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Home My WebLink About4.2 Annual Report of the Audit Committee and Acceptance of Annual Comprehensive Financial Report (ACFR) For The Year Ended On December 31, 2022.Subject Annual Report of the Audit Committee and Acceptance ofAnnualComprehensive Financial Report (ACFR) For The Year Ended On December 31j, 2022. Meeting July 18, 2023 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - Fiscal Impact Dollar Amount Budget Source ��ategory ITIATORS .* Type Action Item Information The Audit Committee has prepared its annual report to the Village Board on Committee activities for the past year. A primary function of the Audit Committee is to provide oversight on the annual audit process. The Audit process for the year 2022 has been concluded. The report of the Audit Committee, along with Annual Comprehensive Financial Report (ACFR) is 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 for the year 2022. Please follow the link to View 2022 ACFR - Click Here The major highlights of the 2022 Audit are: • On page 12 of the Comprehensive Annual Financial Report, the audit firm expresses its opinion that the financial statements present fairly, in all respects, the financial position for the year ended December 31, 2022, in accordance with generally accepted accounting principles. While the actual statement is much more detailed, this is the key statement from the firm demonstrating that they found no significant issues that impact their overall determination on the accuracy of the Village's financial statements and position. 1 • Other items and comments on Financials: • The General Fund Reserves are $48.2 million, of which $40.6 million is unrestricted. The Village's General Fund reported remarkable growth in the Intergovernmental Revenues. The sales tax, income tax, use tax, ambulance billing fees, and a few other outperforming revenues allowed the Village to add $13.4 million to the overall reserves of the General Fund. All Village Departments performed within their approved budgetary constraints and were reported under -budget. • The overall Governmental Activity Fund Balance is $73.2 million, of which $40.6 million is unrestricted. • The overall Business Type activity Fund Balance is $50.2 million, of which $28.9 million is invested in capital assets and infrastructures. • Police and Fire Pension Funds show a funded ratio of 54.0 percent and 46% unfunded liability totals at $58.5 million for Fire and $68.0 million for Police. • 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 auditors did not report any material weaknesses in the internal control. The 2022 Management Letter addressed the recommendation given in the 2021 Management Letter. There were two items in the 2021 Management Letter. One of the items was Business District Fund being over budget, and the second item was the Flood Control Construction Fund not being compliant with the Fund Balance Policy. Both of these items are corrected now. The Business District Fund acts as an escrow fund for the business district note. The outperforming revenues resulted in additional sharing of revenue with the note holder, reported as an interest expenditure. Timing issues with the availability of the information resulted in an overbudget expense line. There were no such timing issues with the revenue data for the year 2022. With a budgeted transfer of $1.0 million from the General Fund to the Flood Control Construction Fund, the Fund is now compliant with the Fund Balance Policy. There are no other major Management Letter items reported for the year 2022. • Other information provided in the auditor communication for 2022 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 pronouncements are GASB 96 about subscription - based IT contracts and GASB 94 - Right to use another entity's capital 2 assets. The auditors and staff will be working together to implement both of these new GASB standards. • The ACFR also included the Certificate of Achievement for Excellence in Financial Reporting received from GFOA for the 2021 Audit. This marks the 29th consecutive year the Village receiving this award. The Village has also submitted the 2022 ACFR for the award program. The Village became a Triple Crown Winner by winning the awards for all three categories. 1) Certificate of Achievement for Excellence in Financial Reporting, 2) Distinguished Budget Award, and 3) PAFR - Popular Annual Financial Reporting. The Village is one of the 513 municipal towns nationwide to win all three awards. • The Auditor also commended the efforts carried out by the staff. They were impressed with the amount of work performed ahead of their arrival. Each and every request was handled in a timely manner, and overall, books are kept very neat and clean. Alternatives 1. Accept the annual report of the Audit Committee and Comprehensive Annual Financial Report of the Village for the year ended on December 31, 2022. 2. Action at the discretion of Village Board. Staff Recommendation Accept the Annual Report of the Audit Committee and Annual Comprehensive Financial Report (ACFR) for the year ended on December 31, 2022. ATTACHMENTS: Annual Report Audit Committee - 2022.pdf Mount—Prospect _ACFR _22. pdf Mount Prospect Management Letter 22.pdf Mount Prospect SAS 114 22.pdf 3 .Village of Mount Prospect int p( Mount Prospect, Illinois INTEROFFICE MEMORANDUM 1 TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FROM: VINCENT GROCHOCINSKI, AUDIT COMMITTEE CHAIR DATE: JULY 10, 2023 SUBJECT: ANNUAL REPORT OF AUDIT COMMITTEE — 2022 The audit for the fiscal year 2022 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 third year of a five-year engagement with the Village. The Audit Committee met on June 12, 2023, to discuss the 2022 audit report and findings. The meeting agenda included discussing the results of the 2022 Annual Comprehensive Financial Report (ACFR), Auditor Communication to the Village Board, and Management Letter comments as prepared by Lauterbach & Amen. Audit Committee activities included: • At the June 12 meeting, the Audit Committee met with the Village staff and the Audit Manager in charge of the audit, Don Shaw. A presentation on the 2022 audit was made by staff and Auditors. Items discussed included the overall results of the audit, financial statement, audit opinion, and management letter items. The following are some of the significant items from the 2022 Audit. • On page 12 of the Comprehensive Annual Financial Report, the firm expresses its opinion that the financial statements present fairly, in all respects, the financial position for the year ended December 31, 2022, in accordance with generally accepted 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 $48.2 million, of which $40.6 million is unrestricted. The Village's General Fund reported remarkable growth in the Intergovernmental Revenues. The sales tax, income tax, use tax, ambulance billing fees, and a few other outperforming revenues allowed the Village to add $13.4 million to the overall reserves of the General Fund. All the Village Departments performed within their approved budgetary constraints and were reported under -budget. ■ The overall Governmental Activity Fund Balance is $73.2 million, of which $40.6 4 Annual Report of Audit Committee — 2022 Activities July 10, 2023 Page 2 million is unrestricted. ■ The overall Business Type activity Fund Balance is $50.2 million, of which $28.9 million is invested in capital assets and infrastructures. ■ Police and Fire Pension Funds show a funded ratio of 54.0 percent and 46% unfunded liability totals at $58.5 million for Fire and $68.0 million for Police. • 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 auditors did not report any material weaknesses in the internal control. The 2022 management letter addressed the recommendation given in the 2021 management letter. There were two items in the 2021 Management Letter. One of the items was Business District Fund being over budget, and the second item was the Flood Control Construction Fund not being compliant with the Fund Balance Policy. Both of these items are corrected now. The business district fund acts as an escrow fund for the business district note. The outperforming revenues resulted in additional sharing of revenue with the note holder, reported as an interest expenditure. Timing issues with the availability of the information resulted in an overbudget expense line. There were no such timing issues with the revenue data for the year 2022. With a budgeted transfer of $1.0 million from the General Fund to the Flood Control Construction Fund, the Fund is now compliant with the Fund Balance Policy. There are no other major management letter items reported for the year 2022. • Other information provided in the auditor communication for 2022 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 pronouncements are GASB 96 about subscription -based IT contracts and GASB 94 — Right to use another entity's capital assets. The auditors and staff will be working together to implement both of these new GASB standards. • The ACFR also included the Certificate of Achievement for Excellence in Financial Reporting received from GFOA for the 2021 Audit. This marks the 29th consecutive year the Village receiving this award. The Village has also submitted the 2022. The Village became a Triple Crown Winner by winning the awards for all three categories. 1) Certificate of Achievement for Excellence in Financial Reporting, 2) Distinguished Budget Award, and 3) PAFR - Popular Annual Financial Reporting. The Village is one of the 513 municipal towns nationwide to win all three awards. • The Auditor also commended the efforts carried out by the staff. They were impressed with the amount of work performed ahead of their arrival. Each and every request was handled in a timely manner, and overall, books are kept very neat and clean. Please contact me should you have any questions or need additional information related to this report or the Audit Committee activities. Respectfully Submitted, Vincent Grochocinski 5 For the fiscal year ending December 31, 2022 ",91ZLO-1 Annual ■ s'. Financial i / 1 1.1 VILLAGE OF MOUNT PROSPECT, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 Prepared by: Finance Department Amit R. Thakkar Director of Finance Jennifer Fitzgerald Deputy Director of Finance 7 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 30 Statement of Activities 32 Fund Financial Statements Balance Sheet - Governmental Funds 34 Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities 36 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 38 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities 40 Statement of Net Position - Proprietary Funds 42 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 44 Statement of Cash Flows - Proprietary 45 Statement of Fiduciary Net Position 46 Statement of Changes in Fiduciary Net Position 47 Notes to the Financial Statements 48 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions Illinois Municipal Retirement Fund 100 Police Pension Fund 101 Firefighters' Pension Fund 102 0 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/(Asset) Illinois Municipal Retirement Fund 103 Police Pension Fund 105 Firefighters' Pension Fund 107 Schedule of Investment Returns Police Pension Fund 109 Firefighters' Pension Fund 110 Schedule of Changes in the Employer's Total OPEB Liability 122 Retiree Benefit Plan III Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 138 General Fund 113 Prospect/Main TIF - Special Revenue Fund 114 OTHER SUPPLEMENTARY INFORMATION Governmental Funds Major Governmental Funds General Fund Schedule of Revenues - Budget and Actual 118 Schedule of Expenditures - Budget and Actual 121 Schedule of Detailed Expenditures - Budget and Actual 122 Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 138 Nonmajor Governmental Funds Combining Balance Sheet 141 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 142 Nonmajor Special Revenue Funds Combining Balance Sheet 144 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 146 Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 148 Schedule of Expenditures - Budget and Actual 149 Refuse Disposal - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 150 Schedule of Revenues - Budget and Actual 151 Community Development Block Grant - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 152 Asset Seizure - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 153 0 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION - Continued PAGE OTHER SUPPLEMENTARY INFORMATION - Continued Federal Equitable Share - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 154 DUI Fines - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 155 Foreign Fire Insurance - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 156 Business District - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 157 Pension Stabilization - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 158 Nonmajor Capital Projects Funds Combining Balance Sheet 159 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 160 Capital Improvement- Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 161 Schedule of Expenditures - Budget and Actual 162 Flood Control Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 163 Schedule of Expenditures - Budget and Actual 164 Street Improvement Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 165 Proprietary Funds Enterprise Funds Water and Sewer Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 168 Schedule of Operating Revenues 169 Schedule of Operating Expenses - Budget and Actual 170 Nonmajor Enterprise Funds Combining Statement of Net Position 173 Combining Statement of Revenues, Expenses and Changes in Net Position 174 Combining Statement of Cash Flows 175 Parking System Revenue Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 176 Schedule of Operating Expenses - Budget and Actual 177 Village Parking System Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 178 Schedule of Operating Expenses - Budget and Actual 179 10 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION - Continued PAGE OTHER SUPPLEMENTARY INFORMATION - Continued 207 Internal Service Funds Combining Statement of Net Position 182 Combining Statement of Revenues, Expenses and Changes in Net Position 184 Combining Statement of Cash Flows 186 Computer Replacement Fund 212 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 188 Schedule of Operating Expenses - Budget and Actual 189 Risk Management Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 190 Schedule of Operating Revenues 191 Schedule of Operating Expenses - Budget and Actual 192 Vehicle Replacement Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 193 Schedule of Operating Revenues 194 Schedule of Operating Expenses - Budget and Actual 195 Vehicle Maintenance Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual 196 Schedule of Operating Revenues 197 Schedule of Operating Expenses - Budget and Actual 198 Fiduciary Funds Pension Trust Funds Combining Statement of Fiduciary Net Position 200 Combining Statement of Changes in Fiduciary Net Position 201 Consolidated Year -End Financial Report 202 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards 203 SUPPLEMENTAL SCHEDULES General Long -Term Debt Long -Term Debt Payable by Governmental Funds 207 Long -Term Debt Requirements General Obligation Bonds of 2014 209 General Obligation Refunding Bonds of 2016A 210 General Obligation Bonds of 2017 211 General Obligation Bonds of 2018A 212 11 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION - Continued PAGE SUPPLEMENTAL SCHEDULES - Continued 220 Long -Term Debt Requirements - Continued 222 General Obligation Bonds of 2018B 213 General Obligation Bonds of 2019A 214 General Obligation Bonds of 2019B 215 General Obligation Bonds of 2022A 216 General Obligation Refunding Bonds of 2022B 217 STATISTICAL SECTION (Unaudited) Net Position by Component - Last Ten Fiscal Years 220 Changes in Net Position - Last Ten Fiscal Years 222 Fund Balances of Governmental Funds - Last Ten Fiscal Years 224 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 226 Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years 228 Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years 230 Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago 232 Property Tax Levies and Collections - Last Ten Fiscal Years 233 Sales Taxes by Category - Last Ten Fiscal Years 234 Business District Sales Taxes by Category - Last Ten Fiscal Years 236 Home Rule Sales Taxes by Category - Last Ten Fiscal Years 238 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 240 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 241 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 242 Schedule of Direct and Overlapping Governmental Activities Debt 243 Schedule of Legal Debt Margin 244 Demographic and Economic Statistics - Last Ten Fiscal Years 245 Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago 246 Full -Time Equivalent Employees by Function/Program - Last Ten Fiscal Years 248 Operating Indicators by Function/Program - Last Ten Fiscal Years 250 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 252 Additional Disclosures Required by SEC Rule 15c2-12 255 12 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 13 VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Officials December 31, 2022 Agostino S. Filippone Richard F. Rogers Colleen E. Saccotelli LEGISLATIVE Mayor Paul Wm. Hoefert Trustees Terri Gens John J. Matuszak Michael 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 Michael Eterno, Chief of Police John Dolan, Fire Chief Sean P. Dorsey, Director of Public Works 1 14 VILLAGE OF MOUNT PROSPECT, ILLINOIS Organizational Structure Village Board Mayor Six Trustees Elected At Lairge Off M TR#T ff IT = Fire 'Pension ponce Pension Village, 'Manager Firaince, Economic J0,p 'j Development Board Board --------------- Commission ------------- 0 i jo Cornimission Fire & Ic Foreign Fire Finance p 0' alron Planning & =Pofice Commissioners 'su =InsurarnceTax Board Boa Department [a :ns S ty a=feZoning Comml sso n Commission [Sntg Hurnan Services 11 Ints =peclaEv! Sister Cities Is =CammsZosn Department Colm ni on isso ission lice �E ; KI ...................................................................... . (Fire Department r D,e tme 19 Ey 15 2 MAYOR Paul wrrw. Hoefeirt TRUSTEES "Vincent J. Pante Agostino S. Filippone herd Denis William A. Crossi John J. MatUszak Colleen E. Saccotelli June 1, 2023 VILLAGE MANAGER Michael ]. Cassady Phone: 847/392-6009 Fax: 847/392-6022 www.rnountprospect.org 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 The Annual Comprehensive Financial Report of the Village of Mount Prospect, Illinois for the fiscal year ended December 31, 2022 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, 2022, 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, 2022, 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 requires 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 16 Profile of the Village of Mount Prospect The Village of Mount Prospect, a home rule community as defined by the Illinois Constitution, was incorporated on 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 56,852 (2020 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, overseeing the day-to-day operations of the Village, and 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 2022. 4 17 • COVID-19 Pandemic — COVID-19, a global pandemic started in February 2020, impacted the Village operations starting in March 2020, and continued for most of the year 2021. The Village felt its residue impact in early 2022 and the remaining portion of the year was a great recovery from the pandemic. Despite the pandemic, the Village did not experience any revenue losses. • HQ Residence Project: The Village entered into a TIF redevelopment agreement with T2 Capital Management, LLC to demolish and redevelop its old Police and Fire HQ building. The redevelopment is named HQ Residence and will have 6 -storey 88 luxury rental units and 3,500 sq. ft. of retail space. The project is expected to be completed in 2025. The Village received $2.0 million from the sale of old Police and Fire HQ buildings in 2022. • Cloud HQ: The old United Airline HQ campus in the Village of Mount Prospect was bought by a well- known cloud/data center construction and management company called Cloud HQ. Cloud HQ will be building a 1.8 million sq. ft. data center and will be investing $2.5 billion in the Village of Mount Prospect. The project is expected to bring over 1,000 construction jobs and upon completion, the job site will employ more than 450 full-time engineers, security, and maintenance personnel. The project is very crucial for the Village and is expected to bring in significant revenues from property and utility taxes. A groundbreaking ceremony was hosted by Cloud HQ in 2022 and the first building of data centers is expected to open in 2025-2026. • 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. • Streetlights Program — The Village completed the conversion of 80 streetlights to LED fixtures, reducing energy usage on Central Road. • Traffic Control on Major Corridors — The Village completed Phase II engineering for the Rand Road/ Central Road/Mount Prospect Road intersection. The Village also started Phase I engineering for the Rand Road/Kensington Road/Route 83 intersection. • Interconnect: The Village will be deploying $5.5 million from the American Rescue Plan toward an interconnect project with the Northwest Water Commission. The project will provide a backup source for the water supply and will allow the Village to discontinue some of its deep wells, which may be contaminated and may not provide drinking water in the long run. An intergovernmental agreement was approved by the Village Board in 2022 and the project is expected to be completed by December 2024. • South Mount Prospect TIF: The Village successfully established its South Mount Prospect Tax Increment Financing District in 2022. The Tax Increment Financing District is expected to generate significant increment supporting infrastructure needs of the Village within the TIF district in coming years. The Cloud HQ data center project will be one of the main projects creating incremental value for the TIF district. • Citizen Summit — The Village hosted its first Citizens' Summit in 2022 and received feedback from its residents for its strategic planning. It was a successful exercise conducted by the Village and will provide a guideline for coming years' strategic planning process. • Triple Crown Winner - GFOA's Triple Crown recognizes governments who have received GFOA's Certificate of Achievement for Excellence in Financial Reporting, Popular Annual Financial Reporting Award, and the Distinguished Budget Presentation Award. The Village of Mount Prospect received such a prestigious status by winning all three awards. There are 317 towns that received this status throughout the nation and the Village is proud to be on that list. • Bond Issuance — The Village issued a water/sewer capital project bonds series 2022 in February 2022. The Village also refunded series 2013 bonds in 2022 and captured savings in the future interest costs totaling $450,000. While executing these bond issuances, the Village has obtained an affirmation on its current bond ratings, which stands at AA+ with stable outlook. The Village is hopeful to receive an upgrade on its next credit rating in 2025/2026. • Revenue Outperformance — The Village's General Fund revenues have outperformed significantly. The Village has seen significant increase in its intergovernmental revenues received from the State of Illinois. This item is discussed in detail in the Management Discussion and Analysis section. 5 18 Suspension of Vehicle Stickers — The Village approved a one-year suspension (for the year 2023) of the Vehicle Sticker program, while evaluating the long-term options for this program. The program generated $1.3 million in revenue and was earmarked for the Street Construction Projects. Recent increases in the intergovernmental revenues have allowed the Village to allocate some of the outperforming revenue sources as a replacement for the vehicle sticker revenues. This program will further be evaluated during the budget season for the year 2024. Please refer to the Strategic Plan tab of the 2023 Annual Budget document for a complete listing of major initiatives and accomplishments. All Departments continue to perform exceptionally well by 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 by the GFOA and Mount Prospect was recognized as a Tree City U.S.A. for the 38" consecutive year. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Village operates. Local economy. The Village continues to benefit from growth in the local economy. There are several 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 tax is 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, 2022, were $31.1 million compared to $29.3 million for the previous year, an increase of 6.1 percent. The Village of Mount Prospect represents the fifth largest center of economic development in the State of Illinois. The economic segment generating the most sales tax contains products with inelastic demand, which protects the Village's sales tax revenue. Besides that, the 2020 Census data reflected an increase of 2,685 in the Village's population. The newly added population counts will result in additional per capita allocation from the State of Illinois (income tax, motor fuel tax and use tax). The global economy experienced a very high inflationary environment in 2022. The inflation index CPI -U recorded a 40 -year high mark in June 2022 at 9.1 percent. The current rate of inflation, labor shortage, supply chain issues, global uncertainties, market conditions and certain other external factors are affecting the regional economy and the Village is not an exception to these impacts. The Village is in a strong financial position and has no immediate concern about any short-term impacts of these factors. However, staff is evaluating long-term impacts of these factors and working to create an improvised financial plan that can provide sustainable and long- term support for the Village's operations. The Village Administration proposed starting an Economic Emergency Fund in FY 2023. The Finance Commission and the Village Board supported the initiative and the Board approved creation of an Economic Emergency Fund with $6.5 million initial investment. Conservative budget practices, robust internal controls, strong fiscal policies, and measures have led the Village in creating a strong financial position and strengthening. 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 Maine Township. Due to the last 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 assessed values have restored the equalized assessed value of the Village back to its 2008 - 2009 level. The total equalized assessed value for the tax year 2022 (after exemptions) was $1,846,400,810. With new development in 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 2022 (tax payable in 2023). The Village is also expecting an increase in the assessment levels due to a regular triennial assessment cycle in 2022 (tax payable in 2023). 6 19 Mount Prospect's average unemployment rate during 2022 was 3.1%. This is a slight increase from the prior year (2.8% in 2021). The average unemployment rate for Cook County for 2022 was 4.4%, while the same for the State of Illinois was 4.6%. Mount Prospect's median family income of $92,477 as of July 1, 2022 (per the census.gov data) was 28% higher than the median for Cook County ($72,121) and 27% higher than the median for the State of Illinois ($72,563). 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 1-90 and 1-294, 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, despite the pandemic, the Village revenues have performed consistently due to a strong and diversified tax base. The United Airline HQ Campus was bought by Cloud HQ in December 2021. Cloud HQ is building a 1.8 million sq. ft. data center and is investing $2.5 billion in the Village of Mount Prospect. Recently, the Chicago Bears (NFL team) has announced the possibility of making Arlington Heights Racecourse as their new home, the Village of Mount Prospect Village Hall is approximately 5 miles away. The Bears will possibly be building an NFL stadium along with mix -used space. This project is expected to generate significant opportunities for all the surrounding towns including the Village of Mount Prospect. Long-term financial planning. In 2003, the Village conducted its first long-range financial planning workshop. The goal of the workshop was to put the Village's financial condition back on fine 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 Village has continued this process since 2003 and have conducted annual financial planning and budgeting workshops regularly. During FY 2022, the Village also conducted its first Citizens' Summit and the Village received feedback on its current strategic planning and explored various ideas. During workshops in 2022, the Village staff discussed prior year's unaudited and audited results, quarterly financial performances, and major items of interests. 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 (2023-2027), the Village has identified $150.9 million in water and sewer, flood control, street, public building, equipment, and other miscellaneous capital projects. The second is the Village Strategic Plan for 2023 completed around mid -2022. 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 August 2022 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 ending December 31, 2021. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. 7 20 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 only one year. The Village of Mount Prospect has received Certificates 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 January 1, 2022, and ending December 31, 2022. 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 2023 Budget document. Acknowledgments 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 - Deputy Finance Director, Accountants 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 6 - ;R Z� �zl Amit R. Thakkar Finance Director 8 21 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Mount Prospect Illinois For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 I Executive Director/CEO 9 22 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 23 INDEPENDENT AUDITORS' REPORT This section includes the opinion of the Village's independent auditing firm. 11 24 668 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 1, 2023 The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois Report on the Audit of the Financial Statements Opinion 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, 2022, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. 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, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Village, as of December 31, 2022, 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. Basis for Opinions 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. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 12 25 Village of Mount Prospect, Illinois June 1, 2023 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary comparison schedules, and required pension and other post -employment benefit (OPEB) schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. 13 26 Village of Mount Prospect, Illinois June 1, 2023 Supplementary 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 other supplementary information and supplemental schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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, other supplementary information and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2023, 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 27 MANAGEMENT'S DISCUSSION AND ANALYSIS 15 28 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For the Fiscal Year Ended December 31, 2022 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 ANNUAL COMPREHENSIVE 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 29 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 positive $15.7 million, as restated, to a positive $39.1 million. The net increase of $23.4 million is mainly attributable to intergovernmental revenues including state sales tax, income tax, use tax, ambulance billing fees and government grants, as well as under budget performance by all the Village Departments. The net position for governmental activities is negative $11.1 million, while the net position for the business -type activities is apositive $50.1 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 30 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 1 Statement of Net Position As of December 31, 2022 (in millions) Governmental Business -Type Activities Activities Totals 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 2022 2021 2022 2021 2022 2021 S 133.1 118.7 103.3 119.3 31.0 51.8 19.8 48.3 164.1 170.5 123.1 167.6 251.8 42.7 222.6 26.5 82.8 1.4 68.1 1.5 334.6 44.1 290.7 28.0 294.5 249.1 84.2 69.6 378.7 318.7 19.4 249.4 12.1 214.4 2.3 28.9 2.2 20.3 21.7 278.3 14.3 234.7 268.8 37.0 226.5 52.4 31.2 2.7 22.5 1.7 300.0 39.7 249.0 54.1 305.8 278.9 33.9 24.2 339.7 303.1 42.4 38.3 29.0 29.7 71.4 68.0 8.8 7.2 8.8 7.2 (62.4) (75.3) 21.2 15.8 (41.2) (59.5) (11.2) (29.8) 50.2 45.5 39.0 15.7 (Note: There may be some slight differences in totals due to rounding.) 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 31 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Current Year Impacts Governmental activities net position increased by $18.7 million and the business -type activities net position increased by $4.7 million. The governmental activities total assets and deferred outflows increased by $45.5 million and the governmental activities total liabilities and deferred inflows increased by $26.8 million, of which $34.9 million of increases are attributable to the increases in the noncurrent liabilities and $15.4 million of decreases in the deferred inflows of resources, mainly due to changes in Police Pension and Fire Pension related items. Increases in the net pension liability for Police and Fire Pension Funds are the main reason for the increase in the noncurrent liabilities. The total assets increased by $29.2 million in governmental activities. Of this amount, $29.8 million is due to an increase in the current and other assets and $0.6 million in attributable to a decrease in the capital assets. The increase in deferred outflows of $16.2 million for the governmental activities was due to increases in the pension -related items for Police, Fire and IMRF pension funds. The net position of the business -type activities increased by $4.7 million. The increase in total net position is mainly attributable to the current surplus of revenues over expenditures. The business -type activities total assets and deferred outflows increased by $14.5 million and the business -type activities total liabilities and deferred inflows increased by $9.8 million. The current assets increased by $11.2 million, mainly attributable to the use of unspent bond proceeds in 2021 for the appropriate projects. The business -type capital assets increased by $3.5 million. The liabilities for business -type activities increased from $22.5 million to $31.3 million. The noncurrent liabilities increased by $8.7 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 for the primary government in 2022 was an increase of $23.4 million versus an increase of $30.8 million in 2021. Activities for the governmental activities saw an increase in net position of $18.7 million from 2021, while activities for the business -type funds saw an increase in net position of $4.7 million from 2021. 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 32 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 2 Change in Net Position For the Year Ended on December 31, 2022 (in millions) Governmental Business -Type Activities Activities Totals 2022 2021 2022 2021 2022 2021 Revenues Program Revenues Charges for Services S 13.1 12.3 19.0 17.9 32.2 30.2 Operating Grants/Contributions 3.5 3.1 3.5 3.1 Capital Grants/Contributions 2.8 - - 2.8 General Revenues Property Taxes 20.4 20.5 20.4 20.5 Utility Taxes 3.2 3.1 3.2 3.1 Business District Taxes 0.3 0.3 0.3 0.3 Sales/Use Taxes 40.9 38.3 40.9 38.3 Income Taxes 9.3 7.2 9.3 7.2 Other Taxes 6.1 5.0 6.1 5.0 Investment Income (Loss) 0.6 (0.1) 0.4 - 0.9 (0.1) Other (0.2) 1.8 0.1 - (0.1) 1.8 97.2 94.3 19.5 17.9 116.7 112.2 Expenses General Government 7.3 5.9 7.3 5.9 Public Safety 44.9 34.7 44.9 34.7 Highways and Streets 14.1 14.0 14.1 14.0 Health 5.0 5.0 5.0 5.0 Welfare 1.7 2.0 1.7 2.0 Culture and Recreation 0.3 0.3 0.3 0.3 Interest on Long -Term Debt 5.2 3.7 5.2 3.7 Water and Sewer 14.6 15.6 14.6 15.6 Parking 0.2 0.2 0.2 0.2 78.5 65.6 14.8 15.8 93.3 81.4 Change in Net Position 18.7 28.7 4.7 2.1 23.4 30.8 Net Position - Beginning as Restated (29.8) (58.4) 45.5 43.4 15.7 (15.0) Net Position - Ending (11.1) (29.7) 50.2 45.5 39.1 15.8 (Note: There may be some slight differences in totals due to rounding.) (See independent auditor's report) 20 33 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 42.0% of the Village's total budget. 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 - There is a rising rate environment and the inflation is at thirty-year high mark. The Village's budget and financial plan is flexible to accommodate any short-term impacts on inflation. The Village is a major consumer of certain commodities, supplies, fuels and parts and the cost of these commodities and supplies has increased due to high inflation. CURRENT YEAR IMPACTS Governmental Activities Revenue: Total revenues for the Village's Governmental Activities for 2022 were $97.2 million. The year 2022 was a challenging year due to the pandemic, but the Village revenues, especially intergovernmental revenues were stronger than usual. The Village collected an all time high state sales tax and income tax. The sales and use tax revenue totaled $40.9 million, an increase of $2.6 million compared to 2021 revenues totaling $38.3 million. The income tax collection totaled $9.3 million, an increase of $2.1 million compared to the 2021 collection of $7.2 million. Other taxes totaled $6.1 million for the year while the Village collected property taxes totaling $20.4 million. Overall, the Village recognized revenues totaling $97.2 million, an increase of $2.9 million compared to 2021 revenues totaling $94.3 million. (See independent auditor's report) 21 34 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Governmental Activities (cont.) Expenses: Total expenses for the Village's Governmental Activities for 2022 were $78.5 million. Public Safety, which includes Police and Fire, accounts for the largest portion of governmental expenses. Total Public Safety expenses in 2022 were $44.9 million, an increase of $10.2 million from 2021. The increase in the expenditures are mainly attributable to the personnel, pension costs and the depreciation expenditures for the new Police and Fire Headquarters. 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 $14.1 million. The General Government expenditures totaled $7.3 million, an increase of $1.4 million from the prior year. This increase of $1.4 million is mainly attributable to the decreased operating expenditures in prior year due to the cancellation of various Village sponsored events due to COVID-19, an overall reduction in the operating expenditure for the General Governmental operations. A few of the budgeted projects and line items were not completed due to the supply chain issues during the year 2022 and are expected to be completed in the year 2023. Business -Type Activities Revenues: Total revenues for the Village's Business -Type Activities for 2022 were $19.4 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 $19.4 million generated in 2022, $18.9 million is from water sales and sewer fees and charges, $0.1 million is from parking operations. The investments are marked to market and due to rising rate environment, the investment income is reporting a loss, which is an accounting adjustments. Upon maturity, the recognized unrealized loss will be reversed and the investment income will be recognized. The Village has intention and capacity to hold its investment through their maturities. Expenses: Total expenses for the Village's Business -Type Activities for 2022 were $14.8 million. Of the total expenses for business -type activities, $14.6 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 an increase of $13.4 million in 2022 from $34.8 million to $48.2 million. In 2022, the General Fund revenues came in under the approved 2022 budget. The Village earned $75.8 in General Fund revenues against the approved budget of $77.3. The final Village budget had anticipated an increase in the General Fund's fund balance of $8.1 million; however, due to reduced operating expenditures and outperforming revenues, the increase in the fund balance was $13.4 million. Out of the total fund balance of $48.2 million, $3.7 million is considered assigned fund balance for TIF redevelopment projects per the approved redevelopment agreement. During the year 2022, the income tax revenue outperformed by $3.0 million, and the use tax outperformed by $0.3 million. The sales tax also outperformed by $6.8 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 2022 was the intergovernmental revenues totaling $43.8 million, while the property taxes totaled $16.2 million. (See independent auditor's report) 22 35 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The licenses and permit fees outperformed by $0.3 million and totaled $2.6 million. Charges for services also outperformed by $0.6 million, mainly due to additional ambulance billing fees revenue collected from the Ground Emergency Medical Transport program. The Village also collected $3.5 million in the American Rescue Plan. The amount is classified as deferred revenue for the year 2022 and will be recognized as revenue over the period of two years from 2023 to 2024. General Fund Budgeting Highlights During 2022, 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, 2022 (in millions) Change in Fund Balance Other Major Funds (3.3) 8.1 13.4 (Note: There may be some slight differences in totals due to rounding.) There are two (2) other Major Funds for Fiscal Year ended December 31, 2022. These two Funds are 1) Prospect and Main TIF Fund and 2) Debt Service Fund. 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 2022 were $1.3 million, while the total revenues for 2021 were $1.5 million. The total expenses for 2022 were $1.5 million, of which $0.4 million was used for capital outlay items and $1.0 million was used for the debt service payments. The TIF district also received $2.0 million from the disposal of capital assets. (See independent auditor's report) 23 36 Original Final Budget Budget Actual Revenues and Other Financing Sources Taxes $ 23.3 23.3 24.3 Intergovernmental 37.4 47.1 43.8 Other 5.2 6.9 7.7 Total Revenues and Other Financing Sources 65.9 77.3 75.8 Expenditures and Other Financing Uses Expenditures 61.4 60.7 57.7 Transfers Out 7.8 8.5 4.7 Total Expenditures and Other Financing Uses 69.2 69.2 62.4 Change in Fund Balance Other Major Funds (3.3) 8.1 13.4 (Note: There may be some slight differences in totals due to rounding.) There are two (2) other Major Funds for Fiscal Year ended December 31, 2022. These two Funds are 1) Prospect and Main TIF Fund and 2) Debt Service Fund. 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 2022 were $1.3 million, while the total revenues for 2021 were $1.5 million. The total expenses for 2022 were $1.5 million, of which $0.4 million was used for capital outlay items and $1.0 million was used for the debt service payments. The TIF district also received $2.0 million from the disposal of capital assets. (See independent auditor's report) 23 36 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Other Major Funds - Continued Debt Service - This Fund is used to accumulate monies for the payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2022 were $5.6 million, an increase of $0.3 million from the prior year. Of this total revenue amount, $2.8 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 $1.2 million was from other taxes. Total expenditures for 2022 were $6.4 million, an decrease of $(0.3) from the prior year, mainly due to a refunding the 2013 series general obligation bonds. Ending fund balance decreased by $0.7 million to $1.1 million. Capital Assets At the end of 2022, the Village had a combined total of $170.5 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) (Note: There may be some slight differences in totals due to rounding.) This amount represents a net increase (including additions and deletions) of $2.9 million from 2021. The following reconciliation in Table 5 summarizes the changes in Capital Assets. (This space in intentionally left blank.) (See independent auditor's report) 24 37 Governmental Business -Type Activities Activities Totals 2022 2021 2022 2021 2022 2021 Land $ 15.3 15.6 17.3 17.3 32.6 32.9 Construction in Progress 2.5 9.6 3.6 2.0 6.1 11.6 Buildings 60.6 64.7 1.2 1.3 61.8 66.0 Improvements Other than Buildings 1.0 1.0 1.0 1.0 Vehicles 4.2 4.6 4.2 4.6 Machinery and Equipment 4.1 3.5 1.1 1.2 5.2 4.7 Infrastructure 31.0 20.3 28.6 26.5 59.6 46.8 118.7 119.3 51.8 48.3 170.5 167.6 (Note: There may be some slight differences in totals due to rounding.) This amount represents a net increase (including additions and deletions) of $2.9 million from 2021. The following reconciliation in Table 5 summarizes the changes in Capital Assets. (This space in intentionally left blank.) (See independent auditor's report) 24 37 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 $ 119.3 48.3 167.6 Additions Depreciable 6.8 0.9 7.7 Nondepreciable 0.6 3.5 4.1 Retirements Depreciable (6.7) (0.2) (6.9) Depreciation (5.1) (0.9) (6.0) Retirement 4.0 0.1 4.1 Ending Balance 118.9 51.7 170.6 (Note: There may be some slight differences in totals due to rounding.) Table 5 above shows the change in capital assets during 2022. This year's major additions to the capital assets include the following (in millions): Governmental Activities Various construction projects in -progress - $0.6 Vehicles for Public Safety, Public Works and Village Fleet - $0.2 Purchases of various machinery & equipment - $0.4 Infrastructure Improvements - $6.2 Business -Type Activities Various construction projects in -progress - $3.5 Infrastructure Improvements - $0.9 More detailed information on capital asset activity can be found in Note 3 of the notes to the financial statements. (See independent auditor's report) 25 K� VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Debt Outstanding The Village of Mount Prospect had total long-term debt and loans payable of $284.7 million as of December 31, 2022. Of this amount, $254.9 is governmental activities and $29.8 is business -type activities. Long-term debt is comprised of general obligation debt, compensated absences to employees, other post -employment benefits (OPEB), notes payable, claims and judgements, and net pension liabilities for Police and Fire. Pension liability for police and fire increased by $41.3 million. The compensated absences had a net increase of $0.1 million, while the total OPEB (Other Post Employment Benefit) liability decreased by $4.1 million. Decreases in long term debt include the retirement of $3.7 million (net of retirement of $13.4 million) in general obligation debt. 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, 2022. Total Village revenues for 2022 continued to see positive increases from the prior year. Despite COVID-19 and other factors, the Village did not experience a shortfall in the total General Fund revenues, instead, some of the revenue sources, including the state sales tax, home rule sales tax and income tax revenues, recorded an all-time high revenue amount. The Village has pledged $7.3 million from the unassigned fund balance for various items specified under Fund Balance Classification (Note 3). The assignment of fund balance is done for debt services, pension stabilization, TIF redevelopment and for capital projects. The unassigned fund balance as of December 31, 2022, is $40.6 million. The Village Board had set as its benchmark a level of reserves equal to 25% of subsequent year expenditures. This benchmark is revised in early 2023 and the new fund balance requirements are set between 30 to 50 percent. The amount of fund balance as of December 31, 2022, represents 52.9 percent of the 2023 General Fund Budget. 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 2008/2009. Continuing challenges in 2022 and years to come include reductions in revenue due to state budgetary issues, inflation, supply -chain issues, rising personnel related costs (wages, insurance, etc.) and the funding of the public safety pensions. Approximately 42% of the operating budget is made up of these personnel and related costs. The Village's population is on rise. Per the release 2020 Census data, the Village gained 2,685 more residents and now the population totals at 56,852. The added population is expected to bring additional per capita taxes (use tax, income tax and motor fuel tax) from the State of Illinois. Additionally, the Village also initiated an Economic Emergency Fund in early 2023, and have deposited $6.5 million in the fund, which will serve the Village well in coming years in dealing with various economic uncertainties and emergencies. The initial funding for the Economic Emergency Fund is executed using the $13.4 million surplus from General Fund for the year 2022. Due to negative market returns, both of the Village's public safety pension funds have experienced higher amounts of unrealized losses in their investment values. Downward pressure in the market as well as decrease in the interest rate assumption have caused an increase in the annual pension costs to be funded. The Village is committed to funding its pension fund to 100% by 2040 and have started a pension stabilization fund in 2022, which will allow the Village to deploy alternative revenue sources towards the future pension costs. The Village also approved a new Tax Increment Financing District in the southern part of the Village. The revenue generated by the TIF district will allow the Village to conduct various infrastructure improvement projects in the area. The TIF district includes under construction data centers by Cloud HQ, which represents a $2.5 billion investments from the private sector. The TIF is expected to generate increment starting year 2024/2025. (See independent auditor's report) 26 39 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The Village's average unemployment for 2022 was 3.1 percent. This is below the state and national unemployment rates of 4.6 percent and 3.5 percent, respectively. The Village is mainly divided between Elk Grove Township and Wheeling Township, and a small portion of the Village is within Maine Township. 2022 is the year of triennial assessments and the data is expected to be released in mid to late 2023. The Village is expected to increase its equalized assessed value base due to new constructions in the downtown area. The 2023 (amended) budget represents a marginal decrease of 0.2% from the amended 2022 Budget and totals $160.2 million. The General Fund increased $8.7 million, or 12.5% from the prior year due to projects funded from the American Rescue Plan, as well as cost of living adjustments and increased public safety pension costs. Of the total budget of $160.5 million, the operating budget totals $97.2 million and Community Investment Program (capital improvement plan) totals $40.4 million. During May 2022, the Village received $3.5 million as the second installment of the American Rescue Plan. The amount is classified as deferred revenue for the year 2022. The amount is expected to fund various important and (eligible) projects and programs for the Village. The Village will be conducting a critical water interconnect project using the American Rescue Plan grant. 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 Street, Mount Prospect, Illinois 60056. (See independent auditor's report) 27 40 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. 28 41 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position December 31, 2022 See Following Page 29 42 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position December 31, 2022 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 Net Pension Asset - IMRF 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 $ 82,139,493 26,269,674 108,409,167 33,795,714 2,106,598 35,902,312 1,735,253 397 1,735,650 3,281,866 — 3,281,866 1,051,185 301,231 1,352,416 122,003,511 28,677,900 150,681,411 17,833,741 20,927,531 38,761,272 205,813,727 54,838,676 260,652,403 (104,897,677) (23,985,544) (128,883,221) 118,749,791 51,780,663 170,530,454 1,419,870 — 1,419,870 — 464,034 464,034 9,721,745 1,870,244 11,591,989 11,141,615 2,334,278 13,475,893 129,891,406 54,114,941 184,006,347 251,894,917 82,792,841 334,687,758 2,071,441 398,498 2,469,939 20,669,846 — 20,669,846 17,055,417 — 17,055,417 2,632,632 249,124 2,881,756 — 720,000 720,000 312,096 — 312,096 42,741,432 1,367,622 44,109,054 294,636,349 84,160,463 378,796,812 The notes to the financial statements are an integral part of this statement. 43 30 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 - 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 - Leases Deferred Items - IMRF 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 Pension Stabilization Debt Service Unrestricted (Deficit) Total Net Position Primary Government Governmental Activities Business -Type Activities Totals $ 2,746,860 1,031,250 3,778,110 1,529,994 122,163 1,652,157 4,501 191,539 196,040 382,066 - 382,066 230,832 77,311 308,143 8,937,675 7,483 8,945,158 979,429 59,625 1,039,054 176,253 - 176,253 3,241,335 840,000 4,081,335 1,126,604 - 1,126,604 19,355,549 2,329,371 21,684,920 3,191,764 238,501 3,430,265 365,455 - 365,455 68,040,859 - 68,040,859 58,499,973 - 58,499,973 9,420,116 891,417 10,311,533 - 750,000 750,000 73,403,031 27,041,659 100,444,690 36,473,984 - 36,473,984 249,395,182 28,921,577 278,316,759 268,750,731 31,250,948 300,001,679 16,372,661 - 16,372,661 147,988 - 147,988 10,614,526 2,041,995 12,656,521 1,805,447 - 1,805,447 1,101,137 - 1,101,137 6,968,946 659,465 7,628,411 37,010,705 2,701,460 39,712,165 305,761,436 33,952,408 339,713,844 42,417,521 28,959,971 71,377,492 701,853 - 701,853 543,266 - 543,266 5,982,863 - 5,982,863 750,000 - 750,000 864,746 - 864,746 (62,385,336) 21,248,084 (41,137,252) (11,125,087) 50,208,055 39,082,968 The notes to the financial statements are an integral part of this statement. 44 31 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2022 Governmental Activities General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Interest on Long -Term Debt Total Governmental Activities Business -Type Activities Water and Sewer Parking Total Business -Type Activities Total Primary Government Program Revenues Charges Operating Capital for Grants/ Grants/ Expenses Services Contributions Contributions $ 7,310,783 7,758,489 44,926,770 3,938,414 781,884 — 14,135,705 1,435,828 2,218,973 — 4,941,948 1,716,275 — 418,646 — 272,844 5,176,985 — 31,000 — 78,481,310 13,132,731 3,450,503 — 14,576,309 18,904,331 180,252 115,000 14,756,561 19,019,331 93,237,871 32,152,062 3,450,503 — The notes to the financial statements are an integral part of this statement. 45 32 Net (Expenses)/Revenues Governmental Business -Type Activities Activities Totals 447,706 — 447,706 (40,206,472) — (40,206,472) (10,480,904) — (10,480,904) (4,941,948) — (4,941,948) (1,297,629) — (1,297,629) (272,844) — (272,844) (5,145,985) — (5,145,985) (61,898,076) — (61,898,076) 4,328,022 4,328,022 (65,252) (65,252) 4,262,770 4,262,770 (61,898,076) 4,262,770 (57,635,306) General Revenues Taxes Property 20,423,578 — 20,423,578 Utility 3,215,723 — 3,215,723 Business District 307,733 — 307,733 Home Rule Sales 7,349,436 — 7,349,436 Food and Beverage 1,596,735 — 1,596,735 Real Estate Transfer 1,555,691 — 1,555,691 Municipal Motor Fuel 739,334 — 739,334 Hotel/Motel 339,183 — 339,183 Other Taxes 440,448 — 440,448 Intergovernmental - Unrestricted Income Taxes 9,263,878 — 9,263,878 State Sales and Local Use Tax 33,516,982 — 33,516,982 Replacement Taxes 1,461,578 — 1,461,578 Charitable Games 2,955 — 2,955 Investment Income 575,013 359,014 934,027 Miscellaneous (159,582) 53,427 (106,155) Transfers - Internal Activity (75,000) 75,000 — Total General Revenues 80,553,685 487,441 81,041,126 Change in Net Position 18,655,609 4,750,211 23,405,820 Net Position - Beginning as Restated (29,780,696) 45,457,844 15,677,148 Net Position - Ending (11,125,087) 50,208,055 39,082,968 The notes to the financial statements are an integral part of this statement. 46 33 VILLAGE OF MOUNT PROSPECT, ILLINOIS Balance Sheet - Governmental Funds December 31, 2022 ASSETS Cash and Investments Receivables - Net of Allowances Property Taxes Other Taxes Leases Other Due from Other Governments Due from Other Funds Inventories Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Retainage Payable Due to Other Governments Due to Other Funds Other Payables Total Liabilities General $ 46,145,782 17,863,091 9,727,019 176,591 296,513 296,195 10,000 1,137 406,518 74,922,846 552,803 1,473,874 4,501 378,246 1,543,107 8,412,596 12,365,127 DEFERRED INFLOWS OF RESOURCES Property Taxes 14,164,411 Deferred Items - Leases 147,988 Total Deferred Inflows of Resources 14,312,399 Total Liabilities and Deferred Inflows of Resources 26,677,526 FUND BALANCES Nonspendable 407,655 Restricted — Committed — Assigned 7,250,000 Unassigned 40,587,665 Total Fund Balances 48,245,320 Total Liabilities, Deferred Inflows of Resources and Fund Balances 74,922,846 The notes to the financial statements are an integral part of this statement. 47 34 Prospect and Main Debt TIF District Service Nonmajor Totals 1,927,204 448,161 19,708,413 68,229,560 252,753 2,833,753 — 20,949,597 — — 1,981,325 11,708,344 — — — 176,591 651,152 947,665 — 21,914 1,407,779 1,725,888 — — — 10,000 — — — 1,137 100,675 507,193 2,179,957 3,303,828 23,849,344 104,255,975 2,400 — 531,804 1,087,007 13,001 1,486,875 — — — 4,501 3,820 382,066 10,000 1,553,107 — — 1,630,681 10,043,277 2,400 — 2,189,306 14,556,833 2,208,250 — 16,372,661 — — 147,988 — 2,208,250 — 16,520,649 2,400 2,208,250 2,189,306 31,077,482 100,675 508,330 2,177,557 1,095,578 5,800,425 9,073,560 1,289,792 1,289,792 14,469,146 21,719,146 — 40,587,665 2,177,557 1,095,578 21,660,038 73,178,493 2,179,957 3,303,828 23,849,344 104,255,975 The notes to the financial statements are an integral part of this statement. 48 35 VILLAGE OF MOUNT PROSPECT, ILLINOIS Reconciliation of the Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities December 31, 2022 Total Governmental Fund Balances $ 73,178,493 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. 118,749,791 Less: Internal Service Capital Assets (7,345,950) A net pension asset is not considered to represent a financial resource and therefore is not reported in the funds. Net Pension Asset - IMRF 9,721,745 Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF (8,543,085) Deferred Items - Police Pension 18,864,399 Deferred Items - Firefighters' Pension 15,954,280 Deferred Items - RBP (4,164,218) 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. 25,202,939 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated Absences Payable (4,119,306) Net Pension Liability - Police Pension (68,040,859) Net Pension Liability - Firefighters' Pension (58,499,973) Total OPEB Liability - RBP (9,046,257) General Obligation Bonds Payable - Net (76,644,366) Unamortized Loss on Refunding 312,096 Business District Limited Tax Note Payable (37,600,588) Plus: Amounts Recorded in the Governmental Funds Balance Sheet 1,126,604 Accrued Interest Payable (230,832) Net Position of Governmental Activities (11,125,087) The notes to the financial statements are an integral part of this statement. 49 36 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2022 See Following Page 37 50 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2022 Revenues Taxes Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Income Miscellaneous Total Revenues Expenditures General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Disposal of Capital Assets Debt Issuance Payment to Escrow Agent Transfers In Transfers Out Net Change in Fund Balances Fund Balances - Beginning as Restated Fund Balances - Ending The notes to the financial statements are an integral part of this statement. 38 General $ 24,280,375 43,843,735 2,568,330 3,938,175 313,457 606,334 291,728 75,842,134 7,121,399 39,820,193 8,807,969 128,135 1,562,184 303,830 57,743,710 18,098,424 508 (4,688,401) (4,687,893) 13,410,531 34,834,789 48,245,320 51 Prospect and Main Debt TIF District Service Nonmajor Totals 1,307,969 3,986,589 6,392,928 35,967,861 — 1,581,000 3,821,161 49,245,896 4,909,730 1,320,592 3,888,922 2,030,206 4,992,177 8,930,352 — — — 313,457 1,701 27,805 205,177 841,017 2,463,468 2,755,196 1,309,670 5,595,394 19,195,503 101,942,701 69,119 7,190,518 88,663 39,908,856 4,151,138 12,959,107 4,909,730 5,037,865 468,022 2,030,206 — — — 303,830 404,696 — 5,177,249 5,581,945 360,000 684,388 4,145,000 2,281,374 1,549,521 168,604 6,054,521 3,134,366 1,518,203 6,426,374 16,512,927 82,201,214 (208,533) (830,980) 2,682,576 19,741,487 1,990,309 1,990,817 — 8,230,000 — 8,230,000 — (8,249,328) — (8,249,328) — 163,401 4,450,000 4,613,401 — — — (4,688,401) 1,990,309 144,073 4,450,000 1,896,489 1,781,776 (686,907) 7,132,576 21,637,976 395,781 1,782,485 14,527,462 51,540,517 2,177,557 1,095,578 21,660,038 73,178,493 The notes to the financial statements are an integral part of this statement. 52 39 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, 2022 Net Change in Fund Balances - Total Governmental Funds $ 21,637,976 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the (60,908) Statement of Activities the cost of those assets is allocated over their estimated (22,804,494) useful lives and reported as depreciation expense. (18,489,561) Capital Outlays 7,431,107 Depreciation Expense (5,086,933) Disposals - Cost (6,984,498) Disposals - Accumulated Depreciation 4,048,094 Less: Internal Service Funds 539,284 Changes in certain revenues recognized as revenue only in the governmental activities. (1,550,000) An addition to a net pension asset is not considered to be an increase in a (701,463) financial asset in the governmental funds. 17,874 Change in Net Pension Asset - IMRF 7,043,430 The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF (3,922,405) Change in Deferred Items - Police Pension 18,517,274 Change in Deferred Items - Firefighters' Pension 14,896,408 Change in Deferred Items - RBP (3,722,649) 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 (60,908) Change in Net Pension Liability - Police Pension (22,804,494) Change in Net Pension Liability - Firefighters' Pension (18,489,561) Change in Total OPEB Liability - RBP 3,681,919 Debt Issuance (8,230,000) Loss on Refunding on Debt Issuance 159,328 Retirement of Debt 12,595,000 Amortization of Bond Premium 273,802 Amortization of Loss of Refunding (83,311) Accreted Interest on Business District Limited Tax Note Payable (701,463) Change in Accrued Interest Payable 17,874 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. (549,665) Changes in Net Position of Governmental Activities 18,655,609 The notes to the financial statements are an integral part of this statement. 53 40 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2022 See Following Page 41 54 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2022 Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service ASSETS Current Assets 20,927,531 — 20,927,531 833,205 Cash and Investments $ 25,934,241 335,433 26,269,674 13,909,933 Receivables - Net of Allowances (23,620,744) (364,800) (23,985,544) (10,429,557) Accounts - Billed 883,648 — 883,648 — Accounts - Unbilled 1,216,145 — 1,216,145 — Accrued Interest 11,846 Other 6,676 129 6,805 1,671 Due from Other Governments 397 — 397 9,365 Deposits - Insurance 2,334,278 — 2,334,278 3,281,866 Inventories 172,232 — 172,232 383,014 Prepaids 128,999 — 128,999 159,841 Total Current Assets 28,342,338 335,562 28,677,900 17,757,536 Noncurrent Assets Capital Assets Nondepreciable 20,927,531 — 20,927,531 833,205 Depreciable 54,473,876 364,800 54,838,676 16,942,302 Accumulated Depreciation (23,620,744) (364,800) (23,985,544) (10,429,557) Total Capital Assets 51,780,663 — 51,780,663 7,345,950 Other Assets Deposits - Insurance 1,419,870 Equity Interest in Joint Venture 464,034 — 464,034 — Net Pension Asset - IMRF 1,870,244 — 1,870,244 — Total Other Assets 2,334,278 — 2,334,278 1,419,870 Total Noncurrent Assets 54,114,941 — 54,114,941 8,765,820 Total Assets 82,457,279 335,562 82,792,841 26,523,356 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 398,498 — 398,498 — Deferred Items - RBP 249,124 — 249,124 104,482 Unamortized Asset Retirement Obligation 720,000 — 720,000 — Total Deferred Outflows of Resources 1,367,622 — 1,367,622 104,482 Total Assets and Deferred Outflows of Resources 83,824,901 335,562 84,160,463 26,627,838 The notes to the financial statements are an integral part of this statement. 55 42 Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service LIABILITIES Current Liabilities 238,501 - 238,501 41,510 Accounts Payable $ 1,019,664 11,586 1,031,250 116,746 Accrued Payroll 122,163 - 122,163 43,119 Retainage Payable 191,539 - 191,539 - Claims Payable 27,041,659 - 27,041,659 176,253 Accrued Interest Payable 77,311 - 77,311 - Other Payables 6,473 1,010 7,483 21,002 Compensated Absences Payable 59,625 - 59,625 10,377 General Obligation Bonds Payable 840,000 - 840,000 - Total Current Liabilities 2,316,775 12,596 2,329,371 367,497 Noncurrent Liabilities Compensated Absences Payable 238,501 - 238,501 41,510 Claims Payable 365,455 Total OPEB Liability - RBP 891,417 - 891,417 373,859 Asset Retirement Obligation 750,000 - 750,000 - General Obligation Bonds Payable 27,041,659 - 27,041,659 - Total Noncurrent Liabilities 28,921,577 - 28,921,577 780,824 Total Liabilities 31,238,352 12,596 31,250,948 1,148,321 DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF 2,041,995 - 2,041,995 - Deferred Items - RBP 659,465 - 659,465 276,578 Total Deferred Inflows of Resources 2,701,460 - 2,701,460 276,578 Total Liabilities and Deferred Inflows of Resources 33,939,812 12,596 33,952,408 1,424,899 NET POSITION Net Investment in Capital Assets 28,959,971 - 28,959,971 7,345,950 Unrestricted 20,925,118 322,966 21,248,084 17,856,989 Total Net Position 49,885,089 322,966 50,208,055 25,202,939 The notes to the financial statements are an integral part of this statement. 56 43 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds For the Fiscal Year Ended December 31, 2022 Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service Operating Revenues 4,737,791 12,420 4,750,211 (549,665) Charges for Services $ 18,904,331 115,000 19,019,331 11,725,323 Contributions 49,885,089 322,966 50,208,055 1,791, 584 Miscellaneous — (86,944) Total Operating Revenues 18,904,331 115,000 19,019,331 13,429,963 Operating Expenses Administration 12,636,872 180,252 12,817,124 3,074,835 Insurance and Claims 9,464,809 Depreciation and Amortization 840,404 — 840,404 1,226,486 Total Operating Expenses 13,477,276 180,252 13,657,528 13,766,130 Operating Income (Loss) 5,427,055 (65,252) 5,361,803 (336,167) Nonoperating Revenues (Expenses) Disposal of Capital Assets (8,933) — (8,933) 52,506 Interest Income 356,342 2,672 359,014 (266,004) Other Income 62,360 — 62,360 — Property Taxes (10,899) — (10,899) — Interest Expense (1,088,134) — (1,088,134) — (689,264) 2,672 (686,592) (213,498) Income (Loss) Before Transfers 4,737,791 (62,580) 4,675,211 (549,665) Transfers In — 75,000 75,000 — Change in Net Position 4,737,791 12,420 4,750,211 (549,665) Net Position - Beginning 45,147,298 310,546 45,457,844 25,752,604 Net Position - Ending 49,885,089 322,966 50,208,055 25,202,939 The notes to the financial statements are an integral part of this statement. 57 44 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended December 31, 2022 Governmental Cash Flows from Noncapital Financing Activities Property Taxes (10,899) — (10,899) — Transfers In — 75,000 75,000 — (10,899) 75,000 64,101 — Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets Purchase of Capital Assets Debt Issuance - Net 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 74,132 (4,398,395) Business -Type Activities - Enterprise — 10,159,542 — Activities — (825,000) — Water and — (1,088,134) — 3,848,013 Internal (65,252) 5,361,803 Sewer Nonmajor Totals Service Cash Flows from Operating Activities Income to Net Cash Provided by Receipts from Customers and Users $ 17,460,808 114,920 17,575,728 2,755,219 Interfund Services Provided — 1,226,486 Other Income (Expense) 10,732,468 Payments to Suppliers (9,668,959) (167,117) (9,836,076) (11,705,341) Payments to Employees (2,363,027) (17,154) (2,380,181) (980,642) 5,428,822 (69,351) 5,359,471 801,704 Cash Flows from Noncapital Financing Activities Property Taxes (10,899) — (10,899) — Transfers In — 75,000 75,000 — (10,899) 75,000 64,101 — Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets Purchase of Capital Assets Debt Issuance - Net 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 74,132 (4,398,395) — (4,398,395) (708,828) 10,159,542 — 10,159,542 — (825,000) — (825,000) — (1,088,134) — (1,088,134) — 3,848,013 — 3,848,013 (634,696) 356,342 2,672 359,014 (266,004) 9,622,278 8,321 9,630,599 (98,996) 16,311,963 327,112 16,639,075 14,008,929 25,934,241 335,433 26,269,674 13,909,933 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) 5,427,055 (65,252) 5,361,803 (336,167) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization 840,404 — 840,404 1,226,486 Other Income (Expense) 62,360 — 62,360 — (Increase) Decrease in Current Assets (1,443,523) (80) (1,443,603) 57,724 Increase (Decrease) in Current Liabilities 542,526 (4,019) 538,507 (146,339) Net Cash Provided by Operating Activities 5,428,822 (69,351) 5,359,471 801,704 The notes to the financial statements are an integral part of this statement. 58 45 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Fiduciary Net Position December 31, 2022 ASSETS Cash and Cash Equivalents Investments Illinois Police Officer's Pension Investment Fund Illinois Firefighters' Pension Investment Fund Due from Other Funds Prepaids Total Assets LIABILITIES Accounts Payable NET POSITION Net Position Restricted for Pensions Pension Tnist $ 3,751,702 77,792,601 67,998,655 1,543,107 18,863 151,104,928 31,558 151,073,370 The notes to the financial statements are an integral part of this statement. 59 46 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2022 Total Additions (16,475,932) Deductions Administration 137,542 Benefits and Refunds 13,804,716 Total Deductions 13,942,258 Change in Fiduciary Net Position (30,418,190) Net Position Restricted for Pensions Beginning 181,491,560 Ending 151,073,370 The notes to the financial statements are an integral part of this statement. 60 47 Pension Trust Additions Contributions - Employer $ 7,499,463 Contributions - Plan Members 1,832,622 Total Contributions 9,332,085 Investment Income (Loss) Interest Earned 350,992 Net Change in Fair Value (26,039,760) (25,688,768) Less Investment Expenses (119,249) Net Investment (Loss) (25,808,017) Total Additions (16,475,932) Deductions Administration 137,542 Benefits and Refunds 13,804,716 Total Deductions 13,942,258 Change in Fiduciary Net Position (30,418,190) Net Position Restricted for Pensions Beginning 181,491,560 Ending 151,073,370 The notes to the financial statements are an integral part of this statement. 60 47 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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. 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. 48 61 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 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. 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. 49 62 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued 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: 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 nine 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 63 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 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. 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.). 51 64 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued 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. 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. 52 65 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING - Continued 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. 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. 53 66 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 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. 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 a consumption/acquisition of net assets 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. 54 67 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY - Continued Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets, other than infrastructure, buildings and improvements, purchased or acquired with an original cost of over $20,000 and infrastructure, buildings and improvements with an original cost of over $50,000 are reported at historical cost, or estimated historical cost. 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. 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 Vehicles 2 - 20 Years Machinery and Equipment 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 governunental funds only if they have matured, for example, as a result of employee resignations and retirements. 55 68 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY - Continued 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. 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. 56 69 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 forin 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 OVER BUDGET IN INDIVIDUAL FUND The following fund had an excess of actual expenditures over budget as of the date of this report: Fund Excess Asset Seizure $ 5,569 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 Public Reserves Investment Management Trust. 57 70 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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. 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. 58 71 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Village Deposits. At year-end, the carrying amount of the Village's deposits for governmental and business -type totaled $27,654,107 and the bank balances totaled $28,773,504. In addition, the Village has $40,247,006 invested in IPRIME, and $40,508,054 invested in the Illinois Funds 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 and the IPRIME were rated AAAm by Standard & Poor's. 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. At year-end, the entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance. 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, and money market mutual funds are not subject to custodial credit risk. 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). 59 72 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund The Illinois Police Officers Pension Investment Fund (IPOPIF) is an investment trust fund responsible for the consolidation and fiduciary management of the pension assets of Illinois suburban and downstate police pension funds. IPOPIF was created by Public Act 101-0610, and codified within the Illinois Pension Code, becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the participating pension funds. Participation in IPOPIF by Illinois suburban and downstate police pension funds is mandatory. Investments of the Fund are combined in a. commingled external investment pool and held by IPOPIF. A schedule of investment expenses is included in IPOPIF`s annual report. For additional information on IPOPIF's investments, please refer to their annual report, which can be obtained from IPOPIF at 456 Fulton Street, Suite 402 Peoria, Illinois 61602 or at www.ibopi£org. The Fund transferred all eligible assets to the Investment Fund on August 1, 2022. Deposits. The Fund retains all its available cash with one financial institution. Available cash is determined to be that amount which is required for the current expenditures of the Fund. The excess of available cash is required to be transferred to IPOPIF for purposes of the long-term investment for the Fund. At year-end, the carrying amount of the Fund's cash on hand totaled $2,087,298 and the bank balances totaled $2,087,298. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a 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 year-end, the entire carrying amount of the bank balance of deposits is 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 evidences by safekeeping receipts. Investments. At year-end the Fund has $77,792,601 invested in IPOPIF, which is measured at the Net Asset Value (NAV) per share as determined by the pool. The pooled investments consist of the investments as noted in the target allocation table available at www.il2ol2if.org. Investment Policy. IPOPIF's current investment policy was adopted by the Board of Trustees on December 17, 2021. IPOPIF is authorized to invest in all investments allowed by Illinois Compiled Statutes (ILCS). The IPOPIF shall not be subject to any of the limitations applicable to investments of pension fund assets currently held by the transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 3 of the Illinois Pension Code. Rate of Return For the year ended December 31, 2022, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was (14.40%). The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 60 73 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Firefighters' Pension Fund The Illinois Firefighters' Pension Investment Fund (IFPIF) is an investment trust fund responsible for the consolidation and fiduciary management of the pension assets of Illinois suburban and downstate firefighter pension funds. IFPIF was created by Public Act 101-0610, and codified within the Illinois Pension Code, becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the participating pension funds. Participation in IFPIF by Illinois suburban and downstate firefighter pension funds is mandatory. Investments of the Fund are combined in a commingled external investment pool and held by IFPIF. A schedule of investment expenses is included in IFPIF's annual report. For additional information on IFPIF's investments, please refer to their annual report, which can be obtained from IFPIF at 1919 South Highland Avenue, Building A, Suite 237, Lombard, IL 60148 or at www.ifpif.org. The Fund transferred all eligible assets to the IFPIF on January 4, 2022. Deposits. The Fund retains all its available cash with two financial institutions. Available cash is determined to be that amount which is required for the current expenditures of the Fund. The excess of available cash is required to be transferred to IFPIF for purposes of the long-term investment for the Fund. At year-end, the carrying amount of the Fund's cash on hand totaled $1,664,404 and the bank balances totaled $1,664,404. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Fund's deposits may not be returned to it. The Fund's investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral held by an independent third party or the Federal Reserve Bank, and evidenced by safekeeping receipts. At year-end, the entire carrying amount of the bank balance of deposits is 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. Investments. At year-end the Fund has $67,998,655 invested in IFPIF, which is measured at the Net Asset Value (NAV) per share as determined by the pool. The pooled investments consist of the investments as noted in the target allocation table available at www.ifl2if.org. Investment Policy. IFPIF's current investment policy was adopted by the Board of Trustees on June 17, 2022. IFPIF is authorized to invest in all investments allowed by Illinois Compiled Statutes (ILLS). The IFPIF shall not be subject to any of the limitations applicable to investments of pension fund assets currently held by the transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 4 of the Illinois Pension Code. Rate of Return For the year ended December 31, 2022, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was (14.43%). The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 61 74 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued PROPERTY TAXES Property taxes for 2021 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 1 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. 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 Total Net Depreciable Capital Assets Total Net Capital Assets Beginning Ending Balances Increases Decreases Balances $ 15,612,320 — 284,544 15,327,776 9,632,988 641,506 7,768,529 2,505,965 25,245,308 641,506 8,053,073 17,833,741 79,648,759 — 6,141,326 73,507,433 1,516,920 42,996 — 1,516,920 12,521,523 638,752 214,495 12,945,780 6,035,415 1,084,286 341,101 6,778,600 98,232,934 12,835,092 3,032 111,064,994 197,955,551 14,558,130 6,699,954 205,813,727 14,899,512 1,524,450 3,511,092 12,912,870 470,664 42,996 — 513,660 7,936,180 981,800 202,196 8,715,784 2,573,657 451,944 331,774 2,693,827 77,978,825 2,085,743 3,032 80,061,536 103,858,838 5,086,933 4,048,094 104,897,677 94,096,713 9,471,197 2,651,860 100,916,050 119,342,021 10,112,703 10,704,933 118,749,791 62 75 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS - Continued Governmental Activities - Continued Depreciation expense was charged to governmental activities as follows: General Government S 538,669 Public Safety 1,097,051 Highways and Streets 2,211,386 Health 2,349 Welfare 3,752 Culture and Recreation 7,240 Internal Service 1,226,486 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 5,086,933 Beginning Ending Balances Increases Decreases Balances $ 17,318,818 17,318,818 2,025,897 3,537,692 1,954,876 3,608,713 19,344,715 3,537,692 1,954,876 20,927,531 4,499,808 4,499,808 5,017,968 — 157,000 4,860,968 42,662,321 2,815,579 — 45,477,900 52,180,097 2,815,579 157,000 54,838,676 3,194,029 64,922 — 3,258,951 3,843,592 109,914 148,067 3,805,439 16,165,282 755,872 — 16,921,154 23,202,903 930,708 148,067 23,985,544 28,977,194 1,884,871 8,933 30,853,132 48,321,909 5,422,563 1,963,809 51,780,663 63 76 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS - Continued Business -Type Activities - Continued Depreciation expense was charged to business -type activities as follows: Water and Sewer INTERFUND TRANSFERS Interfund transfers for the year consisted of the following: $ 930,708 Transfer In Transfer Out Amount Debt Service General $ 163,401 Nonmajor Governmental General 4,450,000 Nonmajor Business -Type General 75,000 4,688,401 The purpose of significant transfers from/to between funds are as follows: $163,401 transferred from the General Fund to the Debt Service Fund to bring the fund balance to a level that is in compliance with the Village's fund balance policy. $4,450,000 transferred from the General Fund to the Pension Stabilization Fund ($750,000) to provide an alternative revenue source supporting the annual pension costs generally funded from the annual property tax levy, to the Capital Improvement Fund ($2,700,000) to support small to midsize capital projects for the Village, and to the Flood Control Fund ($1,000,000) to support various flood control capital and maintenance projects for the year. $75,000 transferred to the Parking System Revenue Fund, a nonmajor business -type fund, from the General Fund to cover the operating expenditure deficit. 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 $ 10,000 Police Pension General 785,623 Fire Pension General 757,484 1,553,107 64 77 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 Business -Type Activities Activities Totals Grants $ 1,416,153 — 1,416,153 Miscellaneous 319,100 397 319,497 1,735,253 397 1,735,650 LONG-TERM DEBT 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 Issue Retired by Balances Issuances Retirements Balances $2,975,000 General Obligation Bonds of 2012, due in annual installments of $610,000 to $885,000 plus interest at Debt 3.10% through December 1, 2022. Service $ 885,000 — 885,000 $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 Debt 8,090,000 1, 2033. Service 8,675,000 — 585,000 $6,290,000 General Obligation Bonds of 2014, due in annual installments of $290,000 to $1,265,000 plus interest Debt at 3.00% through December 1, 2023. Service 2,390,000 — 1,125,000 1,265,000 *Refunded 65 78 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued General Obligation Bonds - Continued Fund Debt Beginning Ending Issue 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 Debt 3.00% through December 1, 2022. Service $ 1,550,000 $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% Debt through December 1, 2028. Service 8,860,000 1,550,000 8,860,000 $9,740,000 General Obligation Bonds of 2017, due in annual installments of prospect and $125,000 to $460,000 plus interest at Main TIF 4,675,000 — 155,000 4,520,000 2.50% to 4.00% through December 1, Water and 2037. Sewer 4,385,000 — 160,000 4,225,000 $11,950,000 General Obligation prospect and Bonds of 2018A, due in annual Main TIF 6,880,000 — 205,000 6,675,000 installments of $115,000 to $700,000 plus interest at 3.25% to 5.00% Water and through December 1, 2037. Sewer 4,335,000 — 150,000 4,185,000 $38,440,000 General Obligation Bonds of 201813, due in annual installments of $155,000 to $3,110,000 plus interest at 3.625% to Debt 5.000% through December 1, 2043. Service 37,225,000 $9,600,000 General Obligation Bonds of 2019A, due in annual installments of $60,000 to $800,000 plus interest at 2.00% to 5.00% through December 1, Water and 2039. Sewer 9,300,000 37,225,000 265,000 9,035,000 66 79 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued General Obligation Bonds - Continued Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances $7,725,000 General Obligation Bonds of 2019B, due in annual installments of $210,000 to $740,000 plus interest at 3.00% to 5.00% through December Prospect and 1, 2039. Main TIF $ 7,725,000 7,725,000 $8,935,000 General Obligation Bonds of 2022A, due in annual installments of $215,000 to $735,000 plus interest at 3.00% to 5.00% through December Water and 1, 2041. Sewer — 8,935,000 250,000 8,685,000 $8,230,000 General Obligation Refunding Bonds of 2022B, due in annual installments of $650,000 to $855,000 plus interest at 2.80% Debt through December 1, 2033. Service — 8,230,000 8,230,000 96,885,000 17,165,00 13,420,000 100,630,000 Limited Tax Note Payable 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 terin 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 Issuances/ Ending Issue Retired by Balances Accretion 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 $ 36,730,522 2,419,587 1,549,521 37,600,588 67 80 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued 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 99 years. Long -Term Liabilities Activity Changes in long-term liabilities during the fiscal year were as follows: Amounts Beginning Additions/ Ending within Type of Debt Balances Accretion Deductions Balances One Year Governmental Activities Compensated Absences General Internal Services Claims Payable Net Pension Liability Police Pension Firefighters' Pension Total OPEB Liability - RBP General Internal Services General Obligation Bonds Unamortized Premium Business District Limited Tax Note Payable Business -Type Activities Compensated Absences Total OPEB Liability - RBP Asset Retirement Obligation General Obligation Bonds Unamortized Premium $ 4,058,398 121,816 60,908 4,119,306 969,052 69,288 17,401 34,802 51,887 10,377 549,509 327,112 334,913 541,708 176,253 45,236,365 22,804,494 - 68,040,859 - 40,010,412 18,489,561 - 58,499,973 - 12,728,176 - 3,681,919 9,046,257 - 474,267 - 100,408 373,859 - 78,865,000 8,230,000 12,595,000 74,500,000 3,035,000 2,418,168 - 273,802 2,144,366 206,335 36,730,522 2,419,587 1,549,521 37,600,588 1,126,604 221,140,105 52,409,971 18,631,273 254,918,803 5,523,621 291,355 13,542 6,771 298,126 59,625 1,212,224 - 320,807 891,417 - 750,000 - - 750,000 - 18,020,000 8,935,000 825,000 26,130,000 840,000 624,921 1,224,542 97,804 1,751,659 - 20,898,500 10,173,084 1,250,382 29,821,202 899,625 68 81 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued Long -Term Liabilities Activity - Continued 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 Fund, and the Business District Limited Tax Note Payable is being liquidated by the Business District Fund. Claims payable are being liquidated by the Risk Management 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. Additionally, for business -type activities, compensated absences are liquidated by the Water and Sewer Fund. The net pension liability, the total OPEB liability, the asset retirement obligation, 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 General Obligation Fiscal Bonds Business -Type Activities General Obligation Bonds Year Principal Interest Principal Interest 2023 $ 3,035,000 2,769,976 840,000 927,732 2024 3,170,000 2,669,826 915,000 887,482 2025 3,320,000 2,549,116 995,000 843,632 2026 3,480,000 2,434,986 1,085,000 795,932 2027 3,630,000 2,316,796 1,165,000 746,082 2028 3,800,000 2,197,422 1,255,000 699,882 2029 3,460,000 2,075,168 1,340,000 649,700 2030 3,750,000 1,932,872 1,435,000 595,750 2031 3,945,000 1,781,566 1,535,000 542,494 2032 4,150,000 1,622,362 1,625,000 484,306 2033 4,370,000 1,454,808 1,725,000 431,732 2034 3,715,000 1,280,170 1,825,000 377,920 2035 3,900,000 1,151,550 1,930,000 320,988 2036 4,090,000 1,014,519 2,030,000 261,244 2037 4,285,000 870,125 2,140,000 197,912 2038 3,260,000 718,400 1,390,000 130,650 2039 3,400,000 598,200 1,465,000 88,000 2040 2,765,000 469,600 700,000 43,050 2041 2,875,000 359,000 735,000 22,050 2042 2,990,000 244,000 - 2043 3,110,000 124,400 - Totals 74,500,000 30,634,862 26,130,000 9,046,538 69 82 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued Defeased Debt On May 10, 2005, the Village issued $8,230,000 par value General Obligation Refunding Bond, Series of 2022B to refund $8,090,000 of the General Obligation Bonds, Series of 2013. The Village defeased bonds by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payment of the old bonds. Since the requirements that normally satisfy defeasance have been met, the financial statements reflect satisfaction of the original liability through the irrevocable transfer to an escrow agent of an amount computed to be adequate to meet the future debt service requirements of the issue. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the government's basic financial statements. Through this refunding, the Village reduced its total debt service by $486,079 and obtained an economic gain of $412,109. 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, 197 1) 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, 2022: Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 118,749,791 Plus: Unamortized Refunding Loss 312,096 Less Capital Related Debt: General Obligation Bonds of 2014 (1,265,000) General Obligation Refunding Bonds of 2016A (8,860,000) General Obligation Bonds of 2017 (4,520,000) General Obligation Bonds of 2018A (6,675,000) General Obligation Bonds of 2018B (37,225,000) General Obligation Bonds of 2019B (7,725,000) General Obligation Refunding Bonds of 2022B (8,230,000) Premium on Debt Issuance (2,144,366) Net Investment in Capital Assets 42,417,521 70 83 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued NET POSITION CLASSIFICATIONS - Continued Business -Type Activities Capital Assets - Net of Accumulated Depreciation $ Plus: Unspent Bond Proceeds Less Capital Related Debt: 51,780,663 5,060,967 General Obligation Bonds of 2017 (4,225,000) General Obligation Bonds of 2018A (4,185,000) General Obligation Bonds of 2019A (9,035,000) General Obligation Bonds of 2022A (8,685,000) Premium on Debt Issuance (1,751,659) Net Investment in Capital Assets 28,959,971 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. 71 84 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 Prospect/ Main Debt General TIF Service Nonmajor Totals Fund Balances Nonspendable Inventories $ 1,137 1,137 Prepaids 406,518 100,675 507,193 407,655 100,675 508,330 Restricted 1,400,000 1,400,000 Public Safety 3,700,000 3,700,000 Police 701,853 701,853 Fire 543,266 543,266 Highways and Streets — 2,177,557 — 3,805,306 5,982,863 Pension Stabilization 750,000 750,000 Debt Service — — 1,095,578 1,095,578 — 2,177,557 1,095,578 5,800,425 9,073,560 Committed Refuse Disposal 1,289,792 1,289,792 Assigned Debt Service 1,400,000 1,400,000 TIF Redevelopment 3,700,000 3,700,000 Pension Stabilization 750,000 750,000 Capital Projects 1,400,000 14,469,146 15,869,146 7,250,000 14,469,146 21,719,146 Unassigned 40,587,665 40,587,665 Total Fund Balances 48,245,320 2,177,557 1,095,578 21,660,038 73,178,493 72 85 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued NET POSITION/FUND BALANCE RESTATEMENT Beginning net position/fund balance was restated due to the implementation of GASB No. 87. The following is a summary of the net position/fund balance as originally reported and as restated: Net Position/Fund Balance As Reported As Restated Increase Governmental Activities General Fund LEASES RECEIVABLE $ (29,820,173) (29,780,696) 39,477 34,795,312 34,834,789 39,477 The Village is a lessor on the following leases at year end: Term Start Interest Lease Length Date Payments Rate Sprint Cell Tower 307 Months May 19, 1998 $2,000 per month 3.35% T -Mobile Cell Tower 30 Years October 16, 2000 $25,200 per year 3.35% During the fiscal year, the Village has recognized $42,218 of lease revenue. The future minimum lease assets and the net present value of these minimum lease receipts as of year-end, are as follows: Fiscal Year Principal Interest 2023 $ 41,646 5,556 2024 20,679 4,521 2025 21,372 3,828 2026 22,088 3,112 2027 22,828 2,372 2028 23,593 1,607 2029 24,385 817 176,591 21,813 73 86 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 (IPBC). 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 arc 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. 74 87 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 4 - OTHER INFORMATION - Continued RISK MANAGEMENT - Continued Intergovernmental Risk Management Agency (IRMA) - Continued The Village has chosen an optional higher deductible of $50,000. A related reserve deposit of $1,419,870 is being held at IRMA at December 31, 2022. 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, 2022 was $541,708. Changes in the balances of claims liabilities during the fiscal year are as follows: Workers' General Auto Compensation Liability Totals Claims Payable - December 31, 2020 $ 394 580,367 118,437 699,198 Incurred Claims 17,718 84,884 105,940 208,542 Claims Paid (18,112) (221,387) (118,732) (358,231) Claims Payable - December 31, 2021 443,864 105,645 549,509 Incurred Claims 18,112 174,708 134,292 327,112 Claims Paid (18,112) (220,953) (95,848) (334,913) Claims Payable - December 31, 2022 397,619 144,089 541,708 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. There were no significant changes in insurance coverages from the prior year and settlements did not exceed insurance coverage in any of the past three fiscal years. A reserve deposit of $3,281,866 is being held at IPBC at December 31, 2022. 75 88 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 deterinined at this time although the Village expects such amounts, if any, to be immaterial. 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 2023, the Village estimates it will pay SWANCC $1,086,398, with annual increases ranging from 0% to 3% through 2023. 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. 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 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. 76 89 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 4 - OTHER INFORMATION - Continued JOINT VENTURES - Continued Northwest Suburban Municipal Joint Action Water Agency (JAWA) - Continued 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. 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, 2032. The Agreements are irrevocable and may not be terminated or amended except as provided in the General Resolution. 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 $7,406,664 to JAWA for the year ended December 31, 2022. All payments were paid from the Water and Sewer Fund. Deposits with JAWA in the amount of $464,034 represent amounts held for security of debt service. 77 90 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 $1,016,028 to SWANCC for the year ended December 31, 2022, 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 online at www.imrforg. The Police and Firefighters' Pension Plans also issue separate reports that may be obtained by writing the Village at 50 South Emerson, Mount Prospect, Illinois 60056. 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. 78 91 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued The aggregate amounts recognized for the pension plans are: Net Pension Expenses/ Liabilities/ Deferred Deferred (Revenues) (Assets) Outflows Inflows Village $ (2,549,553) (11,591,989) 2,469,939 12,656,521 Library (915,920) (3,960,545) 843,885 4,324,255 Police Pension 8,108,324 68,040,859 20,669,846 1,805,447 Firefighters' Pension 7,271,512 58,499,973 17,055,417 1,101,137 11,914,363 110,988,298 41,039,087 19,887,360 Illinois Municipal Retirement Fund (IMRF) Plan Descriptions Plan Adininistration. 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 I 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. 79 92 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2021, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 283 Inactive Plan Members Entitled to but not yet Receiving Benefits 185 Active Plan Members 254 Total 722 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, 2022, the Village's and the Library's contribution was 8.44% of covered payroll. Net Pension (Asset). The Village's net pension (asset) was measured as of December 31, 2021. The total pension liability used to calculate the net pension (asset) was determined by an actuarial valuation as of that date. 80 93 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2021, 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 2.85% to 13.75% Cost of Living Adjustments 3.25% Inflation 2.25% For nondisabled retirees, the Pub -2010, Amount -Weighted, below -median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP -2020. For disabled retirees, the Pub -2010, Amount -Weighted, below -median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP -2020. For active members, the Pub -2010, Amount -Weighted, below -median income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP -2020. 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: 81 94 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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. Long -Term Expected Real Asset Class Target Rate of Return Fixed Income 25.00% (0.60%) Domestic Equities 39.00% 1.90% International Equities 15.00% 3.15% Real Estate 10.00% 3.30% Blended 10.00% 1.70% - 5.50% Cash and Cash Equivalents 1.00% (0.90%) 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 detennine the total pension liability. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension (asset) to changes in the discount rate. The table below presents the net pension (asset) of the Village and the Library calculated using the discount rate as well as what the Village's and Library's net pension (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: Current 1% Decrease Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Village $ (1,278,525) (11,591,989) (19,734,894) Library (436,824) (3,960,545) (6,742,668) Net Pension (Asset) (1,715,349) (15,552,534) (26,477,562) 82 95 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN - Continued Illinois Municipal Retirement Fund (IMRF) - Continued Changes in the Net Pension (Asset) 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 $ 1,289,125 6,044,697 1,500,097 440,445 2,127,066 512,526 1,729,570 8,171,763 2,012,623 (4,434,809) (1,515,206) (5,950,015) 4,399,110 1,564,831 5,963,941 84,191,342 30,632,857 114,824,199 88,590,452 32,197,688 120,788,140 1,550,977 529,910 2,080,887 686,233 234,460 920,693 14,923,769 5,098,888 20,022,657 (4,434,809) (1,515,206) (5,950,015) 58,977 20,150 79,127 12,785,147 4,368,202 17,153,349 87,397,294 31,790,031 119,187,325 100,182,441 36,158,233 136,340,674 Employer's Net Pension (Asset) (11,591,989) (3,960,545) (15,552,534) 83 96 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, the Village recognized pension revenue of $2,549,553 and the Library recognized pension revenue of $915,920. At December 31, 2022, the Village and the Library 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 $ 1,284,785 (752,600) 438,963 (257,135) 714,013 — (265,154) — (90,593) (355,747) — (11,638,767) — (3,976,527) (15,615,294) 1,284,785 (12,656,521) 438,963 (4,324,255) (15,257,028) 1,185,154 — 404,922 — 1,590,076 2,469,939 (12,656,521) 843,885 (4,324,255) (13,666,952) $1,185,154 for the Village and $404,922 for the Library reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the reporting year ended December 31, 2023. 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 Deferred (inflows) of Resources Year Village Library Totals 2023 $ (2,595,373) 2024 (4,422,279) 2025 (2,641,942) 2026 (1,712,142) 2027 Thereafter — (886,741) (3,482,114) (1,510,925) (5,933,204) (902,652) (3,544,594) (584,974) (2,297,116) Totals (11,371,736) (3,885,292) (15,257,028) 84 97 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits 83 Inactive Plan Members Entitled to but not yet Receiving Benefits 10 Active Plan Members 85 Total 178 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. 85 98 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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/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., '/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 Is' 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, 2022, the Village's contribution was 39.38% 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). 86 99 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 6.80% 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 Pub -2010 Public Safety Mortality Table with with generational improvement scale MP -2021 applied from 2010. Mortality rates for disabled individuals were based the Pub -2010 Disabled Retiree Mortality Table with generational improvement scale MP -2021 applied from 2010. Discount Rate The discount rate used to measure the total pension liability was 6.80%, while the prior valuation was 7.00%. 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 projected 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. 87 100 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 net 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, 2021 Changes for the Year: Current 1% Decrease Discount Rate 1% Increase (5.80%) (6.80%) (7.80%) $ 89,458,689 68,040,859 50,621,974 Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Experience of the Total Pension 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) $ 141,710,697 96,474,332 45,236,365 1,825,295 — 1,825,295 9,808,132 — 9,808,132 1,372,725 — 1,372,725 834,969 — 834,969 — 3,821,104 (3,821,104) 1,020,818 (1,020,818) (13,736,952) 13,736,952 (6,839,629) (6,839,629) — (68,343) 68,343 7,001,492 (15,803,002) 22,804,494 Balances at December 31, 2022 148,712,189 80,671,330 68,040,859 101 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, the Village recognized pension expense of $8,108,324. At December 31, 2022, 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 Deferred Deferred Outflows of Inflows of Resources Resources Totals 2,012,805 (1,448,047) 564,758 8,927,624 (357,400) 8,570,224 9,729,417 — 9,729,417 Total Deferred Amounts Related to Police Pension 20,669,846 (1,805,447) 18,864,399 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 Outflows Year of Resources 2023 $ 2,556,300 2024 4,108,445 2025 5,160,051 2026 6,671,659 2027 367,944 Thereafter — Total 18,864,399 89 102 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, 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 3 Active Plan Members 72 Total 165 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 1/2 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 3 percent compounded annually thereafter. 90 103 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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., '/z percent for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1St after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 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, 2022, the Village's contribution was 42.94% of covered payroll. Concentrations. At year end, the Fund 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). 91 104 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.13% Salary Increases 4.00% Cost of Living Adjustments Tier 1: 3.00%, Tier 2: 1.25% Inflation 2.25% Mortality rates for healthy individuals were based on the Pub -2010 Public Safety Mortality Table with with generational improvement scale MP -2021 applied from 2010. Mortality rates for disabled individuals were based the Pub -2010 Disabled Retiree Mortality Table with generational improvement scale MP -2021 applied from 2010. Discount Rate The discount rate used to measure the total pension liability was 7.125%, while the prior valuation was 7.125%. 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 projected 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. 92 105 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 net 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, 2021 Current 1% Decrease Discount Rate 1% Increase (6.125%) (7.125%) (8.125%) $ 75,633,505 58,499,973 44,452,265 Changes for the Year: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Difference Between Expected and Actual Experience of the Total Pension 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) $ 125,027,640 85,017,228 40,010,412 1,746,912 — 1,746,912 8,784,556 — 8,784,556 80,779 — 80,779 227,213 — 227,213 — 3,678,359 (3,678,359) 811,804 (811,804) (12,071,065) 12,071,065 (6,965,087) (6,965,087) — (69,199) 69,199 3,874,373 (14,615,188) 18,489,561 Balances at December 31, 2022 128,902,013 70,402,040 58,499,973 93 106 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, the Village recognized pension expense of $7,271,512. At December 31, 2022, 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 $ 1,669,587 (644,568) 1,025,019 5,614,378 (456,569) 5,157,809 9,771,452 — 9,771,452 17,055,417 (1,101,137) 15,954,280 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 Outflows Year of Resources 2023 $ 2,276,310 2024 3,449,495 2025 4,998,443 2026 5,178,700 2027 51,332 Thereafter — Total 15,954,280 94 107 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 74 Inactive Plan Members Entitled to but not yet Receiving Benefits — Active Plan Members 300 Total The plan membership as noted above includes both the Village and the Library members. Total OPEB Liability 374 The Village's total OPEB liability was measured as of December 31, 2022, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Other Inputs. The total OPEB liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: 95 108 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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 3.25% Discount Rate 4.31% Healthcare Cost Trend Rates 7.50% 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, 2022. Mortality rates were based on the SOA Pub -2010 General Headcount Weighted Mortality Table fully generational using Scale MP -2021. Change in the Total OPEB Liability Balance at December 31, 2021 Changes for the Year: Service Cost Interest on the Total OPEB Liability Changes of Benefit Terms Difference Between Expected and Actual Experience Changes of Assumptions or Other Inputs Benefit Payments Net Changes Balance at December 31, 2022 Total OPEB Liability S 14,414,667 836,978 338,311 (1,745,478) (3,099,372) (433,573) (4,103,134) 10,311,533 96 109 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 NOTE 4 - OTHER INFORMATION - Continued OTHER POST -EMPLOYMENT BENEFITS - Continued Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The discount rate used to measure the total pension liability was 4.31%, while the prior valuation used 2.25%. The following presents the total OPEB liability, calculated using the discount rate, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher: Current 1% Decrease Discount Rate 1% Increase (3.31%) (4.31%) (5.31%) Total OPEB Liability $ 11,756,375 10,311,533 9,123,079 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 $ 8,872,977 10,311,533 12,143,606 97 110 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2022 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, 2022, the Village recognized OPEB expense of $577,017. At December 31, 2022, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Difference Between Expected and Actual Experience $ — Change in Assumptions 2,881,756 Net Difference Between Projected and Actual Earnings — Total Deferred Amounts Related to OPEB Deferred Inflows of Resources Totals (3,854,036) (3,774,375) (3,854,036) (892,619) 2,881,756 (7,628,411) (4,746,655) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Net Deferred Fiscal (Inflows) Year of Resources 2023 $ (598,272) 2024 (598,272) 2025 (598,272) 2026 (598,275) 2027 (280,748) Thereafter (2,072,816) Totals (4,746,655) 98 111 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/(Asset) 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. 99 112 VILLAGE OF MOUNT PROSPECT, ILLINOIS Illinois Municipal Retirement Fund Schedule of Employer Contributions December 31, 2022 2022 Village 1,180,871 1,180,871 — 13,992,127 8.44% Library 403,459 403,459 — 4,780,581 8.44% Totals 1,584,330 1,584,330 — 18,772,708 8.44% 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) 22 Years 5 -Year Smoothed Fair Value 2.50% 3.35% - 14.25% 7.25% 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. 100 113 Contributions in Relation to 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 Totals 2,006,703 2,006,703 — 17,965,116 11.17% 2021 Totals 2,064,998 2,080,887 15,889 18,910,982 11.00% 2022 Village 1,180,871 1,180,871 — 13,992,127 8.44% Library 403,459 403,459 — 4,780,581 8.44% Totals 1,584,330 1,584,330 — 18,772,708 8.44% 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) 22 Years 5 -Year Smoothed Fair Value 2.50% 3.35% - 14.25% 7.25% 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. 100 113 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Employer Contributions December 31, 2022 Fiscal Year Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Excess/ (Deficiency) Covered Payroll Contributions as a Percentage of Covered Payroll 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% 2021 3,985,302 3,977,102 (8,200) 9,034,880 44.02% 2022 3,820,016 3,821,104 1,088 9,702,264 39.38% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 19 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 -2020 applied generationally from 2013. 101 114 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Employer Contributions December 31, 2022 Fiscal Year Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Excess/ (Deficiency) Covered Payroll Contributions as a Percentage of Covered Payroll 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% 2021 3,649,130 3,651,864 2,734 8,353,578 43.72% 2022 3,667,817 3,678,359 10,542 8,566,519 42.94% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 19 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 -2020 applied generationally from 2013. 102 115 VILLAGE OF MOUNT PROSPECT, ILLINOIS Illinois Municipal Retirement Fund Schedule of Changes in the Employer's Net Pension Liability/(Asset) December 31, 2022 Total Pension Liability Service Cost Interest Changes in Benefit Terms 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) Net Change in Plan Fiduciary Net Position Plan Net Position - Beginning Plan Net Position - Ending Employer's Net Pension Liability/(Asset) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll Employer's Net Pension Liability/(Asset) as a Percentage of Covered Payroll 12/31/2014 Total 12/31/2015 Total 12/31/2016 Total $ 1,830,586 1,810,785 1,768,746 5,880,604 6,548,331 6,803,558 1,583,453 (1,203,005) (756,505) 3,126,293 113,021 (232,520) (3,179,063) (3,603,793) (3,834,437) 9,241,873 79,082,287 3,665,339 88,324,160 3,748,842 91,989,499 88,324,160 91,989,499 95,738,341 $ 1,908,296 1,863,011 2,031,571 757,565 731,552 745,535 4,666,652 403,461 5,536,369 (3,179,063) (3,603,793) (3,834,437) 284,199 (348,936) 403,724 4,437,649 (954,705) 4,882,762 76,759,094 81,196,743 80,242,038 81,196,743 80,242,038 85,124,800 $ 7,127,417 11,747,461 10,613,541 91.93% 87.23% 88.91% $ 16,258,793 16,256,645 16,567,389 43.84% 72.26% 64.06% Note: 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 2014 through 2020. Changes in assumptions related to the demographics were made in 2014 and 2017. 103 116 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 Total Total Total Total Village Library Totals 1,811,298 1,690,492 1,858,283 1,889,347 1,289,125 440,445 1,729,570 7,087,425 7,223,810 7,700,258 8,093,842 6,044,697 2,127,066 8,171,763 570,864 3,043,104 1,402,150 (2,265,155) 1,500,097 512,526 2,012,623 (3,034,659) 3,019,891 — (798,053) — (4,289,989) (4,822,107) (5,514,317) (5,580,626) (4,434,809) (1,515,206) (5,950,015) 2,144,939 95,738,341 10,155,190 97,883,280 5,446,374 108,038,470 1,339,355 113,484,844 4,399,110 84,191,342 1,564,831 30,632,857 5,963,941 114,824,199 97,883,280 108,038,470 113,484,844 114,824,199 88,590,452 32,197,688 120,788,140 1,941,668 2,032,727 1,677,888 2,006,704 1,550,977 529,910 2,080,887 766,547 1,104,133 879,607 828,036 686,233 234,460 920,693 14,755,335 (5,230,039) 17,276,295 15,388,334 14,923,769 5,098,888 20,022,657 (4,289,989) (4,822,107) (5,514,317) (5,580,626) (4,434,809) (1,515,206) (5,950,015) (1,351,715) 1,969,030 527,892 (302,878) 58,977 20,150 79,127 11,821,846 (4,946,256) 14,847,365 12,339,570 12,785,147 4,368,202 17,153,349 85,124,800 96,946,646 92,000,390 106,847,755 87,397,294 31,790,031 119,187,325 96,946,646 92,000,390 106,847,755 119,187,325 100,182,441 36,158,233 136,340,674 936,634 16,038,080 6,637,089 (4,363,126) (11,591,989) (3,960,545) (15,552,534) 99.04% 85.16% 94.15% 103.80% 16,965,974 17,940,334 18,248,083 17,965,116 5.52% 89.40% 36.37% (24.29%) 113.08% 112.30% 112.88% 13,992,127 4,780,581 18,772,708 (82.85%) (82.85%) (82.85%) 104 117 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Changes in the Employer's Net Pension Liability December 31, 2022 Total Pension Liability Service Cost Interest Changes in Benefit Terms 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 Administrative Expenses Net Change in Plan Fiduciary Net Position Plan Net Position - Beginning Plan Net Position - Ending Employer's Net Pension Liability Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll 12/31/2014 12/31/2015 12/31/2016 $ 1,890,407 1,777,310 1,732,924 6,479,504 7,210,826 8,221,483 860,183 95,650 (5,201,074) 4,844,398 7,268,193 29,971 (4,117,120) (4,529,962) (4,688,978) 9,957,372 11,822,017 94,326 88,451,950 98,409,322 110,231,339 98,409,322 110,231,339 110,325,665 $ 2,924,226 2,918,395 3,232,887 851,363 795,827 815,684 3,845,862 545,802 4,161,658 (4,117,120) (4,529,962) (4,688,978) (60,382) (49,947) (44,605) 3,443,949 (319,885) 3,476,646 55,375,976 58,819,925 58,500,040 58,819,925 58,500,040 61,976,686 $ 39,589,397 51,731,299 48,348,979 59.77% 53.07% 56.18% $ 7,848,795 8,049,995 8,276,985 Employer's Net Pension Liability as a Percentage of Covered Payroll 504.40% 642.63% 584.14% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 105 118 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 1,557,284 1,575,461 1,576,407 1,571,647 1,613,165 1,825,295 7,951,856 8,195,228 8,574,834 8,826,306 8,899,357 9,808,132 - - 202,152 - - - (1,650,048) (208,550) (439,430) (2,533,619) 1,303,302 1,372,725 385,618 1,320,658 (343,513) (485,790) 12,017,565 834,969 (4,404,364) (5,407,697) (5,887,879) (6,306,360) (6,518,558) (6,839,629) 3,840,346 5,475,100 3,682,571 1,072,184 17,314,831 7,001,492 110,325,665 114,166,011 119,641,111 123,323,682 124,395,866 141,710,697 114,166,011 119,641,111 123,323,682 124,395,866 141,710,697 148,712,189 3,747,825 3,608,602 3,582,499 3,855,754 3,977,102 3,821,104 830,240 838,893 860,265 860,062 887,126 1,020,818 8,967,014 (3,697,156) 13,440,246 10,224,907 11,280,599 (13,736,952) (4,404,364) (5,407,697) (5,887,879) (6,306,360) (6,518,558) (6,839,629) (48,339) (37,596) (35,695) (59,676) (60,168) (68,343) 9,092,376 (4,694,954) 11,959,436 8,574,687 9,566,101 (15,803,002) 61,976,686 71,069,062 66,374,108 78,333,544 86,908,231 96,474,332 71,069,062 66,374,108 78,333,544 86,908,231 96,474,332 80,671,330 43,096,949 53,267,003 44,990,138 37,487,635 45,236,365 68,040,859 62.25% 55.48% 63.52% 69.86% 68.08% 54.25% 8,354,290 8,526,976 8,505,172 8,791,984 9,034,880 9,702,264 515.87% 624.69% 528.97% 426.38% 500.69% 701.29% 106 119 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Changes in the Employer's Net Pension Liability December 31, 2022 Total Pension Liability Service Cost Interest Changes in Benefit Terms 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 Administrative Expenses Net Change in Plan Fiduciary Net Position Plan Net Position - Beginning Plan Net Position - Ending Employer's Net Pension Liability Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll 12/31/2014 12/31/2015 12/31/2016 $ 1,673,836 1,515,101 1,429,810 5,780,241 6,270,507 7,296,444 225,575 1,603,162 (1,491,027) 3,234,155 7,648,623 396,832 (4,158,988) (4,594,876) (4,981,207) 6,754,819 12,442,517 2,650,852 79,149,378 85,904,197 98,346,714 85,904,197 98,346,714 100,997,566 2,466,165 644,384 3,963,252 2,532,317 606,932 1,806,126 2,806,983 668,070 3,049,538 (4,158,988) (4,594,876) (4,981,207) (62,889) (62,136) (55,257) 2,851,924 288,363 1,488,127 53,716,415 56,568,339 56,856,702 56,568,339 56,856,702 58,344,829 $ 29,335,858 41,490,012 42,652,737 65.85% 57.81% $ 6,495,510 6,441,588 Employer's Net Pension Liability as a Percentage of Covered Payroll 451.63% 644.10% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 57.77% 6,981,704 610.92% 107 120 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 1,426,033 1,427,248 1,479,272 1,581,259 1,623,510 1,746,912 7,228,968 7,510,621 7,617,301 7,829,880 8,064,784 8,784,556 - - 403,544 - - - 1,470,077 (2,255,993) 64,710 970,396 1,328,239 80,779 (572,774) 809,820 (346,430) (518,533) 7,790,489 227,213 (5,427,385) (5,909,909) (6,234,640) (6,541,877) (6,788,536) (6,965,087) 4,124,919 1,581,787 2,983,757 3,321,125 12,018,486 3,874,373 100,997,566 105,122,485 106,704,272 109,688,029 113,009,154 125,027,640 105,122,485 106,704,272 109,688,029 113,009,154 125,027,640 128,902,013 3,396,834 3,332,773 3,363,390 3,494,838 3,651,864 3,678,359 678,476 688,000 793,037 758,838 782,338 811,804 9,323,369 (1,914,014) 10,947,884 11,556,727 7,021,828 (12,071,065) (5,427,385) (5,909,909) (6,234,640) (6,541,877) (6,788,536) (6,965,087) (50,783) (63,660) (40,260) (36,998) (109,735) (69,199) 7,920,511 (3,866,810) 8,829,411 9,231,528 4,557,759 (14,615,188) 58,344,829 66,265,340 62,398,530 71,227,941 80,459,469 85,017,228 66,265,340 62,398,530 71,227,941 80,459,469 85,017,228 70,402,040 38,857,145 44,305,742 38,460,088 32,549,685 40,010,412 58,499,973 63.04% 58.48% 64.94% 71.20% 68.00% 54.62% 7,284,199 7,519,070 7,854,176 8,024,566 8,353,578 8,566,519 533.44% 589.24% 489.68% 405.63% 478.96% 682.89% 108 121 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Schedule of Investment Returns December 31, 2022 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% 2021 15.66% 2022 (14.40%) Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 109 122 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Schedule of Investment Returns December 31, 2022 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% 2021 8.87% 2022 (14.43%) Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 110 123 VILLAGE OF MOUNT PROSPECT, ILLINOIS Retiree Benefit Plan Schedule of Changes in the Employer's Total OPEB Liability December 31, 2022 Total OPEB Liability - Ending 10,889,132 Covered -Employee Payroll $ 26,110,072 Total OPEB Liability as a Percentage of Covered -Employee Payroll 41.70% Notes: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Changes ofAssumptions. Changes in assumptions related to the discount rate were made in 2018 through 2022. 111 124 12/31/2018 Total OPEB Liability Service Cost $ 523,084 Interest 463,660 Changes in Benefit Terms — Differences Between Expected and Actual Experience (1,152,702) Change of Assumptions or Other Inputs (1,704,999) Benefit Payments (387,384) Net Change in Total OPEB Liability (2,258,341) Total OPEB Liability - Beginning 13,147,473 Total OPEB Liability - Ending 10,889,132 Covered -Employee Payroll $ 26,110,072 Total OPEB Liability as a Percentage of Covered -Employee Payroll 41.70% Notes: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Changes ofAssumptions. Changes in assumptions related to the discount rate were made in 2018 through 2022. 111 124 12/31/2019 12/31/2020 12/31/2021 12/31/2022 457,933 457,768 560,011 407,957 882,943 329,431 836,978 338,311 (530,505) (1,053,887) (966,849) (1,745,478) 1,326,575 3,217,155 (283,951) (3,099,372) (422,580) (452,279) (404,187) (433,573) 1,289,191 2,678,957 (442,613) (4,103,134) 10,889,132 12,178,323 14,857,280 14,414,667 12,178,323 14,857,280 14,414,667 10,311,533 26,958,649 45.17% 27,836,531 28,741,218 29,641,953 53.37% 50.15% 34.79% 112 125 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, 2022 Budget Original Final Actual Revenues Taxes $ 23,250,073 23,250,073 24,280,375 Licenses and Permits 2,306,000 2,306,000 2,568,330 Intergovernmental 37,353,435 47,138,435 43,843,735 Charges for Services 2,257,000 3,372,000 3,938,175 Fines and Forfeitures 351,000 351,000 313,457 Interest 12,350 584,350 606,334 Miscellaneous 249,350 249,350 291,728 Total Revenues 65,779,208 77,251,208 75,842,134 Expenditures General Government 7,847,371 8,155,699 7,121,399 Public Safety 39,842,767 40,048,961 39,820,193 Highways and Streets 11,040,864 9,820,987 8,807,969 Health 170,437 170,437 128,135 Welfare 2,143,016 2,142,018 1,562,184 Culture and Recreation 392,384 392,384 303,830 Total Expenditures 61,436,839 60,730,486 57,743,710 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,342,369 16,520,722 18,098,424 Other Financing Sources (Uses) Disposal of Capital Assets 508 Transfers Out (7,775,000) (8,525,000) (4,688,401) (7,775,000) (8,525,000) (4,687,893) Net Change in Fund Balance (3,432,631) 7,995,722 13,410,531 Fund Balance - Beginning as Restated 34,834,789 Fund Balance - Ending 48,245,320 113 126 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, 2022 Revenues Taxes Property Taxes Interest Miscellaneous Total Revenues Expenditures General Government Other Employee Costs Contractual Services Commodities and Supplies Capital Outlay Other Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Disposal of Capital Assets Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 1,650,000 1,650,000 1,307,969 1,701 5,000 5,000 — 1,655,000 1,655,000 1,309,670 1,500 1,500 1,200 80,000 80,000 67,919 1,500 1,500 — 904,000 904,000 404,696 360,000 684,488 360,000 684,488 360,000 684,388 2,031,488 2,031,488 1,518,203 (376,488) (376,488) (208,533) 2,800,000 2,800,000 1,990,309 2,423,512 2,423,512 1,781,776 395,781 2,177,557 114 127 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 115 128 GOVERNMENTAL FUNDS 116 129 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. See the Schedule of Revenues, Expenditures and Changes in Fund Balance in the Required Supplementary Information section of this report. 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. 117 130 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2022 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 118 Budget Original Final Actual S 9,396,074 9,396,074 9,329,500 3,495,016 3,495,016 3,477,603 3,367,483 3,367,483 3,353,725 136,000 136,000 126,095 23,500 23,500 32,066 1,002,000 1,002,000 1,246,766 1,125,000 1,125,000 1,555,691 175,000 175,000 105,847 1,435,000 1,435,000 1,152,397 1,400,000 1,400,000 1,837,359 510,000 510,000 937,534 1,185,000 1,185,000 1,125,792 23,250,073 23,250,073 24,280,375 175,000 175,000 181,369 150,000 150,000 155,321 110,000 110,000 132,600 47,000 47,000 45,380 25,000 25,000 20,360 650,000 650,000 806,407 5,000 5,000 2,550 76,000 76,000 91,300 6,000 6,000 2,000 6,000 6,000 3,405 5,000 5,000 5,500 5,000 5,000 12,400 25,000 25,000 85,326 7,000 7,000 6,675 290,000 290,000 316,371 724,000 724,000 701,366 2,306,000 2,306,000 2,568,330 131 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 Intergovernmental State Sales Tax State Income Tax State Use Tax Charitable Games Tax Cannabis Education Fund Municipal Cannabis Tax Replacement Taxes Replacement Taxes - Road and Bridge Grant - Body Armor 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 $ 23,500,000 30,320,000 30,307,782 6,300,000 9,265,000 9,263,878 2,000,000 2,000,000 2,290,747 3,500 3,500 2,955 50,000 50,000 92,168 600,000 600,000 58,278 475,000 475,000 1,434,999 6,000 6,000 26,579 5,000 5,000 10,891 4,413,935 4,413,935 355,458 37,353,435 47,138,435 43,843,735 80,000 80,000 115,236 1,900,000 3,015,000 3,542,152 45,000 45,000 35,223 10,000 10,000 - 28,000 28,000 4,169 50,000 50,000 28,145 1,000 1,000 5,830 6,000 6,000 13,607 125,000 125,000 125,930 12,000 12,000 67,883 2,257,000 3,372,000 3,938,175 175,000 175,000 132,788 5,000 5,000 - 50,000 50,000 17,191 85,000 85,000 110,928 1,000 1,000 600 35,000 35,000 51,950 351,000 351,000 313,457 119 132 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 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 Other Reimbursements Human Services Revenue Fire and Police Reports Animal Release Fees Subpoena Fees Other Revenue Total Miscellaneous Total Revenues Budget Original Final Actual $ 12,100 584,100 596,947 250 250 9,387 12,350 584,350 606,334 105,000 105,000 104,536 25,000 25,000 31,658 20,000 20,000 10,621 5,000 5,000 - 67,000 67,000 63,675 2,000 2,000 1,135 5,000 5,000 6,460 250 250 275 100 100 330 20,000 20,000 73,038 249,350 249,350 291,728 65,779,208 77,251,208 75,842,134 120 133 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2022 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 221,273 4,516,816 1,736,056 1,366,677 6,549 221,273 4,825,144 1,736,056 1,366,677 6,549 Actual 152,110 4,252,225 1,624,954 1,085,561 6,549 7,847,371 8,155,699 7,121,399 1,244,855 1,244,855 1,126,233 20,131,162 20,332,237 19,942,165 18,466,750 18,471,869 18,751,795 39,842,767 40,048,961 39,820,193 11,040,864 9,820,987 8,807,969 170,437 170,437 128,135 1,859,888 1,858,890 1,301,917 283,128 283,128 260,267 2,143,016 2,142,018 1,562,184 392,384 392,384 303,830 61,436,839 60,730,486 57,743,710 121 134 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2022 General Government Public Representation - Administration Mayor and Board of Trustees Personal Services Employee Benefits Other Employee Costs Contractual Services 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 Other Expenditures Total Village Manager's Office Legal Services Contractual Services Human Resources Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Human Resources Budget Original Final Actual $ 25,006 25,006 24,851 1,917 1,917 1,901 6,000 6,000 2,974 183,050 183,050 118,472 5,300 5,300 3,912 221,273 221,273 152,110 645,293 645,293 614,605 228,442 228,442 231,052 25,400 25,400 20,706 66,294 66,294 95,038 4,400 4,400 3,932 7,776 7,776 6,175 240 240 - 24,893 24,893 24,893 143,697 143,697 - 1,146,435 1,146,435 996,401 618,300 618,300 492,370 247,717 247,717 281,412 243,406 514,528 584,654 59,960 59,960 32,161 44,050 44,050 45,310 1,000 1,000 1,504 596,133 867,255 945,041 122 135 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 Budget Original Final Actual General Government - Continued Village Administration - Continued Information Technology Personal Services $ 467,188 467,188 424,795 Employee Benefits 163,069 163,069 158,139 Other Employee Costs 7,000 7,000 670 Contractual Services 598,935 598,935 471,232 Utilities 33,500 33,500 31,964 Commodities and Supplies 500 500 445 Office and Other Equipment 15,000 15,000 15,914 Total Information Technology 1,285,192 1,285,192 1,103,159 Communications Personal Services 96,017 96,017 96,015 Employee Benefits 41,003 41,003 40,202 Other Employee Costs 2,200 2,200 - Contractual Services 96,050 96,050 116,303 Total Communications 235,270 235,270 252,520 Television Services Personal Services 76,597 104,097 72,977 Employee Benefits 31,821 41,527 31,093 Contractual Services 36,352 36,352 14,382 Commodities and Supplies 4,500 4,500 4,089 Office and Other Equipment 145,500 145,500 33,876 Total Television Services 294,770 331,976 156,417 Community Engagement Other Employee Costs 4,800 4,800 480 Contractual Services 145,000 145,000 120,756 Utilities 1,250 1,250 1,273 Commodities and Supplies 700 700 - Total Community Engagement 151,750 151,750 122,509 123 136 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 General Government - Continued Village Administration - Continued Village Clerk's Office Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services 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 $ 110,937 110,937 116,780 49,119 49,119 48,630 1,825 1,825 353 26,085 26,085 17,275 1,000 1,000 770 188,966 188,966 183,808 4,516,816 4,825,144 4,252,225 230,017 230,017 241,559 80,663 80,663 82,280 30,000 30,000 6,732 276,390 276,390 203,410 2,500 2,500 2,548 12,800 12,800 6,609 80,000 80,000 122,592 15,570 15,570 15,570 727,940 727,940 681,300 382,950 382,950 347,993 125,689 125,689 109,640 4,000 4,000 1,404 2,000 2,000 648 6,500 6,500 2,693 521,139 521,139 462,378 40,989 40,989 42,186 124 137 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 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 Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Insurance Total Administration and Support Planning and Zoning Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Planning and Zoning Budget Original Final Actual $ 261,082 261,082 269,867 80,126 80,126 85,863 2,400 2,400 980 85,505 85,505 70,792 16,875 16,875 11,588 445,988 445,988 439,090 1,736,056 1,736,056 1,624,954 132,106 132,106 132,105 46,001 46,001 43,901 4,945 4,945 2,593 28,091 28,091 27,211 3,000 3,000 1,488 1,150 1,150 1,005 12,833 12,833 12,833 228,126 228,126 221,136 211,452 211,452 204,948 79,432 79,432 73,013 6,056 6,056 5,880 26,767 26,767 24,788 5,590 5,590 3,354 329,297 329,297 311,983 125 138 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 General Government - Continued Community Development - Economic Development Personal Services Employee Benefits Other Employee Costs Contractual Services Total Community Development - Economic Development Administration and Support - Building and Inspections Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Insurance Budget Original Final Actual $ 98,372 98,372 74,606 27,721 27,721 22,615 3,000 3,000 1,895 250,000 250,000 29,504 379,093 379,093 128,620 277,150 277,150 277,027 116,256 116,256 108,346 13,100 13,100 12,971 17,345 17,345 6,298 230 230 - 19,180 19,180 19,180 Total Administration and Support - Building and Inspections 430,161 430,161 423,822 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 Commodities and Supplies Total Community Development - Code Enforcement 1,366,677 1,366,677 1,085,561 6,549 6,549 6,549 7,847,371 8,155,699 7,121,399 732,660 732,660 704,479 340,404 340,404 332,107 13,100 13,100 9,222 135,891 135,891 63,724 22,800 22,800 16,701 1,244,855 1,244,855 1,126,233 126 139 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 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 $ 916,779 951,613 924,223 4,222,817 4,237,675 4,181,514 171,770 171,770 161,362 300,403 300,403 222,543 10,000 10,000 6,893 29,965 29,965 25,510 23,180 31,180 9,589 241,437 241,437 241,437 5,916,351 5,974,043 5,773,071 406,401 406,401 434,978 198,809 198,809 233,036 5,188 5,188 2,914 5,420 5,420 4,100 525 525 - 616,343 616,343 675,028 8,475,925 8,545,592 8,762,395 1,514,174 1,543, 890 1,600,572 547,308 547,308 492,887 119,170 146,170 90,780 6,700 6,700 3,584 10,663,277 10,789,660 10,950,218 150,895 150,895 - 21,313 21,313 - 5,620 5,620 - 5,040 5,040 442 182,868 182,868 442 127 140 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 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 Civic Events Personal Services Employee Benefits Total Civic Events Investigative Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Office and Other Equipment Total Investigative Equipment Maintenance Contractual Services Commodities and Supplies Office and Other Equipment Total Equipment Maintenance Total Police Department Budget Original Final Actual $ 147,221 147,221 220,285 36,957 36,957 51,099 4,590 4,590 6,518 1,755 1,755 1,769 17,890 17,890 26,942 208,413 208,413 306,613 45,340 923 1,833,915 1,833,915 1,501,946 666,210 683,210 46,263 1,560,237 1,560,237 1,283,192 236,336 236,336 194,835 28,322 28,322 20,898 3,500 3,500 1,004 4,670 4,670 2,017 850 850 - 1,833,915 1,833,915 1,501,946 666,210 683,210 651,894 34,130 34,130 32,711 9,655 9,655 3,979 709,995 726,995 688,584 20,131,162 20,332,237 19,942,165 128 141 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 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 $ 750,239 750,239 745,981 3,990,552 3,990,552 4,081,730 59,300 59,300 45,135 284,930 279,930 742,941 14,310 14,310 12,292 31,500 3,500 1,986 234,722 234,722 234,722 5,337,553 5,332,553 5,864,787 9,175,850 9,175,850 9,070,896 1,751,743 1,751,743 1,678,883 88,327 83,327 60,276 150,973 150,973 152,698 31,735 36,735 28,833 184,147 189,517 168,075 11,382,775 11,388,145 11,159,661 284,543 284,543 275,781 1021,910 102,910 99,835 5,980 5,980 3,005 2,500 2,500 1,285 18,500 18,500 16,156 414,433 414,433 396,062 3,600 3,600 2,204 16,000 16,000 12,524 1,500 1,500 - 13,500 16,850 7,785 34,600 37,950 22,513 129 142 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 Public Safety - Continued Fire Department - Continued Equipment Maintenance Contractual Services Commodities and Supplies 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 $ 1,014,461 1,014,461 1,014,461 8 1,014,461 1,014,461 1,014,469 167,234 167,234 172,807 421,904 42,904 64,456 1,500 1,500 1,075 3,000 3,000 3,177 18,250 18,250 23,074 232,888 232,888 264,589 35,715 35,715 16,152 2,125 2,125 1,235 8,600 7,400 4,779 3,600 6,199 7,548 50,040 51,439 29,714 18,466,750 18,471,869 18,751,795 39,842,767 40,048,961 39,820,193 298,536 298,536 296,120 168,449 168,449 172,741 33,070 33,070 39,457 1,020,436 1,020,436 1,009,285 4,330 4,330 3,459 17,013 17,013 16,184 1,609 1,609 1,405 228,243 228,243 228,243 1,771,686 1,771,686 1,766,894 130 143 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 Budget Original Final Actual Highways and Streets - Continued Public Works Department - Continued Street and Buildings Division Administration Personal Services $ 128,121 128,121 121,831 Employee Benefits 46,579 46,579 42,298 Utilities 4,330 4,330 5,689 Commodities and Supplies 270 270 - Total Administration Maintenance - Public Buildings Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Office and Other Equipment Other Expenditures Total Maintenance - Public Buildings Street Maintenance Personal Services Employee Benefits Contractual Services Commodities and Supplies Office and Other Equipment Total Street Maintenance Snow Removal Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Snow Removal 179,300 179,300 169,818 440,046 440,046 424,563 171,142 171,142 178,696 476,657 472,943 427,169 42,640 46,640 61,157 158,917 154,917 140,010 - 3,714 3,714 4,505 4,505 - 1,293,907 1,293,907 1,235,309 316,536 316,536 288,919 123,022 123,022 107,474 1,670,463 450,586 240,644 49,345 49,345 36,615 12,000 4,370 - 2,171,366 943,859 673,652 411,061 411,061 413,553 158,848 158,848 146,568 111,161 111,161 66,390 15,095 22,725 17,582 696,165 703,795 644,093 131 144 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 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 $ 89,996 89,996 86,617 32,506 32,506 29,312 11,408 11,408 6,253 10,458 10,458 3,288 144,368 144,368 125,470 42,497 42,497 40,338 16,577 16,577 14,825 20,787 20,787 19,427 33,609 33,609 8,967 113,470 113,470 83,557 76,072 76,072 69,416 38,281 38,281 24,591 34,599 34,599 33,918 148,952 148,952 127,925 41,952 41,952 39,455 15,583 15,583 15,060 15 15 - 57,550 57,550 54,515 4,805,078 3,585,201 3,114,339 132 145 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 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 $ 123,411 123,411 121,521 44,103 44,103 43,837 2,525 2,525 2,282 170,039 170,039 167,640 212,724 212,724 152,086 70,570 70,570 93,146 305,336 305,336 281,971 10,142 25,642 24,146 52,088 36,588 31,310 650,860 650,860 582,659 511,063 511,063 458,545 196,735 196,735 175,505 6,723 6,723 6,747 435,723 435,723 419,214 7,800 7,800 6,722 12,536 12,536 10,762 1,170,580 1,170,580 1,077,495 111,574 111,574 94,790 43,596 43,596 43,105 2,757 2,757 2,687 37,717 37,717 34,039 195,644 195,644 174,621 133 146 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 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 $ 48,812 48,812 42,638 18,836 18,836 17,729 67,648 67,648 60,367 10,156 10,156 8,807 4,429 4,429 4,334 14,585 14,585 13,141 2,269,356 2,269,356 2,075,923 967,954 967,954 811,607 334,374 334,374 314,268 5,786 5,786 6,170 119,815 119,815 95,423 6,120 6,120 5,511 6,530 6,530 5,928 2,555 2,555 1,063 1,443,134 1,443,134 1,239,970 57,113 57,113 24,407 23,662 23,662 6,905 17,636 17,636 4,685 25,500 25,500 1,405 29,078 29,078 28,096 152,989 152,989 65,498 1,596,123 1,596,123 1,305,468 134 147 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 Budget Original Final Actual Highways and Streets - Continued Public Works Department - Continued Capital Expenditures Infrastructure Resurfacing/Curbs $ 369,400 369,400 339,990 Miscellaneous - Forestry 229,221 229,221 205,355 Total Capital Expenditures Total Highways and Streets Health Community Development - Health Health Inspections Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Health Welfare Human Services Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office and Other Equipment Insurance Total Administration and Support 598,621 598,621 545,345 11,040,864 9,820,987 8,807,969 118,492 118,492 94,959 46,387 46,387 26,959 2,816 2,816 231 5,408 5,408 5,696 t50 150 290 170,437 170,437 128,135 169,180 169,180 160,755 73,497 73,497 137,582 2,816 2,816 1,813 33,166 32,804 26,779 5,050 5,050 4,469 3,884 3,884 4,753 558 558 3,366 11,556 11,556 11,556 299,707 299,345 351,073 135 148 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 Welfare - Continued Human Services Department - Continued Social Services Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Social Services Nursing/Health Services Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Office and Other Equipment 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 Budget Original Final Actual $ 370,313 370,313 313,476 137,724 137,724 103,628 4,680 4,725 2,080 420,000 420,000 32,802 765 765 287 933,482 933,527 452,273 132,061 132,061 80,037 49,473 49,473 42,933 758 758 - 200 200 - 4,024 4,324 1,467 700 (236) 220 187,216 186,580 124,657 241,771 241,771 209,073 84,225 84,225 61,030 1,960 1,915 720 102,576 102,576 96,091 4,841 4,841 4,673 4,110 4,110 2,327 439,483 439,438 373,914 1,859,888 1,858,890 1,301,917 136 149 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2022 Welfare - Continued Community Development - Housing Housing Inspections Personal Services Employee Benefits Other Employee Costs Contractual Services 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 Contractual Services Commodities and Supplies Total 4th of July and Civic Events Holiday Decorations Contractual Services Commodities and Supplies Total Holiday Decorations Total Culture and Recreation Total Expenditures Budget Original Final Actual $ 172,909 172,909 171,839 79,256 79,256 55,896 55 30,663 30,663 32,190 300 300 287 283,128 283,128 260,267 2,143,016 2,142,018 1,562,184 213,528 214,870 167,859 6,120 6,120 2,332 219,648 220,990 170,191 29,941 29,941 27,867 43,621 42,279 24,690 73,562 72,220 52,557 73,983 71,483 54,322 25,191 27,691 26,760 99,174 99,174 81,082 392,384 392,384 303,830 61,436,839 60,730,486 57,743,710 137 150 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, 2022 Revenues Taxes Property - Levy Other Taxes Home Rule Sales Tax Video Gaming Tax Intergovernmental Mount Prospect Public Library Bonds Interest Total Revenues Expenditures Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Debt Issuance Payment to Escrow Agent Transfers In Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual 2,828,686 2,828,686 2,828,68V 922,000 922,000 922,000 75,000 75,000 235,903 1,581,000 1,581,000 1,581,000 1,000 1,000 27,805 5,407,686 5,407,686 5,595,394 4,145,000 4,304,327 4,145,000 2,303,292 2,387,128 2,281,374 6,448,292 6,691,455 6,426,374 (1,040,606) (1,283,769) (830,980) — 8,230,000 8,230,000 — (8,090,000) (8,249,328) 163,401 — 140,000 144,073 (1,040,606) (1,143,769) (686,907) 1,782,485 1,095,578 138 151 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 fight 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. Pension Stabilization Fund: The Pension Stabilization Fund is used to account for amounts set aside for future pension levy abatements. A pension stabilization fund is a financial reserve or pool of assets established to provide stability and support for a pension system. It is primarily designed to address funding shortfalls or unfunded liabilities within a pension plan. 139 152 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. 140 153 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2022 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Other Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll 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 141 Special Capital Revenue Projects Totals $ 7,404,244 12,304,169 19,708,413 607,082 1,374,243 1,981,325 651,152 — 651,152 515,109 892,670 1,407,779 90,757 9,918 100,675 9,268,344 14,581,000 23,849,344 429,868 101,936 531,804 13,001 — 13,001 3,820 — 3,820 10,000 — 10,000 1,630,681 — 1,630,681 2,087,370 101,936 2,189,306 90,757 9,918 100,675 5,800,425 — 5,800,425 1,289,792 — 1,289,792 — 14,469,146 14,469,146 7,180,974 14,479,064 21,660,038 9,268,344 14,581,000 23,849,344 154 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, 2022 Revenues Taxes Intergovernmental Licenses and Permits Charges for Services Investment Income Miscellaneous Total Revenues Expenditures Public Safety Highways and Streets Health Welfare Capital Outlay 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 Balances Fund Balances - Beginning Fund Balances - Ending Special Capital Revenue Projects Totals $ 1,063,517 5,329,411 6,392,928 3,821,161 — 3,821,161 — 1,320,592 1,320,592 4,992,177 — 4,992,177 57,961 147,216 205,177 1,469,638 993,830 2,463,468 11,404,454 7,791,049 19,195,503 88,663 — 88,663 4,151,138 — 4,151,138 4,909,730 — 4,909,730 468,022 — 468,022 — 5,177,249 5,177,249 1,549,521 — 1,549,521 168,604 — 168,604 11,335,678 5,177,249 16,512,927 68,776 2,613,800 2,682,576 750,000 3,700,000 4,450,000 818,776 6,313,800 7,132,576 6,362,198 8,165,264 14,527,462 7,180,974 14,479,064 21,660,038 142 155 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet December 31, 2022 See Following Page 143 156 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet December 31, 2022 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Other Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Due to Other Governments Due to Other Funds 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 $ 3,659,513 1,048,165 2,929 221,896 — 599,540 — 3,961 — 511,148 — 90,757 — 144 3,885,370 1,738,462 514,077 76,244 344,912 - - 13,001 — 3,820 10,000 504,077 80,064 357,913 514,077 — 90,757 — 3,805,306 — 1,289,792 — 3,805,306 1,380,549 — 3,885,370 1,738,462 514,077 157 Federal Foreign Asset Equitable DUI Fire Seizure Share Fines Insurance Business Pension District Stabilization Totals 90,381 472,562 138,882 551,978 689,834 750,000 7,404,244 - - 28 385,158 - 607,082 - 51,612 - 651,152 515,109 90,757 90,381 472,562 138,910 551,978 1,126,604 750,000 9,268,344 8,712 - - 429,868 13,001 3,820 10,000 1,126,604 - 1,630,681 8,712 1,126,604 - 2,087,370 90,757 90,381 472,562 138,910 543,266 - 750,000 5,800,425 1,289,792 90,381 472,562 138,910 543,266 - 750,000 7,180,974 90,381 472,562 138,910 551,978 1,126,604 750,000 9,268,344 145 158 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, 2022 Revenues Taxes Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues Expenditures Public Safety Highways and Streets Health Welfare 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 Balances Fund Balances - Beginning Fund Balances - Ending Motor Community Fuel Refuse Development Tax Disposal Block Grant 2,218,973 — 418,646 — 4,992,177 — 36,049 7,932 — 1,221,142 199,120 49,376 3,476,164 5,199,229 468,022 146 4,151,138 — 4,909,730 — 468,022 4,151,138 4,909,730 468,022 (674,974) 289,499 (674,974) 289,499 — 4,480,280 1,091,050 — 3,805,306 1,380,549 — 159 Federal Foreign Asset Equitable DUI Fire Business Pension Seizure Share Fines Insurance District Stabilization Totals - - - 120,484 943,033 - 1,063,517 2,100 413,407 28 768,007 - 3,821,161 - 4,992,177 953 1,283 259 4,400 7,085 - 57,961 1,469,638 3,053 414,690 287 124,884 1,718,125 - 11,404,454 18,177 - 10,054 60,432 - - 88,663 4,151,138 4,909,730 468,022 1,549,521 - 1,549,521 168,604 - 168,604 18,177 - 10,054 60,432 1,718,125 - 11,335,678 (15,124) 414,690 (9,767) 64,452 68,776 750,000 750,000 (15,124) 414,690 (9,767) 64,452 - 750,000 818,776 105,505 57,872 148,677 478,814 6,362,198 90,381 472,562 138,910 543,266 - 750,000 7,180,974 147 160 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, 2022 Revenues Intergovernmental Motor Fuel Tax Allotments Investment Income Miscellaneous Total Revenues Expenditures Highway and Streets Street Maintenance Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 1,900,000 1,900,000 2,218,973 1,500 1,500 36,049 1,199,940 1,199,940 1,221,142 3,101,440 3,101,440 3,476,164 4,056,322 4,374,549 (954,882) (1,273,109) 4,151,138 (674,974) 4,480,280 3,805,306 148 161 VILLAGE OF MOUNT PROSPECT, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2022 Highway and Streets Street Division Street Maintenance Contractual Services Snow Removal Contractual Services Commodities and Supplies Total Snow Removal Traffic Control/Street Lighting Contractual Services Utilities Total Traffic Control/Street Lighting Street Improvement Projects Infrastructure Total Expenditures 149 Budget Original Final Actual $ 186,787 186,787 186,367 86,152 86,152 91,827 387,600 387,600 308,653 473,752 473,752 400,480 101,783 101,783 69,150 254,000 254,000 196,697 355,783 355,783 265,847 3,040,000 3,358,227 3,298,444 4,056,322 4,374,549 4,151,138 162 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, 2022 Revenues Charges for Services Investment Income Miscellaneous Total Revenues Expenditures Health Refuse Disposal Division Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Insurance Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final S 4,932,000 4,932,000 200 200 10,000 10,000 Actual 4,992,177 7,932 199,120 4,942,200 4,942,200 5,199,229 327,033 327,033 313,899 130,431 130,431 131,977 1,405 1,405 645 4,397,956 4,397,956 4,381,109 42,771 42,771 65,716 16,384 16,384 16,384 4,915,980 4,915,980 4,909,730 26,220 26,220 289,499 1,380,549 150 163 VILLAGE OF MOUNT PROSPECT, ILLINOIS Refuse Disposal - Special Revenue Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2022 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 Investment Income Miscellaneous Reimbursements Other Total Miscellaneous Total Revenues 151 Budget Original Final Actual S 3,622,500 3,622,500 3,600,868 1,138,500 1,138,500 1,219,226 30,000 30,000 31,507 5,000 5,000 13,112 110,000 110,000 100,000 2,000 2,000 1,000 24,000 24,000 26,464 4,932,000 4,932,000 4,992,177 200 200 7,932 5,000 5,000 191,669 5,000 5,000 7,451 10,000 10,000 199,120 4,942,200 4,942,200 5,199,229 164 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, 2022 Revenues Intergovernmental Grant - CDBG Miscellaneous Program Income Total Revenues Expenditures Welfare Community Programs Residential Rehabilitation Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 427,770 427,770 418,646 80,000 80,000 49,376 507,770 507,770 468,022 42,770 42,770 140,843 465,000 465,000 327,179 507,770 507,770 468,022 152 165 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, 2022 Revenues Intergovernmental Seized Assets Investment Income Total Revenues Expenditures Public Safety Other Employee Costs Contractual Services Equipment Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 6,000 6,000 2,100 100 100 953 6,100 6,100 3,053 1,000 1,000 — 3,000 3,000 — 3,000 8,608 18,177 7,000 12,608 18,177 (900) (6,508) (15,124) 90,381 153 166 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, 2022 Revenues Intergovernmental Federal Equitable Shared Funds Investment Income Total Revenues Expenditures Public Safety Contractual Services Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 8,000 220 420,000 413,407 220 1,283 8,220 420,220 414,690 1,000 1,000 — 7,220 419,220 414,690 57,872 472,562 154 167 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, 2022 Revenues Intergovernmental DUI Fines Investment Income 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 $ 8,000 8,000 28 20 20 259 8,020 8,020 287 1,000 1,000 — 1,000 1,000 - - 45,000 10,054 2,000 47,000 10,054 6,020 (38,980) (9,767) 148,677 138,910 155 168 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, 2022 Revenues Taxes Other Taxes Foreign Fire Insurance Tax Investment Income Total Revenues Expenditures Public Safety Insurance Other Employee Costs Contractual Services Commodities and Supplies Equipment Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 90,000 90,000 120,484 150 150 4,400 90,150 90,150 124,884 500 500 — 1,200 1,200 3,405 11,000 11,000 8,142 10,600 10,600 2,901 40,000 68,712 45,984 63,300 92,012 60,432 26,850 (1,862) 64,452 543,266 156 169 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, 2022 Budget Original Final Actual Revenues Taxes Other Taxes Food and Beverage Tax S 325,000 325,000 349,969 Hotel/Motel Tax 175,000 175,000 233,336 Movie Theater Tax 60,000 60,000 51,995 Business District Tax 275,000 275,000 307,733 Intergovernmental State Sales Tax 450,000 900,000 768,007 Investment Income 500 500 7,085 Total Revenues 1,285,500 1,735,500 1,718,125 Expenditures Debt Service Principal Retirement 1,285,500 1,549,521 1,549,521 Interest and Fiscal Charges — 185,979 168,604 Total Expenditures 1,285,500 1,735,500 1,718,125 Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending — 157 170 VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Stabilization - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2022 Budget Original Final Revenues Investment Income $ Expenditures General Government Contractual Services Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources Transfers In — 750,000 Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Actual 750,000 750,000 750,000 750,000 158 171 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Capital Projects Funds Combining Balance Sheet December 31, 2022 ASSETS Cash and Investments Receivables - Net of Allowances Other Taxes Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable FUND BALANCES Flood Street Capital Control Improvement Improvement Construction Construction Totals $ 7,550,000 1,037,209 3,716,960 12,304,169 437,359 437,359 499,525 1,374,243 892,670 892,670 9,918 — 9,918 7,987,359 1,484,486 5,109,155 14,581,000 47,162 3,856 50,918 101,936 Assigned 7,940,197 1,470,712 5,058,237 14,469,146 Total Liabilities and Fund Balances 7,987,359 1,484,486 5,109,155 14,581,000 159 172 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, 2022 Flood Street Capital Control Improvement Improvement Construction Construction Totals Revenues Taxes Other S 1,837,359 915,359 2,576,693 5,329,411 Licenses, Permits and Fees 1,320,592 1,320,592 Investment Income 53,259 52,815 41,142 147,216 Miscellaneous — 38,621 955,209 993,830 Total Revenues 1,890,618 1,006,795 4,893,636 7,791,049 Expenditures Capital Outlay 1,602,204 534,285 3,040,760 5,177,249 Excess (Deficiency) of Revenues Over (Under) Expenditures 288,414 472,510 1,852,876 2,613,800 Other Financing Sources Transfers In 2,700,000 1,000,000 — 3,700,000 Net Change in Fund Balances 2,988,414 1,472,510 1,852,876 6,313,800 Fund Balances - Beginning 4,951,783 8,120 3,205,361 8,165,264 Fund Balances - Ending 7,940,197 1,480,630 5,058,237 14,479,064 160 173 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, 2022 Revenues Taxes Other Taxes Home Rules Sales Tax Investment Income Total Revenues Expenditures Capital Outlay Equipment Building Improvements Infrastructure 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 1,400,000 1,400,000 1,837,359 1,000 1,000 53,259 1,401,000 1,401,000 1,890,618 135,000 273,000 135,980 7,560,000 6,644,862 583,913 1,518,560 1,658,681 882,311 9,213,560 8,576,543 1,602,204 (7,812,560) (7,175,543) 288,414 7,700,000 2,700,000 2,700,000 (112,560) (4,475,543) 2,988,414 4 951 791 7,940,197 161 174 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Improvement - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2022 Capital Outlay Equipment Finance Department Software Furniture and Equipment Village Warning Sirens Other Equipment Total Equipment Building Improvements Public Works Facility Improvements HVAC Replacements Parking Lot Improvements Village Hall Facility Improvements Train Station Platform Extension Fire Station Improvements Other Public Building Improvements Total Building Improvements Infrastructure Residential Street Lights Residential Street Light Improvements Facade Program Flood Control Improvement Kensington Road Bike Path Brick Sidewalks Pedestrian Bridge Other Services Central Road Pedestrian Crossing Budget Original Final Actual $ 10,000 95,000 - 30,000 10,000 95,000 138,000 30,000 - - 126,300 9,680 135,000 273,000 135,980 5,250,000 5,213,531 199,432 1,650,000 233,014 143,237 55,000 55,000 36,883 340,000 7,289 6,536 - 900,000 - 100,000 71,028 68,230 165,000 165,000 129,595 7,560,000 6,644,862 583,913 138,560 138,560 49,265 225,000 146,701 136,125 100,000 100,000 9,750 100,000 79,487 24,267 200,000 200,000 7,686 125,000 125,000 113,524 - 22,533 22,533 120,000 120,000 25,397 510,000 726,400 493,764 Total Infrastructure 1,518,560 1,658,681 882,311 Total Expenditures 9,213,560 8,576,543 1,602,204 162 175 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, 2022 Revenues Taxes Other Taxes Home Rule Sales Tax Investment Income 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 478,000 478,000 915,359 1,000 1,000 52,815 1,010,000 10,000 8,902 25,000 25,000 29,719 1,514,000 514,000 1,006,795 1,698,030 1,961,462 467,915 60,661 77,795 66,370 1,758,691 2,039,257 534,285 (244,691) (1,525,257) 472,510 1,000,000 1,000,000 (244,691) (525,257) 1,472,510 1,480,630 163 176 VILLAGE OF MOUNT PROSPECT, ILLINOIS Flood Control Construction - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2022 Budget Original Final Actual Capital Outlay Public Improvements Infrastructure Levee Repairs $ 41,616 60,940 36,100 Culvert and Ditch 31,212 11,888 7,959 Levee Supplies 5,202 5,202 406 Creek Bank Stabilization 1,475,000 1,457,866 64,262 Creek Tree Trimming 25,000 25,000 24,990 Private Property Drainage 120,000 120,000 100,992 Levee 37 — 280,566 233,206 Total Infrastructure 1,698,030 1,961,462 467,915 Other Electricity 3,641 3,641 — Residential Reimbursements 5,000 5,000 — Contractual Services 52,020 69,154 66,370 Total Other 60,661 77,795 66,370 Total Expenditures 1,758,691 2,039,257 534,285 164 177 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, 2022 Revenues Taxes Other Taxes Home Rule Sales Tax Municipal Motor Fuel Tax Licenses, Permits and Fees Investment Income Miscellaneous Reimbursements Other Total Revenues Expenditures Capital Outlay Contractual Services Infrastructure Street Resurfacing Other Expenditures Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final 1,400,000 600,000 1,450,000 600 1,400,000 600,000 1,450,000 600 Actual 1,837,359 739,334 1,320,592 41,142 1,000 1,000 — 5,579,000 5,579,000 955,209 9,030,600 9,030,600 4,893,636 40,000 8,786,000 6,444,996 47,073 38,467 2,999,596 2,697 8,826,000 6,532,069 3,040,760 204,600 2,498,531 1,852,876 12 1)n1z 111<i 5,058,237 165 178 PROPRIETARY FUNDS 166 179 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. 167 180 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, 2022 Operating Revenues Charges for Services Operating Expenses Administration and Maintenance Operating Income (Loss) Nonoperating Revenues (Expenses) Debt Issuance Investment Income Other Income Principal Payment Property Taxes Disposal of Capital Assets Interest Expense Change in Net Position - Budgetary Basis Adjustments to GAAP Basis Depreciation Amortization of Unamortized Bond Premium 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 $ 24,678,900 19,178,900 Actual 18,904,331 29,848,921 26,418,959 17,035,267 (5,170,021) (7,240,059) 1,869,064 10,000,000 10,000,000 — 21,125 21,125 356,342 32,500 32,500 62,360 (575,000) (575,000) — (10,899) (8,933) (639,331) (639,331) (1,088,134) 8,839,294 8,839,294 (689,264) 3,669,273 1,599,235 1,179,800 (930,708) 97,804 (7,500) 4,398,395 3,557,991 4,737,791 45 147 NR 49,885,089 168 181 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2022 Charges for Services Water Sales Sewer Fees Water Penalties Water Meter Fees Water and Sewer Taps Sewer Penalties Budget Original Final Actual $ 14,921,500 14,921,500 15,025,258 3,569,400 3,569,400 3,725,700 100,000 100,000 111,293 27,000 27,000 13,880 1,000 1,000 875 25,000 25,000 27,325 6,035,000 535,000 — Total Operating Revenues 24,678,900 19,178,900 18,904,331 169 182 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2022 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 $ 535,091 535,091 533,082 246,307 246,307 (291,206) 46,248 46,248 42,647 294,905 294,905 336,612 11,200 11,200 10,957 170,631 170,631 170,631 14,537 14,537 8,506 1,530 1,530 - 1,320,449 1,320,449 811,229 188,431 188,431 163,115 78,804 78,804 69,887 10,000 10,000 4,737 6,891 6,891 7,173 1,722 1,722 1,722 285,848 285,848 246,634 54,343 54,343 31,484 15,204 15,204 14,925 54,115 54,115 54,115 6,791 6,791 6,189 130,453 130,453 106,713 381,001 381,001 380,122 166,867 166,867 175,109 98,000 89,755 78,635 83,232 83,232 73,849 55,973 55,973 44,139 40,000 40,000 11,568 825,073 816,828 763,422 170 183 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, 2022 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 $ 620,669 620,669 559,908 216,779 216,779 207,963 240,731 240,731 230,058 85,400 93,645 150,699 10,000 10,000 8,911 1,125 1,125 1,124 1,174,704 1,182,949 1,158,663 223,728 223,728 205,201 69,999 69,999 61,957 62,055 62,055 61,996 105,497 105,497 84,944 461,279 461,279 414,098 56,539 56,539 48,469 16,885 16,885 14,614 129,730 129,730 87,114 3,574 3,574 3,240 67,626 67,626 67,045 274,354 274,354 220,482 740,927 740,927 740,927 396,436 396,436 368,201 156,907 156,907 143,415 179,174 192,332 155,640 25,393 12,235 6,692 25,944 25,944 20,467 783,854 783,854 694,415 171 184 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, 2022 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 Total Lake Michigan Water Acquisition Total Operating Expenses Budget Original Final Actual $ 6,935,000 6,989,575 698,713 3,570,000 668,276 144,515 800,000 67,966 74,440 5,500,000 5,649,221 3,554,352 7,046,980 7,046,980 7,406,664 7,046,980 7,046,980 7,406,664 29,848,921 26,418,959 17,035,267 172 185 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Net Position December 31, 2022 ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Other Total Current Assets Noncurrent Assets Capital Assets Depreciable Accumulated Depreciation Total Noncurrent Assets Total Assets Accounts Payable Other Payables Total Liabilities LIABILITIES NET POSITION Parking System Village Parking Revenue System Totals $ 188,007 147,426 129 335,433 129 188,007 147,555 335,562 364,800 — 364,800 (364,800) — (364,800) 188,007 147,555 335,562 10,017 1,569 11,586 560 450 1,010 10,577 2,019 12,596 Unrestricted 177,430 145,536 322,966 173 186 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, 2022 Operating Revenues Charges for Services Parking Fees Rental Fees Convenience Fees Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating Income (Loss) Nonoperating Revenues Investment Income Income (Loss) Before Transfers Transfers In Change in Net Position Net Position - Beginning Net Position - Ending Parking System Village Parking Revenue System Totals $ 90,414 13,272 103,686 — 7,552 7,552 3,348 414 3,762 93,762 21,238 115,000 87,366 92,886 180,252 6,396 (71,648) (65,252) 1,044 1,628 2,672 7,440 (70,020) (62,580) 75,000 — 75,000 82,440 (70,020) 12,420 94,990 215,556 310,546 177,430 145,536 322,966 174 187 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2022 Cash Flows from Operating Activities Receipts from Customers and Users Payments to Suppliers Payments to Employees Cash Flows from Noncapital Financing Activities Transfers In 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: (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities 175 Parking System Village Parking Revenue System Totals $ 93,762 21,158 114,920 (79,315) (87,802) (167,117) (8,577) (8,577) (17,154) 5,870 (75,221) (69,351) 75,000 — 75,000 1,044 1,628 2,672 81,914 (73,593) 8,321 106,093 221,019 327,112 188,007 147,426 335,433 6,396 (71,648) (65,252) — (80) (80) (526) (3,493) (4,019) 5,870 (75,221) (69,351) 188 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, 2022 Operating Revenues Charges for Services Parking Fees Convenience Fees Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating Income (Loss) Nonoperating Revenues Interest Income Income (Loss) before Transfers Transfers In Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 100,000 100,000 90,414 1,500 1,500 3,348 101,500 101,500 93,762 159,806 159,806 87,366 (58,306) 100 (58,306) 100 6,396 1,044 (58,206) 75,000 (58,206) 75,000 7,440 75,000 16,794 16,794 82,440 177,430 176 189 VILLAGE OF MOUNT PROSPECT, ILLINOIS Parking System Revenue - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2022 Administration, Maintenance and Improvements Personal Services Employee Benefits Contractual Services Utilities Insurance Commodities and Supplies Budget Original Final Actual $ 18,847 18,847 10,796 10,955 10,955 5,419 106,725 106,725 58,533 10,173 10,173 3,075 1,875 1,875 1,875 11,231 11,231 7,668 Total Operating Expenses 159,806 159,806 87,366 177 190 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, 2022 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 Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 87,000 87,000 13,272 6,000 6,000 7,552 3,060 3,060 414 96,060 96,060 21,238 149,038 149,038 92,886 (52,978) (52,978) (71,648) 150 150 1,628 (52,828) (52,828) (70,020) 145,536 178 191 VILLAGE OF MOUNT PROSPECT, ILLINOIS Village Parking System - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2022 Administration, Maintenance and Improvements Personal Services Employee Benefits Contractual Services Insurance Commodities and Supplies Capital Expenses Budget Original Final Actual $ 18,884 18,884 10,796 11,009 11,009 5,420 58,234 58,234 43,406 326 326 326 585 585 585 60,000 60,000 32,353 Total Operating Expenses 149,038 149,038 92,886 179 192 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. 180 193 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Net Position December 31, 2022 See Following Page 181 194 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Net Position December 31, 2022 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 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 $ 396,800 396,800 250,988 (20,170) 230,818 230,818 627,618 627,618 230,818 396,800 627,618 182 195 Risk Vehicle Vehicle Management Replacement Maintenance Totals 398,420 12,025,704 1,089,009 13,909,933 - 11,846 - 11,846 1,671 - - 1,671 - - 9,365 9,365 3,281,866 - - 3,281,866 - - 383,014 383,014 146,100 - 13,741 159,841 3,828,057 12,037,550 1,495,129 17,757,536 - 8.3.3,205 - 833,205 - 16,599,252 92,062 16,942,302 - (10,317,325) (92,062) (10,429,557) - 7,115,132 - 7,345,950 1,419,870 - - 1,419,870 1,419,870 7,115,132 - 8,765,820 5,247,927 19,152,682 1,495,129 26,523,356 - - 104,482 104,482 5,247,927 19,152,682 1,599,611 26,627,838 54,644 8,190 53,912 116,746 - - 43,119 43,119 176,253 - - 176,253 21,002 - - 21,002 - - 10,377 10,377 251,899 8,190 107,408 367,497 - - 41,510 41,510 365,455 - - 365,455 - - 373,859 373,859 365,455 - 415,369 780,824 617,354 8,190 522,777 1,148,321 - - 276,578 276,578 617,354 8,190 799,355 1,424,899 - 7,115,132 - 7,345,950 4,630,573 12,029,360 800,256 17,856,989 4,630,573 19,144,492 800,256 25,202,939 183 196 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, 2022 Computer Replacement Operating Revenues Charges for Services $ 210,100 Contributions — Miscellaneous — Total Operating Revenues 210,100 Operating Expenses Administration and Maintenance 134,644 Insurance and Claims — Depreciation 13,947 Total Operating Expenses 148,591 Operating Income (Loss) 61,509 Nonoperating Revenues (Expenses) Disposal of Capital Assets — Interest Income 2,307 2,307 Change in Net Position Net Position - Beginning Net Position - Ending 63,816 563,802 627,618 184 197 Risk Vehicle Vehicle Management Replacement Maintenance Totals 8,126,301 1,791,584 1,356,531 2,032,391 11,725,323 1,791,584 (86,767) — (177) (86,944) 9,831,118 1,356,531 2,032,214 13,429,963 375,355 9,464,809 273,233 1,212,539 2,291,603 3,074,835 9,464,809 1,226,486 9,840,164 1,485,772 2,291,603 13,766,130 (9,046) (129,241) (259,389) (336,167) 52,506 52,506 2,524 (280,570) 9,735 (266,004) 2,524 (228,064) 9,735 (213,498) (6,522) (357,305) (249,654) (549,665) 4,637,095 19,501,797 1,049,910 25,752,604 4,630,573 19,144,492 800,256 25,202,939 185 198 VILLAGE OF MOUNT PROSPECT, ILLINOIS Internal Service Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2022 Computer Replacement Cash Flows from Operating Activities Receipts from Customers and Users $ — Interfund Services Provided 210,100 Payments to Suppliers (134,644) Payments to Employees — 75,456 Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets — Purchase of Capital Assets — 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 to Net Cash Provided by (Used in) Operating Activities Depreciation (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities 2,307 77,763 319,037 396,800 61,509 13,947 75,456 186 199 Risk Vehicle Vehicle Management Replacement Maintenance Totals 2,755,396 — (177) 2,755,219 7,137,855 1,370,599 2,013,914 10,732,468 (9,970,549) (312,397) (1,287,751) (11,705,341) (980,642) (980,642) (77,298) 1,058,202 (254,656) 801,704 74,132 — 74,132 (708,828) — (708,828) (634,696) — (634,696) 2,524 (280,570) 9,735 (266,004) (74,774) 142,936 (244,921) (98,996) 473,194 11,882,768 1,333,930 14,008,929 398,420 12,025,704 1,089,009 13,909,933 (9,046) (129,241) (259,3 89) (336,167) 1,212,539 1,226,486 62,133 14,068 (18,477) 57,724 (130,385) (39,164) 23,210 (146,339) (77,298) 1,058,202 (254,656) 801,704 187 200 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, 2022 Budget Original Final Actual Operating Revenues Charges for Services Water and Sewer Fund $ 12,600 12,600 12,600 General Fund 197,500 197,500 197,500 Total Operating Revenues 210,100 210,100 210,100 Operating Expenses Administration Capital Outlay 194,000 194,000 134,644 Depreciation 13,947 Total Operating Expenses 194,000 194,000 148,591 Operating Income 16,100 16,100 61,509 Nonoperating Revenues Investment Income 75 75 2,307 Change in Net Position 16,175 16,175 63,816 Net Position - Beginning 563,802 Net Position - Ending 627,618 188 201 VILLAGE OF MOUNT PROSPECT, ILLINOIS Computer Replacement - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2022 Administration Capital Outlay Depreciation Budget Original Final Actual $ 194,000 194,000 134,644 13,947 Total Operating Expenses 194,000 194,000 148,591 189 202 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, 2022 Budget Original Final Actual Operating Revenues Charges for Services $ 8,269,417 8,269,417 8,126,301 Contributions 1,795,450 1,795,450 1,791,584 Miscellaneous 135,000 135,000 (86,767) Total Operating Revenues 10,199,867 10,199,867 9,831,118 Operating Expenses Administration 500,000 500,000 375,355 Insurance and Claims 9,186,800 9,396,413 9,464,809 Total Operating Expenses 9,686,800 9,896,413 9,840,164 Operating Income (Loss) 513,067 303,454 (9,046) Nonoperating Revenues Investment Income 180 180 2,524 Change in Net Position 513,247 303,634 (6,522) Net Position - Beginning 4,637,095 Net Position - Ending 4,630,573 190 203 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2022 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 Vision Insurance Retiree Health Insurance Dental Insurance Vision Insurance Total Contributions Miscellaneous Other Reimbursements Miscellaneous Income Total Miscellaneous Budget Original Final Actual $ 6,924,008 6,924,008 6,805,313 18,884 18,884 18,884 208,331 208,331 208,331 5,475 5,475 5,475 3,926 3,926 3,926 33,793 33,793 33,793 1,075,000 1,075,000 1,050,579 8,269,417 8,269,417 8,126,301 687,000 687,000 688,777 132,000 132,000 129,297 25,500 25,500 26,579 15,500 15,500 17,073 900,000 900,000 893,370 35,000 35,000 35,816 450 450 672 1,795,450 1,795,450 1,791,584 135,000 135,000 (86,145) (622) 135,000 135,000 (86,767) Total Operating Revenues 10,199,867 10,199,867 9,831,118 191 204 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2022 Administration Casualty and Property Program Other Equipment Other Contractual Services Medical Program Claims Administration Total Administration Insurance and Claims Casualty and Property Program Liability Insurance Other Insurance Property Claims Liability Claims Workers' Compensation 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 Medical Expense - Vision Health and Wellness Supplies Life Insurance Total Medical Program Total Insurance and Claims Budget Original Final Actual $ 100,000 100,000 - 30,000 30,000 22,336 130,000 130,000 22,336 370,000 370,000 353,019 500,000 500,000 375,355 600,000 809,613 809,613 25,000 25,000 11,409 100,000 100,000 - 150,000 150,000 156,641 400,000 400,000 260,303 10,000 10,000 - 10,000 10,000 9,000 10,000 10,000 30,417 1,305,000 1,514,613 1,277,383 1,300,000 1,300,000 1,188,611 6,210,000 6,210,000 6,587,784 300,000 300,000 308,300 20,432 22,500 22,500 13,613 49,300 49,300 68,686 7,881,800 7,881,800 8,187,426 9,186,800 9,396,413 9,464,809 Total Operating Expenses 9,686,800 9,896,413 9,840,164 192 205 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, 2022 Operating Revenues Charges for Services Operating Expenses Administration Depreciation Total Operating Expenses Operating (Loss) Nonoperating Revenues (Expenses) Disposal of Capital Assets Investment Income (Loss) Other Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 1,357,450 3,223,000 1,357,450 1,356,531 2,709,466 273,233 — 1,212,539 31223,000 2,709,466 1,485,772 (1,865,550) (1,352,016) (129,241) 5,000 5,000 52,506 77,500 77,500 (280,570) 5,000 5,000 — 87,500 87,500 (228,064) (1,778,050) (1,264,516) (357,305) 19,501,797 19,144,492 193 206 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2022 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 $ 4,500 4,500 4,500 1,500 1,500 1,500 3,670 3,670 3,670 7,670 7,670 7,670 1,500 1,500 1,500 76,680 76,680 76,680 693,140 693,140 693,140 300,290 300,290 300,290 13,330 13,330 13,330 254,170 254,170 254,170 1,000 1,000 81 Total Operating Revenues 1,357,450 1,357,450 1,356,531 194 207 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2022 Administration Capital Outlay Police Vehicles Fire Vehicles Public Works Total Capital Outlay Less Capital Assets Capitalized Total Administration Depreciation Budget Original Final Actual $ 399,000 463,222 1,757 1,036,000 852,244 275,028 1,788,000 1,394,000 705,276 3,223,000 2,709,466 982,061 (708,828) 3,223,000 2,709,466 273,233 1,212,539 Total Operating Expenses 3,223,000 2,709,466 1,485,772 195 208 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, 2022 Operating Revenues Charges for Services Operating Expenses Administration and Maintenance Operating (Loss) Nonoperating Revenues Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 2,032,391 2,032,391 2,032,214 2,392,295 2,492,295 2,291,603 (359,904) (459,904) (259,389) 300 300 9,735 (359,604) (459,604) (249,654) 1,049,910 800,256 196 209 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2022 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 $ 3,049 3,049 3,049 3,252 3,252 3,252 3,049 3,049 3,049 4,268 4,268 4,268 21,340 21,340 21,340 3,049 3,049 3,049 517,650 517,650 517,650 321,321 321,321 321,321 632,479 632,479 632,479 33,128 33,128 33,128 3,049 3,049 3,049 486,757 486,757 486,757 2,032,391 2,032,391 2,032,391 (177) Total Operating Revenues 2,032,391 2,032,391 2,032,214 197 210 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2022 Administration and Maintenance Vehicle Division Administration Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office Equipment Insurance Total Vehicle Division Administration Vehicle Maintenance Program Personal Services Employee Benefits Contractual Services Commodities and Supplies Other Equipment Total Vehicle Maintenance Program Budget Original Final Actual $ 124,523 124,523 121,590 75,777 75,777 101,591 7,395 7,395 4,519 64,173 64,173 61,839 4,590 4,590 3,152 2,142 2,142 1,387 639 639 159 14,093 14,093 14,093 293,332 293,332 308,330 946,203 946,203 837,767 377,689 377,689 348,676 103,508 73,508 40,112 669,132 799,132 755,393 2,431 2,431 1,325 2,098,963 2,198,963 1,983,273 Total Operating Expenses 2,392,295 2,492,295 2,291,603 198 211 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. 199 212 VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Trust Funds Combining Statement of Fiduciary Net Position December 31, 2022 ASSETS Cash and Cash Equivalents Investments Illinois Police Officer's Pension Investment Fund Illinois Firefighters' Pension Investment Fund Due from Other Funds Prepaids Total Assets LIABILITIES Accounts Payable NET POSITION Net Position Restricted for Pensions 200 Police Firefighters' Pension Pension Totals $ 2,087,298 1,664,404 3,751,702 77,792,601 — 77,792,601 — 67,998,655 67,998,655 785,623 757,484 1,543,107 11,358 7,505 18,863 80,676,880 70,428,048 151,104,928 5,550 26,008 31,558 80,671,330 70,402,040 151,073,370 213 VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Trust Funds Combining Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2022 Additions Contributions - Employer Contributions - Plan Members Total Contributions Investment Income (Loss) Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment (Loss) Total Additions Deductions Administration Benefits and Refunds Total Deductions Change in Fiduciary Net Position Net Position Restricted for Pensions Beginning Ending Police Firefighters' Pension Pension Totals $ 3,821,104 3,678,359 7,499,463 1,020,818 811,804 1,832,622 4,841,922 4,490,163 9,332,085 228,594 122,398 350,992 (13,888,335) (12,151,425) (26,039,760) (13,659,741) (12,029,027) (25,688,768) (77,211) (42,038) (119,249) (13,736,952) (12,071,065) (25,808,017) (8,895,030) (7,580,902) (16,475,932) 68,343 69,199 137,542 6,839,629 6,965,087 13,804,716 6,907,972 7,034,286 13,942,258 (15,803,002) (14,615,188) (30,4] 8,190) 96,474,332 85,017,228 181,491,560 80,671,330 70,402,040 151,073,370 201 214 VILLAGE OF MOUNT PROSPECT, ILLINOIS Consolidated Year -End Financial Report December 31, 2022 CSFA # Program Name State Federal Other Total 420-00-1992 Purchase and Installation of a Back-up Generator for a Levee $ 223,856 223,856 494-00-2356 Rebuild Illinois Local Bond Program 1,429,641 1,429,641 Other Grant Programs and Activities — 1,317,322 357,950 1,675,272 All Other Costs Not Allocated 89,909,102 89,909,102 1,653,497 1,317,322 90,267,052 93,237,871 202 215 668 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 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS June 1, 2023 The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements, and have issued our report thereon dated June 1, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. According, we do not express an opinion on the effectiveness of the Village's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Village's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 203 216 Village of Mount Prospect, Illinois June 1, 2023 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Z"Z°Q1Z" & ,40fw, z4v LAUTERBACH & AMEN, LLP 204 217 SUPPLEMENTAL SCHEDULES 205 218 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of General Long -Term Debt Long -Term Debt Payable by Governmental Funds December 31, 2022 See Following Page 206 219 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of General Long -Term Debt Long -Term Debt Payable by Governmental Funds December 31, 2022 AMOUNTS TO BE PROVIDED FOR THE RETIREMENT OF GENERAL LONG- TERM DEBT GENERAL LONG-TERM DEBT PAYABLE General Obligation Bonds Payable Business District Limited Tax Note Payable Compensated Absences Payable Net Pension Liability - Police Pension Net Pension Liability - Firefighters' Pension Total OPEB Liability - RBP Unamortized Bond Premium Totals 207 General General General General Obligation Obligation Obligation Obligation Bonds of Bonds of Bonds of Bonds of 2014 2016A 2017 2018A $ 1,265,000 8,860,000 4,520,000 6,675,000 $ 1,265,000 8,860,000 4,520,000 6,675,000 1,265,000 8,860,000 4,520,000 6,675,000 220 General General General Business Net Net Obligation Obligation Obligation District Pension Pension Total Unamortized Bonds of Bonds of Bonds of Limited Tax Compensated Liability Liability OPEB Bond 2018B 2019B 2022B Note Absences Police Firefighters Liability Premiums Totals 37,225,000 7,725,000 8,230,000 37,600,588 4,171,193 68,040,859 58,499,973 9,420,116 2,144,366 254,377,095 37,225,000 7,725,000 8,230,000 74,500,000 — — — 37,600,588 — — — — — 37,600,588 — 4,171,193 — — — — 4,171,193 — 68,040,859 — — — 68,040,859 — 58,499,973 — — 58,499,973 — 9,420,116 — 9,420,116 2,144,366 2,144,366 37,225,000 7,725,000 8,230,000 37,600,588 4,171,193 68,040,859 58,499,973 9,420,116 2,144,366 254,377,095 208 221 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2014 December 31, 2022 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 Requirements Interest Due On Year Principal Interest Totals Jun.l Amount Dec.l Amount 2023 $ 1,265,000 37,950 1,302,950 2023 18,975 2023 18,975 209 222 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Refunding Bonds of 2016A December 31, 2022 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 Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 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 1,070,700 9,930,700 535,350 535,350 210 223 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2017 December 31, 2022 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 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 8,745,000 2,592,272 11,337,272 4,520,000 Governmental Activities 4,225,000 Business -Type Activities 8,745,000 1,296,136 1,296,136 211 224 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2018A December 31, 2022 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 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 10,860,000 3,647,750 14,507,750 6,675,000 Governmental Activities 4,185,000 Business -Type Activities 10,860,000 1,823,875 1,823,875 212 225 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2018B December 31, 2022 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 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 37,225,000 21,844,738 59,069,738 10,922,370 10,922,368 213 226 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2019A December 31, 2022 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 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 9,035,000 3,006,050 12,041,050 1,503,025 1,503,025 214 227 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2019B December 31, 2022 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 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 2,620,800 10,345,800 1,310,400 1,310,400 215 228 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Bonds of 2022A December 31, 2022 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rates Interest Dates Principal Maturity Date Payable at February 8, 2022 December 1, 2041 $8,935,000 $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.I Amount Dec.I Amount 2023 $ 215,000 316,550 531,550 2023 158,275 2023 158,275 2024 235,000 305,800 540,800 2024 152,900 2024 152,900 2025 255,000 294,050 549,050 2025 147,025 2025 147,025 2026 280,000 281,300 561,300 2026 140,650 2026 140,650 2027 305,000 267,300 572,300 2027 133,650 2027 133,650 2028 335,000 252,050 587,050 2028 126,025 2028 126,025 2029 360,000 235,300 595,300 2029 117,650 2029 117,650 2030 390,000 217,300 607,300 2030 108,650 2030 108,650 2031 425,000 197,800 622,800 2031 98,900 2031 98,900 2032 455,000 176,550 631,550 2032 88,275 2032 88,275 2033 480,000 162,900 642,900 2033 81,450 2033 81,450 2034 510,000 148,500 658,500 2034 74,250 2034 74,250 2035 540,000 133,200 673,200 2035 66,600 2035 66,600 2036 570,000 117,000 687,000 2036 58,500 2036 58,500 2037 600,000 99,900 699,900 2037 49,950 2037 49,950 2038 630,000 81,900 711,900 2038 40,950 2038 40,950 2039 665,000 63,000 728,000 2039 31,500 2039 31,500 2040 700,000 43,050 743,050 2040 21,525 2040 21,525 2041 735,000 22,050 757,050 2041 11,025 2041 11,025 8,685,000 3,415,500 12,100,500 1,707,750 1,707,750 216 229 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements General Obligation Refunding Bonds of 2022B December 31, 2022 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at September 7, 2022 December 1, 2033 $8,230,000 $5,000 2.80% June 1 and December 1 December 1 PNC Bank CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Interest Due On Year Principal Interest Totals Jun.I Amount Dec.I Amount 2023 $ 650,000 230,440 880,440 2023 115,220 2023 115,220 2024 670,000 212,240 882,240 2024 106,120 2024 106,120 2025 685,000 193,480 878,480 2025 96,740 2025 96,740 2026 705,000 174,300 879,300 2026 87,150 2026 87,150 2027 725,000 154,560 879,560 2027 77,280 2027 77,280 2028 745,000 134,260 879,260 2028 67,130 2028 67,130 2029 765,000 113,400 878,400 2029 56,700 2029 56,700 2030 790,000 91,980 881,980 2030 45,990 2030 45,990 2031 810,000 69,860 879,860 2031 34,930 2031 34,930 2032 830,000 47,180 877,180 2032 23,590 2032 23,590 2033 855,000 23,940 878,940 2033 11,970 2033 11,970 8,230,000 1,445,640 9,675,640 722,820 722,820 217 230 STATISTICAL SECTION (Unaudited) This part of the annual comprehensive 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 perforans. 218 231 VILLAGE OF MOUNT PROSPECT, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2022 (Unaudited) See Following Page 219 232 VILLAGE OF MOUNT PROSPECT, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2022 (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 2013 2014(l) 2015 (2) $ 48,152,760 46,326,047 43,755,661 3,045,922 4,186,505 5,319,794 24,153,907 (10,441,020) (99,563,419) 75,352,589 40,071,532 (50,487,964) 26,352,289 26,854,967 36,336,899 8,057,996 7,734,851 5,580,049 34,410,285 34,589,818 41,916,948 74,505,049 73,181,014 80,092,560 3,045,922 4,186,505 5,319,794 32,211,903 (2,706,169) (93,983,370) 109,762,874 74,661,350 (8,571,016) (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 220 233 2016 2017 2018(3) 2019 2020 2021 2022 33,224,875 34,171,129 30,192,091 31,568,036 26,448,689 38,294,932 42,417,521 4,557,424 4,104,560 7,065,413 8,691,355 5,811,511 7,199,628 8,842,728 (91,778,462) (95,150,426) (107,779,949) (107,707,787) (90,600,371) (75,314,733) (62,385,336) (53,996,163) (56,874,737) (70,522,445) (67,448,396) (58,340,171) (29,820,173) (11,125,087) 36,588,628 35,765,755 32,472,358 33,196,889 20,547,932 29,676,988 28,959,971 4,610,400 6,266,907 8,411,004 5,924,760 17,346,891 15,780,856 21,248,084 41,199,028 42,032,662 40,883,362 39,121,649 37,894,823 45,457,844 50,208,055 69,813,503 69,936,884 62,664,449 64,764,925 46,996,621 67,971,920 71,377,492 4,557,424 4,104,560 7,065,413 8,691,355 5,811,511 7,199,628 8,842,728 (87,168,062) (88,883,519) (99,368,945) (101,783,027) (73,253,480) (59,533,877) (41,137,252) (12,797,135) (14,842,075) (29,639,083) (28,326,747) (20,445,348) 15,637,671 39,082,968 221 234 M N aIn n r- O 1-e 7 C� to oc N ll 0y m O h m N t` oo v v N O oo vi M N m O M o m m O 'O In V' N lD ^lD O lD l� 00 Y Vi O m 7 V'1 al N M 4` M V 41 f� tv t` N W V h In l� M N In l� m 01 m Vl V V W V1 O 01 C V l� 4` C, m n O\ N n In N V 'n M Q\ N ti O M 01 N l� m m N V' Vl - W V1 N of W of Ic n 7 17f l� m N Ol V M V lD O N Q` x 00 lD x Vl 7 7 lD 10 O\ m lD N 7 I, _ -t a, M Vl al OG V O V1 V �n M In l� O� l0 00 �0 OC M N In N n In C� N m Ic lD V 0\ m V1 --i M O r- -- M oC i G c� N O U ,� O O C� C,' to �y l� V1 4, lD lD M O V1 O J, V1 Ol V1 In M lD t` � Vl O1 01 oL) N N M V V1 w a M MInvl O m 1p �p �p N l� N N lD vl L� C N N O N t m a o to N vl O G m N m l0 DA b W a lD IcW N m Q\ lD vi 01 Vi M oC !` In lD V O o N M V l� lD O Qv V m M V V W N lD oc o oo m In al ov N v m a, m oo m Ol oC O O Ol Vl lD V O V Vl �J Vl O D\ D\ V N 01 M O, C` NO_ l0 f. N �n Cl V1 O1 O C1 V V oo l- lD O 01 M N V1 V1 O 00 M M O M O1 M_ M W l0M m V1 V1 V1 l0 M V1 Vl 1p �0 V O L� V1 �_ 1p N V 00 G1 V1 V a l� r. W 10 eF lC M lD 00 OC 01 OC V1 N_ V lD 01 00 V lD G. M d` M 00 00 01 lD N M VT Cl Q` a 00 In N_ V in 01 C r O M OC l� N 3 N Q` lD M � In- V'1 lc � 01 N lC L- O 4` YJ M lD 1p GO IC. 7 YJ M ClV l0 M N U N i G c� N O U ,� O O C� C,' to �y ❑ bA ,L R ,+ca U 1C O U CS G i .O. ttl O� O O bA oL) w a M N n K n C n av'i c, vim- o N M N 00 00 eF � � d• O M N M �D M O a O O V1 M ^ 7 O M �O d• -� � r. N m a O N m a N oo d• N O O\ M V1 N 'T V1 N N a �O [� [� .� d• V ''7 a a O a M N t (� h � �n O d• V� V� N �C O N N d• -� [� d• M � � a M V1 V V1 Vl -- NCV M a d' N a N M lr lO l- ti N O M d• r �^ .-. M a m a 7 �D --� N V] d• d' Vi �O lC Vj Vl N d' - N m V1 M M V1 O a 00 ,z, N d' m l- 0o co l- m N ti l0 a O N M m N V V d' O 00 N V rC a r) Q< r O D1 Vl -- lO l� O 00 N " O Wr- M M a M l- M M O a M n M V d 1 n M C 7 d• a M N N a d• V) M d• V1 n N a �Ci M vl a a oG O Il�oll�� C �D N o v o K ti O r^, aCl d• d• � c N p OC O CC 1� Vl � r N Il�oll�� C �D N 00 N r ti O M r aCl d• r N OC O CC 1� Vl O O 7 V O N f. a V) d- a V d- O M a GO C M f� �n -- m O l 1 1p V1 S � co M N M N N O aCl � n L � G O . O CO M G G O Ip l� w a z z a v � Z v v � r z v v r u F7 N u Q C7 v N y y F u d° C u u C7 a a w A c v. F..i a ' y '� n hOq �c3 O. V y-- O "�' -) O dj O❑ N w Y 'cQ .� h N a>> N O i OR O ."-'i U v t6 L.Y O F O F O F co M N M N N VILLAGE OF MOUNT PROSPECT, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2022 (Unaudited) General Fund Nonspendable Committed Assigned Unassigned Total General Fund All Other Governmental Funds Nonspendable Restricted Committed Assigned Unassigned Total All Other Governmental Funds Total Fund Balances Data Source: Audited Financial Statements *Modified Accrual Basis of Accounting 2013 2014 2015 $ 297,762 11,580,820 337,165 12,508,457 204,023 17,016,920 11,878,582 12,845,622 17,220,943 132,464 147,412 107,609 3,166,583 13,941,797 5,212,985 15,705,506 7,371,630 3,679,129 (689) (789) (448,034) 19,003,864 21,460,050 8,551,689 30,882,446 34,305,672 25,772,632 224 237 2016 2017 2018 2019 2020 2021 2022 188,247 261,219 220,065 370,162 381,902 342,372 407,655 - - - 3,393,000 2,300,000 - - 3,700,000 7,250,000 18,496,104 19,137,752 22,837,502 22,914,986 23,492,469 30,752,940 40,587,665 18,684,351 19,398,971 23,057,567 26,678,148 26,174,371 34,795,312 48,245,320 96,771 83,232 74,703 100,288 108,495 79,781 100,675 4,557,424 8,919,560 39,339,578 28,845,580 6,071,511 7,448,334 9,073,560 934,034 1,012,349 1,289,792 3,224,446 3,579,214 7,182,152 7,245,942 7,150,936 8,157,144 14,469,146 (688,716) - - - - 8,120 - 7,189,925 12,582,006 46,596,433 36,191,810 14,264,976 16,705,728 24,933,173 25,874,276 31,980,977 69,654,000 62,869,958 40,439,347 51,501,040 73,178,493 225 238 VILLAGE OF MOUNT PROSPECT, ILLINOIS Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years* December 31, 2022 (Unaudited) Revenues Taxes Intergovernmental Licenses, Permits, and Fees Charges for Services Fines and Forfeitures Investment Income (Loss) 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 2013 2014 2015 29,233,562 30,706,685 30,350,270 $ 31,088,445 32,564,624 33,433,891 21,103,909 23,914,974 26,018,173 3,589,368 3,516,082 3,915,635 4,408,987 5,220,730 5,664,398 430,960 587,966 511,536 16,751 (46,495) 24,784 1,167,196 983,623 656,877 61,805,616 66,741,504 70,225,294 7,452,147 7,050,018 7,598,649 29,233,562 30,706,685 30,350,270 9,094,846 8,291,698 7,744,122 4,457,548 4,590,027 4,589,156 1,868,952 1,865,265 1,961,516 435,931 421,517 467,611 8,588,414 12,075,460 20,998,508 1,537,312 913,882 2,987,587 1,914,718 3,048,912 1,799,590 63,582,594 69,902,975 78,558,334 (1,776,978) (3,161,471) (8,333,040) 9,800,000 6,290,000 — 294,697 239,977 — (239,977) — 81,599 (281,599) 9,800,000 6,584,697 (200,000) 8,023,022 3,423,226 (8,533,040) 4.01% 7.02% 6.20% 226 239 2016 2017 2018 2019 2020 2021 2022 34,113,260 31,784,137 33,080,547 32,718,562 31,600,945 34,781,161 35,967,861 27,434,551 29,199,312 32,811,854 34,650,218 36,297,359 46,969,768 49,245,896 4,001,458 3,982,497 4,085,141 4,249,613 3,816,507 3,913,269 3,888,922 6,347,775 5,810,731 5,834,187 6,267,680 6,785,463 7,967,914 8,930,352 414,884 415,189 403,842 286,328 242,004 445,604 313,457 76,594 196,995 675,700 1,375,199 234,783 986 841,017 35,000 19,824 112,429 31,204 383 295,525 1,896,489 549,816 592,352 1,660,393 621,494 2,089,687 1,798,702 2,755,196 72,973,338 72,001,037 78,664,093 80,200,298 81,066,748 95,877,404 101,942,701 9,435,601 10,060,904 9,566,297 9,384,171 8,044,415 8,079,371 7,190,518 32,512,612 34,279,062 36,287,527 36,783,615 37,584,244 38,791,777 39,908,856 8,148,696 8,762,136 9,658,459 10,456,537 10,576,961 12,006,572 12,959,107 4,585,572 4,500,280 4,835,310 4,849,613 4,793,171 4,985,328 5,037,865 1,994,918 1,953,055 1,798,458 1,676,723 1,824,289 2,126,344 2,030,206 499,208 585,907 572,169 388,375 166,740 306,890 303,830 10,718,553 5,786,667 15,245,784 26,616,871 33,239,574 11,101,659 5,581,945 3,243,840 3,518,904 3,671,871 3,787,500 4,015,000 4,590,000 6,054,521 2,017,192 1,378,256 2,484,885 3,409,229 3,253,348 3,123,295 3,134,366 73,156,192 70,825,171 84,120,760 97,352,634 103,497,742 85,111,236 82,201,214 (182,854) 1,175,866 (5,456,667) (17,152,336) (22,430,994) 10,766,168 19,741,487 101,643 6,106,701 37,673,023 (6,847,042) (22,430,611) 11,061,693 21,637,976 7.32% 6.99% 8.00% 9.60% 9.46% 10.72% 12.29% 227 240 646,600 383 295,525 1,990,817 17,835,000 4,815,000 45,500,000 7,725,000 8,230,000 1,022,839 115,835 1,783,506 394,075 (18,573,342) - (4,153,816) - - - (8,249,328) 1,637,926 600,000 2,354,391 3,709,981 5,188,000 4,544,819 4,613,401 (1,637,926) (600,000) (2,354,391) (2,170,362) (5,188,000) (4,544,819) (4,688,401) 284,497 4,930,835 43,129,690 10,305,294 383 295,525 1,896,489 101,643 6,106,701 37,673,023 (6,847,042) (22,430,611) 11,061,693 21,637,976 7.32% 6.99% 8.00% 9.60% 9.46% 10.72% 12.29% 227 240 VILLAGE OF MOUNT PROSPECT, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years December 31, 2022 (Unaudited) Tax Levy Residential Commercial Industrial Railroad Year Property Property Property Property 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 2020 1,341,377,216 418,382,455 230,358,924 1,224,387 2021 1,230,475,305 399,062,987 215,638,131 1,224,387 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. 228 241 Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value Estimated Actual Taxable Value as a Percentage of Actual Value $ 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% 1,991,342,982 0.978 5,974,028,946 33.333% 1,846,400,810 1.055 5,539,202,430 33.333% 229 242 M N M N o � p m 1.0 of p v-, t I a, co N co v, N v, cc rr cc t o �c V N � -� -� O p O O N N O O O O O O O � err 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 p O cc O M M c3 M x M M O co 00 M N r O co M It M O N of of O Vi �t p O O N N vl V O O M O O O O O O O O O V'1 O O O M V : O l- v1 N O O O O O O O O O O O O O O O O O O O O Cl Cl O N O O O N O p� Cl N O 1 x x o� D1 7 V) O M of vl D1 oc vl M M x_ M O O oc O �Y M 7 O_ �c M O [- Le)O O -� h vl p O a� O N N Ol Vl V O O M O O O O O O O O O O M, V V O o N O O p p O O O O O O O O O O Cl p p O O O O O O N O O O N O C7 O 00 O � N N N N \D a1 CO O O O \O ID N a M 7 O O 7 O h M p V O O M O O O O O O O O O O N p p p p O O O O O O O p O p p p O O O O O O N O O p M p O O O O N O N O CO � M, N D N O Vl D Vl O MM_ 7 --� N o\ O lC l- V1 Vl O_ M Vl N Q\ W --� o1 M 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 O O O M O O 7 O l� N V'1 cC M, O �✓ OV O_ 7 N oc O If. V'1 N CO a Q\ p O O N M M �G Vl O O V O O O O O O O O O Vl V V _ 0 N O It a1 IO �c x �t �n h --� O_ co �n O _ --� �D ID p O O N M M M oo V1 O O V O O O O O O O O O oo V \O N ID 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 ,It Cl W o` O Cl Irl W oc O O Ic Q` N Ln D` N O_ W N 41 M_ I.D vl M Cc M \o It r V1 p N O O O O O O O O Cl Cl O O O O O O Cl Cl O O O O N Cl Cl O M O a N O O O O --i 6� l� O D` O_ a1 M_ oc 't M p N p O p p O O O p p p p p O p p p Cl Cl O O O O N p p p M O ;-, m O O M lD O l� ID ID � N V'1 �_ M N Q` O � O` N M r- Vl N M p Vl O O O �D vl O O M O O O O O O O O O O M M vl �D Vl 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 N O M N M N V N � O � err O V 13 U c3 C U 7fi:d �tb �°u 34 1 ' ,a v Ca a Q a o a� a° o o v o 'a `° y w' �. o a o 3 3 3 a a a C �cbn ° 15, o U o oo 0.1 C,7 a W W a F" U U w H H H C7 C7 C7 ao C4 � z U > i O M N M N Iq IV N N o hOA m C,� Or- ;ii h N Vl �D I- O Vl O N ?O , n O O O CO f� v cf m E- O a N N m o Vl o p wl wl In h r- \D CO M M Ic V O O O O> O 7 Cl m M N N N ON 01 l0 7 G1 \O � N x O O N O M ✓� M Cl M V O O O N O M O �Y 01 N m O �n cC a\ N O Vi ID M � N ID, p O Go rt V vi �D O •--i O l� ct V v Ql V O M O\ Cv r- N DA �n AO O 3 p v M a\ Cl Ic l- 't l- -,Ic 01 N O N 't \O D v) V1 0 o O 0 V x N V p N oc l� lD x t l- N r It x N N O m O` N W N of N N O_ O1 m W M c> O M p oc l� V of V1 l0 I- 1 l- M ID m I -D v) m N MIt Q, m •--i W lc 4 N lO Vl c N ^O'At56 N M r M N 1-0 � Vl V M O IZ O` O 't mm C` Vl N Ol N O V M_ m N M M O M O M V O O --� O N O M x y wl wl In x 3 Q 79 At CC 0 Q O w t I 4 4t 4t Q `� ^O'At56 °Fs O bfi Cr CU O by c°J N W O O N O f1j O O 0.'' R� Ar J7. O > o•v y o x o cu OF" o 3 w° o unun cG cry a vn Ln Q a w c". x U v� r F• v Q z VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2022 (Unaudited) Taxpayer Taxable Assessed Value 2022* Rank Percentage of Total Village Taxable Assessed Value Taxable Assessed Value 2013 Rank Percentage of Total Village Taxable Assessed Value United Airlines, Inc. $ 36,271,916 1 1.96% Randhurst Casto Conger 36,211,484 2 1.96% $ 21,120,282 2 1.56 % Home Properties Colony 31,824,683 3 1.72% 10,287,164 4 0.76% CRP 3 West Central LLC 24,683,161 4 1.34% 9,899,919 5 0.73 % 1450 Owner LLC 19,893,404 5 1.08 % Mount Prospect Plaza 17,108,409 6 0.93 % LIT Industrial Limited 9,770,839 7 0.53 % 7,501,215 6 0.55 % Golf Plaza I1 9,758,775 8 0.53 % Menards - Properties 9,275,572 9 0.50% Costco 9,174,629 10 0.50% 7,117,196 8 0.52% Ramco Gershenson Prop 21,401,661 1 1.58 % Golf Plaza I & 11 13,485,708 3 0.99 % First Industrial 7,474,259 7 0.55 % Cummings Allison Corp 7,044,662 9 0.52% Kensington Business Center Holdings -1, LLC 7,022,165 10 0.52% Totals 203,972,872 Data Source: Office of the Cook County Clerk 11.05 % 112,354,231 8.28 % 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 2022 for 2021 Tax Year. 232 245 VILLAGE OF MOUNT PROSPECT, ILLINOIS Property Tax Levies and Collections - Last Ten Fiscal Years December 31, 2022 (Unaudited) Data Source: Office of the County Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value 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. 233 246 Taxes Collected within the Collections Tax Levied for Fiscal Year of the Levy in Total Collections to Date Fiscal Levy the Fiscal Percentage Subsequent Percentage Year Year Year Amount of Levy Years Amount of Levy 2013 2012 $ 16,477,871 $ 16,278,228 98.79% $ (122,544) $ 16,155,684 98.04% 2014 2013 17,301,436 17,064,355 98.63% (83,312) 16,981,043 98.15% 2015 2014 17,730,922 17,521,845 98.82% (132,047) 17,389,798 98.08% 2016 2015 18,312,756 18,130,372 99.00% (225,057) 17,905,315 97.78% 2017 2016 18,727,305 18,534,114 98.97% (241,785) 18,292,329 97.68% 2018 2017 19,087,264 18,865,586 98.84% (234,333) 18,631,253 97.61% 2019 2018 19,087,266 18,710,515 98.03% (187,176) 18,523,339 97.05% 2020 2019 19,469,004 19,187,932 98.56% 55,340 19,243,272 98.84% 2021 2020 19,469,002 19,207,967 98.66% 77,564 19,285,531 99.06% 2022 2021 19,469,003 19,181,887 98.53% — 19,181,887 98.53% Data Source: Office of the County Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value 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. 233 246 VILLAGE OF MOUNT PROSPECT, ILLINOIS Sales Taxes by Category - Last Ten Fiscal Years December 31, 2022 (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 2013 2014 2015 $ 1,171,771 1,135,237 1,112,640 876,288 891,855 949,277 764,653 778,314 825,994 149,317 163,857 162,116 240,289 221,977 220,663 750,191 756,113 791,285 1,508,700 1,578,004 1,540,910 4,081,740 4,574,353 5,460,292 2,616,771 2,802,361 3,629,675 182,433 383,370 433,798 12,342,153 13,285,441 15,126,650 1.00% 1.00% 1.00% 883 899 997 Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Excludes Home Rules Tax portion. 234 247 2016 2017 2018 2019 2020 2021 2022 1,114,510 1,082,424 1,086,859 992,680 863,330 955,318 992,430 951,863 877,665 856,379 884,898 985,767 985,071 1,142,947 884,477 879,654 937,398 997,318 870,374 1,035,832 1,182,293 163,438 157,352 140,366 172,171 145,070 220,190 207,198 209,712 202,302 210,670 197,569 160,490 193,957 296,442 821,872 846,376 913,446 965,237 1,095,425 1,151,396 1,185,052 1,492,452 1,676,338 1,816,029 1,942,864 1,951,579 2,276,879 2,509,920 6,594,754 8,965,486 13,018,288 13,336,938 14,089,151 18,596,444 19,688,632 3,611,295 3,649,578 3,751,156 3,788,000 1,629,707 3,653,554 3,715,106 500,200 184,759 95,752 101,939 131,654 200,527 155,768 16,344,573 18,521,934 22,826,343 23,379,614 21,922,547 29,269,168 31,075,788 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 987 1,102 1,078 1,040 987 3,616 4,914 235 248 VILLAGE OF MOUNT PROSPECT, ILLINOIS Business District Sales Taxes by Category - Last Ten Fiscal Years December 31, 2022 (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 2013 2014 2015 $ 88,289 85,937 84,364 19,146 20,989 20,747 40,954 48,185 51,419 15,594 19,302 19,963 17,106 16,461 16,088 101,338 104,434 107,339 29,896 32,071 37,063 5,203 4,554 5,057 317,526 331,933 342,040 0.25% 0.25% 0.25% Data available for calendar year only. The fiscal year of the Village is the same as the calendar year. Note: Amount reported net of IDOR 2% compliance administration and enforcement charge. 236 249 2016 2017 2018 2019 2020 2021 2022 82,142 76,426 62,848 28,214 19,626 23,759 24,910 21,846 20,186 20,417 18,526 21,501 25,736 23,049 54,393 51,629 50,063 53,476 36,543 40,161 42,631 21,716 20,126 18,060 22,600 12,802 16,484 16,453 15,551 14,438 12,976 12,336 3,661 2,308 14,906 108,480 109,058 112,957 115,524 126,618 139,161 137,256 16 53 31,889 25,843 31,732 29,430 26,739 38,231 42,507 5,323 5,230 6,372 7,101 2,566 4,941 5,849 80 119 341,340 322,936 315,425 287,207 250,056 290,877 307,733 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 237 250 VILLAGE OF MOUNT PROSPECT, ILLINOIS Home Rule Sales Taxes by Category - Last Ten Fiscal Years December 31, 2022 (Unaudited) Total Number of Taxpayers Village Home Rule Sales Tax Rate Data Source: Illinois Department of Revenue 5,138,635 5,395,213 5,447,220 883 889 997 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. 238 251 2013* 2014* 2015* General Merchandise $ 885,410 864,254 861,799 Food 240,013 234,082 249,683 Drinking and Eating Places 754,898 766,264 808,304 Apparel 148,991 163,487 161,630 Furniture and H.H. and Radio 235,936 218,184 217,031 Lumber, Building Hardware 743,492 752,301 787,000 Automobile and Filling Stations 948,339 956,255 893,301 Drugs and Miscellaneous Retail 509,608 508,772 488,963 Agriculture and All Others 492,238 550,929 548,380 Manufacturers 179,710 380,685 431,129 Total Number of Taxpayers Village Home Rule Sales Tax Rate Data Source: Illinois Department of Revenue 5,138,635 5,395,213 5,447,220 883 889 997 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. 238 251 2016* 2017** 2018** 2019** 2020** 2021** 2022** 858,739 822,252 806,891 675,585 577,971 678,058 669,247 246,759 231,474 238,527 249,420 268,755 306,796 331,838 862,052 831,312 852,731 913,754 764,116 932,604 1,058,134 162,986 154,603 137,624 169,062 142,434 216,205 203,245 206,542 196,588 204,642 192,307 157,506 190,925 290,069 817,396 828,391 891,206 942,053 1,068,094 1,125,051 1,155,838 831,269 937,688 1,029,522 1,031,563 924,782 1,172,730 1,346,105 439,702 473,116 517,588 533,057 754,906 1,148,222 1,223,910 623,624 702,386 667,655 611,860 528,437 722,886 803,621 497,623 179,655 91,683 97,836 126,659 194,381 150,434 5,546,692 5,357,465 5,438,069 5,416,497 5,313,660 6,687,858 7,232,441 987 1,102 1,078 1,040 987 3,616 4,914 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 239 252 VILLAGE OF MOUNT PROSPECT, ILLINOIS Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years December 31, 2022 (Unaudited) Fiscal Year State Tax County Rate Regional Transportation Authority Village Direct Rate Total 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% 2021 5.00% 2.00% 1.00% 1.00% 10.00% 2022 5.00% 2.00% 1.00% 1.00% 10.00% Data Source: State of Tllinois Note: Business district is assessed additional 0.25% sales tax. 240 253 VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2022 (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. 241 254 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) 2013 $ 31,645,000 $ 1,139,512 $ 2,475,000 $ 30,451,305 $ —S 65,710,817 3.65%S 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 33,192,363 9,827,936 129,405,797 7.19% 2,389 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 2021 81,283,168 36,730,522 18,644,921 136,658,611 5.94% 2,404 2022 76,644,366 37,600,588 27,881,659 142,126,613 5.76% 2,500 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. 241 254 VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years December 31, 2022 (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) 2013 $ 31,645,000 $ 121,491 $ 31,523,509 0.67% $ 582 2014 48,433,628 131,635 48,301,993 1.19% 892 2015 45,927,931 154,206 45,773,725 1.10% 845 2016 43,905,073 168,152 43,736,921 1.08% 807 2017 50,848,807 184,195 50,664,612 1.04% 935 2018 95,565,934 2,546,115 93,019,819 1.86% 1,717 2019 110,043,658 1,850,968 108,192,690 2.16% 1,997 2020 105,353,468 1,261,124 104,092,344 1.76% 1,906 2021 99,928,089 1,533,779 98,394,310 1.65% 1,731 2022 104,526,025 864,746 103,661,279 1.87% 1,823 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. 242 255 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Direct and Overlapping Governmental Activities Debt December 31, 2022 (Unaudited) Governmental Unit (1) Gross Debt (2) Percentage Debt Applicable to the Village of Mount Prospect (3) Village Share of Debt Village of Mount Prospect $ 114,244,954 100.00% $ 114,244,954 County of Cook 2,425,146,750 1.05% 25,561,047 Forest Preserve District of Cook County 119,775,000 1.05% 1,262,429 Metropolitan Water Reclamation District 1,813,330,000 1.07% 19,420,764 Community College District #535 45,110,000 0.02% 7,669 Community College District 9512 243,530,000 9.83% 23,934,128 School District #214 25,000,000 19.48% 4,870,250 School District #207 167,610,000 0.08% 137,440 School District#57 5,470,000 94.23% 5,154,436 School District #26 11,765,000 78.70% 9,258,467 School District #25 37,700,000 2.55% 961,727 School District #23 10,500,000 7.82% 820,575 School District #21 84,350,000 2.84% 2,393,853 School District #59 25,185,000 18.35% 4,620,188 Arlington Heights Park District 10,369,000 1.93% 200,536 Des Plaines Park District 7,439,605 1.61% 119,778 Mount Prospect Park District 17,081,090 68.92% 11,772,116 Total Overlapping Debt 5,049,361,445 110,495,403 Total Direct and Overlapping Debt 5,163,606,399 224,740,357 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 ACFR'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 2020 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). 243 256 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Legal Debt Margin December 31, 2022 (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. 244 257 VILLAGE OF MOUNT PROSPECT, ILLINOIS Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2022 (Unaudited) Fiscal Year (1) Population (2) Equalized Assessed Value Personal Income (1) Per Capita Personal Income (3) Unemployment Rate 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 1,619,158,852 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 1,991,342,982 2,174,658,904 39,826 6.60% 2021 56,852 1,846,400,810 2,299,777,104 40,452 5.00% 2022 56,852 N/A 2,466,751,428 43,389 3.50% 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 245 258 VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2022 (Unaudited) 2022 2013 Percentage Percentage of Total of Total Village Village Employer Employees Rank Employment Employees Rank Employment CVS Caremark 1,475 1 2.59% 1,240 1 2.29% Robert Bosch Tool Corporation 650 2 1.14% 650 2 1.20% Cummins -Allison 391 3 0.69% 475 3 0.88% Mount Prospect School District 57 323 4 0.57% 271 6 0.50% Village of Mount Prospect 308 5 0.54% 306 4 0.56% Township High School District 214 300 6 0.53% 225 10 0.42% Rauland Borg 300 7 0.53% 300 5 0.55% Home Depot #1913 287 8 0.50% Wal-Mart Supercenter #1681 269 9 0.47% Costco 245 10 0.43% Comcast 250 7 0.46% Carson Pirie Scott 246 8 0.45% Jewel Food Stores Inc. 240 9 0.44% 4,548 7.99% 4,203 7.75% Data Sources: Village Records 246 259 VILLAGE OF MOUNT PROSPECT, ILLINOIS Full -Time and Part -Time Employees by Function/Program - Last Ten Fiscal Years December 31, 2022 (Unaudited) See Following Page 247 260 VILLAGE OF MOUNT PROSPECT, ILLINOIS Full -Time Equivalent Employees by Function/Program - Last Ten Fiscal Years December 31, 2022 (Unaudited) Function/Program 2013 2014 2015 Public Representation/Community and Civic Services 2.10 2.05 2.15 General Government Village Administration Administration 15.45 15.45 16.85 Finance 13.00 13.00 13.00 Total 28.45 28.45 29.85 Community Development Community Development 18.50 18.50 18.50 Community Development/CDBG 1.00 1.00 1.00 Total 19.50 19.50 19.50 Human Services Department 9.50 9.50 9.50 Public Safety and Protection Police Department 100.50 100.50 99.50 Fire Department 74.50 74.50 75.00 Total 175.00 175.00 174.50 Public Works Department Administration 2.85 2.85 2.85 Streets/Buildings/Parking 12.45 12.40 12.40 Forestry 9.25 9.35 9.25 Engineering 8.00 8.00 8.00 Water/Sewer 24.75 24.75 24.75 Refuse Disposal 2.90 2.90 2.90 Parking 0.90 0.90 0.90 Vehicle Maintenance 10.75 10.75 10.75 Total 71.85 71.90 71.80 Village Total 306.40 306.40 307.30 Data Source: Village Budget 248 261 16.75 13.00 17.35 13.00 15.85 13.50 15.50 13.50 16.00 14.00 16.00 13.00 15.50 13.00 2016 2017 2018 2019 2020 2021 2022 18.75 0.75 18.75 0.75 21.00 21.25 21.25 20.75 20.75 2.20 2.10 2.05 0.80 0.80 0.70 0.70 16.75 13.00 17.35 13.00 15.85 13.50 15.50 13.50 16.00 14.00 16.00 13.00 15.50 13.00 29.75 30.35 29.35 29.00 30.00 29.00 28.50 18.75 0.75 18.75 0.75 21.00 21.25 21.25 20.75 20.75 19.50 19.50 21.00 21.25 21.25 20.75 20.75 9.50 9.55 10.55 9.55 9.55 9.55 11.05 101.50 81.00 102.50 81.00 103.00 81.00 104.00 80.75 105.50 80.75 105.50 80.75 104.50 86.79 182.50 183.50 184.00 184.75 186.25 186.25 191.29 3.85 3.35 4.75 5.10 5.10 5.10 5.10 12.35 12.35 14.20 16.05 16.30 16.00 16.00 8.35 8.35 8.35 9.55 9.55 9.55 9.55 8.00 8.00 7.90 8.40 8.40 8.40 8.40 2.90 25.25 25.75 23.30 23.30 23.30 23.85 24.75 2.90 0.90 0.90 10.75 10.75 10.75 9.60 10.10 9.65 9.65 71.85 71.85 71.70 72.00 72.75 72.00 72.55 315.30 316.85 318.65 317.35 320.60 318.25 324.84 249 262 VILLAGE OF MOUNT PROSPECT, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2022 (Unaudited) Function/Program 2013 2014 2015 Finance Department Vehicle Stickers Issued 43,490 42,789 41,964 Utility Bills 152,312 152,649 152,703 Real Estate Transfer Tax Stamps Sold 1,451 1,426 1,433 Community Development Building Division Permits Issued 2,383 2,653 2,490 Plan Reviews 524 471 536 Building Code Inspections 7,824 10,952 10,590 Environmental Health Division Inspections Food Service 393 434 409 Multi -family Buildings 568 1,068 1,043 Public Safety Police Number of Crimes 2,809 2,480 2,399 Number of Service Calls 19,206 18,594 18,906 Number of Arrests 1,509 1,307 1,178 Moving Violations 6,152 4,928 4,839 Parking Citations 7,314 7,671 7,166 Fire Fire Calls 1,967 1,926 1,883 EMS Calls 3,912 3,985 4,061 Fire Prevention Inspections 3,144 3,047 2,700 Training Hours 21,149 24,033 25,990 Public Works Streets Street Resurfacing (Miles) 7.50 18.80 9.80 Crack Filling (Lbs) 49,153 59,568 51,412 Leaves Removed (Tons) 2,070 2,081 1,988 Water Water Mains Installed (Lineal Feet) 1,990 Water Billed (1,000 Gallons) 1,284,779 1,301,528 1,204,478 Sanitary Sewers Cleaned (Ft) 65,000 90,000 120,000 Refuse (Single/Multi-Family) Solid Waste Collected (Tons) 29,494 30,320 30,605 Recycling (Tons) 5,692 5,498 5,369 Data Source: Various Village Departments * Numbers affected by COVID-19. 250 263 2016 2017 2018 2019 2020 2021 2022 41,323 40,638 39,214 37,945 35,337 35,687 33,000 152,872 152,689 152,689 149,186 149,305 152,408 153,437 1,541 1,472 1,473 1,455 1,485 1,596 1,477 2,500 2,375 2,562 2,502 2,500 2,935 2,454 513 425 465 575 600 636 992 9,535 9,640 9,320 9,100 9,000 10,480 7,336 405 400 359 406 432 1,216 447 1,000 1,000 1,025 1,015 1,000 902 1,303 2,235 2,387 2,335 2,392 2,102 1,645 1,694 18,232 18,393 18,339 18,483 15,650 22,138 16,186 1,083 1,102 1,019 1,113 919 628 785 4,137 3,842 3,440 3,404 2,501 2,087 2,958 5,637 8,179 5,564 4,366 3,692 6,691 4,289 1,889 1,816 1,884 1,855 1,793 1,767 2,037 4,032 4,105 4,195 4,598 4,069 4,734 4,986 3,800 2,075 2,600 3,000 1,500 * 1,956 2,530 29,024 31,626 31,651 31,258 24,221 * 29,587 31,440 6.30 7.00 7.00 6.80 7.10 7.73 8.55 53,623 51,412 54,000 54,000 54,000 55,371 52,251 1,676 1,848 1,856 1,853 1,889 1,100 1,941 600 1,990 3,900 4,510 5,326 6,513 6,785 1,224,661 1,208,079 1,179,096 1,183,694 1,219,545 1,259,250 1,259,369 75,000 100,000 75,000 60,000 60,000 52,000 48,000 26,574 29,613 28,235 28,854 28,776 28,704 20,488 5,355 5,492 5,086 4,672 4,859 4,486 4,398 251 264 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Asset Statistics by Function/Program - Last Ten Fiscal Years December 31, 2022 (Unaudited) Function/Program 2013 2014 2015 Public Safety Police Stations Patrol Units Fire Fire Stations Fire Engines/Vehicles 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 1 1 1 33 32 32 3 3 3 23 23 22 135 134 134 161 160 160 2,274 2,242 2,240 8.8M 8.8M 8.8M 71 71 71 135 135 108 54 54 54 252 265 2016 2017 2018 2019 2020 2021 2022 1 1 1 1 1 1 1 30 31 31 30 30 30 32 3 3 3 3 3 3 3 21 21 21 22 22 22 24 135 135 135 135 135 136 136 160 160 160 160 160 160 160 2,243 2,246 2,246 2,246 2,246 2,246 2,246 8.8M 8.8M 8.8M 8.8M 8.8M 8.8M 8.8M 72 72 72 72 72 72 72 108 110 110 110 110 110 110 55 55 55 55 55 55 55 253 266 ADDITIONAL DISCLOSURES REQUIRED BY SEC RULE 15C2-12 254 267 VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS FINANCIAL INFORMATION STATEMENT OF INDEBTEDNESS Assessed Valuation of Taxable Real Property, 2021 Estimated True Value of Taxable Real Property, 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 2020 Census December 31, 2022 Value True Value 56,852 1,846,400,810 100.00% 33.33% 32,477.32 5,539,202,430 300.00% 100.00% 97,431.97 $47,350,000 2.56% 0.85% $ 832.86 94,776,613 5.13% 1.71% 1,667.08 $142,126,613 7.70% 2.57% $ 2,499.94 $52,158,733 2.82% 0.94% $ 917.45 58,336,670 3.16% 1.05% 1,026.11 $110,495,403 5.98% 1.99% S 1,943.56 $252,622,016 13.68% 4.56% S4,443.50 $157,845,403 8.55°/, 2.85°/, $ 2,776.43 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, 2022". RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December 31, 2022) Principal Maturities Due Source of Payments Total Maturities Debt Service Tax Levies Calendar Property Annual Cumulative Levy Property Date Taxes Amount Percent Year Taxes 2023 3,875,000 3,875,000 3.9% 2022 3,652,500 2024 4,085,000 4,085,000 7.9% 2023 3,649,100 2025 4,315,000 4,315,000 12.2% 2024 3,643,800 2026 4,565,000 4,565,000 16.7% 2025 3,643,850 2027 4,795,000 4,795,000 21.5% 2026 3,637,000 2028 5,05.5,000 5,055,000 26.5% 2027 3,643,400 2029 4,800,000 4,800,000 31.3% 2028 3,142,500 2030 5,185,000 5,185,000 36.4% 2029 3,235,250 2031 5,480,000 5,480,000 41.9% 2030 3,234,250 2032 5,775,000 5,775,000 47.6% 2031 3,233,750 2033 6,095,000 6,095,000 53.7% 2030 3,233,500 2034 5,540,000 5,540,000 59.2% 2031 3,233,250 2035 5,830,000 5,830,000 65.0% 2034 3,238,138 2036 6,120,000 6,120,000 71.1% 2035 3,237,075 2037 6,425,000 6,425,000 77.5% 2036 3,237,825 2038 4,650,000 4,650,000 82.1% 2037 3,235,200 2039 4,865,000 4,865,000 86.9% 2038 3,236,000 2040 3,465,000 3,465,000 90.4% 2039 3,234,600 2041 3,610,000 3,610,000 93.9% 2040 3,234,000 2042 2,990,000 2,990,000 96.9% 2041 3,234,000 2043 3,110,000 3,110,000 100.0% 2042 3,234,400 $100,630,000 $100,630,000 255 268 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 2006-2022 (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 in 2010-2019 and 56,852 beginning in 2020. 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 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 6.87% 2.56% 12.69% 8.38% 4,444.69 2,935.89 November 25, 2019 7,725,000 6.87% 2.56% 12.69% 8.38% 4,444.69 2,935.89 February 8, 2022 8,935,000 7.70% 2.56% 13.68% 8.55% 4,443.50 2,776.43 September 7, 2022 8,230,000 7.70% 2.56% 13.68% 8.55% 4,443.50 2,776.43 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 in 2010-2019 and 56,852 beginning in 2020. 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 2,279,575 1,672,353,246 0.1% 2019 1,962,779,503 8,527,837 1,971,307,340 17.9% 2020 1,977,147,038 14,195,944 1,991,342,982 1.0% 2021 1,834,713,374 11,687,436 1,846,400,810 (7.3%) 256 269 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 17.9 percent compared to the prior year. Due to changes in the equalization factor for the tax year 2021, the Equalized Assessed Value decreased by 7.3 percent. The equalization factor decreased by 15.32 percent, from 3.2234 to 3.0027. 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-TTF purposes is shown in this table as "Net for General Taxing Purposes". DETAILED OVERLAPPING BONDED INDEBTEDNESS PAYABLE FROM PROPERTY TAXES AT DECEMBER 31, 2022 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 2020 of Gross Debt to be Real Property Gross Paid From Property Taxes (1) in Taxing Body Bonded Debt Percent Amount 37.7% 5,470,000 94.231% 5,154,436 26.7% 25,185,000 18.345% 4,620,188 26.4% 11,765,000 78.695% 9,258,467 3.4% 84,350,000 2.838% 2,393,853 3.2% 37,700,000 2.551% 961,727 2.5% 10,500,000 7.815% 820,575 99.8% 25,000,000 19.481% 4,870,250 0.2% 167,610,000 0.082% 137,440 0.2% 45,110,000 0.017% 7,669 99.8% 243,530,000 9.828% 23,934,128 52,158,733 100.0% 2,544,921,750 1.054% 26,823,476 100.0% 1,813,330,000 1.071% 19,420,764 66.8% 17,081,090 68.919% 11,772,116 2.8% 10,369,000 1.934% 200,536 1.8% 7,439,605 1.610% 119,778 Total Other Than Schools 58,336,670 257 270 Notes: 1. Village's share based upon 2021 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 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 2017 2018 2019 2020 2021 $ 0.146 $ 0.148 $ 0.132 $ 0.138 $0.157 0.384 0.401 0.370 0.366 0.379 0.301 0.292 0.261 0.223 0.240 0.312 0.302 0.225 0.251 0.279 $ 1.143 $ 1.143 $ 0.988 $ 0.978 $1.055 0.558 0.549 0.543 0.511 0.523 0.402 0.396 0.389 0.378 0.382 0.609 0.633 0.547 0.554 0.617 0.681 0.696 0.599 0.593 0.647 0.118 - - - 0.000 3.031 3.173 2.751 2.735 3.076 2.563 2.669 2.356 2.382 2.664 0.425 0.443 0.403 0.409 0.457 0.135 0.106 0.090 0.087 0.095 $ 9.665 $ 9.808 $ 8.666 $ 8.627 $9.516 11.8% 11.7% 11.4% 11.3% 11.1% Notes 1. As a home rule unit under the 1970 Illinois Constitution, the Village has no statutory tax rate or levy limitations. 2. Tax rate applicable to the largest tax code in the Village and most recent available from Cook County. TAX EXTENSIONS AND COLLECTIONS (Village Purposes Only) Levy Year Collection Year Total Taxes Extended Total Taxes Collected as of December 31, 2022 (Note 1) 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 19,469,004 19,187,932 98.56% 2020 2021 19,469,002 19,207,967 98.66% 2021 2022 19,469,002 19,181,887 98.53% 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 I 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. 258 271 TEN LARGEST TAXPAYERS Equalized Assessed Percent of Rank Taxpayer Business/Properties Valuation (1) Village (2) 1 United Airlines Inc. 2 DLC Management Corp 3 Home Properties Colony 4 CRP 3 West Center LLC 5 1450 Owner LLC 6 LBX Mount Prospect LLC 7 LIT Industrial Limited 8 CR Golf Plaza II LLC 9 Menards - Properties 10 Costco Operations Center Shopping Center Apartments Industrial Industrial Real Estate Shopping Center Industrial Shopping Center Hardware and Home Building Store Membership Warehouse Club Notes: 1. Valuations as of January 1, 2021 for 2021 tax purposes. 2. Total 2021 Village valuation is S 1,846,400,810 36,271,916 1.96% 36,211,484 1.96% 31,824,683 1.72% 24,683,161 1.34% 19,893,404 1.08% 17,108,409 0.93% 9,770,839 0.53% 9,758,775 0.53% 9,275,572 0.50% 9,174,629 0.50% 5203,972,872 11.05% 2014 AND 2021 TAX BASE DISTRIBUTION BY PROPERTY CLASSIFICATION* * A breakdown by property classification of the Village's levy year 2021 valuation is not available as of the date of this report. 259 272 Village of Mount Prospect Taxable Valuation Percent of Total Classification 2014 2021 % 2014 2021 Residential 951,752,882 1,173,683,410 23.32% 65.82% 64.01% Commercial 274,990,264 365,556,045 32.93% 19.02% 19.94% Industrial 218,579,604 293,242,038 34.16% 15.12% 15.99% Railroad 764,086 1,165,307 52.51% 0.05% 0.06% Total 1,446,086,836 1,833,646,800 26.80% 100.00% 100.00% * A breakdown by property classification of the Village's levy year 2021 valuation is not available as of the date of this report. 259 272 GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) Revenues: 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 -Administration Benefit Payments Total General Government Public Safety: Code Enforcement Police Department Fire & Emergency Protection Department Total Public Safety Highways & Streets Health Welfare Culture & Recreation Net Transfers (In)/Out Total Expenditures Revenues Over (Under) Expenditures Ending Fund Balance Actual 2022 2018 2019 2020 2021 Budget Actual $ 16,112,039 16,081,608 16,367,630 16,226,617 16,394,573 16,286,923 23,658,634 24,249,211 22,693,522 30,100,672 30,320,000 30,307,782 5,187,361 5,765,484 5,886,270 7,175,489 9,265,000 9,263,878 2,484,451 2,733,317 2,402,150 3,462,218 2,306,000 2,568,330 3,476,969 3,292,347 3,025,210 3,053,871 3,229,000 3,215,723 1,475,149 1,875,941 2,320,837 3,153,582 3,372,000 3,938,175 403,842 286,328 242,004 445,604 351,000 313,457 318,490 430,397 99,325 (3,025) 584,350 606,334 884,637 884,637 818,911 1,080,890 1,002,000 1,246,766 1,426,037 1,434,580 962,687 1,471,917 1,125,000 1,555,691 3,539,116 3,144,713 3,870,492 2,934,693 9,438,285 6,539,583 $ 58,966,725 60,178,563 58,689,038 69,102,528 77,387,208 75,842,642 159,710 113,322 120,925 166,216 221,273 152,110 3,733,109 3,662,546 3,498,838 3,689,825 4,825,144 4,252,225 2,735,100 2,781,155 1,548,016 1,515,447 1,736,056 1,624,954 1,109,904 1,129,783 1,723,458 1,063,237 1,366,677 1,085,561 5,819 5,993 6,173 6,358 6,549 6,549 7,743,642 7,692,799 6,897,410 6,441,083 8,155,699 7,121,399 854,780 962,937 1,062,597 1,094,230 1,244,855 1,126,233 18,564,213 18,975,187 19,085,680 20,023,450 20,332,237 19,942,165 15,586,449 16,188,816 17,096,913 17,616,782 18,471,869 18,751,795 35,005,442 36,126,940 37,245,190 38,734,462 40,048,961 39,820,193 7,915,559 8,674,121 8,705,967 9,370,338 9,820,987 8,807,969 306,314 195,532 132,833 166,502 170,437 128,135 1,410,612 1,372,853 1,446,675 1,422,835 2,142,018 1,562,184 572,169 388,375 166,740 306,890 392,384 303,830 2,354,391 2,107,362 4,598,000 4,000,000 7,775,000 4,688,401 55,308,129 56,557,982 59,192,815 60,442,110 68,505,486 62,432,111 3,658,596 3,620,581 (503,777) 8,660,418 8,881,722 13,410,531 $ 23,057,567 26,678,148 26,174,371 34.834,789 43,716,511 48,245,320 260 273 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 Assigned Unassigned Total Fund Balance Total Liabilities & Fund Balance Sheet - December 31 2018 2019 2020 2021 2022 $ 16,672,691 20,838,531 20,649,384 29,375,181 46,145,782 16,290,898 16,545,722 16,397,406 16,259,186 17,863,091 7,994,192 8,518,372 7,968,423 9,859,038 9,727,019 371,481 359,574 305,811 312,830 473,104 22,254 370,162 381,902 342,372 10,000 49,471 48,570 48,244 92,748 296,195 220,065 370,162 906,902 2,143,866 407,655 $ 41,621,052 46,680,931 46,276,170 58,042,849 74,922,846 $ 957,709 517,940 606,869 773,678 552,803 16,290,898 16,539,009 16,354,772 16,156,364 14,164,411 1,314,878 2,945,834 3,140,158 6,317,495 11,960,312 220,065 370,162 381,902 342,372 407,655 — 3,393,000 2,300,000 — — 3,700,000 7,250,000 22.837.502 22,914.986 23.492.469 30.752.940 40.587.665 $ 23,057,567 26,678,148 26,174.371 34,795.312 48,245.320 $ 41.621.052 46.680.931 46.276.170 58.042.849 74.922.846 Notes: 1. This condensed financial information for the years ending December 31, 2018-2022 has been excerpted from the full Annual Comprehensive 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. 261 274 COMBINED STATEMENT -ALL FUNDS (Note 1) Fund Balances 2018-2022 and Summary 2022 Revenues, Excess Revenues and Fund Balance (Fiscal Years Ended December 31) * Designated as major funds. Cash & Investments at 12/31 (6): 2018 2019 2020 2021 2022 General Fund $ 16,672,691 20,838,531 20,649384 29,375,181 46,145,782 Fiscal Year Ended December 31, 2022 11,769,387 11,707,300 13,783,192 14,008,929 13,909,933 Police & Fire Building Construction 31,708,378 17,938,945 Revenue Prospect & Main TIF 712,311 9,716,685 10,018 Revenue Incl. Transfers Over 4,792,342 5,427,444 5,825,227 6,378,108 7,404,244 Debt Service Funds Property 3,448,379 (Under) Fund Governmental Fund Types (2): 2018 2019 2020 2021 Tax Total Expenditures Balance General Fund * $ 23,057,567 26,678,148 26,174,371 34,834,789 16,160,828 75,842,134 13,410,531 48,245,320 Special Revenue Funds: Other Enterprise Funds 578,367 576,470 446,638 327,112 335,433 Pension Trust Funds 128,571,320 Motor Fuel Tax 2,431,135 2,465,613 3,789,560 4,480,280 1,115,737 3,476,164 (674,974) 3,805,306 Community Development Block Grant Total $ 218,396,440 244,797,817 234,138,993 257,995,226 468,022 Refuse Disposal 1,320,754 1,167,139 1,020,102 1,091,050 5,199,229 289,499 1,380,549 Asset Seizure 141,255 135,102 120,643 105,505 3,053 (15,124) 90,381 DEA shared Funds 20,308 50,545 51,989 57,872 414,690 414,690 472,562 DUI Fines 137,373 143,435 149,962 148,677 287 (9,767) 138,910 Foreign Fire Tax Fund 398,231 438,552 413,755 478,814 120,884 64452 543,261 Rosiness District Fund 1,718,125 Police & Fire Building Construction* 31,720,180 14,141,970 44,134 Pension Stabilization Fund 750,000 750,000 750,000 Prospect/MainTIF* 698,930 8,532,044 25,991 395,781 1,307,969 3,299,979 1,781,776 2,177,557 Total Special Revenue 36,868,166 27,074,400 5,616,136 6,757,979 2,057,969 14,700,433 2,600,552 9,358,526 Debt Service * 4,150,506 3,455,359 3,126,865 1,782,485 2,828,686 13,825,394 (686,907) 1,095,578 Capital Projects (3) 5,577,761 5,662,051 5,521,975 8,165,264 11,491,049 6,313,800 14,479,064 Total Governmental $ 69,654,000 62,869,958 40,439,347 51,540,517 21,047,483 115,859,010 21,637,976 73,178,488 Proprietary & Fiduciary Fund Types Enterprise Funds (4): Water and Sewer * 40,157,409 38,572,493 42,981296 45,147,298 18,904,331 4,737,791 49,885,089 Village Parking System 725,953 549,156 430.837 310,546 190,000 12,420 322,966 Internal Service Funds (5) 21,115,612 22,226,789 23,618,874 25,752,604 13,429,963 (549,665) 25,202,939 Pension Trust Funds: Police Pension 66,374,108 78,333,544 86,908,231 96,474,332 4,831,922 (15,803,002) 80,671,330 Firefighter's Pension 62,398,530 71,227,941 80,459,469 85,017,228 4,490,163 (14,615,188) 70,402,040 Total Proprietary & Fiduciary $ 190,771,612 210,909,923 234,399,707 252,702,008 41,856,379 (26,217,644) 226,484,364 Total 111 Funds (Memo Only) $ 260,425,612 273,779,881 274,839,054 304,242,525 21,047,483 157,715,389 (4,579,668) 299,662,852 * Designated as major funds. Cash & Investments at 12/31 (6): 2018 2019 2020 2021 2022 General Fund $ 16,672,691 20,838,531 20,649384 29,375,181 46,145,782 Internal Service Funds 11,769,387 11,707,300 13,783,192 14,008,929 13,909,933 Police & Fire Building Construction 31,708,378 17,938,945 153,863 Prospect & Main TIF 712,311 9,716,685 10,018 341,682 1,927,204 Other Special Revenue Funds 4,792,342 5,427,444 5,825,227 6,378,108 7,404,244 Debt Service Funds 4,100,470 3,448,379 3,119,837 1,767,712 448,161 Subtotal $ 69,755,579 69,077,284 43,54L521 51,871,612 69,835,324 Capital Project Funds 5,949,833 6,262,008 5,325,291 7,948,358 12,304,169 Water &Sewer 12,425,604 19,536,350 17,631,177 16,311,963 25,934,241 Other Enterprise Funds 578,367 576,470 446,638 327,112 335,433 Pension Trust Funds 128,571,320 149,345,705 167,194366 181,536,181 150,542,958 Other Fiduciary Funds+ 1,115,737 Total $ 218,396,440 244,797,817 234,138,993 257,995,226 258,952,125 + Starling year 2019 Other Fiduciary Funds are merged with General Fund 262 275 Notes: l . This condensed financial information for the years ending December 31, 2018-2022 has been excerpted from the full Annual Comprehensive 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 Annual Comprehensive Financial Report for the year ended December 31, 2022 included an unmodified "Independent Auditor's Report". Similar unqualified/ unmodified opinions were included in the Village's Annual Comprehensive Financial Reports for the years ending December 31, 2018-2022. 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 -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2022, and the respective changes in financial position and, where applicable, cash flows thereoffor the year then ended in accordance with accounting principles generally accepted in the United States ofAmerica. " 2. The Village's property tax revenue recognition policy conforms to the provisions of "NCGA Interpretation 3, Revenue Recognition Property Taxes." The current net tax levy receivable is recognized in the balance sheet along with a corresponding amount of deferred revenue. In addition, the debt service payments and liabilities related to the current net tax levy are not reflected in the Debt Service Funds; the un -matured principal is reflected in the General Long -Term Debt Account Group. 3. Includes the Capital Improvement Fund, which accounts for the resources used to provide for mid-sized capital projects. Financing is provided by one-quarter cent home rule sales tax, developer contributions, interfund transfers, investment income, and bond proceeds. 4. Fund balances shown for the Enterprise Funds are total fund equity, including contributed capital and retained earnings, and the column "Revenue Over Expenditures" represents the change in that amount. 5. The Village 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. The Village created Pension Stabilization Fund in 2022. The fund will provide alternative revenue sources (other than property taxes) for the annual pension costs funding and will allow the Village to abate a portion of the real estate taxes to be levied for the public safety pensions. 8. Excludes agency funds. 263 276 CAPITAL ASSETS (Note) (December 31, 2022) 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. 264 277 Governmental Business Type Activities Activities Capital Assets Not Being Depreciated Capital Assets Not Being Depreciated Land $ 15,327,776 Land $ 17,318,818 Construction in Progress 2,505,965 Construction in Progress 3,608,713 Total Assets Not Being Depreciated $ 17,833,741 Total Assets Not Being Depreciated $ 20,927,531 Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings $ 73,507,433 Buildings and Improvements S 4,499,808 Improvements Other Than Buildings 1,516,920 Equipment 4,860,968 Infrastructure and All Other 130,789,374 Infrastructure 45,477,900 Total Capital Assets Being Depreciated $ 205,813,727 Total Capital Assets Being Depreciated $ 54,838,676 Less Accumulated Depreciation $ 104,897,677 Less Accumulated Depreciation $ 23,985,544 Total Capital Assets Being Depreciated, Net $ 100,916,050 Total Capital Assets Being Depreciated, Net S 30,853,132 Net Assets $ 118,749,791 Net Assets $ 51,780,663 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. 264 277 � A ♦ � i /////////%%%%%%%%%%%%////%%/%/////%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 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 June 1, 2023 The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois In planning and performing our audit of the financial statements of the Village of Mount Prospect (the Village), Illinois, for the year ended December 31, 2022, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. We do not intend to imply that our audit failed to disclose commendable aspects of your system and structure. For your consideration, we herein submit our comments and suggestions which are designed to assist in effecting improvements in internal controls and procedures. Those less -significant matters, if any, which arose during the course of the audit, were reviewed with management as the audit field work progressed. The accompanying comments and recommendations are intended solely for the information and use of the Board, Finance Director and senior management of the Village of Mount Prospect, Illinois. We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with various Village personnel. We would be pleased to discuss our comments and suggestions in further detail with you at your convenience, to perform any additional study of these matters, or to review the procedures necessary to bring about desirable changes. We commend the finance department for the well-prepared audit package and we appreciate the courtesy and assistance given to us by the entire Village staff. LAUTERBACH & AMEN, LLP 279 CURRENT RECOMMENDATIONS GASB STATEMENT NO. 96 SUBSCRIPTION -BASED INFORMATION TECHNOLOGY ARRANGEMENTS Comment In May 2020, the Governmental Accounting Standards Board (GASB) issued Statement No. 96, Subscription -Based Information Technology Arrangements, which provides guidance regarding the information needs of financial statement users by improving accounting and financial reporting for Subscription -Based Information Technology Arrangements (SBITAs) by governments. It establishes uniform accounting and financial reporting requirements for SBITAs, improves the comparability of financial statements among governments that have entered into SBITAs, and enhances the understandability, reliability, relevance, and consistency of information about SBITAs. GASB Statement No. 96, Subscription -Based Information Technology Arrangements is applicable to the Village's financial statements for the year ended December 31, 2023. Recommendation Lauterbach & Amen, LLP will work directly with the Village to review the new SBITA criteria in conjunction with the Village's current arrangements to determine the appropriate financial reporting for these activities under GASB Statement No. 96. Management Response Management acknowledges this comment and, if applicable, will implement it for the year ended December 31, 2023, as required by GASB. 2. GASB STATEMENT NO. 94 PRIVATE -PUBLIC AND PUBLIC -PUBLIC PARTNERSHIPS AND AVAILABILITY PAYMENT ARRANGEMENTS Comment In March, the Governmental Accounting Standards Board (GASB) issued Statement No. 94, Public - Private and Public -Public Partnerships and Availability Payment Arrangements, which provides guidance regarding the information needs of financial statement users to better meet the information needs of financial statement users by improving the comparability of financial statements among governments that enter into public-private and public -public partnerships (PPPs) and availability payment arrangements (APAs) and by enhancing the understandability, reliability, relevance, and consistency of information about PPPs and APAs. GASB Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements is applicable to the Village's financial statements for the year ended December 31, 2023. Recommendation Lauterbach & Amen, LLP will work directly with the Village to review the new criteria associated with PPPs and PPAs to determine the appropriate financial reporting for these activities under GASB Statement No. 94. Management's Response Management acknowledges this comment and, if applicable, will work to implement it by December 31, 2023, as required by GASB. 280 PRIOR RECOMMENDATIONS 1. FUNDS OVER BUDGET Comment Previously, we noted that the following funds had an excess of actual expenditures over budget for the fiscal year: Fund 12/31/2021 Business District $ 83,245 Recommendation We recommended the Village investigate the causes of the funds over budget and adopt appropriate future funding measures. Status This comment has been implemented and will not be repeated in the future. 2. FUNDS NOT IN COMPLIANCE WITH FUND BALANCE POLICY Comment Previously, we noted the following funds with fund balance that was not in compliance with the Board approved fund balance policy: Flood Control Construction Fund Minimum 5 -Year Average of Capital Expenditures $ 25% per Policy Per 2022 Fund Balance Amount Not Budget per ACFR In Compliance 3,240,408 25% 810,102 8,120 801,982 Recommendation We recommended the Village investigate the fund balances and adopt future budgets to address these items not in compliance. Status The comment has been implemented and will not be repeated in the future. 281 C@ii.RTIFIF-D PUBIACJ ACCOUNTANTS June 1, 2023 The Honorable Mayor Members of the Board of Trustees Village of Mount Prospect, Illinois 668 N. RIVER ROAD • NAPERVIILLE, ILLINOIS 60563 PHONE_ 630.393.1483 FAX 630.393.2516 www.la«toirba-aohame n.uo m We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, (the Village), Illinois for the year ended December 31, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 1, 2023. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Village are described in the Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31, 2022. We noted no transactions entered into by the Village during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the governmental and business -type activities' financial statements were: Management's estimate of the depreciation expense on capital assets is based on assumed useful lives of the underlying capital assets, the net pension liabilities/(assets) are based on estimated assumptions used by the actuary, the total OPEB liability is based on estimated assumptions used by the actuary, and the asset retirement obligation is based on historical costs for similar abandonments, adjusted for inflation. We evaluated the key factors and assumptions used to develop the depreciation expense, the net pension liabilities/(assets), the total OPEB liability, and the asset retirement obligation estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Any material misstatements detected as a result of audit procedures were corrected by management. 282 Village of Mount Prospect, Illinois June 1, 2023 Page 2 Significant Audit Findings - Continued Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 1, 2023. Management Consultations with Other Independent Auditors In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. if a consultation involves application of an accounting principle to the Village's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Village's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the other supplementary information and supplemental schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with the accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section and statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, and we do not express an opinion or provide any assurance on it. 283 Village of Mount Prospect, Illinois June 1, 2023 Page 3 Restrictions on Use This information is intended solely for the use of the Board of Trustees and management of the Village and is not intended to be, and should not be, used by anyone other than these specified parties. We wish to express our gratitude to the Board of Trustees and staff (in particular the Finance Department) of the Village of Mount Prospect, Illinois for their valuable cooperation throughout the audit engagement. Z"Z°Q1Z" &'46m, z4v LAUTERBACH & AMEN, LLP 284