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Village CAFR For Year Ended April 30, 20040 for the year ended , .AVRdL 30l,- 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended April 30, 2004 r 1 1 1 Prepared by Finance Department Robert W. Fialkowski Director of Finance 1 1 1 1 1 1 1 1 1 1 1 w 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION PrincipalOfficials .............................................................................. ............................... i OrganizationalChart .......................................................................... ............................... Certificate of Achievement for Excellence in Financial Reporting ... ............................... 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 ........................................... ............................... 3 -8 Basic Financial Statements Government -Wide Financial Statements Statement of Net Assets ..........................................:................ ............................... 9 Statement of Activities ............................................................. ............................... 10 -11 Fund Financial Statements Governmental Funds BalanceSheet ...................................................................... ............................... 12 -13 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Assets .......................... 14 Statement of Revenues, Expenditures, and Changes in Fund Balances ........... 15 -16 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities ....................................... ............................... 17 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Pa e s FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Assets ...................................................... ............................... 18 Statement of Revenues, Expenses, and Changes in Net Assets ........................ 19 Statement of Cash Flows .................................................... ............................... 20 -21 Fiduciary Funds Statement of Fiduciary Net Assets ..................................... ............................... 22 Statement of Changes in Fiduciary Net Assets .................. ............................... 23 Notes to Financial Statements ....................................................... ............................... 24 -57 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund .................................................. ............................... 58 Schedule of Funding Progress Illinois Municipal Retirement Fund ......................................... ............................... 59 PolicePension Fund ................................................................. ............................... 60 Schedule of Employer Contributions Illinois Municipal Retirement Fund ......................................... ............................... 61 PolicePension Fund ................................................................. ............................... 62 Notes to Required Supplementary Information ............................ ............................... 63 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) I Page(s) FINANCIAL SECTION (Continued) NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ........................................................ ............................... 72 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES 73 MAJOR GOVERNMENTAL FUNDS Schedule of Revenues - Budget and Actual - General Fund ........ ............................... 64 -65 Schedule of Expenditures - Budget and Actual - General Fund .. ............................... 66 -68 Schedule of Revenues, Expenditures, and Changes in Fund Balance - 75 76 Budget and Actual 77 DebtService Fund ............................................................... ............................... Tax Incremental Finance District 1 Fund ............................ ............................... 69 70 Tax Incremental Finance District 2 Fund ............................ ............................... 71 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ........................................................ ............................... 72 MAJOR ENTEPRISE FUNDS Water Fund Schedule of Revenues, Expenses, and Changes in Net Assets - Budgetand Actual ............................................................. ............................... 78 Schedule of Operating Expenses - Budget and Actual ........ ............................... 79 Schedule of Capital Assets and Depreciation ...................... ............................... 80 Sewerage Fund Schedule of Revenues, Expenses, and Changes in Net Assets - Budgetand Actual ............................................................. ............................... 81 Schedule of Operating Expenses - Budget and Actual ........ ............................... 82 Schedule of Capital Assets and Depreciation. 83 1 Combining Statement of Revenues, Expenditures, and Changes in FundBalances ........................................................................ ............................... 73 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual MotorFuel Tax Fund ........................................................... ............................... 74 Enhanced911 Fund ............................................................. ............................... Infrastructure Replacement Fund ........................................ ............................... 75 76 Project29 Fund .................................................................... ............................... 77 MAJOR ENTEPRISE FUNDS Water Fund Schedule of Revenues, Expenses, and Changes in Net Assets - Budgetand Actual ............................................................. ............................... 78 Schedule of Operating Expenses - Budget and Actual ........ ............................... 79 Schedule of Capital Assets and Depreciation ...................... ............................... 80 Sewerage Fund Schedule of Revenues, Expenses, and Changes in Net Assets - Budgetand Actual ............................................................. ............................... 81 Schedule of Operating Expenses - Budget and Actual ........ ............................... 82 Schedule of Capital Assets and Depreciation. 83 1 Combining Statement of Net Assets ........................................ ............................... 92 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) 93 Combining Statement of Cash Flows ....................................... ............................... 94 Garage Fund Pa e s Schedule of Revenues, Expenses, and Changes in Net Assets - FINANCIAL SECTION (Continued) Budgetand Actual ............................................................. ............................... COMBINING AND INDIVIDUAL FUND Schedule of Operating Expenses - Budget and Actual ........ ............................... FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR ENTERPRISE FUNDS Insurance Fund Combining Statement of Net Assets ........................................ ............................... 84 Schedule of Revenues, Expenses, and Combining Statement of Revenues, Expenses, and Changes in NetAssets ............................................................................... ............................... 85 Changes in Net Assets - Budget and Actual ...................... ............................... Combining Statement of Cash Flows ....................................... ............................... 86 -87 Vehicle and Equipment Replacement Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual Schedule of Revenues, Expenses, and RefuseFund ......................................................................... ............................... 88 Changes in Net Assets - Budget and Actual ...................... ............................... Commuter Parking Lot Fund ............................................... ............................... Commuter Parking Lot Fund 89 Schedule of Operating Expenses - Budget and Actual ........ ............................... 90 Schedule of Capital Assets and Depreciation ...................... ............................... 91 INTERNAL SERVICE FUNDS Combining Statement of Net Assets ........................................ ............................... 92 Combining Statement of Revenues, Expenses and Changes in NetAssets ............................................................................... ............................... 93 Combining Statement of Cash Flows ....................................... ............................... 94 Garage Fund Schedule of Revenues, Expenses, and Changes in Net Assets - Budgetand Actual ............................................................. ............................... 95 Schedule of Operating Expenses - Budget and Actual ........ ............................... 96 Insurance Fund Schedule of Revenues, Expenses, and Changes in Net Assets - Budget and Actual ...................... ............................... 97 Vehicle and Equipment Replacement Fund Schedule of Revenues, Expenses, and Changes in Net Assets - Budget and Actual ...................... ............................... 98 FIDUCIARY FUNDS Combining Statement of Net Assets - Fiduciary Funds ........... ............................... 99 Schedule of Changes in Plan Net Assets - Budget and Actual - PolicePension Fund ............................................................... ............................... 100 Combining Statement of Changes in Assets and Liabilities - AgencyFunds ......................................................................... ............................... 101 I VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) SUPPLEMENTAL DATA Schedule of Insurance in Force ..................................................... ............................... Long -Term Debt Requirements General Obligation Bond Series of 1997 ................................. ............................... General Obligation Bond Series of 1998 .. ... ................... General Obligation Bond Series of 2002 ................................. ............................... General Obligation Refunding Bond Series of 2003 ............... ............................... ISTATISTICAL SECTION Government -Wide Information 1 Government -Wide Revenues ........................................................ ............................... Government -Wide Expenses. General Governmental Revenues by Source - Last Ten Fiscal Years ......................... General Governmental Expenditures by Function - Last Ten Fiscal Years ................ Property Tax Assessed Valuations, Rates, Extensions, and Collections - Last Ten Tax Levy Years ............................................................ ............................... Assessed and Estimated Actual Value of Taxable Property - Last Ten Tax Lev Years Pas e g() 102 103 104 105 106 107 108 109 110 .. 111 -112 y................................................................. ............................... Property Tax Rates - Direct and Overlapping Governments - Last Ten Tax Levy Years ................................................................. ............................... Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita - Last Ten Fiscal Years ........................... Schedule of Direct and Overlapping Bonded Debt ............................ ............................... Schedule of Legal Debt Margin ......................................................... ............................... 113 114 115 116 117 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures - Last Ten Fiscal Years ...................................:................................... ............................... 118 Demographic Statistics - Last Ten Fiscal Years ................................ ............................... 119 Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years ..................... 120 PrincipalTaxpayers ........................................................................... ............................... 121 Miscellaneous Statistics ..................................................................... ............................... 122 -123 1� it 1 1 1 1 1 t 1 ,�j 1 i 1 i 1 1 1 0 0 CL e 0 CO) eG n O� 7 1 f 1 1 t 1 1 1 1 1 1 1 1 1 1 t 1 1 VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL OFFICIALS April 30, 2004 LEGISLATIVE VILLAGE BOARD OF TRUSTEES Harriet E. Rosenthal Matthew J. Wylie Robert L. Benton Steven M. Harris, Mayor Robert D. Franz, Clerk ADMINISTRATIVE Jerry Kayne Vernon E. Swanson William S. Seiden Robert D. Franz, Village Manager FINANCE DEPARTMENT Robert W. Fialkowski Director of Finance/Treasurer -i- Public Boards and Commissions Accounting Mayor and Board of Trustees Sewage Village Attorney Treatment Youth Treasury Code Assistant to the Village Manager Village Manager 3 Employees Management Police Finance Community Public Works Development & Engineering 55 Em lovees 7 Em lovees 5 Employees 34 Employees Patrol Budgeting Planning Water Works Investigations Accounting Zoning Sewage Treatment Youth Treasury Code Streets Management Enforcement Communications Personnel Building Plan Vehicle Review Maintenance Records Utility Billing Permits Storm Drainage Research and P I Purchasing I Appearance I Plan Design Development Review & Review -11- 1 Certificate of Achievement for Excellence in Financial r� Reporting Presented to � Village of Deerfield, � Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended April 30, 2003 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. AGE H President 6 WAPoAATpN S �M7CIb� �iy v Executive Director 1 1 I - iii - VILLAGE OF DEERFIELD October 31, 2004 Honorable Mayor and Members of the Board of Trustees Citizens of the Village of Deerfield The Comprehensive Annual Financial Report ( "CAFR ") of the Village of Deerfield (the "Village ") for the year ended April 30, 2004 is submitted herewith. This report represents a comprehensive picture of the Village's financial activities during Fiscal Year 2003/04 and the financial condition of its various funds at April 30, 2004. 1 The Village is required to issue annually a report of its financial position and activity presented in conformance with generally- accepted accounting principles ( "GAAP ") and audited in accordance with generally- accepted auditing standards by an independent firm of certified public accountants. Although formally addressed to the elected officials and citizens of Deerfield, this financial report has numerous other users. Foremost among the other users are the bondholders of the Village, financial institutions, educational institutions and other governmental entities. Responsibility for both the accuracy of the data presented as well as the completeness and fairness of the presentation, including all disclosures, rests with the Village. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position of the Village and the results of its operations as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the Village's financial affairs have been included. The comprehensive annual financial report is presented in three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, the Village's organizational chart and a list of principal officials. The financial section includes the general purpose external financial statements, and the combining, individual fund financial statements and schedules, as well as the independent auditor's report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi -year basis. The Reporting Entity and its Services The Village of Deerfield was incorporated in 1903 and operates under the council /manager form of government. The legislative body consists of the Mayor and Board of six Trustees, all elected on an at -large basis to overlapping four -year terms. The Village Manager is responsible for the day -to -day operation of the Village. The Village is a home rule municipality as defined by the Illinois Constitution. Located approximately 25 miles north of the City of Chicago, in both Cook and Lake Counties, the Village occupies a land area of 7.0 square miles and has a certified 2000 Census of 18,420. Additional demographic information may be found in the statistical section of this report. The Village provides a number of general governmental services. Specifically, the Village provides police protection, water and sewer utilities including sewerage treatment, street construction and maintenance, code enforcement, planning and zoning and general administrative services. Fire protection service is provided by a separate fire protection district. The financial statements included in this report are distinctly different in form than those issued in prior years. The statements have been prepared in accordance with Statement No. 34 (Basic Financial Statements — and iv 1 850 WAUKEGAN ROAD DEERFIELD, ILLINOIS 60015 TELEPHONE 847.945.5000 1 Management's Discussion and Analysis —for State and Local Governments of the Governmental Accounting 9 Y ) 9 Standards Board ( "GASB "). The GASB is an organization that establishes accounting and financial reporting standards for state and local governments in the United States. Statement No. 34 significantly changed the required format for governmental statements in a number of ways. The most significant of these changes was to require that governments prepare entity -wide financial statements in addition to the fund -based financial statements governments have traditionally prepared. The entity -wide financial statements attempt to present a government's financial position and results of operations in a manner similar to business. More information about this "new financial reporting model" is provided in Management's Discussion and Analysis ( "MD &A "). The MD&A is located in the financial section of this report. 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. The Deerfield Public Library is included as a discrete presentation since a separately elected board of trustees governs it. 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. Revenues are allocated to and accounted for in individual funds based upon the purpose for which they are to be expended and the means 1 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 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, assurances that control objectives will be met. The concept of reasonable assurances 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. Perhaps 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 April 30, 2004 the Village's unemployment rate was estimated to be 3.2 %, compared to 5.0% for Lake County, 5.9% for the State of Illinois and 5.5% for the United States. In spite of the generally slower national and state economy, the Village sales tax revenue (which represents 1 % of the total sales) for 2004 increased 4.3% to $3,420,855 compared to $3,278,965 for 2003. No significantly large V individual new retail opened during the year; generally, the economic prosperity of the local economy enables this source to grow from the prior year. Median family income figures from the 2000 Census demonstrate that the average income of Deerfield residents far exceeds county and state averages. According to the Census Bureau, Deerfield's 2000 median family income was $118,683, compared to $76,424 for Lake County, $55,545 for the State of Illinois and $50,046 for the United States. This ranked Deerfield among the wealthiest communities in the State of Illinois. New commercial and residential construction activity was significant in 2004 as there were 987 new commercial permits (includes remodeling) issued, with a total value of $61 million and 102 new residential housing permits (primarily single family teardowns) issued with a total value of $17 million. 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 non - equipment, 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. The Village has primarily followed a "pay -as- you -go" funding strategy for maintenance.and replacement of assets and has issued debt for new projects as necessary. Cash Management. The Village's policy regarding cash management is based upon the realization that there is a time value to money. A high priority is placed on procedures to ensure that monies due the Village are collected and deposited as promptly as possible. Disbursements are closely controlled. Of equal importance is the emphasis on the management of the Village's investment portfolio. All idle cash is invested in accordance with an established investment policy. The investment policy establishes safety of principal as the foremost objective. The policy provides for full collateralization of all deposits in excess of FDIC limits. The Village is not permitted to leverage its portfolio or invest in risky derivatives. Risk Management. The Village maintains a protected risk retention program for property, casualty, and workers compensation claims. Health insurance for employees and retirees is provided through a public entity risk pool, the Intergovernmental Personnel Benefit Cooperative. The Village also participates in the Municipal Insurance Cooperative Agency (MICA), a public entity risk pool. MICA manages and funds first party property losses, third party liability claims, Workers' Compensation claims, and public officials' liability claims. Aggregate umbrella liability coverage is provided through the Village's membership in the High -level Excess Liability Pool, another public entity risk pool. Pensions and Other Post Employment Benefits. Sworn police personnel receive retirement and disability benefits from the Police Pension Fund. This plan is a defined benefit, single - employer plan administered by a local board of trustees. The defined benefits and employer and employee contribution levels are governed by State statutes.. Police participants are required to contribute 9.91 % of their base salaries. The Village is required to contribute the remaining amount necessary to finance the plan as determined by an enrolled actuary. Municipalities have until the year 2033 to fully fund their police pension plans. All other employees of the Village who work at least 1,000 hours per year are covered by the Illinois Municipal Retirement Fund, ( "IMRF ") a statewide pension plan. IMRF acts as a common investment and administrative agent for local governments in Illinois. Benefit provisions and funding requirements are established by State statute. Employees participating in the IMRF are required to contribute 4.5% of their annual salary and the Village is required to contribute the remaining amounts necessary to fund the coverage of its employees in the plan. The Village's contribution rate for 2004 is 9.28% of employee salaries. The notes to the financial statements and the required supplementary information provide more information pertaining to employee pensions. Vi 1 i Independent Audit State statutes require an annual audit by independent certified public accountants. The accounting firm of Sikich Gardner & Co, LLP performed the audit on the Village's 2003 /04 financial statements. The independent auditors' report is included in the financial section of this report. The auditors have given this report an unqualified opinion, meaning that the financial statements fairly present the Village's financial position at April 30, 2004, and the results of operations for the year then ended. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Deerfield for its comprehensive annual financial report (CAFR) for the fiscal year ended April 30, 2003. 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 government must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The 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 consecutive years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and will be submitting it to GFOA. Acknowledgments The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the Department has my sincere appreciation for the contributions made in the preparation of this report. In particular, I would like to acknowledge the efforts of Ellasion Phillips, Assistant Finance Director, for her efforts in compiling the mountains of data necessary to complete this report and implement GASB 34 while at the same time installing new entity wide financial software. Finally, appreciation is expressed to the Village President and Board of Trustees and the Village Manager for their leadership and support in planning and conducting the fiscal affairs of the Village in a responsible manner. Respectfully submitted, Robert Fialkowski Director of Finance 1 Vii 1 1 1 1 1 LJ 1 1 n 1 1 1 1 L� 1 1 1 _T 0) 7 _n d� H CD O 7 I� MEMBERS OF AMERICAN INSTITUTE OF Sikich Gardner & Co, LLP CERTIFIED PUBLIC ACCOUNTANTS Accountants & Consultants ILLINOIS CPA SOCIETY 998 Corporate Boulevard Aurora, IL 60504 A Member of Sikich Group, LLC 1 The Honorable Mayor 11 INDEPENDENT AUDITOR'S REPORT Members of the Board of Trustees Village of Deerfield, Illinois We have audited the basic, combining, and individual financial statements of the Village of Deerfield, Illinois, as of and for the year ended April 30, 2004, as listed in the accompanying. table of contents. These financial statements are the responsibility of the Village of Deerfield, Illinois' management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides. a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above resent fairly, in all material P p Y respects, the financial position of the Village of Deerfield, Illinois, as of April 30, 2004, and the results of its operations and cash flows of its proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the combining and individual fund financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds of the Village of Deerfield, Illinois, as of April 30, 2004, and the results of operations of such funds and cash flows of individual proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was made for the purpose of forming an opinion on the basic financial statements and on the combining and individual fund financial statements taken as a whole. The accompanying financial information listed as supplemental data and schedules in the table of contents are presented for purposes of additional analysis and is not a required part of the financial statements of the Village of Deerfield, Illinois. Such information has been subjected to the auditing procedures applied in the audit of the basic, combining, and individual fund financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements and each of the combining and individual fund financial statements taken as a whole. 1 1 The Village has adopted the provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - For State and Local Governments, Statement No. 37, Basic Financial Statements - and Management's Discussion and Analysis - For State and Local Governments: Omnibus, Statement No. 38, Certain Financial Statement Note Disclosures and Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements, as of May 1, 2003. This results in a change in the Village's format and content of the basic and combining and individual fund financial statements and notes to the financial statements. The Management's Discussion and Analysis and required supplementary information listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. The introductory and statistical information listed in the table of contents was not audited by us, ' and accordingly, we do not express an opinion thereon. CAP Aurora, Illinois October 28, 2004 1 1 F11 1 1 1 1 1 -2- 1 1 1 t 1 r 1 L� 1 l _l 1 F 1 �j 1 C Co 7 d C d CA T CD t9 y 7 d 1 l _l 1 F 1 �j 1 1 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS April 30, 2004 The Village of Deerfield's (the "Village ") 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 (beginning on page iv) and the Village's financial statements (beginning on page 9). This is the Village's first year reporting under the GASB Statement No. 34 model and, therefore, this report and MD&A do not include comparative figures. Financial Highlights • The Village's General Fund ended the year with total revenues exceeding total expenditures by $7,146. Combined with a transfer -in of $275,000, the April 30, 2004 fund balance increased by $282,146. • New building activity continued at a high pace, primarily the result of single family residential tear - downs. Total building permit revenue was $397,391 for the year. ' Although total revenue from the State income tax and local hotel /motel tax were down compared to the prior year, revenues at the end of the fiscal year were recovering to a higher level. These revenues are dependent on the state and local economy and should continue to improve along with the overall improvement in these economies. ' The Village retired $3,125,000 of general obligation debt during the year and did not issue any new debt. The total balance of debt outstanding as of April 30, 2004 was $15,715,000. • Water sales increased by 7.5% to $4,109,003 due to the combined effects of a 4% rate increase effective May 1, 2003 and drier weather. USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL REPORT The financial statement's focus is on both the Village as a whole (govemment -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 govemment -to- govemment) and enhance the Village's accountability. ' Government -Wide Financial Statements The government -wide financial statements (see pages 9 - 11) 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 Assets (the "Unrestricted Net Assets) 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 10 - 11) is focused on both the gross and net cost of various activities (including governmental and business -type), which are supported by the government's general taxes and other resources. This is intended to summarize and simplify the user's analysis of the cost of various governmental services and /or subsidy to various business -type activities. The Governmental Activities reflect the Village's basic services, including police, public works, engineering and administration. Shared state sales tax, local hotel /motel and shared state income taxes finance the majority of these services. The Business -type Activities reflect private sector type operations (Water, Sewer, and Commuter Parking) where the charges for service typically cover all or most of the cost of operation, including depreciation. i (See independent auditor's report. -3- VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS ' 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 12 - 17) are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government -wide financial statements. However, Governmental fund statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near - term. The government -wide financial statements provide a long -term view. Comparisons between the individual governmental fund statements and the government wide statements provides 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 18 - 21) 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 customer's 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) and the insurance fund. Because internal service funds primarily serve the governmental funds, they are included within the governmental 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 22 - 23) 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 24 of this report. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village's funding of pension benefit obligations to its employees and budget information. , Major funds and component units are reported in the basic financial statements as discussed. Combining and individual statements and schedules for non -major and internal service funds are presented in a subsequent section of this report beginning on page 72. (See independent auditor's report. -4- J VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS FINANCIAL ANALYSIS OF THE VILLAGE AS A WHOLE The Village implemented the new financial reporting model (GASB #34) beginning with the current fiscal year that ' ended April 30, 2004. Over time, as year -to -year financial information is accumulated on a consistent basis, changes in net assets may be observed and used to discuss the changing financial position of the Village as a whole. In future years, historical information will be included in these analyses to improve the usefulness of this data. STATEMENT OF NET ASSETS As of April 30, 2004 (in millions of dollars) ' Governmental Business -type Total Primary Activities Activities Government Current & Other Assets $50.96 $7.25 $58.22 Capital Assets 57.20 16.26 73.46 Total Assets 108.17 23.51 131.68 ' Long -Term Liabilities 10.70 3.57 14.28 Other Liabilities 21.43 1.66 23.07 Total Liabilities 32.13 5.23 37.35 ' Net Assets: Investment in Capital Assets - Net of Related Debt 45.21 12.53 57.74 Restricted Unrestricted 7.15 - 23.68 5.75 7.15 29.43 Total Net Assets $76.04 $18.28 $94.32 The Village's total primary government net assets decreased by $0.2 million primarily due to a contribution of $1.37 ' millions to the Deerfield Park District for the construction of the new senior center. The following table provides a summary of activities causing a change in net assets. Changes in Net Assets ' Fiscal year ending April 30, 2004 (in millions of dollars) Governmental Business -type Total Primary Activities Activities Government Revenue Program Revenues: Charges for Service 1.92 6.67 8.59 Operating Grants 0.53 0.53 Capital Grants 0.30 - 0.30 General Revenue: Property Taxes 16.27 0.76 17.03 ' Other Taxes 6.66 6.66 Other 0.68 0.53 1.21 Total Revenue 26.36 7.96 34.32 Expenses General Government 13.41 - 13.41 Public Safety 6.72 - 6.72 Highways and Streets 4.81 - 4.81 Interest 0.57 0.57 Water Sewer - 3.91 2.34 3.91 2.34 Refuse 1.39 1.39 Parking Lots - 0.04 0.04 Total Expense 25.51 7.68 33.19 (See independent auditor's report. ' -5- VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS Excess (Deficiency) before 0.85 0.27 1.13 contributions Contributions 1.37 - 1.37 Change in Net Assets -0.51 0.27 -0.24 CURRENT YEAR IMPACTS Governmental Activities Revenue In the General Fund, revenues fell short of budget by $0.1. A shortfall of $0.4 in the hotel /motel tax due to continued softness in business travel was offset by revenues in excess of budget of $0.12 from building permits and $0.13 from sales tax, reflecting a strong local economy. Investment income was below budget by $0.3 due to lower overall interest rates and a rise in rates at the end of the fiscal year that caused a drop in market value of the securities held in the Village's portfolio. In the Tax Increment Financing Districts, property tax increment revenue was near budget in Lake Cook Road TIF district (actual of $10.6 versus budget of $10.9) while it exceeded budget in the Village Center district ($3.6 versus $2.8). Expenses Actual expenditures in the General Fund ended the year at 95% of the final budget. All departments and functions were similarly below the actual budget level. Personnel services were somewhat higher than budget in the Community Development, Police Administration and Highways and Streets Administration due to retirements in these departments and the larger payouts into the Retirement Health Savings Plan for these retiring employees. Contractual services across the board were lower as this area generally includes contingent line items for repair and other services. The Village joined the Intergovernmental Personnel Benefit Cooperative effective May 1, 2003. This is a governmental risk management pool for health benefits. The overall increase for health insurance was only 3% due to this membership. The Village returned substantially all of the property tax increment from the Lake Cook Road TIF as surplus to the other taxing bodies. This District will expire on December 31, 2004. Business -type Activities Revenue A rate increase of 4% implemented in May, 2003 and drier than usual weather resulted in water sales of $4.1, an increase of $0.3 or 7.5% from the prior year. Sewer user charges of $1.8 were $0.2 or 14% higher than the prior year due to a rate increase in May of 2003 and higher usage. Refuse charge rates were unchanged, and revenue of $0.6 increased by 3% from the prior year due to additional multi - family units entering the Village waste contract. Commuter parking lot fee income increased by 3% due to higher usage. Expenses Operating expenses for the Water Fund increased by $0.3 or 9.5% primarily due to an increase in wholesale water purchased from Highland Park, due to increased demand, an increase in their wholesale rate, and additional system maintenance costs, including the start of a meter upgrade program. Sewer Fund operating expenses increased by $0.3 due primarily to increase operating expenditures in the wastewater treatment facility. Refuse Fund operating expenses decreased by 1% due to lower administrative costs in the leaf pickup program. (See independent auditor's report. -6- VILLAGE OF DEERFIELD' ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS ' FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS ' Governmental Funds At April 30, 2004, the governmental funds reported a combined fund balance of $28.4 which is a 7.3% decrease from the beginning of the year ($30.6). An increase of $0.3 in the General Fund was offset by planned decreases in the ' Debt Service Fund ($1.2) and the Lake Cook Road TIF District Fund ($0.3) and capital spending in the Infrastructure Replacement Fund. Major Governmental Funds ' The General Fund is the Village's primary operating fund and the largest source of day -to -day service delivery. The undesignated fund balance of the General Fund increased $1.4 from $11.6 to $13. The General fund cash balance of $11.7 provides for 358 days of anticipated expenditures. ' Revenues were 99% of budget of $10.8. Expenditures were $0.5 less than budget. This was due to lower than expected contractual services costs due to no unusually large repair or weather related expenses. and keeping other items below the budgeted amount. State shared revenues, such as income taxes and use taxes, were less than anticipated at the beginning of the fiscal year but began to recover late in the fiscal year. State shared revenues account for only 12.5% of the General Fund total. 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 58. General Fund Budget versus Actual Fiscal year ended April 30, 2004 (in millions) Original Amended Budget Budget Actual Revenues ' Taxes 8.63 8.63 8.35 Intergovernmental 0.04 0.04 0.30 Other 2.10 2.10 1.97 Total 10.77 10.77 10.62 Expenditures & Transfers Expenditures 11.08 11.12 10.61 Transfers - Net 0.31 0.31 -0.28 Total 11.39 11.43 10.33 Change in Fund Balance -0.62 -0.66 0.28 ' Major Proprietary Funds The major proprietary funds operated by the Village are the Water and Sewer funds. The Water Fund operating revenues exceeded operating expenses by $0.7 due to increased water rates and drier than normal weather. Actual ' expenditures were 77% of budget due to lower personnel expenses and delays in getting planned capital projects completed. The Sewer Fund operating expenses exceeded operating revenue by $0.4. Although treatment plant expenses were less than budget due to a delay in completing planned maintenance improvements and personnel costs were lower due to a freeze in hiring, operating revenues are still insufficient to cover costs. A sewer system study will be undertaken in FY 04/05 that will include a manpower review, capital project program, review of alternatives to the current Village -owned treatment plane, and a sewer rate analysis. ' Internal Service Funds The Village's combined internal service funds net assets were $4.2 as of April 30, 2004, with $0.6 of the total segregated for health insurance risks retained by the Village. (See independent auditor's report. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS Capital assets During the fiscal year, 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 April 30, 2004 was $57. The Village's investment in capital assets, net of accumulated depreciation, for business -type activities as of April 30, 2004 was $16. Major capital asset events during the current fiscal year included purchase of the West Deerfield Township interest in property adjacent to the Village Hall, and the construction of a storage building for vehicles and equipment at the municipal storage yard. Long -term debt At the end of the fiscal year, the Village had total bonded debt outstanding of $15.8. Of this amount $1.0 is funded directly from property taxes. The other funding for outstanding debt is from tax increment finance district revenue and water sales revenues. No new debt was issued during the current year. As a home rule government, under Illinois law, the Village has no legal debt limit. As of April 30, 2004 the Village debt represented 1.8% of the equalized assessed value. Bond Rating The Village's general obligation bonds are rated Aaa by Moody's Investor Rating Service. The Aaa rating was last confirmed when refinancing bonds were issued in February 2003. Economic Factors The local Village micro - economy continues to hold firm in spite of a weak State economy. The Village is an affluent residential community with a substantial office /commercial presence. Property taxes are a minor part of the overall operating revenues. Both retail areas of the Village are new or newly rehabilitated, which has contributed to the continued growth in year to year sales tax revenue. Building permit revenues also continue to be strong, primarily due to the redevelopment of residential property with -in the Village. Residential "tear- downs" have resulted in a rise in property values and a median home value of $465,000. The Village's hotel /motel tax has remained stagnant since 2001. However, it appears that the decreases have stopped and that this revenue may be recovering. None of the Village's six hotels have closed during this period. 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.org. (See independent auditor's report. -8- ' See accompanying notes to financial statements. -9- VILLAGE OF DEERFIELD, ILLINOIS ' STATEMENT OF NET ASSETS April 30, 2004 Component Primary Government Unit ' Governmental Business -Type Deerfield Activities Activities Total Public Library ASSETS Cash and investments $ 31,032,555 $ 5,140,103 $ 36,172,658 $ 1,978,247 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 15,242,923 713,682 15,956,605 1,616,386 Accounts 1,096 1,038,184 1,039,280 - Accrued interest 230,936 23,650 254,586 - ' Purchased interest 3,701 3,701 Other 605,529 605,529 Inventory 72,412 96,771 169,183 - Due from other governments 1,141,609 - 1,141,609 Due from component unit 20,934 7,565 28,499 Land held for resale 1,582,087 - 1,582,087 - Deferred charges - 227,706 227,706 - Net pension asset 1,035,203 - 1,035,203 - Capital assets not being depreciated 19,081,309 2,321,382 21,402,691 65,493 Capital assets (net of accumulated depreciation) 38,116,092 13,942,294 52,058,386 256,667 ' Total assets 108,166,386 23,511,337 131,677,723 3,916,793 LIABILITIES Accounts payable 497,463 456,297 953,760 49,441 ' Accrued payroll 119,087 26,151 145,238 22,772 Other payables 93,170 - 93,170 - Accrued interest payable 54,275 45,768 100,043 - Deferred revenues 18,137,818 755,000 18,892,818 1,708,955 Deposits payable 31,424 31,424 Due to fiduciary funds 5,271 - 5,271 - Due to primary government - - - 28,499 ' Noncurrent liabilities Due within one year 2,485,000 370,000 2,855,000 - Due in more than one year 10,703,821 3,574,166 14,277,987 140,978 ' Total liabilities 32,127,329 5,227,382 37,354,711 1,950,645 NET ASSETS Investment in capital assets, net of related debt 45,212,401 12,533,676 57,746,077 322,160 Restricted for Maintenance of roadways 692,436 692,436 ' Public safety 361,876 361,876 Economic development 4,414,764 - 4,414,764 - Debt service Culture and recreation 1,674,419 - 1,674,419 - 1,643,988 Unrestricted 23,683,161 5,750,279 29,433,440 - ' TOTAL NET ASSETS $ 76,039,057 $ 18,283,955 $ 94,323,012 $ 1,966,148 ' See accompanying notes to financial statements. -9- VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended April 30, 2004 -10- Program Revenues Charges Operating Capital FUNCTIONS/PROGRAMS Expenses for Services Grants Grants PRIMARY GOVERNMENT Governmental activities General government $ 13,407,856 $ 1,147,830 $ - $ - Public safety 6,718,927 770,963 - 1,771 Highways and streets 4,809,688 - 534,561 295,449 Interest 574,558 - - - Total governmental activities 25,511,029 1,918,793 534,561 297,220 Business -type activities Water 3,915,324 4,109,003 - - Sewerage 2,335,993 1,772,816 - - Refuse disposal 1,388,879 640,430 - - Commuter parking lot 43,573 151,133 - - Total business -type activities 7,683,769 6,673,382 - - TOTAL PRIMARY GOVERNMENT $ 33,194,798 $ 8,592,175 $ 534,561 $ 297,220 COMPONENT UNIT Deerfield Public Library $ 1,981,558 $ 77,883 $ 23,025 $ - -10- 1 1 1I 1 Net (Expense) Revenue and Change in Net Assets ' Component Primary Government Unit Deerfield Governmental Business -Type Public '. Activities Activities Total Library $ (12,260,026) $ $ (12,260,026) $ (5,946,193) (5,946,193) (3,979,678) - (3,979,678) (574,558) - (574,558) - ' 22,760,455 - 22,760,455 ' - 193,679 193,679 - (563,177) (563,177) - - - (748,449) - 107,560 (748,449) - 107,560 - - (1,010,387) (1,010,387) - ' (22,760,455) (1,010,387) (23,770,842) - - - - (1,880,650) General revenues Taxes Property 16,273,531 761,356 17,034,887 1,980,242 Replacement 90,168 - 90,168 18,146 Sales 3,420,855 - 3,420,855 - Income 1,113,230 1,113,230 - Local use 180,289 180,289 Hotel/motel 1,515,954 - 1,515,954 - Simplified telecommunications 339,634 - 339,634 - Investment income 499,724 56,301 556,025 18,503 Miscellaneous 182,343 101,007 283,350 13,076 Contributions - 365,926 365,926 - Special items (1,370,009) - (1,370,009) - Total 22,245,719 1,284,590 23,530,309 2,029,967 CHANGE IN NET ASSETS (514,736) 274,203 (240,533) 149,317 NET ASSETS, MAY 1 74,803,858 17,247,312 92,051,170 1,816,831 ' Prior 1,749,935 762,440 2,512,375 period adjustment - NET ASSETS, MAY 1, RESTATED 76,553,793 18,009,752 94,563,545 1,816,831 NET ASSETS, APRIL 30 $ 76,039,057 $ 18,283,955 $ 94,323,012 $ 1,966,148 ' See accompanying notes to financial -I1- statements. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 69 a\ Cn big LE �- 00 N O N J W �aoN• -�w�o� N v "D W O �1 �] �1 � J O ►- N In W N J v O 00 G� UI r+ N tTj O i , O 00 O 00 00 O 00 00 0 fD a. +• w (D y A ^ < CD CD CD w � a+ DO 69 a\ Cn big LE �- 00 N O N J W �aoN• -�w�o� N v "D W O �1 �] �1 � J O ►- N In W N J v O 00 O W 00 A. i V N i ..P W � Cn w � _ v NJI, J O N W N N °� O �. ►� N cn O� in �1 �O �° ►- ao O v v J O N O w N J W 69 J W W O a` 0 v 69 W J 00 w O 69 LA N J r+ 69 N ao N O LA CD co A � (D t7�?5 �.ok d '! 5 n• A � is ci °z CD Pr O G� UI r+ N tTj O i , O 00 O 00 00 O 00 00 O W 00 A. i V N i ..P W � Cn w � _ v NJI, J O N W N N °� O �. ►� N cn O� in �1 �O �° ►- ao O v v J O N O w N J W 69 J W W O a` 0 v 69 W J 00 w O 69 LA N J r+ 69 N ao N O LA CD co A � (D t7�?5 �.ok d '! 5 n• A � is ci °z CD Pr O G� r r M O z tTi tTj d C r r 0 O H t a� .� U O ' zo q L N H .f .w Q k U 'Cj U 1 � H U Q y �L=,A y .U. ,O U U C.' kn Vn 'I o 1'- 00 0 0 0\ Z 0 M Z 00 00 �o t- O m z O\ N I- -It .- O C 00 O't M 00 p 00 00 O O M er O� op^ N ,ry N M Il- N Z to O\ M 00 M M [� 7 N 00 00 .--� 64 � 00 M .- i 00 z CA M M •~ 00 N t N N b c`1 O N rq N O 00 �n M N N N 00 V) 69 � N 00 00 I� 00 O 00 i M i i a\ I I I m N M 00 00 00 h r tn h to �O � 69 .r C> O O� pN .r C C �t q aN M l'r1 �O �O O1 Q V1 m r- "T 0 O 00 M O ' lO O� 00 N cl 0o0 i M tn r- O� . to O1 O 5 O C?� O 00 O U U N U In w � zU o � U L' U :3 O ow a c > d � �b U Wv� c ° �4 maw r a 'C-d o -fl N .c U � o O °' o 4 w d U Q 'b q q A U N ' O y � q a = A 0 4 A A O Q � w VILLAGE OF DEERFIELD, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS April 30, 2004 FUND BALANCES OF GOVERNMENTAL FUNDS Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds Long -term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds Accrued interest on long -term liabilities is shown as a liability on the statement of net assets The net pension assets of the police pension fund are included in the governmental activities in the statement of net assets The net assets of the internal service fund are included in the governmental activities in the statement of net assets: Total Less: amount allocated to business -type portion Net governmental activities portion NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 28,391,530 56,568,309 (13,141,318) (54,275) 1,035,203 4,237,323 (997,715) 3,239,608 3,239,608 $ 76,039,057 1 1 1 See accompanying notes to financial statements. , -14 1 1 1 1 1 1 LJ 1 1 1 1 1 1 1 1 1 1 1 (This page is intentionally left blank.) 1 1 1 1 1 1 1 1 �u 1 1 1 1 1 1 1 1 1 O t� o " Y X `@y+ O to w O o0 `r y G � ~ ~ W r., 0 N i � w tn A N r0 W -1 c� 0\ �o 4 — O\ N J �o p 0 00 00 i i 65- J N t°D N ~ \o w tp J b9 N W N w uj to v w d Cn oo r0�oo O N O N �• � CD pip ° i i W i i i i n CD 0 CD CD 00 CD aN ON t.A 00 N G O iC �D In c�c t� '+ 69 t� o " Y X `@y+ O to w O o0 `r y G � ~ ~ W r., r 1 N i � w tn A N r0 W -1 c� 0\ �o 4 — O\ N J �o p ti 00 00 i i J N t°D N ~ \o w tp J b9 N W N w uj to v w d Cn oo r0�oo O N O N �• � t�A pip ° i i W i i i i co O W W O 00 aN ON t.A 00 N G O iC �D In '+ 69 00 0�0 �.-. C) n R �l wp 0 00 Nriq Lh 00 N P 00 N N p C N (ON .wi 69 N 00 v' N �• Lh J 00 J 4 J �10 LA � w p A. to 00 �c �o p �ovi v a� v� w a of w w w ±�Voo,�r -•pow �' LA tNi� 0000 O ttA -,j 00 m W 4 v'- N 00 O m w o� w O O� w tp cn O w ? 00 0 00 O to to N 00 t� o " Y X `@y+ J 'r7 Cr1 y G � o r., tTi ►-' O CA 1 ' O H ' 0 O ' O z� �i do U Hp�� t �+ U N •� as t 1 o c V7 V V1 V � e O G N c 69 C i M GN O In 00 0 C� 69 O o , 0 vi N N 69 i 0 W) w> O� O 0 0 W) N 00 0 4. U N I- V1 N q� C14 N N N ' N00 oNo O ' 00 N N W) 0 00 0 y A N N N V M 00 O w ol .r � ri r rx 0 0 v� v1 00 O� 00 � � � N -- 00 0( 0 C� 69 O o , 0 vi N N 69 i 0 W) w> O� O 0 0 W) N 00 0 4. U N I- V1 N q� C14 N N N ' N00 oNo O ' 00 N N W) 0 00 0 y A V M 00 O w ol .r � ri r rx O a � � d -- 00 0( U N U r M kn a et -� 110 I` oo N 1-0 a O M Vi 14 00 C l m 00 o� v n � n y A ' O w .r � G4 rx O a a� W U U U W u, a O� y � y ^" O' a b4 O U N N ro VILLAGE OF DEERFIELD, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES For the Year Ended April 30, 2004 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ (2,220,962) Amounts reported for governmental activities in the statement activities are different because: Governmental funds report capital outlay as expenditures, however, they are capitalized and depreciated in the statement of activities 1,105,131 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 2,750,000 The decrease in interest payable is reported as a reduction of expense on the statement of activities 24,125 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 (1,862,615) The increase in compensated absences is reported as an addition to expense on the statement of activities (34,753) The decrease in net pension asset is reported as an addition to expense on the statement of activities (9,220) The change in net assets of certain activities of internal service funds is in governmental funds Total (344,844) Less: amount allocated to business -type portion 78,402 Net governmental activities portion (266,442) (266,442) CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ (514,736) it 1 1 See accompanying notes to financial statements. , -17- Net capital assets 12,746,493 2,863,853 443,426 16,053,772 838,996 Total assets 16,081,047 4,265,439 2,147,052 22,493,538 4,322,800 CURRENT LIABILITIES 4,157,887 184,882 864,529 5,207,298 85,477 NET ASSETS VILLAGE OF DEERFIELD, ILLINOIS 282,735 62,326 108,316 453,377 18,718 STATEMENT OF NET ASSETS Accrued payroll 8,151 16,913 363 25,427 PROPRIETARY FUNDS 1,216,704 Accrued interest payable 45,768 - - April 30, 2004 - 1,282,523 Deferred property taxes - - 755,000 755,000 Current portion of general obligations bonds payable 370,000 18,283,955 r 370,000 Governmental Total current liabilities Business -Type Activities 863,679 Activities 21,534 ' LONG -TERM LIABILITIES Nonmajor Total Internal Water Sewerage Enterprise Enterprise Service 850 CURRENT ASSETS 63,943 General obligation bonds payable 3,360,000 - Cash and investments $ 2,428,700 $ 1,066,039 $ 860,920 $ 4,355,659 $ 3,392,594 3,451,233 Receivables 850 3,557,726 63,943 Property taxes - - 713,682 713,682 Accounts - billed 164,421 82,224 30,883 277,528 1,475 Accounts - unbilled 432,009 230,126 98,141 760,276 Accred interest 14,633 6,248 - 20,881 10,769 Due from component unit 2,525 4,813 - 7,338 885 Deferred bond issuance costs 227,706 227,706 Inventory 64,560 12,136 - 76,696 78,081 Total current assets 3,334,554 1,401,586 1,703,626 6,439,766 3,483,804 CAPITAL ASSETS Nondepreciable 1,877,956 - 443,426 2,321,382 - ' Depreciable 13,471,804 5,067,156 613,958 19,152,918 2,352,886 Accumulated depreciation (2,603,267) (2,203,303) (613,958) (5,420,528) (1,513,890) Net capital assets 12,746,493 2,863,853 443,426 16,053,772 838,996 Total assets 16,081,047 4,265,439 2,147,052 22,493,538 4,322,800 ' See accompanying notes to financial statements. -18- CURRENT LIABILITIES 4,157,887 184,882 864,529 5,207,298 85,477 NET ASSETS Accounts payable 282,735 62,326 108,316 453,377 18,718 9,016,493 Accrued payroll 8,151 16,913 363 25,427 2,816 1,216,704 Accrued interest payable 45,768 - - 45,768 - 1,282,523 Deferred property taxes - - 755,000 755,000 Current portion of general obligations bonds payable 370,000 18,283,955 r 370,000 Total current liabilities 706,654 79,239 863,679 1,649,572 21,534 ' LONG -TERM LIABILITIES Compensated absences payable 91,233 105,643 850 197,726 63,943 General obligation bonds payable 3,360,000 - - 3,360,000 - Total long -term liabilities 3,451,233 105,643 850 3,557,726 63,943 ' See accompanying notes to financial statements. -18- Total liabilities 4,157,887 184,882 864,529 5,207,298 85,477 NET ASSETS Invested in capital assets, net of related debt 9,016,493 2,863,853 443,426 12,323,772 838,996 Unrestricted 2,906,667 1,216,704 839,097 4,962,468 3,398,327 TOTAL NET ASSETS $ 11,923,160 $ 4,080,557 $ 1,282,523 17,286,240 $ 4c 237 323 Adjustment to reflect the consolidation of Internal Service Fund activities related to Enterprise Funds 997,715 $ 18,283,955 r ' See accompanying notes to financial statements. -18- OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Administration Operations Capital outlay Total operating expenses OPERATING INCOME (LOSS) BEFORE DEPRECIATION Depreciation OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Property taxes Gain on disposal of capital assets Interest expense Total nonoperating revenues (expenses) INCOME (LOSS) BEFORE CONTRIBUTIONS For the Year Ended April 30, 2004 (4,187) VILLAGE OF DEERFIELD, ILLINOIS (6,431) STATEMENT OF REVENUES, EXPENSES, 761,356 AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS - OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Administration Operations Capital outlay Total operating expenses OPERATING INCOME (LOSS) BEFORE DEPRECIATION Depreciation OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Property taxes Gain on disposal of capital assets Interest expense Total nonoperating revenues (expenses) INCOME (LOSS) BEFORE CONTRIBUTIONS For the Year Ended April 30, 2004 263,493 313,712 - 577,205 1,873,739 3,209,322 1,881,141 1,424,959 6,515,422 332,009 - - - - 574,082 3,472,815 2,194,853 1,424,959 7,092,627 2,779,830 680,813 (382,413) (616,638) (318,238) (210,732) 279,799 101,607 - 381,406 162,679 401,014 (484,020) (616,638) (699,644) (373,411) 35,106 25,382 (4,187) 56,301 (6,431) Governmental 761,356 Business -Type Activities - Activities - - Nonmajor Total Internal Water Sewerage Enterprise Enterprise Service (96,228) 25,382 757,169 686,323 28,567 $ 4,109,003 $ 1,772,816 $ 791,563 $ 6,673,382 $ 2,565,653 44,625 39,624 16,758 101,007 3,445 4,153,628 1,812,440 808,321 6,774,389 2,569,098 263,493 313,712 - 577,205 1,873,739 3,209,322 1,881,141 1,424,959 6,515,422 332,009 - - - - 574,082 3,472,815 2,194,853 1,424,959 7,092,627 2,779,830 680,813 (382,413) (616,638) (318,238) (210,732) 279,799 101,607 - 381,406 162,679 401,014 (484,020) (616,638) (699,644) (373,411) 35,106 25,382 (4,187) 56,301 (6,431) - - 761,356 761,356 - - - - - 34,998 (131,334) - - (131,334) - (96,228) 25,382 757,169 686,323 28,567 304,786 (458,638) 140,531 (13,321) (344,844) CONTRIBUTIONS - - 365,926 365,926 CHANGES IN NET ASSETS 304,786 (458,638) 506,457 352,605 (344,844) NET ASSETS, MAY 1 9,802,541 5,806,637 779,481 16,388,659 3,736,333 Prior period adjustment 1,815,833 (1,267,442) (3,415) 544,976 845,834 NET ASSETS, MAY 1, RESTATED 11,618,374 4,539,195 776,066 16,933,635 4,582,167 NET ASSETS, APRIL 30 $ 11,923,160 $ 4,080,557 $ 1,282,523 17,286,240 $ 4,237,323 Adjustment to reflect the consolidation of Internal Service Fund activities related to Enterprise Funds 997,715 $ 18,283,955 See accompanying notes to financial statements. -19- i� LI '1 I� b 1 1 t irk i� l (This page is intentionally left blank.) VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended April 30, 2004 Governmental Business -Type Activities Activities Nonmajor Total Internal Water Sewer Enterprise Enterprise Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 3,988,568 $ 1,711,472 $ 779,325 $ 6,479,365 $ - Receipts from interfund services - - - - 2,565,377 Receipts from miscellaneous revenues 44,625 39,624 16,758 101,007 3,445 Payments to suppliers (3,152,226) (1,137,258) (1,334,393) (5,623,877) (3,022,191) Payments to employees (757,357) (1,190,142) (91,265) (2,038,764) (243,207) Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Interfund receivables Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Gain on disposal of capital assets Capital assets purchased Bond principal payments Bond interest payments Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sales of investments Interest received Net cash from investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, MAY 1 CASH AND CASH EQUIVALENTS, APRIL 30 123,610 (576,304) (629,575) (1,082,269) (696,576) 759,093 759,093 - - 4,846 759,093 759,093 4,846 34,998 (10,904) (298,505) - (309,409) (155,840) (375,000) - - (375,000) - (102,188) - - (102,188) - (488,092) (298,505) - (786,597) (120,842) 1,083,000 1,200,000 300,000 _2,583,000 - 28,048 32,999 3,813 64,860 19,314 1,111,048 1,232,999 303,813 2,647,860 19,314 746,566 358,190 433,331 1,538,087 (793,258) 1,682,134 707,849 427,589 2,817,572 4,185,852 $ 2,428,700 $ 1,066,039 $ 860,920 $ 4,355,659 $ 3,392,594 (This statement is continued on the following page.) -20- 1 1 1 1 1 1 Il 1 t G ft VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation and ambrtization (Increase) decrease in Receivables Inventories Increase (decrease) in Accounts payable Accrued payroll Compensated absences payable Claims payable NET CASH FROM OPERATING ACTIVITIES NON -CASH TRANSACTIONS Contributions of capital assets by other funds TOTAL NON -CASH TRANSACTIONS For the Year Ended April 30, 2004 Governmental Business -Type Activities Activities Nonmajor Total Internal Water Sewerage Enterprise Enterprise Service $ 401,014 $ (484,020) $ (616,638) $ (699,644) $ (373,411) 279,799 101,607 - 381,406 162,679 (120,435) (61,344) (12,238) (194,017) (276) 17,485 (7;184) - 10,301 (1,154) (421,477) (127,803) (1,912) (551,192) 3,421 569 (3,349) 363 (2,417) (1,548) (33,345) 5,789 850 (26,706) 3,239 - - - - (489,526) $ - $ 123,610 $ (576,304) $ (629,575) $ (1,082,269) $ (696,576) See accompanying notes to financial statements. -21- $ 365,926 $ 365,926 $ - $ 365,926 $ 365,926 $ - See accompanying notes to financial statements. -21- VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS April 30, 2004 ASSETS Cash and cash equivalents Investments U.S. government securities U.S. agencies securities Mutual funds Municipal bonds Negotiable certificates of deposit Receivables Accrued interest Due from other funds Total assets LIABILITIES Accounts payable Deposits payable Other payables Total liabilities NET ASSETS HELD IN TRUST FOR PENSION BENEFITS Pension Agency Trust Fund Funds $ 1,405,254 $ 530,240 7,023,432 - 593,046 - 8,882,884 - 2,100,788 - 675,363 - 96,824 - 5,271 - 20,782,862 530,240 12,325 6,890 - 466,649 56,701 12,325 530,240 $ 20,770,537 $ - See accompanying notes to financial statements. -22- VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS PENSION TRUST FUND For the Year Ended April 30, 2004 ADDITIONS Contributions - employer Property taxes - current Replacement taxes Contributions - employee Total contributions Investment income Net appreciation in fair value of investments Interest earned on investments Total investment income Total additions DEDUCTIONS Benefits and refunds Pension payments Miscellaneous Total deductions NET INCREASE NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1 April 30 See accompanying notes to financial statements. -23- $ 315,762 10,000 288,507 614,269 1,162,025 711,582 1,873,607 2,487,876 1,079,105 7,031 1,086,136 1,401,740 19,368,797 $ 20,770,537 LU VILLAGE OF DEERFIELD, ILLINOIS 1 NOTES TO FINANCIAL STATEMENTS April 30, 2004 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. t 1 -24- 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 the 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, the 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. The PPERS is reported as a pension trust fund. Separate financial statements are issued and available from the Police Pension Board. �1 t 1 -24- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) Discretely Presented Component Unit Village of Deerfield Public Library ary The Deerfield Public Library (the Library) has a separately elected seven - member board, which annually determines its budget and resulting tax levy. Upon approval of the Village, the levy is submitted to the County. All debt of the Library is secured by the full faith and credit. of the Village, which is wholly liable for the debt. The Library, while servicing the general population of the Village, does not provide services entirely to the Village. Because the Library possesses the characteristics of a legally separate government and does not service the primary government, the Library is being reported as a discrete presentation. Separate financial statements are disclosed in the component unit portion of this report. 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, results of its operations, 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, g proprietary, and fiduciary. r -25- J 1 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL" STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting (Continued) Governmental funds are used to account for all or most of the Village's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of capital assets (capital projects funds), and 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). The Village has elected, under the provisions of GASB Statement 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements and all FASB.Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting ' Research Bulletins (ARB) issued on or before November 30, 1989, unless they conflict with or contradict GASB pronouncements. 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. Agency funds generally are used to account for assets that the Village } holds on behalf of others as their agent. C. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the Village. The effect of material interfund activity 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. �I 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. -26- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Government -Wide and Fund Financial Statements (Continued) 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 required to be accounted for in another fund. The Debt Service Fund is used to account for the accumulation of resources for the payment of general long -term debt. The Tax Increment Financing District 1 Fund provides funds for land acquisition and improvements to the Village's Lake Cook Road Tax Increment Financing District. The Tax Increment Financing District 2 Fund provides funds for land acquisition and improvements to the Village's Village Center Tax Increment Financing District. 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. Additionally, the Village reports the following proprietary fund type: Internal Service Funds: The Insurance Fund accounts for the Village's medical, dental, and life insurance programs provided to other departments or agencies of the Village on a cost reimbursement basis. -27- VILLAGE OF DEERFIELD, ILLINOIS 1 NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Government -Wide and Fund Financial Statements (Continued) 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. 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. A one -year availability period is used for revenue recognition for all other governmental fund revenues. 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. -28- 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 partially as governmental activities and partially as. business -type activities on the government -wide financial statements according to the percentage of services provided to the Village's governmental or business -type funds /activities. The Village reports pension trust funds as Fiduciary Funds to account for the Police Pension Fund. d. Basis of Accounting, Measurement Focus, 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. 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 enterprise fund services. Incidental revenues /expenses are reported as non - operating. Governmental fund financial statements are accounted for using a current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period. The Village recognizes property taxes when they become both measurable and available in the period intended to finance. A one -year availability period is used for revenue recognition for all other governmental fund revenues. 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. -28- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Basis of Accounting, Measurement Focus, and Financial Statement Presentation (Continued) Those revenues susceptible to accrual are property taxes, franchise taxes, licenses, interest revenue, and charges for services. Sales and motor fuel taxes 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 deferred revenue on its financial statements. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also 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 liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. e. Cash and Investments Cash and Cash Equivalents For purposes of the statement of cash flows, the Village's proprietary fund types 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 April 30, 2004 for debt and equity securities. f. Short-Term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet. Short-term interfund loans, if any, are classified as " interfund receivables/ payables." -29- 1 1 Ll 1 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 a fund balance reserve account 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 -type inventories are recorded as expenditures when consumed rather than when purchased. i. Prepaid Items Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items. 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. -30- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Assets (Continued) 1 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 35 -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. 1. Long -Term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund type financial statements. Bond premiums and discounts, as well as issuance costs, 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. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. -31- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 r expenditures /expenses in the fund that is reimbursed. All other interfund transactions, except interfund services and reimbursements, are reported as transfers. o. Special Items Certain significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence are special items. The Village has reported the cost of building improvements provided to the Deerfield Park District's Senior Center as a special item. . 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. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments." In addition, investments are separately held by several of the Village's funds. The deposits and investments of the pension trust funds are held separately from those of other funds. The Village has cash on hand of $2,680 which has been excluded from the amounts shown below. m. Fund Equity/Net Assets In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. In the government - wide financial statements, restricted net assets are legally restricted by outside parties for a specific purpose. n. 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 r expenditures /expenses in the fund that is reimbursed. All other interfund transactions, except interfund services and reimbursements, are reported as transfers. o. Special Items Certain significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence are special items. The Village has reported the cost of building improvements provided to the Deerfield Park District's Senior Center as a special item. . 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. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments." In addition, investments are separately held by several of the Village's funds. The deposits and investments of the pension trust funds are held separately from those of other funds. The Village has cash on hand of $2,680 which has been excluded from the amounts shown below. Permitted Deposits and Investments - Statutes 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. Pension funds can also invest in certain non -U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran's loans, obligations of the State of Illinois and its political subdivisions, and Illinois insurance company general and r separate accounts, mutual funds, and equity securities. -32- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) Illinois Funds is an investment pool managed by the State of Illinois, Office of the ' Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund's share price, which is the price the investment could be sold for. a. Deposits At year end, the carrying amount of the Village's deposits totaled $1,379,906 and bank balances totaled $1,379,906. Bank Balances Category 1 Deposits covered by federal depository insurance, or by collateral held by the Village, or its agent, in the Village's name. $ 1,334,354 Category o 2 g Deposits covered by collateral held by the pledging financial institution's trust department, or by its agents, in the Village's name. - Category 3 Deposits covered by collateral held by the pledging financial institution, or its trust department, or its agent but not in the Village's name, and deposits which are uninsured and uncollateralized. 45,552 TOTAL DEPOSITS $ 1,379,906 For pension trust funds, the types of deposits authorized and the mix of credit risk categories do not differ significantly from the other funds of the Village. b. Investments The Village's investments are categorized to give an indication of the level of custodial credit risk assumed by the entity at year end. Category 1 includes investments that are insured or registered or for which the securities are held by the Village or its agent in the Village's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust ' department or agent in the Village's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty in the Village's name, or held by any third party but not in the Village's name. -33- 1 L� 1 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1 2. DEPOSITS AND INVESTMENTS (Continued) b. Investments (Continued) Fair Value Category � 1 2 3 Totals PRIMARY GOVERNMENT U.S. Government Securities $ 7,023,431 $ - $ - $ 7,023,431 U.S. Agency Securities 32,755,697 - - 32,755,697 Negotiable Certificates of Deposit 675,363 - - 675,363 1 Municipal Bonds 2,100,788 - - 2,100,788 $ 42,555,279 $ - - 42,555,279 *Illinois Funds 4,562,913 *Mutual Funds 8,882,887 TOTAL INVESTMENTS * $ 56,001,079 Not subject to custodial credit risk disclosures. The pension trust fund owns 24% percent of the investments in Category 1. 3. RECEIVABLES -TAXES Property taxes for 2003 attach as an enforceable lien on January 1, 2003 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, 2004 and August 1, 2004 and are payable in two installments, on or about March 1, 2004 and September 1, 2004. The County collects such taxes and remits them periodically. The 2004 tax levy, which attached as an enforceable lien on property as of January 1, ' 2004, has not been recorded as a receivable as of April 30, 2004 as the tax has not yet been levied by the Village and will not be levied until December 2004, and, therefore, the levy is not measurable at April 30, 2004. i. 1'. 1 -34- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS Capital asset activity for the year ended April 30, 2004 was as follows: Beginning Balance, Ending Restated* Increases Decreases Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 2,049,921 $ 960,000 $ - $ 3,009,921 Land right of way 16,071,388 - - 16,071,388 Total capital assets not being depreciated 18,121,309 960,000 - 19,081,309 Capital assets being depreciated Buildings and improvements 5,592,245 145,131 - 5,737,376 Vehicles, machinery, and equipment 1,837,168 94,000 74,401 1,856,767 Infrastructure 87,147,504 - - 87,147,504 Total capital assets being depreciated 94,576,917 239,131 74,401 94,741,647 Less accumulated depreciation for Buildings and improvements 1,182,397 162,616 - 1,345,013 Vehicles, machinery, and equipment 1,178,026 124,050 74,401 1,227,675 Infrastructure 52,352,869 1,699,998 - 54,052,867 Total accumulated depreciation 54,713,292 1,986,664 74,401 56,625,555 Total capital assets being depreciated, net 39,863,625 (1,747,533) - 38,116,092 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 57,984,934 $ (787,533) $ - $ 57,197,401 -35- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS (Continued) BUSINESS -TYPE ACTIVITIES Capital assets not being depreciated Land Construction in progress Total capital assets not being depreciated Less accumulated depreciation for Buildings and improvements Parking lot improvements Vehicles, machinery, and equipment Water distribution system Sanitary sewer system Total accumulated depreciation Beginning Ending Balance, Balance, Restated* Increases Decreases Restated $ 1,955,456 $ - $ - $ 1,955,456 - 365,926 - 365,926 1,955,456 365,926 - 2,321,382 6,567,838 Capital assets being depreciated - 6,866,343 Buildings and improvements - Parking lot improvements 1,041,652 Vehicles, machinery, and equipment 38,076 1,065,416 Water distribution system 10,904 Sanitary sewer system 2,380,936 Total capital assets being depreciated Less accumulated depreciation for Buildings and improvements Parking lot improvements Vehicles, machinery, and equipment Water distribution system Sanitary sewer system Total accumulated depreciation Beginning Ending Balance, Balance, Restated* Increases Decreases Restated $ 1,955,456 $ - $ - $ 1,955,456 - 365,926 - 365,926 1,955,456 365,926 - 2,321,382 6,567,838 298,505 - 6,866,343 613,958 - - 613,958 1,041,652 61,840 38,076 1,065,416 8,711,479 10,904 - 8,722,383 2,380,936 - - 2,380,936 19,315,863 371,249 38,076 19,649,036 2,122,381 149,932 - 2,272,313 613,958 - - 613,958 797,941 44,776 38,076 804,641 1,027,054 177,798 - 1,204,852 767,467 43,512 - 810,979 5,328,801 416,018 38,076 5,706,743 Total capital assets being depreciated, net 13,987,062 (44,769) - 13,942,293 BUSINESS -TYPE ACTIVITIES CAPITAL ASSETS, NET $15,942,518 $ 321,157 $ - $16,263,675 *The beginning balance of governmental activities and business -type activities was restated for a change in capitalization threshold, and to reclassify certain capital assets from the former General Fixed Asset Account Group to the reclassified Vehicle Equipment Replacement Fund (formerly a capital projects fund), an internal service fund. Depreciation expense was charged to functions /programs of the primary government as follows: GOVERNMENTAL ACTIVITIES AND GOVERNMENTAL PORTION OF INTERNAL SERVICE FUNDS ' Public safety $ 135,360 Highways and streets, including depreciation of general infrastructure assets 1,851,304 Total depreciation expense — governmental activities and governmental portion of internal service funds 1,986,664 Less: governmental portion of internal service funds (124,049) NET DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 1,862,615 ' -36- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) RISK MANAGEMENT Intergovernmental Personnel Benefit Cooperative (IPBC) 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. 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 the IPBC beyond its representation on the Board of Directors. Formerly, the Village was self - insured for medical coverage and had established a risk financing fund (Insurance Fund) (the Fund) for medical coverage. It is accounted for as an internal service fund where assets are set aside for claim settlements. Each participating fund of the Village made payments to the Fund based upon actuarial estimates of the amounts needed to pay prior and current -year claims. Liabilities of the Fund were reported when it was probable that a loss had occurred and the amount of the loss could be reasonably estimated. Liabilities included an amount for claims that have been incurred but not reported (IBNR). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts, and other economic and societal factors. Changes in the balances of claims liabilities during the past two fiscal years are as follows: CLAIMS PAYABLE, MAY 1 Add claims incurred (including IBNR) Less claims paid CLAIMS PAYABLE, APRIL 30 2004 2003 $ 489,526 $ 308,283 - 1,503,848 (489,526) (1,322,605) $ - $ 489,526 1 t 1 i u 1 [I 1 1 1 1 'I 1 -37- 1 i 1 i lJ i 1 L L 1 t 1 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) RISK MANAGEMENT (Continued) 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. 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 ($11,000,000 of coverage after a $2,000,000 self - insurance retention). The Village's payments to HELP are displayed on the financial statements as expenditures /expenses in appropriate funds. HELP 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 liability 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. 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. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. RISK MANAGEMENT (Continued) High -Level Excess Liability Pool (HELP) (Continued) The Village of Elk Grove Village, Illinois (the initial Host Member) issued $5,000,000 of general obligation bonds in 1987 to provide initial funding for HELP. The bond proceeds were put into escrow with LaSalle. National Bank as escrow agent. An intergovernmental agreement among HELP, the Village of Elk Grove Village, and the Members provides that HELP and its Members are obligated to the Village of Elk Grove Village for payment of principal and interest on the bonds until such bonds have been retired. Additionally, each of the Members is liable for its proportionate share of any default by other Members. The obligations of HELP and its Members are unconditional. 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: Fund Debt Balances Balances Current Issue Retired By May 1 Additions Reductions April 30 Portion General Obligation Bond Series of 1997 ($5,000,000 dated December 1, 1997; maturing December 1, 2012; payable in annual installments; interest rates from 4.35% to 4.50 %) General Obligation Bond Series of 1998 ($17,000,000 dated April 15, 1998; maturing October 1, 2009; payable in annual installments; interest rates from 4.20% to 4.35 %) General Obligation Bond Series of 2002 ($3,460,000 dated February 1, 2002; maturing December 15, 2004; payable in annual installments; interest rates from 3.25% to 4.00 %) Water Fund* $ 645,000 $ Debt Service ** 12,500,000 Debt Service 2,235,000 BRIE - $ 315,000 $ 330,000 $ 330,000 1, - 1,500,000 11,000,000 1,500,000 - 1,250,000 985,000 985,000 1 1 t 1 1 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1 6. LONG -TERM DEBT (Continued) a. General Obligation Bonds (Continued) Fund Debt Balances Balances Current Issue Retired By May I Additions Reductions April 30 Portion General Obligation Bond Series of 2003 ($3,460,000 dated February 28, 2003; maturing December 1, 2012, payable in annual installments; interest rates from Water 2.25% to 3.50 %) Fund $ 3,460,000 $ - $ 60,000 $ 3,400,000 $ 40,000 TOTAL $18,840,000 $ - $ 3,125,000__$15 715,000 $ 2,855,000 * The Village abates the tax levy on this bond issue annually. The debt is recorded in and is bein g Y retired b the Water Fund. ** The Village abates the tax levy on this bond issue annually. The debt is being retired by transfers from the Tax Incremental Finance District 2 Fund. b. Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Fiscal Year Ending General Obligation Bonds ' April 30, Principal Interest Total t 1 1 -40- 2005 $ 2,855,000 $ 590,993 $ 3,445,993 2006 1,880,000 471,508 2,351,508 2007 2,395,000 387,707 2,782,707 2008 2,400,000 292,820 2,692,820 2009 2,410,000 197,820 2,607,820 2010 2,425,000 100,865 2,525,865 2011 435,000 44,827 479,827 2012 450,000 31,125 481,125 2013 465,000 16,275 481,275 TOTAL $ 15,715,000 $ 2,133,940 $ 17,848,940 t 1 1 -40- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG -TERM DEBT (Continued) C. Changes in Long -Term Liabilities During the fiscal year, the following changes occurred in long -term liabilities: GOVERNMENTAL ACTIVITIES General obligation bonds Compensated absences (Governmental) Compensated absences (Internal Service) TOTAL GOVERNMENTAL ACTIVITIES BUSINESS -TYPE ACTIVITIES General obligation bonds Water Compensated absences (Enterprise) Compensated absences (Internal Service) TOTAL BUSINESS -TYPE ACTIVITIES May 1, Current Restated* Additions Reductions April 30 Portion $14,735,000 $ - $ 2,750,000 $ 11,985,000 $ 2,485,000 1,121,565 34,753 - 1,156,318 - 45,097 2,406 - 47,503 - $15,901,662 $ 37,159 $ 2,750,000 $ 13,188,821 $ 2,485,000 $ 4,105,000 $ - $ 375,000 $ 3,730,000 $ 370,000 224,432 - 26,706 197,726 - 15,607 833 - 16,440 - $ 4,345,039 $ 833 $ 401,706 $ 3,944,166 $ 370,000 *The balance at May 1, 2004 was restated to move compensated absences out of the General Fund in accordance with GASB Interpretation No. 6. Also, Internal Service Fund compensated absences have been allocated between governmental and business -type activities. d. Legal Debt Margin 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. -41- r I VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1 6. LONG -TERM DEBT (Continued) Industrial Development Revenue Bonds 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 Industrial Development ' Revenue Bonds, the transactions relating to the bonds and property do not appear in the Village's financial statements. e. Noncommitment Debt - Industrial Development Revenue Bonds 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. 12/17/84 Industrial Revenue 4,500,000 Industrialplex Limited Partnership The issuance of Industrial Development Revenue Bonds 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. Industrial Development Revenue Bonds 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 Industrial Development ' Revenue Bonds, the transactions relating to the bonds and property do not appear in the Village's financial statements. 1 i r 1 -42- The Village has authorized the issuance of the following such bonds: Date Issued Type of Bond Amount Debtor 12/20/82 Industrial Revenue $ 1,615,000 Chi -Chi's Inc. 4/16/84 Industrial Revenue 1,000,000 Teradyne, Inc. 12/17/84 Industrial Revenue 4,500,000 Industrialplex Limited Partnership 12/1/95 Industrial Revenue 32,150,000 Jewish Foundation f. Advance Refunding On February 28, 2003, the Village issued $3,460,000 par value General Obligation Refunding Bonds to advance refund $3,225,000 of the 1997 General Obligation Bonds. Through this in- substance defeasance, the Village reduced its total debt service by $92,018 over the next ten years and obtained an economic gain of $83,873. The 1997 General Obligation Bonds will be called and redeemed on December 1, 2004. 1 i r 1 -42- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. INTERFUND ASSETS /LIABILITIES a. Due From/To Other Funds Receivable Fund Payable Fund Amount Fiduciary General $ 5,271 TOTAL $ 5,271 The purpose of significant due to /from other funds is as follows: • The $5,271 represents expenditures of $7,847 paid for the Police Pension Fund by the General Fund, and also replacement tax of $2,576 transferred into the Police Pension Fund in error. The amounts will be repaid within one year. b. Advances From/To Other Funds Receivable Payable Fund Fund Fund General Tax Incremental Financing District 2 TOTAL $ 4,087,170 $ - - 4,087,170 $ 4,087,170 $ 4,087,170 The purpose of significant advances to /from other funds is as follows: • In addition to the 1998 issue, money was advanced from the General Fund to the Tax Incremental Financing District (TIF) 2 Fund to fund public improvements with the recognition that this would eventually be paid back from future TIF taxes. It is intended that this payback would begin as the increment grows in excess of the funds necessary for the project. It is anticipated that this repayment will be begin in fiscal year 2005 and continue at some level until the entire amount is repaid before the district terminates. C. Due From/To Primary Government and Component Unit Receivable Fund Payable Fund Amount Primary government Component unit General Fund Public Library General Fund $ 20,277 Water Fund Public Library General Fund 2,525 Sewerage Fund Public Library General Fund 4,813 Internal Service Funds Public Library General Fund 884 TOTAL $ 28,499 -43- f 1 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. INTERFUND ASSETS /LIABILITIES (Continued) C. Due From/To Primary Government and Component Unit (Continued) The purpose of significant due to /from primary government/component unit is as follows: • The $20,277 due to the General Fund represents amounts paid by the General !� Fund for the Library's portion of employee and employer payroll taxes and ■ IMRF expenditures. Repayment is expected within one year. d. Interfund Transfers Transfer From Transfer To Amount Nonmajor Governmental General $ 275,000 Tax Increment Financing 2 Debt Service 1,769,550 TOTAL $ 25044,550 IThe purpose of significant transfers to /from other funds is as follows: • $275,000 transferred from the Motor Fuel Tax Fund to the General Fund to fund operations. • $1,769,550 transferred from the Tax Increment Financing 2 Fund to the Debt Service Fund for the debt service payment on the General Obligation Bonds, Series 1998, which were issued to fund improvements in the Village Center TIF District. 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 3.49% 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: 1 -44- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 8. COMMITMENTS (Continued) High -Level Excess Liability Pool (HELP) (Continued) Miles of streets Full -time equivalent employees Number of motor vehicles Operating revenues The Village has passed a resolution authorizing the extension of HELP for ten years beginning May 1, 1998. 9. SEGMENT INFORMATION - ENTERPRISE FUNDS The Village maintains the following enterprise funds, which are intended to be self - supporting through user fees charged for services to the public. Financial segment information as of the date of this report and for the fiscal year is as follows: Major Funds Nonmajor Funds Commuter Parking Water Sewerage Refuse Lot Total Operating revenues $ 4,153,628 $ 1,812,440 $ 657,188 $ 151,133 $ 6,774,389 Depreciation and , amortization expense 279,799 101,607 - - 381,406 Operating income (loss) 401,014 (484,020) (724,198) 107,560 (699,644) Tax revenues - - 761,356 - 761,356 Change in net assets 304,786 (458,638) 34,990 471,467 352,605 Capital assets Additions 10,904 298,505 - 365,926 675,335 Deletions - - - - - Total assets 16,081,047 4,265,439 1,145,595 1,001,457 22,493,538 Net working capital Bonds and other long -term 2,627,900 1,322,347 286,707 553,240 4,790,194 liabilities payable from operating revenues 3,360,000 - - - 3,360,000 Total equity 11,923,160 4,080,557 286,707 995,816 17,286,240 10. FUND EQUITY Tax Incremental Finance District 1 Fund - Surplus Rebate On January 5, 2004, the Village passed Resolution No. 04 -01, titled "Resolution Declaring ' a Surplus of Tax Increment Financing Funds," in accordance with the Illinois Compiled Statutes. The Village determined that the sum of $9,652,659 held in the Tax Incremental Finance District 1 Fund was surplus funds and was redistributed to the appropriate taxing rj districts in Fiscal 2004. ■ -45- 1 i VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) I11. 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. 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. e. Municipal Infrastructure Maintenance Fees Effective November 3, 1997, the Village imposed a municipal telecommunications infrastructure maintenance fee (IMF) on persons in the business of transmitting, supplying, or furnishing telecommunications and all associated services (e.g., telecommunications retailers) in Illinois for the "use of public right -of- ways ". The fee was authorized by state statute (35 ILCS 635). In March 2001, a wireless telecommunications provider brought action against an Illinois government challenging the constitutionality of the municipal telecommunications infrastructure maintenance fee. The Illinois Supreme Court (Court) found the IMF to be unconstitutional as applied to wireless carriers. The Court's decision held upon appeal. The municipal IMF fee was eliminated effective December 31, 2002. Potential damages to the Village under this case precedent could aggregate the total of amounts remitted to the Village for UYT by all carriers during the period from November 3, 1997 through December 31, 2002. The Village has not estimated its liability under potential IMF lawsuits as of April 30, 2004. -46- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. JOINT VENTURES Solid Waste Agency of Lake County ( SWALCO) I Description of Joint Venture The Village is a member of SWALCO, which consists of thirty-five municipalities. SWALCO is a municipal corporation and public body politic and corporate established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the Act). SWALCO is empowered under the Act to plan, construct, finance, operate, and maintain a solid waste disposal system to serve its members. These percentage shares are subject to change in future years based on the combination of the population and equalized assessed valuation of the municipalities. The members form a contiguous geographic service area, which is located in Lake County. Under the Agency Agreement, additional members may join SWALCO upon the approval , of each member. SWALCO is governed by a Board of Directors, which consists of one appointed representative from each member municipality. Each Director has an equal vote. The officers of SWALCO are appointed by the Board of Directors. The Board of Directors determines the general policy of SWALCO; makes all appropriations; approves contracts; adopts resolutions providing for the issuance of bonds or notes by SWALCO; adopts bylaws, rules, and regulations; and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the 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. The Village made no payments to SWALCO for the year ended April 30, 2004 and no future payments are expected. 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 April 30, 2004. 1 -47- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. POSTEMPLOYMENT BENEFITS In addition to providing the pension benefits described below, the Village provides certain health care benefits, in accordance with the personnel policy manual, to all employees who have worked for the Village for a minimum of ten years and who receive a pension from the Village through the Illinois Municipal Retirement Fund or Police Pension Fund. The cost of retiree health care benefits is recognized as an expenditure as insurance premiums are paid. For the fiscal year, those costs total $11,900. The retirees pay an annual premium, which is equal to the actuarially determined cost for each plan year. The Village pays 50 percent of the cost of the monthly health insurance premiums for the retirees to a maximum of $50. Currently, there are 21 participants eligible to receive benefits. Accordingly, no liability has been recorded for post - employment health care benefits. 14. EMPLOYEE RETIREMENT SYSTEMS a. Plan Descriptions and Provisions Illinois Municipal Retirement The Village contributes to the Illinois Municipal Retirement Fund (IIVIRF), 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). All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. Pension benefits vest after eight years of service. Participating members who retire at or after age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 12/3 percent of their final rate (average of the highest 48 consecutive months' earnings during the last 10 years) of earnings for each year of credited service up to 15 years and 2 percent for each year thereafter. IMRF also provides death and disability benefits. The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General Assembly. Participating members are required to contribute 4.5 percent 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, 2003 was 7.63 percent 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. 1 -48- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions and Provisions (Continued) Police Pension 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 April 30, 2004, the Police Pension Plan membership consisted of Retirees and beneficiaries currently receiving benefits 23 Terminated employees entitled to benefits but not yet receiving them 2 Current employees Vested 21 Nonvested 18 TOTAL 64 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. Employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one -half of the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater. The pension shall be increased by 2% percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded interest annually thereafter. -49- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions and Provisions (Continued) 1 1 -50- Police Pension (Continued) Covered employees are required to contribute 9.91 percent 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. The Village's contributions must accumulate to the point where the past service cost for the Police Pension Plan is fully funded by the year 2033. 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 any one organization that represent 5 percent or more of net assets available for benefits are as follows: Vanguard Stock Market Index Mutual Fund 6,527,797 1� 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. 1 1 -50- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. EMPLOYEE RETIREMENT SYSTEMS (Continued) C. Annual Pension Cost Actuarial valuation date Actuarial cost method Asset valuation method Amortization method Amortization period Significant actuarial assumptions a) Rate of return on present and future assets b) Projected salary increase - attributable to inflation Illinois Municipal Police Retirement Pension December 31, May 1, 2001 2003 Entry-age Entry-age Normal Normal Compounded Level Dollar 5 Year Actuary's Smoothed Value Market Compounded Level Level Percentage of Dollar Payroll 10 Years, 30 Years, Closed Closed 7.50% 8.00% Compounded Compounded Annually Annually 4.00% 3.50% Compounded Compounded Annually Annually c) Additional projected salary .40 to 11.60% 5.50% increases - seniority /merit d) Post retirement 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 accumulative difference between the APC and the contributions actually made. -51- i VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1 15. PRIOR PERIOD ADJUSTMENTS The Village made a prior period adjustment of $1,121,565, increasing fund balance in the General Fund to reclassify compensated absences from the individual fund to general long -term liabilities in accordance with GASB Interpretation No. 6. The Village also made an adjustment of $1,815,833, $(1,267,442), $(3,415) and $845,834, respectively, to ' the water, sewer, parking, and vehicle equipment replacement funds to restate capital assets for a change in capitalization threshold and to reclassify capital assets to the vehicle and equipment replacement fund at May 1, 2003. -52- 14. EMPLOYEE RETIREMENT SYSTEMS (Continued) C. Annual Pension Cost (Continued) For Illinois Fiscal Municipal Police 1 Year Retirement* Pension* Annual pension costs 2002 $ 427,115 $ 263,524 (APC) 2003 342,859 287,136 2004 399,935 334,982 Actual contribution 2002 $ 427,115 $ 342,522 2003 342,859 276,383 2004 399,935 325,762 Percentage of APC contributed 2002 100.00% 129.98% 2003 100.00 96.25 2004 100.00 97.24 NPO (Asset) 2002 $ - $ (1,055,176) 2003 - (1,044,423) 2004 - (1,035,203) The Village's annual pension cost and net pension obligation (asset) for the Police Pension Plan for the April 30, 2004 valuation date (most recent data available) are as follows: Annual required contribution $ 325,762 Interest on net pension obligation (asset) (83,554) Adjustment to annual required contribution 92,774 Annual pension cost 334,982 Contributions made 325,762 Increase (decrease) in net pension obligation 9,220 Net pension obligation (asset) beginning of year (1,044,423) .I� NET PENSION OBLIGATION (ASSET) END OF YEAR $ (1,035,203) 1 15. PRIOR PERIOD ADJUSTMENTS The Village made a prior period adjustment of $1,121,565, increasing fund balance in the General Fund to reclassify compensated absences from the individual fund to general long -term liabilities in accordance with GASB Interpretation No. 6. The Village also made an adjustment of $1,815,833, $(1,267,442), $(3,415) and $845,834, respectively, to ' the water, sewer, parking, and vehicle equipment replacement funds to restate capital assets for a change in capitalization threshold and to reclassify capital assets to the vehicle and equipment replacement fund at May 1, 2003. -52- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 16. COMPONENT UNIT - DEERFIELD PUBLIC LIBRARY a. Summary Financial Information The following is summary fund type financial information for the Deerfield Public Library (the Library) for the fiscal year ended April 30, 2004: ASSETS Cash and investments Receivables Property taxes Capital assets, net of accumulated depreciation Total assets LIABILITIES Accounts payable Accrued payroll Due to primary government Deferred property taxes Compensated absences payable Total liabilities FUND BALANCES/NET ASSETS Fund balances - unreserved Designated for capital improvement Designated for memorial Undesignated Net assets Invested in capital assets, net of related debt Unrestricted Total fund balances /net assets REVENUES Property taxes Replacement taxes Intergovernmental Charges for services Investment income Miscellaneous Total revenues -53- Statement of General Adjustments Net Assets $ 1,978,247 $ - $ 1,978,247 1,616,386 - 1,616,386 - 322,160 322,160 3,594,633 322,160 3,916,793 49,441 - 49,441 22,772 - 22,772 28,499 - 28,499 1,708,955 - 1,708,955 - 140,978 140,978 1,809,667 140,978 1,950,645 499,300 (499,300) 24,832 (24,832) - 1,260,834 (1,260,834) - 322,160 322,160 - 1,643,988 1,643,988 $ 1,784,966 $ 181,182 $ 1,966,148 Statement of General Adjustments Activities $ 1,837,334 $ 142,908 $ 1,980,242 18,146 - 18,146 23,025 - 23,025 77,883 - 77,883 18,503 - 18,503 155,984 (142,908) 13,076 2,130,875 - 2,130,875 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1 16. COMPONENT UNIT - DEERFIELD PUBLIC LIBRARY (Continued) 1 1 f 1 1 I� LI fl 1 1 1 L' 1 1 1 a. 91 Summary Financial Information (Continued) EXPENDITURES /EXPENSES Culture and recreation Total expenditures /expenses NET CHANGE IN FUND BALANCE/ NET ASSETS FUND BALANCE/NET ASSETS MAY 1, RESTATED FUND BALANCES/NET ASSETS APRIL 30 Deposits and Investments 1. Deposits Statement of General Adjustments Activities $ 1,914,331 $ 67,227 $ 1,981,558 1,914,331 67,227 1,981,558 216,544 (67,227) 149,317 1,568,422 248,409 1,816,831 $ 1,784,966 $ 181,182 $ 1,966,148 Statutes authorize the Library 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. Cash on hand of $1,000 has been excluded from the amounts below. At year end the Library's carrying amount of deposits with financial institutions was $39,203 and the corresponding bank balance was $39,206. Bank Balance Category 1 Deposits covered by federal depository insurance, or by collateral held by the Library, or its agent, in the Library's name $ 39,206 Category 2 Deposits covered by collateral held by the pledging financial institution's trust department, or by its agents, in the Library's name -54- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 16. COMPONENT UNIT - DEERFIELD PUBLIC LIBRARY (Continued) b. Deposits and Investments (Continued) 1. � Deposits Category 3 Deposits covered by collateral held by the pledging financial institution, or its trust department, or its agent but not in the Library's name, and deposits which are uninsured and uncollateralized $ TOTAL DEPOSITS 2. Investments Bank Balance $ 39,206 The Library's investments consist of Illinois Funds, an investment pool managed by the State of Illinois, Office of the Treasurer. Illinois Funds are not subject to risk categorization. At year end the carrying value was $1,938,044, and the fair value was $2,006,305. Receivables - Taxes Property taxes for the 2003 levy year attach as an enforceable lien on January 1, 2003, on property values assessed as of the same date. Taxes are levied by December 31 of the subsequent fiscal year end by passage of a Tax Levy Ordinance. Tax bills are prepared by the County and issued on or about February 1, 2004 and August 1, 2004, and are payable in two installments, on or about March 1, 2004 and September 1, 2004. The County collects such taxes and remits them periodically. The 2003 tax levy collections are intended to finance the 2005 fiscal year and are not considered available for current operations and are, therefore, shown as deferred revenue. The 2004 tax levy has not been recorded as a receivable at April 30, 2004, as the tax attached as a lien on property as of January 1, 2004, however, the tax will not be levied until December 2004 and, accordingly, is not measurable at April 30, 2004. 1 I 1 1 1 Ji i 1 1 J 1 Ll 1 1 1 1 1 1 -55- 1 1 1 I' VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 16. COMPONENT UNIT - DEERFIELD PUBLIC LIBRARY (Continued) 1 -56- d. Capital Assets Capital assets, which include land, buildings, and equipment, are reported in the governmental activities in the government -wide financial statements. Capital assets are defined by the Library as assets with an initial, individual cost in excess of $25,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 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. Major outlays for capital assets and improvements are capitalized as projects are constructed. Buildings are depreciated using the straight -line method over the following estimated useful lives: ' Years Buildings 45 The following is a summary of changes in capital assets during the fiscal year: Beginning Balance, Ending Restated* Increases Decreases Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 65,493 $ - $ $ 65,493 ' Total capital assets not being depreciated 65,493 65,493 Capital assets being depreciated Buildings 1,050,000 - 1,050,000 Total capital assets being depreciated 1,050,000 1,050,000 Less accumulated depreciation for Buildings 770,000 23,333 - 793,333 Total accumulated depreciation 770,000 23,333 - 793,333 Total capital assets being depreciated, net 280,000 (23,333) - 256,667 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 345,493 $ (23,333) $ - $ 322,160 *The beginning balance was restated by $(898,434) to reflect a change in the ' capitalization threshold. 1 -56- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 16. COMPONENT UNIT - DEERFIELD PUBLIC LIBRARY (Continued) e. Changes in Long -Term Liabilities The following is a summary of changes in long -term liabilities for the year ended April 30, 2004: Balance, Balance, May 1 Additions Retirements April 30 Compensated absences $ 97,084 $ 43,894 $ - $ 140,978 1510 1 1 1 1 1 I� t j� 1 1 1 I 1 u 1 1 1 1 E. CD CL O H 3 o � � 3 CD 0 d Q 1 1 1 1 1 1 1 1 1 1 1 t 1 I' 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2004 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Miscellaneous Total revenues EXPENDITURES General government Public safety Highways and streets Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE, MAY 1 Prior period adjustment FUND BALANCE, MAY 1, RESTATED FUND BALANCE, APRIL 30 Original Final Budget Budget Actual $ 8,625,686 $ 8,625,686 $ 8,348,722 773,500 773,500 939,098 35,000 35,000 297,221 212,000 212,000 262,443 195,000 195,000 166,175 520,000 520,000 171,640 403,900 403,900 434,648 10,765,086 10,765,086 10,619,947 3,168,588 3,208,588 3,132,779 6,171,784 6,171,784 5,994,243 1,735,592 1,739,092 1,485,779 11,075,964 11,119,464 10,612,801 (310,878) (354,378) 7,146 250,000 250,000 275,000 (560,000) (560,000) - (310,000) (310,000) 275,000 $ (620,878) $ 664 378 282,146 15,695,713 (See independent auditor's report.) -58- 1,121,565 16,817,278 $ 17,099,424 VILLAGE OF DEERFIELD, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS ILLINOIS MUNICIPAL RETIREMENT FUND April 30, 2004 (See independent auditor's report.) -59- (6) Unfunded (Overfunded) Actuarial (4) Accrued (2) Unfunded Liability (1) Actuarial (Overfunded) as a Actuarial Actuarial Accrued (3) Actuarial (5) 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)-(l) Payroll (4)/(5) 1998 $ 11,683,923 $ 12,220,108 95.61% $ 536,185 $ 4,170,583 12.86% 1999 14,048,620 14,203,236 98.91% 154,616 4,526,201 3.42% 2000 15,360,277 14,663,125 104.75% (697,152) 4,687,221 (14.87 %) 2001 15,440,716 14,948,851 103.29% (491,865) 4,989,662 (9.86 %) 2002 15,020,009 15,628,924 96.10% 608,915 5,064,382 12.02% 2003 14,167,618 15,105,472 93.79% 937,854 5,241,608 17.89% (See independent auditor's report.) -59- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND April 30, 2004 (See independent auditor's report.) -60- (6) Unfunded (Overfunded) Actuarial (4) Accrued (2) Unfunded Liability (1) Actuarial (Overfunded) as a Actuarial Actuarial Accrued (3) Actuarial (5) Percentage Valuation Value of Liability Percentage Accrued Annual of Covered Date Plan (AAL) Funded Liability Covered Payroll May 1, Assets - Entry Age (1)/(2) (2)-(1) Payroll (4)/(5) 1998 $ 16,714,208 $ 13,658,344 122.37% $ (3,055,864) $ 2,294,044 (133.21 %) 1999 17,688,797 14,744,801 120.00% (2,943,996) 2,264,096 (130.03 %) 2000 18,230,630 16,068,969 113.50% (2,161,661) 2,472,712 (87.40 %) 2001 19,528,481 20,997,402 93.00% 1,468,921 2,409,613 60.96% 2002 20,588,975 22,217,590 92.67% 1,628,615 2,529,945 64.37% 2003 21,397,216 23,235,103 92.09% 1,837,887 2,612,402 70.35% (See independent auditor's report.) -60- Calendar Year 1998 1999 2000 2001 2002 2003 VILLAGE OF DEERFIELD, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND April 30, 2004 Employer Contributions $ 436,660 435,420 410,132 427,115 342,859 399,935 Annual Pension Cost (APC) $ 436,660 435,420 410,132 427,115 342,859 399,935 (See independent auditor's report.) -61- Percentage Contributed 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% VILLAGE OF DEERFIELD, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS ' POLICE PENSION FUND April 30, 2004 ' Annual Pension ' Fiscal Employer Cost Percentage Year Contributions (APC) Contributed 1999 $ 292,620 $ 123,967 238.46% ' 2000 315,850 179,758 175.71% 2001 320,930 253,072 126.81% 2002 342,522 263,524 129.98% 2003 276,383 287,136 96.26% ' 2004 325,762 334,982 97.25% 1 (See independent auditor's report.) -62- VILLAGE OF DEERFIELD, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION April 30, 2004 1. Budgets Budgets are adopted on a basis consistent with GAAP. Annual appropriated budgets are adopted (at the fund level) for the General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Pension Trust funds. The annual appropriated budget is legally enacted and provides for a legal level of control at the fund level. All annual appropriations lapse at fiscal year end. Encumbrances represent commitments related to unperformed contracts for goods or i 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, supplementary appropriations were necessary for the Vehicle ' and Equipment Replacement Fund, Enhanced 911 Fund, Sewer Fund, General Fund, and Water Fund. 2. Excess of Actual Expenditures/Expenses Over Bud et in Individual Funds g The following funds had an excess of actual expenditures /expenses (exclusive of ' depreciation and amortization) over final budget for the fiscal year: Fund Excess ' Motor Fuel Tax $ 1,964 Garage 16,317 ' Insurance 126,621 -63- 1 i i i i i i i i 3 0 G9 0 e� 3 CD 0 m T C 7 d N i 1 1 I (This page is intentionally left blank.) i 1 1 1 1 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2004 (This schedule is continued on the following page.) -64- Original Final Budget Budget Actual TAXES Property $ 1,516,250 $ 1,516,250 $ 1,740,883 Replacement 4,400 4,400 37,877 Sales 3,290,000 3,290,000 3,420,855 Local use 163,000 163,000 180,289 Income 1,212,036 1,212,036 1,113,230 Hotel/motel 1,950,000 1,950,000 1,515,954 Telecommunication 490,000 490,000 339,634 Total taxes 8,625,686 8,625,686 8,348,722 LICENSES AND PERMITS Beer /liquor licenses 73,000 73,000 75,800 Food licenses 6,500 6,500 6,694 Other business licenses 28,000 28,000 19,364 Building permits 275,000 275,000 397,391 Contractor's licenses 3,000 3,000 6,244 Non - business licenses and permits 53,000 53,000 101,542 Vehicle licenses 335,000 335,000 332,063 Total licenses and permits 773,500 773,500 939,098 INTERGOVERNMENTAL State grant 2,000 2,000 260,804 50150 tree planting 1,000 1,000 - State highway maintenance - - 34,646 Federal grant 32,000 32,000 1,771 Total intergovernmental 35,000 35,000 297,221 CHARGES FOR SERVICES Special police services 75,000 75,000 203,506 Dispatching services 135,000 135,000 .57,651 Engineering services 2,000 2,000 1,286 Total charges for services 212,000 212,000 262,443 FINES AND FORFEITS 195,000 195,000 166,175 INVESTMENT INCOME 520,000 520,000 171,640 (This schedule is continued on the following page.) -64- r VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended April 30, 2004 Original Final Budget Budget Actual MISCELLANEOUS False alarms $ 50,000 $ 50,000 $ 44,855 Sale of materials 500 500 1,496 Rentals 7,400 7,400 8,530 Miscellaneous 116,000 116,000 180,850 Franchise fees 230,000 230,000 198,917 Total miscellaneous 403,900 403,900 434,648 TOTAL REVENUES $ 10,765,086 $ 10,765,086 $ 10,619,947 r_ (See independent auditor's report.) -65- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2004 Original Final Budget Budget Actual GENERAL GOVERNMENT Finance Department Personnel services $ 628,303 $ 628,303 $ 726,542 Training and development 3,000 3,000 1,241 Contractual services 817,300 8]7,300 820,127 Commodities 40,500 40,500 13,745 Utilities 20,160 20,160 20,243 Capital outlay 116,100 116,100 72,275 Total finance department 1,625,363 1,625,363 1,654,173 1 Administration Personnel services 456,412 456,412 456,170 Training and development 6,000 6,000 1,142 Contractual services 166,600 206,600 157,286 Commodities 8,150 8,150 4,745 Utilities 1,600 1,600 2,210 Capital outlay 19,500 19,500 4,837 Total administration 658,262 698,262 626,390 Community development Personnel services 613,997 613,997 627,402 Training and development 7,700 7,700 364 Contractual services 71,700 71,700 40,946 Commodities 13,340 13,340 8,110 Utilities 4,800 4,800 3,673 Capital outlay Total development 4,500 716,037 4,500 4,132 684,627 716,037 community Engineering Personnel services 109,845 109,845 103,232 Training and development 2,500 2,500 400 Contractual services 35,800 35,800 44,276 Commodities 5,700 5,700 5,063 Utilities 2,500 2,500 2,662 Capital outlay 12,581 12,581 11,956 Total engineering 168,926 168,926 167,589 Total general government 3,168,588 3,208,588 3,132,779 PUBLIC SAFETY Police Department Administrative service Personnel services 984,624 984,624 1,043,022 Training and development 9,500 9,500 2,261 Contractual services 310,140 310,140 223,781 Commodities 50,400 50,400 46,643 Utilities Capital outlay 42,000 214,673 42,000 214,673 32,771 214,683 Total administrative services 1,611,337 1,611,337 1,563,161 (This schedule is continued on the following pages.) -66- VI LL A GE OF DEERFI ELD, ILLINOIS S SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND (This schedule is continued on the following page.) -67- For the Year Ended April 30, 2004 Original Final Budget Budget Actual PUBLIC SAFETY (Continued) Police Department (Continued) Communications Personnel services $ 658,525 $ 658,525 $ 624,512 Training and development 1,050 1,050 1,089 Contractual services 2,500 2,500 937 Capital outlay 3,000 3,000 1,940 Total communications 665,075 665,075 628,478 ' Investigations Personnel services 720,311 720,311 663,862 Training and development 1,950 1,950 1,537 Contractual services 10,400 10,400 4,059 Commodities 3,500 3,500 .1,384 Capital outlay 7,750 7,750 5,806 Total investigations 743,911 743,911 676,648 Patrol Personnel services 2,960,225 2,960,225 2,901,126 Training and development 7,900 7,900 6,337 Contractual services 65,500 65,500 50,215 Commodities 39,000 39,000 33,387 Utilities 7,000 7,000 6,829 Capital outlay 71,836 71,836 45,190 Total patrol 3,151,461 3,151,461 3,043,084 Special detail Personnel services - - 81,157 Contractual services - - 602 Commodities 1,113 Total special detail - - 82,872 Total safety 6,171,784 6,171,784 5,994,243 public HIGHWAYS AND STREETS Public Works Department Administration Personnel services 145,936 145,936 177,949 Training and development 900 900 861 Contractual services 108,800 112,300 42,413 Commodities 16,500 16,500 14,687 Utilities 10,500 10,500 8,360 Capital outlay 125,188 125,188 126,633 Total administration 407,824 411,324 370,903 (This schedule is continued on the following page.) -67- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended April 30, 2004 HIGHWAYS AND STREETS (Continued) Public Works Department (Continued) Maintenance Personnel services Contractual services Commodities Utilities Capital outlay Total maintenance Snow and Ice Control Personnel services Contractual services Commodities Capital outlay Total snow and ice control Forestry Personnel services Contractual services Commodities Capital outlay Total forestry Train Station Maintenance Personnel services Contractual services Commodities Utilities Total train station maintenance Total highways and streets TOTAL EXPENDITURES Original Final Budget Budget Actual $ 427,561 $ 427,561 $ 429,683 217,500 217,500 138,037 153,500 153,500 108,134 39,000 39,000 27,384 - - 600 301,772 301,772 311,871 837,561 837,561 703,838 112,172 112,172 120,446 84,000 84,000 64,996 102,200 102,200 128,118 3,400 3,400 (1,689) 301,772 301,772 311,871 74,578 74,578 17,722 8,500 8,500 13,751 1,800 1,800 728 60,600 60,600 53,075 145,478 145,478 85,276 13,657 13,657 7,903 23,000 23,000 2,331 5,800 5,800 3,277 500 500 380 42,957 42,957 13,891 1,735,592 1,739,092 1,485,779 $ 11,075,964 $ 11,119,464 $ 10,612,801 (See independent auditor's report.) -68- . i 1 1 1 1 1 1 1 t 1 1 1 1 1 1 1 i i 1 1 1 r 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended April 30, 2004 REVENUES Taxes Property Replacement Investment income Total revenues EXPENDITURES Debt service Principal retirement Interest Fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Tax Incremental Finance District 2 Fund Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE, MAY 1 FUND BALANCE, APRIL 30 Original Final Budget Budget Actual $ 448,000 $ 448,000 $ 320,391 80,000 80,000 52,291 125,000 125,000 40,251 653,000 653,000 412,933 3,120,000 3,120,000 2,750,000 849,238 849,238 595,650 5,000 5,000 3,033 3,974,238 3,974,238 3,348,683 (3,321,238) (3,321,238) (2,935,750) 3,043,138 3,043,138 1,769,550 3,043,138 3,043)138 1,769,550 $ (278,100) $ (278,100) (1,166,200) (See independent auditor's report.) -69- 2,840,619 $ 1,674,419 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TAX INCREMENTAL FINANCE DISTRICT 1 FUND For the Year Ended April 30, 2004 REVENUES Taxes Property Investment income Total revenues EXPENDITURES General government Surplus rebate Capital outlay Construction Other costs Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) NET INCOME (LOSS) BEFORE SPECIAL ITEMS SPECIAL ITEMS Intergovernmental payment to Park District Original Final Budget Budget Actual $ 10,900,000 $ 10,900,000 $ 10,601,031 160,000 160,000 179,863 11,060,000 11,060,000 10,780,894 9,652,659 9,652,659 9,654,786 1,485,000 1,485,000 47,059 5,000 .5,000 20,480 11,142,659 11,142,659 9,722,325 (82,659) (82,659) 1,058,569 (500,000) (500,000) - (582,659) (582,659) 1,058,569 (1,370,009) NET CHANGE IN FUND BALANCE $ (582,659) $ (582,659) (311,440) FUND BALANCE, MAY 1 3,895,358 FUND BALANCE, APRIL 30 $ 3,583,918 (See independent auditor's report.) -70- i i VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TAX INCREMENTAL FINANCE DISTRICT 2 FUND For the Year Ended April 30, 2004 r (See independent auditor's report.) -71- Total revenues 2,925,000 2,925,000 3,679,682 Original Final Budget Budget Actual REVENUES Construction Taxes 1,725,000 1,499,858 Property $ 2,800,000 $ 2,800,000 $ 3,611,226 151,449 Investment income 125,000 125,000 68,456 r (See independent auditor's report.) -71- Total revenues 2,925,000 2,925,000 3,679,682 EXPENDITURES Capital outlay Construction 1,725,000 1,725,000 1,499,858 Other costs 1,752,000 1,752,000 151,449 Total expenditures p 3,477,000 3,477,000 1,651,307 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (552,000) (552,000) 2,028,375 OTHER FINANCING SOURCES (USES) Transfers in 500,000 500,000 - Transfers (out) (2,006,250) (2,006,250) (1,769,550) Total other financing sources (uses) (1,506,250) (1,506,250) (1,769,550) NET CHANGE IN FUND BALANCE $ (2,058,2521_L 2,05 8 250 () 258,825 FUND BALANCE, MAY 1 572,021 FUND BALANCE, APRIL 30 $ 830,846 r (See independent auditor's report.) -71- 1 1 1 1 1 1 1 1 1 r� t VILLAGE OF DEERFIELD, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS 1 ASSETS FUND BALANCES Cash and investments Receivables Accrued interest tTOTAL Other Due from other governments TOTAL ASSETS LIABILITIES AND FUND BALANCES ' LIABILITIES Accounts payable Deposits payable Total liabilities FUND BALANCES J 1 1 1 April 30, 2004 Special Revenue Funds Capital Projects Funds Motor Enhanced Infrastructure Project Fuel Tax 911 Replacement 29 Total $ 652,952 $ 299,621 $ 4,000,202 $ 174,340 $ 5,127,115 - - 17,088 1,201 18,289 - 73,453 - - 73,453 39,484 - - - 39,484 $ 692,436 $ 373,074 $ 4,017,290 $ 175,541 $ 5,258,341 $ - $ 11,198 $ 12,796 $ - $ 23,994 - - 31,424 31,424 11,198 12,796 31,424 55,418 692,436 - - - 692,436 - 361,876 4,004,494 144,117 4,510,487 692,436 361,876 4,004,494 144,117 5,202,923 $ 692,436 $ 373,074 $ 4,017,290 $ 175,541 $_5,258,.341 See accompanying notes to financial statements. -72- Reserved for maintenance of roadways Unreserved - undesignated Total fund balances tTOTAL LIABILITIES AND FUND BALANCES J 1 1 1 April 30, 2004 Special Revenue Funds Capital Projects Funds Motor Enhanced Infrastructure Project Fuel Tax 911 Replacement 29 Total $ 652,952 $ 299,621 $ 4,000,202 $ 174,340 $ 5,127,115 - - 17,088 1,201 18,289 - 73,453 - - 73,453 39,484 - - - 39,484 $ 692,436 $ 373,074 $ 4,017,290 $ 175,541 $ 5,258,341 $ - $ 11,198 $ 12,796 $ - $ 23,994 - - 31,424 31,424 11,198 12,796 31,424 55,418 692,436 - - - 692,436 - 361,876 4,004,494 144,117 4,510,487 692,436 361,876 4,004,494 144,117 5,202,923 $ 692,436 $ 373,074 $ 4,017,290 $ 175,541 $_5,258,.341 See accompanying notes to financial statements. -72- REVENUES Intergovernmental Charges for services Investment income Total revenues EXPENDITURES Public safety Highways and streets Capital outlay Total expenditures VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended April 30, 2004 Special Revenue Funds Capital Projects Funds Motor Enhanced Infrastructure Project Fuel Tax 911 Replacement 29 Total $ 534,561 $ - $ - $ - $ 534,561 298,776 - - 298,776 (114) (1,859) 38,155 3,328 39,510 534,447 296,917 38,155 3,328 872,847 - 461,566 - - 461,566 274,964 - - - 274,964 - - 1,145,610 - 1,145,610 274,964 461,566 1,145,610 - 1,882,140 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 259,483 (164,649) (1,107,455) 3,328 (1,009,293) OTHER FINANCING SOURCES (USES) Transfers (out) (275,000) - - - (275,000) Total other financing sources (uses) (275,000) - - - (275,000) NET CHANGE IN FUND BALANCES (15,517) (164,649) (1,107,455) 3,328 (1,284,293) FUND BALANCES, MAY 1 707,953 526,525 5,111,949 140,789 6,487,216 FUND BALANCES, APRIL 30 $ 692,436 $ 361,876 $ 4,004,494 $ 144,117 $ 5,202,923 See accompanying notes to financial statements. -73- 1 1 1 1 1 1 1 1 a 1 1 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MOTOR FUEL TAX FUND For the Year Ended April 30, 2004 REVENUES Intergovernmental Allotments earned Investment income Total revenues EXPENDITURES Highways and streets Capital outlay Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) General Fund NET CHANGE IN FUND BALANCE FUND BALANCE, MAY 1 FUND BALANCE, APRIL 30 Original Final Budget Budget Actual $ 526,800 $ 526,800 $ 534,561 30,000 30,000 (114) 556,800 556,800 534,447 273,000 273,000 274,964 273,000 273,000 274,964 283,800 283,800 259,483 (280,000) (280,000) (275,000) $ 3,800 $ 3,800 (15,517) (See independent auditor's report.) -74- 707,953 $ 692,436 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ENHANCED 911 FUND For the Year Ended April 30, 2004 REVENUES Charges for services Other charges Investment income Total revenues EXPENDITURES Public safety Contractual services Utilities Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, MAY 1 FUND BALANCE, APRIL 30 Original Final Budget Budget Actual $ 265,000 $ 265,000 $ 298,776 5,200 5,200 (1,859) 270,200 270,200 296,917 85,000 85,000 125,959 51,500 51,500 16,356 422,558 461,558 319,251 559,058 598,058 461,566 $ (288,858) $ (327,858) (164,649) (See independent auditor's report.) -75- 526,525 $ 361,876 1 1 1 1 1 i 1 1 1 1 1 1 1 r i i VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INFRASTRUCTURE REPLACEMENT FUND For the Year Ended April 30, 2004 REVENUES Investment income Miscellaneous Total revenues EXPENDITURES Capital outlay Contractual services Construction Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, MAY 1 FUND BALANCE, APRIL 30 Original Final Budget Budget Actual $ 165,000 $ 165,000 $ 38,155 3,500 3,500 - 168,500 168,500 38,155 387,700 387,700 103,316 1,196,000 1,196,000 1,042,294 1,583,700 1,583,700 1,145,610 $ (1,415,200) $ (1,415,200) (1,107,455) (See independent auditor's report.) -76- 5,111,949 $ 4,004,494 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PROJECT 29 FUND For the Year Ended April 30, 2004 REVENUES Investment income Total revenues EXPENDITURES Contractual services Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, MAY 1 FUND BALANCE, APRIL 30 Original Final Budget Budget Actual $ 600 $ 600 $ 3,328 600 600 3,328 500 500 - 500 500 - $ 100 $ 100 3,328 (See independent auditor's report.) -77- 140,789 $. 144,117 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 d 0 m C eo 1 1 CA C T C C. N VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL WATER FUND For the Year Ended April 30, 2004 1 Prior period adjustment NET ASSETS, MAY 1, RESTATED NET ASSETS, APRIL 30 Original Final Budget Budget Actual $ 3,851,120 $ 3,851,120 $ 4,109,003 17,500 17,500 22,085 OPERATING REVENUES 25,000 Charges for services 7,500 Water sales (444) Miscellaneous 214,017 Permits and fees 3,901,120 Penalties 4,153,628 Other (1,032,721) Total operating revenues OPERATING EXPENSES EXCLUDING DEPRECIATION AND AMORTIZATION Administration Operations 1,815,833 Distribution Maintenance - mains and fire hydrants Maintenance - meters 11,923,160 Total operating expenses excluding depreciation and amortization OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION Depreciation and amortization ' OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) 1 Investment income Interest expense Total nonoperating revenues (expenses) CHANGE IN NET ASSETS NET ASSETS, MAY I Prior period adjustment NET ASSETS, MAY 1, RESTATED NET ASSETS, APRIL 30 Original Final Budget Budget Actual $ 3,851,120 $ 3,851,120 $ 4,109,003 17,500 17,500 22,085 25,000 25,000 22,984 7,500 7,500 (444) 214,017 214,017 165,640 3,901,120 3,901,120 4,153,628 333,298 336,498 263,493 2,729,115 2,729,115 2,444,833 1,247, 321 1,247,321 598,849 214,017 214,017 165,640 4,523,751 4,526,951 3,472, 815 (622,631) (625,831) 680,813 279,799 (622,631) (625,831) 401,014 70,000 70,000 35,106 (476,890) (476,890) (131,334) (406,890) (406,890) (96,228) $ (1,029,521) $ (1,032,721) 304,786 9,802,541 1,815,833 1 1,618,374 $ 11,923,160 (See independent auditor's report.) -78- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER FUND For the Year Ended April 30, 2004 ADMINISTRATION Personnel services Training and development Contractual services Commodities Utilities Capital outlay Total administration OPERATIONS Distribution Personnel services Contractual services Commodities Utilities Capital outlay Subtotal Less non - operating expenses Capital assets capitalized Total distribution Main and fire hydrant maintenance Personnel services Contractual services Commodities Capital outlay Total main and fire hydrant maintenance Meter maintenance Personnel services Contractual services Commodities Capital outlay Total meter maintenance TOTAL OPERATING EXPENSES Original Final Budget Budget Actual $ 193,493 $ 193,493 $ 136,031 500 500 15 85,200 88,400 72,762 4,600 4,600 3,211 12,400 12,400 14,369 37,105 37,105 37,105 333,298 336,498 263,493 257,215 257,215 152,332 43,300 43,300 28,471 1,956,400 1,956,400 2,067,254 82,200 82,200 80,581 400,904 400,904 127,099 2,740,019 2,740,019 2,455,737 (10,904) (10,904) (10,904) 2,729,115 2,729,115 2,444,833 288,021 288,021 322,224 826,500 826,500 115,042 127,400 127,400 157,505 5,400 5,400 4,078 1,247,321 1,247,321 598,849 131,717 131,717 113,994 9,300 9,300 3,702 8,000 8,000 4,579 65,000 65,000 43,365 214,017 214,017 165,640 $ 4,523,751 $ 4,526,951 $ L4 72,815 I t t 1 1 t i� 1 L 1 1 1 1 1 (See independent auditor's report) -79- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION WATER FUND iFor the Year Ended April 30, 2004 Assets Balances May 1, Balances Restated Additions Retirements April 30 Land $ 1,877,956 $ - $ - $ 1,877,956 ' Buildings 4,180,123 - - 4,180,123 Water system improvements 8,711,479 10,904 - 8,722,383 Equipment and vehicles 569,298 - - 569,298 $ 15,338,856 $ 10,904 $ - $ 15,349,760 rAccumulated Depreciation Balances May 1, Balances Restated Additions Retirements April 30 Buildings $ 788,152 $ 91,837 $ - $ 879,989 Water system improvements 1,027,054 177,797 - 1,204,851 Equipment and vehicles 512,279 6,148 - 518,427 $ 2,327,485 $ 275,782 $ - $ 2,603,267 NET ASSET VALUE $ 12,746,493 (See independent auditor's report.) -80- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended April 30, 2004 OPERATING REVENUES Charges for services Sewer charges Miscellaneous Permits and fees Penalties Other Total operating revenues OPERATING EXPENSES EXCLUDING DEPRECIATION Administration Operations Treatment plant Cleaning and maintenance Construction Total operating expenses excluding depreciation OPERATING INCOME (LOSS) BEFORE DEPRECIATION Depreciation OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Total nonoperating revenues (expenses) CHANGE IN NET ASSETS NET ASSETS, MAY 1 Prior period adjustment NET ASSETS, MAY 1, RESTATED NET ASSETS, APRIL 30 Original Final Budget Budget Actual $ 1,807,160 $ 1,807,160 $ 1,772,816 10,000 10,000 26,710 34,000 34,000 11,819 5,000 5,000 1,095 1,856,160 1,856,160 1,812,440 396,641 399,541 313,712 2,150,040 2,150,040 1,331,745 259,908 259,908 228,352 381,194 401,194 321,044 3,187,783 3,210,683 2,194,853 (1,331,623) (1,354,523) (382,413) 101,607 (1,331,623) (1,354,523) (484,020) 45,000 45,000 25,382 45,000 45,000 25,382 $ 1,286 623 $ (1,309,523) (458,638) 5,806,637 (See independent auditor's report.) -81- (1,267,442) 4,539,195 $ 4,080,557 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SEWERAGE FUND ' For the Year Ended April 30, 2004 Original Fin 1 a Budget Budget Actual ADMINISTRATION Personnel services $ 212,794 $ 212,794 $ 189,108 Training and development 200 200 655 Contractual services 138,800 141,700 80,605 Commodities 5,200 5,200 3,453 Utilities 4,500 4,500 4,744 Capital outlay 35,147 35,147 35,147 Total administration 396,641 399,541 313,712 OPERATIONS Treatment plant ' Personnel services 775,532 775,532 677,820 Training and development 3,000 3,000 5,337 Contractual services Commodities 1,282,305 133,600 1,282,305 133,600 560,893 131,480 Utilities 236,900 236,900 235,851 Capital outlay 17,208 17,208 18,869 Subtotal treatment lant p 2,448,545 2,448,545 1,630,250 Less non - operating expenses Capital assets capitalized (298,505) (298,505) (298,505) Total treatment plant 2,150,040 2,150,040 1,331,745 ' Cleaning and maintenance Personnel services 168,908 168,908 183,718 Contractual services 49,000 49,000 22,384 Commodities 36,600 36,600 20,967 Capital outlay 5,400 5,400 1,283 ' Total cleaning and maintenance 259,908 259,908 228,352 Construction Personnel services 188,694 188,694 141,936 Contractual services 122,000 142,000 109,639 ' Commodities 70,500 70,500 69,469 Total construction 381,194 401,194 321,044 TOTAL OPERATING EXPENSES $ 3,187,783 $ 3,210,683 $ 2,194,853 (See independent auditor's report) -82- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION SEWERAGE FUND For the Year Ended April 30, 2004 Assets Balances May 1, Balances Restated Additions Retirements April 30 Sewer system $ 2,380,936 $ - $ - $ 2,380,936 Buildings and improvements 2,387,715 298,505 - 2,686,220 $ 4,768,651 $ 298,505 $ - $ 5,067,156 Accumulated Depreciation Balances May 1, Balances Restated Additions Retirements April 30 Sewer system $ 767,467 $ 43,512 $ - $ 810,979 Buildings and improvements 1,334,229 58,095 - 1,392,324 $ 2,101,696 $ 101,607 $ - $ 2,203,303 NET ASSET VALUE $ 2,863,853 (See independent auditor's report.) -83- 1 I 1 1 1 1 1 I C� 1 fl 1 1 1 1 1 1 L 1 0 0 o, m R m 1 1 CA' CD C 7 CL N 1 1 1 1 i 1 1 1 1 1 1 1 1 1 i 1 1 1 1 I I VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS CURRENT ASSETS Cash and investments Receivables Property taxes Accounts - billed Accounts - unbilled Total current assets CAPITAL ASSETS Nondepreciable Depreciable Accumulated depreciation Net capital assets Total assets CURRENT LIABILITIES Accounts payable Accrued payroll Deferred property taxes Total current liabilities LONG -TERM LIABILITIES Compensated absences payable Total long -term liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted (deficit) TOTAL NET ASSETS April 30, 2004 Commuter Parldng Refuse Lot Total $ 302,889 $ 558,031 $ 860,920 713,682 - 713,682 30,883 - 30,883 98,141 - 98,141 1,145,595 558,031 1,703,626 - 443,426 443,426 - 613,958 613,958 - (613,958) (613,958) - 443,426 443,426 1,145,595 1,001,457 2,147,052 103,888 4,428 108,316 - 363 363 755,000 - 755,000 858,888 4,791 863,679 850 850 850 850 858,888 5,641 864,529 - 443,426 443,426 286,707 552,390 839,097 $ 286,707 $ 995,816 $ 1,282,523 See accompanying notes to financial statements. -84- VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS NONMAJOR ENTERPRISE FUNDS For the Year Ended April 30, 2004 OPERATING REVENUES Charges for services Refuse billings Parking lot fees Miscellaneous Total operating revenues OPERATING EXPENSES Operations Total operating expenses OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Property taxes Total nonoperating revenues (expenses) INCOME (LOSS) BEFORE CONTRIBUTIONS CONTRIBUTIONS CHANGE IN NET ASSETS NET ASSETS, MAY 1 Prior period adjustment NET ASSETS, MAY 1, RESTATED NET ASSETS, APRIL 30 Commuter Parking Refuse Lot Total $ 640,430 $ - $ 640,430 - 151,133 151,133 16,758 - 16,758 657,188 151,133 808,321 1,381,386 43,573 1,424,959 1,381,386 43,573 1,424,959 (724,198) 107,560 (616,638) (2,168) (2,019) (4,187) 761,356 - 761,356 759,188 (2,019) 757,169 34,990 105,541 140,531 365,926 365,926 34,990 471,467 506,457 251,717 527,764 779,481 (3,415) (3,415) 251,717 524,349 776,066 See accompanying notes to financial statements. -85- 995,816 $ 1,282,523 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 (This page is intentionally left blank.) VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended April 30, 2004 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from miscellaneous revenue Payments to suppliers Payments to employees Net cash from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Net cash from noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES None Net cash from capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments Interest received Net cash from investing activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, MAY 1 CASH AND CASH EQUIVALENTS, APRIL 30 Commuter Parldng Refuse Lot Totals $ 628,192 $ 151,133 $ 779,325 16,758 - 16,758 (1,318,069) (16,324) (1,334,393) (69,140) (22,125) (91,265) (2,168) 305,981 303,813 (742,259) 112,684 (629,575) 759,093 - 759,093 759,093 - 759,093 - 300,000 300,000 (2,168) 5,981 3,813 (2,168) 305,981 303,813 14,666 418,665 433,331 288,223 139,366 427,589 $ 302,889 $ 558,031 $ 860,920 (This statement is continued on the following page.) -86- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) NONMAJOR ENTERPRISE FUNDS For the Year Ended April 30, 2004 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash from operating activities (Increase) decrease in Accounts receivable Increase (decrease) in Accounts payable Accrued payroll Compensated absences payable NET CASH FROM OPERATING ACTIVITIES NONCASH TRANSACTIONS Contributions of capital assets TOTAL NONCASH TRANSACTIONS Refuse Commuter Parldng Lot Totals $ (724,198) $ 107,560 $ (616,638) (12,238) - (12,238) (5,823) 3,911 (1,912) 363 363 850 850 $ (742,259) $ 112,684 $ (629,575) $ - $ 365,926 $ 365,926 $ - $ 365,926 $ 365,926 See accompanying notes to financial statements. -87- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL REFUSE FUND For the Year Ended April 30, 2004 OPERATING REVENUES Charges for services Refuse billing Miscellaneous Total operating revenues OPERATING EXPENSES Operations Personnel services Contractual services Commodities Capital outlay Total operating expenses OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Property taxes Total nonoperating revenues (expenses) CHANGE IN NET ASSETS NET ASSETS, MAY 1 NET ASSETS, APRIL 30 Original Final Budget Budget Actual $ 629,000 $ 629,000 $ 640,430 •12,000 12,000 16,758 641,000 641,000 657,188 94,850 94,850 69,140 1,473,400 1,473,400 1,299,282 6,900 6,900 2,714 10,250 10,250 10,250 1,585,400 1,585,400 1,381,386 (944,400) (944,400) (724,198) 5,000 5,000 (2,168) 755,000 755,000 761,356 760,000 760,000 759,188 $ (184,400) $ (184,400) 34,990 (See independent auditor's report.) -88- 251,717 $ 286,707 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended April 30, 2004 OPERATING REVENUES Parking lot fees OPERATING EXPENSES Operations OPERATING INCOME NONOPERATING REVENUES. (EXPENSES) Investment income Total nonoperating revenues (expenses) INCOME BEFORE TRANSFERS TRANSFERS IN (OUT) INCOME (LOSS) BEFORE CONTRIBUTIONS CONTRIBUTIONS CHANGE IN NET ASSETS NET ASSETS, MAY 1 Prior period adjustment NET ASSETS, MAY 1, RESTATED NET ASSETS, APRIL 30 Original Final Budget Budget Actual $ 152,500 $ 152,500 $ 151,133 106,356 106,356 43,573 46,144 46,144 107,560 29,500 29,500 (2,019) 29,500 29,500 (2,019) 75,644 75,644 105,541 (125,000) (125,000) - (49,356) (49,356) 105,541 - - 365,926 $ (49,356) $ (49,356) 471,467 527,764 (See independent auditor's report.) -89- (3,415) 524,349 $ 995,816 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended April 30, 2004 OPERATIONS Parking lots - Village and federal funds Personnel services Contractual services Commodities Utilities Capital outlay Total parking lots - Village and federal funds Parking lots - Village construction Personnel services Contractual services Commodities Utilities Capital outlay Original Final Budget Budget Actual $ 16,353 $ 16,353 $ 11,523 29,050 29,050 9,725 53800 5,800 2 7,000 7,000 2,503 2,000 2,000 - 60,203 60,203 23,753 16,103 16,103 11,815 20,550 20,550 2,997 3,500 3,500 2 5,000 5,000 55006 1,000 1,000 - Total parking lots - Village construction 46,153 46,153 19,820 TOTAL OPERATING EXPENSES $ 106,356 $ 106,356 $ 43,573 (See independent auditor's report.) -90- i 1 C t 1 1 `'`II L 1 1 1 L 1 1 1 I i� 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Land Parking lot improvements VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION COMMUTER PARKING LOT FUND For the Year Ended April 30, 2004 Assets Balances May 1, Balances Restated Additions Retirements April 30 $ 771500 $ - $ - $ 77,500 613,958 - 613,958 Construction in progress - 365,926 - 365,926 $ 691,458 $ 365,926 $ - $ 1,057,384 Parking lot improvements NET ASSET VALUE Accumulated Depreciation Balances May 1 Balances Restated Additions Retirements April 30 $ 613,958 $ - $ - $ 613,958 $ 443,426 (See independent auditor's report.) -91- 1 1 t 1 1 1 1 1 1 1 1 1 1 1 1 1 Il L 0 eo 1 d y eo 2 n� e� T C d N 1 1 1 1 1 A 1 1 6 1 i 1 1 VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS April 30, 2004 Vehicle and Equipment Garage Insurance Replacement Total CURRENT ASSETS Cash and investments $ 106,936 $ 627,984 $ 2,657,674 $ 3,392,594 Receivables Accounts 1,475 - - 1,475 Accrued interest 850 - 9,919 10,769 Due from component unit 885 - - 885 Inventory 78,081 - - 78,081 Total current assets 188,227 627,984 2,667,593 3,483,804 CAPITAL ASSETS Depreciable - - 2,352,886 2,352,886 Accumulated depreciation - - (1,513,890) (1,513,890) Net capital assets - - 838,996 838,996 Total assets 188,227 627,984 3,506,589 4,322,800 CURRENT LIABILITIES Accounts payable 3,871 13,532 1,315 18,718 Accrued payroll 2,816 - - 2,816 Total current liabilities 6,687 13,532 1;315 21,534 LONG -TERM LIABILITIES Compensated absences payable 63,943 - - 63,943 Total long -term liabilities 63,943 - - 63,943 Total liabilities 70,630 13,532 1,315 85,477 NET ASSETS Unrestricted 117,597 614,452 3,505,274 4,237,323 TOTAL NET ASSETS $ 117,597 $ 614,452 $ 3,505,274 $ 4,237,323 See accompanying notes to financial statements. -92- NONOPERATING REVENUES (EXPENSES) Investment income 1,426 1,499 (9,356) (6,431) Gain on disposal of capital assets - - 34,998 34,998 Total nonoperating revenues (expenses) 1,426 1,499 25,642 28,567 CHANGE IN NET ASSETS (77,166) (73,369) (194,309) (344,844) NET ASSETS, MAY 1 194,763 687,821 2,853,749 3,736,333 Prior period adjustment - - 845,834 VILLAGE OF DEERFIELD, ILLINOIS NET ASSETS, MAY 1, RESTATED 194,763 687,821 3,699,583 4,582,167 NET ASSETS, APRIL 30 $ 117 597 $ 614 452 $ 3 505 274 ' COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS For the Year Ended April 30, 2004 N Vehicle and Equipment Garage Insurance Replacement Total OPERATING REVENUES Interfund services Billings $ 249,972 $ 1,798,871 $ 516,810 $ 2,565,653 Miscellaneous 3,445 - - 3,445 Total operating revenues 253,417 1,798,871 516,810 2,569,098 OPERATING EXPENSES Administration - 1,873,739 - 1,873,739 Operations 332,009 - - 332,009 Capital outlay - - 574,082 574,082 Total operating expenses 332,009 1,873,739 574,082 2,779,830 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (78,592) (74,868) (57,272) (210,732) Depreciation - - 162,679 162,679 OPERATING INCOME (LOSS) (78,592) (74,868) (219,951) (373,411) NONOPERATING REVENUES (EXPENSES) Investment income 1,426 1,499 (9,356) (6,431) Gain on disposal of capital assets - - 34,998 34,998 Total nonoperating revenues (expenses) 1,426 1,499 25,642 28,567 CHANGE IN NET ASSETS (77,166) (73,369) (194,309) (344,844) NET ASSETS, MAY 1 194,763 687,821 2,853,749 3,736,333 Prior period adjustment - - 845,834 845,834 NET ASSETS, MAY 1, RESTATED 194,763 687,821 3,699,583 4,582,167 NET ASSETS, APRIL 30 $ 117 597 $ 614 452 $ 3 505 274 $ 4 237 323 , r See accompanying notes to financial statements. -93- VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended April 30, 2004 Vehicle and Equipment Garage Insurance Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services $ 249,696 $ 1,798,871 $ 516,810 $ 2,565,377 Receipts from miscellaneous revenue 3,445 - - 3,445 Payments to suppliers (87,902) (2,349,733) (584,556) (3,022,191) 1 Payments to employees (243,207) - - (243,207) Net cash from operating activities (77,968) (550,862) (67,746) (696,576) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund receivables - 4,846 - 4,846 Net cash from noncapital financing activities 4,846 - 4,846 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Gain on disposal of capital assets - - 34,998 34,998 Capital assets purchased - - (155,840) (155,840) Net cash from capital and related financing activities - - (120,842) (120,842) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 576 6,832 11,906 19,314 Net cash from investing activities 576 6,832 11,906 19,314 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (77,392) (539,184) (176,682) (793,258) CASH AND CASH EQUIVALENTS, MAY 1 184,328 1,167,168 2,834,356 4,185,852 CASH AND CASH EQUIVALENTS, APRIL 30 $ 106,936 $ 627,984 $ 2,657,674 $ 3,392,594 �t RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ (78,592) $ (74,868) $ (219,951) $ (373,411) Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation (Increase) decrease in - - 162,679 162,679 Accounts receivable (276) - - (276) Inventories (1,154) - (1154) Increase (decrease) in Accounts payable 363 13,532 (10,474) 3,421 Accrued payroll (1,548) (1,548) Compensated absences payable 3,239 - 3,239 ' Claims payable - (489,526) - (489,526) NET CASH FROM OPERATING ACTIVITIES $ (77,968) $ (550,862) $ (67,746) $ (696,576) See accompanying notes to financial statements. -94- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL GARAGE FUND For the Year Ended April 30, 2004 OPERATING REVENUES Interfund services Billings Miscellaneous Total operating revenues OPERATING EXPENSES Operations OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Total nonoperating revenues (expenses) CHANGE IN NET ASSETS NET ASSETS, MAY 1 NET ASSETS, APRIL 30 Original Final Budget Budget Actual $ 245,000 $ 245,000 $ 249,972 1,000 1,000 3,445 246,000 246,000 253,417 315,692 315,692 332,009 (69,692) (69,692) (78,592) 500 500 1,426 500 500 1,426 $ (69,192) $ (69,192) (77,166) (See independent auditor's report.) -95- 194,763 $ 117,597 i r i i a r t r VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL GARAGEFUND For the Year Ended April 30, 2004 OPERATING EXPENSES Public works department Personnel services Training and development Contractual services Commodities Utilities Capital outlay TOTAL OPERATING EXPENSES Original Final Budget Budget Actual $ 226,417 $ 226,417 $ 244,898 200 200 42 12,700 12,700 19,226 69,700 69,700 62,578 4,300 4,300 2,890 2,375 21375 2,375 $ 315,692 $ 315,692 $ 332,009 (See independent auditor's report.) -96- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL INSURANCE FUND For the Year Ended April 30, 2004 OPERATING REVENUES Interfund services Billings OPERATING EXPENSES Administration Insurance OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Total nonoperating revenues (expenses) CHANGE IN NET ASSETS NET ASSETS, MAY 1 NET ASSETS, APRIL 30 Original Final Budget Budget Actual $ 1,675,674 $ 1,675,674 $ 1,798,871 1,747,118 1,747,118 1,873,739 (71,444) (71,444) (74,868) 15,000 15,000 1,499 15,000 15,000 1,499 $ (56,444) $ (56,444) (73,369) 687,821 $ 614,452 (See independent auditor's report.) -97- 1 1 1 1 1 1 1 1 1 1 1 t 4 1 1 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL VEHICLE EQUIPMENT REPLACEMENT FUND For the Year Ended April 30, 2004 OPERATING REVENUES Interfund services Billings OPERATING EXPENSES Capital outlay OPERATING INCOME (LOSS) BEFORE DEPRECIATION Depreciation OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Investment income Gain on disposal of capital assets Total nonoperating revenues (expenses) CHANGE IN NET ASSETS NET ASSETS, MAY 1 Prior period adjustment NET ASSETS, MAY 1, RESTATED NET ASSETS, APRIL 30 Original Final Budget Budget Actual $ 475,000 $ 475,000 $ 516,810 734,800 984,800 574,082 (259,800) (509,800) (57,272) 162,679 (259,800) (509,800) (219,951) 140,000 140,000 (9,356) - - 34,998 140,000 140,000 25,642 $ (119,800) $ (3692800) (194,309) (See independent auditor's report.) -98- 2,853,749 845,834 3,699,583 $__3,505,274 1 1 1 1 L i 1 1 1 1 1 T 1 G 1 C n Q TI C R 1 1 � i- VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF NET ASSETS FIDUCIARY FUNDS April 30, 2004 Agency Funds Pension East Shore Total Trust Fund Deposit Radio Agency ASSETS Cash and cash equivalents $ 1,405,254 $ 466,999 $ 63,241 $ 530,240 Investments U.S. government securities 7,023,432 - _ _ U.S. agencies securities 593,046 - Mutual funds 8,882,884 - Municipal bonds 2,100,788 - _ Negotiable certificates of deposit 675,363 - Receivables Accrued interest 96,824 Due from primary government 5,271 - Total assets 20,782,862 466,999 63,241 530,240 LIABILITIES Accounts payable 12,325 350 6,540 6,890 Deposits payable - 466,649 - 466,649 Other payable, - - 56,701 56,701 Total liabilities 12,325 466,999 63,241 530,240 0 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS $ 20,770,537 $ _ - $ $ _ i See accompanying notes to financial statements. -99- VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CHANGES IN PLAN NET ASSETS - BUDGET AND ACTUAL POLICE PENSION FUND For the Year Ended April 30, 2004 ADDITIONS Contributions - employer Property taxes - current Replacement taxes Contributions - employee Total contributions Investment income Net appreciation (depreciation) in fair value of investments Interest earned on investments Total investment income Total additions DEDUCTIONS Benefits and refunds Pension payments Separation refunds Miscellaneous Total deductions NETINCREASE NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1. April 30 Original Final Budget Budget Actual $ 330,000 $ 330,000 $ 315,762 - - 10,000 284,000 284,000 288,507 614,000 614,000 614,269 - - 1,162,025 800,000 800,000 711,582 800,000 800,000 1,873,607 1,414,000 1,414,000 2,487,876 1,100,000 1,100,000 1,079,105 30,000 30,000 - 16,750 16,750 7,031 1,146,750 1,146,750 1,086,136 $ 267,250 $ 267,250 1,401,740 (See independent auditor's report.) -100- 19,368,797 $ 202770,537 VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended April 30, 2004 Balances Balances May 1 Additions Deductions April 30 ALL FUNDS ASSETS Cash and investments $ 544,661 $ 38,953 $ 53,374 $ 530,240 Receivables - other 15,461 15,461 TOTAL ASSETS $ 560,122 $ 38,953 $ 68,835 $ 530,240 LIABILITIES Accounts payable $ 10,563 $ 5,406 $ 9,079 $ 6,890 Deposits payable 456,410 15,486 5,247.00 466,649 Other payables 93,149 - 36,448 56,701 TOTAL LIABILITIES $ 560,122 $ 20,892 $ 50,774 $ 530,240 DEPOSIT FUND ASSETS Cash and investments $ 465,839 $ 17,213 $ 16,053 $ 466,999 TOTAL ASSETS $ 465,839 $ 17,213.00 $ 16,053 $ 466,999 LIABILITIES Accounts payable $ 9,429 $ - $ 9,079 $ 350 Deposits payable 456,410 15,486 5,247 466,649 ' TOTAL LIABILITIES $ 465,839 $ 15,486 $ 14,326 $ 466,999 EAST SHORE RADIO NETWORK FUND ASSETS Cash and investments $ 78,822 $ 21,740 $ 37,321 $ 63,241 Receivables - other 15,461 - 15,461 - TOTAL ASSETS $ 94,283 $ 21,740 $ 52,782 $ 63,241 LIABILITIES Accounts payable $ 1,134 $ 5,406 $ - $ 6,540 Other payables 93,149 36,448 56,701 TOTAL LIABILITIES $ 94,283 $ 5,406 $ 36,448 $ 63,241 See accompanying notes to financial statements. -101- 1 i CA C 'O CD i . 1 1 t 1 1 1 f i 1 t Pi e d O d i . 1 1 t 1 1 1 f i 1 t Pi VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF INSURANCE IN FORCE April 30, 2004 Insureds Description of Coverage Amount of Coverage Village of Deerfield Workers' compensation Statutory 1 Village of Deerfield Comprehensive automobile liability bodily injury and property $1,000,000 Village of Deerfield General liability $1,000,000 1 Village of Deerfield Blanket building and contents $55,000,000 Village of Deerfield Boiler and machinery $50,000,000 Public Officials Blanket bond coverage $10,000 /$1,000,000 Village of Deerfield Excess coverage $12,000,000 The Village is a member of the Municipal Insurance g p Cooperative Agency. Property, automobile liability, general liability, and workers' compensation are provided under MICA. The Village is also a member of the High -Level Excess Liability Pool. Excess liability coverage is provided under HELP. (See independent auditor's report.) -102- VILLAGE OF DEERFIELD, ILLINOIS LONG -TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 1997 April 30, 2004 Date of Issue December 1, 1997 Date of Maturity December 1, 2012 Authorized Issue $5,000,000 Denomination of Notes $5,000 Interest Rates 4.35%,4.38%,4.40%,4.45%, and 4.50% Principal Maturity Date June 1 and December 1 Payable at American National Bank and Trust Company of Chicago FUTURE PRINCIPAL AND INTEREST REQUIREMENTS* Tax Levy Bond Year Numbers Principal 2003 290 -355 $ 330,000 $ 330,000 *The bonds were refunded in fiscal yi paid from escrow. Tax Levy Interest Due on Interest Totals June 1 Amount December 1 Amount $ 158,432 $ 488,432 2004 $ 79,216 2004 $ 79,216 $ 158,432 $ 488,432 $ 79,216 $ 79,216 ;ar 2003, and principal maturing in 2005 through 2012 will be (See independent auditor's report.) -103- VILLAGE OF DEERFIELD, ILLINOIS ' LONG -TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 1998 IApril 30, 2004 1 �1� 1 y � (See independent auditor's report.) -104- Date of Issue April 15, 1998 Date of Maturity October 1, 2009 Authorized Issue $17,000,000 Denomination of Notes $5,000 Interest Rates 4.20%,4.25%,4.30%, and 4.35% Principal Maturity Date October 1 Payable at J.P. Morgan Trust Company FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Tax Levy Interest Due on Year Numbers Principal Interest Totals April 1 Amount October 1 Amount 2003 1,201 -1,500 $ 1,500,000 $ 441,750 $ 1,941,750 2004 $ 237,000 2004 $ 237,000 2004 1,501 -1,800 1,500,000 377,250 1,877,250 2005 204,750 2005 204,750 2005 1,801 -2,200 2,000,000 302,000 2,302,000 2006 172,500 2006 172,500 2006 2,201 -2,600 2,000,000 216,000 2,216,000 2007 129,500 2007 129,500 2007 2,601 -3,000 2,000,000 130,000 2,130,000 2008 86,500 2008 86,500 2008 3,001 -3,400 2,000,000 43,500 2,043,500 2009 43,500 2009 43,500 $11,000,000 $ 1,510,500 $12,510,500 $ 873,750 $ 873,750 1 �1� 1 y � (See independent auditor's report.) -104- VILLAGE OF DEERFIELD, ILLINOIS LONG -TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2002 April 30, 2004 Date of Issue February 1, 2002 Date of Maturity December 15, 2004 Authorized Issue $3,460,000 Denomination of Notes $5,000 Interest Rates 3.25% and 4.00% Principal Maturity Date December 15 Payable at Cole Taylor Bank, Chicago, Illinois FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Tax Levy Interest Due on Year Numbers Principal Interest Totals June 15 Amount December 15 Amount 2003 496 -692 $ 985,000 $ 39,400 $1,024,400 2004 $ 19,700 2004 $ 19,700 $ 985,000 $ 39,400 $1,024,400 $ 19,700 $ 19,700 (See independent auditor's report.) -105- VILLAGE OF DEERFIELD, ILLINOIS LONG -TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BOND SERIES OF 2003 IApril 30, 2004 1 I \J,� o-��� 1 1 1 (See independent auditor's report.) -106- Date of Issue February 28, 2003 Date of Maturity December 1, 2012 Authorized Issue $3,460,000 Denomination of Notes $5,000 Interest Rates 2.25 %, 2.55 %, 2.95 %, 3.15 %, 3.30 %, 3.50% Principal Maturity Date December 1 Payable at Cole Taylor Bank, Chicago, Illinois FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Bond Tax Levy Interest Due on Year Numbers Principal Interest Totals June 1 Amount December 1 Amount 2003 13 -20 $ 40,000 $ 95,158 $ 135,158 2004 $ 47,579 2004 $ 47,579 2004 21 -96 380,000 94,258 474,258 2005 47,129 2005 47,129 L 2005 97 -175 395,000 85,707 480,707 2006 42,854 2006 42,853 2006 176 -255 400,000 76,820 476,820 2007 38,410 2007 38,410 2007 256 -337 410,000 67,820 477,820 2008 33,910 2008 33,910 2008 338 -422 425,000 57,365 482,365 2009 28,682 2009 28,683 2009 423 -509 435,000 44,827 479,827 2010 22,414 2010 22,413 2010 510 -599 450,000 31,125 481,125 2011 15,562 2011 15,563 2011 300 -692 465,000 16,275 481,275 2012 8,138 2012 8,137 $ 3,400,000 $ 569,355 $ 3,969,355 $ 284,678 $ 284,677 1 I \J,� o-��� 1 1 1 (See independent auditor's report.) -106- 1 L' 1 1 1 1 1 t 1 1 1 1 pi 1 1 1 1 N d .yi C! d N co 0 O 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS GOVERNMENT -WIDE REVENUES For the Year Ended April 30, 2004 PROGRAM REVENUES Charges for services $ 8,592 175 Operating grants 534,561 Capital grants 297,220 GENERAL REVENUES Taxes 23,695,017 Investment income 556,025 Miscellaneous 283,350 Contributions 365,926 TOTAL REVENUES 34,324,274 NOTE: The Village implemented GASB S -34 for the fiscal year ended April 30, 2004. Data Source Village Records - 107 - VILLAGE OF DEERFIELD, ILLINOIS GOVERNMENT -WIDE EXPENSES For the Year Ended April 30, 2004 GOVERNMENTAL ACTIVITIES General government $ 13,407,856 Public safety 6,718,927 Highways and streets 4,809,688 Interest 574,558 Total governmental activities 25,511,029 BUSINESS -TYPE ACTIVITIES Water 3,915,324 Sewer 2,335,993 Refuse disposal 1,388,879 Commuter parking lot 43,573 Total business -type activities 7,683,769 TOTAL PRIMARY GOVERNMENT $ 33,194,798 NOTE: The Village implemented GASB 5 -34 for the fiscal year ended April 30, 2004. Data Source Village Records 1: W Q .a _W w W W Q w O Q .a O N m O O N N O O N .r O O N O O N m w F OO O\ D\ r O) O\ O\ V) C\ C O r� U w N 00 r N V) O\ O\ O O r N N O 00 C, 'T a oo r V N C, 000 z O cri 69 69 'n N C\ h 7 N M M •-+ 'ti 00 N C\ In C\ O M 69 69 ON O a o0 7 O 000 Cl) 00 Oro Vm) z N 000 O) 69 �O N 00 z V) r (� •-+ rf) 00 10 Q � � 7 cl N N ^� O) V) V) O 7 O\ r V) O_ t1 V) `O O O M kt) N 00 ' '. 69 69 O\ V z N O VV) O C\ ^� 00 lc N 1 lc 7 O 0 00 0 )D oo rn V) O\ U — U C) .r N Q\ 00 V) M r M V1 O1 '" 7 69 69 N r V) 7 O\ 0 00 .N.� O\ R m r- O) [� lO lO V O O, r �--� O N O\ N 7 I� O 7 7 CN O 69 69 V O\ r N T VV) ) O O r N 00 N v) V) Cl) 07 M Q\ 00 00 V) O 00 R V) M 00 00 N O% m 69 69 V7 �O O) O) 00 00 O 00 C) W lO m 00 rl�, )O r+ M - � N � N O 000 br- 00 ( j 69 69 �O O 00 r z r- O\ )O O V) 7 a\ v) O )O O\ 7 M N V) M O Cl) 00 r 7 m 0O 00 — 00 � 69 69 h r m O )O )D N O\ O r O) IT lc O 7 V) � O O Cl) ONO N r r W 0 z ti b o U V O U1 � OA �I g Qi O c > O z 4) W 0 z ti b o U V O U1 � OA �I g Qi O R O O N M O O N N O O N O O N z 0 F O O w ° G7 � �y G ►a � F w w � a w O Z y 00 ►a w Q r Q\ w z w c7 O\ rn ut m U w 00 7 O\ N 00 r C M O M r C 69 �o oo •_, C N O\ M O oc h N r ol C 01 M K O\ O V O N CK _ rn rn v v a r C C a; a d V M U C 69 M U N N c M O\ Vi r O K M 0o O O c O\ - N r It Q In rn M r m « N N 00 �O O M IX 69 N r tn h b9 K1 D\ 7 ut FA N v 00 M V 69 O V 00 00 N V1 b9 0 h et fV 69 h 7 7 h r ow r O� V 69 r V' r M O 69 h DD C N O rn 0 M 69 G7 W �i � O � O U ti G U U F .d U O U U L O � U au m Q v « « r 0 00 r r \ \C N V V O O o oc M V V D D 0 00 <! a r r C C\ K 69 �o � �o 00 vt V V V V M M d 00 0 0\ N N O O\ • •-� d O � �D • •-� O O M M �C 7 D D , ,7 d d N V Vl . .--i . .ti Cr 69 0� N N O ON N v O � � v � � � � a N r r O On M M �C Ne► - -+ . .-.i K 69 N N N N N �O O O\ V V' 0 00 V V) V O O O N N 0 00 r r r O N N N N C C Q Q V O N N 0 00 0 01 K N � �D • •-+ h h v-. N e et N N K K v r rn r r k kn P M 0 00 V V1 f� 00 V V1 C C 0 00 C C 69 N r tn h b9 K1 D\ 7 ut FA N v 00 M V 69 O V 00 00 N V1 b9 0 h et fV 69 h 7 7 h r ow r O� V 69 r V' r M O 69 h DD C N O rn 0 M 69 G7 W �i � O � O U ti G U U F .d U O U U L O � U au m Q F .d U O U U L O � U au m Q F, 1 1 G 1 1 �l 1 1 1 1 1 1 1 1 t (This page is intentionally left blank.) � C 7O � a q G A u" E O < CW7 i G I r .a 1 � C E� 0C CT z r C% b D\ 0\ C\ C\ C\ RIC\ N z O O O O O O O O r ° q F m N C� M O N O x ] Z z ^" C W m C% r O N C� r 00 rn M 'n OM zz `� � c a b � a •° � � O U q r M M W o ago °� wbu 69 69 69 6/i v 'n 00 �o m r O O M D1 V t7 O •••� O y O 0 0 0 0 O CYi 0 0 O m 0 0 M 00 O r N O — h O vl N D1 M a+ O C\ 00 �"„ O m M m a 00 kn (N 00 M m C1 r r N M M 69 FA 69 N m vt M v) a N y 0 0 C 0 0 0 O Rai N N O O m 0 0 vl M C: O O �D in O 00 r r kn Y r N O C\ A N M Cl) ^� 0000 r N m N N Q ~ 69 69 69 69 �O vt O n C% O vl C� v1 v1 m •-r -e O\ O —+ O 0 0 0 0 0 0 O M r 0 O M O O O 00 N 00 O O N V1 V1 r C\ D\ � ' ' 00 00 D\ r, N r l w M Q1 C\ M C\ Cl) 7 M 'n 0 ^� M 00 C1 r N M M 69 6A 69 ..r O — O r * y 0 0 0 0 0 0 O G �i '7 O O t O O vl O O C� �C M h h V) O O C\ V) O C\ r r 00 w --� O C\ vl N t'- M M M 0\ vi O M a ^vi,+ n -- O N O O m 00 CN r N m 00 Q 7 vn 69 69 6q 5q M V 00 O 00 00 r C\ O O C% In y1 I'D N M M O O --� O -� O r O O O O O O O O O z z ° q F m z H x ] Z z �� W U � � zz `� � c a b � a •° � � O U q W m c W o ago °� wbu i Z E G rA �O7 G'r � W C ' w Gil E A C O � 1 F i G G G C G D jE E ' P G P P i I N w I F G d F M O O N N O O N O O N O O 0 N C) C\ C, h M O r N 69 x R � O O ° r` 00 69 b N N � C% � O v) � O 69 P; o` N cl 00 � O M t- 69 P: b N o0 O O r` O H Q W F N C� 7 0o O O c N M v) v) C N o0 C C O 'n t� C t� O M l- r 69 z coo rn M 0 m 00 0 M r o O O C O O O O C a m o 0 0 a N C\ O v) v) r R of ' C� cl lc C 00 z -� a r` v O 69 z coo rn M 0 m 00 0 M r o O O O C 0 0 0 0 o c O O C, ' O O r o C� r (7 to C D M V M C\ M (^ 69 69 00 C) r O C O O O O O c o O 0 o c W) C� ON b b kn CCU c v M rn v r r M )O V M h IX C) a N )D O d , O O C O O O O O C N 00 N i 7 69 00 I � 'c} O r` O N 69 r` r` v 0 00 N 00 00 D\ O V .M-. h O O Cn h 7 r` N C FA r` h O b M O M t� N N 69 v r O' O 00 � O M N a 69 G r� 00 cl � O O N 7 69 7 � O 69 O O O ID O O )D O %O O ' o O v) O z N v1 N h h C) 00 M 7 M O) � 69 69 o a In o a ° e o g O O O O O O b d m v, w 0 0 0 ° z •° O � � � � b w � o W z '� O `�' a ° ctl u 'D b C y '� ' w C 0 °� 2° W y 7 Do y VILLAGE OF DEERFIELD, ILLINOIS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Fiscal Year Tax Levy Year Equalized Assessed Value Estimated Actual Value Ratio of Total Assessed Value to Total Actual Value Equalization Factor 1995 1994 $ 583,049,834 $ 1,749,149,502 33.33 1.0000 1996 1995 603,544,983 1,810,634,949 33.33 1.0000 1997 1996 624,187,752 1,872,563,256 33.33 1.0000 1998 1997 648,880,301 1,946,640,903 33.33 1.0000 1999 1998 677,651,742 2,032,955,226 33.33 1.0000 2000 1999 701,085,856 2,103,257,568 33.33 1.0000 2001 2000 737,589,929 2,212,769,787 33.33 1.0000 2002 2001 800,595,252 2,401,785,756 33.33 1.0000 2003 2002 871,070,465 2,613,211,395 33.33 1.0000 2004 2003 921,735,951 2,765,207,853 33.33 1.0000 Data Source Office of the County Clerk - 113 - i i I I U7 r7� r 1 H A � W ' w � a w Q w c O Q � 1-a .a E E f .G G C L L M O O N N O O N O 0 N O O O N y 0\ 7 � N 'y w 00 H a� a y � � F ra O\ 7 � i V) O\ rn S i O\ O\ r- ^-r h `O N V) O N N V) --� lqll V' T N O M W O\ N O N 0 7 :� O N o0 N O 0 0 0 0 0 0 0 N— O O (7\ 7 00 O O\ 'IT V) N \O 00 00 N 7 M O\ N O 0 0 0 0 0 0 0 lV -•+ O O U b N O O 00 h O\ �c NZ) N N O V) I� w � y O 0 0 0 0 0 0 0 (V fV O O Vl V) O\ O O 00 N N V 00 m N O O N N W O'T V) 00 N 0 7 m h h O V O N O 0 0 0 6 0 0 0 (V N O O 00 D\ 00 V) 00 00 N \O 7 M O N 00 00 M �--1 \O 00 N a0 tt N O '7 M \O V) O V 00 N O 0 0 0 0 0 0 0 N O 00 f� N N 1.0 m m N o \O \O D\ N N o0 00 m 7 00 N 00 7 O R M \D V) O M 00 N O 0(=>00000 O\ r \o M b .. h 7 ., O V) O\ O\ N 7 00 C 0 7 m 110 V) .--i W 14) h r- ON O\ \O V) O N N D\ N In h r- ? .Nr O\ V) N D\ V) O 7 M \D Vl F O 0 0 0 0 0 0 0 (J -•� O O In O't M 10 V) O N 00 N O O O O O O o O N-0 O I O 7 U b N O rn w � y � W � � �bxxu, � ° •� oo � � F Qx: H Q 3 I O F O a d U N �i L)r F as V FLU WA AA N Az O O� z �o F a O d ►a � A W O w W F C7 LU F V) a wz C, o .. OW F a W A O 1 LU M d 69 O O O\ o N N V O 00 N h ° °.. V) 00 C, o .. Rn O 0 o h O 1 � M 69 N _ C% 69 o kr) o (ON a � o o m M m o0 O kr O in •-+ rn \0 O 00 a0 Go!) N 7 N oo 69 O N O V) V) c Q\ N V) O V) N tt et N O 00 00 N 00 V) O O d\ �-+ O\ O ~ I 00 6s N 00 Es; O O) CY O\ O m �o m O) - oo 00 o in CV C CA Q\ \0 M O) � p V) l V1 E9 y N h O N h h � 69 y w o h to p O V1 O Q\ O 0 .-r O) (� O O oo 00 N O N m m 0 p o a v •• N O N N N r 69 00 00 � h E09 w O N V O V N y p vi 00 N h 1, O) ll) Qn O O0, ." t-- N 69 0 N N 69 m O O o O r, op o o � N v a 00 00 0 N � Cl) C\ 00 h (� N � N N 0 h N O m h o Off•, V) 0 00 O l M O r h h h V) V) O\ .--i 00 V1 m m m O) O) N h 609 w N C 69 b h Cl) O O O o N 00 O O) r+ m q) M OL O O\ O )0 h V O z M p) .r V N OO M R Q V N O 69 Cl) O N 00 LL m 69 G1 O � 7 O V �D o �D r •� M °o V) O\ V1 00 � Cl) .h••i 7 O h V M 0\ N 69 t� � 0 � U � b ; y p U � v 0 m O O w O w O 0 (7 q O A. p U c> cs a> VS O ca N C U O Q O 7 y 60i y R. W '..• N "3F U Q L j O pap a0i p N 69 w r ' VILLAGE OF DEERFIELD ILLINOIS 0 I SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT April 30, 2004 (1) * (2) ** Gross Percentage (3) General of Debt Village's ' Obligation Applicable to Share Governmental Unit Debt Government of Debt ' Village of Deerfield $ 11,985,000 100.000% $11,985,000 Deerfield Park District 6,520,000 99.000% 6,454,800 Metropolitan Sanitary District 1,365,545,000 0.090% 1,228,991 Lake County and Forest Preserve 230,276,852 3.830% 8,819,603 Cook County and Cook County Forest Preserve 2,038,133,045 0.090% 1,834,320 North Shore Sanitary District 10,495,345 0.024% 2,519 Northbrook Park District 24,520,000 0.03% 7,356 ' Township High School #113 61,605,000 25.13011/6 15,481,337 Northfield Township High School #225 38,922,769 2.270% 883,547 iJunior College #532 9,793,070 4.05% 396,619 North Shore School District #112 60,705,000 0.21% 127,481 Elementary School District #109 25,945,000 71.48% 18,545,486 3,872,461,081 53,782,059 Total gross debt 3,884,446,081 65,767,059 ' Less Debt Service Fund amount available - Village of Deerfield 1,674,419 1,674,419 TOTAL DIRECT AND OVERLAPPING DEBT $ 3,882,771,662 $ 64,092,640 * Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation. ** Amount of column (2) multiplied by amount in column (1). ' Data Source Office of the County Clerk - 116 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF LEGAL DEBT MARGIN April 30, 2004 The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution govems 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 per cent:... indebtedness which is outstanding on the effective date (July 1, 197 1) of this constitution or which is thereafter approved by referendum... shall not be included in the foregoing percentage amounts." To date, the General Assembly has set no limits for home rule municipalities. Illustrative Computation of Debt Margin if Government Were Not a Home Rule Municipality The Village is a home rule municipality and, as such, has no debt limitations. If, however, the Village were a non -home rule municipality, its available debt limit would be as follows: EQUALIZED ASSESSED VALUATION - 2003 Legal debt limit - 8.625% Amount of debt applicable to limit General Obligation Bonds Series 1998 General Obligation Bonds Series 2002 LEGAL DEBT MARGIN - 117 - $ 921,735,951 $ 79,499,726 $ 11,000,000 985,000 11,985,000 $ 67,514,726 1 1 1 1 1 1 lJ t 1 1 i 1 1 i� 1 1 1 1 I 1 1 ° Qi r�T7� ' � W O� az w 1 � W O � W z C7 U Q W W F O U v� F Q� Q li 1 A 0z c 1 �o 0 00 00 a O N cn 69 69 C\ In V m V 0 M O O O a 7 N M ll ti 69 69 ^� a o 1.0 N a 0 o M m N O O .r �p I M p N M 7 69 Efi a Ir 0 o C O M v W N N N f+l .may 69 69 N a 00 vi I� M O N O N V N rA 09 �0 7 00 a a 'IT h rn N _ o � o � a M 7 69 69 000 v o In C � o 69 69 b A C\ 00 N D o o � N 'n a N Ol ol N o . 00 Q � � c U U _ CIO Q uo F Gam] � ZI-I M J W � U v, Im b ja W U w 0 0 c°7wO0w Q .. �o 1 VILLAGE OF DEERFIELD, ILLINOIS DEMOGRAPHIC STATISTICS school) 3) Unemployment figures based on one - fourth of Lake County from the Bureau of Labor Statistics. I 1 1 1 r� 1 1 _119- Last Ten Fiscal Years ' (1) 'Percentage of People (1) Over 25 Years Median (1) of Age with (2) (3) ' Fiscal (1) Household Median Four or More School Unemployment Year Population Income Age Years of College Enrollment Percentage ' 1995 17,327 $ 71,966 35.6 60.7 4,287 1 1996 17,327 71,966 35.9 60 3,978 0.9 1997 17,327 71,966 35.9 59.6 4,060 0.9 , 1998 18,002 71,966 35.9 59.6 4,275 0.9 1999 18,002 71,966 35.9 59.6 4,362 0.7 2000 18,002 107,194 35.9 68.5 4,500 0.9 ' 2001 18,420 107,194 39.6 68.5 4,717 0.9 2002 18,420 107,194 39.6 68.5 4,743 1.4 2003 18,420 107,194 39.6 68.5 4,752 3.2 , 2004 18,420 107,194 39.6 68.5 4,867 3.8 Data Sources 1) Derived from data from Department Commerce, Bureau the Census 2000 , the of of 2) Enrollment figures derived from combined enrollment of District 109 (grade school) and District 113 (high ' school) 3) Unemployment figures based on one - fourth of Lake County from the Bureau of Labor Statistics. I 1 1 1 r� 1 1 _119- VILLAGE OF DEERFIELD, ILLINOIS PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS ILast Ten Fiscal Years Data Source 1) Construction figures - Village of Deerfield, Building and Zoning Department 2) Lake and Cook County Tax Extension Offices N/A - Not available - 120- (1) (1) (2) Commercial Construction Residential Total Fiscal Number of Number of Bank Property Year Units Value Units Value Deposits Value 1995 128 $11,879,282 161 $13,543,000 $ 126,586,600 $ 1,749,000 1996 126 10,244,658 139 4,366,274 266,731,677 1,811,000 1997 110 20,622,746 28 9,710,530 255,374,171 1,873,000 1998 7 13,614,000 28 7,279,300 517,655,000 1,947,000 1999 11 43,547,842 31 9,348,746 N/A 2,103,000 2000 10 17,555,220 30 9,121,730 420,924,000 2,213,000 2001 10 27,153,621 34 25,089,352 390,440,000 N/A 2002 1 534,500 28 18,362,841 292,491,658 N/A 2003 124 35,520,924 41 27,128,958 N/A N/A 2004 987 61,012,183 102 17,431,871 N/A N/A Data Source 1) Construction figures - Village of Deerfield, Building and Zoning Department 2) Lake and Cook County Tax Extension Offices N/A - Not available - 120- VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL TAXPAYERS April 30, 2004 Percentage 2003 of Total Assessed Assessed Taxpayers Type of Business Valuation Valuation Carr America Realty Group Parkway North $ 39,421,179 4.28% Cornerstone Deerfield LLC Corporate 500 Center 23,938,851 2.60% Mass Mutual Life Insurance Co. Lake Cook Office Center Deloite & Touche Hyatt Campus Office Park Estate of James Campbell Arbor Lake Center Baxter Felcor Suites Ltd Partnership Mid America Asset M anagement/Alb erts on's Office Buildings (4) Embassy Suites Hotel Deerbrook Shopping Center* 2,925,999 7,869,184 7,299,999 6,066,193 6,749,997 5,064,698 0.32% 0.85% 0.79% 0.66% 0.73% 0.55% Walgreen Co. Office 13,462,870 1.46% CRM Properties Retail 12,202,982 1.32% Marriott Hotels 7,229,106 0.78% TOTAL $ 132,231,058 10.78% * Property is currently being redeveloped. Estimate of equalized assessed value prior to improvements. Data Source Office of the County Clerk - 121 - 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF DEERFIELD, ILLINOIS MISCELLANEOUS STATISTICS April 30, 2004 Date of Incorporation 1903 Form of Government Manager /Council Geographic Location North Suburban Population 1960 11,748 1970 18,876 1980 17,430 1990 17,327 1997 18,002 2000 18,420 Municipal Services and Facilities Number of full -time employees (FTE) 112 Miles of street 76 Miles of alleys 4 Miles of sewers 138 Building Inspection Number of permits issued in fiscal year 2004 1,089 -122- VILLAGE OF DEERFIELD, ILLINOIS MISCELLANEOUS STATISTICS (Continued) April 30, 2004 Fire Protection District Number of firefighters and officers 43 Number of stations 2 Police Protection Number of stations 1 Number of policemen and officers 40 Library Services Number of branch libraries 1 Number of books 181,000 Recreation Facilities Number of parks and playgrounds 21 Park area in acres 357 Municipal Water Utility Population serviced - number of service connections 6,783 Average daily pumpage 2,931,000 gallons Miles of water mains 83 Data Source Village Records - 123 -