 235,000 254,850 489,850 2024 127,425 2024 127,425 2025 260,000 243,100 503,100 2025 121,550 2025 121,550 2026 290,000 230,100 520,100 2026 115,050 2026 115,050 2027 320,000 215,600 535,600 2027 107,800 2027 107,800 2028 350,000 199,600 549,600 2028 99,800 2028 99,800 2029 380,000 185,600 565,600 2029 92,800 2029 92,800 2030 415,000 170,400 585,400 2030 85,200 2030 85,200 2031 445,000 157,950 602,950 2031 78,975 2031 78,975 2032 475,000 144,600 619,600 2032 72,300 2032 72,300 2033 510,000 130,350 640,350 2033 65,175 2033 65,175 2034 545,000 115,050 660,050 2034 57,525 2034 57,525 2035 580,000 98,700 678,700 2035 49,350 2035 49,350 2036 615,000 81,300 696,300 2036 40,650 2036 40,650 2037 655,000 62,850 717,850 2037 31,425 2037 31,425 2038 700,000 43,200 743,200 2038 21,600 2038 21,600 2039 740,000 22,200 762,200 2039 11,100 2039 11,100 7,725,000 3,151,500 10,876,500 1,575,750 1,564,650 225 235 STATISTICAL SECTION (Unaudited) This part of the 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. 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. Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue sources. Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the government's ability to issue additional debt in the future. 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. 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. 226 236 VILLAGE OF MOUNT PROSPECT, ILLINOIS Net Position by Component - Last Ten Fiscal Years December 31, 2020 (Unaudited) See Following Page 227 237 VILLAGE OF MOUNT PROSPECT, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2020 (Unaudited) Governmental Activities Net Investment in Capital Assets Restricted Unrestricted Total Governmental Activities Net Position Business -Type Activities Net Investment in Capital Assets Unrestricted Total Business -Type Activities Net Position Primary Government Net Investment in Capital Assets Restricted Unrestricted Total Primary Government Net Position Data Source: Audited Financial Statements 2011 2012 2013 $ 53,524,378 48,521,357 48,152,760 2,828,903 3,547,328 3,045,922 20,019,184 24,952,139 24,153,907 76,372,465 77,020,824 75,352,589 26,892,474 26,566,375 26,352,289 5,167,986 6,820,901 8,057,996 32,060,460 33,387,276 34,410,285 80,416,852 2,828,903 25,187,170 75,087,732 3,547,328 31,773,040 74,505,049 3,045,922 32,211,903 108,432,925 110,408,100 109,762,874 (1) The unrestricted net position decreased in 2014 due to the recognition of the business district limited tax note payable. (2) The Village implemented GASB Statement No. 68 in fiscal year 2015. (3) The Village implemented GASB Statement No. 75 for fiscal year 2018. * Accrual Basis of Accounting 228 238 2014(l) 2015 (2) 2016 2017 2018 (3) 2019 2020 46,326,047 43,755,661 33,224,875 34,171,129 30,192,091 31,568,036 26,448,689 4,186,505 5,319,794 4,557,424 4,104,560 7,065,413 8,691,355 5,811,511 (10,441,020) (99,563,419) (91,778,462) (95,150,426) (107,779,949) (107,707,787) (90,600,371) 40,071,532 (50,487,964) (53,996,163) (56,874,737) (70,522,445) (67,448,396) (58,340,171) 26,854,967 36,336,899 36,588,628 35,765,755 32,472,358 33,196,889 20,547,932 7,734,851 5,580,049 4,610,400 6,266,907 8,411,004 5,924,760 17,346,891 34,589,818 41,916,948 41,199,028 42,032,662 40,883,362 39,121,649 37,894,823 73,181,014 80,092,560 69,813,503 69,936,884 62,664,449 64,764,925 46,996,621 4,186,505 5,319,794 4,557,424 4,104,560 7,065,413 8,691,355 5,811,511 (2,706,169) (93,983,370) (87,168,062) (88,883,519) (99,368,945) (101,783,027) (73,253,480) 74,661,350 (8,571,016) (12,797,135) (14,842,075) (29,639,083) (28,326,747) (20,445,348) 229 239 ifs O m o0 N N r O N N O` U1 f� lD O O rn lD lD l0 - Vl Oo m O l� 01 N l� ^ r• oC V'1 l� 00 N 01 V1 M O l` m o0 C, O O O1 oo--i 00 O x 7 O1 In 't i Vl In Nn oC M N N x Nx It N � F a oo x oo �� N N m N o N 'n N N Ln N to to 't Cl m^ v m o x o ty N- N ^-� vi l0 W 4 CL L In M l- U1 N 00 O l� Vi O1 lC lC m O Vl O V1 V1 M M lC h � Vl 01 l- d, m 7 N x O O1 01 m N N h �_ N h l0 N l� CO l� l0 V'1 l� W O M V l� V1 l0 7 M 't I n N Vl l� 1p 00 �n M N 01 N N V Vl O lC Vl G1 M U C7 M M V1 'n O M l0 V1 l0 Vr N h N N lC V1 l� O N N O h^ O m7 M � �n m m l0 l� lC N 7 O N N l� m� N x r N N x N 7 O oo M h Ol 7 M oo l0 l� O oo N 7 01 l� V1 00 lO V1 M 110 In M l0 O V Vl N M N M V ,--i t V1 O1 M^ x M m: N l� M O N In x C`, m: V N^ V l� M ,- - O O M N M lC dl lD ^ 00 O, M N U1 ^ l0 M l0 M V1 O lO O N N M 't .-y M N O1 O N M V1 rte: oo N l0 O oo In v'1 a1 dl N In a1 In r In to O< O 'O 7 O1 [- m t` lD r O1 N x O O ' m 01 m O O C1 cl O V N O ^i N a, m O1 l0 ^� 7 v� Cl 7 w 41 01 a1 01 N m m In O 'It O1 O1 O O a1 lD 't v1 �t Oo c Q\ ^ l- Cl 1n M 't O l0 l� o0 N lr V ^� Vl _O ^ l0 10 N N 7 l� �n N 7 l0 Ol l- V t` N oc h N Nn m O 7 < l� < V �n O x m m O In 01 M M x lG m r- N h vIn V1 m Vl l0 x l� l0 CO V1 Q1 CO l0 1 v1 1p v1 o �n N 7 7 l� al 00 7 N x 7 N vi 7 7 7 7 N N In In ^ O to v o 00 oc N 'n O c �n to In v 00 V1 N V lD OO N O1 01 N � d> l� O DD Vl 01 OC � � N V lC a1 M GO l� OG M O O M N 00 � l0 l� N cn r- 7 Vn O1 x 01 01 01 Co l� N d, 7 N O1 lD n N O_ n Co O 7 n n N[ O OO1 V ^� N O M V .� m ,- r- oo .� MN M l� N--� l� m ^ M V O` W x lO O V) N 01 V CO M O 01 m ' Vl V1 DD O1 .-y M W ol� N O N O o0 N N JD 10 h l0 ^ O O, oG M l0 l0 o0 Vr 't o0 m O1 .-� lD x l- n 7 lr V1 DC V ^� M l� Vl �_ x � O 00 � In O M N � Q1 O x lO V ll O1 �n N M N 7 V1 N h O1 0c � �--i M N N 11 \c ^i N N .-- lO •-. l� � rY M M N Jc M x N n r - h O Ol O M m �F M -- l0 l0 l� V1 rq O l0 Cl lfl 01 l- lO N O N lC oo 01 N M V m l- Ol lC m 01 �n V1 M 00 N l0 O� V N M O V1 M M v1 O O O M N ^ o0 O1 O l� d, N ^ m r- V1 lO N M l� l� O �--i O1 O1 l0 Q, N O N lD o0 n - n 01 N ^ 'n ^ p h c M N1 W O1 O1 l O W MV1 O W �n 01 O O 7 0 0 O O1 O N \O V 1p O M M 7 a m^ x M; v lc N N o 0o M S O ^� cl ^ r o 4, N M: Cl l- •--i l- M V1 W N C O ". N O " � lC f� cF Oo oo --i O N 'V [� m N 22 lC 0 N O M N E W 4 CL L U tj '> N � d � U C7 , F ° C7 C� CG C cC63 cG �+ _, 7G C y X711 ,s:i c3 Y6 c6 v' bA N y a 0 N O M N TM, IV N C�= =�I�N�11 O a K •� M �G 17 N V7 m 00 M C\ x ,--i x x Q` O N M Q\ Q\ M ul N V Vt N ^� N m Cl r` x r` a; N O vi 'n N �C Q`• M Vl V ul V1 ^� ^� ^� N 0 n�,Nt C o ov Nod � 7 NC� x V7 ul N O r` O 00 M C1 -- N ovG�oN � aya, l0 C'4 C, C, (14 �c O C, M' M M x x C\ 't --� x M n M of a\ x Io M \G NIn M r- 00 l-- M 'll: M n N M M O M In M r M N ^ 1-0C', pa1 `:1 x N 7 `✓ C� Y1 �� M I x �n C I m N CA O x N M M 01 M M M .N.i G` M In In C` C1 M G1 p r` �c 00 cl m �Y �D Vl M Q`• V In M V1 �r �� �p o O ,may In d, �J x x M O D1 N D1 N M� x M In N M N N10om o ^ - G V G vNrnrJo �N ovN In x M O x [- C\ V N x x n x n C C` M In 0 N N r In Mo 7 M U V: -z O r` M 2 x V( O O � N O T x 41 � GCi d G1 C � ry l 't N r t ^ N i% M N m oc N O 'n M -- , m C� �C � C1 7 m m N V7 V7 N Go N V O O In n U fir C � CI o z c '� C Q r U -d -o . c F Q CG aE c v° > H U V W n" Z ac > Q 1 in, >> CA cA f� Vl r O O O x C M M �Ci ul —d M r` r r In Mo 7 M U V: -z O r` M 2 x V( O O � N O T x 41 � GCi d G1 C � ry l 't N r t ^ N i% M N m oc N O 'n M -- , m C� �C � C1 7 m m N V7 V7 N Go N V O O In n U fir C � CI o z c '� C Q r U -d -o . c F Q CG aE c v° > H U V W n" Z ac > Q 1 in, >> CA cA VILLAGE OF MOUNT PROSPECT, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2020 (Unaudited) 2011 2012 2013 General Fund Nonspendable $ 100,590 98,150 297,762 Committed Unassigned 10,704,282 11,466,179 11,580,820 Total General Fund 10,804,872 11,564,329 11,878,582 All Other Governmental Funds Nonspendable 147,130 144,114 132,464 Restricted 2,828,903 3,625,715 3,166,583 Committed Assigned 3,564,914 7,525,930 15,705,506 Unassigned (5,578) (664) (689) Total of All Other Governmental Funds 6,535,369 11,295,095 19,003,864 Total of General Funds and All Other Governmental Funds 17,340,241 22,859,424 30,882,446 Data Source: Audited Financial Statements *Modified Accrual Basis of Accounting 232 242 2014 2015 2016 2017 2018 2019 2020 337,165 204,023 188,247 261,219 220,065 370,162 381,902 3,393,000 2,300,000 12,508,457 17,016,920 18,496,104 19,137,752 22,837,502 22,914,986 23,492,469 108,495 13,941,797 12,845,622 17,220,943 18,684,351 19,398,971 23,057,567 26,678,148 26,174,371 147,412 107,609 96,771 83,232 74,703 100,288 108,495 13,941,797 5,212,985 4,557,424 8,919,560 39,339,578 28,845,580 6,071,511 934,034 7,371,630 3,679,129 3,224,446 3,579,214 7,182,152 7,245,942 7,150,936 (789) (448,034) (688,716) 21,460,050 8,551,689 7,189,925 12,582,006 46,596,433 36,191,810 14,264,976 34,305,672 25,772,632 25,874,276 31,980,977 69,654,000 62,869,958 40,439,347 233 243 VILLAGE OF MOUNT PROSPECT, ILLINOIS Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years* December 31, 2020 (Unaudited) Revenues Taxes Intergovernmental Licenses, Permits, and Fees Charges for Services Fines and Forfeitures Interest Other Reimbursements Miscellaneous Total Revenues Expenditures General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Disposal of Capital Assets Debt Issuance Premium on Debt Issuance Payment to Escrow Agent Transfers In Transfers Out Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures Data Source: Audited Financial Statements *Modified Accrual Basis of Accounting 2011 2012 2013 $ 29,217,203 30,485,689 31,088,445 18,895,261 18,862,827 21,103,909 3,356,816 3,657,586 3,589,368 3,974,677 4,417,110 4,408,987 548,993 403,036 430,960 23,103 36,491 16,751 406,118 629,892 1,167,196 56,422,171 58,492,631 61,805,616 5,284,168 5,827,275 7,452,147 26,992,535 28,022,943 29,233,562 7,681,534 7,734,185 9,094,846 4,286,754 4,405,184 4,457,548 1,902,841 1,909,062 1,868,952 346,068 399,366 435,931 7,274,213 4,761,739 8,588,414 1,377,700 1,479,732 1,537,312 1,057,464 959,812 913,882 56,203,277 55,499,298 63,582,594 218,894 2,993,333 (1,776,978) 5,160,000 5,475,000 9,800,000 (5,139,582) (2,949,150) — 80,089 — 239,977 (115,342) — (239,977) (14,835) 2,525,850 9,800,000 204,059 5,519,183 8,023,022 4.35% 4.40% 4.01% 234 244 2014 2015 2016 2017 2018 2019 2020 32,564,624 33,433,891 34,113,260 31,784,137 33,080,547 32,718,562 31,600,945 23,914,974 26,018,173 27,434,551 29,199,312 32,811,854 34,650,218 36,297,359 3,516,082 3,915,635 4,001,458 3,982,497 4,085,141 4,249,613 3,816,507 5,220,730 5,664,398 6,347,775 5,810,731 5,834,187 6,267,680 6,785,463 587,966 511,536 414,884 415,189 403,842 286,328 242,004 (46,495) 24,784 76,594 196,995 675,700 1,375,199 234,783 - - 35,000 19,824 112,429 31,204 - 983,623 656,877 549,816 592,352 1,660,393 621,494 2,089,687 66,741,504 70,225,294 72,973,338 72,001,037 78,664,093 80,200,298 81,066,748 7,050,018 7,598,649 9,435,601 10,060,904 9,566,297 9,384,171 8,044,415 30,706,685 30,350,270 32,512,612 34,279,062 36,287,527 36,783,615 37,584,244 8,291,698 7,744,122 8,148,696 8,762,136 9,658,459 10,456,537 10,576,961 4,590,027 4,589,156 4,585,572 4,500,280 4,835,310 4,849,613 4,793,171 1,865,265 1,961,516 1,994,918 1,953,055 1,798,458 1,676,723 1,824,289 421,517 467,611 499,208 585,907 572,169 388,375 166,740 12,075,460 20,998,508 10,718,553 5,786,667 15,245,784 26,616,871 33,239,574 2,987,587 3,048,912 3,243,840 3,518,904 3,671,871 3,787,500 4,015,000 1,914,718 1,799,590 2,017,192 1,378,256 2,484,885 3,409,229 3,253,348 69,902,975 78,558,334 73,156,192 70,825,171 84,120,760 97,352,634 103,497,742 (3,161,471) (8,333,040) (182,854) 1,175,866 (5,456,667) (17,152,336) (22,430,994) 3,423,226 (8,533,040) 101,643 6,106,701 37,673,023 (6,847,042) (22,430,611) 7.02% 6.20% 7.32% 6.99% 8.00% 9.60% 9.46% 235 245 646,600 383 6,290,000 - 17,835,000 4,815,000 45,500,000 7,725,000 - 294,697 - 1,022,839 115,835 1,783,506 394,075 - - - (18,573,342) - (4,153,816) - - - 81,599 1,637,926 600,000 2,354,391 3,709,981 5,188,000 - (281,599) (1,637,926) (600,000) (2,354,391) (2,170,362) (5,188,000) 6,584,697 (200,000) 284,497 4,930,835 43,129,690 10,305,294 383 3,423,226 (8,533,040) 101,643 6,106,701 37,673,023 (6,847,042) (22,430,611) 7.02% 6.20% 7.32% 6.99% 8.00% 9.60% 9.46% 235 245 VILLAGE OF MOUNT PROSPECT, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years December 31, 2020 (Unaudited) Tax Levy Year Residential Property Commercial Property Industrial Property Railroad Property 2010 $ 1,330,339,716 $ 332,297,825 $ 171,115,770 $ 927,196 2011 1,242,549,785 298,578,904 152,864,606 959,506 2012 1,141,783,464 281,197,939 145,136,294 656,385 2013 948,371,026 272,696,503 135,438,749 787,806 2014 989,619,882 285,736,126 114,184,895 836,775 2015 962,934,812 279,463,359 111,147,033 1,005,644 2016 1,191,992,297 304,999,806 121,128,843 1,037,906 2017 1,185,479,107 321,277,244 162,946,209 1,022,879 2018 1,171,019,649 326,069,226 171,888,945 1,095,851 2019 1,352,621,864 405,952,345 211,550,243 1,182,888 Data Source: Office of the Cook County Clerk Note: Property in the Village is reassessed every three years. Property is assessed at 33% of actual value. 236 246 Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value Estimated Actual Taxable Value as a Percentage of Actual Value $ 1,834,680,507 0.829 $ 5,504,041,521 33.333% 1,694,952,801 0.936 5,084,858,403 33.333% 1,568,774,082 1.051 4,706,322,246 33.333% 1,357,294,084 1.275 4,071,882,252 33.333% 1,390,377,678 1.276 4,171,133,034 33.333% 1,354,550,848 1.352 4,063,652,544 33.333% 1,619,158,852 1.157 4,857,476,556 33.333% 1,670,725,439 1.143 5,012,176,317 33.333% 1,670,073,671 1.142 5,010,221,013 33.333% 1,971,307,340 0.988 5,913,922,020 33.333% 237 247 0 o p N m_ o v u w a m p 0� 0� v m co o cc m r olj:" m r- o � 0 0 o V N N � N 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cl 0 o cA o O O 0c 7 O O oc O N N O N 0\ N 7 IC 0\ 01 W O O O IO \C Ol \O �c N 01 MM_ 7 O O 01 O �G Cl Ic �G _ 01 Ic 7 O M p O O N _U M N lD V O O M O O O O O O O O O O l0 V V1 O \O N O O O O O O O O O O O O O O O O O O O O O O N Cl O O M O 5 Cl \o O N N N_ M •--i 'O -. N N Vl Vt M M_ --� O\ n O_ M Vl cY 00 •-. o1 p v U _ Q cs a N O O O O O O O O O O O Cl O O O O O O O O O O N O O Cl M O T a cc M M O O M IO "o 00 M_ l— Cl- lD lc CY O_ l \D �c p O O N M M 1:. Vt O O V O > O O O O O O O O Vl V V "4 a, Vl N O O O O O O O N O O O O O O O O O O O O O O O N O O O N O vi O O O lO Cl N N a1 7 Vi l� •--� O_ cC V� O N --� --� m _ p O O N M M M GO v1 O O V O O O O O O O O O GO V 'V N � N O O O O O O O O O O O O O O O O O O O O O Cl N O O O M O co co O o1 O to a N l_ 0\ to co to ct N O O O O O O O O O O O O O O O O O O O O O O N O O O M O x IcN �_ O O O O O Vl n O •--i m Q1 c r -N_ O V� C` O1 N O_M_ oo lo �t 7 M O N h N O O O O O O O O O O O O O O O O O O O O O O N O O O M O N M l� D` O O --� •-. O M O It \O N Lf) 7 M N of O 14 O1 N M Vl 7 N N_ M r Lf)p v1 O O O lD v1 O O M O O O O O O O O O O M M v1 l0 Vl N O O O O O O O O O O O O O O O O Cl O O O O O N O O O N O M_ p cc vi l V N O O N M O CO O 7 O O N O O O— O O O O M, V V Vl N O O O O O Cl O O O O O O O O O O O O O O O O O N O O O N O p M O O O O U.J vl V O O N O O O O O O O O O O U� N V V N O O O O O O O O O O O O O O O O O O O O O O C) O O O N O co N oc M N V N � 0 C > 7fi L •cd i7 (� aOi •�bfiQ �"-. Bl Q CC 0 w .� 3 a Q W 5 0.) o s .o -o :a v U _ Q cs a o a s a m 0 o a a T a 3 � b °cn° -� U� a1 C7 a° u. P. C. o > � U U w° � F° F� F� C7 C7 L a2 "4 "4 N O co N oc M N a) IV N N 0 � a N a v p co � v Nv o o M av N �n t c i 0 t O M �n I� co O � �c vi al to r- O O O CO h N co O N N M, M O V O M V1 O c - N O V Ci 0 7 a O N �o CO CO oc dl ct Co o1 r N N M 41 O O O c_C Ol N N M O 7 � p R Cl cA O M Vl p c� O M a 0 4 q q q q 1Y �.o Vi O o ol o o p CG V � •--� l� V 41 V O M G, Vl N Q`. � no N N M O ° C7 y > w O .> � o 4 y o x o cu o o x y a e unun V� aV� V� Q a w: VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Property Tax Payers - Current Year and Nine Years Ago December 31, 2020 (Unaudited) 2020* 2011 Percentage Percentage of Total Village of Total Village Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value United Airlines, Inc. Home Properties Colony Randhurst Casto Conger CRP 3 West Central LLC Golf Plaza I & I1 1450 Owner LLC Mount Prospect Plaza Huntington Square LIT Industrial Limited Menards - Properties First Industrial Cummings Alison Corp KRCV Corp Totals 37,465,013 1 1.90 % 30,905,675 2 1.57 % 26,880,146 3 1.36 % 24,016,153 4 1.22% 10,127,700 21,647,130 5 1.10 % 20,064,238 6 1.02% 0.69 % 18,438,932 7 0.93 % 11,349,824 8 0.58 % 10,102,710 9 0.51 % 9,007,734 10 0.46 % 209,877,555 Data Source: Office of the Cook County Clerk 18,602,803 5 1.01 % 20,637,049 2 1.12% 23,016,992 1 1.25 % 19,086,949 4 1.04% 20,179,124 3 1.10% 10,127,700 8 0.55 % 9,913,217 9 0,54% 12,682,076 6 0.69 % 10,815,315 7 0.59 % 9,091,678 10 0.50% 10.65 % 154,152,903 8.39 % Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers contain multiple parcels and it is possible that some parcels and their valuations were overlooked. *Collections received in 2020 for 2019 Tax Year 240 250 VILLAGE OF MOUNT PROSPECT, ILLINOIS Property Tax Levies and Collections - Last Ten Fiscal Years December 31, 2020 (Unaudited) Taxes Collected within the Collections Tax Levied for Fiscal Year of the Levy in Total Collections to Date Fiscal Levy the Fiscal Percentage Subsequent Year Year Year Amount of Levy Years Amount 2011 2010 $ 15,194,635 $ 14,961,411 98.47% $ (84,290) $ 14,877,121 2012 2011 15,852,352 15,614,490 98.50% (40,575) 15,573,915 2013 2012 16,477,871 16,278,228 98.79% (90,053) 16,188,175 2014 2013 17,301,436 17,064,355 98.63% (47,227) 17,017,128 2015 2014 17,730,922 17,521,845 98.82% (99,898) 17,421,947 2016 2015 18,312,756 18,130,372 99.00% (181,979) 17,948,393 2017 2016 18,727,305 18,534,114 98.97% (149,100) 18,385,014 2018 2017 19,087,264 18,865,586 98.84% (60,588) 18,804,998 2019 2018 19,087,266 18,710,515 98.03% (1,581) 18,708,934 2020 2019 19,469,004 19,187,932 98.56% — 19,187,932 Data Source: Office of the County Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value Percentage of Levy 97.91% 98.24% 98.24% 98.36% 98.26% 98.01% 98.17% 98.52% 98.02% 98.56% Other Information: The Statement requires that the information in this schedule be shown for each period for which levied and should be consistent with the periods shown in the schedule of direct and overlapping revenue rates and schedule of direct and overlapping property tax rates. Therefore, most Illinois governments should disclose this by the tax levy year, not the fiscal year. 241 251 VILLAGE OF MOUNT PROSPECT, ILLINOIS Sales Taxes by Category - Last Ten Fiscal Years December 31, 2020 (Unaudited) General Merchandise Food Drinking and Eating Places Apparel Furniture and H.H., and Radio Lumber, Building Hardware Automobile and Filling Stations Drugs and Miscellaneous Retail Agriculture and All Others Manufacturers Totals Village Direct Sales Tax Rate Number of Taxpayers Data Source: Illinois Department of Revenue 2011 2012 2013 $ 946,021 1,186,217 1,171,772 895,984 862,501 876,288 596,008 661,285 764,653 216,301 118,034 149,317 237,392 255,967 240,289 683,905 670,057 750,191 1,585,870 1,681,146 1,508,700 3,393,072 3,422,046 4,081,740 1,924,871 2,073,141 2,616,771 135,019 110,009 182,433 10,614,443 11,040,403 12,342,154 1.00% 1.00% 1.00% 839 861 883 Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Excludes Home Rules Tax portion. 242 252 2014 2015 2016 2017 2018 2019 2020 1,135,237 1,112,640 1,114,510 1,082,424 1,086,859 992,680 863,330 891,855 949,277 951,863 877,665 856,379 884,898 985,767 778,314 825,994 884,477 879,654 937,398 997,318 870,374 163,857 162,116 163,438 157,354 140,366 172,171 145,070 221,977 220,663 209,712 202,302 210,670 197,569 160,490 756,113 791,285 821,872 846,376 913,446 965,237 1,095,425 1,578,004 1,540,910 1,492,452 1,676,338 1,816,029 1,942,864 1,951,579 4,574,353 5,460,292 6,594,754 8,965,486 13,018,288 13,336,938 14,089,151 2,802,361 3,629,675 3,611,295 3,649,578 3,751,156 3,788,000 1,629,707 383,370 433,798 500,200 184,759 95,752 101,939 131,654 13,285,441 15,126,650 16,344,573 18,521,936 22,826,343 23,379,614 21,922,547 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 899 997 987 1,102 1,078 1,040 987 243 253 VILLAGE OF MOUNT PROSPECT, ILLINOIS Business District Sales Taxes by Category - Last Ten Fiscal Years December 31, 2020 (Unaudited) General Merchandise Food Drinking and Eating Places Apparel Furniture, H.H., and Radio Lumber, Building Hardware Automobile and Filling Stations Drugs and Miscellaneous Retail Agriculture and All Others Manufacturers Total Village Direct Sales Tax Rate Data Source: Illinois Department of Revenue 2011 2012* 2013* $ — 89,393 88,289 — 18,898 19,146 — 29,413 40,954 — 16,341 15,594 — 16,287 17,106 — 90,668 101,338 — 17,747 29,896 — 4,959 5,203 283,706 317,526 0.00% 0.25% 0.25% Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. *Amount reported net of IDOR 2% compliance administration and enforcement charge. 244 254 2014* 2015* 2016* 2017* 2018* 2019* 2020* 85,937 84,364 82,142 76,426 62,848 28,214 19,626 20,989 20,747 21,846 20,186 20,417 18,526 21,501 48,185 51,419 54,393 51,629 50,063 53,476 36,543 19,302 19,963 21,716 20,126 18,060 22,600 12,802 16,461 16,088 15,551 14,438 12,976 12,336 3,661 104,434 107,339 108,480 109,058 112,957 115,524 126,618 32,071 37,063 31,889 25,843 31,732 29,430 26,739 4,554 5,057 5,323 5,230 6,372 7,101 2,566 331,933 342,040 341,340 322,936 315,425 287,207 250,056 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 245 255 VILLAGE OF MOUNT PROSPECT, ILLINOIS Home Rule Sales Taxes by Category - Last Ten Fiscal Years December 31, 2020 (Unaudited) Total Number of Taxpayers Village Home Rule Sales Tax Rate Data Source: Illinois Department of Revenue 4,777,798 4,828,807 5,138,635 839 861 883 1.00% 1.00% 1.00% Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Interest income included in warrants is not reflected in this schedule. *Excluding additional allocations received (excluded from IDOR online report) **Amount reported net of IDOR compliance administration and enforcement charge. 246 256 2011 2012* 2013* General Merchandise $ 749,509 900,240 885,410 Food 254,207 238,050 240,013 Drinking and Eating Places 592,596 656,376 754,898 Apparel 153,487 117,928 148,991 Furniture and H.H. and Radio 232,711 251,253 235,936 Lumber, Building Hardware 680,356 665,891 743,492 Automobile and Filling Stations 891,042 922,948 948,339 Drugs and Miscellaneous Retail 432,639 454,001 509,608 Agriculture and All Others 659,611 514,937 492,238 Manufacturers 131,640 107,183 179,710 Total Number of Taxpayers Village Home Rule Sales Tax Rate Data Source: Illinois Department of Revenue 4,777,798 4,828,807 5,138,635 839 861 883 1.00% 1.00% 1.00% Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Interest income included in warrants is not reflected in this schedule. *Excluding additional allocations received (excluded from IDOR online report) **Amount reported net of IDOR compliance administration and enforcement charge. 246 256 2014* 2015* 2016* 2017*/** 2018*/** 2019*/** 2020*/** 864,254 861,799 858,739 822,252 806,891 675,585 577,971 234,082 249,683 246,759 231,474 238,527 249,420 268,755 766,264 808,304 862,052 831,312 852,731 913,754 764,116 163,487 161,630 162,986 154,603 137,624 169,061 142,434 218,184 217,031 206,542 196,588 204,642 192,307 157,506 752,301 787,000 817,396 828,391 891,206 942,053 1,068,093 956,255 893,301 831,269 937,688 1,029,522 1,031,563 924,782 508,772 488,963 439,702 473,116 517,588 533,057 754,906 550,929 548,380 623,624 702,386 667,655 611,860 528,437 380,685 431,129 497,623 179,655 91,683 97,836 126,659 5,395,213 5,447,220 5,546,692 5,357,465 5,438,069 5,416,496 5,313,659 889 997 987 1,102 1,078 1,040 987 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 247 257 VILLAGE OF MOUNT PROSPECT, ILLINOIS Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years December 31, 2020 (Unaudited) Data Source: State of Tllinois *Business district is assessed additional 0.25% sales tax. 248 258 Regional Village Fiscal State County Transportation Direct Year Tax Rate Authority Rate Total 2011 5.00% 1.50% 1.00% 1.00% 9.50% 2012* 5.00% 1.25% 1.00% 1.00% 9.25% 2013* 5.00% 1.00% 1.00% 1.00% 9.00% 2014* 5.00% 1.00% 1.00% 1.00% 9.00% 2015* 5.00% 1.00% 1.00% 1.00% 9.00% 2016* 5.00% 2.00% 1.00% 1.00% 10.00% 2017* 5.00% 2.00% 1.00% 1.00% 10.00% 2018* 5.00% 2.00% 1.00% 1.00% 10.00% 2019* 5.00% 2.00% 1.00% 1.00% 10.00% 2020* 5.00% 2.00% 1.00% 1.00% 10.00% Data Source: State of Tllinois *Business district is assessed additional 0.25% sales tax. 248 258 VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2020 (Unaudited) Data Source: Audited Financial (1) The Village entered into five installment contracts with the Illinois Environmental Protection Agency to provide funds for the construction of flood control projects. The contracts are for a 20 -year period with equal semiannual installments. Only one of the five original loans remain outstanding. (2) The Village entered into an installment note to provide funding for the construction of certain flood control projects. The loan is payable in annual installments over a seven-year period. (3) See the schedule of Demographic and Economic Information for personal income and population data. Note: Details of the Village's outstanding debt can be found in the notes to financial statements. 249 259 Business -Type Governmental Activities Activities Business Percentage Fiscal General IEPA District General Total of Year Obligation Loan Installment Limited Tax Obligation Primary Personal Per Ended Bonds Payable (1) Note (2) Note Payable Bonds Government Income (3) Capita (3) 2011 $ 23,630,000 $ 2,256,556 $ — $ — $ —S 25,886,556 1.44%S 478 2012 22,790,000 1,706,824 2,500,000 26,996,824 1.50% 498 2013 31,645,000 1,139,512 2,475,000 30,451,305 — 65,710,817 3.65% 1,213 2014 48,433,628 721,927 2,340,000 31,514,427 — 83,009,982 4.61% 1,532 2015 45,927,931 543,015 1,940,000 31,790,140 — 80,201,086 4.46% 1,481 2016 43,905,073 359,175 1,525,000 31,767,253 — 77,556,501 4.31% 1,432 2017 45,784,843 170,271 1,105,000 32,525,273 5,063,964 84,649,351 4.71% 1,563 2018 85,737,998 57,500 590,000 33,908,830 9,827,936 130,122,264 7.23% 2,402 2019 90,476,575 35,329,187 19,567,083 145,372,845 8.08% 2,684 2020 86,146,970 35,905,176 19,206,498 141,258,644 6.50% 2,587 Data Source: Audited Financial (1) The Village entered into five installment contracts with the Illinois Environmental Protection Agency to provide funds for the construction of flood control projects. The contracts are for a 20 -year period with equal semiannual installments. Only one of the five original loans remain outstanding. (2) The Village entered into an installment note to provide funding for the construction of certain flood control projects. The loan is payable in annual installments over a seven-year period. (3) See the schedule of Demographic and Economic Information for personal income and population data. Note: Details of the Village's outstanding debt can be found in the notes to financial statements. 249 259 VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years December 31, 2020 (Unaudited) Fiscal Year General Obligation Bonds Less Amounts Available in Debt Service Fund Total Percentage of Total Taxable Assessed Value of Property (1) Per Capita (2) 2011 $ 23,630,000 $ 131,372 $ 23,498,628 0.43% $ 433.82 2012 22,790,000 135,817 22,654,183 0.45% 418.23 2013 31,645,000 121,491 31,523,509 0.67% 581.97 2014 48,433,628 131,635 48,301,993 1.19% 891.72 2015 45,927,931 154,206 45,773,725 1.10% 845.05 2016 43,905,073 168,152 43,736,921 1.08% 807.45 2017 50,848,807 184,195 50,664,612 1.04% 935.34 2018 95,565,934 2,546,115 93,019,819 1.86% 1,717.28 2019 110,043,658 1,850,968 108,192,690 2.16% 1,997.39 2020 105,353,468 1,261,124 104,092,344 1.76% 1,906.31 Data Sources: Audited financial statements and Office of the County Cleric (1) See the schedule of Assessed Value and Actual Value of Taxable Property for property value data. (2) See the schedule of Demographic and Economic Information for personal income and population data. Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements. 250 260 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Direct and Overlapping Governmental Activities Debt December 31, 2020 (Unaudited) Governmental Unit (1) Gross Debt (2) Percentage Debt Applicable to the Village of Mount Prospect (3) Village of Mount Prospect Share of Debt Village of Mount Prospect $ 122,052,146 100.00% $ 122,052,146 County of Cook 2,803,851,750 1.18% 33,169,566 Forest Preserve District of Cook County 94,325,000 1.18% 1,115,865 Metropolitan Water Reclamation District 1,799,425,000 1.20% 21,665,077 Community College District #535 30,000,000 0.02% 4,500 Community College District 9512 103,580,000 9.86% 10,211,952 School District #214 33,010,000 19.66% 6,488,776 School District #207 128,780,000 0.07% 91,434 School District #57 6,450,000 94.34% 6,085,059 School District #26 12,870,000 78.43% 10,094,070 School District #25 42,710,000 2.61% 1,115,585 School District #23 8,705,000 8.72% 758,989 School District #21 87,650,000 3.01% 2,633,883 School District #59 32,355,000 18.32% 5,927,436 Arlington Heights Park District 13,149,000 1.87% 246,412 Des Plaines Park District 7,463,685 1.70% 127,181 Mount Prospect Park District 18,565,668 69.15% 12,838,531 Total Overlapping Debt 5,222,890,103 112,574,316 Total Direct and Overlapping Debt 5,344,942,249 234,626,462 Data Source: Governmental units and the percentage of overlapping debt from the County Clerk's office. Gross debt of the overlapping governmental units obtained from CAFR's on file with the Cook County Treasurer's Office. (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 2018 assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village. (3) Amount in column (2) multiplied by amount in column (1). 251 261 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Legal Debt Margin December 31, 2020 (Unaudited) The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois constitution governs computation of legal debt margin. The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by some 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. 252 262 VILLAGE OF MOUNT PROSPECT, ILLINOIS Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2020 (Unaudited) Fiscal Year (1) Population (2) Equalized Assessed Value Personal Income (1) Per Capita Personal Income (3) Unemployment Rate 2011 54,167 $ 1,694,952,801 $ 1,798,831,903 $ 33,209 7.40% 2012 54,167 1,568,774,082 1,798,831,903 33,209 6.60% 2013 54,167 1,357,294,084 1,798,831,903 33,209 6.70% 2014 54,167 1,390,377,678 1,798,831,903 33,209 5.50% 2015 54,167 1,354,550,848 1,798,831,903 33,209 4.30% 2016 54,167 1,304,972,506 1,798,831,903 33,209 4.60% 2017 54,167 1,670,725,439 1,798,831,903 33,209 3.70% 2018 54,167 1,670,073,671 1,798,831,903 33,209 2.90% 2019 54,167 1,971,307,340 1,798,831,903 33,209 2.70% 2020 54,604 N/A 2,174,658,904 39,826 6.60% Data source: (1) U.S. Department of Commerce, Bureau of the Census (2) Office of the Cook County Cleric (3) IDES Local Area Unemployment Statistics N/A - Not Available 253 263 VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2020 (Unaudited) Data Sources: Village Records 254 264 2020 2011 Percentage Percentage of Total of Total Village Village Employer Employees Rank Employment Employees Rank Employment CVS Caremark 1,400 1 2.58% 800 1 1.48% Robert Bosch Tool Corporation 650 2 1.20% 576 2 1.06% Cummins -Allison 391 3 0.72% 435 4 0.80% Mount Prospect School District 57 323 4 0.60% 298 8 0.55% Village of Mount Prospect 320 5 0.59% 306 6 0.56% Township High School District 214 300 6 0.55% 250 9 0.46% Wal-Mart Supercenter #1681 269 7 0.50% 330 5 0.61% Jewel Food Store #3476 240 8 0.44% Home Depot #1913 199 9 0.37% Grand Prairie Transit 190 10 0.35% MetLife 445 3 0.82% Rauland Borg 300 7 0.55% Siemens Building Technologies, Inc. 235 10 0.43% 4,282 7.90% 3,975 7.32% Data Sources: Village Records 254 264 VILLAGE OF MOUNT PROSPECT, ILLINOIS Full -Time and Part -Time Employees by Function/Program - Last Ten Fiscal Years December 31, 2020 (Unaudited) See Following Page 255 265 VILLAGE OF MOUNT PROSPECT, ILLINOIS Full -Time Equivalent Employees by Function/Program - Last Ten Fiscal Years December 31, 2020 (Unaudited) Function/Program 2011 2012 2013 19.00 19.50 9.50 9.50 Public Representation/Community 97.83 74.75 99.50 74.50 100.50 74.50 and Civic Services 2.10 2.10 2.10 2.90 2.90 General Government 0.90 0.90 10.90 Village Administration 10.75 72.15 72.15 Administration 14.95 15.45 15.45 Finance 13.00 13.00 13.00 Total 27.95 28.45 28.45 Community Development Community Development Community Development/CDBG Total Human Services Department Public Safety and Protection Police Department Fire Department Total Public Works Department Administration Streets/Buildings/Parking Forestry Engineering Water/Sewer Refuse Disposal Parking Vehicle Maintenance Total Village Total Data Source: Village budget 20.48 1.25 17.75 1.25 18.50 1.00 21.73 19.00 19.50 9.50 9.50 9.50 97.83 74.75 99.50 74.50 100.50 74.50 172.58 174.00 175.00 2.85 2.85 2.85 11.85 11.85 12.45 9.75 9.75 9.25 8.00 8.00 8.00 25.00 25.00 24.75 2.90 2.90 2.90 0.90 0.90 0.90 10.90 10.90 10.75 72.15 72.15 71.85 306.01 305.20 306.40 256 266 2.85 2.85 3.85 3.35 4.75 5.10 5.10 2014 2015 2016 2017 2018 2019 2020 2.05 2.15 2.20 2.10 2.05 0.80 0.80 15.45 13.00 16.85 13.00 16.75 13.00 17.35 13.00 15.85 13.50 15.50 13.50 16.00 14.00 28.45 29.85 29.75 30.35 29.35 29.00 30.00 18.50 1.00 18.50 1.00 18.75 0.75 18.75 0.75 21.00 21.25 21.25 19.50 19.50 19.50 19.50 21.00 21.25 21.25 9.50 9.50 9.50 9.55 10.55 9.55 9.55 100.50 74.50 99.50 75.00 101.50 81.00 102.50 81.00 103.00 81.00 104.00 80.75 105.50 80.75 175.00 174.50 182.50 183.50 184.00 184.75 186.25 2.85 2.85 3.85 3.35 4.75 5.10 5.10 12.40 12.40 12.35 12.35 14.20 16.05 16.30 9.35 9.25 8.35 8.35 8.35 9.55 9.55 8.00 8.00 8.00 8.00 7.90 8.40 8.40 24.75 24.75 2.90 25.25 25.75 23.30 23.30 2.90 2.90 24.75 2.90 0.90 0.90 0.90 0.90 10.75 10.75 10.75 10.75 10.75 9.60 10.10 71.90 71.80 71.85 71.85 71.70 72.00 72.75 306.40 307.30 315.30 316.85 318.65 317.35 320.60 257 267 VILLAGE OF MOUNT PROSPECT, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2020 (Unaudited) Function/Program 2011 2012 2013 Finance Department Vehicle Stickers Issued 39,834 43,092 43,490 Utility Bills 86,701 90,147 152,312 Real Estate Transfer Tax Stamps Sold 1,022 1,282 1,451 Community Development Building Division Permits Issued 2,821 2,244 2,383 Plan Reviews 515 595 524 Building Code Inspections 8,508 8,939 7,824 Environmental Health Division Inspections Food Service 394 405 393 Multi -family Buildings 664 565 568 Public Safety Police Number of Crimes 3,359 3,178 2,809 Number of Service Calls 19,943 19,184 19,206 Number of Arrests 1,845 1,602 1,509 Moving Violations 7,026 5,979 6,152 Parking Citations 9,363 7,640 7,314 Fire Fire Calls 2,350 1,892 1,967 EMS Calls 3,590 3,885 3,912 Fire Prevention Inspections 3,418 3,308 3,144 Training Hours 23,578 21,340 21,149 Public Works Streets Street Resurfacing (miles) 5 5 8 Crack Filling (lbs) 40,871 51,885 49,153 Leaves Removed (tons) 2,108 1,785 2,070 Water Water Mains Installed (lineal feet) Water Billed (1,000 gallons) 1,287,525 1,341,268 1,284,779 Sanitary Sewers Cleaned (ft) 54,236 58,922 65,000 Refuse (single/multi-family) Solid Waste Collected (tons) 32,264 31,385 29,494 Recycling (tons) 6,644 6,028 5,692 Data Source: Various Village departments *2020 are estimated amounts. Final figures are not available at time of printing report. ** Numbers affected by COVID-19 258 268 2014 2015 2016 2017 2018 2019 2020* 42,789 41,964 41,323 40,638 39,214 38,344 33,532 152,649 152,703 152,872 152,689 152,689 152,701 152,608 1,426 1,433 1,541 1,472 1,473 1,434 1,355 2,653 2,490 2,500 2,375 2,562 2,502 2,500 471 536 513 425 465 575 600 10,952 10,590 9,535 9,640 9,320 9,100 9,000 434 409 405 400 359 406 432 1,068 1,043 1,000 1,000 1,025 1,015 1,000 2,480 2,399 2,235 2,387 2,335 2,350 2,400 18,594 18,906 18,232 18,393 18,339 18,500 18,750 1,307 1,178 1,083 1,102 1,019 965 975 4,928 4,839 4,137 3,842 3,409 3,600 3,700 7,671 7,166 5,637 8,179 5,564 7,250 7,400 1,926 1,883 1,889 1,816 1,884 1,855 1,950 3,985 4,061 4,032 4,105 4,195 5,242 4,250 3,047 2,700 3,800 2,075 2,600 3,000 1,500 ** 24,033 25,990 29,024 31,626 31,651 31,258 24,221 ** 19 10 6 7 7 7 7 59,568 51,412 53,623 51,412 54,000 54,000 54,000 2,081 1,988 1,676 1,848 1,856 1,853 1,889 - 1,990 600 1,990 3,900 4,510 5,326 1,301,528 1,204,478 1,224,661 1,208,079 1,179,096 1,183,694 1,219,545 90,000 120,000 75,000 100,000 75,000 60,000 60,000 30,320 30,605 26,574 29,613 28,235 28,854 28,776 5,498 5,369 5,355 5,492 5,086 4,672 4,859 259 269 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Asset Statistics by Function/Program - Last Ten Fiscal Years December 31, 2020 (Unaudited) Function/Program 2011 2012 2013 2,295 2,274 8.8M 8.8M Public Safety Police Stations 1 1 1 Patrol Units 34 33 33 Fire Fire Stations 3 3 3 Fire Engines/Vehicles 22 20 23 Public Works Residential Streets (miles) Water Water Mains (miles) Fire Hydrants Storage Capacity (gallons) Wastewater Sanitary Sewer (miles) Storm Sewers (miles) Combined Sewers (miles) Data Source: Various Village departments 134 134 135 162 162 161 2,291 2,295 2,274 8.8M 8.8M 8.8M 71 71 71 128 128 135 54 54 54 260 270 2014 2015 2016 2017 2018 2019 2020 1 1 1 1 1 1 1 32 32 30 31 31 30 30 3 3 3 3 3 3 3 23 22 21 21 21 22 22 134 134 135 135 135 135 135 160 160 160 160 160 160 160 2,242 2,240 2,243 2,246 2,246 2,246 2,246 8.8M 8.8M 8.8M 8.8M 8.8M 8.8M 8.8M 71 71 72 72 72 72 72 135 108 108 110 110 110 110 54 54 55 55 55 55 55 261 271 ADDITIONAL DISCLOSURES REQUIRED BY SEC RULE 15C2-12 262 272 VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS FINANCIAL INFORMATION STATEMENT OF INDEBTEDNESS Assessed Valuation of Taxable Real Property, 2019 Estimated True Value of Taxable Real Property, 2019 Direct Bonded Debt payable from Property Taxes (1) Payable From Property taxes Self -Supporting Debt Total Direct Bonded Debt Overlapping Bonded Debt Payable from Property Taxes (2) Schools Other Than Schools Total Overlapping Bonded Debt Total Direct and Overlapping Bonded Debt Total Direct and Overlapping Bonded Debt Excl. Self -Supporting Amount As Percent of Per Capita Applicable as of Assessed Estimated 2010 Census December 31, 2020 Value True Value 54,167 $1,971,307,340 100.00% 33.33% $ 36,393.14 5,913,922,020 300.00% 100.00% 109,179.43 $ 54,610,000 2.77% 0.92% $ 1,008.18 86,648,644 4.40% 1.47% 1,599.66 $ 141,258,644 7.17% 2.39% $ 2,607.84 $ 43,411,684 2.20% 0.73% $ 801.44 69,162,632 3.51% 1.17% 1,276.84 $ 112,574,316 5.71% 1.90% $ 2,078.28 $ 253,832,960 12.88% 4.29% $ 4,686.12 $167,184,316 8.48°/, 2.83°/, $ 3,086.46 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, 2020". RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December, 31, 2020) Principal Maturities Due Source of Payments Total Maturities Debt Service Tax Levies Calendar Property Annual Cumulative Levy Property Date Taxes Amount Percent Year Taxes 2021 5,115,000 5,115,000 5.0% 2020 5,768,596 2022 5,080,000 5,080,000 10.0% 2021 5,524,686 2023 3,615,000 3,615,000 13.5% 2022 3,652,500 2024 3,805,000 3,805,000 17.3% 2023 3,649,100 2025 4,025,000 4,025,000 21.2% 2024 3,643,800 2026 4,25.5,000 4,255,000 25.4% 2025 3,643,8.50 2027 4,465,000 4,465,000 29.8% 2026 3,637,000 2028 4,705,000 4,705,000 34.4% 2027 3,643,400 2029 4,435,000 4,435,000 38.7% 2028 3,142,500 2030 4,795,000 4,795,000 43.4% 2029 3,235,250 2031 5,065,000 5,065,000 48.4% 2030 3,234,250 2032 5,340,000 5,340,000 53.6% 2031 3,233,750 2033 5,645,000 5,645,000 59.2% 2030 3,233,500 2034 5,030,000 5,030,000 64.1% 2031 3,233,250 2035 5,290,000 5,290,000 69.3% 2034 3,238,138 2036 5,550,000 5,550,000 74.7% 2035 3,237,075 2037 5,825,000 5,825,000 80.4% 2036 3,237,825 2038 4,020,000 4,020,000 84.4% 2037 3,235,200 2039 4,200,000 4,200,000 88.5% 2038 3,236,000 2040 2,765,000 2,765,000 91.2% 2039 3,234,600 2041 2,875,000 2,875,000 94.0% 2040 3,234,000 2042 2,990,000 2,990,000 97.0% 2041 3,234,000 2043 3,110,000 3,110,000 100.0% 2042 3,234,400 $102,000,000 $102,000,000 263 273 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 has used alternative revenue sources including Home -rule sales tax, water/sewer charges etc. to perform the debt service for certain bonds. The Village abates the property taxes for the bonds paid with the alternative revenue sources. DEBT RATIOS AND PER CAPITAL DEBT -GENERAL OBLIGATION BOND SALES 2003-2020 (Note 1) 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) 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 Ratio to Equalized Assessed Value Per Capita (3) (7.7%) 2012 Direct Debt Direct & Overlapping 1,607,021,964 Direct & Overlapping 2013 1,357,294,084 Including Excluding Including Excluding Including Excluding Village Issue 2.4% Self- Self- Self- Self- Self- Self - Sale Date Amount Supporting Supporting Supporting Supporting Supporting Supporting January 21, 2003 12,235,000 1.39% 1.05% 3.77% 3.43% 2,544.05 2,316.16 December 15, 2006 10,000,000 0.78% 0.69% 2.72% 2.63% 2,362.39 2,287.21 February 17, 2009 10,000,000 0.72% 0.72% 2.45% 2.45% 2,445.85 2,445.85 December 1, 2009 3,430,000 0.70% 0.70% 2.47% 2.47% 2,749.42 2,749.42 December 1, 2009 2,650,000 0.70% 0.70% 2.47% 2.47% 2,749.42 2,749.42 July 29, 2011 4,100,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 July 29, 2011 5,160,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 January 3, 2012 2,975,000 0.60% 0.60% 2.80% 2.80% 2,921.82 2,921.82 September 10, 2013 9,800,000 0.92% 0.92% 3.42% 3.42% 3,042.80 3,043.80 February 4, 2014 6,279,000 1.13% 1.09% 3.74% 3.71% 3,253.40 3,223.59 September 8, 2016 8,735,000 2.00% 1.16% 5.29% 4.45% 3,356.50 3,309.47 December 1, 2016 9,100,000 1.90% 1.09% 5.25% 4.43% 3,356.50 3,296.96 December 20, 2017 9,740,000 1.64% 1.04% 3.78% 3.19% 3,385.89 2,829.19 May 1, 2018 7,060,000 1.62% 0.62% 3.79% 2.75% 4,214.20 2,450.93 October 16, 2018 38,440,000 2.39% 1.28% 4.55% 3.41% 4,214.20 3,135.48 June 3, 2019 9,600,000 3.66% 2.20% 9.75% 5.85% 2,990.13 1,533.88 November 25, 2019 7,725,000 3.67% 2.20% 9.76% 5.86% 2,990.13 1,533.88 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) Real Property Tax Net For Plus Total For All Increase Levy General Taxing Incremental Taxing Over Year (2) Purposes (3) Valuation Purposes (4) Prior Year 2011 1,694,952,801 42,659,295 1,737,612,096 (7.7%) 2012 1,568,774,082 38,247,882 1,607,021,964 (7.5%) 2013 1,357,294,084 32,976,484 1,390,270,568 (13.5%) 2014 1,390,377,678 33,230,688 1,423,608,366 2.4% 2015 1,354,550,848 32,251,850 1,386,802,698 (2.6%) 2016 1,619,158,852 47,669,419 1,666,828,271 20.2% 2017 1,670,725,439 - 1,670,725,439 0.2% 2018 1,670,073,671 32,842,983 1,702,916,654 1.9% 2019 1,962,779,503 8,527,837 1,971,307,340 15.8% 264 274 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 2019 and the Village equalized assessed value increased by 15.8% compared to the prior year. 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". DETAILED OVERLAPPING BONDED INDEBTEDNESS PAYABLE FROM PROPERTY TAXES AT DECEMBER 31, 2020 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 Arlington Heights Des Plaines Percent of Village's Applicable Share Village's 2019 of Gross Debt to be Real Property Gross Paid From Property Taxes (1) in Taxing Body Bonded Debt Percent Amount 37.7% 6,450,000 94.342% 6,085,059 26.7% 32,355,000 18.320% 5,927,436 26.4% 12,870,000 78.431% 10,094,070 3.4% 87,650,000 3.005% 2,633,883 3.2% 42,710,000 2.612% 1,115,585 2.5% 8,705,000 8.719% 758,989 99.8% 33,010,000 19.657% 6,488,776 0.2% 128,780,000 0.071% 91,434 0.2% 30,000,000 0.015% 4,500 99.8% 103,580,000 9.859% 10,211,952 43,411,684 100.0% 2,898,176,570 1.183% 34,285,431 100.0% 1,799,425,000 1.204% 21,665,077 66.8% 18,565,668 69.152% 12,838,531 2.8% 13,149,000 1.874% 246,412 1.8% 7,463,685 1.704% 127,181 Total Other Than Schools 69,162,632 265 275 Notes: 1. Village's share based upon 2019 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 Total Village Cook County, Including Forest Preserve Metropolitan Water Reclamation District Mount Prospect Park District Mount Prospect Public Library Special Service Area No. 5 Community Consolidated School District Township High School District No. 214 Harper College No. 512 All Other Total (2) Village as a Percent of Total Levv Years 2015 2016 2017 2018 2019 $0.170 $0.143 $0.146 $0.148 $0.132 0.426 0.381 0.384 0.401 0.370 0.372 0.311 0.301 0.292 0.261 0.384 0.322 0.312 0.302 0.225 $ 1.352 $ 1.157 $ 1.143 $ 1.143 $ 0.988 0.621 0.596 0.558 0.549 0.543 0.426 0.406 0.402 0.396 0.389 0.681 0.594 0.609 0.633 0.547 0.801 0.687 0.681 0.696 0.599 0.142 0.119 0.118 - - 3.291 2.998 3.031 3.173 2.751 2.881 2.527 2.563 2.669 2.356 0.466 0.416 0.425 0.443 0.403 0.158 0.105 0.135 0.106 0.090 $ 10.819 $ 9.605 $ 9.665 $ 9.808 $ 8.666 12.5% 12.0% 11.8% 11.7% 11.4% 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. TAX EXTENSIONS AND COLLECTIONS (Village Purposes Only) Total Taxes Collected as Levy Collection Total Taxes of December 31, 2020 (Note 1) Year Year Extended Amount Percent (2) 2012 2013 16,487,816 16,188,175 98.18% 2013 2014 17,305,500 17,017,128 98.33% 2014 2015 17,741,219 17,421,947 98.20% 2015 2016 18,313,527 17,948,393 98.01% 2016 2017 18,733,668 18,385,014 98.14% 2017 2018 19,096,392 18,804,998 98.47% 2018 2019 19,088,942 18,708,934 98.01% 2019 2020 19,476,516 19,187,932 98.52% 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. 266 276 TEN LARGEST TAXPAYERS Equalized Assessed Percent of Rank Taxpayer Business/Properties Valuation (1) Village (2) 1 United Airlines Inc. 2 Home Properties Colony 3 Randhurst Costco Conger 4 CRP 3 West Center LLC 5 Golf Plaza I and II 6 1450 Owner LLC 7 Mount Prospect Plaza 8 Huntington Square 9 LIT Industrial Limited 10 Menards - Properties Operations Center Apartments Membership Warehouse Club Industrial Shopping Center Industrial Real Estate Shopping Center Apartments Industrial Hardware and Home Building Store Notes: 1. Valuations as of January 1, 2019 for 2020 tax purposes. 2. Total 2019 Village valuation is $ 1,971,307,340 37,465,013 1.90% 30,905,675 1.57% 26,880,146 1.36% 24,016,153 1.22% 21,647,130 1.10% 20,064,238 1.02% 18,438,932 0.94% 11,349,824 0.58% 10,102, 710 0.51% 9,007,734 0.46% $ 209,877,555 10.65% 2012 AND 2019 TAX BASE DISTRIBUTION BY PROPERTY CLASSIFICATION* Village of Mount Prospect Taxable Valuation Percent of Total Classification 2012 2019 % 2012 2019 Residential 1,141,783,464 1,352,621,864 18.47% 72.78% 68.62% Commercial 281,197,939 405,952,345 44.37% 17.92% 20.59% Industrial 145,136,294 211,550,243 45.76% 9.25% 10.73% Railroad 656,385 1,182,888 80.21% 0.04% 0.06% Total 1,568,774,082 1,971,307,340 25.66% 100.00% 100.00% * A breakdown by property classification of the Village's levy year 2020 valuation is not available as of the date of this report. 267 277 GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) Revenu Property Taxes Sales Taxes State Income Taxes Licenses, Permits & Fees Utility Taxes Charges for Service Fines & Forfeits Investment Income Food & Beverage Tax Real Estate Transfer Tax All Other Revenues Total Revenues Expenditures: General Government Public Representation Division Village Manager's Office Finance Department Community Development - Benefit Payments Total General Government Public Safety: Code Enforcement Police Department Fire & Emergency Protection Total Public Safety Highways & Streets Heal Wel Culture & Recreation Net Transfers (In)/Out Total Expenditures Revenues Over (Under) Expenditures Ending Fund Balance Actual 2020 2016 2017 2018 2019 Budget Actual $ 15,917,480 16,112,039 16,112,039 16,081,608 16,539,009 16,367,630 17,202,418 19,458,742 23,658,634 24,249,211 24,464,300 22,693,522 5,272,834 4,975,194 5,187,361 5,765,484 5,250,000 5,886,270 2,350,787 2,334,232 2,484,451 2,733,317 2,291,080 2,402,150 3,629,525 3,491,473 3,476,969 3,292,347 3,207,000 3,025,210 1,782,869 1,527,168 1,475,149 1,875,941 1,667,200 2,320,837 414,885 415,189 403,842 286,328 355,050 242,004 49,202 132,925 318,490 430,397 266,000 99,325 805,172 839,472 884,637 884,637 856,000 818,911 1,049,770 1,190,331 1,426,037 1,434,580 1,125,000 962,687 3,076,582 3,325,198 3,539,116 3,144,713 2,645,787 3,870,492 $ 51,551,524 53,801,963 58,966,725 60,178,563 58,666,426 58,689,038 141,249 134,039 159,710 113,322 159,551 120,925 4,031,450 4,730,808 3,733,109 3,662,546 4,216,046 3,498,838 1,972,523 2,466,917 2,735,100 2,781,155 1,665,927 1,548,016 734,282 933,069 1,109,904 1,129,783 1,728,718 1,723,458 46,615 46,780 5,819 5,993 6,174 6,173 6,926,119 8,311,613 7,743,642 7,692,799 7,776,416 6,897,410 877,060 820,925 854,780 962,937 1,150,648 1,062,597 17,067,883 17,823,169 18,564,213 18,975,187 19, 847,177 19,085,680 14,473,302 15,522,366 15,586,449 16,188,816 17,100,178 17,096,913 32,418,245 34,166,460 35,005,442 36,126,940 38,098,003 37,245,190 7,282,165 7,613,341 7,915,559 8,674,121 9,448,438 8,705,967 160,555 261,533 306,314 195,532 144,209 132,833 1,561,199 1,548,489 1,410,612 1,372,853 1,516,801 1,446,675 499,208 585,907 572,169 388,375 568,459 166,740 1,240,625 600,000 2,354,391 2,107,362 4,598,000 4,598,000 50,088,116 53,087,343 55,308,129 56,557,982 62,150,326 59,192,815 1,463,408 714,620 3,658,596 3,620,581 (3,483,900) (503,777) $ 18,684,351 19,398,971 23,057,567 26,678,148 23,194,248 26,174,371 268 278 Assets: Cash & Investments Receivables Property Taxes Other Taxes All Other Due From Other Funds Due From Other All Other Assets Total Assets Liabilities & Fund Balance Accounts Payable Deferred Revenues Property Taxes All Other Liabilities Fund Balance: Nonspendable Restricted Committed Unassigned Total Fund Balance Total Liabilities & Fund Balance Sheet — December 31 2016 2017 2018 2019 2020 $ 11,892,092 $ 14,814,727 $ 16,672,691 $ 20,838,531 $ 20,649,384 16,087,246 16,333,702 16,290,898 16,545,722 16,397,406 6,772,937 6,220,011 7,994,192 8,518,372 7,968,423 435,700 417,856 371,481 359,574 305,811 735,763 92,845 22,254 - - 653,254 186,629 49,471 48,570 48,244 188,247 261,219 220,065 370,162 906,902 $ 36,765,239 $ 38,326,989 $ 41,621,052 $ 46,680,931 $ 46,276,170 $ 833,274 $ 1,463,624 16,087,246 16,333,702 1,160,368 1,130,692 188,247 261,219 $ 957,709 $ 517,940 $ 606,869 16,290,898 16,539,009 16,354,772 1,314,878 2,945,834 3,140,158 220,065 370,162 381,902 - - - 3,393,000 2,300,000 18,496,104 19,137,752 22,837,502 22,914,986 23,492,469 $ 18,684351 $ 19,398,971 $ 23,057,567 $ 26,678,148 $ 26,174,371 $ 36,765,239 $ 38,326,989 $ 41,621,052 $ 46,680,931 $ 46,276,170 Notes: 1. This condensed financial information for the years ending December 31, 2016-2020 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. 269 279 COMBINED STATEMENT -ALL FUNDS (Note 1) Fund Balances 2016-2019 and Summary 2020 Revenues, Excess Revenues and Fund Balance (Fiscal Years Ended December 31) Fiscal Year Ended December 31, 2020 Revenue Incl. Transfers Property Revenue Over (Under) Fund Governmental Fund Types (2): 2016 2017 2018 2019 Tax Total Expenditures Balance General Fund * $ 18,684,351 19,398,971 23,057,567 26,678,148 $ 16,367,630 S 58,689,038 $ (503,777) $ 26,174,371 Special Revenue Funds: Motor Fuel Tax $ 2,465,482 2,744,472 2,431,135 2,465,613 $ - $ 3,194,941 S 1,323,947 $ 3,789,560 Community Development Block - - - - 377,614 - - Refuse Disposal 1,363,621 1,442,645 1,320,754 1,167,139 4,513,301 (147,037) 1,020,102 Asset Seizure 173,079 172,908 141,255 135,102 6,492 (14,459) 120,643 DEA shared Funds 20,013 20,194 20,308 50,545 1,444 1,444 51,989 DUI Fines 121,449 140,928 137,373 143,435 7,602 6,527 149,962 Foreign Fire Tax Fund 341,678 352,423 398,231 438,552 90,707 (24,797) 413,755 Business District Fund - - - - - 1,036,290' - - Police & Fire Building - 31,720,180 14,141,970 96,685 (14,097,836) 44,134 Prospect/Main TIF* (687,995) 3,945,027 698,930 8,532,044 944,024 1,575,832 (8,506,053) 25,991 Total Special Revenue 3,797,327 8,818,597 36,868,166 27,074,400 $ 944,024 $ 10,900,908 (21,458,264) 5,616,136 Debt Service* 168,152 184,195 4,150,506 3,455,359 2,548,250 6,236,443 (328,494) 3,126,865 Capital Projects (3) 3,224,446 3,579,214 5,577,761 5,662,051 - 10,376,481 (140,076) 5,521,975 Total Governmental $ 25,874,276 31,980,977 69,654,000 62,869,958 $ 19,859,904 $ 86,202,870 S $ 40,439,347 Proprietary & Fiduciary Fund Types Enterprise Funds (4): Water and Sewer * 40,610,650 41,327,962 40,157,409 38,572,493 $ - $ 16,924,663 $ (1,108,507) 37,463,986 Village Parking System 588,378 704,700 725,953 549,156 104,016 (118,319) 430,837 Internal Service Funds (5) 19,174,062 19,736,825 21,115,612 22,226,789 14,552,236 1,392,085 23,618,874 Pension Trust Funds: Police Pension 61,976,686 71,069,062 66,374,108 78,333,544 14,940,723 8,574,687 86,908,231 Firefighter's Pension 58,344,829 66,265,340 62,398,530 71,227,941 15,810,403 9,231,528 80,459,469 Total Proprietary & Fiduciary $ 180,694,605 $ 199,141,779 $ 190,771,612 S 210,909,923 $ - $ 62,332,041 $ 17,971,474 $ 228,881,397 Total All Funds (Memo Only) $ 206,568,881 $ 231,122,756 $ 260,425,612 S 273,779,881 $ 19,859,904 $ 148,534,911 $ (4,459,137) $ 269,320,744 Designated as major funds. Cash & Investments at 12/31 (6): General Fund Internal Service Funds Police & Fire Building Prospect & Main TIF Other Special Revenue Funds Debt Service Funds 2016 2017 2018 2019 2020 $ 11,892,092 $ 14,814,727 $ 16,672,691 $ 20,838,531 $ 20,649,384 13,177,384 12,210,417 11,769,387 11,707,300 13,783,192 - - 31,708,378 17,938,945 153,863 - 712,311 9,716,685 10,018 5,360,368 9,803,081 4,792,342 5,427,444 5,825,227 167,652 162,895 4,100,470 3,448,379 3,119,837 Subtotal $ 30,597,496 $ 36,991,120 $ 69,755,579 $ 69,077,284 $ 43,541,521 Capital Project Funds 2,794,596 3,209,472 5,949,833 6,262,008 5,325,291 Water & Sewer 3,179,625 7,577,274 12,425,604 19,536,350 17,631,177 Other Enterprise Funds 428,260 531,623 578,367 576,470 446,638 Pension Trust Funds 119,963,475 137,068,690 128,571,320 149,345,705 167,194,366 Other Fiduciary Funds+ 1,368,315 1,126,624 1,115,737 - - Total $ 158,331,767 $ 186,504,803 $ 218,396,440 S 244,797,817 $ 234,138,993 + Starting year 2019 Other Fiduciary Funds arc merged with General Fund 270 280 Notes: 1. This condensed financial information for the years ending December 31, 2016-2020 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. The Village's Comprehensive Annual Financial Report for the year ended December 31, 2020 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, 2016-2019. The "Independent Auditor's Report" included in the latest audit states, in part: "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-iype activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. " 2. The Village's property tax revenue recognition policy conforms to the provisions of "NCGA Interpretation 3, Revenue Recognition Property Taxes." The current net tax levy receivable is recognized in the balance sheet along with a corresponding amount of deferred revenue. In addition, the debt service payments and liabilities related to the current net tax levy are not reflected in the Debt Service Funds; the un -matured principal is reflected in the General Long -Term Debt Account Group. 3. Includes the Capital Improvement Fund, which accounts for the resources used to provide for mid- sized capital projects. Financing is provided by one-quarter cent home rule sales tax, developer contributions, interfund transfers, investment income, and bond proceeds. 4. Fund balances shown for the Enterprise Funds are total fund equity, including contributed capital and retained earnings, and the column "Revenue Over Expenditures" represents the change in that amount. 5. The Village has created a new Police and Fire Building Construction fund during the year 2018. This fund is created to account for bond proceeds and construction cost associated with new Police and Fire buildings. 6. 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. 7. Excludes agency funds. 271 281 CAPITAL ASSETS (Note) (December 31, 2020) 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. 272 282 Governmental Business Type Activities Activities Capital Assets Not Being Depreciated Capital Assets Not Being Depreciated Land $ 15,612,320 Land $ 17,318,818 Construction in Progress $ 24,924,802 Construction in Progress $ 2,456,620 Total Assets Not Being Depreciated $ 40,537,122 Total Assets Not Being Depreciated $ 19,775,438 Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings $ 55,818,844 Buildings and Improvements $ 4,499,808 Improvements Other Than Buildings 1,516,920 Equipment 5,017,968 Infrastructure and All Other 112,921,848 Infrastructure 33,306,464 Total Capital Assets Being Depreciated $ 170,257,612 Total Capital Assets Being Depreciated $ 42,824,240 Less Accumulated Depreciation $ 99,801,560 Less Accumulated Depreciation $ 22,845,148 Total Capital Assets Being Depreciated, Net $ 70,456,052 Total Capital Assets Being Depreciated, Net $ 19,979,092 Net Assets $ 110,993,174 Net Assets $ 39,754,530 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. 272 282 Village of Mount Prospect int p( Mount Prospect, Illinois INTEROFFICE MEMORANDUM 1 TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FROM: TIM MCDERMOTT, AUDIT COMMITTEE CHAIR DATE: JULY 12, 2021 SUBJECT: ANNUAL REPORT OF AUDIT COMMITTEE — 2020 The audit for the fiscal year 2020 is complete and included as part of your materials for review and acceptance. The audit firm of Lauterbach & Amen, LLP performed the Village's external audit. This audit marked the first year of a five-year engagement with the Village. The Audit Committee met on June 22, 2021, to discuss the 2020 audit report and findings. The meeting agenda included a discussion on the results of the 2020 Comprehensive Annual Financial Report (CAFR), Auditor Communication to the Village Board, and Management Letter comments as prepared by Lauterbach & Amen. Audit Committee activities included: • At the June 22 meeting, the Audit Committee met with Village staff and the audit manager in charge of the audit, Don Shaw. A presentation on the 2020 audit was made by staff and Auditors. Items discussed included the overall results of the audit, financial statement, overall impact of the COVID-19 on the financial statement. The following are some of the significant items from the 2020 Audit. • On page 12 of the Comprehensive Annual Financial Report, the firm expresses in their opinion that the financial statements present fairly in all respects the financial position for the year ended December 31, 2020, 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. o Other items and comments on Financials: ■ The General Fund Reserves are $26.2 million, of which $23.5 million is unrestricted. ■ The overall Governmental Activity Fund Balance is $40.4 million. ■ The overall Business Type activity Fund Balance is $37.9 million, of which $20.5 million is invested in capital assets and infrastructures. ■ Police and Fire Pension Funds are showing the funded ratio of 70 percent and 30% unfunded liability totals at $32.5 million for Fire and $37.5 million for Police. ■ There was a minor restatement of $1.7 million (business district note) in the non - 283 Annual Report of Audit Committee — 2020 Activities July 20, 2021 Page 2 current liability section, which positively impacted the net position of the Village. The Committee also reviewed the audit firm's Management Letter and Auditor Communication to the Board that accompanied the audit report. The Management Letter communicates whether there are any material weaknesses in internal control. The Auditor identified none. Auditor Communication to the Board communicates certain information related to the performance of the audit. Also included in this report are recommendations for addressing any deficiency in internal control, as well as an update from any recommendation made during the prior year's audit. c There were no management letter comments identified for the current year. Other information provided in the auditor communication for 2019 included future accounting pronouncements. These future pronouncements are changes to accounting rules that may have an impact on Village finances in the future. The major pronouncement is GASB 87 about leases and will be implemented in the coming years. The final item we are highlighting from the Comprehensive Annual Financial Report is under the first tab (Introduction). On page 9 is the Certificate of Achievement for Excellence in Financial Reporting that the Village received for its 2019 report. This marks the 27th consecutive year the Village has received this award. Application has been made to the Certificate program for the fiscal year 2020. Notice of the 2020 award is expected in early 2022. • The Auditor also commended the efforts carried out by staff, and in spite of most of the fieldwork was performed remotely, the staff has provided all the needed details in a timely manner, and the books are maintained very well, neat and clean. The next meeting of the Audit Committee is expected in late 2021 to discuss the audit engagement for 2021 and onwards. 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 284