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Village CAFR for Year Ended December 31, 2019Comprehensive Annual Financial Report for the year ended December 31, 2019 Village of Deerfield, Illinois COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE VILLAGE OF DEERFIELD, ILLINOIS As of and for the Year Ended December 31, 2019 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, 2019 Page(s) INTRODUCTORY SECTION Letter of Transmittal i - iv Certificate of Achievement for Excellence in Financial Reporting v Organization Chart vi List of Elected and Appointed Officials vii FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 - 2 REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS 3 - 9 BASIC FINANCIAL STATEMENTS Government-W ide Financial Statements Statement of Net Position 10 Statement of Activities 11 - 12 Fund Financial Statements Balance Sheet - Governmental Funds 13 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 14 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 15 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 16 Statement of Net Position - Proprietary Funds 17 - 20 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 21 - 22 Statement of Cash Flows - Proprietary Funds 23 - 26 Statement of Fiduciary Net Position - Fiduciary Funds 27 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 28 Index to Notes to Financial Statements 29 Notes to Financial Statements 30 - 70 REQUIRED SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 71 VILLAGE OF DEERFIELD TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2019 Page(s) REQUIRED SUPPLEMENTARY INFORMATION (cont.) Historical Pension Information Illinois Municipal Retirement Fund - Schedule of Changes in the Village's Net Position Liability and Related Ratios 72 - 75 Illinois Municipal Retirement Fund - Schedule of Employer Contributions 76 - 77 Police Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 78 Police Pension Fund - Schedule of Employer Contributions 79 - 80 Police Pension Fund - Schedule of Investment Returns 81 Retiree Health Plan - Schedule of Changes in the Village's Total OPEB Liability and Related Ratios 82 Notes to Required Supplementary Information 83 SUPPLEMENTARY INFORMATION Major Governmental Funds Detailed Schedule of Revenues - Budget and Actual - General Fund 84 Detailed Schedule of Expenditures - Budget and Actual - General Fund 85 - 87 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual - Debt Service Fund 88 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual - Infrastructure Replacement Fund 89 Nonmajor Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 91 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Motor Fuel Tax Fund 92 Enhanced 911 Fund 93 2011B Debt Service Sinking Fund 94 Bond Proceeds 95 Enterprise Funds Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - W ater Fund 96 Schedule of Operating Expenses - Budget and Actual - W ater Fund 97 VILLAGE OF DEERFIELD TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2019 Page(s) SUPPLEMENTARY INFORMATION (cont.) Schedule of Capital Assets and Depreciation - Water Fund 98 Schedule of Revenue, Expenses and Changes in Net Position - Budget and Actual - Sewerage Fund 99 Schedule of Operating Expenses - Budget and Actual - Sewerage Fund 100 Schedule of Capital Assets and Depreciation - Sewerage Fund 101 Schedule of Revenues, Expenses and Changes in Net Position - Budget to Actual - Refuse Fund 102 Schedule of Revenues, Expenses and Changes in Net Position - Budget to Actual - Commuter Parking Lot Fund 103 Schedule of Operating Expenses - Budget to Actual - Commuter Parking Lot Fund 104 Schedule of Capital Assets and Depreciation - Commuter Parking Lot Fund 105 Internal Service Funds Combining Statement of Net Position - Internal Services Funds 106 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 107 Combining Statement of Cash Flows - Internal Service Funds 108 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Garage Fund 109 Schedule of Operating Expenses - Budget and Actual - Garage Fund 110 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Vehicle and Equipment Replacement Fund 111 Fiduciary Funds Schedule of Changes in Fiduciary Net Position - Budget and Actual - Pension Trust Fund 112 Combining Schedule of Changes in Assets and Liabilities - All Agency Funds 113 - 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, 2019 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 - Last Ten Levy Years 133 Direct and Overlapping Property Tax Rates - Last Ten Levy Years 134 Principal Property Taxpayers - Current Year and Nine Years Ago 135 Property Tax Levies and Collections - Last Ten Levy Years 136 Sales Tax by Category - Last Ten Calendar Years 137 - 138 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 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, 2018 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, 2019 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 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, 2019, 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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, 2019 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 1 To the Honorable Mayor and Members of the Board of Trustees Village of Deerfield, Illinois 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. W e 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. W e 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated on our consideration of the Village of Deerfield's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village of Deerfield's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village of Deerfield's internal control over financial reporting and compliance. Oak Brook, Illinois June 18, 2020 2 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 3 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND AN AL YSIS December 31, 2019 (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 and the Village’s financial statements. Financial Highlights The Village’s General Fund ended the period with total revenues exceeding total expenditures by $7,908,696. Combined with net other financing uses of $124,195, the December 31, 2019 fund balance increased by $7,784,501. The 2019 General Fund budget originally showed a decrease of $799,924. However, revenues exceeded budget due primarily to greater than expected Simplified Telecommunications tax receipts as a result of an audit completed by the Illinois Department of Revenue along with hotel/motel tax and building permit receipts. In addition, expenditures were below budget due primarily to General Government activities and open Public Safety positions. An E-911 fund close out transfer (see next point) of $2,287,432 added to the General Fund’s increase in fund balance. The E-911 special revenue fund was closed during the year. The remaining assets ($2,287,432) were transferred to a new Consolidated Joint Emergency Telephone Systems Board (JETSB) which includes the Villages of Lincolnshire and Bannockburn. The Village of Deerfield Finance Director acts as the Treasurer of the Consolidated JETSB by an Intergovernmental Agreement. Therefore, the Village is accounting for the Consolidated JETSB as an agency fund. Deerfield’s portion of the Consolidated JETSB has been recorded as a Deposit in the General Fund. Sales tax and home rule sales tax decreased $1,107,005 and $1,100,059, 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. In addition, the Illinois Department of Revenue is reducing the Village’s monthly distributions of sales tax and home rule sales tax by $100,000 per month due to previous over distributions resulting from a business that filed amended returns. A liability of $2,490,561 has been recorded on the Statement of Net Position to reflect the remaining amount due. Sales tax excluding economic incentive activity and reduced distributions increased by 0.82% from 2018. 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 increased by $200,438 in 2019. Hotel/motel tax revenue ($2,457,844) exceeded current year expectation of $2,250,000; 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 $1,188,214 from the Electric Utility tax and $5,896,439 from the Simplified Telecommunications tax. Electric Utility tax decreased from the prior year and was slightly below the current year budget. Simplified Telecommunications tax increased significantly from the prior year and current year budget as a result of a multi-year audit completed by the Illinois Department of Revenue. The 1% food and beverage tax, which was implemented in March of 2017, totaled $659,345 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 $497,354 for the year. This amount exceeded current year expectation and the prior year amount. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 4 The Village retired $2,485,000 of general obligation debt during the period. The total balance of debt outstanding as of December 31, 2019 was $60,360,000. 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. Government-Wide Financial Statements The government-wide financial statements 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 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 (W ater, 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 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 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 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 5 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. Fiduciary funds 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. 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. 2019 2018 2019 2018 2019 2018 Current & Other Assets 67.55 61.82 5.32 4.52 72.87 66.34 Capital Assets 77.72 77.20 61.62 60.56 139.34 137.76 Total Assets 145.27 139.02 66.94 65.08 212.21 204.10 Deferred Outflows of Resources 14.06 12.88 0.76 0.28 14.82 13.16 Total Assets and Deferred Outflows of Resources 159.33 151.90 67.70 65.36 227.03 217.26 Long-Term Liabilities 61.28 58.99 27.75 27.75 89.03 86.74 Other Liabilities 13.69 9.31 1.69 1.46 15.38 10.77 Total Liabilities 74.97 68.30 29.44 29.21 104.41 97.51 Deferred Inflows of Resources 17.65 17.97 0.12 0.48 17.77 18.45 Total Liabilities and Deferred Inflows of Resources 92.62 86.27 29.56 29.69 122.18 115.96 Net Position: Net Investment in Capital Assets 51.43 47.78 34.46 32.55 85.89 82.33 Restricted 9.19 7.46 --9.19 7.46 Unrestricted 6.09 8.39 3.68 3.12 9.77 11.51 Total Net Position 66.71 65.63 38.14 35.67 104.85 101.30 Current & Other Assets have increased mainly due to increases in Governmental Activities cash and investment balances on hand resulting from positive revenue variances in the General Fund. 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 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 6 increases in the actuarially determined Net Pension Liability for IMRF. Increases in Long-Term Liabilities were partially offset by $2.485 million of bond principal payments. Other Liabilities increased due to timing of payables and recording of a $2.49 million liability for previous over payment of sales tax resulting from amended returns. 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. 2019 2018 2019 2018 2019 2018 Revenues: Program Revenues: Charges for Service 6.25 5.54 8.08 7.99 14.33 13.53 Operating Grants 0.62 0.48 --0.62 0.48 Capital Grants 0.31 0.08 2.62 0.80 2.93 0.88 General Revenue: Property Taxes 7.26 7.22 --7.26 7.22 Other Taxes/ Intergovernmental 17.90 17.47 --17.90 17.47 Other 1.95 0.87 0.29 0.25 2.24 1.12 Total Revenue 34.29 31.66 10.99 9.04 45.28 40.70 Expenses: General Government 7.94 9.11 --7.94 9.11 Public Safety 12.58 10.80 --12.58 10.80 Highways and Streets 8.85 9.19 --8.85 9.19 Interest/fiscal charges 1.06 1.09 --1.06 1.09 Water --4.65 4.34 4.65 4.34 Sewerage --4.86 4.65 4.86 4.65 Refuse --1.49 1.44 1.49 1.44 Parking Lots --0.29 0.35 0.29 0.35 Total Expense 30.43 30.19 11.29 10.78 41.72 40.97 Increase(decrease) before transfers 3.86 1.47 -0.30 -1.74 3.56 -0.27 Transfer in (out)-2.78 -2.78 2.78 2.78 -- Changes in Net Position 1.08 -1.31 2.48 1.04 3.56 -0.27 Ending Net Position 66.71 65.63 38.14 35.67 104.85 101.30 CURRENT YEAR IMPACTS Governmental Activities Revenue Charges for Service increased due to increased charges for dispatching, engineering and building permits. Property taxes remained relatively consistent as the Village Board abated a portion of the property tax levy collected in 2019. Other taxes/intergovernmental increased by $0.43 million as positive revenue variances (Telecommunications and Hotel/Motel tax) were partially offset by negative revenue variances (Sales tax and Home Rule Sales tax). In addition, a liability of $2.49 million was recorded against Intergovernmental revenue as future recognition will impact revenue. The increase in Other Revenue is due largely to investment income. Expenses The Village’s Governmental Activities expenses increased by $0.24 million due largely to reduced economic incentive activity referenced above. Public Safety expenses increased by $1.78 million due to the actuarial calculation of Net VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 7 Pension Liability and Other Post-Employment Benefits. Interest and fiscal charges reflect scheduled interest payments adjusted for interest payable and amortization of discounts/premiums. Business-type Activities Revenue A water rate increase of 9.0% was implemented in January, 2019; water sales totaled $4.36 million, which was less than the budget of $5 million. Sewer user charges of $2.87 million were also less than the budget of $3.13 million. The sewer rates were increased 2.5% in January 2019. Water and sewer charges were below budget due to lower usage demands in the current year. Refuse charge rates increased 2% in 2019 and revenue of $0.55 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 increased $0.31 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 by 15% on January 1st in combination with a series of annual increases to fund the reconstruction of their water treatment plant. Sewerage Fund operating expenses increased $0.21 million in comparison to the prior year. The increase was due largely to year-end accounting adjustments related to Net Pension Liability in the prior year. Refuse Fund operating expenses increased slightly from the prior year due to personnel services and contractual services. Parking Fund operating expenses decreased in comparison to the prior year due to planned maintenance projects. Both funds were under their operating expense budget. FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS Governmental Funds At December 31, 2019, the governmental funds reported a combined fund balance of $40.00 million which is an 10.86% increase from the beginning of the year ($36.08 million). The increase is due largely to General Fund revenues (Telecom, Hotel/Motel tax, Income tax and building permits) exceeding expectation along with an expected increase in the 2011 B sinking fund, which will continue to increase until the Bonds are due on December 1, 2028. These increases are partially offset by the planned draw down of prior year bond proceeds that were used to fund capital improvement in 2019. 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 $23.60 million provides for approximately 391 days of anticipated annual expenditures. General Fund revenues exceeded the budget of $23.12 million by $5.1 million. Telecommunications tax exceeded budget by $4.4 million due as a result of an audit completed by the Illinois Department of Revenue. Hotel/motel tax exceeded budget by approximately $0.21 million, building permit revenue exceeded budget by approximately $0.99 million and investment income exceeded budget by approximately $0.52 million. General Fund expenditures were $1.21 million less than the original budget. The budget was amended to accommodate larger than expected contractual services. Open positions and reduced economic incentive payments, resulting from reduced Sales tax, offset the increased contractual services. 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. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 8 General Fund Budget versus Actual Fiscal year ended December 31, 2019 (in millions) Original Amended Budget Budget Actual Revenues Taxes 12.43 12.43 16.31 Intergovernmental 7.16 7.16 6.25 Other 3.53 3.53 5.66 Total 23.12 23.12 28.22 Expenditures & Transfers Expenditures 21.51 22.05 20.31 Transfers –Net 2.41 2.41 .12 Total 23.92 24.46 20.43 Change in Fund Balance -0.80 -1.34 7.79 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 $4.55 million for the year. Actual operating expenses, excluding depreciation totaled $4.14 million. Operating income of $0.41 million is a result of prior years’ emphasis on reducing water loss. Overall, net position increased $2.02 million, which included depreciation of $0.52 million and contributions of capital assets from the Infrastructure Replacement fund of $2.13 million. The Sewerage Fund operating expenses were under budget by $0.21 million due primarily to positive budget variances in Administration and Treatment Plant Operations. Operating revenues were under budget by $0.26 million. Actual operating expenditures for the year exceeded operating revenues $0.42 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 $0.93 million. The Village also transfers a portion of its property tax levy to the Refuse Fund. Property tax transferred to the Refuse Fund totaled $0.96 million and the Refuse Fund’s net position increased $0.04 million during the year to $0.65 million. Internal Service Funds The Village’s combined internal service funds’ net position were $7.25 million as of December 31, 2019, with $5.6 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, 2019 was $77.73 million. The Village’s investment in capital assets, net of accumulated depreciation, for business-type activities as of December 31, 2019 was $61.62 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 No new debt was issued during the year. The Village retired $2.485 million of general obligation debt. At the end of the year, the Village had total bonded debt outstanding of $60.36 million. As a home rule government, under Illinois law, the Village has no legal debt limit. As of December 31, 2019 the total Village debt represented 4.13% of the 2018 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) 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 of $955,984, property taxes total approximately 9% of General Fund revenue. One of the major retail areas in the Village recently attracted major tenants. The Village is committed to working with developers and land owners to help them fill vacant retail space. Building permit revenues have again exceeded current period expectations. The Village’s hotel/motel tax has reached a high of $2.46 million and exceeded current year budget by $0.21 million due to more business travel. All of the Village’s six hotels have remained open during the year. The continued strength of local corporate employment provides a base level of demand for rooms which is the primary market for these hotels. In December 2019, a novel strain of coronavirus was reported in Wuhan, Hubei province, China. In the first several months of 2020, the virus, SARS-CoV-2, and resulting disease, COVID-19, spread to the United States, including to areas impacting the Village. The Village’s evaluation of the effects of these events is ongoing; however, we anticipate this situation could impact economically sensitive revenue sources such as Sales tax, Hotel/Motel tax, Income tax, Food & Beverage tax and Motor Fuel tax. The extent of the impact of COVID-19 on the Village’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak and related governmental or other regulatory actions. 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. B A S I C F I N A N C I A L S T A T E M E N T S VILLAGE OF DEERFIELD STATEMENT OF NET POSITION As of December 31, 2019 Governmental Activities Business-Type Activities Totals ASSETS Cash and investments $45,723,503 $2,025,689 $47,749,192 Receivables (net) Property taxes 7,880,343 -7,880,343 Accounts 719,394 1,208,525 1,927,919 Accrued interest 60,625 1,205 61,830 Electric utility tax 102,387 -102,387 Due from other governmental units 10,785,039 -10,785,039 Note receivable 20,000 -20,000 Internal balances (1,871,270)1,871,270 - Prepaid items 1,378,846 96,710 1,475,556 Inventory 170,162 113,308 283,470 Deposits 2,575,227 -2,575,227 Capital Assets Capital Assets not being depreciated 21,610,800 2,284,150 23,894,950 Capital assets, being depreciated 119,800,391 74,960,342 194,760,733 Less: Accumulated depreciation (63,682,547)(15,624,105)(79,306,652) Total Assets 145,272,900 66,937,094 212,209,994 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 4,232,660 673,552 4,906,212 Pension items - Police Pension 8,469,895 -8,469,895 Other Postemployment Benefits 1,361,920 90,016 1,451,936 Total Deferred Outflows of Resources 14,064,475 763,568 14,828,043 LIABILITIES Accounts payable 3,613,228 474,525 4,087,753 Accrued payroll 421,059 88,871 509,930 Contracts payable 4,277,918 -4,277,918 Deposits payable -46,132 46,132 Other payables 29,392 -29,392 Accrued interest payable 87,785 79,915 167,700 Due to other governmental units 2,490,561 -2,490,561 Noncurrent Liabilities Due within one year 2,777,815 1,007,801 3,785,616 Due in more than one year 61,279,255 27,745,889 89,025,144 Total Liabilities 74,977,013 29,443,133 104,420,146 DEFERRED INFLOWS OF RESOURCES Property taxes levied for a future period 7,874,573 -7,874,573 Pension items - IMRF 630,922 100,637 731,559 Pension items - Police Pension 8,888,644 -8,888,644 Other Postemployment Benefits 253,877 16,780 270,657 Total Deferred Inflows of Resources 17,648,016 117,417 17,765,433 NET POSITION Net investment in capital assets 51,431,009 34,461,747 85,892,756 Restricted for Maintenance of roadways 479,457 -479,457 Public safety 2,575,227 -2,575,227 Debt service 6,134,549 -6,134,549 Unrestricted 6,092,104 3,678,365 9,770,469 TOTAL NET POSITION $66,712,346 $38,140,112 $104,852,458 See accompanying notes to financial statements. 10 VILLAGE OF DEERFIELD STATEMENT OF ACTIVITIES For the Year Ended December 31, 2019 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities General government $7,943,887 $3,126,661 $-$- Public safety 12,580,314 1,900,377 -43,451 Public works 8,849,016 551,713 616,062 270,652 Interest and fiscal charges 1,061,861 673,020 -- Total Governmental Activities 30,435,078 6,251,771 616,062 314,103 Business-type Activities Water 4,654,721 4,359,790 -2,132,400 Sewerage 4,857,062 2,874,981 -489,937 Refuse 1,496,633 554,694 -- Commuter parking lot 298,131 292,861 -- Total Business-type Activities 11,306,547 8,082,326 -2,622,337 Total $41,741,625 $14,334,097 $616,062 $2,936,440 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 NET POSITION - END OF YEAR See accompanying notes to financial statements. 11 Net (Expenses) Revenues and Changes in Net Position Governmental Activities Business-type Activities Totals $(4,817,226)$-$(4,817,226) (10,636,486)-(10,636,486) (7,410,589)-(7,410,589) (388,841)-(388,841) (23,253,142)-(23,253,142) -1,837,469 1,837,469 -(1,492,144)(1,492,144) -(941,939)(941,939) -(5,270)(5,270) -(601,884)(601,884) (23,253,142)(601,884)(23,855,026) 7,259,121 -7,259,121 157,584 -157,584 2,427,689 -2,427,689 633,668 -633,668 2,457,844 -2,457,844 5,896,439 -5,896,439 1,188,214 -1,188,214 659,345 -659,345 4,480,336 -4,480,336 1,605,244 44,367 1,649,611 51,135 -51,135 300,058 247,348 547,406 27,116,677 291,715 27,408,392 (2,785,304)2,785,304 - 1,078,231 2,475,135 3,553,366 65,634,115 35,664,977 101,299,092 $66,712,346 $38,140,112 $104,852,458 See accompanying notes to financial statements. 12 VILLAGE OF DEERFIELD BALANCE SHEET GOVERNMENTAL FUNDS As of December 31, 2019 General Debt Service Infrastructure Replacement Nonmajor Governmental Funds Totals ASSETS Cash and investments $23,598,334 $190,519 $9,839,241 $6,506,385 $40,134,479 Receivables Taxes 3,677,437 4,197,136 78,483 -7,953,056 Accounts 710,014 -6,200 -716,214 Accrued interest 21,210 916 8,076 25,187 55,389 Electric utility tax 102,387 ---102,387 Due from other governments 1,867,363 7,520,000 1,242,529 82,434 10,712,326 Note receivable 20,000 ---20,000 Prepaid items 1,374,119 ---1,374,119 Inventory 43,026 ---43,026 Deposits 2,575,227 ---2,575,227 TOTAL ASSETS $33,989,117 $11,908,571 $11,174,529 $6,614,006 $63,686,223 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable $2,122,499 $825 $1,452,680 $-$3,576,004 Accrued payroll 412,641 ---412,641 Contracts payable --4,277,918 -4,277,918 Other payables 29,392 ---29,392 Total Liabilities 2,564,532 825 5,730,598 -8,295,955 Deferred Inflows of Resources Unavailable revenues - Library -7,520,000 --7,520,000 Property taxes levied for a future period 3,677,437 4,197,136 --7,874,573 Total Deferred Inflows of Resources 3,677,437 11,717,136 --15,394,573 Fund Balances Nonspendable for note receivable 20,000 ---20,000 Nonspendable for inventory 43,026 ---43,026 Nonspendable for prepaid items 1,374,119 ---1,374,119 Restricted for maintenance of roadways ---479,457 479,457 Restricted for public safety 2,575,227 ---2,575,227 Restricted for debt service ---6,134,549 6,134,549 Assigned to debt service -190,610 --190,610 Assigned to capital projects --5,443,931 -5,443,931 Unassigned 23,734,776 ---23,734,776 Total Fund Balances 27,747,148 190,610 5,443,931 6,614,006 39,995,695 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $33,989,117 $11,908,571 $11,174,529 $6,614,006 $63,686,223 See accompanying notes to financial statements. 13 VILLAGE OF DEERFIELD RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION As of December 31, 2019 Total Fund Balances - Governmental Funds $39,995,695 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. 77,728,644 Less capital assets used in internal service funds (1,591,324) Intergovernmental receivables from the Library is not unavailable revenue on the statement of net position.7,520,000 Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.12,702,555 Deferred outflows of resources related to OPEB do not relate to current financial resources and are not reported in the governmental funds.1,361,920 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.(9,519,566) Deferred inflows of resources related to OPEB do not relate to current financial resources and are not reported in the governmental funds.(253,877) 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 (33,295,000) Compensated absences (1,462,284) Total other postemployment benefit liability (4,673,592) Net pension liability (23,878,271) Accrued interest (87,785) Unamortized debt discount 52,707 Unamortized debt premium (800,630) Due to other governmental units (2,490,561) Less: Internal service fund long-term liabilities 20,265 Internal service funds are reported in the statement of net position as governmental activities.5,383,450 NET POSITION OF GOVERNMENTAL ACTIVITIES $66,712,346 See accompanying notes to financial statements. 14 VILLAGE OF DEERFIELD STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 General Debt Service Infrastructure Replacement Nonmajor Governmental Funds Totals REVENUES Taxes $16,314,668 $2,980,891 $1,468,574 $725,000 $21,489,133 Licenses and permits 2,412,956 ---2,412,956 Intergovernmental 6,253,420 485,389 186,191 616,062 7,541,062 Charges for services 1,288,087 --385,834 1,673,921 Fines and forfeits 274,725 ---274,725 Contributions -727,631 --727,631 Investment income 768,453 34,306 232,537 387,756 1,423,052 Miscellaneous 903,534 -608,403 41,430 1,553,367 Total Revenues 28,215,843 4,228,217 2,495,705 2,156,082 37,095,847 EXPENDITURES Current General government 7,834,585 --161,813 7,996,398 Public safety 9,657,704 --216,055 9,873,759 Highway and streets 2,814,858 --988,000 3,802,858 Capital Outlay --6,585,788 151,004 6,736,792 Debt Service Principal retirement -1,634,000 --1,634,000 Interest and other -1,201,229 --1,201,229 Total Expenditures 20,307,147 2,835,229 6,585,788 1,516,872 31,245,036 Excess (deficiency) of revenues over expenditures 7,908,696 1,392,988 (4,090,083)639,210 5,850,811 OTHER FINANCING SOURCES (USES) Transfers in 2,287,432 455,643 4,006,563 845,975 7,595,613 Transfers out (2,411,627)(1,829,320)-(5,293,995)(9,534,942) Total Other Financing Sources (Uses)(124,195)(1,373,677)4,006,563 (4,448,020)(1,939,329) Net Change in Fund Balances 7,784,501 19,311 (83,520)(3,808,810)3,911,482 FUND BALANCES - Beginning of Year 19,962,647 171,299 5,527,451 10,422,816 36,084,213 FUND BALANCES - END OF YEAR $27,747,148 $190,610 $5,443,931 $6,614,006 $39,995,695 See accompanying notes to financial statements. 15 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, 2019 Net change in fund balances - total governmental funds $3,911,482 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 3,433,240 Less internal service funds 60,799 Depreciation is reported in the government-wide financial statements (2,738,882) Net book value of assets retired (170,362) 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.(540,000) 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. Principal repaid 1,634,000 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. Amortization 38,244 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 1,517 Total other postemployment benefits liability (1,568,755) Accrued interest on debt 101,124 Net pension liability - IMRF (5,098,308) Net pension liability - police pension 2,721,644 Deferred outflows of resources related to pensions 2,847,473 Deferred outflows of resources related to total OPEB liability 1,361,920 Deferred inflows of resources related to pensions (2,062,109) Deferred inflows of resources related to total OPEB liability (26,095) Due to other governmental units (2,490,561) Internal service funds portion of compensated absences (3,681) 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.(334,459) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $1,078,231 See accompanying notes to financial statements. 16 VILLAGE OF DEERFIELD STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2019 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals ASSETS Current Assets Cash and investments $306,688 $753,830 $658,757 $306,414 $2,025,689 Receivables Accounts - billed 152,973 144,664 16,765 -314,402 Accounts - unbilled 483,051 318,301 92,771 -894,123 Accrued interest -535 431 239 1,205 Prepaid items 40,296 51,994 2,340 2,080 96,710 Inventory 98,983 14,325 --113,308 Total Current Assets 1,081,991 1,283,649 771,064 308,733 3,445,437 Noncurrent Assets Capital Assets Capital assets not being depreciated 2,206,650 --77,500 2,284,150 Capital assets being depreciated 24,999,996 48,009,516 -1,950,830 74,960,342 Less: Accumulated depreciation (5,727,565)(8,890,435)-(1,006,105)(15,624,105) Total Noncurrent Assets 21,479,081 39,119,081 -1,022,225 61,620,387 Total Assets 22,561,072 40,402,730 771,064 1,330,958 65,065,824 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 227,568 445,984 --673,552 Other postemployment benefits 24,987 65,029 --90,016 Total Deferred Outflows of Resources 252,555 511,013 --763,568 See accompanying notes to financial statements. 17 Governmental Activities - Internal Service Funds $5,589,024 3,180 - 5,236 4,727 127,136 5,729,303 - 4,837,727 (3,246,403) 1,591,324 7,320,627 - - - See accompanying notes to financial statements. 18 VILLAGE OF DEERFIELD STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2019 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals LIABILITIES Current Liabilities Accounts payable $253,115 $96,534 $117,665 $7,211 $474,525 Accrued payroll 29,471 57,126 -2,274 88,871 Accrued interest -79,915 --79,915 Deposits payable 24,783 21,349 --46,132 Notes payable -875,000 --875,000 Compensated absences payable 45,798 85,197 -1,806 132,801 Total Current Liabilities 353,167 1,215,121 117,665 11,291 1,697,244 Noncurrent Liabilities Long-Term Debt Compensated absences payable 6,971 12,968 -275 20,214 Net pension liability 354,341 694,431 --1,048,772 Other postemployment benefit payable 202,545 190,718 --393,263 Bonds payable -26,283,640 --26,283,640 Total Noncurrent Liabilities 563,857 27,181,757 -275 27,745,889 Total Liabilities 917,024 28,396,878 117,665 11,566 29,443,133 DEFERRED INFLOWS OF RESOURCES Pension items - IMRF 34,002 66,635 --100,637 Other postemployment benefits 4,658 12,122 --16,780 Total Deferred Inflows of Resources 38,660 78,757 --117,417 NET POSITION Net investment in capital assets 21,479,081 11,960,441 -1,022,225 34,461,747 Unrestricted 378,862 477,667 653,399 297,167 1,807,095 TOTAL NET POSITION $21,857,943 $12,438,108 $653,399 $1,319,392 36,268,842 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds.1,871,270 Net Position Business-type Activities $38,140,112 Net internal service funds reported in the statement of net position as governmental activities See accompanying notes to financial statements. 19 Governmental Activities - Internal Service Funds $37,224 8,418 - - - 18,778 64,420 1,487 - - - 1,487 65,907 - - - 1,591,324 5,663,396 7,254,720 (1,871,270) $5,383,450 See accompanying notes to financial statements. 20 VILLAGE OF DEERFIELD STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals OPERATING REVENUES Charges for services $4,359,790 $2,874,981 $554,694 $292,861 $8,082,326 Miscellaneous 189,848 38,553 18,947 -247,348 Total Operating Revenues 4,549,638 2,913,534 573,641 292,861 8,329,674 OPERATING EXPENSES Administration 568,805 575,390 --1,144,195 Operations 3,574,812 2,379,908 1,505,473 271,394 7,731,587 Capital outlay ----- Depreciation 515,317 1,023,025 -26,737 1,565,079 Total Operating Expenses 4,658,934 3,978,323 1,505,473 298,131 10,440,861 Operating Income (Loss)(109,296)(1,064,789)(931,832)(5,270)(2,111,187) NONOPERATING REVENUES (EXPENSES) Gain on sale of capital assets ----- Investment income -18,784 16,808 8,775 44,367 Interest and other -(972,070)--(972,070) Total Nonoperating Revenues (Expenses)-(953,286)16,808 8,775 (927,703) Income (Loss) Before Contributions and Transfers (109,296)(2,018,075)(915,024)3,505 (3,038,890) CONTRIBUTIONS AND TRANSFERS Contributions 2,132,400 489,937 --2,622,337 Transfers in -1,829,320 955,984 -2,785,304 Transfers out ----- Total Contributions and Transfers 2,132,400 2,319,257 955,984 -5,407,641 Change in Net Position 2,023,104 301,182 40,960 3,505 2,368,751 NET POSITION - Beginning of Year 19,834,839 12,136,926 612,439 1,315,887 33,900,091 NET POSITION - END OF YEAR $21,857,943 $12,438,108 $653,399 $1,319,392 36,268,842 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 106,384 Change in Net Position of Business-type Activities $2,475,135 See accompanying notes to financial statements. 21 Governmental Activities - Internal Service Funds $1,151,953 9,247 1,161,200 - 370,671 82,692 323,262 776,625 384,575 51,135 182,190 - 233,325 617,900 - - (845,975) (845,975) (228,075) 7,482,795 $7,254,720 See accompanying notes to financial statements. 22 VILLAGE OF DEERFIELD STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals CASH FLOWS FROM OPERATING ACTIVITIES Received from customers $4,419,721 $2,949,483 $551,354 $292,938 $8,213,496 Received from interfund services ----- Received from miscellaneous revenues 189,848 38,553 18,947 -247,348 Payments to suppliers (3,077,769)(1,193,342)(1,428,057)(209,548)(5,908,716) Payments to employees (850,417)(1,690,399)(71,795)(60,880)(2,673,491) Net Cash Flows From Operating Activities 681,383 104,295 (929,551)22,510 (121,363) CASH FLOWS FROM INVESTING ACTIVITIES Investment income -18,736 16,808 8,775 44,319 Net Cash Flows From Investing Activities -18,736 16,808 8,775 44,319 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund loan (374,695)---(374,695) Interfund transfer -1,829,320 955,984 -2,785,304 Net Cash Flows From Noncapital Financing Activities (374,695)1,829,320 955,984 -2,410,609 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased ----- Bond principal payments -(851,000)--(851,000) Bond interest payments -(978,868)--(978,868) Net Cash Flows From Capital and Related Financing Activities -(1,829,868)--(1,829,868) Net Change in Cash and Cash Equivalents 306,688 122,483 43,241 31,285 503,697 CASH AND CASH EQUIVALENTS - Beginning of Year -631,347 615,516 275,129 1,521,992 CASH AND CASH EQUIVALENTS - END OF YEAR $306,688 $753,830 $658,757 $306,414 $2,025,689 See accompanying notes to financial statements. 23 Governmental Activities - Internal Service Funds $- 1,152,532 9,247 (244,459) (262,964) 654,356 182,190 182,190 - (845,975) (845,975) (211,329) - - (211,329) (220,758) 5,809,782 $5,589,024 See accompanying notes to financial statements. 24 VILLAGE OF DEERFIELD STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds Water Sewerage Refuse Nonmajor Enterprise - Commuter Parking Lot Totals RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING AC TIVITIES Operating income (loss)$(109,296)$(1,064,789)$(931,832)$(5,270)$(2,111,187) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows From Operating Activities Depreciation 515,317 1,023,025 -26,737 1,565,079 Changes in assets and liabilities Receivables 59,931 74,502 (3,340)77 131,170 Prepaid expenses 7,292 9,410 423 376 17,501 Inventories 11,619 22,256 --33,875 Accounts payable 184,070 21,482 5,198 (1,248)209,502 Deposits payable 1,434 923 --2,357 Accrued payroll 8,731 7,831 -1,188 17,750 Other postemployment benefit payable (7,235)(6,568)--(13,803) Compensated absences payable (3,057)(10,488)-650 (12,895) Pension items 12,577 26,711 --39,288 NET CASH FLOWS FROM OPERATING AC TIVITIES $681,383 $104,295 $(929,551)$22,510 $(121,363) NONCASH CAPITAL AND RELATED FINANCING AC TIVITIES Contributions of capital assets by other funds $2,132,400 $393,015 $-$- See accompanying notes to financial statements. 25 Governmental Activities - Internal Service Funds $384,575 323,262 579 2,334 (47,114) (5,999) - 400 - (3,681) - $654,356 $- See accompanying notes to financial statements. 26 VILLAGE OF DEERFIELD STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS As of December 31, 2019 Pension Trust Agency Funds ASSETS Cash and investments $ 3,970,778 $ 5,505,401 Investments U.S. Treasury obligations 7,944,289 - Corporate bonds 6,948,319 - Mutual funds 33,618,073 - Municipal bonds 45,820 - Receivables Accounts - 323,898 Accrued interest 93,992 1,385 Total Assets 52,621,271 5,830,684 LIABILITIES Accounts payable 10,416 249,703 Deposits payable - 2,863,762 Due to members - 2,507,501 Other payables -209,718 Total Liabilities 10,416 5,830,684 NET POSITION Restricted for retirement benefits 52,610,855 - TOTAL NET POSITION $ 52,610,855 $- See accompanying notes to financial statements. 27 VILLAGE OF DEERFIELD STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Year Ended December 31, 2019 Pension Trust AD DITIONS Contributions Contributions - employer $1,100,000 Contributions - employee 427,942 Total Contributions 1,527,942 Investment income Net appreciation in fair value of investments 7,963,792 Interest and dividends earned on investments 1,087,858 Total Investment Income 9,051,650 Less Investment expense 16,180 Net Investment Income 9,035,470 Total Additions 10,563,412 DEDUCTIONS Pension payments 2,892,518 Administrative 38,955 Total Deductions 2,931,473 Change in Net Position 7,631,939 NET POSITION - Beginning of Year 44,978,916 NET POSITION - END OF YEAR $52,610,855 See accompanying notes to financial statements. 28 VILLAGE OF DEERFIELD INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE Page I Summary of Significant Accounting Policies 30 A.Reporting Entity 30 B.Government-W ide and Fund Financial Statements 30 C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation 33 D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity 35 1.Deposits and Investments 35 2.Receivables 38 3.Inventories and Prepaid Items 39 4.Capital Assets 39 5.Deferred Outflows of Resources 40 6.Compensated Absences 40 7.Long-Term Obligations 41 8.Deferred Inflows of Resources 41 9. Equity Classifications 41 10. Interfund Transactions 43 II Stewardship, Compliance, and Accountability 43 A.Excess Expenditures Over Appropriations 43 III Detailed Notes on All Funds 43 A.Deposits and Investments 43 B.Receivables 47 C.Capital Assets 48 D.Interfund Transfers 50 E.Long-Term Obligations 51 IV Other Information 53 A.Employees' Retirement System 53 B.Risk Management 63 C.Commitments and Contingencies 64 D.Joint Ventures 65 E.Other Postemployment Benefits 66 F.Subsequent Event 69 G.Tax Abatement 69 H.Effect of New Accounting Standards on Current-Period Financial Statements 69 See accompanying notes to financial statements. 29 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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. A municipality is considered to have a financial burden if it is legally obligated or has otherwise assumed the obligation to make contributions to the pension plan. 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. PPERS is reported as a fiduciary component unit pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements as a pension trust fund. No separate annual financial report is issued for the PPERS. B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS 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. 30 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Government-Wide Financial Statements (cont.) 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. 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. 31 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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: (cont.) 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 the revenue 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 32 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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 controlled by the Village and the assets are for the benefit of individuals, private organizations, and/or other governmental units. Deposit Fund East Shore Radio Network Fund Deerfield Consolidated JETSB 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. 33 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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 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. 34 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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. 35 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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 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. 36 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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. W ith 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 Fund'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. 37 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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 2a7 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 2019 attaches as an enforceable lien on January 1, 2019, 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 2019 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. 38 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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 2019 property tax levy is recognized as a receivable and deferred inflows in fiscal 2019, net the allowance for uncollectible. As the taxes become available to finance current expenditures, they are recognized as revenues. At December 31, 2019, the property taxes receivable and related deferred inflows consisted of the estimated amount collectible from the 2019 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 consmption 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. 39 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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, 2019, are determined on the basis of current salary rates and include salary related payments. 40 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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. 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." 41 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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.) Government-Wide Statements (cont.) 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. 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. 42 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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.) Fiduciary fund equity is classified as held in trust 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. NOTE II - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A.EXCESS EXPENDITURES OVER APPROPRIATIONS Funds Budgeted Expenditures Actual Expenditures Excess Expenditures Over Budget 2011B Debt Services Sinking Fund $51,500 $161,813 $110,313 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 expenditures are over budget due to the timing of certain expenditures. 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 Police Pension Trust Fund, 2011B Debt Services 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 Police Pension Trust Funds are held separately from those of other funds. 43 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) The Village's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Deposits $23,444,688 $23,607,257 Custodial credit risk - deposits Mutual funds 33,618,072 33,618,072 N/A U.S. Treasury obligations 7,944,289 7,944,289 Custodial credit risk - investments, interest rate risk Certificates of deposit (negotiable)3,493,231 3,493,231 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Corporate bonds 6,948,319 6,948,319 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Municipal bonds 45,820 45,820 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Illinois Funds 20,424,124 20,424,124 Credit risk U.S. Agency obligations 9,860,928 9,860,928 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Petty cash 2,400 -N/A Total Deposits and Investments $105,781,871 $105,942,040 Reconciliation to financial statements Per statement of net position Cash and investments $47,749,192 Per statement of net position - fiduciary funds Cash and investments 9,476,179 U.S. Treasury obligations 7,944,289 Corporate bonds 6,948,319 Mutual funds 33,618,072 Municipal bonds 45,820 Total Deposits and Investments $105,781,871 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. 44 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) 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, 2019, 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, 2019 Investment Type Level 1 Level 2 Level 3 Total Certificates of deposit (negotiable)$3,493,231 $-$-$3,493,231 U.S. Agency obligations -9,860,928 -9,860,928 Total $3,493,231 $9,860,928 $-$13,354,159 Police Pension December 31, 2019 Investment Type Level 1 Level 2 Level 3 Total U.S. Treasury obligations $7,942,738 $1,551 $-$7,944,289 Corporate bonds -6,948,319 -6,948,319 Mutual funds 33,618,072 --33,618,072 Municipal bonds -45,820 -45,820 Total $41,560,810 $6,995,690 $-$48,556,500 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. 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. 45 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) 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, 2019, 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 N/A N/A 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, 2019, there were no investments exposed to concentration of credit risk. 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, 2019, the Village's investments were as follows: Village Maturity (In Months) Investment Type Fair Value Less than 1 Year 1-5 Years 6-10 Years Greater than 10 Years Certificates of deposit (negotiable)$3,493,231 $1,746,950 $1,496,958 $249,323 $- U.S. Agency obligations 9,860,928 -4,531,823 5,329,105 - Totals $13,354,159 $1,746,950 $6,028,781 $5,578,428 $- 46 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Interest Rate Risk (cont.) Police Pension Maturity (In Months) Investment Type Fair Value Less than 1 Year 1-5 Years 6-10 Years Greater than 10 Years U.S. treasury obligations $7,944,289 $1,558,205 $5,047,615 $1,338,469 $- Corporate bonds 6,948,319 175,271 3,387,229 3,139,884 245,935 Municipal bonds 45,820 ---45,820 Totals $14,938,428 $1,733,476 $8,434,844 $4,478,353 $291,755 Money-Weighted Rate of Return Police Pension Fund For the year ended December 31, 2019, the annual money-weighted rate of return on the police pension plan investments, net of pension plan investment expense, was 20.62%. 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. 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. 47 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS Capital asset activity for the year ended December 31, 2019, 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 503,113 122,747 332,172 293,688 Total Capital Assets Not Being Depreciated 21,820,225 122,747 332,172 21,610,800 Capital assets being depreciated Buildings and improvements 13,006,175 541,381 -13,547,556 Vehicles, machinery and equipment 5,427,801 432,829 390,340 5,470,290 Infrastructure 98,888,340 2,668,455 774,250 100,782,545 Total Capital Assets Being Depreciated 117,322,316 3,642,665 1,164,590 119,800,391 Total Capital Assets 139,142,541 3,765,412 1,496,762 141,411,191 Less: Accumulated depreciation for Buildings and improvements (5,072,008)(317,328)-(5,389,336) Vehicles, machinery and equipment (3,496,476)(383,393)219,978 (3,659,891) Infrastructure (53,369,409)(2,038,161)774,250 (54,633,320) Total Accumulated Depreciation (61,937,893)(2,738,882)994,228 (63,682,547) Net Capital Assets Being Depreciated 55,384,423 903,783 170,362 56,117,844 Total Governmental Activities Capital Assets, Net of Accumulated Depreciation $77,204,648 $1,026,530 $502,534 $77,728,644 Depreciation expense was charged to functions as follows: Governmental Activities General government $166,201 Public safety 181,376 Highway and streets 2,391,305 Total Governmental Activities Depreciation Expense $2,738,882 48 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Beginning Balance Additions Deletions Ending Balance Business-type Activities Capital assets not being depreciation Land $1,955,456 $-$-$1,955,456 Construction in progress 132,528 309,537 113,371 328,694 Total Capital Assets Not Being Depreciation 2,087,984 309,537 113,371 2,284,150 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 19,028,926 1,936,234 771,777 20,193,383 Sanitary sewer system 6,514,513 489,937 -7,004,450 Total Capital Assets Being Depreciated 73,305,948 2,426,171 771,777 74,960,342 Total Capital Assets 75,393,932 2,735,708 885,148 77,244,492 Less: Accumulated depreciation for Buildings and improvements (8,250,097)(961,283)-(9,211,380) Parking lot improvements (979,368)(26,737)-(1,006,105) Vehicles, machinery and equipment (547,091)(15,880)-(562,971) Water distribution system (3,239,313)(410,982)771,777 (2,878,518) Sanitary sewer system (1,814,934)(150,197)-(1,965,131) Total Accumulated Depreciation (14,830,803)(1,565,079)771,777 (15,624,105) Net Capital Assets Being Depreciated 58,475,145 861,092 -59,336,237 Business-type Capital Assets, Net of Accumulated Depreciation $60,563,129 $1,170,629 $113,371 $61,620,387 49 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) D.INTERFUND 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 Debt Service General 455,643 To fund debt service Non-Major Governmental Internal Service 845,975 To close out the Enhanced 911 Fund General Non-Major Governmental 2,287,432 To close out the Enhanced 911 Fund Bond Proceeds Infrastructure Replacement 3,006,563 To fund construction project costs Sewerage Debt Service 1,829,320 To fund debt service paid by Sewerage Fund Total - Fund Financial Statements 10,380,917 Less: Fund eliminations (7,595,613) Total Transfers - Government-W ide Statement of Activities $2,785,304 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. 50 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS Long-term obligations activity for the year ended December 31, 2019, was as follows: Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Bonds and Notes Payable General obligation debt $34,929,000 $-$1,634,000 $33,295,000 $1,790,000 (Discounts)/Premiums 786,167 -38,244 747,923 - Sub-totals 35,715,167 -1,672,244 34,042,923 1,790,000 Other Liabilities Vested compensated absences (governmental)1,439,856 999,270 997,107 1,442,019 969,037 Vested compensated absences (internal service)23,946 15,986 19,667 20,265 18,778 Total other postemployment benefit liability 3,104,837 1,568,755 -4,673,592 - Net pension liability - IMRF 1,476,756 5,098,308 -6,575,064 - Net pension liability - Police 20,024,851 -2,721,644 17,303,207 - Total Other Liabilities 26,070,246 7,682,319 3,738,418 30,014,147 987,815 Total Governmental Activities Long-Term Liabilities $61,785,413 $7,682,319 $5,410,662 $64,057,070 $2,777,815 Business-type Activities Bonds and Notes Payable General obligation debt $27,916,000 $-$851,000 $27,065,000 $875,000 (Discounts)/Premiums 98,826 -5,186 93,640 - Sub-totals 28,014,826 -856,186 27,158,640 875,000 Other Liabilities Vested compensated absences 165,910 225,949 238,844 153,015 132,801 Total other postemployment benefit liability 294,559 98,704 -393,263 - Net pension liability - IMRF 278,041 770,731 -1,048,772 - Total Other Liabilities 738,510 1,095,384 238,844 1,595,050 132,801 Total Business-type Activities Long-Term Liabilities $28,753,336 $1,095,384 $1,095,030 $28,753,690 $1,007,801 51 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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, 2019 General Obligation Bond Series 2010A 11/03/2010 12/01/2028 0.80% - 5.00%$12,500,000 $3,000,000 General Obligation Bond Series 2011A 10/17/2011 12/01/2031 1.00% - 3.25%9,900,000 7,295,000 General Obligation Bond Series 2013 01/03/2013 12/01/2031 2.00% - 2.25%9,075,000 4,015,000 General Obligation Bond Series 2015 05/19/2015 12/01/2034 3.00% - 3.25%9,575,000 7,980,000 General Obligation Bond Series 2017 02/06/2017 12/01/2036 3.00% - 3.75%5,700,000 5,165,000 General Obligation Bond Series 2018 06/12/2018 12/01/2037 3.00% - 4.00%5,970,000 5,840,000 Total Governmental Activities - General Obligation Debt $33,295,000 Business-type Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2019 General Obligation Bond Series 2010A 11/03/2010 12/01/2028 0.80% - 5.00%$12,500,000 $4,500,000 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 9,425,000 General Obligation Bond Series 2013 01/03/2013 12/01/2031 2.00% - 2.25%9,075,000 660,000 Total Business-type Activities - General Obligation Debt $27,065,000 52 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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 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 2,049,000 827,674 17,582,000 3,964,469 2025-2029 11,569,000 3,128,302 5,820,000 361,772 2030-2034 9,885,000 1,243,029 -- 2035-2037 2,265,000 144,840 -- Totals $33,295,000 $9,224,174 $27,065,000 $8,033,589 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. 53 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) 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, 2018, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 135 Inactive, non-retired members 95 Active members 104 Total 334 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 2018 was 12.55% 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, 2018, 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. 54 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Actuarial Assumptions. The total pension liability for IMRF was determined by actuarial valuations 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 Investment Rate of Return 7.25% Inflation 2.50% Salary increases 3.39% to 14.25%, including inflation 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. 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%8.50%7.15% International equities 18.00%9.20%7.25% Fixed income 28.00%3.75%3.75% Real estate 9.00%7.30%6.25% Alternatives 7.00% Private equity 12.40%8.50% Hedge funds 5.75%5.50% Commodities 4.75%3.20% Cash equivalents 1.00%2.50%2.50% 55 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.25%. The discount rate calculated using the December 31, 2017 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. 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 7.25% 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 (6.25%) or 1 percentage point higher (8.25%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Village: Total pension liability $48,889,291 $43,390,452 $38,916,315 Plan fiduciary net pension 35,766,616 35,766,616 35,766,616 Net pension liability/(asset)$13,122,675 $7,623,836 $3,149,699 Deerfield Public Library: Total pension liability $13,193,674 $11,709,711 $10,502,283 Plan fiduciary net pension 9,532,307 9,532,307 9,532,307 Net pension liability/(asset)$3,661,367 $2,177,404 $969,976 Total: Total pension liability $62,082,965 $55,100,163 $49,418,598 Plan fiduciary net pension 45,298,923 45,298,923 45,298,923 Net pension liability/(asset)$16,784,042 $9,801,240 $4,119,675 56 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Changes in net pension liability/(asset). The changes in net pension liability/(asset)for the calendar year ended December 31, 2018 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, 2017 $39,757,177 $38,002,380 $1,754,797 Service cost 610,785 -610,785 Interest on total pension liability 2,882,294 -2,882,294 Differences between expected and actual experience of the total pension liability 1,149,983 -1,149,983 Change of assumptions 1,181,440 -1,181,440 Benefit payments, including refunds of employee contributions (2,191,227)(2,191,227)- Contributions - employer -815,652 (815,652) Contributions - employee -292,465 (292,465) Net investment income -(2,053,766)2,053,766 Other (net transfer)-901,112 (901,112) Balances at December 31, 2018 $43,390,452 $35,766,616 $7,623,836 Deerfield Public Library: Balances at December 31, 2017 $10,665,280 $10,170,852 $494,428 Service cost 174,443 -174,443 Interest on total pension liability 823,197 -823,197 Differences between expected and actual experience of the total pension liability 328,441 -328,441 Change of assumptions 344,175 -344,175 Benefit payments, including refunds of employee contributions (625,825)(625,825)- Contributions - employer -232,954 (232,954) Contributions - employee -83,529 (83,529) Net investment income -(586,566)586,566 Other (net transfer)-257,363 (257,363) Balances at December 31, 2018 $11,709,711 $9,532,307 $2,177,404 57 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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) Total: Balances at December 31, 2017 $50,422,457 $48,173,232 $2,249,225 Service cost 785,228 -785,228 Interest on total pension liability 3,705,491 -3,705,491 Differences between expected and actual experience of the total pension liability 1,478,424 -1,478,424 Change of assumptions 1,525,615 -1,525,615 Benefit payments, including refunds of employee contributions (2,817,052)(2,817,052)- Contributions - employer -1,048,606 (1,048,606) Contributions - employee -375,994 (375,994) Net investment income -(2,640,332)2,640,332 Other (net transfer)-1,158,475 (1,158,475) Balances at December 31, 2018 $55,100,163 $45,298,923 $9,801,240 Plan fiduciary net position as a percentage of the total pension liability %82.21 58 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 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, 2019, the Village recognized pension expense of $926,054. 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 $1,006,525 $208 Assumption changes 885,561 731,351 Net difference between projected and actual earnings on pension plan investments 2,360,661 - Contributions subsequent to the measurement date 653,465 - Total $4,906,212 $731,559 Deerfield Public Library: Difference between expected and actual experience $287,468 $60 Assumption changes 252,920 208,878 Net difference between projected and actual earnings on pension plan investments 674,216 - Contributions subsequent to the measurement date 183,789 - Total $1,398,393 $208,938 Total: Difference between expected and actual experience $1,293,993 $268 Assumption changes 1,138,481 940,229 Net difference between projected and actual earnings on pension plan investments 3,034,877 - Contributions subsequent to the measurement date 837,254 - Total $6,304,605 $940,497 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 2020. The remaining amounts reported as deferred outflows and inflows of resources related to pensions ($4,526,854) will be recognized in pension expense as follows: Year Ending December 31,Village Deerfield Public Library Total 2020 $1,104,447 $315,435 $1,419,882 2021 594,767 169,868 764,635 2022 850,516 242,911 1,093,427 2023 971,458 277,452 1,248,910 Total $3,521,188 $1,005,666 $4,526,854 59 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) 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. Plan membership. At December 31, 2019, the Police Pension membership consisted of: Retirees and beneficiaries 39 Inactive, non-retired members 3 Active members 40 Total 82 60 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) 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, 2019 was 25.47% of annual covered payroll. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2019, 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. Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed as of December 31, 2019 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 2.25% Projected salary increases 3.75% - 7.97% Cost-of-living adjustments 2.25 Mortality rates were based on the PubS-2010(A) study. Mortality improvement uses MP-2019 Improvement Rates. 61 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan was 6.50%. The discount rate calculated using the December 31, 2018 measurement date was 6.53%. 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 2.74% for tax exempt 20-year general obligation municipal bonds with an average AA credit rating as of December 31, 2019 to arrive at a discount rate of 6.50% 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 6.50% 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 (5.50%) or 1 percentage point higher (7.50%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $81,002,477 $69,914,062 $61,075,441 Plan fiduciary net position 52,610,855 52,610,855 52,610,855 Net pension liability $28,391,622 $17,303,207 $8,464,586 Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2019 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2018 $65,003,767 $44,978,916 $20,024,851 Service cost 999,423 -999,423 Interest on total pension liability 4,150,305 -4,150,305 Changes in benefit terms 754,622 -754,622 Change of assumptions 1,898,463 -1,898,463 Benefit payments, including refunds of employee contributions (2,892,518)(2,892,518)- Contributions - employer -1,100,000 (1,100,000) Contributions - employee -427,942 (427,942) Net investment income -9,035,470 (9,035,470) Administration -(38,955)38,955 Balances at December 31, 2019 $69,914,062 $52,610,855 $17,303,207 62 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2019, the Village recognized pension expense of $2,671,466. 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 $713,620 $766,436 Assumption changes 7,756,275 5,003,792 Net difference between projected and actual earnings on pension plan investments -3,118,416 Total $8,469,895 $8,888,644 The amounts reported as deferred outflows and inflows of resources related to pensions ($418,749) will be recognized in pension expense as follows: Year Ending December 31,Amount 2020 $(102,390) 2021 (2,040,584) 2022 (88,483) 2023 (70,541) 2024 1,094,532 Thereafter 788,717 Total $(418,749) 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 public entity risk pools called Municipal Insurance Cooperative Agency and Intergovernmental Personnel Benefit Cooperative to provide coverage for losses as described below. Municipal Insurance Cooperative Agency deductibles are accounted for and financed by the fund or funds impacted by the loss. 63 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) B.RISK MANAGEMENT (cont.) 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 $15,000,000 of coverage after a $2,500 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 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. 64 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) C.COMMITMENTS AND CONTINGENCIES (cont.) 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 SW ALCO provides that each member is liable for its proportionate share of any costs arising from defaults in payment obligations by other members. D.JOINT VENTURES Solid Waste Agency of Lake County The Village is a member of SW ALCO, which consists of 35 municipalities. SW ALCO 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). SW ALCO 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 SW ALCO upon the approval of each member. SW ALCO 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 SW ALCO are appointed by the Board of Directors. The Board of Directors determines the general policy of SW ALCO; makes all appropriations; approves contracts; adopts resolutions providing for the issuance of bonds or notes by SW ALCO; 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. SW ALCO is an oversight advisory board providing long range planning services to member municipalities. The Village is a participant in SW ALCO, but no agreement has been reached as to services to be provided. Complete financial statements can be obtained from the Solid W aste Agency of Lake County, 1300 N. Skokie Highway, Suite 103, Gurnee, Illinois 60031. The Village does not have an equity interest in SW ALCO at December 31, 2019. 65 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) 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 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 reduced by the amount payable under Medicare for those expenses that are covered under both. Employees covered by benefit terms. At December 31, 2019, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 25 Active plan members 105 Total 130 TOTAL OPEB LIABILITY The Village's total OPEB liability of $5,066,855 was measured as of December 31, 2019, and was determined by an actuarial valuation as of that date. Actuarial assumptions and other inputs. The total OPEB liability in the December 31, 2019 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. 66 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) E.OTHER POSTEMPLOYMENT BENEFITS (cont.) The discount rate was based on December 26, 2019 Bond Buyer 20-Bond GO 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. The actuarial assumptions used in the December 31, 2019 valuation were based on the results of an actuarial experience study for the period January 1, 2018. CHANGES IN THE TOTAL OPEB LIABILITY Total OPEB Liability Balances at December 31, 2018 $3,399,396 Changes for the year: Service cost 80,482 Interest 135,867 Changes in assumptions or other inputs 1,623,157 Benefit payments (172,047) Net changes 1,667,459 Balances at December 31, 2019 $5,066,855 Changes of assumptions and other inputs reflect a change in the discount rate from 4.10% for the reporting period ending December 31, 2018 to 2.74% for the reporting period ending December 31, 2019.. 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 (1.7 percent) or 1-percentage-point higher (3.7 percent) than the current discount rate: 1% Decrease Discount Rate 1% Increase (1.7%)(2.7%)(3.7%) Total Net OPEB liability $5,937,239 $5,066,855 $4,381,403 67 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) E.OTHER POSTEMPLOYMENT BENEFITS (cont.) Sensitivity of the total net OPEB liability to changes in the healthcare cost trend rates.The following presents the total net OPEB liability of the Village, as well as what the Village's total net 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 Net OPEB liability $4,231,200 $5,066,855 $6,145,555 OPEB EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2019, the Village recognized negative OPEB expense of $368,911. At December 31, 2019, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Changes of assumptions or other inputs $1,451,936 $270,657 Total $1,451,936 $270,657 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: 2019 $135,034 2020 135,034 2021 135,034 2022 135,034 2023 135,034 Thereafter 506,110 Total $1,181,280 68 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) F.SUBSEQUENT EVENT In December 2019, a novel strain of coronavirus was reported in W uhan, Hubei province, China. In the first several months of 2020, the virus, SARS-CoV-2, and resulting disease, COVID-19, spread to the United States, including to areas impacting the Village. The Village's evaluation of the effects of these events is ongoing; however we anticipate this situation could impact investment values. It is highly likely that the values of the Police Pension Fund's investments have changed by material amounts since year end. G.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, 2019 was $1,067,853. At December 31, 2019, the Village has accrued an estimated home-rule sales tax rebate liability of $620,536 for amounts collected by the state through December 31, 2019 but not yet paid to the commercial entity. To date, the Village has rebated $16,896,940 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. 69 VILLAGE OF DEERFIELD NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE IV - OTHER INFORMATION (cont.) H.EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS The Governmental Accounting Standards Board (GASB) has approved the following: Statement No. 84, Fiduciary Activities Statement No. 87, Leases Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period Statement No. 90, Majority Equity Interests Statement No. 91, Conduit Debt Obligations Statement No.92, Omnibus 2020 Statement No. 93, Replacement of Interbank Offered Rates Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements When they become effective, application of these standards may restate portions of these financial statements. The statements listed above through Statement No. 93 had their required effective dates postponed by one year with the issuance of Statement No. 95, Postponement of Effective Dates of Certain Authoritative Guidance, with the exception of Statement No. 87 which was postponed by one and a half years. 70 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, 2019 Budgeted Amounts Original Final Actual REVENUES Taxes $12,427,997 $12,427,997 $16,314,668 Licenses and permits 1,420,500 1,420,500 2,412,956 Intergovernmental 7,160,000 7,160,000 6,253,420 Charges for services 745,000 745,000 1,288,087 Fines and forfeits 276,000 276,000 274,725 Investment income 250,000 250,000 768,453 Miscellaneous 844,500 844,500 903,534 Total Revenues 23,123,997 23,123,997 28,215,843 EXPENDITURES General government 8,492,233 9,027,233 7,834,585 Public safety 10,147,990 10,147,990 9,657,704 Highway and streets 2,872,071 2,872,071 2,814,858 Total Expenditures 21,512,294 22,047,294 20,307,147 Excess (deficiency) of revenues over (under) expenditures 1,611,703 1,076,703 7,908,696 OTHER FINANCING SOURCES (USES) Transfers in --2,287,432 Transfers out (2,411,627)(2,411,627)(2,411,627) Total Other Financing Sources (Uses)(2,411,627)(2,411,627)(124,195) Net Change in Fund Balance $(799,924)$(1,334,924)7,784,501 FUND BALANCE - Beginning of Year 19,962,647 FUND BALANCE - END OF YEAR $27,747,148 See independent auditors' report and accompanying notes to required supplementary information. 71 See independent auditors' report and accompanying notes to required supplementary information. 72 Village Library Total Total pension liability Service cost 646,241$ 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 Five 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. 73 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. 74 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 Five Most Recent Fiscal Years 2018 See independent auditors' report and accompanying notes to required supplementary information. 75 Village Library Total 610,785$ 174,443$ 785,228$ 2,882,294 823,197 3,705,491 1,149,983 328,441 1,478,424 1,181,440 344,175 1,525,615 (2,191,227) (625,825) (2,817,052) 3,633,275 1,044,431 4,677,706 39,757,177 10,665,280 50,422,457 43,390,452$ 11,709,711$ 55,100,163$ 815,652$ 232,954$ 1,048,606$ 292,465 83,529 375,994 (2,053,766) (586,566) (2,640,332) (2,191,227) (625,825) (2,817,052) 901,112 257,363 1,158,475 (2,235,764) (638,545) (2,874,309) 38,002,380 10,170,852 48,173,232 35,766,616$ 9,532,307$ 45,298,923$ 7,623,836$ 2,177,404$ 9,801,240$ 82.21% 8,355,421$ 117.30% 2019 See independent auditors' report and accompanying notes to required supplementary information. 76 VILLAGE OF DEERFIELD ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER CONTRIBTUIONS Five 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. 20162015 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 25 years 5-Year Smoothed Market Level percentage of payroll, closed See independent auditors' report and accompanying notes to required supplementary information. 77 2017 2018 2019 Village Library Total Village Library Total Village Library Total 759,433$ 201,875$ 961,308$ 749,992$ 211,316$ 961,308$ 815,651$ 232,954$ 1,048,605$ (764,138) (203,125) (967,263) (754,638) (212,625) (967,263) (815,652) (232,954) (1,048,606) (4,704)$ (1,251)$ (5,955)$ (4,646)$ (1,309)$ (5,955)$ (1)$ -$ (1)$ 8,044,417$ 8,355,421$ 8,379,246$ 12.02%11.58%12.51% See independent auditors' report and notes to required supplementary information. 78 VILLAGE OF DEERFIELD POLICE PENSION FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Last Six Fiscal Years 2014 2015 2016 2017 2018 2019 Total pension liability Service cost 841,716$ 1,138,463$ 941,842$ 1,002,497$ 781,798$ 999,423$ Interest 3,358,650 2,800,129 4,212,748 3,862,179 4,040,019 4,150,305 Differences between expected and actual experience - 2,088,324 (2,314,800) 106,742 8,204 390,324 Change of Benefit Terms - - - - - 364,298 Changes of assumptions - 12,175,632 (5,531,502) (6,365,881) 5,851,896 1,898,463 Benefit payments, including refunds of member contributions (2,447,399) (2,443,015) (2,603,139) (2,900,648) (2,805,095) (2,892,518) Net change in total pension liability 1,752,967 15,759,533 (5,294,851) (4,295,111) 7,876,822 4,910,295 Total pension liability - beginning 49,204,407 50,957,374 66,716,907 61,422,056 57,126,945 65,003,767 Total pension liability - ending (a)50,957,374$ 66,716,907$ 61,422,056$ 57,126,945$ 65,003,767$ 69,914,062$ Plan fiduciary net position Employer contributions 989,616$ 871,305$ 934,918$ 1,100,000$ 1,100,000$ 1,100,000$ Employee contributions 374,137 517,457 425,791 390,162 418,230 427,942 Net investment income 3,637,510 (4,524) 3,845,026 6,296,845 (1,613,045) 9,035,470 Benefit payments, including refunds of member contributions (2,447,399) (2,443,015) (2,603,139) (2,900,648) (2,805,095) (2,892,518) Administration (20,524) (23,217) (41,182) (41,938) (39,371) (38,955) Net change in plan fiduciary net position 2,533,340 (1,081,994) 2,561,414 4,844,421 (2,939,281) 7,631,939 Plan fiduciary net position - beginning 39,061,016 41,594,356 40,512,362 43,073,776 47,918,197 44,978,916 Plan fiduciary net position - ending (b)41,594,356$ 40,512,362$ 43,073,776$ 47,918,197$ 44,978,916$ 52,610,855$ Village's net pension liability - ending (a) - (b)9,363,018$ 26,204,545$ 18,348,280$ 9,208,748$ 20,024,851$ 17,303,207$ Plan fiduciary net position as a percentage of the total pension liability 81.63%60.72%70.13%83.88%69.19%75.25% Covered payroll 3,702,863$ 3,806,499$ 3,825,286$ 3,949,608$ 4,220,281$ 4,318,271$ Village's net pension liability as a percentage of covered payroll 252.86%688.42%479.66%233.16%474.49%400.70% 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, 2019, is 6.5%. The discount rate used in the prior actuarial valuations, dated December 31, 2018 and December 31, 2017 was 7.25%, and dated December 31, 2016, December 31, 2015 and December 31, 2014 was 6.44%, 5.63%, and 7.00%, respectively. See independent auditors' report and notes to required supplementary information. 79 2011 2012 2013 2013* Actuarially determined contribution 1,350,132$ 860,228$ 1,023,006$ 895,479$ Contributions in relation to the actuarially determined contribution 1,350,132 860,228 1,023,006 895,479 Contribution deficiency (excess)-$ -$ -$ -$ Covered payroll 3,216,370$ 3,412,049$ 3,512,925$ 3,591,966$ Contributions as a percentage of covered- employee payroll 41.98%25.21%29.12%24.93% *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. 80 2014 2015 2016 2017 2018 2019 989,616$ 871,305$ 934,918$ 934,836$ 850,587$ 929,599$ 989,616 871,305 934,918 1,100,000 1,100,000 1,100,000 -$ -$ -$ (165,164)$ (249,413)$ (170,401)$ 3,702,863$ 3,806,499$ 3,825,286$ 3,949,608$ 4,220,281$ 4,318,271$ 26.73%22.89%24.44%27.85%26.06%25.47% See independent auditors' report and notes to required supplementary information. 81 VILLAGE OF DEERFIELD POLICE PENSION FUND SCHEDULE OF INVESTMENT RETURNS Last Six Fiscal Years 2014 2015 2016 2017 2018 2019 Annual money-weighted rate of return, net of investment expense 9.54%-0.02%9.73%15.08%-3.42%20.62% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. See independent auditors' report and notes to required supplementary information. 82 2018 2019 Total OPEB Liability Service cost 90,149$ 80,482$ Interest 127,960 135,867 Changes of benefit terms (202,501) - Differences between expected and actual experience - - Changes of assumptions (251,824) 1,623,157 Benefit payments (163,613) (172,047) Net Change in Total OPEB Liability (399,829) 1,667,459 Total OPEB Liability - Beginning 3,799,225 3,399,396 Total OPEB Liability - Ending 3,399,396$ 5,066,855$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00%0.00% Covered payroll 9,522,034$ 10,807,795$ Total OPEB liability as a percentage of covered payroll 35.70%46.88% 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. Changes of assumptions. In 2019, the discount rate at the beginning of the year was 4.10% and at the end of the year was 2.74%. RETIREE HEALTH PLAN VILLAGE OF DEERFIELD NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended December 31, 2019 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 2019. 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. 83 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, 2019 Budgeted Amounts Original Final Actual TAXES Property $3,562,997 $3,562,997 $3,553,230 Replacement 135,000 135,000 157,584 Home rule sales 3,350,000 3,350,000 2,427,689 Local use 430,000 430,000 633,668 Electric utility 1,250,000 1,250,000 1,188,214 Hotel/Motel 2,250,000 2,250,000 2,457,844 Telecommunication 1,450,000 1,450,000 5,896,439 Total taxes 12,427,997 12,427,997 16,314,668 LICENSES AND PERMITS Beer/liquor licenses 70,000 70,000 61,744 Food licenses 5,000 5,000 6,329 Other business licenses 5,500 5,500 5,475 Building permits 925,000 925,000 1,918,596 Contractor's licenses 7,000 7,000 7,250 Nonbusiness licenses and permits 38,000 38,000 42,355 Vehicle licenses 370,000 370,000 371,207 Total licenses and permits 1,420,500 1,420,500 2,412,956 INTERGOVERNMENTAL State grant --27,278 Federal grant --2,021 Sales taxes 5,400,000 5,400,000 4,162,743 Income taxes 1,700,000 1,700,000 1,998,925 State highway maintenance 60,000 60,000 62,453 Total intergovernmental 7,160,000 7,160,000 6,253,420 CHARGES FOR SERVICES Billings 220,000 220,000 246,262 Dispatching services 405,000 405,000 974,431 50/50 tree planting 65,000 65,000 49,089 Engineering services 55,000 55,000 18,305 Total charges for services 745,000 745,000 1,288,087 MISCELLANEOUS False alarms 27,000 27,000 19,125 Rentals 250,000 250,000 252,886 Miscellaneous 110,000 110,000 187,486 Sale of capital assets 7,500 7,500 1,523 Franchise fees 450,000 450,000 442,514 Total miscellaneous 844,500 844,500 903,534 Fines and forfeits 276,000 276,000 274,725 Investment income 250,000 250,000 768,453 TOTAL REVENUES $23,123,997 $23,123,997 $28,215,843 84 VILLAGE OF DEERFIELD DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 Budgeted Amounts Original Final Actual GENERAL GOVERNMENT Finance department Personnel services $977,500 $977,500 $917,860 Training and development 14,300 14,300 5,332 Contractual services 3,071,094 3,071,094 2,312,942 Commodities 10,500 10,500 4,442 Utilities 18,710 18,710 22,254 Capital outlay 4,000 4,000 3,849 Total Finance department 4,096,104 4,096,104 3,266,679 Administration Personnel services 1,299,000 1,299,000 1,232,974 Training and development 23,400 23,400 14,214 Contractual services 742,093 1,277,093 1,179,521 Commodities 6,300 6,300 5,135 Utilities 10,510 10,510 11,230 Capital outlay 104,467 104,467 109,805 Total Administration 2,185,770 2,720,770 2,552,879 Community development Personnel services 1,238,300 1,238,300 1,075,415 Training and development 10,000 10,000 3,540 Contractual services 144,807 144,807 96,217 Commodities 14,900 14,900 11,214 Utilities 11,985 11,985 9,404 Capital outlay 31,250 31,250 23,594 Total Community development 1,451,242 1,451,242 1,219,384 Engineering Personnel services 433,900 433,900 475,171 Training and development 6,100 6,100 3,391 Contractual services 273,449 273,449 277,677 Commodities 10,500 10,500 10,667 Utilities 9,870 9,870 6,439 Capital outlay 25,298 25,298 22,298 Total Engineering 759,117 759,117 795,643 Total general government 8,492,233 9,027,233 7,834,585 PUBLIC SAFETY POLICE DEPARTMENT Administrative services Personnel services 1,125,179 1,125,179 971,656 Training and development 13,240 13,240 4,325 Contractual services 755,689 755,689 623,918 Commodities 23,900 23,900 21,573 Utilities 18,085 18,085 15,318 Capital outlay 162,724 162,724 162,337 Total Administrative services 2,098,817 2,098,817 1,799,127 85 VILLAGE OF DEERFIELD DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 Budgeted Amounts Original Final Actual Communications Personnel services $1,107,275 $1,107,275 $1,050,882 Training and development 6,800 6,800 4,074 Contractual services 500 500 350,801 Capital outlay 5,000 5,000 4,006 Total Communications 1,119,575 1,119,575 1,409,763 Investigations Personnel services 1,136,447 1,136,447 754,145 Training and development 22,500 22,500 6,254 Contractual services 6,520 6,520 7,618 Commodities 12,900 12,900 10,581 Capital outlay 7,500 7,500 2,002 Total Investigations 1,185,867 1,185,867 780,600 Patrol Personnel services 5,422,444 5,422,444 5,390,011 Training and development 46,560 46,560 36,082 Contractual services 60,500 60,500 63,340 Commodities 70,575 70,575 65,787 Utilities 7,000 7,000 7,778 Capital outlay 29,652 29,652 11,624 Total Patrol 5,636,731 5,636,731 5,574,622 Special detail Personnel services 107,000 107,000 93,592 Total Special detail 107,000 107,000 93,592 Total public safety 10,147,990 10,147,990 9,657,704 HIGHWAYS AND STREETS Administration Personnel services 289,250 289,250 261,121 Training and development 4,400 4,400 1,667 Contractual services 242,019 242,019 209,768 Commodities 6,700 6,700 7,329 Utilities 10,265 10,265 8,402 Capital outlay 221,537 221,537 220,570 Total Administration 774,171 774,171 708,857 Maintenance Personnel services 780,150 780,150 663,283 Contractual services 174,000 174,000 223,074 Commodities 147,000 147,000 151,949 Utilities 110,000 110,000 117,124 Total Maintenance 1,211,150 1,211,150 1,155,430 Snow and ice control Personnel services 118,250 118,250 121,364 Contractual services 114,000 114,000 166,499 Commodities 167,250 167,250 182,266 Capital outlay 750 750 - Total Snow and ice control 400,250 400,250 470,129 86 VILLAGE OF DEERFIELD DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 Budgeted Amounts Original Final Actual Forestry Personnel services $8,600 $8,600 $2,177 Contractual services 242,500 242,500 219,339 Commodities 10,000 10,000 2,261 Capital outlay 167,000 167,000 201,531 Total Forestry 428,100 428,100 425,308 Train station maintenance Personnel services 9,500 9,500 10,347 Contractual services 43,500 43,500 40,694 Commodities 3,000 3,000 2,349 Utilities 2,400 2,400 1,744 Total Train station maintenance 58,400 58,400 55,134 Total highways and streets 2,872,071 2,872,071 2,814,858 TOTAL EXPENDITURES $21,512,294 $22,047,294 $20,307,147 87 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND For the Year Ended December 31, 2019 Budgeted Amounts Original Final Actual REVENUES Taxes Property $2,996,360 $2,996,360 $2,980,891 Intergovernmental 481,514 481,514 485,389 Contribution from library 727,631 727,631 727,631 Investment income 6,000 6,000 34,306 Total Revenues 4,211,505 4,211,505 4,228,217 EXPENDITURES Debt service Principal retirement 1,634,000 1,634,000 1,634,000 Interest and other 1,197,029 1,197,029 1,197,029 Fiscal charges 6,000 6,000 4,200 Total Expenditures 2,837,029 2,837,029 2,835,229 Excess (deficiency) of revenues over (under) expenditures 1,374,476 1,374,476 1,392,988 OTHER FINANCING SOURCES (USES) Transfers in 455,643 455,643 455,643 Transfers out (1,829,320)(1,829,320)(1,829,320) Total Other Financing Sources (Uses)(1,373,677)(1,373,677)(1,373,677) Net Change in Fund Balance $799 $799 19,311 FUND BALANCE - Beginning of Year 171,299 FUND BALANCE - END OF YEAR $190,610 88 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE REPLACEMENT FUND For the Year Ended December 31, 2019 Budgeted Amounts Original Final Actual REVENUES Taxes Home rule sales $1,150,000 $1,150,000 $809,229 Food and beverage 525,000 525,000 659,345 Intergovernmental 182,000 182,000 186,191 Investment income 50,000 50,000 232,537 Miscellaneous 525,000 525,000 608,403 Total Revenues 2,432,000 2,432,000 2,495,705 EXPENDITURES Capital outlay Contractual services 1,137,000 1,137,000 662,881 Construction 5,786,485 5,786,485 5,922,907 Total Expenditures 6,923,485 6,923,485 6,585,788 Excess (deficiency) of revenues over (under) expenditures (4,491,485)(4,491,485)(4,090,083) OTHER FINANCING SOURCES (USES) Transfers in 4,000,000 4,000,000 4,006,563 Total Other Financing Sources (Uses)4,000,000 4,000,000 4,006,563 Net Change in Fund Balance $(491,485)$(491,485)(83,520) FUND BALANCE - Beginning of Year 5,527,451 FUND BALANCE - END OF YEAR $5,443,931 89 VILLAGE OF DEERFIELD COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS As of December 31, 2019 Motor Fuel Tax Enhanced 911 2011B Debt Service Sinking Bond Proceeds Total Nonmajor Governmental Funds ASSETS Cash and investments $396,577 $-$6,109,808 $-$6,506,385 Receivables Accrued interest 446 -24,741 -25,187 Due from other governments 82,434 ---82,434 TOTAL ASSETS $479,457 $-$6,134,549 $-$6,614,006 FUND BALANCES Fund Balances Restricted for maintenance of roadways 479,457 ---479,457 Restricted for debt service --6,134,549 -6,134,549 Total Fund Balances 479,457 -6,134,549 -6,614,006 TOTAL FUND BALANCES $479,457 $-$6,134,549 $-$6,614,006 90 VILLAGE OF DEERFIELD COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 Motor Fuel Tax Enhanced 911 2011B Debt Service Sinking Bond Proceeds Total Nonmajor Governmental Funds REVENUES Property taxes $-$-$725,000 $-$725,000 Intergovernmental 616,062 ---616,062 Charges for services -385,834 --385,834 Investment income 19,096 16,344 312,618 39,698 387,756 Miscellaneous -41,430 --41,430 Total Revenues 635,158 443,608 1,037,618 39,698 2,156,082 EXPENDITURES Current General government --161,813 -161,813 Public safety -216,055 --216,055 Highway and streets 988,000 ---988,000 Capital Outlay -151,004 --151,004 Debt Service Total Expenditures 988,000 367,059 161,813 -1,516,872 Excess (deficiency) of revenues over expenditures (352,842)76,549 875,805 39,698 639,210 OTHER FINANCING SOURCES (USES) Transfers in -845,975 --845,975 Transfers out -(2,287,432)-(3,006,563)(5,293,995) Total Other Financing Sources (Uses)-(1,441,457)-(3,006,563)(4,448,020) Net Change in Fund Balances (352,842)(1,364,908)875,805 (2,966,865)(3,808,810) FUND BALANCES - Beginning of Year 832,299 1,364,908 5,258,744 2,966,865 10,422,816 FUND BALANCES - END OF YEAR $479,457 $-$6,134,549 $-$6,614,006 91 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, 2019 Budgeted Amounts Original Final Actual REVENUES Intergovernmental Allotments earned $470,000 $470,000 $616,062 Investment income 6,000 6,000 19,096 Total Revenues 476,000 476,000 635,158 EXPENDITURES Highway and Streets Capital outlay 988,000 988,000 988,000 Total Expenditures 988,000 988,000 988,000 Net Change in Fund Balance $(512,000)$(512,000)(352,842) FUND BALANCE - Beginning of Year 832,299 FUND BALANCE - END OF YEAR $479,457 92 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - ENHANCED 911 FUND For the Year Ended December 31, 2019 Budgeted Amounts Original Final Actual REVENUES Charges for Services Other charges $320,000 $320,000 $385,834 Investment income 12,000 12,000 16,344 Miscellaneous --41,430 Total Revenues 332,000 332,000 443,608 EXPENDITURES Public Safety Contractual services 362,179 362,179 214,333 Utilities 10,000 10,000 1,722 Capital Outlay 410,536 410,536 151,004 Total Expenditures 782,715 782,715 367,059 Excess (deficiency) of revenues over (under) expenditures (450,715)(450,715)76,549 OTHER FINANCING SOURCES (USES) Transfers in --845,975 Transfers out --(2,287,432) Total Other Financing Sources (Uses)--(1,441,457) Net Change in Fund Balance $(450,715)$(450,715)(1,364,908) FUND BALANCE - Beginning of Year 1,364,908 FUND BALANCE - END OF YEAR $- 93 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, 2019 Budgeted Amounts Original Final Actual REVENUES Property taxes $725,000 $725,000 $725,000 Investment income 90,000 90,000 312,618 Total Revenues 815,000 815,000 1,037,618 EXPENDITURES General Government: Contractual services 51,500 51,500 161,813 Total Expenditures 51,500 51,500 161,813 Excess (deficiency) of revenues over (under) expenditures 763,500 763,500 875,805 Net Change in Fund Balance $763,500 $763,500 875,805 FUND BALANCE - Beginning of Year 5,258,744 FUND BALANCE - END OF YEAR $6,134,549 94 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - BOND PROCEEDS For the Year Ended December 31, 2019 Budgeted Amounts Original Final Actual REVENUES Investment income $10,000 $10,000 $39,698 Total Revenues 10,000 10,000 39,698 EXPENDITURES Debt Service Total Expenditures --- Excess (deficiency) of revenues over (under) expenditures 10,000 10,000 39,698 OTHER FINANCING SOURCES (USES) Transfers out (3,000,000)(3,000,000)(3,006,563) Total Other Financing Sources (Uses)(3,000,000)(3,000,000)(3,006,563) Net Change in Fund Balance $(2,990,000)$(2,990,000)(2,966,865) FUND BALANCE - Beginning of Year 2,966,865 FUND BALANCE - END OF YEAR $- 95 96 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATER FUND For the Year Ended December 31, 2019 Original Final Total OPERATING REVENUES Charges for services Water sales 5,000,000$ 5,000,000$ 4,359,790$ Miscellaneous Miscellaneous - - 15,209 Permits and fees 40,000 40,000 62,254 Penalties 30,000 30,000 35,212 Other 71,500 71,500 77,173 Total operating revenues 5,141,500 5,141,500 4,549,638 OPERATING EXPENSES Administration 710,336 710,336 568,805 Operations Distribution 3,149,942 3,149,942 2,652,796 Maintenance - mains and fire hydrants 696,200 696,200 648,552 Maintenance - meters 242,072 242,072 273,464 Total operating expenses excluding depreciation 4,798,550 4,798,550 4,143,617 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 342,950 342,950 406,021 Depreciation - - 515,317 OPERATING INCOME (LOSS) 342,950 342,950 (109,296) CONTRIBUTIONS Contributions - - 2,132,400 CHANGE IN NET POSITION 342,950$ 342,950$ 2,023,104 NET POSITION - BEGINNING OF YEAR 19,834,839 NET POSITION - END OF YEAR 21,857,943$ Budgeted Amounts 97 VILLAGE OF DEERFIELD SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER FUND For the Year Ended December 31, 2019 Original Final Actual ADMINISTRATION Personnel services 353,900$ 353,900$ 232,856$ Training and development 2,250 2,250 3,051 Contractual services 282,041 282,041 260,563 Commodities 5,500 5,500 5,965 Utilities 7,615 7,615 7,371 Capital Outlay 59,030 59,030 58,999 Total administration 710,336 710,336 568,805 OPERATIONS Distribution Personnel services 147,392 147,392 145,870 Contractual services 48,000 48,000 46,183 Commodities 2,857,050 2,857,050 2,388,623 Utilities 92,500 92,500 72,120 Capital Outlay 5,000 5,000 - Total distribution 3,149,942 3,149,942 2,652,796 Main and fire hydrant maintenance Personnel services 406,000 406,000 365,021 Contractual services 121,000 121,000 116,839 Commodities 162,200 162,200 160,880 Capital outlay 7,000 7,000 5,812 Total main and fire hydrant maintenance 696,200 696,200 648,552 Meter maintenance Personnel services 118,072 118,072 117,686 Contractual services 35,000 35,000 26,779 Commodities 4,000 4,000 1,599 Capital outlay 85,000 85,000 127,400 Total meter maintenance 242,072 242,072 273,464 Total operations 4,088,214 4,088,214 3,574,812 TOTAL OPERATING EXPENSES 4,798,550$ 4,798,550$ 4,143,617$ Budgeted Amounts 98 VILLAGE OF DEERFIELD SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION WATER FUND For the Year Ended December 31, 2019 Balances Balances December 31,December 31, 2018 Additions Retirements 2019 Land 1,877,956$ -$ -$ 1,877,956$ Construction in progress 132,528 309,537 113,371 328,694 Buildings 4,180,123 - - 4,180,123 Water system improvements 19,028,926 1,936,234 771,777 20,193,383 Equipment and vehicles 626,490 - - 626,490 TOTAL 25,846,023$ 2,245,771$ 885,148$ 27,206,646$ Balances Balances December 31,December 31, 2018 Additions Retirements 2019 Buildings 2,197,621$ 88,455$ -$ 2,286,076$ Water system improvements 3,239,313 410,982 771,777 2,878,518 Equipment and vehicles 547,091 15,880 - 562,971 TOTAL 5,984,025$ 515,317$ 771,777$ 5,727,565$ NET ASSET VALUE 21,479,081$ Assets Accumulated Depreciation 99 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended December 31, 2019 Original Final Total OPERATING REVENUES Charges for services Sewer charges 3,125,500$ 3,125,500$ 2,874,981$ Miscellaneous Miscellaneous - - 241 Permits and fees 15,000 15,000 6,600 Penalties 30,000 30,000 31,712 Other 5,000 5,000 - Total operating revenues 3,175,500 3,175,500 2,913,534 OPERATING EXPENSES Administration 671,831 671,831 575,390 Operations Treatment plant 1,765,034 1,765,034 1,670,473 Cleaning and maintenance 315,200 315,200 255,698 Construction 418,200 418,200 453,737 Total operating expenses excluding depreciation 3,170,265 3,170,265 2,955,298 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 5,235 5,235 (41,764) Depreciation - - 1,023,025 OPERATING INCOME (LOSS) 5,235 5,235 (1,064,789) NON-OPERATING REVENUES (EXPENSES) Investment income 9,000 9,000 18,784 Interest and other (980,320) (980,320) (972,070) Total non-operating revenues (expenses)(971,320) (971,320) (953,286) INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS (966,085) (966,085) (2,018,075) CONTRIBUTIONS AND TRANSFERS Transfers in 1,829,320 1,829,320 1,829,320 Contributions - - 489,937 Net contributions and transfers 1,829,320 1,829,320 2,319,257 CHANGE IN NET POSITION 863,235$ 863,235$ 301,182 NET POSITION - BEGINNING OF YEAR 12,136,926 NET POSITION - END OF YEAR 12,438,108$ Budgeted Amounts 100 VILLAGE OF DEERFIELD SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended December 31, 2019 Original Final Actual ADMINISTRATION Personnel services 252,850$ 252,850$ 221,435$ Training and development 2,500 2,500 1,415 Contractual services 318,300 318,300 255,696 Commodities 5,050 5,050 3,927 Utilities 4,225 4,225 3,803 Capital outlay 88,906 88,906 89,114 Total administration 671,831 671,831 575,390 OPERATIONS Treatment plant Personnel services 982,525 982,525 927,486 Training and development 11,400 11,400 6,351 Contractual services 250,759 250,759 243,893 Commodities 111,000 111,000 93,660 Utilities 317,785 317,785 323,462 Miscellaneous 33,000 33,000 18,000 Capital Outlay 58,565 58,565 57,621 Total treatment plant 1,765,034 1,765,034 1,670,473 Cleaning and maintenance Personnel services 248,700 248,700 212,163 Contractual services 49,000 49,000 27,466 Commodities 17,500 17,500 16,069 Total cleaning and maintenance 315,200 315,200 255,698 Construction Personnel services 328,500 328,500 346,801 Contractual services 20,500 20,500 17,995 Commodities 64,200 64,200 83,846 Capital Outlay 5,000 5,000 5,095 Total construction 418,200 418,200 453,737 Total operations 2,498,434 2,498,434 2,379,908 TOTAL OPERATING EXPENSES 3,170,265$ 3,170,265$ 2,955,298$ Budgeted Amounts 101 VILLAGE OF DEERFIELD SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION SEWERAGE FUND For the Year Ended December 31, 2019 Balances Balances December 31,December 31, 2018 Additions Retirements 2019 Sewer system 6,514,513$ 489,937$ -$ 7,004,450$ Buildings and improvements 41,005,066 - - 41,005,066 TOTAL 47,519,579$ 489,937$ -$ 48,009,516$ Balances Balances December 31,December 31, 2018 Additions Retirements 2019 Sewer system 1,814,934$ 150,197$ -$ 1,965,131$ Buildings and improvements 6,052,476 872,828 - 6,925,304 TOTAL 7,867,410$ 1,023,025$ -$ 8,890,435 NET ASSET VALUE 39,119,081$ Assets Accumulated Depreciation 102 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL REFUSE FUND For the Year Ended December 31, 2019 Original Final Total OPERATING REVENUES Charges for services Refuse billing 536,620$ 536,620$ 554,694$ Miscellaneous 17,000 17,000 18,947 Total operating revenues 553,620 553,620 573,641 OPERATING EXPENSES Operations Personnel services 117,250 117,250 71,795 Contractual services 1,394,400 1,394,400 1,390,456 Commodities 24,700 24,700 29,474 Capital outlay 13,748 13,748 13,748 Total operating expenses excluding depreciation 1,550,098 1,550,098 1,505,473 OPERATING INCOME (LOSS)(996,478) (996,478) (931,832) NON-OPERATING REVENUES (EXPENSES) Investment income 5,000 5,000 16,808 Total non-operating revenues (expenses)5,000 5,000 16,808 INCOME (LOSS) BEFORE TRANSFERS (991,478) (991,478) (915,024) TRANSFERS Transfers in 955,984 955,984 955,984 CHANGE IN NET POSITION (35,494)$ (35,494)$ 40,960 NET POSITION - BEGINNING OF YEAR 612,439 NET POSITION - END OF YEAR 653,399$ Budgeted Amounts 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, 2019 Original Final Total OPERATING REVENUES Charges for services Parking lot fees 293,000$ 293,000$ 292,861$ Total operating revenues 293,000 293,000 292,861 OPERATING EXPENSES Operations 296,850 296,850 271,394 Depreciation - - 26,737 Total operating expenses 296,850 296,850 298,131 OPERATING INCOME (LOSS) (3,850) (3,850) (5,270) NON-OPERATING REVENUES (EXPENSES) Investment income 4,000 4,000 8,775 Total non-operating revenues (expenses)4,000 4,000 8,775 CHANGE IN NET POSITION 150$ 150$ 3,505 NET POSITION - BEGINNING OF YEAR 1,315,887 NET POSITION - END OF YEAR 1,319,392$ Budgeted Amounts 104 VILLAGE OF DEERFIELD SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended December 31, 2019 Original Final Actual OPERATIONS Parking lots - village and federal funds Personnel services 23,000$ 23,000$ 31,359$ Contractual services 133,400 133,400 102,819 Commodities 750 750 - Utilities 3,300 3,300 2,283 Total parking lots - village and federal funds 160,450 160,450 136,461 Parking lots - village construction Personnel services 23,000 23,000 31,359 Contractual services 107,400 107,400 100,768 Commodities 1,000 1,000 - Utilities 5,000 5,000 2,806 Total treatment plant 136,400 136,400 134,933 TOTAL OPERATING EXPENSES 296,850$ 296,850$ 271,394$ Budgeted Amounts 105 VILLAGE OF DEERFIELD SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION COMMUTER PARKING LOT FUND For the Year Ended December 31, 2019 Balances Balances December 31,December 31, 2018 Additions Retirements 2019 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, 2018 Additions Retirements 2019 Parking lot improvements 979,368$ 26,737$ -$ 1,006,105$ TOTAL 979,368$ 26,737$ -$ 1,006,105 NET ASSET VALUE 1,022,225$ Assets Accumulated Depreciation VILLAGE OF DEERFIELD COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS As of December 31, 2019 Garage Fund Vehicle & Equipment Replacement Totals ASSETS Current Assets Cash and investments $2,912 $5,586,112 $5,589,024 Receivables Accounts - billed 3,180 -3,180 Accrued interest -5,236 5,236 Prepaid items 4,727 -4,727 Inventory 127,136 -127,136 Total Current Assets 137,955 5,591,348 5,729,303 Noncurrent Assets Capital assets Property and equipment -4,837,727 4,837,727 Less: Accumulated depreciation -(3,246,403)(3,246,403) Total Noncurrent Assets -1,591,324 1,591,324 Total Assets 137,955 7,182,672 7,320,627 LIABILITIES Current Liabilities Accounts payable 15,356 21,868 37,224 Accrued payroll 8,418 -8,418 Compensated absences payable 18,778 -18,778 Total Current Liabilities 42,552 21,868 64,420 Noncurrent Liabilities Compensated absences payable 1,487 -1,487 Total Noncurrent Liabilities 1,487 -1,487 Total Liabilities 44,039 21,868 65,907 NET POSITION Net investment in capital assets -1,591,324 1,591,324 Unrestricted 93,916 5,569,480 5,663,396 TOTAL NET POSITION $93,916 $7,160,804 $7,254,720 106 VILLAGE OF DEERFIELD COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2019 Garage Fund Vehicle & Equipment Replacement Totals OPERATING REVENUES Billings $412,715 $739,238 $1,151,953 Miscellaneous 9,247 -9,247 Total Operating Revenues 421,962 739,238 1,161,200 OPERATING EXPENSES Operations 370,671 -370,671 Capital outlay -82,692 82,692 Total Operating Expenses 370,671 82,692 453,363 Operating Income (Loss) Before Depreciation 51,291 656,546 707,837 Depreciation -323,262 323,262 Operating Income (Loss)51,291 333,284 384,575 NONOPERATING REVENUES (EXPENSES) Gain on sale of capital assets -51,135 51,135 Investment income -182,190 182,190 Total Nonoperating Revenues (Expenses)-233,325 233,325 Income (Loss) Before Contributions and Transfers 51,291 566,609 617,900 CONTRIBUTIONS AND TRANSFERS Transfers out -(845,975)(845,975) Total Contributions and Transfers -(845,975)(845,975) Change in net position 51,291 (279,366)(228,075) NET POSITION - Beginning of Year 42,625 7,440,170 7,482,795 NET POSITION - END OF YEAR $93,916 $7,160,804 $7,254,720 107 VILLAGE OF DEERFIELD COMBINING STATEMENT OF CASH FLOW S INTERNAL SERVICE FUNDS For the Year Ended December 31, 2019 Garage Fund Vehicle & Equipment Replacement Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services $412,505 $740,027 $1,152,532 Receipts from miscellaneous revenue 9,247 -9,247 Payments to suppliers (156,360)(88,099)(244,459) Payments to employees (262,964)-(262,964) Net Cash Flows From Operating Activities 2,428 651,928 654,356 CASH FLOWS FROM INVESTING ACTIVITIES Investment income -182,190 182,190 Net Cash Flows From Investing Activities -182,190 182,190 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund transfer -(845,975)(845,975) Net Cash Flows From Noncapital Financing Activities -(845,975)(845,975) CASH FLOWS FROM CAPITAL AND RELATED FINANCING AC TIVITIES Acquisition and construction of capital assets -(211,329)(211,329) Net Cash Flows From Capital and Related Financing Activities -(211,329)(211,329) Net Change in Cash and Cash Equivalents 2,428 (223,186)(220,758) CASH AND CASH EQUIVALENTS - Beginning of Year 484 5,809,298 5,809,782 CASH AND CASH EQUIVALENTS - END OF YEAR $2,912 $5,586,112 $5,589,024 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)$51,291 $333,284 $384,575 Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows From Operating Activities Depreciation -323,262 323,262 Changes in assets and liabilities Accounts receivable (210)789 579 Prepaid expenses 2,334 -2,334 Inventories (47,114)-(47,114) Accounts payable (592)(5,407)(5,999) Accrued payroll 400 -400 Compensated absences payable (3,681)-(3,681) NET CASH FLOWS FROM OPERATING AC TIVITIES $2,428 $651,928 $654,356 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None 108 VILLAGE OF DEERFIELD SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL GARAGE FUND For the Year Ended December 31, 2019 Budgeted Amounts Original Final Actual OPERATING REVENUES Interfund services Billings $395,000 $395,000 $412,715 Miscellaneous 10,000 10,000 9,247 Total Operating Revenues 405,000 405,000 421,962 OPERATING EXPENSES Operations 404,250 404,250 370,671 Total Operating Expenses 404,250 404,250 370,671 Operating Income 750 750 51,291 NON-OPERATING REVENUES Investment income 100 100 - Total Non-Operating Revenues 100 100 - Change in net position $850 $850 51,291 NET POSITION - Beginning of Year 42,625 NET POSITION - END OF YEAR $93,916 109 110 VILLAGE OF DEERFIELD SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL GARAGE FUND For the Year Ended December 31, 2019 Original Final Actual OPERATING EXPENSES Public works department Personnel services 255,500$ 255,500$ 259,683$ Training and development 3,000 3,000 123 Contractural services 29,400 29,400 21,001 Commodities 107,800 107,800 82,189 Utilities 4,350 4,350 3,265 Capital Outlay 4,200 4,200 4,410 TOTAL OPERATING EXPENSES 404,250$ 404,250$ 370,671$ Budgeted Amounts 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, 2019 Budgeted Amounts Original Final Actual OPERATING REVENUES Interfund services Billings $796,211 $796,211 $739,238 Total Operating Revenues 796,211 796,211 739,238 OPERATING EXPENSES Capital outlay 709,233 709,233 294,021 Less capital assets capitalized --(211,329) Depreciation --323,262 Total Operating Expenses 709,233 709,233 405,954 Operating Income 86,978 86,978 333,284 NON-OPERATING REVENUES Gain on sale of capital assets --51,135 Investment income 80,000 80,000 182,190 Total Non-Operating Revenues 80,000 80,000 233,325 CONTRIBUTION AND TRANSFERS Transfers out -(845,975)(845,975) Net Contribution And Transfers -(845,975)(845,975) Change in net position $166,978 $(678,997)(279,366) NET POSITION - Beginning of Year 7,440,170 NET POSITION - END OF YEAR $7,160,804 111 VILLAGE OF DEERFIELD SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION - BUDGET AND ACTUAL POLICE PENSION TRUST FUND For the Year Ended December 31, 2019 Budget Amounts Original Final Actual Additions Contributions Contributions - employer $1,100,000 $1,100,000 $1,100,000 Contributions - employee 400,000 400,000 427,942 Total contributions 1,500,000 1,500,000 1,527,942 Investment Income Net appreciation in fair value of investments 500,000 500,000 7,963,792 Interest and dividends earned on investments 700,000 700,000 1,087,858 Total investment income 1,200,000 1,200,000 9,051,650 Less Investment expense 32,000 32,000 16,180 Net investment income 1,168,000 1,168,000 9,035,470 Total additions 2,668,000 2,668,000 10,563,412 Deductions Pension payments 3,160,000 3,160,000 2,892,518 Separation refunds 15,000 15,000 - Administrative 49,500 49,500 38,955 Total deductions 3,224,500 3,224,500 2,931,473 Change in net position $(556,500)$(556,500)7,631,939 Net position, beginning of year 44,978,916 Net position, end of year $52,610,855 112 113 VILLAGE OF DEERFIELD COMBINING SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2019 Balance Balance December 31, December 31, 2018 Additions Deletions 2019 All Funds Assets Cash and cash equivalents 3,174,502$ 3,259,893$ 928,994$ 5,505,401$ Receivables - accounts - 383,557 59,659 323,898 Receivables - accrued interest 199 1,204 18 1,385 Total assets 3,174,701$ 3,644,654$ 988,671$ 5,830,684$ Liabilities Accounts payable 9,971$ 1,066,915$ 827,183$ 249,703$ Deposits payable 2,963,116 769,095 868,449 2,863,762 Due to members - 2,886,725 379,224 2,507,501 Other payables 201,614 19,431 11,327 209,718 Total liabilities 3,174,701$ 4,742,166$ 2,086,183$ 5,830,684$ Deposit Fund Assets Cash and cash equivalents 2,973,086$ 687,046$ 795,927$ 2,864,205$ Total assets 2,973,086$ 687,046$ 795,927$ 2,864,205$ Liabilities Accounts payable 9,970$ 766,538$ 776,065$ 443$ Deposits payable 2,963,116 769,095 868,449 2,863,762 Total liabilities 2,973,086$ 1,535,633$ 1,644,514$ 2,864,205$ East Shore Radio Network Fund Assets Cash and cash equivalents 201,416$ 19,431$ 11,085$ 209,762$ Receivables - accrued interest 199 - 18 181 Total assets 201,615$ 19,431$ 11,103$ 209,943$ Liabilities Accounts payable 1$ 11,309$ 11,085$ 225$ Other payables 201,614 19,431 11,327 209,718 Total liabilities 201,615$ 30,740$ 22,412$ 209,943$ 114 VILLAGE OF DEERFIELD COMBINING SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2019 Balance Balance December 31, December 31, 2018 Additions Deletions 2019 Deerfield Consolidated JETSB Fund Assets Cash and cash equivalents -$ 2,553,416$ 121,982$ 2,431,434$ Receivables - accounts - 383,557 59,659 323,898 Receivables - accrued interest - 1,204 - 1,204 Total assets -$ 2,938,177$ 181,641$ 2,756,536$ Liabilities Accounts payable -$ 289,068$ 40,033$ 249,035$ Due to members - 2,886,725 379,224 2,507,501 Total liabilities -$ 3,175,793$ 419,257$ 2,756,536$ L O N G-T E R M D E B T R E Q U I R E M E N T S 115 Date of Issue Date of Maturity Authorized Issue $12,500,000 Denomination of Bonds $5,000 Interest Rates 0.80% to 5.50% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2019 600,000$ 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 7,500,000$ 2,406,255$ 9,906,255$ 1,203,126$ 1,203,129$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2010A As of December 31, 2019 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS November 3, 2010 December 1, 2030 116 Date of Issue Date of Maturity Authorized Issue $9,900,000 Denomination of Bonds $5,000 Interest Rates 1.00% to 3.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2019 340,000$ 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 7,295,000$ 1,751,440$ 9,046,440$ 875,724$ 875,716$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2011A As of December 31, 2019 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS October 17, 2011 December 1, 2031 117 Date of Issue Date of Maturity Authorized Issue $12,500,000 Denomination of Bonds $5,000 Interest Rates 4% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2019 -$ 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$ 4,492,800$ 16,972,800$ 2,246,400$ 2,246,400$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2011B As of December 31, 2019 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS October 17, 2011 December 1, 2028 118 Date of Issue Date of Maturity Authorized Issue $10,000,000 Denomination of Bonds $5,000 Interest Rates 1.25% to 2.75% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2019 455,000$ 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 9,425,000$ 1,987,350$ 11,412,350$ 993,673$ 993,677$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2012 As of December 31, 2019 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS February 21, 2012 December 1, 2031 119 Date of Issue Date of Maturity Authorized Issue $9,075,000 Denomination of Bonds $5,000 Interest Rates 2.00% to 2.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2019 340,000$ 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 4,675,000$ 696,647$ 5,371,647$ 348,324$ 348,323$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2013 As of December 31, 2019 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS January 3, 2013 December 1, 2031 120 Date of Issue May 19,2015 Date of Maturity Authorized Issue $9,575,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 3.25% Principal Maturity Date December 1 Payable at Depository Trust Company, Chicago Illinois Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2019 430,000$ 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 7,980,000$ 2,093,325$ 10,073,325$ 1,046,662$ 1,046,663$ Tax Levy Interest Due on VILLAGE OF DEERFIELD LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES 2015 As of December 31, 2019 FUTURE PRINCIPAL AND INTEREST REQUIREMENTS December 1, 2034 121 Date of Issue Date of Maturity Authorized Issue $5,700,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 4.003.75 Principal Maturity Date December 1 Payable at U.S. Bank National Association, Chicago, Illinois. Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2019 265,000$ 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 5,165,000$ 1,780,161$ 6,945,161$ 890,081$ 890,080$ 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, 2019 February 28, 2017 December 1, 2036 122 Date of Issue Date of Maturity Authorized Issue $5,970,000 Denomination of Bonds $5,000 Interest Rates 3.00% to 4.00% Principal Maturity Date December 1 Payable at U.S. Bank National Association, Chicago, Illinois. Tax Levy Year Principal Interest Total June 1 Amount December 1 Amount 2019 235,000$ 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 5,840,000$ 2,049,785$ 7,889,785$ 1,024,892$ 1,024,893$ 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, 2019 June 12, 2018 December 1, 2037 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. 123 Fiscal Year 2011 2012 2013 2013* GOVERNMENTAL ACTIVITIES Net investment in capital assets 64,483,632$ 51,392,981$ 55,359,465$ 59,186,881$ Restricted 1,833,178 1,864,620 2,000,978 1,690,206 Unrestricted 13,730,019 9,491,193 (3,773,495) 25,298,828 TOTAL GOVERNMENTAL ACTIVITIES 80,046,829$ 62,748,794$ 53,586,948$ 86,175,915$ BUSINESS-TYPE ACTIVITIES Net investment in capital assets 28,525,266$ 47,891,247$ 59,834,517$ 28,906,421$ Unrestricted 649,610 113,829 140,855 651,661 TOTAL BUSINESS-TYPE ACTIVITIES 29,174,876$ 48,005,076$ 59,975,372$ 29,558,082$ PRIMARY GOVERNMENT Net investment in capital assets 93,008,898$ 84,682,839$ 86,323,125$ 82,313,682$ Restricted 1,833,178 1,864,620 2,000,978 1,690,206 Unrestricted 14,379,629 24,206,411 25,238,217 31,730,109 TOTAL PRIMARY GOVERNMENT 109,221,705$ 110,753,870$ 113,562,320$ 115,733,997$ 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 VILLAGE OF DEERFIELD NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 124 2014 2015 2016 2017 2018 2019 58,835,531$ 55,025,274$ 55,732,838$ 56,110,035$ 49,784,690$ 51,431,009$ 4,326,031 4,467,283 5,129,514 5,867,341 7,455,951 9,189,233 27,077,751 14,516,742 13,144,539 7,143,730 8,393,474 6,092,104 90,239,313$ 74,009,299$ 74,006,891$ 69,121,106$ 65,634,115$ 66,712,346$ 28,270,616$ 29,869,458$ 32,118,523$ 32,574,200$ 32,548,303$ 34,461,747$ 786,552 (194,463) 376,014 2,257,403 3,116,674 3,678,365 29,057,168$ 29,674,995$ 32,494,537$ 34,831,603$ 35,664,977$ 38,140,112$ 87,106,147$ 84,894,732$ 87,851,361$ 88,684,235$ 82,332,993$ 85,892,756$ 4,326,031 4,467,283 5,129,514 5,867,341 7,455,951 9,189,233 27,864,303 14,322,279 13,520,553 9,401,133 11,510,148 9,770,469 119,296,481$ 103,684,294$ 106,501,428$ 103,952,709$ 101,299,092$ 104,852,458$ 125 VILLAGE OF DEERFIELD CHANGE IN NET POSITION Last Ten Fiscal Years 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 Public works 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 Public works 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)$ Fiscal Year TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES Total Business-Type Activities Program Revenues 126 2013*2014 2015 2016 2017 2018 2019 5,755,847$ 7,756,784$ 8,182,572$ 8,938,512$ 10,097,910$ 9,106,754$ 7,943,887$ 6,256,914 9,189,101 11,870,633 11,516,466 10,868,594 10,796,954 12,580,314 6,208,891 6,286,456 8,065,953 12,905,603 13,068,419 9,194,654 8,849,016 628,554 685,495 1,113,073 918,603 1,008,199 1,095,898 1,061,861 18,850,206 23,917,836 29,232,231 34,279,184 35,043,122 30,194,260 30,435,078 3,153,643 4,345,300 4,517,289 4,405,066 4,098,233 4,339,113 4,654,721 3,147,664 4,691,951 4,533,170 4,996,664 3,960,118 4,648,489 4,857,062 953,301 1,440,045 1,433,697 1,449,954 1,322,473 1,435,418 1,496,633 243,017 331,951 284,789 306,583 301,514 348,009 298,131 7,497,625 10,809,247 10,768,945 11,158,267 9,682,338 10,771,029 11,306,547 26,347,831$ 34,727,083$ 40,001,176$ 45,437,451$ 44,725,460$ 40,965,289$ 41,741,625$ 1,811,306$ 3,812,004$ 2,214,956$ 2,706,969$ 2,538,758$ 2,808,343$ 3,126,661$ 783,151 1,167,096 1,218,489 1,221,896 1,127,634 1,465,852 1,900,377 234,034 442,918 606,549 417,398 301,855 575,536 551,713 - - - 711,369 586,016 686,907 673,020 890,860 612,569 445,554 464,020 472,113 480,661 616,062 58,791 1,306,043 442,690 6,853,567 949,252 77,526 314,103 3,778,142 7,340,630 4,928,238 12,375,219 5,975,628 6,094,825 7,181,936 3,006,491 3,763,753 3,701,281 4,058,510 4,211,302 4,241,528 4,359,790 2,065,472 2,645,264 2,724,235 2,853,730 2,936,590 2,917,006 2,874,981 324,969 500,449 513,672 515,496 526,418 538,185 554,694 187,386 226,450 270,799 277,048 292,829 294,221 292,861 1,802,087 173,695 2,249,741 2,922,849 1,058,155 797,356 2,622,337 7,386,405 7,309,611 9,459,728 10,627,633 9,025,294 8,788,296 10,704,663 11,164,547$ 14,650,241$ 14,387,966$ 23,002,852$ 15,000,922$ 14,883,121$ 17,886,599$ (15,072,064)$ (16,577,206)$ (24,303,993)$ (21,903,965)$ (29,067,494)$ (24,099,435)$ (23,253,142)$ (111,220) (3,499,636) (1,309,217) (530,634) (657,044) (1,982,733) (601,884) (15,183,284)$ (20,076,842)$ (25,613,210)$ (22,434,599)$ (29,724,538)$ (26,082,168)$ (23,855,026)$ 127 VILLAGE OF DEERFIELD CHANGE IN NET POSITION (cont.) Last Ten Fiscal Years 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 128 2013*2014 2015 2016 2017 2018 2019 5,010,070$ 5,260,112$ 5,527,577$ 7,335,510$ 7,350,802$ 7,349,472$ 7,416,705$ 2,257,183 3,413,920 2,941,572 3,484,806 3,841,934 3,252,733 2,427,689 936,501 1,261,799 1,707,745 1,722,295 1,370,180 1,368,145 5,896,439 2,398,124 3,721,354 3,797,848 3,817,963 4,363,655 4,570,428 4,939,071 5,396,719 8,316,948 7,697,052 8,350,115 8,990,723 8,152,479 4,480,336 - (221,419) 130,060 191,929 393,675 759,659 1,605,244 279,991 704,909 676,294 431,172 646,776 109,854 351,193 - - 732,831 - - - - - (1,817,019) (1,805,840) (2,770,464) (2,776,036) (2,778,413) (2,785,304) 16,278,588 20,640,604 21,405,139 22,563,326 24,181,709 22,784,357 24,331,373 906,951 936,361 965,948 22 - -- (4,588) (14,786) 4,055 4,753 10,848 23,967 44,367 174,010 260,128 218,479 226,012 207,226 213,257 247,348 - 1,817,019 1,805,840 2,770,464 2,776,036 2,778,413 2,785,304 1,076,373 2,998,722 2,994,322 3,001,251 2,994,110 3,015,637 3,077,019 17,354,961$ 23,639,326$ 24,399,461$ 25,564,577$ 27,175,819$ 25,799,994$ 27,408,392$ 1,206,524$ 4,063,398$ (2,898,854)$ 659,361$ (4,885,785)$ (1,315,078)$ 1,078,231$ 965,153 (500,914) 1,685,105 2,470,617 2,337,066 1,032,904 2,475,135 2,171,677$ 3,562,484$ (1,213,749)$ 3,129,978$ (2,548,719)$ (282,174)$ 3,553,366$ 129 Fiscal Year 2011 2012 2013 2013* GENERAL FUND Reserved 443,532$ -$ -$ -$ Unreserved 16,566,828 - - - Nonspendable for Note receivable - 100,000 90,000 80,000 Inventory - 55,190 27,824 54,477 Prepaid items - 441,382 459,247 752,402 Advance - - - - Restricted for Public safety - - - - Unrestricted Assigned for debt service - 833,396 818,344 831,850 Assigned for capital projects - 1,650,000 1,400,000 1,500,000 Subsequent year's budget - - - - Unassigned - 16,206,557 17,002,357 16,815,607 TOTAL GENERAL FUND 17,010,360$ 19,286,525$ 19,797,772$ 20,034,336$ ALL OTHER GOVERNMENTAL FUNDS Reserved 6,927,256$ -$ -$ -$ Unreserved, reported in Capital Project Funds 417,104 - - - Restricted for Capital projects - 14,581,925 1,515,401 40,280 Maintenance of roadways - 601,423 633,057 325,768 Public safety - 1,263,197 1,367,921 1,364,438 Debt service - - - - Unrestricted Assigned for Debt service - 286,753 841,240 1,473,632 Capital projects - 1,088,012 2,154,351 749,533 TOTAL ALL OTHER GOVERNMENTAL FUNDS 7,344,360$ 17,821,310$ 6,511,970$ 3,953,651$ *Eight months ended December 31, 2013. Data Source Audited Financial Statements g p y p 2012. This resulted in a change in fund balance classification. The Village has not elected to report this change retroactively. VILLAGE OF DEERFIELD FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 130 2014 2015 2016 2017 2018 2019 -$ -$ -$ $ --$ -$ - - - -- - 70,000 60,000 50,000 40,000 30,000 20,000 42,968 21,031 26,643 26,844 28,516 43,026 713,737 707,640 904,041 1,180,641 1,188,498 1,374,119 - - 1,075,689 684,083 374,695 - - - - - - 2,575,227 - - - -- - 1,200,000 1,000,000 1,300,000 -- - - 2,960,593 2,117,018 606,765 949,698 - 19,667,419 15,200,930 14,963,328 16,561,166 17,391,240 23,734,776 21,694,124$ 19,950,194$ 20,436,719$ 19,099,499$ 19,962,647$ 27,747,148$ -$ -$ -$ $ --$ -$ - - - -- - - 696,658 - -- - 927,908 388,546 360,593 340,455 832,299 479,457 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 6,134,549 25,299 58,021 111,920 177,263 171,299 190,610 2,276,297 4,707,033 5,935,979 4,121,126 8,494,316 5,443,931 6,627,627$ 9,928,995$ 11,177,413$ 10,165,730$ 16,121,566$ 12,248,547$ 131 2011 2012 2013 2013* REVENUES Taxes 15,326,336$ 18,350,644$ 12,220,016$ 9,876,878$ Licenses and permits 1,431,793 1,173,799 1,645,735 1,277,977 Intergovernmental 944,344 1,152,141 9,692,051 6,342,610 Charges for services 687,515 709,146 710,049 565,213 Fines and forfeitures 262,542 317,262 342,740 236,390 Contribution from library - - 763,572 742,476 Investment income 92,855 115,175 117,770 (164,823) Miscellaneous 715,868 1,219,949 1,113,205 998,549 Total revenues 19,461,253 23,038,116 26,605,138 19,875,270 EXPENDITURES General government 5,328,331 6,436,048 7,783,224 5,063,339 Public Safety 8,407,416 8,352,887 8,540,957 6,117,121 Highways and streets 3,032,200 3,091,770 2,806,358 2,326,884 Capital Outlay 8,278,643 23,114,852 24,479,003 5,280,135 Debt Service Principal 180,000 710,000 1,355,000 928,000 Interest 237,997 1,180,062 1,770,522 699,324 Total expenditures 25,464,587 42,885,619 46,735,064 20,414,803 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (6,003,334) (19,847,503) (20,129,926) (539,533) OTHER FINANCING SOURCES (USES) Transfers in 7,506,834 22,440,459 14,290,621 3,152,954 Transfers (out)(7,506,834) (22,440,459) (14,290,621) (4,943,562) 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 30,161 20,827 3,331 8,386 Total Other Financing Sources (Uses)12,461,148 32,500,618 9,331,833 (1,782,222) NET CHANGE IN FUND BALANCES 6,457,814$ 12,653,115$ (10,798,093)$ (2,321,755)$ DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 2.09%4.75%7.16%9.02% *Eight months ended December 31, 2013. Data Source Audited Financial Statements Fiscal Year VILLAGE OF DEERFIELD CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 132 2014 2015 2016 2017 2018 2019 14,070,158$ 14,955,266$ 17,522,177$ 18,207,216$ 17,625,022$ 21,489,133$ 3,062,263 1,464,015 1,958,108 1,784,230 1,877,242 2,412,956 9,599,274 8,102,221 15,007,986 9,628,692 8,119,258 7,541,062 1,004,048 1,114,515 971,304 849,759 1,487,963 1,673,921 307,744 292,284 286,981 264,926 277,967 274,725 730,381 732,831 730,131 726,706 727,581 727,631 (221,419) 130,060 191,929 344,598 659,671 1,423,052 1,218,373 1,348,025 1,555,393 1,572,755 1,338,187 1,553,367 29,770,822 28,139,217 38,224,009 33,378,882 32,112,891 37,095,847 7,353,449 8,266,520 8,906,902 9,406,290 8,826,989 7,996,398 8,963,170 9,136,003 9,054,499 9,336,602 9,458,681 9,873,759 2,924,874 2,816,855 2,749,322 2,985,820 2,782,979 3,802,858 2,777,322 11,958,472 11,652,625 11,362,494 5,058,776 6,736,792 935,000 962,000 1,369,000 1,441,000 1,460,000 1,634,000 693,655 674,859 944,819 1,032,016 1,019,059 1,201,229 23,647,470 33,814,709 34,677,167 35,564,222 28,606,484 31,245,036 6,123,352 (5,675,492) 3,546,842 (2,185,340) 3,506,407 5,850,811 2,354,180 10,191,142 4,241,596 6,367,905 4,087,145 7,595,613 (4,171,199) (11,996,982) (7,012,060) (9,143,941) (6,865,558) (9,534,942) - 9,575,000 - 5,700,000 5,970,000 - - 422,335 - 240,732 120,990 - - - - (3,328,259) - - 27,431 - - - - - (1,789,588) 8,191,495 (2,770,464) (163,563) 3,312,577 (1,939,329) 4,333,764$ 2,516,003$ 776,378$ (2,348,903)$ 6,818,984$ 3,911,482$ 7.35%6.60%7.67%8.42%9.21%10.16% 133 Total Total Total Fiscal Residential Farm Commercial Industrial Assessed Actual Direct Tax Year Property Property Property Property Total Railroad Value Value Rate 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 2019 1,097,716,621 - 355,750,738 6,755,220 1,460,222,579 - 1,460,222,579 4,380,667,737 0.8450 Data Source: Lake County Clerk & Cook County Clerk VILLAGE OF DEERFIELD EQUALIZED ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Levy Years 134 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 DIRECT VILLAGE RATE Bonds & Interest 0.010 0.034 0.098 0.159 0.175 0.251 0.278 0.316 0.305 0.306 Corporate 0.123 0.143 0.154 0.164 0.184 0.000 0.261 0.249 0.239 0.241 Garbage 0.053 0.059 0.064 0.071 0.077 0.080 0.000 0.000 0.000 0.000 Library 0.180 0.003 0.004 0.063 0.067 0.199 0.353 0.293 0.290 0.298 Village 0.366 0.239 0.320 0.457 0.503 0.530 0.892 0.858 0.834 0.845 OVERLAPPING RATES Lake County including Forest Preserve 0.660 0.703 0.755 0.820 0.881 0.893 0.871 0.825 0.809 0.794 Deerfield Elementary Dist 109 2.455 2.665 2.892 3.254 3.424 3.401 3.211 3.070 3.049 3.069 High School District 113 1.748 1.921 2.167 2.178 2.364 2.421 2.309 2.187 2.164 2.222 Community College District 532 0.200 0.218 0.240 0.272 0.296 0.306 0.299 0.285 0.281 0.282 Deerfield Park District 0.431 0.460 0.503 0.546 0.585 0.599 0.552 0.542 0.535 0.548 Deerfield-Bannockburn Fire Prot Dist 0.447 0.486 0.529 0.593 0.637 0.650 0.624 0.612 0.608 0.625 All Other (1)0.048 0.065 0.073 0.053 0.048 0.053 0.049 0.059 0.045 0.046 TOTAL DIRECT AND OVERLAPPING TAX RATE 6.355 6.757 7.479 8.173 8.738 8.853 8.807 8.438 8.325 8.431 *Rates are per $100 of Assessed Value (1) Total of West Deerfield Township & Southlake Mosquito Abatement District Data Source: Office of the Lake County Clerk VILLAGE OF DEERFIELD DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Levy Years 135 Percentage Percentage of Total City of Total Taxable Assessed Assessed Taxpayer Rank Value Rank Value Walgreen Co.$45,686,341 1 3.13%$9,836,968 3 0.62% Marvin F Poer & Co.34,015,033 2 2.33%2,373,259 8 0.15% Takeda Pharmaceuticals North America, Inc 31,190,256 3 2.14%8,865,517 4 0.56% Gateway Fairview Inc.27,323,040 4 1.87% TNREF III Parkway JV, LLC 18,448,213 5 1.26% CRM Properties Group 15,491,250 6 1.06%6,060,160 5 0.38% James Campbell Co. LLC 12,487,208 7 0.86% LO Deerfield Operating 12,801,012 8 0.88% LPF Woodview LLC 13,898,281 9 0.95% North Parkway One Investment LLC 11,837,074 10 0.81% 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% $223,177,708 15.28%$66,109,926 4.17% Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible some parcels and their valuations have been overlooked. The 2018 EAV is the most current available for this purpose. Data Source: Office of the Lake County Clerk Value Value VILLAGE OF DEERFIELD PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago 2018 2009 Assessed Assessed 136 Fiscal Taxes Collections Year Levied in Ended for the Percentage Subsequent Percentage Dec 31 Fiscal Year Amount of Levy Years Amount of Levy 2010*5,653,369 5,609,999 99.23%- 5,609,999 99.23% 2011*5,888,285 5,851,862 99.38%- 5,851,862 99.38% 2012*6,675,642 6,624,625 99.24%- 6,624,625 99.24% 2013 9,328,980 9,266,916 99.33%- 9,266,916 99.33% 2014 9,658,145 9,596,025 99.36%- 9,596,025 99.36% 2015 10,783,925 10,725,053 99.45%- 10,725,053 99.45% 2016 11,821,939 11,772,386 99.58%- 11,772,386 99.58% 2017 12,088,181 12,045,734 99.65%- 12,045,734 99.65% 2018 12,289,037 12,270,843 99.85%- 12,270,843 99.85% 2019 12,388,275 12,349,237 99.68%- 12,349,237 99.68% Data Source: Lake County Treasurer, Cook County Treasurer and Village Records * Represent years ended 04/30 prior to switching to 12/31 fiscal years VILLAGE OF DEERFIELD PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Levy Years Collected within the Fiscal Year of the Levy Total Collections to Date 137 VILLAGE OF DEERFIELD SALES TAX BY CATEGORY Last Ten Calendar Years Calendar Year 2010 2011 2012 2013 General merchandise 222,696$ 233,408$ 222,366$ 224,653$ Food 772,736 798,668 796,940 743,285 Drinking and eating places 932,074 970,059 1,018,539 1,032,833 Apparel 207,981 240,746 205,856 180,876 Furniture and H.H. and radio 752,175 713,431 473,808 345,052 Lumber, building hardware 610,072 590,742 564,884 583,287 Automobile and filling stations 434,095 513,421 348,318 358,919 Drugs and miscellaneous retail 2,625,382 3,625,900 5,476,027 4,692,108 Agriculture and all others 852,588 1,138,377 1,005,454 966,396 Manufacturers 203,171 214,511 237,039 226,254 TOTAL 7,612,970$ 9,039,263$ 10,349,231$ 9,353,663$ Village direct sales tax rate 1.00%1.00%1.00%1.00% Village home rule rate 1.00%1.00%1.00%1.00% Data Source Illinois Department of Revenue 138 2014 2015 2016 2017 2018 2019 247,348$ 208,851$ 195,293$ 210,058$ 213,577$ 32,036$ 870,464 874,095 746,457 764,304 853,120 789,576 1,108,407 1,128,992 1,036,096 1,123,950 1,151,138 1,285,275 210,488 164,410 150,231 112,184 103,293 95,657 291,839 288,538 279,964 264,646 427,117 495,247 642,214 542,259 507,057 545,393 554,529 796,423 510,550 314,993 347,603 332,391 323,516 320,502 4,937,251 4,069,522 5,664,948 6,818,569 5,171,319 2,764,728 914,323 839,745 910,728 852,451 678,301 679,896 251,653 266,575 220,430 183,720 191,992 181,331 9,984,537$ 8,697,980$ 10,058,807$ 11,207,666$ 9,667,902$ 7,440,671$ 1.00%1.00%1.00%1.00%1.00%1.00% 1.00%1.00%1.00%1.00%1.00%1.00% 139 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 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% 2019 0.25%0.75%0.25%1.75%1.00%1.00%1.00%5.00% Data Source Village and County Records 140 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* 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 34,042,923 27,158,640 61,201,563 4.42%3,282.29 * **Eight months ended December 31, 2013 Note: Details of the Village's outstanding debt can be found in the notes to financial statements. Data Source Audited Financial Statements VILLAGE OF DEERFIELD 2016 2017 See the schedule of Demographic and Economic Statistics for personal income and population data. 2011 2012 2013 2013 ** 2014 2015 2019 2018 141 (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 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 2019 34,042,923 27,158,640 6,134,549 55,067,014 3.77%2,953.29 * 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 142 *** (1)(2) Gross Percentage *** General of Debt Village's Obligation Applicable to Share Governmental Unit Debt Government of Debt Direct Debt: Village of Deerfield 34,042,923$ 100.00%34,042,923$ Total Direct Debt:34,042,923 Overlapping Debt: Lake County 157,790,000 5.16%8,141,964 Lake County Forest Preserve 222,645,000 5.16%11,488,482 Cook County 2,803,851,750 0.09%2,523,467 Cook County Forest Preserve 131,815,000 0.09%118,634 Deerfield Park District 850,000 97.48%828,580 Park District of Highland Park 13,620,000 1.35%183,870 Northbrook Park District 13,410,000 2.99%400,959 Lake Elementary School District No. 109 20,335,000 77.23%15,704,721 Lake High School District No. 113 76,670,000 29.96%22,970,332 Cook Northfield Township High School District No. 225 68,151,706 2.71%1,846,911 Community College of Lake County No. 532 53,365,000 5.21%2,780,317 Oakton Community College District No. 535 30,000,000 0.65%195,000 Metropolitan Water Reclamation District of Greater Chicago 2,274,859,669 0.09%2,047,374 Total Overlapping Debt:69,230,611 Total Gross Debt & Total Direct and Overlapping Debt 5,901,406,048 103,273,534 Less Debt Service Fund Amount Available - Village of Deerfield 6,134,549 6,134,549 TOTAL DIRECT AND OVERLAPPING DEBT 5,895,271,499$ 97,138,985$ *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, 2019 143 LEGAL DEBT MARGIN INFORMATION December 31, 2019 EQUALIZED ASSESSED VALUATION - 2018*1,460,222,579$ Non-Home Rule Legal Debt Limit - 8.625%125,944,197 Amount of debt applicable to limit: General Obligation Bonds Series 2010A 3,000,000 General Obligation Bonds Series 2011A 7,295,000 General Obligation Bonds Series 2013 4,015,000 General Obligation Bonds Series 2015 7,980,000 General Obligation Bonds Series 2017 5,165,000 General Obligation Bonds Series 2018 5,840,000 Total amount of debt applicable to limit:33,295,000 NON-HOME RULE LEGAL DEBT MARGIN 92,649,197$ * 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 144 VILLAGE OF DEERFIELD DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years Per Capita Median Fiscal Personal Household Unemployment Year Population Income Income Rate 2011 (a)18,405 60,582 131,534 5.60% 2012 (b)18,458 62,631 132,785 5.75% 2013 (c)18,452 62,405 129,187 5.30% 2013*(d)18,452 62,405 129,187 5.85% 2014 (e)18,408 62,731 135,881 5.05% 2015 (f)18,476 63,190 135,754 4.20% 2016 (g)18,588 65,757 137,423 4.40% 2017 (h)18,779 68,101 143,729 3.60% 2018 (i)18,896 72,334 142,621 3.25% 2019 (j)18,646 74,334 144,229 2.90% * Eight months ended December 31, 2013 Data Sources (a) U.S. Census Bureau "2006-2010 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (b) U.S. Census Bureau, "2007-2011 American Community Survey 5-Yr. Estimates" U.S. Bureau of Labor Statistics (c) U.S. Census Bureau, "2008-2012 American Community Survey 5-Yr. Estimates" and 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, "2009-2013 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (f) U.S. Census Bureau, "2010-2014 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (g) U.S. Census Bureau, "2011-2015 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (h) U.S. Census Bureau, "2012-2016 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics and Special Census (i) U.S. Census Bureau, "2013-2017 American Community Survey 5-Yr. Estimates" and U.S. Bureau of Labor Statistics (j) U.S. Census Bureau and U.S. Bureau of Labor Statistics 145 % of % of Total Village Total Village Employer Employees Rank Population Employees Rank Population Walgreen Boots Alliance Inc 6,500 1 34.86%0.00% Walgreen Co 2,500 2 13.41%1,700 1 9.24% Baxter International, Inc 1,700 3 9.12%1,500 2 8.15% Takeda Pharmaceuticals USA, Inc 1,000 4 5.36%1,100 3 5.98% Baxter Healthcare Corp 800 5 4.29%0.00% Essendant 800 6 4.29%0.00% Mondelez International 500 7 2.68%0.00% Deerfield Park District 500 8 2.68%0.00% Trinity International University 500 9 2.68%0.00% Deerfield High School 415 10 2.23%361 10 1.96% Kinetek Inc - 0.00%1,080 4 5.87% Astellas Pharma US Inc - 0.00%900 5 4.89% Fortune Brands - 0.00%775 6 4.21% Montclair Hotels Mb LLC - 0.00%700 7 3.80% Illinois Student Assistance Commission - 0.00%550 8 2.99% United Stationers Supply - 0.00%500 9 2.72% TOTAL 15,215 81.60%9,166 49.80% Village population 18,646 18,405 Data Source 2018 Illinois Manufacturers Directory and 2018 Illinois Services Directory VILLAGE OF DEERFIELD PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2019 2010 146 VILLAGE OF DEERFIELD FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years Function/Program 2011 2012 2013 2013*2014 2015 2016 2017 2018 2019 GENERAL GOVERNMENT Village Manager 2 4 5 5 5 5 5 6 8 8 Finance 10 8 8 8 8 8 8 8 7 7 Engineering 2 2 2 2 2 3 3 3 3 3 Community Development 7 7 7 7 8 8 8 8 8 8 PUBLIC WORKS Administration 4 4 4 4 4 4 4 4 4 3 Street Maintenance 7 7 7 7 7 7 7 7 7 7 Utilities Maintenance 14 14 14 14 14 13 13 13 13 13 Sewage Treatment Plant 8 8 7 7 7 7 7 7 7 7 Garage 2 2 2 2 2 2 2 2 2 2 PUBLIC SAFETY Police Administration 7 7 7 7 7 7 7 7 7 7 Communications 8 8 8 8 8 8 8 8 8 8 Investigations/Youth 7 7 7 7 7 7 7 7 7 7 Patrol 31 31 33 33 34 34 34 34 34 34 TOTAL 109 109 111 111 113 113 113 114 115 114 * Eight months ended December 31, 2013 Data Source Village budget office 147 VILLAGE OF DEERFIELD OPERATING INDICATORS Last Ten Calendar Years Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PUBLIC SAFETY Police Physical arrests 575 513 485 367 337 336 426 346 452 378 Parking violations 1,509 1,343 2,628 2,307 2,560 1,709 1,598 2,452 2,160 1,725 Traffic violations 3,106 3,391 3,367 3,550 3,452 3,765 3,463 2,858 3,725 3,178 PUBLIC WORKS Street resurfacing (miles)0.86 1.83 2.80 1.76 1.96 6.45 0.36 0.74 1.77 3.64 WATER Water main breaks 76 75 78 108 56 61 53 52 32 42 Average daily consumption (gallons)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 1,982,144 Peak daily consumption (gallons)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 4,104,601 WASTEWATER Average daily treatment (gallons)2,930,000 3,530,000 2,395,000 2,761,000 3,452,000 3,180,000 2,680,000 2,740,000 2,850,000 3,460,000 Data Source Various village departments 148 VILLAGE OF DEERFIELD CAPITAL ASSET STATISTICS Last Ten Fiscal Years Function/Program 2011 2012 2013 2013*2014 2015 2016 2017 2018 2019 PUBLIC SAFETY Police Stations 1 1 1 1 1 1 1 1 1 1 Number of Police Officers 41 41 42 43 40 40 40 40 40 40 PUBLIC WORKS Arterial streets (miles)8 8 8 8 8 8 8 8 8 8 Residential streets (miles)68 68 68 68 68 68 68 68 68 68 Traffic signals 10 10 10 10 10 10 10 10 10 10 WATER Water mains (miles)90 90 90 90 90 90 90 90 90 90 Fire hydrants 1,217 1,208 1,220 1,205 1,208 1,206 1,267 1,260 1,260 1,280 Storage capacity (gallons)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 9,050,000 WASTEWATER Sewers (miles)80 80 80 80 80 80 80 80 80 80 Treatment capacity (gallons)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 9,200,000 * Eight months ended December 31, 2013 Data Source Various village departments O T H E R I N F O R M A T I O N 149 Taxable Taxable Series Series Series Series Series Series Series Series The Less: The Refunded Total Calendar 2010A (BABs)2011A 2011B (QSEB) (2)2012 2013 2015 2016 2018 Bonds Bonds Principal Year (12/1)(12/1)(12/1)(12/1)(12/1)(12/1)(12/1)(12/1)(12/1)(12/1)All G.O. Bonds Amount Percent 2020 600,000$ 340,000$ -$ 455,000$ 340,000$ 430,000$ 265,000$ 235,000$ -$ -$ 2,665,000$ 2,665,000$ 4.44% 2021 610,000 365,000 - 475,000 345,000 440,000 270,000 245,000 555,000 (610,000) 2,695,000 5,360,000 8.93% 2022 625,000 380,000 - 495,000 350,000 455,000 280,000 255,000 575,000 (625,000) 2,790,000 8,150,000 13.59% 2023 645,000 400,000 - 515,000 350,000 470,000 290,000 265,000 600,000 (645,000) 2,890,000 11,040,000 18.40% 2024 660,000 425,000 - 540,000 355,000 485,000 300,000 275,000 615,000 (660,000) 2,995,000 14,035,000 23.40% 2025 680,000 450,000 - 555,000 360,000 495,000 310,000 285,000 640,000 (680,000) 3,095,000 17,130,000 28.55% 2026 700,000 475,000 - 580,000 365,000 510,000 320,000 295,000 665,000 (700,000) 3,210,000 20,340,000 33.91% 2027 720,000 500,000 - 600,000 375,000 530,000 330,000 310,000 685,000 (720,000) 3,330,000 23,670,000 39.46% 2028 735,000 355,000 12,500,000 455,000 380,000 545,000 345,000 320,000 705,000 (735,000) 15,605,000 39,275,000 65.47% 2029 750,000 1,280,000 - 1,380,000 390,000 560,000 - 325,000 720,000 (750,000) 4,655,000 43,930,000 73.23% 2030 775,000 1,335,000 - 1,425,000 390,000 575,000 - 335,000 750,000 (775,000) 4,810,000 48,740,000 81.25% 2031 - 990,000 - 1,950,000 675,000 595,000 - 350,000 - - 4,560,000 53,300,000 88.85% 2032 - - - - - 610,000 455,000 360,000 - - 1,425,000 54,725,000 91.22% 2033 - - - - - 630,000 475,000 370,000 - - 1,475,000 56,200,000 93.68% 2034 - - - - - 650,000 490,000 385,000 - - 1,525,000 57,725,000 96.22% 2035 - - - - - - 510,000 395,000 - - 905,000 58,630,000 97.73% 2036 - - - - - - 525,000 410,000 - - 935,000 59,565,000 99.29% 2037 - - - - - - - 425,000 - - 425,000 59,990,000 100.00% Total 7,500,000$ 7,295,000$ 12,500,000$ 9,425,000$ 4,675,000$ 7,980,000$ 5,165,000$ 5,840,000$ 6,510,000$ (6,900,000)$ 59,990,000$ 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 equalling $725,000 through 2027 and $900,000 upon maturity in 2028. The sinking fund is held by the Village. VILLAGE OF DEERFIELD Village General Obligation Bonded Debt (1) (Principal Only) Cumulative Principal Retired 150 Outstanding Debt (2) Percent (3)Amount Schools: Elementary School District 109 20,335,000$ 77.23%15,704,721$ High School District Number 113 76,670,000 29.96%22,970,332 High School District Number 225 68,151,706 2.71%1,846,911 Community College District Number 532 53,365,000 5.21%2,780,317 Community College District Number 535 30,000,000 0.65%195,000 Total Schools 43,497,280$ Others: Lake County 157,790,000$ 5.16%8,141,964$ Lake County Forest Preserve District 222,645,000 5.16%11,488,482 Cook County 2,803,851,750 0.09%2,523,467 Cook County Forest Preserve District 131,815,000 0.09%118,634 Metropolitan Water Reclamation District of Greater Chicago 2,274,859,669 0.09%2,047,374 Deerfield Park District 850,000 97.48%828,580 Northbrook Park District 13,410,000 2.99%400,959 Park District of Highland Park 13,620,000 1.35%183,870 Total Others 25,733,329$ Total Schools and Others Overlapping Bonded Debt 69,230,609$ Notes: (1) Source: Lake and Cook County Clerks. (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, the most recent available. Detailed Overlapping Bonded Debt(1) (As of May 18, 2020) Applicable to Village VILLAGE OF DEERFIELD 151 Statement of Bonded Indebtedness (1) PER CAPITA Estimated (2010 Census- Amount Applicable EAV Actual 18,225) Assessed Valuation of Taxable Property, 2018 1,460,222,579$ 100.00%33.33%80,122$ Estimated Actual Value, 2018 4,380,667,737$ 300.00%100.00%240,366$ Village Direct Bonded Debt (2)59,990,000$ 4.11%1.37%3,292$ Overlapping Debt: (3) Schools 43,497,280$ 2.98%0.99%2,387$ All Others 25,733,329 1.76%0.59%1,411.98 Total Overlapping Bonded Debt 69,230,609$ 4.74%1.58%$3,798.66 Total Net Direct & Overlapping Debt (2)129,220,609$ 8.85%2.95%$7,090.29 Notes: (1) Source: The Village. (2) Includes the Bonds, excludes the Refunded Bonds, and is subject to change. (3) Overlapping debt as of May 18, 2020. Ratio to VILLAGE OF DEERFIELD 152 Equalized Assessed Valuation (1) Property Class 2010 2011 2012 2013 2014 2015 2016 2017 2018 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$ 1,097,716,621$ Commercial 397,215,326 364,721,276 340,275,838 316,522,689 311,130,618 327,995,985 348,028,112 363,288,977 355,750,738 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 6,755,220 Total $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$ 1,460,222,579$ County Lake 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$ 1,315,978,217$ Cook County $202,549,309 $157,941,911 144,821,027 136,772,736 130,525,161 128,869,021 142,490,007 147,921,763 144,244,362 Total $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$ 1,460,222,579$ Percent change +(-)-5.21%-8.58%-7.13%(2)-5.01%-0.09%(2)7.48%6.70%4.31%-0.55% Notes: (1) Source: Lake and Cook County Clerks' Offices. (2) Percentage based on 2013 EAV of $1,228,417,175. VILLAGE OF DEERFIELD 153 Representative Tax Rates For Property Located in the Village of Deerfield Per $100 of Equalized Assessed Valuation (1) 2010 2011 2012 2013 2014 2015 2016 2017 2018 Village Rates: Bond and Interest 0.0340$ $0.098 0.159$ 0.175$ 0.251$ 0.278$ 0.316$ 0.304$ 0.306$ Corporate 0.1430 0.154 0.164 0.184 0.000 0.261 0.248 0.239 0.241 Garbage 0.0590 0.064 0.071 0.077 0.080 0.000 0.000 0.000 0.000 All Other 0.0030 0.004 0.063 0.067 0.199 0.353 0.293 0.290 0.299 Total Village Rate 0.2390$ 0.320$ 0.457$ 0.503$ 0.530$ 0.893$ 0.857$ 0.833$ 0.845$ Lake County (Including Forest Preserve)0.7030 0.755 0.820 0.881 0.893 0.871 0.825 0.809 0.794 Deerfield Elementary Dist. 109 2.6650 2.892 3.254 3.424 3.401 3.211 3.070 3.049 3.069 High School District 113 1.9210 2.167 2.178 2.364 2.421 2.309 2.187 2.164 2.222 Community College District Number 532 0.2180 0.240 0.272 0.296 0.306 0.299 0.285 0.281 0.282 Deerfield Park District 0.4600 0.503 0.546 0.585 0.599 0.552 0.542 0.535 0.548 Deerfield-Bannockburn Fire Protection District 0.4860 0.529 0.593 0.637 0.650 0.624 0.612 0.608 0.625 All Other (2)0.0650 0.073 0.053 0.048 0.053 0.049 0.059 0.045 0.046 Total (3) 6.7570$ 7.479$ 8.173$ 8.738$ 8.853$ 8.809$ 8.438$ 8.325$ 8.431$ Notes: (1) Source: Lake County Clerk (2) Includes the Township of West Deerfield and the Southlake Mosquito Abatement District. (3) 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 Years VILLAGE OF DEERFIELD 154 Levy Collection Tax Total Year Year Extensions Collected Percent 2010 2011 6,675,642$ 6,624,625$ 99.24% 2011 2012 8,456,349 8,407,192 99.42% 2012 2013 9,328,980 9,266,916 99.33% 2013 2014 9,658,145 9,596,025 99.36% 2014 2015 10,783,925 10,725,053 99.45% 2015 2016 11,821,939 11,772,386 99.58% 2016 2017 12,088,181 12,045,734 99.65% 2017 2018 12,289,037 12,270,843 99.85% 2018 2019 12,388,275 12,349,237 99.68% Note: (1) Source: the Village Village Tax Extensions and Collections (1) VILLAGE OF DEERFIELD 155 Taxpayer Name Business/Service EAV Walgreen Co.Pharmacy, Company Headquarters 45,686,341$ Marvin F Poer & Co.Real Property 34,015,033 Scott Dressing, Sr Mgr Taxation Real Property 31,190,256 Gateway Fairview Inc.Real Property 27,323,040 TNREF III Parkway JV, LLC Real Property 18,448,213 CRM Properties Group Real Property 15,491,250 James Campbell Co LLC Real Property 12,487,208 LO Deerfield Operating Real Property 12,801,012 LPF Woodview LLC Real Property 13,898,281 North Parkway Once Investment LLC Real Property 11,837,074 Total 223,177,708$ 10 Largest Taxpayers as Percent of Total 15.28% 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 Lake County 2019 EAV and Cook County 2018 EAV are the most current available for this purpose. VILLAGE OF DEERFIELD