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Home My WebLink About6. New Business 10/21/2014 Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FROM: TOM MUNZ, AUDIT COMMITTEE CHAIR DATE: OCTOBER 15, 2014 SUBJECT: ANNUAL REPORT OF AUDIT COMMITTEE 2013/2014 The audit for fiscal year 2013 is completed and included as part of your materials for review and acceptance. The audit firm of Lauterbach & This marked the completion of the fifth year of their five-year engagement with the Village. During the past year the audit committee met three times, April 15, August 28, and September 23, 2014. Agendas for these meetings included discussion on the annual report of the audit committee, review of 2013 auditor engagement letter, report by Lauterbach & Amen on the 2013 annual audit, request for proposal for auditing services and audit firm interviews. Audit committee activities included: In April 2014, the committee met and reviewed responses to the 2012 Management Letter, schedule relating to the 2013 audit engagement, and steps for beginning a recommendation for Auditor selection for the time period of 2014-2018. In August 2014, the audit committee met with partner in charge of the 2013 audit, Ron Amen. At that meeting we discussed overall results of the audit, the management letter, and transition process to new auditor. The following are some of the significant items from the 2013 Audit. On page two of the Comprehensive Annual Financial Report, the firm expresses that the financial statements present fairly in all respects the financial position for year ended December 31, 2013 in accordance with generally accepting accounting principles. While the actual statement at the top of the page is much more detailed, it is the o key statement from the audit firm demonstrating that they found no significant issues that impact their overall determination on the accuracy of the Villages financial statements and position. The Committee audit report. The management letter includes current recommendations as well as an There were four (4) prior year management letter comments. Prior year o comments include 1) the implementation of GASB Statement No. 61 (Financial Reporting Entity), 2) Compliance with Fund Balance Policy, 3) Funds Over Annual Report of Audit Committee 2013/14 October 15, 2014 Page 2 Budget, and 4) Funds with Deficit Balances. Items 1-3 have been satisfactorily addressed while item 4 will be addressed with future budgets. Village staff is working on a parking plan that includes a fee recommendation to address the operating shortfall and eliminate the deficit balance found in the Parking Fund. There were no current recommendations that required immediate attention. o There was one comment regarding the implementation of GASB Statement No. 67 (Pension Plan Reporting). Implementation of this Statement does not occur until year ended December 31, 2015. The final item we are highlighting from the Comprehensive Annual Financial Report is under the first tab (Introduction). On page viii is the Certificate of Achievement for Excellence in Financial Reporting that the Village received for its 2012 report. This th marks the 20 consecutive year the Village has received this award. Application has been made to the Certificate program for fiscal year 2013. Notice of the award is expected toward the end of 2014. As noted earlier, Lauterbach & Amen completed the fifth year of their five-year engagement with the 2013 audit. Village policy calls for rotation after an audit firm has completed 5 consecutive years as the external auditors. Request for Proposals were sent out in August to six (6) regional/national audit firms. Five responses were received. Three of the firms, Baker Tilly, Miller Cooper and Sikich Group, were selected for in-person interviews based on responses included in their proposal. Interviews were held September 23. Based on the interviews, the written proposals and the information received from reference calls, the auditor interview team is recommending the firm Sikich Group of Naperville, Illinois be selected to provide audit services for the Village of Mount Prospect. The recommendation will be presented to the Village Board at its October 21 Village Board meeting. The next meeting of the audit committee is expected in late 2014 or early 2015 to meet with the new auditors and plan for the 2014 audit. Please contact me should you have any questions or need additional information related to this report or the audit committee activities. Respectfully Submitted, Tom Munz VILLAGE OF MOUNT PROSPECT ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013 VILLAGE OF MOUNT PROSPECT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013 Prepared by: Finance Department David O. Erb Finance Director Lynn M. Jarog Deputy Finance Director VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS INTRODUCTORY SECTION PAGE Listof Principal Officials......................................................................................................................... I OrganizationalChart ..............................................................................................................................1-11 Letterof Transmittal........................................................................................................................... iii - vii GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................. viii FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT.........................................................................................1 - 2 MANAGEMENT'S DISCUSSION AND ANALYSIS...................................................... MD&A 1 - 11 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements Statementof Net Position................................................................................................................ 3 - 4 Statementof Activities.................................................................................................................... 5 - 6 Fund Financial Statements Balance Sheet — Governmental Funds............................................................................................. 7 - 8 Reconciliation of Total Governmental Fund Balance to Net Position — Governmental Activities........................................................................................9 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds.................................................................................. 10-11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities — Governmental Activities...................................12 Statement of Net Position — Proprietary Funds........................................................................... 13 -14 Statement of Revenues, Expenses and Changes Fund in Net Position — Proprietary Funds ..............15 Statement of Cash Flows — Proprietary Funds...................................................................................16 Statement of Fiduciary Net Position...................................................................................................17 Statement of Changes in Fiduciary Net Position................................................................................18 Notes to the Financial Statements...................................................................................................... 19-69 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION — Continued PAGE REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress and Employer Contributions Illinois Municipal Retirement Fund....................................................................................................70 PolicePension Fund...........................................................................................................................71 Firefighters' Pension Fund.................................................................................................................72 Other Post -Employment Benefits Plan...............................................................................................73 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual GeneralFund......................................................................................................................................74 Refuse Disposal — Special Revenue Fund..........................................................................................75 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Schedule of Revenues — Budget and Actual — General Fund............................................................ 76-78 Schedule of Expenditures — Budget and Actual — General Fund.............................................................79 Schedule of Detailed Expenditures — Budget and Actual — General Fund ........................................ 80-96 Schedule of Revenues — Budget and Actual — Refuse Disposal — Special Revenue Fund.......................97 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Debt Service Fund..................................................................98 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Flood Control Construction — Capital Projects Fund.......................................99 Schedule of Expenditures — Budget and Actual — Flood Control Construction — Capital Projects Fund ......................................100 Combining Balance Sheet — Nonmajor Governmental Funds ........................................................ .........101 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds.............................................................................102 Combining Balance Sheet — Nonmajor Special Revenue Funds ................................................... 103-104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmaj or Special Revenue Funds............................................................... 105-106 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Motor Fuel Tax — Special Revenue Fund..............................107 Schedule of Expenditures — Budget and Actual — Motor Fuel Tax — Special Revenue Fund .................108 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Community Development Block Grant — Special Revenue Fund ...................109 Schedule of Expenditures — Budget and Actual — Community Development Block Grant — Special Revenue Fund ...................110 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Asset Seizure — Special Revenue Fund ...........................................................111 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — DEA Shared Funds — Special Revenue Fund ..................................................112 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — DUI Funds — Special Revenue Fund .................. ...113 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION — Continued PAGE COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES — Continued Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Foreign Fire Insurance — Special Revenue Fund.............................................114 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Justice Assistance Grant — Special Revenue Fund ..........................................115 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budg et and Actual — Business District — Special Revenue Fund ......................................................116 Combining Balance Sheet — Nonmajor Capital Projects Funds .................................................... 117-118 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Capital Projects Funds................................................................ 119-120 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Capital Improvement — Capital Projects Fund.................................................121 Schedule of Expenditures — Budget and Actual — Capital Improvement — Capital Projects Fund.................................................122 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual— Series 2009 Construction— Capital Projects Fund ..........................................123 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Downtown Redevelopment Construction— Capital Projects Fund .................124 Schedule of Expenditures — Budget and Actual —Downtown Redevelopment Construction— Capital Projects Fund .................125 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Street Improvement Construction — Capital Projects Fund .............................126 Schedule of Revenues, Expenses and Changes in Net Position — Budget and Actual — Water and Sewer — Enterprise Fund................................................................127 Schedule of Operating Revenues — Budget and Actual — Water and Sewer — Enterprise Fund..............128 Schedule of Operating Expenses — Budget and Actual — Water and Sewer — Enterprise Fund .... 129-131 Combining Statement of Net Position — Nonmajor Enterprise Funds ........................................... 132- 133 Combining Statement of Revenues, Expenses and Changes in Net Position — Nonmajor Enterprise Funds.......................................................................................134 Combining Statement of Cash Flows — Nonmajor Enterprise Funds......................................................135 Schedule of Revenues, Expenses and Changes in Net Position — Budget and Actual — Parking System Revenue — Enterprise Fund ...................................................136 Schedule of Operating Expenses — Budget and Actual — Parking System Revenue — EnterpriseFund..................................................................................................................................137 Schedule of Revenues, Expenses and Changes in Net Position — Budget and Actual — Village Parking System — Enterprise Fund......................................................138 Schedule of Operating Expenses — Budget and Actual — Village Parking System — EnterpriseFund..................................................................................................................................139 Combining Statement of Net Position — Internal Service Funds ................................................... 140-141 Combining Statement of Revenues, Expenses and Changes in Net Position — Internal Service Funds..................................................................................... 142-143 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS PAGE FINANCIAL SECTION — Continued COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES — Continued Combining Statement of Cash Flows — Internal Service Funds .................................................... 144-145 Schedule of Revenues, Expenses and Changes in Net Position — Budget and Actual — Computer Replacement — Internal Service Fund.............................................146 Schedule of Operating Expenses — Budget and Actual — Computer Replacement — Internal Service Fund...............................................................................147 Schedule of Revenues, Expenses and Changes in Net Position — Budget and Actual — Risk Management — Internal Service Fund .....................................................148 Schedule of Operating Revenues — Budget and Actual — Risk Management — Internal Service Fund... 149 Schedule of Operating Expenses — Budget and Actual — Risk Management — Internal Service Fund.......................................................................................150 Schedule of Revenues, Expenses and Changes in Net Position — Budget and Actual — Vehicle Replacement — Internal Service Fund ................................................151 Schedule of Operating Revenues — Budget and Actual — Vehicle Replacement — Internal Service Fund..................................................................................152 Schedule of Operating Expenses — Budget and Actual — Vehicle Replacement — Internal Service Fund..................................................................................153 Schedule of Revenues, Expenses and Changes in Net Position — Budget and Actual — Vehicle Maintenance — Internal Service Fund.................................................154 Schedule of Operating Revenues — Budget and Actual — Vehicle Maintenance — Internal Service Fund...................................................................................155 Schedule of Operating Expenses — Budget and Actual — Vehicle Maintenance — Internal Service Fund...................................................................................156 Combining Statement of Fiduciary Net Position.....................................................................................157 Combining Statement of Changes in Fiduciary Net Position..................................................................158 Schedule of Changes in Fiduciary Net Position — Budget and Actual — Police Pension..................................................................................................159 Schedule of Changes in Fiduciary Net Position — Budget and Actual — Firefighters' Pension........................................................................................160 Combining Statement of Changes in Assets and Liabilities — Agency Funds .............................. 161-162 SUPPLEMENTAL SCHEDULES General Long -Term Debt Long -Term Debt Payable by Governmental Funds .................... Long -Term Debt Requirements General Obligation Bonds of 2009 ............................................. General Obligation Refunding Bonds of 2009B ........................ Taxable General Obligation Bonds of 2009C ............................ General Obligation Refunding Bonds of 2011B ........................ General Obligation Refunding Bonds of 2012C ........................ General Obligation Bonds of 2013 ............................................. .................................... 163- 164 ...................................................165 .....................................................166 .....................................................167 168 ...................................................169 ...................................................170 VILLAGE OF MOUNT PROSPECT, ILLINOIS TABLE OF CONTENTS FINANCIAL SECTION — Continued PAGE SUPPLEMENTAL SCHEDULES — Continued Long -Term Debt Requirements — Continued IEPA Flood Loan (L17-0744) Contract Payable of 1994..................................................................171 IEPA Flood Loan (1,17-0857) Contract Payable of 1994..................................................................172 IEPA Flood Loan (1,17-0855) Contract Payable of 1997..................................................................173 IEPA Flood Loan (L17-1087) Contract Payable of 1999..................................................................174 Installment Note Payable of 2012......................................................................................................175 Scheduleof Insurance in Force................................................................................................................176 STATISTICAL SECTION (Unaudited) Net Position by Component — Last Ten Fiscal Years.................................................................... 177- 178 Changes in Net Position — Last Ten Fiscal Years.......................................................................... 179- 180 Fund Balances of Governmental Funds — Last Ten Fiscal Years .................................................. 181-182 Changes in Fund Balances for Governmental Funds — Last Ten Fiscal Years .............................. 183-184 Assessed Value and Actual Value of Taxable Property — Last Ten Levy Years ........................... 185- 186 Direct and Overlapping Property Tax Rates— Last Ten Levy Years ............................................. 187- 188 Principal Property Tax Payers — Current Levy Year and Nine Levy Years Ago ....................................189 Property Tax Levies and Collections — Last Ten Fiscal Years................................................................190 Taxable Sales by Category — Last Ten Fiscal Years..................................................................... 191-192 Business District Sales Taxes by Category — Last Ten Fiscal Years ............................................ 193-194 Home Rule Sales Taxes by Category — Last Ten Fiscal Years ..................................................... 195- 196 Direct and Overlapping Sales Tax Rates — Last Ten Fiscal Years ..........................................................197 Ratios of Outstanding Debt by Type — Last Ten Fiscal Years ...................................................... 198- 199 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years ...................................................200 Schedule of Direct and Overlapping Governmental Activities Debt ......................................................201 Scheduleof Legal Debt Margin............................................................ ................................................... 202 Demographic and Economic Statistics — Last Ten Fiscal Years.............................................................203 Princi al Em to ers — Current Fiscal Year and Nine Fiscal Years Ago.................................................204 p p y Full -Time Equivalent Village Government Employees by Function/Program LastTen Fiscal Years.............................................................................................................. 205-206 Operating Indicators by Function/Program — Last Ten Fiscal Years ............................................ 207-208 Capital Asset Statistics by Function/Program — Last Ten Fiscal Years ........................................ 209-210 Additional SEC Rule Disclosures.................................................................................................. 211-218 INTRODUCTORY SECTION This section includes miscellaneous data regarding the Village of Mount Prospect including: • List of Principal Officials • Organizational Chart • GFOA Certificate of Achievement for Excellence in Financial Reporting • Letter of Transmittal VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Officials December 31, 2013 Paul Wm. Hoefert A. John Korn John J. Matuszak LEGISLATIVE Arlene A. Juracek, Mayor ADMINISTRATIVE Michael E. Janonis, Village Manager David Strahl, Assistant Village Manager David O. Erb, Finance Director/Treasurer William J. Cooney, Jr., Director of Community Development Nancy M. Morgan, Director of Human Services John Malcolm, Fire Chief Michael J. Semkiu, Police Chief Sean P. Dorsey, Director of Public Works M. Lisa Angell, Village Clerk Steven S. Polit Richard F. Rogers Michael A. Zadel VILLAGE OF MOUNT PROSPECT ORGANIZATIONAL STRUCTURE Boards Fire Pension Board Fire & Police Commissioners Electorate Village Board Mayor and Six Trustees Elected At Large Village Services Village Manager (Police Pension Board Foreign Fire I Village Insurance Tax Board Administration Community Development Department Police Department Public Works Department 11 Audit Committee Finance Commission Finance DepartmentI I Safety Commission Human Services Department Fire Department Commissions Special Events Commission Sister Cities Commission Community Relations Commission Economic Development Commission Planning & Zoning Commission Solid Waste Commission Youth Commission MAYOR Mptuu� VILLAGE MANAGER Arlene A. Juracek Michael E. Janonis TRUSTEES VILLAGE CLERK Paul Wm. Hoefert M. Lisa Angell A. John Kom John J. Matuszak Phone: 847/392-6000 Steven S. Polit Fax: 847/392-6022 Richard F. Rogers TDD: 847/392-6064 Michael A. Zadel www.mountprospect.org Village of Mount Prospect May 12, 2014 50 South Emerson Street, Mount Prospect, Illinois 60056 The Honorable Arlene A. Juracek, Village President Members of the Board of Trustees Village Manager Michael E. Janonis, and Citizens of the Village of Mount Prospect, Illinois The Comprehensive Annual Financial Report of the Village of Mount Prospect, Illinois for the fiscal year ended December 31, 2013 is submitted herewith. The report consists of management's representations concerning the finances of the Village of Mount Prospect. Also included in the report are the finances of the Mount Prospect Public Library, a component unit of the Village. 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 and 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, 2013, 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 unqualified opinion that the Village's financial statements for the fiscal year ended December 31, 2013 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Village's MD&A can be found immediately following the report of the independent auditors. iii Profile of the Village of Mount Prospect The Village of Mount Prospect, a home rule community as defined by the Illinois Constitution, was incorporated February 3, 1917 and is located 22 miles northwest from downtown Chicago in Cook County. The Village currently has land area of 10.3 square miles and a population of 54,167. 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 and Village Attorney. The Village Manager is responsible for carrying out the policies and ordinances of the Village Board, for overseeing the day-to-day operations of the Village, and for appointing the heads of the Village's departments. The Board is elected on a non-partisan basis. Board members are elected to four-year staggered terms with three Board members elected every two years. The Mayor is elected to a four-year term. The Mayor and Village Trustees are elected at large. The Village provides a full range of services including police, fire, public works (including water and sewer), human services, finance, community development and 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-August 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 September. Initial budget requests are compiled by the end of September. A proposed budget is prepared and delivered to the Village Board and Finance Commission in early October. The proposed budget is also made available for public inspection in the Village Clerk's Office, on the village website and at the Mount Prospect Public Library. A series of meetings are held with the Finance Commission along with hearings before the Village Board at two (2) Committee of the Whole meetings in late October and early November. The Village Board is required to hold a public hearing on the proposed budget and to adopt a final budget no later than December 31st of each year, the close of the Village's previous budget year. The budget is prepared by fund and by department. 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, 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 the Village's commitment to ensuring that its citizens are able to live and work in an enviable environment. Also included in this section are any other major activities of note that occurred during the year. The most significant of these projects and activities are discussed below: The Village's STREET IMPROVEMENT PROGRAM saw approximately six miles of local streets resurfaced at a cost of $490,000 per mile. It should be noted that due to dwindling revenues we currently have a 13.3 mile backlog of streets in need of resurfacing at an estimated cost of $7 million. During the budget process for 2014, the Village Board approved a street funding plan developed by the Finance Commission to address the resurfacing backlog and provide sufficient funding of the annual street program. Funding in 2014 will come from a $0.02 increase in the local motor fuel tax and reallocation of vehicle sticker revenue ($1.3 million) made possible by an increase in the direct charge for refuse collection, and reserves in the Street and Refuse Funds. Another road construction project completed was the Kensington Road Reconstruction Project. The improvements included: complete removal of the existing pavement and reconstruction of the roadway, installation of curb and gutter, construction of a continuous center left turn lane, elimination of roadside ditches by constructing storm sewers, sidewalk installation along the north side of the right-of-way, continuous street lighting, and addition of a right turn lane from eastbound Kensington to Elmhurst Road. A right turn lane was also added from westbound Kensington to Rand Road. The total project cost was $3,300,000, utilizing federal and state funding with a Village cost of $190,000. Following completion of the project, the jurisdiction of the roadway will transfer from IDOT to the Village of Mount Prospect. iv The Village completed the first year of an eight year program to rehabilitate each of the eight sanitary sewer relief stations located along Weller Creek. The relief stations are used to provide relief to the Village sanitary sewer system when MDRWGC interceptor sewers become surcharged. In 2013, George Street North relief station was replaced with a new pump station including the installation of new pumps, guide rails and controllers, along with all associated wiring and other electrical control equipment. The total project cost is projected to be approximately $180,000. 2013 saw the completion of the ninth year of a 10 -year commitment to rehabilitate approximately 260,000 LF of COMBINED SEWER MAINS ranging in size from 8" to 72" diameter. As part of this year's effort, over 5,900 linear feet of combination sewer were repaired using the cured -in-place (CIPP) lining process. In addition, approximately 303 linear feet of severely failed (Category 3) combination sewer pipe was excavated and replaced. In total, during the first nine years of this program 76,891 linear of feet of pipe has been lined and 1,460 linear feet of pipe has been replaced. One hundred percent of all Category 4 and 5 defects and 30% of category 3 defects have been repaired to date. Total water and sewer funds expended during 2013 are projected to be approximately $765,000. ■ The Village began addressing FLOOD CONTROL through a $10 million bond sale to fund public flood control improvements that were identified by a comprehensive flood study that grew out of the 2011 flooding events. This bond sale did not add any additional tax burden to the residents since the new bonds replaced debt supported with existing revenues. 2013 was another devastating year for the Village's URBAN FOREST. A myriad of threats continued to converge during the year resulting in a dramatic number of parkway tree removals. During the year, 1,077 Village -owned trees were lost to Dutch Elm Disease, Elm Yellows, Emerald Ash Borer, other diseases, and natural decline. Historically, only about 400 trees are lost in a typical year. Through efficient utilization of resources and tight fiscal management, the Village has been able to keep pace with the increased volume of removals. In addition, due to the availability of Village funds and low market prices, the Village was able to plant 995 replacement trees — one of our largest plantings ever. ■ In addition to fighting the advancement of EAB, the Village was hit by a severe thunderstorm on the evening of July 19. The storm featured winds in excess of 55 mph resulting in the damage of 592 Village - owned trees; 35 requiring complete removal. Public Works crews spent a week of 12 -hour days clearing debris and performing house-to-house collection of limbs and brush in the wake of the storm. The Forestry division updated the Village's Urban Forest Management Plan. In 2012 the Village was awarded grant funding to update the Village's 1993 Urban Forest Management Plan. Consultants from Urban Forestry LLC worked with staff to develop the new plan. The plan examines the past, present and future of the Village's urban forest management activities. In addition, the plan details the current condition of the Village's urban forest and identifies challenges expected in the future. Severe weather did once again visit the Village by way of record setting flood events that occurred between April 17 and 23. During the early morning hours of April 17 and 18, the Village received approximately 5.55" of rain in a five hour window combined with significant rainfall in southern Wisconsin resulting in the record crest of the Des Plaines River at 10.92 feet on April 19. Public Works crews, with only a few hours' notice, worked through the early morning hours of April 18 to construct a 600 foot temporary floodwall to hold back the rising waters of the Des Plaines River. Public Works' efforts were successful in preventing catastrophic flooding in the New Town Subdivision (Northeast portion of Mount Prospect). In addition to the river flooding the rain caused a number of State and local roads to be impassable for several hours. Fortunately, by the end of the day the sewer system was able to recover and most flood waters had subsided. Nonetheless, over 160 homes and businesses reported flooding on April 18. The total estimated cost of the flood was $181,924. No Federal assistance was received. The FIRE DEPARTMENT saw significant staffing changes in 2013 with the retirement of the Deputy Chief, the succession plan worked seamlessly with the internal promotion of a new Deputy Chief and a new Battalion Chief. The department also conducted a Lieutenant promotional exam to establish an eligibility list, replaced office furniture in the fire administration offices, and instituted a new web based roster program. The fire prevention bureau received a Federal Emergency Management Agency (FEMA), Fire Prevention and Safety Grant, for $29,425. The grant will provide free smoke alarms for seniors, 65 and older, in over 350 homes. v On the ECONOMIC DEVELOPMENT front, activity is starting to pick up. Randhurst is completed and is actively leasing. Among the increased leasing activity at Randhurst include the restaurant's Black Finn, E&O, and Panera coming on line this year. Other significant developments include: Caremark occupied/opened a 180,000 square foot distribution facility on the south end of the Village, Aldi's relocations and expansion, Ross Dress for Less, LA Fitness all opened at the Mount Prospect Plaza, Fresh Thyme grocery is taking over the former Sport Authority location filling a vacant big box location and the opening of Chick-Fil-A across from Randhurst. The COMMUNITY CONNECTION CENTER (CCC) celebrated its 4th anniversary in August 2013. First opened in August 2009, the CCC is a collaborative effort by the Village (Human Services and Police), the Mount Prospect Public Library and a number of education and social services agencies to bring much needed social, educational and cultural services to an area of town with a high concentration of low/moderate income families and many recent immigrants. Since its opening, requests for assistance from constituents has been in the high six figures. The Human Services and Police Departments have worked diligently in the last year to enhance their partnership. Patrol Officers continue to make referrals through the Community Connection Center to the Human Services police social worker with the goal of preventing future criminal activity. The POLICE AND FIRE DEPARTMENTS continued to focus on their respective core missions and transitioned to a new digital radio system as part of the Northwest Central Dispatch System (NWSDS) of which Mount Prospect is a member. The Police Department conducted a new hire test to establish an eligibility list for patrol officers. The Police Department also transitioned to a new and technologically improved mobile video recording system for all of its patrol vehicles to record traffic stops. ENTERPRISE RESOURCE PLANNING (ERP) software system implementation has been completed for the most part with all major modules in full operation. The Utility Management (water/sewer and refuse billing) module went live in January 2013 which will improve business process efficiency. Additionally, staff continues to work closely with New World Systems to bring improvements to their suite of software, including upgrades to the Community Development module, improved mobility features, and enhanced on- line permitting and licensing. Related to the project, the Village continues to participate in the Illinois local -users group. The users group meets regularly throughout the year with other municipalities to help each other address business process needs using the software, as well as advocate for software suggestions and address unresolved issues. 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 experienced a slight return in 2013 from the slowdown in the housing market and weak economy in general. There are a number of factors that influence the economy of a specific community, and various measures are used to gauge the economic outlook. Perhaps four of the most objective measures are the level of retail sales, the employment level of the community, income levels in the community and building activity. In Illinois, sales taxes are allocated based upon the point-of-sale, and accordingly represent the sales in the community. Total sales tax receipts in the calendar year ended December 31, 2013 were $12,342,154 compared to $11,040,403 for the previous year, an increase of 11.8%. The increase from the prior year is due to strong growth in the drug, miscellaneous and other sales categories. Since the Village's portion of sales tax receipts is based on a 1% tax rate, these receipts represent total retail sales of approximately $1.2 billion for 2013. The Village projects that this revenue source will increase 3.0% - 5.0% during 2014 and 2015. The Village will continue its efforts in the area of economic development and is optimistic that retail sales will grow over the next few years. The completed redevelopment of Randhurst Village (formerly Randhurst Mall) into a more vibrant and attractive retail center will help in this area. Mount Prospect's average unemployment rate for 2013 was 6.7%. This was a slight increase from the prior year of 10 basis points (6.6% in 2012). While other areas of the local economy have showed signs of improvement, similar gains in the unemployment rate have not materialized. The unemployment rate for the State of Illinois increased 30 basis points from 8.9% to 9.2% during the same period. Mount Prospect's median family income, $67,823 as of the 2010 Census (using 5 -year estimates), was 25% higher than the median for Cook County ($53,942) and 21% higher than the median for the State of Illinois ($55,735). V1 In a suburban setting where it is often difficult to distinguish the boundaries of one community from a neighboring community, the economic activity of the "region" is a major influence on the economies of the individual communities. The Village of Mount Prospect is located on the eastern edge of the "Golden Corridor" which extends along Interstate 90 from O'Hare Airport to Elgin, a stretch of approximately 25 miles. Along this corridor can be found the corporate headquarters of such corporations as Sears and Motorola. The corridor is also home to regional headquarters for such corporations as AT&T and Siemens. The Corridor will continue to grow, as thousands of acres remain available for development on its far western edge. Long-term flnancial planning. In 2003, the Village conducted its first long-range financial planning workshop. The workshop was held in response to the slowing economy and its impact to the Village's financial condition. The goal of the workshop was to put the Village's financial condition back on firm ground in such a manner as to not overburden residents and businesses from a tax standpoint or reduce the scope and quality of municipal services that would jeopardize the livability and curb appeal of the community. The goal of the workshop was accomplished through a series of revenue enhancements, budget cuts and the planned drawdown of fund balance. Subsequent workshops were held in 2004, 2005 and 2007 - 2013. During the 2013 workshop, financial status reports were provided for end -of -year results for 2012, updated projections for 2013 and a revised forecast for 2014. Another tool in managing the long-range finances of the Village is the Five -Year Capital Improvement Plan. This plan outlines the major capital expenditure/project initiatives of the Village over the next five years and identifies funding sources. Over the next five years (2014-2018), the Village has identified $56.9 million in water and sewer, flood control, street, public building, equipment and other miscellaneous capital projects. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Mount Prospect for its comprehensive annual financial report for the year ended December 31, 2012. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report (CAFR) whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village of Mount Prospect has received a Certificate of Achievement since 1983. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA for evaluation. In addition, the Village of Mount Prospect also received the Government Finance Officers Association's Award for Distinguished Budget Presentation for its annual budget for the fiscal year beginning on January 1, 2013 and ending December 31, 2013. In order to qualify for the Distinguished Budget Presentation Award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Village of Mount Prospect has received this award each year since 1994. The Village is awaiting word as to whether it received the Budget Award for its 2014 Budget document. Acknowledgements The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. I would like to express special appreciation to Lynn Jarog, Deputy Finance Director, Tricia Farkas, Accounting Supervisor and Accountants Nancy Warnock and Daxa Patel who contributed greatly to its preparation. Additionally, I would like to acknowledge the Mayor, the Board of Trustees, the Finance Commission and the Village Manager for their leadership and support in planning and conducting the financial affairs of the Village in a responsible and progressive manner. Respectfully submitted, David O. Erb Finance Director vii 0� Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Mount Prospect Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2012 Executive Director/CEO viii FINANCIAL SECTION This section includes: • Independent Auditors' Report • Management's Discussion and Analysis • Basic Financial Statements • Required Supplementary Information • Combining and Individual Fund Statements and Schedules INDEPENDENT AUDITORS' REPORT Lauterbach & Amen, LLP 27W457 WARRENVILLE RD. • WARRENVILLE, ILLINOIS 60555 . v CERTIFIED PUBLIC A[ .c + ri < 1 • 1 11 INDEPENDENT AL)DITORS' REPORT May 12, 2014 The Honorable Village President Members of the Board of Trustees Village of Mount Prospect, Illinois PHONE 630.393.1483 • FAX b30393.25 16 www.lauterbachamen.com We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component unit, 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, 2013, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Village of Mount Prospect, Illinois, as of December 31, 2013, 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. 1 Village of Mount Prospect, Illinois May 12, 2014 Page 2 Other Matters Accounting principles generally accepted in the United States of America require that the management's discussion and analysis as listed in the table of contents and budgetary information reported in the required supplementary information as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Mount Prospect, Illinois', financial statements as a whole. The introductory section, combining and individual fund financial statements and schedules, supplemental schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules and supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 12, 2014, on our consideration of the Village's internal control over financial reporting and on our tests of its compliance with certain provision of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village's internal control over financial reporting and compliance. LAUTERBACH & AMEN, LLP 0) MANAGEMENT'S DISCUSSION AND ANALYSIS VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS For Fiscal Year Ended December 31, 2013 The Village of Mount Prospect (the "Village") Management's Discussion and Analysis is designed to (1) assist the reader in focusing on significant issues, (2) provide an overview of the Village's financial activity, (3) identify changes in the Village's financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. Since the Management's Discussion and Analysis (MD&A) is designed to focus on the current year's activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning on page iii), and the Village's financial statements (beginning on page 3). USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL REPORT The primary focus of local governmental financial statements has been to summarize fund type information on a current financial resource basis. This approach has been 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 new financial statement's focus is on both the Village as a whole (government -wide) and on the major individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the Village's accountability. Government -Wide Financial Statements The government -wide financial statements (see pages 3-6) are designed to be corporate -like in that all of the governmental and business -type activities are consolidated into columns that add to a total for the Primary Government. The focus of the Statement of Net Position (the "Unrestricted Net Position") found on pages 3 and 4 is designed to be similar to bottom line results for the Village and its governmental and business -type activities. This statement combines and consolidates the governmental fund's current financial resources (short-term spendable resources) with capital assets and long term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities (see pages 5-6) is focused on both the gross and net cost of various activities (including governmental and business -type), which are supported by the government's general taxes and other resources. This is intended to summarize and simplify the user's analysis of the cost of various governmental services and/or subsidy to various business -type activities. The governmental activities reflect the Village's basic services, including police, fire, public works, and administration. Property taxes, sales and income taxes and local utility taxes finance the majority of these services. The business -type activities reflect private sector type operations (water, sewer, and parking operations), where the fee for service typically covers all or most of the cost of operation, including depreciation. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. The focus is on major funds rather than (the previous model's) fund types. The Governmental Major Fund (see pages 7-12) presentation is organized on a sources and uses of liquid resources basis. This is the manner in which the financial plan (the budget) is typically developed. The flow and availability of liquid resources is a clear and appropriate focus of any analysis of a government. Funds are established for various purposes and the Fund Financial Statement allows the demonstration of sources and uses and/or budgeting compliance associated therewith. (See independent auditor's report.) MD&A1 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The Fund Financial Statements also allow the government to address its Fiduciary Funds (Police and Firefighters' Pension Funds). While these funds represent trust responsibilities of the government, these assets are restricted in purpose and do not represent discretionary assets of the government. Therefore, these assets are not presented as part of the Government -Wide Financial Statements. While the Business -type Activities column on the Proprietary Fund Financial Statements (see pages 13-16) is the same as the Business -type column on the Government -Wide Financial Statement, the Governmental Funds total column requires a reconciliation because of the different measurement focus (current financial resources versus total economic resources) which is reflected on the page following each statement (see pages 9 and 12). The flow of current financial resources will reflect bond proceeds and interfund transfers as other financial sources, as well as capital expenditures and bond principal payments as expenditures. The reconciliation will eliminate these transactions and incorporate the capital assets and long-term obligation (bonds and others) into the Governmental Activities column (in the government -wide statements). Infrastructure Assets Historically, a government's largest group of assets (infrastructure — i.e. roads, bridges, storm sewers, etc.) have not been reported nor depreciated in governmental financial statements. This new statement 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 (which is the Village's bottom line) as of December 31, 2013 was $109.8 million. This was a decrease in net position of $0.6 million from 2012. Net position of the Village's governmental activities were $75.4 million, a decrease of $1.6 million. The Village's unrestricted net position for governmental activities, the part that can be used to finance day-to-day operations, were $24.2 million down $0.8 million from the 2012 unrestricted net position total of $25.0 million. Table 1 reflects the condensed Statement of Net Position. For more detailed information see the Statement of Net Position found on pages 3-4. Table 2 focuses on the changes in net position of the governmental and business -type activities. (This space is intentionally left blank.) (See independent auditor's report.) MD&A2 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 1 Statement of Net Position as of December 31, 2013 (in millions) Net Position Net investment in capital assets Restricted net position Unrestricted net position Total net position $ 48.2 $ 48.5 $ 26.4 $ 3.0 3.5 - 24.2 25.0 8.1 $ 75.4 $ 77.0 $ 34.4 $ 26.6 $ 74.6 $ 75.1 - 3.0 3.5 6.8 32.2 31.8 33.4 $ 109.8 $ 110.4 Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net results of activities - which will impact (increase/decrease) current assets and unrestricted net position. Borrowing for capital - which will increase current assets and long-term debt. Spending borrowed proceeds on new capital - which will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the invested in capital assets, net of debt. Spending of nonborrowed current assets on new capital - which will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase invested in capital assets, net of debt. Principal payment on debt - which will (a) reduce current assets and reduce long-term debt and (b) reduce unrestricted net position and increase invested in capital assets, net of debt. Reduction of capital assets through depreciation - which will reduce capital assets and invested in capital assets, net of debt. Current Year Impacts Only slight changes were seen in governmental and business -type activities from 2012. Governmental activities net position decreased $1.6 million while the business -type activities net position increased by $1.0 million. The governmental activities total assets increased by $9.9 million and the governmental activities total liabilities/deferred inflows increased by $9.5 million. The total assets increase of $9.9 million in governmental activities was the result of an increase of $11.7 million in current and other assets and a decrease of $1.8 million in capital assets. The $11.7 million increase in current assets was due to an increase in cash and investments of $10.3 million, an increase in property tax receivables of $0.9 million, and an increase in other assets of $0.5 million. Bond proceeds accounted for almost the entire increase in cash and investments; accumulated depreciation accounted for the decrease in capital assets. The total net position increase of $1.0 million in business -type activities was primarily due to an increase in cash and investments of $1.2 million and a reduction in non-current assets of $0.2 million. (See independent auditor's report.) MD&A 3 Governmental Business -type Activities Activities Total 2013 2012 2013 2012 2013 2012 Current and other assets $ 65.1 $ 53.4 $ 9.1 $ 8.2 $ 74.2 $ 61.6 Capital assets 73.8 75.6 26.4 26.6 100.2 102.2 Total assets $ 138.9 $ 129.0 $ 35.5 $ 34.8 $ 174.4 $ 163.8 Current liabilities/deferred inflows $ 25.5 $ 22.9 $ 0.9 $ 1.2 $ 26.4 $ 24.1 Noncurrent liabilities 38.0 29.1 0.2 0.2 38.2 29.3 Total liabilities/deferred inflows $ 63.5 $ 52.0 $ 1.1 $ 1.4 $ 64.6 $ 53.4 Net Position Net investment in capital assets Restricted net position Unrestricted net position Total net position $ 48.2 $ 48.5 $ 26.4 $ 3.0 3.5 - 24.2 25.0 8.1 $ 75.4 $ 77.0 $ 34.4 $ 26.6 $ 74.6 $ 75.1 - 3.0 3.5 6.8 32.2 31.8 33.4 $ 109.8 $ 110.4 Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net results of activities - which will impact (increase/decrease) current assets and unrestricted net position. Borrowing for capital - which will increase current assets and long-term debt. Spending borrowed proceeds on new capital - which will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the invested in capital assets, net of debt. Spending of nonborrowed current assets on new capital - which will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase invested in capital assets, net of debt. Principal payment on debt - which will (a) reduce current assets and reduce long-term debt and (b) reduce unrestricted net position and increase invested in capital assets, net of debt. Reduction of capital assets through depreciation - which will reduce capital assets and invested in capital assets, net of debt. Current Year Impacts Only slight changes were seen in governmental and business -type activities from 2012. Governmental activities net position decreased $1.6 million while the business -type activities net position increased by $1.0 million. The governmental activities total assets increased by $9.9 million and the governmental activities total liabilities/deferred inflows increased by $9.5 million. The total assets increase of $9.9 million in governmental activities was the result of an increase of $11.7 million in current and other assets and a decrease of $1.8 million in capital assets. The $11.7 million increase in current assets was due to an increase in cash and investments of $10.3 million, an increase in property tax receivables of $0.9 million, and an increase in other assets of $0.5 million. Bond proceeds accounted for almost the entire increase in cash and investments; accumulated depreciation accounted for the decrease in capital assets. The total net position increase of $1.0 million in business -type activities was primarily due to an increase in cash and investments of $1.2 million and a reduction in non-current assets of $0.2 million. (See independent auditor's report.) MD&A 3 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The increase in total liabilities of $11.5 million for the governmental activities was primarily due to an increase in liabilities related to general obligation debt service of $8.8 million, deferred property taxes of $0.9 million and accounts payable of $1.8 million. Liabilities for debt service increased due to the issuance of bonds for capital improvements. Changes in the other categories resulted in the timing related to the normal course of operations. Liabilities for business -type activities decreased from $1.4 million to $1.1 million. This was due to an increase in the accounts payable category. Changes in Net Position The Village's combined change in net position for the primary government in 2013 was a decrease of $0.6 million. Activities for the governmental activities saw a decrease in net position of $1.6 million from 2012, while activities for the business -type funds saw an increase in net position of $1.0 million in 2013 versus an increase of $1.3 million in 2012. The change in combined net position in the prior year was a decrease of $2.4 million. The following chart lists the revenues and expenses for the current and prior fiscal years. (This space is intentionally left blank.) (See independent auditor's report.) MD&A4 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 2 Changes in Net Position as of December 31, 2013 (in millions) Governmental Business -type Activities Activities Total Revenues 2013 2012 2013 2012 2013 2012 Program revenues Charges for service $ 8.8 $ 8.6 $ 11.7 $ 11.2 $ 20.5 $ 19.8 Operating grants 2.4 2.0 - - 2.4 2.0 Capital grants 0.3 0.1 - - 0.3 0.1 General revenues Property taxes 18.9 18.4 1.5 1.5 20.4 19.9 Business district taxes 0.3 0.3 - - 0.3 0.3 Sales taxes 18.3 16.6 0.1 0.1 18.4 16.7 Income taxes 5.2 4.7 - - 5.2 4.7 Utility taxes 3.9 4.6 - - 3.9 4.6 Other taxes 3.4 2.8 - - 3.4 2.8 Investment income 0.1 0.1 - - 0.1 0.1 Contributions - - - - - - Other 0.4 0.3 0.1 (0.1) 0.5 0.2 Total revenues $ 61.9 $ 58.5 $ 13.4 $ 12.7 $ 75.4 $ 71.2 Expenses General government $ 7.4 $ 6.2 $ - $ - $ 7.4 $ 6.2 Public safety 29.8 28.2 - - 29.8 28.2 Highways and streets 18.6 15.9 - - 18.6 15.9 Health 4.5 4.4 - - 4.5 4.4 Welfare 1.9 1.9 - - 1.9 1.9 Culture and recreation 0.4 0.4 - - 0.4 0.4 Interest 1.0 1.0 - - 1.0 1.0 Water and sewer - - 12.1 11.1 12.1 11.1 Parking - - 0.3 0.3 0.3 0.3 Total expenses $ 63.5 $ 58.0 $ 12.4 $ 11.4 $ 75.9 $ 69.4 Change in net position $ (1.6 $ 0.5 $ 1.0 $ 1.3 $ (0.6) $ 1.8 (Note: There will be some slight differences in totals due to rounding). (See independent auditor's report.) MD&A5 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Normal Impacts There are eight basic impacts on revenues and expenses and are reflected below. Revenues: Economic condition - This can reflect a declining, stable or growing economic environment and has a substantial impact on state income, sales and utility tax revenue as well as public spending habits for building permits, elective user fees and volumes of consumption. Increase/decrease in Village approved rates - While certain tax rates are set by statute, the Village Board has significant authority to impose and periodically increase/decrease rates (water, sewer, licenses and fees, home rule sales tax, utility taxes, etc.). Changing atterns in ince overnmental 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 -tern average maturity and the market condition may cause investment income to fluctuate less than alternative longer -tern options. Expenses: Introduction of new programs - Within the functional expense categories (Public Safety, Public Works, General Government, etc.) individual programs may be added or deleted to meet changing community needs or unfunded mandates from other governmental levels. Increase/Decrease in authorized personnel - Changes in service demand may cause the Village Board to increase/decrease authorized staffing levels. Staffing costs (salary and related benefits) represent approximately 80% of the Village's General Fund operating costs. Salary increases (annual adjustments and merit) - The ability to attract and retain human and intellectual resources requires the Village to strive for a competitive salary range position in the marketplace. In addition, the Village has 4 separate bargaining units representing various segments of the employee population. Inflation - While overall inflation appears to be reasonably low, the Village is a major consumer of certain commodities such as supplies, fuels and parts. Some specific areas may experience unusually high price increases. CURRENT YEAR IMPACTS Governmental Activities Revenue: Total revenues for the Village's Governmental Activities for 2013 were $61.9 million. Property taxes are the largest revenue source for governmental activities accounting for $18.9 million or an increase of $0.5 million from the prior year. This revenue has historically been the most stable source for the Village. Sales tax was the second highest revenue source with $18.3 million in revenue. This was an increase of $1.7 million from the prior year. The increase was due primarily to the gradual improving economy and additional new retail coming on line. The sales tax consists of a 1.0% state portion and 1.0% local home -rule portion. There was a slight increase of $0.4 million in revenues from grants. The income tax increased $0.5 million as state shared revenues saw slight growth during this period. (See independent auditor's report.) MD&A 6 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Governmental Activities (cont) Expenses: Total expenses for the Village's Governmental Activities for 2013 were $63.5 million. Public Safety, which includes Police and Fire, accounts for the largest portion of governmental expenses. Total Public Safety expenses in 2013 were $29.8 million, an increase of $1.6 million from 2012. 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 $18.6 million an increase of $2.7 million from the prior year. The increase is primarily due to expenses related to capital projects. Business -Type Activities Revenues: Total revenues for the Village's Business -Type Activities for 2013 were $13.4 million. Business -type activities in the Village consist of Water and Sewer Operations and Parking Operations. Charges for service accounts for almost the entire amount of revenue for business -type activities. Of the $11.7 million generated in 2013, $8.5 million is from water sales, $2.8 million is from sewer fees and charges, $0.2 million is from parking operations and the balance is from various penalties, tap and meter fees. For 2012, water sales accounted for $7.9 million and sewer fees were $2.9 million. The Water and Sewer Fund also receives special service area taxes in the amount of $1.5 million. This amount is unchanged from the prior year. These taxes support the delivery of Lake Michigan Water to Village residents that are connected to the Village's water system. Expenses: Total expenses for the Village's Business -Type Activities for 2013 were $12.4 million. Of the total expenses for business -type activities, $12.1 million is attributable to Water and Sewer while $0.3 million is attributable to parking. $5.3 million in Water and Sewer Fund expenses were for the acquisition of water through the Northwest Suburban Municipal Joint Action Water Agency (JAWA). In comparison, of the $11.4 million in expenses for 2012, $4.6 million were attributable to the acquisition of water through JAWA. FINANCIAL ANALYSIS OF THE VILLAGE'S GENERAL FUND The General Fund is the Village's primary operating fund. It supports a majority of the day-to-day services delivered to its residences and businesses. The fund balance of the General Fund saw a slight increase of $0.3 million in 2013 from $11.6 million to $11.9 million. In 2013, General Fund revenues came in slightly above the final budget by $0.3 million while expenditures and net transfers came in $1.0 million under budget. The final Village budget had anticipated a decrease in the General Fund fund balance of $0.6 million. Intergovernmental revenues were above budget by $0.3 million primarily due to a growth in sales taxes. Actual sales tax receipts for 2013 came in $0.3 million above the final budget. No other significant deviations were seen in revenues during 2013. (See independent auditor's report.) MD&A 7 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) General Fund Budgeting Highlights During 2013, the Village amended the budget four times. Table 3 below reflects the original and revised budget and the actual revenues and expenditures for the General Fund. More information can be found in the schedule of revenues, expenditures and changes in fund balance on page 74. Other Major Funds There are three (3) other Major Funds for Fiscal Year ended December 31, 2013. These three Funds are 1) Refuse Disposal Fund, 2) Debt Service Fund, and 3) Flood Construction Fund. Refuse Disposal Fund - This Fund coordinates the Village's comprehensive municipal solid waste program. Total revenues for 2013 were $4.4 million, a decrease of $0.1 million from the prior year. Of this total revenue amount, $1.8 million is from property taxes and $2.6 million is from charges for services. Total expenditures for 2013 were $4.3 million, no change from the prior year. Ending fund balance grew $0.1 million to $2.4 million. Debt Service Fund - This Fund is used to accumulate monies for payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2013 were $2.4 million, no change from the prior year. Of this total revenue amount, $2.4 million is from property taxes and less than $0.1 million is from miscellaneous revenue. Total expenditures for 2013 were $2.5 million, an increase of $0.1 from the prior year. Ending fund balance was unchanged at $0.1 million. Flood Control Construction Fund - This Fund is used to account for the resources directed towards implementing flood control projects throughout the village. Total revenues for 2013 were $0.7 million. There were also bond proceeds totaling $9.8 million. Total expenditures for 2013 were $2.4 million. Ending fund balance is $11.7 million. Flood control projects planned for 2014 are expected to draw down the entire amount of fund balance. (See independent auditor's report.) MD&A 8 Table 3 General Fund Budgetary Changes Calendar Year 2013 (in millions) Original Revised Budget Budget Actual Revenues and Other Financing Sources Taxes $ 20.2 $ 19.9 $ 19.7 Intergovernmental 17.6 18.5 18.9 Other 6.5 6.3 6.4 Total Revenues $ 44.3 $ 44.7 $ 45.0 Expenditures and Transfers Expenditures $ 44.3 $ 45.7 $ 44.5 Net Transfers - (0.4) 0.2 Total Expenditures and Transfers $ 44.3 $ 45.3 $ 44.7 Change in Fund Balance $ - $ (0.6) $ 0.3 Other Major Funds There are three (3) other Major Funds for Fiscal Year ended December 31, 2013. These three Funds are 1) Refuse Disposal Fund, 2) Debt Service Fund, and 3) Flood Construction Fund. Refuse Disposal Fund - This Fund coordinates the Village's comprehensive municipal solid waste program. Total revenues for 2013 were $4.4 million, a decrease of $0.1 million from the prior year. Of this total revenue amount, $1.8 million is from property taxes and $2.6 million is from charges for services. Total expenditures for 2013 were $4.3 million, no change from the prior year. Ending fund balance grew $0.1 million to $2.4 million. Debt Service Fund - This Fund is used to accumulate monies for payment of principal and interest on general obligation bonds and other borrowings. Total revenues for 2013 were $2.4 million, no change from the prior year. Of this total revenue amount, $2.4 million is from property taxes and less than $0.1 million is from miscellaneous revenue. Total expenditures for 2013 were $2.5 million, an increase of $0.1 from the prior year. Ending fund balance was unchanged at $0.1 million. Flood Control Construction Fund - This Fund is used to account for the resources directed towards implementing flood control projects throughout the village. Total revenues for 2013 were $0.7 million. There were also bond proceeds totaling $9.8 million. Total expenditures for 2013 were $2.4 million. Ending fund balance is $11.7 million. Flood control projects planned for 2014 are expected to draw down the entire amount of fund balance. (See independent auditor's report.) MD&A 8 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Capital Assets At the end of 2013, the Village had a combined total of $99.8 million invested in a broad range of capital assets including village facilities, roads, bridges, water/sewer lines and machinery and equipment (see Table 4 below). The following reconciliation summarizes the changes in Capital Assets. Table 4 Capital Assets at Year End Net of Depreciation (in millions) Governmental Business -type Total Primary Activities Activities Government This amount represents a net decrease (including additions and deletions) of $2.1 million from 2012. (This space is intentionally left blank.) (See independent auditor's report.) MD&A 9 2013 2012 2.013 2012 2013 2012 Land (including right-of-way) $ 10.3 $ 10.3 $ 17.6 $ 17.6 $ 27.9 $ 27.9 Construction in Progress 0.6 0.6 0.2 0.2 0.8 0.8 Buildings & Improvements 30.0 30.8 2.0 1.9 32.0 32.7 Vehicles 3.8 3.6 - - 3.8 3.6 Machinery & Equipment 0.6 0.6 0.9 1.0 1.5 1.6 Infrastructure 28.5 29.7 5.6 5.9 34.1 35.6 Total Capital Assets $ 73.8 $ 75.6 $ 26.3 $ 26.6 $ 100.1 $ 102.2 This amount represents a net decrease (including additions and deletions) of $2.1 million from 2012. (This space is intentionally left blank.) (See independent auditor's report.) MD&A 9 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Table 5 Change in Capital Assets (in millions) Table 5 above shows the change in capital assets during 2013. This year's major additions to the capital assets include the following (in millions): Governmental Activities Storm Water System Improvements - $2.0 Vehicles for Public Safety and Public Works - $0.8 Kensington Road Improvements - $0.4 Business -Type Activities No significant additions to capital assets during 2013. More detailed information on capital asset activity can be found in Note 3 of the notes to the financial statements beginning on page 37. Debt Outstanding The Village of Mount Prospect had total long-term debt and loans payable of $40.5 million as of December 31, 2013. Long- term debt is comprised of general obligation debt, compensated absences to employees, net pension obligation and other post - employment benefits (OPEB), and loans payable. During the year, $10.8 million of general obligation debt and notes payable were issued, $1.0 million of general obligation debt was retired; $0.6 million in notes payable was retired while compensated absences increased by $0.4 million. In addition, the net pension obligation and OPEB increased a combined $0.4 million. 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 beginning on page 41. (See independent auditor's report.) MD&A 10 Governmental Business -type Activities Activities Total Beginning Balance $ 75.6 $ 26.6 $ 102.2 Additions Depreciable 3.5 0.2 3.7 Non -Depreciable 0.6 0.1 0.7 Retirements Depreciable (1.2) - (1.2) Non -Depreciable (0.6) (0.1) (0.7) Depreciation (4.7) (0.5) (5.2) Retirement 0.6 - 0.6 Ending Balance $ 73.8 $ 26.3 $ 100.1 Table 5 above shows the change in capital assets during 2013. This year's major additions to the capital assets include the following (in millions): Governmental Activities Storm Water System Improvements - $2.0 Vehicles for Public Safety and Public Works - $0.8 Kensington Road Improvements - $0.4 Business -Type Activities No significant additions to capital assets during 2013. More detailed information on capital asset activity can be found in Note 3 of the notes to the financial statements beginning on page 37. Debt Outstanding The Village of Mount Prospect had total long-term debt and loans payable of $40.5 million as of December 31, 2013. Long- term debt is comprised of general obligation debt, compensated absences to employees, net pension obligation and other post - employment benefits (OPEB), and loans payable. During the year, $10.8 million of general obligation debt and notes payable were issued, $1.0 million of general obligation debt was retired; $0.6 million in notes payable was retired while compensated absences increased by $0.4 million. In addition, the net pension obligation and OPEB increased a combined $0.4 million. 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 beginning on page 41. (See independent auditor's report.) MD&A 10 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Economic Factor's and Next Year's Budget The General Fund, the Village's main operating fund, ended with a surplus for calendar year 2013. The $0.3 million surplus maintains the fund balance at the 25% benchmark set by the Village Board. Total village revenues for 2013 continue to see positive, albeit slight, increases from the prior year. Deliberate budgetary measures involving both revenues and expenditures have allowed the Village to maintain a strong financial condition through several lean years following the significant downturn in the economy that started at the end of 2008. Continuing challenges in 2014 and years to come include rising personnel related costs (wages insurance, etc.) and the funding of the public safety pensions. Approximately 80% of the operating budget is made up of these personnel and related costs. The Village's average unemployment rate for 2013 was 6.7%. This is below the state unemployment rate of 9.2% and equal to the national unemployment. The Village's unemployment rate increased 10 basis points from the prior year. The 2014 Budget represents a 13.5% increase from the amended 2013 Budget and totals $116.9 million. The General Fund increased $0.1 million, or 0.3% from the prior year. The Village's Operating Budget (that part which funds the Village's day-to-day operations) shows an increase of 1.4% and totals $62.0 million. The Operating Budget includes all General Fund expenditures as well as refuse disposal, water and sewer service, and various special revenue activities. Request for Information This financial report is designed to provide a general overview of the Village of Mount Prospect's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to David O. Erb, Finance Director/Treasurer, Village of Mount Prospect, 50 South Emerson, Mount Prospect, Illinois 60056. (See independent auditor's report.) MD&A 11 BASIC FINANCIAL STATEMENTS 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. VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position December 31, 2013 See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position December 31, 2013 Component Business- Unit Governmental Type Public Activities Activities Totals Library ASSETS Current Assets Cash and Cash Equivalents $ 37,125,048 $ 5,699,249 $ 42,824,297 $ 7,121,643 Receivables - Net of Allowances 140,146,748 27,233,256 167,380,004 25,314,629 Property Taxes 17,367,414 1,521,807 18,889,221 10,526,286 Other Taxes 6,936,592 28,033 6,964,625 - Accounts 292,028 - 292,028 13,796 Utility Customers - 1,170,657 1,170,657 - Other 505,913 7,216 513,129 770 Due from Other Governments 889,597 483 890,080 116 Internal Balances 212,603 (212,603) - - Prepaids/Inventories 795,178 256,004 1,051,182 - Total Current Assets 64,124,373 8,470,846 72,595,219 17,662,611 Noncurrent Assets Capital Assets Nondepreciable 10,893,380 17,782,190 28,675,570 677,552 Depreciable 140,146,748 27,233,256 167,380,004 25,314,629 Accumulated Depreciation (77,227,424) (18,663,157) (95,890,581) (10,935,066) 73,812,704 26,352,289 100,164,993 15,057,115 Other Assets Deposits - Insurance 521,810 - 521,810 - Deposit with Joint Venture - 663,341 663,341 - Net Pension Asset 437,337 - 437,337 - 959,147 663,341 1,622,488 - Total Noncurrent Assets 74,771,851 27,015,630 101,787,481 15,057,115 Total Assets 138,896,224 35,486,476 174,382,700 32,719,726 DEFERRED OUTFLOWS OF RESOURCES Loss on Refunding - - - 273,736 Total Assets and Deferred Outflows of Resources 138,896,224 35,486,476 174,382,700 32,993,462 The notes to the financial statements are an integral part of this statement. 3 IMVA.111a1#1 V Current Liabilities Accounts Payable Accrued Payroll Due to Other Governments Accrued Interest Payable Claims Payable Other Payables Current Portion of Long -Term Liabilities Total Current Liabilities Noncurrent Liabilities Compensated Absences Payable Net Pension Obligation Net Other Post -Employment Benefits Obligation Payable Notes/Loans Payable General Obligation Bonds Payable - Net Total Noncurrent Liabilities Total Liabilities Governmental Activities Business- Type Activities Totals Component Unit Public Library $ 3,188,615 $ 640,134 $ 3,828,749 $ 189,802 1,533,508 159,599 1,693,107 262,616 - - - 16,243 187,069 - 187,069 36,198 849,879 - 849,879 - 547,574 23,409 570,983 - 2,276,632 46,392 2,323,024 1,164,387 8,583,277 869,534 9,452,811 1,669,246 2,976,182 185,570 3,161,752 97,546 613,449 - 613,449 - 581,981 21,087 603,068 64,382 3,061,926 - 3,061,926 - 30,764,628 - 30,764,628 11,435,000 37,998,166 206,657 38,204,823 11,596,928 46,581,443 1,076,191 47,657,634 13,266,174 DEFERRED INFLOWS OF RESOURCES Property Taxes 16,962,192 - 16,962,192 10,300,000 Total Liabilities and Deferred Inflows of Resources 63,543,635 1,076,191 64,619,826 23,566,174 NET POSITION Net Investment in Capital Assets Restricted - Debt Service Restricted - Highways and Streets Restricted - Business District Restricted - Public Safety Restricted - Refuse Disposal Restricted - Donations Restricted - Working Cash Unrestricted Total Net Position 48,152,760 26,352,289 74,505,049 2,755,851 - - - 685,524 338,861 - 338,861 - 83 - 83 - 392,722 - 392,722 - 2,314,256 - 2,314,256 - - - 271,741 - - 2,092,566 24,153,907 8,057,996 32,211,903 3,621,606 $ 75,352,589 $ 34,410,285 $ 109,762,874 $ 9,427,288 The notes to the financial statements are an integral part of this statement. 4 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2013 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 Component Unit - Public Library Program Revenues Charges Operating Capital for Grants/ Grants/ Expenses Services Contributions Contributions $ 7,356,433 $ 6,908,188 $ - $ 283,233 29,771,502 1,583,328 26,857 1,907 18,570,593 269,066 2,027,853 3,612 4,459,897 12,764 - - 1,868,952 - 301,955 - 443,171 28,456 - - 1,016,337 - - - 63,486,885 8,801,802 2,356,665 288,752 12,078,221 11,507,264 - - 346,303 234,458 - - 12,424,524 11,741,722 - - $ 75.911.409 $ 20,543,524 $ 2.356,665 $ 288,752 $ 9.031.881 $ 159,722 $ - $ General Revenues Taxes Property Utility Business District Tax Home Rule Sales Food and Beverage Real Estate Transfer Municipal Motor Fuel Other Hotel/Motel Intergovernmental - Unrestricted State Sales and Use Income Taxes Replacement Taxes Charitable Games Tax Interest Miscellaneous Change in Net Position Net Position - Beginning Net Position - Ending The notes to the financial statements are an integral part of this statement. 7 Net Exp_ ense/Revenue $ (165,012) $ - (28,159,410) - Component Primary Government Unit Governmental Business -Type Public Activities Activities Totals Library $ (165,012) $ - $ (165,012) $ - (28,159,410) - (28,159,410) - (16,270,062) - (16,270,062) - (4,447,133) - (4,447,133) - (1,566,997) - (1,566,997) (414,715) - (414,715) - (1,016,337) - (1,016,337) - (52,039,666) - (52,039,666) - - (570,957) (570,957) - - (111,845) (111,845) - - (682,802) (682,802) - (52,039,666) (682,802) (52,722,468) - (8,872,15 18,890,542 1,507,661 20,398,203 10,088,851 3,891,713 - 3,891,713 - 317,527 - 317,527 - 5,03 5,998 104,050 5,140,048 - 1,047,436 - 1,047,436 - 853,617 - 853,617 - 360,802 - 360,802 - 2955405 - 295,405 - 395,405 - 395,405 - 13,254,358 - 13,254,358 - 5,161,051 - 5,161,051 - 396,999 - 396,999 50,911 400 - 4,090 - 29,785 3,387 33,172 3,356 436,703 90,713 527,416 86,905 50,371,431 1,705,811 52,077,242 10,230,023 (1,668,235) 1,023,009 (645,226) 1,357,864 77,020,824 33,387,276 110,408,100 8,069,424 $ 75.352.589 $ 34.410.285 $ 109,762,874 $ 9,427,288 The notes to the financial statements are an integral part of this statement. 6 VILLAGE OF MOUNT PROSPECT, ILLINOIS Balance Sheet - Governmental Funds December 31, 2013 LIABILITIES Accounts Payable General ASSETS 1,429,589 Cash and Investments $ 6,886,656 Receivables - Net of Allowances 45,309 Property Taxes 14,543,097 Other Taxes 5,711,586 Accounts _ Other 492,912 Due from Other Governments 53,602 Due from Other Funds 212,603 Prepaids/Inventories 297,762 Total Assets $ 28,198,218 LIABILITIES Accounts Payable $ 334,043 Accrued Payroll 1,429,589 Due to Other Funds 114,659 Other Payables 45,309 Total Liabilities 1,923,600 DEFERRED INFLOWS OF RESOURCES Property Taxes 14,396,036 Total Liabilities and Deferred Inflows of Resources 16,319,636 FUND BALANCES Nonspendable 297,762 Restricted _ Assigned Unassigned 11,580,820 Total Fund Balances 11,878,582 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 28,198,218 The notes to the financial statements are an integral part of this statement. 7 Flood Refuse Debt Control Disposal Service Construction Nonmajor Totals $ 2,231,180 348,023 292,028 15,052 130,861 $ 113,267 2,233,550 830 $ 11,893,973 237,515 56,438 $ 5,169,622 242,744 987,491 8,397 752,770 773 $ 26,294,698 17,367,414 6,936,592 292,028 501,309 877,862 212,603 430,226 $ 3,017,144 $ 2,347,647 $ 12:187,926 $ 7.161.797 $ 52.912.732 $ 213,394 $ - $ 490,608 $ 1,945,641 $ 2,983,686 18,633 - - 2,490 1,450,712 - - - - 114,659 - - 25,000 448,728 519,037 232,027 - 515,608 2,396,859 5,068,094 340,000 2,226,156 - - 16,962,192 572,027 2,226,156 515,608 2,396,859 22,030,286 130,861 830 - 773 430,226 2,314,256 120,661 - 731,666 3,166,583 - - 11,672,318 4,033,188 15,705,506 - - - (689) 11,580,131 2,445,117 121,491 11.672,318 4,764,938 30,882,446 3.017,144 $ 2347,647 $ 11187.926 $ 7.161.797 52.912.732 The notes to the financial statements are an integral part of this statement. 8 VILLAGE OF MOUNT PROSPECT, ILLINOIS Reconciliation of Total Governmental Fund Balance to Net Position - Governmental Activities December 31, 2013 Total Governmental Fund Balances 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. 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 Assets. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated Absences Payable Net Pension Asset Net Pension Obligation Payable Net Other Post -Employment Benefit Obligation General Obligation Bonds Payable - Net of Unamortized Items Loan Contracts Payable Installment Notes Payable Accrued Interest Payable Net Position of Governmental Activities The notes to the financial statements are an integral part of this statement. $ 30,882,446 69,747,325 14,587,299 (3,566,875) 437,337 (613,449) (575,285) (31,744,628) (1,139,512) (2,475,000) (187,069) $ 75,352.589 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2013 See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2013 Expenditures Current General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Debt Issuance Transfers In Transfers Out Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending The notes to the financial statements are an integral part of this statement. 10 5,851,590 29,175,170 7,341,461 142,062 1,569,824 435,931 44,516,038 480,500 36,865 (203,112) (166,247) 314,253 11,564,329 $ 11,878,582 General Revenues Taxes $ 19,705,258 Licenses, Permits and Fees 3,589,368 Intergovernmental 18,863,089 Charges for Services 1,858,829 Fines and Forfeits 430,960 Interest 6,561 Miscellaneous 542,473 Total Revenues 44,996,538 Expenditures Current General Government Public Safety Highways and Streets Health Welfare Culture and Recreation Capital Outlay Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Debt Issuance Transfers In Transfers Out Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending The notes to the financial statements are an integral part of this statement. 10 5,851,590 29,175,170 7,341,461 142,062 1,569,824 435,931 44,516,038 480,500 36,865 (203,112) (166,247) 314,253 11,564,329 $ 11,878,582 Flood Refuse Debt Control Disposal Service Construction Nonmaior Totals $ 1,846,553 2,550,158 607 7,537 4,404,855 $ 2,392,792 575 43,501 2,436,868 $ 625,738 6,341 108,438 740,517 $ 6,518,104 2,240,820 2,667 465,247 9,226,838 $ 31,088,445 3,589,368 21,103,909 4,408,987 430,960 16,751 1,167,196 61,805,616 - - - 1,600,557 7,452,147 - - - 58,392 29,233,562 - - - 1,753,385 9,094,846 4,315,486 - - - 4,457,548 - - - 299,128 1,868,952 - - - - 435,931 - - 2,372,487 6,215,927 8,588,414 - 1,537,312 - - 1,537,312 - 913,882 - - 913,882 4,315,486 2,451,194 2,372,487 9,927,389 63,582,594 89,369 (14,326) (1,631,970) (700,551) (1,776,978) - - 9,800,000 - 9,800,000 - - - 203,112 239,977 - - - (36,865) (239,977) - _ 9,800,000 166,247 9,800,000 89,369 (14,326) 8,168,030 (534,304) 8,023,022 2,355,748 135,817 3,504,288 5,299,242 22,859,424 $ 2,445,117 $ 121,491 $ 11,672,318 $ 4,764,938 $ 30,882,446 The notes to the financial statements are an integral part of this statement. 11 VILLAGE OF MOUNT PROSPECT, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities For the Fiscal Year Ended December 31, 2013 Net Change in Fund Balances - Total Governmental Funds Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital Outlays Depreciation Expense 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. Additions to Compensated Absences Payable Additions to Net Pension Obligation Payable Deductions to Net Pension Asset Additions to Net Other Post -Employment Benefit Obligations Amortization of Premium on Refunding Issuance of General Obligation Bonds Payable Retirement of General Obligation Bonds Payable Retirement of Loan Contracts Payable Changes to accrued interest on long-term debt in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. 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. Changes in Net Position of Governmental Activities The notes to the financial statements are an integral part of this statement. 12 $ 8,023,022 2,431,115 (4,110,167) (360,489) (68,956) (97,328) (286,926) 6,227 (9,800,000) 945,000 592,312 (108,682) 1,166,637 $ (1,668,235) VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2013 See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2013 ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Property Taxes Other Taxes Accounts - Billed Accounts - Unbilled Other Due from Other Governments Prepaids Inventories Total Current Assets Noncurrent Assets Capital Assets Nondepreciable Depreciable Accumulated Depreciation Other Assets Deposits - Insurance Deposit with Joint Venture Total Noncurrent Assets Total Assets Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service $ 5,382,441 $ 316,808 $ 5,699,249 $ 10,830,350 1,521,807 - 1,521,807 - - 28,033 28,033 - 524,750 - 524,750 - 645,907 - 645,907 - 7,216 - 7,216 4,604 483 - 483 11,735 8,500 - 8,500 73,621 247,504 - 247,504 291,331 8,338,608 344,841 8,683,449 11,211,641 17,549,836 232,354 17,782,190 248,574 26,868,456 364,800 27,233,256 11,782,684 (18,298,357) (364,800) (18,663,157) (7,965,879) 26,119,935 232,354 26,352,289 4,0651,379 - - - 521,810 663,341 - 663,341 - 663,341 - 663,341 521,810 26,783,276 232,354 27,015,630 4,587,189 35,121,884 577,195 35,699,079 15,798,830 The notes to the financial statements are an integral part of this statement. 13 Governmental Business -Type Activities - Enterprise Activitie Water and Internal Sewer Nonmajor Totals Service LIABILITIES Current Liabilities Accounts Payable $ 630,660 $ 9,474 $ 640,134 $ 90,270 Accrued Payroll 155,086 4,513 159,599 82,796 Claims Payable - - - 849,879 Due to Other Funds - 212,603 212,603 - Other Payables - 23,409 23,409 28,537 Compensated Absences Payable 46,055 337 46.392 30,671 Total Current Liabilities 831,801 250,336 1.082.137 1,082,153 Noncurrent Liabilities Compensated Absences Payable 184,221 1,349 185,570 122,682 Net Other Post -Employment Benefits Obligation Payable 19,409 1,678 21,087 6,696 Total Noncurrent Liabilities 203,630 3,027 206,657 129,378 Total Liabilities 1,035,431 253,363 1,288,794 1,211,531 NET POSITION Net Investment in Capital Assets 26,119,935 232,354 26,352,289 4,065,379 Unrestricted 7,966,518 91,478 8,057,996 10,521,920 Total Net Position $ 34,086.453 $ 323.832 $ 34:410,285 $ 14,587,299 The notes to the financial statements are an integral part of this statement. 14 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds For the Fiscal Year Ended December 31, 2013 Operating Revenues Charges for Services Contributions Miscellaneous Total Operating Revenues Operating Expenses Administration and Maintenance Insurance and Claims Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Property Taxes Home Rule Sales Tax Interest Income Other Income Disposal of Capital Assets Change in Net Position Net Position - Beginning Net Position - Ending Governmental Business -Type Activities - Enterprise Activities Water and Internal Sewer Nonmajor Totals Service $ 11,507,264 $ 234,458 $ 11,741,722 $ 9,718,456 - - - 1,280,867 - - - 13.517 11,507,264 234,458 11,741,722 11,012,840 11,622,593 346,303 11,968,896 2,753,844 - - - 6,554,898 455,628 - 455,628 621,443 12,078,221 346,303 12,424,524 9,930,185 (570,957) (111,845) (682,802) 1,082,655 1,507,661 - 1,507,661 - - 104,050 104,050 - 3,040 347 3,387 13,034 109,934 - 109,934 - (19,221) - (19,221) 70,948 1,601,414 104,397 1,705,811 83,982 1,030,457 (7,448) 1,023,009 1,166,637 33,055,996 331,280 33,387,276 13,420,662 $ 34.086,453 $ 323,832 $ 34.410.285 $ 14,587,299 The notes to the financial statements are an integral part of this statement. 15 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended December 31, 2013 Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Depreciation Other Income (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities $ 5,382 441 $ 316,808 $ 5,699,249 $ 10,830,350 $ (570,957) $ (111,845) $ (682,802) $ 1,082,655 455,628 - 455,628 621,443 1,617,595 104,050 1,721,645 - Governmental 98,073 321,773 Business -Type Activities - Enterprise Funds Activities Water and Internal Sewer Nonmajor Totals Service Cash Flows from Operating Activities Receipts from Customers and Users $ 13,224,188 $ 337,252 $ 13,561,440 $ - Interfund Services Provided - - - 11,334,613 Payments to Suppliers (10,121,725) (303,785) (10,425,510) (8,766,989) Payments to Employees (1,819,038) (62,534) (1,881,572) (899,495) 1,283,425 (29,067) 1,254,358 1,668,129 Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets (17,800) - (17,800) 90,948 Purchase of Capital Assets (241963) - (242,963) (509.163) (260,763) - (260,763) (418,215) Cash Flows from Investing Activities Interest Received 3,040 347 3,387 13,034 Net Change in Cash and Cash Equivalents 1,025,702 (28,720) 996,982 1,262,948 Cash and Cash Equivalents - Beginning 4,356,739 345,528 4,702,267 9.567,402 Cash and Cash Equivalents - Ending Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) Adjustments to Reconcile Operating Income Income to Net Cash Provided by (Used in) Operating Activities: Depreciation Other Income (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities $ 5,382 441 $ 316,808 $ 5,699,249 $ 10,830,350 $ (570,957) $ (111,845) $ (682,802) $ 1,082,655 455,628 - 455,628 621,443 1,617,595 104,050 1,721,645 - 99,329 (1,256) 98,073 321,773 (318,170) (20,016) (338,186) (357,742) 1.283.425 (29,067) 1.254.358 1.668.129 The notes to the financial statements are an integral part of this statement. 16 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Net Position - Fiduciary Funds December 31, 2013 NET POSITION Held in Trust for Pension Benefits $ 109,092,391 The notes to the financial statements are an integral part of this statement. 17 Pension Trust Agency ASSETS Cash and Cash Equivalents $ 4,017,027 $ 1,511,610 Investments State and Local Obligations 3,790,747 - U.S. Government and Agency Obligations 20,192,842 - Corporate Bonds and Obligations 17,657,424 - Mutual Funds 63,102,557 - Receivables - Net of Allowances Accrued Interest 258,156 - Prepaids 1,699 - Due from Other Funds 114,659 - Total Assets 109,135,111 1,511,610 LIABILITIES Accounts Payable 42,720 - Deposits Payable - 1,504,273 Other Liabilities - 7,221 Due to Library - 116 Total Liabilities 42,720 $ 1,511,610 NET POSITION Held in Trust for Pension Benefits $ 109,092,391 The notes to the financial statements are an integral part of this statement. 17 VILLAGE OF MOUNT PROSPECT, ILLINOIS Statement of Changes in Net Position - Fiduciary Funds For the Fiscal Year Ended December 31, 2013 Additions Contributions - Employer Contributions - Plan Members Total Contributions Investment Income Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment Income Miscellaneous Income Total Additions Deductions Administration Benefits and Refunds Total Deductions Change in Net Position Net Position - Beginning Net Position - Ending The notes to the financial statements are an integral part of this statement. 18 Pension Trust $ 5,002,385 1,402,872 6,405,257 1,495,132 13,025,434 14,520,566 (182,462) 14,33 8,104 1,841 20,745,202 95,345 7,713,672 7,809,017 12,936,185 96,156,206 $ 109,092,391 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Mount Prospect, Illinois (Village) 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 Discretely Presented Component Unit: Mount Prospect Public Library 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. Police Pension Employees Retirement System The Village's sworn police employees participate in the Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed by a five -member pension board. Two members appointed by the Village's President, one elected pension beneficiary and two elected police employees constitute the pension board. The participants are required to contribute a percentage of salary as established by state statute and the Village is obligated to fund all remaining PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of the Village's contribution levels. Although it is legally separate from the Village, the PPERS is reported as if it were part of the primary Village because its sole purpose is to provide retirement benefits for the Village's police employees. The PPERS is reported as a pension trust fund. 19 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued REPORTING ENTITY — Continued Firefighters' Pension Employees Retirement System The Village's sworn full-time firefighters participate in the Firefighters' Pension Employees Retirement System (FPERS). FPERS functions for the benefit of these employees and is governed by a five - member pension board, with two members appointed by the Village's President, two elected from active participants of the Fund, and one elected from the retired members 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 the Village's 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 full-time firefighters. The FPERS is reported as a pension trust fund. Discretely Presented Component Unit Discretely presented component units are separate legal entities that meet the component unit criteria described above but do not meet the criteria for blending. Mount Prospect Public Library The Mount Prospect Public Library has a separate elected board and provides service to residents, generally within the geographic boundaries of the Village. The Library Board of Trustees annually determines its budget and resulting tax levy. Upon approval of the Village, the levy is submitted to the County. All debt of the Library is secured by the full faith and credit of the Village. The Library is considered a component unit of the Village of Mount Prospect for purposes of these financial statements. A copy of the Library's report may be obtained by writing to the Mount Prospect Public Library, 10 South Emerson Street, Mount Prospect Illinois 60056. 20 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 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, highway 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 first 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 (general government, community development, public safety, public works, etc.). The functions are supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges for services, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, which include 1) changes 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, sales and use taxes, certain intergovernmental revenues, permits and charges for services, 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. 21 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 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 nonmajor funds are combined in a column in the fund financial statements. A fund is considered major if it is the 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 fund 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 is used to account for all financial resources except those required to be accounted for in another fund. 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 Refuse Disposal Fund, and eight nonmajor special revenue funds. The Refuse Disposal Fund accounts for the revenues and expenditures associated with providing solid waste collection services. Financing is provided by property taxes, user fees and recycling income. The Refuse Disposal Fund reports charges for services (committed) and property taxes (restricted) as the major revenue sources for the fund. 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. The Debt Service Fund is treated as a major fund and accounts for the servicing of general long-term debt not being financed by proprietary funds. 22 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued BASIS OF PRESENTATION — Continued Fund Financial Statements — Continued Governmental Funds — Continued Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The Village maintains one major capital projects fund, the Flood Control Construction Fund, and four nonmajor capital projects funds. The Flood Control Construction Fund is used to account for the resources to implement flood control projects throughout the Village. Financing is being provided by the sale of general obligation bonds, grants, interest income and by installment loans from the Illinois Environmental Protection Agency (IEPA). 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. The following is a description of the proprietary funds of the Village: Enterprise funds are required to account for operations for which a fee is charged to external users for goods or services and the activity is (a) 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 proprietary fund, the Water and Sewer Fund, which accounts for the activities of the water and sewer operations. The Village operates sewerage lift stations, relief stations and wastewater collection system 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 service 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. 23 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 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 agency capacity by the Village 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 by the Village 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. Agency funds are used to account for assets held by the Village in a purely custodial capacity. The Village maintains three agency funds. The Escrow Deposit Fund is used to account for refundable deposits held by the Village to ensure the completion of public improvements. The money is held by the Village until the improvements are completed. The Flexcomp Escrow Fund is used to account for employee payroll deductions pursuant to a Section 125 and Section 132 flexible compensation plans. The money is reimbursed to employees for qualified medical and dependent care expenses, parking and transportation expenses. The Library Bonds Escrow Fund is used to account for the accumulation of resources for the 2002 Library bond issue payments. The Village's fiduciary funds are presented in the fiduciary fund financial statements by type (agency and pension trust). Since by definition these assets are being held for the benefit of a third party (other local governments, private parties, pension participants, etc.) 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 -like 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. 24 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING — Continued Measurement Focus — Continued 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, pension trust, and agency funds utilize an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows and liabilities/deferred inflows (whether current or noncurrent) associated with their activities are reported. Proprietary, pension trust, and agency fund equity is classified as net position. Agency funds are not involved in the measurement of results of operations; therefore, measurement focus is not applicable to them. Basis of Accounting In the government -wide Statement of Net Position and Statement of Activities, both 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, franchise taxes, licenses, 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, pension trust and agency 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. 25 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING — Continued Basis of Accounting — Continued 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 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 include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY Cash and Investments Cash and cash equivalents on the Statement of Net Position are considered to be cash on hand, demand deposits, and 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 reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on national exchanges are valued at the last reported sales price. Investments that do not have any established market, if any, are reported at estimated fair value. 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 utility charges as their major receivables. 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. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government -wide financial statements. 0 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY — Continued Prepaids/Inventories Prepaids/inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The costs 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. Restricted (Noncurrent) Assets Certain deposits of the Water and Sewer Fund are recorded as restricted assets because their use is restricted by an intergovernmental agreement with the Northwest Suburban Municipal Joint Action Water Agency. Also, certain deposits of the Risk management Fund are recorded as restricted assets because their use is restricted by an agreement with the various third -party administrators. 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 ($3,000 for the component unit) and infrastructure, buildings and improvements with an original cost of over $50,000 are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. 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, stormsewers and bridges are capitalized. The valuation basis for general capital assets are 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 estimated fair market value on the date donated. 27 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY — Continued Capital Assets — Continued Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives: Buildings and Improvements 20 — 50 Years Machinery and Equipment 2 — 20 Years Vehicles 2 — 20 Years Infrastructure 15 — 50 Years Compensated Absences The Village accrues accumulated unpaid vacation and associated employee -related costs when earned (or estimated to be earned) by the employee. In accordance with GASB Statement No. 16, no liability is recorded for nonvesting accumulation rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave that is estimated to be taken as "terminal leave" prior to retirement. All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Long -Term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenditures/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. 28 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY — Continued 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 legislations. 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. The proposed budget is presented to the governing body for review. The governing body holds public hearings and may add to, subtract from, or change appropriations, but may not change the form of the budget. The Village Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the governing body. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, budget amendments were approved by the Village Board. The final budget figures included in this report reflect all budget amendments made during the year. 29 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY — Continued DEFICIT FUND EQUITY The following funds had deficit fund equity for the fiscal year: Fund Deficit Parking System Revenue $ 202,602 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. The Village's investment policy authorizes the Village to invest in all investments allowed by Illinois Compiles Statutes. Permitted Deposits and Investments — Statutes authorize the Village to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating services, Illinois Funds and the Illinois Metropolitan Investment Fund. The deposits and investments of the Pension Funds are held separately from those of other Village funds. Statutes authorize the Pension Funds 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; State of Illinois Bonds; pooled accounts managed by the Illinois Public Treasurer, 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 30 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued DEPOSITS AND INVESTMENTS — Continued 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 provided the investment in separate accounts does not exceed ten percent of the pension fund's net assets. Pension funds 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's net assets in common and preferred stocks that meet specific restrictions. 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. Although not registered with the SEC, Illinois Funds operates in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at the share price, the price for which the investment could be sold. The Illinois Metropolitan Investment Fund (IMET) is a non -for-profit investment trust formed pursuant to the Illinois Municipal Code. IMET is managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an Investment Company. Investments in IMET are valued at the share price, the price for which the investment could be sold. Village Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits. At year-end, the carrying amount of the Village's deposits for governmental and business - type activities totaled $25,584,279 and the bank balances totaled $29,933,599. Investments. The Village has the following investment fair values and maturities: Investment Illinois Funds Illinois Metropolitan Investment Fund 31 Fair Value $ 15,221,762 Investment Maturities (in Years) Less Than 1 $ 15,221,762 2,018,256 2,018,256 $ 17,240,018 $ 17,240,018 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued DEPOSITS AND INVESTMENTS — Continued Village Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk — Continued Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. It is the policy of the Village to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Village and conforming to all state and local statutes governing the investment of public funds, using the `prudent person' standard for managing the overall portfolio. The primary objectives of the policy are, in order of priority, legality, safety of principal and rate of return. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Village's policy limits its exposure to credit risk by permitting investments in only those securities allowed under law and by specifically prohibiting investments in leveraged or derivative securities. Illinois Funds and IMET are rated AAA. 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. 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 basis with the underlying investments held by an independent third -party custodian and evidenced by safekeeping receipts and a written custodial agreement. Illinois Funds, and IMET 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 investments to avoid unreasonable risk. No financial institution shall hold more than 50% of the Village's investment portfolio, exclusive of any securities held in safekeeping; Illinois funds shall not exceed 50% of the investment portfolio and IMET shall not exceed 50% of the investment portfolio. At year-end, the Village's investments are in compliance with its investment policy as it relates to concentration risk. 32 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued DEPOSITS AND INVESTMENTS — Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits. At year-end, the carrying amount of the Fund's deposits totaled $2,102,922 and the bank balances totaled $2,117,778. Investments. The Fund has the following investment fair values and maturities: Investment Maturities (in Years) Fair Less Than More Than Investment Tvve Value 1 1 to 5 6 to 10 10 U. S. Treasuries $ 2,706,977 $ 699,384 $ 1,254,913 $ 752,680 $ - U. S. Agencies 7,321,351 826,312 820,426 913,778 4,760,835 State, Local and Municipal Bonds 2,375,581 - 524,540 291,338 1,559,703 Corporate Bonds and Obligations 9,126,012 265,134 5,223,869 3,498,401 138,608 Illinois Funds 260,551 260,551 - - - $ 21,790,472 $ 2,051,381 $ 7,823,748 $ 5,456,197 $ 6.459.146 Interest Rate Risk. The Fund's investment policy states that the investment portfolio will limit its exposure to interest rate risk by structuring the portfolio to provide liquidity for all reasonably anticipated operating requirements while providing a reasonable rate of return based on the current market with a minimum return of 4% to 6% desired during the market cycle. In addition, no investment in a fixed income security shall have a maturity of greater than 30 years from the time of purchase. Credit Risk. The Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. Illinois Funds is rated AAA. The U.S. Treasury and U.S. Agency obligations that had ratings were rated AAA and the municipal bonds and corporate bonds that were rated ranged from BBB to AAA. 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 amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance. 33 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued DEPOSITS AND INVESTMENTS — Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk — Continued For an investment, this is the risk that in the event of the failure of the counterparty, the Fund 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 Fund's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment basis with the underlying investments held by an independent third -party custodian and evidenced by safekeeping receipts. Illinois Funds are not subject to custodial credit risk. Concentration Risk. The Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities' custodians of the Fund, shall hold more than 10% of the Fund's portfolio at any time. Neither shall Illinois Funds hold more than 10% of the Fund's portfolio at any time. In addition, the following allocations are desired: depository accounts and money market mutual funds at 1% to 5%, fixed income securities at 50% to 54% with the remainder in equities, and equity mutual funds. At December 31, 2013, the Fund's investment in mutual funds exceeded 5% of the Fund's total investments. This is in compliance with the Fund's investment policy. Firefighters' Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits. At year-end, the carrying amount of the Fund's deposits totaled $1,460,593 and the bank balances totaled $1,461,792. Investments. The Fund has the following investment fair values and maturities: Investment Maturities (in Years) Fair Less Than More Than Investment Tye Value 1 1 to 5 6 to 10 10 U. S. Treasuries $ 2,906,659 $ 175,410 $ 685,102 $ 2,046,147 $ - U. S. Agencies 7,257,855 330,302 1,206,969 1,600,871 4,119,713 State, Local and Municipal Bonds 1,415,166 181,156 855,122 378,888 - Corporate Bonds and Obligations 8,531,412 418,078 4,592,308 3,200,987 320,039 Illinois Funds 192,962 192,962 - - - $ 20,304,054 $ 1,297,908 $ 7,339.501 $ 7.226.893 $ 4.439,752 34 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued DEPOSITS AND INVESTMENTS — Continued Firefighters' Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk — Continued Interest Rate Risk. The Fund's investment policy states that the investment portfolio will limit its exposure to interest rate risk by structuring the portfolio to provide liquidity for all reasonably anticipated operating requirements while providing a reasonable rate of return based on the current market with a minimum return of 4% to 6% desired during the market cycle. In addition, no investment in a fixed income security shall have a maturity of greater than 30 years from the time of purchase. Credit Risk. The Fund's investment policy does not address the management of credit risk other than to limit investments to those allowed by state statutes. Illinois Funds is rated AAA. The U.S. Treasury and U.S. Agency obligations that had ratings were rated AAA and the municipal bonds and corporate bonds that were rated ranged from BBB to AAA. 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 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 Fund 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 Fund's investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment basis with the underlying investments held by an independent third -party custodian and evidenced by safekeeping receipts. Illinois Funds are not subject to custodial credit risk. Concentration Risk. The Fund's investment policy requires diversification of investment to avoid unreasonable risk. No financial institution, except any securities' custodians of the Fund, shall hold more than 10% of the Fund's portfolio at any time. Neither shall Illinois Funds hold more than 10% of the Fund's portfolio at any time. In addition, the following allocations are desired: depository accounts and money market mutual funds at 1% to 5%, fixed income securities at 50% to 54% with 45% in equities, and equity mutual funds. At December 31, 2013, the investments in mutual funds exceeded 5% of the Fund's total investments. This is in compliance with the Fund's investment policy. 35 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued PROPERTY TAXES Property taxes for 2013 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. The County collects such taxes and remits them periodically. CAPITAL ASSETS Governmental Activities Governmental capital asset activity for the year was as follows: Less Accumulated Depreciation Buildings Beginning 758,505 - 8,035,836 Ending 278,400 Balances Increases Decreases Balances Nondepreciable Capital Assets 615,065 7,804,918 Machinery and Equipment 591,656 107,495 Land/Land Right of Way $ 10,291,446 $ - $ - $ 10,291,446 Construction in Progress 583,824 601,934 583,824 601,934 10,875,270 601,934 583,824 10,893,380 Depreciable Capital Assets Buildings 38,009,332 - - 38,009,332 Improvements Other than Buildings 384,000 - - 384,000 Vehicles 11,368,223 844,413 635,066 11,577,570 Machinery and Equipment 1,250,776 - - 1,250,776 Infrastructure 86,856,747 2,078,200 9,877 88,925,070 137,869,078 2,922,613 644,943 140,146,748 Less Accumulated Depreciation Buildings 7,277,331 758,505 - 8,035,836 Improvements Other than Buildings 278,400 19,200 - 297,600 Vehicles 7,817,846 602,137 615,065 7,804,918 Machinery and Equipment 591,656 107,495 - 699,151 Infrastructure 57,155,079 3,244,273 9,433 60,389,919 73,120,312 4,731,610 624,498 77,227,424 Total Net Depreciable Capital Assets 64,748,766 (1,808,997) 20,445 62,919,324 Total Net Capital Assets $ 75,624,036 $ (1,207,063) $ 604.269 $ 73.812.704 36 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 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 $ 400,657 Public Safety 381,473 Highways and Streets 3,318,448 Health 2,349 Culture and Recreation 7,240 Internal Service 621,443 $ 4,731,610 Business -Type Activities Business -type capital asset activity for the year was as follows: 37 Beginning Ending Balances Increases Decreases Balances Nondepreciable Capital Assets Land $ 17,551,172 $ - $ - $ 17,551,172 Construction in Progress 182,815 71,419 23,216 231,018 17,733,987 71,419 23,216 17,782,190 Depreciable Capital Assets Buildings and Improvements 4,499,808 194,648 - 4,694,456 Machinery and Equipment 3,646,309 - - 3,646,309 Infrastructure 18,910,378 112 17,999 18,892,491 27,056,495 194,760 17.999 27,233,256 Less Accumulated Depreciation Buildings and Improvements 2,586,321 72,826 - 2,659,147 Machinery and Equipment 2,597,369 134,596 - 2,731,965 Infrastructure 13,040,417 248,206 16.578 13,272,045 18,224,107 455,628 16,578 18,663,157 Total Net Depreciable Capital Assets 8,832,388 (260,868) 1,421 8,570,099 Total Net Capital Assets $ 26,566,375 $ (189,449) $ 24.637 $ 26,352,289 37 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 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 $ 455,628 • Discretely Presented Component Unit Component Unit capital asset activity for the year was as follows: Nondepreciable Capital Assets Land and Land Improvements Depreciable Capital Assets Buildings and Improvements Equipment Books Less Accumulated Depreciation Buildings and Improvements Equipment Books Beginning Ending Balances Increases Decreases Balances $ 677,552 $ - $ - $ 677,552 17,543,076 - - 17,543,076 1,141,527 67,913 10,087 1,199,353 6,521,778 367,090 316,668 6,572,200 25,206,381 435,003 326,755 25,314,629 4,017,342 438,577 812,406 86,282 5,500,343 406,254 - 4,455,919 9,470 889,218 316,668 5,589,929 10,330,091 931,113 326,138 10,935,066 Total Net Depreciable Capital Assets 14,876,290 (496,110) 617 14,379,563 Total Net Capital Assets $ 15,553,842 $ (496,110) $ 617 $ 15,057,115 Depreciation expense was charged to component unit activities as follows: Mount Prospect Public Library $ 931,113 W1.1i VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund Balances Individual fund advances are as follows: Receivable Fund Payable Fund Amount General Nonmajor Business -Type $ 212,603 Police Pension General 61,251 Firefighters' Pension General 53,408 $ 327,262 The purposes of the significant interfund receivables/payables are as follows: • $212,603 due to the General Fund from Nonmajor Business -Type Funds. The balance represents an operating loan to support operations of the Parking System Revenue Fund. Although the cash shortage continues to be on going, the fund was able to reduce the amount in 2013. Funding alternatives that are being considered include a parking rate increase to eliminate the need for further support and address the amount due. $61,251 due to the Police Pension Fund from the General Fund. This was the contributions due for 2013 tax collections received in January and February 2014. • $53,408 due to the Firefighters' Pension Fund from the General Fund. This was the contributions due for 2013 tax collections received in January and February 2014. Interfund Transfers Interfund transfers for the year consisted of the following: Transfer In Transfer Out Amount General Nonmajor Governmental $ 36,865 Nonmajor Governmental General 203,112 239,977 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 39 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued 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 are direct obligations and pledge the full faith and credit of the Village. General obligation bonds have been issued for governmental activities. General obligation bonds currently outstanding are as follows: M Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances $10,000,000 General Obligation Bonds of 2009, due in annual installments of $200,000 to $1,955,000 plus interest at 3.00% to 4.50% through December 1, Debt 2028. Service $ 9.800.000 $ - $ - $ 9,800,000 $3,430,000 General Obligation Refunding Bonds of 2009B, due in annual installments of $230,000 to $370,000 plus interest at 2.50% to 3.75% Debt through December 1, 2021. Service 2,920,000 - 285,000 2,635,000 $2,650,000 Taxable General Obligation Bonds of 2009C, due in annual installments of $25,000 to $1,000,000 plus interest at 3.00% to 5.75% through Debt December 1, 2029. Service 2,650,000 - - 2,650,000 M VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued LONG-TERM DEBT — Continued General Obligation Bonds — Continued Issue Fund Debt Retired by $5,160,000 General Obligation Refunding Bonds of 201113, due in annual installments of $40,000 to $775,000 plus interest at 2.52% through December 1, Debt 2020. Service $2,975,000 General Obligation Refunding Bonds of 2012C, due in annual installments of $610,000 to $865,000 plus interest at 3.10% through Debt December 1, 2022. Service $9,800,000 General Obligation Bonds of 2013, due in annual installments of $555,000 to $885,000 plus interest at 3.00% to 4.125% through December 1, Debt 2033. Service Beginning Ending Balances Issuances Retirements Balances $ 5,055,000 $ - 2,365,000 - $ 40,000 $ 5,015,000 620,000 1,745,000 9,800,000 - 9,800,000 $ 22,790,000 $ 9,800,000 $ 945,000 31,645,000 Plus: Unamortized Bond Premium 99,628 01 $ 31,744,628 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued LONG-TERM DEBT — Continued Loan Contracts Payable Issue Fund Debt Retired by Beginning Ending Balances Issuances Retirements Balances $558,474 IEPA Flood Loan (LIT 0856) Contract Payable of 1994, due in semi annual installments of $33,539 to $38,320 plus interest at 3.36% through July Debt 12, 2013. Service $ 38,320 $ - $ 38,320 $ - $3,695,354 IEPA Flood Loan (1,17-0744) Contract Payable of 1994, due in semi annual installments of $126,134 to $246,050 plus interest at 3.36% Debt through May 1, 2014. Service 372,184 - 246,050 126,134 $1,711,672 IEPA Flood Loan (1,17-0857) Contract Payable of 1994, due in semi annual installments of $99,329 to $117,337 plus interest at 3.36% Debt through December 10, 2014. Service 230,827 - 113,491 117,336 $1,203,550 IEPA Flood Loan (1,17-0855) Contract Payable of 1997, due in semi annual installments of $62,825 to $79,035 plus interest at 2.89% Debt through November 1, 2017. Service 373,445 - 70,466 302,979 $1,760,422 IEPA Flood Loan (1,17-1087) Contract Payable of 1999, due in semi annual installments of $57,498 to $112,771 plus interest at 2.625% Debt through June 3, 2019. Service 692,048 - 98,985 593,063 $ 1,706,824 $ - $ 567,312 $ 1,139,512 42 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued LONG-TERM DEBT — Continued Installment Notes Payable The Village enters into installment notes payable to provide funds for acquisition of capital assets. Installment notes payable have been issued for the governmental activities. Installment notes payable are direct obligations and pledge the full faith and credit of the Village. Installment notes payable currently outstanding are as follows: Issue Fund Debt Retired by Beginning Ending Balances Issuances Retirements Balances $2,500,000 Installment Note Payable of 2012, due in annual installments of $25,000 to $590,000 plus interest at 0.91% Debt through December 1, 2019. Service $ 2,500,000 $ - $ 25,000 $ 2,475,000 Long -Term Liability Activity Changes in long-term liabilities during the fiscal year were as follows: Amounts Beginning Ending Due within of Debt Balances Additions Deductions Balances One Year Governmental Activities Compensated Absences $ 3,384,104 $ 672,248 $ 336,124 $ 3,720,228 $ 744,046 Net Pension Obligation 544,493 68,956 - 613,449 - Net Other Post -Employment Benefits Obligation 289,542 292,439 - 581,981 - General Obligation Bonds 22,790,000 9,800,000 945,000 31,645,000 980,000 Add: Unamortized Bond Premium 105,855 - 6,227 99,628 - Loan Contracts Payable 1,706,824 - 567,312 1,139,512 417,586 Installment Notes Payable 2,500,000 - 25,000 2,475,000 135,000 $ 31.320.818 $ 10,833,643 $ 1,879.663 $ 40.274.798 $ 2,276,632 43 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued LONG-TERM DEBT — Continued Long -Term Liability Activity — Continued of Debt Business -Type Activities Compensated Absences Net Other Post -Employment Benefits Obligation Component Unit - Public Library Compensated Absences Net Other Post -Employment Benefits Obligation General Obligation Bonds Less: Unamortized Beginning Balances Additions Deductions $ 205,732 $ 52,460 $ 26,230 6,160 14,927 Amounts Ending Due within Balances One Year 231,962 $ 46,392 21,087 $ 211,892 % 67,387 $ 26,210 $ 253.049 $ 46:392 116,345 $ 11,176 $ 5,588 $ 121,933 $ 24,387 61,927 2,455 - 64,382 - 13,690,000 - 1,115,000 12,575,000 1,140,000 Bond Refunding (304,151) - 30,415) (273,736) - $ 13,564,121 $ 13,631 $ 1,090,173 $ 12,487,579 $ 1,164.387 For governmental -type activities, payments on compensated absences, net pension obligation and net other post -employment benefits obligation are made by the General Fund. The Debt Service Fund makes payments on the general obligation bonds, the IEPA loan contract payables and the installment notes payable. 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. At year end, $153,353 of internal service funds' compensated absences is included in the above amount and is generally liquidated by the Vehicle Maintenance Fund, an internal service fund. In addition, $6,696 of internal service funds' net other post -employment benefits obligation is included in the above amount and is liquidated by the Vehicle Maintenance Fund, an internal service fund. Compensated absences for the business -type activities are liquidated by the Water and Sewer Fund. Payments on the net other post -employment benefits obligation are made by the Water and Sewer Fund and the Parking Fund. The Mount Prospect Public Library, a discretely presented component unit, makes payments on the Library general obligation bonds, the Library compensated absences and the Library net other post -employment benefits obligation. VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT - Continued Debt Service Requirements to Maturity Governmental Activities General Obligation Loan Contracts Installment Fiscal Bonds Payable Notes Payable Year Principal Interest Principal Interest Principal Interest 2014 $ 980,000 $ 1,271,680 $ 417,586 $ 28,227 $ 135,000 2015 1,025,000 1,163,682 178,913 18,345 400,000 2016 1,065,000 1,137,582 183,840 13,418 415,000 2017 1,110,000 1,108,527 188,903 8,355 420,000 2018 1,160,000 1,077,722 112,771 3,735 515,000 2019 1,215,000 1,043,375 57,499 754 590,000 2020 1,830,000 1,006,319 - - - 2021 1,960,000 950,059 - - - 2022 1,970,000 884,904 - - - 2023 2,080,000 815,418 - - - 2024 2,185,000 733,870 - - - 2025 2,300,000 646,470 - - 2026 2,425,000 551,170 - - - 2027 2,550,000 448,920 - - - 2028 2,685,000 339,982 - - - 2029 1,760,000 222,807 - - - 2030 790,000 134,907 - - - 2031 820,000 103,307 - _ - 2032 850,000 70,507 - - - 2033 885,000 36,507 - - $ 22,522 21,294 17,654 13,878 10,056 5,369 Total $ 31.645.000 $ 13.747.715 $ 1.139.512 $ 72,834 $ 2,475-000 $ 90.773 45 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued LONG-TERM DEBT — Continued Debt Service Requirements to Maturity — Continued Component Unit Public Library General Obligation Fiscal Bonds Year Principal Interest 2014 $ 1,140,000 $ 434,379 2015 1,155,000 413,356 2016 1,280,000 392,044 2017 1,360,000 358,266 2018 1,410,000 305,906 2019 1,465,000 250,916 2020 1,525,000 193,048 2021 1,585,000 132,048 2022 1,655,000 67,856 Total $ 12,575,000 $ 2,547,819 Legal Debt Margin Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. "The General Assembly may limit by law the amount and require referendum approval of debt to the incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property... (2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum... shall not be included in the foregoing percentage amounts." To date the Illinois General Assembly has set no limits for home rule municipalities. The Village is a home rule municipality. 46 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued LONG-TERM DEBT — Continued Mount Prospect Public Library Financing Agreement Long -Term Financing from Primary Government The Village entered into an agreement with the Mount Prospect Public Library (the Library) on May 21, 2002 for the financing of the renovation of the existing public library. The Village agreed to issue general obligation bonds in the amount of $20,500,000. The Library assumed full responsibility for the repayment of the bonds, inclusive of principal and interest and all costs associated with the bond issue as well as construction of the project. The 2002 bonds were refunded by the 2006 refunding bonds and the 2011A refunding bonds. The liability ($9,665,000 of 2006 refunding bonds and $2,910,000 of 2011A refunding bonds at December 31, 2013) for the bonds has been displayed on the Library's financial statements. In the event of a default by the Library, the Village is obligated to pay the principal and interest on the bonds. The Library will remit to the Village all monies received from taxes collected for payment of principal and interest on a semi-annual basis. Payments are due May 1 and November 1 of each year. The Library has agreed to remit to the Village a balloon payment on November 1, 2021 in an amount sufficient to cover the December 1, 2021 principal and interest payments, the June 1, 2022 interest payment and the December 1, 2022 principal and interest payment. The Library is responsible for all costs associated with the bond issue such as attorney fees, bond counsel fees and underwriter fees. Payments made to the Village are reported as a debt service expenditure on the Library's governmental fund financial statements and a reduction of the liability in the Library's General Long -Term Debt on the government -wide financial statements. E,W VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued NET POSITION/FUND BALANCE Net Position Classifications Net investment in capital assets, was comprised of the following as of December 31, 2013: Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 73,812,704 Plus: Unspent Bond Proceeds 9,699,196 Less Capital Related Debt: General Obligation Bonds of 2009 (9,800,000) General Obligation Refunding Bonds of 2009B (2,635,000) Taxable General Obligation Bonds of 2009C (2,650,000) General Obligation Refunding Bonds of 2011B (5,015,000) General Obligation Refunding Bonds of 2012C (1,745,000) General Obligation Bonds of 2013 (9,800,000) IEPA Flood Loan (L17-0744) Contract Payable of 1994 (126,134) IEPA Flood Loan (1,17-0857) Contract Payable of 1994 (117,336) IEPA Flood Loan (L17-0855) Contract Payable of 1997 (302,979) IEPA Flood Loan (L17-1087) Contract Payable of 1999 (593,063) Installment Note Payable of 2012 (2,475,000) Unamortized Bond Premium (99,628) Net Investment in Capital Assets $ 48,152,760 Business -Type Activities Capital Assets - Net of Accumulated Depreciation $ 26,352,289 Component Unit - Public Library Capital Assets - Net of Accumulated Depreciation $ 15,057,115 Less Capital Related Debt: General Obligation Refunding Bonds of 2006 (9,665,000) General Obligation Refunding Bonds of 2011A (2,910,000) Unamortized Bond Discount 273,736 $ 2,755,851 48 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued NET POSITION/FUND BALANCE — Continued Fund Balance Classifications The following is a schedule of fund balance classifications for the governmental funds as of the date of this report: Fund Balances Nonspendable Restricted Refuse Disposal Debt Service Highways and Streets Business District Public Safety Assigned - Capital Projects Unassigned Total Fund Balances Flood Refuse Debt Control General Disposal Service Construction Nonmajor Totals $ 297,762 $ 130,861 $ 830 $ - $ 773 $ 430,226 - 2,314,256 - - - 120,661 - - 2,314,256 - 120,661 338,861 338,861 - 83 83 - 392,722 392,722 - 2,314,256 120,661 - 731,666 3,166,583 11,672,318 4,033,188 15,705,506 11,580,820 - - (689) 11,580,131 $ 11,878,582 $ 2,445,117 $ 121,491 $ 11,672,318 $ 4,764,938 $ 30,882,446 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. Assigned Fund Balance. The Village reports assigned fund balance in the Capital Improvement, Series 2009 Construction, the Downtown Redevelopment Construction, nonmajor funds, and the Flood Control Construction, a major fund. The Village's Board and/or Village Manager (by authorization in the fund balance policy) has assigned the funds in these four funds to future improvement projects and equipment and vehicle purchases based on approved management expenditures as determined through the annual budget process. Minimum Fund Balance Policy. The Village policy 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 49 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 3 — DETAIL NOTES ON ALL FUNDS — Continued NET POSITION/FUND BALANCE — Continued Fund Balance Classifications — Continued Minimum Fund Balance Policy — Continued 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. NOTE 4 — OTHER INFORMATION RISK MANAGEMENT The Village and its component are exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; employee health; natural disasters; and injuries to the Village's employees. These risks, along with medical claims for employees and retirees, are provided for through a limited self-insurance program. The Village is self-insured for the first $25,000 for property claims, $2,000,000 for liability claims, $2,000,000 for errors and omissions and $500,000 for workers' compensation claims. Commercial insurance is carried for amounts in excess of the self- insured amounts. There has been no significant reduction in coverage in any program from coverage in the prior year. For all programs, settlement amounts have not exceeded insurance coverage for the current or three prior years. The Village's self-insurance activities are reported in the Risk Management Fund, an internal service fund. Premiums are paid into the Risk Management Fund by the departments of the General Fund and other funds based upon historical cost estimates. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Reported liabilities are actuarially determined and include an amount for claims that have been incurred but not reported. The total claims liability as of December 31, 2013 was $849,879. Changes in the balances of claims liabilities during the fiscal year are as follows: Workers' General Auto Comoensation Liability Totals Claims Payable - December 31, 2011 $ 75,934 $ 1,098,722 $ - $ 1,174,656 Incurred Claims (53,002) 777,855 - 724,853 Claims Paid (19,432) (634,267) - (653,699) Claims Payable - December 31, 2012 3,500 1,242,310 - 1,245,810 Incurred Claims 62,475 431,062 15,000 508,537 Claims Paid (25.673) (878:795) - (904.468) Claims Payable - December 31, 2013 $ 40.302 $ 794.577 $ 15.000 $ 849.879 6111 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued RISK MANAGEMENT — Continued High -Level Excess Liability Pool (HELP) The Village is a member of the High -Level Excess Liability Pool (HELP). HELP is a public entity risk pool established by certain municipalities in Illinois to provide excess liability coverage ($12,000,000 of coverage after a $2,000,000 self-insurance retention). The Village's payments to HELP are displayed on the financial statements as expenditures/expenses in appropriate funds. HELP is governed by the Board of Directors which consists of one appointed representative from each Member Municipality. Each Director has on equal vote. The officers of HELP are elected by the Board of Directors. The Board of Directors determines the general policy of HELP, makes all appropriations, approves contracts, adopts resolutions providing for the issuance of debt by HELP, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the by-laws. The Village does not exercise any control over the activities of HELP beyond its representation on the Board of Directors. The Village of Elk Grove Village, Illinois (the initial Host member) issued $5,000,000 of general obligation bonds in 1987 to provide initial funding for HELP. The bond proceeds were put into escrow. An intergovernmental agreement among HELP, the Village of Elk Grove Village and the Members provides that HELP and its Members are obligated to the Village of Elk Grove Village for payment of principal and interest on the bonds until such bonds have been retired. The bonds were retired April 30, 1997. HELP was organized on April 1, 1987 with the initial agreement which has been extended to April 30, 2018. The Village has committed to purchase excess liability insurance from HELP through the term of the agreement. Annual premiums are calculated based on a formula which specifies the following four criteria: 1) Miles of streets; 2) Full-time equivalent employees; 3) Number of motor vehicles; and 4) Operating revenues 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 $50,000 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. 51 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued CONTRACTUAL COMMITMENTS High -Level Excess Liability Pool (HELP) The Village has committed to purchase excess liability insurance from the High -Level Excess Liability Pool (HELP), and insurance pool of Illinois municipalities, through April 30, 2018. There is no minimum annual commitment amount for the purchase of this insurance coverage. Future premiums will be calculated using the Village's allocation percentage. HELP's agreement provides that each year members will be assessed based upon a formula which specifies the following four criteria for allocating premium costs: Miles of Streets Full -Time Equivalent Employees Number of Motor Vehicles Operating Revenues The Village paid $74,617 to HELP in 2013. For 2014, the Village estimates it will pay $79,754. Solid Waste Agency of Northern Cook County (SWANCC) Annual payments to 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 2014 the Village estimates it will pay SWANCC $1,239,754, with annual increases ranging from 0% to 3% through 2022. 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 attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. 52 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued JOINT VENTURES Northwest Suburban Municipal Joint Action Water Agency (JAWA) The Village is a member of the Northwest Suburban Municipal Joint Action Water Agency (JAWA) which consists of seven municipalities. JAWA is a municipal corporation and public body politic and corporate established pursuant to the Intergovernmental Cooperation Act of the State of Illinois. JAWA is empowered to plan, construct, improve, extend, acquire, finance, operate and maintain a water supply system to serve its members and other potential water purchasers. The seven members of JAWA and their percentage shares as of April 30, 2013 are as follows: Percent Share Village of Elk Grove Village 16.95 % Village of Hanover Park 8.71 Village of Hoffman Estates 16.94 Village of Mount Prospect 12.02 City of Rolling Meadows 7.31 Village of Schaumburg 27.95 Village of Streamwood 10.12 100.00 % These percentage shares are based upon formula contained in the water supply agreement and are subject to change in future years based upon consumption by the municipalities. The members form a contiguous geographic service area which is located 15 to 30 miles northwest of downtown Chicago. Under the Agency Agreement, additional members may join JAWA upon the approval of each member. JAWA is governed by a Board of Directors which consists of one elected official from each member municipality. Each Director has an equal vote. The officers of JAWA are appointed by the Board of Directors. The Board of Directors determines the general policy of JAWA, makes all appropriations, approves contracts for sale or purchase of water, provides for the issuance of debt, adopts bylaws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the bylaws. 53 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued JOINT VENTURES — Continued Northwest Suburban Municipal Joint Action Water Agency (JAWA) — Continued Summary of financial positions as of April 30, 2013: Current Assets $ 19,852,814 Current Liabilities $ 16,543,898 Noncurrent Assets Capital Assets Other Assets 46,062,420 Long -Term Liabilities Total Liabilities Total Assets $ 90,812,155 Net Position 64,169,286 80,713,184 $ 10,098,971 Summary of revenues, expenses and changes in net position for the year ended April 30, 2013: Operating Revenues $ 40,977,454 Operating Expenses Operating Income Nonoperating Revenue (Expenses) Change in Net Position Net Position - Beginning Net Position - Ending 54 34,918,669 6,058,785 (2,267,070) 3,791,715 6,307,256 $ 10,098,971 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued JOINT VENTURES — Continued Northwest Suburban Municipal Joint Action Water Agency (JAWA) — Continued Complete financial statements can be obtained from the Northwest Suburban Municipal Joint Action Water Agency, 903 Brantwood Avenue, Elk Grove Village, Illinois 60007. Revenues of the system consist of: (a) all receipts derived from Water Supply Agreements or any other contract for the supply of water; (b) all income derived from the investment of monies; and (c) all income, fees, water service charges, and all rates, rents and receipts derived by JAWA from the ownership and operation of the system and the sale of water. JAWA covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. JAWA has entered into Water Supply Agreements with the seven -member municipalities for a term of 40 years, extending to December 31, 2022. The Agreements are irrevocable and may not be terminated or amended except as provided in the General Resolution. Each member is obligated, on a "take or pay" basis, to purchase or in any event to pay for a minimum annual quantity of water. JAWA has entered into an agreement with the City of Chicago under which the City has agreed to sell quantities of lake water sufficient to supply the projected water needs of JAWA through the year 2020. The obligation of the Village to make all payments as required by this agreement is unconditional and irrevocable, without regard to performance or nonperformance by JAWA of its obligations under this Agreement. The payments required to be made by the Village under this Agreement shall be required to be made solely from revenues to be derived by the Village from the operation of the Waterworks and Sewerage 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 Waterworks and Sewerage 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 $5,230,614 to JAWA for the year ended December 31, 2013. All payments were paid from the Water and Sewer Fund. The Village's share of net assets of JAWA was $663,341 at December 31, 2013. 55 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 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 Act of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended. SWANCC is empowered to plan, construct, finance, operate, and maintain a solid waste disposal system to serve its members. SWANCC is governed by a Board of Directors which consists of 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 the by-laws. Separate audited financial statements are available at 2700 Patriot Blvd., Suite 110, Glenview, Illinois 60026. SWANCC's bonds are revenue obligations. They are limited obligations of SWANCC, with a claim for payment solely from and secured by a pledge of the revenues of the system, and amounts in various funds and accounts established by SWANCC resolutions. SWANCC has no power to levy taxes. Revenues of the system consist of. (a) all receipts derived from Solid Waste Disposal Contracts or any other contracts for the disposal of waste; (b) all income derived from the investment of monies; and (c) all income, fees, service charges, and all grants, rents, and receipts derived by SWANCC from the ownership and operation of the system. SWANCC covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. SWANCC has entered into Solid Waste Disposal Contracts with the member municipalities. The Contracts are irrevocable, and may not be terminated or amended, except as provided in the Contract. Each member is obligated, on a "take or pay" basis, to purchase or in any event to pay for a minimum annual cost of the system. The obligation of the Village to make all payments as required by this Contract is unconditional and irrevocable, without regard to performance or nonperformance by SWANCC of its obligations under this Contract. 56 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued JOINT VENTURES — Continued Solid Waste Agency of Northern Cook County (SWANCC) — Continued The payments required to be made by the Village under this Contract are required to be made solely from revenues to be derived by the Village from the operation of the Municipal Waste System Fund. The Village is not prohibited by the Contract from using any other funds to make the payments required by the Contract. The Contract shall not constitute an indebtedness of the Village within the meaning of nay statutory or constitutional limitation. In accordance with the joint venture agreement, the Village remitted $1,227,076 to SWANCC for the year ended December 31, 2013, 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 a single -employer pension plan. The benefits, benefit levels, employee contributions, and employer contributions for all three plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. A separate report is issued for the Police and Firefighters' Pension Plans and may be obtained by writing to the Village at 50 S. Emerson St. Mount Prospect, Illinois 60056. IMRF issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole, but not by individual employer. That report may be obtained on-line at www.imrf.org. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. Plan Descriptions, Provisions and Funding Policies Illinois Municipal Retirement System All employees (other than those covered by the Police and Firefighters' Pension plans) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. Participating members hired before January 1, 2011 who retire at or after age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3 percent of their final rate (average of the highest 48 consecutive months' earnings during the last 10 years) of earnings, for each year of credited service up to 15 years, and 2 percent for each year thereafter. For participating members hired on or after January 1, 2011 who retire at or after age 67 with 10 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3 percent of their final rate (average of the highest 96 consecutive months' earnings during the last 10 years) of earnings, for each year of credited service, with a maximum salary cap of $106,800 at January 1, 2011. The maximum salary cap increases each year thereafter. The monthly pension of a member hired on or after January 1, 2011, shall be increased annually, following the later of the first anniversary date of retirement or the month following the attainment of age 62, by the lesser of 3% or''/2 of the consumer price index. Employees with at least 10 years of credited service may retire at or after age 62 and receive a reduced benefit. IMRF also provides death and disability benefits. 57 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued EMPLOYEE RETIREMENT SYSTEM — DEFINED BENEFIT PENSION PLANS — Continued Plan Descriptions, Provisions and Funding Policies — Continued Illinois Municipal Retirement System — Continued These benefit provisions and all other requirements are established by state statute. Employees participating in the plan are required to contribute 4.50 percent of their annual covered salary to IMRF. The employees' contribution rate is established by state statute. The Village is required to contribute the remaining amount necessary to fund the IMRF plan as specified by statute. The employer annual required contribution rate for calendar year 2013 was 12.71 percent. Police Pension Plan The Police Pension Plan is a single -employer defined benefit pension plan that covers all sworn police personnel. Although this is a single -employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2012, the date of the most recent actuarial valuation, the Police Pension Plan membership consisted of: Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but not yet Receiving Them 68 Current Employees Vested 60 Nonvested 24 152 58 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued EMPLOYEE RETIREMENT SYSTEM — DEFINED BENEFIT PENSION PLANS — Continued Plan Descriptions, Provisions and Funding Policies — Continued Police Pension Plan — Continued The following is a summary of the Police Pension Plan as provided for in Illinois State Statutes. The Police Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees hired before January 1, 2011, attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of 1/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 pension shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75% of such salary. Covered employees hired on or after January 1, 2011, attaining the age of 55 with at least 10 years creditable service are entitled to receive an annual retirement benefit of 2.5% of final average salary for each year of service, with a maximum salary cap of $106,800 as of January 1, 2011. The maximum salary cap increases each year thereafter. The monthly benefit of a police officer hired before January 1, 2011, who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. The monthly pension of a police officer hired on or after January 1, 2011, shall be increased annually, following the later of the first anniversary date of retirement or the month following the attainment of age 60, but the lesser of 3% or 1/2 of the consumer price index. Employees with at least 10 years but less than 20 years of creditable service may retire at or after age 60 and receive a reduced benefit. 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, including administrative costs, as actuarially determined by an enrolled actuary. By the year 2040 the Village's contributions must accumulate to the point where the past service cost for the Police Pension Plan is 90% funded. we, VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued EMPLOYEE RETIREMENT SYSTEM — DEFINED BENEFIT PENSION PLANS — Continued Plan Descriptions, Provisions and Funding Policies — Continued Firefighters' Pension Fund The Firefighters' Pension Plan is a single -employer defined benefit pension plan that covers all sworn firefighter personnel. Although this is a single -employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2012, the date of the most recent actuarial valuation, the Firefighters' Pension Plan membership consisted of: Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but not yet Receiving Them 65 Current Employees Vested 45 Nonvested 20 130 The following is a summary of the Firefighters' Pension Plan as provided for in Illinois State Statutes. The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one-half of the monthly salary attached to the rank at the date of retirement. VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued EMPLOYEE RETIREMENT SYSTEM — DEFINED BENEFIT PENSION PLANS — Continued Plan Descriptions, Provisions and Funding Policies — Continued Firefighters' Pension Plan — Continued The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees hired before January 1, 2011, attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of 1/2 of the monthly salary attached to the rank held at the date of retirement. The pension shall be increased by 1/12 of 2.5% of such monthly salary for each additional month over 20 years of service through 30 years of service, to a maximum of 75% of such salary. Covered employees hired on or after January 1, 2011, attaining the age of 55 with at least 10 years of creditable service are entitled to receive an annual retirement benefit of 2.5% of final average salary for each year of service, with a maximum salary cap of $106,800 as of January 1, 2011. The maximum salary cap increases each year thereafter. The monthly pension of a firefighter hired before January 1, 2011, who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. The monthly pension of a firefighter hired on or after January 1, 2011, shall be increased annually, following the later of the first anniversary date of retirement or the month following the attainment of age 60, by the lesser of 3% or 1/2 of the consumer price index. Employees with at least 10 years but less than 20 years of creditable service may retire at or after age 60 and receive a reduced benefit. Covered employees, if any, 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, including administrative costs, as actuarially determined by an enrolled actuary. By the year 2040 the Village's contributions must accumulate to the point where the past service cost for the Firefighters' Pension Plan is 90% funded. Summary of Significant Accounting Policies and Plan Asset Matters Basis of Accounting The financial statements are prepared using the accrual basis of accounting. Employee and employer contributions are recognized as revenues when due, pursuant to formal commitments, as well as statutory or contractual requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. 61 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued EMPLOYEE RETIREMENT SYSTEM — DEFINED BENEFIT PENSION PLANS — Continued Summary of Significant Accounting Policies and Plan Asset Matters — Continued Method Used to Value Investments Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on national exchanges are valued at the last reported sales price. Investments that do not have any established market, if any, are reported at estimated fair value. Significant Investments At December 31, 2013, the Police Pension Fund's investments in Vanguard 500 Index, LSV Value Equity Fund, Pioneer Equity Income Fund, and T Rowe Price Growth Fund and the Firefighters Pension Fund's investments in American Funds -GFA, American Funds -Euro Pacific Growth, T. Rowe Price -Mid Cap Growth, Vanguard -Morgan Growth and Vanguard -Windsor 11 exceeded 5% of the Fund's total investments. Information for IMRF is not available. Related Party Transactions There are no securities of the employer or any other related parties included in plan assets. Annual Pension Cost and Net Pension Obligation The net pension obligation/(asset) for each plan as of December 31, 2013 is as follows: Police Firefighters' IMRF Pension Pension Totals Annual Required Contribution $ 1,954,187 $ 2,631,811 $ 2,323,609 $ 6,909,607 Interest on Net Pension Obligation 34,421 (31,999) 14,054 16,476 Adjustment to Annual Required Contribution (24,604) 128,554 92,823 196,773 Annual Pension Cost 1,964,004 2,728,366 2,430,486 7,122,856 Actual Contribution 1,954,187 2,631,038 2,371,347 6,956,572 Increase (Decrease) in the NPO 9,817 97,328 59,139 166,284 NPO - Beginning of Year 458.949 (534,665) 85,544 9,828 NPO - End of Year $ 468.766 % (437.337) $ 144.683 $ 176,112 62 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued EMPLOYEE RETIREMENT SYSTEM — DEFINED BENEFIT PENSION PLANS — Continued Annual Pension Cost and Net Pension Obligation — Continued The Village's actuarial assumptions and related information for each plan is as follows: Police Firefighters' IMRF Pension Pension Contribution Rates 7.50% 7.50% 7.50% Employer 12.71% 31.90% 36.756% Employee 4.50% 9.91% 9.455% Actuarial Valuation Date 12/31/2013 12/31/2012 12/31/2012 Actuarial Cost Method Entry Age Entry Age Entry Age Cost -of -Living Adjustments Normal Normal Normal Amortization Method Level % of Level % of Level % of Projected Projected Projected Payroll Payroll Payroll Open Basis Closed Basis Closed Basis Remaining Amortization Period 30 Years 28 Years 28 Years Asset Valuation Method 5 -Year Market Market Smoothed Market Actuarial Assumptions Investment Rate of Return 7.50% 7.50% 7.50% Compounded Compounded Compounded Annually Annually Annually Projected Salary Increases .4 to 10.0% 5.00% 5.00% Inflation Rate Included 4.00% 3.00% 3.00% Cost -of -Living Adjustments 3.00% 3.00% 3.00% 63 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued EMPLOYEE RETIREMENT SYSTEM — DEFINED BENEFIT PENSION PLANS — Continued Trend Information Employer annual pension cost (APC), actual contributions and the net pension obligation (NPO)/net pension asset (NPA) are as follows. The NPO is the cumulative difference between the APC and the contributions actually made. Gig Police Firefighters' Year IMRF Pension Pension Annual Pension Cost 2011 $ 1,739,906 $ 2,433,163 $ 2,123,952 (APC) 2012 1,724,654 2,349,369 2,152,571 2013 1,964,004 2,728,366 2,430,486 Actual Contributions 2011 1,606,265 2,504,701 2,155,975 2012 1,715,043 2,511,349 2,260,834 2013 1,954,187 2,631,038 2,371,347 Percentage of APC 2011 92.32% 102.94% 101.51% Contributed 2012 99.44% 106.89% 105.03% 2013 99.50% 96.43% 97.57% Net Pension Obligation/ 2011 449,338 (372,685) 193,807 (Asset) 2012 458,949 (534,665) 85,544 2013 468,766 (437,337) 144,683 Gig VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued EMPLOYEE RETIREMENT SYSTEM — DEFINED BENEFIT PENSION PLANS — Continued Funded Status and Funding Progress The Village's funded status for the current year and related information for each plan is as follows: Police Firefighters' IMRF Pension Pension Actuarial Valuation Date Percent Funded Actuarial Accrued Liability for Benefits Actuarial Value of Assets Over (Under) Funded Actuarial Accrued Liability (UAAL) 12/31/2013 12/31/2012 12/31/2012 81.69% 57.42% 62.45% $47,218,842 $85,202,766 $75,639,594 $38,571,986 $48,922,651 $47,233,554 ($8,646,856) ($36,280,115) ($28,406,040) Covered Payroll (Annual Payroll of Active Employees Covered by the Plan) $15,375,191 $7,871,917 $6,150,974 Ratio of UAAL to Covered Payroll 56.24% 460.88% 461.81% The schedule of funding progress, presented as Required Supplementary Information (RSI) following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. 65 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued OTHER POST -EMPLOYMENT BENEFITS Plan Descriptions, Provisions and Funding Policies In addition to providing the pension benefits described, the Village provides post -employment health care insurance benefits (OPEB) for its eligible retired employees through a single employer defined benefit plan. The benefits, benefit levels, employee contributions and employer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. The activity of the plan is reported in the Village's governmental and business -type activities. The Village provides pre and post Medicare post -employment health insurance to retirees, their spouses and dependents who were enrolled in one of the Village's healthcare plans at the time of the employees' retirement. To be eligible for benefits, the employee must qualify for retirement under one of the Village's three retirement plans. All health care benefits are provided through the Village's health insurance plan. The benefit levels are the same as those afforded to active employees. Benefits include general inpatient and outpatient medical services; mental, nervous, and substance abuse care; vision care; and prescriptions. Upon a retiree reaching 65 years of age, Medicare becomes the primary insurer and the Village's plan becomes secondary. All retirees contribute 100% of the actuarially determined premium to the plan. For the fiscal year ending December 31, 2013, retirees contributed $843,433. At December 31, 2013, membership consisted of: Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but not yet Receiving Them 84 Active Employees 291 Total 375 Participating Employers The Village is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the plan until retirement. M VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued OTHER POST -EMPLOYMENT BENEFITS — Continued Annual OPEB Costs and Net OPEB Obligation The net OPEB obligation (NOPEBO) as of December 31, 2013, was calculated as follows: Annual Required Contribution $ 582,335 Interest on the NPO 10,350 Adjustment to the ARC (9,505) Annual OPEB Cost 583,180 Actual Contribution 275,814 Increase in the NPO 307,366 NOPEBO - Beginning of Year 295,702 NOPEBO - End of Year $ 603,068 Trend Information The Village's annual OPEB cost, actual contributions, the percentage of annual OPEB cost contributed and the net OPEB obligation are as follows: Fiscal Year Annual OPEB Cost Actual Contributions Percentage of OPEB Cost Contributed Net OPEB Obligation 2011 $ 277,966 $ 254,814 91.67% $ 455,249 2012 450,309 609,856 135.43% 295,702 2013 583,180 275,814 47.29% 603,068 67 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued OTHER POST -EMPLOYMENT BENEFITS — Continued Funded Status and Funding Progress The funded status of the plan as of December 31, 2012, the date of the latest actuarial valuation, was as follows: Actuarial Accrued Liability (AAL) Actuarial Value of Plan Assets $ 7,201,300 Unfunded Actuarial Accrued Liability (UAAL) $ 7,201,300 Funded Ratio (Actuarial Value of Plan Assets/AAL) - Covered Payroll (Active Plan Members) $ 24,540,441 UAAL as a Percentage of Covered Payroll 29.34% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the December 31, 2012 actuarial valuation the entry age actuarial cost method was used. The actuarial assumptions included a 3.5% investment rate or return and an initial healthcare trend rate of 8.8% with an ultimate healthcare inflation rate of 5.0%, a 3.0% price inflation assumption, and a 4.0% wage inflation assumption. The actuarial value of assets was not determined as the Village has not advance funded its obligation. The plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2013, was 30 years. 68 VILLAGE OF MOUNT PROSPECT, ILLINOIS Notes to the Financial Statements December 31, 2013 NOTE 4 — OTHER INFORMATION — Continued SUBSEQUENT EVENTS On February 4, 2014, the Village issued $6,290,000 of General Obligation Bonds, due in annual installments of $290,000 to $1,265,000, plus interest at 3.00% through December 1, 2023. M. 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 of Funding Progress and Employer Contributions Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund Other Post -Employment Benefits Plan • Budgetary Comparison Schedule — General Fund • Budgetary Comparison Schedule — Refuse Disposal — Special Revenue Fund Notes to the Required Supplementary Information Budgetary Information — Budgets are adopted on a basis consistent with generally accepted accounting principles. VILLAGE OF MOUNT PROSPECT, ILLINOIS Illinois Municipal Retirement Fund Required Supplementary Information Schedule of Funding Progress and Employer Contributions December 31, 2013 Funding Progress 2008 $ 30,588,784 $ 40,307,663 75.89% $ 9,718,879 $ 15,126,845 (6) 2009 32,885,215 42,060,919 78.18% 9,175,704 15,057,932 Unfunded 2010 35,647,745 44,326,209 80.42% 8,678,464 15,105,113 (Overfunded) 2011 32,515,052 44,098,030 73.73% (4) 14,928,114 Actuarial 2012 35,970,552 (2) 77.81% Unfunded 14,939,401 Accrued 2013 (1) Actuarial 81.69% (Overfunded) 15,375,191 Liability as a Actuarial Actuarial Accrued (3) Actuarial (5) Percentage Valuation Value Liability Funded Accrued Annual of Covered Date of Plan (AAL) Ratio Liability Covered Payroll Dec. 31 Assets - Entry Age (1) _ (2) (2)-(1) Payroll (4) - (5) 2008 $ 30,588,784 $ 40,307,663 75.89% $ 9,718,879 $ 15,126,845 64.25% 2009 32,885,215 42,060,919 78.18% 9,175,704 15,057,932 60.94% 2010 35,647,745 44,326,209 80.42% 8,678,464 15,105,113 57.45% 2011 32,515,052 44,098,030 73.73% 11,582,978 14,928,114 77.59% 2012 35,970,552 46,229,045 77.81% 10,258,493 14,939,401 68.67% 2013 38,571,986 47,218,842 81.69% 8,646,856 15,375,191 56.24% Employer Contributions Fiscal Year Employer Contributions Annual Required Contribution Percent Contributed 2008 $ 1,332,675 $ 1,332,675 100.00% 2009 1,338,650 1,338,650 100.00% 2010 1,477,280 1,792,977 82.39% 2011 1,606,265 1,733,154 92.68% 2012 1,715,043 1,715,043 100.00% 2013 1,954,187 1,954,187 100.00% 70 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension Fund Required Supplementary Information Schedule of Funding Progress and Employer Contributions December 31, 2013 Funding Progress 2007 $ 42,963,185 $ 56,873,906 75.54% $ 13,910,721 $ 7,078,232 (6) 2008 36,262,944 61,578,623 58.89% 25,315,679 7,142,505 Unfunded 2009 41,020,478 67,715,945 60.58% 26,695,467 7,421,123 (Overfunded) 2010 44,540,310 75,131,534 59.28% (4) 7,183,594 Actuarial 2011 44,777,147 (2) 56.42% Unfunded 7,591,498 Accrued 2012 (1) Actuarial 57.42% (Overfunded) 7,871,917 Liability as a Actuarial Actuarial Accrued (3) Actuarial (5) Percentage Valuation Value Liability Funded Accrued Annual of Covered Date of Plan (AAL) Ratio Liability Covered Payroll Dec. 31 Assets - Entry Age (1)—, (2) (2)-(1) Payroll (4)—, (5) 2007 $ 42,963,185 $ 56,873,906 75.54% $ 13,910,721 $ 7,078,232 196.53% 2008 36,262,944 61,578,623 58.89% 25,315,679 7,142,505 354.44% 2009 41,020,478 67,715,945 60.58% 26,695,467 7,421,123 359.72% 2010 44,540,310 75,131,534 59.28% 30,591,224 7,183,594 425.85% 2011 44,777,147 79,366,157 56.42% 34,589,010 7,591,498 455.63% 2012 48,922,651 85,202,766 57.42% 36,280,115 7,871,917 460.88% Employer Contributions Fiscal Year Employer Contributions Annual Required Contribution Percent Contributed 2008 $ 1,420,452 $ 1,408,423 100.85% 2009 1,565,009 1,515,672 103.26% 2010 2,210,670 2,208,174 100.11% 2011 2,504,701 2,467,527 101.51% 2012 2,511,349 2,484,859 101.07% 2013 2,631,038 2,631,811 99.97% 71 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension Fund Required Supplementary Information Schedule of Funding Progress and Employer Contributions December 31, 2013 Funding Progress Employer Contributions Annual Required Contribution Percent Contributed 2008 $ 1,417,935 $ 1,389,833 102.02% 2009 1,538,564 1,414,110 108.80% (6) 1,928,807 1,925,375 100.18% 2011 2,155,975 2,140,664 Unfunded 2012 2,260,834 2,224,122 101.65% 2013 2,371,347 (Overfunded) 102.05% (4) Actuarial (2) Unfunded Accrued (1) Actuarial (Overfunded) Liability as a Actuarial Actuarial Accrued (3) Actuarial (5) Percentage Valuation Value Liability Funded Accrued Annual of Covered Date of Plan (AAL) Ratio Liability Covered Payroll Dec. 31 Assets - Entry_ Age (1) _ (2) (2)-(1) Payroll (4) - (5) 2007 $ 43,030,180 $ 55,025,410 78.20% $ 11,995,230 $ 5,761,988 208.18% 2008 36,681,856 57,366,525 63.94% 20,684,669 5,862,887 352.81% 2009 40,800,749 62,747,542 65.02% 21,946,793 6,181,788 355.02% 2010 43,860,979 69,228,826 63.36% 25,367,847 5,896,317 430.23% 2011 43,864,976 72,307,211 60.66% 28,442,235 6,201,120 458.66% 2012 47,233,554 75,639,594 62.45% 28,406,040 6,150,974 461.81% Employer Contributions Fiscal Year Employer Contributions Annual Required Contribution Percent Contributed 2008 $ 1,417,935 $ 1,389,833 102.02% 2009 1,538,564 1,414,110 108.80% 2010 1,928,807 1,925,375 100.18% 2011 2,155,975 2,140,664 100.72% 2012 2,260,834 2,224,122 101.65% 2013 2,371,347 2,323,609 102.05% 72 VILLAGE OF MOUNT PROSPECT, ILLINOIS Other Post -Employment Benefits Plan Required Supplementary Information Schedule of Funding Progress and Employer Contributions December 31, 2013 Funding Progress Employer Contributions Annual Required Contributions Percent Contributed 2008 $ 253,200 $ 637,400 39.72% 2009 254,814 273,536 93.16% (6) 254,814 270,764 94.11% 2011 254,814 270,764 Unfunded 2012 609,856 442,722 137.75% 2013 275,814 (Overfunded) 47.36% (4) Actuarial (2) Unfunded Accrued (1) Actuarial (Overfunded) Liability as a Actuarial Valuation Actuarial Value Accrued Liability (3) Funded Actuarial Accrued (5) Annual Percentage of Covered Date of Plan (AAL) Ratio Liability Covered Payroll Dec. 31 Assets - Entry Age (1) - (2) (2)-(1) Payroll (4) _ (5) 2007 $ - $ 7,400,200 0.00% $ 7,400,200 $ 22,865,500 32.36% 2008 N/A N/A N/A N/A N/A N/A 2009 - 5,796,773 0.00% 5,796,773 26,655,049 21.75% 2010 N/A N/A N/A N/A N/A N/A 2011 - 8,280,690 0.00% 8,280,690 22,325,901 37.09% 2012 - 7,201,300 0.00% 7,201,300 24,540,441 29.34% Employer Contributions Fiscal Year Employer Contributions Annual Required Contributions Percent Contributed 2008 $ 253,200 $ 637,400 39.72% 2009 254,814 273,536 93.16% 2010 254,814 270,764 94.11% 2011 254,814 270,764 94.11% 2012 609,856 442,722 137.75% 2013 275,814 582,335 47.36% The Village implemented GASB Statement No. 45 for the fiscal year ended December 31, 2008 and had a subsequent actuarial valuation performed for the fiscal year ended December 31, 2010. Information for prior years is not available. The Village is required to have the actuarial valuation performed biannually. N/A - Not Available 73 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, 2013 Budget Original Final Actual Revenues Taxes $ 20,236,668 $ 19,911,668 $ 19,705,258 Licenses, Permits and Fees 3,493,500 3,563,500 3,589,368 Intergovernmental 17,550,630 18,545,630 18,863,089 Charges for Services 1,740,400 1,790,400 1,858,829 Fines and Forfeits 473,000 473,000 430,960 Interest 35,000 35,000 6,561 Miscellaneous 792,800 353,800 542,473 Total Revenues 44,321,998 44,672,998 44,996,538 Expenditures General Government 5,515,005 6,187,665 5,851,590 Public Safety 29,210,248 29,548,316 29,175,170 Highway and Streets 7,364,350 7,662,650 7,341,461 Health 156,163 156,163 142,062 Welfare 1,638,536 1,653,536 1,569,824 Culture and Recreation 437,696 485,296 435,931 Total Expenditures 44,321,998 45,693,626 44,516,038 Excess (Deficiency) of Revenues Over (Under) Expenditures _ (1,020,628) 480,500 Other Financing Sources (Uses) Transfers In - 370,000 36,865 Transfers Out - - (203,112) - 370,000 (166,247) Net Change in Fund Balance $ - $ (650,628) 314,253 Fund Balance - Beginning 11,564.329 Fund Balance - Ending S ] 1.878,5$2 74 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, 2013 Revenues Taxes Charges for Services Interest Miscellaneous Total Revenues Expenditures Health Refuse Disposal Division Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Insurance Commodities and Supplies Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Budget Original Final Actual $ 1,857,000 $ 1,857,000 $ 1,846,553 2,600,500 2,600,500 2,550,158 500 500 607 500 500 7,537 4,458,500 4,458,500 4,404,855 230,728 230,728 202,803 91,728 91,728 97,996 1,200 1,200 1,200 4,092,058 4,092,058 3,956,153 429 429 266 28,239 28,239 28,239 30,387 30,387 28,829 4,474,769 4,474,769 4,315,486 $ (16.269) $ (,16.269) 89,369 255 7AR Fund Balance - Ending $ 2,445,117 75 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES These financial statements and schedules are not required by the Governmental Accounting Standards Board (GASB), nor a part of the basic financial statements, but are presented for the purpose of additional analysis. GOVERNMENTAL FUNDS MAJOR GOVERNMENTAL FUNDS GENERAL FUND The General Fund is a major governmental fund used to account for all financial resources of the general government, except those required to be accounted for in another fund. SPECIAL REVENUE FUND Refuse Disposal Fund: The Refuse Disposal Fund is used to account for the revenues and expenditures associated with providing solid waste collection services. Financing is provided by property taxes, user fees and recycling income. DEBT SERVICE FUND The Debt Service Fund is used to account for the servicing of general long-term debt not being financed by proprietary funds. CAPITAL PROJECTS FUND 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 being provided by the sale of general obligation bonds, grants, interest income and by installment loans from the Illinois Environmental Protection Agency (IEPA). VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2013 Taxes Property - General Property - Police Pension Property - Firefighters' Pension Road and Bridge Taxes Increment Taxes 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, Permits and Fees Vehicle License Fees Liquor Licenses Business Licenses Contractor Licenses Alarm Licenses Elevator Licenses Building Permit Fees Electrical Permit Fees Plumbing Permit Fees Permit Penalties Reinspection Fees Vacant Structure Registration Fees Truck Permit Fees Utility Permit Fees Plan Examination Fees Stormwater Det Fee Street Opening Fees ZBA Hearing Fees Budget Original Final Actual $ 7,816,500 $ 7,816,500 $ 7,659,915 2,570,000 2,570,000 2,565,835 2,260,000 2,260,000 2,305,098 120,500 120,500 114,943 86,668 86,668 88,653 14,500 14,500 15,440 740,000 740,000 719,190 435,000 855,000 853,617 190,000 190,000 205,842 2,935,000 2,150,000 2,168,092 1,235,000 1,275,000 1,285,012 605,000 605,000 564,224 15228,500 1,228,500 1,159,397 20,236,668 19,911,668 19,705,258 1,385,000 1,385,000 1,399,010 160,000 160,000 158,722 145,000 145,000 134,608 37,000 37,000 41,810 16,000 16,000 15,790 20,000 20,000 23,025 625,000 670,000 666,570 8,000 8,000 8,775 24,000 24,000 25,571 2,000 2,000 - 75,000 100,000 99,725 5,000 5,000 3,500 500 500 135 4,000 4,000 3,350 15,000 15,000 6,880 10,000 10,000 7,706 2,000 2,000 2,800 15,000 15,000 10,800 76 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Charges for Services Water and Sewer Service Charge Budget 510,000 510,000 Parking Service Charge Original Final Actual Licenses, Permits and Fees - Continued 94,000 94,000 93,464 Public Improvement Inspection Permit $ 15,000 $ 15,000 $ 11,697 False Alarm Fees 5,000 5,000 8,445 Landlord/Tenant Fees 265,000 265,000 281,535 Cable TV Franchise Fees 660,000 660.000 678,914 Total Licenses, Permits and Fees 3,493,500 3,563,500 3,589,368 Intergovernmental 20,000 20,000 2,984 State Sales Tax 11,475,000 12,015,000 12,342,154 State Income Tax 4,705,000 5,165,000 5,161,051 State Use Tax 895,000 895,000 912,204 Charitable Games Tax 4,000 4,000 4,090 Replacement Taxes 389,000 389,000 389,494 Replacement Taxes - Road and Bridge 10,000 10,000 7,505 Grant - Tobacco Enforcement 4,400 4,400 4,180 Grant - Body Armor 8,000 8,000 1,907 Grant - Illinois Housing Development Authority 10,000 10,000 - Grant - NACCHO 5,000 5,000 2,577 Grant - SHAP 230 230 250 Grant - EAB - 15,000 15,000 Grant - Fire Prevention and Safety - 25,000 22,677 Grant - Other 45.000 - - Total Intergovernmental 17,550,630 18,545,630 18,863,089 Charges for Services Water and Sewer Service Charge 510,000 510,000 510,000 Parking Service Charge 46,500 46,500 46,500 Maintenance of State Highways 94,000 94,000 93,464 Ambulance Transport Fees 750,000 800,000 871,704 Forest River Rural FPD 46,000 46,000 57,102 Cable Programming Fees 24,000 24,000 24,104 Other Programs 50,200 50,200 46,395 Special Detail Revenue 40,000 40,000 43,235 Police Training Revenue 20,000 20,000 2,984 Fire Training Revenue 17,500 17,500 21,678 Lease Payments - Cell Towers 126,000 126,000 125,462 General Store Lease 16,200 16,200 16,201 Total Charges for Services 1,740,400 1,790,400 1,858,829 77 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual Fines and Forfeitures Fines - Parking $ 170,000 $ 170,000 $ 175,077 Fines - Local Ordinances 5,000 5,000 25,850 Fines - Code Enforcement 30,000 30,000 16,509 Fines - Circuit Court 215,000 215,000 172,308 Fines - Parental Responsibility 3,000 3,000 3,900 Forfeited Escrow Funds 50,000 50,000 37,316 Total Fines and Forfeitures 473,000 473,000 430,960 Interest Investment Income 33,000 33,000 4,543 Interest - Escrow Funds 2,000 2,000 2,018 Total Interest 35,000 35,000 6,561 Miscellaneous Reimburse - H/S Youth Officer 82,500 82,500 90,501 Reimburse - Mount Prospect Library 20,000 20,000 28,456 Shared Cost - Sidewalk 28,000 28,000 29,420 Shared Cost - Tree Replacement 40,000 40,000 37,744 Reimburse - Village Property 20,000 20,000 14,065 Other Reimbursements 10,000 75,000 77,862 Human Services Revenue 7,800 7,800 12,764 Fire and Police Reports 5,000 5,000 5,365 Animal Release Fees 500 500 450 Subpoena Fees 2,000 2,000 817 Advertising Revenue 10,000 10,000 - Insurance Payment IPBC 504,000 - - Other Revenue 63,000 63,000 245,029 Total Miscellaneous 792,800 353,800 542,473 Total Revenues $ 44,321,998 $ 44.672.998 $ 44,996,538 78 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2013 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 Emergency Events 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 79 Budget Original Final Actual $ 118,990 $ 123,490 $ 114,948 2,907,740 3,438,300 3,185,452 1,733,417 1,869,017 1,843,581 708,707 710,707 661,459 46,151 46,151 46,150 5,515,005 6,187,665 5,851,590 792,604 800,604 711,081 15,834,702 15,964,552 15,783,921 12,582,942 12,781,150 12,678,986 - 2,010 1,182 29,210,248 29,548,316 29,175,170 7,364,350 7,662,650 7,341,461 156,163 156.163 142,062 1,062,725 1,077,725 1,061,124 575,811 575,811 508,700 1,638,536 1,653.536 1,569,824 437,696 485,296 435,931 $ 44,321,998 $ 45,693.626 $ 44,516,038 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2013 General Government Public Representation - Administration Mayor and Board of Trustees Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Advisory Boards and Commissions Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Public Representation - Administration Village Administration Village Manager's Office Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Capital Expenditures Legal Services Contractual Services 80 Budget Original Final Actual $ 31,548 $ 31,548 $ 31,660 6,410 6,410 6,288 1,950 1,950 1,471 70,065 73,065 65,144 415 415 361 2,0100 100 4,125 112,388 116,888 109,049 3,682 3,682 3,734 1,920 1,920 2,118 500 500 47 500 500 - 6,602 6,602 5,899 118,990 123,490 114,948 430,989 430,989 380,750 202,519 202,519 175,535 7,000 7,000 5,673 7,690 7,690 7,070 2,825 2,825 3,311 4,850 4,850 4,674 200 200 200 656,073 656,073 577,213 440,460 945,460 918,896 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 General Government - Continued Village Administration - Continued Human Resources Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Information Technology Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Capital Expenditures Public Information Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies 81 Budget Original Final Actual $ 179,233 $ 179,233 $ 178,638 109,222 109,222 83,486 7,050 6,800 11,417 1,350 7,335 3,860 300 300 455 297,155 302.890 277,856 359,927 359,927 344,270 144,792 144,792 139,433 5,500 5,500 3,086 396,490 396,490 328,013 5,108 5,108 5,225 4,150 4,150 2,907 5,100 5,100 2,459 921,067 921,067 825,393 65,971 65,971 48,585 31,662 31,662 25,151 1,200 3,200 928 106,698 116,698 89,662 - 1,350 1,132 700 950 155 206,231 219,831 165,613 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 General Government - Continued Village Administration - Continued Television Services Division Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Capital Expenditures Computer Hardware/Software Capital Expenditures Village Clerk's Office Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Village Administration Finance Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Capital Expenditures 82 Budget 81,902 117,747 Original Final Actual $ 88,203 $ 88,203 $ 93,654 42,900 42,900 44,497 750 750 640 28,610 28,610 23,382 1,550 1,550 1,329 5,500 5,500 4,234 8,100 8,100 1,404 175,613 175,613 169,140 57,900 57,900 52,396 81,902 81,902 117,747 40,324 40,324 55,337 915 915 691 28,325 34,225 23,194 775 775 664 1,000 1,325 1,312 153,241 159,466 198,945 2,907,740 3,438,300 3,185,452 121,876 121,876 126,054 40,497 40,497 39,330 9,100 9,100 9,280 150,400 208,400 217,239 4,750 4,750 4,342 19,000 20,280 16,843 - 58,000 56,052 345,623 462,903 469,140 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual General Government - Continued 33,134 33,134 34,332 Finance Department - Continued 10,871 10,871 11,590 Accounting 344,875 344,875 345,161 Personal Services $ 315,861 $ 315,861 $ 318,644 Employee Benefits 152,979 152,979 152,239 Contractual Services 4,005 4,005 3,301 Commodities and Supplies 4,650 3,650 1,798 Contractual Services 477,495 476,495 475,982 Insurance Personal Services 33,134 33,134 34,332 Employee Benefits 10,871 10,871 11,590 Insurance 344,875 344,875 345,161 388,880 388,880 391,083 Customer Service Personal Services 302,965 302,965 281,732 Employee Benefits 130,101 130,101 125,387 Contractual Services 48,000 68,000 64,818 Commodities and Supplies 13,300 12,620 7,818 494,366 513,686 479,755 Cash Management Personal Services 22,476 22,476 23,057 Employee Benefits 4,577 4,577 4,564 27,053 27,053 27,621 Total Finance Department 1,733,417 1,869,017 1,843,581 83 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 General Government - Continued Community Development - Administration Administration and Support Personal Services Employee Benefits Other Employee Costs Utilities Commodities and Supplies Planning and Zoning Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Economic Development Personal Services Employee Benefits Other Employee Costs Contractual Services Total Community Development - Administration Benefit Payments Contractual Services Total General Government 84 Budget Original Final Actual $ 182,764 $ 182,764 $ 180,284 102,583 102,583 103,764 3,750 3,750 2,197 2,064 2,064 655 1,000 1,000 959 292,161 292,161 287,859 183,886 183,886 183,554 80,175 80,175 64,826 6,987 6,987 6,875 23,475 25,475 13,709 1,200 1,200 1,006 3,350 3,350 2,495 299,073 301,073 272,465 59,256 59,256 60,095 21,717 21,717 23,638 1,500 1,500 1,250 35,000 35,000 16,152 117.473 117,473 101,135 708,707 710,707 661,459 46,151 46,151 46,150 5,515,005 6,187,665 5,851,590 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Public Safety Community Development - Code Enforcement Building Inspection Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Community Development - Code Enforcement Police Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Capital Expenditures Records Personal Services Employee Benefits Patrol and Traffic Enforcement Personal Services Employee Benefits Contractual Services Commodities and Supplies Capital Expenditures 85 Budget Original Final Actual $ 291,774 $ 291,774 $ 284,364 114,250 114,250 110,915 7,305 7,305 2,881 365,417 373,417 297,217 6,000 6,000 10,285 7,858 7,858 5,419 792,604 800,604 711,081 405,857 405,857 409,255 3,010,018 3,010,018 2,942,190 139,000 138,625 100,691 54,000 57,975 52,192 30,550 30,550 28,399 19,220 18,470 15,377 11,000 11,000 9,281 3,669,645 3,672,405 3,557,385 273,778 273,778 268,630 95,651 95,651 98,853 369,429 369.429 367,483 6,604,686 6,616,686 6,666,043 1,261,306 1,301,306 1,286,471 538,025 538,025 537,300 65,100 66,666 53,874 5,650 4,084 2.049 8,474,767 8,526,767 8,545,737 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual Public Safety - Continued Police Department - Continued Technical Services Personal Services Employee Benefits Auxiliary Service Personal Services Employee Benefits Crime Prevention and Public Services Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Investigative Personal Services Employee Benefits Contractual Services Commodities and Supplies Capital Expenditures Equipment Maintenance Contractual Services Commodities and Supplies Capital Expenditures 86 $ 176,431 $ 176,431 $ 175,982 63,373 63,373 46,794 239,804 239,804 222,776 205,746 205,746 203,294 89,989 89,989 76,667 295,735 295,735 279,961 120,423 120,423 115,951 36,500 36,500 34,982 2,200 2,200 421 6,950 6,950 1,508 7,950 7,950 6,537 174,023 174,023 159,399 1,465,866 1,514,866 1,508,675 287,569 302,569 314,082 27,600 34,600 31,141 4,550 4,550 2,913 900 900 489 1,786,485 1,857,485 1,857,300 802,863 806,113 785,037 15,700 16,450 6,978 6,251 6,251 1,865 824,814 828,814 793,880 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Public Safety - Continued Police Department - Continued Total Police Department Fire Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Capital Expenditures Fire Department Operations Budget Original Final Actual $ 15,834,702 $ 15,964,552 $ 15,783,921 591,934 591,934 584,859 2,605,002 2,659,002 2,687,652 66,600 66,929 66,197 35,500 38,124 41,736 7,770 7,838 8,004 5,250 5,483 5,175 3,312,056 3,369,310 3,393,623 Personal Services 6,357,568 6,451,568 6,386,440 Employee Benefits 1,136,025 1,160,025 1,117,989 Other Employee Costs 47,500 44,694 44,429 Contractual Services 129,079 130,954 134,140 Commodities and Supplies 24,600 24,764 22,512 Capital Expenditures 44,300 47,339 53,449 7,739,072 7,859,344 7,758,959 Fire Prevention Personal Services 357,021 358,311 352,087 Employee Benefits 147,075 147,075 154,704 Other Employee Costs 6,250 3,787 3,747 Contractual Services 1,400 2,470 2,469 Commodities and Supplies 7,650 30,001 27,801 519,396 541,644 540,808 Communications Contractual Services 5,800 5,800 4,163 Utilities 31,750 31,750 31,178 Commodities and Supplies 1,500 1,500 608 Capital Expenditures 7,000 7,000 6,286 46,050 46,050 42,235 87 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual Public Safety - Continued Fire Department - Continued Equipment Maintenance Contractual Services Emergency Preparedness Other Employee Costs Contractual Services Commodities and Supplies Paid on Call Personal Services Employee Benefits Other Employee Costs Capital Expenditures Improvements Computer Hardware/Software Computer Software Non -Automotive Equipment Other Equipment Total Fire Department Emergency Events Personal Services Employee Benefits Commodities and Supplies Total Emergency Events Total Public Safety 88 $ 908,901 $ 908,901 $ 908,901 1,250 1,250 18 3,700 3,200 3,158 3,150 3,650 1,957 8,100 8,100 5,133 28,839 28,839 19,297 1,728 1,728 1,458 11,800 10,434 4,902 1,000 800 760 43,367 41,801 26,417 5.000 5,000 2,910 1,000 1,000 - 6,000 6,000 2,910 12,5 82,942 12,781,150 12,678,986 - 1,000 630 - 10 75 - 1,000 477 - 2,010 1,182 29,210,248 29,548,316 29,175,170 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Highways and Streets Public Works Department Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Capital Expenditures Total Administration and Support Streets and Buildings Division Administration Personal Services Employee Benefits Utilities Commodities and Supplies Maintenance - Public Buildings Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Other Expenditures 89 Budget Original Final Actual $ 221,666 $ 221,666 $ 225,586 144,665 144,665 146,328 25,802 25,802 24,571 1,061,146 1,061,146 1,062,808 13,525 13,525 14,765 14,516 14,516 15,730 1,455 1,455 1,396 1,482,775 1,482,775 1,491,184 105,265 105,265 100,919 48,332 48,332 48,107 3,100 3,100 2,932 - - 270 156,697 156,697 152,228 405,466 434,466 429,739 162,867 162,867 168,881 364,729 353,109 264,561 50,193 50,193 42,216 113,957 107,557 77,794 4,000 4,000 - 1,101,212 1,112,192 983,191 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Highways and Streets - Continued Public Works Department - Continued Streets and Buildings Division - Continued Street Maintenance Personal Services Employee Benefits Contractual Services Commodities and Supplies Snow Removal Budget Original Final Actual $ 119,161 $ 119,161 $ 124,747 39,621 39,621 38,980 23,185 23,185 18,580 25,988 25,988 23,046 207,955 207,955 205,353 Personal Services 297,953 318,953 332,426 Employee Benefits 101,179 101,179 124,545 Contractual Services 73,084 112,084 118,164 Commodities and Supplies 12,855 11,875 6,108 Capital Expenditures 15,870 15,870 10,888 500,941 559,961 592,131 Storm Sewer/Basin Maintenance Personal Services Employee Benefits Contractual Services Commodities and Supplies Maintenance of State Highways Personal Services Employee Benefits Contractual Services Commodities and Supplies 90 66,528 66,528 69,386 23,295 23,295 25,067 11,670 11,670 9,834 7,231 7;231 1,648 108,724 108,724 105,935 32,969 32,969 31,866 12,715 12,715 13,282 17,742 17,742 14,760 28,681 28,681 26,180 92,107 92,107 86,088 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Highways and Streets - Continued Public Works Department - Continued Streets and Buildings Division - Continued Traffic Sign Maintenance Personal Services Employee Benefits Commodities and Supplies Emergency Event Personal Services Employee Benefits Contractual Services Commodities and Supplies Budget Original Final Actual $ 82,429 $ 82,429 $ 83,599 25,471 25,471 31,128 15,877 15,877 15,818 123.777 123.777 130.545 - 74,000 73,343 - 6,100 5,574 - 116,000 124,614 - 200 148 - 196,300 203,679 Total Streets and Buildings Division 2,291,413 2,557,713 2,459,150 Forestry Division Administration and Support Personal Services Employee Benefits Commodities and Supplies Maintenance of Grounds Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Capital Expenditures 91 177,516 177,516 172,360 73,818 73,818 71,437 - - 349 251,334 251,334 244,146 271,883 271,883 262,683 101,983 109,983 103,439 121,486 121,486 115,320 8,656 8,656 8,320 44,500 44,500 34,987 548,508 556,508 524,749 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Highways and Streets - Continued Public Works Department - Continued Forestry Division - Continued Forestry Program Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Public Grounds Beautification Personal Services Employee Benefits Contractual Services Commodities and Supplies Total Forestry Division Engineering Division Engineering Services Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Capital Expenditures 92 Budget Original Final Actual $ 316,557 $ 340,557 $ 340,170 118,594 118,594 130,828 3,662 3,662 3,662 451,178 451,178 413,518 3,100 3,100 2,516 10,702 10,702 9,175 903,793 927,793 899,869 26,887 26,887 27,395 9,629 9,629 9,938 2,400 2,400 1,676 32,191 32,191 21,802 71,107 71,107 60,811 1,774,742 1,806,742 1,729,575 608,749 608,749 610,650 249,251 249,251 259,020 3,552 3,552 3,322 62,949 62,949 55,841 5,800 5,800 5,300 7,105 7,105 4,482 2,184 2,184 1,790 939,590 939,590 940,405 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Highways and Streets - Continued Public Works Department - Continued Engineering Division - Continued Traffic Control and Street Lighting Personal Services Employee Benefits Contractual Services Utilities Commodities and Supplies Total Engineering Division Capital Expenditures Imrovements Infrastructure Storm Sewer Resurfacing/Curbs Miscellaneous - Forestry Total Improvements Total Highways and Streets Health Community Development - Health Health Inspections Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Health 93 Budget Original Final Actual $ 118,085 $ 118,085 $ 120,106 47,705 47,705 49,217 9,900 9,900 5,950 74,000 74,000 27,778 24,750 24,750 25,026 274,440 274,440 228,077 1,214,030 1,214,030 1,168.482 95,000 95,000 33,936 85,000 85,000 69,749 421,390 421,390 389,385 601,390 601,390 493,070 7,364,350 7,662,650 7,341,461 94,292 94,292 88,649 47,445 47,445 44,967 1,315 1,315 136 9,108 9,108 7,070 1,787 1,787 531 2,216 2,216 709 156,163 156,163 142,062 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual Welfare Human Services Department Administration and Support Personal Services $ 98,598 $ 98,598 $ 98,827 Employee Benefits 56,832 56,832 54,397 Other Employee Costs 700 700 605 Contractual Services 6,250 6,250 4,429 Utilities 5,480 5,480 5,393 Commodities and Supplies 7,900 7,900 5,281 Capital Expenditures 700 700 393 176,460 176,460 169,325 Social Services Personal Services 249,561 254,561 250,894 Employee Benefits 97,704 97,704 98,783 Other Employee Costs 1,150 1,150 1,120 Commodities and Supplies 500 500 454 348,915 353,915 351,251 Nursing/Health Services Personal Services 112,436 112,436 116,545 Employee Benefits 53,918 53,918 57,809 Other Employee Costs 900 900 179 Contractual Services 700 700 16 Commodities and Supplies 2,656 2,656 1,704 170,610 170,610 176,253 Senior Citizen Leisure Activities Personal Services 19,944 19,944 20,004 Employee Benefits 8,152 8,152 8,410 28,096 28,096 28,414 94 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Welfare - Continued Human Services Department - Continued Community Connections Center Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Capital Expenditures Total Human Services Department Community Development - Housing Housing Inspections Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Total Community Development - Housing Total Welfare Culture and Recreation Public Representation - Community and Civic Services Community Groups and Miscellaneous Contractual Services Other Expenditures 95 Budget Original Final Actual $ 170,309 $ 180,309 $ 181,486 63,975 63,975 63,239 860 860 451 93,760 93,760 85,465 5,980 5,980 3,070 2,700 2,700 2,170 1,060 1,060 - 338,644 348,644 335,881 1,062,725 1,077,725 1,061,124 344,970 344,970 315,822 168,137 168,137 153,158 4,881 4,881 1,466 48,381 48,381 36,027 4,895 4,895 531 4,547 4,547 1,696 575,811 575,811 508,700 1,638,536 1,653,536 1,569,824 120,000 165,200 147,841 7,000 7,000 7,038 127,000 172,200 154,879 VILLAGE OF MOUNT PROSPECT, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual Culture and Recreation - Continued 1,844 Public Representation - Community and Civic Services - Continued 4th of July and Civic Events 8,543 Personal Services $ 97,514 Employee Benefits 38,972 Contractual Services 54,795 Commodities and Supplies 37,430 46,890 228,711 $ 97,514 $ 128,157 38,972 41,735 56,995 24,696 37,430 20,454 230,911 215,042 Holiday Decorations 1,844 1,843 Employee Benefits 142 Personal Services 8,543 8,543 8,310 Employee Benefits 2,316 2,316 2,326 Contractual Services 46,890 46,890 36,218 Commodities and Supplies 21,500 21,500 16,228 79,249 79,249 63,082 Blood Drive Program Personal Services 1,844 1,844 1,843 Employee Benefits 142 142 141 Commodities and Supplies 750 950 944 2,736 2,936 2,928 Total Culture and Recreation Total Expenditures M 437,696 485,296 435.931 % 44.321.998 $ 45.693.626 $ 44.516.038 VILLAGE OF MOUNT PROSPECT, ILLINOIS Refuse Disposal - Special Revenue Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2013 Taxes Property - Levy Charges for Services Single -Family Service Charges Multi -Family Service Charges Single -Family Penalties Multi -Family Penalties Contract Admin Fees Refuse Stickers Recycling Bins Total Charges for Services Interest Miscellaneous Budget Original Final Actual $ 1,857,000 $ 1,857,000 $ 1,846,553 1,275,000 1,275,000 1,377,365 915,000 915,000 804,431 15,000 15,000 14,806 30,000 30,000 3,491 155,000 155,000 164,736 210,000 210,000 184,829 500 500 500 2,600,500 2,600,500 2,550,158 500 500 607 500 500 7,537 Total Revenues $ 4,458,500 $ 4,458.500 $ 4.404,855 97 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, 2013 Revenues Taxes Property - Levy Other Taxes Home Rule Sales Tax Interest Miscellaneous Reimbursements Total Revenues Expenditures Debt Service Principal Retirement Interest and Fiscal Charges Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 1,745,400 $ 1,745,400 $ 1,733,518 613,356 613,356 659,274 600 600 575 47,258 47.258 43,501 2,406,614 2,406,614 2,436,868 1,512,311 1,537,311 1,537,312 893,166 918,166 913,882 2,405,477 2,455,477 2,451,194 $ 1,137 $ (48,863) (14,326) 98 $ 121,491 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, 2013 Budget Original Final Actual Revenues Taxes Other Taxes Home Rule Sales Tax $ 621,644 $ 621,644 $ 625,738 Charges for Services 7,500 7,500 - Interest - - 6,341 Miscellaneous 56,500 56,500 108,438 Total Revenues 685,644 685,644 740,517 Expenditures Capital Outlay Public Improvements Infrastructure 750,000 3,348,800 2,311,896 Other 7,150 175,150 60,591 Total Expenditures 757,150 3,523,950 2,372,487 Excess (Deficiency) of Revenues Over (Under) Expenditures (71,506) (2,838,306) (1,631,970) Other Financing Sources Debt Issuance - 10,000,000 9,800,000 Net Change in Fund Balance $ (71.506) $ 7,161,694 8,168,030 Fund Balance - Beginning 3,504,288 Fund Balance - Ending $ 11,672,318 VILLAGE OF MOUNT PROSPECT, ILLINOIS Flood Control Construction - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2013 Total Expenditures $ 757,150 $ 3,523,950 $ 2,372,487 100 Budget Original Final Actual Capital Outlay Public Improvements Infrastructure Creek Bank Stabilization $ 25,000 $ 25,000 $ - Creek Tree Trimming 25,000 25,000 21,391 Levee 37 70,000 168,800 13,564 Private Property Drainage 100,000 100,000 80,510 Prospect Meadows Flood Improvement 500,000 500,000 27,379 Weller Creek Improvements 30,000 30,000 - Hatlen Heights Storm Sewer Improvement - 1,610,000 1,557,629 Hatlen Heights Sanitary Sewer Improvement - 105,000 103,760 Lonnquist Combined Sewer Improvement - 200,000 197,720 Lonnquist Storm Sewer Improvement - 135,000 133,510 Lawrence Lane Storm Sewer Improvement - 50,000 49,341 Golfview Estates Stormwater Improvement - 400,000 84,592 Isabella Combined Sewer Improvement - - 42,500 750.000 3,348,800 2,311,896 Other Bank Fees - 168,000 58,304 Electricity 2,000 2,000 287 Residential Reimbursements 5,150 5,150 2,000 7,150 175,150 60,591 Total Expenditures $ 757,150 $ 3,523,950 $ 2,372,487 100 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. 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. DEA Share Funds Fund: The DEA Share Funds Fund is used to account for the revenues and expenditures associated with the Federal DEA 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 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. Justice Assistance Grant Fund: The Justice Assistance Grant Fund is used to account for the revenues and expenditures associated with the Justice Assistance Grant Fund. The grant is provided by the U.S. Department of Justice for the purpose of reducing crime and improving public safety. 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. 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 transfers from other funds and interest income. Series 2009 Construction: The Series 2009 Construction Fund is used to account for the construction of Fire Station 14, the Emergency Operations Center, and the Public Works Expansion projects. Downtown Redevelopment Construction Fund: The Downtown Redevelopment Construction fund is used to account for the resources to acquire property and construct certain improvements in the Downtown Redevelopment Tax Incremental Financing District No. 1. 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 the sale of general obligation bonds, various taxes, licenses, permits, fees and interest income. VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2013 ASSETS Cash and Investments Receivables - Net of Allowances Property Taxes Other Taxes Other Due from Other Governments Prepaids Total Assets LIABILITIES Accounts Payable Accrued Payroll Other Payables Total Liabilities FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balances Special Capital Revenue Projects Totals $ 1,575,858 $ 3,593,764 $ 5,169,622 242,744 285,634 701,857 8,397 - 400,770 352,000 773 - 242,744 987,491 8,397 752,770 773 $ 2,271,432 $ 4,890, 365 $ 7.161.797 $ 1,088,464 $ 857,177 $ 1,945,641 2,490 - 2,490 448,728 - 448,728 1,539,682 857,177 2,396,859 773 - 773 731,666 - 731,666 - 4,033,188 4,033,188 (689) - (689) 731,750 4,033,188 4,764,938 Total Liabilities and Fund Balances $ 2,271,432 $ 4,890,365 $ 7,161,797 101 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, 2013 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending 43,962) 43,411 (700,551) 203,112 - 203,112 - (36,865) (36,865) 203,112 (36,865) 166,247 (540,850) 1.272.600 6,546 4,026,642 (534,304) 5,299,242 $ 731,750 S 4,033,188 $ 4,764,938 102 Special Capital Revenue Projects Totals Revenues Taxes $ 1,026,648 $ 5,491,456 $ 6,518,104 Intergovernmental 1,794,037 446,783 2,240,820 Interest 527 2,140 2,667 Miscellaneous 146,288 318,959 465,247 Total Revenues 2,967.500 6,259,338 9,226,838 Expenditures General Government 1,600,557 - 1,600,557 Public Safety 58,392 - 58,392 Highways and Streets 1,753,385 - 1,753,385 Welfare 299,128 - 299,128 Capital Outlay - 6,215,927 6,215,927 Total Expenditures 3,711,462 6,215,927 9,927,389 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending 43,962) 43,411 (700,551) 203,112 - 203,112 - (36,865) (36,865) 203,112 (36,865) 166,247 (540,850) 1.272.600 6,546 4,026,642 (534,304) 5,299,242 $ 731,750 S 4,033,188 $ 4,764,938 102 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet December 31, 2013 See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet December 31, 2013 Community DEA Motor Development Asset Shared Fuel Tax Block Grant Seizure Funds ASSETS Cash and Investments $ 311,332 $ 64,971 $ 42,945 $ 11,514 Receivables - Net of Allowances Other Taxes 135,545 - - - Other 1,220 - 404 - Due from Other Governments 3,989 396,781 - Prepaids - 689 - - Total Assets $ 452,086 $ 462441 $ 43.349 $ 11,514 LIABILITIES Accounts Payable $ 113,225 $ 11,223 $ 690 $ - Accrued Payroll - 2,490 - - Other Payables - 448,728 - - Total Liabilities 113,225 462,441 690 - FUND BALANCES Nonspendable - 689 - - Restricted 338,861 - 42,659 11,514 Unassigned - (689) - - Total Fund Balances 338,861 - 42,659 11,514 Total Liabilities and Fund Balances $ 452,086 $ 462.441 $ 43,349 $ 11.514 103 Foreign Justice DUI Fire Assistance Business Fines Insurance Grant District Totals $ 58,514 $ 273,262 $ - $ 813,320 $ 1,575,858 _ _ - 150,089 285,634 6,773 - - - 8,397 _ _ _ - 400,770 84 - - 773 $ 65.287 $ 273,346 - S 963,409 2,271,432 $ 963,326 $ 1,088,464 _ - - 2,490 _ 448.728 963,326 1,539,682 - 84 - - 773 65,287 273,262 - 83 731,666 _ _ _ (689) 65,287 273,346 - 83 731,750 $ 65.287 $ 273,346 $ - $ 963.409 $ 2.271.432 104 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, 2013 105 Community DEA Motor Development Asset Shared Fuel Tax Block Grant Seizure Funds Revenues Taxes $ - $ - $ - $ - Intergovernmental 1,569,682 165,868 16,862 6,585 Interest 111 - 20 10 Miscellaneous 12,983 133,260 - - Total Revenues 1,582,776 290.128 16,842 6,505 Expenditures Current General Government - - - - Public Safety - - 14,702 - Highways and Streets 1,753,385 - - - Welfare - 299,128 - - Total Expenditures 1,753,385 299,128 14,702 - Excess (Deficiency) of Revenues Over (Under) Expenditures (170,609) - 2,180 6,595 Other Financing Sources Transfers In - - - - Net Change in Fund Balances (170,609) - 2,180 6,595 Fund Balances - Beginning 509,470 - 40,479 4,919 Fund Balances - Ending $ 338.861 $ - $ 42:659 $ 11:514 105 106 Foreign Justice DUI Fire Assistance Business Fines Insurance Grant District Totals $ - $ 63,322 $ - $ 963,326 $ 1,026,648 35,040 - - - 1,794,037 68 236 - 82 527 - 45 - - 146,288 35,108 63.603 - 963,408 2.967,500 - - 1,600,557 1,600,557 25,252 17,603 835 - 58,392 - - - - 1,753,385 - - - - 299,128 25,252 17,603 835 1,600,557 3,711,462 9,856 46,000 (835) (637,149) (743,962) - - - 203.112 203.112 9,856 46,000 (835) (434,037) (540,850) 55,431 227,346 835 434,120 1,272,600 $ 65.287 $ 273.346 $ - $ 8.3 $ 731.750 106 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, 2013 Revenues Intergovernmental Motor Fuel Tax Allotments Interest Miscellaneous Total Revenues Expenditures Highway and Streets Street Division Net Change in Fund Balance Fund Balance - Beginning Budget Original Final Actual $ 1,690,000 $ 1,690,000 $ 1,569,682 100 100 111 15,000 15,000 12,983 1,705,100 1,705,100 1,582,776 1,764,366 1,830,366 1,753,385 $ (59,266) $ (125,266) (170,609) UWATOWUM Fund Balance - Ending $ 338,861 107 VILLAGE OF MOUNT PROSPECT, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2013 Highway and Streets Street Maintenance Contractual Services Snow Removal Commodities and Supplies Traffic Control/Street Lighting Contractual Services Utilities Total Traffic Control/Street Lighting Street Improvement Projects Infrastructure Total Expenditures Budget Original Final Actual $ 99,432 $ 99,432 $ 99,415 263,064 263,064 302,544 86,870 150,000 86,870 150,000 80,024 156,402 236,870 236,870 236,426 1,165,000 1,231,000 1,115,000 $ 1,764,366 $ 1,830,366 $ 1,753,385 108 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, 2013 Revenues Intergovernmental Grant - CDBG Miscellaneous Program Income Total Revenues Expenditures Welfare Administration Community Programs Residential Rehabilitation CDBG Programs Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 230,203 $ 400,409 $ 165,868 60,000 117,500 133,260 290,203 517,909 299,128 47,979 47,979 65,051 57,000 42,000 42,000 155,224 390,430 154,577 30,000 37,500 37,500 290,203 517,909 299,128 109 VILLAGE OF MOUNT PROSPECT, ILLINOIS Community Development Block Grant - Special Revenue Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2013 Welfare Administration and Support Personal Services Employee Benefits Other Employee Costs Contractual Services Commodities and Supplies Total Administration and Support Community Programs Contractual Services Residential Rehabilitation Personal Services Employee Benefits Contractual Services Other Expenditures Total Residential Rehabilitation CDBG Programs Briarwood Project Capital Expenditures Total Expenditures Budget Original Final Actual $ 27,450 $ 27,450 $ 37,307 13,618 13,618 23,115 1,000 1,000 793 5,411 5,411 3,554 500 500 282 47,979 47,979 65,051 57,000 42.000 42,000 19,644 19,644 8,653 11,580 11,580 1,752 30,000 55,206 6,754 94,000 304,000 137,418 155,224 390,430 154,577 30,000 37,500 37,500 $ 290.203 $ 517.909 $ 299.128 110 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, 2013 Fund Balance - Beginning 40,479 Fund Balance - Ending $ 42,659 111 Budget Original Final Actual Revenues Intergovernmental Seized Assets $ 3,000 $ 3,000 $ 16,862 Interest 100 100 20 Total Revenues 3,100 3,100 16,882 Expenditures Public Safety Other Employee Costs 1,000 1,000 - Contractual Services 1,500 5,500 4,000 Capital Expenditures 15,000 15,000 10,702 Total Expenditures 17,500 21.500 14,702 Net Change in Fund Balance $ (14,400) $ (18,400) 2,180 Fund Balance - Beginning 40,479 Fund Balance - Ending $ 42,659 111 VILLAGE OF MOUNT PROSPECT, ILLINOIS DEA Shared Funds - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2013 Revenues Intergovernmental DEA Shared Funds Interest Total Revenues Expenditures Public Safety Contractual Services Capital Expenditures Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending 112 Budget Original Final Actual $ 1,000 $ 1,000 $ 6,585 100 100 10 1,100 1,100 6,595 1,000 1,000 - 4,000 4,000 - 5,000 5,000 - $ (3,900) $ (3,900) 6,595 4,919 $ 11,514 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, 2013 Revenues Intergovernmental DUI Fines Interest Total Revenues Expenditures Public Safety Patrol and Traffic Enforcement Contractual Services Capital Expenditures Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 20,000 100 $ 20,000 100 $ 35,040 68 20,100 20,100 35,108 1,000 10,000 8,200 19,500 7,188 18,064 11,000 27,700 25,252 $ 9,100 $ (7,600) 9,856 113 55,431 $ 65,287 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, 2013 Revenues Other Taxes Foreign Fire Insurance Tax Interest Miscellaneous Total Revenues Expenditures Public Safety Insurance Contractual Services Commodities and Supplies Equipment Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 55,000 $ 55,000 $ 63,322 - 236 - - 45 55,000 55,000 63,603 500 500 - 10,000 10,000 3,243 3,000 3,000 3,033 15,000 15,000 11,327 28,500 28,500 17,603 $ 26,500 $ 26,500 46,000 114 227,346 $ 273,346 VILLAGE OF MOUNT PROSPECT, ILLINOIS Justice Assistance Grant - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2013 Revenues Intergovernmental Byrne Justice Grant Expenditures Public Safety Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual - 836 $ - $ (836) 115 835 (835) 835 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, 2013 Revenues Other Taxes Food and Beverage Tax Hotel/Motel Tax Movie Theatre Tax Business District Tax Interest Total Revenues Expenditures General Government 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 $ 222,000 90,000 125,000 234,000 $ 325,000 190,000 130,000 320,000 $ 328,246 189,563 127,990 317,527 82 671,000 965,000 963,408 496,521 1,602,232 1,600,557 174,479 (637,232) (637,149) - 203,200 203,112 $ 174.479 $ (434.032) (434,037) 434,120 116 $ 83 VILLAGE OF MOUNT PROSPECT, ILLINOIS Nonmajor Governmental - Capital Projects Funds Combining Balance Sheet December 31, 2013 ASSETS Cash and Investments Receivables - Net of Allowances Property Taxes Other Taxes Due from Other Governments Total Assets LIABILITIES Accounts Payable FUND BALANCES Assigned Total Liabilities and Fund Balances 117 Capital Improvement $ 1,719,109 318,174 352.000 $ 2,389,283 $ 291,980 $ 2,389,283 Series 2009 Construction Downtown Redevelopment Construction Street Improvement Construction Totals $ - $ 907.763 $ 966,892 $ 3,593,764 - 242,744 - 242,744 - - 383,683 701,857 - - - 352,000 $ - $ 1,150,507 $ 1,350,575 $ 4,890,365 $ - $ 81,574 $ 483,623 $ 857,177 1,068,933 866,952 4,033,188 $ - $ 1,150,507 $ 1,350,575 $ 4,890,365 118 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, 2013 Capital imnrovement Revenues Taxes Property Taxes $ Other 1,180,962 Intergovernmental 443,171 Interest 876 Miscellaneous 307,233 Total Revenues 1,932,242 Expenditures Capital Outlay 2,128,161 Excess (Deficiency) of Revenues Over (Under) Expenditures (195,919) Other Financing (Uses) Transfers Out Net Change in Fund Balances (195,919) Fund Balances - Beginning 2,293,222 Fund Balances - Ending $ 2,097,303 119 Downtown Series 2009 Redevelopment Construction Construction Street Improvement Construction Totals $ - $ 2,664,680 $ - $ 2,664,680 - - 1,645,814 2,826,776 - - 3,612 446,783 7 1,066 191 2,140 - - 11,726 318,959 7 2,665,746 1,661,343 6,259,338 - 2,958,933 1,128,833 6,215,927 7 (293,187) 532,510 43,411 (36,865) - - (36,865) (36,858) (293,187) 532,510 6,546 36,858 1,362,120 334,442 4,026,642 $ - $ 1,068,933 $ 866,952 $ 4,033,188 120 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, 2013 Revenues Taxes Other Taxes Home Rules Sales Tax Intergovernmental Grants Interest Miscellaneous Donations Other Total Revenues Expenditures Capital Outlay Village Facilities Equipment Public Improvements Infrastructure Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budizet Original Final Actual $ 1,135,000 500 5,000 $ 1,135,000 92,000 500 285,000 24,000 $ 1,180,962 443,171 876 283,233 24,000 1,140,500 1,536,500 1,932,242 95,000 193,000 177,966 389,247 598,102 373,867 820,500 1,178,000 1,061,175 370,000 695,000 515,153 1,674,747 2,664,102 2,128,161 $ (534,247) $ (1,127,602) (195,919) 121 2,293,222 $ 2,097,303 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Improvement - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2013 Capital Outlay Village Facilities Other Public Buildings Equipment Broadcast Camera Replacement Board Room Cameras Computer Financial Software Equipment Furniture Replacement Other Equipment- Mobile Video Radio Equipment - Police/Fire Total Equipment Public Improvement Building Improvements Infrastructure Residential Street Lights Bike Path Kensington Road Improvement Detention Pond Improvement Total Infrastructure Total Expenditures Budget Original Final Actual $ 95,000 $ 193,000 $ 177,966 45,000 45,000 33,754 - 14,455 12,450 - 194,400 22,133 45,000 45,000 - 172,000 172,000 155,444 127,247 127,247 150,086 389,247 598,102 373,867 820,500 1,178,000 1,061,175 65,000 65,000 19,423 25,000 30,000 - 100,000 420,000 354,063 180,000 180.000 141,667 370,000 695,000 515,153 $ 1.674.747 $ 2.664.102 $ 2,128.161 122 VILLAGE OF MOUNT PROSPECT, ILLINOIS Series 2009 Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2013 Revenues Interest Expenditures Capital Outlay Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing (Uses) Transfers Out Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ - $ - $ 7 'll - (37,000) (36,865) $ - $ (37,000) (36,858) 36.858 123 VILLAGE OF MOUNT PROSPECT, ILLINOIS Downtown Redevelopment Construction - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2013 Revenues Taxes Property Taxes Property Taxes - Other Tax Increment Interest Total Revenues Expenditures Capital Outlay Public Improvements Contractual Services Public Improvements Infrastructure Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Budget Original Final Actual $ 241,000 $ 241,000 $ 241,350 2,440,000 2,440,000 2,423,330 1,000 1,000 1,066 2,682,000 2,682,000 2,665,746 192,990 192,990 191,975 2,751,531 2,751,531 2,673,098 348,000 348,000 93,860 3,292,521 3.292.521 2,958,933 $ (610,521) $ (610,521) (293,187) 1.362.120 Fund Balance - Ending $ 1,068,933 124 VILLAGE OF MOUNT PROSPECT, ILLINOIS Downtown Redevelopment Construction - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2013 Capital Outlay Public Improvements Contractual Services Audit Services Other Professional Services Streetscape Corridor Maintenance Brick Sidewalk Sealing Streetscape Furnishing Total Contractual Services Public Improvements Other Financing Costs Property Tax Expense NWE Sales Tax Rebate Return of Increment Cook County Collector Fagade Program Total Public Improvements Infrastructure Downtown Streetscape Program Brick Sidewalk Total Infrastructure Budget Original Final Actual $ 990 $ 990 $ 960 20,000 20,000 19,665 57,000 57,000 56,350 75,000 75,000 75,000 40,000 40,000 40,000 192,990 192,990 191,975 10,000 10,000 - 5,000 5,000 6,969 109,000 109,000 98,598 2,567,531 2,567,531 2,567,531 60,000 60,000 - 2,751,531 2,751,531 2,673,098 328,000 328,000 88,005 20,000 20,000 5,855 348,000 348,000 93,860 Total Expenditures $ 3,292,521 $ 3,292,521 $ 2,958,933 125 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, 2013 Revenues Other Taxes Home Rule Sales Tax Municipal Motor Fuel Tax Intergovernmental DCEO Grant Interest Miscellaneous Total Revenues Expenditures Capital Outlay Contractual Services Infrastructure Street Reconstruction Total Expenditures Net Change in Fund Balance Fund Balance - Beginning Fund Balance - Ending Budget Original Final Actual $ 1,235,000 310,000 500 5,000 $ 1,235,000 310,000 500 5,000 $ 1,285,012 360,802 3,612 191 11,726 1,550,500 1,550,500 1,661,343 30,000 30,000 26,883 1,465,500 1,535,850 1,101,950 1,495,500 1,565,850 1,128,833 $ 55,000 $ (15,350) 532,510 126 ')') A A A 7 $ 866,952 PROPRIETARY FUNDS ENTERPRISE FUNDS 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. 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, 2013 Operating Revenues Charges for Services Budget Original Final Actual $ 10,660,000 $ 11,555,000 $ 11,507,264 Operating Expenses Administration and Maintenance 12,642,921 14,196,396 11,622,593 Depreciation - - 455,628 Total Operating Expenses 12,642,921 14,196,396 12,078,221 Operating Income (Loss) (1,982,921) (2,641,396) (570,957) Nonoperating Revenues (Expenses) Property Taxes 1,516,000 1,516,000 1,507,661 Interest Income 3,000 3,000 3,040 Other Income 41,000 66,000 109,934 Disposal of Capital Assets - - (19,221) 1,560,000 1,585,000 1,601,414 Change in Net Position $ (422,921) $ (1.056.396)_ 1,030,457 Net Position - Beginning Net Position - Ending 127 �� ncc nnc $ 34,086,453 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2013 Charges for Services Water Sales Sewer Fees Sewer Construction Charge Water Penalties Water Meter Fees Water and Sewer Taps Sewer Penalties Miscellaneous Budget Original Final $ 7,739,000 1,960,000 805,000 125,000 15,000 15,000 1,000 $ 8,464,000 2,130,000 805,000 125,000 15,000 15,000 1,000 Actual $ 8,524,850 2,130,068 682,805 87,165 17,399 26,675 28,729 9,573 Total Operating Revenues $ 10,660,000 $ 11,555,000 $ 11,507,264 128 VILLAGE OF MOUNT PROSPECT, ILLINOIS Water and Sewer - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2013 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 Total Water Supply Maintenance and Repair Budget Original Final Actual $ 389,791 $ 389,791 $ 391,187 212,667 212,667 245,986 35,941 35,941 24,873 635,259 705,049 675,262 42,900 42,900 33,017 79,383 79,383 79,383 11,660 11,660 8,933 7,918 7,918 2,158 1,415,519 1,485,309 1,460,799 143,500 156,500 156,214 48,023 48,023 68,558 61,365 61,365 14,864 8,000 8,000 4,191 1,500 1,500 998 262,388 275,388 244,825 61,053 61,053 62,999 19,380 19,380 20,272 37,000 37,000 32,665 5,799 5,799 5,561 123,232 123,232 121,497 380,103 393,103 392,911 140,933 140,933 144,090 144,428 144,428 69,019 95,000 95,000 66,088 85,182 85,182 21,951 129 845,646 858,646 694,059 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, 2013 Budget Original Final Actual Administration and Maintenance - Continued Water Distribution Maintenance and Repair Personal Services Employee Benefits Contractual Services Commodities and Supplies Capital Expenses Total Water Distribution Maintenance and Repair $ 276,031 $ 304,031 $ 298,623 94,724 94,724 100,680 218,302 218,302 185,408 69,285 69,285 88,242 1,344 1,344 - 659,686 687,686 672,953 Water Valve and Hydrant Maintenance Personal Services 275,230 282,230 282,826 Employee Benefits 108,553 108,553 111,357 Contractual Services 19,258 19,258 16,620 Commodities and Supplies 93,436 91436 75,051 Total Water Valve and Hydrant Maintenance 496,477 503,477 485,854 Water Meter Installation, Repair and Replacement Personal Services 129,275 162,275 161,255 Employee Benefits 39,133 39,133 46,078 Contractual Services 97,750 97,750 69,893 Commodities and Supplies 4,949 4,949 2,884 Capital Expenses 63,345 63,345 27,938 Total Water Meter Installation, Repair and Replacement 334,452 367,452 308,048 Equipment Maintenance Contractual Services 779,287 779,287 779,287 Sanitary Sewer Maintenance and Repair Personal Services 209,292 225,292 223,864 Employee Benefits 70,873 70,873 86,651 130 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, 2013 Budget Original Final Actual Administration and Maintenance - Continued Sanitary Sewer Maintenance and Repair - Continued Contractual Services $ 142,290 $ 142,290 $ 124,700 Utilities 22,660 22,660 14,953 Commodities and Supplies 26,152 26,152 25,610 Total Sanitary Sewer Maintenance and Repair 471,267 487,267 475,778 Water System Improvements Capital Expenses 1,140,000 2,647,405 316,672 Less Capital Assets Capitalized - (345,720) (6,139) Total Water System Improvements 1,140,000 2,301,685 310,533 Sanitary System Improvements Capital Expenses 1,059,000 1,508,000 1,050,357 Less Capital Assets Capitalized (200,000) (477,000) (212,011) Total Sanitary System Improvements 859,000 1,031,000 838,346 Improvements to Public Buildings Capital Expenses 34,000 34,000 - Less Capital Assets Capitalized - - - Total Improvements to Public Buildings 34,000 34,000 - Lake Michigan Water Acquisition Contractual Services 5,221,967 5,261,967 5,230,614 Total Administration and Maintenance 12,642,921 14,196.396 11.622.593 Depreciation Total Operating Expenses 455.628 $ 12,642,921 $ 14,196,396 $ 12,078,221 131 VILLAGE OF MOUNT PROSPECT, ILLINOIS Combining Statement of Net Position - Nonmajor Enterprise Funds December 31, 2013 ASSETS Current Assets Cash and Investments Receivables - Net of Allowances Other Taxes Total Current Assets Noncurrent Assets Capital Assets Nondepreciable Depreciable Accumulated Depreciation Total Noncurrent Assets Total Assets Parking System Village Parking Revenue System Totals 132 25,230 $ 316,808 $ 316,808 2,803 28,033 25,230 319,611 344,841 - 232,354 232,354 364,800 - 364,800 (364,800) - (364,800) - 232,354 232,354 25,230 551,965 577,195 LIABILITIES Current Liabilities Parking System Village Parking Revenue System Totals Accounts Payable 8,978 496 9,474 Accrued Payroll 1,890 2,623 4,513 Due to Other Funds 212,603 - 212,603 Other Payables 3,195 20,214 23,409 Compensated Absences Payable 142 195 337 Total Current Liabilities 226,808 23,528 250,336 Noncurrent Liabilities Compensated Absences Payable 568 781 1,349 Net Other Post -Employment Benefits Obligation Payable 456 1,222 1.678 Total Noncurrent Liabilities 1,024 2,003 3,027 Total Liabilities 227,832 25,531 253,363 NET POSITION Investment in Capital Assets - 232,354 232,354 Unrestricted (202,602) 294,080 91,478 Total Net Position $ (202,602) $ 526,434 $ 323,832 133 VILLAGE OF MOUNT PROSPECT, ILLINOIS Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Enterprise Funds For the Fiscal Year Ended December 31, 2013 Operating Revenues Charges for Services Parking Fees Operating Expenses Administration, Maintenance and Improvements Operating Income (Loss) Nonoperating Revenues Home Rule Sales Tax Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Parking System Village Parking Revenue System Totals $ 109,725 173,346 $ 124,733 172,957 $ 234,458 346,303 (63,621) (48,224) (111,845) 93,645 - 10,405 347 104,050 347 93,645 10,752 104,397 30,024 (37,472) (7,448) (232,626) 563,906 331,280 $ (202,602) $ 526,434 $ 323,832 134 VILLAGE OF MOUNT PROSPECT, ILLINOIS Combining Statement of Cash Flows - Nonmajor Enterprise Funds For the Fiscal Year Ended December 31, 2013 Cash Flows from Operating Activities Receipts from Customers and Users Payments to Suppliers Payments to Employees Cash Flows from Investing Activities Interest Received Net Change in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year Cash and Cash Equivalents - End of Year Parking System Village Parking Revenue System Totals $ 192,867 $ 144,385 $ 337,252 (151,487) (152,298) (303,785) (41,380) (21,154) (62,534) (29,067) (29,067) 347 347 (28,720) (28,720) 345,528 345,528 $ - $ 316.808 $ 316.808 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities. Operating Income (Loss) $ (63,621) $ (48,224) $ (111,845) Adjustments to Reconcile Operating Income to Net Income to Net Cash Provided by (Used in) Operating Activities. Other Income (Increase) Decrease in Current Assets Increase (Decrease) in Current Liabilities 93,645 10,405 104,050 (10,503) 9,247 (1,256) (19,521) (495) (20,016) Net Cash Provided by Operating Activities $ - $ (29.067) $ (29.067) 135 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, 2013 Operating Revenues Charges for Services Parking Fees Parking Fees - Lot A Parking Fees - Lot C Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating Income (Loss) Nonoperating Revenues Home Rule Sales Tax Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 60,000 50,000 $ 60,000 50,000 $ 60,423 49,302 110,000 295,252 110,000 295,252 109,725 173,346 (185,252) (185,252) (63,621) 90,000 500 90,000 500 93,645 - 90,500 90,500 93,645 $ (94.752) $ (94.752) 30,024 136 (232,626) $ (202,602) VILLAGE OF MOUNT PROSPECT, ILLINOIS Parking System Revenue - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2013 Administration, Maintenance and Improvements Personal Services Employee Benefits Contractual Services Utilities Insurance Commodities and Supplies Capital Expenses Budget Original Final Actual $ 41,661 21,357 110,944 10,317 1,387 9,586 100,000 $ 41,661 21,357 110,944 10,317 1,387 9,586 100,000 $ 36,170 16,351 105,382 6,932 1,387 7,124 Total Operating Expenses $ 295.252 $ 295.252 $ 173.346 137 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, 2013 Operating Revenues Charges for Services Parking Fees Parking Fees - Lot D Space Rent - Wille Street Lot Rental Fees Total Operating Revenues Operating Expenses Administration, Maintenance and Improvements Operating Income (Loss) Nonoperating Revenues Home Rule Sales Tax Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 100,000 $ 100,000 $ 106,133 9,000 9,000 12,000 6,600 6,600 6,600 115,600 115,600 124,733 296,350 296,350 172,957 (180,750) (180,750) (48,224) 10,000 10,000 10,405 500 500 347 10,500 10,500 10,752 $ (170,250) $ (,170.250) (37,472) 563,906 $ 526,434 138 VILLAGE OF MOUNT PROSPECT, ILLINOIS Village Parking System - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual Administration, Maintenance and Improvements Personal Services $ 21,875 $ 21,875 $ 27,994 Employee Benefits 9,860 9,860 11,458 Contractual Services 92,657 92,657 79,597 Insurance 1,158 1,158 1,158 Commodities and Supplies 500 500 - Capital Expenses 170,300 170,300 52,750 Total Operating Expenses $ 296,350 $ 296,350 $ 172,957 139 INTERNAL SERVICE FUNDS 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, Water and Sewer, Parking System Revenue and Village Parking 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. VILLAGE OF MOUNT PROSPECT, ILLINOIS Combining Statement of Net Position - Internal Service Funds December 31, 2013 See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Combining Statement of Net Position - Internal Service Funds December 31, 2013 Computer Replacement ASSETS Current Assets Cash and Investments $ 487,229 Receivables - Net of Allowances Other - Due from Other Governments - Prepaids - Inventories - Total Current Assets 487,229 Noncurrent Assets Capital Assets Nondepreciable - Depreciable 65,253 Accumulated Depreciation (38,627) 26,626 Other Assets Deposits - Insurance - Total Noncurrent Assets 26,626 Total Assets 513,855 LIABILITIES Current Liabilities Accounts Payable - Accrued Payroll - Claims Payable - Other Payables - Compensated Absences Payable - Total Current Liabilities - Long -Term Liabilities Compensated Absences Payable - Net Other Post -Employment Benefit Obligation Payable - Total Long -Term Liabilities - Total Liabilities - NET POSITION Investment in Capital Assets 26,626 Unrestricted 487,229 Total Net Position $ 513,855 140 Risk Vehicle Vehicle Management Replacement Maintenance Totals $ 2,251,079 $ 7,532,245 $ 559,797 $ 10,830,350 2,624 - 1,980 4,604 - 2,622 9,113 11,735 73.100 - 521 73,621 - - 291,331 291,331 2,326,803 7,534,867 862,742 11,211,641 - 248,574 - 248,574 - 11,577,571 139,860 11,782,684 - (7,804,918) (122334) (7,965,879) - 4,021,227 17,526 4,065,379 521.810 - - 521,810 521,810 4,021,227 17,526 4,587,189 2,848,613 11,556,094 880,268 15,798,830 27,828 350 62,092 90,270 - - 82,796 82,796 849,879 - - 849,879 28,537 - - 28,537 - - 30,671 30,671 906,244 350 175,559 1,082,153 - - 122,682 122,682 - - 6,696 6,696 - - 129.378 129,378 906.244 350 304.937 1,211,531 - 4,021,227 17,526 4,065,379 1,942,369 7,534,517 557,805 10,521,920 $ 1.942.369 $ 11.555.744 $ 575.331 $ 14.587.299 141 VILLAGE OF MOUNT PROSPECT, ILLINOIS Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds For the Fiscal Year Ended December 31, 2013 Computer Replacement Operating Revenues Charges for Services $ - Contributions T Miscellaneous Total Operating Revenues - Operating Expenses Administration and Maintenance 223,643 Insurance and Claims - Depreciation 13,051 Total Operating Expenses 236,694 Operating Income (Loss) (236,694) Nonoperating Revenues Interest Income 867 Disposal of Capital Assets - 867 Change in Net Position (235,827) Net Position - Beginning 749,682 Net Position - Ending 142 $ 513,855 Risk Vehicle Vehicle Management Replacement Maintenance Totals $ 6,108,848 $ 1,416,295 $ 2,193,313 $ 9,718,456 1,280,867 - - 1,280,867 13,379 - 138 13,517 7.403.094 1,416,295 2,193,451 11,012,840 372,268 375 2,157,558 2,753,844 6,554,898 - - 6,554,898 - 602,137 6,255 621,443 6,927,166 602,512 2,163,813 9,930,185 475,928 813,783 29,638 1,082,655 3,725 7,926 516 13,034 - 70,948 - 70,948 3,725 78,874 516 83,982 479,653 892,657 30,154 1,166,637 1,462,716 10,663,087 545,177 13,420,662 $ 1,942,369 $ 11,555,744 $ 575,331 $ 14,587 299 143 VILLAGE OF MOUNT PROSPECT, ILLINOIS Combining Statement of Cash Flows - Internal Service Funds For the Fiscal Year Ended December 31, 2013 Computer Replacement Cash Flows from Operating Activities Interfund Services Provided $ - Payment to Suppliers (223,643) Payment to Employees - (223,643) Cash Flows from Capital and Related Financing Activities Disposal of Capital Assets - Purchase of Capital Assets - Cash Flows from Investing Activities Interest Received 867 Net Change in Cash and Cash Equivalents (222,776) Cash and Cash Equivalents - Beginning 710,005 Cash and Cash Equivalents - Ending $ 487,229 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) $ (236,694) Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation 13,051 (Increase) Decrease in Current Assets - Increase (Decrease) in Current Liabilities Net Cash Provided by Operating Activities 144 $ (223,643) Risk Vehicle Vehicle - (418,215) Management Replacement Maintenance Totals $ 2,251,079 $ 7,532,245 $ 559.797 $ 10.830,350 $ 7,617,013 $ 1,429,256 $ 2,288,344 $ 11,334,613 (7,285,212) (9,029) (1,249,105) (8,766,989) - - (899,495) (899,495) 331,801 1,420,227 139,744 1,668,129 - 90,948 - (509,163) - 90,948 - (509,163) - (418,215) - (418,215) 3,725 7,926 516 13,034 335,526 1,915,553 1,009,938 6,522,307 140,260 419,537 1,262,948 9,567,402 $ 2,251,079 $ 7,532,245 $ 559.797 $ 10.830,350 $ 475,928 $ 813,783 $ 29,638 $ 1,082,655 - 602,137 6,255 621,443 213,919 12,961 94,893 321,773 (358,046) (8,654) 8,958 (357,742) 331.801 $ 1,420,227 $ 139,744 $ 1,668.129 145 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, 2013 Operating Revenues Charges for Services Operating Expenses Administration Capital Outlay Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues Interest Income Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual 246,200 - 246,200 - 223,643 13,051 246,200 246,200 236,694 (246,200) 1,000 (246,200) 1,000 (236,694) 867 $ (245,200) $ (245,200) (235,827) 749,682 $ 513,855 146 VILLAGE OF MOUNT PROSPECT, ILLINOIS Computer Replacement - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2013 Administration Capital Outlay Depreciation Total Operating Expenses 147 Budget Original Final Actual $ 246,200 $ 246,200 $ 223,643 13,051 $ 246.200 $ 246,200 $ 236,694 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, 2013 Total Operating Revenues 13tid,.4et 7,667,501 7,403,094 Operating Expenses Original Final Actual Administration 343,998 Operating Revenues 372,268 Insurance and Claims 7,322,364 Charges for Services $ 6,213,501 $ 6,213,501 $ 6,108,848 Contributions 1,452,000 1,452,000 1,280,867 Miscellaneous 2,000 1000 13,379 Total Operating Revenues 7,667,501 7,667,501 7,403,094 Operating Expenses Administration 343,998 408,998 372,268 Insurance and Claims 7,322,364 7,336,194 6,554,898 Total Operating Expenses 7,666,362 7,745,192 6,927,166 Operating Income (Loss) 1,139 (77,691) 475,928 Nonoperating Revenues Interest Income 2,000 2,000 3,725 Income (Loss) Before Transfers 3,139 (75,691) 479,653 Transfers Out - (370,000) - Change in Net Position $ 3,139 $ (445,691) 479,653 Net Position - Beginning 1,462,716 Net Position - Ending $ 1,942,369 148 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual Charges for Services General Fund $ 5,262,159 $ 5,262,159 $ 5,154,042 Refuse Disposal Fund 33,714 33,714 33,714 Water and Sewer Fund 123,183 123,183 123,183 Parking System Revenue Fund 1,387 1,387 1,387 Village Parking System Fund 1,158 1,158 1,158 Vehicle Maintenance Fund 21,900 21,900 21,900 Library 770,000 770,000 773,464 Total Charges for Services 6,213,501 6,213,501 6,108,848 Contributions Employee Health Insurance 387,000 387,000 426,088 Additional Life Insurance 9,000 9,000 11,346 Retiree Health Insurance 1,056,000 1,056,000 843,433 Total Contributions 1,452,000 1,452,000 1,280,867 Miscellaneous Other Reimbursements 2,000 2,000 2,471 Miscellaneous Income - - 10,908 Total Miscellaneous 2,000 2,000 13,379 Total Operating Revenues $ 7,667,501 $ 7,667.501 $ 7.403.094 149 VILLAGE OF MOUNT PROSPECT, ILLINOIS Risk Management - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2013 Administration Casualty and Property Program Claims Administration Other Contractual Services Medical Program Claims Administration Workers' Compensation Claims Administration Capital Outlay Other Equipment Total Administration Insurance and Claims Casualty and Property Program Property Insurance HELP Excess Liability Insurance Workers' Compensation Insurance Faithful Performance Insurance Surety Bonds Other Insurance Property Claims Liability Claims Workers' Compensation Claims Auto Claims Village Property Claims Unemployment Compensation Claims Tree Hazard Study Other Claims Medical Program Medical Expense - HMO Plan Medical Expense - Indemnity Plan Other Medical Claims Life Insurance Total Insurance and Claims Total Operating Expenses 150 13ud�,,et iainal ]:Mal Actual $ 27,000 $ 27,000 $ 9,496 7,500 11,500 10,950 34,500 38,500 20.446 307.498 307:498 289.567 61,000 60.114 2,000 2.000 2,141 343,998 408,998 372,268 104,500 106,850 106,821 78,500 78,500 74,617 59,500 70,750 70,747 2,500 2,680 2,678 2,000 2,000 - 2,200 2,250 2,245 1,000 1,000 - 100,000 100,000 77,745 470,000 470,000 441,593 20,000 20,000 7,866 25,000 25,000 9,366 10,000 10,000 13,405 15,000 15,000 4,175 4,500 4.500 1069 894;700 908,530 8145327 1,734,300 1,734,300 1,610,938 4,665,564 4,665,564 4,102,353 1,000 1,000 - 26,800 26.800 27:280 6.427.664 6,427,664 5.740,571 7322,364 7,336.194 6,554,898 7,666362$ 7,745,192 $ 6.927.166 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, 2013 Operating Revenues Charges for Services Operating Expenses Administration Depreciation Total Operating Expenses Operating Income Nonoperating Revenues Interest Income Disposal of Capital Assets Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 1,409,350 $ 1,416,350 $ 1,416,295 362,000 - 725,200 - 375 602,137 362,000 725,200 602,512 1,047,350 691,150 813,783 3,500 50,000 8,500 91,000 7,926 70,948 53,500 99,500 78,874 $ 1,100,850 $ 790,650 892,657 151 $ 11,575,744 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2013 Charges for Services General Fund Mayor and Board Manager's Office Television Services Division Community Development - Planning Community Development - Housing Community Development - Health Police Department Fire Department Public Works Department Engineering Division Water and Sewer Fund Parking System Fund Village Parking Fund Total Operating Revenues 152 Budget Original Final Actual $ 2,300 $ 2,300 2,700 2,700 1,700 1,700 1,500 1,500 6,000 6,000 1,500 1,500 177,950 184,950 561,700 561,700 353,000 353,000 8,900 8,900 263,200 263,200 11,560 11,560 17,340 17,340 2,300 2,700 1,700 1,500 6,000 1,500 184,895 561,700 353,000 8,900 263,200 11,560 17,340 $ 1.409.350 $ 1.416350 $ 1.416.295 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Replacement - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2013 Administration Capital Outlay Less Capital Assets Capitalized Total Administration Depreciation Total Operating Expenses 153 Budget Original Final Actual $ 664,000 $ 1,027,200 $ 509,538 000) (302,000) (509,163) 362,000 725,200 375 - - 602,137 $ 362,000 $ 725,200 $ 602,512 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, 2013 Budget Original Final Actual Operating Revenues Charges for Services Miscellaneous Income Total Operating Revenues Operating Expenses Administration and Maintenance Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues Interest Income Change in Net Position Net Position - Beginning Net Position - Ending $ 2,193,313 $ 2,193,313 $ 2,193,313 - - 138 2,193,313 2,193,313 2,193,451 2,153,304 2,209,304 2,157,558 - - 6,255 2,153,304 2,209,304 2,163,813 40,009 (15,991) 29,638 - - 516 $ 40,009 $ (15,991) 30,154 154 $ 575.331 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2013 Budget Original Final Actual Charges for Services General Fund Mayor and Board $ 3,290 $ 3,290 Manager's Office 3,290 3,290 Television Services Division 3,510 3,510 Community Development - Planning 3,290 3,290 Community Development - Building 4,606 4,606 Community Development - Housing 23,030 23,030 Community Development - Health 3,290 3,290 Police Department 559,513 559,513 Fire Department 347,201 347,201 Public Works Department 680,365 680,365 Engineering Division 35,751 35,751 Water and Sewer Fund 516,087 516,087 Parking System Fund 5,045 5,045 Village Parking Fund 5,045 5,045 Total Charges for Services 2,193,313 2,193,313 Miscellaneous Income 3,290 3,290 3,510 3,290 4,606 23,030 3,290 559,513 347,201 680,365 35,751 516,087 5,045 5,045 2,193,313 138 Total Operating Revenue $ 2,193,313 $ 2,193,313 $ 2,193,451 155 VILLAGE OF MOUNT PROSPECT, ILLINOIS Vehicle Maintenance - Internal Service Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2013 Administration and Maintenance Vehicle Division Administration Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Commodities and Supplies Office Equipment Total Vehicle Division Administration Vehicle Maintenance Program Personal Services Employee Benefits Contractual Services Commodities and Supplies Other Equipment Total Vehicle Maintenance Program Total Administration and Maintenance Depreciation Total Operating Expenses 156 Budget Original Final Actual $ 111,041 $ 111,041 $ 107,706 67,229 88,229 66,256 2,315 2,315 2,277 7,155 7,155 1,343 3,010 3,010 3,069 1,572 1,572 1,382 545 545 196 192,867 213,867 182,229 843,001 878,001 838,789 324,886 324,886 324,550 88,583 88,583 76,433 685,467 685,467 718,120 18,500 18,500 17,437 1,960,437 1,995,437 1,975,329 2,153,304 2,209,304 2,157,558 6,255 $ 2153,304 $ 2,209,304 $ 2,163,813 FIDUCIARY FUNDS TRUST AND AGENCY FUNDS 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 Police Department. Revenues are provided by the following: Village contributions (made possible by a property tax levy), employee withholdings and investment income. AGENCY FUNDS Escrow Deposit Fund: The Escrow Deposit Fund is used to account for refundable deposits held by the Village to ensure the completion of public improvements. The money is held by the Village until the improvements are completed. Flexcomp Escrow Fund: The Flexcomp Escrow Fund is used to account for employee payroll deductions pursuant to Section 125 and Section 132 flexible compensation plans. The money is reimbursed to employees for qualified medical and dependent care expenses, parking and transportation expenses. Library Bonds Escrow Fund: The Library Bonds Escrow Fund is used to account for the accumulation of resources for the 2002 Library bond issue payments. VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Trust Funds Combining Statement of Net Position December 31, 2013 ASSETS Cash and Cash Equivalents Investments State and Local Obligations U.S. Government and Agency Obligations Corporate Bonds and Obligations Mutual Funds Accrued Interest Receivable Prepaids Due from Other Funds Total Assets LIABILITIES Accounts Payable NET POSITION Held in Trust for Pension Benefits Police Firefighters' Pension Pension Totals $ 2,363,473 $ 1,653,554 $ 4,017,027 2,375,581 1,415,166 3,790,747 10,028,328 10,164,514 20,192,842 9,126,012 8,531,412 17,657,424 31,312,634 31,789,923 63,102,557 136,720 121,436 258,156 596 1,103 1,699 61,251 53,408 114,659 55,404,595 53,730,516 109,135,111 28,619 14,101 42,720 $ 55,375,976 % 53.716.415 $ 109.092.391 157 VILLAGE OF MOUNT PROSPECT, ILLINOIS Pension Trust Funds Combining Statement of Changes in Net Position For the Fiscal Year Ended December 31, 2013 158 Police Firefighters' Pension Pension Totals Additions Contributions - Employer $ 2,631,038 $ 2,371,347 $ 5,002,385 Contributions - Plan Members 803,650 599,222 1,402,872 Total Contributions 3,434,688 2,970,569 6,405,257 Investment Income Interest Earned 810,761 684,371 1,495,132 Net Change in Fair Value 6,174,091 6,851343 13,025,434 6,984,852 7,535,714 14,520,566 Less Investment Expenses (96,219) (86,243) (182,462) Net Investment Income 6,888,633 7.419.471 14,338,104 Miscellaneous Income 1,841 - 1,841 Total Additions 10,325,162 10,420,040 20,745,202 Deductions Administration 51,339 44,006 95,345 Benefits and Refunds 3,820,498 3,893,174 7,713,672 Total Deductions 3,871,837 3,937,180 7,809,017 Change in Net Position 6,453,325 6,482,860 12,936,185 Net Position - Beginning 48,922,651 47,233,555 96,156,206 Net Position - Ending $ 55.375.976 $ 53,716,415 $ 109,092.391 158 VILLAGE OF MOUNT PROSPECT, ILLINOIS Police Pension - Pension Trust Fund Schedule of Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2013 Additions Contributions - Employer Contributions - Plan Members Total Contributions Investment Income Interest Earned Net Change in Fair Value Less Investment Expenses Net Investment Income Miscellaneous Income Total Additions Deductions Administration Benefits and Refunds Total Deductions Change in Net Position Net Position - Beginning Net Position - Ending Budget Original Final Actual $ 2,634,221 $ 2,634,221 $ 2,631,038 782,000 782,000 803,650 3,416,221 3,416,221 3,434,688 734,500 1,540,000 819,500 6,170,000 810,761 6,174,091 2,274,500 (87,000) 6,989,500 (87,000) 6,984,852 (96,219) 2,187,500 6,902,500 6,888,633 - - 1,841 5,603,721 10,318,721 10,325,162 58,750 3,847,666 69,750 3,847,666 51,339 3,820,498 3,906,416 3,917,416 3,871,837 $ 1,697,305 $ 6,401,305 6,453,325 159 48,922,651 $ 55,375,976 VILLAGE OF MOUNT PROSPECT, ILLINOIS Firefighters' Pension - Pension Trust Fund Schedule of Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2013 Change in Net Position $ 1,238,256 $ 5,894,256 6,482,860 Net Position - Beginning 47,233,555 Net Position - Ending $ 53,716,415 160 Budget Original Final Actual Additions Contributions - Employer $ 2,325,247 $ 2,325,247 $ 2,371,347 Contributions - Plan Members 607,000 607,000 599,222 Total Contributions 2,932,247 2.132,247 2,970,569 Investment Income Interest Earned 687,000 691,000 684,371 Net Change in Fair Value 1,568,000 6,345,000 6,851,343 2,255,000 7,036,000 7,535,714 Less Investment Expenses (89,000) (89,000) (86,243) Net Investment Income 2,166,000 6,947,000 7,449,471 Total Additions 5,098,247 9,879,247 10,420,040 Deductions Administration 60,000 60,000 44,006 Benefits and Refunds 3,799,991 3,924,991 3,893,174 Total Deductions 3,859,991 3,984,991 3,937,180 Change in Net Position $ 1,238,256 $ 5,894,256 6,482,860 Net Position - Beginning 47,233,555 Net Position - Ending $ 53,716,415 160 VILLAGE OF MOUNT PROSPECT, ILLINOIS Agency Funds Combining Statement of Changes in Assets and Liabilities December 31, 2013 See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Agency Funds Combining Statement of Changes in Assets and Liabilities December 31, 2013 All Funds ASSETS Cash and Investments Due from Other Funds Other Receivables Total Assets LIABILITIES Deposits Payable Due to Other Funds Other Liabilities Due to Library Total Liabilities Escrow Deposit Fund ASSETS Cash and Investments Due from Other Funds Other Receivables Total Assets LIABILITIES Deposits Payable Due to Other Funds Other Liabilities Total Liabilities Beginning Ending Balances Additions Deductions Balances $ 1,443,227 $ 3,960,208 $ 3,891,825 $ 1,511,610 - 31,683 31,683 - 370 11,765 12,135 - $ 1,443,597 $ 4,003,656 $ 3,935,643 $ 1,511,610 $ 1,402,648 40,000 635 314 $ 1,657,331 283,001 714,173 1,570,129 $ 1,555,706 323,001 707,587 1,570,327 $ 1,504,273 7,221 116 $ 1.443.597 $ 4,224.634 $ 4,156.621 $ 1,511.610 $ 1,359,752 370 $ 1,972,422 31,683 11,765 $ 1,859,530 31,683 12,135 $ 1,472,644 1,360,122 2,015,870 1903,348 1472,644 $ 1,359,487 $ 1,391,555 $ 1,285,619 $ 1,465,423 - 266,330 266,330 - 635 714,173 707,587 7,221 $ 1,360,122 $ 2,372,058 $ 2,259,536 $ 1,472,644 161 Flexcomp Escrow Fund ASSETS Cash and Investments LIABILITIES Deposits Payable Due to Other Funds Total Liabilities Library Bonds Escrow Fund ASSETS Cash and Investments LIABILITIES Due to Library Beginning Ending Balances Additions Deductions Balances $ 83.161 $ 417,657 $ 461.968 $ 38.850 $ 43,161 $ 265,776 $ 270,087 $ 38,850 40.000 16,671 56,671 - $ 83.161 $ 282.447 $ 326,758 $ 38.850 $ 314 $ 1,570.129 $ 1.570.327 $ 116 $ 314 $ 1.570,129 $ 1.570.327 $ 116 162 SUPPLEMENTAL SCHEDULES VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of General Long -Term Debt Long -Term Debt Payable by Governmental Funds December 31, 2013 See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of General Long -Term Debt Long -Term Debt Payable by Governmental Funds December 31, 2013 AMOUNTS TO BE PROVIDED FOR THE RETIREMENT OF GENERAL LONG- TERM DEBT GENERAL LONG-TERM DEBT PAYABLE General Obligation Bonds Payable IEPA Flood Loan Contracts Payable Installment Notes Payable Compensated Absences Payable Net Pension Obligation Net Other Post -Employment Benefits Obligation $ 9.800,000 $ 2,635,000 $ 2,65000 $ 5.015.000 $ 1.745.000 $ 9,800,000 $ 2,635,000 $ 2,650,000 $ 5,015,000 $ 1,745,000 $ 9,800,000 $ 2,635,000 $ 2,650,000 $ 5.015.000 $ 1,745.000 163 General Taxable General General General Obligation General Obligation Obligation Obligation Refunding Obligation Refunding Refunding Bonds of Bonds of Bonds of Bonds of Bonds of 2009 2009B 2009C 201113 2012C $ 9.800,000 $ 2,635,000 $ 2,65000 $ 5.015.000 $ 1.745.000 $ 9,800,000 $ 2,635,000 $ 2,650,000 $ 5,015,000 $ 1,745,000 $ 9,800,000 $ 2,635,000 $ 2,650,000 $ 5.015.000 $ 1,745.000 163 $ 9,800,000 % 1,139,512 $ 2.475.000 $ 3.720.228 $ 613.449 $ 581.981 $ 40.175.170 $ 9,800,000 $ - $ - $ - $ $ - $ 31,645,000 - 1,139,512 - - - - 1,139,512 - 2,475,000 - - - 2,475,000 - - 3,720,228 - - 3,720,228 - - - 613,449 - 613,449 - - - - - 581,981 581,981 $ 9,800,000 $ 1,139,512 $ 2,475,000 $ 3,720,228 $ 613,449 $ 581,981 $ 40,175,170 164 Net Other General Post - Obligation Net Employment Bonds of IEPA Installment Compensated Pension Benefits 2013 Flood Loans Notes Absences Obligation Obligation Totals $ 9,800,000 % 1,139,512 $ 2.475.000 $ 3.720.228 $ 613.449 $ 581.981 $ 40.175.170 $ 9,800,000 $ - $ - $ - $ $ - $ 31,645,000 - 1,139,512 - - - - 1,139,512 - 2,475,000 - - - 2,475,000 - - 3,720,228 - - 3,720,228 - - - 613,449 - 613,449 - - - - - 581,981 581,981 $ 9,800,000 $ 1,139,512 $ 2,475,000 $ 3,720,228 $ 613,449 $ 581,981 $ 40,175,170 164 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Long -Term Debt Requirements General Obligation Bonds of 2009 December 31, 2013 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at Tax March 11, 2009 December 1, 2028 $10,000,000 $5,000 3.00% - 4.50% June 1 and December 1 December 1 The Bank of New York Mellon Trust Company CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Levy Bond Requirements Interest Due on Year Numbers Principal Interest Totals Jun.I Amount Dec.l Amount 2013 - $ - $ 417,262 $ 417,262 2014 $ 208,631 2014 $ 208,631 2014 - - 417,262 417,262 2015 208,631 2015 208,631 2015 - - 417,262 417,262 2016 208,631 2016 208,631 2016 - - 417,262 417,262 2017 208,631 2017 208,631 2017 - - 417,262 417,262 2018 208,631 2018 208,631 2018 - - 417,262 417,262 2019 208,631 2019 208,631 2019 - - 417,262 417,262 2020 208,631 2020 208,631 2020 - - 417,262 417,262 2021 208,631 2021 208,631 2021 - - 417,262 417,262 2022 208,631 2022 208,631 2022 41-247 1,035,000 417,262 1,452,262 2023 208,631 2023 208,631 2023 248-559 1,560,000 375,864 1,935,864 2024 187,932 2024 187,932 2024 560-889 1,650,000 313,464 1,963,464 2025 156,732 2025 156,732 2025 890-1239 1,750,000 244,164 1,994,164 2026 122,082 2026 122,082 2026 1240-1609 1,850,000 168,914 2,018,914 2027 84,457 2027 84,457 2027 1610-2000 1,955,000 87,976 2,042,976 2028 43,988 2028 43,988 $ 9,800,000 $ 5,363,002 $ 15,163,002 165 $ 2,681,501 $ 2,681,501 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Long -Term Debt Requirements General Obligation Refunding Bonds of 2009B December 31, 2013 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at December 22, 2009 December 1, 2021 $3,430,000 $5,000 2.50% - 3.75% June 1 and December 1 December 1 The Bank of New York Mellon Trust Company CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Year Numbers Principal Interest Totals Interest Due on Jun.l Amount Dec.l Amount 2013 160-218 $ 295,000 $ 85,725 $ 380,725 2014 $ 42,862 2014 $ 42,863 2014 219-279 305,000 78,350 383,350 2015 39,175 2015 39,175 2015 280-342 315,000 70,725 385,725 2016 35,362 2016 35,363 2016 343-406 320,000 61,275 381,275 2017 30,637 2017 30,638 2017 407-472 330,000 51,675 381,675 2018 25,837 2018 25,838 2018 473-540 340,000 40,125 380,125 2019 20,062 2019 20,063 2019 541-612 360,000 27,375 387,375 2020 13,687 2020 13,688 2020 613-686 370,000 13,875 383,875 2021 6,937 2021 6,938 $ 2,635,000 $ 429,125 $ 3,064,125 166 $ 214,559 $ 214,566 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Long -Term Debt Requirements Taxable General Obligation Bonds of 2009C December 31, 2013 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at Tax Levy Year December 22, 2009 December 1, 2029 $2,650,000 $5,000 3.00% - 5.75% June 1 and December 1 December 1 The Bank of New York Mellon Trust Company CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Bond Requirements Interest Due on Numbers Principal Interest Totals Jun.l Amount Dec.l Amount 2013 1-5 $ 25,000 $ 135,023 $ 160,023 2014 $ 67,511 2014 $ 67,512 2014 6-13 40,000 134,272 174,272 2015 67,136 2015 67,136 2015 14-24 55,000 132,933 187,933 2016 66,467 2016 66,466 2016 25-39 75,000 130,842 205,842 2017 65,421 2017 65,421 2017 40-58 95,000 127,655 222,655 2018 63,828 2018 63,827 2018 59-82 120,000 123,380 243,380 2019 61,690 2019 61,690 2019 83-110 140,000 118,100 258,100 2020 59,050 2020 59,050 2020 111-142 160,000 111,520 271,520 2021 55,760 2021 55,760 2021 143-242 500,000 104,000 604,000 2022 52,000 2022 52,000 2022 243-330 440,000 79,500 519,500 2023 39,750 2023 39,750 2023 - - 57,500 57,500 2024 28,750 2024 28,750 2024 - - 57,500 57,500 2025 28,750 2025 28,750 2025 - - 57,500 57,500 2026 28,750 2026 28,750 2026 - - 57,500 57,500 2027 28,750 2027 28,750 2027 - - 57,500 57,500 2028 28,750 2028 28,750 2028 331-530 1,000,000 57,500 1,057,500 2029 28,750 2029 28,750 $ 2,650,000 $ 1,542,225 $ 4,192,225 167 $ 771,113 $ 771,112 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Long -Term Debt Requirements General Obligation Refunding Bonds of 2011B December 31, 2013 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at Tax July 29, 2011 December 1, 2020 $5,160,000 $5,000 2.52% June 1 and December 1 December 1 JP Morgan Chase CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Levy Year Bond Numbers Principal Requirements Interest Totals Jun.I Interest Due on Amount Dec.l Amount 2013 30-161 $ 660,000 $ 126,378 $ 786,378 2014 $ 63,189 2014 $ 63,189 2014 162-297 680,000 109,746 789,746 2015 54,873 2015 54,873 2015 298-435 695,000 92,610 787,610 2016 46,305 2016 46,305 2016 436-578 715,000 75,096 790,096 2017 37,548 2017 37,548 2017 579-725 735,000 57,078 792,078 2018 28,539 2018 28,539 2018 726-876 755,000 38,556 793,556 2019 19,278 2019 19,278 2019 877-1032 775,000 19,530 794,530 2020 9,765 2020 9,765 $ 5,015,000 $ 518,994 $ 5,533,994 168 $ 259,497 $ 259,497 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Long -Term Debt Requirements General Obligation Refunding Bonds of 2012C December 31, 2013 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at Tax Levy Year January 3, 2012 December 1, 2022 $2,975,000 $5,000 3.10% June 1 and December 1 December 1 JP Morgan Chase CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Bond Requirements Numbers Principal Interest Totals Jun.l Interest Due on Amount Dec.l Amount 2013 $ - $ 54,096 $ 54,096 2014 $ 27,048 2014 $ 27,048 2014 - 54,096 54,096 2015 27,048 2015 27,048 2015 - 54,096 54,096 2016 27,048 2016 27,048 2016 - 54,096 54,096 2017 27,048 2017 27,048 2017 - 54,096 54,096 2018 27,048 2018 27,048 2018 - 54,096 54,096 2019 27,048 2019 27,048 2019 - 54,096 54,096 2020 27,048 2020 27,048 2020 247-418 860,000 54,096 914,096 2021 27,048 2021 27,048 2021 419-595 885,000 27,436 912,436 2022 13,718 2022 13,718 $ 1.745,000 $ 460,204 $ 2,205,204 $ 230102 $ 230,102 169 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Long -Term Debt Requirements General Obligation Bonds of 2013 December 31, 2013 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at September 10, 2013 December 1, 2033 $9,800,000 $5,000 3.00% - 4.125% June 1 and December 1 December 1 The Bank of New York Mellon Trust Company CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Requirements Interest Due on Year Numbers Principal Interest Totals Jun.l Amount Dec.I Amount 2013 $ - $ 453,196 $ 453,196 2014 $ 268,218 2014 $ 184,978 2014 - 369,956 369,956 2015 184,978 2015 184,978 2015 - 369,956 369,956 2016 184,978 2016 184,978 2016 - 369,956 369,956 2017 184,978 2017 184,978 2017 - 369,956 369,956 2018 184,978 2018 184,978 2018 - 369,956 369,956 2019 184,978 2019 184,978 2019 1-111 555,000 369,956 924,956 2020 184,978 2020 184,978 2020 112-225 570,000 353,306 923,306 2021 176,653 2021 176,653 2021 226-342 585,000 336,206 921,206 2022 168,103 2022 168,103 2022 343-463 605,000 318,656 923,656 2023 159,328 2023 159,328 2023 464-588 625,000 300,506 925,506 2024 150,253 2024 150,253 2024 589-718 650,000 275,506 925,506 2025 137,753 2025 137,753 2025 719-853 675,000 249,506 924,506 2026 124,753 2026 124,753 2026 854-993 700,000 222,506 922,506 2027 111,253 2027 111,253 2027 994-1139 730,000 194,506 924,506 2028 97,253 2028 97,253 2028 1140-1291 760,000 165,307 925,307 2029 82,653 2029 82,654 2029 1292-1449 790,000 134,907 924,907 2030 67,453 2030 67,454 2030 1450-1613 820,000 103,307 923,307 2031 51,653 2031 51,654 2031 1614-1783 850,000 70,507 920,507 2032 35,253 2032 35,254 2032 1784-1960 885,000 36,507 921,507 2033 18,253 2033 18,254 $ 9,800,000 $ 5.434,165 $ 15.234,165 $ 2,758,700 $ 2,675,465 170 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements IEPA Flood Loan (1,17-0744) Contract Payable of 1994 December 31, 2013 Date of Issue Date of Maturity Authorized Issue Interest Rate Interest Dates Principal Maturity Dates Payable at May 1, 1994 May 1, 2014 $3,695,354 3.36% May 1 and November 1 May 1 and November 1 Illinois Environmental Protection Agency CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Payment Requirements Year Numbers Principal Interest Totals 2014 40 $ 126,134 $ 2,119 $ 128,253 171 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements IEPA Flood Loan (1,17-0857) Contract Payable of 1994 December 31, 2013 Date of Issue Date of Maturity Authorized Issue Interest Rate Interest Dates Principal Maturity Dates Payable at June 10, 1994 December 10, 2014 $1,711,672 3.36% June 10 and December 10 June 10 and December 10 Illinois Environmental Protection Agency CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Payment Requirements Year Numbers Principal Interest Totals 2014 39-40 $ 117,336 $ 2,966 $ 120,302 172 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements IEPA Flood Loan (1,17-0855) Contract Payable of 1997 December 31, 2013 Date of Issue Date of Maturity Authorized Issue Interest Rate Interest Dates Principal Maturity Dates Payable at November 1, 1997 November 1, 2017 $1,203,550 2.89% May 1 and November 1 May 1 and November 1 Illinois Environmental Protection Agency CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Year Payment Numbers Principal Requirements Interest Totals 2014 33-34 $ 72,516 $ 8,236 $ 80,752 2015 35-36 74,628 6,124 80,752 2016 37-38 76,800 3,952 80,752 2017 39-40 79,035 1,717 80,752 $ 302,979 $ 20,029 $ 323,008 173 VILLAGE OF MOUNT PROSPECT, ILLINOIS Long -Term Debt Requirements IEPA Flood Loan (1,17-1087) Contract Payable of 1999 December 31, 2013 Date of Issue Date of Maturity Authorized Issue Interest Rate Interest Dates Principal Maturity Dates Payable at December 1, 1999 June 3, 2019 $1,760,422 2.625% June 3 and December 3 June 3 Illinois Environmental Protection Agency CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Payment Requirements Year Numbers Principal Interest Totals 2014 29-30 $ 101,600 $ 14,906 $ 116,506 2015 31-32 104,285 12,221 116,506 2016 33-34 107,040 9,466 116,506 2017 35-36 109,868 6,638 116,506 2018 37-38 112,771 3,735 116,506 2019 39 57,499 754 58,253 $ 593,063 $ 47,720 $ 640,783 174 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Long -Term Debt Requirements Installment Note Payable of 2012 December 31, 2013 Date of Issue Date of Maturity Authorized Issue Denomination of Bonds Interest Rate Interest Dates Principal Maturity Date Payable at December 31, 2012 December 1, 2019 $2,500,000 $5,000 0.91% June 1 and December 1 December 1 Mount Prospect State Bank CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Payment Requirements Year Numbers Principal Interest Totals Interest Due on Jun.l Amount Dec.I Amount 2014 3-4 $ 135,000 $ 22,522 $ 157,522 2014 $ 11,261 2014 $ 11,261 2015 5-6 400,000 21,294 421,294 2015 10,647 2015 10,647 2016 7-8 415,000 17,654 432,654 2016 8,827 2016 8,827 2017 9-10 420,000 13,878 433,878 2017 6,939 2017 6,939 2018 11-12 515,000 10,056 525,056 2018 5,028 2018 5,028 2019 13-14 590,000 5,369 595,369 2019 2,684 2019 2,685 $ 2,475,000 $ 90,773 $ 2,565,773 175 $ 45,386 $ 45,387 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Insurance in Force December 31, 2013 Expiration Travelers Public Employees Dishonesty Self -Insured Specific Aggregate Date of Insurance Carrier/Description of Coverage Retention Excess Limit Excess Limit Policy Liberty Mutual Federal Insurance Company/Chubb None 100,000 100,000 05/01/14 Property and Inland Marine $ 25,000 $ 92,717,046 $ None 01/01/14 Fiduciary Liability - Police Pension 25,000 5,000,000 5,000,000 08/01/14 Fiduciary Liability - Fire Pension 25,000 5,000,000 5,000,000 08/01/14 Contingent Tax Interruption 25,000 9,000,000 9,000,000 01/01/14 Safety National Insurance Company Workers' Compensation 600,000 Statutory 1,000,000 01/01/14 Self -Insured General Liability 2,000,000 None None N/A Automobile Liability 2,000,000 None None N/A Employee Practices Liability 2,000,000 None None N/A Police Professional Liability 2,000,000 None None N/A Public Officials Liability 2,000,000 None None N/A High -Level Excess Liability Pool Excess Liability 2,000,000 12,000,000 12,000,000 04/30/18 Travelers Public Employees Dishonesty 5,000 500,000 None 05/01/14 Depositors Forgery 1,000 100,000 None 05/01/14 Liberty Mutual Public Officials Bond - President None 100,000 100,000 05/01/14 Public Officials Bond - Manager None 100,000 100,000 05/01/14 Public Officials Bond - Village Treasurer None 250,000 250,000 05/01/14 Intergovernmental Personal Benefit Cooperative Employee & Retiree Health Insurance 30,000/75,000 None None 06/30/14 Alternative Service Concept Workers' Comp. Claims Administration N/A N/A N/A N/A Gallagher Bassett Liability Claims Administration N/A N/A N/A N/A 176 STATISTICAL SECTION (Unaudited) This part of the comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village's overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue sources. Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village's financial report relates to the services the Village provides and the activities it performs. VILLAGE OF MOUNT PROSPECT, ILLINOIS Net Position by Component - Last Ten Fiscal Years December 31, 2013 (Unaudited) See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Net Position by Component - Last Ten Fiscal Years December 31, 2013 (Unaudited) 2004 2005 2006 Governmental Activities Net Investment in Capital Assets $ 25,864,656 $ 23,851,038 $ 24,671,547 Restricted 4,644,869 4,828,517 4,197,018 Unrestricted 5,629,961 13,689,604 18,553,994 Total Primary Government Net Position $ 59,872,572 $ 66,024.473 Total Governmental Activities Net Position $ 36,139,486 $ 42,369,159 $ 47,422,559 Business -Type Activities Net Investment in Capital Assets $ 17,471,099 $ 17,846,548 $ 18,321,345 Unrestricted 6,261,987 5,808,766 6,172,718 Total Business -Type Activities Net Position $ 23,733,086 $ 23,655,314 $ 24,494,063 Primary Government Net Investment in Capital Assets $ 43,335,755 $ 41,697,586 $ 42,992,892 Restricted 4,644,869 4,828,517 4,197,018 Unrestricted 11,891,948 19,498,370 24,726,712 Total Primary Government Net Position $ 59,872,572 $ 66,024.473 $ 71,916,622 Data Source: Audited Financial Statements 177 2007 2008 2009 2010 2011 2012 2013 $ 26,114,472 $ 29,663,909 $ 27,741,453 $ 30,020,260 $ 53,524,378 $ 48,521,357 $ 48,152,760 3,178,963 2,367,670 4,497,173 4,891,298 2,828,903 3,547,328 3,045,922 23,151,760 21,216,625 20,277,880 18,296,001 20,019,184 24,952,139 24,153,907 $ 52,445,195 $ 53,248,204 $ 52,516,506 $ 53,207,559 $ 76,372,465 $ 77,020,824 $ 75,352,589 $ 19,437,672 $ 20,776,324 $ 22,412,134 $ 23,044,064 $ 26,892,474 $ 26,566,375 $ 26,352,289 6,833,310 6,852,644 5,996,007 5,927,430 5,167,986 6,820,901 8,057,996 $ 26,270,982 $ 27,628,968 $ 28,408,141 $ 28,971,494 $ 32,060,460 $ 33,387,276 $ 34,410,285 $ 45,552,144 $ 50,440,233 $ 50,153,587 $ 53,064,324 $ 80,416,852 $ 75,087,732 $ 74,505,049 3,178,963 2,367,670 4,497,173 4,891,298 2,828,903 3,547,328 3,045,922 29,985,070 28,069,269 26,273,887 24,223,431 25,187,170 31,773,040 32,211,903 $ 78,716.177 $ 80,877,172 $ 80.924.647 $ 82.179.053 $ 108,432.925 $ 110.408.100 $ 109.762.874 178 VILLAGE OF MOUNT PROSPECT, ILLINOIS Changes in Net Position - Last Ten Fiscal Years December 31, 2013 (Unaudited) 2005 2006 2007 2008 2009 2010 2011 2012 Expenses 3,626,936 $ 4,750,937 $ 5,057,855 $ 5,045,338 $ 6,705,200 $ 6,271,966 $ 6,343,828 $ 7,068,010 $ 6,908,188 1,864,447 Governmental Activities 2,096,875 2,658,824 2,242,952 1,580,052 1,486,144 1,545,333 1,412,279 1,583,328 158,101 135,151 General Government $ 7,081,460 $ 3,090,918 $ 5,110,605 $ 5,777,024 $ 6,682,541 $ 7,192,572 $ 6,541,405 $ 6,992,107 $ 6,233,324 $ 7,356,433 Public Safety 21,314,705 21,660,877 23,336,436 24,565,640 26,646,855 27,172,360 27,303,165 27,276,948 28,134,173 29,771,502 Highways and Streets 11,357,935 9,364,421 10,888,397 11,512,271 13,540,232 12,101,419 12,924,872 18,141,803 15,853,017 18,570,593 Health 3,545,694 3,642,891 3,863,140 4,085,316 4,163,354 4,194,045 4,133,883 4,289,103 4,407,533 4,459,897 Welfare 1,518,387 1,465,197 1,344,516 1,759,776 1,744,504 2,316,995 2,039,805 1,902,841 1,909,062 1,868,952 Culture and Recreation 287,955 237,024 272,826 221,806 409,066 367,635 322,553 353,308 406,606 443,171 Interest on Long -Term Debt I :409.9'9 1,350 049 1,360,081 728 640 837,127 1,047,961 1,146,789 1,329,499 1,033,923 1,016,337 Total Governmental Activities Expenses 46, 1 G 06 40,$11 377 46,176;flOI 4 , 50 473 54,023,679 51.392,987 54,412,4?260,285.60957 977,638 63,486,885 Business -Type Activities Water and Sewer 8,398,983 8,954,899 9,200,271 8,839,710 9,179,399 9,393,148 9,950,591 10,444,247 11,129,942 12,078,221 Commuter Parking 292,580 369,825 409 041259,434 263,394 233,701 284,607 327,224 345,715 346,303 Total Business -Type Activities Expenses 8 691 563 9,324 724 9,6D9,315 609 312 9,09 144 9,442.793 9,626,849 10,235,198 10,771,471 11,475,657 12,424,524 Total Primary Government Expenses Program Revenues Governmental Activities Charges for Services General Government Public Safety Highways and Streets Other Activities Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Program Revenues Business -Type Activities Charges for Services Water and Sewer Commuter Parking Operating Grants and Contributions Capital Grants and Contributions Total Business -Type Activities Program Revenues Total Primary Government Program Revenues $ 55,207,628 S 50,136,101 S 55.785,313 5 57,749,617 S 63466,472 $ 64,019,836 $ 64,647,670 S 71,057,080 $ 69,453,295 S 75,911,409 $ 3,626,755 $ 3,626,936 $ 4,750,937 $ 5,057,855 $ 5,045,338 $ 6,705,200 $ 6,271,966 $ 6,343,828 $ 7,068,010 $ 6,908,188 1,864,447 2,029,632 2,096,875 2,658,824 2,242,952 1,580,052 1,486,144 1,545,333 1,412,279 1,583,328 158,101 135,151 176,019 231,468 169,615 237,786 135,641 108,865 126,660 269,066 261,470 280,083 288,914 305,467 320,488 65,933 70,964 32,040 39,163 41,220 2,472,301 556,072 513,703 594,223 1,800,781 2,551,348 2,338,965 2,749,168 1,974,867 2,356,665 66,138 1,894,095 106,688 2 812 836 764,283 406.7-34 443,278 65,905 72,175 288,752 8,449,212 8,521.969 9 933136 11,660,073 10343.457 11,547,053 10,746958 10,845 139 10,693,154 11,447.219 6,404,006 7,400,759 8,506,767 8,888,249 8,774,681 8,500,396 8,916,621 9,081,731 10,990,923 11,507,264 161,617 205,215 207,085 210,036 269,400 218,735 210,324 219,040 225,214 234,458 6,565,623 7,605,974 8.713 852 9 09S,285 9,044,081 8.719 131 9,126 945 9,300,771 11.216 137 11,741,722 15 014,835 $ 16127,943 $ 18-646,988, S 20.758-958 S 19.387.538 $ 2026& 184 S 19.873-903 $ 20.145.910 S 21.909291 $ 23188941 179 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Net (Expense) Revenue Governmental Activities $ (38,066,853) $ (32,289,408) $ (36,242,865) $ (36,989,800) $ (43,680,222) $ (42,845,934) $ (43,665,514) $ (49,440,470) $ (47,284,484) $ (52,039,666) Business -Type Activities (2,125,940) 11,718,750) (895._460) (859) (398,712) (907.718) 1.108,253) (1,470,700) (259,520) (682,802) Total Primary Government 61,017 107,068 217,235 262,430 159,150 26,646 1,653 836 517 3,387 Net Revenue (Expense) S (40.192.793) S 04,008.158) S (37.138.325) S (36.990659) S (44.078.9341 S (43.753.652) S (44773,767) S (50,911.170) S (47,5 .0041 $ (52. _ 2.46 1 Transfers (10,433) 8 70 - General Revenues and Other Changes in Net Position Total Business -Type Activities 1553 860 1.640_978 1734209 1,766,931 1,756.698 1,68601 1,671,606 1,709,098 1,586,336 Governmental Activities Total Primary Government $ 36,923AI 1 5 40-160,059 S 41667,411 $ 43,779,367 $ 46239.929 S 43.801.1')7 S 46,029,173 $ 47292_070 4 49,391-774 Taxes Changes in Net Position Property $ 12,785,975 $ 13,775,669 $ 15,183,214 $ 15,817,195 S 15,942,106 $ 16,543,215 $ 17,165,849 $ 17,942,394 $ 18,385,422 $ 18,890,542 Utility Business -Type Activities - - - - 4,519,175 4,589,221 4,624,678 4,658,265 3,891,713 Business District - - - - - - - - 283,706 317,527 Sales 11,502,755 11,871,553 12,720,614 12,773,695 14,862,634 4,061,202 4,392,753 4,673,134 4,750,232 5,035,998 Telecommunication 2,523,576 2,802,467 2,471,590 2,741,121 2,770,473 - - - - - Other 8,096,054 9,509,376 9,537,327 9,712,568 10,346,444 1,524,823 1,598,056 1,976,997 2,408,064 2,952,665 Intergovernmental State Sales and Use - - - - - 9,761,726 11,110,707 11,411,781 11,877,115 13,254,358 Income Taxes - - - - 4,573,162 4,428,176 4,328,196 4,759,513 5,161,051 Replacement Taxes - - - - 338,134 362,532 357,596 358,286 396,999 Charitable Games Tax - - - - - - - 3,986 4,090 4,090 Investment Income 207,562 433,605 908,782 924,989 416,673 187,793 67,001 29,043 42,452 29,785 Miscellaneous 153,629 126,411 101,242 42,868 93,781 605,006 633,902 235,167 278,293 436,703 Transfers - - 10,433 - - - 8,370 - - - Contributions 51.120 - _ Total Governmental Activities 35,269 551 38 519 0al 40,933,202 42,012 436 44,483,231 42,114,236 44,356,567 45,592 972 47,905.438 50,371,431 Business -Type Activities Property Tax 1,495,756 1,533,910 1,527,407 1,504,501 1,505,394 1,520,602 1,513,114 1,526,828 1,515,605 1,507,661 Sales Tax - - - - 92,154 82,882 89,942 107,576 99,795 104,050 Investment Income 61,017 107,068 217,235 262,430 159,150 26,646 1,653 836 517 3,387 Miscellaneous (2,913) - - - - 56,761 75,267 73,858 (29,581) 90,713 Transfers (10,433) 8 70 - - Total Business -Type Activities 1553 860 1.640_978 1734209 1,766,931 1,756.698 1,68601 1,671,606 1,709,098 1,586,336 1,705,8] I Total Primary Government $ 36,923AI 1 5 40-160,059 S 41667,411 $ 43,779,367 $ 46239.929 S 43.801.1')7 S 46,029,173 $ 47292_070 4 49,391-774 5 52.077.242 Changes in Net Position Governmental Activities $ (2,797,302) $ 6,229,673 $ 4,690,337 $ 5,022,636 $ 803,009 S (731,698) $ 691,053 $ (3,857,498) $ 520,954 $ (1,668,235) Business -Type Activities 572,080 (77,772) 838,749 L766,072 072 1 57986 779,173 563,353 238,398 1326,816 1,023,009 Total Primary Government (3-369-3821 6.151.291 5 9_096 S 6,788,709 S 2.160."547,475 54 406 $ J3,619.1 00 6 Data Source: Audited Financial Statements 180 VILLAGE OF MOUNT PROSPECT, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years December 31, 2013 (Unaudited) General Fund Reserved Unreserved Nonspendable Unassigned Total General Fund All Other Governmental Funds Reserved Unreserved, Reported in: Special Revenues Funds Debt Service Funds Capital Projects Funds Nonspendable Restricted Assigned Unassigned Total All Other Governmental Funds 2004 2005 2006 2007 $ 219,694 $ 312,499 $ 73,529 $ 40,910 8,037,820 10,203,878 11,733,539 12,774,003 $ 8,257,514 $ 10,516,377 $ 11,807,068 $ 12,814,913 $ 4,727,748 $ 4,958,811 $ 4,333,108 $ 3,329,107 1,744,656 1,556,490 1,844,687 2,028,077 (1,357,855) 161,614 1,447,070 2,315,134 1 5,114,549 $ 6,676,915 $ 7,624,865 $ 7,672,318 The Village implemented GASB 54 in Fiscal Year 2011. Data Source: Audited Financial Statements 181 2008 2009 2010 2011 2012 2013 $ 228,750 $ 88,492 $ 53,536 $ - $ - $ - 12,312,075 10,110,989 10,364,455 - - - - - 100,590 98,150 297,762 10,704,282 11,466,179 11,580,820 $ 12,540,825 $ 10,199,481 $ 10,417,991 $ 10,804,872 $ 11,564,329 $ 11,878,582 $ 2,523,221 $ 4,762,560 $ 2,188,376 $ _ $ - $ - 2,043,378 1,674,387 2,148,898 - - - (908,466) (485,274) (78,844) - - - 303,492 1,965,761 2,459,761 - - - - - - 147,130 144,114 132,464 2,828,903 3,625,715 3,166,583 - - - 3,564,914 7,525,930 15,705,506 (5,578) (664) (689) $ 3,961,625 $ 7,917,434 $ 6,718,191 $ 6,535,369 $ 11,295,095 $ 19,003,864 182 VILLAGE OF MOUNT PROSPECT, ILLINOIS Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years December 31, 2013 (Unaudited) Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Proceeds from Debt Issuance Premium on Debt Issuance Payment to Escrow Agent Transfers In Transfers Out Disposal of Capital Assets Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures Data Source: Audited Financial Statements 55,489,518 45,387,872 48,575,733 52,452,705 (11.857.295) 1.653,178 2;280,172 1.220.404 705,000 794,938 989,519 1,344,953 105 (794,938) (989,519) (1,386,484) (165,211) 45,000 2,168,051 - - 750,000 2,168,051 (41,531) (165,10 (11:107,295) % 3,821;229 S 2,238,641 $ 1.055,298 12.02% 183 10.08% 8.07% 8.78% 2004 2005 2006 2007 Revenues Taxes $ 22,722,306 $ 24,897,774 $ 25,829,233 $ 26,460,490 Licenses, Permits and Fees 3,024,016 3,135,996 3,216,982 3,445,370 Intergovernmental 14,616,333 15,459,395 16,664,264 17,783,855 Charges for Services 1,748,460 1,710,556 3,226,074 3,780,453 Fines and Forfeits 554,741 581,439 521,473 720,673 Investment Income 207,562 433,605 908,782 924,989 Miscellaneous 758,805 822,285 489,097 557,279 Total Revenues 43,632,223 47,041,050 50,855,905 53,673,109 Expenditures General Government 4,346,454 4,463,740 4,901,739 5,298,202 Public Safety 20,940,441 21,677,185 23,205,517 24,767,992 Highways and Streets 7,459,168 7,265,128 7,555,575 9,204,868 Health 3,545,174 3,650,121 3,873,480 4,102,547 Welfare 1,516,610 1,482,943 1,366,367 1,786,121 Culture and Recreation 274,491 284,229 333,148 281,737 Capital Outlay 11,481,777 2,040,534 3,470,144 2,437,381 Debt Service Principal 4,468,949 3,205,838 2,605,399 3,529,734 Interest and Fiscal Charges 1,456,454 1,318,154 1,264,364 1,044,123 Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Proceeds from Debt Issuance Premium on Debt Issuance Payment to Escrow Agent Transfers In Transfers Out Disposal of Capital Assets Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures Data Source: Audited Financial Statements 55,489,518 45,387,872 48,575,733 52,452,705 (11.857.295) 1.653,178 2;280,172 1.220.404 705,000 794,938 989,519 1,344,953 105 (794,938) (989,519) (1,386,484) (165,211) 45,000 2,168,051 - - 750,000 2,168,051 (41,531) (165,10 (11:107,295) % 3,821;229 S 2,238,641 $ 1.055,298 12.02% 183 10.08% 8.07% 8.78% 2008 2009 2010 2011 2012 2013 $ 27,287,056 $ 26,648,415 $ 27,740,802 $ 29,217,203 $ 30,485,689 $ 31,088,445 3,094,828 3,748,456 3,394,211 3,356,816 3,657,586 3,589,368 19,104,781 17,274,500 18,719,087 18,895,261 18,862,827 21,103,909 3,618,419 3,832,341 3,789,976 3,974,677 4,417,110 4,408,987 720,351 529,655 556,178 548,993 403,036 430,960 416,673 137,142 55,457 23,103 36,491 16,751 533,460 834,738 781,149 406,118 629,892 1,167,196 54,775,568 53,005,247 55,036,860 56,422,171 58,492,631 61,805,616 5,725,191 5,796,151 5,240,716 5,284,168 5,827,275 7,452,147 25,906,274 26,384,953 26,935,085 26,992,535 28,022,943 29,233,562 9,168,071 8,291,493 7,450,823 7,681,534 7,734,185 9,094,846 4,156,319 4,188,172 4,128,010 4,286,754 4,405,184 4,457,548 1,736,791 2,316,995 2,039,805 1,902,841 1,909,062 1,868,952 381,892 358,207 313,125 346,068 399,366 435,931 6,623,970 14,296,659 7,739,590 7,274,213 4,761,739 8,588,414 4,149,735 1,425,219 1,046,203 1,377,700 1,479,732 1,537,312 891.181 1,023,907 1,124,236 1,057,464 959,812 913,882 58,739,424 64,081,756 56,017,593 56,203,277 55,499,298 63,582,594 (3,963,856) (11076.509) (980.733) 218,894 2,993333 (1.776,978) - 16,080,000 - 5,160,000 5,475,000 9,800,000 - 124,535 - - - - - (3,513,925) - (5,139,582) (2,949,150) - 809,422 635,100 450,000 80,089 - 239,977 (833,242) (635,100) (450,000) (115,342) - (239,977) 2,895 364 - - - - (20,925) 12,690,974 - (14,835) 2,525,850 9,800,000 $ (3,984,781) $ 1.614;465 $ (980,733) 204.059 $ 5,719,183 $ 8,023,022 9.00% 4.55% 4.12% 4.35% 4.40% 4.01% 184 VILLAGE OF MOUNT PROSPECT, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Levy Years December 31, 2013 (Unaudited) Tax Levy Residential Commercial Year Property Property 2003 $ 823,558,021 $ 339,716,638 2004 940,125,430 374,813,387 2005 1,016,362,276 381,718,354 2006 1,048,895,640 357,812,772 2007 1,227,488,556 412,588,412 2008 1,343,275,031 414,537,434 2009 1,452,220,540 387,256,513 2010 1,330,339,716 332,297,825 2011 1,242,549,785 298,578,904 2012 1,141,783,464 281,197,939 Note: Property in the Village is reassessed every three years. Property is assessed at 33% of actual value. Data Source: Office of the Cook County Clerk 185 Total Taxable Industrial Railroad Assessed Property properly Value $ 158,341,177 $ 271,107 $ 1,321,886,943 175,903,709 334,619 1,491,177,145 196,556,462 338,630 1,594,975,722 190,150,899 450,150 1,597,309,461 229,739,726 508,622 1,870,325,316 221,110,772 572,793 1,979,496,030 177,285,176 649,124 2,017,411,353 171,115,770 927,196 1,834,680,507 152,864,606 959,506 1,694,952,801 145,136,294 656,385 1,568,774,082 186 Total Direct Tax Rate Estimated Actual Taxable Value Estimated Actual Taxable Value as a Percentage of Actual Value 0.874 $ 3,965,660,829 33.333% 0.801 4,473,531,435 33.333% 0.827 4,784,927,166 33.333% 0.846 4,791,928,383 33.333% 0.750 5,610,975,948 33.333% 0.732 5,938,488,090 33.333% 0.754 6,052,234,059 33.333% 0.829 5,504,041,521 33.333% 0.936 5,084,858,403 33.333% 1.051 4,706,322,246 33.333% VILLAGE OF MOUNT PROSPECT, ILLINOIS Direct and Overlapping Property Tax Rates - Last Ten Levy Years December 31, 2013 (Unaudited) 187 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Village Direct Tax Rates Corporate 0.480 0.444 0.457 0.469 0.416 0.393 0.399 0.377 0.444 0.501 Bonds and Interest 0.078 0.070 0.092 0.083 0.071 0.093 0.076 0.098 0.105 0.113 Garbage 0.173 0.154 0.122 0.126 0.110 0.090 0.089 0.098 0.109 0.121 Police Pension 0.070 0.065 0.081 0.085 0.077 0.078 0.102 0.137 0.147 0.167 Firefighters' Pension 0.073 0.068 0.075 0.083 0.076 0.078 0.088 0.119 0.131 0.149 Total Direct Tax Rate 0.874 0.801 0.827 0.846 0.750 0.732 0.754 0.829 0.936 1.051 Overlapping Rates Mount Prospect Library 0.487 0.475 0.466 0.482 0.439 0.441 0.450 0.519 0.582 0.646 County of Cook 0.630 0.593 0.533 0.500 0.446 0.415 0.394 0.423 0.462 0.531 Consolidated Elections 0.029 - 0.014 - 0.012 - 0.021 - 0.025 - Forest Preserve District 0.059 0.060 0.060 0.057 0.053 0.051 0.049 0.051 0.058 0.063 Metropolitan Water Reclamation District 0.361 0.347 0.315 0.284 0.263 0.252 0.261 0.274 0.320 0.370 Suburban TB Sanitarium 0.004 0.001 0.005 0.005 - - - - - - Township of Elk Grove 0.051 0.046 0.044 0.044 0.040 0.041 0.044 0.049 0.056 0.064 Township of Maine 0.079 0.071 0.070 0.073 0.065 0.064 0.067 0.075 0.085 0.096 Township of Wheeling 0.047 0.042 0.041 0.043 0.038 0.038 0.039 0.043 0.048 0.052 General Assistance Elk Grove 0.011 0.007 0.009 0.009 0.008 0.009 0.010 0.011 0.012 0.014 General Assistance Maine 0.016 0.015 0.015 0.016 0.015 0.015 0.016 0.018 0.021 0.023 General Assistance Wheeling 0.010 0.009 0.009 0.010 0.009 0.009 0.009 0.005 0.009 0.009 Road and Bridge Elk Grove 0.010 0.009 0.009 0.009 0.009 0.009 0.010 0.011 0.013 0.014 Road and Bridge Maine 0.040 0.036 0.036 0.038 0.034 0.033 0.034 0.038 0.043 0.049 Road and Bridge Wheeling 0.013 0.012 0.012 0.013 0.012 0.012 0.012 0.014 0.015 0.016 Northwest Mosquito Abatement District 0.010 0.009 0.009 0.009 0.008 0.008 0.008 0.009 0.010 0.011 Arlington Heights High School #214 1.982 1.818 1.759 1.823 1.621 1.587 1.636 1.839 2.067 2.324 Community College District #512 0.310 0.279 0.281 0.288 0.260 0.256 0.258 0.295 0.334 0.373 Arlington Heights Park District 0.516 0.466 0.453 0.461 0.404 0.379 0.392 0.450 0.496 0.545 187 Village of Mount Prospect Special Service Area #6 Special Service Area #5 School District #59 Mount Prospect Park District School District #57 School District #25 River Trails Park District School District #26 Prospect Heights Park District School District #23 School District #21 Des Plaines Park District Prospect Heights Old Town Sanitary Elk Grove Rural Fire Protection District Prospect Heights Rural Fire Protection District High School District #207 Community College District #535 School District #62 Total Tax Rate for Property Located in the Village of Mount Prospect, Elk Grove Township and School District #59 Share of Total Tax Rate Levied by the Village of Mount Prospect for Village Purposes Total Tax Rate for Property Located in the Village of Mount Prospect, Wheeling Township and School District #26 Share of Total Tax Rate Levied by the Village of Mount Prospect for Village Purposes 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0.418 0.298 - - - - - - - - 0.141 0.125 0.117 0.118 0.101 0.096 0.095 0.105 0.114 0.122 2.127 1.972 1.933 2.013 1.791 1.810 1.945 2.129 2.422 2.673 0.498 0.455 0.459 0.474 0.411 0.407 0.411 0.453 0.502 0.557 3.019 2.740 2.643 2.694 2.334 2.246 2.195 2.521 2.748 3.041 3.653 3.156 3.225 3.295 2.890 2.807 2.510 2.813 3.101 3.416 0.517 0.484 0.480 0.484 0.428 0.422 0.433 0.510 0.553 0.632 3.313 2.948 2.880 3.047 2.698 2.696 2.703 3.131 3.458 3.873 0.730 0.662 0.640 0.658 0.561 0.544 0.523 0.595 0.661 0.746 3.344 2.987 2.880 2.948 2.418 2.363 2.253 2.571 2.869 3.273 3.575 3.262 3.394 3.502 3.154 3.161 3.209 3.658 4.164 4.556 0.444 0.427 0.350 0.356 0.312 0.300 0.317 0.338 0.379 0.425 0.082 0.073 0.071 0.074 0.039 0.015 0.015 0.017 0.020 0.023 0.660 0.722 0.841 1.039 0.895 0.971 1.032 1.055 1.121 1.096 0.819 0.731 0.767 0.795 0.693 0.677 0.652 0.755 0.845 0.934 2.012 1.795 1.757 1.826 1.602 1.577 1.617 1.782 1.995 2.215 0.186 0.161 0.158 0.166 0.141 0.140 0.140 0.160 0.196 0.219 2.228 2.475 2.501 2.627 2.350 2.329 2.492 2.741 3.107 3.490 7.584 6.997 6.840 6.961 6.212 6.114 6.346 6.997 7.913 8.813 11.5% 11.4% 12.1% 12.2% 12.1% 12.0% 11.9% 11.8% 11.8% 11.9% 8.768 7.974 7.787 7.999 7.121 7.000 7.100 7.990 8.940 9.998 10.0% 10.0% 10.6% 10.6% 10.5% 10.5% 10.6% 10.4% 10.5% 10.5% Note: Property Tax Rates are per $100 of Assessed Valuation Data Source: Cook County Clerk 188 VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Property Tax Payers - Current Levy Year and Nine Levy Years Ago December 31, 2013 (Unaudited) 2012 Levy 2003 Levy Percentage Percentage of Total Village of Total Village Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Randhurst Shopping Center CRP Holdings Ramco Gershenson Prop Golf Plaza I & II Home Properties Colony LIT Industrial Limited First Industrial KRCV Corp Cummins -Allison Corp. Huntington Square 1 st Industrial LP Stomad Ctrs. Mt. Prospect E Prop. Tax Dept. 117 Mt. Shire Apartments Colub & Company Bayshore Management Co Cabot Partners $ 28,960,930 1 1.85% $ 64,198,633 1 4.86% 18,996,312 2 1.21% 17,492,627 3 1.12% 16,227,376 4 1.03% 12,165,956 5 0.78% 22,055,464 3 1.67% 8,418,483 6 0.54% 8,186,150 7 0.52% 7,723,968 8 0.49% 7,643,111 9 0.48% 7,405,643 10 0.47% 7,808,785 10 0.59% 23,479,995 2 1.78% 17,292,392 4 1.31% 13,890,225 5 1.05% 12,090,305 6 0.91% 9,776,576 7 0.74% 8,045,821 8 0.61% 7,878,684 9 0.60% $ 133,220,556 8.49% $ 186,516,880 14.11% 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 valuation were overlooked. Data Source: Office of the Cook County Clerk 189 VILLAGE OF MOUNT PROSPECT, ILLINOIS Property Tax Levies and Collections - Last Ten Fiscal Years December 31, 2013 (Unaudited) Fiscal Year Tax Levy Year Taxes Levied for the Fiscal Year Collected within the Fiscal Year of the Lew Percentage Amount of Lew Collections in Subsequent Years Total Collections to Date Percentage Amount of Lew 2004 2003 $ 11,539,756 $ 11,107,262 96.25% $ 313,849 $ 11,421,111 98.97% 2005 2004 11,939,893 11,534,824 96.61% 113,225 11,648,049 97.56% 2006 2005 13,175,689 12,222,889 92.77% 657,014 12,879,903 97.76% 2007 2006 13,506,574 12,369,490 91.58% 879,920 13,249,410 98.10% 2008 2007 14,014,838 13,648,416 97.39% (72,940) 13,575,476 96.87% 2009 2008 14,472,269 14,137,805 97.69% 30,812 14,168,617 97.90% 2010 2009 15,194,636 14,856,084 97.77% (17,210) 14,838,874 97.66% 2011 2010 15,194,635 14,961,411 98.47% 51,220 15,012,631 98.80% 2012 2011 15,852,352 15,614,490 98.50% 133,479 15,747,969 99.34% 2013 2012 16,477,871 16,278,228 98.79% - 16,278,228 98.79% Data Source: Office of the Cook County Clerk 190 VILLAGE OF MOUNT PROSPECT, ILLINOIS Taxable Sales by Category - Last Ten Fiscal Years December 31, 2013 (Unaudited) Fiscal Year 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 Total Number of Taxpayers Village Direct Sales Tax Rate 2004 2005 2006 2007 $ 1,181,411 $ 1,163,392 $ 1,191,814 $ 1,207,238 849,930 901,597 883,285 1,042,920 498,789 547,681 566,627 583,799 156,900 124,284 157,184 149,857 283,729 230,378 280,088 274,809 916,388 907,954 869,944 801,315 756,261 1,185,563 1,267,636 1,333,637 2,565,793 2,210,598 2,682,731 2,454,600 653,924 714,534 819,090 853,036 101,044 115,036 105,704 110,189 $ 7,964,169 $ 8,101,017 $ 8,824,103 $ 8,811,400 1,105 1,125 1,168 1,149 1.00% 1.00% 1.00% 1.00% Note: Data available for calendar year only. The fiscal year of Village of Mount Prospect is same as the calendar year. Excludes Home Rule Sales Tax portion. Data Source: Illinois Department of Revenue 191 2008 2009 2010 2011 2012 2013 $ 1,099,957 $ 800,080 $ 1,054,791 $ 946,021 $ 1,186,217 $ 1,171,771 1,069,087 1,005,043 944,631 895,984 862,501 876,288 564,572 522,897 544,118 596,008 661,285 764,653 68,774 33,425 37,444 216,301 118,034 149,317 243,339 225,436 224,221 237,392 255,967 240,289 704,972 650,987 668,852 683,905 670,057 750,191 1,277,713 1,176,389 1,358,572 1,585,870 1,681,146 1,508,700 3,608,854 3,272,273 3,699,398 3,393,072 3,422,047 4,081,740 1,245,594 1,275,048 1,726,693 1,924,871 2,073,142 2,616,771 184,057 93,616 129,476 135,019 110,009 182,433 $ 10,066,919 $ 9,055,194 $ 10,388,196 $ 10,614,443 $ 11,040A05 $ 12,342,153 900 795 800 839 861 883 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 192 VILLAGE OF MOUNT PROSPECT, ILLINOIS Business District Sales Tax by Category - Last Ten Fiscal Years December 31, 2013 (Unaudited) Fiscal Year 2004 2005 2006 2007 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 Total $ _ $ _ $ _ $ Village Direct Sales Tax Rate 0.00% 0.00% 0.00% 0.00% Note: Data available for calendar year only. The fiscal year of Village of Mount Prospect is same as the calendar year. * Amount reported net of IDOR 2% compliance administration and enforcement charge. Data Source: Illinois Department of Revenue 193 2008 2009 2010 2011 2012* 2013* 89,393 $ 88,289 - - - 18,898 19,146 - - - - 29,413 40,954 - - - - 16,341 15,594 16,287 17,106 - 90,668 101,338 - - - 17,747 29,896 - - - - 4,959 5,203 283,706 $ 317,526 0.00% 0.00% 0.00% 0.00% 0.00% 0.25% 194 VILLAGE OF MOUNT PROSPECT, ILLINOIS Home Rule Sales Taxes by Category - Last Ten Fiscal Years December 31, 2013 (Unaudited) Fiscal Year 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 Total Number of Taxpayers Village Direct Sales Tax Rate 2004 2005 2006 2007 $ 789,838 $ 778,634 $ 793,949 $ 811,505 185,355 169,411 160,335 197,945 368,000 405,729 420,844 4345613 117,774 93,186 117,804 112,251 210,821 172,592 209,656 205,312 683,934 678,295 649,820 598,495 217,502 420,491 464,579 494,408 3735206 407,301 387,350 3815387 517,294 524,602 592,983 6215576 71,726 83,868 76,697 80,093 $ 3,535,450 $ 3,734,109 $ 3,874,017 $ 3,937,585 1,105 1,125 1,168 1,149 0.75% 0.75% 0.75% 0.75% Note: Data available for calendar year only. The fiscal year of Village of Mount Prospect is 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 as well). Data Source: Illinois Department of Revenue 195 2008 2009 2010 2011 2012* 2013* $ 967,261 $ 693,008 $ 811,120 $ 749,509 $ 900,240 $ 885,410 261,398 248,128 266,766 254,207 238,050 240,013 558,908 519,177 539,414 592,596 656,376 754,898 68,267 33,424 37,442 153,487 117,928 148,991 240,192 223,116 220,694 232,711 251,253 235,936 701,258 646,990 665,409 680,356 665,891 743,492 640,842 596,221 697,383 891,042 922,948 948,339 413,511 407,587 484,085 432,639 454,001 509,608 819,975 647,829 632,050 659,611 514,937 492,238 180,157 89,263 126,598 131,640 107,183 179,710 $ 4,851,769 $ 4,104,744 $ 4,480,961 $ 4,777,798 $ 4,828,807 $ 5,138,635 900 795 800 839 861 883 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 196 VILLAGE OF MOUNT PROSPECT, ILLINOIS Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years December 31, 2013 (Unaudited) Fiscal Year State Rate County Rate Regional Transportation Rate Village Direct Rate Home Rule Sales Tax Rate Total Sales Tax Rate 2004 5.00% 1.00% 0.75% 1.00% 0.75% 8.50% 2005 5.00% 1.00% 0.75% 1.00% 0.75% 8.50% 2006 5.00% 1.00% 0.75% 1.00% 0.75% 8.50% 2007 5.00% 1.00% 0.75% 1.00% 0.75% 8.50% 2008 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% 2009 5.00% 2.00% 1.00% 1.00% 1.00% 10.00% 2010 5.00% 1.50% 1.00% 1.00% 1.00% 9.50% 2011 5.00% 1.50% 1.00% 1.00% 1.00% 9.50% 2012* 5.00% 1.25% 1.00% 1.00% 1.00% 9.25% 2013* 5.00% 1.00% 1.00% 1.00% 1.00% 9.00% *Business District is assessed additional 0.25% Sales Tax. Data Source: State of Illinois 197 VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2013 (Unaudited) See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2013 (Unaudited) Fiscal Year General Obligation Bonds Governmental Activities Tax Increment IEPA Financing Loan Bonds Payable (1) 2004 $ 20,013,590 $ 4,175,000 $ 5,656,470 2005 17,974,452 3,365,000 5,215,348 2006 16,540,764 2,570,000 4,760,147 2007 14,760,000 1,655,000 4,290,413 2008 13,105,000 - 3,805,678 2009 24,770,000 - 3,305,459 2010 24,240,000 - 2,789,256 2011 23,630,000 - 2,256,556 2012 22,790,000 - 1,706,824 2013 31,645,000 - 1,139,512 Note: Details of the Village's outstanding debt can be found in the notes to the financial statements. *See the Demographic and Economic Statistics Schedule for personal income and population data. (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 semi-annual installments. (2) In 2012, the Village entered into an installment note to make stormwater improvements. The loan is payable in annual installments over a seven year period. Previously, the Village entered into an installment note to purchase property in the Downtown Redevelopment TIF District for future improvements. Data Source: Audited Financial Statements 198 Business -Type Activities 199 General Total Percentage Installment Obligation Primary of Personal Per Note (2) Bonds Government Income Capita* $ - $ 79,600 $ 29,924,660 2.01% $ 531.85 705,000 - 27,259,800 1.83% 484.49 705,000 - 24,575,911 1.65% 436.79 355,000 - 21,060,413 1.41% 374.31 - - 16,910,678 1.14% 300.55 - - 28,075,459 1.89% 498.99 - - 27,029,256 1.82% 480.39 - - 25,886,556 1.44% 477.90 2,500,000 - 26,996,824 1.47% 498.40 2,475,000 - 35,259,512 1.94% 638.54 199 VILLAGE OF MOUNT PROSPECT, ILLINOIS Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years December 31, 2013 (Unaudited) Fiscal Year General Obligation Bonds 2004 $ 24,188,590 2005 21,339,452 2006 19,110,764 2007 16,415,000 2008 13,105,000 2009 24,770,000 2010 24,240,000 2011 23,630,000 2012 22,790,000 2013 31,645,000 Less: Amounts Available in Debt Service Funds 36,785 419,317 465,990 94,398 131,372 135,817 121,491 Total $ 24,151,805 20,920,135 18,644,774 16,320,602 13,105,000 24,770,000 24,240,000 23,498,628 22,654,183 31,523,509 Percentage of Estimated Actual Taxable Value of _Property (1) 0.61% 0.47% 0.39% 0.34% 0.23% 0.42% 0.40% 0.43% 0.45% 0.67% Per Capita (2) $ 429.25 371.81 331.37 290.07 232.92 440.24 430.82 433.82 418.23 570.88 Note: Details of the Village's outstanding debt can be found in the notes to the financial statements. (1) See the Assessed Value and Actual Value of Taxable Property Schedule for property value data. (2) See the Demographic and Economic Statistics Schedule for the population data. Data Sources: Audited Financial Statements Office of the Cook County Clerk 200 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Direct and Overlapping Governmental Activities Debt December 31, 2013 (Unaudited) Governmental Unit Village of Mount Prospect Mount Prospect Public Library Cook County Forest Preserve District of Cook County Metropolitan Water Reclamation District Community College District #535 Community College District #512 School District #214 School District #207 School District #57 School District #25 School District #26 School District #23 School District #21 School District #59 Arlington Heights Park District Des Plaines Park District Mount Prospect Park District Prospect Heights Park District (2) Percentage (3) Debt Village's (1) Applicable Share of Gross Debt to V i l i age Debt $ 35,259,512 100.00% $ 35,259.512 12,575,000 100.000% 12,575,000 3,747,395,000 1.154% 43,244,938 179,655,000 1.154% 2,073,219 2,431,691,000 1.178% 28,645,320 23,510,000 0.012% 2,821 175,310,000 8.898% 15,599,084 44,695,000 18.093% 8,086,666 9,800,000 0.055% 5,390 8,565,000 94.918% 8,129,727 - 2.574% - 11,200,000 76.832% 8,605,184 8,565,000 7.093% 607,515 44,265,000 3.082% 1,364,247 8,750,000 14.613% 1,278,638 10,040,000 1.570% 157,628 5,915,000 1.675% 99,076 4,380,000 62.876% 2,753,969 - 14.222% - 6,726,311,000 133,228,422 $ 6.761.570.512 $ 168.487.934 (1) Gross bonded debt excluding outstanding general obligation (alternate revenue bonds) which are expected to be paid from sources other than general taxation. (2) Determined by ratio of 2012 assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in Village of Mount Prospect. (3) Amount in column (2) multiplied by amount in column (1). Data Source: Comprehensive Annual Financial Report for Cook County, Illinois (2012) and Metropolitan Water Reclamation District of Greater Chicago (2012) and Office of the County Clerk for all other Government Units (2013). 201 VILLAGE OF MOUNT PROSPECT, ILLINOIS Schedule of Legal Debt Margin December 31, 2013 (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. 202 VILLAGE OF MOUNT PROSPECT, ILLINOIS Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2013 (Unaudited) Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (1) 56,265 56,265 56,265 56,265 56,265 56,265 56,265 54,167 54,167 55,219 (2) Equalized Assessed Value $ 1,491,177,145 1,594,975,722 1,597,309,461 1,870,325,316 1,979,496,030 2,017,411,353 1,834,680,507 1,694,952,801 1,568,774,082 N/A Personal Income $ 1,488,996,960 1,488,996,960 1,488,996,960 1,488,996,960 1,488,996,960 1,488,996,960 1,488,996,960 1,798,831,903 1,841,786,334 1,817,754,261 Note: 2013 Equalized Assessed Valuation is unavailable until 2014. Data Sources: (1) U.S. Department of Commerce, Bureau of the Census (2) Office of the Cook County Clerk (3) IDES Local Area Unemployment Statistics N/A - Not Available 203 (1) Per Capita Personal Income $ 26,464 26,464 26,464 26,464 26,464 26,464 26,464 33,209 34,002 32,919 (3) Unemployment Rate 4.60% 4.40% 3.20% 3.40% 4.50% 7.90% 7.80% 7.40% 6.60% 6.70% VILLAGE OF MOUNT PROSPECT, ILLINOIS Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2013 (Unaudited) 2013 2004 Percentage Percentage of Total of Total Village Village Employer Employees Rank Population Employees Rank Population Caremark Rx, Inc. Bosch Tools Cummins -Allison Corp. Village of Mount Prospect Rauland Borg Mount Prospect S.D. 57 Comcast Carson Pirie Scott Jewel Food Stores Inc. Township High School No. 214 Advance Mechanical Systems, Inc. Commonwealth Edison Bank One Cardone Record Services 1240 1 2.29% 750 1 1.33% 650 2 1.20% 450 2 0.80% 475 3 0.88% 200 9 0.36% 306 4 0.56% 331 3 0.59% 300 5 0.55% 271 6 0.50% 230 8 0.41% 250 7 0.46% 246 8 0.45% 240 9 0.44% 225 10 0.42% 240 7 0.43% 250 4 0.44% 250 5 0.44% 245 6 0.44% 180 10 0.32% 4,203 7.75% 3,126 5.56% Data Source: Village Records, 2004 Illinois Manufacturers Directory, 2004 Illinois Services Directory 204 VILLAGE OF MOUNT PROSPECT, ILLINOIS Full -Time Equivalent Village Government Employees by Function/Program - Last Ten Fiscal Years December 31, 2013 (Unaudited) See Following Page VILLAGE OF MOUNT PROSPECT, ILLINOIS Full -Time Equivalent Village Government Employees by Function/Program - Last Ten Fiscal Years December 31, 2013 (Unaudited) Function/Program 2004 2005 2006 Public Representation/Community and Civic Services 1.05 1.05 1.05 General Government Village Administration Administration 13.65 15.15 15.45 Finance 15.00 15.00 15.00 Total Village Administration 28.65 30.15 30.45 Community Development Community Development 20.90 20.90 20.90 Community Development/CDBG 1.20 1.20 1.20 Total Community Development 22.10 22.10 22.10 Human Services Department 8.70 7.60 7.60 Public Safety and Protection Police Department 105.50 105.50 110.50 Fire Department 80.70 80.70 83.90 Total Public Safety and Protection 186.20 186.20 194.40 Public Works Department Administration 3.35 3.35 3.35 Streets/Buildings/Parking 14.60 14.60 14.60 Forestry 11.80 10.80 10.80 Engineering 7.90 7.90 8.30 Water/Sewer 25.75 25.75 25.55 Refuse Disposal 2.90 2.90 2.90 Parking - - - Vehicle Maintenance 9.10 9.10 8.90 Total Public Works Department 75.40 74.40 74.40 Village Total Data Source: Village Budget 205 322.10 321.50 330.00 2007 2008 2009 2010 2011 2012 2013 1.05 1.05 1.05 1.05 2.10 2.10 2.10 16.45 16.95 16.95 14.95 14.95 15.45 15.45 15.00 15.00 15.00 13.00 13.00 13.00 13.00 31.45 31.95 31.95 27.95 27.95 28.45 28.45 22.90 23.40 23.15 20.48 20.48 17.75 18.50 1.20 1.20 1.20 1.25 1.25 1.25 1.00 24.10 24.60 24.35 21.73 21.73 19.00 19.50 7.60 7.60 10.60 9.50 9.50 9.50 9.50 111.50 111.50 111.50 97.83 97.83 99.50 100.50 84.20 84.20 82.20 74.75 74.75 74.50 74.50 195.70 195.70 193.70 172.58 172.58 174.00 175.00 3.35 3.35 3.35 2.85 2.85 2.85 2.85 14.80 14.60 14.80 11.35 11.85 11.85 12.45 10.80 10.80 10.80 10.70 9.75 9.75 9.25 8.30 8.30 8.30 8.00 8.00 8.00 8.00 26.15 26.15 26.15 26.50 25.00 25.00 24.75 2.90 2.90 2.90 2.90 2.90 2.90 2.90 - - - - 0.90 0.90 0.90 8.90 9.10 10.90 10.90 10.90 10.90 10.75 75.20 75.20 77.20 73.20 72.15 72.15 71.85 335.10 336.10 338.85 306.01 306.01 305.20 306.40 206 VILLAGE OF MOUNT PROSPECT, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2013 (Unaudited) Function/Projzram 2004 2005 2006 Finance Department Vehicle Stickers Issued 38,969 38,425 38,973 Utility Bills 86,429 85,894 100,846 Real Estate Transfer Tax Stamps Sold 1,774 1,903 1,624 Community Development Building Division Permits Issued 3,429 3,217 2,866 Plan Reviews 473 744 787 Building Code Inspections 13,364 14,364 9,590 Environmental Health Division Food Service Inspections 404 364 400 Multi -Family Buildings Inspections 654 414 583 Swimming Pools/Spa Inspections 30 6 33 Public Safety Police Number of Crimes 4,548 3,834 3,247 Number of Service Calls 43,656 30,387 25,443 Number of Arrests 2,032 1,740 1,855 Moving Violations 7,947 7,383 6,522 Parking Citations 6,799 8,194 7,641 Fire Fire Calls 1,882 1,837 1,647 EMS Calls 3,229 3,443 3,679 Fire Prevention Inspections 2,305 2,692 4,388 Training Hours 25,180 22,397 21,865 Public Works Streets Street Resurfacing (Miles) 9.00 5.00 9.00 Crack Filling (Pounds) 56,520 58,700 47,390 Leaves Removed (Cubic Yards) 18,096 16,897 14,302 Water Water Mains Installed (Lineal Feet) 1,150 3,250 3,000 Water Purchased (1,000 Gallons) 1,491,000 1,491,251 1,501,699 Sanitary Sewers Cleaned (Feet) 45,000 45,000 70,000 Refuse (Single/Multi-Family) Solid Waste Collected (Tons) 37,465 33,019 32,188 Recycling (Tons) 6,685 7,348 6,890 *2013 are estimated amounts. Final figures are not available at time of printing report. Data Source: Village Records 207 2007 2008 2009 2010 2011 2012 2013* 2,278 2,400 553 452 420 38,851 39,208 39,650 40,018 39,834 43,092 43,898 97,677 86,577 86,458 86,057 86,701 90,147 152,360 1,249 947 986 1,086 1,022 1,282 1,474 2,801 2,687 2,415 2,922 2,821 2,278 2,400 553 452 420 505 515 595 500 8,438 7,631 8,564 8,783 8,508 9,154 8,700 392 340 394 400 394 405 400 476 279 491 664 664 565 585 62 59 28 - - - - 4,295 4,242 3,921 3,696 3,359 3,178 3,100 26,694 25,631 23,600 22,028 19,943 19,184 19,500 1,928 1,769 1,736 1,898 1,845 1,602 1,500 7,985 8,723 10,355 10,139 7,026 5,979 6,300 9,438 10,690 10,256 11,317 9,363 7,640 7,900 2,273 2,019 1,817 1,888 2,350 1,892 1,905 3,518 3,487 3,535 3,465 3,590 3,885 4,125 3,652 3,264 4,258 3,790 3,418 3,308 3,500 22,837 21,073 23,851 24,313 23,578 21,340 22,257 7.00 5.00 5.80 5.00 4.70 5.20 6.00 57,660 55,000 57,118 46,846 40,871 51,885 49,153 15,187 16,272 18,970 15,424 14,843 12,569 13,000 3,200 8,079 5,475 5,475 - - - 1,440,716 1,369,479 1,346,272 1,296,556 1,287,525 1,341,268 1,284,779 70,000 30,000 55,150 55,150 54,236 58,922 65,000 32,928 32,101 30,231 31,963 32,264 31,385 31,022 6,728 6,644 6,154 6,117 6,644 6,028 6,149 208 VILLAGE OF MOUNT PROSPECT, ILLINOIS Capital Asset Statistics by Function/Program - Last Ten Fiscal Years December 31, 2013 (Unaudited) Function/Program 2004 2005 2006 Public Safety Police Stations Patrol Vehicles Fire Fire Stations Fire Engines/Vehicles Public Works Residential Streets (Miles) Water Water Mains (Miles) Fire Hydrants Storage Capacity (Gallons) Wastewater Sanitary Sewers (Miles) Storm Sewers (Miles) Combined Sewers (Miles) Data Source: Various Village Departments 209 1 36 ! 38 l 39 3 3 3 25 23 22 134 134 134 163 163 164 2,230 2,200 2,309 8.8M 8.8M 8.8M 93 93 93 123 123 123 59 59 59 2007 2008 2009 2010 2011 2012 2013 1 1 1 1 1 1 1 35 35 34 34 34 33 33 3 3 3 3 3 3 3 22 22 22 22 22 20 23 134 134 134 134 134 134 135 166 166 166 162 162 161 161 2,328 2,328 2,328 2,295 2,295 2,274 2,274 8.8M 8.8M 8.8M 8.8M 8.8M 8.8M 8.8M 93 93 93 71 71 71 71 123 124 124 128 128 135 135 59 59 59 54 54 53 54 210 VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS FINANCIAL INFORMATION STATEMENT OF INDEBTEDNESS Assessed Valuation of Taxable Real Property, 2012 Estimated True Value of Taxable Real Property, 2012 Direct Bonded Debt payable from Property Taxes (1) Payable From Property taxes Self -Supporting Debt Total Direct Bonded Debt O%erlapping 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. SeK-Supporting 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, 2013". 3. The Village's 2012 equalized assessed valuation includes $38,247,882 incremental valuation in the Village's tax increment financial district. RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December, 31, 2013) Amount As Per Cent of Per Capita Due Applicable as of Assessed Estimated 2000 Census December 31 2013 Value True Value Levy 54,167 $ 1,607,021,964 (3) 100.00% 33.33% $ 29,667.92 2014 4,821,065,892 300.00% 100.00% 2013 89,003.75 $ 31,645,000 1.97% 0.66% $ 584.21 2016 1,614,512 0.10% 0.03% 2015 29.81 $ 33,259,512 2.0% 0.699/6 $ 614.02 $ 43,679,272 2.72% 0.91% $ 806.38 2019 89,549150 5.57% 1.86% 2018 1,653.20 $ 133,228,422 8.29% 2.76% $ 2-4;x9.59 $ 166,487,934 10.36% 3.45% $ 3.073.60 $ 164,873,422 10.26% 3.429/6 $ 3,043.80 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, 2013". 3. The Village's 2012 equalized assessed valuation includes $38,247,882 incremental valuation in the Village's tax increment financial district. RETIREMENT SCHEDULE OF OUTSTANDING VILLAGE GENERAL OBLIGATION BONDED DEBT (Note 1) (As of December, 31, 2013) 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 entered into five installment contracts with the Illinois EPA (excluded from the table above) to provide funding for a portion of the Village's storm water/flood control program. The installment contracts (each with semi-annual payments) have final maturities on July 12, 2013, May 1, 2014, December 10, 2014, November 1, 2017 and June 3, 2019. Total principal outstanding on the IEPA installment contracts was $1,614,512 as of December 31, 2013. Debt service is being paid from the Village's % cent home rule sales tax instituted effective September 1, 1991 for the purpose of funding the Village's $18.6 million flood control program. 2. Excludes the Series 2006 Library Refunding Bonds and the Series 2011A Library Refunding Bonds. An intergovernmental agreement between the Village and the Mount Prospect Public Library requires the Library to levy taxes sufficient to cover 100% of the debt service ($12,575,000) on the Library Bonds. 211 _ _ Principal Maturities Due Source of Payments Total Maturities Debt Service Tax Levies Calendar Property Annual Cumul. Levy Property Date Taxes (2) Amount Percent Year Taxes 2014 980,000 980,000 3.1% 2013 2,251,681 2015 1,025,000 1,025,000 6,3% 2014 2,188,683 2016 1,065,000 1,065.000 9.7% 2015 2,202,583 2017 1,110,000 1,110,000 13.2% 2016 2,218,528 2018 1,160, 000 1,160, 000 16.9% 2017 2,237,723 2019 1,215,000 1,215,000 20.7% 2018 2,258,376 2020 2,690,000 2,690,000 29.2% 2019 2,836,320 2021 1,985,000 1,985,000 35.5% 2020 2,910,060 2022 1,085,000 1,085,000 38.9% 2021 2,854.905 2023 2,080,000 2,080,000 45.5% 2022 2,895,419 2024 2,185, 000 2,185, 000 52.4% 2023 2,918,869 2025 2,300,000 2,300,000 59.7% 2024 2, 946, 469 2026 2,425,000 2,425,000 67.3% 2025 2,976,169 2027 2,550,000 2,550,000 75,4% 2026 2,998,919 2028 2,685,000 2,685.000 83.9% 2027 3,024,981 2029 1,760,000 1,760,000 89.4% 2028 1,982,806 2030 790,000 790,000 91.9% 2029 924,906 2031 820,000 820,000 94.5% 2030 923,306 2032 850,000 850,000 94.1% 2031 920,506 2033 885,000 885,000 100.0% 2032 921,506 $31,645,000 $31,645,000 Notes: 1. The Village is a home rule unit under the 1970 Illinois Constitution and as such has no debt limit, nor is it required to seek referendum approval for the issuance of general obligation debt. The Village has entered into five installment contracts with the Illinois EPA (excluded from the table above) to provide funding for a portion of the Village's storm water/flood control program. The installment contracts (each with semi-annual payments) have final maturities on July 12, 2013, May 1, 2014, December 10, 2014, November 1, 2017 and June 3, 2019. Total principal outstanding on the IEPA installment contracts was $1,614,512 as of December 31, 2013. Debt service is being paid from the Village's % cent home rule sales tax instituted effective September 1, 1991 for the purpose of funding the Village's $18.6 million flood control program. 2. Excludes the Series 2006 Library Refunding Bonds and the Series 2011A Library Refunding Bonds. An intergovernmental agreement between the Village and the Mount Prospect Public Library requires the Library to levy taxes sufficient to cover 100% of the debt service ($12,575,000) on the Library Bonds. 211 DEBT RATIOS AND PER CAPITAL DEBT -LAST TEN GENERAL OBLIGATION BOND SALES (Note 1) Village Issue Sale Date May 21, 2002 January 21, 2003 December 15, 2006 February 17, 2009 December 1, 2009 December 1, 2009 July 29, 2011 July 29, 2011 January 3, 2012 September 10, 2013 Amount 20, 500,000 12,235,000 10,000,000 10,000,000 3,430,000 2,650,000 4,100, 000 5,160,000 2,975,000 9,800,000 Direct Debt Including Exclu Self- Sal Supporting Suppo 1.34% (2) 1.39% Supporting (2) 0.78% 4.03% 0.72% 2,445.85 0.70% 3.43% 0.70% 2.72% 060% 2,921.82 0.60% 2.45% 0.60% 2.47% 0.92% 3,042.80 Estimated Actual Value rting 0 1.05% 0.69% 0.72% 0.70% 0.70% 0.60% 0.60% 0.60% 0 Direct & Overlappinq Debt ding Including Excluding f- Self- Self- (2) Supporting Supporting (2) 86% 4.03% 3.55% 2,445.85 3.77% 3.43% 2,749.42 2.72% 2.63% 2,921.82 2.45% 2.45% 2,921.82 2.47% 2.47% 3,042.80 2.47% 2.47% 5.8% 2.80% 2.80% 47,418,968 2.80% 2.80% 2010 2.80% 280% 92% 3.42% 3.42% Per Capita (3) Direct & Overlapping Debt Including Excluding Self- Self - Supporting Supporting (2) 2,360.04 2,077.65 2,544.05 2,316.16 2,362.39 2,287.21 2,445.85 2,445.85 2,749.42 2,749.42 2,74942 2,749.42 2,921.82 2,921.82 2,921.82 2,921.82 2,92182 2,92182 3,042.80 3,043.80 Notes: 1. Information in table pulled from applicable Official Statements. 2. Excludes the Village's general obligation bonds which are payable from non -property taxes. 3. Village population estimates used in these calculations were 56,265 in 2001-2009, and 54,167 beginning in 2010. Notes: 2. 3. EQUALIZED ASSESSED VALUATION FOR TAXING PURPOSES (Note 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. Under the current triennial reassessment system in Cook County, the Village was most recently reassessed in 2010. 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. The Village's tax rate is calculated based on the village's Net Equalized Assessed Valuation (shown in this table as "Net for General Taxing Purposes") and is extended against its entire Equalized Assessed Valuation (shown in this table as "Total for all Taxing Purposes") excluding only the statuary exemptions. Of the taxes collected, that portion applicable to incremental valuation (valuation of tax increment districts) is remitted to the Village by the County Collector for deposit in the applicable tax allocation fund. The Equalized Assessed Valuation for which the Village receives its portion of the total tax rate for all non -TIF purposes is shown in this table as "Net for General Taxing Purposes". 212 Real Property Tax Net For Plus Total For All Increase Levy General Taxing Incremental Taxing Over Year (2) Purposes (3) Valuation Purposes (4) Prior Year 2007 1,870,325,316 46,887,069 1,917,212,385 16.9% 2008 1,979,496,030 48,422,280 2,027,918,310 5.8% 2009 2,017,411,353 47,418,968 2,064,830,321 1.8% 2010 1,834,680,507 48,715,123 1,883,395,630 (8.8%) 2011 1,694,952,801 42,659,295 1,737,612,096 (7.7%) 2012 1,568,774,082 38,247,882 1,607,021,964 (7.5%) 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. Under the current triennial reassessment system in Cook County, the Village was most recently reassessed in 2010. 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. The Village's tax rate is calculated based on the village's Net Equalized Assessed Valuation (shown in this table as "Net for General Taxing Purposes") and is extended against its entire Equalized Assessed Valuation (shown in this table as "Total for all Taxing Purposes") excluding only the statuary exemptions. Of the taxes collected, that portion applicable to incremental valuation (valuation of tax increment districts) is remitted to the Village by the County Collector for deposit in the applicable tax allocation fund. The Equalized Assessed Valuation for which the Village receives its portion of the total tax rate for all non -TIF purposes is shown in this table as "Net for General Taxing Purposes". 212 DETAILED OVERLAPPING BONDED INDEBTEDNESS PAYABLE FROM PROPERTY TAXES AT DECEMBER 31, 2013 TAX RATES PER $100 EQUALIZED ASSESSED VALUATION (Note 1) Village of Mount Prospect: Bonds and Interest Pensions (Police, Fire) Corporate Garbage Total Village Cook County, Including Forest Preserve District Metropolitan Water Reclamation District Mount Prospect Park District Mount Prospect Public Library Special Service Area No. 5 Community Consolidated School District No. 59 Township High School District No. 214 Harper College No. 512 All Other Total (2) Village as a Percent of Total 0.156 0.393 0.090 Percent of $ 0.732 Village's Applicable Share 0.466 Village's 2013 0.252 of Gross Debt to be 0.407 Real Properly Gross _Paid From Property Taes (2) SCHOOL DISTRICTS: in Ta)dng Bodv ___,..._.. Bonded Debt (1) Percent Amount Elementary Districts: 0.256 0.258 0.067 0.093 Mount Prospect No. 57 34.8% 8,565,000 94918% 8,129,727 River Trails No. 26 28.2% 11,200,000 76.832% 8,605,184 Community Consolidated No 59 27.7% 8,750,000 14.613% 1,278,638 Wheeling Community Consolidated No, 21 3.5% 44,265,000 3.082% 1,364,247 Prospect Heights No. 23 2.9% 8,565,000 7.093% 607.515 Arlington Heights No. 25 2.8% - 2.574% High School Districts: Wheeling/Elk Grove No. 214 99.8% 44,695,000 18.093% 8,086,666 Maine Township No. 207 0.2% 9,800,000 0.055% 5,390 Community Colleges: Oakton No. 535 0.2% 23,510,000 0.012% 2,821 Harper No. 512 99.8% 175,310,000 8.898% 15,599,084 Total Schools 43,679,272 OTHER THAN SCHOOL DISTRICTS: Cook County, Including Forest Preserve District 100.0% 3,927,050,000 1.154% 45,318,157 Metropolitan Water Reclamation District 100.0% 2,431,691,000 1.178% 28,645,320 Mount Prospect Public Library 100.0% 12,575,000 100.000% 12,575,000 Park Districts: Mount Prospect 64.3% 4,380,000 62.876% 2,753,969 Arlington Heights 2.5% 10,040,000 1570% 157,628 Des Plaines 1.6% 5,915,000 1.675% 99,076 Prospect Heights 3,6% - 14.222% - Total Other Than Schools 69,549,150 Notes: 1. Excludes principal amounts outstanding on "alternate bonds" issued pursuant to Public Act 85-1419, which are considered to be self-supporting since they are payable from user fees or other pledged non -property tax sources. 2 Village's share based upon 2012 Real Property valuations. TAX RATES PER $100 EQUALIZED ASSESSED VALUATION (Note 1) Village of Mount Prospect: Bonds and Interest Pensions (Police, Fire) Corporate Garbage Total Village Cook County, Including Forest Preserve District Metropolitan Water Reclamation District Mount Prospect Park District Mount Prospect Public Library Special Service Area No. 5 Community Consolidated School District No. 59 Township High School District No. 214 Harper College No. 512 All Other Total (2) Village as a Percent of Total 0.156 0.393 0.090 0.190 0.399 0.089 $ 0.732 $ 0.754 0.466 0.443 0.252 0261 0.407 0.411 0.441 0.450 0.096 0.095 1.810 1.945 1.587 1.636 0.256 0.258 0.067 0.093 $ 6.114 $ 6.346 12.0% 11.9% Levy Years 0.257 0.278 0.316 0.377 0.444 0.501 0.097 0.109 0.121 $ 0.829 $ 0.936 $ 1.051 0.474 0.520 0.594 0.274 0.320 0.370 0.453 0.502 0.557 0.519 0.582 0.646 0.105 0.114 0.122 2.129 2.422 2.673 1.839 2.067 2.324 0.295 0.334 0.373 0.080 0.116 0.103 $ 6.997 $ 7.913 $ 8.813 11.8% 11.8% 11.9% Notes 1. As a home rule unit under the 1970 Illinois Constitution, the Village has no statutory tax rate or levy limitations. 2. Tax rate applicable to the largest tax code in the Village and most recent available from Cook County. 213 TAX EXTENSIONS AND COLLECTIONS (Village Purposes Only) Levy Collection Total Taxes Year Year Extended Total Taxes Collected as of December 31, 2013 (Note 1) Amount Percent (2) 2008 2009 14,472,269 14,191,667 98.06% 2009 2010 15,194,636 14,950,031 98.39% 2010 2011 15,194,635 15,121, 878 99.52% 2011 2012 15,852,352 15,614,490 98.50% 2012 2013 16,477,871 16,278,228 98.79% Notes: 1. Source: Cook County Treasurer's Office. Tax payments, including late payments and proceeds from tax sales, are shown as collections in the year when due. The "Amount Collected" is not the same as distributions to the Village because tax refunds (pursuant to court orders, first time homestead exemptions other exemptions, etc.) are deducted from "Amount Collected" and interest earnings are added to "Amount Collected" in calculating the distributions. 2, Cook County property taxes are payable in two installments: the first on March 1, and the second on the latter of August 1 or 30 days after the mailing of the tax bills. The first installment is an estimated bill and is 55% of the prior year's bill. The second installment is based on the current levy, assessment and equalization and reflects any changes from the prior year in those factors. TEN LARGEST TAXPAYERS Equalized Assessed Percent of Rank Taxpaver Business/Properties Valuation (1) Village (2) 1 Randhurst Casto Conger Shopping Center $ 28,960,930 1.85% 2 CRP Holdings Real Estate 18,996,312 1.21% 3 Ramco Gershenson Prop Shopping Center 17,492,627 1.12% 4 Golf Plaza I & II Shopping Center 16,227,376 1.03% 5 Home Properties Colony Colony Square Apartments 12,165,956 0.78% 6 LIT Industrial Limited Real Estate 8,418,483 0.54% 7 First Industrial Real Estate 8,186,150 0.52% 8 KRCV Corp. Real Estate 7,723,968 0.49% 9 Cummins -Allison Corp. Manufacturing 7,643,111 0.49% 10 Huntington Square Apartments 7,405,643 0,47% $ 133,220,556 8,49% Notes: 1. Valuations as of January 1, 2012 for 2013 tax purposes. 2. Total 2012 Village valuation excluding incremental valuation in the Village's tax increment district is $1,568,774,082. 214 2006 AND 2012 TAX BASE DISTRIBUTION BY PROPERTY CLASSIFICATION* * Excludes the incremental valuation in the Village's tax increment financing district (classified as commercial valuation). A breakdown by property classification of the Village's levy year 2013 valuation is not available as of the date of this report. GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) Village of Mount Prospect Taxable Valuation Percent of Total 2013 Classification 20062012 2010 % Increase 2006 2012 Residential 1,048,895,640 1,141,783,464 8.86% 65.67% 7278% Commercial 357,812,772 281,197,939 -21.41% 22.40% 1792% Industrial 190,150,899 145,136,294 -2367% 11.90% 9.25% Railroad 450,150 656,385 45.81% 0.03% 0.04% Total 1,597,309,461 1,568,774,082 -1.79% 100.00% 10000% * Excludes the incremental valuation in the Village's tax increment financing district (classified as commercial valuation). A breakdown by property classification of the Village's levy year 2013 valuation is not available as of the date of this report. GENERAL FUND (Note 1) Summary Statement of Revenues, Expenditures and Changes in Fund Balance (Fiscal Years Ending December 31) 215 Actual 2013 Reeenues: 2009 2010 2011 2012 Budget Actual Property Taxes 10,738,759 11,719,530 11,596,829 12,099,210 12,767,000 12,645,791 Sales Taxes 9,055,194 10,388,196 11,809,779 12,252,909 13,290,000 13,627,166 State Income Taxes 4,573,162 4,428,176 4,328,196 4,759,513 5,165,000 5,161,051 Licenses, Permits & Fees 3,672,054 3,394,211 3,356,816 3,657,586 3,563,500 3,589,368 Utility Taxes 4,519,175 5,709,895 4,624,678 4,658,265 5,032,000 4,658,265 Charges for Service 1,691,169 1,655,275 1,694,638 1,741,906 1,790,400 1,858,829 Fines & Forfeits 529,655 556,178 548,993 403,036 473,000 430,960 Interest Income 64,955 43,540 23,067 29,927 35,000 6,561 Food & Beverage Tax 751,121 790,965 867,630 710,328 740,000 719,190 Real Estate Transfer Tax 405,300 379,942 363,194 515,330 855,000 853,617 All Other Revenues 2,864,926 1,646,416 1,959,168 1,789,713 962,096 1,445,740 Total Revenues $ 38,865,470 $ 40,712,324 $ 41,172,988 $ 42,617,723 $ 44,672,998 $ 44,996,538 Expenditures: General Govemment Public Representation Division 119,564 155,765 108,809 110,257 123,490 114,948 Village Managers Office 3,416,827 2,842,920 2,939,764 3,106,851 3,438,300 3,185,452 Finance Department 1,564,367 1,571,136 1,561,758 1,505,295 1,869,017 1,843,581 Community Development - Administration 649,803 625,171 628,017 644,281 710,707 661,459 Benefit Payments 45,590 45,724 45,861 46,004 46,151 46,150 Total General Government $ 5,796,151 $ 5,240,716 $ 5,284,209 $ 5,412,688 $ 6,187,665 $ 5,851,590 Public Safety: Code Enforcement 859,191 909,852 837,639 739,004 800,604 711,081 Police Department 14,150,722 14,512,406 14,657,035 15,286,394 15,964,552 15,783,921 Fire & Emergency Protection Department 11,338,494 11,443,146 11,448,614 11,946,079 12,781,150 12,678,986 Emergency Events - - 2,010 1,182 Total Public Safety $ 26,348,407 $ 26,865,404 $ 26,943,288 $ 27,971,477 $ 29,548,316 $ 29,175,170 Highways & Streets 6,424,112 5,925,170 6,587,426 6,307,158 7,662,650 7,341,461 Health 126,152 125.512 137,445 143,295 156,163 142,062 Welfare 1,518,685 1,573,887 1,487,707 1,624,282 1,653,536 1,569,824 Culture & Recreation 358,207 313,125 346,032 399,366 485,296 435,931 Net Transfers (In)/Out 635,100 450,000 (370,000) 166,247 Total Expenditures $ 41,206,814 $ 40,493,814 $ 40,786,107 $ 41,858,266 $ 45,323,626 $ 44,682,285 Revenues Over(Under) Expenditures $ (2,341,344) $ 218,510 $ 386,881 $ 759,457 $ (650,628) $ 314,253 Ending Fund Balance $ 10,199,481 $ 10,417,991 $ 10,804,872 $ 11,564,329 $ 10,913,701 $ 11,878,582 215 Assets: Cash & Investments Receivables Property Taxes Other Taxes All Other Due From Other Funds Due From Other Governments All Other Assets Total Assets Liabilities & Fund Balance Accounts Payable Deferred Revenues Property Taxes All Other Liabilities Fund Balance: Nonspendable Restricted Committed Unassigned Total Fund Balance Total Liabilities & Fund Balance Balance Sheet — December 31 2009 2010 2011 2012 2013 $ 3,478,913 $ 4,067,456 $ 5,512,091 $ 7,352,604 $ 6,886,656 11, 796, 455 12, 668, 700 12,125, 463 12, 657, 923 14, 543, 097 882,194 5,553,370 5,707,230 5,290,786 5,711,586 453,866 484,576 461,664 448,569 492,912 2,054,902 1,563,298 568,815 91,318 212,603 3,839,368 409,880 94,142 274,942 53,602 88,492 _ 53.536 100,590 98,150 297,762 22-594,190 $ 24, 800.816 $ 24, 569, 995 $ 26, 214, 292 $ 28,198, 218 $ 466,189 $ 669,697 $ 530,670 $ 621,570 $ 334,043 11, 635, 298 11, 392, 567 11, 991, 724 12, 554, 622 14, 396, 036 293,222 2,320,561 1,242,729 1,473,771 1,589,557 88,492 53,536 100,590 98,150 297,762 10,110, 989 10.364.455 10,704,282 11, 466,179 11, 580, 820 $ 10,199,481 $ 10.417,991 $ 10,804,872 $ 11,564,329 _ $ 11,878,582 $ 22,594,190 $ 24.800.316 $24.569.9 95 $ 26,214,292 $ 28.198,218 Notes: 1. This condensed financial information for the years ending December 31, 2009-2013 has been excerpted from the full Comprehensive Annual Financial Reports of the Village. The accounting policies of the Village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: The General Fund is accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized when the related fund liability is incurred. 216 COMBINED STATEMENT -ALL FUNDS (Note 1) Fund Balances 2009-2012 and Summary 2013 Revenues, Excess Revenues and Fund Balance (Fiscal Years Ended December 31) Notes: 1. This condensed financial information for the years ending December 31, 2009-2013 has been excerpted from the full Comprehensive Annual Financial Reports of the Village. The accounting policies of the village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: All Governmental Funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets; expenditures are recognized when the related fund liability is incurred. All Proprietary Funds and Pension Trust Funds are accounted for using the accrual basis of accounting. This table excludes the Village's Expendable Trust Funds and Agency Funds. The Village's Comprehensive Annual Financial Report for the year ended December 31, 2013 included an unqualified "Independent Auditor's Report". Similar unqualified opinions were included in the Village's Comprehensive Annual Financial Reports for the years ending December 31, 2009-2012. The "Independent Auditor's Report" included in the latest audit states, in part: "In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discreetly presented component unit each major fund, and the aggregate remaining fund information of the Village of Mount Prospect Illinois, as of December 31, 2013, and the respective changes in financial position and cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of America." 2. The Village's property tax revenue recognition policy conforms to the provisions of "NCGA Interpretation 3, Revenue Recognition Property Taxes." The current net tax levy receivable is recognized in the balance sheet along with a corresponding amount of deferred revenue. In addition, the debt service payments and liabilities related to the current net tax levy are not reflected in the Debt Service Funds; the un -matured principal is reflected in the General Long -Term Debt Account Group. 3. Includes the Capital Improvement Fund, which accounts for the resources used to provide for mid-sized capital projects. Financing is provided by one-quarter cent home rule sales tax, developer contributions, transfers from other funds, interest income, and bond proceeds. 4. Fund balances shown for the Enterprise Funds are total fund equity, including contributed capital and retained earnings, and the column "Revenue Over Expenditures" represents the change in that amount. 5. The Village created a Risk Management Fund in 1984 to account for the servicing and payment of claims for liability, property, casualty coverage and Workers' Compensation. Financing is provided by charges to the various Village funds. The Village created a Vehicle Replacement Fund in fiscal year 1991 to account for the acquisition and depreciation of Village vehicles. Financing is provided by charges to the General, Water and Sewer, and Parking Funds. The Village created a Vehicle Maintenance Fund in 1996 to account for maintenance and repair of all Village vehicles except Fire Department vehicles. In 1997, the Village created a Computer Replacement Fund to account for the acquisition and depreciation of Village computer hardware. 6. Excludes agency funds. 217 Fiscal Year Ended December 31, 2013 Revenue Revenue Incl Transfers Over Property (Under) Fund G-mmentsl Fund Types (2): 2009 2010 2011 2012 Tax Total Expenditures Balance General Fund • $ 10,199,481 $ 10,417,991 $ 10,804,872 $ 11,564,329 $ 12,645,791 $ 44,996,538 $ 314,253 $ 11,078,582 Special Revenue Funds: Motor Fuel Tax $ (448,734) $ (230,294) $ 336,394 $ 509,470 $ - $ 1,502,776 $ (170,609) $ 338,861 Community Development Block Grant - -299,128 - - Refuse Disposal • 2,255,013 2,261,635 2,146,149 2,355,748 1,846,553 4,404,855 89,369 2,445,117 Asset Seizure 50,411 60,205 54,000 40,479 16,882 2,180 42,659 DEA shared Funds 19,209 16,749 4,909 4,919 6,595 6,595 11,514 DUI Fines27,153 41,302 44,132 55,431 35,108 9,856 65,287 Foreign Fire Tax Fund 121,037 116,134 171,030 227,346 - 63,603 46,000 273,346 Justice Assistant Grant Fund - - 10,203 835 - - (835) Business District Fund 77,195 434,120 963,408 (434,037)03 Total Special Revenue $ 2,024,089 $$ 2 'F 3,628,348 $ 1,846,553 $ 7,372,355 (451,481) 3,176,867 Debt Service •(485,124) (78,844) 131,372 135,617 1,733,510 2,436,868 (14,326) 121,491 Capital Projects (3t 6,378,469 4,531,304 3,559,985 7,530,930 2,644,680 16,799,655 8,174,576 15,705,506 TotalGovernmental $ 18,116,915 $ 17,136,182 $ 17,340,241 $ 22,859,424 $ 18,070,542 $ 71,605,616 $ 8,023,022 $ 30,882,446 Proprietary & Fiduciary Fund Types Enterprise Funds (4): Water and Sewer• $ 28,090,349 $ 31,469,468 31,708,474 33,055,996 $ 1,507,661 $ 11,620,238 $ 1,030,457 34,066,453 Village Parking System 317,792 352,594 351,966 331,280 - 338,855 (7,446) 323,832 Internal SeMce Funds (5) 15,009,510 14,308,173 13,484,444 13,420,662 - 11,096,822 1,166,637 14,587,299 Pension Trust Funds: Police Pension 41,020,480 44,540,311 44,777,147 48,922,651 - 10,325,160 6,453,324 55,375,975 Firefighters Pension 40,800,750 431860,979 43,864,977 47,233,555 10,420,040 6,462,861 53,716,416 Total Proprietary & Fiduciary $ 125,238,881 $ 134,531,525 $ 134,059,623 $$ 14�,172r- ,661 3, 01, =1 7f 15,125,831 $ 158,089,975 DlscreaLy Presented Component Unit: Mount Prospect Public Library 510431264 5,660,784 6,816,490 8,069,424 $ 10,080,051 $ 10,389,745 $ 1,357,864 9,427,288 Total All Funds (Memo Only) $ 148,399,080 $ 157,328,491 $ 158,214,076 $ 173,692,992 $ 30,467,054 $ 125,796,476 $ 24,506,717 190,399,709 ' Designated as major lands Cash & Investments at 12/31 (a): 2009 2010 2011 2012 2013 General Fund $ 3,478,913 S 4,067,456 $ 5,512,091 $ 7,352,604 $6,086,656 Internal Service Funds 10,350,298 9,720,037 10,014,805 9,567,402 10,830,350 Refuse Disposal 2,005,380 1,665,464 1,969,567 2,022,049 2,231,160 Other Special Revenue Funds 227,363 258,646 592,878 1,179,343 1,575,85B Debt Service Funds 163,099 438,301 20,636 113,267 Subtotal $ 16,225,053 $ 16,369,908 $ 1�OB , -41' 20,142,034 $ 21,637,311 Capital Project Funds 8,621,164 3,635,004 3,221,653 6,657,075 15,487,737 Water &Sewer 3,646,859 3,146,060 2,709,629 4,356,739 5,362,441 Other Enterprise Funds 438,421 369,051 330,277 345,528 316,808 Pension Trust Funds 81,418,602 87,488,209 88,669,220 95,892,376 4,017,027 Other Fiduciary Funds 1,411,976 1,226,7431,189,052 1,443,227 1.511.610 Discreetly Presented Component Unit 4,668,713 4,070,978 5,485,383 6,321,919 7,121,643 Total $ 116,432,786 -r1-16,308,851 $ 119,694,355 $ 135,150,898 $ 5�5, 94,577 Notes: 1. This condensed financial information for the years ending December 31, 2009-2013 has been excerpted from the full Comprehensive Annual Financial Reports of the Village. The accounting policies of the village conform to GAAP and are disclosed in the audited financial statements. A summary of some of the policies are: All Governmental Funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets; expenditures are recognized when the related fund liability is incurred. All Proprietary Funds and Pension Trust Funds are accounted for using the accrual basis of accounting. This table excludes the Village's Expendable Trust Funds and Agency Funds. The Village's Comprehensive Annual Financial Report for the year ended December 31, 2013 included an unqualified "Independent Auditor's Report". Similar unqualified opinions were included in the Village's Comprehensive Annual Financial Reports for the years ending December 31, 2009-2012. The "Independent Auditor's Report" included in the latest audit states, in part: "In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discreetly presented component unit each major fund, and the aggregate remaining fund information of the Village of Mount Prospect Illinois, as of December 31, 2013, and the respective changes in financial position and cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of America." 2. The Village's property tax revenue recognition policy conforms to the provisions of "NCGA Interpretation 3, Revenue Recognition Property Taxes." The current net tax levy receivable is recognized in the balance sheet along with a corresponding amount of deferred revenue. In addition, the debt service payments and liabilities related to the current net tax levy are not reflected in the Debt Service Funds; the un -matured principal is reflected in the General Long -Term Debt Account Group. 3. Includes the Capital Improvement Fund, which accounts for the resources used to provide for mid-sized capital projects. Financing is provided by one-quarter cent home rule sales tax, developer contributions, transfers from other funds, interest income, and bond proceeds. 4. Fund balances shown for the Enterprise Funds are total fund equity, including contributed capital and retained earnings, and the column "Revenue Over Expenditures" represents the change in that amount. 5. The Village created a Risk Management Fund in 1984 to account for the servicing and payment of claims for liability, property, casualty coverage and Workers' Compensation. Financing is provided by charges to the various Village funds. The Village created a Vehicle Replacement Fund in fiscal year 1991 to account for the acquisition and depreciation of Village vehicles. Financing is provided by charges to the General, Water and Sewer, and Parking Funds. The Village created a Vehicle Maintenance Fund in 1996 to account for maintenance and repair of all Village vehicles except Fire Department vehicles. In 1997, the Village created a Computer Replacement Fund to account for the acquisition and depreciation of Village computer hardware. 6. Excludes agency funds. 217 CAPITAL ASSETS (Note) (December 31, 2013) Note: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000, except for infrastructure for which the cost is $50,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 218 Governmental Business Type Actmttes Actl\A ies Capital Assets Not Being Depreciated Capital Assets Not Being Depreciated Land $ 10,291,446 Land $ 17,551,172 Construction in Progress $ 601.934 Construction in Progress $ _ 231,018 Total Assets Not Being Depreciated $ 10,893,380 Total Assets Not Being Depreciated $ 17,782,190 Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings $ 38,009,332 Buildings and Impro\,ements $ 4,694,456 Improvements Othern Than Buildings 384,000 Equipment 3,646,309 Infrastructure and All Other _$_140, 101,753,416 Infrastructure 18.692,491 Total Capital Assets Being Depreciated 748 Total Capital Assets Being Depreciated $ 27,233,256 Less Accumulated Deprteciation $ 77.227,424 Less Accumulated Deprteciation $ 18,663.157 Total Capital Assets Being Depreciated, Net $ 62,919,324 Total Capital Assets Being Depreciated, Net $ 8,570,099 Net Assets $ 73,812,704 Net Assets $ 26,352,289 Note: Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, storm sewers, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $20,000, except for infrastructure for which the cost is $50,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 218 VILLAGE OF MOUNT PROSPECT, ILLINOIS MANAGEMENT LETTER FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013 Lauterbach & Amen, LLP CERTIFIED PUBLIC ACCOUNTANTS May 12, 2014 The Honorable Village President Members of the Board of Trustees Village of Mount Prospect, Illinois 27W457 WARRENVILLE RD. • 1hARRENVILLE, ILLINOIS 60555 PHONE 630.393.1483 • FAX 630.393.2516 www.lauterbachamen.com In planning and performing our audit of the financial statements of the Village of Mount Prospect, Illinois, for the year ended December 31, 2013, 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 Finance Committee, Board of Trustees, management, and others within 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 CURRENT RECOMMENDATIONS 1. GASB STATEMENT NO. 67 FINANCIAL REPORTING FOR PENSION PLANS AND GASB STATEMENT NO. 68 ACCOUNTING AND FINANCIAL REPORTING FOR PENSIONS Comment In June 2012, the Governmental Accounting Standards Board (GASB) issued Statement No. 67, Financial Reporting for Pension Plans, which applies to individual pension plans issuing their own audited financial statements, and Statement No. 68, Accounting and Financial Reporting for Pensions, which applies to the state and local government employers that sponsor pension plans. The Statements apply to the reporting of the Illinois Municipal Retirement Fund (IMRF), Police Pension Fund and Firefighters' Pension Fund for the Village. The Statements establish standards for measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures related to the pension plans. The Statements specifically identify the methods and assumptions that are to be used in calculating and disclosing these pension -related accounts in the financial statements and also provide for additional note disclosures and required supplementary information. The Statements are intended to improve information provided by state and local government employers regarding financial support to their pension plans, and ultimately requires that the total net pension liabilities of the pension plans be recorded on the face of the financial statements of the sponsoring government. GASB Statement No. 67 is applicable to the separately issued financial statements of the pension plan(s) for the year ended December 31, 2014. GASB Statement No. 68 is applicable to the Village's financial statements for the year ended December 31, 2015. Recommendation We recommend that the Village reach out to the private pension actuary engaged to provide the pension fund actuarial calculations (IMRF will automatically be providing the necessary information to all member agencies) in order to confirm the timeline for implementation and to review requested materials that will be required in order to implement the provisions and requirements of the new Statements. Lauterbach & Amen, LLP will also work directly with the Village to assist in the implementation process, including assistance in determining the implementation timeline with the Village and private actuary, providing all framework for the financial statements in order to complete the implementation, and assisting in answering any questions or concerns the Village or pension fund(s) might have related to the implementation process or requirements. PRIOR RECOMMENDATIONS L GASB STATEMENT NO. 61 — THE FINANCIAL REPORTING ENTITY: OMNIBUS — AN AMENDMENT OF GASB STATEMENTS NO. 14 AN 1) NO 34 Comment In November 2010, the GASB issued Statements No. 61: The Financial Reporting Entity: Omnibus — an amendment of GASB Statements No. 14 and No. 34. The objective of Statement No. 61 is to improve financial reporting for a governmental financial reporting entity. Specifically, it modifies existing requirements for the assessment of potential component units in determining what should be included in the financial reporting entity, including financial statement display and disclosure requirements. Furthermore, Statement No. 61 identifies and clarifies the criterion for discrete presentation of component units as well as the criterion for blending (reporting as a fund of the primary government). The effective date for the Village is for the December 31, 2013 fiscal year. Recommendation We recommended that Village review with us through the next audit process any potential related entities, joint ventures, component units, etc. to ensure proper reporting under GASB Statement No. 61. Status This comment has been implemented and will not be repeated in the future. 9 PRIOR RECOMMENDATIONS - Continued FUNDS NOT IN COMPLIANCE WITH FUND BALANCE POLICY Comment Previously and during our current year-end audit procedures, we noted funds with fund balances that were not in compliance with the Board approved fund balance policy. Business District Fund Minimum Operating Expenditures X's 10% per policy Parking System Revenue Minimum Operating Expenditures X's 20% per policy For the Year Ended December 31, 2013: Per 2014 Fund Amount Not Budget Balance per In $ 923,100 10% $ 92,310 $ 83 $ (92,227) Cash and Per 2014 Investments Amount Not Budget per CAFR In Compliance $ 250,032 20% $ 50,006 $ - $ (50,006) PRIOR RECOMMENDATIONS — Continued 2. FUNDS NOT IN COMPLIANCE WITH FUND BALANCE POLICY — Continued Comment — Continued For the Year Ended December 31, 2012: Street Improvement Construction Minimum 5 year average for capital exp X's 25% per policy Parking System Revenue Minimum Operating Expenditures X's 20% per policy Fund Amount Not Per 2013 Balance per In Budget CAFR Compliance $ 1,813,514 $ 25% $ 453,379 $ 334,442 $ (118,937) Per 2013 Fund Amount Not Budget Balance per In $ 295,252 20% $ 59,050 $ - $ (59,050) Recommendation We recommended the Village investigate the above balances and adopt future budgets to address these funds that are currently not in compliance with the minimum thresholds outlined in the Village's fund balance and cash/investments policy. Status We repeat this comment for the Business District and Parking System Revenue Funds. 3 PRIOR RECOMMENDATIONS — Continued FUNDS WITH DEFICIT FUND BALANCES Comment Previously and during our current year-end procedures, we noted the following fund with deficit fund balance. See the following December 31, 2013 balances compared to the December 31, 2012 balances: Fund 12/31/13 12/31/12 Parking System Revenue $ (202,166) $ (232,626) Recommendation We recommended the Village investigate the cause of the deficit and adopt appropriate future funding measures for the funds identified above. Status This comment has not been implemented and will be repeated in the future. 4. FUNDS OVER BUDGET C nmment Previously, we noted the following fund had an excess of actual expenditures over budget for the previous fiscal year: Fund Debt Service Recommendation Excess $ 16,749 We recommended the Village review the above fund to determine appropriate future budgeting and the potential need to make supplemental budget amendments for unforeseen transactions. Status This comment has been implemented and will not be repeated in the future. Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: FINANCE DIRECTOR DATE: OCTOBER 13, 2014 SUBJECT: PROPOSALS FOR AUDITING SERVICES PURPOSE: Present to the Village Board a recommendation to accept a proposal for auditing services for the five-year period beginning 2014-2018. BACKGROUND: The Village last sent out a Request for Proposal (RFP) in the Fall of 2009. At that time the Village Board accepted the proposal from Lauterbach & Amen to perform the annual audit and prepare the Comprehensive Annual Financial Report (CAFR). The original agreement was for five years (2009- 2013). The five-year service agreement was completed with the December 31, 2013 audit. DISCUSSION: On August 1, 2014, the Audit Committee directed the mailing of an RFP for Auditing Services to six regional and national accounting firms that specialize in governmental auditing. The firms were: Baker Tilly, Crowe Horwath, McGladrey, Miller Cooper, Sikich Group and Wolf & Company. The and experience in municipal and governmental auditing, expertise with Governmental Accounting Standards Board pronouncements, and experience in ensuring that the CAFR conform to the standards required by the Government Finance Officers Association. The scope of services to be performed, as outlined in the RFP, include auditing the financial statements of the Village as well as performing the Single Audit on federal assistance and the TIF audit. ns of In addition to the basic required auditing services, we asked each audit firm to present a fee quotation to perform certain optional services. These services include typing and preparing the comprehensive annual financial report, preparing the Comptrollers Annual Report, and preparing the Illinois Department of Insurance Reports for the Police an The RFP asked firms to provide a fee quotation for auditing services for the fiscal years ending December 31, 2014 through 2018. Multi-year proposals are usually requested due to the fact an audit firm makes a substantial investment of time during the first year of an audit and the fee is usually more reasonable if the first-year costs can be amortized over a multi-year period. Audit Proposal Recommendation October 13, 2014 Page 2 Of the six R distributed, five were received. Only McGladrey declined to submit a proposal. Upon receipt of the proposals, each was reviewed to ensure they were able to meet the requirements of the engagement as outlined in the specifications. In consultation with the Audit Committee Chair, three firms were selected to be interviewed. The three firms were Baker Tilly Miller Cooper and Sikich Group. Interview questions were prepared and an interview team was assembled consisting of the Audit Committee, Finance Director and Deputy Finance Director. Included with this memo is the recommendation from the interview team along with the agenda and questions used for the interviews. Also included is a summary of the fee quotations as submitted by each of the five audit firms. It is recommended that the Village Board accept the proposal from Sikich Group based on their municipal experience and experience with other units of government, their leadership in addressing accounting standards pronouncements, the firms available resources in support of the financial audit and staffing/time in support of the audit. The first year cost of the audit (excluding the Library) is $46,200. While the fees quoted by Sikich were not the lowest, the committee feels that they best meet the audit needs of the Village into the future. RECOMMENDATION: It is recommended the Village Board accept the proposal from Sikich Group for auditing services for the fiscal years ending December 31, 2014 through 2018. David O. Erb Finance Director DOE/ H:\\ACCT\\AUDIT\\2014 Auditor RFP\\Board Memo - 2014 Auditor Recommendation.doc Recommendation of External Auditors for Village of Mount Prospect September 23, 2014 .ğĭƉŭƩƚǒƓķʹ On August 1, 2014, the Finance Department, at the direction of the Audit Committee, sent out a Request for Proposal (RFP) for audit services to six regional and national firms specializing in governmental accounting. The list of firms included Baker Tilly, Crowe Horwath, McGladrey, Miller Cooper, Sikich Group and Wolf & Company. The audit firms were asked to make proposals for a five-year period for fiscal years ending December 31, 2014 December 31, 2018. All the firms responded with a proposal except McGladrey. On September 16, Tom Munz, Audit Committee Chair, Vince Grochocinski, Finance Commission Chair, David Erb, Finance Director and Lynn Jarog, Deputy Finance Director met to screen the five applicants and select three firms to interview as best qualified. The three firms selected were Baker Tilly, Miller Cooper and Sikich Group. Reference calls were placed to provide additional background on the finalists. LƓƷĻƩǝźĻǞ tƩƚĭĻƭƭʹ rd Interviews were scheduled for September 23. At the interview, each firm was asked to provide an overview of their firm and answer a series of questions related to their qualifications and the audit process. The interview team consisted of the Audit Committee, Village Finance Director and Deputy Finance Director. Attached is a copy of the agenda and questions asked during the interview process. The results of the interview coupled with their response to the RFP were the basis for the recommendation of a firm to perform audit services for the Village. Following the audit firm interviews, the Audit Committee and staff met to discuss responses provided during the interview to reach a consensus as to the firm to be recommended for Village auditor. wĻĭƚƒƒĻƓķğƷźƚƓʹ Based on the interviews, the written proposals and the information received from reference calls, the auditor interview team is recommending the firm Sikich Group of Naperville, Illinois be selected to provide audit service for the Village of Mount Prospect. Several factors lead to this recommendation: Experience with other municipalities large pool of clients Leadership in addressing accounting standards pronouncements Organization resources available to support areas outside audit (technology, HR) Appropriateness in number of hours dedicated to engagement along with strong support from partner and senior level staff Audit Firm Search Interview Agenda and Questions September 23, 2014 Agenda for meeting: I. Introductions/Opening Remarks (Village) 5 min III. Firm Overview (Audit Firm) 5 min IV. Evaluation Questions (Village/Firm 35 min V. Closing Comments (Audit Firm) 5 min Questions: 1. Please provide overview of the staff that would be assigned to the audits. 2. Give rough breakdown of how you would spend the hours assigned to the audit. Planning meetings with village staff On-site audit fieldwork Statement preparation Formal presentation before audit committee/village board 3. Explain how you approach the first year of the audit and transition from the work done by the prior auditor. 4. How would you differentiate your firm from your competitors? 5. Give examples where through the audit process you discovered deficiencies in the internal control and were able to provide suggestions for improvement. 6. The proposal included the concept of performing specific more in depth audit/control reviews. How do you see performing this type of work? 7. Describe some other value added services your firm could provide the Village that might distinguish your firm from another? H:\\ACCT\\AUDIT\\2014 Auditor RFP\\Auditor Interview Questions 9-23-2014.doc Wolf & Co.188,500004,00024,500217,00003,00011,00011,00025,000242,00030,000247,000450272,000 162,1000010,30018,500190,90025,3006,90020,60020,60073,400264,30028,000244,200450292,300 Sikich Miller Cooper 000400 184,8505,25020,500210,6005,45013,00013,00031,450242,05020,500231,100262,550 246,8003,0003,0006,00023,500282,30032,0005,00013,50013,50064,000346,30042,300356,600640388,600 Crowe Horwath Baker Tilly 00502 154,1705,38015,200174,75017,9804,80010,92510,92544,630219,38042,470235,200261,850 (a)(a)(a) Estimated Number of Hours to Complete 5-Year Fee for Necessary Services (a) RFP for Auditing Services - 2014-2018 Village of Mount Prospect, Illinois Total Required Services Total Optional Services Comptrollers Report PreparationIDOI Report Preparation - Police IDOI Report Preparation - Fire Total Fees - Village Single Audit Report Management Letter Required Services Optional Services CAFR Preparation August 29, 2014 SAS 61 Letter CAFR Opinion Library Audit TIF Opinion