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Village CAFR for year ended December 31, 2015 VILLAGE OF DEERFIELD, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2015 Prepared by Finance Department Eric L. Burk Director of Finance/Treasurer VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION Principal Officials ....................................................................................................... i Organizational Chart ................................................................................................... ii Certificate of Achievement for Excellence in Financial Reporting ............................ iii Director of Finance’s Letter of Transmittal ................................................................ iv-vii FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT .................................................................. 1-2 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management’s Discussion and Analysis ..................................................................... MD&A 1-7 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position .................................................................................. 3 Statement of Activities ...................................................................................... 4-5 Fund Financial Statements Governmental Funds Balance Sheet ............................................................................................... 6-7 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position .................. 8 Statement of Revenues, Expenditures and Changes in Fund Balances ....... 9-10 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities ..................................................... 11 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Position ............................................................................. 12-13 Statement of Revenues, Expenses and Changes in Net Position ................. 14 Statement of Cash Flows .............................................................................. 15-16 Fiduciary Funds Statement of Fiduciary Net Position ............................................................ 17 Statement of Changes in Fiduciary Net Position ......................................... 18 Notes to Financial Statements ........................................................................... 19-58 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund ....................................................................... 59 Schedule of Funding Progress and Employer Contributions Other Postemployment Benefit Plan ............................................................ 60 Notes to Required Supplementary Information ................................................ 61 Schedule of Employer Contributions Illinois Municipal Retirement Fund ............................................................. 62 Police Pension Fund ..................................................................................... 63 Schedule of the Village’s Proportionate Share of the Net Pension Liability Illinois Municipal Retirement Fund ................................................................ 64 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios Police Pension Fund ....................................................................................... 65 Schedule of Investment Returns Police Pension Fund ....................................................................................... 66 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS Schedule of Revenues - Budget and Actual - General Fund ................................. 67-68 Schedule of Expenditures - Budget and Actual - General Fund ............................ 69-71 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Debt Service Fund ........................................................................................ 72 Infrastructure Replacement Fund ................................................................. 73 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ................................................................................. 74 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................. 75 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund .................................................................................... 76 Enhanced 911 Fund ...................................................................................... 77 2011B Sinking Fund…. ................................................................................ 78 MAJOR ENTERPRISE FUNDS Water Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 79 Schedule of Operating Expenses - Budget and Actual ................................. 80 Schedule of Capital Assets and Depreciation ............................................... 81 Sewerage Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 82 Schedule of Operating Expenses - Budget and Actual ................................. 83 Schedule of Capital Assets and Depreciation ............................................... 84 Refuse Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 85 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR ENTERPRISE FUNDS Commuter Parking Lot Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 86 Schedule of Operating Expenses - Budget and Actual ................................. 87 Schedule of Capital Assets and Depreciation ............................................... 88 INTERNAL SERVICE FUNDS Combining Statement of Net Position ............................................................... 89 Combining Statement of Revenues, Expenses and Changes in Net Position ..................................................................................................... 90 Combining Statement of Cash Flows ................................................................ 91 Garage Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 92 Schedule of Operating Expenses - Budget and Actual ................................. 93 Vehicle and Equipment Replacement Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 94 FIDUCIARY FUNDS Schedule of Changes in Plan Net Position- Budget and Actual - Police Pension Fund ........................................................................................ 95 Combining Statement of Changes in Assets and Liabilities - Agency Funds .................................................................................................. 96 SUPPLEMENTAL DATA Long-Term Debt Requirements General Obligation Bond Series of 2008 .......................................................... 97 General Obligation Bond Series of 2010A ....................................................... 98 General Obligation Bond Series of 2011A ....................................................... 99 General Obligation Bond Series of 2011B ........................................................ 100 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) SUPPLEMENTAL DATA (Continued) Long-Term Debt Requirements (Continued) General Obligation Bond Series of 2012 .......................................................... 101 General Obligation Bond Series of 2013 .......................................................... 102 General Obligation Bond Series of 2015 .......................................................... 103 STATISTICAL SECTION Financial Trends Net Position by Component ................................................................................... 104-105 Change in Net Position .......................................................................................... 106-109 Fund Balances of Governmental Funds ................................................................. 110-111 Changes in Fund Balances of Governmental Funds .............................................. 112-113 Revenue Capacity Sales Tax by Category ........................................................................................... 114 Direct and Overlapping Sales Tax Rates ............................................................... 115 Debt Capacity Ratios of Outstanding Debt by Type ...................................................................... 116 Ratios of General Bonded Debt Outstanding ......................................................... 117 Direct and Overlapping Bonded Debt - Governmental Activities ......................... 118 Legal Debt Margin Information ............................................................................. 119 Demographic and Economic Information Demographic and Economic Information .............................................................. 120 Principal Employers ............................................................................................... 121 Operating Information Full-Time Equivalent Employees .......................................................................... 122 Operating Indicators ............................................................................................... 123 Capital Asset Statistics ........................................................................................... 124 Continuing Disclosures ............................................................................................... 125-130 - i - VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL OFFICIALS December 31, 2015 LEGISLATIVE VILLAGE BOARD OF TRUSTEES Harriet E. Rosenthal, Mayor Daniel C. Shapiro Thomas L. Jester Barbara J. Struthers William S. Seiden Robert D. Nadler Alan L. Farkas Kent Street, Clerk ADMINISTRATIVE Kent Street, Village Manager FINANCE DEPARTMENT Eric L. Burk Director of Finance/Treasurer VillageofDeerfield,IllinoisOrganizationChart Village Residents Village Board Boardsand Commissions Village Manager Assistanttothe VillageManager PoliceDepartment Patrol Investigations& Youth Communications Records Finance Department Accounting Budgeting Personnel& Payroll UtilityBilling& CustomerService Risk Managment Community Development Department Permits, InspectionsPlan Review Planning CodeEnforcement Zoning& Appearance Review PublicWorks& Engineering Engineering Inspection& Review WaterSupply Sewer Maintenance& SewerTreatment Vehicle Maintenance Street Maintenance Village Attorney - ii - - iii - - v - The financial reporting entity of the Village of Deerfield is comprised of all funds of the primary government (i.e., the Village of Deerfield as legally defined) and its pension trust fund: the Deerfield Police Pension Fund. This fund was determined to be a pension trust fund due to its fiduciary and fiscal relationship with the Village as its sole purpose is to provide retirement benefits to the Village's sworn police officers. No other legally separate entity qualifies as a component unit of the Village. Accounting System and Budgetary Control The accounts of the Village are organized on the basis of funds, each of which is considered a separate and distinct accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures/expenses. Revenues are allocated to and accounted for in individual funds based upon the purpose for which they are to be expended and the means by which spending activities are controlled. The accounting records for general governmental operations are maintained on the modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded when materials or services are received and the liability is incurred. Accounting records for the Village's enterprise funds, internal service funds, agency funds and pension trust fund are maintained on the accrual basis of accounting. Management of the Village is responsible for establishing and maintaining a system of internal accounting controls. These controls are designed to assure that the assets of the Village are safeguarded against any material loss, theft or misuse. These controls assure that the financial statements are in conformity with generally accepted accounting principles. Internal accounting controls are designed to provide reasonable, but not absolute, assurance that control objectives will be met. The concept of reasonable assurance recognizes that (1) the cost of control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits require estimates and judgment by Management. The annual budget serves as the foundation for the Village’s financial planning and control. State law requires that a municipality operating under the budget system adopt its annual budget prior to the start of its fiscal year. Through the budget, spending authority is conveyed by expenditure object. The legal level of budgetary control is the department level, or, where no departmental segregation of a fund exists, the fund level. Factors Affecting Financial Condition Economic Outlook. There are several measures of economic health for local governments. Four of the more objective measures or indicators are local employment levels, retail sales activity, family income levels and construction activity. Employment levels in the Village have always surpassed that of Lake and Cook Counties and the State of Illinois as a whole. As of December 31, 2014 the Village's unemployment rate was estimated to be 5.1%, compared to 5.8% for Lake County, 5.8% for the State of Illinois and 5.4% for the United States. Deerfield’s unemployment rate as of December 31, 2015 is not available. Other unemployment rates have remained relatively consistent at 6.2% in Lake County, 6.0% in the State of Illinois and 4.8% in the United States. - vi - The Village base sales tax revenue (which represents 1% of the total eligible sales), net of the Walgreen National sales tax rebate, decreased approximately $280,000 from its recent high in 2014. This decrease is not necessarily indicative of an overall decrease in retail sales activity. Pursuant to a sales tax sharing agreement, 80% of the sales tax the Village receives from Walgreen National is rebated back to them. The Walgreen National activity regularly fluctuates from year to year. 2014 included significantly greater receipts from Walgreen National, which accounted for approximately $100,000 of the decrease above. 2014 also included several one- time receipts relating to use tax on titled/registered items and adjustments. Finally, one major retailer left town at the end of 2014. The 2015 base sales tax revenue, net of the Walgreen’s sales tax rebate is consistent with the 2013 amount. Median family income figures from 2010 Census estimates demonstrate that the average income of Deerfield residents far exceeds county and state averages. According to the Census Bureau, Deerfield's 2010 median family income was $129,187, compared to $68,236 for the State of Illinois and $62,982 for the United States. This ranked Deerfield among the wealthiest communities in the State of Illinois. The median family income has increased approximately 30% from the 2000 Census figure. Commercial and residential construction activity remained consistent compared to the prior year (excluding one-time permits related to two new apartment buildings) in the number of permits issued. Much of the activity was in commercial and residential remodeling. Overall permit revenue totaled $1,004,633 for the year ending December 31, 2015. After removing the prior year one-time revenues, permit revenue remained reasonably consistent with the prior year. Foreclosure rates remained low; with approximately 25 to 35 single family homes out of the Village’s 6,500 in this status during the year. Long-term Financial Planning. The Village utilizes a five year Capital Improvement Program (“CIP”) to address major capital and infrastructure improvements. For a project to be included in the CIP, it must involve the creation or purchase of a tangible asset with an original cost of at least $25,000 and a useful life of more than one year. Projects that are programmed for the first year of the CIP (i.e., the upcoming budget year) are most closely scrutinized in the capital planning process because associated funding must be provided in that budget. Until recently, the Village had primarily followed a “pay-as-you-go” funding strategy for maintenance and replacement of assets and had issued limited debt for new projects. Capital grants are sought at the state and local level for eligible projects. $10 million of additional debt was issued in 2015 as part of the five year CIP. Major Initiatives As part of the regular budget planning process, Village staff has presented the Board with an expanded capital projects program that will require significant expenditures over the next three years. The majority of these projects include road reconstruction along with water and sewer utility work. For 2015 -2017, the major funding sources will be balances in the Infrastructure Fund, property tax, state & federal grants, the home rule tax revenue and a $9.575 million bond issue. Awards and Acknowledgments 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 Deerfield for its comprehensive annual financial report for the fiscal year ended December 31, 2014. 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. - 1 - INDEPENDENT AUDITOR’S REPORT The Honorable President Members of the Board of Trustees Village of Deerfield, Illinois We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the Village of Deerfield, Illinois (the Village), as of and for the year ended December 31, 2015, 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 . 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 o n the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error . In making those risk assessments, the auditor considers internal control relevant to the Village’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statemen ts. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the Village of Deerfield, Illinois, as of December 31, 2015, and the respective changes in financial position, and, where applicable, cash flows, thereof for the year ended in conformity with accounting principles generally accepted in the United States of America. - 1 - - 1 - Change in Accounting Principle As discussed in Note 14, the Village adopted GASB Statement No. 68 , Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27, which established standards for measuring and recognizing liabilities, deferred inflows and outflows of resources and expenses; modified certain disclosures in the notes to financial statements and the required supplementary information. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the other required supplementary information be presented to supplement the basic financial statements . Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to t he 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 li mited 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 basic financial statements that collectively comprise the Village’s basic financial statements as a whole . The introductory section, combining and individual fund financial statements and schedules, supplemental data and statistical section are presented for purposes of additional analysis and are not a required pa rt of the financial statements. The combining and individual fund financial statements and schedules and supplemental data 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 . The 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 underl ying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the 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 statement s and, accordingly, we do not express an opinion or provide any assurance on them. Naperville, Illinois June 16, 2016 - 2 - GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (MD&A) - 1 - VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2015 The Village of Deerfield (the “Village”) management’s discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village’s financial activity, (3) identify changes in the Village’s financial position (its ability to address subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget) and (5) identify individual fund issues or concerns. Since 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 (b eginning on page iv) and the Village’s financial statements (beginning on page 3). Financial Highlights  The Village’s General Fund ended the period with total revenues exceeding total expenditures by $414,635. Combined with other financing uses of $1,177,178, the December 31, 2015 fund balance decreased by $762,543. The 2015 General Fund budget originally showed a decrease of $3,477,837. However, revenues exceeded budget and expenditures were under budget. See Major Governmental Funds section of MD&A for further details.  Sales tax and home rule sales tax decreased $656,714 and $472,348, respectively in the current year. The decrease was due partially to lower than expected economic incentive activity, which also resulted in lower economic incentive expenditures and contributed to the positive variance in the General Fund.  Hotel/motel tax revenue ($2,141,488) exceeded current year expectation of $1,800,000; business travel is the primary reason for stays at Deerfield hotels. All six of the Deerfield h otels remained open during the year.  The Village collected $1,251,001 from the Electric Utility tax and $1,707,745 from the Simplified Telecommunications tax. Electric Utility tax decreased slightly from the prior year , but was consistent with the current year budget. Simplified Telecommunications tax increased significantly from the prior year and exceeded the current year budget.  The Village issued $9,575,000 of general obligation debt in 2015 to partially fund an expanded three year capital plan. The three year capital plan is also funded with planned drawdowns of General Fund Balance by moving a portion of the property tax levy from the General Fund to the Infrastructure Replacement Fund . The Village will evaluate moving the property tax levy out of the General Fund each year in conjunction with the General Fund Balance policy.  The Village implemented GASB Statement number 68 in the current year. The implementation resulted in the addition of $30,320,867 of net pension liability on the Statement o f Net Position, $496,767 in the Water Fund and $993,595 in the Sewer Fund. The implementation also resulted in expense reduction to the Water and Sewer Funds of $95,887 and $191,774, respectively. The reductions were for accounting purposes only as deferred outflows exceeded the change in net pension liability. See note 12 for additional information.  The Village completed its multi-year water meter change out program. The completion was accelerated in the current year to take advantage of the efficiencies related to reading the new meters. $780,000 was budgeted for the accelerated change out program this year. Actual costs were under budget at approximately $475,000.  The Village increased daily parking fee from $1.50 to $2.00 and implemented a pay by phone parking app that allows daily fee parkers the convenience of skipping the pay boxes and paying directly from their mobile devices. Parking lot fees increase $44,349 from the previous year.  The infrastructure maintenance fee of ½ of 1% of the project value, which was implemented in 2012, totaled to $428,546 for the year. This amount exceeded current year expectation, but decreased from the prior year amount due to the maintenance fee paid by a new apartment complex in the prior year.  The Village retired $1,720,000 of general obligation debt during the period. The total balance of debt outstanding as of December 31, 2015 was $61,070,000. $9,575,000 of general obligation debt was issued during 2015. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 2 - USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL REPORT The 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 - 5) are designed to be corporate-like in that all governmental and business-type activities are consolidated into columns that add to a total for the Primary Government. The focus of the Statement of Net Position (the “Unrestricted Net Position”) is designed to be similar to bottom line results for the Village and its governmental and business-type activities. This statement combines and consolidates the governmental fund’s current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities (see pages 4 – 5) 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, public works, engineering and administration. Property tax, shared state sales tax, local hotel/motel tax and shared state income taxes finance the majority of these services. The business-type activities reflect private sector type operations (Water, Sewer, Refuse Disposal and Commuter Parking) where the charges for services typically cover 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. A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Village uses funds to ensure and demonstrate compliance with finance -related laws and regulations. Within the basic financial statements, fund financial statements focus on the Village’s most significant funds rather than the Village as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for non -major funds is provided in the form of combining statements in a later section of this report. The governmental major funds (see pages 6 – 11) are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government -wide financial statements. However, governmental fund statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near - term. The government-wide financial statements provide a long-term view. Comparisons between the individual governmental fund statements and the government -wide statements provide information about financing decisions and the amount invested in maintaining and improving infrastructure. These two perspectives can prov ide insight into the long-term impact of short-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances reconcile the differences between these two perspectives. Budgetary comparison schedules for other funds can be found in a later section of this report. These statements and schedules demonstrate compliance with the Village’s budget. Proprietary or business-type activity funds (see pages 12 - 16) reported in the fund financial statements are for those services for which the Village charges customers a fee. There are two kinds of proprietary funds, enterprise and internal service. Enterprise funds essentially encompass the same functions reported as bu siness-type activities in the government-wide statements. Enterprise fund services are primarily provided to customers external to the Village organization such as those of the water and sewer utilities , commuter parking lots and refuse collection and disposal. Internal service funds provide services and charge fees to customers within the Village organization such as equipment services (repair and maintenance of Village vehicles). Internal services are to both the governmental and business-type activities of the government-wide financial statements. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 3 - Proprietary fund statements provide both long-term and short-term financial information consistent with the focus provided by the government-wide financial statements, but with more detail for major enterprise funds. Individual fund information for internal service funds and non-major enterprise funds is found in combining statements in a later section of this report. Fiduciary funds (see pages 17 - 18) such as the employee pension plans are reported in the fiduciary fund financial statements, but are excluded from the government -wide reporting. Fiduciary fund financial statements report resources that are not available to fund Village programs. Fiduciary fund financial statements report similarly to proprietary funds. The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin on page 18 of this report. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village’s funding of pension benefit obligations to its employees and budget information. Major funds and component units are reported in the basic financial statements as discussed. Combining and individual statements and schedules for non-major and internal service funds are presented in a subsequent section of this report. FINANCIAL ANALYSIS OF THE VILLAGE AS A WHOLE The Village implemented the new financial reporting model (GASB #34) beginning with the fiscal year that ended April 30, 2004. Over time, as year-to-year financial information is accumulated on a consistent basis, changes in net position may be observed and used to discuss the changing financial position of the Village as a whole. STATEMENT OF NET POSITION – Village of Deerfield (in millions of dollars) Governmental Activities Business-type Activities Total – Primary Govt. 2015 2014 2015 2014 2015 2014 Current & Other Assets 54.90 52.21 1.49 2.67 56.39 54.88 Capital Assets 76.62 70.92 60.33 59.50 136.95 130.42 Total Assets 131.52 123.13 61.82 62.17 193.34 185.30 Deferred Outflows of Resources 16.25 - .74 - 16.99 - Total Assets and Deferred Outflows of Resources 147.77 123.13 62.56 - 210.33 - Long-Term Liabilities 63.01 23.57 31.47 30.73 94.48 54.30 Other Liabilities 3.59 4.02 1.39 1.42 4.98 5.44 Total Liabilities 66.60 27.59 32.86 32.15 99.46 59.74 Deferred Inflows of Resources 7.16 5.29 .03 .96 7.19 6.25 Total Liabilities and Deferred Inflows of Resources 73.76 32.88 32.89 33.11 106.65 65.99 Net Position: Net Investment in Capital Assets 55.03 58.84 29.87 28.27 84.89 87.11 Restricted 4.44 4.33 - - 4.44 4.33 Unrestricted 14.54 27.08 -.20 0.79 14.35 27.87 Total Net Position 74.01 90.25 29.67 29.06 103.68 119.31 The Village’s total primary government net position decreased by $15.63 million due largely to the implementation of GASB statement number 68. The Village recorded a Net Pension Liability of $30.32 million related Governmental Activities and $1.49 million related to Business -type Activities. The Village also recorded deferred outflows of resources of $16.17 million and $0.74 million for Governmental and Business -type Activities, respectively. Governmental Activities Capital Assets increased due to infrastructure improvements mainly related to street reconstruction. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 4 - The following table provides a summary of activities causing a change in net position. Changes in Net Position – Village of Deerfield (in millions of dollars) Governmental Activities Business-type Activities Total – Primary Govt. 2015 2014 2015 2014 2015 2014 Revenues: Program Revenues: Charges for Service 4.04 5.42 7.21 7.13 11.25 12.56 Operating Grants 0.45 0.61 - - 0.45 0.61 Capital Grants 0.44 1.31 2.25 0.17 2.69 1.48 General Revenue: Property Taxes 5.38 5.12 0.97 0.93 6.35 6.05 Other Taxes/ Intergovernmental 16.30 16.86 - - 16.30 16.86 Transfers in (out) -1.82 -1.82 1.82 1.82 - - Other 1.54 0.48 0.20 0.26 1.74 0.74 Total Revenue 26.33 27.98 12.45 10.32 38.78 38.30 Expenses: General Government 8.18 7.74 - - 8.18 7.74 Public Safety 11.87 9.19 - - 11.87 9.19 Highways and Streets 8.07 6.29 - - 8.07 6.29 Interest/fiscal charges 1.11 0.69 - - 1.11 0.69 Water - - 4.52 4.34 4.52 4.34 Sewer - - 4.53 4.70 4.53 4.70 Refuse - - 1.43 1.45 1.43 1.45 Parking Lots - - 0.28 0.33 0.28 0.33 Total Expense 29.23 23.91 10.76 10.82 39.99 34.73 Changes in Net Position -2.90 4.07 1.69 -0.50 -1.21 3.57 CURRENT YEAR IMPACTS Governmental Activities Revenue Charges for service decreased as the prior year included significant on e time building permit revenue that related to the construction of two apartment complexes. Similarly, capital grants decreased due to prior year grants for street rehabilitation. The increase in property tax revenue ($0.26 million) is due largely to increased costs of debt service. Expenses The Village’s General Government expenses increased by $5.32 million. The largest increase was to Public Safety and related to the implementation of GASB statement number 68. An additional $2.4 million was included as Public Safety on the Statement of Activities due to the implementation. Highways and Street expenses increased $1.78 million due to increased capital outlay related to the Village’s expanded three year Capital Improvement plan . Interest and fiscal charges increased $0.42 million due to interest payments and fiscal charges in connection with the issuance of debt. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 5 - Business-type Activities Revenues A water rate increase of 2.5% was implemented in January, 2015; water sales totaled $3.70 million, which was less than the budget of $4.18 million. Sewer user charges of $2.72 million were also short of the budget by $0.05 million. The sewer rates were increased 2.5% in January 2015. Refuse charge rates were also increased 2.5%, and revenue of $0.51 million was consistent with the budgeted amount. The daily parking fee was increased from $1.50 to $2.00, resulting in an increase in revenue of $0.04 million. Expenses Water Fund operating expenditures increased $0.17 million from the prior year. Water Sales decreased proportionately with wholesale water purchases; however, the completion of the accelerated meter change out program added significant costs to the fund this year. These additional costs were anticipated and actual costs were under budget, which resulted in an operating loss before depreciation $0.2 million under the original budget. The Village’s wholesale water supplier increased its rates on January 1st in combination with a series of annual increases to fund the reconstruction of their water treatment plant. Sewer Fund operating expenses decreased in comparison to the prior year. The decrease was due largely to the implementation of GASB statement number 68. The Village’s deferred outflows exceeded its change in net pension liability, resulting in a reduction of expenses of $0.19 million for accounting purposes. Refuse and Parking Fund operating expenses decreased slightly in comparison to the period year. Both funds were under their expenditure budget. FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS Governmental Funds At December 31, 2015, the governmental funds reported a combined fund balance of $30.84 million which is a 8.90% increase from the beginning of the year ($28.32 million). The increase is due partially to an increase in the Infrastructure Replacement Fund balance and unspent bond proceeds; both will be used as a part of the expanded three year capital plan. The 2011 B sinking fund also increased as expected. This fund will continue to increase until the Bonds are due on December 1, 2028. Major Governmental Funds The General Fund is the Village’s primary operating fund and the largest source of day -to-day service delivery. The General Fund cash balance of $16.6 million provides for approximately 300 days of anticipated annual expenditures. General Fund revenues exceeded the budget of $17.8 million by $1.1 million. State shared revenues, such as income taxes and use taxes, exceeded budgeted amounts. Sales tax and Home Rule Sales tax did not meet the current year expectations, which also resulted in lower than expected economic incentive payments . Hotel/motel tax, telecommunications tax and building permit revenue all exceeded the current year budget. General Fund expenditures were $1.63 million less than the budget. This was caused primarily by economic incentive payments and the employer contribution to the Police Pension Fund being lower than expected. Vacant positions in multiple departments also contributed to the favorable variance. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 6 - The table below shows the original and revised budget and the actual revenues and expenditures for the General Fund. More information may be found on the schedule of revenues, e xpenditures and changes to fund balance on page 59. General Fund Budget versus Actual Fiscal year ended December 31, 2015 (in millions) Original Amended Budget Budget Actual Revenues Taxes 8.06 8.06 8.62 Intergovernmental 6.65 6.65 6.77 Other 3.10 3.10 3.51 Total 17.81 17.81 18.90 Expenditures & Transfers Expenditures 20.09 20.09 18.48 Other Sources - - - Transfers – Net 1.20 1.20 1.18 Total 21.29 21.29 19.66 Change in Fund Balance -3.48 -3.48 -0.76 The Debt Service Fund is funded through property taxes and Build America Bond & Qualified Energy Conservation Bond rebates. Revenues and expenditures in this fund were consistent with expectation , including Federal Sequestration Cuts to the Build America Bond & Qualified Energy Conservation Bond rebates. The Infrastructure Replacement Fund (IRF) is primarily funded with a home r ule sales tax and grants. The Village also implemented an Infrastructure Maintenance Fee of ½ of 1% of the proje ct value in 2012. Revenue in the IRF exceeded the budget by $0.22 million due partially to greater than expected Infrastructure Maintenance Fees. Expenditures in the IRF totaled $11.96 million. Engineering costs for upcoming projects, street improvements and infrastructure improvements accounted for the bulk of this fund’s expenditures. Major Proprietary Funds The major proprietary (or business-type) funds operated by the Village are the Water, Sewerage and Refuse Funds. The Water Fund operating revenues totaled $3.82 million for the year. Actual operating expenses, excluding depreciation and interest totaled $4.10 million. Overall, net position increased $0.95 million which included depreciation of $0.42 million and contributions of capital assets of $2.00 million. The Sewerage Fund operating expenses were under budget by $0.30 million due primarily to lower than expected personnel costs. The operating revenue exceeded operating expenses excluding depreciation by $0.28 million due to reduced operating costs. Capital expenses for the foreseeable future in this fund have been transferred to the Infrastructure Fund. The Refuse Fund operating expenses exceeded operating revenues by $0.9 million. This Village also uses a portion of its property tax levy to fund refuse collection. Property tax collected for the Refuse Fund totaled $0.97 million and the Refuse Fund’s net position increased $0.07 million during the year to $0.44 million. Internal Service Funds The Village’s combined internal service funds’ net position were $6.5 million as of December 31, 2015, with $4.9 million of the total available for major equipment purchases in the Vehicle and Equipment Replacement Fund. Total revenue approximated total expenses in the Garage Fund resulting in a minimal increase in net position. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 7 - Capital assets Effective May 1, 2004, the Village revised its policy of capitalizing assets to raise the minimum to $25,000 (actual) or more in value. The Village’s investment in capital assets, net of accumul ated depreciation, for governmental activities as of December 31, 2015 was $76.62 million. The Village’s investment in capital assets, net of accumulated depreciation, for business-type activities as of December 31, 2015 was $60.33 million. Major capital asset additions during the current year included streets and vehicles/equipment. Additional information on capital assets is presented in Note 4 to the financial statements. Long-term debt The Village issued $9.57 million of general obligation debt during the year and retired $1.72 million of general obligation debt. At the end of the year, the Village had total bonded debt outstanding of $61.07 million. As a home rule government, under Illinois law, the Village has no legal debt limit. As of December 31, 2015 the total Village debt represented 4.63% of the equalized assessed value. Additional information on long-term debt is presented in Note 6 to the financial statements. Bond Rating The Village’s general obligation bonds are rated Aaa by Moody’s Investor Rating Service. The Aaa rating was reaffirmed with the issuance of the General Obligation Bond Series of 201 5. Pension Funds The Village continues to fully fund its annual required contributions to both the Police Pension Fund and Illinois Municipal Retirement Fund. Increased salaries, an aging employee base, and end of career accumulated leave pay- outs have resulted in large contributions to both funds which cover all full-time employees. Additional information on the funding levels can be found in the Required Supplementary Information section. Economic Factors The national economic slowdown continues to affect the local Village micro-economy. However, slowdowns in local retail sales and hotel/motel occupancies have rebounded from the previous year. The Village is an affluent residential community with a substantial office/commercial presence including a number of headquarters operations in the health services and pharmaceutical areas. Property taxes are a minor part of the overall operating revenues. General Fund property tax revenue was transferred to the Infrastructure Replacement Fund in 2015 to help fund an expanded three year capital improvement plan. Previously, property tax revenue was approximately 10% of General Fund revenue. One of the major retail areas in the Village continues to attempt attracting major tenants. The Village is committed to working with developers and land owners to help them fill vacant retail space. Building permit revenues have again exceeded current period expectations. The Village’s hotel/motel tax has reached a high of $2.1 million and exceeded current year budget by $0.34 million due to more business travel. All of the Village’s six hotels have remained open during the year. The continued strength of the local corporate employment provides a base level of demand for rooms which is the primary market for these hotels. Contacting the Village’s Financial Management This financial report is designed to provide a general overview of the Village’s finan ces, comply with finance-related laws and regulations and demonstrate the Village’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the Village’s Finance Director, 850 Waukegan Road, Deerfield, IL 60015 or access the Village website at www.deerfield.il.us. Governmental Business-Type Activities Activities Total ASSETS Cash and investments 31,831,554$ 1,364,537$ 33,196,091$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 7,075,988 - 7,075,988 Accounts 675,544 1,097,245 1,772,789 Accrued interest 24,545 609 25,154 Electric utility tax 107,513 - 107,513 Due from other governments 13,017,830 - 13,017,830 Note receivable 60,000 - 60,000 Internal balances 1,218,565 (1,218,565) - Inventory 169,413 162,526 331,939 Prepaid expenses 712,793 83,350 796,143 Capital assets not being depreciated 22,395,028 1,962,680 24,357,708 Capital assets (net of accumulated depreciation)54,229,152 58,367,739 112,596,891 Total assets 131,517,925 61,820,121 193,338,046 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 2,044,564 740,273 2,784,837 Pension items - police pension 14,209,193 - 14,209,193 Total deferred outflows of resources 16,253,757 740,273 16,994,030 Total assets and deferred outflows of resources 147,771,682 62,560,394 210,332,076 LIABILITIES Accounts payable 1,930,968 385,570 2,316,538 Accrued payroll 299,076 66,200 365,276 Contracts payable 111,143 - 111,143 Deposits payable - 40,599 40,599 Other payables 19,232 - 19,232 Accrued interest payable 78,525 86,057 164,582 Noncurrent liabilities Due within one year 1,534,720 807,165 2,341,885 Due in more than one year 62,631,262 31,470,311 94,101,573 Total liabilities 66,604,926 32,855,902 99,460,828 DEFERRED INFLOWS OF RESOURCES Deferred property taxes 7,075,988 - 7,075,988 Pension items - IMRF 81,469 29,497 110,966 Total deferred inflows of resources 7,157,457 29,497 7,186,954 Total liabilities and deferred inflows of resources 73,762,383 32,885,399 106,647,782 NET POSITION Net investment in capital assets 55,025,274 29,869,458 84,894,732 Restricted for Maintenance of roadways 388,546 - 388,546 Public safety 1,130,293 - 1,130,293 Debt service 2,925,622 - 2,925,622 Unrestricted 14,539,564 (194,463) 14,345,101 TOTAL NET POSITION 74,009,299$ 29,674,995$ 103,684,294$ VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF NET POSITION December 31, 2015 Primary Government See accompanying notes to financial statements. - 3 - Operating Capital Charges Grants and Grants and FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities General government 8,182,572$ 2,214,956$ -$ -$ Public safety 11,870,633 1,218,489 - 6,215 Highways and streets 8,065,953 606,549 445,554 436,475 Interest 1,113,073 - - - Total governmental activities 29,232,231 4,039,994 445,554 442,690 Business-Type Activities Water 4,517,289 3,701,281 - 2,002,495 Sewerage 4,533,170 2,724,235 - 247,246 Refuse disposal 1,433,697 513,672 - - Commuter parking lot 284,789 270,799 - - Total business-type activities 10,768,945 7,209,987 - 2,249,741 TOTAL PRIMARY GOVERNMENT 40,001,176$ 11,249,981$ 445,554$ 2,692,431$ Program Revenues VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2015 - 4 - Governmental Business-Type Activities Activities Total (5,967,616)$ -$ (5,967,616)$ (10,645,929) - (10,645,929) (6,577,375) - (6,577,375) (1,113,073) - (1,113,073) (24,303,993) - (24,303,993) - 1,186,487 1,186,487 - (1,561,689) (1,561,689) - (920,025) (920,025) - (13,990) (13,990) - (1,309,217) (1,309,217) (24,303,993) (1,309,217) (25,613,210) General Revenues Taxes Property 5,378,578 965,948 6,344,526 Replacement 148,999 - 148,999 Home rule sales 2,941,572 - 2,941,572 Local use 405,359 - 405,359 Hotel/motel 2,141,488 - 2,141,488 Simplified telecommunications 1,707,745 - 1,707,745 Electric utility tax 1,251,001 - 1,251,001 Intergovernmental 7,697,052 - 7,697,052 Investment income 130,060 4,055 134,115 Miscellaneous 676,294 218,479 894,773 Contributions 732,831 - 732,831 Transfers (1,805,840) 1,805,840 - Total 21,405,139 2,994,322 24,399,461 CHANGE IN NET POSITION (2,898,854) 1,685,105 (1,213,749) NET POSITION, JANUARY 1 90,239,313 29,057,168 119,296,481 Change in accounting principal (13,331,160) (1,067,278) (14,398,438) NET POSITION, JANUARY 1 (RESTATED)76,908,153 27,989,890 104,898,043 NET POSITION, DECEMBER 31 74,009,299$ 29,674,995$ 103,684,294$ Primary Government Net (Expense) Revenue and Change in Net Position See accompanying notes to financial statements. - 5 - BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2015 Debt Infrastructure Nonmajor General Service Replacement Governmental Total Cash and investments 16,606,698$ 57,589$ 4,997,748$ 5,308,877$ 26,970,912$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 3,449,753 3,626,235 - - 7,075,988 Accounts 575,891 - 6,200 88,234 670,325 Accrued interest 10,189 432 1,869 9,638 22,128 Electric utility tax receivable 107,513 - - - 107,513 Due from other governments 2,792,086 9,625,000 559,612 41,132 13,017,830 Note receivable 60,000 - - - 60,000 Due from other funds 261,899 - - - 261,899 Advance to other funds 958,565 958,565 Inventory 21,031 - - - 21,031 Prepaid items 707,640 - - - 707,640 TOTAL ASSETS 25,551,265$ 13,309,256$ 5,565,429$ 5,447,881$ 49,873,831$ ASSETS VILLAGE OF DEERFIELD, ILLINOIS - 6 - Debt Infrastructure Nonmajor General Service Replacement Governmental Total LIABILITIES Accounts payable 857,900$ -$ 747,253$ 306,762$ 1,911,915$ Accrued payroll 292,799 - - - 292,799 Contracts payable - - 111,143 - 111,143 Other payables 19,232 - - - 19,232 Total liabilities 1,169,931 - 858,396 306,762 2,335,089 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - Library - 9,625,000 - - 9,625,000 Unavailable property tax revenues 3,449,753 3,626,235 - - 7,075,988 Total deferred inflows of resources 3,449,753 13,251,235 - - 16,700,988 Total liabilities and deferred inflows of resources 4,619,684 13,251,235 858,396 306,762 19,036,077 FUND BALANCES Nonspendable for Note receivable 60,000 - - - 60,000 Inventory 21,031 - - - 21,031 Prepaid items 707,640 - - - 707,640 Advance 958,565 - - - 958,565 Restricted for Maintenance of roadways - - - 388,546 388,546 Public safety - - - 1,130,293 1,130,293 Debt service - - - 2,925,622 2,925,622 Capital projects - - - 696,658 696,658 Unrestricted Assigned for Debt service - 58,021 - - 58,021 Capital projects 1,000,000 - 4,707,033 - 5,707,033 Subsequent year's budget 2,960,593 - - - 2,960,593 Unassigned 15,223,752 - - - 15,223,752 Total fund balances 20,931,581 58,021 4,707,033 5,141,119 30,837,754 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 25,551,265$ 13,309,256$ 5,565,429$ 5,447,881$ 49,873,831$ OF RESOURCES AND FUND BALANCES LIABILITIES, DEFERRED INFLOWS See accompanying notes to financial statements. - 7 - FUND BALANCES OF GOVERNMENTAL FUNDS 30,837,754$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 76,624,180$ Less internal service funds (1,549,463)75,074,717 Premium on bonds issued are capitalized and amortized on the statement of net position (564,519) Discount on bonds issued are deferred and amortized on the statement of net position 56,497 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Bonds payable (30,744,000) Other postemployment benefit payable (935,887) Net pension liability - IMRF (4,116,322) Net pension liability - police pension (26,204,545) Compensated absences (1,657,206) Less internal service funds (17,453)(1,639,753) Intergovernmental receivable from the Library is not unavailable revenue on the statement of net position 9,625,000 Accrued interest on long-term liabilities is shown as a liability on the statement of net position (78,525) Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings are recognized as deferred outflows and inflows of resources on the statement of net postion IMRF 1,963,095 Police Pension 14,209,193 The net position of the internal service funds are included in the governmental activities in the statement of net position 6,526,594 NET POSITION OF GOVERNMENTAL ACTIVITIES 74,009,299$ December 31, 2015 VILLAGE OF DEERFIELD, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION See accompanying notes to financial statements. - 8 - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2015 Debt Infrastructure Nonmajor General Service Replacement Governmental Total REVENUES Taxes 8,623,244$ 2,240,423$ 3,366,599$ 725,000$ 14,955,266$ Licenses and permits 1,464,015 - - - 1,464,015 Intergovernmental 6,772,934 498,784 384,949 445,554 8,102,221 Charges for services 764,459 - 6,200 343,856 1,114,515 Fines and forfeits 292,284 - - - 292,284 Contribution from library - 732,831 - - 732,831 Investment income 66,478 3,383 11,532 48,667 130,060 Miscellaneous 913,024 - 428,786 6,215 1,348,025 Total revenues 18,896,438 3,475,421 4,198,066 1,569,292 28,139,217 EXPENDITURES Current General government 6,967,367 - - 1,299,153 8,266,520 Public safety 8,697,581 - - 438,422 9,136,003 Highways and streets 2,816,855 - - - 2,816,855 Capital outlay - - 11,958,472 - 11,958,472 Debt service Principal retirement - 962,000 - - 962,000 Interest and fiscal charges - 674,859 - - 674,859 Total expenditures 18,481,803 1,636,859 11,958,472 1,737,575 33,814,709 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 414,635 1,838,562 (7,760,406) (168,283) (5,675,492) VILLAGE OF DEERFIELD, ILLINOIS - 9 - Debt Infrastructure Nonmajor General Service Replacement Governmental Total OTHER FINANCING SOURCES (USES) Proceeds from sale of bonds issued at par -$ -$ -$ 9,575,000$ 9,575,000$ Unamortized premium - - - 422,335 422,335 Transfers in 22,822 - 10,191,142 - 10,213,964 Transfers (out)(1,200,000) (1,805,840) - (9,013,964) (12,019,804) Total other financing sources (uses)(1,177,178) (1,805,840) 10,191,142 983,371 8,191,495 NET CHANGE IN FUND BALANCES (762,543) 32,722 2,430,736 815,088 2,516,003 FUND BALANCES, JANUARY 1 21,694,124 25,299 2,276,297 4,326,031 28,321,751 FUND BALANCES, DECEMBER 31 20,931,581$ 58,021$ 4,707,033$ 5,141,119$ 30,837,754$ See accompanying notes to financial statements. - 10 - NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 2,516,003$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures; however, they are capitalized and depreciated in the statement of activities 9,240,330$ Less internal service funds (209,664)9,030,666 The repayment of the principal portion long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities 962,000 The change in interest payable is reported as an expense on the statement of activities (22,519) Bonds issued and contributed to the Library are reported as expenditures in the governmental funds, but not on the statement of activities (510,000) Some expenses in the statement of activities (e.g., depreciation) do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds (2,546,133) Less internal service funds 328,825 (2,217,308) The loss on disposal of capital assets for road reconstruction increases the highways and streets expense on the statement of activities (1,048,313) The increase in compensated absences is reported as an addition to expense on the statement of activities (30,942) The increase in the other postemployment benefit payable is reported as an addition to expense on the statement of activities (73,448) The change in deferred inflows and outflows of resources is reported only on the the statement of of activities IMRF 1,963,095 Police Pension 14,209,193 The change in net pension liabilities are reported only on the statement of of activities IMRF (1,168,601) Police Pension (16,841,527) The amortization of the discount and premium are reported as a reduction to expense on the statement of activities 6,640 The change in net position of certain activities of internal service funds is in governmental funds 323,542 The proceeds of debt are an other financing source on the governmental funds income statement but are not reported on the statement of activities Proceeds from issuance of bonds (9,575,000) Premium on issuance of bonds (422,335) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES (2,898,854)$ For the Year Ended December 31, 2015 VILLAGE OF DEERFIELD, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES EXPENDITURES AND CHANGES IN FUND BALANCES TO THE See accompanying notes to financial statements. - 11 - VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2015 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service CURRENT ASSETS Cash and investments -$ 645,778$ 445,038$ 273,721$ 1,364,537$ 4,860,642$ Receivables Property taxes - - - - - - Accounts - billed 148,631 120,963 10,987 - 280,581 5,219 Accounts - unbilled 416,785 315,822 84,057 - 816,664 - Accrued interest - 253 227 129 609 2,417 Prepaid expenses 34,105 45,392 2,086 1,767 83,350 5,153 Inventory 148,659 13,867 - - 162,526 148,382 Total current assets 748,180 1,142,075 542,395 275,617 2,708,267 5,021,813 CAPITAL ASSETS Nondepreciable 1,877,956 7,224 - 77,500 1,962,680 - Depreciable 21,448,464 45,819,532 - 1,950,830 69,218,826 4,125,686 Accumulated depreciation (4,949,977) (5,001,955) - (899,155) (10,851,087) (2,576,223) Net capital assets 18,376,443 40,824,801 - 1,129,175 60,330,419 1,549,463 Total assets 19,124,623 41,966,876 542,395 1,404,792 63,038,686 6,571,276 DEFERRED OUTLFOWS OF RESOURCES Pension items - IMRF 246,758 493,515 - - 740,273 - Total assets and deferred outflows of resources 19,371,381 42,460,391 542,395 1,404,792 63,778,959 6,571,276 Business-Type Activities - 12 - Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service Business-Type Activities CURRENT LIABILITIES Accounts payable 196,352$ 80,377$ 104,336$ 4,505$ 385,570$ 19,053$ Accrued payroll 18,518 46,880 - 802 66,200 6,277 Accrued interest - 86,057 - - 86,057 - Deposits payable 22,236 18,363 - - 40,599 - Due to other funds 260,000 - - - 260,000 1,899 Bonds payable - 781,000 - - 781,000 - Compensated absences payable 12,336 13,759 - 70 26,165 1,745 Total current liabilities 509,442 1,026,436 104,336 5,377 1,645,591 28,974 LONG-TERM LIABILITIES Advance from other funds 958,565 - - - 958,565 - Compensated absences payable 111,026 123,827 - 631 235,484 15,708 Net pension liability 496,797 993,595 - - 1,490,392 - Other postemployment benefit payable 29,351 35,123 - - 64,474 - Bonds payable - long-term - 29,679,961 - - 29,679,961 - Total long-term liabilities 1,595,739 30,832,506 - 631 32,428,876 15,708 Total liabilities 2,105,181 31,858,942 104,336 6,008 34,074,467 44,682 DEFERRED INFLOWS OF RESOURCES Pension items - IMRF 9,832 19,665 - - 29,497 - Total deferred inflows of resources 9,832 19,665 - - 29,497 - Total liabilities and deferred inflows of resources 2,115,013 31,878,607 104,336 6,008 34,103,964 44,682 NET POSITION Net investment in capital assets 18,376,443 10,363,840 - 1,129,175 29,869,458 1,549,463 Unrestricted (1,120,075) 217,944 438,059 269,609 (194,463) 4,977,131 TOTAL NET POSITION 17,256,368$ 10,581,784$ 438,059$ 1,398,784$ 29,674,995$ 6,526,594$ See accompanying notes to financial statements. - 13 - VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2015 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service OPERATING REVENUES Charges for services 3,701,281$ 2,724,235$ 513,672$ 270,799$ 7,209,987$ 1,031,294$ Miscellaneous 119,858 81,038 17,583 - 218,479 10,485 Total operating revenues 3,821,139 2,805,273 531,255 270,799 7,428,466 1,041,779 OPERATING EXPENSES Administration 472,305 339,816 - - 812,121 - Operations 3,623,999 2,185,219 1,433,697 258,052 7,500,967 347,188 Commodities - - - - - 112,300 Total operating expenses 4,096,304 2,525,035 1,433,697 258,052 8,313,088 459,488 OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION (275,165) 280,238 (902,442) 12,747 (884,622) 582,291 Depreciation and amortization 420,985 973,048 - 26,737 1,420,770 328,825 OPERATING INCOME (LOSS)(696,150) (692,810) (902,442) (13,990) (2,305,392) 253,466 NON-OPERATING REVENUES (EXPENSES) Sale of capital assets - - - - - 54,437 Investment income - 1,608 1,613 834 4,055 15,639 Property taxes - - 965,948 - 965,948 - Interest expense - (1,035,087) - - (1,035,087) - Total non-operating revenues (expenses)- (1,033,479) 967,561 834 (65,084) 70,076 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (696,150) (1,726,289) 65,119 (13,156) (2,370,476) 323,542 CONTRIBUTIONS 2,002,495 247,246 - - 2,249,741 - TRANSFERS Transfers in - 1,805,840 - - 1,805,840 - Total transfers - 1,805,840 - - 1,805,840 - CHANGE IN NET POSITION 1,306,345 326,797 65,119 (13,156) 1,685,105 323,542 NET POSITION, JANUARY 1 16,305,782 10,966,506 372,940 1,411,940 29,057,168 6,203,052 Change in accounting principle (355,759) (711,519) - - (1,067,278) - NET POSITION, JANUARY 1 (RESTATED)15,950,023 10,254,987 372,940 1,411,940 27,989,890 6,203,052 NET POSITION, DECEMBER 31 17,256,368$ 10,581,784$ 438,059$ 1,398,784$ 29,674,995$ 6,526,594$ Business-Type Activities See accompanying notes to financial statements. - 14 - Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 3,717,521$ 2,690,545$ 509,227$ 270,799$ 7,188,092$ -$ Receipts from interfund services - - - - - 1,027,353 Receipts from miscellaneous revenues 119,858 81,038 17,583 - 218,479 10,485 Payments to suppliers (3,171,943) (927,680) (1,300,997) (210,486) (5,611,106) (286,131) Payments to employees (943,317) (1,639,632) (83,069) (37,906) (2,703,924) (211,141) Payments for interfund services (90,889) (146,542) (46,820) (7,590) (291,841) 1,900 Net cash from operating activities (368,770) 57,729 (904,076) 14,817 (1,200,300) 542,466 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund loan 368,770 - - - 368,770 - Interfund transfer - 1,805,840 - - 1,805,840 - Property taxes - - 965,948 - 965,948 - Net cash from noncapital financing activities 368,770 1,805,840 965,948 - 3,140,558 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - - - - - 54,437 Capital assets purchased - - - - - (264,101) Bond principal payments - (758,000) - - (758,000) - Bond interest payments - (1,048,290) - - (1,048,290) - Net cash from capital and related financing activities - (1,806,290) - - (1,806,290) (209,664) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments - 1,489 1,504 788 3,781 14,546 Net cash from investing activities - 1,489 1,504 788 3,781 14,546 NET INCREASE IN CASH AND CASH EQUIVALENTS - 58,768 63,376 15,605 137,749 347,348 CASH AND CASH EQUIVALENTS, JANUARY 1 - 587,010 381,662 258,116 1,226,788 4,513,294 CASH AND CASH EQUIVALENTS, DECEMBER 31 -$ 645,778$ 445,038$ 273,721$ 1,364,537$ 4,860,642$ STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2015 VILLAGE OF DEERFIELD, ILLINOIS Business-Type Activities (This statement is continued on the following page.) - 15 - Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)(696,150)$ (692,810)$ (902,442)$ (13,990)$ (2,305,392)$ 253,466$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation and amortization 420,985 973,048 - 26,737 1,420,770 328,825 (Increase) decrease in Receivables 16,240 (33,690) (4,445) - (21,895) (3,444) Prepaid expenses (3,288) (3,933) (202) (169) (7,592) (497) Inventories 15,592 4,385 - - 19,977 (45,844) Increase (decrease) in Accounts payable (32,330) (34,204) 3,013 2,517 (61,004) 6,537 Deposits payable 1,019 1,060 - - 2,079 - Interfund payables - - - - - 1,900 Accrued payroll (8,154) 1,685 - 108 (6,361) (1,752) Other postemployment benefit payable 2,303 2,757 - - 5,060 - Compensated absences payable 10,901 31,205 - (386) 41,720 3,275 Pension items (95,888) (191,774) - - (287,662) - NET CASH FROM OPERATING ACTIVITIES (368,770)$ 57,729$ (904,076)$ 14,817$ (1,200,300)$ 542,466$ NONCASH TRANSACTIONS Contributions of capital assets by other funds 2,002,495$ 247,246$ -$ -$ 2,249,741$ -$ TOTAL NONCASH TRANSACTIONS 2,002,495$ 247,246$ -$ -$ 2,249,741$ -$ Business-Type Activities VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS For the Year Ended December 31, 2015 See accompanying notes to financial statements. - 16 - Pension Agency Trust Fund Funds ASSETS Cash and cash equivalents 1,039,702$ 2,925,021$ Investments U.S. Treasury obligations 2,948,975 - U.S. agencies securities 4,286 - Corporate bonds 9,885,696 - Mutual funds 25,830,670 - Municipal bonds 674,107 - Receivables Accrued interest 145,221 23 Total assets 40,528,657 2,925,044$ LIABILITIES Accounts payable 16,295 5,366$ Deposits payable - 2,860,996 Other payables - 58,682 Total liabilities 16,295 2,925,044$ NET POSITION HELD IN TRUST FOR PENSION BENEFITS 40,512,362$ VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2015 See accompanying notes to financial statements. - 17 - ADDITIONS Contributions - employer 871,305$ Contributions - employee 517,457 Total contributions 1,388,762 Investment income Net depreciation in fair value of investments (1,074,312) Interest and dividends earned on investments 1,099,476 Total investment income 25,164 Less investment expense (29,688) Net investment income (4,524) Total additions 1,384,238 DEDUCTIONS Benefits and refunds Pension payments 2,402,563 Separation refunds 40,452 Administrative 23,217 Total deductions 2,466,232 NET DECREASE (1,081,994) NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 41,594,356 December 31 40,512,362$ VILLAGE OF DEERFIELD, ILLINOIS PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Year Ended December 31, 2015 See accompanying notes to financial statements. - 18 - - 18 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2015 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Deerfield, Illinois (the Village) have been prepared in conformity with accountin g principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Village’s accounting policies are described below. a. Reporting Entity The Village was incorporated in 1903. The Village is a municipal corporation governed by an elected seven-member board. As required by GAAP, these financial statements present the Village (the primary government) and its component units. The Village’s financial statements include: Pension Trust Fund Police Pension Employees Retirement System The Village’s police employees participate in the Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village’s Mayor, one elected pension beneficiary and two elected police employees constitute the pension board. The Village and PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations . The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels . Although it possesses many of the characteristics of a legally separate government, PPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village ’s police employees and because of the fiduciary nature of such activities . PPERS is reported as a pension trust fund. Based on the criteria of GASB Statement No 61, The Financial Reporting Entity: Omnibus - an amendment of GASB Statements No. 14 and No. 34, there are no component units for which the Village is considered to be financially accountable. - 19 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 19 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) Joint Ventures Solid Waste Agency of Lake County Solid Waste Agency of Lake County (SWALCO) is a municipal corporation empowered to plan, finance, construct and operate a solid waste disposal system to serve its member municipalities. Management consists of a Board of Directors comprised of one appointed representative from each member . The Village does not exercise any control over the activities of SWALCO beyond its representation on the Board of Directors. SWALCO is reported as a proprietary joint venture. b. Fund Accounting The Village uses funds to report on its financial position, changes in its financial position and cash flows. Fund accounting is designed to demonstrate lega l compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a s elf-balancing set of accounts. A minimum number of funds are maintained consi stent with legal and managerial requirements. Funds are classified into the following categories: governmental, proprietary and fiduciary. Governmental funds are used to account for all or most of the Village ’s general activities, including the collection and disbursement of restricted or committed monies (special revenue funds), the funds committed, restricted or assigned for the acquisition or construction of capital assets (capital projects funds) and the funds committed, restricted or assigned for the servicing of general long-term debt (debt service funds). The General Fund is used to account for all activities of the general government not accounted for in some other fund. Proprietary funds are used to account for activities similar to those fou nd in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencie s primarily within the Village (internal service funds). Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the Village . When these assets are held under the terms of a formal trust agreement, a pension trust fund may be used. The Village has a police pension fund . Agency funds are used to account for funds that the Village holds on behalf of others as their agent . - 20 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 20 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non fiduciary activities of the Village. The effect of material interfund activity (except for activities reported in internal service funds) has been eliminated from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function, segment or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment . Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and (2) grants and standard revenues that are restricted to meeting the operational or capital requirements of a particular function or segment . Taxes and other items not properly included among program revenues are reported instead as gen eral revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major ind ividual enterprise funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds : The General (Corporate) Fund is the Village’s primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund. The Debt Service Fund was established to accumulate restricted resources for the payment of general long-term debt. The Infrastructure Replacement Fund was establis hed for the purpose of maintaining, repairing and renovating the capital assets of the Village. The Village reports the following major proprietary funds: The Water Fund accounts for all activity necessary to provide water to the residents of the Village including administration, operation, maintenance, financing and related debt service. - 21 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 21 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Government-Wide and Fund Financial Statements (Continued) The Sewerage Fund accounts for the provision of sewer service to the residents of the Village. All activity necessary to provide such services is accounted for in this fund including, but not limited to, administration, construction, maintenance and operations of the Sewerage Treatment Plant and related debt service. The Refuse Fund accounts for all revenues and expenses necessary to provide the residents of the Village with refuse service. Additionally, the Village reports the following proprietary funds: The Parking Lot Fund accounts for all activity related to the commuter lot. Internal Service Funds The Garage Fund accounts for all activity necessary to maintain the efficient and safe operation of the Village’s vehicles and equipment and is funded by various departments according to services rendered. The Vehicle and Equipment Replacement Fund accounts for purchases of vehicles and equipment and is funded by various departments according to services rendered. These funds are reported as governmental activities on the government-wide financial statements. The Village reports a pension trust fund as a Fiduciary Fund to account for the Police Pension Fund. The Village also reports Agency Funds to account for street deposits and water meter deposits (Deposit Fund), DARE Funds and radio dispatching funds (East Shore Radio Network Fund) that the Village holds on behalf of others as their agent. d. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements (Agency Funds have no measurement focus). Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred . Property taxes are recognized as revenues in the year for which they are levied (i.e., intended to finance). Grants and similar items - 22 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 22 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues/expenses include all revenues /expenses directly related to providing the day-to-day enterprise fund services. Incidental revenues/expenses, such as property taxes and investment income, are reported as non-operating. Governmental fund financial statements are accounted for using a current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period . The Village recognizes property taxes when they become both measurable and available in the period intended to finance, generally within 60 days of year end. Sales taxes, telecommunications taxes and use taxes use a 90 -day period and income taxes use a 120-day period. Expenditures are recorded when the related fund liability is incurred . Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. Those revenues susceptible to accrual are property taxes, franchise taxes, license s, interest revenue and charges for services. Sales tax, telecommunication tax, local use tax and motor fuel tax and fines owed to/collected by the state at year end on behalf of the Village also are recognized as revenue. Permit revenues are not susceptible to accrual because generally they are not measurable until re ceived in cash. The Village reports unavailable revenue and unearned revenue on its financial statements. Unavailable revenues arise when a potential revenue does not meet both the measurable and available or earned criteria for recognition in the curre nt period. Unearned revenues arise when resources are received by the Village before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the deferred inflow of resources for unavailable revenue or the liability for unearned revenue is removed from the financial statements and revenue is recognized. e. Cash and Investments Cash and Cash Equivalents For purposes of the statement of cash flows, the Village ’s proprietary funds consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. - 23 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 23 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e. Cash and Investments (Continued) Investments Investments with a maturity of less than one year when purchased and non-negotiable certificates of deposit are stated at cost or amortized cost . Investments with a maturity greater than one year when purchased and all investments of the pension trust funds are stated at fair value . Fair value is based on prices listed on national exchanges as of December 31, 2015 for debt and equity securities. f. Short-Term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “due from other funds” or “due to other funds” on the balance sheet. Short-term interfund loans, if any, are classified as “interfund receivables/payables.” g. Advances to Other Funds Noncurrent portions of long-term interfund loan receivables are reported as advances between funds in the fund financial statements. The advances are offset equally by nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. h. Inventories Inventories are valued at cost, which approximates market, using the first -in/first-out (FIFO) method. The costs of governmental fund inventories are recorded as expenditures when consumed rather than when purchased. i. Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items /expenses and are accounted for on the consumption method. j. Capital Assets Capital assets, which include property, plant, equipment, water and sewer system and infrastructure assets (e.g., roads, bridges 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 a ssets with an initial, individual cost in excess of $25,000 and an estimated useful life in excess of one year. - 24 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 24 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j. Capital Assets (Continued) All purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist . Donated capital assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized . Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. Depreciation of buildings, equipment, water/sewer systems and vehicles is computed using the straight-line method over the following useful lives: Years Buildings and building improvements 20-50 Parking improvements 15-50 Water/sewer system 40-60 Vehicles, machinery and equipment 4-20 Infrastructure 20-50 k. Compensated Absences Vested or accumulated vacation leave, including related Social Security and Medicare, that is owed to retirees or terminated employees is reported as an expenditure and a fund liability of the governmental fund that will pay it in the fund financial statements and the remainder is reported in long-term debt. Vested or accumulated vacation leave and vested sick leave of proprietary funds at both levels and governmental activities at the government-wide level is recorded as an expense and liability as the benefits accrue to employees. l. Long-Term Obligations In the government-wide financial statements and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund financial statements. Bond premiums and discounts, and gains/losses on refundings, are deferred and amortized over the life of the bonds using the bonds outstanding method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount and gains/losses on refundings. - 25 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 25 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) l. Long-Term Obligations (Continued) In the fund financial statements, governmental funds 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 expenditures. m. Fund Equity/Net Position Governmental funds equity is classified as fund balance . Fund balance is further classified as nonspendable, restricted, committed, assigned or unassigned. Nonspendable fund balance is reported for amounts that are either not in spendable form or legally or contractually required to be maintained intact . Restrictions of fund balance are reported for amounts constrained by legal restrictions from outside parties for use for a specific purpose or externally imposed by outside entities. Committed fund balance is constrained by formal actions of the Village Board of Trustees, which is considered the Village’s highest level of decision-making authority. Formal actions include ordinances approved by the Village Board of Trustees. Assigned fund balance represents amounts constrained by the Village’s intent to use them for a specific purpose. The authority to assign fund balance has been delegated to the Finance Director through the approved fund balance policy of the Village. Any residual fund balance of the General Fund and any deficits in other funds, if any, is reported as unassigned. The Village’s flow of funds assumption prescribes that the funds with the highest level of constraint are expended first. If restricted or unrestricted funds are available for spending, the restricted funds are spent first. Additionally, if different levels of unrestricted funds are available for spending the Village considers committed funds to be expended first followed by assigned and then unassigned funds. In the government-wide and proprietary fund financial statements, restricted net position is legally restricted by outside parties for a specific purpose . At December 31, 2015, no net position restrictions were the result of enabling legislation adopted by the Village. Net investment in capital assets represents the Village’s investment in the book value of capital assets, less any outstanding debt that was issued to construct or acquire the capital asset . Unrestricted net position consists of net position that does not meet the definition of restricted or net investment in capital assets. - 26 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 26 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) n. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial po sition will sometimes report a separate section for deferred outflows of resources . This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be reco gnized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources . This separate financial statement element, defer red inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time . The government has two types of item, which arises under a modified accr ual basis of accounting that qualifies for reporting in this category. Accordingly, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and the long-term receivable from the Deerfield Public Library (the Library). These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available . Additionally the pension plans of the Village have both deferred inflows an d outflows. o. Interfund Transactions Interfund services are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to anot her fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except interfund services and reimbursements, are reported as transfers. p. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure o f contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period . Actual results could differ from those estimates. 2. DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds , except the Pension Trust Fund, 2011B Sinking Fund and the Bond Proceeds Fund. Each fund’s portion of this pool is displayed on the financial statements as “cash and investments.” In addition, investments are separately held by several of the Village ’s funds. The deposits and investments of the pension trust fund are held separately from those of other funds. - 27 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 27 - 2. DEPOSITS AND INVESTMENTS (Continued) Permitted Deposits and Investments - Statutes and the Village’s investment policy authorize the Village to make deposits/invest in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States Government or agreements to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services and Illinois Funds. 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 objective of the policy is safety (preservation of capital and protection of investment principal), liquidity and yield. a. Village Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure, the Village’s deposits may not be returned to it . The Village’s investment policy requires pledging of collateral with a fair value of 100% of all bank balances in excess of federal depository insurance with the collateral held by the Village’s agent in the Village’s name. b. Village Investments The following table presents the Village’s investments in and maturities of debt securities as of December 31, 2015: Investment Maturities (in Years) Fair Less than Greater than Value 1 1-5 6-10 10 U.S. agency obligations $ 9,478,162 $ - $ 5,631,304 $ - $ 3,846,858 In accordance with its investment policy, the Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds and maximizing yields for funds not needed within a three-year period. However, the investment policy does not limit the maximum maturity length of investments. Investments may be purchased with maturities to match future projects or liability requirements. In addition, the policy requires the Village to structure the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. - 28 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 28 - 2. DEPOSITS AND INVESTMENTS (Continued) b. Village Investments (Continued) The Village limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by primarily investing in U.S. agency obligations rated AAA by Moody’s ratings. Illinois Funds is rated AAA by Standard and Poor’s, the fair value of which are the same as the value of the pool shares. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Village will not be able to recover the val ue of its investments that are in possession of an outside party. To limit its exposure, the Village’s investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis w ith the underlying investments held by a third party acting as the Village ’s agent separate from where the investment was purchased or by the trust department of the bank where purchased, in the Village’s name. Illinois Funds and IMET are not subject to custodial credit risk. Concentration of credit risk - The Village’s investment policy requires diversification of the portfolio, but does not specify maximum amounts that can be invested in any one investment vehicle, maturity, issuer or class of securities. The Village’s investment policy does not specifically prohibit the use of or the investment in derivatives. 3. RECEIVABLES a. Taxes Property taxes for 2015 attach as an enforceable lien on January 1, 2015 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 the County and issued on or about February 1 for Cook County and May 1 for Lake County and are payable in two installments, on or about March 1 and August 1 for Cook County and June 1 and September 1 for Lake County. The County collects such taxes and remits them periodically. The 2015 tax levy collections are intended to finance 2016 year and are not considered available for current operations and are, therefore, shown as unavailable/deferred revenue. - 29 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 29 - 3. RECEIVABLES (Continued) b. Due from Other Governments The Village issued General Obligation Bonds in 2011 and 2013 on behalf of the Library to finance the Library Improvement Project. These bonds are in the Village’s name and are a liability of the Village . The Library receives property tax collections to pay for the bond principal and interest and then remits the funds to the Village as the principal and interest payments become due. The Village has recorded a receivable, offset by unavailable revenue, for the amount of debt outstanding, less cash on hand, that the Library will be paying to the Village. 4. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2015 was as follows: Beginning Balances Increases Decreases Ending Balances GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 4,659,795 $ 109,791 $ - $ 4,769,586 Land right of way 16,180,188 - - 16,180,188 Construction in progress 1,290,635 489,466 334,847 1,445,254 Total capital assets not being depreciated 22,130,618 599,257 334,847 22,395,028 Capital assets being depreciated Buildings and improvements 12,232,033 - - 12,232,033 Vehicles, machinery and equipment 4,647,925 291,163 180,840 4,758,248 Infrastructure 98,974,880 8,754,406 5,308,303 102,420,983 Total capital assets being depreciated 115,854,838 9,045,569 5,489,143 119,411,264 Less accumulated depreciation for Buildings and improvements 3,874,719 291,342 - 4,166,061 Vehicles, machinery and equipment 2,508,284 392,081 153,777 2,746,588 Infrastructure 60,678,595 1,862,710 4,271,842 58,269,463 Total accumulated depreciation 67,061,598 2,546,133 4,425,619 65,182,112 Total capital assets being depreciated, net 48,793,240 6,499,436 1,063,524 54,229,152 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 70,923,858 $ 7,098,693 $ 1,398,371 $ 76,624,180 - 30 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 30 - 4. CAPITAL ASSETS (Continued) Beginning Balances Increases Decreases Ending Balances BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $ 1,955,456 $ - $ - $ 1,955,456 Construction in Progress - 7,224 - 7,224 Total capital assets not being depreciated 1,955,456 7,224 - 1,962,680 Capital assets being depreciated Buildings and improvements 45,185,189 - - 45,185,189 Parking lot improvements 1,950,830 - - 1,950,830 Vehicles, machinery and equipment 626,490 - - 626,490 Water distribution system 14,849,333 2,002,494- 209,976 16,641,851 Sanitary sewer system 4,585,564 240,022 11,120 4,814,466 Total capital assets being depreciated 67,197,406 2,242,516 221,096 69,218,826 Less accumulated depreciation for Buildings and improvements 4,400,066 963,064 - 5,363,130 Parking lot improvements 872,418 26,737 - 899,155 Vehicles, machinery and equipment 477,590 18,054 - 495,644 Water distribution system 2,417,577 314,476 209,976 2,522,077 Sanitary sewer system 1,483,762 98,439 11,120 1,571,081 Total accumulated depreciation 9,651,413 1,420,770 221,096 10,851,087 Total capital assets being depreciated, net 57,545,993 821,746 - 58,367,739 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $ 59,501,449 $ 828,970 $ - $ 60,330,419 Depreciation expense was charged to functions/programs of the primary government as follows: GOVERNMENTAL ACTIVITIES General government $ 164,067 Public safety 170,226 Highways and streets, including depreciation of general infrastructure assets 2,211,840 DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 2,546,133 5. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions’ injuries to employees; illnesses of employees; and natural disasters. - 31 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 31 - 5. RISK MANAGEMENT (Continued) Intergovernmental Personnel Benefit Cooperative The Village participates in the Intergovernmental Personnel Benefit Cooperative (IPBC). IPBC is a public entity risk pool established by certain units of local government in Illinois to administer some or all of the personnel benefit prog rams (primarily medical, dental and life insurance coverage) offered by these members to their officers and employees and to the officers and employees of certain other governmental, quasi governmental and nonprofit public service entities. The IPBC receives, processes and pays such claims as may come within the benefit program of each member. Management consists of a Board of Directors comprised of one appointed representative from each member . In addition, there are two officers, a Benefit Administrator and a Treasurer. The Village does not exercise any control over the activities of IPBC beyond its representation on the Board of Directors. Municipal Insurance Cooperative Agency The Village participates in the Municipal Insurance Cooperative Agency (MICA). MICA is a public entity risk pool whose members are Illinois municipalities . MICA manages and funds first party property losses, third party liability claims, workers ’ compensation claims and public officials’ liability claims of its members . MICA provides $2,000,000 of coverage after a $1,000 deductible. The Village’s payments to MICA are displayed on the financial statements as expenditures/expenses in appropriate funds. Management consists of a Board of Directors comprised of one appointed representative from each member. In addition, there are three officers, a Risk Manager and a Treasurer. The Village does not exercise any control over activities of MICA beyond its representation on the Board of Directors. MICA functions solely as an administrative agent for each member. High-Level Excess Liability Pool The Village participates in the High-Level Excess Liability Pool (HELP). HELP is a public entity risk pool established by certain municipalities (the Members) in Illinois to provide excess liability coverage ($13,000,000 of coverage after the $2,000,000 coverage provided by MICA). The Village’s payments to HELP are displayed on the financial statements as expenditures/expenses in appropriate funds. HELP was organized on April 1, 1987. The purpose of HELP is to act as a joint self- insurance pool for the purpose of seeking the prevention or lessening of lia bility claims for injuries to persons or property or claims for errors and omissions made against the Members and other parties included within the scope of coverage of HELP. - 32 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 32 - 5. RISK MANAGEMENT (Continued) High-Level Excess Liability Pool (Continued) HELP is governed by a Board of Directors, which consists of one appointed representative from each member municipality. Each director has an equal vote. The officers of HELP are appointed by the Board of Directors. The Board of Directors determines the gen eral policy of HELP; makes all appropriations; approves contracts; adopts resolutions providing for the issuance of debt by HELP; adopts bylaws, rules and regulations; and exercises such powers and performs such duties as may be prescribed in the Agency Ag reement or the by-laws. The Village does not exercise any control over the activities of HELP beyond its representation on the Board of Directors. 6. LONG-TERM DEBT a. General Obligation Bonds The Village issues general obligation bonds for the acq uisition 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 currently outstanding are as follows: Issue Fund Debt Retired By Balances December 31 Additions Reductions Balances December 31 Current Portion General Obligation Bond Series of 2008 ($5,000,000 dated August 1 2008; maturing December 1, 2028; payable in annual installments; interest rates from 3.25% to 4.25%). Debt Service $ 3,870,000 $ - $ 210,000 $ 3,660,000 $ 220,000 General Obligation Bond Series of 2010A ($12,500,000 dated November 3, 2010; maturing December 1, 2030; payable in annual installments; interest rates from 0.80% to 5.50%). Debt Service* Sewer 4,136,000 6,204,000 - - 222,000 333,000 3,914,000 5,871,000 224,000 336,000 General Obligation Bond Series of 2011A ($9,900,000 dated October 17, 2011; maturing December 1, 2031; payable in annual installments; interest rates from 1.00% to 3.25%). Debt Service 8,775,000 - 270,000 8,505,000 280,000 General Obligation Taxable Bond Series of 2011B ($12,500,000 dated October 17, 2011; maturing December 1, 2028; payable in annual installments; interest rates of 4%). Sewer** 12,480,000 - - 12,480,000 - - 33 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 33 - 6. LONG-TERM DEBT (Continued) a. General Obligation Bonds (Continued) Issue Fund Debt Retired By Balances December 31 Additions Reductions Balances December 31 Current Portion General Obligation Bond Series of 2012 ($10,000,000 dated February 21, 2012; maturing December 1, 2031, payable in annual installments; interest rates from 1.25% to 2.75%). Sewer $ 10,000,000 $ - $ - $ 10,000,000 $ - General Obligation Bond Series of 2013 ($9,075,000 dated January 3, 2013; maturing December 1, 2031, payable in annual installments; interest rates from 2.00% to 2.25%). Debt Service Sewer 5,350,000 2,400,000 - - 260,000 425,000 5,090,000 1,975,000 265,000 445,000 General Obligation Bond Series of 2015 ($9,575,000 dated May 6, 2015; maturing December 1, 2034; payable in annual installments; interest rates from 3.00% to 3.25%). Debt Service - 9,575,000 - 9,575,000 380,000 TOTAL $ 53,215,000 $ 9,575,000 $ 1,720,000 $ 61,070,000 $ 2,150,000 The $5,000,000 in General Obligation Bonds, Series 2008, was authorized to finance various capital improvement projects. The $12,500,000 in General Obligation Bonds, Series 2010A, was authorized to finance various general and wastewater reclamation facility improvements. The $9,900,000 in General Obligation Bonds, Series 2011A, was authorized to finance $4,000,000 in street improvement projects and $5,900,000 for the library renovation project. The $12,500,000 in General Obligation Bonds, Taxable Series 2011B (Qualified Energy Conservation Bonds) was authorized to finance the wastewater reclamation facility improvements. The $10,000,000 in General Obligation Bonds, Series 2012, was authorized to finance the wastewater reclamation facility improvements. The $9,075,000 in General Obligation Bonds, Series 2013, was authorized to finance $3,200,000 in wastewater reclamation facility improvements and $5,875,000 for the library renovation project. - 34 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 34 - 6. LONG-TERM DEBT (Continued) a. General Obligation Bonds (Continued) The $9,575,000 in General Obligation Bonds, Series 201 5, was authorized to finance various street and infrastructure rehabilitation projects . * The Village abated a portion of the tax levy on this bond issue for fiscal 201 5 and evaluates annually if the Village is financially capable of doing so . The bonds were issued as taxable Build America Bonds and are eligible for a 35% direct payment interest credit from the United States Government. ** The Village abated a portion of the tax levy on this bond issue for fiscal 2015 and evaluates annually if the Village is financially capable of doing so. The bonds were issued as taxable Qualified Energy Conservation Bonds and are eligible for a 70% direct payment interest credit from the United States Government. b. Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Year Ending Governmental Activities Business-Type Activities December 31, Principal Interest Total Principal Interest Total 2016 $ 1,369,000 $ 942,294 $ 2,311,294 $ 781,000 $ 1,032,680 $ 1,813,680 2017 1,406,000 908,692 2,314,692 804,000 1,016,052 1,820,052 2018 1,450,000 872,464 2,322,464 825,000 997,429 1,822,429 2019 1,494,000 833,662 2,327,662 851,000 978,319 1,829,319 2020 1,545,000 791,294 2,336,294 875,000 958,983 1,833,983 2021 1,599,000 746,873 2,345,873 901,000 937,098 1,838,098 2022 1,650,000 700,069 2,350,069 930,000 912,580 1,842,580 2023 1,713,000 650,319 2,363,319 957,000 886,592 1,843,592 2024 1,774,000 597,147 2,371,147 991,000 857,777 1,848,777 2025 1,837,000 541,188 2,378,188 1,018,000 827,265 1,845,265 2026 1,905,000 481,767 2,386,767 1,055,000 793,686 1,848,686 2027 1,983,000 418,899 2,401,899 1,087,000 758,116 1,845,116 2028 1,879,000 351,961 2,230,961 13,431,000 719,552 14,150,552 2029 2,475,000 287,173 2,762,173 1,885,000 184,435 2,069,435 2030 2,560,000 208,103 2,768,103 1,940,000 120,525 2,060,525 2031 2,215,000 124,100 2,339,100 1,995,000 54,638 2,049,638 2032 610,000 59,900 669,900 - - - 2033 630,000 41,600 671,600 - - - 2034 650,000 21,125 671,125 - - - TOTAL $ 30,744,000 $ 9,578,630 $ 40,322,630 $ 30,326,000 $ 12,035,727 $ 42,361,727 - 35 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 35 - 6. LONG-TERM DEBT (Continued) c. Changes in Long-Term Liabilities During the fiscal year, the following changes occurred in long-term liabilities: Fund Debt Retired By Balances December 31, Restated Additions Reductions Balances December 31 Current Portion GOVERNMENTAL ACTIVITIES General obligation bonds Debt Service $ 22,131,000 $ 9,575,000 $ 962,000 $ 30,744,000 $ 1,369,000 Premium 149,447 422,335 7,263 564,519 - Discount (57,120) - (623) (56,497) - Net pension liability - IMRF General 2,947,721 1,168,601 - 4,116,322 - Net pension liability - police pension General 9,363,018 16,841,527 - 26,204,545 - Compensated absences (Governmental) General 1,608,811 207,370 176,428 1,639,753 163,975 Compensated absences (Internal Service) Garage 14,178 6,345 3,070 17,453 1,745 Other postemployment benefit General 862,439 73,448 - 935,887 - TOTAL GOVERNMENTAL ACTIVITIES $ 37,019,494 $ 28,294,626 $ 1,148,138 $ 64,165,982 $ 1,534,720 Beginning balances were restated in accordance with G ASB Statement No. 68. The General Fund will liquidate the pension and OPEB liabilities. Fund Debt Retired By Balances December 31, Restated Additions Reductions Balances December 31 Current Portion BUSINESS-TYPE ACTIVITIES General obligation bonds Sewer Sewer $ 31,084,000 $ - $ 758,000 $ 30,326,000 $ 781,000 Premium 146,833 - 11,872 134,961 - Compensated absences (Enterprise) Water/Sewer /Parking 219,929 64,637 22,917 261,649 26,165 Net pension liability Water/Sewer 1,067,278 423,114 - 1,490,392 - Other postemployment benefit Water/Sewer 59,414 5,060 - 64,474 - TOTAL BUSINESS-TYPE ACTIVITIES $ 32,577,454 $ 492,811 $ 792,789 $ 32,277,476 $ 807,165 Beginning balances were restated in accordance with GASB Statement No. 68. - 36 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 36 - 6. LONG-TERM DEBT (Continued) d. Legal Debt Margin The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of t he legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property...(2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: ...indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum... shall not be included in the foregoing percentage amounts.” To date, the General Assembly has set no limits for home rule municipalities. The Village qualifies as a Home Rule Unit under Section 6(a) of Article VII of the 1970 Constitution of Illinois and, under the powers granted by this section, can exercise any power and perform any function pertaining to its government and affairs that is not prohibited by the Illinois Compiled Statutes. e. Noncommitment Debt - Industrial Development Revenue Bonds The issuance of Industrial Development Revenue Bonds (IDRBs) by the Village is to finance in whole or in part the cost of the acquisition, purchase, construction, reconstruction, improvement, equippin g, betterment or extension of any economic development project in order to encourage economic development within or near the Village. IDRBs are not a debt of the Village. The entity using the bond proceeds to finance a construction or improvement project is liable for the bonds . Since the Village does not act as an agent for IDRBs, the transactions relating to the bonds and property do not appear in the Village’s financial statements. The Village has authorized the issuance of the following such bonds: Date Issued Type of Bond Original Amount Debtor 4/16/84 Industrial Revenue $ 1,000,000 Teradyne, Inc. 9/19/11 Industrial Revenue 18,920,000 Chicagoland Jewish High School - 37 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 37 - 6. LONG-TERM DEBT (Continued) e. Noncommitment Debt - Industrial Development Revenue Bonds (Continued) As of December 31, 2015, there were two IDRBs outstanding. The IDRB for the Chicagoland Jewel High School was refinanced during the fiscal year end ed April 30, 2012 and the aggregate principal amount payable was $11,704,000. The aggregate principal payable for the other series of IDRBs could not be determined; however, its original issue amount was $1,000,000. 7. INTERFUND ASSETS/LIABILITIES a. Interfund Transfers Transfers From Transfers To Amount General Infrastructure Replacement $ 1,200,000 Bond Proceeds Infrastructure Replacement 8,991,142 General Nonmajor 22,822 Debt Service Sewer 1,805,840 TOTAL $ 12,019,804 The purpose of significant transfers from/to other funds is as follows:  $1,200,000 transferred from the General Fund to the Infrastructure Replacement Fund is to provide additional funding needed to complete budgeted capital projects.  $8,991,142 transferred from the Bond Proceeds Fund to the Infrastructure Replacement Fund is to provide reimbursements for eligible construction project costs. The amount will not be repaid.  $1,805,840 transferred from Debt Service Fund to the Sewer Fund is to make the principal and interest payments for the sewer bonds. b. Due To/From Other Funds/Advances Receivable Fund Payable Fund Amount General Water - current $ 260,000 General Water - long-term 958,565 General Garage Fund 1,899 TOTAL $ 1,220,464 The interfund payables/receivables all represent temporary financing that will be repaid within one year, except for the long-term portion as noted. - 38 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 38 - 8. COMMITMENTS High-Level Excess Liability Pool The Village has committed to purchase excess liability insurance from HELP, a joint venture of Illinois municipalities . These amounts have been calculated using the Village’s current allocation percentage of 3.94% of premium expense. In future years, this allocation percentage will be subject to change because HELP’s agreement provides that the members will be assessed each year based upon a formula that specifies the following four criteria for allocating premium costs: Miles of streets Full-time equivalent employees Number of licensed vehicles Operating revenues The Village has passed a resolution authorizing the extension of HELP for ten years beginning May 1, 2008. 9. CONTINGENT LIABILITIES a. Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village ’s attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. b. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government . Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. c. High-Level Excess Liability Pool The Village’s agreement with HELP provides that each member is liable for its proportionate share of any costs arising from defaults in payment obligations by other members. - 39 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 39 - 9. CONTINGENT LIABILITIES (Continued) d. Solid Waste Agency of Lake County The Village’s contract with SWALCO provides that each member is liable for its proportionate share of any costs arising from defaults in payment obligations by other members. 10. JOINT VENTURES Solid Waste Agency of Lake County Description of Joint Venture The Village is a member of SWALCO, which consists of 35 municipalities. SWALCO is a municipal corporation and public body politic and corporate established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the Act). SWALCO is empowered under the Act to plan, construct, finance, operate and maintain a solid waste disposal system to serve its members. These percentage shares are subject to change in future years based on the combination of the population and equalized assessed valuation of the municipalities. The members form a contiguous geographic service area, which is located in Lake County . Under the agency agreement, additional members may join SWALCO upon the approval of each member. SWALCO 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 SWALCO are appointed by the Board of Directors . The Board of Directors determines the general policy of SWALCO; makes all appropriations; approves contracts; adopts resolutions providing for the issuance of bonds or notes by SWALCO; adopts bylaws, rules and regulations; and exercises such powers and performs such duties as may be prescribed in the agency agreement or the by-laws. SWALCO is an oversight advisory board providing long range planning services to member municipalities. The Village is a participant in SWALCO, but no agreement has been reached as to services to be provided. Complete financial statements can be obtained from the Solid Waste Agency of Lake County, 1300 N. Skokie Highway, Suite 103, Gurnee, Illinois 60031. The Village does not have an equity interest in SWALCO at December 31, 2015. - 40 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 40 - 11. OTHER POSTEMPLOYMENT BENEFITS a. Plan Description In addition to providing the pension benefits descr ibed, the Village provides postemployment health care benefits (OPEB) for retired e mployees 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. b. Benefits Provided The Village provides pre and post-Medicare postretirement health insurance to retirees, their spouses and dependents (enrolled at time of employee ’s retirement). To be eligible for benefits, the employee must qualify for retirement under one of the Village’s two retirement plans. The Village pays a subsidy of 50% of the cost of the monthly health insurance premiums for the retirees up to a maximum of $50 . The retiree pays the remainder of the blended premium . Upon a retiree becoming eligible for Medicare, the amount payable under the Village ’s health plan will be reduced by the amount payable under Medicare for those expenses that are covered under both. c. Membership At December 31, 2015, membership consisted of: Retirees and beneficiaries currently receiving benefits 15 Terminated employees entitled to benefits but not yet receiving them - Active employees 103 TOTAL 118 Participating employers 1 d. Funding Policy The Village is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future . Active employees do not contribute to the plan until retirement. - 41 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 41 - 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Annual OPEB Costs and Net OPEB Obligation The Village’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the last three years was as follows: Fiscal Year Ended Annual OPEB Cost Employer Contributions Percentage of Annual OPEB Cost Contributed Net OPEB Obligation 2013 $ 186,180 $ 108,707 $ 58.4% $ 843,864 2014 186,696 108,707 58.2% 921,853 2015 187,216 108,707 58.1% 1,000,362 The net OPEB obligation as of December 31, 2015 was calculated as follows: Annual required contribution $ 181,070 Interest on net OPEB obligation 36,874 Adjustment to annual required contribution (30,728) Annual OPEB cost 187,216 Contributions made 108,707 Increase in net OPEB obligation 78,509 Net OPEB obligation, beginning of year 921,853 NET OPEB OBLIGATION, END OF YEAR $ 1,000,362 Funded Status and Funding Progress - The funded status of the plan as of December 31, 2013 (most recent data available), was as follows: Actuarial accrued liability (AAL) $ 4,168,658 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 4,168,658 Funded ratio (actuarial value of plan assets/AAL) 0.00% Covered payroll (active plan members) $ 9,909,624 UAAL as a percentage of covered payroll 42.10% 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, m ortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimat es are - 42 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 42 - 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Annual OPEB Costs and Net OPEB Obligation (Continued) made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial s tatements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial methods and assumptions - projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit c osts 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 th e long-term perspective of the calculations. In the May 1, 2012, actuarial valuation, the entry-age normal actuarial cost method was used. The actuarial assumptions included 4% investment rate of return and an initial healthcare cost trend rate of 8% with an ultimate healthcare inflation rate of 6%. Both rates include a 3% inflation assumption and 4% 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 over a 30 year amortization period. The remaining amortization period at December 30, 2014, was 30 years. 12. EMPLOYEE RETIREMENT SYSTEMS a. Plan Descriptions Illinois Municipal Retirement Fund The Village contributes to the Illinois Municipal Retirement Fund (IMRF), a defined benefit agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for local governments and school districts in Illinois (other than those covered by the Police Pension Plan). The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General Assembly. IMRF issues a publicly available report that includes financial statements and supplementary information for the plan as a whole but not by individual employer. That report may be obtained by writing to the Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. - 43 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 43 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Plan Administration All employees hired in positions that meet or exceed the prescribed annua l hourly standard must be enrolled in IMRF as participating members. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. Plan Membership At December 31, 2015, IMRF membership consisted of: Inactive employees or their beneficiaries currently receiving benefits 120 Inactive employees entitled to but not yet receiving benefits 98 Active employees 107 TOTAL 325 The IMRF data included in the table above includes membership of both the Village of Deerfield and the Deerfield Public Library. Benefits Provided IMRF provides two tiers of pension benefits. Employees hired prior to January 1, 2011 are eligible for Tier 1 benefits. For Tier 1 employees, pension benefits vest after eight years of service. Participating members who retire at age 55 (reduced benefits) or after age 60 (full benefits) with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credite d service up to 15 years, and 2% for each year thereafter. Employees hired on or after January 1, 2011 are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire at age 62 (red uced benefits) or after age 67 (full benefits) with ten years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. IMRF also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute. - 44 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 44 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Contributions Participating members are required to contribute 4.5% of their annual covered salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund IMRF as specified by statute. The employer contribution rate for the calendar year ended December 31, 2015 was 12.94% of covered payroll. Actuarial Assumptions The Village’s net pension liability was measured as of December 31, 2015 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of the same date using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2015 Actuarial cost method Entry-age normal Assumptions Inflation 2.75% Salary increases 3.75% to 14.50% Interest rate 7.50% Cost of living adjustments 3.00% Asset valuation method Market value For nondisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP -2014 (base year 2014). IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP -2014 (base year 2014). IMRF specific rates were developed from the RP -2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for nondisabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP -2014 (base year 2014). IMRF specific rates were developed from the RP -2014 Employee Mortality Table with adjustments to match current IMRF experience. - 45 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 45 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Discount Rate The discount rate used to measure the total pension liability was 7.48%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Bas ed on those assumptions, the Village’s fiduciary net position was projected not to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments of 7.5 0% was blended with the index rate of 3.57% for tax exempt general obligation municipal bonds rated AA or better at December 31, 2015 to arrive at a discount rate of 7.48% used to determine the total pension liability. Changes in the Net Pension Liability (a) Total Pension Liability (b) Plan Fiduciary Net Position (a) - (b) Net Pension Liability BALANCES AT JANUARY 1, 2015 $ 46,096,514 $ 41,014,236 $ 5,082,278 Changes for the period Service cost 818,026 - 818,026 Interest 3,391,973 - 3,391,973 Difference between expected and actual experience (19,404) - (19,404) Changes in assumptions 56,963 - 56,963 Employer contributions - 1,004,206 (1,004,206) Employee contributions - 347,043 (347,043) Net investment income - 202,355 (202,355) Benefit payments and refunds (2,437,679) (2,437,679) - Administrative expense - - - Other (net transfer) - 679,125 (679,125) Net changes 1,809,879 (204,950) 2,014,829 BALANCES AT DECEMBER 31, 2015 $ 47,906,393 $ 40,809,286 $ 7,097,107 - 46 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 46 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Changes in the Net Pension Liability (Continued) The table presented on the previous page includes amounts for both the Village and the Library. The Village’s proportionate share of the net pension liability at January 1, 2015, the employer contributions, and the net pension liability at D ecember 31, 2015 was $4,015,000, $793,113 and $5,606,715, respectively. The Library’s proportionate share of the net pension liability at January 1, 2015, the employer contributions and the net pension liability at December 31, 2015 was $1,067278, $211,093 and $1,490,392, respectively. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2015, the Village recognized pension expense of $794,494. At December 31, 2015, the Village reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ - $ 140,464 Changes in assumption 912,805 - Net difference between projected and actual earnings on pension plan investments 2,612,305 - TOTAL $ 3,525,110 $ 140,464 The deferred outflows presented in the table above include amounts for both the Village and the Library. The Village’s proportionate share of the deferred outflows and inflows of resources at December 31, 2015 was $2,784,837 and $110,967, respectively. The Library’s proportionate share of the deferred outflows of resources at December 31, 2015 was $740,273 and $29,497, respectively. - 47 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 47 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources related to IMRF will be recognized in pension expense as follows: Year Ending December 31, 2016 $ 824,007 2017 824,007 2018 573,813 2019 452,044 2020 - Thereafter - TOTAL $ 2,673,871 Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liabili ty of the Village calculated using the discount rate of 7.48% as well as what the Village’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.48%) or 1 percentage point higher (8.48%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (6.48%) (7.48%) (8.48%) Net pension liability (Village) $ 10,497,219 $ 5,606,715 $ 1,642,257 Net pension liability (Library) 2,790,400 1,490,392 436,550 Net pension liability (total) $ 13,287,619 $ 7,097,107 $ 2,078,807 - 48 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 48 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan Plan Administration Police sworn personnel are covered by the Police Pension Plan, which is a def ined benefit single-employer pension plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contributions levels are governed by Illinois Compiled Statutes (Chapter 40 - Article 5/3) and can be amended only by the Illinois legislature. The Village accounts for the Police Pension Plan as a pension trust fund. The plan is governed by a five-member pension board. Two members appointed by the Village’s Board, one elected by retired pension members and two elected by active members constitute the pension board. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. The Police Pension Plan does not issue a separate financial report. Plan Membership At December 31, 2015, the Police Pension Plan membership consisted of: Inactive plan members currently receiving benefits 37 Inactive plan members but not yet receiving benefits 1 Active plan members Vested 24 Nonvested 15 TOTAL 77 - 49 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 49 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Benefits Provided The following is a summary of the Police Pension Plan as provided for in Illinois Compiled Statutes (ILCS). The Police Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one -half of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater . The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit . The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Police officers’ salary for pension purposes is capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., ½% for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1st after the police officer retires, or the first anni versary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or ½ of the change in the Consumer Price Index for the proceeding calendar year. - 50 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 50 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Contributions Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employme nt 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 Police Pension Plan as actuarially determined by an enrolled actuary. Effective January 1, 2011, the Village has until the year 2040 to fund 90% of the past service cost for the Police Pension Plan and this is the Village’s funding policy. The employer contribution for the fiscal year ended December 31, 2015 was 22.89% of covered payroll. Investment Policy Permitted Deposits and Investments - Statutes and the Police Pension Fund’s (the Fund) investment policy authorize the Fund to make deposits/invest in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States Government or agreements to repurchase these same obligations, repu rchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, Illinois Funds, IMET, certain non -U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political subdivisions, and Illinois insurance company general and separate accounts, mutual funds and equity securities (not to exceed 65% of the total net position of the Fund) and corporate bonds. During the year, no changes to the investment policy were approved by the Board of Trustees. The Fund’s Board of Trustees established the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Corporate Bonds 34% 1.70% Domestic Equity 60% 6.10% U.S. Government 5% 1.00% Cash 1% 0.00% - 51 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 51 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Investment Policy (Continued) Long-term expected real returns under GASB reflect the period of time that begins when a plan member begins to provide service to the employer and ends at the point when all benefits to the plan member have been paid. The expected inflation rate is 3% and is included in the long-term rate of return on investments. Long-term rates of return are expected to exhibit geometric properties. Geometric rates of return are equal to arithmetic rates of return when the annual returns exhibit no volatility over time. When arithmetic returns are volatile on a year-to-year basis, the actual realized geometric returns over time will be lower. The higher the volatility, the greater the difference. Investment Valuations All investments in the plan are stated at fair val ue and are recorded as of the trade date. Fair value is based on quoted market prices at December 31 for debt securities, equity securities and mutual funds and contract values for any insurance contracts. Investment income is recognized as earned. Gains a nd losses on sales and exchanges of fixed income securities are recognized on the transaction date. Investment Rate of Return For the year ended December 31, 2015, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 1%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure, the Fund’s deposits may not be returned to them. The Fund’s investment policies do not require pledging of collateral for all bank balances in excess of federal depository insurance , since flow-through FDIC insurance is available for the Fund’s deposits with financial institutions. - 52 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 52 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Interest Rate Risk The following table presents the investments and maturities of the Fund’s debt securities as of December 31, 2015: Investment Maturities (in Years) Fair Less than Greater than Value 1 1-5 6-10 10 U.S. agency obligations $ 4,286 $ - $ - $ 4,286 $ - U.S. Treasury obligations 2,948,975 - 1,083,357 114,744 1,750,874 Corporate bonds 9,885,696 705,608 6,297,873 2,270,518 611,697 Municipal bonds 674,107 - 120,422 - 553,685 TOTAL $ 13,513,064 $ 705,608 $ 7,501,652 $ 2,389,548 $ 2,916,256 In accordance with its investment policy, the Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds not needed within a one year period. The investment policy does not limit the maximum maturity length of investments in the Fund. Credit Risk The Fund limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by investing in obligations guaranteed by the United States Government or securities issued by agencies of the United States Government that are explicitly or implicitly guaranteed by the U nited States Government bonds and investment grade bonds. The U.S. Treasury and agency obligations are rated by Moody’s Aaa, the corporate bonds are rated between Baa3 and Aaa, and the municipal bonds are rated between Aa3 and Aaa. Illinois Funds is rated Aaa by Standard and Poor’s. The investment policy is silent on minimum ratings required. Custodial Credit Risk - Investments Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Fund will not be able to recover the value of its investments that are in possession of an outside party. To limit its exp osure, the Fund’s investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third party acting as the Fund’s agent separate from where the investment was purchased in the Fund’s name. Illinois Funds and IMET are not subject to custodial credit risk. - 53 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 53 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Custodial Credit Risk - Investments (Continued) Concentration of credit risk - The Fund’s investment policy limits the amount of the portfolio that can be invested in any one investment vehicle. With the exception of U.S. Treasury securities and authorized pools, no more than 65% of the Fund’s total investment portfolio can be invested in a single security type or with a single financial institution. The Fund’s investment policy does not specifically prohibit the use of or the investment in derivatives. Net Pension Liability The components of the net pension liability of the Police Pension Plan as of December 31, 2015 calculated in accordance with GASB Statement No. 67 were as follows: Total pension liability $ 66,716,907 Plan fiduciary net position 40,512,362 Village’s net pension liability 26,204,545 Plan fiduciary net position as a percentage of the total pension liability 60.72% See the schedule of changes in the employer’s net pension liability and related ratios in the required supplementary information for additional information related to the funded status of the Fund. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed using the following actuarial methods and assumpti ons. - 54 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 54 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Actuarial Assumptions (Continued) Actuarial valuation date December 31, 2015 Actuarial cost method Entry-age normal Assumptions Inflation 3.00% Salary increases 4.50% Interest rate 7.25% Cost of living adjustments 3.00% Asset valuation method Market Mortality rates were based on the L&A 2016 Illinois Police Table. The actuarial assumptions used in the December 31, 2015 valuation were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance. Discount Rate The discount rate used to measure the total pension liability was 5.63%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the m ember rate. Based on those assumptions, the Fund’s fiduciary net position was not projected to be available to make all projected future benefit payments of current plan members and, therefore, was blended with the index rate of 3.57% for tax exempt general obligation municipal bonds rated AA or better at December 31, 2015 to arrive at a discount rate of 5.63% used to determine the total pension liability. Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to chan ges in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 5.63% as well as what the Village’s net pension liability would be if it were calculated using a discount rate that is 1 percentag e point lower (4.63%) or 1 percentage point higher (6.63%) than the current rate: - 55 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 55 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Discount Rate Sensitivity (Continued) 1% Decrease Current Discount Rate 1% Increase (4.63%) (5.63%) (6.63%) Net pension liability $ 36,693,346 $ 26,204,545 $ 17,726,454 Changes in the Net Pension Liability (a) Total Pension Liability (b) Plan Fiduciary Net Position (a) - (b) Net Pension Liability BALANCES AT JANUARY 1, 2015 $ 50,957,374 $ 41,594,356 $ 9,363,018 Changes for the period Service cost 1,138,463 - 1,138,463 Interest 2,800,129 - 2,800,129 Difference between expected and actual experience 2,088,324 - 2,088,324 Changes in assumptions 12,175,632 - 12,175,632 Employer contributions - 871,305 (871,305) Employee contributions - 517,457 (517,457) Net investment income - (4,524) 4,524 Benefit payments and refunds (2,443,015) (2,443,015) - Other (net transfer) - (23,217) 23,217 Net changes 15,759,533 (1,081,994) 16,841,527 BALANCES AT DECEMBER 31, 2015 $ 66,716,907 $ 40,512,362 $ 26,204,545 - 56 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 56 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2015, the Village recognized pension expense of $2,632,333. At December 31, 2015, the Village reported deferred outflows of resources and deferred inflows of resources related to the Police Pension from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 1,733,769 $ - Changes in assumption 10,108,461 - Net difference between projected and actual earnings on pension plan investments 2,366,964 - TOTAL $ 14,209,194 $ - Amounts reported as deferred outflows of resources and deferred inflows of resources related to police pension will be recognized in pension expense as follows: Year Ending December 31, 2016 $ 3,013,468 2017 3,013,468 2018 3,013,468 2019 3,013,464 2020 2,155,326 Thereafter - TOTAL $ 14,209,194 - 57 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 57 - 13. CONTRACTUAL COMMITMENTS Economic Incentive Agreements The Village has entered into economic incentive agreements with a commercial entity whereby the Village has agreed to reimburse the commercial entit y through sales tax rebates. The amount of the rebates is l imited to specified time period and are payable over 20 years solely from sales taxes generated by the commercial entity. The rebates are to be paid monthly with the agreement expir ing 20 years after commencement. At December 31, 2015, the Village has accrued an estimated rebate liability of $527,823 for amounts collected by the state through December 31, 2015 but not yet paid to the commercial entity. To date, the Village has paid $20,102,520 to the commercial entity. The agreement has no stated maximum. 14. CHANGES IN ACCOUNTING PRINCIPLE With the implementation of GASB Statement No. 68, the Village is required to retroactively record the net pension liability. The Village recorded the following change in accounting principle during the period ended December 31, 2015: Increase (Decrease) CHANGE IN ACCOUNTING PRINCIPLE - GOVERNMENTAL ACTIVITIES Change in accounting principle To record the IMRF net pension liability $ (2,947,721) To record the Police Pension net pension liability (10,383,439) To eliminate the net pension asset (1,020,421) TOTAL CHANGE IN ACCOUNTING PRINCIPLE - GOVERNMENTAL ACTIVITIES $ (14,351,581) Increase (Decrease) CHANGE IN ACCOUNTING PRINCIPLE - BUSINESS-TYPE ACTIVITIES Change in accounting principle To record the IMRF net pension liability $ (1,067,278) TOTAL CHANGE IN ACCOUNTING PRINCIPLE - BUSINESS-TYPE ACTIVITIES $ (1,067,278) - 58 - REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND December 31, 2015 Original and Final Budget Actual REVENUES Taxes 8,055,000$ 8,623,244$ Licenses and permits 1,339,500 1,464,015 Intergovernmental 6,654,000 6,772,934 Charges for services 615,000 764,459 Fines and forfeits 275,000 292,284 Investment income 105,000 66,478 Miscellaneous 769,500 913,024 Total revenues 17,813,000 18,896,438 EXPENDITURES General government 7,607,218 6,967,367 Public safety 9,670,567 8,697,581 Highways and streets 2,813,052 2,816,855 Total expenditures 20,090,837 18,481,803 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,277,837) 414,635 OTHER FINANCING SOURCES (USES) Transfers in - 22,822 Transfers (out)(1,200,000) (1,200,000) Total other financing sources (uses)(1,200,000) (1,177,178) NET CHANGE IN FUND BALANCE (3,477,837)$ (762,543) FUND BALANCE, JANUARY 1 21,694,124 FUND BALANCE, DECEMBER 31 20,931,581$ (See independent auditor's report.) - 59 - Schedule of Funding Progress (6) Unfunded Actuarial (2)(4)Accrued (1)Actuarial Unfunded Liability as Actuarial Accrued (3)Actuarial (5)a Percentage Actuarial Value of Liability Percentage Accrued Annual of Covered Valuation Plan (AAL)Funded Liability Covered Payroll Date Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) April 30, 2011 N/A N/A N/A N/A N/A N/A April 30, 2012 N/A N/A N/A N/A N/A N/A April 30, 2013 -$ 4,168,658$ 0.00%4,168,658$ 9,909,624$ 42.07% December 31, 2013*- 4,168,658 0.00%4,168,658 9,909,624 42.07% December 31, 2014 N/A N/A N/A N/A N/A N/A December 31, 2015 N/A N/A N/A N/A N/A N/A Schedule of Employer Contributions Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC)Contributed April 30, 2011 186,725$ 328,060$ 56.92% April 30, 2012 186,725 328,060 56.92% April 30, 2013 186,725 328,060 56.92% December 31, 2013*108,707 181,070 60.04% December 31, 2014 108,707 181,070 60.04% December 31, 2015 108,707 181,070 60.04% * The Village changed to a December 31 year end for the fiscal year ended December 31, 2013. N/A - Not available December 31, 2015 VILLAGE OF DEERFIELD, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION OTHER POSTEMPLOYMENT BENEFIT PLAN (See independent auditor's report.) - 60 - - 59 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2015 BUDGETS Budgets are adopted on a basis consistent with GAAP. Annual appropriated budgets are adopted (at the fund level) for the General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service and Pension Trust Funds. The annual appropriated budget is legally enacted and provides for a legal level of control at the department level, or, where no departmental segregation of a fund exists, the fund level. All annual appropriations lapse at fiscal year end. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to assign or commit that portion of the applicable appropriation is utilized in the governmental funds. Material encumbrances outstanding at year end, if any, are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. No material encumbrances were recorded for 2015 All departments of the Village submit requests for appropriation to the Village’s 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. The proposed budget is presented to the governing body for review. The governing body holds public hearings and can add to, subtract from or change appropriations; but cannot change the form of the budget. Management cannot amend the total budget for individual funds without seeking the approval of the governing body. Expenditures cannot legally exceed budgeted appropriations at the fund level, and the Board must approve any over expenditures of appropriation or transfers of appropriated amounts. During the year, one supplementary appropriation was approved. - 61 - 2015 Actuarially determined contributions 996,735$ Contributions in relation to the actuarially determined contribution 1,004,206 CONTRIBUTION DEFICIENCY (Excess)(7,471)$ Covered-employee payroll 7,702,744$ Contributions as a percentage of covered-employee payroll 13.0% VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2015 (See independent auditor's report.) - 62 - 2007 2008 2009 2010 2011 2012 2013 2013 2014 2015 Actuarially determined contribution 654,414$ 698,335$ 843,209$ 1,202,006$ 1,350,132$ 860,228$ 1,023,006$ 895,479$ 989,616$ 871,305$ Contribution in relation to the actuarially determined contribution 654,414 698,335 843,209 1,202,006 1,350,132 860,228 1,023,006 895,479 989,616 871,305 CONTRIBUTION DEFICIENCY (Excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered-employee payroll 3,124,688$ 3,192,147$ 3,104,786$ 3,356,276$ 3,216,370$ 3,412,049$ 3,512,925$ 3,591,966$ 3,836,746$ 3,806,499$ Contributions as a percentage of covered-employee payroll 20.94%21.88%27.16%35.81%41.98%25.21%29.12%24.93%25.79%22.89% * The Village changed to a December 31 year end for the fiscal year ended December 31, 2013. Notes to Required Supplementary Information This information directly above is presented in accordance with GASB Statement No.67.The information presented was determined as part of the actuarial valuations as of January 1.Additional information as of the latest actuarial valuation presented is as follows:the actuarial cost method was entry-age normal;the amortization method was level percent of pay,closed and the amortization period was 25 years;the asset valuation method was at market value; and the significant actuarial assumptions were an investment rate of return of 7.25%annually,after 2012 and 7.5%2012 and prior,projected salary increase assumption of 4.5%compounded annually and postretirement benefit increases of 3% compounded annually. VILLAGE OF DEERFIELD, ILLINOIS POLICE PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Last Ten Fiscal Years (See independent auditor's report.) - 63 - 2015 Employer's proportion of net pension liability 79.00% Employer's proportionate share of net pension liability 5,606,714 Employer's covered-employee payroll 6,085,168 Employer's proportionate share of the net pension liability as a percentage of its covered-employee payroll 92.14% Plan fiduciary net position as a percentage of the total pension liability 85.40% VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2015 (See independent auditor's report.) - 64 - 2014 2015 TOTAL PENSION LIABILITY Service cost 841,716$ 1,138,463$ Interest 3,358,650 2,800,129 Changes of benefit terms - - Differences between expected and actual experience - 2,088,324 Changes of assumptions - 12,175,632 Benefit payments, including refunds of member contributions (2,447,399) (2,443,015) Net change in total pension liability 1,752,967 15,759,533 Total pension liability - beginning 49,204,407 50,957,374 TOTAL PENSION LIABILITY - ENDING 50,957,374$ 66,716,907$ PLAN FIDUCIARY NET POSITION Contributions - employer 989,616$ 871,305$ Contributions - member 374,137 517,457 Net investment income 3,637,510 (4,524) Benefit payments, including refunds of member contributions (2,447,399) (2,443,015) Administrative expense (20,524) (23,217) Net change in plan fiduciary net position 2,533,340 (1,081,994) Plan net position - beginning 39,061,016 41,594,356 PLAN NET POSITION - ENDING 41,594,356$ 40,512,362$ EMPLOYER'S NET PENSION LIABILITY 9,363,018$ 26,204,545$ Plan fiduciary net position as a percentage of the total pension liability 81.6%60.7% Covered employee payroll 3,702,863$ 3,806,499$ Employer's net pension liability as a percentage of covered employee payroll 252.9%688.4% VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND December 31, 2015 (See independent auditor's report.) - 65 - 2015 2014 Annual money-weighted rate of return, net of investment expense (0.02%)9.54% VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND December 31, 2015 (See independent auditor's report.) - 66 - COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2015 Original and Final Budget Actual TAXES Property 30,000$ 27,080$ Replacement 125,000 148,999 Home rule sales 3,200,000 2,941,572 Local use 300,000 405,359 Electric utility tax 1,250,000 1,251,001 Hotel/motel 1,800,000 2,141,488 Telecommunication 1,350,000 1,707,745 Total taxes 8,055,000 8,623,244 LICENSES AND PERMITS Beer/liquor licenses 65,000 67,507 Food licenses 5,000 3,847 Other business licenses 5,500 9,195 Building permits 875,000 1,004,633 Contractor's licenses 7,000 7,350 Nonbusiness licenses and permits 52,000 39,876 Vehicle licenses 330,000 331,607 Total licenses and permits 1,339,500 1,464,015 INTERGOVERNMENTAL State grant - - Sales taxes 4,900,000 4,777,330 Income taxes 1,700,000 1,939,199 State highway maintenance 54,000 56,405 Total intergovernmental 6,654,000 6,772,934 CHARGES FOR SERVICES Special police services 282,000 309,943 Dispatching services 236,000 245,592 50/50 tree planting 65,000 166,924 Engineering services 32,000 42,000 Total charges for services 615,000 764,459 FINES AND FORFEITS 275,000 292,284 INVESTMENT INCOME 105,000 66,478 (This schedule is continued on the following page.) - 67 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2015 Original and Final Budget Actual MISCELLANEOUS False alarms 27,000$ 26,814$ Rentals 235,000 265,017 Miscellaneous 125,000 177,119 Sale of equipment 7,500 150 Franchise fees 375,000 443,924 Total miscellaneous 769,500 913,024 TOTAL REVENUES 17,813,000$ 18,896,438$ (See independent auditor's report.) - 68 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2015 Original and Final Budget Actual GENERAL GOVERNMENT Finance department Personnel services 1,014,500$ 1,003,936$ Training and development 8,050 4,982 Contractual services 2,847,775 2,521,307 Commodities 14,500 7,509 Utilities 20,200 14,729 Capital outlay 38,817 38,173 Total finance department 3,943,842 3,590,636 Administration Personnel services 827,223 812,468 Training and development 14,000 9,796 Contractual services 661,977 578,196 Commodities 4,050 6,009 Utilities 3,000 3,809 Capital outlay 59,350 57,009 Total administration 1,569,600 1,467,287 Community development Personnel services 1,067,943 1,032,736 Training and development 5,700 7,579 Contractual services 127,612 103,223 Commodities 20,700 8,979 Utilities 8,840 7,443 Capital outlay 10,900 8,502 Total community development 1,241,695 1,168,462 Engineering Personnel services 459,500 444,295 Training and development 5,000 2,193 Contractual services 350,570 265,092 Commodities 13,500 10,027 Utilities 9,610 6,907 Capital outlay 13,901 12,468 Total engineering 852,081 740,982 Total general government 7,607,218 6,967,367 PUBLIC SAFETY Police department Administrative services Personnel services 763,879 784,192 Training and development 12,225 5,472 (This schedule is continued on the following pages.) - 69 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2015 Original and Final Budget Actual PUBLIC SAFETY (Continued) Police department (Continued) Administrative services (Continued) Contractual services 688,780$ 507,837$ Commodities 34,500 19,591 Utilities 20,586 14,992 Capital outlay 169,248 168,037 Total administrative services 1,689,218 1,500,121 Communications Personnel services 1,004,465 902,872 Training and development 6,600 3,300 Contractual services 500 328 Capital outlay 5,000 3,332 Total communications 1,016,565 909,832 Investigations Personnel services 935,262 892,273 Training and development 7,500 4,421 Contractual services 7,300 3,963 Commodities 19,100 10,236 Capital outlay 34,700 28,069 Total investigations 1,003,862 938,962 Patrol Personnel services 5,519,722 5,019,352 Training and development 38,150 35,343 Contractual services 65,400 66,441 Commodities 118,100 60,286 Utilities 4,000 3,869 Capital outlay 19,950 16,049 Total patrol 5,765,322 5,201,340 Special detail Personnel services 195,600 147,326 Total special detail 195,600 147,326 Total public safety 9,670,567 8,697,581 HIGHWAYS AND STREETS Public works department Administration Personnel services 318,950 296,076 Training and development 5,000 626 (This schedule is continued on the following page.) - 70 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2015 Original and Final Budget Actual HIGHWAYS AND STREETS (Continued) Public works department (Continued) Administration (Continued) Contractual services 193,127$ 174,791$ Commodities 5,200 6,241 Utilities 8,210 6,753 Capital outlay 152,465 151,078 Total administration 682,952 635,565 Maintenance Personnel services 748,500 692,878 Contractual services 112,000 162,866 Commodities 152,000 152,644 Utilities 110,000 111,505 Capital outlay 2,500 1,350 Total maintenance 1,125,000 1,121,243 Snow and ice control Personnel services 134,750 143,426 Contractual services 104,000 137,603 Commodities 267,250 278,676 Capital outlay 750 7,720 Total snow and ice control 506,750 567,425 Forestry Personnel services 9,600 837 Contractual services 338,000 321,582 Commodities 15,000 13,649 Capital outlay 82,000 108,523 Total forestry 444,600 444,591 Train station maintenance Personnel services 10,750 9,628 Contractual services 38,500 35,947 Commodities 4,000 2,129 Utilities 500 327 Total train station maintenance 53,750 48,031 Total highways and streets 2,813,052 2,816,855 TOTAL EXPENDITURES 20,090,837$ 18,481,803$ (See independent auditor's report.) - 71 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended December 31, 2015 Original and Final Budget Actual REVENUES Taxes Property 2,209,321$ 2,240,423$ Intergovernmental 498,547 498,784 Contribution from library 732,831 732,831 Investment income 750 3,383 Total revenues 3,441,449 3,475,421 EXPENDITURES Debt service Principal retirement 962,000 962,000 Interest 672,060 672,059 Fiscal charges 4,000 2,800 Total expenditures 1,638,060 1,636,859 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,803,389 1,838,562 OTHER FINANCING SOURCES (USES) Transfers (out)(1,806,639) (1,805,840) Total other financing sources (uses)(1,806,639) (1,805,840) NET CHANGE IN FUND BALANCE (3,250)$ 32,722 NET POSITION, JANUARY 1 25,299 NET POSITION, DECEMBER 31 58,021$ (See independent auditor's report.) - 72 - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INFRASTRUCTURE REPLACEMENT FUND For the Year Ended December 31, 2015 Original and Final Budget Actual REVENUES Taxes Property 2,361,087$ 2,386,075$ Home rule sales tax 1,000,000 980,524 Intergovernmental 412,000 384,949 Charges for services - 6,200 Investment income 2,500 11,532 Miscellaneous 200,000 428,786 Total revenues 3,975,587 4,198,066 EXPENDITURES Capital outlay Contractual services 1,035,000 1,130,822 Construction 11,870,000 10,827,650 Total expenditures 12,905,000 11,958,472 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (8,929,413) (7,760,406) OTHER FINANCING SOURCES (USES) Transfers in 1,200,000 10,191,142 Total other financing sources (uses)1,200,000 10,191,142 NET CHANGE IN FUND BALANCE (7,729,413)$ 2,430,736 NET POSITION, JANUARY 1 2,276,297 NET POSITION, DECEMBER 31 4,707,033$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 73 - NONMAJOR GOVERNMENTAL FUNDS Motor Fuel Tax Fund - to account for activity funded by the state share of tax on the use of motor fuels. Enhanced 911 Fund - to account for the operation of the E911 emergency response system which is funded by a per line charge on land-based and cellular phones. 2011B Sinking Fund - to accumulate restricted resources for the payment of general long-term debt. Bond Proceeds Fund - to account for the restricted proceeds of the General Obligation Bonds, Series 2010A, 2011A, 2011B, 2012, 2013, 2015 and related expenditures. COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2015 Debt Capital Service Fund Project Fund Motor Enhanced 2011B Bond Fuel Tax 911 Sinking Proceeds Total Cash and investments 553,576$ 1,141,644$ 2,916,999$ 696,658$ 5,308,877$ Receivables Accounts - 88,234 - - 88,234 Accrued interest 437 578 8,623 - 9,638 Due from other governments 41,132 - - - 41,132 TOTAL ASSETS 595,145$ 1,230,456$ 2,925,622$ 696,658$ 5,447,881$ LIABILITIES Accounts payable 206,599$ 100,163$ -$ -$ 306,762$ Total liabilities 206,599 100,163 - - 306,762 FUND BALANCES Restricted for Maintenance of roadways 388,546 - - - 388,546 Public safety - 1,130,293 - - 1,130,293 Debt service - - 2,925,622 - 2,925,622 Capital projects - - - 696,658 696,658 Total fund balances 388,546 1,130,293 2,925,622 696,658 5,141,119 TOTAL LIABILITIES AND FUND BALANCES 595,145$ 1,230,456$ 2,925,622$ 696,658$ 5,447,881$ Special Revenue Funds VILLAGE OF DEERFIELD, ILLINOIS ASSETS LIABILITIES AND FUND BALANCES (See independent auditor's report.) - 74 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2015 Debt Capital Service Fund Project Fund Motor Enhanced 2011B Bond Fuel Tax 911 Sinking Proceeds Total REVENUES Property taxes -$ -$ 725,000$ -$ 725,000$ Intergovernmental 445,554 - - - 445,554 Charges for services - 343,856 - - 343,856 Investment income 3,084 3,749 40,731 1,103 48,667 Miscellaneous - 6,215 - - 6,215 Total revenues 448,638 353,820 765,731 1,103 1,569,292 EXPENDITURES Current General government 988,000 - 515 310,638 1,299,153 Public safety - 438,422 - - 438,422 Total expenditures 988,000 438,422 515 310,638 1,737,575 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (539,362) (84,602) 765,216 (309,535) (168,283) OTHER FINANCING SOURCES (USES) Proceeds from bonds issued at par - - - 9,575,000 9,575,000 Premium on bonds issued - - - 422,335 422,335 Transfers (out)- - (22,822) (8,991,142) (9,013,964) Total other financing sources (uses)- - (22,822) 1,006,193 983,371 NET CHANGE IN FUND BALANCES (539,362) (84,602) 742,394 696,658 815,088 NET POSITION, JANUARY 1 927,908 1,214,895 2,183,228 - 4,326,031 NET POSITION, DECEMBER 31 388,546$ 1,130,293$ 2,925,622$ 696,658$ 5,141,119$ Special Revenue Funds (See independent auditor's report.) - 75 - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MOTOR FUEL TAX FUND For the Year Ended December 31, 2015 Original and Final Budget Actual REVENUES Intergovernmental Allotments earned 435,000$ 445,554$ Investment income 1,500 3,084 Total revenues 436,500 448,638 EXPENDITURES Highways and streets Capital outlay 988,000 988,000 Total expenditures 988,000 988,000 NET CHANGE IN FUND BALANCE (551,500)$ (539,362) NET POSITION, JANUARY 1 927,908 NET POSITION, DECEMBER 31 388,546$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 76 - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ENHANCED 911 FUND For the Year Ended December 31, 2015 Original Final Budget Budget Actual REVENUES Charges for services Other charges 335,000$ 335,000$ 343,856$ Investment income 6,000 6,000 3,749 Miscellaneous - - 6,215 Total revenues 341,000 341,000 353,820 EXPENDITURES Public safety Contractual services 209,281 209,281 137,394 Utilities 51,000 51,000 41,146 Capital outlay 267,270 365,170 259,882 Total expenditures 527,551 625,451 438,422 NET CHANGE IN FUND BALANCE (186,551)$ (284,451)$ (84,602) NET POSITION, JANUARY 1 1,214,895 NET POSITION, DECEMBER 31 1,130,293$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 77 - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 2011B SINKING FUND For the Year Ended December 31, 2015 Original and Final Budget Actual REVENUES Property taxes 725,000$ 725,000$ Investment income 15,000 40,731 Total revenues 740,000 765,731 EXPENDITURES Contractual services 1,200 515 Total expenditures 1,200 515 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 738,800 765,216 OTHER FINANCING SOURCES (USES) Transfers (out)- (22,822) NET CHANGE IN FUND BALANCE 738,800$ 742,394 NET POSITION, JANUARY 1 2,183,228 NET POSITION, DECEMBER 31 2,925,622$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 78 - MAJOR ENTERPRISE FUNDS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATER FUND For the Year Ended December 31, 2015 Original and Final Budget Actual OPERATING REVENUES Charges for services Water sales 4,180,000$ 3,701,281$ Miscellaneous Permits and fees 40,000 50,789 Penalties 30,000 32,110 Other 33,000 36,959 Total operating revenues 4,283,000 3,821,139 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 629,814 472,305 Operations Distribution 2,640,800 2,437,260 Maintenance - mains and fire hydrants 603,800 623,893 Maintenance - meters 884,400 562,846 Total operating expenses excluding depreciation 4,758,814 4,096,304 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (475,814) (275,165) Depreciation - 420,985 OPERATING INCOME (LOSS) BEFORE CONTRIBUTIONS OF CAPITAL ASSETS (475,814) (696,150) Contributions of capital assets - 2,002,495 CHANGE IN NET POSITION (475,814)$ 1,306,345 NET POSITION, JANUARY 1 16,305,782 Change in accounting principle (355,759) NET POSITION, JANUARY 1 (RESTATED)15,950,023 NET POSITION, DECEMBER 31 17,256,368$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 79 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER FUND For the Year Ended December 31, 2015 Original and Final Budget Actual ADMINISTRATION Personnel services 380,500$ 262,434$ Training and development 1,850 782 Contractual services 181,865 147,654 Commodities 5,000 4,457 Utilities 9,910 6,858 Capital outlay 50,689 50,120 Total administration 629,814 472,305 OPERATIONS Distribution Personnel services 135,900 145,437 Contractual services 45,000 67,430 Commodities 2,362,400 2,145,125 Utilities 92,500 77,684 Capital outlay 5,000 1,584 Total distribution 2,640,800 2,437,260 Main and fire hydrant maintenance Personnel services 373,600 360,340 Contractual services 122,000 105,578 Commodities 106,200 155,770 Capital outlay 2,000 2,205 Total main and fire hydrant maintenance 603,800 623,893 Meter maintenance Personnel services 94,000 84,268 Contractual services 423,000 182,758 Commodities 5,400 2,409 Capital outlay 362,000 293,411 Total meter maintenance 884,400 562,846 TOTAL OPERATING EXPENSES 4,758,814$ 4,096,304$ (See independent auditor's report.) - 80 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION WATER FUND For the Year Ended December 31, 2015 Balances Balances December 31, December 31, 2014 Additions Retirements 2015 Land 1,877,956$ -$ -$ 1,877,956$ Buildings 4,180,123 - - 4,180,123 Water system improvements 14,849,333 2,002,494 209,976 16,641,851 Equipment and vehicles 626,490 - - 626,490 TOTAL 21,533,902$ 2,002,494$ 209,976$ 23,326,420$ Balances Balances December 31, December 31, 2014 Additions Retirements 2015 Buildings 1,843,801$ 88,455$ -$ 1,932,256$ Water system improvements 2,417,576 314,476 209,976 2,522,076 Equipment and vehicles 477,591 18,054 - 495,645 TOTAL 4,738,968$ 420,985$ 209,976$ 4,949,977$ NET ASSET VALUE 18,376,443$ Accumulated Depreciation Assets (See independent auditor's report.) - 81 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended December 31, 2015 Original and Final Budget Actual OPERATING REVENUES Charges for services Sewer charges 2,775,500$ 2,724,235$ Miscellaneous Permits and fees 15,000 18,650 Penalties 30,000 30,384 Other 5,000 32,004 Total operating revenues 2,825,500 2,805,273 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 566,869 339,816 Operations Treatment plant 1,603,213 1,587,392 Cleaning and maintenance 307,000 284,403 Construction 351,450 313,424 Total operating expenses excluding depreciation 2,828,532 2,525,035 OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION (3,032) 280,238 Depreciation and amortization - 973,048 OPERATING INCOME (LOSS)(3,032) (692,810) NON-OPERATING REVENUES (EXPENSES) Investment income 2,000 1,608 Interest expense (1,048,639) (1,035,087) Total non-operating revenues (expenses)(1,046,639) (1,033,479) INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (1,049,671) (1,726,289) Contributions - 247,246 Transfers 1,806,639 1,805,840 CHANGE IN NET POSITION 756,968$ 326,797 NET POSITION, JANUARY 1 10,966,506 Change in accounting principle (711,519) NET POSITION, JANUARY 1 (RESTATED)10,254,987 NET POSITION, DECEMBER 31 10,581,784$ (See independent auditor's report.) - 82 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended December 31, 2015 Original and Final Budget Actual ADMINISTRATION Personnel services 265,750$ 65,101$ Training and development 2,100 568 Contractual services 217,800 196,864 Commodities 4,800 4,901 Utilities 4,000 3,185 Capital outlay 72,419 69,197 Total administration 566,869 339,816 OPERATIONS Treatment plant Personnel services 964,200 952,740 Training and development 6,880 4,362 Contractual services 220,465 184,487 Commodities 129,000 83,020 Utilities 211,190 296,583 Miscellaneous 20,000 19,680 Capital outlay 51,478 46,520 Total treatment plant 1,603,213 1,587,392 Cleaning and maintenance Personnel services 235,500 230,247 Contractual services 54,000 41,753 Commodities 17,500 12,403 Total cleaning and maintenance 307,000 284,403 Construction Personnel services 273,750 235,417 Contractual services 20,500 19,300 Commodities 57,200 58,707 Total construction 351,450 313,424 Total operations 2,261,663 2,185,219 TOTAL OPERATING EXPENSES 2,828,532$ 2,525,035$ (See independent auditor's report.) - 83 - SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION SEWERAGE FUND For the Year Ended December 31, 2015 Balances Balances December 31, December 31, 2014 Additions Retirements 2015 Construction in progress -$ 7,224$ -$ 7,224$ Sewer system 4,585,564 240,022 11,120 4,814,466 Buildings and improvements 41,005,066 - - 41,005,066 TOTAL 45,590,630$ 247,246$ 11,120$ 45,826,756$ Balances Balances December 31,December 31, 2014 Additions Retirements 2015 Sewer system 1,483,762$ 98,439$ 11,120$ 1,571,081$ Buildings and improvements 2,556,265 874,609 - 3,430,874 TOTAL 4,040,027$ 973,048$ 11,120$ 5,001,955$ NET ASSET VALUE 40,824,801$ Assets Accumulated Depreciation VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 84 - SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL REFUSE FUND For the Year Ended December 31, 2015 Original and Final Budget Actual OPERATING REVENUES Charges for services Refuse billing 505,500$ 513,672$ Miscellaneous 42,000 17,583 Total operating revenues 547,500 531,255 OPERATING EXPENSES Operations Personnel services 92,250 83,069 Contractual services 1,371,500 1,324,639 Commodities 26,200 14,340 Capital outlay 11,649 11,649 Total operating expenses 1,501,599 1,433,697 OPERATING INCOME (LOSS)(954,099) (902,442) NON-OPERATING REVENUES (EXPENSES) Investment income 1,200 1,613 Property taxes 955,984 965,948 Total non-operating revenues (expenses)957,184 967,561 CHANGE IN NET POSITION 3,085$ 65,119 NET POSITION, JANUARY 1 372,940 NET POSITION, DECEMBER 31 438,059$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 85 - NONMAJOR ENTERPRISE FUNDS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended December 31, 2015 Original and Final Budget Actual OPERATING REVENUES Parking lot fees 218,000$ 270,799$ Total operating revenues 218,000 270,799 OPERATING EXPENSES Operations 366,750 258,052 Depreciation - 26,737 Total operating expenses 366,750 284,789 OPERATING INCOME (LOSS)(148,750) (13,990) NON-OPERATING REVENUES (EXPENSES) Investment income 1,400 834 Total non-operating revenues (expenses)1,400 834 CHANGE IN NET POSITION (147,350)$ (13,156) NET POSITION, JANUARY 1 1,411,940 NET POSITION, DECEMBER 31 1,398,784$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 86 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended December 31, 2015 Original and Final Budget Actual OPERATIONS Parking lots - village and federal funds Personnel services 20,500$ 18,814$ Contractual services 176,100 119,536 Commodities 750 - Utilities 3,300 2,814 Total parking lots - village and federal funds 200,650 141,164 Parking lots - village construction Personnel services 20,500 18,814 Contractual services 138,600 93,588 Commodities 1,000 - Utilities 6,000 4,486 Total parking lots - village construction 166,100 116,888 TOTAL OPERATING EXPENSES 366,750$ 258,052$ (See independent auditor's report.) - 87 - SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION COMMUTER PARKING LOT FUND For the Year Ended December 31, 2015 Balances Balances December 31,December 31, 2014 Additions Retirements 2015 Land 77,500$ -$ -$ 77,500$ Parking lot improvements 1,950,830 - - 1,950,830 TOTAL 2,028,330$ -$ -$ 2,028,330$ Balances Balances December 31, December 31, 2014 Additions Retirements 2015 Parking lot improvements 872,418$ 26,737$ -$ 899,155$ NET ASSET VALUE 1,129,175$ Assets Accumulated Depreciation VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 88 - INTERNAL SERVICE FUNDS VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2015 Vehicle and Equipment Garage Replacement Total CURRENT ASSETS Cash and investments -$ 4,860,642$ 4,860,642$ Receivables Accounts 5,219 - 5,219 Accrued interest - 2,417 2,417 Prepaid expenses 5,153 - 5,153 Inventory 148,382 - 148,382 Total current assets 158,754 4,863,059 5,021,813 CAPITAL ASSETS Depreciable - 4,125,686 4,125,686 Accumulated depreciation - (2,576,223) (2,576,223) Net capital assets - 1,549,463 1,549,463 Total assets 158,754 6,412,522 6,571,276 CURRENT LIABILITIES Accounts payable 15,419 3,634 19,053 Accrued payroll 6,277 - 6,277 Compensated absences payable 1,745 - 1,745 Due to other funds 1,899 - 1,899 Total current liabilities 25,340 3,634 28,974 LONG-TERM LIABILITIES Compensated absences payable 15,708 - 15,708 Total long-term liabilities 15,708 - 15,708 Total liabilities 41,048 3,634 44,682 NET POSITION Net investment in capital assets - 1,549,463 1,549,463 Unrestricted 117,706 4,859,425 4,977,131 TOTAL NET POSITION 117,706$ 6,408,888$ 6,526,594$ (See independent auditor's report.) - 89 - COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2015 Vehicle and Equipment Garage Replacement Total OPERATING REVENUES Interfund services Billings 348,243$ 683,051$ 1,031,294$ Miscellaneous 10,485 - 10,485 Total operating revenues 358,728 683,051 1,041,779 OPERATING EXPENSES Operations 347,188 - 347,188 Commodities - 112,300 112,300 Total operating expenses 347,188 112,300 459,488 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 11,540 570,751 582,291 Depreciation - 328,825 328,825 OPERATING INCOME (LOSS)11,540 241,926 253,466 NON-OPERATING REVENUES (EXPENSES) Sale of capital assets - 54,437 54,437 Investment income - 15,639 15,639 Total non-operating revenues (expenses)- 70,076 70,076 CHANGE IN NET POSITION 11,540 312,002 323,542 NET POSITION, JANUARY 1 106,166 6,096,886 6,203,052 NET POSITION, DECEMBER 31 117,706$ 6,408,888$ 6,526,594$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 90 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2015 Vehicle and Equipment Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services 344,302$ 683,051$ 1,027,353$ Receipts from miscellaneous revenue 10,485 - 10,485 Payments to suppliers (177,465) (108,666) (286,131) Payments to employees (211,141) - (211,141) Payments for interfund services 1,900 - 1,900 Net cash from operating activities (31,919) 574,385 542,466 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES None - - - Net cash from noncapital financing activities - - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - 54,437 54,437 Capital assets purchased - (264,101) (264,101) Net cash from capital and related financing activities - (209,664) (209,664) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 8 14,538 14,546 Net cash from investing activities 8 14,538 14,546 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (31,911) 379,259 347,348 CASH AND CASH EQUIVALENTS, JANUARY 1 31,911 4,481,383 4,513,294 CASH AND CASH EQUIVALENTS, DECEMBER 31 -$ 4,860,642$ 4,860,642$ RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income 11,540$ 241,926$ 253,466$ Adjustments to reconcile operating income to net cash from operating activities Depreciation - 328,825 328,825 (Increase) decrease in Accounts receivable (3,444) - (3,444) Prepaid expenses (497) - (497) Inventories (45,844) - (45,844) Increase (decrease) in Accounts payable 2,903 3,634 6,537 Interfund payables 1,900 - 1,900 Accrued payroll (1,752) - (1,752) Compensated absences payable 3,275 - 3,275 NET CASH FROM OPERATING ACTIVITIES (31,919)$ 574,385$ 542,466$ (See independent auditor's report.) - 91 - SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL GARAGE FUND For the Year Ended December 31, 2015 Original and Final Budget Actual OPERATING REVENUES Interfund services Billings 395,000$ 348,243$ Miscellaneous 10,000 10,485 Total operating revenues 405,000 358,728 OPERATING EXPENSES Operations 447,915 347,188 OPERATING INCOME (LOSS)(42,915) 11,540 NON-OPERATING REVENUES (EXPENSES) Investment income 300 - Total non-operating revenues (expenses)300 - CHANGE IN NET POSITION (42,615)$ 11,540 NET POSITION, JANUARY 1 106,166 NET POSITION, DECEMBER 31 117,706$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 92 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL GARAGE FUND For the Year Ended December 31, 2015 Original and Final Budget Actual OPERATING EXPENSES Public works department Personnel services 227,550$ 212,664$ Training and development 3,500 470 Contractual services 33,400 20,952 Commodities 122,700 85,549 Utilities 3,800 1,864 Capital outlay 56,965 25,689 TOTAL OPERATING EXPENSES 447,915$ 347,188$ (See independent auditor's report.) - 93 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL VEHICLE AND EQUIPMENT REPLACEMENT FUND For the Year Ended December 31, 2015 Original and Final Budget Actual OPERATING REVENUES Interfund services Billings 683,051$ 683,051$ Total operating revenues 683,051 683,051 OPERATING EXPENSES Capital outlay 738,892 321,964 Less capital assets capitalized (209,664) (209,664) Net operating expenses 529,228 112,300 OPERATING INCOME BEFORE DEPRECIATION 153,823 570,751 Depreciation - 328,825 OPERATING INCOME 153,823 241,926 NON-OPERATING REVENUES (EXPENSES) Sale of capital assets - 54,437 Investment income 20,000 15,639 Total non-operating revenues (expenses)20,000 70,076 CHANGE IN NET POSITION 173,823$ 312,002 NET POSITION, JANUARY 1 6,096,886 NET POSITION, DECEMBER 31 6,408,888$ (See independent auditor's report.) - 94 - FIDUCIARY FUNDS Original and Final Budget Actual ADDITIONS Contributions - employer 1,100,000$ 871,305$ Contributions - employee 385,000 517,457 Total contributions 1,485,000 1,388,762 Investment income Net appreciation (depreciation) in fair value of investments 500,000 (1,074,312) Interest and dividends earned on investments 600,000 1,099,476 Total investment income 1,100,000 25,164 Less investment expense (30,000) (29,688) Net investment income 1,070,000 (4,524) Total additions 2,555,000 1,384,238 DEDUCTIONS Benefits and refunds Pension payments 2,500,000 2,402,563 Separation refunds 15,000 40,452 Administrative 30,800 23,217 Total deductions 2,545,800 2,466,232 NET INCREASE (DECREASE)9,200$ (1,081,994) NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 41,594,356 December 31 40,512,362$ VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CHANGES IN PLAN NET POSITION - BUDGET AND ACTUAL POLICE PENSION FUND For the Year Ended December 31, 2015 (See independent auditor's report.) - 95 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2015 Balances Balances December 31, December 31, 2014 Additions Deductions 2015 ASSETS Cash and investments 2,620,135$ 304,886$ -$ 2,925,021$ Receivables - accrued interest 16 23 16 23 TOTAL ASSETS 2,620,151$ 304,909$ 16$ 2,925,044$ LIABILITIES Accounts payable 6,420$ 1,750$ 2,804$ 5,366$ Deposits payable 2,589,910 537,423 266,337 2,860,996 Other payables 23,821 34,861 - 58,682 TOTAL LIABILITIES 2,620,151$ 574,034$ 269,141$ 2,925,044$ ASSETS Cash and investments 2,589,910$ 272,836$ -$ 2,862,746$ TOTAL ASSETS 2,589,910$ 272,836$ -$ 2,862,746$ LIABILITIES Accounts payable -$ 1,750$ -$ 1,750$ Deposits payable 2,589,910 537,423 266,337 2,860,996 TOTAL LIABILITIES 2,589,910$ 539,173$ 266,337$ 2,862,746$ ASSETS Cash and investments 30,225$ 32,050$ -$ 62,275$ Receivables - accrued interest 16 23 16 23 TOTAL ASSETS 30,241$ 32,073$ 16$ 62,298$ LIABILITIES Accounts payable 6,420$ -$ 2,804$ 3,616$ Other payables 23,821 34,861 - 58,682 TOTAL LIABILITIES 30,241$ 34,861$ 2,804$ 62,298$ All Funds Deposit Fund East Shore Radio Network Fund (See independent auditor's report.) - 96 - SUPPLEMENTAL DATA VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2008 December 31, 2015 Date of Issue August 1, 2008 Date of Maturity December 1, 2028 Authorized Issue $5,000,000 Denomination of Bonds $5,000 Interest Rates 3.250%, 3.375%, 3.500%, 3.750%, 3.875%, 4.000%, 4.125%, 4.250% Principal Maturity Date December 1 Payable at Amalgamated Bank, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2015 220,000$ 147,794$ 367,794$ 2016 73,897$ 2016 73,897$ 2016 225,000 139,544 364,544 2017 69,772 2017 69,772 2017 235,000 131,106 366,106 2018 65,553 2018 65,553 2018 245,000 122,294 367,294 2019 61,147 2019 61,147 2019 255,000 112,800 367,800 2020 56,400 2020 56,400 2020 265,000 102,919 367,919 2021 51,459 2021 51,460 2021 275,000 92,319 367,319 2022 46,159 2022 46,160 2022 290,000 81,319 371,319 2023 40,659 2023 40,660 2023 300,000 69,356 369,356 2024 34,678 2024 34,678 2024 315,000 56,981 371,981 2025 28,491 2025 28,490 2025 330,000 43,987 373,987 2026 21,994 2026 21,993 2026 345,000 29,962 374,962 2027 14,981 2027 14,981 2027 360,000 15,300 375,300 2028 7,650 2028 7,650 3,660,000$ 1,145,681$ 4,805,681$ 572,840$ 572,841$ Tax Levy Interest Due on FUTURE PRINCIPAL AND INTEREST REQUIREMENTS (See independent auditor's report.) - 97 - VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2010A December 31, 2015 Date of Issue November 3, 2010 Date of Maturity December 1, 2030 Authorized Issue $12,500,000 Denomination of Bonds $5,000 Interest Rates 0.80% to 5.50% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2015 560,000$ 431,335$ 991,335$ 2016 215,667$ 2016 215,668$ 2016 565,000 418,455 983,455 2017 209,227 2017 209,228 2017 575,000 402,918 977,918 2018 201,459 2018 201,459 2018 585,000 385,380 970,380 2019 192,690 2019 192,690 2019 600,000 364,320 964,320 2020 182,160 2020 182,160 2020 610,000 341,220 951,220 2021 170,610 2021 170,610 2021 625,000 316,210 941,210 2022 158,105 2022 158,105 2022 645,000 289,335 934,335 2023 144,667 2023 144,668 2023 660,000 260,310 920,310 2024 130,155 2024 130,155 2024 680,000 229,290 909,290 2025 114,645 2025 114,645 2025 700,000 195,970 895,970 2026 97,985 2026 97,985 2026 720,000 160,270 880,270 2027 80,135 2027 80,135 2027 735,000 122,830 857,830 2028 61,415 2028 61,415 2028 750,000 83,875 833,875 2029 41,937 2029 41,938 2029 775,000 42,625 817,625 2030 21,312 2030 21,313 9,785,000$ 4,044,343$ 13,829,343$ 2,022,169$ 2,022,174$ Tax Levy Interest Due on FUTURE PRINCIPAL AND INTEREST REQUIREMENTS (See independent auditor's report.) - 98 - VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2011A December 31, 2015 Date of Issue October 17, 2011 Date of Maturity December 1, 2031 Authorized Issue $9,900,000 Denomination of Bonds $5,000 Interest Rates 1.00% to 3.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2015 280,000$ 226,215$ 506,215$ 2016 113,108$ 2016 113,107$ 2016 295,000 222,715 517,715 2017 111,358 2017 111,357 2017 310,000 218,290 528,290 2018 109,145 2018 109,145 2018 325,000 212,865 537,865 2019 106,433 2019 106,432 2019 340,000 206,365 546,365 2020 103,183 2020 103,182 2020 365,000 199,565 564,565 2021 99,783 2021 99,782 2021 380,000 192,265 572,265 2022 96,133 2022 96,132 2022 400,000 183,715 583,715 2023 91,858 2023 91,857 2023 425,000 174,115 599,115 2024 87,058 2024 87,057 2024 450,000 163,490 613,490 2025 81,745 2025 81,745 2025 475,000 151,340 626,340 2026 75,670 2026 75,670 2026 500,000 138,277 638,277 2027 69,139 2027 69,138 2027 355,000 123,277 478,277 2028 61,639 2028 61,638 2028 1,280,000 112,628 1,392,628 2029 56,314 2029 56,314 2029 1,335,000 74,228 1,409,228 2030 37,114 2030 37,114 2030 990,000 32,175 1,022,175 2031 16,088 2031 16,087 8,505,000$ 2,631,525$ 11,136,525$ 1,315,768$ 1,315,757$ Tax Levy Interest Due on (See independent auditor's report.) - 99 - VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2011B December 31, 2015 Date of Issue October 17, 2011 Date of Maturity December 1, 2028 Authorized Issue $12,500,000 Denomination of Bonds $5,000 Interest Rates 4.00% Principal Maturity Date December 1, 2028 Payable at Depository Trust Company, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2015 -$ 499,200$ 499,200$ 2016 249,600$ 2016 249,600$ 2016 - 499,200 499,200 2017 249,600 2017 249,600 2017 - 499,200 499,200 2018 249,600 2018 249,600 2018 - 499,200 499,200 2019 249,600 2019 249,600 2019 - 499,200 499,200 2020 249,600 2020 249,600 2020 - 499,200 499,200 2021 249,600 2021 249,600 2021 - 499,200 499,200 2022 249,600 2022 249,600 2022 - 499,200 499,200 2023 249,600 2023 249,600 2023 - 499,200 499,200 2024 249,600 2024 249,600 2024 - 499,200 499,200 2025 249,600 2025 249,600 2025 - 499,200 499,200 2026 249,600 2026 249,600 2026 - 499,200 499,200 2027 249,600 2027 249,600 2027 12,480,000 499,200 12,979,200 2028 249,600 2028 249,600 12,480,000$ 6,489,600$ 18,969,600$ 3,244,800$ 3,244,800$ Tax Levy Interest Due on FUTURE PRINCIPAL AND INTEREST REQUIREMENTS (See independent auditor's report.) - 100 - VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2012 December 31, 2015 Date of Issue February 21, 2012 Date of Maturity December 1, 2031 Authorized Issue $10,000,000 Denomination of Bonds $5,000 Interest Rates 1.25% to 2.75% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2015 -$ 234,763$ 234,763$ 2016 117,381$ 2016 117,382$ 2016 - 234,763 234,763 2017 117,381 2017 117,382 2017 135,000 234,763 369,763 2018 117,381 2018 117,382 2018 440,000 233,075 673,075 2019 116,537 2019 116,538 2019 455,000 227,575 682,575 2020 113,787 2020 113,788 2020 475,000 220,750 695,750 2021 110,375 2021 110,375 2021 495,000 212,438 707,438 2022 106,219 2022 106,219 2022 515,000 203,775 718,775 2023 101,887 2023 101,888 2023 540,000 193,475 733,475 2024 96,737 2024 96,738 2024 555,000 182,674 737,674 2025 91,337 2025 91,337 2025 580,000 170,188 750,188 2026 85,094 2026 85,094 2026 600,000 157,138 757,138 2027 78,569 2027 78,569 2027 455,000 142,138 597,138 2028 71,069 2028 71,069 2028 1,380,000 130,762 1,510,762 2029 65,381 2029 65,381 2029 1,425,000 92,812 1,517,812 2030 46,406 2030 46,406 2030 1,950,000 53,625 2,003,625 2031 26,812 2031 26,813 10,000,000$ 2,924,714$ 12,924,714$ 1,462,353$ 1,462,361$ Tax Levy Interest Due on (See independent auditor's report.) - 101 - VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2013 December 31, 2015 Date of Issue January 3, 2013 Date of Maturity December 1, 2031 Authorized Issue $9,075,000 Denomination of Bonds $5,000 Interest Rates 2.00% to 2.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2015 710,000$ 145,218$ 855,218$ 2016 72,609$ 2016 72,609$ 2016 730,000 131,018 861,018 2017 65,509 2017 65,509 2017 615,000 116,418 731,418 2018 58,209 2018 58,209 2018 335,000 104,118 439,118 2019 52,059 2019 52,059 2019 340,000 97,418 437,418 2020 48,709 2020 48,709 2020 345,000 90,618 435,618 2021 45,309 2021 45,309 2021 350,000 83,718 433,718 2022 41,859 2022 41,859 2022 350,000 76,718 426,718 2023 38,359 2023 38,359 2023 355,000 69,718 424,718 2024 34,859 2024 34,859 2024 360,000 62,618 422,618 2025 31,309 2025 31,309 2025 365,000 55,416 420,416 2026 27,708 2026 27,708 2026 375,000 48,118 423,118 2027 24,059 2027 24,059 2027 380,000 40,618 420,618 2028 20,309 2028 20,309 2028 390,000 32,542 422,542 2029 16,271 2029 16,271 2029 390,000 23,962 413,962 2030 11,981 2030 11,981 2030 675,000 15,183 690,183 2031 7,592 2031 7,591 7,065,000$ 1,193,419$ 8,258,419$ 596,710$ 596,709$ Tax Levy Interest Due on (See independent auditor's report.) - 102 - VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2015 December 31, 2015 Date of Issue May 19, 2015 Date of Maturity December 1, 2034 Authorized Issue $9,575,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 3.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2015 380,000$ 290,450$ 670,450$ 2016 145,225$ 2016 145,225$ 2016 395,000 279,050 674,050 2017 139,525 2017 139,525 2017 405,000 267,200 672,200 2018 133,600 2018 133,600 2018 415,000 255,050 670,050 2019 127,525 2019 127,525 2019 430,000 242,600 672,600 2020 121,300 2020 121,300 2020 440,000 229,700 669,700 2021 114,850 2021 114,850 2021 455,000 216,500 671,500 2022 108,250 2022 108,250 2022 470,000 202,850 672,850 2023 101,425 2023 101,425 2023 485,000 188,750 673,750 2024 94,375 2024 94,375 2024 495,000 174,200 669,200 2025 87,100 2025 87,100 2025 510,000 159,350 669,350 2026 79,675 2026 79,675 2026 530,000 144,050 674,050 2027 72,025 2027 72,025 2027 545,000 128,150 673,150 2028 64,075 2028 64,075 2028 560,000 111,800 671,800 2029 55,900 2029 55,900 2029 575,000 95,000 670,000 2030 47,500 2030 47,500 2030 595,000 77,750 672,750 2031 38,875 2031 38,875 2031 610,000 59,900 669,900 2032 29,950 2032 29,950 2032 630,000 41,600 671,600 2033 20,800 2033 20,800 2033 650,000 21,125 671,125 2034 10,562 2034 10,563 9,575,000$ 3,185,075$ 12,760,075$ 1,592,537$ 1,592,538$ Tax Levy Interest Due on (See independent auditor's report.) - 103 - STATISTICAL SECTION This part of the Village of Deerfield’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village’s overall financial health. Contents Page(s) Financial Trends These schedules contain trend information to help the reader understand how the Village’s financial performance and well-being have changed over time. 104-113 Revenue Capacity These schedules contain information to help the reader assess the Village’s most significant local revenue source, the property tax. 114-115 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. 116-119 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. 120-121 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. 122-124 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Fiscal Year 2007 2008 2009 2010 GOVERNMENTAL ACTIVITIES Net investment in capital assets 60,106,127$ 60,243,189$ 62,619,244$ 66,174,872$ Restricted 4,088,876 4,979,340 5,899,947 1,698,902 Unrestricted 18,185,786 22,238,210 18,140,003 14,799,887 TOTAL GOVERNMENTAL ACTIVITIES 82,380,789$ 87,460,739$ 86,659,194$ 82,673,661$ BUSINESS-TYPE ACTIVITIES Net investment in capital assets 16,926,626$ 19,176,339$ 22,289,499$ 25,794,886$ Unrestricted 4,841,210 3,120,381 2,071,153 1,332,314 TOTAL BUSINESS-TYPE ACTIVITIES 21,767,836$ 22,296,720$ 24,360,652$ 27,127,200$ PRIMARY GOVERNMENT Net investment in capital assets 77,032,753$ 79,419,528$ 84,908,743$ 91,969,758$ Restricted 4,088,876 4,979,340 5,899,947 1,698,902 Unrestricted 23,026,996 25,358,591 20,211,156 16,132,201 TOTAL PRIMARY GOVERNMENT 104,148,625$ 109,757,459$ 111,019,846$ 109,800,861$ * Eight months ended December 31, 2013 The Village implemented GASB Statement No.68 in 2015, causing a reduction in unrestricted net position. Data Source Audited Financial Statements VILLAGE OF DEERFIELD, ILLINOIS NET POSITION BY COMPONENT Last Ten Fiscal Years - 104 - 2011 2012 2013 2013*2014 2015 64,483,632$ 51,392,981$ 55,359,465$ 59,186,881$ 58,835,531$ 55,025,274$ 1,833,178 1,864,620 2,000,978 1,690,206 4,326,031 4,444,461 13,730,019 9,491,193 (3,773,495) 25,298,828 27,077,751 14,539,564 80,046,829$ 62,748,794$ 53,586,948$ 86,175,915$ 90,239,313$ 74,009,299$ 28,525,266$ 47,891,247$ 59,834,517$ 28,906,421$ 28,270,616$ 29,869,458$ 649,610 113,829 140,855 651,661 786,552 (194,463) 29,174,876$ 48,005,076$ 59,975,372$ 29,558,082$ 29,057,168$ 29,674,995$ 93,008,898$ 84,682,839$ 86,323,125$ 82,313,682$ 87,106,147$ 84,894,732$ 1,833,178 1,864,620 2,000,978 1,690,206 4,326,031 4,444,461 14,379,629 24,206,411 25,238,217 31,730,109 27,864,303 14,345,101 109,221,705$ 110,753,870$ 113,562,320$ 115,733,997$ 119,296,481$ 103,684,294$ - 105 - Fiscal Year 2007 2008 2009 2010 EXPENSES Governmental Activities General government 4,602,570$ 4,569,982$ 5,228,097$ 9,833,315$ Public safety 7,154,536 7,232,143 7,715,014 8,543,631 Highways and streets 5,822,340 4,451,069 7,317,060 10,985,018 Interest 295,435 209,430 215,464 193,105 Total governmental activities expenses 17,874,881 16,462,624 20,475,635 29,555,069 Business-Type Activities Water 4,264,602 6,224,262 3,993,964 4,103,889 Sewerage 2,450,965 2,735,053 3,040,082 2,643,276 Refuse disposal 1,496,548 1,520,190 1,590,167 1,599,244 Commuter parking 246,153 210,307 282,534 262,458 Total business-type activities expenses 8,458,268 10,689,812 8,906,747 8,608,867 TOTAL PRIMARY GOVERNMENT EXPENSES 26,333,149$ 27,152,436$ 29,382,382$ 38,163,936$ PROGRAM REVENUES Governmental Activities Charges for services General government 1,743,818$ 1,480,008$ 1,645,678$ 1,862,200$ Public safety 911,421 935,302 956,468 866,510 Highways and streets 69,216 75,400 59,609 47,219 Operating grants and contributions 544,823 524,423 490,768 474,526 Capital grants and contributions 213,575 1,492,153 894,545 2,195,963 Total governmental activities program revenues 3,482,853 4,507,286 4,047,068 5,446,418 Business-Type Activities Charges for services Water 4,250,938 4,365,767 3,647,017 3,567,809 Sewerage 2,372,061 2,396,295 2,306,028 2,320,123 Refuse disposal 623,681 624,349 623,738 622,629 Commuter parking 204,177 212,585 218,770 209,165 Capital grants and contributions 1,002,909 441,605 - - Total business-type activities program revenues 8,453,766 8,040,601 6,795,553 6,719,726 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 11,936,619$ 12,547,887$ 10,842,621$ 12,166,144$ NET (EXPENSE) REVENUE Governmental activities (14,392,028)$ (11,955,338)$ (16,428,567)$ (24,108,651)$ Business-type activities (4,502) (2,649,211) (2,111,194) (1,889,141) TOTAL PRIMARY GOVERNMENT NET (EXPENSE) REVENUE (14,396,530)$ (14,604,549)$ (18,539,761)$ (25,997,792)$ VILLAGE OF DEERFIELD, ILLINOIS CHANGE IN NET POSITION Last Ten Fiscal Years - 106 - 2011 2012 2013 2013*2014 2015 5,477,968$ 24,267,281$ 18,988,356$ 5,755,847$ 7,756,784$ 8,182,572$ 8,497,498 8,388,066 8,572,034 6,256,914 9,189,101 11,870,633 7,749,726 6,602,895 5,753,656 6,208,891 6,286,456 8,065,953 393,054 1,098,736 1,791,625 628,554 685,495 1,113,073 22,118,246 40,356,978 35,105,671 18,850,206 23,917,836 29,232,231 4,215,482 4,455,971 4,625,679 3,153,643 4,345,300 4,517,289 2,846,388 2,996,805 3,267,868 3,147,664 4,691,951 4,533,170 1,600,736 1,307,850 1,343,691 953,301 1,440,045 1,433,697 322,431 337,337 352,088 243,017 331,951 284,789 8,985,037 9,097,963 9,589,326 7,497,625 10,809,247 10,768,945 31,103,283$ 49,454,941$ 44,694,997$ 26,347,831$ 34,727,083$ 40,001,176$ 2,011,535$ 1,833,930$ 2,290,768$ 1,811,306$ 3,812,004$ 2,214,956$ 873,947 986,382 1,047,217 783,151 1,167,096 1,218,489 73,968 66,279 263,607 234,034 442,918 606,549 582,734 715,849 1,140,504 890,860 612,569 445,554 360,539 434,225 75,864 58,791 1,306,043 442,690 3,902,723 4,036,665 4,817,960 3,778,142 7,340,630 4,928,238 3,777,700 3,891,387 4,295,580 3,006,491 3,763,753 3,701,281 2,450,088 2,499,701 2,892,170 2,065,472 2,645,264 2,724,235 608,475 461,887 476,926 324,969 500,449 513,672 204,236 201,426 223,381 187,386 226,450 270,799 2,963,996 19,620,003 12,566,460 1,802,087 173,695 2,249,741 10,004,495 26,674,404 20,454,517 7,386,405 7,309,611 9,459,728 13,907,218$ 30,711,069$ 25,272,477$ 11,164,547$ 14,650,241$ 14,387,966$ (18,215,523)$ (36,320,313)$ (30,287,711)$ (15,072,064)$ (16,577,206)$ (24,303,993)$ 1,019,458 17,576,441 10,891,928 (115,808) (3,514,422) (1,309,217) (17,196,065)$ (18,743,872)$ (19,395,783)$ (15,187,872)$ (20,091,628)$ (25,613,210)$ - 107 - Fiscal Year 2007 2008 2009 2010 GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities Taxes Property and replacement 6,542,142$ 6,617,648$ 7,093,819$ 8,618,052$ Home rule sales 1,832,281 1,913,268 2,448,385 2,525,183 Simplified telecommunications 323,358 354,984 347,666 326,528 Other 3,891,356 4,065,091 3,684,318 3,097,643 Intergovernmental 4,533,261 4,552,097 4,438,194 4,995,509 Investment income 1,557,378 1,253,533 486,398 166,844 Miscellaneous 210,116 278,667 260,971 393,359 Contributions - - - - Transfers (out)(1,600,000) (2,000,000) (3,132,729) - Total governmental activities 17,289,892 17,035,288 15,627,022 20,123,118 Business-Type Activities Property taxes 859,502 780,785 807,708 807,968 Investment income 188,864 192,967 49,427 8,304 Miscellaneous 214,481 204,343 185,262 146,400 Transfers in 1,600,000 2,000,000 3,132,729 - Total business-type activities 2,862,847 3,178,095 4,175,126 962,672 TOTAL PRIMARY GOVERNMENT 20,152,739$ 20,213,383$ 19,802,148$ 21,085,790$ CHANGE IN NET POSITION Governmental activities 2,897,864$ 5,079,950$ (801,545)$ (3,985,533)$ Business-type activities 2,858,345 528,884 2,063,932 (926,469) TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION 5,756,209$ 5,608,834$ 1,262,387$ (4,912,002)$ * Eight months ended December 31, 2013 Data Source Audited Financial Statements VILLAGE OF DEERFIELD, ILLINOIS Last Ten Fiscal Years CHANGE IN NET POSITION (Continued) - 108 - 2011 2012 2013 2013*2014 2015 2,278,574$ 2,822,939$ 4,410,633$ 5,010,070$ 5,260,112$ 5,527,577$ 2,725,330 3,121,749 3,665,374 2,257,183 3,413,920 2,941,572 644,129 1,752,850 1,430,126 936,501 1,261,799 1,707,745 4,396,881 4,684,153 3,438,882 2,398,124 3,721,354 3,797,848 5,281,422 5,968,953 8,474,800 5,396,719 8,316,948 7,697,052 92,855 115,175 117,770 - (221,419) 130,060 169,500 556,459 252,924 279,991 704,909 676,294 - - - - - 732,831 - - - - (1,817,019) (1,805,840) 15,588,691 19,022,278 21,790,509 16,278,588 20,640,604 21,405,139 832,264 889,586 890,214 906,951 936,361 965,948 4,530 3,701 3,024 (4,588) (14,786) 4,055 191,424 360,472 211,867 174,010 260,128 218,479 - - - - 1,817,019 1,805,840 1,028,218 1,253,759 1,105,105 1,076,373 2,998,722 2,994,322 16,616,909$ 20,276,037$ 22,895,614$ 17,354,961$ 23,639,326$ 24,399,461$ (2,626,832)$ (17,298,035)$ (8,497,202)$ 1,206,524$ 4,063,398$ (2,898,854)$ 2,047,676 18,830,200 11,970,296 965,153 (500,914) 1,685,105 (579,156)$ 1,532,165$ 3,473,094$ 2,171,677$ 3,562,484$ (1,213,749)$ - 109 - Fiscal Year 2007 2008 2009 2010 GENERAL FUND Reserved 3,219,255$ 2,233,242$ 453,124$ 447,892$ Unreserved 16,968,193 14,913,911 16,155,829 15,619,459 Nonspendable for Note receivable - - - - Inventory - - - - Prepaid items - - - - Advance Unrestricted Assigned for debt service - - - - Assigned for capital projects - - - - Subsequent year's budget - - - - Unassigned - - - - TOTAL GENERAL FUND 20,187,448$ 17,147,153$ 16,608,953$ 16,067,351$ ALL OTHER GOVERNMENTAL FUNDS Reserved 4,088,876$ 4,979,340$ 5,899,947$ 1,698,902$ Unreserved, reported in Special Revenue Funds - - - - Capital Project Funds 976,571 1,804,245 1,928,286 230,653 Restricted for Capital projects - - - - Maintenance of roadways - - - - Public safety - - - - Debt service - - - - Unrestricted Assigned for Debt service - - - - Capital projects - - - - TOTAL ALL OTHER GOVERNMENTAL FUNDS 5,065,447$ 6,783,585$ 7,828,233$ 1,929,555$ * Eight months ended December 31, 2013 Data Source Audited Financial Statements Note:The Village implemented GASB Statement No.54 for the year ended April 30,2012.This resulted in a change in fund balance classification. The Village has not elected to report this change retroactively. VILLAGE OF DEERFIELD, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years - 110 - 2011 2012 2013 2013*2014 2015 443,532$ -$ -$ -$ -$ -$ 16,566,828 - - - - - - 100,000 90,000 80,000 70,000 60,000 - 55,190 27,824 54,477 42,968 21,031 - 441,382 459,247 752,402 713,737 707,640 - 833,396 818,344 831,850 - - - 1,650,000 1,400,000 1,500,000 1,200,000 1,000,000 - - - - - 2,960,593 - 16,206,557 17,002,357 16,815,607 19,667,419 15,223,752 17,010,360$ 19,286,525$ 19,797,772$ 20,034,336$ 21,694,124$ 19,973,016$ 6,927,256$ -$ -$ -$ -$ -$ - - - - - - 417,104 - - - - - - 14,581,925 1,515,401 40,280 - 696,658 - 601,423 633,057 325,768 927,908 388,546 - 1,263,197 1,367,921 1,364,438 1,214,895 1,130,293 - - - - 2,183,228 2,925,622 - 286,753 841,240 1,473,632 25,299 58,021 - 1,088,012 2,154,351 749,533 2,276,297 4,707,033 7,344,360$ 17,821,310$ 6,511,970$ 3,953,651$ 6,627,627$ 9,906,173$ - 111 - Fiscal Year 2007 2008 2009 2010 REVENUES Taxes 17,122,400$ 17,503,089$ 18,012,382$ 19,562,915$ Licenses and permits 1,454,044 1,161,276 1,271,817 1,366,472 Intergovernmental 762,016 713,470 1,349,486 951,183 Charges for services 239,668 716,522 727,445 654,662 Fines and forfeitures 701,606 261,495 251,680 227,686 Contribution from library - - - - Investment income 1,557,378 1,253,533 486,398 166,844 Miscellaneous 514,765 614,796 698,839 821,396 Total revenues 22,351,877 22,224,181 22,798,047 23,751,158 EXPENDITURES General government 4,208,961 4,827,462 5,156,342 12,471,646 Public safety 7,114,542 7,273,503 7,656,333 8,322,821 Highways and streets 2,333,709 3,034,841 3,536,206 2,916,045 Capital outlay 8,260,631 4,204,984 6,735,684 6,207,466 Debt service Principal 2,000,000 2,000,000 4,000,000 175,000 Interest 302,600 216,600 184,939 193,150 Total expenditures 24,220,443 21,557,390 27,269,504 30,286,128 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,868,566) 666,791 (4,471,457) (6,534,970) OTHER FINANCING SOURCES (USES) Transfers in 4,702,000 4,216,000 8,629,795 923,389 Transfers (out)(6,302,000) (6,216,000) (8,629,795) (923,389) Bonds issued - - 5,000,000 - Premium (discount) on bonds issued - - (30,867) - Sale of capital assets 20,870 11,052 8,772 94,690 Total other financing sources (uses)(1,579,130) (1,988,948) 4,977,905 94,690 NET CHANGE IN FUND BALANCES (3,447,696)$ (1,322,157)$ 506,448$ (6,440,280)$ DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 14.43%12.77%20.38%1.53% * Eight months ended December 31, 2013 Data Source Audited Financial Statements VILLAGE OF DEERFIELD, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years - 112 - 2011 2012 2013 2013*2014 2015 15,326,336$ 18,350,644$ 12,220,016$ 9,876,878$ 14,070,158$ 14,955,266$ 1,431,793 1,173,799 1,645,735 1,277,977 3,062,263 1,464,015 944,344 1,152,141 9,692,051 6,342,610 9,599,274 8,102,221 687,515 709,146 710,049 565,213 1,004,048 1,114,515 262,542 317,262 342,740 236,390 307,744 292,284 - - 763,572 742,476 730,381 732,831 92,855 115,175 117,770 (164,823) (221,419) 130,060 715,868 1,219,949 1,113,205 998,549 1,218,373 1,348,025 19,461,253 23,038,116 26,605,138 19,875,270 29,770,822 28,139,217 5,328,331 6,436,048 7,783,224 5,063,339 7,353,449 8,266,520 8,407,416 8,352,887 8,540,957 6,117,121 8,963,170 9,136,003 3,032,200 3,091,770 2,806,358 2,326,884 2,924,874 2,816,855 8,278,643 23,114,852 24,479,003 5,280,135 2,777,322 11,958,472 180,000 710,000 1,355,000 928,000 935,000 962,000 237,997 1,180,062 1,770,522 699,324 693,655 674,859 25,464,587 42,885,619 46,735,064 20,414,803 23,647,470 33,814,709 (6,003,334) (19,847,503) (20,129,926) (539,533) 6,123,352 (5,675,492) 7,506,834 22,440,459 14,290,621 3,152,954 2,354,180 10,213,964 (7,506,834) (22,440,459) (14,290,621) (4,943,562) (4,171,199) (12,019,804) 12,500,000 32,400,000 9,075,000 - - 9,575,000 (69,013) 79,791 253,502 - - 422,335 30,161 20,827 3,331 8,386 27,431 - 12,461,148 32,500,618 9,331,833 (1,782,222) (1,789,588) 8,191,495 6,457,814$ 12,653,115$ (10,798,093)$ (2,321,755)$ 4,333,764$ 2,516,003$ 2.09%4.75%7.16%9.02%7.35%6.60% - 113 - SALES TAX BY CATEGORY Last Ten Calendar Years Calendar Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General merchandise 217,623$ 268,413$ 181,355$ 215,487$ 222,696$ 233,408$ 222,366$ 224,653$ 247,348$ 208,851$ Food 709,999 712,229 656,766 708,194 772,736 798,668 796,940 743,285 870,464 874,095 Drinking and eating places 666,821 749,845 756,872 931,610 932,074 970,059 1,018,539 1,032,833 1,108,407 1,128,992 Apparel 189,351 195,358 178,925 205,112 207,981 240,746 205,856 180,876 210,488 164,410 Furniture and H.H. and radio 836,653 784,397 676,075 644,981 752,175 713,431 473,808 345,052 291,839 288,538 Lumber, building hardware 681,704 614,752 532,637 622,406 610,072 590,742 564,884 583,287 642,214 542,259 Automobile and filling stations 317,435 257,719 283,125 284,289 434,095 513,421 348,318 358,919 510,550 314,993 Drugs and miscellaneous retail 1,899,467 1,877,780 2,184,421 3,211,071 2,625,382 3,625,900 5,476,027 4,692,108 4,937,251 4,069,522 Agriculture and all others 788,059 737,298 711,157 895,708 852,588 1,138,377 1,005,454 966,396 914,323 839,745 Manufacturers 125,147 93,150 143,018 196,451 203,171 214,511 237,039 226,254 251,653 266,575 TOTAL 6,432,259$ 6,290,941$ 6,304,351$ 7,915,309$ 7,612,970$ 9,039,263$ 10,349,231$ 9,353,663$ 9,984,537$ 8,697,980$ Village direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00% Village home rule rate 0.00%0.50%0.50%0.50%1.00%1.00%1.00%1.00%1.00%1.00% Data Source Illinois Department of Revenue VILLAGE OF DEERFIELD, ILLINOIS - 114 - VILLAGE OF DEERFIELD, ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years Cook Village Lake RTA Cook County RTA Home Village Calendar County Lake County County Home Rule Cook County Rule Direct State Year Rate Rate Rate Rate Rate Rate Rate Rate 2006 0.25%0.25%0.25%0.75%0.75%0.50%1.00%5.00% 2007 0.25%0.25%0.25%0.75%0.75%0.50%1.00%5.00% 2008 0.25%0.75%0.25%1.75%1.00%0.50%1.00%5.00% 2009 0.25%0.75%0.25%1.75%1.00%1.00%1.00%5.00% 2010 0.25%0.75%0.25%1.25%1.00%1.00%1.00%5.00% 2011 0.25%0.75%0.25%1.00%1.00%1.00%1.00%5.00% 2012 0.25%0.75%0.25%0.75%1.00%1.00%1.00%5.00% 2013 0.25%0.75%0.25%0.75%1.00%1.00%1.00%5.00% 2014 0.25%0.75%0.25%0.75%1.00%1.00%1.00%5.00% 2015 0.25%0.75%0.25%0.75%1.00%1.00%1.00%5.00% Data Source Village and County Records - 115 - RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Business-Type Activities Activities Percentage General General Total of Obligation Obligation Primary Personal Per Bonds Bonds Government Income*Capita* 6,000,000$ 2,585,000$ 8,585,000$ 1.25%466.07$ 4,000,000 2,185,000 6,185,000 0.90%335.78 5,000,000 1,775,000 6,775,000 0.98%367.81 4,825,000 1,350,000 6,175,000 0.90%335.23 17,145,000 915,000 18,060,000 2.13%940.43 48,835,000 465,000 49,300,000 5.86%2,678.62 56,555,000 - 56,555,000 6.55%3,063.98 23,164,958 31,997,146 55,162,104 6.52%2,989.49 22,223,327 31,230,833 53,454,160 5.97%2,890.86 31,252,022 30,460,961 61,712,983 5.29%3,340.17 * **Eight months ended December 31, 2013 Note: Details of the Village's outstanding debt can be found in the notes to financial statements. Data Source Audited Financial Statements 2013 2013** 2014 2015 See the schedule of Demographic and Economic Statistics on page 120 for personal income and population data. 2008 2009 2010 2011 2012 VILLAGE OF DEERFIELD, ILLINOIS Fiscal Year Ended 2007 - 116 - (1)(1) Governmental Business-Type (1)Percentage of Activities Activities Less Amounts Estimated General General Available Actual Taxable Fiscal Obligation Obligation In Debt Value of Per Year Bonds Bonds Service Fund Total Property Capita 2007 6,000,000$ 2,585,000$ 533,758$ 8,051,242$ 0.20%437.09$ 2008 4,000,000 2,185,000 560,711 5,624,289 0.12%305.34 2009 5,000,000 1,775,000 472,761 6,302,239 0.13%342.14 2010 4,825,000 1,350,000 105,915 6,069,085 0.13%329.48 2011 17,145,000 915,000 101,518 17,958,482 1.18%935.14 2012 48,835,000 465,000 286,753 49,013,247 3.52%2,656.26 2013 56,555,000 - 113,074 56,441,926 4.36%3,058.85 2013**23,164,958 31,997,146 1,473,632 53,688,472 4.15%2,895.70 2014*22,223,327 31,230,833 2,208,527 51,245,633 4.17%2,770.89 2015 31,252,022 30,460,961 2,983,643 58,729,340 4.78%3,178.68 * 2014 EAV used as it is the most recent data available ** Eight months ended December 31, 2013 Data Source (1) Audited Financial Statements VILLAGE OF DEERFIELD, ILLINOIS RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years - 117 - *** (1)(2) Gross Percentage *** General of Debt Village's Obligation Applicable to Share Governmental Unit Debt Government of Debt Village of Deerfield 21,131,000$ 100.00%61,070,000$ Lake County (1)103,460,000 4.84%5,007,464 Lake County Forest Preserve 281,820,000 4.84%13,640,088 Cook County 3,553,331,750 0.10%3,553,332 Cook County Forest Preserve 172,535,000 0.10%172,535 Deerfield Park District (2)2,230,000 97.60%2,176,480 Park District of Highland Park (3)15,465,000 1.28%197,952 Northbrook Park District 5,160,000 3.47%179,052 Lake Elementary School District No. 109 (3)23,475,000 76.15%17,876,213 Lake High School District No. 113 99,815,000 29.28%29,225,832 Cook Northfield Township High School District No. 225 90,740,101 2.87%2,604,241 Community College of Lake County No. 532 74,320,000 5.11%3,797,752 Oakton Community College District No. 535 35,370,000 0.68%240,516 Metropolitan Water Reclamation District of Greater Chicago (4)2,422,620,000 0.10%2,422,620 Total gross debt 6,901,472,851 142,164,077 Less Debt Service Fund amount available - Village of Deerfield 2,983,643 2,983,643 TOTAL DIRECT AND OVERLAPPING DEBT 6,898,489,208$ 139,180,434$ (1) (2)Excludes Self-Supporting debt. (3)Includes Debt Cerfiticates that are not supported by a property tax levy. (4)Includes Illinois Environmental Protection Agency loans. *Most recent data available. ** ***Amount of column (2) multiplied by amount in column (1). Data Sources Lake and Cook County Clerk's Offices VILLAGE OF DEERFIELD, ILLINOIS DIRECT AND OVERLAPPING BONDED DEBT - December 31, 2015 Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation. GOVERNMENTAL ACTIVITIES Excludes Alternate Revenue Source Bonds. - 118 - LEGAL DEBT MARGIN INFORMATION December 31, 2015 EQUALIZED ASSESSED VALUATION - 2014*1,227,301,586$ Non-Home Rule Legal Debt Limit - 8.625%105,854,762 Amount of debt applicable to limit: General Obligation Bonds Series 2008 3,660,000 General Obligation Bonds Series 2010A 9,785,000 General Obligation Bonds Series 2011A 8,505,000 General Obligation Bonds Series 2011B 12,480,000 General Obligation Bonds Series 2012 10,000,000 General Obligation Bonds Series 2013 7,065,000 General Obligation Bonds Series 2015 9,575,000 Total amount of debt applicable to limit:61,070,000 NON-HOME RULE LEGAL DEBT MARGIN 44,784,762$ * Most Recent EAV Available VILLAGE OF DEERFIELD, ILLINOIS Illustrative Computation of Debt Margin If Government Were Not a Home Rule Municipality The Village is a home rule municipality and,as such,has no debt limitations.If,however,the Village were a non-home rule municipality, its available debt limit would be as follows: The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin: To date, the General Assembly has set no limits for home rule municipalities. The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities,payable from ad valorem property tax receipts,only in excess of the following percentages of the assessed value of its taxable property...(2)if its population is more than 25,000 and less than 500,000 an aggregate of one per cent:...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. - 119 - Per Capita Median Fiscal Personal Household Unemployment Year Population Income Income Rate 2007 *18,420 37,361$ 107,194$ 2.80% 2008 *18,420 37,361 107,194 3.40% 2009 *18,420 37,361 107,194 4.90% 2010 *18,420 37,361 107,194 7.10% 2011 **19,204 44,127 131,585 5.60% 2012 ***18,405 45,703 131,534 5.75% 2013 ****18,458 46,782 132,785 5.30% 2013 *****18,452 45,823 129,187 5.85% 2014 ******18,408 48,431 135,881 5.05% 2015 *******18,476 63,190 135,754 4.20% Data Sources * U.S. Census Bureau "Census 2000 Summary Files" and U.S. Bureau of Labor Statistics ** U.S. Census Bureau "2005-2009 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics *** U.S. Census Bureau "2006-2010 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics **** U.S. Census Bureau, "2007-2011 American Community Survey 5-Yr. Estimates" ***** U.S. Census Bureau, "2008-2012 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics ****** U.S. Census Bureau, "2009-2013 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics ******* U.S. Census Bureau, "2010-2014 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics VILLAGE OF DEERFIELD, ILLINOIS DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years - 120 - % of % of Total Village Total Village Employer Employees Rank Population Employees Rank Population Walgreen Co.9,600 1 51.96%2,500 1 13.57% Baxter International Inc 4,000 2 21.65%1,000 2 5.43% Takeda Pharmaceuticals North 1,700 3 9.20% Mondelez International, Inc.1,200 4 6.49% Essendant Inc (formerly United Stationers)600 5 3.25% Deerfield Park District 500 6 2.71% Deerfield School District 109 500 7 2.71%400 6 2.17% Siemens Healthcare 310 8 1.68% Beam Suntory Inv (formerly Beam Inc.)260 9 1.41%250 8 1.36% Meridian Group Intl Inc 255 10 1.38% Hewitt Associates 0.00%800 3 4.34% Illinois Student Assistance Commission 0.00%515 4 2.80% Fujisawa USA Incorporated 0.00%450 5 2.44% Wm M. Mercer Inc.0.00%250 7 1.36% Township High School District 113 246 9 1.34% Shand Morahan 0.00%240 10 1.30% TOTAL 18,925 102.43%6,651 36.11% Village population 18,476 18,420 Data Source Lake County Partners VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2015 2006 - 121 - Function/Program 2007 2008 2009 2010 2011 2012 2013 2013*2014 2015 GENERAL GOVERNMENT Village Manager 3 3 3 3 2 4 5 5 5 5 Finance 10 10 10 10 10 8 8 8 8 8 Engineering 3 3 3 3 2 2 2 2 2 3 Community Development 7 7 7 7 7 7 7 7 8 8 PUBLIC WORKS Administration 4 4 4 4 4 4 4 4 4 4 Street Maintenance 7 7 7 7 7 7 7 7 7 7 Utilities Maintenance 14 15 15 15 14 14 14 14 14 13 Sewage Treatment Plant 8 8 8 8 8 8 7 7 7 7 Garage 2 2 2 2 2 2 2 2 2 2 PUBLIC SAFETY Police Administration 7 7 7 7 7 7 7 7 7 7 Communications 8 8 8 8 8 8 8 8 8 8 Investigations/Youth 7 7 7 7 7 7 7 7 7 7 Patrol 31 31 31 31 31 31 33 33 34 34 TOTAL 111 112 112 112 109 109 111 111 113 113 * Eight months ended December 31, 2013 Data Source Village budget office VILLAGE OF DEERFIELD, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years - 122 - Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PUBLIC SAFETY Police Physical arrests 532 587 568 415 575 513 485 367 337 336 Parking violations 2,625 2,690 2,385 1,656 1,509 1,343 2,628 2,307 2,560 1,709 Traffic violations 4,119 4,278 4,255 3,703 3,106 3,391 3,367 3,550 3,452 3,765 PUBLIC WORKS Street resurfacing (miles)3.18 3.21 3.14 0.89 0.86 1.83 2.80 1.76 1.96 6.45 WATER Water main breaks 62 77 47 59 76 75 78 108 56 61 Average daily consumption (gallons)2,998,220 3,128,000 2,566,000 2,630,000 2,683,526 2,522,061 2,805,124 2,730,295 2,571,000 2,380,000 Peak daily consumption (gallons)4,476,210 5,894,000 5,279,000 4,510,000 5,009,819 5,502,196 5,482,125 5,069,827 3,903,000 3,800,000 WASTEWATER Average daily treatment (gallons)3,204,822 2,963,972 3,324,536 3,313,068 2,930,000 3,530,000 2,395,000 2,761,000 3,452,000 3,180,000 Data Source Various village departments VILLAGE OF DEERFIELD, ILLINOIS OPERATING INDICATORS Last Ten Calendar Years - 123 - Function/Program 2007 2008 2009 2010 2011 2012 2013 2013*2014 2015 PUBLIC SAFETY Police Stations 1 1 1 1 1 1 1 1 1 1 Number of Police Officers 41 41 41 41 41 41 42 43 40 40 PUBLIC WORKS Arterial streets (miles)8 8 8 8 8 8 8 8 8 8 Residential streets (miles)68 68 68 68 68 68 68 68 68 68 Traffic signals 10 10 10 10 10 10 10 10 10 10 WATER Water mains (miles)84 84 84 88 90 90 90 90 90 90 Fire hydrants 1,203 1,203 1,203 1,212 1,217 1,208 1,220 1,205 1,208 1,206 Storage capacity (gallons)8,000,000 8,000,000 8,000,000 8,000,000 8,200,850 8,200,850 8,200,850 8,200,850 8,200,850 8,200,850 WASTEWATER Sewers (miles)80 80 80 80 80 80 80 80 80 80 Treatment capacity (gallons)8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 9,200,000 9,200,000 9,200,000 9,200,000 9,200,000 * Eight months ended December 31, 2013 Data Source Various village departments VILLAGE OF DEERFIELD, ILLINOIS CAPITAL ASSET STATISTICS Last Ten Fiscal Years - 124 - Debt Information Direct Debt : General Obligation Bonds $61,070,000 Gross General Percent Village's Share Obligation Debt Applicable of Debt Overlapping Debt : Lake County (1)103,460,000 4.840%5,007,464 Lake County Forest Preserve 281,820,000 4.840%13,640,088 Cook County 3,553,331,750 0.100%3,553,332 Cook County Forest Preserve 172,535,000 0.100%172,535 Deerfield Park District (2)2,230,000 97.600%2,176,480 Park District of Highland Park (3)15,465,000 1.280%197,952 Northbrook Park District 5,160,000 3.470%179,052 Lake School District No. 109 (3)23,475,000 76.150%17,876,213 Lake High School District No. 113 99,815,000 29.280%29,225,832 Cook High School District No. 225 90,740,101 2.870%2,604,241 Community College No. 532 74,320,000 5.110%3,797,752 Community College No. 535 35,370,000 0.680%240,516 Metro Water Reclamation District (4)2,422,620,000 0.100%2,422,620 Total Overlapping Debt $81,094,077 Total Direct and Overlapping Debt $142,164,077 Source: Lake and Cook County Clerk's Offices. (1) Excludes Alternate Revenue Bonds. (2) Excludes Self-Supporting debt. (3) Includes Debt Certificates that are not supported by a property tax levy. (4) Includes Illinois Environmental Protection Agency loans. - 125 - Statement of Indebtedness Amount % of % of Estimated Applicable EAV True Value Per Capita* 2014 Equalized Assessed Valuation (1)1,227,301,586$ 100.00%33.33%66,427 Estimated True Value 3,681,904,758 300.00%100.00%199,280 Direct Debt 61,070,000 4.98%1.66%3,305 Overlapping Debt 81,094,077 6.61%2.20%4,389 Direct and Overlapping Debt 142,164,077 11.58%3.86%7,695 *Population of 18,476 based on 2015 CAFR. (1) Reflects 2014 Lake County EAV and 2014 Cook County EAV. - 126 - Equalized Assessed Valuation 2010 2011 2012 2013 2014 Residential $1,108,117,369 $1,012,534,720 $938,649,978 898,117,390$ 909,922,822$ Commerical 397,215,326 364,721,276 340,275,838 316,522,689 311,130,618 Industrial 17,827,124 15,266,443 14,338,152 13,777,096 6,248,146 Total $1,523,159,819 $1,392,522,439 $1,293,263,968 $1,228,417,175 $1,227,301,586 Source: Offices of Lake and Cook County Clerk. Lake County Residential $1,107,301,252 $1,011,816,893 $937,972,021 897,492,359$ 909,334,162$ Farm - - - - - Commerical 210,585,916 220,050,035 207,908,753 191,692,037 184,960,326 Industrial 2,723,342 2,713,600 2,562,167 2,460,043 2,481,937 Total $1,320,610,510 $1,234,580,528 $1,148,442,941 1,091,644,439$ 1,096,776,425$ Cook County Residential 816,117$ 717,827$ 677,957$ 625,031$ 588,660$ Farm - - - - - Commerical 186,629,410 144,671,241 132,367,085 124,830,652 126,170,292 Industrial 15,103,782 12,552,843 11,775,985 11,317,053 3,766,209 Total $202,549,309 157,941,911$ 144,821,027$ 136,772,736$ 130,525,161$ - 127 - Tax Rates Per $100 of Assessed Valuation 2010 2011 2012 2013 2014 Bonds and Interest 0.034 0.098 0.159 0.175 0.251 Corporate 0.143 0.154 0.164 0.184 0.000 Garbage 0.059 0.064 0.071 0.077 0.080 All Other 0.003 0.004 0.063 0.067 0.199 Total Village 0.239 0.320 0.457 0.503 0.530 County Including Forest Preserve 0.703 0.755 0.820 0.881 0.893 Deerfield Elementary Dist. 109 2.665 2.892 3.254 3.424 3.401 High School District 113 1.921 2.167 2.178 2.364 2.421 Community College (Lake County) Dist. 532 0.218 0.240 0.272 0.296 0.306 Deerfield Park District 0.460 0.503 0.546 0.585 0.599 Deerfield-Bannockburn Fire Protection Dist.0.486 0.529 0.593 0.637 0.650 Library 0.204 0.237 0.262 0.290 0.364 All Other 0.065 0.073 0.053 0.048 0.053 Total 6.961 7.716 8.435 9.028 9.217 Village as a Percent of Total 3.4%4.1%5.4%5.6%5.8% Source: Office of Lake County Clerk. - 128 - Tax Extensions and Collections LAKE COUNTY COOK COUNTY Levy Collection Levy Collection Year Year Taxes Extended Amount Percent Year Year Taxes Extended Amount Percent 2003 2004 3,677,468 3,671,745 99.84%2003 2004 255,507 255,507 100.00% 2004 2005 3,980,792 3,958,956 99.45%2004 2005 258,537 261,462 101.13% 2005 2006 4,723,411 4,706,769 99.65%2005 2006 444,012 457,708 103.08% 2006 2007 4,290,135 4,287,885 99.95%2006 2007 420,514 416,589 99.07% 2007 2008 4,700,551 4,690,657 99.79%2007 2008 409,907 410,137 100.06% 2008 2009 4,838,606 4,829,011 99.80%2008 2009 414,860 407,960 98.34% 2009 2010 5,106,445 5,098,946 99.85%2009 2010 399,022 402,287 100.82% 2010 2011 5,850,305 5,838,131 99.79%2010 2011 445,248 452,011 101.52% 2011 2012 7,469,212 7,470,033 100.01%2011 2012 521,208 520,642 99.89% 2012 2013 8,257,305 8,247,653 99.88%2012 2013 593,766 595,080 100.22% 2013 2014 8,558,492 8,550,030 99.90%2013 2014 607,271 608,961 100.28% 2014 2015 9,602,672 9,586,819 99.83%2014 2015 691,783 691,424 99.95% Total Levy Collection Year Year Taxes Extended Amount Percent 2003 2004 3,932,975 3,927,252 99.85% 2004 2005 4,239,329 4,220,418 99.55% 2005 2006 5,167,423 5,164,477 99.94% 2006 2007 4,710,649 4,704,474 99.87% 2007 2008 5,110,458 5,100,794 99.81% 2008 2009 5,253,466 5,236,971 99.69% 2009 2010 5,505,467 5,501,233 99.92% 2010 2011 6,295,553 6,290,142 99.91% 2011 2012 7,990,420 7,990,675 100.00% 2012 2013 8,851,071 8,842,733 99.91% 2013 2014 9,165,763 9,158,991 99.93% 2014 2015 10,294,455 10,278,243 99.84% Lake County and Cook County as of 5/31/2016. Total Collections Source: Lake County Clerk's Office. Total Collections Source: Lake and Cook County Clerk's Office. Total Collections Source: Cook County Clerk's Office. - 129 - Principal Taxpayers within the Village Taxpayer Taxable Assessed Value % of Total Taxable Assessed Valuation Arden Realty, Inc.$32,347,420 0.88% Scott Dressing, Sr Mgr Taxation 28,038,811 0.76% Walgreen Co.16,773,971 0.46% CRM Properties Group 14,000,889 0.38% JBC Funds Parkway North LLC 13,676,063 0.37% Wells Core REIT - Four Parkway North LLC 6,895,057 0.19% MLQ MB Hotels 2011 LLC 5,793,668 0.16% RREEF America Reit Agent Corner Partners 5,686,868 0.15% Colliers International 4,949,667 0.13% RT Parkway LLC 4,441,922 0.12% Total $132,604,336 3.61% Data Source: Lake & Cook County Clerk's & Assessor's Offices. - 130 -