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Village CAFR For Year Ended December 31, 2018Comprehensive Annual Financial Report for the year ended December 31, 2018 Village of Deerfield, Illinois COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE VILLAGE OF DEERFIELD, ILLINOIS As of and for the Year Ended December 31, 2018 Prepared by Finance Department Eric L. Burk Director of Finance/Treasurer VILLAGE OF DEERFIELD TABLE OF CONTENTS As of and for the Year Ended December 31, 2018 Page(s) INTRODUCTORY SECTION Letter of Transmittal i - iv Certificate of Achievement for Excellence in Financial Reporting v Organization Chart vi Principal Officials vii FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 - 2 REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS 3 - 9 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 10 Statement of Activities 11 - 12 Fund Financial Statements Balance Sheet - Governmental Funds 13 - 14 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 15 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 16 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 17 Statement of Net Position - Proprietary Funds 18 - 21 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 22 - 23 Statement of Cash Flows - Proprietary Funds 24 - 27 Statement of Fiduciary Net Position - Fiduciary Funds 28 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 29 Index to Notes to Financial Statements 30 Notes to Financial Statements 31 - 72 REQUIRED SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 73 VILLAGE OF DEERFIELD TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2018 Page(s) REQUIRED SUPPLEMENTARY INFORMATION (cont.) Historical Pension Information Illinois Municipal Retirement Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 74 - 76 Illinois Municipal Retirement Fund - Schedule of Employer Contributions 77 - 78 Police Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 79 Police Pension Fund - Schedule of Employer Contributions 80 - 81 Police Pension Fund - Schedule of Investment Returns 82 Retiree Health Plan - Schedule of Changes in Village Total OPEB Liability and Related Ratios 83 Notes to Required Supplementary Information 84 SUPPLEMENTARY INFORMATION Major Governmental Funds Detailed Schedule of Revenues - Budget and Actual - General Fund 85 Detailed Schedule of Expenditures - Budget and Actual - General Fund 86 - 88 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Debt Service Fund 89 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Infrastructure Replacement Fund 90 Nonmajor Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds 91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 92 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Motor Fuel Tax Fund 93 Enhanced 911 Fund 94 2011B Debt Service Sinking Fund 95 Bond Proceeds 96 Enterprise Funds Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Water Fund 97 Schedule of Operating Expenses - Budget and Actual - Water Fund 98 VILLAGE OF DEERFIELD TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2018 Page(s) SUPPLEMENTARY INFORMATION (cont.) Schedule of Capital Assets and Depreciation - Water Fund 99 Schedule of Revenue, Expenses and Changes in Net Position - Budget and Actual - Sewerage Fund 100 Schedule of Operating Expenses - Budget and Actual - Sewerage Fund 101 Schedule of Capital Assets and Depreciation - Sewerage Fund 102 Schedule of Revenues, Expenses and Changes in Net Position - Budget to Actual - Refuse Fund 103 Schedule of Revenues, Expenses and Changes in Net Position - Budget to Actual - Commuter Parking Lot Fund 104 Schedule of Operating Expenses - Budget to Actual - Commuter Parking Lot Fund 105 Schedule of Capital Assets and Depreciation - Commuter Parking Lot Fund 106 Internal Service Funds Combining Statement of Net Position - Internal Services Funds 107 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 108 Combining Statement of Cash Flows - Internal Service Funds 109 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Garage Fund 110 Schedule of Operating Expenses - Budget and Actual - Garage Fund 111 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Vehicle and Equipment Replacement Fund 112 Fiduciary Funds Statement of Changes in Fiduciary Net Position - Budget and Actual - Police Pension Trust Fund 113 Combining Schedule of Changes in Assets and Liabilities - All Agency Funds 114 Long-Term Debt Requirements General Obligation Bond Series 2010A 115 General Obligation Bond Series 2011A 116 General Obligation Bond Series 2011B 117 General Obligation Bond Series 2012 118 General Obligation Bond Series 2013 119 General Obligation Bond Series 2015 120 General Obligation Bond Series 2017 121 VILLAGE OF DEERFIELD TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2018 Page(s) SUPPLEMENTARY INFORMATION (cont.) General Obligation Bond Series 2018 122 STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years 123 - 124 Change in Net Position - Last Ten Fiscal Years 125 - 128 Fund Balances of Governmental Funds - Last Ten Fiscal Years 129 - 130 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 131 - 132 Equalized Assessed Value and Actual Value of Taxable Property 133 Direct and Overlapping Sales Tax Rates - Last Ten Levy Years 134 Principal Property Taxpayers 135 Property Tax Levies and Collections 136 Sales Tax By Category - Last Ten Calendar Years 137 - 138 Direct and Overlapping Sales Tax Rates 139 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 140 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 141 Direct and Overlapping Bonded Debt - Governmental Activities 142 Legal Debt Margin Information 143 Demographic and Economic Information - Last Ten Fiscal Years 144 Principal Employers - Current Year and Nine Years Ago 145 Full-Time Equivalent Employees - Last Ten Fiscal Years 146 Operating Indicators - Last Ten Fiscal Years 147 Capital Asset Statistics - Last Ten Fiscal Years 148 OTHER INFORMATION Continuing Disclosures 149 - 155 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Deerfield Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2017 Executive Director/CEO Village of Deerfield, Illinois Organization Chart Village Residents Village Board Boards and Commissions Village Manager Assistant Village Manager Police Department Patrol Investigations & Youth Communications Records Finance Department Accounting Budgeting Personnel & Payroll Utility Billing & Customer Service Risk Managment Community Development Department Permits, Inspections Plan Review Planning Code Enforcement Zoning & Appearance Review Public Works & Engineering Engineering Inspection & Review Water Supply Sewer Maintenance & Sewer Treatment Vehicle Maintenance Street Maintenance Village Attorney vii VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL OFFICIALS December 31, 2018 LEGISLATIVE VILLAGE BOARD OF TRUSTEES Harriet E. Rosenthal, Mayor Daniel C. Shapiro Thomas L. Jester Barbara J. Struthers William S. Seiden Robert L. Benton Mary M. Oppenheim Kent S. Street, Clerk ADMINISTRATIVE Kent S. Street, Village Manager FINANCE DEPARTMENT Eric L. Burk Director of Finance/Treasurer Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP Page 1 INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the Board of Trustees Village of Deerfield, Illinois Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Deerfield, Illinois, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the Village of Deerfield's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control over financial reporting relevant to the Village of Deerfield's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Village of Deerfield's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Deerfield, Illinois, as of December 31, 2018 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. To the Honorable Mayor and Members of the Board of Trustees Village of Deerfield, Illinois Page 2 Emphasis of Matter As discussed in Note I, the Village of Deerfield adopted the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, effective January 1, 2018. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Deerfield's basic financial statements. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Deerfield's basic financial statements. The introductory section, statistical section, and other information are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Oak Brook, Illinois June 12, 2019 M A N AG E M E N T’S D I S C U S S I O N A N D A N A L Y S I S Page 3 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2018 (UNAUDITED) The Village of Deerfield (the “Village”) management’s discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village’s financial activity, (3) identify changes in the Village’s financial position (its ability to address subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget) and (5) identify individual fund issues or concerns. Since Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning on page i) and the Village’s financial statements (beginning on page 10). Financial Highlights  The Village’s General Fund ended the period with total revenues exceeding total expenditures by $2,819,132. Combined with other financing uses of $1,955,984, the December 31, 2018 fund balance increased by $863,148. The 2018 General Fund budget originally showed a decrease of $906,288. However, revenues exceeded budget due primarily to greater than expected investment income along with hotel/motel tax and building permit receipts. In addition, expenditures were below budget due primarily to retirements and the corresponding lag in employee replacement. See Major Governmental Funds section of MD&A for further details.  Sales tax and home rule sales tax decreased $750,529 and $785,602, respectively in the current year. The decrease was due largely to reduced economic incentive activity in the current year, which also resulted in reduced expenditures in the finance department contractual services. Sales tax net of the economic incentive payments is consistent with the 2016 amount. Gross sales tax excluding economic incentive activity increased by 1.18% from 2017.  In July of 2017, the State enacted a 2% administrative fee on the Village’s home rule sales tax. In addition, the Local Government Distributive Fund (LGDF) was reduced by 10%. The 2% fee was reduced to 1.5% in 2018 and the 10% LGDF reduction was decreased to 5% in 2018. The Village’s share of state income tax flows through the LGDF. The LGDF cuts were partially offset by increased State income tax due to a special census performed in 2017. State income tax decreased by $84,294 in 2017 and increased by $108,686 in 2018.  Hotel/motel tax revenue ($2,159,203) exceeded current year expectation of $1,900,000; business travel is the primary reason for stays at Deerfield hotels. All six of the Deerfield hotels remained open during the year.  The Village collected $1,251,639 from the Electric Utility tax and $1,368,145 from the Simplified Telecommunications tax. Electric Utility tax increased from the prior year and was consistent with the current year budget. Simplified Telecommunications tax decreased slightly from the prior year and is expected to continue to decrease as use of data driven telecommunications increases.  The 1% food and beverage tax, which was implemented in March of 2017, totaled $607,914 for the year. The tax is allocated to the infrastructure replacement fund and exceeded current year expectation and prior year amount.  The infrastructure maintenance fee of ½ of 1% of the project value, which was implemented in 2012, totaled $412,690 for the year. This amount exceeded current year expectation and the prior year amount.  The Village retired $2,285,000 of general obligation debt and issued $5,970,000 of new general obligation debt during the period. The new debt issue is being used for capital projects in 2018 and 2019. The total balance of debt outstanding as of December 31, 2018 was $62,845,000. USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL REPORT The financial statement’s focus is on both the Village as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government-to-government) and enhance the Village’s accountability. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Page 4 Government-Wide Financial Statements The government-wide financial statements (see pages 10 - 12) are designed to be corporate-like in that all governmental and business-type activities are consolidated into columns that add to a total for the Primary Government. The focus of the Statement of Net Position (the “Unrestricted Net Position”) is designed to be similar to bottom line results for the Village and its governmental and business-type activities. This statement combines and consolidates the governmental fund’s current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities (see pages 11 – 12) is focused on both the gross and net cost of various activities (including governmental and business-type), which are supported by the government’s general taxes and other resources. This is intended to summarize and simplify the user’s analysis of the cost of various governmental services and/or subsidy to various business-type activities. The governmental activities reflect the Village’s basic services, including police, public works, engineering and administration. Property tax, shared state sales tax, local hotel/motel tax and shared state income taxes finance the majority of these services. The business-type activities reflect private sector type operations (Water, Sewer, Refuse Disposal and Commuter Parking) where the charges for services typically cover all or most of the cost of operation, including depreciation. Fund Financial Statements Traditional users of governmental financial statements will find the fund financial statements presentation more familiar. A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Village uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the Village’s most significant funds rather than the Village as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for non-major funds is provided in the form of combining statements in a later section of this report. The governmental major funds (see pages 13 – 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 provide information about financing decisions and the amount invested in maintaining and improving infrastructure. These two perspectives can provide insight into the long-term impact of short-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances reconcile the differences between these two perspectives. Budgetary comparison schedules for other funds can be found in a later section of this report. These statements and schedules demonstrate compliance with the Village’s budget. Proprietary or business-type activity funds (see pages 18 - 27) reported in the fund financial statements are for those services for which the Village charges customers a fee. There are two kinds of proprietary funds, enterprise and internal service. Enterprise funds essentially encompass the same functions reported as business-type activities in the government-wide statements. Enterprise fund services are primarily provided to customers external to the Village organization such as those of the water and sewer utilities, commuter parking lots and refuse collection and disposal. Internal service funds provide services and charge fees to customers within the Village organization such as equipment services (repair and maintenance of Village vehicles). Internal services are to both the governmental and business-type activities of the government-wide financial statements. 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. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Page 5 Fiduciary funds (see pages 28 - 29) 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 31 of this report. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village’s funding of pension benefit obligations to its employees and budget information. Major funds and component units are reported in the basic financial statements as discussed. Combining and individual statements and schedules for non-major and internal service funds are presented in a subsequent section of this report. FINANCIAL ANALYSIS OF THE VILLAGE AS A WHOLE The Village implemented the new financial reporting model (GASB #34) beginning with the fiscal year that ended April 30, 2004. Over time, as year-to-year financial information is accumulated on a consistent basis, changes in net position may be observed and used to discuss the changing financial position of the Village as a whole. STATEMENT OF NET POSITION –Village of Deerfield (in millions of dollars) Governmental Activities Business-type Activities Total – Primary Govt. 2018 2017 2018 2017 2018 2017 Current & Other Assets 61.82 54.91 4.52 4.17 66.34 59.08 Capital Assets 77.20 78.52 60.56 61.32 137.76 139.84 Total Assets 139.02 133.43 65.08 65.49 204.10 198.92 Deferred Outflows of Resources 12.88 10.53 0.28 0.82 13.16 11.35 Total Assets and Deferred Outflows of Resources 151.90 143.96 65.36 66.31 217.26 210.27 Long-Term Liabilities 58.99 44.82 27.75 29.81 86.74 74.63 Other Liabilities 9.31 8.99 1.46 1.64 10.77 10.63 Total Liabilities 68.30 53.83 29.21 31.45 97.51 85.26 Deferred Inflows of Resources 17.97 21.03 0.48 0.03 18.45 21.06 Total Liabilities and Deferred Inflows of Resources 86.27 74.84 29.69 31.48 115.96 106.32 Net Position: Net Investment in Capital Assets 49.78 56.11 32.55 32.57 82.33 88.68 Restricted 7.46 5.87 - - 7.46 5.87 Unrestricted 8.39 7.14 3.12 2.26 11.51 9.40 Total Net Position 65.63 69.12 35.67 34.83 101.30 103.95 Current & Other Assets have increased mainly due to increases in Governmental Activities cash and investment balances (remaining bond proceeds, Motor Fuel Tax and Infrastructure Replacement Fund) that will be spent in 2019 as a part of the Capital Improvement Plan. In addition, the 2011 B Debt Service Sinking Fund cash and investment balance will increase each year until the bonds are paid in 2028. Deferred Outflows of Resources increased and Deferred Inflows of Resources decreased in relation to Pension items (See Employee Retirement Systems footnote) in the Governmental Activities. Long-Term Liabilities increased due to increases in the actuarially determined Net Pension Liability and the issuance of $5.97 million of bonds. Increases in Long-Term Liabilities were partially offset by $2.28 million of bond principal payments. Net Position for 2018 was also affected by the implementation of GASB Statement #75, which resulted in a restatement and reduction of beginning net position of approximately $2.37 million. 2017 amounts above do not reflect the restatement. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Page 6 The following table provides a summary of activities causing a change in net position. Changes in Net Position –Village of Deerfield (in millions of dollars) Governmental Activities Business-type Activities Total – Primary Govt. 2018 2017 2018 2017 2018 2017 Revenues: Program Revenues: Charges for Service 5.54 4.55 7.99 7.97 13.53 12.52 Operating Grants 0.48 0.47 - - 0.48 0.47 Capital Grants 0.08 0.95 0.80 1.06 0.88 2.01 General Revenue: Property Taxes 7.22 7.21 - - 7.22 7.21 Other Taxes/ Intergovernmental 17.47 18.71 - - 17.47 18.71 Other 0.87 1.04 0.25 0.21 1.12 1.25 Total Revenue 31.66 32.93 9.04 9.24 40.70 42.17 Expenses: General Government 9.11 10.10 - - 9.11 10.10 Public Safety 10.80 10.87 - - 10.80 10.87 Highways and Streets 9.19 13.07 - - 9.19 13.07 Interest/fiscal charges 1.09 1.00 - - 1.09 1.00 Water - - 4.34 4.10 4.34 4.10 Sewer - - 4.65 3.96 4.65 3.96 Refuse - - 1.44 1.32 1.44 1.32 Parking Lots - - 0.35 0.30 0.35 0.30 Total Expense 30.19 35.04 10.78 9.68 40.97 44.72 Increase(decrease) before transfers 1.47 -2.11 -1.74 -0.44 -0.27 -2.55 Transfer in (out) -2.78 -2.78 2.78 2.78 - - Changes in Net Position -1.31 4.89 1.04 2.34 -0.27 -2.55 Ending Net Position 65.63 69.12 35.67 34.83 101.30 103.95 CURRENT YEAR IMPACTS Governmental Activities Revenue Capital grants decreased $1.13 million due to outside funding for major infrastructure projects in the prior year. Property tax revenue remained consistent as the Village Board abated a portion of the levy in 2018. Other taxes/intergovernmental decreased due largely to reduced economic incentive activity which also resulted in a decrease in expenditures. A local Food & Beverage tax was implemented in March 2017. Increases in Food & Beverage tax resulting from a full year of activity partially offset decreases in economic incentive activity. Expenses The Village’s Governmental Activities expenses decreased by $0.99 million due largely to reduced economic incentive activity referenced above. Highway and Streets expense decreased $3.88 million due to major infrastructure projects that were completed in 2017. In addition, Motor Fuel Tax (MFT) expenses of $0.50 million were deferred to 2019. Interest and fiscal charges reflect scheduled interest payments adjusted for interest payable and amortization of discounts/premiums. $5.97 million of debt was incurred in 2018. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Page 7 Business-type Activities Revenue A water rate increase of 4.0% was implemented in January, 2018; water sales totaled $4.24 million, which was less than the budget of $4.59 million. Sewer user charges of $2.92 million were also less than the budget of $3.05 million. The sewer rates were increased 2.5% in January 2018. Water and Sewer charges were below budget due to lower usage demands in the current year. Refuse charge rates increased 2% in 2018 and revenue of $0.54 million was slightly above the budgeted amount. The daily parking fee was held flat which resulted in revenue of $0.29 million as expected. Expenses Water Fund operating expenses decreased $0.24 million from the prior year. Wholesale water purchases increased due to a rate increase from the supplier; however, the continued meter change outs and increased leak detection surveys significantly decreased water loss resulting in fewer units of water being purchased. The Village’s wholesale water supplier increased its rates on January 1st in combination with a series of annual increases to fund the reconstruction of their water treatment plant. Sewer Fund operating expenses decreased $0.34 million in comparison to the prior year. The decrease was due largely to year-end accounting adjustments related to Net Pension Liability. Refuse Fund operating expenses decreased slightly from the prior year due to personnel services and commodities. Parking Fund operating expenses increased in comparison to the prior year due to planned maintenance projects. Both funds were under their expense budget. FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS Governmental Funds At December 31, 2018, the governmental funds reported a combined fund balance of $36.08 million which is a 23.3% increase from the beginning of the year ($29.27 million). The increase is due largely to bond proceeds on hand that will be used to partially fund the 2019 capital improvement plan. The 2011 B sinking fund also contributed to the increase as expected. This fund will continue to increase until the Bonds are due on December 1, 2028. Major Governmental Funds The General Fund is the Village’s primary operating fund and the largest source of day-to-day service delivery. The General Fund cash balance of $16.7 million provides for approximately 275 days of anticipated annual expenditures. General Fund revenues exceeded the budget of $22.22 million by $1.42 million. Hotel/motel tax exceeded budget by approximately $0.26 million, building permit revenue exceeded budget by approximately $0.49 million and investment income exceeded budget by approximately $0.21 million. General Fund expenditures were $1.22 million less than the final budget. The budget was amended to accommodate larger than expected economic incentive payments. Retirements in multiple departments and the corresponding lag in employee replacement offset the increased economic incentive payments. 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 73. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Page 8 General Fund Budget versus Actual Fiscal year ended December 31, 2018 (in millions) Original Amended Budget Budget Actual Revenues Taxes 11.97 11.97 12.24 Intergovernmental 6.96 6.96 7.14 Other 3.29 3.29 4.26 Total 22.22 22.22 23.64 Expenditures & Transfers Expenditures 21.17 22.04 20.82 Transfers – Net 1.96 1.96 1.96 Total 23.13 24.00 22.78 Change in Fund Balance -0.91 -1.78 0.86 Major Proprietary Funds The major proprietary (or business-type) funds operated by the Village are the Water, Sewerage and Refuse Funds. The Water Fund operating revenues totaled $4.40 million for the year. Actual operating expenses, excluding depreciation totaled $3.83 million. Operating income of $0.60 million is a result of prior years’ emphasis on reducing water loss. Overall, net position increased $0.46 million, which included depreciation of $0.51 million and contributions of capital assets of $0.40 million. The Sewerage Fund operating expenses were under budget by $0.40 million due primarily to year-end accounting adjustments related to Net Pension Liability (NPL). The operating revenues exceeded operating expenses excluding depreciation by $0.24 million. Capital expenses for the foreseeable future in this fund have been transferred to the Infrastructure Fund. The Refuse Fund operating expenses exceeded operating revenues by $0.88 million. This Village also transfers a portion of its property tax levy to the refuse collection. Property tax transferred to the Refuse Fund totaled $0.96 million and the Refuse Fund’s net position increased $0.08 million during the year to $0.61 million. Internal Service Funds The Village’s combined internal service funds’ net position were $7.48 million as of December 31, 2018, with $5.8 million of the total available for major equipment purchases in the Vehicle and Equipment Replacement Fund. Total Garage Fund revenues slightly exceeded total expenditures resulting in a small increase in net position. Capital assets Effective May 1, 2004, the Village revised its policy of capitalizing assets to raise the minimum to $25,000 (actual) or more in value. The Village’s investment in capital assets, net of accumulated depreciation, for governmental activities as of December 31, 2018 was $77.20 million. The Village’s investment in capital assets, net of accumulated depreciation, for business-type activities as of December 31, 2018 was $60.56 million. Major capital asset additions during the current year included infrastructure improvements, streets and vehicles/equipment. Additional information on capital assets is presented in Note III C to the financial statements. Long-term debt $5.97 million of new debt was issued during the year. The new debt is being used to partially fund capital projects in 2018 and 2019. The Village retired $2.285 million of general obligation debt. At the end of the year, the Village had total bonded debt outstanding of $62.845 million. As a home rule government, under Illinois law, the Village has no legal debt limit. As of December 31, 2018 the total Village debt represented 4.28% of the 2017 equalized assessed value. Additional information on long-term debt is presented in Note III E to the financial statements. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Page 9 Bond Rating The Village’s general obligation bonds are rated Aaa by Moody’s Investor Rating Service. The Aaa rating was reaffirmed with the issuance of the General Obligation Bond Series of 2018. Pension Funds The Village continues to fully fund its annual required contributions to both the Police Pension Fund and Illinois Municipal Retirement Fund. Increased salaries, an aging employee base, and end of career accumulated leave pay- outs have resulted in large contributions to both funds which cover all full-time employees. Additional information on the funding levels can be found in the Required Supplementary Information section. Economic Factors The national economic slowdown continues to affect the local Village micro-economy. However, slowdowns in local retail sales and hotel/motel occupancies have rebounded from the previous year. The Village is an affluent residential community with a substantial office/commercial presence including a number of headquarters operations in the health services and pharmaceutical areas. Property taxes are a minor part of the overall operating revenues. Net of a refuse fund transfer, property taxes total approximately 11% of General Fund revenue. One of the major retail areas in the Village attracted major tenants during the year. The Village is committed to working with developers and land owners to help them fill vacant retail space. Building permit revenues have again exceeded current period expectations. The Village’s hotel/motel tax has reached a high of $2.16 million and exceeded current year budget by $0.26 million due to more business travel. All of the Village’s six hotels have remained open during the year. The continued strength of the local corporate employment provides a base level of demand for rooms which is the primary market for these hotels. Contacting the Village’s Financial Management This financial report is designed to provide a general overview of the Village’s finances, comply with finance-related laws and regulations and demonstrate the Village’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the Village’s Finance Director, 850 Waukegan Road, Deerfield, IL 60015 or access the Village website at www.deerfield.il.us. VILLAGE OF DEERFIELD STATEMENT OF NET POSITION As of December 31, 2018 Governmental Activities Business-Type Activities Totals ASSETS Cash and investments $ 41,249,667 $ 1,521,992 $ 42,771,659 Receivables (net) Property taxes 7,257,357 - 7,257,357 Accounts 730,193 1,339,461 2,069,654 Accrued interest 79,786 1,391 81,177 Electric utility tax 108,970 - 108,970 Due from other governmental units 12,448,715 - 12,448,715 Note receivable 30,000 - 30,000 Internal balances (1,390,191)1,390,191 - Prepaid items 1,195,559 114,211 1,309,770 Inventory 108,538 147,183 255,721 Capital Assets Capital Assets not being depreciated 21,820,225 2,087,984 23,908,209 Capital assets, being depreciated 117,322,316 73,305,948 190,628,264 Less: Accumulated depreciation (61,937,893)(14,830,803)(76,768,696) Total Assets 139,023,242 65,077,558 204,100,800 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 858,069 280,920 1,138,989 Pension items - Police Pension 12,020,434 -12,020,434 Total Deferred Outflows of Resources 12,878,503 280,920 13,159,423 LIABILITIES Accounts payable 1,542,542 265,023 1,807,565 Accrued payroll 381,150 71,121 452,271 Contracts payable 4,380,227 - 4,380,227 Deposits payable - 43,775 43,775 Other payables 23,372 - 23,372 Accrued interest payable 188,909 81,527 270,436 Noncurrent Liabilities Due within one year 2,794,640 1,005,148 3,799,788 Due in more than one year 58,990,773 27,748,188 86,738,961 Total Liabilities 68,301,613 29,214,782 97,516,395 DEFERRED INFLOWS OF RESOURCES Property taxes levied for a future period 7,257,357 - 7,257,357 Pension items - IMRF 2,334,029 439,448 2,773,477 Pension items - Police Pension 8,146,849 - 8,146,849 Other Postemployment Benefits 227,782 39,271 267,053 Total Deferred Inflows of Resources 17,966,017 478,719 18,444,736 NET POSITION Net investment in capital assets 49,784,690 32,548,303 82,332,993 Restricted for Maintenance of roadways 832,299 - 832,299 Public safety 1,364,908 - 1,364,908 Debt service 5,258,744 - 5,258,744 Unrestricted 8,393,474 3,116,674 11,510,148 TOTAL NET POSITION $ 65,634,115 $ 35,664,977 $ 101,299,092 See accompanying notes to financial statements. Page 10 VILLAGE OF DEERFIELD STATEMENT OF ACTIVITIES For the Year Ended December 31, 2018 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities General government $ 9,106,754 $ 2,808,343 $ - $ - Public safety 10,796,954 1,465,852 - - Public works 9,194,654 575,536 480,661 77,526 Interest and fiscal charges 1,095,898 686,907 -- Total Governmental Activities 30,194,260 5,536,638 480,661 77,526 Business-type Activities Water 4,339,113 4,241,528 - 404,341 Sewerage 4,648,489 2,917,006 - 393,015 Refuse 1,435,418 538,185 - - Commuter parking lot 348,009 294,221 -- Total Business-type Activities 10,771,029 7,990,940 -797,356 Total $ 40,965,289 $ 13,527,578 $ 480,661 $ 874,882 General Revenues Taxes Property Replacement Home rule sales Local use Hotel/motel Simplified telecommunications Electric utility tax Food and beverage Intergovernmental Investment income Gain on disposal of assets Miscellaneous Total General Revenues Transfers Change in net position NET POSITION - Beginning of Year (as restated) NET POSITION - END OF YEAR See accompanying notes to financial statements. Page 11 Net (Expenses) Revenues and Changes in Net Position Governmental Activities Business-type Activities Totals $(6,298,411)$-$(6,298,411) (9,331,102)-(9,331,102) (8,060,931)-(8,060,931) (408,991)-(408,991) (24,099,435)-(24,099,435) - 306,756 306,756 -(1,338,468)(1,338,468) -(897,233)(897,233) -(53,788)(53,788) -(1,982,733)(1,982,733) (24,099,435)(1,982,733)(26,082,168) 7,222,720 - 7,222,720 126,752 - 126,752 3,252,733 - 3,252,733 551,672 - 551,672 2,159,203 - 2,159,203 1,368,145 - 1,368,145 1,251,639 - 1,251,639 607,914 - 607,914 8,152,479 - 8,152,479 759,659 23,967 783,626 (25,284)-(25,284) 135,138 213,257 348,395 25,562,770 237,224 25,799,994 (2,778,413)2,778,413 - (1,315,078)1,032,904 (282,174) 66,949,193 34,632,073 101,581,266 $ 65,634,115 $ 35,664,977 $ 101,299,092 See accompanying notes to financial statements. Page 12 VILLAGE OF DEERFIELD BALANCE SHEET GOVERNMENTAL FUNDS As of December 31, 2018 General Debt Service Infrastructure Replacement Nonmajor Governmental Funds Totals ASSETS Cash and investments $ 16,716,706 $ 170,823 $ 8,377,364 $ 10,174,992 $ 35,439,885 Receivables Taxes 3,535,997 3,721,360 - - 7,257,357 Accounts 556,252 - 6,200 164,771 727,223 Accrued interest 20,677 1,301 7,705 44,078 73,761 Electric utility tax 108,970 - - - 108,970 Due from other governments 2,608,329 8,060,000 1,739,599 40,787 12,448,715 Note receivable 30,000 - - - 30,000 Advances to other funds 374,695 - - - 374,695 Prepaid items 1,188,498 - - - 1,188,498 Inventory 28,516 ---28,516 TOTAL ASSETS $ 25,168,640 $ 11,953,484 $ 10,130,868 $ 10,424,628 $ 57,677,620 See accompanying notes to financial statements. Page 13 VILLAGE OF DEERFIELD BALANCE SHEET GOVERNMENTAL FUNDS As of December 31, 2018 General Debt Service Infrastructure Replacement Nonmajor Governmental Funds Totals LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable $ 1,273,492 $ 825 $ 223,190 $ 1,812 $ 1,499,319 Accrued payroll 373,132 - - - 373,132 Contracts payable - - 4,380,227 - 4,380,227 Other payables 23,372 ---23,372 Total Liabilities 1,669,996 825 4,603,417 1,812 6,276,050 . Deferred Inflows of Resources Unavailable revenues - Library - 8,060,000 - - 8,060,000 Property taxes levied for a future period 3,535,997 3,721,360 --7,257,357 Total Deferred Inflows of Resources 3,535,997 11,781,360 --15,317,357 Fund Balances Nonspendable for note receivable 30,000 - - - 30,000 Nonspendable for inventory 28,516 - - - 28,516 Nonspendable for prepaid items 1,188,498 - - - 1,188,498 Nonspendable for advance 374,695 - - - 374,695 Restricted for maintenance of roadways - - - 832,299 832,299 Restricted for public safety - - - 1,364,908 1,364,908 Restricted for debt service - - - 5,258,744 5,258,744 Assigned to debt service - 171,299 - - 171,299 Assigned to capital projects - - 5,527,451 2,966,865 8,494,316 Assigned to subsequent year's budget 949,698 - - - 949,698 Unassigned 17,391,240 ---17,391,240 Total Fund Balances 19,962,647 171,299 5,527,451 10,422,816 36,084,213 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 25,168,640 $ 11,953,484 $ 10,130,868 $ 10,424,628 $ 57,677,620 See accompanying notes to financial statements. Page 14 VILLAGE OF DEERFIELD RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION As of December 31, 2018 Total Fund Balances - Governmental Funds $ 36,084,213 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. 77,204,648 Less capital assets used in internal service funds (1,652,122) Intergovernmental receivables from the Library is not unavailable revenue on the statement of net position. 8,060,000 Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds. 12,878,503 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds (10,480,878) Deferred inflows of resources related to OPEB do not relate to current financial resources and are not reported in the governmental funds (227,782) Some liabilities, including long-term debt, are not due and payable in the current period and therefore, are not reported in the funds. Bonds and notes payable (34,929,000) Compensated absences (1,463,802) Total other postemployment benefit liability (3,104,837) Net pension liability (21,501,607) Accrued interest (188,909) Unamortized debt discount 53,854 Unamortized debt premium (840,021) Less: Internal service fund long-term liabilities 23,946 Internal service funds are reported in the statement of net position as governmental activities. 5,717,909 NET POSITION OF GOVERNMENTAL ACTIVITIES $ 65,634,115 See accompanying notes to financial statements. Page 15 VILLAGE OF DEERFIELD STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2018 General Debt Service Infrastructure Replacement Nonmajor Governmental Funds Totals REVENUES Taxes $ 12,240,134 $ 2,967,730 $ 1,692,158 $ 725,000 $ 17,625,022 Licenses and permits 1,877,242 - - - 1,877,242 Intergovernmental 7,137,366 489,326 11,905 480,661 8,119,258 Charges for services 828,967 - - 658,996 1,487,963 Fines and forfeits 277,967 - - - 277,967 Contributions - 727,581 - - 727,581 Investment income 354,373 23,437 121,172 160,689 659,671 Miscellaneous 923,480 -414,707 -1,338,187 Total Revenues 23,639,529 4,208,074 2,239,942 2,025,346 32,112,891 EXPENDITURES Current General government 8,826,254 - - 735 8,826,989 Public safety 9,211,164 - - 247,517 9,458,681 Highway and streets 2,782,979 - - - 2,782,979 Capital Outlay - - 4,920,762 138,014 5,058,776 Debt Service Principal retirement - 1,460,000 - - 1,460,000 Interest and other -931,609 -87,450 1,019,059 Total Expenditures 20,820,397 2,391,609 4,920,762 473,716 28,606,484 Excess (deficiency) of revenues over expenditures 2,819,132 1,816,465 (2,680,820)1,551,630 3,506,407 OTHER FINANCING SOURCES (USES) Transfers in - - 4,087,145 - 4,087,145 Transfers out (1,955,984)(1,822,429)-(3,087,145)(6,865,558) Issuance of general obligation bonds - - - 5,970,000 5,970,000 Premium on debt issued ---120,990 120,990 Total Other Financing Sources (Uses)(1,955,984)(1,822,429)4,087,145 3,003,845 3,312,577 Net Change in Fund Balances 863,148 (5,964)1,406,325 4,555,475 6,818,984 FUND BALANCES - Beginning of Year 19,099,499 177,263 4,121,126 5,867,341 29,265,229 FUND BALANCES - END OF YEAR $ 19,962,647 $ 171,299 $ 5,527,451 $ 10,422,816 $ 36,084,213 See accompanying notes to financial statements. Page 16 VILLAGE OF DEERFIELD RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2018 Net change in fund balances - total governmental funds $ 6,818,984 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is capitalized and they are depreciated over their estimated useful lives and reported as depreciation expense in the statement of activities. Capital outlay is reported as an expenditure in the fund financial statements but is capitalized in the government-wide financial statements 1,696,194 Less internal service funds 235,808 Depreciation is reported in the government-wide financial statements (2,715,904) Net book value of assets retired (293,220) Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements.(530,000) Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Debt issued (5,970,000) Principal repaid 1,460,000 Governmental funds report debt premiums and discounts as other financing sources (uses) or expenditures. However, in the statement of net position, these are reported as additions to or deductions from long-term debt. These are allocated over the period the debt is outstanding in the statement of activities and are reported as interest expense. Debt premium (120,990) Amortization 34,739 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences 41,146 Total other postemployment benefits liability 336,873 Accrued interest on debt (111,578) Net pension liability - IMRF 2,922,506 Net pension liability - police pension (10,816,103) Deferred outflows of resources related to pensions 2,347,710 Deferred inflows of resources related to pensions 3,292,256 Deferred inflows of resources related to total OPEB liability (227,782) Internal service funds portion of compensated absences 2,720 Internal service funds are used by management to charge self insurance costs to individual funds. The change in net position of the internal service fund reported with governmental activities.281,563 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ (1,315,078) See accompanying notes to financial statements. Page 17 VILLAGE OF DEERFIELD STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2018 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals ASSETS Current Assets Cash and investments $ - $ 631,347 $ 615,516 $ 275,129 $ 1,521,992 Receivables Accounts - billed 189,216 183,693 18,562 - 391,471 Accounts - unbilled 506,739 353,659 87,592 - 947,990 Accrued interest - 602 473 316 1,391 Prepaid items 47,588 61,404 2,763 2,456 114,211 Inventory 110,602 36,581 --147,183 Total Current Assets 854,145 1,267,286 724,906 277,901 3,124,238 Noncurrent Assets Capital Assets Capital assets not being depreciated 2,010,484 - - 77,500 2,087,984 Capital assets being depreciated 23,835,539 47,519,579 - 1,950,830 73,305,948 Less: Accumulated depreciation (5,984,025)(7,867,410)-(979,368)(14,830,803) Total Noncurrent Assets 19,861,998 39,652,169 -1,048,962 60,563,129 Total Assets 20,716,143 40,919,455 724,906 1,326,863 63,687,367 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 95,362 185,558 --280,920 Total Deferred Outflows of Resources 95,362 185,558 --280,920 See accompanying notes to financial statements. Page 18 Governmental Activities - Internal Service Funds $ 5,809,782 2,970 - 6,025 7,061 80,022 5,905,860 - 4,795,238 (3,143,116) 1,652,122 7,557,982 - - See accompanying notes to financial statements. Page 19 VILLAGE OF DEERFIELD STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2018 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals LIABILITIES Current Liabilities Accounts payable $ 69,045 $ 75,052 $ 112,467 $ 8,459 $ 265,023 Accrued payroll 20,740 49,295 - 1,086 71,121 Accrued interest - 81,527 - - 81,527 Deposits payable 23,349 20,426 - - 43,775 Notes payable - 851,000 - - 851,000 Compensated absences payable 51,868 100,950 -1,330 154,148 Total Current Liabilities 165,002 1,178,250 112,467 10,875 1,466,594 Noncurrent Liabilities Long-Term Debt Advance from other funds 374,695 - - - 374,695 Compensated absences payable 3,958 7,703 - 101 11,762 Net pension liability 94,384 183,657 - - 278,041 Other postemployment benefit payable 180,305 114,254 - - 294,559 Bonds payable -27,163,826 --27,163,826 Total Noncurrent Liabilities 653,342 27,469,440 -101 28,122,883 Total Liabilities 818,344 28,647,690 112,467 10,976 29,589,477 DEFERRED INFLOWS OF RESOURCES Pension items - IMRF 149,176 290,272 - - 439,448 OPEB 9,146 30,125 --39,271 Total Deferred Inflows of Resources 158,322 320,397 --478,719 NET POSITION Net investment in capital assets 19,861,998 11,637,343 - 1,048,962 32,548,303 Unrestricted (27,159)499,583 612,439 266,925 1,351,788 TOTAL NET POSITION $ 19,834,839 $ 12,136,926 $ 612,439 $ 1,315,887 33,900,091 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds.1,764,886 Net Position Business-type Activities $ 35,664,977 Net internal service funds reported in the statement of net position as governmental activities See accompanying notes to financial statements. Page 20 Governmental Activities - Internal Service Funds $ 43,223 8,018 - - - 20,850 72,091 - 3,096 - - - 3,096 75,187 - - - 1,652,122 5,830,673 7,482,795 (1,764,886) $ 5,717,909 See accompanying notes to financial statements. Page 21 VILLAGE OF DEERFIELD STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2018 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals OPERATING REVENUES Charges for services $ 4,241,528 $ 2,917,006 $ 538,185 $ 294,221 $ 7,990,940 Miscellaneous 158,241 41,465 13,551 -213,257 Total Operating Revenues 4,399,769 2,958,471 551,736 294,221 8,204,197 OPERATING EXPENSES Administration 540,938 331,286 - - 872,224 Operations 3,288,921 2,384,764 1,440,241 321,272 7,435,198 Capital outlay ----- Depreciation 509,488 1,013,199 -26,737 1,549,424 Total Operating Expenses 4,339,347 3,729,249 1,440,241 348,009 9,856,846 Operating Income (Loss)60,422 (770,778)(888,505)(53,788)(1,652,649) NONOPERATING REVENUES (EXPENSES) Loss on sale of capital assets ----- Investment income - 9,836 8,789 5,342 23,967 Interest and other -(985,572)--(985,572) Total Nonoperating Revenues (Expenses)-(975,736)8,789 5,342 (961,605) Income (Loss) Before Contributions and Transfers 60,422 (1,746,514)(879,716)(48,446)(2,614,254) CONTRIBUTIONS AND TRANSFERS Contributions 404,341 393,015 - - 797,356 Transfers in -1,822,429 955,984 -2,778,413 Total Contributions and Transfers 404,341 2,215,444 955,984 -3,575,769 Change in Net Position 464,763 468,930 76,268 (48,446)961,515 NET POSITION - Beginning of Year (as restated)19,370,076 11,667,996 536,171 1,364,333 32,938,576 NET POSITION- END OF YEAR $ 19,834,839 $ 12,136,926 $ 612,439 $ 1,315,887 33,900,091 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 71,389 Change in Net Position of Business-type Activities $ 1,032,904 See accompanying notes to financial statements. Page 22 Governmental Activities - Internal Service Funds $ 1,189,914 9,654 1,199,568 - 400,596 194,294 326,430 921,320 278,248 (25,284) 99,988 - 74,704 352,952 - - - 352,952 7,129,843 $ 7,482,795 See accompanying notes to financial statements. Page 23 VILLAGE OF DEERFIELD STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2018 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals CASH FLOWS FROM OPERATING ACTIVITIES Received from customers $ 4,288,073 $ 2,909,963 $ 540,673 $ 294,193 $ 8,032,902 Received from interfund services ----- Received from miscellaneous revenues 158,241 41,465 13,551 - 213,257 Payments to suppliers (3,126,034)(1,211,102)(1,365,889)(276,687)(5,979,712) Payments to employees (1,010,892)(1,815,078)(65,771)(40,235)(2,931,976) Net Cash Flows From Operating Activities 309,388 (74,752)(877,436)(22,729)(665,529) CASH FLOWS FROM INVESTING ACTIVITIES Investment income -9,788 8,789 5,344 23,921 Net Cash Flows From Investing Activities -9,788 8,789 5,344 23,921 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund loan (309,388)---(309,388) Interfund transfer -1,822,429 955,984 -2,778,413 Net Cash Flows From Noncapital Financing Activities (309,388)1,822,429 955,984 -2,469,025 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased ----- Bond principal payments -(825,000)--(825,000) Bond interest payments -(997,879)--(997,879) Net Cash Flows From Capital and Related Financing Activities -(1,822,879)--(1,822,879) Net Change in Cash and Cash Equivalents -(65,414)87,337 (17,385)4,538 CASH AND CASH EQUIVALENTS - Beginning of Year -696,761 528,179 292,514 1,517,454 CASH AND CASH EQUIVALENTS - END OF YEAR $-$ 631,347 $ 615,516 $ 275,129 $ 1,521,992 See accompanying notes to financial statements. Page 24 Governmental Activities - Internal Service Funds $- 1,191,353 9,654 (358,367) (251,347) 591,293 99,988 99,988 - - - (115,906) - - (115,906) 575,375 5,234,407 $ 5,809,782 See accompanying notes to financial statements. Page 25 VILLAGE OF DEERFIELD STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2018 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)$ 60,422 $(770,778)$(888,505)$(53,788)$(1,652,649) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows From Operating Activities Depreciation 509,488 1,013,199 - 26,737 1,549,424 Changes in assets and liabilities Receivables 46,546 (7,043)2,488 (28)41,963 Prepaid expenses (299)(386)(17)(15)(717) Inventories 6,822 1,379 - - 8,201 Accounts payable (105,292)(5,459)8,598 3,756 (98,397) Deposits payable 1,434 1,044 - - 2,478 Accrued payroll (5,325)(4,909)- 135 (10,099) Other postemployment benefit payable (9,925)(13,760)--(23,685) Compensated absences payable (72,900)(36,851)- 474 (109,277) Pension items (121,583)(251,188)--(372,771) NET CASH FLOWS FROM OPERATING ACTIVITIES $ 309,388 $ (74,752)$ (877,436)$ (22,729)$ (665,529) NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Contributions of capital assets by other funds $ 404,341 $ 393,015 $-$- See accompanying notes to financial statements. Page 26 Governmental Activities - Internal Service Funds $ 278,248 326,430 1,439 (44) (2,119) (15,210) - (171) - 2,720 - $ 591,293 $- See accompanying notes to financial statements. Page 27 VILLAGE OF DEERFIELD STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS As of December 31, 2018 Pension Trust Agency Funds ASSETS Cash and investments $ 1,785,341 $ 3,174,503 Investments U.S. Treasury obligations 9,674,241 - Corporate bonds 6,180,987 - Mutual funds 27,214,415 - Municipal bonds 44,981 - Receivables - (net) Accrued interest 94,368 200 Total Assets 44,994,333 3,174,703 LIABILITIES Accounts payable $ 15,417 $ 9,971 Deposits payable - 2,963,117 Other payables -201,615 Total Liabilities 15,417 3,174,703 NET POSITION Restricted for retirement benefits $ 44,978,916 See accompanying notes to financial statements. Page 28 VILLAGE OF DEERFIELD STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Year Ended December 31, 2018 Pension Trust ADDITIONS Contributions Contributions - employer $ 1,100,000 Contributions - employee 418,230 Total Contributions 1,518,230 Investment income Net appreciation in fair value of investments (2,659,485) Interest and dividends earned on investments 1,064,420 Total Investment Income (1,595,065) Less Investment expense 17,980 Net Investment Income (1,613,045) Total Additions (94,815) DEDUCTIONS Pension payments 2,805,095 Administrative 39,371 Total Deductions 2,844,466 Change in Net Position (2,939,281) NET POSITION - Beginning of Year 47,918,197 NET POSITION - END OF YEAR $ 44,978,916 See accompanying notes to financial statements. Page 29 VILLAGE OF DEERFIELD INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE Page I Summary of Significant Accounting Policies 31 A. Reporting Entity 31 B. Government-Wide and Fund Financial Statements 31 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 34 D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity 36 1. Deposits and Investments 36 2. Receivables 39 3. Inventories and Prepaid Items 40 4. Capital Assets 40 5. Deferred Outflows of Resources 41 6. Compensated Absences 41 7. Long-Term Obligations 42 8. Deferred Inflows of Resources 42 9. Equity Classifications 43 10. Interfund Transactions 44 II Stewardship, Compliance, and Accountability 45 A. Excess Expenditures Over Appropriations 45 III Detailed Notes on All Funds 45 A. Deposits and Investments 45 B. Receivables 50 C. Capital Assets 50 D. Interfund Advances and Transfers 52 E. Long-Term Obligations 53 F. Restatement of Net Position 55 IV Other Information 56 A. Employees' Retirement System 56 B. Risk Management 66 C. Commitments and Contingencies 67 D. Joint Ventures 68 E. Other Postemployment Benefits 68 F. Tax Abatement 72 G. Effect of New Accounting Standards on Current-Period Financial Statements 72 Page 30 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Deerfield, Illinois (the Village) was incorporated in 1903. The Village is a home-rule municipality, under the 1970 Illinois Constitution, located in Lake County, Illinois. The Village is governed by an elected seven-member board. The accounting policies of the Village of Deerfield, Illinois conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard- setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). A.REPORTING ENTITY This report includes all of the funds of the Village. The reporting entity for the Village consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The Village has not identified any organizations that meet this criteria. The Police Pension Employees Retirement System (PPERS) is established for the Village's police employees. PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village’s President, one pension beneficiary elected by the membership, and two police employees elected by the membership 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 characteristics of a legally separate government, PPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village’s police employees and because of the fiduciary nature of such activities. PPERS is reported as a pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements. No separate annual financial report is issued for the PPERS. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS In June 2015, the GASB issued statement No. 75 - Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple- Employer Plans, for OPEB. This standard was implemented January 1, 2018. Page 31 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The effect of material interfund activity (except for activities reported in internal service funds) has been eliminated from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The Village does not allocate indirect expenses to functions in the statement of activities. 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 contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the Village are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues, and expenditures/expenses. Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the Village or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental or enterprise fund that met the 10% test is at least 5% of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the Village believes is particularly important to financial statement users may be reported as a major fund. 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. Page 32 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) The Village reports the following major governmental funds: General Fund - accounts for the Village's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Debt Service Fund - used to account and report the assigned resources for the payment of general long-term debt. Infrastructure Replacement Fund - used to account for and report financial resources that are assigned to expenditures for maintaining, repairing and renovating the capital assets of the Village. The Village reports the following major enterprise funds: Water Fund - accounts for operations of the all activity necessary to provide water to the residents of the village including administration, operation, maintenance, financing and related debt service. Sewerage Fund - accounts for operations of the all activities necessary to provide sewer service to the residents of the village including administration, construction, maintenance and operations of the sewerage treatment plant and related debt service. Refuse Fund - accounts for all revenues and expenses necessary to provide the residents of the Village with refuse service. The Village reports the following nonmajor governmental and enterprise funds: Special Revenue Funds - used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Motor Fuel Tax Fund Enhanced E911 Fund Debt Service Funds - used to account for and report financial resources that are restricted, committed, or assigned to expenditure for the payment of general long-term debt principal, interest, and related costs. 2011B Debt Service Sinking Fund Bond Proceeds Fund Enterprise Fund - used to account for and report any activity for which a fee is charged to external uses for goods or services, and must be used for activities which meet certain debt or cost recovery criteria. Commuter Parking Lot Fund Page 33 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) In addition, the Village reports the following fund types: Internal Service Funds - used to account for and report the financing of goods or services provided by one department or agency to other departments or agencies of the Village, or to other governmental units, on a cost-reimbursement basis. The Garage Fund accounts for all activity necessary to maintain the efficient and safe operation of the Village's vehicles and equipment and is funded by various departments according to services rendered. The Vehicle and Equipment Replacement Fund accounts for purchases of vehicles and equipment and is funded by various departments according to services rendered. Pension (and Other Employee Benefit) Trust Fund - used to account for and report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other employee benefit plans. Police Pension Trust Fund Agency Funds - used to account for and report assets held by the Village in a trustee capacity or as an agent for individuals, private organizations, and/or other governmental units. Deposit Fund East Shore Radio Network Fund C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Page 34 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.) Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Sales taxes, telecommunications taxes and use taxes use a 90-day period and income taxes use a 120-day period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognized as revenues in the succeeding year when services financed by the levy are being provided. Intergovernmental aids and grants are recognized as revenues in the period the Village is entitled the resources and the amounts are available. Amounts owed to the Village which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and fiduciary fund financial statements (other than agency funds) are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. Agency funds follow the accrual basis of accounting, and do not have a measurement focus. The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water, sewerage, refuse and commuter parking lot funds are charges to customers for sales and services. Special assessments are recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Page 35 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.) All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY 1. Deposits and Investments For purposes of the statement of cash flows, the Village considers all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. Illinois Statutes authorize the Village to make deposits/investments 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 agreement 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 the Illinois Funds Investment Pool. Pension funds may 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 the Illinois insurance company general and separate accounts, mutual funds meeting certain requirements, equity securities, and corporate bonds meeting certain requirements. Pension funds with net assets in excess of $10,000,000 and an appointed investment advisor may invest an additional portion of its assets in common and preferred stocks and mutual funds, that meet certain requirements. The police pension fund’s investment policy allows investments in all of the above listed accounts, but does exclude any repurchase agreements. The firefighters pension fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. Page 36 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1. Deposits and Investments (cont.) The Police Pension Fund's investment policy allows investments in all of the above listed accounts, but does exclude any repurchase agreements. The police pension fund’s investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Corporate Bonds 34%1.70% Equity 60% 6.10% U.S. Government 5% 1.00% Cash Equivalents 1% -% Illinois Compiled Statues (ILCS) limit the police pension fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio. The long-term expected rate of return on the police pension fund's investments was determined using an asset allocation study conducted by the police pension fund's investment management consultant in in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the police pension fund's target asset allocation are listed in the table above. Additional restrictions may arise from local charters, ordinances, resolutions and grant resolutions. The Village has adopted an investment policy. The policies follow the state statute for allowable investments. It is the policy of the Village to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Village and conforming to all state and local statutes governing the investment of public funds, using the “prudent person” standard for managing the overall portfolio. The primary objective of the policy of the Village is safety (preservation of capital and protection of investment principal), liquidity and yield. The Police Pension Fund's investment policy does not specifically prohibit the use of or the investment in derivatives. Page 37 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1. Deposits and Investments (cont.) Interest Rate Risk In accordance with its investment policy, the Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds an maximizing yields for funds not needed within a five-year period. The Village investment policy limits maturities to five years unless tied to a specific cash flow. Investments may be purchased with maturities to match future projects or liability requirements. In addition, the policy requires the Village to structure the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. In accordance with its investment policy, the Police Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity to meet required pension payments. The investment policy does not limit the maximum maturity length of investments in the fund. Credit Risk State Statutes limit the investments in commercial paper to the top three ratings of two nationally recognized statistical rating organizations (NRSRO’s). The Village's investment policy authorizes investments in any type of security allowed for in Illinois statutes regarding the investment of public funds. The Police Pension Fund limits its exposure to credit risk by investing exclusively investment grade bonds, or obligations guaranteed by the United States Government or securities issued by agencies of the United States Government that are explicitly or implicitly guaranteed by the United States Governments. Concentration of Credit Risk The Village's investment policies require diversification of the investment portfolio to minimize risk of loss resulting from over-concentration in a particular type of security, risk factor, issuer, or maturity, but does not specify maximum amounts that can be invested in any one investment vehicle, maturity, issuer or class of securities. The Police Pension Fund’s investment policy limits the amount of the portfolio that can be invested in any one investment vehicle. With the exception of U.S. Treasury securities and authorized pools, no more than 65% of the Police Pension Fund’s total investment portfolio can be invested in a single security type or with a single financial institution. Custodial Credit Risk - Deposits The Village’s and Police Pension’s investment policy limits the exposure to deposit custodial credit risk by requiring all deposits in excess of FDIC insurable limits to be secured with collateralization pledged by the applicable financial institution to the extent of 100% of the value of the deposit. The firefighters’ pension’s investment policy limits exposure to deposit custodial credit risk by requiring deposits in excess of FDIC insurable limits to be collateralized. Page 38 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1. Deposits and Investments (cont.) Custodial Credit Risk - Investments The Village's and Police Pension Fund’s investment policies require all securities to be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipts. The Village's investment policy limits the exposure to deposit custodial credit risk by requiring all deposits in excess of FDIC insurable limits to be secured with collateralization pledged by the applicable financial institution to the extent of 100% of the value of the deposit in excess of federal depository insurance with the collateral held by the Village's agent in the Village's name. The Village’s investment policy also requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third party acting as the Village’s agent separate from where the investment was purchased or by the trust department of the bank where purchased, in the Village’s name. The Police Pension Fund’s investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a DVP basis with the underlying investments held by a third party acting as the Police Pension Fund’s agent separate from where the investment was purchased in the Police Pension Fund’s name. Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. No investments are reported at amortized cost. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on average balances. The difference between the bank statement balance and carrying value is due to outstanding checks and/or deposits in transit. 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 2a-7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price, the price for which the investments could be sold. See Note III. A. for further information. 2. Receivables Property taxes for levy year 2018 attaches as an enforceable lien on January 1, 2018, on property values assessed as of the same date. Taxes are levied by December following the lien date (by passage of a Tax Levy Ordinance). Tax bills for levy year 2018 are prepared by the County and issued on or about February 1 for Cook County, and May 1 for Lake County, and are payable in two installments, on or about March 1 and August 1 for Cook County and June 1 and September 1 for Lake County. Page 39 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 2. Receivables (cont.) The 2018 property tax levy is recognized as a receivable and deferred inflows in fiscal 2018, net the allowance for uncollectible. As the taxes become available to finance current expenditures, they are recognized as revenues. At December 31, 2018, the property taxes receivable and related deferred inflows consisted of the estimated amount collectible from the 2018 levy. During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long- term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances. In the governmental fund financial statements, advances to other funds are offset equally by a nonspendable fund balance account which indicates that they do not constitute expendable available financial resources and, therefore, are not available for appropriation or by a restricted fund balance account, if the funds will ultimately be restricted when the advance is repaid. 3. Inventories and Prepaid Items Governmental fund inventories, if material, are recorded at cost based on the FIFO method using the purchases method of accounting. Proprietary fund inventories are generally used for construction and/or for operation and maintenance work. They are not for resale. They are valued at cost based on FIFO, and charged to construction and/or operation and maintenance expense when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are accounted for on the consumption method. 4. Capital Assets Government-Wide Statements Capital assets, which include property, plant and equipment, are reported in the government-wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $25,000 and an estimated useful life in excess of one year. All capital assets are valued at historical cost, or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated acquisition 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. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. Page 40 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 4. Capital Assets (cont.) Government-Wide Statements (cont.) Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net position. Depreciation is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Buildings and building improvements 20-50 Years Parking improvements 15-50 Years Water/sewer system 40-60 Years Vehicles, machinery and equipment 4-20 Years Infrastructure 20-50 Years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. 5. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position/fund balance that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. 6. Compensated Absences Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only benefits considered to be vested are disclosed in these statements. All vested vacation and sick leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, and are payable with expendable resources. Payments for vacation and sick leave will be made at rates in effect when the benefits are used. Accumulated vacation and sick leave liabilities at December 31, 2018, are determined on the basis of current salary rates and include salary related payments. Page 41 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 7. Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes and bonds payable and accrued compensated absences. Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. For the government-wide statements and proprietary fund statements, bond premiums and discounts are amortized over the life of the issue using the effective interest method. The balance at year end is shown as an increase or decrease in the liability section of the statement of net position. In the governmental fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from actual debt proceeds received, are reported as expenditures. 8. Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position/fund balance that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. Page 42 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position - Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. c. Unrestricted net position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the Village's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (ordinance) of the Village Board. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the Village Board that originally created the commitment. Page 43 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Equity Classifications (cont.) Fund Statements (cont.) d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Village Board has, by ordinance, adopted a fund balance policy authorizing the Director of Finance to assign amounts for a specific purpose. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. The Village considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the Village would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. Fiduciary fund equity is classified as held in trust for on the statement of fiduciary net position. Various donor restrictions apply, including authorizing and spending trust income, and the village believes it is in compliance with all significant restrictions. 10. Interfund Transactions Interfund services are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except interfund services and reimbursements, are reported as transfers. Page 44 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A.EXCESS EXPENDITURES OVER APPROPRIATIONS Funds Budgeted Expenditures Actual Expenditures Excess Expenditures Over Budget Commuter Parking Lot $ 341,850 $ 348,009 $ 6,159 Bond Proceeds - 87,450 87,450 The Village controls expenditures at the department level. Some individual departments experienced expenditures which exceeded appropriations. The detail of those items can be found in the Village's year- end budget to actual report. The Commuter Parking Lot and Bond Proceeds expenditures are over budget due to the timing of certain expenditures, such as interest payments, depreciation and pension expense. NOTE III - DETAILED NOTES ON ALL FUNDS A.DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds, except the Pension Trust Fund, 2011B Sinking Fund and the Bond Proceeds Fund. Each fund type’s portion of this pool is displayed on the statement of net position and 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. Page 45 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) The Village's and the Police Pension's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Deposits $ 12,125,607 $ 12,417,344 Custodial credit risk - deposits Mutual funds 27,214,415 27,214,415 N/A U.S. Treasury obligations 9,674,241 9,674,241 Custodial credit risk - investments, interest rate risk Certificates of deposit (negotiable)4,737,265 4,737,265 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Corporate bonds 6,180,987 6,180,987 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Municipal bonds 44,981 44,981 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Illinois Funds 17,630,828 17,626,299 Credit risk U.S. Agency obligations 13,235,403 13,235,403 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Petty cash 2,400 -N/A Total Deposits and Investments $ 90,846,127 $ 91,130,935 Reconciliation to financial statements Per statement of net position Cash and investments $ 42,771,659 Per statement of net position - fiduciary funds Cash and investments 4,959,844 U.S. Treasury obligations 9,674,241 Corporate bonds 6,180,987 Mutual funds 27,214,415 Municipal bonds 44,981 Total Deposits and Investments $ 90,846,127 Page 46 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. The Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. As of December 31, 2018, the Village utilized the market valuation method for all recurring fair value measurements and investments were measured using the valuation inputs as follows: Village December 31, 2018 Investment Type Level 1 Level 2 Level 3 Total U.S. Agency obligations $-$ 13,235,403 $-$ 13,235,403 Certificates of deposit (negotiable)4,737,265 --4,737,265 Total $ 4,737,265 $ 13,235,403 $-$ 17,972,668 Police Pension December 31, 2018 Investment Type Level 1 Level 2 Level 3 Total U.S. Treasury obligations $ 9,672,006 $ 2,235 $ - $ 9,674,241 Corporate bonds - 6,180,987 - 6,180,987 Mutual funds 27,214,415 - - 27,214,415 Municipal bonds -44,981 -44,981 Total $ 36,886,421 $ 6,228,203 $-$ 43,114,624 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Village's deposits may not be returned to the Village. The Village does not have any deposits exposed to custodial credit risk. Page 47 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Custodial Credit Risk (cont.) Investments For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Village does not have any investments exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. As of December 31, 2018, the Village's investments were rated as follows: Investment Type Standard & Poors Moody's Investors Services Certificates of deposit (negotiable)Not rated Not rated Corporate bonds BBB to AA+ Baa3 to AAA Municipal bonds AAA N/A Illinois Funds AAAm N/A U.S. Agency obligations AA+AAA Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At December 31, 2018, there were no investments exposed to concentration of credit risk. Page 48 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2018, the Village's investments were as follows: Village Maturity Investment Type Fair Value Less than 1 Year 1-5 Years 6-10 Years Greater than 10 Years Certificates of deposit (negotiable)$ 4,737,265 $ 3,050,315 $ 1,686,950 $ - $ - U.S. Agency obligations 13,235,403 3,114,320 4,920,102 5,200,981 - Totals $ 17,972,668 $ 6,164,635 $ 6,607,052 $ 5,200,981 $- Police Pension Maturity Investment Type Fair Value Less than 1 Year 1-5 Years 6-10 Years Greater than 10 Years U.S. treasury obligations $ 9,674,241 $ 997,640 $ 7,452,451 $ 1,224,060 $ - Corporate bonds 6,180,987 501,339 2,549,372 3,041,905 88,371 Municipal bonds 44,981 ---44,981 Totals $ 15,900,209 $ 1,498,979 $ 10,001,823 $ 4,265,965 $ 133,352 Money-Weighted Rate of Return Police Pension Fund For the year ended December 31, 2018, the annual money-weighted rate of return on the police pension plan investments, net of pension plan investment expense, was (3.42)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. See Note I.D.1. for further information on deposit and investment policies. Page 49 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) B. RECEIVABLES All of the receivables on the balance sheet are expected to be collected within one year. The Village issued General Obligation Bonds in 2011 and 2013 on behalf of the Library to finance the Library Improvement Project. These bonds are in the Village's name and are a liability of the village. The Library receives property tax collections to pay for the bond principal and interest then remits the funds to the Village as the principal and interest payments become due. The Village has recorded a receivable, offset by unavailable revenue, for the amount of debt outstanding, less cash on hand, that the Library will be paying the Village. C. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2018, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated Land $ 5,136,924 $ - $ - $ 5,136,924 Land right of way 16,180,188 - - 16,180,188 Construction in progress 338,879 294,600 130,366 503,113 Total Capital Assets Not Being Depreciated 21,655,991 294,600 130,366 21,820,225 Capital assets being depreciated Buildings and improvements 12,580,797 425,378 - 13,006,175 Vehicles, machinery and equipment 5,432,722 131,752 136,673 5,427,801 Infrastructure 99,050,969 974,830 1,137,459 98,888,340 Total Capital Assets Being Depreciated 117,064,488 1,531,960 1,274,132 117,322,316 Total Capital Assets 138,720,479 1,826,560 1,404,498 139,142,541 Less: Accumulated depreciation for Buildings and improvements (4,768,675)(303,333)-(5,072,008) Vehicles, machinery and equipment (3,205,461)(386,560)95,545 (3,496,476) Infrastructure (52,228,765)(2,026,011)885,367 (53,369,409) Total Accumulated Depreciation (60,202,901)(2,715,904)980,912 (61,937,893) Net Capital Assets Being Depreciated 56,861,587 (1,183,944)293,220 55,384,423 Total Governmental Activities Capital Assets, Net of Accumulated Depreciation $ 78,517,578 $ (889,344)$ 423,586 $ 77,204,648 Page 50 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) C. CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Governmental Activities General government $ 152,204 Public safety 177,480 Highway and streets 2,386,220 Total Governmental Activities Depreciation Expense $ 2,715,904 Beginning Balance Additions Deletions Ending Balance Business-type Activities Capital assets not being depreciation Land $ 1,955,456 $ - $ - $ 1,955,456 Construction in progress 19,641 132,528 19,641 132,528 Total Capital Assets Not Being Depreciation 1,975,097 132,528 19,641 2,087,984 Capital assets being depreciated Buildings and improvements 45,185,189 - - 45,185,189 Parking lot improvements 1,950,830 - - 1,950,830 Vehicles, machinery and equipment 626,490 - - 626,490 Water distribution system 18,755,633 291,454 18,161 19,028,926 Sanitary sewer system 6,121,498 393,012 -6,514,510 Total Capital Assets Being Depreciated 72,639,640 684,466 18,161 73,305,945 Total Capital Assets 74,614,737 816,994 37,802 75,393,929 Less: Accumulated depreciation for Buildings and improvements (7,288,813)(961,284)-(8,250,097) Parking lot improvements (952,629)(26,739)-(979,368) Vehicles, machinery and equipment (531,209)(15,882)-(547,091) Water distribution system (2,852,322)(405,152)18,161 (3,239,313) Sanitary sewer system (1,674,564)(140,367)-(1,814,931) Total Accumulated Depreciation (13,299,537)(1,549,424)18,161 (14,830,800) Net Capital Assets Being Depreciated 59,340,103 (864,958)-58,475,145 Business-type Capital Assets, Net of Accumulated Depreciation $ 61,315,200 $ (732,430)$ 19,641 $ 60,563,129 Page 51 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) D. INTERFUND ADVANCES AND TRANSFERS Advances The General Fund is advancing funds to the Water Fund. The amount represents temporary financing of the Water Fund's operation. No repayment schedule has been established. The following is a schedule of interfund advances: Receivable Fund Payable Fund Amount Amount Not Due Within One Year General Water 374,695 $ 374,695 The principal purpose of this advance is to fund water operations. Transfers The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose Infrastructure Replacement General $ 1,000,000 To fund capital projects Refuse General 955,984 To subsidize administrative charges Infrastructure Replacement Bond Proceeds 3,087,145 To provide reimbursement for construction project costs Sewerage Debt Service 1,822,429 To fund debt service paid by Sewerage Fund Total - Fund Financial Statements 6,865,558 Less: Fund eliminations (4,087,145) Total Transfers - Government-Wide Statement of Activities $ 2,778,413 Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Page 52 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) E. LONG-TERM OBLIGATIONS Long-term obligations activity for the year ended December 31, 2018, was as follows: Beginning Balance (as restated)Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Bonds and Notes Payable General obligation debt $ 30,419,000 $ 5,970,000 $ 1,460,000 $ 34,929,000 $ 1,634,000 (Discounts)/Premiums 699,916 120,990 34,739 786,167 - Sub-totals 31,118,916 6,090,990 1,494,739 35,715,167 1,634,000 Other Liabilities Vested compensated absences (governmental) 1,483,722 1,130,677 1,174,543 1,439,856 1,139,790 Vested compensated absences (internal service) 21,226 21,202 18,482 23,946 20,850 Total other postemployment benefit liability 3,441,710 - 336,873 3,104,837 - Net pension liability - IMRF 4,399,262 2,424,045 5,346,551 1,476,756 - Net pension liability - Police 9,208,748 10,816,103 -20,024,851 - Total Other Liabilities 18,554,668 14,392,027 6,876,449 26,070,246 1,160,640 Total Governmental Activities Long-Term Liabilities $ 49,673,584 $ 20,483,017 $ 8,371,188 $ 61,785,413 $ 2,794,640 Business-type Activities Bonds and Notes Payable General obligation debt $ 28,741,000 $ - $ 825,000 $ 27,916,000 $ 851,000 (Discounts)/Premiums 109,541 -10,715 98,826 - Sub-totals 28,850,541 -835,715 28,014,826 851,000 Other Liabilities Vested compensated absences 275,187 146,390 255,667 165,910 154,148 Total other postemployment benefit liability 357,515 - 62,956 294,559 - Net pension liability - IMRF 1,592,835 -1,314,794 278,041 - Total Other Liabilities 2,225,537 146,390 1,633,417 738,510 154,148 Total Business-type Activities Long-Term Liabilities $ 31,076,078 $ 146,390 $ 2,469,132 $ 28,753,336 $ 1,005,148 Page 53 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) E. LONG-TERM OBLIGATIONS (cont.) General Obligation Debt All general obligation notes and bonds payable are backed by the full faith and credit of the Village. Notes and bonds in the governmental funds will be retired by future property tax levies or tax increments accumulated by the debt service fund. Business-type activities debt is payable by revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies. Governmental Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2018 General Obligation Bond Series 2010A 11/03/2010 12/01/2028 0.80% - 5.00% $ 12,500,000 $ 3,234,000 General Obligation Bond Series 2011A 10/17/2011 12/01/2031 1.00% - 3.25% 9,900,000 7,620,000 General Obligation Bond Series 2013 01/03/2013 12/01/2031 2.00% - 2.25% 9,075,000 4,290,000 General Obligation Bond Series 2015 05/19/2015 12/01/2034 3.00% - 3.25% 9,575,000 8,395,000 General Obligation Bond Series 2017 02/06/2017 12/01/2036 3.00% - 3.75% 5,700,000 5,420,000 General Obligation Bond Series 2018 06/12/2018 12/01/2037 3.00% - 4.00% 5,970,000 5,970,000 Total Governmental Activities - General Obligation Debt $ 34,929,000 Business-type Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2018 General Obligation Bond Series 2010A 11/03/2010 12/01/2028 0.80% - 5.00% $ 12,500,000 $ 4,851,000 General Obligation Bond Series 2011B 10/17/2011 12/01/2028 4.00% 12,500,000 12,480,000 General Obligation Bond Series 2012 01/21/2012 12/01/2031 1.25% - 2.75% 10,000,000 9,865,000 General Obligation Bond Series 2013 01/03/2013 12/01/2031 2.00% - 2.25% 9,075,000 720,000 Total Business-type Activities - General Obligation Debt $ 27,916,000 Page 54 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) E. LONG-TERM OBLIGATIONS (cont.) General Obligation Debt (cont.) Debt service requirements to maturity are as follows: Governmental Activities Business-type Activities General Obligation Debt General Obligation Debt Years Principal Interest Principal Interest 2019 $ 1,634,000 $ 1,193,198 $ 851,000 $ 982,151 2020 1,790,000 1,049,838 875,000 962,558 2021 1,849,000 998,179 901,000 940,442 2022 1,910,000 944,283 930,000 915,716 2023 1,978,000 888,029 957,000 888,632 2024-2028 10,818,000 3,471,215 17,582,000 3,964,469 2029-2033 11,160,000 1,594,322 5,820,000 361,772 2034-2037 3,790,000 278,308 -- Totals $ 34,929,000 $ 10,417,372 $ 27,916,000 $ 9,015,740 F. RESTATEMENT OF NET POSITION Net position has been restated due to the implementation of GASB No. 75. The restatement is necessary to record the prior year total other postemployment liability. Governmental Activities Business-Type Activities Net position as of December 31, 2017 (as reported)$ 69,121,106 $ 34,831,603 Adjustment to record the total OPEB liability as of December 31, 2017 (3,441,710)(357,515) Adjustment to remove prior year net OPEB obligation 1,269,797 157,985 Net position as of December 31, 2017 (as restated)$ 66,949,193 $ 34,632,073 Water Fund Sewer Fund Net position as of December 31, 2017 (as reported)$ 19,524,584 $ 11,713,018 Adjustment to record the total OPEB liability as of December 31, 2017 (199,376)(158,139) Adjustment to remove prior year net OPEB obligation 44,868 113,117 Net position as of December 31, 2017 (as restated)$ 19,370,076 $ 11,667,996 Page 55 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION A.EMPLOYEES' RETIREMENT SYSTEM The Village contributes to two defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent-multiple-employer public employee retirement system; and the Police Pension Plan which is a single-employer pension plan. The benefits, benefits levels, employee contributions and employer contributions for the plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The Police Pension Plan does not issue a separate report on the pension plan. IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. Illinois Municipal Retirement Fund Plan description. All employees (other than those covered by the Police Pension plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2. For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with 8 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3% of their final rate of earnings (average of the highest 48 consecutive months' earnings during the last 10 years) for credited service up to 15 years and 3% for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3% of their final rate of earnings for the first 15 years of service credit, plus 2% for each year of service after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased ever year after retirement, upon reaching age 67, by the lesser of 3% of the original pension amount or 1/2 of the increase in the Consumer Price Index of the original pension amount. Under the employer number within IMRF, both the Village and Deerfield Public Library contribute to the plan. As a result, IMRF is considered to be an agent multiple-employer plan through which cost-sharing occurs between the Village and Deerfield Public Library. Plan membership. At December 31, 2017, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 129 Inactive, non-retired members 96 Active members 106 Total 331 Page 56 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Contributions. As set by statute, Village and Deerfield Public Library employees participating in IMRF are required to contribute 4.50% of their annual covered salary. The statute requires the Village and Deerfield Public Library to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Village and Deerfield Public Library’s actuarially determined contribution rate for calendar year 2017 was 12.02% of annual covered payroll for IMRF. The Village and Deerfield Public Library also contribute for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Summary of Significant Accounting Policies. For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Actuarial Assumptions. The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2017 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.50% Inflation 3.50% Salary increases 3.39% to 14.25%, including inflation Price inflation 2.50% Mortality. For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP- 2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. Page 57 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension plan investments was determined using an asset allocation study in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce long-term expected rate of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Projected Returns/Risks Asset Class Target Allocation One Year Arithmetic Ten Year Geometric Equities 37.00% 8.30% 6.85% International equities 18.00% 8.45% 6.75% Fixed income 28.00% 3.05% 3.00% Real estate 9.00% 6.90% 5.75% Alternatives 7.00% Private equity 12.45% 7.35% Hedge funds 5.35% 5.05% Commodities 4.25% 2.65% Cash equivalents 1.00% 2.25% 2.25% Discount rate. The discount rate used to measure the total pension liability for IMRF was 7.50%. The discount rate calculated using the December 31, 2016 measurement date was 7.50%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefits to determine the total pension liability. Page 58 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table below presents net pension liability/(asset) of the Village calculated using the discount rate of 7.50% as well as what the net pension liability/(asset) would be if it were to be calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Village: Total pension liability $ 44,656,745 $ 39,757,177 $ 35,735,443 Plan fiduciary net pension 38,002,380 38,002,380 38,002,380 Net pension liability/(asset) $ 6,654,365 $ 1,754,797 $ (2,266,937) Deerfield Public Library: Total pension liability $ 11,979,641 $ 10,665,280 $ 9,586,408 Plan fiduciary net pension 10,170,852 10,170,852 10,170,852 Net pension liability/(asset) $ 1,808,789 $ 494,428 $ (584,444) Total: Total pension liability $ 56,636,386 $ 50,422,457 $ 45,321,851 Plan fiduciary net pension 48,173,232 48,173,232 48,173,232 Net pension liability/(asset) $ 8,463,154 $ 2,249,225 $ (2,851,381) Changes in net pension liability/(asset). The changes in net pension liability/(asset) for the calendar year ended December 31, 2017 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Village: Balances at December 31, 2016 $ 39,667,423 $ 33,675,326 $ 5,992,097 Service cost 630,479 - 630,479 Interest on total pension liability 2,885,733 - 2,885,733 Differences between expected and actual experience of the total pension liability 103,738 - 103,738 Change of assumptions (1,504,058)-(1,504,058) Benefit payments, including refunds of employee contributions (2,026,138)(2,026,138)- Contributions - employer - 754,638 (754,638) Contributions - employee - 282,423 (282,423) Net investment income - 5,824,071 (5,824,071) Other (net transfer) -(507,940)507,940 Balances at December 31, 2017 $ 39,757,177 $ 38,002,380 $ 1,754,797 Page 59 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Deerfield Public Library: Balances at December 31, 2016 $ 10,544,506 $ 8,951,671 $ 1,592,835 Service cost 177,642 - 177,642 Interest on total pension liability 813,078 - 813,078 Differences between expected and actual experience of the total pension liability 29,229 - 29,229 Change of assumptions (328,295)-(328,295) Benefit payments, including refunds of employee contributions (570,880)(570,880)- Contributions - employer - 212,625 (212,625) Contributions - employee - 79,575 (79,575) Net investment income - 1,640,978 (1,640,978) Other (net transfer) -(143,117)143,117 Balances at December 31, 2017 $ 10,665,280 $ 10,170,852 $ 494,428 Total: Balances at December 31, 2016 $ 50,211,929 $ 42,626,997 $ 7,584,932 Service cost 808,121 - 808,121 Interest on total pension liability 3,698,811 - 3,698,811 Differences between expected and actual experience of the total pension liability 132,967 - 132,967 Change of assumptions (1,832,353)-(1,832,353) Benefit payments, including refunds of employee contributions (2,597,018)(2,597,018)- Contributions - employer - 967,263 (967,263) Contributions - employee - 361,998 (361,998) Net investment income - 7,465,049 (7,465,049) Other (net transfer) -(651,057)651,057 Balances at December 31, 2017 $ 50,422,457 $ 48,173,232 $ 2,249,225 Plan fiduciary net position as a percentage of the total pension liability %95.54 Page 60 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions. For the year ended December 31, 2018, the Village recognized pension expense of $1,548,893. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Village: Difference between expected and actual experience $ 272,490 $ 8,808 Assumption changes 45,211 1,116,321 Net difference between projected and actual earnings on pension plan investments - 1,648,348 Contributions subsequent to the measurement date 821,288 - Total $ 1,138,989 $ 2,773,477 Deerfield Public Library: Difference between expected and actual experience $ 76,776 $ 2,482 Assumption changes 12,738 314,533 Net difference between projected and actual earnings on pension plan investments - 464,436 Contributions subsequent to the measurement date 227,318 - Total $ 316,832 $ 781,451 Total: Difference between expected and actual experience $ 349,266 $ 11,290 Assumption changes 57,949 1,430,854 Net difference between projected and actual earnings on pension plan investments - 2,112,784 Contributions subsequent to the measurement date 1,048,606 - Total $ 1,455,821 $ 3,554,928 Page 61 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) The amount reported as deferred outflows resulting from contributions subsequent to the measurement date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year ending December 31, 2019. The remaining amounts reported as deferred outflows and inflows of resources related to pensions ($(3,147,713)) will be recognized in pension expense as follows: Year Ending December 31,Village Deerfield Public Library Total 2019 $(342,287)$(96,443)$(438,730) 2020 (462,544)(130,326)(592,870) 2021 (973,753)(274,364)(1,248,117) 2022 (677,192)(190,804)(867,996) Total $ (2,455,776)$ (691,937)$ (3,147,713) Police Pension Plan description. 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 contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police Pension Fund as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one half of the salary attached to the rank on the last day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. 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 retirement 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 paid upon reaching at least the age 55, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75% of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a police shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase in the CPI, whichever is less. Page 62 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Plan membership. At December 31, 2018, the Police Pension membership consisted of: Retirees and beneficiaries 39 Inactive, non-retired members 3 Active members 40 Total 82 Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village’s contributions must accumulate to the point where the past service cost for the Police Pension Plan is 90% funded by the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December 31, 2018 was 26.06% of annual covered payroll. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The Village’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. Page 63 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed as of December 31, 2018 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 7.25% Inflation 2.50% Projected salary increases 4.00% - 8.22% Cost-of-living adjustments 2.50 Mortality rates were based on the RP-2014 Adjusted for plan status, collar, and Illinois Public Pension Data, as appropriate. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated September 26, 2012. Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan was 6.53%. The discount rate calculated using the December 31, 2017 measurement date was 7.25%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected not to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments of 7.25% was blended with the index rate of 4.10% for tax exempt 20-year general obligation municipal bonds with an average AA credit rating as of December 31, 2018 to arrive at a discount rate of 6.53% used to determine the total pension liability. The year ending December 31, 2062 is the last year in the project period for which projected benefit payments are fully funded. Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 6.53% as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (5.53%) or 1 percentage point higher (7.53%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $ 74,812,393 $ 65,003,767 $ 57,101,410 Plan fiduciary net position 44,978,916 44,978,916 44,978,916 Net pension liability $ 29,833,477 $ 20,024,851 $ 12,122,494 Page 64 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Changes in net pension liability/(asset). The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2018 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2017 $ 57,126,945 $ 47,918,196 $ 9,208,749 Service cost 781,798 - 781,798 Interest on total pension liability 4,040,019 - 4,040,019 Changes in benefit terms 8,204 - 8,204 Change of assumptions 5,851,896 - 5,851,896 Benefit payments, including refunds of employee contributions (2,805,095)(2,805,095)- Contributions - employer - 1,100,000 (1,100,000) Contributions - employee - 418,230 (418,230) Net investment income -(1,613,044)1,613,044 Administration -(39,371)39,371 Balances at December 31, 2018 $ 65,003,767 $ 44,978,916 $ 20,024,851 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions. For the year ended December 31, 2018, the Village recognized pension expense of $2,636,235. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $ 748,239 $ 1,153,527 Assumption changes 8,966,977 6,993,322 Net difference between projected and actual earnings on pension plan investments 2,305,218 - Total $ 12,020,434 $ 8,146,849 Page 65 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) The amounts reported as deferred outflows and inflows of resources related to pensions ($3,873,585) will be recognized in pension expense as follows: Year Ending December 31,Amount 2019 $ 1,619,266 2020 761,132 2021 (1,177,062) 2022 775,039 2023 792,978 Thereafter 1,102,232 Total $ 3,873,585 B. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; workers compensation; and health care of its employees. The Village participates in a public entity risk pool called Municipal Insurance Cooperative Agency to provide coverage for losses from (torts; theft of, damage to, or destruction of assets; errors and omission; workers compensation; and health care of its employees). However, other risks, such as (torts; theft of, damage to, or destruction of assets; errors and omission; workers compensation; and health care of its employees) are accounted for and financed by the Village in the General Fund. Public Entity Risk Pool Municipal Insurance Cooperative Agency The Village participates in the Municipal Insurance Cooperative Agency (MICA). MICA is a public entity risk pool whose members are Illinois municipalities. MICA manages and funds first party property losses, third party liability claims, workers’ compensation claims and public officials’ liability claims of its members. MICA provides $2,000,000 of coverage after a $5,000 deductible. The Village’s payments to MICA are displayed on the financial statements as expenditures/expenses in appropriate funds. Management consists of a Board of Directors comprised of one appointed representative from each member. In addition, there are three officers, a Risk Manager and a Treasurer. The Village does not exercise any control over activities of MICA beyond its representation on the Board of Directors. MICA functions solely as an administrative agent for each member. The Village had previously participated in the High-Level Excess Liability Pool (HELP). This coverage expired April 30, 2018 and was not renewed. The Village is fully covered under MICA as of May 1, 2018. HELP coverage is in run off in case claims incurred prior to April 30, 2018 are reported. Page 66 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) B. RISK MANAGEMENT (cont.) Public Entity Risk Pool (cont.) Intergovernmental Personnel Benefit Cooperative The Village participates in the Intergovernmental Personnel Benefit Cooperative (IPBC). IPBC is a public entity risk pool established by certain units of local government in Illinois to administer some or all of the personnel benefit 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 they 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. C. COMMITMENTS AND CONTINGENCIES Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. From time to time, the Village is party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the Village attorney that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the Village's financial position or results of operations. 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. Solid Waste Agency of Lake County The Village’s contract with SWALCO provides that each member is liable for its proportionate share of any costs arising from defaults in payment obligations by other members. Page 67 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) D. JOINT VENTURES Solid Waste Agency of Lake County The Village is a member of SWALCO, which consists of 35 municipalities. SWALCO is a municipal corporation and public body politic and corporate established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the Act). SWALCO is empowered under the Act to plan, construct, finance, operate and maintain a solid waste disposal system to serve its members. These percentage shares are subject to change in future years based on the combination of the population and equalized assessed valuation of the municipalities. The members form a contiguous geographic service area, which is located in Lake County. Under the agency agreement, additional members may join SWALCO upon the approval of each member. SWALCO is governed by a Board of Directors, which consists of one appointed representative from each member municipality. Each Director has an equal vote. The officers of SWALCO are appointed by the Board of Directors. The Board of Directors determines the general policy of SWALCO; makes all appropriations; approves contracts; adopts resolutions providing for the issuance of bonds or notes by SWALCO; adopts bylaws, rules and regulations; and exercises such powers and performs such duties as may be prescribed in the agency agreement or the by-laws. SWALCO is an oversight advisory board providing long range planning services to member municipalities. The Village is a participant in SWALCO, but no agreement has been reached as to services to be provided. Complete financial statements can be obtained from the Solid Waste Agency of Lake County, 1300 N. Skokie Highway, Suite 103, Gurnee, Illinois 60031. The Village does not have an equity interest in SWALCO at December 31, 2018. E. OTHER POSTEMPLOYMENT BENEFITS GENERAL INFORMATION ABOUT THE OPEB PLAN Plan description. The Village administers a single-employer defined benefit healthcare plan The plan provides for eligible retirees through the Village’s group health insurance plan, which covers both active and retired members. Benefit provisions are established through personnel policy guidelines and collective bargaining agreements. The Retiree Health Plan does not issue a publicly available financial report. The Village's OPEB plan is a single-employer defined benefit OPEB plan administered by the Village. Article 11 of the State Compiled Statutes grants the authority to establish and amend the benefit terms and financing requirements to the Village Board. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Page 68 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) E. OTHER POSTEMPLOYMENT BENEFITS (cont.) Contributions and benefits provided. Contribution requirements are established through personnel policy guidelines and collective bargaining agreements and may be amended only through negotiations between the Village and the union. The Village provides pre and post- Medicare postretirement health insurance to retirees, their spouses and dependents (enrolled at time of employee's retirement). To be eligible for benefits, the employee must qualify for retirement under one of the Village's two retirement plans. The Village pays a subsidy of 50% of the cost of the monthly health insurance premiums for the retirees up to a maximum of $50. The retiree pays the remainder of the blended premium. Upon a retiree becoming eligible for Medicare, the amount payable under the Village's health plan will be reduces by the amount payable under Medicare for those expenses that are covered under both. Employees covered by benefit terms. At December 31, 2018, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 22 Active plan members 105 Total 127 TOTAL OPEB LIABILITY The Village's total OPEB liability of $3,399,396 was measured as of December 31, 2018, and was determined by an actuarial valuation as of that date. Actuarial assumptions and other inputs. The total OPEB liability in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Salary increases 2.75% Healthcare cost trend rates Initial medical rate for HMO of 1.5%, grading up to 5.00% in 2020 and initial medical rate for PPO of 7.20%, grading down to 5.00% in 2020. The discount rate was based on the December 27, 2018 Bond Buyer 20-Bond Index, as published by the Federal Reserve. Active IMRF Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study. Retiree and Spousal IMRF Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study, with Blue Collar Adjustment. Active Police Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study, with Blue Collar Adjustment. Retiree Police Mortality follows the L&A Assumption Study for Police 2016. Disabled Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study for Disabled Participants, with Blue Collar Adjustment. Police Spouse Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study. Page 69 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) E. OTHER POSTEMPLOYMENT BENEFITS (cont.) The actuarial assumptions used in the December 31, 2018 valuation were based on the results of an actuarial valuation date of January 1, 2018. CHANGES IN THE TOTAL OPEB LIABILITY Total OPEB Liability Balances at December 31, 2017 $ 3,799,225 Changes for the year: Service cost 90,149 Interest 127,960 Changes of benefit terms (202,501) Changes in assumptions or other inputs (251,824) Benefit payments (163,613) Net changes (399,829) Balances at December 31, 2018 $ 3,399,396 Changes of benefit terms reflect an increase in the retirees' share of health insurance premiums from a change in plan provisions for IMRF employees and Police Officers. The Village will no longer pay any portion of the cost of coverage for those retired on or after June 2, 2018. Changes of assumptions and other inputs reflect a change in the discount rate from 3.44% for the reporting period ending December 31, 2017 to 4.10% for the reporting period ending December 31, 2018. Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability of the Village, as well as what the Village's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.1 percent) or 1-percentage-point higher (5.1 percent) than the current discount rate: 1% Decrease Discount Rate 1% Increase (3.1%)(4.1%)(5.1%) Total OPEB liability $ 3,894,294 $ 3,399,396 $ 2,994,630 Page 70 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) E. OTHER POSTEMPLOYMENT BENEFITS (cont.) Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the net OPEB liability of the Village, as well as what the Village's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage- point higher than the current healthcare cost trend rates: 1% Decrease (varies) Healthcare Cost Trend Rates (varies) 1% Increase (varies) Total OPEB liability $ 2,927,925 $ 3,399,396 $ 3,986,402 OPEB EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2018, the Village recognized negative OPEB expense of $42,026. At December 31, 2018, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Inflows of Resources Changes of assumptions or other inputs $ 267,053 Total $ 267,053 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31,Total 2019 $(31,493) 2020 (31,493) 2021 (31,493) 2022 (31,493) 2023 (31,493) Thereafter (109,588) Total $ 267,053 Page 71 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE IV - OTHER INFORMATION (cont.) F. TAX ABATEMENT Tax abatements are a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. The Village is disclosing all abatement agreements individually. During the fiscal year 2002, the Village entered into an economic incentive agreement with a commercial entity. The agreement was approved by the Board, in accordance with Illinois Compiled Statues. The Village has agreed to reimburse the commercial entity 75% of the total sales tax revenue generated for the first six years of the agreement, and 80% of any sales tax revenue generated for the seventh year and all subsequent years. The amount of the rebates is limited to specified time period and are payable over 20 years solely from sales taxes generated by the commercial entity. The rebates are to be paid monthly with the agreement expiring 20 years after commencement. The total amount of home-rule sales tax rebated for the fiscal year ending December 31, 2018 was $1,648,646. At December 31, 2018, the Village has accrued an estimated home-rule sales tax rebate liability of $359,673 for amounts collected by the state through December 31, 2017 but not yet paid to the commercial entity. To date, the Village has rebated $15,829,088 of home-rule sales tax to the commercial entity. The agreement has no stated maximum. The rebate is not subject to recapture, in whole or in part. G. EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS The Governmental Accounting Standards Board (GASB) has approved the following: Statement No. 83, Certain Asset Retirement Obligations Statement No. 84, Fiduciary Activities Statement No. 87, Leases Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period Statement No. 90, Majority Equity Interests - an amendment of GASB Statements No. 14 and No. 61 When they become effective, application of these standards may restate portions of these financial statements. Page 72 R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual REVENUES Taxes $ 11,972,997 $ 11,972,997 $ 12,240,134 Licenses and permits 1,420,500 1,420,500 1,877,242 Intergovernmental 6,960,000 6,960,000 7,137,366 Charges for services 625,000 625,000 828,967 Fines and forfeits 276,000 276,000 277,967 Investment income 140,000 140,000 354,373 Miscellaneous 829,500 829,500 923,480 Total Revenues 22,223,997 22,223,997 23,639,529 EXPENDITURES General government 8,333,077 9,203,077 8,826,254 Public safety 9,964,678 9,964,678 9,211,164 Highway and streets 2,876,546 2,876,546 2,782,979 Total Expenditures 21,174,301 22,044,301 20,820,397 Excess (deficiency) of revenues over (under) expenditures 1,049,696 179,696 2,819,132 OTHER FINANCING SOURCES (USES) Transfers out (1,955,984)(1,955,984)(1,955,984) Total Other Financing Sources (Uses)(1,955,984)(1,955,984)(1,955,984) Net Change in Fund Balance $ (906,288)$ (1,776,288)863,148 FUND BALANCE - Beginning of Year 19,099,499 FUND BALANCE - END OF YEAR $ 19,962,647 See independent auditors' report and accompanying notes to required supplementary information. Page 73 Village Library Total Total pension liability Service cost 646,241$ 171,785$ 818,026$ Interest 2,679,659 712,314 3,391,973 Differences between expected and actual experience (15,329) (4,075) (19,404) Changes of assumptions 45,001 11,962 56,963 Benefit payments, including refunds of member contributions (1,925,766) (511,913) (2,437,679) Net change in total pension liability 1,429,804 380,075 1,809,879 Total pension liability - beginning 34,986,441 9,300,194 44,286,635 Total pension liability - ending (a)36,416,246$ 9,680,268$ 46,096,514$ Plan fiduciary net position Employer contributions 793,323$ 210,883$ 1,004,206$ Employee contributions 274,164 72,879 347,043 Net investment income 159,860 42,495 202,355 Benefit payments, including refunds of member contributions (1,925,766) (511,913) (2,437,679) Other (net transfer) 536,509 142,616 679,125 Net change in plan fiduciary net position (161,911) (43,040) (204,950) Plan fiduciary net position - beginning 32,563,157 8,656,029 41,219,186 Plan fiduciary net position - ending (b)32,401,247$ 8,612,990$ 41,014,236$ Employer's net pension liability - ending (a) - (b)4,014,999$ 1,067,279$ 5,082,278$ Plan fiduciary net position as a percentage of the total pension liability 88.97% Covered payroll 6,330,297$ Employer's net pension liability as a percentage of covered payroll 80.28% Notes to Schedule: VILLAGE OF DEERFIELD The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. 2015 Four Most Recent Fiscal Years AND RELATED RATIOS SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY ILLINOIS MUNICIPAL RETIREMENT FUND See independent auditors' report and accompanying notes to required supplementary information. Page 74 Village Library Total Village Library Total 646,241$ 171,785$ 818,026$ 639,717$ 170,051$ 809,768$ 2,679,659 712,314 3,391,973 2,783,677 739,965 3,523,642 (15,329) (4,075) (19,404) 393,734 104,664 498,398 45,001 11,962 56,963 (93,810) (24,937) (118,747) (1,925,766) (511,913) (2,437,679) (1,901,945) (505,580) (2,407,525) 1,429,804 380,075 1,809,879 1,821,373 484,163 2,305,536 36,416,246 9,680,268 46,096,514 37,846,050 10,060,343 47,906,393 37,846,050$ 10,060,343$ 47,906,393$ 39,667,423$ 10,544,506$ 50,211,929$ 793,323$ 210,883$ 1,004,206$ 802,016$ 213,194$ 1,015,210$ 274,164 72,879 347,043 285,554 75,907 361,461 159,860 42,495 202,355 2,246,277 597,112 2,843,389 (1,925,766) (511,913) (2,437,679) (1,901,945) (505,580) (2,407,525) 536,509 142,616 679,125 4,088 1,088 5,176 (161,911) (43,040) (204,950) 1,435,990 381,721 1,817,711 32,401,247 8,612,990 41,014,236 32,239,336 8,569,950 40,809,286 32,239,336$ 8,569,950$ 40,809,286$ 33,675,326$ 8,951,671$ 42,626,997$ 5,606,714$ 1,490,393$ 7,097,107$ 5,992,097$ 1,592,835$ 7,584,932$ 85.19% 84.89% 6,330,297$ 7,943,748$ 112.11% 95.48% 20172016 See independent auditors' report and accompanying notes to required supplementary information. Page 75 Village Library Total Total pension liability Service cost 630,479$ 177,642$ 808,121$ Interest 2,885,733 813,078 3,698,811 Differences between expected and actual experience 103,738 29,229 132,967 Changes of assumptions (1,504,058) (328,295) (1,832,353) Benefit payments, including refunds of member contributions (2,026,138) (570,880) (2,597,018) Net change in total pension liability 89,754 120,774 210,528 Total pension liability - beginning 39,667,423 10,544,506 50,211,929 Total pension liability - ending (a)39,757,177$ 10,665,280$ 50,422,457$ Plan fiduciary net position Employer contributions 754,638$ 212,625$ 967,263$ Employee contributions 282,423 79,575 361,998 Net investment income 5,824,071 1,640,978 7,465,049 Benefit payments, including refunds of member contributions (2,026,138) (570,880) (2,597,018) Other (net transfer) (507,940) (143,117) (651,057) Net change in plan fiduciary net position 4,327,054 1,219,181 5,546,235 Plan fiduciary net position - beginning 33,675,326 8,951,671 42,626,997 Plan fiduciary net position - ending (b)38,002,380$ 10,170,852$ 48,173,232$ Employer's net pension liability - ending (a) - (b)1,754,797$ 494,428$ 2,249,225$ Plan fiduciary net position as a percentage of the total pension liability 95.54% Covered payroll 8,044,417$ Employer's net pension liability as a percentage of covered payroll 27.96% Notes to Schedule: The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. VILLAGE OF DEERFIELD ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Four Most Recent Fiscal Years 2018 See independent auditors' report and accompanying notes to required supplementary information. Page 76 VILLAGE OF DEERFIELD ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER CONTRIBTUIONS Four Most Recent Fiscal Yeaers Village Library Total Village Library Total Actuarially determined contribution 787,421 209,314 996,735 802,017 213,194 1,015,211 Contributions in relation to the actuarially determined contribution (793,323) (210,883) (1,004,206) (802,016) (213,194) (1,015,210) Contribution deficiency (excess) (5,902)$ (1,569)$ (7,471)$ 1$ -$ 1$ Covered payroll 7,702,244 7,943,748 Contributions as a percentage of covered payroll 13.04% 12.78% Notes to Schedule: Valuation date: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation 2.75% Salary increases Investment rate of return 7.50% Retirement Age Mortality Other information: There were no benefit changes during the year. 3.75% to 14.50% including inflation RP-2014 CHBCA Experience-based table of rates that are specific to the type of eligibility condition Actuarially determined contribution rates are calculated as of December 31 each year, which are are 12 months prior to the beginning of of the fiscal year in which contributions are reported. The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. Entry age normal 26 years 5-Year Smoothed Market Level percentage of payroll, closed 20162015 See independent auditors' report and accompanying notes to required supplementary information. Page 77 2017 2018 Village Library Total Village Library Total 759,433$ 201,875 961,308 749,992$ 211,316 961,308 (764,138) (203,125) (967,263) (754,638) (212,625) (967,263) (4,704)$ (1,251)$ (5,955)$ (4,646)$ (1,309)$ (5,955)$ 8,044,417$ 8,355,421$ 12.02% 11.58% See independent auditors' report and accompanying notes to required supplementary information. Page 78 2014 2015 2016 2017 2018 Total pension liability Service cost 841,716$ 1,138,463$ 941,842$ 1,002,497$ 781,798$ Interest 3,358,650 2,800,129 4,212,748 3,862,179 4,040,019 Differences between expected and actual experience - 2,088,324 (2,314,800) 106,742 8,204 Changes of assumptions - 12,175,632 (5,531,502) (6,365,881) 5,851,896 Benefit payments, including refunds of member contributions (2,447,399) (2,443,015) (2,603,139) (2,900,648) (2,805,095) Net change in total pension liability 1,752,967 15,759,533 (5,294,851) (4,295,111) 7,876,822 Total pension liability - beginning 49,204,407 50,957,374 66,716,907 61,422,056 57,126,945 Total pension liability - ending (a)50,957,374$ 66,716,907$ 61,422,056$ 57,126,945$ 65,003,767$ Plan fiduciary net position Employer contributions 989,616$ 871,305$ 934,918$ 1,100,000$ 1,100,000$ Employee contributions 374,137 517,457 425,791 390,162 418,230 Net investment income 3,637,510 (4,524) 3,845,026 6,296,845 (1,613,045) Benefit payments, including refunds of member contributions (2,447,399) (2,443,015) (2,603,139) (2,900,648) (2,805,095) Administration (20,524) (23,217) (41,182) (41,938) (39,371) Net change in plan fiduciary net position 2,533,340 (1,081,994) 2,561,414 4,844,421 (2,939,281) Plan fiduciary net position - beginning 39,061,016 41,594,356 40,512,362 43,073,776 47,918,197 Plan fiduciary net position - ending (b)41,594,356$ 40,512,362$ 43,073,776$ 47,918,197$ 44,978,916$ Village's net pension liability - ending (a) - (b)9,363,018$ 26,204,545$ 18,348,280$ 9,208,748$ 20,024,851$ Plan fiduciary net position as a percentage of the total pension liability 81.63% 60.72% 70.13% 83.88% 69.19% Covered payroll 3,702,863$ 3,806,499$ 3,825,286$ 3,949,608$ 4,220,281$ Village's net pension liability as a percentage of covered payroll 252.86% 688.42% 479.66% 233.16% 474.49% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Changes of assumptions. There was a change in assumption related to the discount rate made since the prior measurement date. The discount rate used in the current actuarial valuation, dated December 31, 2017, is 7.25%. The discount rate used in the prior actuarial valuations, dated December 31, 2016, December 31, 2015 and December 31, 2014 was 6.44%, 5.63%, and 7.00%, respectively. Last Five Fiscal Years SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND VILLAGE OF DEERFIELD See independent auditors' report and notes to required supplementary information. Page 79 2010 2011 2012 2013 Actuarially determined contribution 1,202,006$ 1,350,132$ 860,228$ 1,023,006$ Contributions in relation to the actuarially determined contribution 1,202,006 1,350,132 860,228 1,023,006 Contribution deficiency (excess)-$ -$ -$ -$ Covered payroll 3,356,276$ 3,216,370$ 3,412,049$ 3,512,925$ Contributions as a percentage of covered- employee payroll 35.81% 41.98% 25.21% 29.12% *The Village changed to a December year end for the fiscal year ended December 31, 2013. Notes to Schedule: Valuation date: Actuarially determined contributions are calculated as of December 31 of the current fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Mortality L&A 2016 Illinois Police Mortality Rates Entry-age normal Level percentage of payroll, closed 23 years Market value 3.25%, Individual pay increases 4.00% - 8.22% 2.50% 7.25%, net of pension plan investment expense, including inflation The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. POLICE PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS VILLAGE OF DEERFIELD Last Ten Fiscal Years See independent auditors' report and notes to required supplementary information. Page 80 2013*2014 2015 2016 2017 2018 895,479$ 989,616$ 871,305$ 934,918$ 934,836$ 850,587$ 895,479 989,616 871,305 934,918 1,100,000 1,100,000 -$ -$ -$ -$ (165,164)$ (249,413)$ 3,591,966$ 3,702,863$ 3,806,499$ 3,825,286$ 3,949,608$ 4,220,281$ 24.93% 26.73% 22.89% 24.44% 27.85% 26.06% See independent auditors' report and notes to required supplementary information. Page 81 2014 2015 2016 2017 2018 Annual money-weighted rate of return, net of investment expense 9.54% -0.02% 9.73% 15.08% -3.42% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Last Five Fiscal Years SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND VILLAGE OF DEERFIELD See independent auditors' report and notes to required supplementary information. Page 82 RETIREE HEALTH PLAN 2018 Total OPEB Liability Service cost 90,149$ Interest 127,960 Changes of benefit terms (202,501) Differences between expected and actual experience - Changes of assumptions (251,824) Benefit payments (163,613) Net Change in Total OPEB Liability (399,829) Total OPEB Liability - Beginning 3,799,225 Total OPEB Liability - Ending 3,399,396$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% Covered payroll 9,522,034$ Total OPEB liability as a percentage of covered payroll 35.70% Notes to Schedule: VILLAGE OF DEERFIELD SCHEDULE OF CHANGES IN THE VILLAGE'S TOTAL OPEB LIABILITY AND RELATED RATIOS Most Recent Fiscal Year The Village implemented GASB Statement No. 75 in fiscal year 2018. Information prior to fiscal year 2018 is not available. Benefit changes. In 2018, the plan provisions changed for IMRF employees and Police Officers. The Village will no longer pay any portion of the cost of coverage for those retired on or after June 2, 2018. Changes of assumptions. In 2018, the only change in assumptions was the discount rate. The discount rate at the beginning of the year was 3.44% and at the end of the year was 4.10%. See independent auditors' report and notes to required supplementary information. Page 83 VILLAGE OF DEERFIELD NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended December 31, 2018 BUDGETARY INFORMATION Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. (at the fund level) for the general, special revenue, debt service, capital projects, enterprise, internal service and pension trust funds, with the exception of the Bond Proceeds Fund. The budget is as amended by the Board of Trustees. All annual appropriations lapse at fiscal year end. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to assign or commit that portion of the applicable appropriation is utilized in the governmental funds. Material encumbrances outstanding at year end, if any, are reported as reservations of fund balance and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. No material encumbrances were recorded for 2018. 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 of Trustees must approve any over expenditures of appropriation or transfers of appropriated amounts. See independent auditors' report. Page 84 S U P P L E M E N T A R Y I N F O R M A T I O N VILLAGE OF DEERFIELD DETAILED SCHEDULE OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual TAXES Property $ 3,562,997 $ 3,562,997 $ 3,529,990 Replacement 130,000 130,000 126,752 Home rule sales 3,250,000 3,250,000 3,252,733 Local use 430,000 430,000 551,672 Electric utility 1,250,000 1,250,000 1,251,639 Hotel/Motel 1,900,000 1,900,000 2,159,203 Telecommunication 1,450,000 1,450,000 1,368,145 Total taxes 11,972,997 11,972,997 12,240,134 LICENSES AND PERMITS Beer/liquor licenses 70,000 70,000 56,778 Food licenses 5,000 5,000 6,490 Other business licenses 5,500 5,500 7,014 Building permits 925,000 925,000 1,412,526 Contractor's licenses 7,000 7,000 7,100 Nonbusiness licenses and permits 38,000 38,000 25,214 Vehicle licenses 370,000 370,000 362,120 Total licenses and permits 1,420,500 1,420,500 1,877,242 INTERGOVERNMENTAL State grant - - 9,498 Sales taxes 5,200,000 5,200,000 5,269,748 Income taxes 1,700,000 1,700,000 1,798,487 State highway maintenance 60,000 60,000 59,633 Total intergovernmental 6,960,000 6,960,000 7,137,366 CHARGES FOR SERVICES Billings 220,000 220,000 256,230 Dispatching services 260,000 260,000 250,584 50/50 tree planting 65,000 65,000 159,336 Engineering services 80,000 80,000 162,817 Total charges for services 625,000 625,000 828,967 MISCELLANEOUS False alarms 27,000 27,000 22,075 Rentals 265,000 265,000 322,817 Miscellaneous 105,000 105,000 100,597 Sale of capital assets 7,500 7,500 32,524 Franchise fees 425,000 425,000 445,467 Total miscellaneous 829,500 829,500 923,480 Fines and forfeits 276,000 276,000 277,967 Investment income 140,000 140,000 354,373 TOTAL REVENUES $ 22,223,997 $ 22,223,997 $ 23,639,529 Page 85 VILLAGE OF DEERFIELD DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual GENERAL GOVERNMENT Finance department Personnel services $ 967,500 $ 967,500 $ 893,730 Training and development 12,050 12,050 6,559 Contractual services 3,071,138 3,491,138 3,555,364 Commodities 10,500 10,500 4,565 Utilities 18,710 18,710 20,096 Capital outlay 6,000 6,000 7,768 Total Finance department 4,085,898 4,505,898 4,488,082 Administration Personnel services 1,238,800 1,238,800 1,169,412 Training and development 22,350 22,350 11,105 Contractual services 655,214 1,105,214 1,107,056 Commodities 4,800 4,800 5,634 Utilities 10,510 10,510 9,464 Capital outlay 90,717 90,717 73,104 Total Administration 2,022,391 2,472,391 2,375,775 Community development Personnel services 1,170,800 1,170,800 1,105,877 Training and development 8,500 8,500 4,096 Contractual services 129,861 129,861 78,591 Commodities 14,900 14,900 11,889 Utilities 11,985 11,985 9,578 Capital outlay 7,250 7,250 6,250 Total Community development 1,343,296 1,343,296 1,216,281 Engineering Personnel services 536,900 536,900 490,025 Training and development 6,100 6,100 2,467 Contractual services 283,305 283,305 209,869 Commodities 10,500 10,500 11,935 Utilities 9,870 9,870 6,417 Capital outlay 34,817 34,817 25,403 Total Engineering 881,492 881,492 746,116 Total general government 8,333,077 9,203,077 8,826,254 PUBLIC SAFETY POLICE DEPARTMENT Administrative services Personnel services 1,098,866 1,098,866 915,704 Training and development 14,190 14,190 7,191 Contractual services 676,225 676,225 598,435 Commodities 23,900 23,900 23,758 Utilities 17,675 17,675 14,190 Capital outlay 206,952 206,952 203,877 Total Administrative services 2,037,808 2,037,808 1,763,155 Page 86 VILLAGE OF DEERFIELD DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual Communications Personnel services $ 1,057,067 $ 1,057,067 $ 1,020,580 Training and development 6,800 6,800 4,227 Contractual services 500 500 237 Capital outlay 5,000 5,000 233 Total Communications 1,069,367 1,069,367 1,025,277 Investigations Personnel services 1,187,735 1,187,735 982,369 Training and development 11,700 11,700 3,492 Contractual services 6,370 6,370 5,653 Commodities 14,700 14,700 7,388 Capital outlay 10,500 10,500 5,288 Total Investigations 1,231,005 1,231,005 1,004,190 Patrol Personnel services 5,318,998 5,318,998 5,121,942 Training and development 46,450 46,450 40,175 Contractual services 45,500 45,500 51,719 Commodities 80,000 80,000 59,975 Utilities 7,000 7,000 7,003 Capital outlay 21,550 21,550 23,369 Total Patrol 5,519,498 5,519,498 5,304,183 Special detail Personnel services 107,000 107,000 114,359 Total Special detail 107,000 107,000 114,359 Total public safety 9,964,678 9,964,678 9,211,164 HIGHWAYS AND STREETS Administration Personnel services 314,950 314,950 355,635 Training and development 4,900 4,900 3,423 Contractual services 233,673 233,673 212,124 Commodities 6,700 6,700 7,650 Utilities 10,265 10,265 7,526 Capital outlay 215,058 215,058 206,394 Total Administration 785,546 785,546 792,752 Maintenance Personnel services 767,500 767,500 642,178 Contractual services 159,000 159,000 179,592 Commodities 147,000 147,000 152,289 Utilities 110,000 110,000 97,322 Capital outlay 1,500 1,500 - Total Maintenance 1,185,000 1,185,000 1,071,381 Page 87 VILLAGE OF DEERFIELD DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual Snow and ice control Personnel services $ 120,750 $ 120,750 $ 104,215 Contractual services 114,000 114,000 176,974 Commodities 217,250 217,250 178,038 Capital outlay 750 750 496 Total Snow and ice control 452,750 452,750 459,723 Forestry Personnel services 8,600 8,600 1,905 Contractual services 238,000 238,000 259,134 Commodities 10,000 10,000 2,484 Capital outlay 137,000 137,000 138,056 Total Forestry 393,600 393,600 401,579 Train station maintenance Personnel services 9,750 9,750 10,060 Contractual services 43,500 43,500 43,726 Commodities 4,000 4,000 2,190 Utilities 2,400 2,400 1,568 Total Train station maintenance 59,650 59,650 57,544 Total highways and streets 2,876,546 2,876,546 2,782,979 TOTAL EXPENDITURES $ 21,174,301 $ 22,044,301 $ 20,820,397 Page 88 VILLAGE OF DEERFIELD DETAILED SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual REVENUES Taxes Property $ 2,996,360 $ 2,996,360 $ 2,967,730 Intergovernmental 487,235 487,235 489,326 Contribution from library 727,581 727,581 727,581 Investment income 4,000 4,000 23,437 Total Revenues 4,215,176 4,215,176 4,208,074 EXPENDITURES Debt service Principal retirement 1,460,000 1,460,000 1,460,000 Interest and other 927,946 927,946 927,946 Fiscal charges 5,000 5,000 3,663 Total Expenditures 2,392,946 2,392,946 2,391,609 Excess (deficiency) of revenues over (under) expenditures 1,822,230 1,822,230 1,816,465 OTHER FINANCING SOURCES (USES) Transfers out (1,822,431)(1,822,431)(1,822,429) Total Other Financing Sources (Uses)(1,822,431)(1,822,431)(1,822,429) Net Change in Fund Balance $ (201)$ (201)(5,964) FUND BALANCE - Beginning of Year 177,263 FUND BALANCE - END OF YEAR $ 171,299 Page 89 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE REPLACEMENT FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual REVENUES Taxes Home rule sales $ 1,100,000 $ 1,100,000 $ 1,084,244 Food and beverage 500,000 500,000 607,914 Intergovernmental 290,000 290,000 11,905 Investment income 10,000 10,000 121,172 Miscellaneous 300,000 300,000 414,707 Total Revenues 2,200,000 2,200,000 2,239,942 EXPENDITURES Capital outlay Contractual services 1,292,000 1,292,000 734,522 Construction 4,502,515 4,502,515 4,186,240 Total Expenditures 5,794,515 5,794,515 4,920,762 Excess (deficiency) of revenues over (under) expenditures (3,594,515)(3,594,515)(2,680,820) OTHER FINANCING SOURCES (USES) Transfers in 4,000,000 4,000,000 4,087,145 Total Other Financing Sources (Uses)4,000,000 4,000,000 4,087,145 Net Change in Fund Balance $ 405,485 $ 405,485 1,406,325 FUND BALANCE - Beginning of Year 4,121,126 FUND BALANCE - END OF YEAR $ 5,527,451 Page 90 VILLAGE OF DEERFIELD COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS As of December 31, 2018 Motor Fuel Tax Enhanced 911 2011B Debt Service Sinking Bond Proceeds Total Nonmajor Governmental Funds ASSETS Cash and investments $ 790,902 $ 1,200,785 $ 5,216,440 $ 2,966,865 $ 10,174,992 Receivables Accounts - 164,771 - - 164,771 Accrued interest 610 1,164 42,304 - 44,078 Due from other governments 40,787 ---40,787 TOTAL ASSETS $ 832,299 $ 1,366,720 $ 5,258,744 $ 2,966,865 $ 10,424,628 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ -$ 1,812 $-$-$ 1,812 Total Liabilities -1,812 --1,812 Fund Balances Restricted for maintenance of roadways 832,299 - - - 832,299 Restricted for public safety - 1,364,908 - - 1,364,908 Restricted for debt service - - 5,258,744 - 5,258,744 Assigned to capital projects ---2,966,865 2,966,865 Total Fund Balances 832,299 1,364,908 5,258,744 2,966,865 10,422,816 TOTAL LIABILITIES AND FUND BALANCES $ 832,299 $ 1,366,720 $ 5,258,744 $ 2,966,865 $ 10,424,628 Page 91 VILLAGE OF DEERFIELD COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2018 Motor Fuel Tax Enhanced 911 2011B Debt Service Sinking Bond Proceeds Total Nonmajor Governmental Funds REVENUES Property taxes $ - $ - $ 725,000 $ - $ 725,000 Intergovernmental 480,661 - - - 480,661 Charges for services - 658,996 - - 658,996 Investment income 11,183 19,978 79,058 50,470 160,689 Total Revenues 491,844 678,974 804,058 50,470 2,025,346 EXPENDITURES Current General government - - 735 - 735 Public safety - 247,517 - - 247,517 Capital Outlay - 138,014 - - 138,014 Debt Service Interest and other ---87,450 87,450 Total Expenditures -385,531 735 87,450 473,716 Excess (deficiency) of revenues over expenditures 491,844 293,443 803,323 (36,980)1,551,630 OTHER FINANCING SOURCES (USES) Transfers out - - -(3,087,145)(3,087,145) Issuance of general obligation bonds - - - 5,970,000 5,970,000 Premium on debt issued ---120,990 120,990 Total Other Financing Sources (Uses)---3,003,845 3,003,845 Net Change in Fund Balances 491,844 293,443 803,323 2,966,865 4,555,475 FUND BALANCES - Beginning of Year 340,455 1,071,465 4,455,421 -5,867,341 FUND BALANCES - END OF YEAR $ 832,299 $ 1,364,908 $ 5,258,744 $ 2,966,865 $ 10,422,816 Page 92 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual REVENUES Intergovernmental Allotments earned $ 470,000 $ 470,000 $ 480,661 Investment income 2,000 2,000 11,183 Total Revenues 472,000 472,000 491,844 EXPENDITURES Highway and Streets Total Expenditures --- Net Change in Fund Balance $ 472,000 $ 472,000 491,844 FUND BALANCE - Beginning of Year 340,455 FUND BALANCE - END OF YEAR $ 832,299 Page 93 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - ENHANCED 911 FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual REVENUES Charges for Services Other charges $ 320,000 $ 320,000 $ 658,996 Investment income 7,500 7,500 19,978 Total Revenues 327,500 327,500 678,974 EXPENDITURES Public Safety Contractual services 290,168 290,168 242,292 Utilities 11,250 11,250 5,225 Capital Outlay 148,014 148,014 138,014 Total Expenditures 449,432 449,432 385,531 Net Change in Fund Balance $ (121,932)$ (121,932)293,443 FUND BALANCE - Beginning of Year 1,071,465 FUND BALANCE - END OF YEAR $ 1,364,908 Page 94 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - 2011B DEBT SERVICE SINKING FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual REVENUES Property taxes $ 725,000 $ 725,000 $ 725,000 Investment income 70,000 70,000 79,058 Total Revenues 795,000 795,000 804,058 EXPENDITURES General Government: Contractual services 1,500 1,500 735 Total Expenditures 1,500 1,500 735 Excess (deficiency) of revenues over (under) expenditures 793,500 793,500 803,323 OTHER FINANCING SOURCES (USES) Transfers out (50,000)(50,000)- Total Other Financing Sources (Uses)(50,000)(50,000)- Net Change in Fund Balance $ 743,500 $ 743,500 803,323 FUND BALANCE - Beginning of Year 4,455,421 FUND BALANCE - END OF YEAR $ 5,258,744 Page 95 VILLAGE OF DEERFIELD DETAILED SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - BOND PROCEEDS For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual REVENUES Investment income $ -$-$ 50,470 Total Revenues --50,470 EXPENDITURES Debt Service Interest and other --87,450 Total Expenditures --87,450 Excess (deficiency) of revenues over (under) expenditures --(36,980) OTHER FINANCING SOURCES (USES) Transfers out (3,000,000)(3,000,000)(3,087,145) Issuance of general obligation bonds 6,000,000 6,000,000 5,970,000 Premium on debt issued --120,990 Total Other Financing Sources (Uses)3,000,000 3,000,000 3,003,845 Net Change in Fund Balance $ 3,000,000 $ 3,000,000 2,966,865 FUND BALANCE - Beginning of Year - FUND BALANCE - END OF YEAR $ 2,966,865 Page 96 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATER FUND For the Year Ended December 31, 2018 Original Final Total OPERATING REVENUES Charges for services Water sales 4,590,000$ 4,590,000$ 4,241,528$ Miscellaneous Permits and fees 40,000 40,000 48,656 Penalties 30,000 30,000 35,523 Other 69,500 69,500 74,062 Total operating revenues 4,729,500 4,729,500 4,399,769 OPERATING EXPENSES Administration 687,392 687,392 540,938 Operations Distribution 2,784,400 2,784,400 2,495,106 Maintenance - mains and fire hydrants 688,700 688,700 554,641 Maintenance - meters 226,900 226,900 239,174 Total operating expenses excluding depreciation 4,387,392 4,387,392 3,829,859 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 342,108 342,108 569,910 Depreciation - - 509,488 OPERATING INCOME (LOSS) 342,108 342,108 60,422 CONTRIBUTIONS Contributions - - 404,341 CHANGE IN NET POSITION 342,108$ 342,108$ 464,763 NET POSITION - BEGINNING OF YEAR (as restated)19,370,076 NET POSITION - END OF YEAR 19,834,839$ Budgeted Amounts Page 97 VILLAGE OF DEERFIELD SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER FUND For the Year Ended December 31, 2018 Original Final Actual ADMINISTRATION Personnel services 377,650$ 377,650$ 246,783$ Training and development 2,250 2,250 2,698 Contractual services 218,837 218,837 220,266 Commodities 5,500 5,500 8,564 Utilities 8,215 8,215 6,990 Capital Outlay 74,940 74,940 55,637 Total administration 687,392 687,392 540,938 OPERATIONS Distribution Personnel services 146,100 146,100 128,953 Contractual services 48,000 48,000 52,879 Commodities 2,492,800 2,492,800 2,235,092 Utilities 92,500 92,500 73,199 Capital Outlay 5,000 5,000 4,983 Total distribution 2,784,400 2,784,400 2,495,106 Main and fire hydrant maintenance Personnel services 397,000 397,000 311,916 Contractual services 121,000 121,000 74,610 Commodities 166,200 166,200 164,180 Capital outlay 4,500 4,500 3,935 Total main and fire hydrant maintenance 688,700 688,700 554,641 Meter maintenance Personnel services 105,900 105,900 113,508 Contractual services 35,000 35,000 24,107 Commodities 4,000 4,000 1,792 Capital outlay 82,000 82,000 99,767 Total meter maintenance 226,900 226,900 239,174 Total operations 3,700,000 3,700,000 3,288,921 TOTAL OPERATING EXPENSES 4,387,392$ 4,387,392$ 3,829,859$ Budgeted Amounts Page 98 VILLAGE OF DEERFIELD SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION WATER FUND For the Year Ended December 31, 2018 Balances Balances December 31, December 31, 2017 Additions Retirements 2018 Land 1,877,956$ -$ -$ 1,877,956$ Construction in progress 19,641 132,528 19,641 132,528 Buildings 4,180,123 - - 4,180,123 Water system improvements 18,755,633 291,454 18,161 19,028,926 Equipment and vehicles 626,490 - - 626,490 TOTAL 25,459,843$ 423,982$ 37,802$ 25,846,023$ Balances Balances December 31, December 31, 2017 Additions Retirements 2018 Buildings 2,109,165$ 88,456$ -$ 2,197,621$ Water system improvements 2,852,322 405,152 18,161 3,239,313 Equipment and vehicles 531,209 15,882 - 547,091 TOTAL 5,492,696$ 509,490$ 18,161$ 5,984,025$ NET ASSET VALUE 19,861,998$ Assets Accumulated Depreciation Page 99 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended December 31, 2018 Original Final Total OPERATING REVENUES Charges for services Sewer charges 3,051,500$ 3,051,500$ 2,917,006$ Miscellaneous Miscellaneous - - - Permits and fees 15,000 15,000 10,200 Penalties 30,000 30,000 30,682 Other 5,000 5,000 583 Total operating revenues 3,101,500 3,101,500 2,958,471 OPERATING EXPENSES Administration 650,707 650,707 331,286 Operations Treatment plant 1,717,560 1,717,560 1,671,567 Cleaning and maintenance 371,100 371,100 317,402 Construction 379,000 379,000 395,795 Total operating expenses excluding depreciation 3,118,367 3,118,367 2,716,050 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (16,867) (16,867) 242,421 Depreciation - - 1,013,199 OPERATING INCOME (LOSS) (16,867) (16,867) (770,778) NON-OPERATING REVENUES (EXPENSES) Investment income 3,500 3,500 9,836 Interest and other (999,431) (999,431) (985,572) Total non-operating revenues (expenses)(995,931) (995,931) (975,736) INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS (1,012,798) (1,012,798) (1,746,514) CONTRIBUTIONS AND TRANSFERS Transfers in 1,822,431 1,822,431 1,822,429 Contributions - - 393,015 Net contributions and transfers 1,822,431 1,822,431 2,215,444 CHANGE IN NET POSITION 809,633$ 809,633$ 468,930 NET POSITION - BEGINNING OF YEAR (as restated) 11,667,996 NET POSITION - END OF YEAR 12,136,926$ Budgeted Amounts Page 100 VILLAGE OF DEERFIELD SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended December 31, 2018 Original Final Actual ADMINISTRATION Personnel services 272,950$ 272,950$ (16,395)$ Training and development 2,500 2,500 860 Contractual services 272,050 272,050 250,665 Commodities 5,050 5,050 6,247 Utilities 4,225 4,225 3,691 Capital outlay 93,932 93,932 86,218 Total administration 650,707 650,707 331,286 OPERATIONS Treatment plant Personnel services 944,525 944,525 974,434 Training and development 11,400 11,400 5,600 Contractual services 269,607 269,607 206,878 Commodities 111,000 111,000 93,956 Utilities 304,985 304,985 320,209 Miscellaneous 19,000 19,000 19,000 Capital Outlay 57,043 57,043 51,490 Total treatment plant 1,717,560 1,717,560 1,671,567 Cleaning and maintenance Personnel services 254,600 254,600 231,605 Contractual services 99,000 99,000 70,363 Commodities 17,500 17,500 15,434 Total cleaning and maintenance 371,100 371,100 317,402 Construction Personnel services 301,300 301,300 318,726 Contractual services 20,500 20,500 25,084 Commodities 57,200 57,200 51,985 Capital Outlay - - - Total construction 379,000 379,000 395,795 Total operations 2,467,660 2,467,660 2,384,764 TOTAL OPERATING EXPENSES 3,118,367$ 3,118,367$ 2,716,050$ Budgeted Amounts Page 101 VILLAGE OF DEERFIELD SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION SEWERAGE FUND For the Year Ended December 31, 2018 Balances Balances December 31, December 31, 2017 Additions Retirements 2018 Sewer system 6,121,498$ 393,015$ -$ 6,514,513$ Buildings and improvements 41,005,066 - - 41,005,066 TOTAL 47,126,564$ 393,015$ -$ 47,519,579$ Balances Balances December 31, December 31, 2017 Additions Retirements 2018 Sewer system 1,674,564$ 140,370$ -$ 1,814,934$ Buildings and improvements 5,179,648 872,828 - 6,052,476 TOTAL 6,854,212$ 1,013,198$ -$ 7,867,410 NET ASSET VALUE 39,652,169$ Assets Accumulated Depreciation Page 102 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL REFUSE FUND For the Year Ended December 31, 2018 Original Final Total OPERATING REVENUES Charges for services Refuse billing 525,850$ 525,850$ 538,185$ Miscellaneous 17,000 17,000 13,551 Total operating revenues 542,850 542,850 551,736 OPERATING EXPENSES Operations Personnel services 115,250 115,250 65,771 Contractual services 1,353,900 1,353,900 1,344,893 Commodities 24,700 24,700 15,829 Capital outlay 13,748 13,748 13,748 Total operating expenses excluding depreciation 1,507,598 1,507,598 1,440,241 OPERATING INCOME (LOSS)(964,748) (964,748) (888,505) NON-OPERATING REVENUES (EXPENSES) Investment income 1,700 1,700 8,789 Total non-operating revenues (expenses)1,700 1,700 8,789 INCOME (LOSS) BEFORE TRANSFERS (963,048) (963,048) (879,716) TRANSFERS Transfers in 955,984 955,984 955,984 CHANGE IN NET POSITION (7,064)$ (7,064)$ 76,268 NET POSITION - BEGINNING OF YEAR 536,171 NET POSITION - END OF YEAR 612,439$ Budgeted Amounts Page 103 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended December 31, 2018 Original Final Total OPERATING REVENUES Charges for services Parking lot fees 288,000$ 288,000$ 294,221$ Total operating revenues 288,000 288,000 294,221 OPERATING EXPENSES Operations 341,850 341,850 321,272 Depreciation - - 26,737 Total operating expenses 341,850 341,850 348,009 OPERATING INCOME (LOSS) (53,850) (53,850) (53,788) NON-OPERATING REVENUES (EXPENSES) Investment income 2,000 2,000 5,342 Total non-operating revenues (expenses)2,000 2,000 5,342 CHANGE IN NET POSITION (51,850)$ (51,850)$ (48,446) NET POSITION - BEGINNING OF YEAR 1,364,333 NET POSITION - END OF YEAR 1,315,887$ Budgeted Amounts Page 104 VILLAGE OF DEERFIELD SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended December 31, 2018 Original Final Actual OPERATIONS Parking lots - village and federal funds Personnel services 23,000$ 23,000$ 20,422$ Contractual services 178,400 178,400 165,194 Commodities 750 750 - Utilities 3,300 3,300 2,445 Total parking lots - village and federal funds 205,450 205,450 188,061 Parking lots - village construction Personnel services 23,000 23,000 20,422 Contractual services 107,400 107,400 109,959 Commodities 1,000 1,000 - Utilities 5,000 5,000 2,830 Total treatment plant 136,400 136,400 133,211 TOTAL OPERATING EXPENSES 341,850$ 341,850$ 321,272$ Budgeted Amounts Page 105 VILLAGE OF DEERFIELD SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION COMMUTER PARKING LOT FUND For the Year Ended December 31, 2018 Balances Balances December 31, December 31, 2017 Additions Retirements 2018 Land 77,500$ -$ -$ 77,500$ Parking lot improvements 1,950,830 - - 1,950,830 TOTAL 2,028,330$ -$ -$ 2,028,330$ Balances Balances December 31, December 31, 2017 Additions Retirements 2018 Parking lot improvements 952,629$ 26,739$ -$ 979,368$ TOTAL 952,629$ 26,739$ -$ 979,368 NET ASSET VALUE 1,048,962$ Assets Accumulated Depreciation Page 106 VILLAGE OF DEERFIELD COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS As of December 31, 2018 Garage Fund Vehicle & Equipment Replacement Totals ASSETS Current Assets Cash and investments $ 484 $ 5,809,298 $ 5,809,782 Receivables Accounts - billed 2,970 - 2,970 Accrued interest - 6,025 6,025 Prepaid items 7,061 - 7,061 Inventory 80,022 -80,022 Total Current Assets 90,537 5,815,323 5,905,860 Noncurrent Assets Capital assets Property and equipment - 4,795,238 4,795,238 Less: Accumulated depreciation -(3,143,116)(3,143,116) Total Noncurrent Assets -1,652,122 1,652,122 Total Assets 90,537 7,467,445 7,557,982 LIABILITIES Current Liabilities Accounts payable 15,948 27,275 43,223 Accrued payroll 8,018 - 8,018 Compensated absences payable 20,850 -20,850 Total Current Liabilities 44,816 27,275 72,091 Noncurrent Liabilities Compensated absences payable 3,096 -3,096 Total Noncurrent Liabilities 3,096 -3,096 Total Liabilities 47,912 27,275 75,187 NET POSITION Net investment in capital assets - 1,652,122 1,652,122 Unrestricted 42,625 5,788,048 5,830,673 TOTAL NET POSITION $ 42,625 $ 7,440,170 $ 7,482,795 Page 107 VILLAGE OF DEERFIELD COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Garage Fund Vehicle & Equipment Replacement Totals OPERATING REVENUES Billings $ 392,043 $ 797,871 $ 1,189,914 Miscellaneous 9,654 -9,654 Total Operating Revenues 401,697 797,871 1,199,568 OPERATING EXPENSES Operations 400,596 - 400,596 Capital outlay -194,294 194,294 Total Operating Expenses 400,596 194,294 594,890 Operating Income (Loss) Before Depreciation 1,101 603,577 604,678 Depreciation -326,430 326,430 Operating Income (Loss)1,101 277,147 278,248 NONOPERATING REVENUES (EXPENSES) Loss on sale of capital assets -(25,284)(25,284) Investment income -99,988 99,988 Total Nonoperating Revenues (Expenses)-74,704 74,704 Income (Loss) Before Contributions 1,101 351,851 352,952 Change in net position 1,101 351,851 352,952 NET POSITION - Beginning of Year 41,524 7,088,319 7,129,843 NET POSITION - END OF YEAR $ 42,625 $ 7,440,170 $ 7,482,795 Page 108 VILLAGE OF DEERFIELD COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Garage Fund Vehicle & Equipment Replacement Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services $ 393,880 $ 797,473 $ 1,191,353 Receipts from miscellaneous revenue 9,654 - 9,654 Payments to suppliers (157,324)(201,043)(358,367) Payments to employees (251,347)-(251,347) Net Cash Flows From Operating Activities (5,137)596,430 591,293 CASH FLOWS FROM INVESTING ACTIVITIES Investment income -99,988 99,988 Net Cash Flows From Investing Activities -99,988 99,988 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets -(115,906)(115,906) Net Cash Flows From Capital and Related Financing Activities -(115,906)(115,906) Net Change in Cash and Cash Equivalents (5,137)580,512 575,375 CASH AND CASH EQUIVALENTS - Beginning of Year 5,621 5,228,786 5,234,407 CASH AND CASH EQUIVALENTS - END OF YEAR $ 484 $ 5,809,298 $ 5,809,782 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)$ 1,101 $ 277,147 $ 278,248 Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows From Operating Activities Depreciation - 326,430 326,430 Changes in assets and liabilities Accounts receivable 1,837 (398)1,439 Prepaid expenses (44)-(44) Inventories (2,119)-(2,119) Accounts payable (8,461)(6,749)(15,210) Accrued payroll (171)-(171) Compensated absences payable 2,720 -2,720 NET CASH FLOWS FROM OPERATING ACTIVITIES $ (5,137)$ 596,430 $ 591,293 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None Page 109 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL GARAGE FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual OPERATING REVENUES Interfund services Billings $ 395,000 $ 395,000 $ 392,043 Miscellaneous 10,000 10,000 9,654 Total Operating Revenues 405,000 405,000 401,697 OPERATING EXPENSES Operations 408,550 408,550 400,596 Total Operating Expenses 408,550 408,550 400,596 Operating Income (3,550)(3,550)1,101 NON-OPERATING REVENUES Investment income 100 100 - Total Non-Operating Revenues 100 100 - Change in net position $ (3,450)$ (3,450)1,101 NET POSITION - Beginning of Year 41,524 NET POSITION - END OF YEAR $ 42,625 Page 110 VILLAGE OF DEERFIELD SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL GARAGE FUND For the Year Ended December 31, 2018 Original Final Actual OPERATING EXPENSES Public works department Personnel services 254,500$ 254,500$ 253,896$ Training and development 3,000 3,000 761 Contractural services 37,700 37,700 28,343 Commodities 104,800 104,800 112,723 Utilities 4,350 4,350 3,173 Capital Outlay 4,200 4,200 1,700 TOTAL OPERATING EXPENSES 408,550$ 408,550$ 400,596$ Budgeted Amounts Page 111 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL VEHICLE & EQUIPMENT REPLACEMENT FUND For the Year Ended December 31, 2018 Budgeted Amounts Original Final Actual OPERATING REVENUES Interfund services Billings $ 797,871 $ 797,871 $ 797,871 Total Operating Revenues 797,871 797,871 797,871 OPERATING EXPENSES Capital outlay 617,625 617,625 310,201 Less capital assets capitalized - -(115,907) Depreciation --326,430 Total Operating Expenses 617,625 617,625 520,724 Operating Income 180,246 180,246 277,147 NON-OPERATING REVENUES Loss on sale of capital assets - -(25,284) Investment income 35,000 35,000 99,988 Total Non-Operating Revenues 35,000 35,000 74,704 Change in net position $ 215,246 $ 215,246 351,851 NET POSITION - Beginning of Year 7,088,319 NET POSITION - END OF YEAR $ 7,440,170 Page 112 VILLAGE OF DEERFIELD SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION - BUDGET AND ACTUAL POLICE PENSION TRUST FUND For the Year Ended December 31, 2018 2018 Original Budget Final Budget Actual Additions Contributions Contributions - employer $ 1,100,000 $ 1,100,000 $ 1,100,000 Contributions - employee 395,000 395,000 418,230 Total contributions 1,495,000 1,495,000 1,518,230 Investment Income Net appreciation in fair value of investments 500,000 500,000 (2,659,485) Interest and dividends earned on investments 700,000 700,000 1,064,420 Total investment income 1,200,000 1,200,000 (1,595,065) Less Investment expense 32,000 32,000 17,980 Net investment income 1,168,000 1,168,000 (1,613,045) Total additions 2,663,000 2,663,000 (94,815) Deductions Pension payments 3,105,000 3,105,000 2,805,095 Separation refunds 15,000 15,000 - Administrative 47,500 47,500 39,371 Total deductions 3,167,500 3,167,500 2,844,466 Change in net position $ (504,500)$ (504,500)(2,939,281) Net position, beginning of year 47,918,197 Net position, end of year $ 44,978,916 Page 113 VILLAGE OF DEERFIELD COMBINING SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2018 Balance Balance December 31, December 31, 2017 Additions Deletions 2018 All Funds Assets Cash and cash equivalents 2,630,929$ 1,234,943$ 691,369$ 3,174,503$ Receivables - accounts 2,500 - 2,500 - Receivables - accrued interest 165 35 - 200 Total assets 2,633,594$ 1,234,978$ 693,869$ 3,174,703$ Liabilities Accounts payable 8,749$ 704,050$ 702,828$ 9,971$ Deposits payable 2,462,016 1,172,517 671,416 2,963,117 Other payables 162,829 53,610 14,824 201,615 Total liabilities 2,633,594$ 1,930,177$ 1,389,068$ 3,174,703$ Deposit Fund Assets Cash and cash equivalents 2,467,216$ 1,181,651$ 675,780$ 2,973,087$ Receivables - accounts 2,500 - 2,500 - Total assets 2,469,716$ 1,181,651$ 678,280$ 2,973,087$ Liabilities Accounts payable 7,700$ 689,695$ 687,425$ 9,970$ Deposits payable 2,462,016 1,172,517 671,416 2,963,117 Total liabilities 2,469,716$ 1,862,212$ 1,358,841$ 2,973,087$ East Shore Radio Network Fund Assets Cash and cash equivalents 163,713$ 53,292$ 15,589$ 201,416$ Receivables - accrued interest 165 35 - 200 Total assets 163,878$ 53,327$ 15,589$ 201,616$ Liabilities Accounts payable 1,049$ 14,355$ 15,403$ 1$ Other payables 162,829 53,610 14,824 201,615 Total liabilities 163,878$ 67,965$ 30,227$ 201,616$ Page 114 L O N G-T E R M D E B T R E Q U I R E M E N T S Date of Issue Date of Maturity Authorized Issue $12,500,000 Denomination of Bonds $5,000 Interest Rates 0.80% to 5.50% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2018 585,000$ 385,380$ 970,380$ 2019 192,690$ 2019 192,690$ 2019 600,000 364,320 964,320 2020 182,160 2020 182,160 2020 610,000 341,220 951,220 2021 170,610 2021 170,610 2021 625,000 316,210 941,210 2022 158,105 2022 158,105 2022 645,000 289,335 934,335 2023 144,667 2023 144,668 2023 660,000 260,310 920,310 2024 130,155 2024 130,155 2024 680,000 229,290 909,290 2025 114,645 2025 114,645 2025 700,000 195,970 895,970 2026 97,985 2026 97,985 2026 720,000 160,270 880,270 2027 80,135 2027 80,135 2027 735,000 122,830 857,830 2028 61,415 2028 61,415 2028 750,000 83,875 833,875 2029 41,937 2029 41,938 2029 775,000 42,625 817,625 2030 21,312 2030 21,313 8,085,000$ 2,791,635$ 10,876,635$ 1,395,816$ 1,395,819$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2010A As of December 31, 2018 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS November 3, 2010 December 1, 2030 Page 115 Date of Issue Date of Maturity Authorized Issue $9,900,000 Denomination of Bonds $5,000 Interest Rates 1.00% to 3.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2018 325,000$ 212,865$ 537,865$ 2019 106,433$ 2019 106,432$ 2019 340,000 206,365 546,365 2020 103,183 2020 103,182 2020 365,000 199,565 564,565 2021 99,783 2021 99,782 2021 380,000 192,265 572,265 2022 96,133 2022 96,132 2022 400,000 183,715 583,715 2023 91,858 2023 91,857 2023 425,000 174,115 599,115 2024 87,058 2024 87,057 2024 450,000 163,490 613,490 2025 81,745 2025 81,745 2025 475,000 151,340 626,340 2026 75,670 2026 75,670 2026 500,000 138,277 638,277 2027 69,139 2027 69,138 2027 355,000 123,277 478,277 2028 61,639 2028 61,638 2028 1,280,000 112,628 1,392,628 2029 56,314 2029 56,314 2029 1,335,000 74,228 1,409,228 2030 37,114 2030 37,114 2030 990,000 32,175 1,022,175 2031 16,088 2031 16,087 7,620,000$ 1,964,305$ 9,584,305$ 982,157$ 982,148$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2011A As of December 31, 2018 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS October 17, 2011 December 1, 2031 Page 116 Date of Issue Date of Maturity Authorized Issue $12,500,000 Denomination of Bonds $5,000 Interest Rates 4% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2018 -$ 499,200$ 499,200$ 2019 249,600$ 2019 249,600$ 2019 - 499,200 499,200 2020 249,600 2020 249,600 2020 - 499,200 499,200 2021 249,600 2021 249,600 2021 - 499,200 499,200 2022 249,600 2022 249,600 2022 - 499,200 499,200 2023 249,600 2023 249,600 2023 - 499,200 499,200 2024 249,600 2024 249,600 2024 - 499,200 499,200 2025 249,600 2025 249,600 2025 - 499,200 499,200 2026 249,600 2026 249,600 2026 - 499,200 499,200 2027 249,600 2027 249,600 2027 12,480,000 499,200 12,979,200 2028 249,600 2028 249,600 12,480,000$ 4,992,000$ 17,472,000$ 2,496,000$ 2,496,000$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2011B As of December 31, 2018 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS October 17, 2011 December 1, 2028 Page 117 Date of Issue Date of Maturity Authorized Issue $10,000,000 Denomination of Bonds $5,000 Interest Rates 1.25% to 2.75% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2018 440,000$ 233,075$ 673,075$ 2019 116,537$ 2019 116,538$ 2019 455,000 227,575 682,575 2020 113,787 2020 113,788 2020 475,000 220,750 695,750 2021 110,375 2021 110,375 2021 495,000 212,438 707,438 2022 106,219 2022 106,219 2022 515,000 203,775 718,775 2023 101,887 2023 101,888 2023 540,000 193,475 733,475 2024 96,737 2024 96,738 2024 555,000 182,674 737,674 2025 91,337 2025 91,337 2025 580,000 170,188 750,188 2026 85,094 2026 85,094 2026 600,000 157,138 757,138 2027 78,569 2027 78,569 2027 455,000 142,138 597,138 2028 71,069 2028 71,069 2028 1,380,000 130,762 1,510,762 2029 65,381 2029 65,381 2029 1,425,000 92,812 1,517,812 2030 46,406 2030 46,406 2030 1,950,000 53,625 2,003,625 2031 26,812 2031 26,813 9,865,000$ 2,220,425$ 12,085,425$ 1,110,210$ 1,110,215$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2012 As of December 31, 2018 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS February 21, 2012 December 1, 2031 Page 118 Date of Issue Date of Maturity Authorized Issue $9,075,000 Denomination of Bonds $5,000 Interest Rates 2.00% to 2.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2018 335,000$ 104,118$ 439,118$ 2019 52,059$ 2019 52,059$ 2019 340,000 97,418 437,418 2020 48,709 2020 48,709 2020 345,000 90,618 435,618 2021 45,309 2021 45,309 2021 350,000 83,718 433,718 2022 41,859 2022 41,859 2022 350,000 76,718 426,718 2023 38,359 2023 38,359 2023 355,000 69,718 424,718 2024 34,859 2024 34,859 2024 360,000 62,618 422,618 2025 31,309 2025 31,309 2025 365,000 55,416 420,416 2026 27,708 2026 27,708 2026 375,000 48,118 423,118 2027 24,059 2027 24,059 2027 380,000 40,618 420,618 2028 20,309 2028 20,309 2028 390,000 32,542 422,542 2029 16,271 2029 16,271 2029 390,000 23,962 413,962 2030 11,981 2030 11,981 2030 675,000 15,183 690,183 2031 7,592 2031 7,591 5,010,000$ 800,765$ 5,810,765$ 400,383$ 400,382$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2013 As of December 31, 2018 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS January 3, 2013 December 1, 2031 Page 119 Date of Issue May 19,2015 Date of Maturity Authorized Issue $9,575,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 3.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2018 415,000$ 255,050$ 670,050$ 2019 127,525$ 2019 127,525$ 2019 430,000 242,600 672,600 2020 121,300 2020 121,300 2020 440,000 229,700 669,700 2021 114,850 2021 114,850 2021 455,000 216,500 671,500 2022 108,250 2022 108,250 2022 470,000 202,850 672,850 2023 101,425 2023 101,425 2023 485,000 188,750 673,750 2024 94,375 2024 94,375 2024 495,000 174,200 669,200 2025 87,100 2025 87,100 2025 510,000 159,350 669,350 2026 79,675 2026 79,675 2026 530,000 144,050 674,050 2027 72,025 2027 72,025 2027 545,000 128,150 673,150 2028 64,075 2028 64,075 2028 560,000 111,800 671,800 2029 55,900 2029 55,900 2029 575,000 95,000 670,000 2030 47,500 2030 47,500 2030 595,000 77,750 672,750 2031 38,875 2031 38,875 2031 610,000 59,900 669,900 2032 29,950 2032 29,950 2032 630,000 41,600 671,600 2033 20,800 2033 20,800 2033 650,000 21,125 671,125 2034 10,562 2034 10,563 8,395,000$ 2,348,375$ 10,743,375$ 1,174,187$ 1,174,188$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2015 As of December 31, 2018 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS December 1, 2034 Page 120 Date of Issue Date of Maturity Authorized Issue $5,700,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 4.003.75 Principal Maturity Date December 1 Payable at U.S. Bank National Association, Chicago, Illinois. Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2018 255,000$ 179,238$ 434,238$ 2019 89,619$ 2019 89,619$ 2019 265,000 171,588 436,588 2020 85,794 2020 85,794 2020 270,000 163,638 433,638 2021 81,819 2021 81,819 2021 280,000 155,538 435,538 2022 77,769 2022 77,769 2022 290,000 147,138 437,138 2023 73,569 2023 73,569 2023 300,000 138,438 438,438 2024 69,219 2024 69,219 2024 310,000 129,438 439,438 2025 64,719 2025 64,719 2025 320,000 120,138 440,138 2026 60,069 2026 60,069 2026 330,000 110,538 440,538 2027 55,269 2027 55,269 2027 345,000 99,812 444,812 2028 49,906 2028 49,906 2028 - 88,600 88,600 2029 44,300 2029 44,300 2029 - 88,600 88,600 2030 44,300 2030 44,300 2030 - 88,600 88,600 2031 44,300 2031 44,300 2031 455,000 88,600 543,600 2032 44,300 2032 44,300 2032 475,000 73,812 548,812 2033 36,906 2033 36,906 2033 490,000 57,188 547,188 2034 28,594 2034 28,594 2034 510,000 38,812 548,812 2035 19,406 2035 19,406 2035 525,000 19,683 544,683 2036 9,842 2036 9,841 5,420,000$ 1,959,399$ 7,379,399$ 979,700$ 979,699$ Tax Levy Interest Due on FUTURE PRINCIPAL AND INTEREST REQUIREMENTS VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2017 As of December 31, 2018 February 28, 2017 December 1, 2036 Page 121 Date of Issue Date of Maturity Authorized Issue $5,970,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 4.00% Principal Maturity Date December 1 Payable at U.S. Bank National Association, Chicago, Illinois. Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2018 130,000$ 306,423$ 436,423$ 2019 202,158$ 2019 104,265$ 2019 235,000 203,330 438,330 2020 101,665 2020 101,665 2020 245,000 193,930 438,930 2021 96,965 2021 96,965 2021 255,000 184,130 439,130 2022 92,065 2022 92,065 2022 265,000 173,930 438,930 2023 86,965 2023 86,965 2023 275,000 163,330 438,330 2024 81,665 2024 81,665 2024 285,000 152,330 437,330 2025 76,165 2025 76,165 2025 295,000 140,930 435,930 2026 70,465 2026 70,465 2026 310,000 129,130 439,130 2027 64,565 2027 64,565 2027 320,000 119,830 439,830 2028 59,915 2028 59,915 2028 325,000 110,230 435,230 2029 55,115 2029 55,115 2029 335,000 100,480 435,480 2030 50,240 2030 50,240 2030 350,000 90,096 440,096 2031 45,048 2031 45,048 2031 360,000 79,246 439,246 2032 39,623 2032 39,623 2032 370,000 67,364 437,364 2033 33,682 2033 33,682 2033 385,000 55,154 440,154 2034 27,577 2034 27,577 2034 395,000 42,450 437,450 2035 21,225 2035 21,225 2035 410,000 29,020 439,020 2036 14,510 2036 14,510 2036 425,000 14,875 439,875 2037 7,437 2037 7,438 5,970,000$ 2,356,208$ 8,326,208$ 1,227,050$ 1,129,158$ FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2018 As of December 31, 2018 June 12, 2018 December 1, 2037 Page 122 Statistical Section Contents Page Financial Trends 123 - 132 Revenue Capacity 133 - 139 Debt Capacity 140 - 143 Demographic and Economic Information 144 - 146 Operating Information 147 - 148 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. This part of the Village of Deerfield, Illinois' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village's overall financial health. These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. These schedules contain information to help the reader assess the Village's most significant local revenue source, property tax. Additionally, the Village presents information to help readers assess the Village's most significant revenue source, the sales tax. These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future. These schedules offer demographic and economic indicators to help the reader understand the environment within the Village's financial activities take place. These schedules contain service and infrastructure data to help the reader understand how the Village's financial report relates to the services the Village provides and the activities it performs. Fiscal Year 2010 2011 2012 2013 GOVERNMENTAL ACTIVITIES Net investment in capital assets 66,174,872$ 64,483,632$ 51,392,981$ 55,359,465$ Restricted 1,698,902 1,833,178 1,864,620 2,000,978 Unrestricted 14,799,887 13,730,019 9,491,193 (3,773,495) TOTAL GOVERNMENTAL ACTIVITIES 82,673,661$ 80,046,829$ 62,748,794$ 53,586,948$ BUSINESS-TYPE ACTIVITIES Net investment in capital assets 25,794,886$ 28,525,266$ 47,891,247$ 59,834,517$ Unrestricted 1,332,314 649,610 113,829 140,855 TOTAL BUSINESS-TYPE ACTIVITIES 27,127,200$ 29,174,876$ 48,005,076$ 59,975,372$ PRIMARY GOVERNMENT Net investment in capital assets 91,969,758$ 93,008,898$ 84,682,839$ 86,323,125$ Restricted 1,698,902 1,833,178 1,864,620 2,000,978 Unrestricted 16,132,201 14,379,629 24,206,411 25,238,217 TOTAL PRIMARY GOVERNMENT 109,800,861$ 109,221,705$ 110,753,870$ 113,562,320$ The Village implemented GASB Statement No.68 in 2015, causing a reduction in unrestricted net position. * Eight months ended December 31, 2013. Data Source Audited Financial Statements NET POSITION BY COMPONENT LAST TEN FISCAL YEARS VILLAGE OF DEERFIELD Page 123 2013*2014 2015 2016 2017 2018 59,186,881$ 58,835,531$ 55,025,274$ 55,732,838$ 56,110,035$ 49,784,690$ 1,690,206 4,326,031 4,467,283 5,129,514 5,867,341 7,455,951 25,298,828 27,077,751 14,516,742 13,144,539 7,143,730 8,393,474 86,175,915$ 90,239,313$ 74,009,299$ 74,006,891$ 69,121,106$ 65,634,115$ 28,906,421$ 28,270,616$ 29,869,458$ 32,118,523$ 32,574,200$ 32,548,303$ 651,661 786,552 (194,463) 376,014 2,257,403 3,116,674 29,558,082$ 29,057,168$ 29,674,995$ 32,494,537$ 34,831,603$ 35,664,977$ 82,313,682$ 87,106,147$ 84,894,732$ 87,851,361$ 88,684,235$ 82,332,993$ 1,690,206 4,326,031 4,467,283 5,129,514 5,867,341 7,455,951 31,730,109 27,864,303 14,322,279 13,520,553 9,401,133 11,510,148 115,733,997$ 119,296,481$ 103,684,294$ 106,501,428$ 103,952,709$ 101,299,092$ Page 124 0 2010 2011 2012 2013 EXPENSES Governmental Activities General government 9,833,315$ 5,477,968$ 24,267,281$ 18,988,356$ Public safety 8,543,631 8,497,498 8,388,066 8,572,034 Highways and streets 10,985,018 7,749,726 6,602,895 5,753,656 Interest and fiscal charges 193,105 393,054 1,098,736 1,791,625 Total governmental activities expenses 29,555,069 22,118,246 40,356,978 35,105,671 Business-Type Activities Water 4,103,889 4,215,482 4,455,971 4,625,679 Sewerage 2,643,276 2,846,388 2,996,805 3,267,868 Refuse disposal 1,599,244 1,600,736 1,307,850 1,343,691 Commuter Parking 262,458 322,431 337,337 352,088 Total Business-type Activities Expenses 8,608,867 8,985,037 9,097,963 9,589,326 TOTAL PRIMARY GOVERNMENT EXPENSES 38,163,936$ 31,103,283$ 49,454,941$ 44,694,997$ PROGRAM REVENUES Governmental Activities Charges for Services General government 1,862,200$ 2,011,535$ 1,833,930$ 2,290,768$ Public Safety 866,510 873,947 986,382 1,047,217 Highways and streets 47,219 73,968 66,279 263,607 Interest - - - - Operating grants and Contributions 474,526 582,734 715,849 1,140,504 Capital Grants and Contributions 2,195,963 360,539 434,225 75,864 Total Governmental Activities Program Revenues 5,446,418 3,902,723 4,036,665 4,817,960 Business-Type Activities Charges for Services Water 3,567,809 3,777,700 3,891,387 4,295,580 Sewerage 2,320,123 2,450,088 2,499,701 2,892,170 Refuse disposal 622,629 608,475 461,887 476,926 Commuter parking 209,165 204,236 201,426 223,381 Capital grants and contributions - 2,963,996 19,620,003 12,566,460 6,719,726 10,004,495 26,674,404 20,454,517 12,166,144$ 13,907,218$ 30,711,069$ 25,272,477$ NET REVENUE (EXPENSE) Governmental Activities (24,108,651)$ (18,215,523)$ (36,320,313)$ (30,287,711)$ Business-Type Activities (1,889,141) 1,019,458 17,576,441 10,865,191 TOTAL PRIMARY GOVERNMENT NET REVENUE (EXPENSE)(25,997,792)$ (17,196,065)$ (18,743,872)$ (19,422,520)$ Last Ten Fiscal Years CHANGE IN NET POSITION VILLAGE OF DEERFIELD Fiscal Year TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES Total Business-Type Activities Program Revenues Page 125 2013*2014 2015 2016 2017 2018 5,755,847$ 7,756,784$ 8,182,572$ 8,938,512$ 10,097,910$ 9,106,754$ 6,256,914 9,189,101 11,870,633 11,516,466 10,868,594 10,796,954 6,208,891 6,286,456 8,065,953 12,905,603 13,068,419 9,194,654 628,554 685,495 1,113,073 918,603 1,008,199 1,095,898 18,850,206 23,917,836 29,232,231 34,279,184 35,043,122 30,194,260 3,153,643 4,345,300 4,517,289 4,405,066 4,098,233 4,339,113 3,147,664 4,691,951 4,533,170 4,996,664 3,960,118 4,648,489 953,301 1,440,045 1,433,697 1,449,954 1,322,473 1,435,418 243,017 331,951 284,789 306,583 301,514 348,009 7,497,625 10,809,247 10,768,945 11,158,267 9,682,338 10,771,029 26,347,831$ 34,727,083$ 40,001,176$ 45,437,451$ 44,725,460$ 40,965,289$ 1,811,306$ 3,812,004$ 2,214,956$ 2,706,969$ 2,538,758$ 2,808,343$ 783,151 1,167,096 1,218,489 1,221,896 1,127,634 1,465,852 234,034 442,918 606,549 417,398 301,855 575,536 - - - 711,369 586,016 686,907 890,860 612,569 445,554 464,020 472,113 480,661 58,791 1,306,043 442,690 6,853,567 949,252 77,526 3,778,142 7,340,630 4,928,238 12,375,219 5,975,628 6,094,825 3,006,491 3,763,753 3,701,281 4,058,510 4,211,302 4,241,528 2,065,472 2,645,264 2,724,235 2,853,730 2,936,590 2,917,006 324,969 500,449 513,672 515,496 526,418 538,185 187,386 226,450 270,799 277,048 292,829 294,221 1,802,087 173,695 2,249,741 2,922,849 1,058,155 797,356 7,386,405 7,309,611 9,459,728 10,627,633 9,025,294 8,788,296 11,164,547$ 14,650,241$ 14,387,966$ 23,002,852$ 15,000,922$ 14,883,121$ (15,072,064)$ (16,577,206)$ (24,303,993)$ (21,903,965)$ (29,067,494)$ (24,099,435)$ (111,220) (3,499,636) (1,309,217) (530,634) (657,044) (1,982,733) (15,183,284)$ (20,076,842)$ (25,613,210)$ (22,434,599)$ (29,724,538)$ (26,082,168)$ Page 126 VILLAGE OF DEERFIELD CHANGE IN NET POSITION (cont.) Last Ten Fiscal Years 0 2010 2011 2012 2013 GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities Taxes Property and replacement 8,618,052$ 2,278,574$ 2,822,939$ 4,410,633$ Home rule sales 2,525,183 2,725,330 3,121,749 3,665,374 Simplified telecommunications 326,528 644,129 1,752,850 1,430,126 3,097,643 4,396,881 4,684,153 3,438,882 Intergovernmental 4,995,509 5,281,422 5,968,953 8,474,800 Investment Income 166,844 92,855 115,175 117,770 Miscellaneous 393,359 169,500 556,459 252,924 Contributions - - - - Transfers (out) - - - - Total Governmental Activities 20,123,118 15,588,691 19,022,278 21,790,509 Business-Type Activities Property taxes 807,968 832,264 889,586 890,214 Investment Income 8,304 4,530 3,701 3,024 Miscellaneous 146,400 191,424 360,472 211,867 Transfers in - - - - Total Business-Type Activities 962,672 1,028,218 1,253,759 1,105,105 TOTAL PRIMARY GOVERNMENT 21,085,790$ 16,616,909$ 20,276,037$ 22,895,614$ CHANGE IN NET POSITION Governmental Activities (3,985,533)$ (2,626,832)$ (17,298,035)$ (8,497,202)$ Business-Type Activities (926,469) 2,047,676 18,830,200 11,970,296 TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION (4,912,002)$ (579,156)$ 1,532,165$ 3,473,094$ * Eight months ended December 31, 2013. Data Source Audited Financial Statements Fiscal Year Other Page 127 2013*2014 2015 2016 2017 2018 5,010,070$ 5,260,112$ 5,527,577$ 7,335,510$ 7,350,802$ 7,349,472$ 2,257,183 3,413,920 2,941,572 3,484,806 3,841,934 3,252,733 936,501 1,261,799 1,707,745 1,722,295 1,370,180 1,368,145 2,398,124 3,721,354 3,797,848 3,817,963 4,363,655 4,570,428 5,396,719 8,316,948 7,697,052 8,350,115 8,990,723 8,152,479 - (221,419) 130,060 191,929 393,675 759,659 279,991 704,909 676,294 431,172 646,776 109,854 - - 732,831 - - - - (1,817,019) (1,805,840) (2,770,464) (2,776,036) (2,778,413) 16,278,588 20,640,604 21,405,139 22,563,326 24,181,709 22,784,357 906,951 936,361 965,948 22 - - (4,588) (14,786) 4,055 4,753 10,848 23,967 174,010 260,128 218,479 226,012 207,226 213,257 - 1,817,019 1,805,840 2,770,464 2,776,036 2,778,413 1,076,373 2,998,722 2,994,322 3,001,251 2,994,110 3,015,637 17,354,961$ 23,639,326$ 24,399,461$ 25,564,577$ 27,175,819$ 25,799,994$ 1,206,524$ 4,063,398$ (2,898,854)$ 659,361$ (4,885,785)$ (1,315,078)$ 965,153 (500,914) 1,685,105 2,470,617 2,337,066 1,032,904 2,171,677$ 3,562,484$ (1,213,749)$ 3,129,978$ (2,548,719)$ (282,174)$ Page 128 Fiscal Year 2010 2011 2012 2013 GENERAL FUND Reserved 447,892$ 443,532$ -$ -$ Unreserved 15,619,459 16,566,828 - - Nonspendable for Note receivable - - 100,000 90,000 Inventory - - 55,190 27,824 Prepaid items - - 441,382 459,247 Advance - - - - Unrestricted Assigned for debt service - - 833,396 818,344 Assigned for capital projects - - 1,650,000 1,400,000 Subsequent year's budget - - - - Unassigned - - 16,206,557 17,002,357 TOTAL GENERAL FUND 16,067,351$ 17,010,360$ 19,286,525$ 19,797,772$ ALL OTHER GOVERNMENTAL FUNDS Reserved 1,698,902$ 6,927,256$ -$ -$ Unreserved, reported in Capital Project Funds 230,653 417,104 - - Restricted for Capital projects - - 14,581,925 1,515,401 Maintenance of roadways - - 601,423 633,057 Public safety - - 1,263,197 1,367,921 Debt service - - - - Unrestricted Assigned for Debt service - - 286,753 841,240 Capital projects - - 1,088,012 2,154,351 TOTAL ALL OTHER GOVERNMENTAL FUNDS 1,929,555$ 7,344,360$ 17,821,310$ 6,511,970$ *Eight months ended December 31, 2013. Data Source Audited Financial Statements gp y p resulted in a change in fund balance classification. The Village has not elected to report this change retroactively. FUND BALANCES OF GOVERNMENTAL FUNDS VILLAGE OF DEERFIELD LAST TEN FISCAL YEARS Page 129 2013*2014 2015 2016 2017 2018 -$ -$ -$ -$ $ - -$ - - - - - - 80,000 70,000 60,000 50,000 40,000 30,000 54,477 42,968 21,031 26,643 26,844 28,516 752,402 713,737 707,640 904,041 1,180,641 1,188,498 - - - 1,075,689 684,083 374,695 831,850 - - - - - 1,500,000 1,200,000 1,000,000 1,300,000 - - - - 2,960,593 2,117,018 606,765 949,698 16,815,607 19,667,419 15,200,930 14,963,328 16,561,166 17,391,240 20,034,336$ 21,694,124$ 19,950,194$ 20,436,719$ 19,099,499$ 19,962,647$ -$ -$ -$ -$ $ - -$ - - - - - - 40,280 - 696,658 - - - 325,768 927,908 388,546 360,593 340,455 832,299 1,364,438 1,214,895 1,130,293 1,124,743 1,071,465 1,364,908 - 2,183,228 2,948,444 3,644,178 4,455,421 5,258,744 1,473,632 25,299 58,021 111,920 177,263 171,299 749,533 2,276,297 4,707,033 5,935,979 4,121,126 8,494,316 3,953,651$ 6,627,627$ 9,928,995$ 11,177,413$ 10,165,730$ 16,121,566$ Page 130 2010 2011 2012 2013 REVENUES Taxes 19,562,915$ 15,326,336$ 18,350,644$ 12,220,016$ Licenses and permits 1,366,472 1,431,793 1,173,799 1,645,735 Intergovernmental 951,183 944,344 1,152,141 9,692,051 Charges for services 654,662 687,515 709,146 710,049 Fines and forfeitures 227,686 262,542 317,262 342,740 Contribution from library - - - 763,572 Investment income 166,844 92,855 115,175 117,770 Miscellaneous 821,396 715,868 1,219,949 1,113,205 Total revenues 23,751,158 19,461,253 23,038,116 26,605,138 EXPENDITURES General government 12,471,646 5,328,331 6,436,048 7,783,224 Public Safety 8,322,821 8,407,416 8,352,887 8,540,957 Highways and streets 2,916,045 3,032,200 3,091,770 2,806,358 Capital Outlay 6,207,466 8,278,643 23,114,852 24,479,003 Debt Service Principal 175,000 180,000 710,000 1,355,000 Interest 193,150 237,997 1,180,062 1,770,522 Total expenditures 30,286,128 25,464,587 42,885,619 46,735,064 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (6,534,970) (6,003,334) (19,847,503) (20,129,926) OTHER FINANCING SOURCES (USES) Transfers in 923,389 7,506,834 22,440,459 14,290,621 Transfers (out) (923,389) (7,506,834) (22,440,459) (14,290,621) Bonds issued - 12,500,000 32,400,000 9,075,000 Premium (discount) on bonds issued - (69,013) 79,791 253,502 Payment to refunded bonds escrow agent - - - - Sale of capital assets 94,690 30,161 20,827 3,331 Total Other Financing Sources (Uses) 94,690 12,461,148 32,500,618 9,331,833 NET CHANGE IN FUND BALANCES (6,440,280)$ 6,457,814$ 12,653,115$ (10,798,093)$ DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 1.53% 2.09% 4.75% 7.16% *Eight months ended December 31, 2013. Data Source Audited Financial Statements Fiscal Year CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS VILLAGE OF DEERFIELD Page 131 2013*2014 2015 2016 2017 2018 9,876,878$ 14,070,158$ 14,955,266$ 17,522,177$ 18,207,216$ 17,625,022$ 1,277,977 3,062,263 1,464,015 1,958,108 1,784,230 1,877,242 6,342,610 9,599,274 8,102,221 15,007,986 9,628,692 8,119,258 565,213 1,004,048 1,114,515 971,304 849,759 1,487,963 236,390 307,744 292,284 286,981 264,926 277,967 742,476 730,381 732,831 730,131 726,706 727,581 (164,823) (221,419) 130,060 191,929 344,598 659,671 998,549 1,218,373 1,348,025 1,555,393 1,572,755 1,338,187 19,875,270 29,770,822 28,139,217 38,224,009 33,378,882 32,112,891 5,063,339 7,353,449 8,266,520 8,906,902 9,406,290 8,826,989 6,117,121 8,963,170 9,136,003 9,054,499 9,336,602 9,458,681 2,326,884 2,924,874 2,816,855 2,749,322 2,985,820 2,782,979 5,280,135 2,777,322 11,958,472 11,652,625 11,362,494 5,058,776 928,000 935,000 962,000 1,369,000 1,441,000 1,460,000 699,324 693,655 674,859 944,819 1,032,016 1,019,059 20,414,803 23,647,470 33,814,709 34,677,167 35,564,222 28,606,484 (539,533) 6,123,352 (5,675,492) 3,546,842 (2,185,340) 3,506,407 3,152,954 2,354,180 10,191,142 4,241,596 6,367,905 4,087,145 (4,943,562) (4,171,199) (11,996,982) (7,012,060) (9,143,941) (6,865,558) - - 9,575,000 - 5,700,000 5,970,000 - - 422,335 - 240,732 120,990 - - - - (3,328,259) - 8,386 27,431 - - - - (1,782,222) (1,789,588) 8,191,495 (2,770,464) (163,563) 3,312,577 (2,321,755)$ 4,333,764$ 2,516,003$ 776,378$ (2,348,903)$ 6,818,984$ 9.02% 7.35% 6.60% 7.67% 8.42% 9.21% Page 132 Total Total TotalFiscal Residential Farm Commercial IndustrialAssessedActual Direct TaxYearPropertyPropertyPropertyPropertyTotal Railroad Value Value Rate2009 1,122,337,249$ - 374,399,228$ 19,959,312$ 1,516,695,789$ -$ 1,516,695,789$ 4,550,087,367$ 0.1830 2010 1,152,038,203 - 397,882,340 19,601,642 1,569,522,185 - 1,569,522,185 4,708,566,555 0.1820 2011 1,170,079,592 - 412,939,520 23,884,106 1,606,903,218 - 1,606,903,218 4,820,709,654 0.1890 2012 1,108,117,369 - 397,215,326 17,827,124 1,523,159,819 - 1,523,159,819 4,569,479,457 0.2390 2013 938,649,978 - 340,275,838 14,338,152 1,293,263,968 - 1,293,263,968 3,879,791,904 0.4570 2014 898,117,390 - 316,522,689 13,777,096 1,228,417,175 - 1,228,417,175 3,685,251,525 0.5030 2015 909,922,822 - 311,130,618 6,248,146 1,227,301,586 - 1,227,301,586 3,681,904,758 0.5300 2016 984,948,931 - 327,995,985 6,125,472 1,319,070,388 - 1,319,070,388 3,957,211,164 0.8920 2017 1,052,928,225 - 348,028,112 6,556,025 1,407,512,362 - 1,407,512,362 4,222,537,086 0.8580 2018 1,098,197,935 - 363,288,977 6,754,542 1,468,241,454 - 1,468,241,454 4,404,724,362 0.8340 Data Source: Lake County Clerk & Cook County ClerkVILLAGE OF DEERFIELDEQUALIZED ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTYLast Ten Levy YearsPage 133 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017DIRECT VILLAGE RATEBonds & Interest 0.000 0.010 0.034 0.098 0.1590.175 0.251 0.278 0.316 0.305Corporate 0.127 0.123 0.143 0.154 0.1640.184 0.000 0.261 0.249 0.239Garbage 0.052 0.053 0.059 0.064 0.0710.077 0.080 0.000 0.000 0.000Library0.177 0.180 0.003 0.004 0.0630.067 0.199 0.353 0.293 0.290Village 0.356 0.366 0.239 0.320 0.457 0.503 0.530 0.892 0.858 0.834OVERLAPPING RATESLake County including Forest Preserve 0.650 0.660 0.703 0.755 0.820 0.881 0.893 0.871 0.825 0.809Deerfield Elementary Dist 109 2.346 2.455 2.665 2.892 3.254 3.424 3.401 3.211 3.070 3.049High School District 113 1.660 1.748 1.921 2.167 2.178 2.364 2.421 2.309 2.187 2.164Community College District 532 0.1960.2000.2180.2400.272 0.296 0.306 0.299 0.285 0.281Deerfield Park District 0.419 0.431 0.460 0.503 0.546 0.585 0.599 0.552 0.542 0.535Deerfield-Bannockburn Fire Prot Dist 0.426 0.447 0.486 0.529 0.593 0.637 0.650 0.624 0.612 0.608All Other (1) 0.0470.0480.0650.0730.053 0.048 0.053 0.049 0.059 0.045TOTAL DIRECT AND OVERLAPPINGTAX RATE6.100 6.355 6.757 7.479 8.173 8.738 8.853 8.807 8.438 8.325*Rates are per $100 of Assessed Value(1) Total of West Deerfield Township & Southlake Mosquito Abatement DistrictData Source: Office of the Lake County ClerkVILLAGE OF DEERFIELDDIRECT AND OVERLAPPING PROPERTY TAX RATESLast Ten Levy YearsPage 134 Percentage Percentage of Total City of Total Taxable Assessed Assessed Taxpayer Rank Value Rank Value Walgreen Co.$45,707,187 1 3.11% $ 9,836,968 3 0.62% Marvin F Poer & Co. 32,537,387 2 2.22% 2,373,259 8 0.15% Takeda Pharmaceuticals North America, Inc 27,302,061 3 1.86% 8,865,517 4 0.56% MidAmerica Asset Management 25,636,607 4 1.75% Fulcrum Asset Advisors 20,543,752 5 1.40% CRM Properties Group 15,211,098 6 1.04% 6,060,160 5 0.38% James Campbell Co. LLC 14,744,691 7 1.00% LO Deerfield Operating 13,028,808 8 0.89% LPF Woodview LLC 11,604,372 9 0.79% North Parkway One Investment LLC 11,046,770 10 0.75% Ardeen Realty, Inc.15,751,870 1 1.00% JBC Funds Parkway North LLC 13,550,486 2 0.86% RREEF America Reit Agent 3,050,597 6 0.19% %Deloitte PTS 2,382,813 7 0.15% MJH Deerfield, LLC 2,285,233 9 0.14% Hyatt Equities, LLC 1,953,023 10 0.12% $ 217,362,733 14.80% $ 66,109,926 4.17% Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible some parcels and their valuations have been overlooked. The 2017 EAV is the most current available. Data Source: Office of the Lake County Clerk Value Value VILLAGE OF DEERFIELD PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago 2017 2008 Assessed Assessed Page 135 Fiscal Taxes Collections Year Levied in Ended for the Percentage Subsequent Percentage Dec 31 Fiscal Year Amount of Levy Years Amount of Levy 2009* 5,489,659$ 5,450,691$ 99.29% -$ 5,450,691$ 99.29% 2010* 5,653,369 5,609,999 99.23% - 5,609,999 99.23% 2011* 5,888,285 5,851,862 99.38% - 5,851,862 99.38% 2012* 6,675,642 6,624,625 99.24% - 6,624,625 99.24% 2013 9,328,980 9,266,916 99.33% - 9,266,916 99.33% 2014 9,658,145 9,596,025 99.36% - 9,596,025 99.36% 2015 10,783,925 10,725,053 99.45% - 10,725,053 99.45% 2016 11,821,939 11,772,386 99.58% - 11,772,386 99.58% 2017 12,088,181 12,045,734 99.65% - 12,045,734 99.65% 2018 12,289,037 12,270,843 99.85% - 12,270,843 99.85% Data Source: Lake County Treasurer, Cook County Treasurer and Village Records * Represent years ended 04/30 prior to switching to 12/31 fiscal years VILLAGE OF DEERFIELD PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Levy Years Collected within the Fiscal Year of the Levy Total Collections to Date Page 136 VILLAGE OF DEERFIELD SALES TAX BY CATEGORY Last Ten Calendar Years Calendar Year 2009 2010 2011 2012 General merchandise 215,487$ 222,696$ 233,408$ 222,366$ Food 708,194 772,736 798,668 796,940 Drinking and eating places 931,610 932,074 970,059 1,018,539 Apparel 205,112 207,981 240,746 205,856 Furniture and H.H. and radio 644,981 752,175 713,431 473,808 Lumber, building hardware 622,406 610,072 590,742 564,884 Automobile and filling stations 284,289 434,095 513,421 348,318 Drugs and miscellaneous retail 3,211,071 2,625,382 3,625,900 5,476,027 Agriculture and all others 895,708 852,588 1,138,377 1,005,454 Manufacturers 196,451 203,171 214,511 237,039 TOTAL 7,915,309$ 7,612,970$ 9,039,263$ 10,349,231$ Village direct sales tax rate 1.00% 1.00% 1.00% 1.00% Village home rule rate 0.50% 1.00% 1.00% 1.00% Data Source Illinois Department of Revenue Page 137 2013 2014 2015 2016 2017 2018 224,653$ 247,348$ 208,851$ 195,293$ 210,058$ 213,577$ 743,285 870,464 874,095 746,457 764,304 853,120 1,032,833 1,108,407 1,128,992 1,036,096 1,123,950 1,151,138 180,876 210,488 164,410 150,231 112,184 103,293 345,052 291,839 288,538 279,964 264,646 427,117 583,287 642,214 542,259 507,057 545,393 554,529 358,919 510,550 314,993 347,603 332,391 323,516 4,692,108 4,937,251 4,069,522 5,664,948 6,818,569 5,171,319 966,396 914,323 839,745 910,728 852,451 678,301 226,254 251,653 266,575 220,430 183,720 191,992 9,353,663$ 9,984,537$ 8,697,980$ 10,058,807$ 11,207,666$ 9,667,902$ 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Page 138 VILLAGE OF DEERFIELD DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years Cook Village Lake RTA Cook County RTA Home Village Calendar County Lake County County Home Rule Cook County Rule Direct State Year Rate Rate Rate Rate Rate Rate Rate Rate 2009 0.25% 0.75% 0.25% 1.75% 1.00% 1.00% 1.00% 5.00% 2010 0.25% 0.75% 0.25% 1.25% 1.00% 1.00% 1.00% 5.00% 2011 0.25% 0.75% 0.25% 1.00% 1.00% 1.00% 1.00% 5.00% 2012 0.25% 0.75% 0.25% 0.75% 1.00% 1.00% 1.00% 5.00% 2013 0.25% 0.75% 0.25% 0.75% 1.00% 1.00% 1.00% 5.00% 2014 0.25% 0.75% 0.25% 0.75% 1.00% 1.00% 1.00% 5.00% 2015 0.25% 0.75% 0.25% 0.75% 1.00% 1.00% 1.00% 5.00% 2016 0.25% 0.75% 0.25% 0.75% 1.00% 1.00% 1.00% 5.00% 2017 0.25% 0.75% 0.25% 1.75% 1.00% 1.00% 1.00% 5.00% 2018 0.25% 0.75% 0.25% 1.75% 1.00% 1.00% 1.00% 5.00% Data Source Village and County Records Page 139 RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Business-Type Activities Activities Percentage Fiscal General General Total of Year Obligation Obligation Primary Personal Per Ended Bonds Bonds Government Income*Capita* 4,825,000$ 1,350,000$ 6,175,000$ 0.57% 335$ 17,145,000 915,000 18,060,000 1.62% 981.26 48,835,000 465,000 49,300,000 4.26% 2,670.93 56,555,000 - 56,555,000 4.91% 3,064.98 23,164,958 31,997,146 55,162,104 4.79% 2,989.49 22,223,327 31,230,833 53,454,160 4.63% 2,903.85 31,252,022 30,460,961 61,712,983 5.29% 3,340.17 29,859,606 29,667,530 59,527,136 4.87% 3,202.45 31,118,917 28,850,541 59,969,458 4.69% 3,193.43 35,715,167 28,014,826 63,729,993 4.66% 3,372.67 * ** Eight months ended December 31, 2013 Note: Details of the Village's outstanding debt can be found in the notes to financial statements. Data Source Audited Financial Statements 2010 VILLAGE OF DEERFIELD 2016 2017 See the schedule of Demographic and Economic Statistics for personal income and population data. 2011 2012 2013 2013 ** 2014 2015 2018 Page 140 (1) (1) Governmental Business-Type (1) Percentage of Activities Activities Less Amounts Estimated General General Available Actual Taxable Fiscal Obligation Obligation In Debt Value of Per Year Bonds Bonds Service Fund Total Property Capita 2010 4,825,000$ 1,350,000$ 105,915$ 6,069,085$ 0.38% 329.48$ 2011 17,145,000 915,000 101,518 17,958,482 1.20% 975.74 2012 48,835,000 465,000 286,753 49,013,247 3.52% 2,655.39 2013 56,555,000 - 113,074 56,441,926 4.36% 3,058.85 2013* 23,164,958 31,997,146 1,473,632 53,688,472 4.15% 2,909.63 2014 22,223,327 31,230,833 2,208,527 51,245,633 4.17% 2,783.88 2015 31,252,022 30,460,961 2,983,643 58,729,340 4.79% 3,178.68 2016 29,859,606 29,667,530 3,756,098 55,771,038 4.23% 3,000.38 2017 31,118,917 28,850,541 4,632,684 55,336,774 3.93% 2,946.74 2018 35,715,167 28,014,826 5,430,043 58,299,950 3.97% 3,085.31 * Eight months ended December 31, 2013 Data Source (1) Audited Financial Statements VILLAGE OF DEERFIELD RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years Page 141 *** (1) (2) Gross Percentage *** General of Debt Village's Obligation Applicable to Share Governmental Unit Debt Government of Debt Direct Debt: Village of Deerfield 34,929,000$ 100.00% 34,929,000$ Total Direct Debt: 34,929,000 Overlapping Debt: Lake County 174,530,000 5.16% 9,005,748 Lake County Forest Preserve 240,155,000 5.16% 12,391,998 Cook County 2,950,121,750 0.10% 2,950,122 Cook County Forest Preserve 129,615,000 0.10% 129,615 Deerfield Park District 1,140,000 97.66% 1,113,324 Park District of Highland Park 8,430,000 1.35% 113,805 Northbrook Park District 9,435,000 2.97% 280,220 Lake Elementary School District No. 109 18,245,000 77.23% 14,090,614 Lake High School District No. 113 84,480,000 29.93% 25,284,864 Cook Northfield Township High School District No. 225 72,951,131 2.72% 1,984,271 Community College of Lake County No. 532 58,645,000 5.21% 3,055,405 Oakton Community College District No. 535 32,130,000 0.65% 208,845 Metropolitan Water Reclamation District of Greater Chicago 2,359,823,061 0.10% 2,359,823 Total Overlapping Debt: 72,968,654 Total Gross Debt & Total Direct and Overlapping Debt 6,174,629,942 107,897,654 Less Debt Service Fund Amount Available - Village of Deerfield 5,430,043 5,430,043 TOTAL DIRECT AND OVERLAPPING DEBT 6,169,199,899$ 102,467,611$ * Most recent data available. ** *** Amount of column (2) multiplied by amount in column (1). Data Sources Lake and Cook County Clerk's Offices Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation. VILLAGE OF DEERFIELD DIRECT AND OVERLAPPING BONDED DEBT - GOVERNMENTAL ACTIVITIES December 31, 2018 Page 142 LEGAL DEBT MARGIN INFORMATION December 31, 2018 EQUALIZED ASSESSED VALUATION - 2017*1,468,241,454$ Non-Home Rule Legal Debt Limit - 8.625% 126,635,825 Amount of debt applicable to limit: General Obligation Bonds Series 2010A 3,234,000 General Obligation Bonds Series 2011A 7,620,000 General Obligation Bonds Series 2013 4,290,000 General Obligation Bonds Series 2015 8,395,000 General Obligation Bonds Series 2017 5,420,000 General Obligation Bonds Series 2018 5,970,000 Total amount of debt applicable to limit: 34,929,000 NON-HOME RULE LEGAL DEBT MARGIN 91,706,825$ * Most Recent EAV Available 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: VILLAGE OF DEERFIELD 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 per cent: ...indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum...shall not be included in the foregoing percentage. 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 Page 143 Per Capita Median Fiscal Personal Household Unemployment Year Population Income Income Rate 2010 (a) 18,420 58,338 131,585 7.10% 2011 (b) 18,405 60,582 131,534 5.60% 2012 (c) 18,458 62,631 132,785 5.75% 2013 (d) 18,452 62,405 129,187 5.30% 2013* (e) 18,452 62,405 129,187 5.85% 2014 (f) 18,408 62,731 135,881 5.05% 2015 (g) 18,476 63,190 135,754 4.20% 2016 (h) 18,588 65,757 137,423 4.40% 2017 (i) 18,779 68,101 143,729 3.60% 2018 (j) 18,896 72,334 142,621 3.25% * Eight months ended December 31, 2013 Data Sources (a) U.S. Census Bureau "2005-2009 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (b) U.S. Census Bureau "2006-2010 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (c) U.S. Census Bureau, "2007-2011 American Community Survey 5-Yr. Estimates" U.S. Bureau of Labor Statistics (d) U.S. Census Bureau, "2008-2012 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (e) U.S. Census Bureau, "2008-2012 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (f) U.S. Census Bureau, "2009-2013 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (g) U.S. Census Bureau, "2010-2014 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (h) U.S. Census Bureau, "2011-2015 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (i) U.S. Census Bureau, "2012-2016 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics and Special Census (j) U.S. Census Bureau, "2013-2017 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics VILLAGE OF DEERFIELD DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years Page 144 % of % of Total Village Total Village Employer Employees Rank Population Employees Rank Population Walgreen Boots Alliance Inc 5,000 1 26.46% 2,400 2 0.00% Baxter International Inc 1,900 2 10.06% 4,500 1 24.43% Takeda Pharmaceuticals USA Inc 1,700 3 9.00% 2,300 3 12.49% Mondelez International Inc 700 4 3.70% - 0.00% Essendant Inc 600 5 3.18% - 0.00% Deerfield Park District 500 6 2.65% - 0.00% Illinois Student Assistance Commission 499 7 2.64% 550 6 0.00% Siemens Healthcare Diagnostics 310 8 1.64% - 0.00% Lundbeck Inc 260 9 1.38% - 0.00% Deerfield High School 250 10 1.32% 500 7 0.00% Astellas Pharma US Inc - 0.00% 1,200 4 6.51% Fortune Brands - 0.00% 905 5 4.91% United Stationers Supply - 0.00% 500 8 2.71% Sears, Roebuck & Co - 0.00% 380 9 2.06% Thompson Financial LLC - 0.00%350 10 1.90% TOTAL 11,719 62.02%13,585 55.02% Village population 18,896 18,420 Data Source 2018 Illinois Manufacturers Directory and 2018 Illinois Services Directory VILLAGE OF DEERFIELD PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2018 2009 Page 145 VILLAGE OF DEERFIELDFULL-TIME EQUIVALENT EMPLOYEESLast Ten Fiscal YearsFunction/Program20102011201220132013*20142015201620172018GENERAL GOVERNMENTVillage Manager 3 2 4 5 5 5 5 5 6 8 Finance 10 10 8 8 8 8 8 8 8 7 Engineering 3 2 2 2 2 2 3 3 3 3 Community Development 7 7 7 7 7 8 8 8 8 8 PUBLIC WORKSAdministration 4 4 4 4 4 4 4 4 4 4 Street Maintenance 7 7 7 7 7 7 7 7 7 7 Utilities Maintenance 15 14 14 14 14 14 13 13 13 13 Sewage Treatment Plant 8 8 8 7 7 7 7 7 7 7 Garage 2 2 2 2 2 2 2 2 2 2 PUBLIC SAFETYPoliceAdministration 7 7 7 7 7 7 7 7 7 7 Communications 8 8 8 8 8 8 8 8 8 8 Investigations/Youth 7 7 7 7 7 7 7 7 7 7 Patrol 31 31 31 33 33 34 34 34 34 34 TOTAL 112 109 109 111 111 113 113 113 114 115* Eight months ended December 31, 2013Data SourceVillage budget officePage 146 VILLAGE OF DEERFIELDOPERATING INDICATORSLast Ten Calendar YearsFunction/Program2009201020112012201320142015201620172018PUBLIC SAFETYPolicePhysical arrests 415 575 513 485 367 337 336 426 346 452 Parking violations 1,656 1,509 1,343 2,628 2,307 2,560 1,709 1,598 2,452 2,160 Traffic violations 3,703 3,106 3,391 3,367 3,550 3,452 3,765 3,463 2,858 3,725 PUBLIC WORKSStreet resurfacing (miles) 0.89 0.86 1.83 2.80 1.76 1.96 6.45 0.36 0.74 1.77WATERWater main breaks 59 76 75 78 108 56 61 53 52 32 Average daily consumption (gallons) 2,630,000 2,683,526 2,522,061 2,805,124 2,730,295 2,571,000 2,380,000 2,306,605 2,228,298 2,145,000 Peak daily consumption (gallons) 4,510,000 5,009,819 5,502,196 5,482,125 5,069,827 3,903,000 3,800,000 4,363,018 5,127,763 3,911,685 WASTEWATERAverage daily treatment (gallons) 3,313,068 2,930,000 3,530,000 2,395,000 2,761,000 3,452,000 3,180,000 2,680,000 2,740,000 2,850,000Data SourceVarious village departmentsPage 147 VILLAGE OF DEERFIELDCAPITAL ASSET STATISTICSLast Ten Fiscal YearsFunction/Program20102011201220132013*20142015201620172018PUBLIC SAFETYPoliceStations 1 1 1 1 1 1 1 1 1 1 Number of Police Officers 41 41 41 42 43 40 40 40 40 40 PUBLIC WORKSArterial streets (miles) 8 8 8 8 8 8 8 8 8 8 Residential streets (miles) 68 68 68 68 68 68 68 68 68 68 Traffic signals 10 10 10 10 10 10 10 10 10 10 WATERWater mains (miles) 88 90 90 90 90 90 90 90 90 90 Fire hydrants 1,212 1,217 1,208 1,220 1,205 1,208 1,206 1,267 1,260 1,260 Storage capacity (gallons) 8,000,000 8,200,850 8,200,850 8,200,850 8,200,850 8,200,850 8,200,850 8,200,850 8,200,850 8,200,850 WASTEWATERSewers (miles) 80 80 80 80 80 80 80 80 80 80 Treatment capacity (gallons) 8,000,000 8,000,000 9,200,000 9,200,000 9,200,000 9,200,000 9,200,000 9,200,000 9,200,000 9,200,000 * Eight months ended December 31, 2013Data SourceVarious village departmentsPage 148 O T H E R I N F O R M A T I O N Taxable TaxableSeries Series Series Series Series Series Series The TotalCalendar 2010A (BABs) 2011A 2011B (QSEB) (2) 2012 2013 2015 2016 Bonds Principal Year(12/1)(12/1)(12/1)(12/1)(12/1)(12/1)(12/1)(12/1)All G.O. Bonds AmountPercent2019 585,000$ 325,000$ -$ 440,000$ 335,000$ 415,000$ 255,000$ 130,000$ 2,485,000$ 2,485,000$ 3.95%2020 600,000 340,000 - 455,000 340,000 430,000 265,000 235,000 2,665,000 5,150,000 8.19%2021 610,000 365,000 - 475,000 345,000 440,000 270,000 245,000 2,750,000 7,900,000 12.57%2022 625,000 380,000 - 495,000 350,000 455,000 280,000 255,000 2,840,000 10,740,000 17.08%2023 645,000 400,000 - 515,000 350,000 470,000 290,000 265,000 2,935,000 13,675,000 21.75%2024 660,000 425,000 - 540,000 355,000 485,000 300,000 275,000 3,040,000 16,715,000 26.59%2025 680,000 450,000 - 555,000 360,000 495,000 310,000 285,000 3,135,000 19,850,000 31.58%2026 700,000 475,000 - 580,000 365,000 510,000 320,000 295,000 3,245,000 23,095,000 36.74%2027 720,000 500,000 - 600,000 375,000 530,000 330,000 310,000 3,365,000 26,460,000 42.09%2028 735,000 355,000 12,500,000 455,000 380,000 545,000 345,000 320,000 15,635,000 42,095,000 66.96%2029 750,000 1,280,000 1,380,000 390,000 560,000 - 325,000 4,685,000 46,780,000 74.41%2030 775,000 1,335,000 1,425,000 390,000 575,000 - 335,000 4,835,000 51,615,000 82.10%2031 990,000 1,950,000 675,000 595,000 - 350,000 4,560,000 56,175,000 89.36%2032610,000 455,000 360,000 1,425,000 57,600,000 91.62%2033630,000 475,000 370,000 1,475,000 59,075,000 93.97%2034650,000 490,000 385,000 1,525,000 60,600,000 96.40%2035510,000 395,000 905,000 61,505,000 97.84%2036525,000 410,000 935,000 62,440,000 99.32%2037425,000 425,000 62,865,000 100.00%Total 8,085,000$ 7,620,000$ 12,500,000$ 9,865,000$ 5,010,000$ 8,395,000$ 5,420,000$ 5,970,000$ 62,865,000$ Notes: (1) Source: The Village. (2) The Village has established a mandatory sinking fund for the Series 2011B Bonds and has agreed to make annual sinking fund payments on December 1 of each year equaling $725,000 through 2027 and $900,000 upon maturity in 2028. The sinking fund is held by the Village.VILLAGE OF DEERFIELDVillage General Obligation Bonded Debt (1)(Principal Only)CumulativePrincipal Retired Page 149 VILLAGE OF DEERFIELD Detailed Overlapping Bonded Debt(1) (As of May 28, 2019) Outstanding Debt (2) Percent (3) Amount Schools: Elementary School District 109 18,245,000$ 77.23% 14,090,614$ High School District Number 113 84,480,000 29.93% 25,284,864 High School District Number 225 72,951,131 2.72% 1,984,271 Community College District Number 532 58,645,000 5.21% 3,055,405 Community College District Number 535 32,130,000 0.65% 208,845 Total Schools 44,623,998$ Others: Lake County 174,530,000$ 5.16% 9,005,748$ Lake County Forest Preserve District 240,155,000 5.16% 12,391,998 Cook County 2,950,121,750 0.10% 2,950,122 Cook County Forest Preserve District 129,615,000 0.10% 129,615 Metropolitan Water Reclamation District of Greater Chicago 2,359,823,061 0.10% 2,359,823 Deerfield Park District 1,140,000 97.66% 1,113,324 Northbrook Park District 9,435,000 2.97% 280,220 Park District of Highland Park 8,430,000 1.35% 113,805 Total Others 28,344,654$ Total Schools and Others Overlapping Bonded Debt 72,968,652$ Note: (1) Source: Cook County Clerk. (2) Includes original principal amounts of capital appreciation bonds and alternate revenue bonds. Excludes debt certificates. (3) Percentages are based on 2018 Equalized Assessed Valuations for Lake County and the 2017 Equalized Assessed Valuations for Cook County, the most recent available. Applicable to Village Page 150 Statement of Bonded Indebtedness (1) Estimated PER CAPITA Amount Applicable EAV Actual (2017 Census - 18,779) Assessed Valuation of Taxable Property, 2017 $1,468,241,454 100.00% 33.33% $78,185.28 Estimated Actual Value, 2017 $4,404,724,362 300.00% 100.00% $234,555.85 Village Direct Bonded Debt $62,865,000 4.28% 1.43% $3,347.62 Overlapping Debt: (2) Schools 44,623,998$ 3.04% 1.01% $2,376.27 All Others 28,344,654 1.93% 0.64% 1,509.38 Total Overlapping Bonded Debt 72,968,652$ 4.97% 1.66% $3,885.65 Total Net Direct & Overlapping Debt 135,833,652$ 9.25% 3.08% $7,233.27 Notes: (1) Source: The Village. (2) As of May 28, 2019. Ratio to VILLAGE OF DEERFIELD Page 151 Equalized Assessed Valuation (1)Property Class201020112012201320142015201620172018 (3)Residential $1,108,117,369 $1,012,534,720 $938,649,978 $898,117,390 $909,922,822 $984,948,931 $1,052,928,225 $1,098,197,935 $1,088,960,101Farm- - Commercial 397,215,326 364,721,276 340,275,838 316,522,689 311,130,618 327,995,985 348,028,112 363,288,977 224,313,021 Industrial 17,827,124 15,266,443 14,338,152 13,777,096 6,248,146 6,125,472 6,556,025 6,754,542 2,705,095 RailroadTotal $1,523,159,819 $1,392,522,439 $1,293,263,968 $1,228,417,175 $1,227,301,586 $1,319,070,388 $1,407,512,362 $1,468,241,454 $1,315,978,217CountyLake County $1,320,610,510 $1,234,580,528 $1,148,442,941 $1,091,644,439 $1,096,776,425 $1,190,201,367 $1,265,022,355 $1,320,319,691 $1,315,978,217Cook County $202,549,309 $157,941,911 $144,821,027 $136,772,736 $130,525,161 $128,869,021 $142,490,007 $147,921,763 Not AvailableTotal $1,523,159,819 $1,392,522,439 $1,293,263,968 $1,228,417,175 $1,227,301,586 $1,319,070,388 $1,407,512,362 $1,468,241,454 $1,315,978,217Percent change +(-) (2) -5.21% -8.58% -7.13% -5.01% -0.09% 7.48% 6.70% 4.31% NANotes: (1) Source: Lake and Cook County Clerks' Offices.(2) Percentage based on 2009 EAV of $1,606,903,218.(3) Values for Lake County only. VILLAGE OF DEERFIELDPage 152 Representative Tax Rates For Property Located in the Village of DeerfieldPer $100 of Equalized Assessed Valuation (1)201020112012201320142015201620172018Village Rates:Bond and Interest 0.0340$ $0.098 $0.159 $0.175 $0.251 $0.278 $0.316 $0.305 $0.305Corporate 0.1430 0.154 0.164 0.184 0.000 0.261 0.249 0.239 0.242Garbage 0.0590 0.064 0.071 0.077 0.080 0.000 0.000 0.000 0.000Library 0.0030 0.004 0.063 0.067 0.199 0.353 0.293 0.290 0.300Total Village Rate 0.2390$ 0.320$ 0.457$ 0.503$ 0.530$ 0.892$ 0.858$ 0.834$ 0.847$ Lake County (Including Forest Preserve) 0.7030 0.755 0.820 0.881 0.893 0.871 0.825 0.809 0.794Deerfield Elementary Dist. 109 2.6650 2.892 3.254 3.424 3.401 3.211 3.070 3.049 3.069High School District 113 1.9210 2.167 2.178 2.364 2.421 2.309 2.187 2.164 2.222Community College District Number 532 0.2180 0.240 0.272 0.296 0.306 0.299 0.285 0.281 0.282Deerfield Park District 0.4600 0.503 0.546 0.585 0.599 0.552 0.542 0.535 0.552Deerfield-Bannockburn Fire Protection District 0.4860 0.529 0.593 0.637 0.650 0.624 0.612 0.608 0.625All Other (2) 0.0650 0.073 0.053 0.048 0.053 0.049 0.059 0.045 0.045Total (4) 6.7570$ 7.479$ 8.173$ 8.738$ 8.853$ 8.807$ 8.438$ 8.325$ 8.436$ Notes: (1) Source: Cook County Clerk (3) Includes the Township of West Deerfield and the Southlake Mosquito Abatement District. (4) Representative tax rate is for Lake County Tax Code 17004 which represents the largest tax code of the Village's 2018 EAV; the latest data available.Levy YearsVILLAGE OF DEERFIELDPage 153 Levy Collection Lake County Cook County Total Tax Total Year Year Extensions Extension Extensions Collected Percent 2006 2007 4,290,135$ 789,938$ 5,080,074$ 5,045,257$ 99.31% 2007 2008 4,699,890 789,769 5,489,659 5,450,691 99.29% 2008 2009 4,837,032 816,337 5,653,369 5,609,999 99.23% 2009 2010 5,106,445 781,840 5,888,285 5,851,862 99.38% 2010 2011 5,850,305 825,338 6,675,642 6,624,625 99.24% 2011 2012 7,469,212 987,137 8,456,349 8,407,192 99.42% 2012 2013 8,257,305 1,071,676 9,328,980 9,266,916 99.33% 2013 2014 8,558,492 1,099,653 9,658,145 9,596,025 99.36% 2014 2015 9,602,672 1,181,253 10,783,925 10,725,053 99.45% 2015 2016 10,633,807 1,188,132 11,821,939 11,772,386 99.58% 2016 2017 10,839,968 1,248,212 12,088,181 12,045,734 99.65% 2017 2018 11,005,076 1,283,961 12,289,037 12,270,843 99.85% Notes: (1) Source: the Village Village Tax Extensions and Collections (1) VILLAGE OF DEERFIELD Page 154 Taxpayer Name Business/Service 2017Walgreen Co. Pharmacy, Company Headquarters $45,707,187Marvin F Poer & Co. Real Property 32,537,387TAKEDA PHARMACEUTICALS NORTH AMERICA, INC Pharmaceuticals 27,302,061MidAmerica Asset Management Real Property 25,636,607Fulcrum Asset Advisors Real Property 20,543,752CRM Properties Group Real Property 15,211,098James Campbell Co LLC Real Property 14,744,691LO Deerfield Operating Real Property 13,028,808LPF Woodview LLC Real Property 11,604,372North Parkway One Investment LLC Real Property 11,046,770Total $217,362,73310 Largest Taxpayers as Percent of Total 14.80%Notes: (1) Source: Lake and Cook County Clerks' Offices.Principal Taxpayers (1)(2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels, and it is possible that some parcels and their valuations have been overlooked. The 2017 EAV is the most current available.VILLAGE OF DEERFIELDPage 155