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Village CAFR for eight months ended Decmeber 31, 2013 VILLAGE OF DEERFIELD, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Eight Months Ended December 31, 2013 Prepared by Finance Department Eric L. Burk Director of Finance 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 Statement of Revenues, Expenses and Changes in Net Position ................. 13 Statement of Cash Flows .............................................................................. 14-15 Fiduciary Funds Statement of Fiduciary Net Position ............................................................ 16 Statement of Changes in Fiduciary Net Position ......................................... 17 Notes to Financial Statements ........................................................................... 18-50 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund ....................................................................... 51 Schedule of Funding Progress and Employer Contributions Illinois Municipal Retirement Fund ............................................................. 52 Police Pension Fund ..................................................................................... 53 Other Postemployment Benefit Plan ............................................................ 54 Notes to Required Supplementary Information ................................................ 55 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS Schedule of Revenues - Budget and Actual - General Fund ................................. 56-57 Schedule of Expenditures - Budget and Actual - General Fund ............................ 58-60 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Debt Service Fund ........................................................................................ 61 Infrastructure Replacement Fund ................................................................. 62 Library Bond Proceeds Fund ........................................................................ 63 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ................................................................................. 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................. 65 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund .................................................................................... 66 Enhanced 911 Fund ...................................................................................... 67 2011B Sinking Fund…. ................................................................................ 68 Bond Proceeds Fund ..................................................................................... 69 MAJOR ENTERPRISE FUNDS Water Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 70 Schedule of Operating Expenses - Budget and Actual ................................. 71 Schedule of Capital Assets and Depreciation ............................................... 72 Sewerage Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 73 Schedule of Operating Expenses - Budget and Actual ................................. 74 Schedule of Capital Assets and Depreciation ............................................... 75 Refuse Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 76 NONMAJOR ENTERPRISE FUNDS Commuter Parking Lot Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 77 Schedule of Operating Expenses - Budget and Actual ................................. 78 Schedule of Capital Assets and Depreciation ............................................... 79 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) INTERNAL SERVICE FUNDS Combining Statement of Net Position ............................................................... 80 Combining Statement of Revenues, Expenses and Changes in Net Position ..................................................................................................... 81 Combining Statement of Cash Flows ................................................................ 82 Garage Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 83 Schedule of Operating Expenses - Budget and Actual ................................. 84 Vehicle and Equipment Replacement Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ............................................ 85 FIDUCIARY FUNDS Schedule of Changes in Plan Net Position- Budget and Actual - Police Pension Fund ........................................................................................ 86 Combining Statement of Changes in Assets and Liabilities - Agency Funds .................................................................................................. 87 SUPPLEMENTAL DATA Long-Term Debt Requirements General Obligation Bond Series of 2008 .......................................................... 88 General Obligation Bond Series of 2010A ....................................................... 89 General Obligation Bond Series of 2011A ....................................................... 90 General Obligation Bond Series of 2011B ........................................................ 91 General Obligation Bond Series of 2012 .......................................................... 92 General Obligation Bonds Series of 2013 ......................................................... 93 STATISTICAL SECTION Financial Trends Net Position by Component ................................................................................... 94 Change in Net Position .......................................................................................... 95-96 Fund Balances of Governmental Funds ................................................................. 97 Changes in Fund Balances of Governmental Funds .............................................. 98 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION (Continued) Revenue Capacity Sales Tax by Category ........................................................................................... 99 Direct and Overlapping Sales Tax Rates ............................................................... 100 Debt Capacity Ratios of Outstanding Debt by Type ...................................................................... 101 Ratios of General Bonded Debt Outstanding ......................................................... 102 Direct and Overlapping Bonded Debt - Governmental Activities ......................... 103 Legal Debt Margin Information ............................................................................. 104 Demographic and Economic Information Demographic and Economic Information .............................................................. 105 Principal Employers ............................................................................................... 106 Operating Information Full-Time Equivalent Employees .......................................................................... 107 Operating Indicators ............................................................................................... 108 Capital Asset Statistics ........................................................................................... 109 Continuing Disclosures ............................................................................................... 110-115 - i - VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL OFFICIALS December 31, 2013 LEGISLATIVE VILLAGE BOARD OF TRUSTEES Harriet E. Rosenthal, Mayor Robert L. Benton 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, 2013 the Village's unemployment rate was estimated to be 5.85%, compared to 9.0% for Lake County, 8.6% for the State of Illinois and 6.5% for the United States. The slow but positive recovery in the national and state economy is reflected in the economy of the surrounding local area. The Village annualized base sales tax revenue (which represents 1% of the total eligible sales), net of the Walgreen’s sales tax rebate, remained reasonably consistent at a decrease of approximately $62,000 from fiscal year 2013. W algreen National’s activity decreased from the prior year (pursuant to a sales tax sharing agreement, 80% of the Village share of the sales tax received from them is rebated back) which contributed to the overall loss of revenue. 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. vi 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 continued to improve compared to the prior year in the number of permits issued. Much of this value was in commercial and residential remodeling. Overall permit revenue totaled $826,447 for the eight months ending December 31, 2013. This amounts to an annualized increase of 6% over the fiscal year 2013 total. Foreclosure rates remained low; with approximately 35 to 40 single family homes out of the Village’s 6,500 in this status during the year. Long-term Financial Planning. The Village utilizes a 5 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. No additional debt issuance is planned for calendar 2014. Major Initiatives The Village completed construction on the replacement of the waste water treatment facility. Funding for the first phase of the new treatment plant was obtained as part of a Build America Bond issuance in fall of 2010; the second phase was funded through a combination of regular tax exempt general obligation bonds and Qualified Energy Conservation Bonds. The final funding came from regular tax exempt general obligation bonds issued in early 2013. As part of the regular budget planning process, Village staff has presented the Board with a capital projects program that will require significant expenditures over the next five year period. The majority of these projects include road reconstruction along with water and sewer utility work. For 2014, the major funding sources will be balances in the Infrastructure Fund, state and federal grants, the home rule tax revenue and a planned draw down of the General Fund’s Fund Balance. 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 April 30, 2013. 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 co ntents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village of Deerfield has received a Certificate of Achievement for the last twenty-eight years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA. In addition, the Village also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document dated May 1, 2013. In order to qualify for the Distinguished Budget Presentation Award, the Village’s budget document had to be judged proficient as a policy document, a financial plan, an operations guide and a communications device. (MD&A) - 1 - VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2013 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  During the current reporting period, the Village transitioned to a calendar year end. Many of the revenue and expenditure items are not comparable to prior year amounts as the transition was completed by using a shortened fiscal period from May 1, 2013 to December 31, 2013. Several items can be annualized to make reasonable comparisons. However, certain activities (snow and ice control, leaf collection, debt service payments, property tax revenue, vehicle licenses, etc.) do not need to be annualized as they were completed during the eight month period.  The Village’s General Fund ended the period with total revenues exceeding total expenditures by $2,446,522. Combined with other financing net uses of $2,209,958, the December 31, 2013 fund balance increased by $236,564.  Economy sensitive revenues, i.e. sales, income, and hotel/motel taxes remained consistent with the prior year on an annualized basis. Building permit revenue ($826,447) exceeded current period expectation ($700,000), primarily due to large office remodeling projects.  Hotel/motel tax revenue ($1,318,409) also exceeded current period expectation of $1,100,000 ; business travel is the primary reason for stays at Deerfield hotels. All six of the Deerfield hotels remained open during the year.  The Village collected $857,310 from the Electric Utility tax and $936,502 from the Simplified Telecommunications tax. Both items were consistent with prior year amounts on an annualized basis.  The Village retired $1,650,000 of general obligation debt during the period. The total balance of debt outstanding as of December 31, 2013 was $54,905,000. No new debt was issued during the period and no new debt is anticipated in 2014.  The infrastructure maintenance fee of ½ of 1% of the project value , which was implemented in the prior year totaled to $194,292 for the fiscal period. This amount exceeded current period expectation and the prior year amount on an annualized basis. 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. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 2 - 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 fo r 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 provide 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 - 15) 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 business -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 function. 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 provided to both the governmental and business-type activities of the government-wide financial statements. 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 16 - 17) 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 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. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 3 - 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. 2013A 2013 2013A 2013 2013A 2013 Current & Other Assets 47.41 50.48 2.67 1.98 50.08 52.46 Capital Assets 71.58 70.56 60.75 59.83 132.33 130.39 Total Assets 118.99 121.04 63.42 61.81 182.41 182.85 Long-Term Liabilities 24.35 57.23 31.54 0.26 55.89 57.49 Other Liabilities 4.14 6.02 1.39 .67 5.53 6.69 Total Liabilities 28.49 63.25 32.93 .93 61.42 64.18 Deferred Inflows of Resources 4.32 4.20 .93 .90 5.25 5.10 Total Liabilities and Deferred Inflows of Resources 32.81 67.45 33.86 1.83 66.67 69.28 Net Position: Net Investment in Capital Assets 53.41 55.36 28.91 59.84 82.32 86.32 Restricted 1.69 2.00 - - 1.69 2.00 Unrestricted 31.08 -3.77 0.65 0.14 31.73 25.24 Total Net Position 86.18 53.59 29.56 59.98 115.74 113.56 The Village’s total primary government net position increased by $2.17 million due largely to a decrease in outstanding bonds during the period. The Governmental Activities long-term liabilities decreased as the debt related to the Wastewater Treatment Plant was reclassified to Business-type Activities through a prior period adjustment. The decrease in Current & Other Assets is due primarily to spending bonds proceeds , issued in the previous year, which contributed to the increase in Capital Assets in the Governmental Activities. Business-type Activities Capital Assets increased due to Water System improvements done in conjunction with street rehabilitation/reconstruction projects. Long-Term liabilities increased due to the reclassification of the Wastewater Treatment Plant debt mentioned above. 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. 2013A 2013 2013A 2013 2013A 2013 Revenues: Program Revenues: Charges for Service 2.83 3.60 5.58 7.89 8.41 11.49 Operating Grants .98 1.14 - - .98 1.14 Capital Grants 0.06 0.08 1.80 12.57 1.86 12.65 General Revenue: Property Taxes 4.95 4.33 0.91 0.89 5.86 5.22 Other Taxes/Intergovernmental 11.05 17.09 - - 11.05 17.09 Transfers in (out) -1.79 - 1.79 - - - Other 0.19 0.37 0.17 0.21 0.36 0.58 Total Revenue 18.27 26.61 10.25 21.56 28.52 48.17 Expenses: General Government 5.75 18.99 - - 5.75 18.99 Public Safety 6.26 8.57 - - 6.26 8.57 Highways and Streets 6.21 5.75 - - 6.21 5.75 Interest/fiscal charges .63 1.79 - - .63 1.79 Water - - 3.15 4.63 3.15 4.63 Sewer - - 3.15 3.27 3.15 3.27 Refuse - - 0.96 1.34 .96 1.34 Parking Lots - - 0.24 0.35 0.24 0.35 Total Expense 18.85 35.10 7.50 9.59 26.35 44.69 Changes in Net Position -0.58 -8.49 2.75 11.97 2.17 3.48 CURRENT YEAR IMPACTS Governmental Activities Revenue Substantially all revenues decreased this period due to the shortened fiscal period. One major exception is property tax revenue which is collected in June and September each year. Therefore, the Village received the entire 2012 tax levy during the current fiscal period. The increase in property tax revenue ($0.62 million) is due largely to increased costs of debt service related to the Wastewater Treatment Plant. Expenses In addition to the shortened fiscal period, General government expenses decreased as costs associated with the construction of the Wastewater Treatment Plant were substantially completed in the prior year. Highways and streets expenses did not decease with the shortened fiscal year because the period contained a full construction and winter season. Also, large street rehabilitation projects were completed during the fiscal period. The decrease in interest/fiscal charges relates to the transfer of Wastewater Treatment Plant debt and interest payment to Business - type Activities. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 5 - Business-type Activities Revenue A water rate increase of 2.5% was implemented in May, 2013; water sales totaled $3.01 million, which exceeded the budget of $2.8 million. Sewer user charges of $2.07 million exceeded the budget by $0.07 million. The sewer rates were increased 5% in May 2013. Refuse charge rates were also increased 2.5%, and revenue of $0.32 million was consistent with the budgeted amount. Expenses Water Fund operating expenditures decreased consistent with expectations for the shortened fiscal period. Increased wholesale water purchases were offset by increased water sales resulting in operating income before depreciation of $0.22 million. 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 consistent with the shortened fiscal period. However, these decreases were offset by increased depreciation (non-cash) and debt service costs related to the completion of the Wastewater Treatment Plant. Refuse and Parking Fund operating expenses decreased consistent with the shortened fiscal period expectation. FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS Governmental Funds At December 31, 2013, the governmental funds reported a combined fund balance of $23.99 million which is an 8.8% decrease from the beginning of the year ($26.3 million). The decrease is primarily due to a drawdown of prior year bond proceeds designated for the Wastewater Treatment Plant and Library Improvement Project. Major Governmental Funds The General Fund is the Village’s primary operating fund and the largest source of day-to-day service delivery. The unassigned fund balance of the General Fund decreased $0.2 million from $17.0 million to $16.8 million. The General Fund cash balance of $16.3 million provides for approximately 290 days of anticipated annual expenditures. Revenues exceeded the budget of $13.7 million by $1.29 million. State shared revenues, such as income taxes and use taxes, exceeded budgeted amounts. Sales tax and Home Rule Sales tax both exceeded current year expectations. Building permit revenue exceeded the current period expectation as several large commercial permits were issued during the period. Expenditures were $1.78 million less than the budget. This was caused by vacant positions in multiple departments resulting in lower than expected personnel costs . In addition, Economic Incentive payments were less than expected. 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, expenditures and changes to fund balance on page 51. General Fund Budget versus Actual Fiscal year ended December 31, 2013 (in millions) Original Amended Budget Budget Actual Revenues Taxes 7.27 7.27 7.79 Intergovernmental 4.24 4.24 4.68 Other 2.23 2.23 2.56 Total 13.74 13.74 15.03 Expenditures & Transfers Expenditures 14.36 14.36 12.58 Other Sources - - - Transfers – Net 2.21 2.21 2.21 Total 16.57 16.57 14.79 Change in Fund Balance -2.83 -2.83 0.24 The Debt Service Fund is funded through property taxes, Build America Bond & Qualified Energy Conservation Bond rebates and General Fund transfers. General Fund transfers are used for debt service payments that have been abated. Revenues and expenditures in this fund were consistent with expectation , except that the Build America Bond & Qualified Energy Conservation Bond rebates were reduced by 7.2% due to Federal Sequestration Cuts. 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 project value in the previous year. Revenue in the IRF fell short of the budget by $0.17 million due to grant revenue from a project that was delayed. The delayed project also resulted in an offsetting decrease in expenditures. Expenditures in the IRF totaled $4.7 million. Engineering costs and street improvements accounted for the bulk of this fund’s expenditures. The Library Bond Proceeds Fund was used to account for the bond proceeds related to the Library Improvement project. All proceeds were expended and the project was complete at December 31, 2013. The fund is no longer a major fund by formula. However, it was deemed a major fund to preserve consistency. 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 $3.11 million for the fiscal period. Actual operating expenses, excluding depreciation and interest totaled $2.89 million. Overall, net position increased $1.2 million which included a contribution of water system assets of $1.28 million. The Sewerage Fund operating expenses were under budget by $0.42 million due primarily to lower than expected personnel costs and contractual services. The operating revenue exceeded operating expenses excluding depreciation $0.31 million due to reduced operating costs. Capital expenses for the foreseeable future in this fund have been transferred to the Infrastructure Fund. The replacement of the Wastewater Treatment Plant was completed at year end. The Refuse Fund operating expenses exceeded operating revenues by $0.6 million. This Village also uses a portion of its property tax levy to fund refuse collection. Property tax collected for the Refuse Fund totaled $0.91 million and the Refuse Fund’s net position increased $0.3 million during the fiscal period to $0.35 million. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) - 7 - Internal Service Funds The Village’s combined internal service funds’ net position were $6.2 million as of December 31, 2013, with $4.5 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 decrease in net position. 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 accumulated depreciation, for governmental activities as of December 31, 2013 was $71.6 million. The Village’s investment in capital assets, net of accumulated depreciation, for business-type activities as of December 31, 2013 was $60.7 million. Major capital asset additions during the current fiscal period included streets and water system improvements. Additional information on capital assets is presented in Note 4 to the financial statements. Long-term debt The Village did not issue any debt during the fiscal period and retired $1.65 million of general obligation debt. At the end of the fiscal year, the Village had total bonded debt outstanding of $54.91 million. As a home rule government, under Illinois law, the Village has no legal debt limit. As of December 31, 2013 the total Village debt represented 4.25% 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 3. 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. As a portion of the General Fund, property tax revenue increased from 10% in FY 2013 to 14% in the eight months ending December 31, 2013. However, the increase is skewed due to timing of property tax receipts in the shortened fiscal period. 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 exceeded current year budget by $0.20 million due to more business travel. However, hotel/motel tax is still down from its high of $2 million several years ago. All of the Village’s six hotels have remained open during the year. The continued strength of the local corporate employment provides a base level of demand for rooms which is the primary market for these hotels. Contacting the Village’s Financial Management This financial report is designed to provide a general overview of the Village’s finances, comply with finance -related laws and regulations and demonstrate the Village’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the Village’s Finance Director, 850 Waukegan Road, Deerfield, IL 60015 or access the Village website at www.deerfield.il.us. Governmental Business-Type Activities Activities Total ASSETS Cash and investments 25,845,598$ 1,125,108$ 26,970,706$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 4,326,331 928,140 5,254,471 Accounts 576,515 1,275,752 1,852,267 Accrued interest 10,311 206 10,517 Electric utility tax 127,832 - 127,832 Due from other governments 13,608,662 - 13,608,662 Note receivable 80,000 - 80,000 Due from (to) other funds 936,939 (936,939) - Inventory 144,714 194,579 339,293 Prepaid expenses 757,783 87,549 845,332 Net pension asset 995,592 - 995,592 Capital assets not being depreciated 21,677,167 1,955,456 23,632,623 Capital assets (net of accumulated depreciation)49,900,434 58,789,965 108,690,399 Total assets 118,987,878 63,419,816 182,407,694 LIABILITIES Accounts payable 1,812,504 462,296 2,274,800 Accrued payroll 259,692 51,261 310,953 Retainage payable 853,272 - 853,272 Deposits payable 7,922 35,350 43,272 Other payables 16,539 - 16,539 Accrued interest payable 57,534 88,503 146,037 Noncurrent liabilities Due within one-year 1,126,859 759,466 1,886,325 Due in more than one-year 24,351,310 31,536,718 55,888,028 Total liabilities 28,485,632 32,933,594 61,419,226 DEFERRED INFLOWS OF RESOURCES Unavailable property taxes 4,326,331 928,140 5,254,471 Total deferred inflows of resources 4,326,331 928,140 5,254,471 Total liabilities and deferred inflows of resources 32,811,963 33,861,734 66,673,697 NET POSITION Net investment in capital assets 53,407,261 28,906,421 82,313,682 Restricted for Maintenance of roadways 325,768 - 325,768 Public safety 1,364,438 - 1,364,438 Unrestricted 31,078,448 651,661 31,730,109 TOTAL NET POSITION 86,175,915$ 29,558,082$ 115,733,997$ Primary Government VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF NET POSITION December 31, 2013 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 5,755,847$ 1,811,306$ -$ -$ Public safety 6,256,914 783,151 1,100 6,199 Highways and streets 6,208,891 234,034 390,027 52,592 Interest 628,554 - 499,733 - Total governmental activities 18,850,206 2,828,491 890,860 58,791 Business-Type Activities Water 3,153,643 3,006,491 - 1,277,114 Sewerage 3,148,403 2,065,472 - 524,973 Refuse disposal 955,227 324,969 - - Commuter parking lot 244,940 187,386 - - Total business-type activities 7,502,213 5,584,318 - 1,802,087 TOTAL PRIMARY GOVERNMENT 26,352,419$ 8,412,809$ 890,860$ 1,860,878$ Program Revenues VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF ACTIVITIES For the Eight Months Ended December 31, 2013 - 4 - Governmental Business-Type Activities Activities Total (3,944,541)$ -$ (3,944,541)$ (5,466,464) - (5,466,464) (5,532,238) - (5,532,238) (128,821) - (128,821) (15,072,064) - (15,072,064) - 1,129,962 1,129,962 - (557,958) (557,958) - (630,258) (630,258) - (57,554) (57,554) - (115,808) (115,808) (15,072,064) (115,808) (15,187,872) General Revenues Taxes Property 4,952,775 906,951 5,859,726 Replacement 57,295 - 57,295 Home rule sales 2,257,183 - 2,257,183 Local use 222,405 - 222,405 Hotel/motel 1,318,409 - 1,318,409 Simplified telecommunications 936,501 - 936,501 Electric utility tax 857,310 - 857,310 Intergovernmental 5,396,719 - 5,396,719 Miscellaneous 279,991 174,010 454,001 Transfers (1,790,608) 1,790,608 - Total 14,487,980 2,871,569 17,359,549 CHANGE IN NET POSITION (584,084) 2,755,761 2,171,677 NET POSITION, MAY 1 53,586,948 59,975,372 113,562,320 Prior period adjustment 33,173,051 (33,173,051) - NET POSITION, MAY 1, RESTATED 86,759,999 26,802,321 113,562,320 NET POSITION, DECEMBER 31 86,175,915$ 29,558,082$ 115,733,997$ Primary Government Net (Expense) Revenue and Change in Net Position See accompanying notes to financial statements. - 5 - Library Debt Infrastructure Bond Nonmajor General Service Replacement Proceeds Governmental Total Cash and investments 16,337,040$ 66,957$ 1,875,329$ -$ 3,088,881$ 21,368,207$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 2,198,560 2,044,886 82,885 - - 4,326,331 Accounts 495,557 - - - 77,092 572,649 Accrued interest 4,226 166 362 - 4,488 9,242 Electric utility tax receivable 127,832 - - - - 127,832 Due from other governments 2,638,061 10,635,000 289,996 - 45,605 13,608,662 Note receivable 80,000 - - - - 80,000 Due from other funds 936,939 - - - - 936,939 Inventory 54,477 - - - - 54,477 Prepaid items 752,402 - - - - 752,402 TOTAL ASSETS 23,625,094$ 12,747,009$ 2,248,572$ -$ 3,216,066$ 41,836,741$ VILLAGE OF DEERFIELD, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2013 ASSETS - 6 - Library Debt Infrastructure Bond Nonmajor General Service Replacement Proceeds Governmental Total LIABILITIES Accounts payable 1,112,782$ -$ 562,882$ -$ 79,071$ 1,754,735$ Accrued payroll 254,955 - - - - 254,955 Deposits payable 7,922 - - - - 7,922 Retainage payable - - 853,272 - - 853,272 Other payables 16,539 - - - - 16,539 Total liabilities 1,392,198 - 1,416,154 - 79,071 2,887,423 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - Library - 10,635,000 - - - 10,635,000 Unavailable property tax revenues 2,198,560 2,044,886 82,885 - - 4,326,331 Total deferred inflows of resources 2,198,560 12,679,886 82,885 - - 14,961,331 Total liabilities and deferred inflows of resources 3,590,758 12,679,886 1,499,039 - 79,071 17,848,754 FUND BALANCES Nonspendable for Note receivable 80,000 - - - - 80,000 Inventory 54,477 - - - - 54,477 Prepaid items 752,402 - - - - 752,402 Restricted for Capital projects - - - - 40,280 40,280 Maintenance of roadways - - - - 325,768 325,768 Public safety - - - - 1,364,438 1,364,438 Unrestricted Assigned for Debt service 831,850 67,123 - - 1,406,509 2,305,482 Capital projects 1,500,000 - 749,533 - - 2,249,533 Unassigned 16,815,607 - - - - 16,815,607 Total fund balances 20,034,336 67,123 749,533 - 3,136,995 23,987,987 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 23,625,094$ 12,747,009$ 2,248,572$ -$ 3,216,066$ 41,836,741$ RESOURCES AND FUND BALANCES LIABILITIES, DEFERRED INFLOWS OF See accompanying notes to financial statements. - 7 - FUND BALANCES OF GOVERNMENTAL FUNDS 23,987,987$ 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 71,577,601$ Less internal service funds (1,746,458)69,831,143 Discount on bonds issued are capitalized and amortized on the statement of net position (156,570) Premium on bonds issued are deferred and amortized on the statement of net position 57,610 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Bonds payable (23,066,000) Other postemployment benefit payable (789,476) Compensated absences (1,523,735) Less internal service funds (40,463)(1,483,272) Intergovernmental receivable from the Library is not unearned revenue on the statement of net position 10,635,000 Accrued interest on long-term liabilities is shown as a liability on the statement of net position (57,534) The net pension asset is included in the governmental activities in the statement of net position 995,592 The net position of the internal service fund are included in the governmental activities in the statement of net position 6,221,435 NET POSITION OF GOVERNMENTAL ACTIVITIES 86,175,915$ December 31, 2013 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 Eight Months Ended December 31, 2013 Library Debt Infrastructure Bond Nonmajor General Service Replacement Proceeds Governmental Total REVENUES Taxes 7,791,658$ 1,315,256$ 44,964$ -$ 725,000$ 9,876,878$ Licenses and permits 1,277,977 - - - - 1,277,977 Intergovernmental 4,684,741 499,733 768,109 - 390,027 6,342,610 Charges for services 337,043 - - - 228,170 565,213 Fines and forfeits 236,390 - - - - 236,390 Contribution from library - 742,476 - - - 742,476 Investment income (97,366) (3,828) (8,075) 83 (55,637) (164,823) Miscellaneous 798,058 - 194,292 - 6,199 998,549 Total revenues 15,028,501 2,553,637 999,290 83 1,293,759 19,875,270 EXPENDITURES Current General government 5,063,006 - - - 333 5,063,339 Public safety 5,886,089 - - - 231,032 6,117,121 Highways and streets 1,632,884 - - - 694,000 2,326,884 Capital outlay - - 4,738,718 541,417 - 5,280,135 Debt service Principal retirement - 928,000 - - - 928,000 Interest and fiscal charges - 699,324 - - - 699,324 Total expenditures 12,581,979 1,627,324 4,738,718 541,417 925,365 20,414,803 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 2,446,522 926,313 (3,739,428) (541,334) 368,394 (539,533) VILLAGE OF DEERFIELD, ILLINOIS - 9 - Library Debt Infrastructure Bond Nonmajor General Service Replacement Proceeds Governmental Total OTHER FINANCING SOURCES (USES) Transfers in -$ 818,344$ 2,334,610$ -$ -$ 3,152,954$ Transfers (out)(2,218,344) (1,790,608) - - (934,610) (4,943,562) Sale of capital assets 8,386 - - - - 8,386 Total other financing sources (uses)(2,209,958) (972,264) 2,334,610 - (934,610) (1,782,222) NET CHANGE IN FUND BALANCES 236,564 (45,951) (1,404,818) (541,334) (566,216) (2,321,755) FUND BALANCES, APRIL 30 19,797,772 113,074 2,154,351 541,334 3,703,211 26,309,742 FUND BALANCES, DECEMBER 31 20,034,336$ 67,123$ 749,533$ -$ 3,136,995$ 23,987,987$ See accompanying notes to financial statements. - 10 - NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (2,321,755)$ 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 2,903,628$ Less internal service funds (521,516)2,382,112 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 928,000 The decrease in interest payable is reported as a reduction of expense on the statement of activities 228,412 Bonds issued and contributed to the Library are reported as expenditures in the governmental funds, but not on the statement of activities 26,334 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 (1,659,189) Less internal service funds 188,838 (1,470,351) The loss on disposal of capital assets for road reconstruction increases the highways and streets expense on the statement of activities (217,662) The increase in compensated absences is reported as an addition to expense on the statement of activities (41,551) The increase in the other postemployment benefit payable is reported as an addition to expense on the statement of activities (72,480) The decrease in net pension asset is reported as an addition to expense on the statement of activities (2,007) The amortization of the discount and premium are reported as an reduction to expense on the statement of activities 7,179 The change in net position of certain activities of internal service funds is in governmental funds (30,315) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES (584,084)$ For the Eight Months Ended December 31, 2013 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 - STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2013 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service CURRENT ASSETS Cash and investments -$ 412,949$ 356,686$ 355,473$ 1,125,108$ 4,477,391$ Receivables Property taxes - - 928,140 - 928,140 - Accounts - billed 147,032 128,354 16,039 - 291,425 3,866 Accounts - unbilled 521,172 385,090 78,065 - 984,327 - Accrued interest - 38 85 83 206 1,069 Prepaid expenses 35,614 47,912 2,178 1,845 87,549 5,381 Inventory 179,376 15,203 - - 194,579 90,237 Total current assets 883,194 989,546 1,381,193 357,401 3,611,334 4,577,944 CAPITAL ASSETS Nondepreciable 1,877,956 - - 77,500 1,955,456 - Depreciable 19,655,946 45,416,935 - 1,950,830 67,023,711 3,814,996 Accumulated depreciation (4,316,744) (3,071,321) - (845,681) (8,233,746) (2,068,538) Net capital assets 17,217,158 42,345,614 - 1,182,649 60,745,421 1,746,458 Total assets 18,100,352 43,335,160 1,381,193 1,540,050 64,356,755 6,324,402 CURRENT LIABILITIES Accounts payable 249,629 100,259 103,549 8,859 462,296 57,767 Accrued payroll 21,751 28,953 - 557 51,261 4,737 Accrued interest - 88,503 - - 88,503 - Deposits payable 19,502 15,848 - - 35,350 - Due to other funds 936,939 - - - 936,939 - Unearned property taxes - - 928,140 - 928,140 - Notes payable - 735,000 - - 735,000 - Compensated absences payable 11,005 12,359 - 1,102 24,466 28,895 Total current liabilities 1,238,826 980,922 1,031,689 10,518 3,261,955 91,399 LONG-TERM LIABILITIES Compensated absences payable 99,041 111,228 - 9,915 220,184 11,568 Other postemployment benefit payable 24,760 29,628 - - 54,388 - Unamortized premium - 158,146 - - 158,146 - Notes payable - long term - 31,104,000 - - 31,104,000 - Total long-term liabilities 123,801 31,403,002 - 9,915 31,536,718 11,568 Total liabilities 1,362,627 32,383,924 1,031,689 20,433 34,798,673 102,967 NET POSITION Net investment in capital assets 17,217,158 10,506,614 - 1,182,649 28,906,421 1,746,458 Unrestricted (479,433) 444,622 349,504 336,968 651,661 4,474,977 TOTAL NET POSITION 16,737,725$ 10,951,236$ 349,504$ 1,519,617$ 29,558,082$ 6,221,435$ Business-Type Activities VILLAGE OF DEERFIELD, ILLINOIS See accompanying notes to financial statements. - 12 - STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Eight Months Ended December 31, 2013 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service OPERATING REVENUES Charges for services 3,006,491$ 2,065,472$ 324,969$ 187,386$ 5,584,318$ 565,333$ Miscellaneous 100,125 47,701 26,184 - 174,010 9,456 Total operating revenues 3,106,616 2,113,173 351,153 187,386 5,758,328 574,789 OPERATING EXPENSES Administration 383,170 345,698 - - 728,868 - Operations 2,506,407 1,459,468 953,301 225,192 5,144,368 253,297 Commodities - - - - - 227,240 Total operating expenses 2,889,577 1,805,166 953,301 225,192 5,873,236 480,537 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 217,039 308,007 (602,148) (37,806) (114,908) 94,252 Depreciation and amortization 264,066 628,258 - 17,825 910,149 188,838 OPERATING INCOME (LOSS)(47,027) (320,251) (602,148) (55,631) (1,025,057) (94,586) NON-OPERATING REVENUES (EXPENSES) Investment expense - (739) (1,926) (1,923) (4,588) (24,574) Property taxes - - 906,951 - 906,951 - Gain/(loss) on disposal of capital assets - - - - - 88,845 Interest expense - (714,240) - - (714,240) - Total non-operating revenues (expenses)- (714,979) 905,025 (1,923) 188,123 64,271 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (47,027) (1,035,230) 302,877 (57,554) (836,934) (30,315) CONTRIBUTIONS 1,277,114 524,973 - - 1,802,087 - TRANSFERS - 1,790,608 - - 1,790,608 - CHANGE IN NET POSITION 1,230,087 1,280,351 302,877 (57,554) 2,755,761 (30,315) NET POSITION, APRIL 30 15,507,638 42,843,936 46,627 1,577,171 59,975,372 6,251,750 Prior perriod adjustment - (33,173,051) - - (33,173,051) - NET POSITION, APRIL 30 (RESTATED)15,507,638 9,670,885 46,627 1,577,171 26,802,321 6,251,750 NET POSITION, DECEMBER 31 16,737,725$ 10,951,236$ 349,504$ 1,519,617$ 29,558,082$ 6,221,435$ Business-Type Activities VILLAGE OF DEERFIELD, ILLINOIS See accompanying notes to financial statements. - 13 - STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Eight Months Ended December 31, 2013 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 2,855,984$ 1,948,616$ 319,385$ 198,164$ 5,322,149$ -$ Receipts from interfund services - - - - - 557,492 Receipts from miscellaneous revenues 100,125 47,701 26,184 - 174,010 9,456 Payments to suppliers (1,994,179) (734,631) (825,979) (203,482) (3,758,271) (297,506) Payments to employees (720,152) (1,125,773) (98,522) (23,569) (1,968,016) (165,526) Payments for interfund services (111,309) (79,274) (34,572) - (225,155) - Net cash from operating activities 130,469 56,639 (613,504) (28,887) (455,283) 103,916 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund loan (100,469) 1,790,607 - - 1,690,138 - Property taxes - - 858,105 - 858,105 - Net cash from noncapital financing activities (100,469) 1,790,607 858,105 - 2,548,243 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - - - - - 93,501 Capital assets purchased (30,000) - - - (30,000) (521,516) Bond principal payments - (722,000) - - (722,000) - Bond interest payments - (1,068,607) - - (1,068,607) - Net cash from capital and related financing activities (30,000) (1,790,607) - - (1,820,607) (428,015) CASH FLOWS FROM INVESTING ACTIVITIES Interest received - (746) (1,917) (1,867) (4,530) (24,092) Net cash from investing activities - (746) (1,917) (1,867) (4,530) (24,092) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS - 55,893 242,684 (30,754) 267,823 (348,191) CASH AND CASH EQUIVALENTS, APRIL 30 - 357,056 114,002 386,227 857,285 4,825,582 CASH AND CASH EQUIVALENTS, DECEMBER 31 -$ 412,949$ 356,686$ 355,473$ 1,125,108$ 4,477,391$ Business-Type Activities VILLAGE OF DEERFIELD, ILLINOIS (This statement is continued on the following page.) - 14 - VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS For the Eight Months Ended December 31, 2013 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)(47,027)$ (320,251)$ (602,148)$ (55,631)$ (1,025,057)$ (94,586)$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation and amortization 264,066 628,258 - 17,825 910,149 188,838 (Increase) decrease in Receivables (150,507) (116,856) (5,585) 10,778 (262,170) (2,461) Prepaid expenses (35,613) (47,912) (2,178) (1,844) (87,547) (5,380) Inventories 83,380 6,850 - - 90,230 7,871 Deferred charges - - - - - - Increase (decrease) in Accounts payable 24,711 (70,318) (3,593) (308) (49,508) 16,083 Deposits payable 1,650 1,272 - - 2,922 - Accrued payroll (12,392) (30,791) - (347) (43,530) (5,273) Other postemployment benefit payable 2,273 2,720 - - 4,993 - Compensated absences payable (72) 3,667 - 640 4,235 (1,176) NET CASH FROM OPERATING ACTIVITIES 130,469$ 56,639$ (613,504)$ (28,887)$ (455,283)$ 103,916$ NONCASH TRANSACTIONS Contributions of capital assets by other funds 1,277,114$ 524,973$ -$ -$ 1,802,087$ -$ TOTAL NONCASH TRANSACTIONS 1,277,114$ 524,973$ -$ -$ 1,802,087$ -$ Business-Type Activities See accompanying notes to financial statements. - 15 - Pension Agency Trust Fund Funds ASSETS Cash and cash equivalents 1,416,752$ 1,774,033$ Investments U.S. Treasury obligations 1,562,271 - U.S. agencies securities 7,191 - Corporate bonds 8,692,596 - Mutual funds 26,250,329 - Municipal bonds 1,017,589 - Receivables Accrued interest 132,800 10 Total assets 39,079,528 1,774,043$ LIABILITIES Accounts payable 18,512 22,274$ Deposits payable - 1,690,694 Other payables - 61,075 Total liabilities 18,512 1,774,043$ NET POSITION HELD IN TRUST FOR PENSION BENEFITS 39,061,016$ VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2013 See accompanying notes to financial statements. - 16 - ADDITIONS Contributions - employer 895,479$ Contributions - employee 256,787 Total contributions 1,152,266 Investment income Net appreciation in fair value of investments 687,326 Interest earned on investments 1,257,455 Total investment income 1,944,781 Less investment expense (12,994) Net investment income 1,931,787 Total additions 3,084,053 DEDUCTIONS Benefits and refunds Pension payments 1,414,193 Administrative 16,220 Total deductions 1,430,413 NET INCREASE 1,653,640 NET POSITION HELD IN TRUST FOR PENSION BENEFITS April 30 37,407,376 December 31 39,061,016$ VILLAGE OF DEERFIELD, ILLINOIS PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Eight Months Ended December 31, 2013 See accompanying notes to financial statements. - 17 - - 19 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2013 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Deerfield, Illinois (the Village) have been prepared in conformity with accounting 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. Separate financial statements are issued and available from the Police Pension Board. 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. - 18 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 20 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) Joint Ventures Solid Waste Agency of Lake County (SWALCO) 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 legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. A minimum number of funds are maintained consistent with legal and managerial requirements. Funds are classified into the following categories: governmental, proprietary and fiduciary. Governmental funds are used to account for all or most of 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 found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the Village (internal service funds). Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the Village. 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. - 19 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 21 - 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 nonfiduciary 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 general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds: The General (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 established for the purpose of maintaining, repairing and renovating the capital assets of the Village. The Library Project Bond Proceeds Fund accounts for the restricted proceeds of the General Obligation Bonds, Series 2011A and 2013, and related renovation expenditures to the Library. - 20 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 22 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Government-Wide and Fund Financial Statements (Continued) 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. 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. 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 fund: 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. - 21 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 23 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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 nonoperating. 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, licenses, 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 received 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 current 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. - 22 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 24 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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, 2013 for debt and equity securities. This resulted in some losses being recognized during the period ended December 31, 2013 and were reflected as negative investment income. 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. - 23 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 25 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 assets with an initial, individual cost in excess of $25,000 and an estimated useful life in excess of one year. 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. - 24 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 26 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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, which is considered the Village’s highest level of decision making aut hority. Formal actions include ordinances approved by the Village Board. 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. - 25 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 27 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) m. Fund Equity/Net Position (Continued) 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, 2013, 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. n. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position 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 accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from one source: property taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The unamortized loss on refunding is reported as a deferred outflow of resources. 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 another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except interfund services and reimbursements, are reported as transfers. - 26 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 28 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 2. DEPOSITS AND INVESTMENTS The Village 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. 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 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. The Police Pension Fund can invest in the same securities as the Village, plus the following: certain non-U.S. obligations (corporate debt securities), Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political divisions, Illinois insurance company general and separate accounts, mutual funds and equity securities (not to exceed 65% of the total assets of the Police Pension Fund). 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. - 27 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 29 - 2. DEPOSITS AND INVESTMENTS (Continued) 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, 2013: Investment Maturities (in Years) Fair Less than Greater than Value 1 1-5 6-10 10 U.S. agency obligations $ 4,118,389 $ - $ - $ 691,579 $ 3,426,810 TOTAL $ 4,118,389 $ - $ - $ 691,579 $ 3,426,810 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. 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 and Illinois Metropolitan Investment Fund (IMET) are 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 value of its investments that are in possession of an outside party. To limit its exposure, the Village’s investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by 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. - 28 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 30 - 2. DEPOSITS AND INVESTMENTS (Continued) b. Village Investments (Continued) 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. c. Police Pension Fund’s 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 Police Pension Fund’s deposits may not be returned to them. The Police Pension 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 Police Pension Fund’s deposits with financial institutions. d. Police Pension Fund Investments The following table presents the investments and maturities of the Police Pension Fund’s debt securities as of December 31, 2013: Investment Maturities (in Years) Fair Less than Greater than Value 1 1-5 6-10 10 U.S. agency obligations $ 7,191 $ - $ - $ 4,292 $ 2,899 U.S. Treasury obligations 1,562,271 - - - 1,562,271 Corporate bonds 8,692,596 670,252 6,163,763 1,795,324 63,257 Municipal bonds 1,017,589 - 175,481 303,363 538,745 TOTAL $ 11,279,647 $ 670,252 $ 6,339,244 $ 2,102,979 $ 2,167,172 In accordance with its investment policy, the Police Pension Fund 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 one-year period. The investment policy does not limit the maximum maturity length of investments in the Police Pension Fund. The Police Pension 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 primarily investing in obligations guaranteed by the U.S. Government or securities issued by agencies of the U.S. Government that are explicitly or implicitly guaranteed by the U.S. Government bonds. The U.S. treasury and agency obligations are rated by Moody’s - 29 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 31 - 2. DEPOSITS AND INVESTMENTS (Continued) d. Police Pension Fund Investments (Continued) Aaa, the corporate bonds are rated AAA, and the municipal bonds are rated between Aa3 and Aaa. Illinois Funds and IMET are rated Aaa by Standard and Poor’s. The investment policy is silent on minimum ratings required. Corporate bonds are rated between Baa3 and Aaa. The investment policy is silent on minimum ratings required. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Police Pension Fund will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Police Pension 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 Police Pension Fund’s agent separate from where the investment was purchased in the Police Pension Fund’s name. Illinois Funds and IMET are not subject to custodial credit risk. Concentration of credit risk - The Police Pension 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 60% of the Police Pension Fund’s total investment portfolio can be invested in a single security type or with a single financial institution. The Police Pension Fund’s investment policy does not specifically prohibit the use of or the investment in derivatives. 3. RECEIVABLES a. Taxes Property taxes for 2013 attach as an enforceable lien on January 1, 2013 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, 2014 and August 1, 2014 and are payable in two installments, on or about March 1, 2014 and September 1, 2014. The County collects such taxes and remits them periodically. The 2013 tax levy collections are intended to finance 2014 year and are not considered available for current operations and are, therefore, shown as unavailable revenue. - 30 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 32 - 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, 2013 was as follows: Beginning Balance Increases Decreases Ending Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 4,589,995 $ - $ - $ 4,589,995 Land right of way 16,180,188 - - 16,180,188 Construction in progress 1,147,589 471,040 711,645 906,984 Total capital assets not being depreciated 21,917,772 471,040 711,645 21,677,167 Capital assets being depreciated Buildings and improvements 12,232,033 - - 12,232,033 Vehicles, machinery and equipment 2,074,310 521,516 166,430 3,980,254 Infrastructure 59,627,868 2,622,717 1,545,896 98,948,654 Total capital assets being depreciated 65,091,327 3,144,233 1,712,326 115,160,941 Less accumulated depreciation for Buildings and improvements 3,389,149 194,228 - 3,583,377 Vehicles, machinery and equipment 2,074,310 199,855 161,775 2,112,390 Infrastructure 59,627,868 1,265,106 1,328,234 59,564,740 Total accumulated depreciation 65,091,3270 1,659,189 1,490,009 65,260,507 Total capital assets being depreciated, net 48,637,707 1,485,044 222,317 49,900,434 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 70,555,479 $ 1,956,084 $ 933,962 $ 71,577,601 - 31 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 33 - 4. CAPITAL ASSETS (Continued) Beginning Balance Increases Decreases Ending Balance BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $ 1,955,456 $ - $ - $ 1,955,456 Construction in progress 8,536 - 8,536 - Total capital assets not being depreciated 1,963,992 - 8,536 1,955,456 Capital assets being depreciated Buildings and improvements 44,721,679 463,510 - 45,185,189 Parking lot improvements 1,950,830 - - 1,950,830 Vehicles, machinery and equipment 595,397 158,800 127,707 626,490 Water distribution system 14,042,799 1,148,313 341,779 14,849,333 Sanitary sewer system 4,369,256 70,000 27,387 4,411,869 Total capital assets being depreciated 65,679,961 1,840,623 496,873 67,023,711 Less accumulated depreciation for Buildings and improvements 2,800,888 636,114 - 3,437,002 Parking lot improvements 827,856 17,825 - 845,681 Vehicles, machinery and equipment 582,904 3,100 127,707 458,297 Water distribution system 2,242,883 201,996 341,779 2,103,100 Sanitary sewer system 1,354,905 62,148 27,387 1,389,666 Total accumulated depreciation 7,809,436 921,183 496,873 8,233,746 Total capital assets being depreciated, net 57,870,525 919,440 - 58,789,965 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $ 59,834,517 $ 919,440 $ 8,536 $ 60,745,421 Depreciation expense was charged to functions/programs of the primary government as follows: GOVERNMENTAL ACTIVITIES General government $ 105,370 Public safety 81,557 Highways and streets, including depreciation of general infrastructure assets 1,472,262 DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 1,659,189 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. - 32 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 34 - 5. RISK MANAGEMENT (Continued) Intergovernmental Personnel Benefit Cooperative (IPBC) The Village participates in the Intergovernmental Personnel Benefit Cooperative (IPBC). IPBC is a public entity risk pool established by certain units of local government in Illinois to administer some or all of the personnel benefit programs (primarily medical, dental and life insurance coverage) offered by these members to their officers and employees and to the officers and employees of certain other governmental, quasi governmental and nonprofit public service entities. 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 (MICA) 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 (HELP) 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. - 33 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 35 - 5. RISK MANAGEMENT (Continued) High-Level Excess Liability Pool (HELP) (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 general policy of HELP; makes all appropriations; approves contracts; adopts resolutions providing for the issuance of debt by HELP; adopts bylaws, rules and regulations; and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the bylaws. 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 acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. General obligation bonds currently outstanding are as follows: Issue Fund Debt Retired By Balances April 30 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* $ 4,270,000 $ - $ 195,000 $ 4,075,000 $ 205,000 General Obligation Bond Series of 2010A ($12,500,000 dated November 3, 2010; maturing December 1, 2030; payable in annual installments; interest rates from .80% to 5.50%) Debt Service** 4,574,000 - 218,000 4,356,000 220,000 Sewer 6,861,000 - 327,000 6,534,000 330,000 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* 9,275,000 - 245,000 9,030,000 255,000 - 34 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 36 - 6. LONG-TERM DEBT (Continued) a. General Obligation Bonds (Continued) Issue Fund Debt Retired By Balances April 30 Additions Reductions Balances December 31 Current Portion General Obligation Taxable Bond Series of 2011B ($12,500,000 dated October 17, 2011; maturing December 1, 2031; payable in annual installments; interest rates of 4.00%) Sewer*** $ 12,500,000 $ - $ - $ 12,500,000 $ - 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% - 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% - 2.25%) Debt Service 5,875,000 - 270,000 5,605,000 255,000 Sewer 3,200,000 - 395,000 2,805,000 405,000 TOTAL $ 56,555,000 $ - $ 1,650,000 $ 54,905,000 $ 1,670,000 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. - 35 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 37 - 6. LONG-TERM DEBT (Continued) a. General Obligation Bonds (Continued) 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. * The Village abated the tax levy on this bond issue for fiscal 2013 and evaluates annually if the Village is financially capable of doing so. The debt is being retired by transfers from various funds. ** The Village abated a portion of the tax levy on this bond issue for fiscal 2013 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 U.S. Government. *** The Village abated a portion of the tax levy on this bond issue for fiscal 2013 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 U.S. Government. b. Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Fiscal Year Ending Governmental Activities Business Type Activities December 31, Principal Interest Total Principal Interest Total 2014 $ 935,000 $ 690,404 $ 1,625,404 $ 735,000 $ 1,062,020 $ 1,797,020 2015 962,000 672,059 1,634,059 758,000 1,048,640 1,806,640 2016 989,000 651,844 1,640,844 781,000 1,033,480 1,814,480 2017 1,011,000 629,642 1,640,642 804,000 1,016,852 1,820,852 2018 1,045,000 605,265 1,650,265 825,000 998,229 1,823,229 2019 1,079,000 578,612 1,657,612 851,000 979,119 1,830,119 2020 1,115,000 548,694 1,663,694 875,000 959,783 1,834,783 2021 1,159,000 517,173 1,676,173 901,000 937,898 1,838,898 2022 1,195,000 483,569 1,678,569 930,000 913,380 1,843,380 2023 1,243,000 447,469 1,690,469 957,000 887,392 1,844,392 2024 1,289,000 408,397 1,697,397 991,000 858,577 1,849,577 2025 1,342,000 366,989 1,708,989 1,018,000 828,065 1,846,065 2026 1,395,000 322,417 1,717,417 1,055,000 794,486 1,849,486 2027 1,453,000 274,849 1,727,849 1,087,000 758,916 1,845,916 2028 1,334,000 223,811 1,557,811 13,451,000 720,352 14,171,352 2029 1,915,000 175,373 2,090,373 1,885,000 184,435 2,069,435 2030 1,985,000 113,102 2,098,102 1,940,000 120,525 2,060,525 2031 1,620,000 46,350 1,666,350 1,995,000 54,638 2,049,638 TOTAL $ 23,066,000 $ 7,756,019 $ 30,822,019 $ 31,839,000 $ 14,156,787 $ 45,995,787 - 36 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 38 - 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 April 30, Restated Additions Reductions Balances December 31 Current Portion GOVERNMENTAL ACTIVITIES General obligation bonds Debt Service $23,994,000 $ - $ 928,000 $23,066,000 $ 935,000 Premium 164,113 - 7,543 156,570 - Discount (57,976) - (364) (57,612) - Compensated absences (Governmental) General 1,441,721 185,723 144,172 1,483,272 162,964 Compensated absences (Internal Service) Garage 41,639 2,988 4,164 40,463 28,895 Other postemployment benefit General 716,996 72,480 - 789,476 - TOTAL GOVERNMENTAL ACTIVITIES $26,300,493 $ 261,191 $ 1,083,515 $25,478,169 $ 1,126,859 Fund Debt Retired By Balances April 30, Restated Additions Reductions Balances December 31 Current Portion BUSINESS-TYPE ACTIVITIES General obligation bonds Sewer Sewer $32,561,000 $ - $ 722,000 $31,839,000 $ 735,000 Premium 169,180 - 11,034 158,146 - Compensated absences (Enterprise) Water/Sewer /Parking 240,413 4,308 71 244,650 24,466 Other postemployment benefit Water/Sewer 49,395 4,993 - 54,388 - TOTAL BUSINESS-TYPE ACTIVITIES $33,019,988 $ 9,301 $ 733,105 $32,296,184 $ 759,466 - 37 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 39 - 6. LONG-TERM DEBT (Continued) d. Legal Debt Margin (Continued) The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property...(2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: ...indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum... shall not be included in the foregoing percentage amounts.” To date, the General Assembly has set no limits for home rule municipalities. 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, equipping, 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 - 38 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 40 - 6. LONG-TERM DEBT (Continued) e. Noncommitment Debt - Industrial Development Revenue Bonds (Continued) As of December 31, 2013, there were two IDRBs outstanding. The IDRB for the Chicagoland Jewel High School was refinanced during the fiscal year ended April 30, 2012, and the aggregate principal amount payable could not be determined; however, its original issue amount was $18,920,000. 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 Debt Service $ 818,344 Bond Proceeds Infrastructure Replacement 934,610 General Infrastructure Replacement 1,400,000 Debt Service Sewer 1,790,608 TOTAL $ 4,943,562 The purpose of significant transfers to/from other funds is as follows:  $818,344 transferred from the General Fund to the Debt Service Fund is to make principal and interest payments on debt as property taxes were abated. The amount will not be repaid.  $934,610 transferred from the General Fund to the Infrastructure Replacement Fund is reimbursement for eligible construction project costs.  $1,400,000 transferred from the Bond Proceeds Fund to the Infrastructure Replacement Fund is to provide additional funding needed to complete budgeted capital projects.  $1,790,608 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 Receivable Fund Payable Fund Amount General Water 936,939 TOTAL $ 936,939 The interfund payables/receivables all represent temporary financing that will be repaid within one year. - 39 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 41 - 8. COMMITMENTS High-Level Excess Liability Pool (HELP) 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 3.52% 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 (HELP) 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. - 40 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 42 - 9. CONTINGENT LIABILITIES (Continued) d. Solid Waste Agency of Lake County (SWALCO) 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 (SWALCO) 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 Int ergovernmental 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 bylaws. 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, 2013. - 41 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 43 - 11. OTHER POSTEMPLOYMENT BENEFITS a. Plan Description In addition to providing the pension benefits described, the Village provides postemployment health care benefits (OPEB) for retired employees through a single - employer defined benefit plan. The 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, 2013, 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. - 42 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 44 - 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 April 30, 2012 $ 331,236 $ 186,725 56.4% $ 620,916 April 30, 2013 332,200 186,725 56.2% 766,391 December 31, 2013 186,180 108,707 58.4% 843,864 The net OPEB obligation as of December 31, 2013 was calculated as follows: Annual required contribution $ 181,070 Interest on net OPEB obligation 30,656 Adjustment to annual required contribution (25,546) Annual OPEB cost 186,180 Contributions made 108,707 Increase in net OPEB obligation 77,473 Net OPEB obligation, beginning of year 766,391 NET OPEB OBLIGATION, END OF YEAR $ 843,864 Funded Status and Funding Progress - The funded status of the plan as of December 31, 2013, 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 42.1% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan - 43 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 45 - 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Annual OPEB Costs and Net OPEB Obligation (Continued) and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial methods and assumptions - projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the May 1, 2012, actuarial valuation, the entry-age normal actuarial cost method was used. The actuarial assumptions included 4.0% investment rate of return and an initial healthcare cost trend rate of 8.0% with an ultimate healthcare inflation rate of 6.0%. Both rates include a 3.0% inflation assumption and 4.0% wage inflation assumption. The actuarial value of assets was not determined as the Village has not advance funded its obligation. The plan’s unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis over a 30 year amortization period. The remaining amortization period at December 30, 2013, was 30 years. 12. EMPLOYEE RETIREMENT SYSTEMS a. Plan Descriptions and Provisions 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). 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 ben efits vest after eight years of service. Participating members who retire at age 55 (reduced - 44 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 46 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions and Provisions (Continued) Illinois Municipal Retirement Fund (Continued) benefits) or after age 60 (full benefits) with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire at age 62 (reduced benefits) or after age 67 (full benefits) with ten years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 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. Participating members are required to contribute 4.5% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund the coverage of its own employees in the system, using the actuarial basis specified by state statute (entry-age normal). The employer contribution for the calendar year ended December 31, 2013 was 14.09% of covered payroll. IMRF issues a separate financial report which may be obtained by writing them at IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. This report contains information for IMRF as a whole, but not by individual employer. Police Pension Plan Police sworn personnel are covered by the Police Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contributions levels are governed by Illinois Compiled Statutes (Chapter 40 - Article 5/3) and can be amended only by the Illinois legislature. The Village accounts for the Police Pension Plan as a pension trust fund. At December 31, 2013, the Police Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 34 Terminated employees entitled to benefits but not yet receiving them 2 Current employees Vested 27 Nonvested 12 TOTAL 75 - 45 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 47 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions and Provisions (Continued) Police Pension Plan (Continued) The following is a summary of the Police Pension Plan as provided for in Illinois Compiled Statutes. The Police Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75.00% 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 3.00% of the original pension and 3.00% 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 3.00% compounded. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75.00% 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 anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3.00% or ½ of the change in the Consumer Price Index for the proceeding calendar year. Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the 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. The employer contribution for the fiscal year ended December 31, 2013 was 29.12% of covered payroll. - 46 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 48 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions and Provisions (Continued) Police Pension Plan (Continued) The Police Pension Plan issues a separate financial report which may be obtained by writing them at the Village of Deerfield Village Hall. b. Summary of Significant Accounting Policies and Plan Asset Matters Basis of Accounting - The financial statements are prepared using the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which employee services are performed. Method Used to Value Investments - Investments are reported at fair value. Investment income is recognized as earned. Gains and losses on sales and exchanges of fixed income securities are recognized on the transaction date. Significant Investments - Investments (other than U.S. Government and U.S. Government guaranteed obligations) in a Vanguard Mutual Fund representing 67% of net position available for benefits. Related Party Transactions - There were no securities of the employer or any other related parties included in plan assets, including any loans. Administrative costs for the Police Pension Plan are financed primarily through investment earnings. c. Annual Pension Cost Illinois Municipal Retirement Police Pension Actuarial valuation date December 31, 2011 April 30, 2013 Actuarial cost method Entry-age Normal Entry-age Normal Level Percent of Pay - 47 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 49 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) c. Annual Pension Cost (Continued) Illinois Municipal Retirement Police Pension Asset valuation method 5 Year Smoothed Market 5 Year Smoothed Market Amortization method Level Percentage of Payroll Level Dollar (Closed) Amortization period 30 Years, Open 28 Years, Closed Significant actuarial assumptions a) Rate of return on 7.50% 7.25% present and future assets Compounded Compounded Annually Annually b) Projected salary increase - 4.00% 3.50% attributable to inflation Compounded Compounded Annually Annually c) Additional projected salary .40% to 10.00% 4.00% to 4.17% increases - seniority/merit d) Postretirement benefit increases 3.00% 3.00% Employer annual pension cost (APC) actual contributions and the net pension obligation (NPO) are as follows. The NPO is the cumulative difference between the APC and the contributions actually made. For Fiscal Year Illinois Municipal Retirement Police Pension Annual pension cost (APC) April 30, 2012 $ 994,383 $ 833,548 April 30, 2013 974,395 1,002,006 December 31, 2013 705,723 897,486 - 48 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 50 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) c. Annual Pension Cost (Continued) For Fiscal Year Illinois Municipal Retirement Police Pension Actual contribution April 30, 2012 $ 994,383 $ 860,228 April 30, 2013 974,395 1,023,006 December 31, 2013 705,723 895,479 Percentage of APC contributed April 30, 2012 100.00% 103.20% April 30, 2013 100.00% 102.10% December 31, 2013 100.00% 99.78% NPO (asset) April 30, 2012 $ - $ (976,809) April 30, 2013 - (997,599) December 31, 2013 - (995,592) The Village’s annual pension cost and net pension obligation (asset) for the Police Pension Plan for December 31, 2013 are as follows: Annual required contribution $ 895,479 Interest on net pension obligation (asset) (48,217) Adjustment to annual required contribution 50,224 Annual pension cost 897,486 Contributions made 895,479 Increase in net pension obligation 2,007 Net pension obligation (asset), beginning of year (997,599) NET PENSION OBLIGATION (ASSET), END OF YEAR $ (995,592) Funded Status and Funding Progress - The funded status of the plans as of December 31, 2013 for Illinois Municipal Retirement and April 30, 2013 for the Police Pension (most recent data available) were as follows. The actuarial assumptions used to determine the funded status of the Police Pension Plan are the same actuarial assumptions used to determine the employer APC of the plan as disclosed in Note 12c. - 49 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 51 - 12. EMPLOYEE RETIREMENT SYSTEMS (Continued) c. Annual Pension Cost (Continued) Illinois Municipal Retirement* Police Pension Actuarial accrued liability (AAL) $ 20,224,889 $ 46,720,099 Actuarial value of plan assets 13,985,637 35,139,089 Unfunded actuarial accrued liability (UAAL) 7,182,832 11,581,064 Funded ratio (actuarial value of plan assets/AAL) 69.15% 75.21% Covered payroll (active plan members) $ 7,168,621 $ 3,512,925 UAAL as a percentage of covered payroll 100.20% 329.67% * Includes both the Village and the Library. The actuarial value of plan assets for the Police Pension Pl an above is as of April 30, 2013. Multi-year trend information is presented immediately after the notes to financial statements in the required supplementary information section for the pension plans and the OPEB plan. 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 limited to specified time period and are payable over 15 years solely from sales taxes generated by the commercial entity. The rebates are to be paid monthly with the agreement expiring 15 years after commencement. At December 31, 2013, the Village has accrued an estimated rebate liability of $580,649 for amounts collected by the state through December 31, 2013 but not yet paid to the commercial entity. To date, the Village has paid $14,612,555 to the commercial entity. The agreement has no stated maximum. 14. PRIOR PERIOD ADJUSTMENT During the year ended December 31, 2013, the Village moved its general obligation bonds, premiums and interest payable related to constructing wastewater assets to the Sewer Fund. The Village increased beginning net position at May 1, 2013 of governmental activities by $33,173,051 and decreased business type activities by the same amount. - 50 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Eight Months Ended December 31, 2013 Final Budget Actual REVENUES Taxes 7,270,000$ 7,791,658$ Licenses and permits 1,123,500 1,277,977 Intergovernmental 4,235,000 4,684,741 Charges for services 274,098 337,043 Fines and forfeits 180,300 236,390 Investment income 59,000 (97,366) Miscellaneous 600,500 798,058 Total revenues 13,742,398 15,028,501 EXPENDITURES General government 5,680,009 5,063,006 Public safety 6,739,658 5,886,089 Highways and streets 1,943,581 1,632,884 Total expenditures 14,363,248 12,581,979 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (620,850) 2,446,522 OTHER FINANCING SOURCES (USES) Transfers (out)(2,218,344) (2,218,344) Sale of capital assets 5,000 8,386 Total other financing sources (uses)(2,213,344) (2,209,958) NET CHANGE IN FUND BALANCE (2,834,194)$ 236,564 FUND BALANCE, APRIL 30 19,797,772 FUND BALANCE, DECEMBER 31 20,034,336$ (See independent auditor's report.) - 51 - Schedule of Funding Progress (6) Unfunded Actuarial (2)(4)Accrued (1)Actuarial Unfunded Liability as Actuarial Actuarial Accrued (3)Actuarial (5)a Percentage Valuation Value of Liability Percentage Accrued Annual of Covered Date Plan (AAL)Funded Liability Covered Payroll December 31,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) 2008 8,049,486 15,152,271 53.12%7,102,785 6,738,890 105.40% 2009 9,107,659 16,821,384 54.14%7,713,725 7,006,916 110.09% 2010 9,932,360 17,300,765 57.41%7,368,405 6,847,499 107.61% 2011 11,623,931 19,062,218 60.98%7,438,287 7,149,112 104.04% 2012 12,514,897 19,697,729 63.53%7,182,832 6,984,525 102.84% 2013 13,985,637 20,224,889 69.15%7,182,832 7,168,621 100.20% Schedule of Employer Contributions Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC)Contributed April 30, 2009 783,935$ 783,935$ 100.00% April 30, 2010 848,052 848,052 100.00% April 30, 2011 978,074 978,074 100.00% April 30, 2012 994,383 994,383 100.00% April 30, 2013 974,395 974,395 100.00% December 31, 2013*705,723 705,723 100.00% * The Village changed to a December 31 year-end for the fiscal year ended December 31, 2013. Note: Amounts above include both the Village of Deerfield and Deerfield Public Library. December 31, 2013 VILLAGE OF DEERFIELD, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION ILLINOIS MUNICIPAL RETIREMENT FUND (See independent auditor's report.) - 52 - Schedule of Funding Progress (6) Unfunded Actuarial (2)(4)Accrued (1)Actuarial Unfunded Liability as Actuarial Actuarial Accrued (3)Actuarial (5)a Percentage Valuation Value of Liability Percentage Accrued Annual of Covered Date Plan (AAL)Funded Liability Covered Payroll April 30,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) 2008 27,864,349$ 34,968,811$ 79.68%7,104,462$ 3,192,147$ 222.56% 2009 26,630,887 37,524,305 70.97%10,893,418 3,104,786 350.86% 2010 28,394,421 40,399,625 70.28%12,005,204 3,356,276 357.69% 2011 30,880,930 39,809,633 77.57%8,928,703 3,216,370 277.60% 2012 32,680,996 44,093,099 74.12%11,412,103 3,412,049 334.46% 2012 35,139,089 46,720,153 75.21%11,581,064 3,512,925 329.67% Schedule of Employer Contributions Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC)Contributed April 30, 2009 843,209$ 843,209$ 100.00% April 30, 2010 1,202,006 1,202,006 100.00% April 30, 2011 1,350,132 1,350,132 100.00% April 30, 2012 860,228 860,228 100.00% April 30, 2013 1,023,006 1,023,006 100.00% December 31, 2013*895,479 895,479 100.00% * The Village changed to a December 31 year-end for the fiscal year ended December 31, 2013. December 31, 2013 VILLAGE OF DEERFIELD, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION POLICE PENSION FUND (See independent auditor's report.) - 53 - Schedule of Funding Progress (6) Unfunded Actuarial (2)(4)Accrued (1)Actuarial Unfunded Liability as Actuarial Actuarial Accrued (3)Actuarial (5)a Percentage Valuation Value of Liability Percentage Accrued Annual of Covered Date Plan (AAL)Funded Liability Covered Payroll April 30,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) 2008 -$ 2,642,100$ 0.00%2,642,100$ 8,254,700$ 32.01% 2009 - 4,255,265 0.00%4,255,265 8,121,599 52.39% 2010 - 4,427,351 0.00%4,427,351 8,446,463 52.42% 2011 N/A N/A N/A N/A N/A N/A 2012 N/A N/A N/A N/A N/A N/A 2013 - 4,168,658 0.00%4,168,658 9,909,624 42.07% Schedule of Employer Contributions Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC)Contributed April 30, 2009 109,400$ 202,300$ 54.08% April 30, 2010 168,200 315,350 53.34% 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% * The Village changed to a December 31 year-end for the fiscal year ended December 31, 2013. N/A - Not available December 31, 2013 VILLAGE OF DEERFIELD, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION OTHER POSTEMPLOYMENT BENEFIT PLAN (See independent auditor's report.) - 54 - - 59 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2013 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 (except the Library Bond Proceeds Fund), 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 reserve 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. 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, no supplementary appropriation was necessary. - 55 - SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Eight Months Ended December 31, 2013 Final Budget Actual TAXES Property 2,124,000$ 2,142,554$ Replacement 47,000 57,295 Home rule sales 2,000,000 2,257,183 Local use 166,000 222,405 Electric utility tax 833,000 857,310 Hotel/motel 1,100,000 1,318,409 Telecommunication 1,000,000 936,502 Total taxes 7,270,000 7,791,658 LICENSES AND PERMITS Beer/liquor licenses 65,000 58,875 Food licenses 2,500 3,477 Other business licenses 3,500 4,845 Building permits 700,000 826,447 Contractor's licenses 7,000 4,150 Nonbusiness licenses and permits 15,500 51,072 Vehicle licenses 330,000 329,111 Total licenses and permits 1,123,500 1,277,977 INTERGOVERNMENTAL State grant - 1,100 Sales taxes 3,200,000 3,492,509 Income taxes 1,000,000 1,151,815 State highway maintenance 35,000 39,317 Total intergovernmental 4,235,000 4,684,741 CHARGES FOR SERVICES Special police services 171,098 204,045 Dispatching services 66,000 93,621 50/50 tree planting 35,000 37,303 Engineering services 2,000 2,074 Total charges for services 274,098 337,043 FINES AND FORFEITS 180,300 236,390 INVESTMENT INCOME 59,000 (97,366) VILLAGE OF DEERFIELD, ILLINOIS (This schedule is continued on the following page.) - 56 - SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Eight Months Ended December 31, 2013 Final Budget Actual MISCELLANEOUS False alarms 17,000$ 20,925$ Rentals 225,000 225,405 Miscellaneous 58,500 245,879 Franchise fees 300,000 305,849 Total miscellaneous 600,500$ 798,058$ TOTAL REVENUES 13,742,398$ 15,028,501$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 57 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Eight Months Ended December 31, 2013 Final Budget Actual GENERAL GOVERNMENT Finance department Personnel services 677,500$ 578,556$ Training and development 5,850 1,303 Contractual services 2,481,639 2,235,408 Commodities 9,750 6,037 Utilities 14,750 13,651 Capital outlay 36,711 32,955 Total finance department 3,226,200 2,867,910 Administration Personnel services 504,773 464,295 Training and development 11,300 3,637 Contractual services 514,004 517,790 Commodities 2,450 1,248 Utilities 2,920 1,111 Capital outlay 60,600 56,210 Total administration 1,096,047 1,044,291 Community development Personnel services 708,923 653,645 Training and development 8,097 2,888 Contractual services 117,164 59,538 Commodities 17,133 8,982 Utilities 4,333 4,054 Capital outlay 26,333 13,179 Total community development 881,983 742,286 Engineering Personnel services 249,335 219,012 Training and development 5,950 4,252 Contractual services 161,902 138,531 Commodities 8,200 5,804 Utilities 6,500 5,364 Capital outlay 43,892 35,556 Total engineering 475,779 408,519 Total general government 5,680,009 5,063,006 PUBLIC SAFETY Police department Administrative services Personnel services 704,182 638,240 Training and development 10,750 5,259 (This schedule is continued on the following pages.) - 58 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Eight Months Ended December 31, 2013 Final Budget Actual PUBLIC SAFETY (Continued) Police department (Continued) Administrative services (Continued) Contractual services 614,492$ 361,894$ Commodities 27,600 15,096 Utilities 13,550 11,088 Capital outlay 146,942 104,817 Total administrative services 1,517,516 1,136,394 Communications Personnel services 665,347 631,157 Training and development 5,600 3,437 Contractual services 500 191 Capital outlay 5,500 4,692 Total communications 676,947 639,477 Investigations Personnel services 734,761 694,635 Training and development 4,800 5,327 Contractual services 4,780 3,154 Commodities 12,760 7,138 Capital outlay 5,000 1,328 Total investigations 762,101 711,582 Patrol Personnel services 3,462,644 3,156,603 Training and development 26,900 15,945 Contractual services 45,850 38,552 Commodities 66,700 41,513 Utilities 2,000 1,950 Capital outlay 6,400 3,478 Total patrol 3,610,494 3,258,041 Special detail Personnel services 172,600 140,595 Total special detail 172,600 140,595 Total public safety 6,739,658 5,886,089 HIGHWAYS AND STREETS Public works department Administration Personnel services 196,729 130,188 Training and development 1,700 991 Contractual services 183,602 126,411 (This schedule is continued on the following page.) - 59 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Eight Months Ended December 31, 2013 Final Budget Actual HIGHWAYS AND STREETS (Continued) Public works department (Continued) Administration (Continued) Commodities 5,300$ 3,429$ Utilities 5,350 4,233 Capital outlay 118,243 116,167 Total administration 510,924 381,419 Maintenance Personnel services 551,642 455,840 Contractual services 112,000 90,716 Commodities 76,000 59,234 Utilities 70,000 61,040 Capital outlay 400 - Total maintenance 810,042 666,830 Snow and ice control Personnel services 107,200 65,647 Contractual services 69,000 38,338 Commodities 79,500 102,191 Capital outlay - - Total snow and ice control 255,700 206,176 Forestry Personnel services 7,600 25,472 Contractual services 225,000 221,887 Commodities 16,000 12,251 Capital outlay 62,000 63,265 Total forestry 310,600 322,875 Train station maintenance Personnel services 7,815 6,333 Contractual services 45,000 46,957 Commodities 3,500 2,294 Utilities - - Total train station maintenance 56,315 55,584 Total highways and streets 1,943,581 1,632,884 TOTAL EXPENDITURES 14,363,248$ 12,581,979$ (See independent auditor's report.) - 60 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual REVENUES Taxes Property 1,311,929$ 1,315,256$ Intergovernmental 542,882 499,733 Contribution from library - 742,476 Investment income 1,000 (3,828) Total revenues 1,855,811 2,553,637 EXPENDITURES Debt service Principal retirement 1,135,000 928,000 Interest 1,538,155 697,024 Fiscal charges 6,000 2,300 Total expenditures 2,679,155 1,627,324 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (823,344) 926,313 OTHER FINANCING SOURCES (USES) Transfers in 818,344 818,344 Transfers (out)- (1,790,608) Total other financing sources (uses)818,344 (972,264) NET CHANGE IN FUND BALANCE (5,000)$ (45,951) FUND BALANCE, APRIL 30 113,074 FUND BALANCE, DECEMBER 31 67,123$ (See independent auditor's report.) - 61 - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INFRASTRUCTURE REPLACEMENT FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual REVENUES Taxes Property 45,000$ 44,964$ Intergovernmental 970,000 768,109 Investment income 1,500 (8,075) Miscellaneous 150,000 194,292 Total revenues 1,166,500 999,290 EXPENDITURES Capital outlay Contractual services 1,320,000 875,010 Construction 4,161,000 3,863,708 Total expenditures 5,481,000 4,738,718 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (4,314,500) (3,739,428) OTHER FINANCING SOURCES (USES) Transfers in 2,140,000 2,334,610 Total other financing sources (uses)2,140,000 2,334,610 NET CHANGE IN FUND BALANCE (2,174,500)$ (1,404,818) FUND BALANCE, APRIL 30 2,154,351 FUND BALANCE, DECEMBER 31 749,533$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 62 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL LIBRARY BOND PROCEEDS FUND For the Eight Months Ended December 31, 2013 REVENUES Investment income 83$ Total revenues 83 EXPENDITURES Capital outlay Other capital improvements 541,417 Total expenditures 541,417 NET CHANGE IN FUND BALANCE (541,334) FUND BALANCE, APRIL 30 541,334 FUND BALANCE, DECEMBER 31 -$ (See independent auditor's report.) - 63 - 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, 2011B and 2012 and related expenditures. COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 Debt Capital Service Fund Project Fund Motor Enhanced 2011B Bond Fuel Tax 911 Sinking Proceeds Total Cash and investments 356,103$ 1,290,033$ 1,402,465$ 40,280$ 3,088,881$ Receivables Accounts - 77,092 - - 77,092 Accrued interest 146 298 4,044 - 4,488 Due from other governments 45,605 - - - 45,605 TOTAL ASSETS 401,854$ 1,367,423$ 1,406,509$ 40,280$ 3,216,066$ LIABILITIES Accounts payable 76,086$ 2,985$ -$ -$ 79,071$ Total liabilities 76,086 2,985 - - 79,071 FUND BALANCES Restricted for Maintenance of roadways 325,768 - - - 325,768 Public safety - 1,364,438 - - 1,364,438 Debt service - - 1,406,509 - 1,406,509 Capital projects - - - 40,280 40,280 Total fund balances 325,768 1,364,438 1,406,509 40,280 3,136,995 TOTAL LIABILITIES AND FUND BALANCES 401,854$ 1,367,423$ 1,406,509$ 40,280$ 3,216,066$ ASSETS LIABILITIES AND FUND BALANCES Special Revenue Funds VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 64 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Eight Months Ended December 31, 2013 Debt Capital Service Fund Project Fund Motor Enhanced 2011B Bond Fuel Tax 911 Sinking Proceeds Total REVENUES Property taxes -$ -$ 725,000$ -$ 725,000$ Intergovernmental 390,027 - - - 390,027 Charges for services - 228,170 - - 228,170 Investment income (3,316) (6,820) (46,324) 823 (55,637) Miscellaneous - 6,199 - - 6,199 Total revenues 386,711 227,549 678,676 823 1,293,759 EXPENDITURES Current General government - - 333 - 333 Public safety - 231,032 - - 231,032 Highways and streets 694,000 - - - 694,000 Total expenditures 694,000 231,032 333 - 925,365 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (307,289) (3,483) 678,343 823 368,394 OTHER FINANCING SOURCES (USES) Transfers (out) Infrastructure Replacement Fund - - - (934,610) (934,610) Total other financing sources (uses)- - - (934,610) (934,610) NET CHANGE IN FUND BALANCES (307,289) (3,483) 678,343 (933,787) (566,216) FUND BALANCES, APRIL 30 633,057 1,367,921 728,166 974,067 3,703,211 FUND BALANCES, DECEMBER 31 325,768$ 1,364,438$ 1,406,509$ 40,280$ 3,136,995$ Special Revenue Funds (See independent auditor's report.) - 65 - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MOTOR FUEL TAX FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual REVENUES Intergovernmental Allotments earned 282,000$ 390,027$ Investment income 1,300 (3,316) Total revenues 283,300 386,711 EXPENDITURES Highways and streets Capital outlay 694,000 694,000 Total expenditures 694,000 694,000 NET CHANGE IN FUND BALANCE (410,700)$ (307,289) FUND BALANCE, APRIL 30 633,057 FUND BALANCE, DECEMBER 31 325,768$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 66 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ENHANCED 911 FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual REVENUES Charges for services Other charges 233,000$ 228,170$ Investment income 3,600 (6,820) Miscellaneous 3,650 6,199 Total revenues 240,250 227,549 EXPENDITURES Public safety Contractual services 145,164 138,787 Utilities 43,400 28,732 Capital outlay 350,380 63,513 Total expenditures 538,944 231,032 NET CHANGE IN FUND BALANCE (298,694)$ (3,483) FUND BALANCE, APRIL 30 1,367,921 FUND BALANCE, DECEMBER 31 1,364,438$ (See independent auditor's report.) - 67 - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 2011B SINKING FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual REVENUES Property taxes -$ 725,000$ Investment income - (46,324) Total revenues - 678,676 EXPENDITURES Contractual services - 333 Total expenditures - 333 NET CHANGE IN FUND BALANCE -$ 678,343 FUND BALANCE, APRIL 30 728,166 FUND BALANCE, DECEMBER 31 1,406,509$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 68 - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL BOND PROCEEDS FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual REVENUES Investment income -$ 823$ Total revenues - 823 EXPENDITURES None - - Total expenditures - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES - 823 OTHER FINANCING SOURCES (USES) Transfers (out) Infrastructure Replacement Fund - (934,610) Proceeds on bonds issued, at par - - Premium on bonds issued - - Total other financing sources (uses)- (934,610) NET CHANGE IN FUND BALANCE -$ (933,787) FUND BALANCE, APRIL 30 974,067 FUND BALANCE, DECEMBER 31 40,280$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 69 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATER FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual OPERATING REVENUES Charges for services Water sales 2,800,000$ 3,006,491$ Miscellaneous Permits and fees 25,000 41,379 Penalties 19,000 20,085 Other 32,000 38,661 Total operating revenues 2,876,000 3,106,616 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 471,209 383,170 Operations Distribution 1,671,389 1,792,119 Maintenance - mains and fire hydrants 447,890 464,831 Maintenance - meters 262,333 249,457 Total operating expenses excluding depreciation 2,852,821 2,889,577 OPERATING INCOME BEFORE DEPRECIATION 23,179 217,039 Depreciation - 264,066 OPERATING INCOME (LOSS)23,179 (47,027) NON-OPERATING REVENUES (EXPENSES) Investment income 100 - Total non-operating revenues (expenses)100 - INCOME (LOSS) BEFORE CONTRIBUTIONS 23,279 (47,027) CONTRIBUTIONS - 1,277,114 CHANGE IN NET POSITION 23,279$ 1,230,087 NET POSITION, APRIL 30 15,507,638 NET POSITION, DECEMBER 31 16,737,725$ (See independent auditor's report.) - 70 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual ADMINISTRATION Personnel services 236,202$ 216,220$ Training and development 1,000 1,325 Contractual services 182,850 118,528 Commodities 4,300 2,946 Utilities 8,000 6,809 Capital outlay 38,857 37,342 Total administration 471,209 383,170 OPERATIONS Distribution Personnel services 91,039 95,272 Contractual services 21,500 33,495 Commodities 1,501,350 1,612,920 Utilities 50,000 48,963 Capital outlay 7,500 1,469 Total distribution 1,671,389 1,792,119 Main and fire hydrant maintenance Personnel services 300,390 293,926 Contractual services 67,500 56,254 Commodities 78,500 114,651 Capital outlay 1,500 - Total main and fire hydrant maintenance 447,890 464,831 Meter maintenance Personnel services 131,283 104,543 Contractual services 17,300 22,276 Commodities 3,750 2,149 Capital outlay 110,000 120,489 Total meter maintenance 262,333 249,457 TOTAL OPERATING EXPENSES 2,852,821$ 2,889,577$ (See independent auditor's report.) - 71 - SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION WATER FUND For the Eight Months Ended December 31, 2013 Assets Balances Balances April 30 Additions Retirements December 31 Land 1,877,956$ -$ -$ 1,877,956$ Buildings 4,180,123 - - 4,180,123 Water system improvements 14,042,799 1,148,313 341,779 14,849,333 Equipment and vehicles 595,397 158,800 127,707 626,490 TOTAL 20,696,275$ 1,307,113$ 469,486$ 21,533,902$ Balances Balances April 30 Additions Retirements December 31 Buildings 1,696,376$ 58,970$ -$ 1,755,346$ Water system improvements 2,242,883 201,996 341,779 2,103,100 Equipment and vehicles 582,905 3,100 127,707 458,298 TOTAL 4,522,164$ 264,066$ 469,486$ 4,316,744$ NET ASSET VALUE 17,217,158$ Accumulated Depreciation VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 72 - SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL SEWERAGE FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual OPERATING REVENUES Charges for services Sewer charges 2,000,500$ 2,065,472$ Miscellaneous Permits and fees 8,000 19,920 Penalties 20,000 19,046 Other 3,333 8,735 Total operating revenues 2,031,833 2,113,173 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 454,966 345,698 Operations Treatment plant 1,320,113 1,087,438 Cleaning and maintenance 180,950 170,005 Construction 267,990 202,025 Total operating expenses excluding depreciation 2,224,019 1,805,166 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (192,186) 308,007 Depreciation and amortization - 628,258 OPERATING INCOME (LOSS)(192,186) (320,251) NON-OPERATING REVENUES (EXPENSES) Investment income 100 (739) Interest expense - (714,240) Total non-operating revenues (expenses)100 (714,979) INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (192,086) (1,035,230) CONTRIBUTIONS - 524,973 TRANSFERS IN - 1,790,608 CHANGE IN NET POSITION (192,086)$ 1,280,351 NET POSITION, APRIL 30 42,843,936 Prior period adjustment (33,173,051) NET POSITION, APRIL 30 (RESTATED)9,670,885 NET POSITION, DECEMBER 31 10,951,236$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 73 - SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SEWERAGE FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual ADMINISTRATION Personnel services 186,329$ 176,697$ Training and development 900 1,166 Contractual services 219,900 122,925 Commodities 4,550 3,305 Utilities 3,200 1,849 Capital outlay 40,087 39,756 Total administration 454,966 345,698 OPERATIONS Treatment plant Personnel services 705,710 635,869 Training and development 11,880 10,972 Contractual services 219,170 174,828 Commodities 126,000 72,139 Utilities 185,800 143,284 Miscellaneous 24,500 19,000 Capital outlay 47,053 31,346 Subtotal treatment plant 1,320,113 1,087,438 Less nonoperating expenses Capital assets capitalized - - Total treatment plant 1,320,113 1,087,438 Cleaning and maintenance Personnel services 151,850 147,196 Contractual services 17,500 18,563 Commodities 11,600 4,246 Total cleaning and maintenance 180,950 170,005 Construction Personnel services 189,390 141,607 Contractual services 27,100 10,006 Commodities 51,500 50,412 Total construction 267,990 202,025 TOTAL OPERATING EXPENSES 2,224,019$ 1,805,166$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 74 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION SEWERAGE FUND For the Eight Months Ended December 31, 2013 Assets Balances Balances April 30 Additions Retirements December 31 Construction in progress 8,536$ -$ 8,536$ -$ Sewer system 4,369,256 70,000 27,387 4,411,869 Buildings and improvements 40,541,556 463,510 - 41,005,066 TOTAL 44,919,348$ 533,510$ 35,923$ 45,416,935$ Accumulated Depreciation Balances Balances April 30 Additions Retirements December 31 Sewer system 1,354,905$ 62,147$ 27,387$ 1,389,665$ Buildings and improvements 1,104,511 577,145 - 1,681,656 TOTAL 2,459,416$ 639,292$ 27,387$ 3,071,321$ NET ASSET VALUE 42,345,614$ (See independent auditor's report.) - 75 - SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL REFUSE FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual OPERATING REVENUES Charges for services Refuse billing 316,000$ 324,969$ Miscellaneous 33,000 26,184 Total operating revenues 349,000 351,153 OPERATING EXPENSES Operations Personnel services 85,750 98,522 Contractual services 910,500 829,526 Commodities 27,200 19,105 Capital outlay 6,148 6,148 Total operating expenses 1,029,598 953,301 OPERATING INCOME (LOSS)(680,598) (602,148) NON-OPERATING REVENUES (EXPENSES) Investment income 750 (1,926) Property taxes 905,500 906,951 Total non-operating revenues (expenses)906,250 905,025 CHANGE IN NET POSITION 225,652$ 302,877 NET POSITION, APRIL 30 46,627 NET POSITION, DECEMBER 31 349,504$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 76 - SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual OPERATING REVENUES Parking lot fees 138,000$ 187,386$ Total operating revenues 138,000 187,386 OPERATING EXPENSES Operations 261,432 225,192 Depreciation - 17,825 Total operating expenses 261,432 243,017 OPERATING INCOME (LOSS)(123,432) (55,631) NON-OPERATING REVENUES (EXPENSES) Investment income 1,400 (1,923) Total non-operating revenues (expenses)1,400 (1,923) CHANGE IN NET POSITION (122,032)$ (57,554) NET POSITION, APRIL 30 1,577,171 . NET POSITION, DECEMBER 31 1,519,617$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 77 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual OPERATIONS Parking lots - village and federal funds Personnel services 12,050$ 11,931$ Contractual services 115,266 103,520 Commodities 750 26 Utilities 2,600 1,672 Total parking lots - village and federal funds 130,666 117,149 Parking lots - village construction Personnel services 12,000 11,931 Contractual services 112,766 91,803 Commodities 1,000 - Utilities 5,000 4,309 Total parking lots - village construction 130,766 108,043 TOTAL OPERATING EXPENSES 261,432$ 225,192$ (See independent auditor's report.) - 78 - SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION COMMUTER PARKING LOT FUND For the Eight Months Ended December 31, 2013 Assets Balances Balances April 30 Additions Retirements December 31 Land 77,500$ -$ -$ 77,500$ Parking lot improvements 1,950,830 - - 1,950,830 TOTAL 2,028,330$ -$ -$ 2,028,330$ Accumulated Depreciation Balances Balances April 30 Additions Retirements December 31 Parking lot improvements 827,856$ 17,825$ -$ 845,681$ NET ASSET VALUE 1,182,649$ VILLAGE OF DEERFIELD, ILLINOIS (See independent auditor's report.) - 79 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2013 Vehicle and Equipment Garage Replacement Total CURRENT ASSETS Cash and investments 57,811$ 4,419,580$ 4,477,391$ Receivables Accounts 3,866 - 3,866 Accrued interest 10 1,059 1,069 Prepaid expenses 5,381 - 5,381 Inventory 90,237 - 90,237 Total current assets 157,305 4,420,639 4,577,944 CAPITAL ASSETS Depreciable - 3,814,996 3,814,996 Accumulated depreciation - (2,068,538) (2,068,538) Net capital assets - 1,746,458 1,746,458 Total assets 157,305 6,167,097 6,324,402 CURRENT LIABILITIES Accounts payable 16,891 40,876 57,767 Accrued payroll 4,737 - 4,737 Compensated absences payable 28,895 - 28,895 Total current liabilities 50,523 40,876 91,399 LONG-TERM LIABILITIES Compensated absences payable 11,568 - 11,568 Total long-term liabilities 11,568 - 11,568 Total liabilities 62,091 40,876 102,967 NET POSITION Net investment in capital assets - 1,746,458 1,746,458 Unrestricted 95,214 4,379,763 4,474,977 TOTAL NET POSITION 95,214$ 6,126,221$ 6,221,435$ (See independent auditor's report.) - 80 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Eight Months Ended December 31, 2013 Vehicle and Equipment Garage Replacement Total OPERATING REVENUES Interfund services Billings 205,449$ 359,884$ 565,333$ Miscellaneous 9,456 - 9,456 Total operating revenues 214,905 359,884 574,789 OPERATING EXPENSES Operations 253,297 - 253,297 Commodities - 227,240 227,240 Total operating expenses 253,297 227,240 480,537 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (38,392) 132,644 94,252 Depreciation - 188,838 188,838 OPERATING INCOME (LOSS)(38,392) (56,194) (94,586) NON-OPERATING REVENUES (EXPENSES) Investment income (243) (24,331) (24,574) Gain on disposal of capital assets - 88,845 88,845 Total non-operating revenues (expenses)(243) 64,514 64,271 CHANGE IN NET POSITION (38,635) 8,320 (30,315) NET POSITION, APRIL 30 133,849 6,117,901 6,251,750 NET POSITION, DECEMBER 31 95,214$ 6,126,221$ 6,221,435$ (See independent auditor's report.) - 81 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Eight Months Ended December 31, 2013 Vehicle and Equipment Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services 197,608$ 359,884$ 557,492$ Receipts from miscellaneous revenue 9,456 - 9,456 Payments to suppliers (80,121) (217,385) (297,506) Payments to employees (165,526) - (165,526) Net cash from operating activities (38,583) 142,499 103,916 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 - 93,501 93,501 Capital assets purchased - (521,516) (521,516) Net cash from capital and related financing activities - (428,015) (428,015) CASH FLOWS FROM INVESTING ACTIVITIES Interest received (224) (23,868) (24,092) Net cash from investing activities (224) (23,868) (24,092) NET INCREASE IN CASH AND CASH EQUIVALENTS (38,807) (309,384) (348,191) CASH AND CASH EQUIVALENTS, APRIL 30 96,618 4,728,964 4,825,582 CASH AND CASH EQUIVALENTS, DECEMBER 31 57,811$ 4,419,580$ 4,477,391$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)(38,392)$ (56,194)$ (94,586)$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation - 188,838 188,838 (Increase) decrease in Accounts receivable (2,461) - (2,461) Prepaid expenses (5,380) (5,380) Inventories 7,871 - 7,871 Increase (decrease) in Accounts payable 6,228 9,855 16,083 Accrued payroll (5,273) - (5,273) Compensated absences payable (1,176) - (1,176) NET CASH FROM OPERATING ACTIVITIES (38,583)$ 142,499$ 103,916$ (See independent auditor's report.) - 82 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL GARAGE FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual OPERATING REVENUES Interfund services Billings 244,000$ 205,449$ Miscellaneous 5,000 9,456 Total operating revenues 249,000 214,905 OPERATING EXPENSES Operations 302,038 253,297 OPERATING INCOME (LOSS)(53,038) (38,392) NON-OPERATING REVENUES (EXPENSES) Investment income 300 (243) Total non-operating revenues (expenses)300 (243) CHANGE IN NET POSITION (52,738)$ (38,635) NET POSITION, APRIL 30 133,849 NET POSITION, DECEMBER 31 95,214$ (See independent auditor's report.) - 83 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL GARAGE FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual OPERATING EXPENSES Public works department Personnel services 178,700$ 159,077$ Training and development 900 405 Contractual services 26,000 14,359 Commodities 92,500 74,072 Utilities 1,000 1,157 Capital outlay 2,938 4,227 TOTAL OPERATING EXPENSES 302,038$ 253,297$ (See independent auditor's report.) - 84 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL VEHICLE AND EQUIPMENT REPLACEMENT FUND For the Eight Months Ended December 31, 2013 Original and Final Budget Actual OPERATING REVENUES Interfund services Billings 359,884$ 359,884$ Total operating revenues 359,884 359,884 OPERATING EXPENSES Capital outlay 1,494,963 748,756 Less capital assets capitalized (521,516) (521,516) Net operating expenses 973,447 227,240 OPERATING INCOME BEFORE DEPRECIATION (613,563) 132,644 Depreciation - 188,838 OPERATING INCOME (613,563) (56,194) NON-OPERATING REVENUES (EXPENSES) Investment income 14,000 (24,331) Gain on disposal of capital assets - 88,845 Total non-operating revenues (expenses)14,000 64,514 CHANGE IN NET POSITION (599,563)$ 8,320 NET POSITION, APRIL 30 6,117,901 NET POSITION, DECEMBER 31 6,126,221$ (See independent auditor's report.) - 85 - Original and Final Budget Actual ADDITIONS Contributions - employer 900,000$ 895,479$ Contributions - employee 250,000 256,787 Total contributions 1,150,000 1,152,266 Investment income Net appreciation in fair value of investments 500,000 687,326 Interest earned on investments 400,000 1,257,455 Total investment income 900,000 1,944,781 Less investment expense (10,000) (12,994) Net investment income 890,000 1,931,787 Total additions 2,040,000 3,084,053 DEDUCTIONS Benefits and refunds Pension payments 1,500,000 1,414,193 Separation refunds 15,000 - Administrative 29,300 16,220 Total deductions 1,544,300 1,430,413 NET INCREASE 495,700$ 1,653,640 NET POSITION HELD IN TRUST FOR PENSION BENEFITS April 30 37,407,376 December 31 39,061,016$ VILLAGE OF DEERFIELD, ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN PLAN NET POSITION - BUDGET AND ACTUAL For the Eight Months Ended December 31, 2013 (See independent auditor's report.) - 86 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Eight Months Ended December 31, 2013 Balances Balances April 30 Additions Deductions December 31 ASSETS Cash and investments 1,566,980$ 226,150$ 19,097$ 1,774,033$ Receivables - accrued interest 24 - 14 10 TOTAL ASSETS 1,567,004$ 226,150$ 19,111$ 1,774,043$ LIABILITIES Accounts payable 40,070$ 1,315$ 19,111$ 22,274$ Deposits payable 1,482,923 207,771 - 1,690,694 Other payables 44,011 17,064 - 61,075 TOTAL LIABILITIES 1,567,004$ 226,150$ 19,111$ 1,774,043$ ASSETS Cash and investments 1,518,863$ 207,771$ 19,111$ 1,707,523$ TOTAL ASSETS 1,518,863$ 207,771$ 19,111$ 1,707,523$ LIABILITIES Accounts payable 35,940$ -$ 19,111$ 16,829$ Deposits payable 1,482,923 207,771 - 1,690,694 TOTAL LIABILITIES 1,518,863$ 207,771$ 19,111$ 1,707,523$ ASSETS Cash and investments 48,117$ 18,379$ (14)$ 66,510$ Receivables - accrued interest 24 - 14 10 TOTAL ASSETS 48,141$ 18,379$ -$ 66,520$ LIABILITIES Accounts payable 4,130$ 1,315$ -$ 5,445$ Other payables 44,011 17,064 - 61,075 TOTAL LIABILITIES 48,141$ 18,379$ -$ 66,520$ Deposit Fund All Funds East Shore Radio Network Fund (See independent auditor's report.) - 87 - Date of Issue August 1, 2008 Date of Maturity December 1, 2028 Authorized Issue $5,000,000 Denomination of Bonds $5,000 Interest Rates 3.25%, 3.375%, 3.50%, 3.75%, 3.875%, 4.00%, 4.125%, 4.25% Principal Maturity Date December 1 Payable at Amalgamated Bank, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2013 205,000$ 162,844$ 367,844$ 2014 81,422$ 2014 81,422$ 2014 210,000 155,669 365,669 2015 77,834 2015 77,835 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 4,075,000$ 1,464,194$ 5,539,194$ 732,096$ 732,098$ FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Interest Due on VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2008 December 31, 2013 (See independent auditor's report.) - 88 - Date of Issue November 3, 2010 Date of Maturity December 1, 2030 Authorized Issue $12,500,000 Denomination of Bonds $5,000 Interest Rates .80% to 5.50% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2013 550,000$ 451,235$ 1,001,235$ 2014 225,617$ 2014 225,618$ 2014 555,000 442,435 997,435 2015 221,217 2015 221,218 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 10,890,000$ 4,938,013$ 15,828,013$ 2,469,003$ 2,469,010$ VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2010A December 31, 2013 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Interest Due on (See independent auditor's report.) - 89 - Date of Issue October 17, 2011 Date of Maturity December 1, 2031 Authorized Issue $9,900,000 Denomination of Bonds $5,000 Interest Rates 1.00% to 3.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2013 255,000$ 231,465$ 486,465$ 2014 115,733$ 2014 115,732$ 2014 270,000 228,915 498,915 2015 114,458 2015 114,457 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 2030 16,088 2030 16,087 9,030,000$ 3,091,905$ 12,121,905$ 1,545,959$ 1,545,946$ VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2011A December 31, 2013 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Interest Due on (See independent auditor's report.) - 90 - Date of Issue October 17, 2011 Date of Maturity December 1, 2028 Authorized Issue $12,500,000 Denomination of Bonds $5,000 Interest Rates 4.00% Principal Maturity Date December 1, 2028 Payable at Depository Trust Company, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2013 -$ 500,000$ 500,000$ 2014 250,000$ 2014 250,000$ 2014 - 500,000 500,000 2015 250,000 2015 250,000 2015 - 500,000 500,000 2016 250,000 2016 250,000 2016 - 500,000 500,000 2017 250,000 2017 250,000 2017 - 500,000 500,000 2018 250,000 2018 250,000 2018 - 500,000 500,000 2019 250,000 2019 250,000 2019 - 500,000 500,000 2020 250,000 2020 250,000 2020 - 500,000 500,000 2021 250,000 2021 250,000 2021 - 500,000 500,000 2022 250,000 2022 250,000 2022 - 500,000 500,000 2023 250,000 2023 250,000 2023 - 500,000 500,000 2024 250,000 2024 250,000 2024 - 500,000 500,000 2025 250,000 2025 250,000 2025 - 500,000 500,000 2026 250,000 2026 250,000 2026 - 500,000 500,000 2027 250,000 2027 250,000 2027 12,500,000 500,000 13,000,000 2028 250,000 2028 250,000 12,500,000$ 7,500,000$ 20,000,000$ 3,750,000$ 3,750,000$ VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2011B December 31, 2013 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Interest Due on (See independent auditor's report.) - 91 - Date of Issue February 21, 2012 Date of Maturity December 1, 2031 Authorized Issue $10,000,000 Denomination of Bonds $5,000 Interest Rates 1.25% to 2.75% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2013 -$ 234,762$ 234,762$ 2014 117,381$ 2014 117,381$ 2014 - 234,762 234,762 2015 117,381 2015 117,381 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$ 3,394,238$ 13,394,238$ 1,697,115$ 1,697,123$ VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2012 December 31, 2013 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Interest Due on (See independent auditor's report.) - 92 - Date of Issue January 3, 2013 Date of Maturity December 1, 2031 Authorized Issue $9,075,000 Denomination of Bonds $5,000 Interest Rates 2.00% to 2.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago, Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2013 660,000$ 172,118$ 832,118$ 2014 86,059$ 2014 86,059$ 2014 685,000 158,918 843,918 2015 79,459 2015 79,459 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 8,410,000$ 1,524,455$ 9,934,455$ 762,228$ 762,227$ VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2013 December 31, 2013 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Interest Due on (See independent auditor's report.) - 93 - 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. 94-98 Revenue Capacity These schedules contain information to help the reader assess the Village’s most significant local revenue source, the property tax. 99-100 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. 101-104 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. 105-106 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. 107-109 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. VILLAGE OF DEERFIELD, ILLINOIS NET POSITION BY COMPONENT Last Ten Fiscal Years Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013* GOVERNMENTAL ACTIVITIES Net investment in capital assets 46,416,475$ 47,360,406$ 60,106,127$ 60,243,189$ 62,619,244$ 66,174,872$ 64,483,632$ 51,392,981$ 55,359,465$ 53,407,261$ Restricted 5,642,027 6,634,566 4,088,876 4,979,340 5,899,947 1,698,902 1,833,178 1,864,620 2,000,978 1,690,206 Unrestricted 22,293,759 24,431,788 18,185,786 22,238,210 18,140,003 14,799,887 13,730,019 9,491,193 (3,773,495) 31,078,448 TOTAL GOVERNMENTAL ACTIVITIES 74,352,261$ 78,426,760$ 82,380,789$ 87,460,739$ 86,659,194$ 82,673,661$ 80,046,829$ 62,748,794$ 53,586,948$ 86,175,915$ BUSINESS-TYPE ACTIVITIES Invested in capital assets net of related debt 14,327,902$ 15,898,989$ 16,926,626$ 19,176,339$ 22,289,499$ 25,794,886$ 28,525,266$ 47,891,247$ 59,834,517$ 28,906,421$ Unrestricted 4,753,661 4,066,666 4,841,210 3,120,381 2,071,153 1,332,314 649,610 113,829 140,855 651,661 TOTAL BUSINESS-TYPE ACTIVITIES 19,081,563$ 19,965,655$ 21,767,836$ 22,296,720$ 24,360,652$ 27,127,200$ 29,174,876$ 48,005,076$ 59,975,372$ 29,558,082$ PRIMARY GOVERNMENT Net investment in capital assets 60,744,377$ 63,259,395$ 77,032,753$ 79,419,528$ 84,908,743$ 91,969,758$ 93,008,898$ 84,682,839$ 86,323,125$ 82,313,682$ Restricted 5,642,027 6,634,566 4,088,876 4,979,340 5,899,947 1,698,902 1,833,178 1,864,620 2,000,978 1,690,206 Unrestricted 27,047,420 28,498,454 23,026,996 25,358,591 20,211,156 16,132,201 14,379,629 24,206,411 25,238,217 31,730,109 TOTAL PRIMARY GOVERNMENT 93,433,824$ 98,392,415$ 104,148,625$ 109,757,459$ 111,019,846$ 109,800,861$ 109,221,705$ 110,753,870$ 113,562,320$ 115,733,997$ * Eight months ended December 31, 2013 Data Source Audited Financial Statements - 94 - Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013* EXPENSES Governmental activities General government 17,160,850$ 14,956,404$ 4,602,570$ 4,569,982$ 5,228,097$ 9,833,315$ 5,477,968$ 24,267,281$ 18,988,356$ 5,755,847$ Public safety 6,660,439 6,780,176 7,154,536 7,232,143 7,715,014 8,543,631 8,497,498 8,388,066 8,572,034 6,256,914 Highways and streets 7,113,852 6,404,266 5,822,340 4,451,069 7,317,060 10,985,018 7,749,726 6,602,895 5,753,656 6,208,891 Interest 462,600 372,475 295,435 209,430 215,464 193,105 393,054 1,098,736 1,791,625 628,554 Total governmental activities expenses 31,397,741 28,513,321 17,874,881 16,462,624 20,475,635 29,555,069 22,118,246 40,356,978 35,105,671 18,850,206 Business-type activities Water 3,940,038 4,319,188 4,264,602 6,224,262 3,993,964 4,103,889 4,215,482 4,455,971 4,625,679 3,153,643 Sewerage 2,380,517 2,126,395 2,450,965 2,735,053 3,040,082 2,643,276 2,846,388 2,996,805 3,267,868 3,148,403 Refuse disposal 1,386,178 1,397,308 1,496,548 1,520,190 1,590,167 1,599,244 1,600,736 1,307,850 1,343,691 955,227 Commuter parking 195,513 225,498 246,153 210,307 282,534 262,458 322,431 337,337 352,088 244,940 Total business-type activities expenses 7,902,246 8,068,389 8,458,268 10,689,812 8,906,747 8,608,867 8,985,037 9,097,963 9,589,326 7,502,213 TOTAL PRIMARY GOVERNMENT EXPENSES 39,299,987$ 36,581,710$ 26,333,149$ 27,152,436$ 29,382,382$ 38,163,936$ 31,103,283$ 49,454,941$ 44,694,997$ 26,352,419$ PROGRAM REVENUES Governmental activities Charges for services General government 1,617,058$ 2,384,295$ 1,743,818$ 1,480,008$ 1,645,678$ 1,862,200$ 2,011,535$ 1,833,930$ 2,290,768$ 1,811,306$ Public safety 867,230 884,195 911,421 935,302 956,468 866,510 873,947 986,382 1,047,217 783,151 Highways and streets 10,091 57,912 69,216 75,400 59,609 47,219 73,968 66,279 263,607 234,034 Operating grants and contributions 558,143 557,050 544,823 524,423 490,768 474,526 582,734 715,849 1,140,504 890,860 Capital grants and contributions 1,019,794 235,298 213,575 1,492,153 894,545 2,195,963 360,539 434,225 75,864 58,791 Total governmental activities program revenues 4,072,316 4,118,750 3,482,853 4,507,286 4,047,068 5,446,418 3,902,723 4,036,665 4,817,960 3,778,142 Business-type activities Charges for services Water 4,038,598 4,644,744 4,250,938 4,365,767 3,647,017 3,567,809 3,777,700 3,891,387 4,295,580 3,006,491$ Sewerage 1,713,520 1,788,238 2,372,061 2,396,295 2,306,028 2,320,123 2,450,088 2,499,701 2,892,170 2,065,472 Refuse disposal 630,935 615,349 623,681 624,349 623,738 622,629 608,475 461,887 476,926 324,969 Commuter parking 202,497 206,205 204,177 212,585 218,770 209,165 204,236 201,426 223,381 187,386 Capital grants and contributions - 573,179 1,002,909 441,605 - - 2,963,996 19,620,003 12,566,460 1,802,087 Total business-type activities program revenues 6,585,550 7,827,715 8,453,766 8,040,601 6,795,553 6,719,726 10,004,495 26,674,404 20,454,517 7,386,405 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 10,657,866$ 11,946,465$ 11,936,619$ 12,547,887$ 10,842,621$ 12,166,144$ 13,907,218$ 30,711,069$ 25,272,477$ 11,164,547$ CHANGE IN NET POSITION VILLAGE OF DEERFIELD, ILLINOIS Last Ten Fiscal Years - 95 - VILLAGE OF DEERFIELD, ILLINOIS CHANGE IN NET POSITION (Continued) Last Ten Fiscal Years Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013* NET (EXPENSE) REVENUE Governmental activities (27,325,425)$ (24,394,571)$ (14,392,028)$ (11,955,338)$ (16,428,567)$ (24,108,651)$ (18,215,523)$ (36,320,313)$ (30,287,711)$ (15,072,064)$ Business-type activities (1,316,696) (240,674) (4,502) (2,649,211) (2,111,194) (1,889,141) 1,019,458 17,576,441 10,891,928 (115,808) TOTAL PRIMARY GOVERNMENT NET (EXPENSE) REVENUE (28,642,121)$ (24,635,245)$ (14,396,530)$ (14,604,549)$ (18,539,761)$ (25,997,792)$ (17,196,065)$ (18,743,872)$ (19,395,783)$ (15,187,872)$ GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities Taxes Property and replacement 16,752,445$ 17,081,336$ 6,542,142$ 6,617,648$ 7,093,819$ 8,618,052$ 2,278,574$ 2,822,939$ 4,410,633$ 5,010,070$ Home rule sales - 1,875,874 1,832,281 1,913,268 2,448,385 2,525,183 2,725,330 3,121,749 3,665,374 2,257,183 Simplified telecommunications 298,021 305,226 323,358 354,984 347,666 326,528 644,129 1,752,850 1,430,126 936,501 Other 3,214,073 3,600,623 3,891,356 4,065,091 3,684,318 3,097,643 4,396,881 4,684,153 3,438,882 2,398,124 Intergovernmental 4,490,379 4,480,111 4,533,261 4,552,097 4,438,194 4,995,509 5,281,422 5,968,953 8,474,800 5,396,719 Investment income 835,537 871,624 1,557,378 1,253,533 486,398 166,844 92,855 115,175 117,770 - Miscellaneous 175,507 221,617 210,116 278,667 260,971 393,359 169,500 556,459 252,924 279,991 Special items - - - - - - - - - - Contribution to component unit (127,335) - - - - - - - - - Transfers (out)- - (1,600,000) (2,000,000) (3,132,729) - - - - - Total governmental activities 25,638,627 28,436,411 17,289,892 17,035,288 15,627,022 20,123,118 15,588,691 19,022,278 21,790,509 16,278,588 Business-type activities Property taxes 740,915 786,228 859,502 780,785 807,708 807,968 832,264 889,586 890,214 906,951 Investment income 113,401 66,823 188,864 192,967 49,427 8,304 4,530 3,701 3,024 - Miscellaneous 218,095 271,715 214,481 204,343 185,262 146,400 191,424 360,472 211,867 174,010 Transfers in - - 1,600,000 2,000,000 3,132,729 - - - - - Total business-type activities 1,072,411 1,124,766 2,862,847 3,178,095 4,175,126 962,672 1,028,218 1,253,759 1,105,105 1,080,961 TOTAL PRIMARY GOVERNMENT 26,711,038$ 29,561,177$ 20,152,739$ 20,213,383$ 19,802,148$ 21,085,790$ 16,616,909$ 20,276,037$ 22,895,614$ 17,359,549$ CHANGE IN NET POSITION Governmental activities (1,686,798)$ 4,041,840$ 2,897,864$ 5,079,950$ (801,545)$ (3,985,533)$ (2,626,832)$ (17,298,035)$ (8,497,202)$ 1,206,524$ Business-type activities (244,285) 884,092 2,858,345 528,884 2,063,932 (926,469) 2,047,676 18,830,200 11,970,296 965,153 TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION (1,931,083)$ 4,925,932$ 5,756,209$ 5,608,834$ 1,262,387$ (4,912,002)$ (579,156)$ 1,532,165$ 3,473,094$ 2,171,677$ * Eight months ended December 31, 2013 Data Source Audited Financial Statements - 96 - VILLAGE OF DEERFIELD, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013* GENERAL FUND Reserved 4,090,258$ 3,638,004$ 3,219,255$ 2,233,242$ 453,124$ 447,892$ 443,532$ -$ -$ -$ Unreserved 13,734,009 17,242,457 16,968,193 14,913,911 16,155,829 15,619,459 16,566,828 - - - Nonspendable for Note receivable - - - - - - - 100,000 90,000 80,000 Inventory - - - - - - - 55,190 27,824 54,477 Prepaid items - - - - - - - 441,382 459,247 752,402 Unrestricted Assigned for debt service - - - - - - - 833,396 818,344 831,850 Assigned for capital projects - - - - - - - 1,650,000 1,400,000 1,500,000 Unassigned - - - - - - - 16,206,557 17,002,357 16,815,607 TOTAL GENERAL FUND 17,824,267$ 20,880,461$ 20,187,448$ 17,147,153$ 16,608,953$ 16,067,351$ 17,010,360$ 19,286,525$ 19,797,772$ 20,034,336$ ALL OTHER GOVERNMENTAL FUNDS Reserved 3,805,267$ 6,634,566$ 4,088,876$ 4,979,340$ 5,899,947$ 1,698,902$ 6,927,256$ -$ -$ -$ Unreserved, reported in Special Revenue Funds - - - - - - - - - - Capital Project Funds 3,627,272 1,185,564 976,571 1,804,245 1,928,286 230,653 417,104 - - - Restricted for Capital projects - - - - - - - 14,581,925 1,515,401 40,280 Maintenance of roadways - - - - - - - 601,423 633,057 325,768 Public safety - - - - - - - 1,263,197 1,367,921 1,364,438 Unrestricted Assigned for Debt service - - - - - - - 286,753 841,240 1,473,632 Capital projects - - - - - - - 1,088,012 2,154,351 749,533 TOTAL ALL OTHER GOVERNMENTAL FUNDS 7,432,539$ 7,820,130$ 5,065,447$ 6,783,585$ 7,828,233$ 1,929,555$ 7,344,360$ 17,821,310$ 6,511,970$ 3,953,651$ * Eight months ended December 31, 2013 ** 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. Data Source Audited Financial Statements - 97 - VILLAGE OF DEERFIELD, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013* REVENUES Taxes 24,754,920$ 27,343,170$ 17,122,400$ 17,503,089$ 18,012,382$ 19,562,915$ 15,326,336$ 18,350,644$ 12,220,016$ 9,876,878$ Licenses and permits 1,390,602 2,151,791 1,454,044 1,161,276 1,271,817 1,366,472 1,431,793 1,173,799 1,645,735 1,277,977 Intergovernmental 1,582,943 795,364 762,016 713,470 1,349,486 951,183 944,344 1,152,141 9,692,051 6,342,610 Charges for services 230,320 244,100 239,668 716,522 727,445 654,662 687,515 709,146 710,049 565,213 Fines and forfeitures 606,071 657,581 701,606 261,495 251,680 227,686 262,542 317,262 342,740 236,390 Contribution from library - - - - - - - - 763,572 742,476 Investment income 835,537 871,621 1,557,378 1,253,533 486,398 166,844 92,855 115,175 117,770 (164,823) Miscellaneous 433,279 491,534 514,765 614,796 698,839 821,396 715,868 1,219,949 1,113,205 998,549 Total revenues 29,833,672 32,555,161 22,351,877 22,224,181 22,798,047 23,751,158 19,461,253 23,038,116 26,605,138 19,875,270 EXPENDITURES General government 17,159,086 14,733,899 4,208,961 4,827,462 5,156,342 12,471,646 5,328,331 6,436,048 7,783,224 5,063,339 Public safety 6,655,195 6,818,734 7,114,542 7,273,503 7,656,333 8,322,821 8,407,416 8,352,887 8,540,957 6,117,121 Highways and streets 1,860,596 2,167,013 2,333,709 3,034,841 3,536,206 2,916,045 3,032,200 3,091,770 2,806,358 2,326,884 Capital outlay 4,203,040 4,107,770 8,260,631 4,204,984 6,735,684 6,207,466 8,278,643 23,114,852 24,479,003 5,280,135 Debt service Principal 2,485,000 1,500,000 2,000,000 2,000,000 4,000,000 175,000 180,000 710,000 1,355,000 928,000 Interest 482,750 377,850 302,600 216,600 184,939 193,150 237,997 1,180,062 1,770,522 699,324 Total expenditures 32,845,667 29,705,266 24,220,443 21,557,390 27,269,504 30,286,128 25,464,587 42,885,619 46,735,064 20,414,803 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,011,995) 2,849,895 (1,868,566) 666,791 (4,471,457) (6,534,970) (6,003,334) (19,847,503) (20,129,926) (539,533) OTHER FINANCING SOURCES (USES) Transfers in 2,441,750 2,438,479 4,702,000 4,216,000 8,629,795 923,389 7,506,834 22,440,459 14,290,621 3,152,954 Transfers (out)(2,569,085) (1,877,250) (6,302,000) (6,216,000) (8,629,795) (923,389) (7,506,834) (22,440,459) (14,290,621) (4,943,562) Bonds issued - - - - 5,000,000 - 12,500,000 32,400,000 9,075,000 - Premium (discount) on bonds issued - - - - (30,867) - (69,013) 79,791 253,502 - Special item - - - - - - - - - - Sale of capital assets 4,606 - 20,870 11,052 8,772 94,690 30,161 20,827 3,331 8,386 Total other financing sources (uses)(122,729) 561,229 (1,579,130) (1,988,948) 4,977,905 94,690 12,461,148 32,500,618 9,331,833 (1,782,222) NET CHANGE IN FUND BALANCES (3,134,724)$ 3,411,124$ (3,447,696)$ (1,322,157)$ 506,448$ (6,440,280)$ 6,457,814$ 12,653,115$ (10,798,093)$ (2,321,755)$ Debt service as a percentage of noncapital expenditures 10.36%7.34%14.43%12.77%20.38%1.53%2.09%4.75%7.16%9.02% * Eight months ended December 31, 2013 Data Source Audited Financial Statements - 98 - VILLAGE OF DEERFIELD, ILLINOIS SALES TAX BY CATEGORY Last Ten Calendar Years Calendar Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 General merchandise 214,657$ 297,344$ 217,623$ 268,413$ 181,355$ 215,487$ 222,696$ 233,408$ 222,366$ 224,653$ Food 506,945 646,617 709,999 712,229 656,766 708,194 772,736 798,668 796,940 743,285 Drinking and eating places 469,889 604,698 666,821 749,845 756,872 931,610 932,074 970,059 1,018,539 1,032,833 Apparel 108,410 140,908 189,351 195,358 178,925 205,112 207,981 240,746 205,856 180,876 Furniture & H.H. & radio 579,127 1,026,827 836,653 784,397 676,075 644,981 752,175 713,431 473,808 345,052 Lumber, building hardware 490,021 741,273 681,704 614,752 532,637 622,406 610,072 590,742 564,884 583,287 Automobile and filling stations 168,139 264,775 317,435 257,719 283,125 284,289 434,095 513,421 348,318 358,919 Drugs and miscellaneous retail 994,536 1,707,928 1,899,467 1,877,780 2,184,421 3,211,071 2,625,382 3,625,900 5,476,027 4,692,108 Agriculture and all others 186,343 685,694 788,059 737,298 711,157 895,708 852,588 1,138,377 1,005,454 966,396 Manufacturers 63,701 95,169 125,147 93,150 143,018 196,451 203,171 214,511 237,039 226,254 TOTAL 3,781,768$ 6,211,233$ 6,432,259$ 6,290,941$ 6,304,351$ 7,915,309$ 7,612,970$ 9,039,263$ 10,349,231$ 9,353,663$ 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%0.00%0.50%0.50%0.50%1.00%1.00%1.00%1.00%1.00% Data Source Illinois Department of Revenue - 99 - 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 2004 0.25%0.25%0.25%0.75%0.75%0.00%1.00%5.00% 2005 0.25%0.25%0.25%0.75%0.75%0.50%1.00%5.00% 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% Data Source Village and County Records VILLAGE OF DEERFIELD, ILLINOIS - 100 - RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Business-Type Activities Activities Percentage Fiscal General General Total of Year Obligation Obligation Primary Personal Per Ended Bonds Bonds Government Income*Capita* 2005 9,500,000$ 3,360,000$ 12,860,000$ 1.87%698.15$ 2006 8,000,000 2,980,000 10,980,000 1.60%596.09 2007 6,000,000 2,585,000 8,585,000 1.25%466.07 2008 4,000,000 2,185,000 6,185,000 0.90%335.78 2009 5,000,000 1,775,000 6,775,000 0.98%367.81 2010 4,825,000 1,350,000 6,175,000 0.90%335.23 2011 17,145,000 915,000 18,060,000 2.13%940.43 2012 48,835,000 465,000 49,300,000 5.86%2,678.62 2013 56,555,000 - 56,555,000 6.55%3,063.98 2013**23,066,000 31,839,000 54,905,000 6.49%2,975.56 income and population data. ** 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 VILLAGE OF DEERFIELD, ILLINOIS * See the schedule of Demographic and Economic Statistics on page 106 for personal - 101 - RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years (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 2005 9,500,000$ 3,360,000$ 361,876$ 12,498,124$ 0.42%678.50$ 2006 8,000,000 2,980,000 1,094,777 9,885,223 0.26%536.66 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**23,066,000 31,839,000 1,473,632 53,431,368 4.13%2,895.70 * 2012 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 - 102 - *** (1)(2) Gross Percentage *** General of Debt Village's Obligation Applicable to Share Governmental Unit Debt Government of Debt Village of Deerfield 54,905,000$ 100.000%54,905,000$ Lake County (1)82,955,000 4.690%3,890,590 Lake County Forest Preserve 313,540,000 4.690%14,705,026 Cook County 3,690,315,000 0.110%4,059,347 Cook County Forest Preserve 188,865,000 0.110%207,752 Deerfield Park District (2)3,875,000 97.530%3,779,288 Park District of Highland Park (3)7,880,000 1.270%100,076 Northbrook Park District 7,990,000 3.420%273,258 Lake Elementary School District No. 109 (3)12,705,000 76.030%9,659,612 Lake Elementary School Distrtict No. 112 (2)225,855,000 0.190%429,125 Lake High School District No. 113 14,880,000 29.160%4,339,008 Cook Northfield Township High School District No. 225 98,641,772 2.880%2,840,883 Community College of Lake County No. 532 22,005,000 4.950%1,089,248 Oakton Community College District No. 535 25,540,000 0.670%171,118 Metropolitan Water Reclamation District of Greater Chicago (4)2,515,375,000 0.110%2,766,913 7,210,421,772 48,311,244 Total gross debt 7,265,326,772 103,216,244 Less Debt Service Fund amount available - Village of Deerfield 1,473,632 1,473,632 TOTAL DIRECT AND OVERLAPPING DEBT 7,263,853,140$ 101,742,612$ (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 Source Lake and Cook County Clerk's Offices VILLAGE OF DEERFIELD, ILLINOIS DIRECT AND OVERLAPPING BONDED DEBT - December 31, 2013 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 - 103 - VILLAGE OF DEERFIELD, ILLINOIS LEGAL DEBT MARGIN INFORMATION December 31, 2013 EQUALIZED ASSESSED VALUATION - 2012*1,293,263,968$ Non-Home Rule Legal Debt Limit - 8.625%111,544,017$ Amount of debt applicable to limit: General Obligation Bonds Series 2008 4,075,000 General Obligation Bonds Series 2010A 10,890,000 General Obligation Bonds Series 2011A 9,030,000 General Obligation Bonds Series 2011B 12,500,000 General Obligation Bonds Series 2012 10,000,000 General Obligation Bonds Series 2013 8,410,000 Total amount of debt applicable to limit:54,905,000 NON-HOME RULE LEGAL DEBT MARGIN 56,639,017$ * Most Recent EAV Available 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 nonhome rule municipality, its available debt limit would be as follows: "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, ...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." 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. 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: - 104 - Per Capita Median Fiscal Personal Household Unemployment Year Population Income Income Rate 2005 *18,420 37,361$ 107,194$ 1.40% 2006 *18,420 37,361 107,194 1.10% 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% Data Source * 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 VILLAGE OF DEERFIELD, ILLINOIS DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years - 105 - % of % of Total Village Total Village Employer Employees Rank Population Employees Rank Population Walgreen Co 9,600 1 52%2,500 1 14% Baxter International Inc 5,900 2 32%1,000 2 5% Takeda Pharmaceuticals North 1,700 3 9%- - Mondelez International, Inc.1,200 4 7%- - United Stationers 1,100 5 6%- - East West Distributing Co.700 6 4%- - Beam Inc.610 7 3%250 8 1% Township High School District 113 550 8 3%246 9 1% Cornerstone Deerfield LLC 500 9 3%- - Deerfield Park District 500 10 3%- - Hewitt Associates - - 800 3 4% Illinois Student Assistance Commission - - 515 4 3% Fujisawa USA Incorporated - - 450 5 2% Deerfield School District 109 - - 400 6 2% Wm M. Mercer Inc.- - 250 7 1% Shand Morahan - - 240 10 1% 22,360 122%6,651 34% Village population 18,452 18,420 * Eight months ended December 31, 2013 Data Source Lake County Partners VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2013*2004 - 106 - Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013* GENERAL GOVERNMENT Village Manager 3 3 3 3 3 3 2 4 5 5 Finance 8 9 10 10 10 10 10 8 8 8 Engineering 1 2 3 3 3 3 2 2 2 2 Community development 5 6 7 7 7 7 7 7 7 7 PUBLIC WORKS Administration 3 2 4 4 4 4 4 4 4 4 Street maintenance 7 7 7 7 7 7 7 7 7 7 Utilities maintenance 13 13 14 15 15 15 14 14 14 14 Sewage treatment plant 8 8 8 8 8 8 8 8 7 7 Garage 2 2 2 2 2 2 2 2 2 2 PUBLIC SAFETY Police Administration 8 8 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 32 32 31 31 31 31 31 31 33 33 TOTAL 105 107 111 112 112 112 109 109 111 111 * Eight months ended December 31, 2013 Data Source Village budget office VILLAGE OF DEERFIELD, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years - 107 - Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 PUBLIC SAFETY Police Physical arrests 463 498 532 587 568 415 575 513 485 367 Parking violations 3,260 2,332 2,625 2,690 2,385 1,656 1,509 1,343 2,628 2,307 Traffic violations 3,836 4,140 4,119 4,278 4,255 3,703 3,106 3,391 3,367 3,550 PUBLIC WORKS Street resurfacing (miles)2.21 3.11 3.18 3.21 3.14 0.89 0.86 1.83 2.80 1.76 WATER Water main breaks 107 141 62 77 47 59 76 75 78 108 Average daily consumption (gallons)2,998,732 3,350,346 2,998,220 3,128,000 2,566,000 2,630,000 2,683,526 2,522,061 2,805,124 2,730,295 Peak daily consumption (gallons)4,225,510 4,932,570 4,476,210 5,894,000 5,279,000 4,510,000 5,009,819 5,502,196 5,482,125 5,069,827 WASTEWATER Average daily treatment (gallons)3,106,164 2,809,671 3,204,822 2,963,972 3,324,536 3,313,068 2,930,000 3,530,000 2,395,000 2,761,000 Data Source Various village departments VILLAGE OF DEERFIELD, ILLINOIS OPERATING INDICATORS Last Ten Calendar Years - 108 - Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013* PUBLIC SAFETY Police Stations 1 1 1 1 1 1 1 1 1 1 Number of Police Officers 42 42 41 41 41 41 41 41 42 43 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 84 84 88 90 90 90 90 Fire hydrants 1,203 1,203 1,203 1,203 1,203 1,212 1,217 1,208 1,220 1,205 Storage capacity (gallons)8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 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 8,000,000 8,000,000 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 - 109 - Debt Information Direct Debt : General Obligation Bonds $54,905,000 Gross General Percent Village's Share Obligation Debt Applicable of Debt Overlapping Debt : Lake County (1)82,955,000$ 4.690%3,890,590$ Lake County Forest Preserve 313,540,000 4.690%14,705,026 Cook County 3,690,315,000 0.110%4,059,347 Cook County Forest Preserve 188,865,000 0.110%207,752 Deerfield Park District 3,875,000 97.530%3,779,288 Park District of Highland Park 7,880,000 1.270%100,076 Northbrook Park District 7,990,000 3.420%273,258 Lake School District No. 109 (2)12,705,000 76.030%9,659,612 Lake School District No. 112 (2)225,855,000 0.190%429,125 Lake High School District No. 113 14,880,000 29.160%4,339,008 Cook High School District No. 225 98,641,772 2.880%2,840,883 Community College No. 532 22,005,000 4.950%1,089,248 Community College No. 535 25,540,000 0.670%171,118 Metro Water Reclamation District (3)2,515,375,000 0.110%2,766,913 North Shore Sanitary District - 0.025%- Total Overlapping Debt 48,311,244 Total Direct and Overlapping Debt 103,216,244$ Source: Lake and Cook County Clerk's Offices. (1) Excludes Alternate Revenue Bonds. (2) Includes Debt Certificates that are not supported by a property tax levy. (3) Includes Illinois Environmental Protection Agency loans. - 110 - Statement of Indebtedness Amount % of % of Estimated Applicable EAV True Value Per Capita* 2012 Equalized Assessed Valuation (1)1,293,263,968$ 100.00%33.33%70,088$ Estimated True Value 3,879,791,904 300.00%100.00%210,264 Direct Debt 54,905,000 4.25%1.42%2,976 Overlapping Debt 48,311,244 3.74%1.25%2,618 Direct and Overlapping Debt 103,216,244 7.98%2.66%5,594 *Population of 18,452 based on 2013 CAFR. (1) Reflects 2012 Lake County EAV and 2012 Cook County EAV. - 111 - Equalized Assessed Valuation 2008 2009 2010 2011 2012 Residential 1,152,038,203$ 1,170,079,592$ 1,108,117,369$ 1,012,534,720$ 938,649,978$ Commerical 397,882,340 412,939,520 397,215,326 364,721,276 340,275,838 Industrial 19,601,642 23,884,106 17,827,124 15,266,443 14,338,152 Total 1,569,522,185$ 1,606,903,218$ 1,523,159,819$ 1,392,522,439$ 1,293,263,968$ Source: Offices of Lake and Cook County Clerk. Lake County Residential 1,150,686,329$ 1,168,909,109$ 1,107,301,252$ 1,011,816,893$ 937,972,021$ Farm - - - - - Commerical 201,651,978 212,436,454 210,585,916 220,050,035 207,908,753 Industrial 2,572,641 2,514,757 2,723,342 2,713,600 2,562,167 Total 1,354,910,948$ 1,383,860,320$ 1,320,610,510$ 1,234,580,528$ 1,148,442,941$ Cook County Residential 1,351,874$ 1,170,483$ 816,117$ 717,827$ 677,957$ Farm - - - - - Commerical 196,230,362 200,503,066 186,629,410 144,671,241 132,367,085 Industrial 17,029,001 21,369,349 15,103,782 12,552,843 11,775,985 Total 214,611,237$ 223,042,898$ 202,549,309$ 157,941,911$ 144,821,027$ - 112 - Tax Rates Per $100 of Assessed Valuation 2007 2008 2009 2010 2011 2012 Bonds and Interest 0.000 0.000 0.010 0.034 0.098 0.159 Corporate 0.130 0.127 0.123 0.143 0.154 0.164 Garbage 0.053 0.052 0.053 0.059 0.064 0.071 All Other 0.000 0.003 0.003 0.003 0.004 0.063 Total Village 0.183 0.182 0.189 0.239 0.320 0.457 County Including Forest Preserve 0.640 0.650 0.660 0.703 0.755 0.820 Deerfield Elementary Dist. 109 2.286 2.346 2.455 2.665 2.892 3.254 High School District 113 1.619 1.660 1.748 1.921 2.167 2.178 Community College (Lake County) Dist. 532 0.192 0.196 0.200 0.218 0.240 0.272 Deerfield Park District 0.402 0.419 0.431 0.460 0.503 0.546 Deerfield-Bannockburn Fire Protection Dist.0.410 0.426 0.447 0.486 0.529 0.593 Library 0.173 0.177 0.180 0.204 0.237 0.262 All Other 0.042 0.044 0.045 0.065 0.073 0.053 Total 5.947 6.100 6.355 6.961 7.716 8.435 Village as a Percent of Total 3.1%3.0%3.0%3.4%4.1%5.4% Source: Office of Lake County Clerk. - 113 - Tax Extensions and Collections LAKE COUNTY COOK COUNTY Levy Collection Taxes Levy Collection Taxes Year Year Extended Amount Percent Year Year Extended Amount Percent 2003 2004 3,677,468$ 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% Total Levy Collection Taxes Year Year 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% Lake County and Cook County as of 05/08/2014. 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. - 114 - Principal Taxpayers within the Village Taxable % of Total Assessed Taxable Assessed Taxpayer Value Valuation Arden Realty, Inc.37,312,352$ 0.96% Scott Dressing, Sr Mgr Taxation 32,552,216 0.84% JBC Funds Parkway North LLC 31,279,964 0.81% CRM Properties Group 14,453,476 0.37% RREEF America Reit Agent Corner Partners 6,814,044 0.18% Walgreens Co RE#00001-2 6,313,526 0.16% Walgreens Co RE#1079-2 6,002,933 0.15% AEW-DOW Deerfield, LLC 5,980,952 0.15% % Deloitte PTS 5,662,002 0.15% CRP Holdings Pfingsten 5,109,668 0.13% Total 151,481,133$ 3.90% Data Source: Lake & Cook County Clerk's & Assessor's Offices. - 115 -