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Village CAFR for year ended April 30, 2010VILLAGE OF DEERFIELD, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended April 30, 2010 Prepared by Finance Department Robert W. Fialkowski Director of Finance VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION Principal Officials....................................................................................................i Organizat io nal Chart ...............................................................................................ii Certificate of Achievement for Excellence in Financial Reporting ...........................iii Director of Finance’s Letter of Transmittal ..............................................................iv-vii FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT ................................................................1-2 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management’s Discussion and Analysis ....................................................................MD&A 1-7 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets ....................................................................................3 Statement of Act ivit ies ......................................................................................4-5 Fund Financial Statements Governmental Funds Ba lance Sheet ...............................................................................................6 Reconciliation of Fund Balances of Go vernment al Funds to the Go vernment al Act ivit ies in the Statement of Net Assets.....................7 Statement of Revenues, Expenditures and Changes in Fund Balances .......8 Reconciliation of the Go vernmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Act ivit ies in t he Statement of Activities ....................................................9 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FI NANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Assets ...............................................................................10 Statement of Revenues, Expenses and Changes in Net Assets ...................11 Statement of Cash Flows ..............................................................................12-13 Fiduciary Funds Statement of Fiduciary Net Assets ...............................................................14 Statement of Changes in Fiduciar y N et Assets ............................................15 Notes to Financial Statements.........................................................................16-51 Required Supplementary Informat io n Schedu le o f R evenues, Expenditures and Changes in Fund Balance - Budget and Actual -General Fund.......................................................................52 Schedule of Funding Progress Illino is Municipal Retirement Fund ...........................................................53 Police Pensio n Fund ..................................................................................54 Other Postemp lo yment Benefit Plan ..........................................................55 Schedule of Emplo yer Contribut io ns Illino is Municipal Retirement Fund ...........................................................56 Police Pensio n Fund ..................................................................................57 Other Postemp lo yment Benefit Plan ..........................................................58 Notes to Required Supplementary Informat io n ...............................................59 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS Schedule of Revenues -Budget and Actual -General Fund .................................60-61 Schedule of Expenditures -Budget and Actual -General Fund ............................62-64 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Infrastructure Replacement Fund ...............................................................65 Tax Incremental Finance District 2 Fund ...................................................66 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ..............................................................................67 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..............................................................................................68 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund .................................................................................69 Enhanced 911 Fund ...................................................................................70 Bond Proceeds Fund ..................................................................................71 Debt Service Fund .....................................................................................72 MAJOR ENTEPRISE FUNDS Water Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................73 Schedule of Operat ing Expenses -Budget and Actual ................................74 Schedule of Capital Assets and Depreciat io n .............................................75 Sewerage Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................76 Schedule of Operat ing Expenses -Budget and Actual ................................77 Schedule of Capital Assets and Depreciat io n .............................................78 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) MAJOR ENTEPRISE FUNDS (Continued) Refuse Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................79 NONMAJOR ENTEPRISE FUNDS Commuter Parking Lot Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................80 Schedule of Operat ing Expenses -Budget and Actual ................................81 Schedule of Capit al Assets and Depreciat io n .............................................82 INTERNAL SERVICE FUNDS Combining Statement of Net Assets ...............................................................83 Combining Statement of Revenues, Expenses and Changes in Net Assets ....................................................................................................84 Combining Statement of Cash Flows ..............................................................85 Garage Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................86 Schedule of Operat ing Expenses -Budget and Actual ................................87 Vehicle and Equipment Replacement Fund Schedule of Revenues, Expenses and Changes in Net Assets -Budget and Actual .............................................88 FIDUCIARY FUNDS Schedule of Changes in Plan Net Assets -Budget and Actual - Police Pensio n Fund .....................................................................................89 Combining Statement of Changes in Assets and Liabilit ies - Agency Funds ..............................................................................................90 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) SUPPLEMENTAL DATA Long-Term Debt Requirements General Obligat io n Refunding Bond Series of 2003 .......................................91 General Obligat io n Refunding Bond Series of 2008 .......................................92 STATISTICAL SECTION Financial Trends Net Assets by Component ...................................................................................93 Change in Net Assets ..........................................................................................94-95 Fund Balances of Governmental Funds ...............................................................96 Changes in Fund Balances of Governmental Funds .............................................97 Revenue Capacit y Sales Tax by Category ........................................................................................98 Direct and Overlapping Sales Tax Rates .............................................................99 Debt Capacit y Ratios of Outstanding Debt by Type ...................................................................100 Ratios of General Bonded Debt Outstanding .......................................................101 Direct and Overlapping Bonded Debt -Governmental Act ivit ie s ........................102 Legal Debt Margin Information ..........................................................................103 Demographic and Economic Informat io n Demographic and Economic Informat io n ............................................................104 Principal Emplo yers ............................................................................................105 Operating Informat io n Full-Time Equivalent Employees ........................................................................106 Operating Indicators............................................................................................107 Capital Asset Statistics ........................................................................................108 - i - VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL OFFICIALS April 30, 2010 LEGISLATIVE VILLAGE BOARD OF TRUSTEES Harriet E. Rosenthal, Mayor Robert L. Benton Thomas Jester Mary Oppenheim William S. Seiden Barbara J. Struthers Alan L. Farkas Kent Street, Clerk ADMINISTRATIVE Kent Street, Village Manager FINANCE DEPARTMENT Robert W. Fialkowski Director of Finance/Treasurer MD&A 1 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2010 The Village of Deerfield (the “Village”) management’s discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village’s financial activity, (3) identify changes in the Village’s financial position (its ability to address subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget) and (5) identify individual fund issues or concerns. Since Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning on page iv) and the Village’s financial statements (beginning on page 3). Financial Highlights • The Village’s General Fund ended the year with total expenditures exceeding total revenues by $386,292. Combined with other financing net uses of $155,310, the April 30, 2010 fund balance decreased by $541,602. • Economy sensitive revenues, i.e. sales, income, and hotel/motel taxes, were all lower than the prior year. This was offset by an increase in building permit revenue, primarily due to one new substantial office building and receiving the increased home rule sales tax for a full year versus four months in the prior year. Revenue this year/last year: building permit $890,017/801,664; general fund home rule sales tax: $2,525,183/1,525,311. • Hotel/motel tax revenue declined 19% to $1,415,604; business travel is the primary reason for stays at Deerfield hotels. All six of the Deerfield hotels remained open during the year. • The Village’s base sales tax (1%) decreased 8% from the prior year, net of the Walgreen’s rebate. The revenue decline reflects a continued slowing of sales activity in the local economy reflective of the state and national economic situation. • The Village retired $600,000 of general obligation debt during the year and issued no new debt. The total balance of debt outstanding as of April 30, 2010 was $6,175,000. • The Village terminated its second and last remaining tax increment financing district on December 31, 2009. All remaining surplus funds were distributed to the various taxing bodies in FY 2010 pursuant to state statute. USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL REPORT The financial statement’s focus is on both the Village as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government-to-government) and enhance the Village’s accountability. Government-Wide Financial Statements The government-wide financial statements (see pages 3 - 5) are designed to be corporate-like in that all governmental and business-type activities are consolidated into columns that add to a total for the Primary Government. The focus of the Statement of Net Assets (the “Unrestricted Net Assets”) is designed to be similar to bottom line results for the Village and its governmental and business-type activities. This statement combines and consolidates the governmental fund’s current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities (see pages 4 – 5) is focused on both the gross and net cost of various activities (including governmental and business-type), which are supported by the government’s general taxes and other resources. This is intended to summarize and simplify the user’s analysis of the cost of various governmental services and/or subsidy to various business-type activities. The governmental activities reflect the Village’s basic services, including police, public works, engineering and administration. Property tax, shared state sales tax, local hotel/motel tax and shared state income taxes finance the majority of these services. The business-type activities reflect private sector type operations (Water, Sewer, Refuse VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 2 Disposal and Commuter Parking) where the charges for services typically cover all or most of the cost of operation, including depreciation. Fund Financial Statements Traditional users of governmental financial statements will find the fund financial statements presentation more familiar. A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Village uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the Village’s most significant funds rather than the Village as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for non-major funds is provided in the form of combining statements in a later section of this report. The governmental major funds (see pages 6 – 9) are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, governmental fund statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near- term. The government-wide financial statements provide a long-term view. Comparisons between the individual governmental fund statements and the government-wide statements provide information about financing decisions and the amount invested in maintaining and improving infrastructure. These two perspectives can provide insight into the long-term impact of short-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances reconcile the differences between these two perspectives. Budgetary comparison schedules for other funds can be found in a later section of this report. These statements and schedules demonstrate compliance with the Village’s budget. Proprietary or business-type activity funds (see pages 10 - 13) reported in the fund financial statements are for those services for which the Village charges customers a fee. There are two kinds of proprietary funds, enterprise and internal service. Enterprise funds essentially encompass the same functions reported as business-type activities in the government-wide statements. Enterprise fund services are primarily provided to customers external to the Village organization such as those of the water and sewer utilities, commuter parking lots and refuse function. Internal service funds provide services and charge fees to customers within the Village organization such as equipment services (repair and maintenance of Village vehicles). Internal services are to both the governmental and business- type activities of the government-wide financial statements. Proprietary fund statements provide both long-term and short-term financial information consistent with the focus provided by the government-wide financial statements, but with more detail for major enterprise funds. Individual fund information for internal service funds and non-major enterprise funds is found in combining statements in a later section of this report. Fiduciary funds (see pages 14 - 15) such as the employee pension plans are reported in the fiduciary fund financial statements, but are excluded from the government-wide reporting. Fiduciary fund financial statements report resources that are not available to fund Village programs. Fiduciary fund financial statements report similarly to proprietary funds. The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin on page 16 of this report. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village’s funding of pension benefit obligations to its employees and budget information. Major funds and component units are reported in the basic financial statements as discussed. Combining and individual statements and schedules for non-major and internal service funds are presented in a subsequent section of this report beginning on page 60. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 3 FINANCIAL ANALYSIS OF THE VILLAGE AS A WHOLE The Village implemented the new financial reporting model (GASB #34) beginning with the fiscal year that ended April 30, 2004. Over time, as year-to-year financial information is accumulated on a consistent basis, changes in net assets may be observed and used to discuss the changing financial position of the Village as a whole. STATEMENT OF NET ASSETS –Village of Deerfield (in millions of dollars) Governmental ActivitiesBusiness-type Activities Total – Primary Govt. 20092010200920102009 2010 Current & Other Assets 39.32 26.61 3.82 2.98 43.14 29.59 Capital Assets 63.81 66.36 24.06 27.14 87.88 93.51 Total Assets 103.13 92.97 27.89 30.12 131.02 123.10 Long-Term Liabilities 6.25 6.30 1.59 1.15 7.85 7.45 Other Liabilities 10.22 4.00 1.93 1.85 12.15 5.85 Total Liabilities 16.47 10.30 3.53 3.00 20.00 13.30 Net Assets: Investment in Capital Assets – Net of Related Debt 62.62 66.17 22.29 25.79 84.91 91.96 Restricted 5.90 1.70 - - 5.90 1.70 Unrestricted 18.14 14.80 2.07 1.33 20.21 16.13 Total Net Assets 86.66 82.67 24.36 27.13 111.02 109.80 Change in Net Assets 0 20 40 60 80 100 120 2004200520062007200820092010 FYE 4/30 $ m i l l i o n s Govt. Activities Business Type Activities VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 4 The Village’s total primary government net assets decreased by $4 million primarily due to a $5.5 million decrease in cash due to TIF surplus distribution, deficit results in the General Fund and use of cash to invest in capital outlay offset by an increase of $2.55 million in capital assets. The following table provides a summary of activities causing a change in net assets. Changes in Net Assets –Village of Deerfield (in millions of dollars) Governmental ActivitiesBusiness-type ActivitiesTotal – Primary Govt. 2009 2010200920102009 2010 Revenues: Program Revenues: Charges for Service 2.66 2.78 6.80 6.72 9.46 9.50 Operating Grants 0.49 0.47 - - 0.49 0.47 Capital Grants 0.89 2.20 - - 0.89 2.20 General Revenue: Property Taxes 7.00 8.53 0.81 0.81 7.81 9.34 Other Taxes 11.02 11.02 - - 11.02 11.02 Transfers in (out) -3.13 - 3.13 - - - Other 0.75 0.56 0.23 3.84 0.98 4.4 Total Revenue 19.67 25.56 10.97 11.37 30.64 36.93 Expenses: General Government 5.23 9.83 - - 5.23 9.83 Public Safety 7.72 8.54 - - 7.72 8.54 Highways and Streets 7.32 10.99 - - 7.32 10.99 Interest 0.22 0.19 - - 0.22 0.19 Water - - 3.99 4.10 3.99 4.10 Sewer - - 3.04 2.64 3.04 2.64 Refuse - - 1.59 1.60 1.59 1.60 Parking Lots - - 0.28 0.26 0.28 0.26 Total Expense 20.48 29.55 8.91 8.60 29.38 38.15 Changes in Net Assets -0.80 -3.99 2.06 2.77 1.26 -1.22 CURRENT YEAR IMPACTS Governmental Activities Revenue In the General Fund, revenues were under budget by $1.29 million. Total sales taxes including home rule were under budget by $0.52 million, local share of the state income tax and hotel tax were under budget by a combined $0.64 million – both reflected the slower economy. Investment income was below budget by $0.23 million due to the continued low short term interest rate environment. Property tax revenues in all funds increased by $1.53 million due primarily to growth from the assessed value in the terminated Tax Increment Financing District #2 and higher levies. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 5 Expenditures Actual expenditures in the General Fund ended the year at 88.2% of the final budget. Most departments and functions were similarly below the actual budget level. The budget was amended during the year to provide for higher than expected road salt usage due to the severe winter and for higher than expected pension contribution for police sworn personnel. Otherwise, contractual services were lower as this area generally includes contingent line items for repair and other services; no unusual activity in this area was incurred during the year. A transfer of $0.25 million was made to the Infrastructure Fund for capital projects from the General Fund. Business-type Activities Revenue A rate increase of 2.5% was implemented in May, 2009; water sales totaled $3.57 million, a decrease of $0.08 million or 2% from the prior year and 18% below budget. Continued wet weather along with the overall economic downturn led to the decline in number of units billed. Sewer user charges of $2.32 million were $0.01 million or 0.4% higher than the prior year; sewer rates were also increased 2.5%. The loss of the water sales to Riverwoods had no effect on the sewer units billed. Refuse charge rates were unchanged, and revenue of $0.62 million was essentially unchanged from the prior years. Commuter parking fees decreased slightly from $0.219 million to $0.209 million. Expenses Operating expenses for the Water Fund increased by $0.11 million or 3% primarily due to an increase in personnel costs and higher wholesale water cost due to a rate increase and the replacement of the supply meters which resulted in more accurate, but higher, billings from the Village’s supplier, the City of Highland Park. Sewer Fund operating expenses decreased by $0.46 million due primarily to reduced personnel costs associated with reduced manning and lower utility costs. Refuse Fund operating expenses increased by $0.01 primarily due to increased personnel costs for the leaf pickup program. FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS Governmental Funds At April 30, 2010, the governmental funds reported a combined fund balance of $18.0 million which is a 26% decrease from the beginning of the year ($24.4 million). The decrease is primarily due to the final distribution of surplus in the TIF 2 Fund and spend down of balances designated for capital projects. Major Governmental Funds The General Fund is the Village’s primary operating fund and the largest source of day-to-day service delivery. The undesignated fund balance of the General Fund decreased $0.54 million from $16.2 to $15.6 million. The General Fund cash balance of $14.2 million provides for 283 days of anticipated expenditures (FY 2011 budget). Revenues were below the budget of $16.4 million. Expenditures were $2.06 million less than the revised budget. This was due to lower than expected costs in all departments generally in personnel due to a slowing of replacing open positions and lower than expected contractual costs across the board. Offsetting this was higher that expected costs in the street division due to another unusually severe winter coupled with continued high prices for ice control chemicals. State shared revenues, such as income taxes and use taxes, were lower than anticipated due to overall economic conditions. State shared revenues accounted for 11% of the General Fund total, which is down from 13% in the prior year. The table below shows the original and revised budget and the actual revenues and expenditures for the General Fund. More information may be found on the schedule of revenues, expenditures and changes to fund balance on page 48. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 6 General Fund Budget versus Actual Fiscal year ended April 30, 2010 (in millions) Original Amended BudgetBudgetActual Revenues Taxes 13.64 13.64 12.19 Intergovernmental 0.04 0.04 0.05 Other 2.70 2.70 2.85 Total 16.38 16.38 15.09 Expenditures & Transfers Expenditures 16.65 17.54 15.47 Other Sources - - -0.09 Transfers – Net 2.10 2.10 0.25 Total 18.75 19.64 15.63 Change in Fund Balance -2.37 -3.26 -0.54 In the Tax Increment Financing District #2 the major source of revenue, increment property tax, was up 3.6% to $5.12 million. This district was terminated early on December 31, 2009 and this was the final year of property tax revenue (2009 taxes payable in 2010). Expenses for the year consisted of the final distribution of surplus pursuant to state statute. In the Infrastructure Replacement Fund, total inflow decreased 43% to $2.68 million and consisted of TIF surplus distribution and a transfer in from the General Fund. Expenditures for capital improvements decreased $2.10 million due to a smaller capital program for the year. 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 fell under budget $0.80 million due to the continued loss of sales to the Village of Riverwoods, general economic slowdown and a wetter than normal year. Actual operating expenses excluding depreciation were 86% of budget due to lower quantities of wholesale water purchased and expenses generally below budget in other areas. Overall, operating revenues slightly exceeded operating expenses. The Sewerage Fund operating expense excluding depreciation exceeded operating revenue by $0.05 million which was substantially better than the prior year. Lower than expected personnel costs and capital improvements caused expenses to be substantially below budget. Capital expenses for the foreseeable future in this fund will be transferred to the Infrastructure Fund. The replacement of the treatment plant will use a new debt issuance or other borrowing. Internal Service Funds The Village’s combined internal service funds’ net assets were $5.6 million as of April 30, 2010, with $5.4 million of the total accumulated for major equipment purchases in the Vehicle and Equipment Replacement Fund. Total revenue exceeded expenses by $0.02 million in the Garage Fund due to increased charge rates for repair activity. 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 April 30, 2010 was $66.4 million. The Village’s investment in capital assets, net of accumulated depreciation, for business-type activities as of April 30, 2010 was $27.1 million. Major capital asset events during the current fiscal year included installation of new water and sewer mains and sanitary sewer pumping facilities. Additional information on capital assets is presented in Note 4 to the financial statements. Long-term debt At the end of the fiscal year, the Village had total bonded debt outstanding of $6.18 million. $4.8 million of this amount is intended to be funded directly from property taxes with an annual review by the Village to determine the availability of using alternate revenues for the debt service. For the remaining amount the alternate funding is from water sales revenues. No new general obligation debt was issued during the current year. As a home rule VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 7 government, under Illinois law, the Village has no legal debt limit. As of April 30, 2010 the total Village debt represented 0.38% of the equalized assessed value. Additional information on long-term debt is presented in Note 6 to the financial statements. Bond Rating The Village’s general obligation bonds are rated Aaa by Moody’s Investor Rating Service. The Aaa rating was last reaffirmed in July 2009. 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 generous end of career accumulated leave pay-outs have resulted in increased rates of contribution 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 with slowdowns in local retail sales and hotel/motel occupancies. The Village is an affluent residential community with a substantial office/commercial presence including a number of headquarters operations in the health services and pharmaceutical areas. Property taxes are a minor part of the overall operating revenues. As a portion of the General Fund, property tax revenue increased from 13% of total revenue in FY 2009 to 13.8% in FY 2010. Neither major retail area of the Village lost any major tenants during the year which helped to attenuate the decrease in year to year sales tax revenue. Building permit revenues have also stabilized with continued remodeling of both residential and commercial properties replacing the activity in the redevelopment of residential property within the Village. The Village is not immune to the overall tightening of the residential market and sales prices have fallen. The Village’s hotel/motel tax declined due to less business travel with a decrease of $0.36 million or 19% from last year. All of the Village’s six hotels have remained open during the year. The continued strength of the local corporate employment provides a base level of demand for rooms which is the primary market for these hotels; this revenue was beginning to recover at the end of the fiscal year. Contacting the Village’s Financial Management This financial report is designed to provide a general overview of the Village’s finances, comply with finance-related laws and regulations and demonstrate the Village’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the Village’s Finance Director, 850 Waukegan Road, Deerfield, IL 60015 or access the Village website at www.deerfield.il.us. Component Unit Governmental Business-Type Deerfield Activities Activities Total Public Library ASSETS Cash and investments 20,003,647$ 907,065$ 20,910,712$ 3,969,100$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 2,018,147 782,411 2,800,558 2,697,775 Accounts 477,308 943,782 1,421,090 - Accrued interest 22,927 1,506 24,433 15,828 In ventory 141,859 252,184 394,043 - Due from other governments 2,500,475 - 2,500,475 - Due from component unit 1,179 - 1,179 - Prepaid expenses 417,274 - 417,274 36,413 Deferred charges 64,082 90,413 154,495 - Net pension asset 967,087 - 967,087 - Capital assets not being depreciated 21,201,197 3,747,590 24,948,787 65,493 Capital assets (net of accumulated depreciation)45,159,732 23,397,296 68,557,028 353,401 Total assets 92,974,914 30,122,247 123,097,161 7,138,010 LIABILITIES Accounts payable 826,101 439,511 1,265,612 27,571 Accrued payroll 320,844 68,014 388,858 59,520 Retainage payable 126,792 - 126,792 - Deposits payable 11,940 23,188 35,128 - Other payables 109,252 - 109,252 - Accrued interest payable 78,110 18,680 96,790 - Unearned revenues 2,184,950 841,360 3,026,310 2,903,250 Due to primary government - - - 1,179 Noncurrent liabilities Due within one year 344,543 457,090 801,633 60,100 Due in more than one year 6,298,721 1,147,204 7,445,925 80,874 Total liabilities 10,301,253 2,995,047 13,296,300 3,132,494 NET ASSETS In vestment in capital assets, net of related debt 66,174,872 25,794,886 91,969,758 418,894 Restricted for Maintenance of roadways 484,477 - 484,477 - Public safety 1,108,510 - 1,108,510 - Debt service 105,915 - 105,915 - Culture and recreation - - - 3,586,622 Unrestricted 14,799,887 1,332,314 16,132,201 - TOTAL NET ASSETS 82,673,661$ 27,127,200$ 109,800,861$ 4,005,516$ Primary Government VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF NET ASSETS April 30, 2010 See accompanying notes to financial statements. - 3 - Operating Capital Charges Grants and Grants and FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities General government 9,833,315$ 1,862,200$ -$ -$ Public safety 8,543,631 866,510 1,100 - Highways and streets 10,985,018 47,219 473,426 2,195,963 Interest 193,105 - - - Total governmental activities 29,555,069 2,775,929 474,526 2,195,963 Business-Type Activities Water 4,103,889 3,567,809 - - Sewerage 2,643,276 2,320,123 - - Refuse disposal 1,599,244 622,629 - - Commuter parking lot 262,458 209,165 - - Total business-type activities 8,608,867 6,719,726 - - TOTAL PRIMARY GOVERNMENT 38,163,936$ 9,495,655$ 474,526$ 2,195,963$ COMPONENT UNIT Deerfield Public Library 2,984,258$ 84,396$ 30,609$ 11,216$ Program Revenues VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended April 30, 2010 - 4 - Component Unit Deerfield Governmental Business-Type Public Activities Activities Total Library (7,971,115)$ -$ (7,971,115)$ -$ (7,676,021) - (7,676,021) - (8,268,410) - (8,268,410) - (193,105) - (193,105) - (24,108,651) - (24,108,651) - - (536,080) (536,080) - - (323,153) (323,153) - - (976,615) (976,615) - - (53,293) (53,293) - - (1,889,141) (1,889,141) - (24,108,651) (1,889,141) (25,997,792) - - - - (2,858,037) General Revenues Taxes Property 8,536,870 807,968 9,344,838 2,730,494 Replacement 81,182 - 81,182 78,814 Sales 4,995,509 - 4,995,509 - Home rule sales 2,525,183 - 2,525,183 - Income 1,462,986 - 1,462,986 - Local use 219,053 - 219,053 - Hotel/motel 1,415,604 - 1,415,604 - Simplified telecommunications 326,528 - 326,528 - Investment income 166,844 8,304 175,148 29,470 Miscellaneous 393,359 146,400 539,759 163,241 Capital contributions - 3,693,017 3,693,017 - Total 20,123,118 4,655,689 24,778,807 3,002,019 CHANGE IN NET ASSETS (3,985,533) 2,766,548 (1,218,985) 143,982 NET ASSETS, MAY 1 86,659,194 24,360,652 111,019,846 3,861,534 NET ASSETS, APRIL 30 82,673,661$ 27,127,200$ 109,800,861$ 4,005,516$ Primary Government Net (Expense) Revenue and Change in Net Assets See accompanying notes to financial statements. - 5 - Tax Increment Infrastructure Financing Nonmajor General Replacement District 2 Governmental Total Cash and investments 14,195,972$ 290,395$ -$ 1,599,934$ 16,086,301$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 1,832,164 41,840 - 144,143 2,018,147 Accounts 351,140 52,813 - 70,831 474,784 Accrued interest 16,636 - - 2,093 18,729 Due from other governments 2,273,341 187,178 - 39,956 2,500,475 Due from component unit 1,179 - - - 1,179 Inventory 30,618 - - - 30,618 Prepaid items 417,274 - - - 417,274 TOTAL ASSETS 19,118,324$ 572,226$ -$ 1,856,957$ 21,547,507$ LIABILITIES Accounts payable 629,946$ 169,781$ -$ 3,055$ 802,782$ Accrued payroll 314,885 - - - 314,885 Deposits payable 11,940 - - - 11,940 Retainage payable - 126,792 - - 126,792 Other payables 109,252 - - - 109,252 Deferred property taxes 1,984,950 45,000 - 155,000 2,184,950 Total liabilities 3,050,973 341,573 - 158,055 3,550,601 FUND BALANCES Reserved for inventory 30,618 - - - 30,618 Reserved for prepaid items 417,274 - - - 417,274 Reserved for debt service - - - 105,915 105,915 Reserved for maintenance of roadways - - - 484,477 484,477 Reserved for public safety - - - 1,108,510 1,108,510 Unreserved Undesignated - General Fund 15,619,459 - - - 15,619,459 Undesignated - Capital Projects Funds - 230,653 - - 230,653 Total fund balances 16,067,351 230,653 - 1,698,902 17,996,906 TOTAL LIABILITIES AND FUND BALANCES 19,118,324$ 572,226$ -$ 1,856,957$ 21,547,507$ LIABILITIES AND FUND BALANCES VILLAGE OF DEERFIELD, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS April 30, 2010 ASSETS See accompanying notes to financial statements. - 6 - FUND BALANCES OF GOVERNMENTAL FUNDS 17,996,906$ Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 66,360,929$ Less internal service funds (1,597,334)64,763,595 Discount on bonds issued and issuance costs are capitalized and amortized on the statement of net assets 64,082 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Bonds payable (4,825,000) Other postemployment benefit payable (299,886) Compensated absences (1,518,378) Less internal service funds (26,065)(1,492,313) Accrued interest on long-term liabilities is shown as a liability on the statement of net assets (78,110) The net pension asset is included in the governmental activities in the statement of net assets 967,087 The net assets of the internal service fund are included in the governmental activities in the statement of net assets 5,577,300 NET ASSETS OF GOVERNMENTAL ACTIVITIES 82,673,661$ April 30, 2010 VILLAGE OF DEERFIELD, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS See accompanying notes to financial statements. - 7 - VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended April 30, 2010 Tax In crement In frastructure Financing Nonmajor General Replacement District 2 Governmental Total REVENUES Taxes 12,190,476$ 2,248,003$ 5,124,436$ -$ 19,562,915$ Licenses and permits 1,366,472 - - - 1,366,472 In tergovernmental 49,229 428,528 - 473,426 951,183 Charges for services 313,546 - - 341,116 654,662 Fines and forfeits 227,686 - - - 227,686 In vestment income 117,172 - 34,623 15,049 166,844 Miscellaneous 821,396 - - - 821,396 Total revenues 15,085,977 2,676,531 5,159,059 829,591 23,751,158 EXPENDITURES Current General government 5,057,271 - 7,414,375 - 12,471,646 Public safety 7,992,953 - - 329,868 8,322,821 Highways and streets 2,422,045 - - 494,000 2,916,045 Capital outlay - 4,624,974 1,582,492 - 6,207,466 Debt service Principal retirement - - - 175,000 175,000 In terest and fiscal charges - - - 193,150 193,150 Total expenditures 15,472,269 4,624,974 8,996,867 1,192,018 30,286,128 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (386,292) (1,948,443) (3,837,808) (362,427) (6,534,970) OTHER FINANCING SOURCES (USES) Transfers in - 923,389 - - 923,389 Transfers (out)(250,000) - - (673,389) (923,389) Sale of capital assets 94,690 - - - 94,690 Total other financing sources (uses)(155,310) 923,389 - (673,389) 94,690 NET CHANGE IN FUND BALANCES (541,602) (1,025,054) (3,837,808) (1,035,816) (6,440,280) FUND BALANCES, MAY 1 16,608,953 1,255,707 3,837,808 2,734,718 24,437,186 FUND BALANCES, APRIL 30 16,067,351$ 230,653$ -$ 1,698,902$ 17,996,906$ See accompanying notes to financial statements. - 8 - NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (6,440,280)$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures; however, they are capitalized and depreciated in the statement of activities 3,088,301$ Less internal service funds (430,837)2,657,464 The repayment of the principal portion long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities 175,000 The decrease in interest payable is reported as a reduction of expense on the statement of activities 2,370 The increase in bond issuance costs is reported as an increase in expense on the statement of activities (2,325) Capital contributions by developers are reported as revenue in the statement of activities 1,723,688 Some expenses in the statement of activities (e.g., depreciation) do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds (2,248,476) Less internal service funds 237,722 (2,010,754) The loss on disposal of capital assets for road reconstruction decreases the highways and streets expense on the statement of activities (16,520) The increase in compensated absences is reported as an addition to expense on the statement of activities (120,347) The increase in the other postemployment benefit payable is reported as an addition to expense on the statement of activities (130,186) The decrease in net pension asset is reported as an addition to expense on the statement of activities (15,231) The change in net assets of certain activities of internal service funds is in governmental funds 191,588 CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES (3,985,533)$ For the Year Ended April 30, 2010 VILLAGE OF DEERFIELD, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES EXPENDITURES AND CHANGES IN FUND BALANCES TO THE See accompanying notes to financial statements. - 9 - VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF NET ASSETS PROPRIETARY FUNDS April 30, 2010 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service CURRENT ASSETS Cash and investments 15,767$ 165,265$ 63,812$ 662,221$ 907,065$ 3,917,346$ Receivables Property taxes - - 782,411 - 782,411 - Accounts - billed 91,588 81,049 22,474 - 195,111 2,524 Accounts - unbilled 390,348 262,122 96,201 - 748,671 - Accrued interest 282 113 309 802 1,506 4,198 Inventory 240,430 11,754 - - 252,184 111,241 Total current assets 738,415 520,303 965,207 663,023 2,886,948 4,035,309 NONCURRENT ASSETS Deferred bond issuance costs 90,413 - - - 90,413 - Total noncurrent assets 90,413 - - - 90,413 - CAPITAL ASSETS Nondepreciable 1,917,745 1,752,345 - 77,500 3,747,590 - Depreciable 17,427,732 11,222,544 - 1,950,830 30,601,106 3,225,316 Accumulated depreciation (3,780,829) (2,675,336) - (747,645) (7,203,810) (1,627,982) Net capital assets 15,564,648 10,299,553 - 1,280,685 27,144,886 1,597,334 Total assets 16,393,476 10,819,856 965,207 1,943,708 30,122,247 5,632,643 CURRENT LIABILITIES Accounts payable 239,264 69,805 125,597 4,845 439,511 23,319 Accrued payroll 26,572 40,587 - 855 68,014 5,959 Deposits payable 14,053 9,135 - - 23,188 - Accrued interest payable 18,680 - - - 18,680 - Unearned property taxes - - 841,360 - 841,360 - Compensated absences payable 9,596 11,647 - 847 22,090 2,606 Current portion of general obligations bonds payable 435,000 - - - 435,000 - Total current liabilities 743,165 131,174 966,957 6,547 1,847,843 31,884 LONG-TERM LIABILITIES Compensated absences payable 86,364 104,822 - 7,627 198,813 23,459 Other postemployment benefit payable 19,343 14,048 - - 33,391 - General obligation bonds payable 915,000 - - - 915,000 - Total long-term liabilities 1,020,707 118,870 - 7,627 1,147,204 23,459 Total liabilities 1,763,872 250,044 966,957 14,174 2,995,047 55,343 NET ASSETS Invested in capital assets, net of related debt 14,214,648 10,299,553 - 1,280,685 25,794,886 1,597,334 Unrestricted 414,956 270,259 (1,750) 648,849 1,332,314 3,979,966 TOTAL NET ASSETS 14,629,604$ 10,569,812$ (1,750)$ 1,929,534$ 27,127,200$ 5,577,300$ Business-Type Activities See accompanying notes to financial statements. - 10 - VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS For the Year Ended April 30, 2010 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service OPERATING REVENUES Charges for services 3,567,809$ 2,320,123$ 622,629$ 209,165$ 6,719,726$ 958,233$ Miscellaneous 98,174 33,285 5,349 - 136,808 8,084 Total operating revenues 3,665,983 2,353,408 627,978 209,165 6,856,534 966,317 OPERATING EXPENSES Administration 524,643 443,123 - - 967,766 - Operations 3,131,357 1,964,399 1,599,244 235,721 6,930,721 366,648 Commodities - - - - - 267,353 Total operating expenses 3,656,000 2,407,522 1,599,244 235,721 7,898,487 634,001 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 9,983 (54,114) (971,266) (26,556) (1,041,953) 332,316 Depreciation 367,081 235,754 - 26,737 629,572 237,722 OPERATING INCOME (LOSS)(357,098) (289,868) (971,266) (53,293) (1,671,525) 94,594 NONOPERATING REVENUES (EXPENSES) Investment income 1,079 120 1,765 5,340 8,304 28,246 Property taxes - - 807,968 - 807,968 - Gain on disposal of capital assets - - - - - 68,748 Interest expense (80,808) - - - (80,808) - Miscellaneous - 9,592 - - 9,592 - Total nonoperating revenues (expenses)(79,729) 9,712 809,733 5,340 745,056 96,994 INCOME (LOSS) BEFORE CONTRIBUTIONS (436,827) (280,156) (161,533) (47,953) (926,469) 191,588 CONTRIBUTIONS 539,789 3,153,228 - - 3,693,017 - CHANGE IN NET ASSETS 102,962 2,873,072 (161,533) (47,953) 2,766,548 191,588 NET ASSETS, MAY 1 14,526,642 7,696,740 159,783 1,977,487 24,360,652 5,385,712 NET ASSETS (DEFICIT), APRIL 30 14,629,604$ 10,569,812$ (1,750)$ 1,929,534$ 27,127,200$ 5,577,300$ Business-Type Activities See accompanying notes to financial statements. - 11 - VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended April 30, 2010 Governmental Activities Nonmajor Enterprise Total Internal Water Sewer Refuse (Parking Lot)Enterprise Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 3,497,219$ 2,281,142$ 620,218$ 209,165$ 6,607,744$ -$ Receipts from interfund services - - - - - 956,411 Receipts from miscellaneous revenues 98,174 33,285 5,349 - 136,808 8,084 Payments to suppliers (2,587,565) (922,007) (1,480,609) (212,218) (5,202,399) (396,161) Payments to employees (977,849) (1,567,061) (62,490) (23,285) (2,630,685) (219,047) Payments for interfund services (83,606) (113,665) (50,175) - (247,446) - Net cash from operating activities (53,627) (288,306) (967,707) (26,338) (1,335,978) 349,287 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes - - 815,155 - 815,155 - Net cash from noncapital financing activities - - 815,155 - 815,155 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - - - - - 68,748 Capital assets purchased - (16,941) - - (16,941) (430,837) Bond principal payments (425,000) - - - (425,000) - Bond interest payments (57,562) - - - (57,562) - Miscellaneous - 9,592 - - 9,592 - Net cash from capital and related financing activities (482,562) (7,349) - - (489,911) (362,089) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 2,107 977 2,265 5,935 11,284 30,780 Net cash from investing activities 2,107 977 2,265 5,935 11,284 30,780 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (534,082) (294,678) (150,287) (20,403) (999,450) 17,978 CASH AND CASH EQUIVALENTS, MAY 1 549,849 459,943 214,099 682,624 1,906,515 3,899,368 CASH AND CASH EQUIVALENTS, APRIL 30 15,767$ 165,265$ 63,812$ 662,221$ 907,065$ 3,917,346$ Business-Type Activities (This statement is continued on the following page.) - 12 - VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS For the Year Ended April 30, 2010 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)(357,098)$ (289,868)$ (971,266)$ (53,293)$ (1,671,525)$ 94,594$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation and amortization 367,081 235,754 - 26,737 629,572 237,722 (Increase) decrease in Receivables (70,590) (38,981) (2,411) - (111,982) (1,822) Inventories (49,480) (204) - - (49,684) 1,521 Increase (decrease) in Accounts payable 52,515 (170,541) 5,970 (581) (112,637) 14,891 Deposits payable 3,656 3,006 - - 6,662 - Accrued payroll 4,498 (1,091) - 194 3,601 1,030 Other postemployment benefit payable 10,043 7,948 - - 17,991 - Compensated absences payable (14,252) (34,329) - 605 (47,976) 1,351 NET CASH FROM OPERATING ACTIVITIES (53,627)$ (288,306)$ (967,707)$ (26,338)$ (1,335,978)$ 349,287$ NONCASH TRANSACTIONS Contributions of capital assets by other funds 539,789$ 3,153,228$ -$ -$ 3,693,017$ -$ TOTAL NONCASH TRANSACTIONS 539,789$ 3,153,228$ -$ -$ 3,693,017$ -$ Business-Type Activities See accompanying notes to financial statements. - 13 - Pension Agency Trust Fund Funds ASSETS Cash and cash equivalents 529,198$ 1,130,802$ Investments U.S. Treasury obligations 9,209,221 - U.S. agencies securities 2,266,735 - Mutual funds 13,977,432 - Municipal bonds 1,261,588 - Receivables Accrued interest 68,465 78 Total assets 27,312,639 1,130,880$ LIABILITIES Accounts payable 10,865 11,320$ Deposits payable - 1,069,701 Other payables - 49,859 Total liabilities 10,865 1,130,880$ NET ASSETS HELD IN TRUST FOR PENSION BENEFITS 27,301,774$ VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS April 30, 2010 See accompanying notes to financial statements. - 14 - ADDITIONS Contributions - employer 1,202,006$ Contributions - employee 358,412 Total contributions 1,560,418 Investment income Net appreciation (depreciation) in fair value of investments 4,557,279 Interest earned on investments 504,026 Total investment income 5,061,305 Less investment expense (1,466) Net investment income 5,059,839 Miscellaneous 10,105 Total additions 6,630,362 DEDUCTIONS Benefits and refunds Pension payments 1,505,165 Administrative 15,830 Total deductions 1,520,995 NET INCREASE 5,109,367 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1 22,192,407 April 30 27,301,774$ VILLAGE OF DEERFIELD, ILLINOIS PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended April 30, 2010 See accompanying notes to financial statements. - 15 - -16 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS April 30, 2010 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Deerfield, Illinois (the Village) have been prepared in conformit y w it h account ing principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Account ing Standards Board (GASB) is the accepted standard-setting body fo r establishing governmental account ing and financial reporting principles. The more significant of the Village’s account ing po licies are described below. a.Reporting Ent it y The Village was incorporated in 1903. The Village is a municipal corporation governed by an elected seven-me mber board. As required by GAAP, these financial statements present the Village (the primary government) and its component units. The Village’s financial statements include: Pensio n Trust Fund Police Pensio n Employees Ret ir ement System The Village’s po lice emplo yees part ic ipate in the Police Pensio n E mp lo yees Retirement System (PPERS). PPERS funct io ns fo r the benefit of these emplo yees and is governed by a five-member pensio n board. Two members appo int ed by t he Village’s Mayor, one elected pensio n beneficiary and two elected police emplo yees constitute the pension board. The Village and PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determinat io n of contribution levels. Alt hough it possesses many of the characterist ics of a legally separate government, PPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensio ns of the Village’s police emplo yees and because of the fiduciary nature of such activit ies. PPERS is reported as a pension trust fund. Separate financial statements are issued and available from t he Police Pensio n Board. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -17 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a.Reporting Ent it y (Continued) Discretely Presented Component Unit Deerfield Public Library The Deerfield Public Library (the Library) has a separately elected seven-member board, which annually determines its budget and result ing tax levy. Upon approval of the Village, the levy is submitted to the County. All debt of the Library is secured by t he full fait h and credit of the Village, which is who lly liable for the debt. The Library, while servicing the general populatio n of the Village, does not provide services entirely to the Village. Because the Library possesses the characteristic s of a legally separate government and does not service the primary government, the Library is being reported as a discrete presentation. Separate financial statements are disclosed in the co mponent unit portion of this report. Separate financial statements are available at the Library, 920 Waukegan Road, Deerfield, IL 60015. Joint Ventures Solid Waste Agency o f Lake Count y (SWALCO) SWALCO is a municipal corporation empowered to plan, finance, construct and operate a solid waste disposal system to serve its member municipalities. Management consists of a Board of Directors comprised of one appoint ed representative fro m each member. The Village does not exercise any control over the activit ies of SWALCO beyo nd it s representation on the Board of Directors. SWALCO is reported as a proprietary jo int venture. b.Fund Account ing The Village uses fu nds to report on its financial position, changes in its financial position and cash flows. Fund account ing is designed to demonstrate legal compliance and to aid financial management by segregating transact io ns related to certain government functions or activitie s. A fu nd is a separate accounting entit y w it h a self-balancing set of accounts. A minimum number of funds are maintained consistent with legal and managerial requirements. Funds are classified into the following categories: governmental, proprietary and fiduciary. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -18 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b.Fund Account ing (Continued) Governmental funds are used to account for all or most of the Village’s general activit ies, including the collection and disbursement of earmarked monies (special revenue funds), the acquisit io n or construction of capital assets (capital projects funds) and the servicing of general lo ng-term debt (debt service funds). The general fund is used to account for all act ivit ies of the general government not accounted for in so me other fund. Proprietary fu nds are used to account for activit ies similar to those found in the private sector, where the determinat io n of net income is necessary or useful to sound financial administration. Goods or services fro m such act ivit ies can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the Village (internal service funds). The Village has elected, under the provisions of GASB Statement 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements and all FASB Statements and Interpretations, Accounting Principles Board (APB) Opinio ns and Account ing Research Bullet ins (ARB) issued on or before November 30, 1989, unless they conflict with or contradict GASB pronouncements. Fiduciary funds are used to account fo r assets held on behalf o f o ut side part ies, including other governments, or on behalf of other funds within the Village. When these assets are held under the terms of a fo rmal trust agreement, a pension trust fund may be used. The Village has a police pensio n fu nd. Agency funds are used to account for funds that the Village ho lds on behalf of others as their agent. c.Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activit ies) report informat io n on all o f the nonfiduciary act ivit ies o f t he Village. The effect of material interfund activit y (except for activit ies reported in int ernal service funds) has been eliminated from these statements. Governmental activit ies, which normally are supported by taxes and intergovernmental revenues, are reported separately fro m bu siness-type activit ies, which rely to a significant extent on fees and charges for support. The statement of act ivit ie s demonstrates the degree to which the direct expenses of a given funct io n, segment or program are offset by program revenues. Direct expenses are those that are clearly ident ifiable wit h a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given funct io n or segment and (2) grants and standard revenues that are restricted to meet ing the operational or capital requirements of a particular funct io n or segment. Taxes and other items not properly included amo ng program revenues are reported instead as general revenues. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -19 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c.Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded fro m t he 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 fo llo wing major governmental funds: The General (Corporate) Fund is the Village’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Infrastructure Replacement Fund was established for the purpose of maintaining, repairing and renovat ing the capital assets of the Village. The Tax Increment Financing District 2 Fund provides funds for land acquisit io n and improvements to the Village’s Village Center Tax Increment Financing District. The Village reports the fo llo wing major proprietary funds: The Water Fund accounts for all act ivit y ne cessary to provide water to the residents of the Village including administration, operation, maintenance, financing and related debt service. The Sewerage Fund accounts for the provision of sewer service to the residents of the Village. All act ivit y ne cessary to provide such services is accounted for in t his fund including, but not limited to, administration, construction, maintenance and operations of the Sewerage Treatment Plant. The Refuse Fund accounts for all revenues and expenses necessary to provide the residents of the Village with refuse service. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -20 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c.Government-Wide and Fund Financial Statements (Continued) Addit io nally, the Village reports the follo wing proprietary fund: Internal Service Funds The Garage Fund accounts for all act ivit y necessary to maintain the efficient and safe operation of the Village’s vehicles and equipment and is funded by various departments according to services rendered. The Vehicle and Equipment Replacement Fund accounts for purchases of vehicles and equipment and is funded by various departments according to services rendered. These funds are reported as governmental act ivit ies on the government-wide financial statements. The Village reports a pension trust fund as a Fiduciary Fund to account for the Police Pensio n Fund. The Village also reports Agency Funds to account for street deposits and water meter deposits (Deposit Fund), DARE funds and radio dispatching funds (East Shore Radio Network Fund) that the Village ho lds on behalf of others as their agent. d.Measurement Focus, Basis of Account ing and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis o f accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues and addit io ns are recorded when earned and expenses and deductions are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e., int ended to finance). Grants and similar items are recognized as revenue as soon as all eligibilit y r equirements imposed by the provider have been met. Operating revenues/expenses include all revenues/expenses direct ly related to providing the day-to-day enterprise fund services. Incidental revenues/expenses, such as property taxes and invest me nt inco me,are reported as nonoperating. Governmental fund financial statements are accounted for using a current financial resources measurement focus and the modified accrual basis of account ing. Revenues are recognized when suscept ible to accrual (i.e., when they beco me both measurable and available). “Measurable”means the amount of the transact io n can be determined and “available”means collectible wit hin the current period. The Village recognizes property taxes when they become both measurable and available in t he period intended to finance, generally wit hin 60 days of year end. Sales taxes, teleco mmunicat io ns taxes and use taxes use a 90 day period and income t axes use a 120 day period. Expenditures are recorded when the related fund liabilit y is incurred. Principal and interest on general long-term debt are recorded as fund liabilit ies when due or when amounts have been accumulated in the debt service fund fo r payments to be made early in the fo llo wing year. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -21 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d.Measurement Focus, Basis of Account ing and Financial Statement Presentation (Continued) Those revenues suscept ible to accrual are property taxes, franchise taxes, licenses, int erest revenue and charges for services. Sales tax, teleco mmunicat io n t ax, local use tax and motor fuel tax and fines owed to/collected by the state at year end on behalf o f t he Village also are recognized as revenue. Permit revenues are not suscept ible to accrual because generally they are not measurable until received in cash. The Village reports unearned/deferred revenue on its financial statements. Unearned/deferred revenues arise when a potential revenue does not meet both the “measurable”and “available”criteria for recognit ion in the current period. Unearned/deferred revenues also arise when resources are received by the Village before it has a leg al claim to them, as when grant mo nies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the Village has a legal claim to the resources, the liabilit y fo r unearned/deferred revenue is removed fro m t he financial statements and revenue is recognized. e.Cash and Invest me nt s Cash and Cash Equivalents For purposes of the statement of cash flows, the Village’s proprietary fu nds consider all highly liquid invest me nt s with an original maturity of three months or less when purchased to be cash equivalents. Invest me nt s Invest me nt s with a maturit y o f le ss than one year when purchased and nonnegotiable certificates of deposit are stated at cost or amortized cost . Invest me nt s with a maturit y greater than one year when purchased and all invest me nt s of the pensio n trust funds are stated at fair value. Fair value is based on prices listed on natio nal exchanges as of April 30, 2010 fo r debt and equity securit ies. f.Short -Term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “due from other funds”or “due to other funds”on the balance sheet. Short -term int erfund loans, if any, are classified as “int erfund receivables/payables.” VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -22 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) g.Ad vances to Other Funds Noncurrent portions of lo ng-term int erfund loan receivables are reported as advances between funds in the fund financial statements. The advances are offset equally by a fund balance reserve account in applicable governmental funds to ind icate that they are not available for appropriat io n and are not expendable available financial resources. h.Inventories Inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The costs of governmental fund inventories are recorded as expenditures when consumed rather than when purchased. i.Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. j.Capital Assets Capital assets, which include property, plant, equipment, water and sewer system and infrastructure assets (e.g., roads, bridges and similar items) are reported in the applicable governmental or business-type activit ies columns in the government-wide financial statements.Capital assets are defined by the Village as assets with an init ial, individual cost in excess of $25,000 and an estimated useful life in excess of one year. All purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their est imated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -23 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j.Capital Assets (Continued) Depreciat io n of buildings,equipment, water/sewer systems and vehicles is computed using the straight-line method over the fo llo wing useful lives: Years Buildings and building improvements 20-50 Parking improvements 15-50 Water/sewer system 40-60 Vehicles, machinery and equipment 4-20 Infrastructure 20-50 k.Compensated Absences Vested or accumulated vacat io n le ave, including related social securit y and medicare, that is owed to retirees or terminated employees is reported as an expenditure and a fund liabilit y of the governmental fund that will pay it in t he fund financial statements and the remainder is reported in long-term debt. Vested or accumulated vacation leave and vested sick leave of proprietary fu nds at both levels and governmental activit ies at the government-wide level is recorded as an expense and liabilit y as the benefit s accrue to emplo yees. l.Long-Term Obligat io ns In the government-wide financial statements and proprietary fu nds in t he fund financial statements, long-term debt and other long-term obligations are reported as liabilit ies in the applicable governmental act ivit ies,business-type activit ies or proprietary fu nd financial statements. Bond premiums and discounts, as well as issuance costs and gains/losses on refundings, are deferred and amortized over the life o f t he bonds using the bonds outstanding method, which approximates the effect ive interest method. Bonds payable are reported net of the applicable bond premium or discount and gains/losses on refundings. Bond is suance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld fro m t he actual debt proceeds received, are reported as expenditures. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -24 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) m.Fund Equit y/Net Assets In the fund financial statements, governmental funds report reservatio ns of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative ma nagement plans that are subject to change. In the government- wide financial statements, restricted net assets are legally restricted by outside parties fo r a specific purpose. At April 30, 2010, no net asset restrict io ns were the result of enabling legislat io n adopted by the Village. Capital assets, net of related debt is the book value of the capital assets less the outstanding principal balance of long-term debt issued to construct or acquire the capital asset. n.Interfund Transactions Interfund services are accounted for as revenues, expenditures or expenses. Transact io ns that constitute reimbursements to a fund for expenditures/expenses init ially made fro m 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 transact io ns, except int erfund services and reimbursements, are reported as transfers. o.Account ing Est imates The preparation of financial statements in conformity w it h generally accepted accounting principles requires management to make estimates and assumptio ns that affect the reported amounts of assets and liabilit ies and disclosure of contingent assets and liabilit ies at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 2.DEPOSITS AND INVESTMENTS The Village maintains a cash and invest me nt pool that is available for use by all funds, except the pensio n t rust fund. Each fund’s portion of this pool is displayed on the financial statements as “cash and invest me nt s.” In addition, invest me nt s are separately held by several o f t he Village’s fu nds. The deposits and investments of the pensio n t rust fund are held separately fro m t hose of other funds. Permitted Deposits and Invest me nt s -Statutes and the Village’s invest me nt policy authorize the Village to make deposits/invest in insured commercial banks, savings and lo an inst it ut io ns, obligat io ns of the U.S. Treasury and U.S. agencies, insured credit unio n shares, money market mutual funds wit h portfolios of securit ies issued or guaranteed by the United States or agreements to repurchase these same obligatio ns, repurchase agreements, short-term commercial paper rated within the three highest classificat io ns by at least two standard rating services and Illino is Funds. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -25 - 2.DEPOSITS AND INVESTMENTS (Continued) The Police Pensio n Fund can invest in the same securit ies as the Village, plus the fo llo wing: certain non-U.S. obligat io ns (co rporate debt securit ies), Illino is municipal corporations tax ant ic ipat io n warrants, veteran’s lo ans, obligations of the State of Illinois and its polit ical divisio ns, Illino is insurance co mpany general and separate accounts, mutual fu nds and equit y securities (not to exceed 45% of the total assets of the Police Pensio n Fund). It is the policy o f t he Village to invest its funds in a manner which will provide the highest investment return with the maximum security w hile meet ing the daily cash flow demands of the Village and conforming to all state and local statutes governing the investme nt of public funds, using the “prudent person”standard for managing the overall portfolio . The primary object ive of the policy is safet y (preservat ion of capital and protection of investment principal), liquidit y a nd yield. a.Village Deposits with Financial Inst it utions Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure, the Village’s deposits may not be returned to it. The Village’s invest me nt policy requires pledging of collateral with a fair value of 100% of all bank balances in excess of federal depository insurance with the co llateral held by t he Village’s agent in the Village’s name. b.Village Invest me nt s The fo llowing table presents the Village’s investments in and maturities of debt secur it ies as o f April 30, 2010: Investment Maturities (in Years) Fair Greater than Value Less than 1 1-5 6-10 10 U.S. agency obligations $3,473,220 $51,009 $1,657,678 $1,764,533 $- Municipal obligations 505,835 -505,835 -- Illinois Funds 5,066,123 5,066,123 --- IMET 11,035,174 -11,035,174 -- TOTAL $20,080,352 $5,117,132 $13,198,687 $1,764,533 $- In accordance with its invest me nt policy, the Village limit s it s exposure to interest rate risk by structuring the portfolio to provide liquidit y fo r operating funds and maximizing yields for fu nds not needed within a three-year period. However, the investment policy does not limit the maximum maturity length of invest me nt s. Invest me nt s may be purchased with maturit ie s to match future projects or liabilit y requirements. In addit io n, the policy requires the Village to structure the investment portfolio so that securit ie s mature to meet cash requirements for ongoing operations, thereby avo id ing the need to sell securit ie s on the open market prior to maturit y. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -26 - 2.DEPOSITS AND INVESTMENTS (Continued) b.Village Invest me nt s (Continued) The Village limit s it s exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturit y,by pr imarily invest ing in U.S.agency obligat io ns rated AAA by Moody’s ratings.Illino is Funds and IMET are rated AAA by Standard and Poor’s. Custodial credit risk for invest me nt s is t he risk that, in the event of the failure of the counterparty to the investment, the Village will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Village’s invest me nt policy requires all securit y t ransact io ns that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying invest me nt s held by a third party acting as the Village’s agent separate from where the investment was purchased or by the trust department of the bank where purchased, in the Village’s name. Illinois Funds and IMET are not subject to custodial credit risk. As of April 30, 2010, the Village had $337 of uninsured/unco llateralized deposits. Concentration of credit risk -The Village’s investment policy requires diversificat io n of the portfolio, but does not specify maximum amounts that can be invested in any one invest me nt vehicle, maturity, issuer or class of securit ies. The Village’s invest me nt policy does not specifically prohibit the use of or the investment in derivat ives. c.Police Pensio n Fund’s Deposits with Financial Institut io ns Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure, the Police Pensio n Fund’s deposits may not be returned to them. The Police Pension Fund’s invest me nt policies do not require pledging of collateral for all bank balances in excess of federal deposit ory insurance, since flow- through FDIC insurance is available for the Police Pensio n Fund’s deposits with financial inst it utions. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -27 - 2.DEPOSITS AND INVESTMENTS (Continued) d.Police Pensio n Fund Invest me nt s The fo llo wing table presents the invest me nts and maturit ie s of the Police Pensio n Fund’s debt securit ie s as of April 30, 2010: Investment Maturities (in Years) Fair Greater than Value Less than 1 1-5 6-10 10 U.S. agency obligations $2,266,735 $509,185 $536,170 $-$1,221,380 U.S. Treasury obligations 9,209,221 -340,220 -8,869,001 Municipal bonds 1,261,588 -765,338 200,216 296,034 Illinois Funds 518,076 518,076 --- IMET 11,122 -11,122 -- TOTAL $13,266,742 $1,027,261 $1,652,850 $200,216 $10,386,415 In accordance with its invest me nt policy, the Police Pensio n Fund limit s it s exposure to interest rate risk by structuring the portfolio to provide liquidit y fo r operating funds and maximizing yields for funds not needed within a one-year period. The investment policy does not limit the maximum maturity length of investme nt s in the Police Pensio n Fund. The Police Pensio n Fund limit s it s exposure to credit risk, the risk that the issuer of a debt securit y w ill not pay it s par value upon maturity, by primarily invest ing in obligat io ns guaranteed by the U.S.Go vernment or securit ie s issued by agencies of the U.S.Go vernment that are explicit ly or implicit ly guaranteed by the U.S. Government. The U.S. agency obligat ions are rated by Moody’s AAA and the municipal bonds are rated between A and Aa1. Illino is Fu nds and IMET are rated AAA by Standard and Poor’s. The invest me nt policy is silent on minimum ratings required. Custodial credit risk for invest me nt s is t he risk that, in the event of the failure of the counterparty to the investment, the Police Pension Fund will not be able to recover the value of its invest me nt s that are in possessio n of an outside party. To limit its exposure, the Police Pension Fund’s invest me nt policy requires all securit y transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third party acting as the Police Pensio n Fund’s agent separate fro m w here the invest me nt was purchased in the Police Pensio n Fund’s name. Illino is Fu nds and IMET are not subject to custodial credit risk. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -28 - 2.DEPOSITS AND INVESTMENTS (Continued) d.Police Pensio n Fund Invest me nt s (Continued) Concentration of credit risk -The Police Pensio n Fund’s invest me nt policy limit s the amount of the portfolio that can be invested in any one invest me nt vehicle. With the exception of U.S. Treasury securit ies and authorized pools, no more than 60% of the Police Pensio n Fund’s total investment portfolio can be invested in a single securit y type or with a single financial inst it ution. The Police Pensio n Fund’s invest me nt policy does not specifically prohibit the use of or the invest me nt in derivat ives. 3.RECEIVABLES -TAXES Property taxes for 2009 attach as an enforceable lien on January 1, 2009 on property values assessed as of the same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy Ordinance). Tax bills are prepared by the Count y a nd issued on or about February 1, 2010 and August 1, 2010 and are payable in two installments, on or about March 1, 2010 and September 1, 2010. The County co llects such taxes and remits them periodically. The 2009 tax levy co llect io ns are intended to finance the 2011 fiscal year and are not considered available for current operations and are, therefore, shown as unearned/deferred revenue. The 2010 tax levy, which attached as an enforceable lien on property as of January 1, 2010, has not been recorded as a receivable as of April 30, 2010 as the tax has not yet been levied by the Village and will not be levied unt il D ecember 2010 and, therefore, the levy is not measurable at April 30, 2010. 4.CAPITAL ASSETS Capital asset activit y fo r the year ended April 30, 2010 was as follows: Beginning Balance Increases Decreases Ending Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $3,009,921 $1,582,087 $2,013 $4,589,995 Land right of way 16,180,188 --16,180,188 Construction in progress 415,184 165,807 149,977 431,014 Total capital assets not being depreciated 19,605,293 1,747,894 151,990 21,201,197 Capital assets being depreciated Buildings and improvements 12,232,033 --12,232,033 Vehicles, machinery and equipment 3,071,905 430,837 246,166 3,256,576 Infrastructure 89,348,309 2,783,235 1,111,832 91,019,712 Total capital assets being depreciated 104,652,247 3,214,072 1,357,998 106,508,321 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -29 - 4.CAPITAL ASSETS (Continued) Beginning Balance Increases Decreases Ending Balance GOVERNMENTAL ACTIVITIES (Continued) Less accumulated depreciation for Buildings and improvements $2,223,779 $291,343 $-$2,515,122 Vehicles, machinery and equipment 1,644,242 240,848 246,166 1,638,924 Infrastructure 56,575,583 1,716,285 1,097,325 57,194,543 Total accumulated depreciation 60,443,604 2,248,476 1,343,491 61,348,589 Total capital assets being depreciated, net 44,208,643 965,596 14,507 45,159,732 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $63,813,936 $2,713,490 $166,497 $66,360,929 BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $1,955,456 $-$-$1,955,456 Construction in progress 2,042,426 1,361,302 1,611,594 1,792,134 Total capital assets not being depreciated 3,997,882 1,361,302 1,611,594 3,747,590 Capital assets being depr eciated Buildings and improvements 8,017,830 3,269,719 12,759 11,274,790 Parking lot improvements 1,950,830 --1,950,830 Vehicles, machinery and equipment 595,397 --595,397 Water distribution system 12,232,894 500,000 80,682 12,652,212 Sanitary sewer system 3,937,345 190,532 -4,127,877 Total capital assets being depreciated 26,734,296 3,960,251 93,441 30,601,106 Less accumulated depreciation for Buildings and improvements 2,807,481 239,661 12,759 3,034,383 Parking lot improvements 720,908 26,737 -747,645 Vehicles, machinery and equipment 556,959 8,323 -565,282 Water distribution system 1,598,297 266,920 80,682 1,784,535 Sanitary sewer system 984,034 87,931 -1,071,965 Total accumulated depreciation 6,667,679 629,572 93,441 7,203,810 Total capital assets being depreciated, net 20,066,617 3,330,679 -23,397,296 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $24,064,499 $4,691,981 $1,611,594 $27,144,886 Depreciat io n expense was charged to funct io ns/programs of the primary government as fo llo ws: GOVERNMENTAL ACTIVITIES General government $158,055 Public safety 120,618 Highways and streets, including depreciation of general infrastructure assets 1,969,803 DEPRECIATION EXPENSE -GOVERNMENTAL ACTIVITIES $2,248,476 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -30 - 5.RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissio ns’injuries to emplo yees; illnesses of emplo yees; and natural disasters. Intergovernmental Personnel Benefit Cooperative (IPBC) The Village participates in the Intergovernmental Personnel Benefit Cooperative (IPBC). IPBC is a public ent it y r isk pool established by certain unit s 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 emplo yees of certain other governmental, quasi governmental and nonprofit public service ent it ies. The IPBC receives, processes and pays such claims as may co me within the benefit program o f each member.Management consists of a Board of Directors comprised of o ne appointed representative from each member. In addit io n, there are two officers,a Benefit Ad ministrator and a Treasurer. The Village does not exercise any control over the activit ies o f IPBC beyo nd it s representation on the Board of Directors. Municipal Insurance Cooperative Agency (MICA) The Village participates in the Municipal Insurance Cooperative Agency (MICA). MICA is a public entity risk pool whose members are Illino is mu nicipalit ies. MICA manages and funds first party property losses, third party liabilit y c laims, workers’co mpensat io n claims and public o fficials’liabilit y c laims o f it s members. MICA provides $2,000,000 of coverage after a $1,000 deductible. The Village’s payments to MICA are displayed on the financial statements as expenditures/expenses in appropriate funds. Management consists of a Board of Directors comprised of one appoint ed representative fro m each member. In addit io n, there are three officers, a Risk Manager and a Treasurer. The Village does not exercise any control over activities of MICA beyo nd it s representation on the Board of Directors. MICA funct io ns so le ly as an administrative agent for each member. High-Level Excess Liabilit y P ool (HELP) The Village participates in the High-Level Excess Liabilit y Pool (HELP). HELP is a public entit y r isk pool established by certain municipalit ies (the Members) in Illino is to provide excess liabilit y coverage ($10,000,000 of coverage after the $2,000,000 co verage provided by MICA). The Village’s payments to HELP are displayed on the financial statements as expenditures/expenses in appropriate funds. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -31 - 5.RISK MANAGEMENT (Continued) High-Level Excess Liabilit y P ool (HELP) (Continued) HELP was organized on April 1, 1987. The purpose of HELP is to act as a joint self- insurance pool for the purpose of seeking the preventio n or lessening of liabilit y c laims for injuries to persons or property or claims for errors and o missio ns made against the Members and other parties included within the scope of coverage of HELP. HELP is governed by a Board of Directors, which consists of one appointed representative fro m each member municipalit y.Each dir ector has an equal vote. The officers of HELP are appointed by the Board of Directors. The Board of Directors determines the general policy of HELP; makes all appropriat io ns; approves contracts; adopts resolut io ns providing for the issuance of debt by HELP; adopts bylaws, rules and regulat io ns; and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the bylaws. The Village does not exercise any control over the activit ies o f HELP beyo nd it s representation on the Board of Directors. 6.LONG-TERM DEBT a.General Obligat io n Bonds The Village issues general obligat io n bonds for the acquisit io n and construction of major capital facilit ie s. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. General obligat io n bonds current ly o utstanding are as fo llo ws: Issue Fund Debt Retired By Balances May 1 Additions Reductions Balances April 30 Current Portion General Obligation Bond Series of 2003 ($3,460,000 dated February 28, 2003; maturing December 1, 2012, payable in annual installments; interest rates from 2.25% to 3.50%) Water Fund*$1,775,000 $-$425,000 $1,350,000 $435,000 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -32 - 6.LONG-TERM DEBT (Continued) a.General Obligat io n Bonds (Continued) Issue Fund Debt Retired By Balances May 1 Additions Reductions Balances April 30 Current Portion General Obligation Bond Series of 2008 ($5,000,000 dated Au gust 1 2008; maturing December 1, 2028; payable in annual installments; interest rates from 3.25% to 4.25%) Debt Service**$5,000,000 $-$175,000 $4,825,000 $180,000 TOTAL $6,775,000 $-$600,000 $6,175,000 $615,000 The $3,460,000 in General Obligat io n Bonds, Series 2003, was authorized to advance refund the Series 1997 issue. The original issue was used for financing water system improvements. The $5,000,000 in General Obligat io n Bonds, Series 2008, was authorized to finance various capital improvement projects. *The Village abates the tax levy on this bond issue annually. The debt is recorded in and is being retired by the Water Fund. **The Village abated the tax levy on this bond issue fo r fiscal 2009 and evaluates annually if the Village is financially capable of doing so. The debt is being retired by transfers from various funds. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -33 - 6.LONG-TERM DEBT (Continued) b.Debt Service Requirements to Maturit y Annual debt service requirements to maturit y are as follows: Fiscal Year General Obligation Bonds Ending Governmental Activities Business-Type Activities April 30,Principal Interest Total Principal Interest Total 2011 $180,000 $187,463 $367,463 $435,000 $44,827 $479,827 2012 185,000 181,613 366,613 450,000 31,125 481,125 2013 190,000 175,600 365,600 465,000 16,275 481,275 2014 195,000 169,425 364,425 --- 2015 205,000 162,844 367,844 --- 2016 210,000 155,669 365,669 --- 2017 220,000 147,794 367,794 --- 2018 225,000 139,544 364,544 --- 2019 235,000 131,106 366,106 --- 2020 245,000 122,294 367,294 --- 2021 255,000 112,800 367,800 --- 2022 265,000 102,919 367,919 --- 2023 275,000 92,319 367,319 --- 2024 290,000 81,319 371,319 --- 2025 300,000 69,356 369,356 --- 2026 315,000 56,981 371,981 --- 2027 330,000 43,987 373,987 --- 2028 345,000 29,962 374,962 --- 2029 360,000 15,300 375,300 --- TOTAL $4,825,000 $2,178,295 $7,003,295 $1,350,000 $92,227 $1,442,227 c.Changes in Long-Term Liabilit ies During the fiscal year, the fo llo wing changes occurred in lo ng-term liabilit ies: Fund Debt Retired By Balances May 1 Additions Reductions Balances April 30 Current Portion GOVERNMENTAL ACTIVITIES General obligation bonds Debt Service $5,000,000 $-$175,000 $4,825,000 $180,000 Compensated absences (Governmental)General 1,371,966 257,543 137,196 1,492,313 161,937 Compensated absences (Internal Service)Garage 24,714 3,822 2,471 26,065 2,606 Other postemployment benefit General 169,700 130,186 -299,886 - TOTAL GOVERNMENTAL ACTIVITIES $6,566,380 $391,551 $314,667 $6,643,264 $344,543 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -34 - 6.LONG-TERM DEBT (Continued) c.Changes in Long-Term Liabilit ies (Continued) Fund Debt Retired By Balances May 1 Additions Reductions Balances April 30 Current Portion BUSINESS-TYPE ACTIVITIES General obligation bonds Water Water $1,775,000 $-$425,000 $1,350,000 $435,000 Compensated absences (Enterprise) Water/Sewer/ Parking 268,879 1,392 49,368 220,903 22,090 Other postemployment benefit Water/Sewer 15,400 17,991 -33,391 - TOTAL BUSINESS-TYPE ACTIVITIES $2,059,279 $19,383 $474,368 $1,604,294 $457,090 d.Legal Debt Margin The Village is a ho me rule municipalit y. Art ic le VII, Section 6(k) of the 1970 Illino is Constitut io n governs co mputation of the legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by ho me rule municipalit ies, payable fro m ad valorem property tax receipts, only in excess o f t he fo llo wing percentages of the assessed value of its taxable property...(2) if its populat io n is mo re than 25,000 and less than 500,000 an aggregate of one percent: ...indebtedness which is outstanding on the effect ive date (July 1, 1971) of this const it utio n or which is thereafter approved by referendum... shall not be included in the foregoing percentage amounts.” To date, the General Assembly has set no limit s fo r home rule municipalit ies. The Village qualifies as a Home Rule Unit under Section 6(a) of Article VII of the 1970 Constitution of Illino is and, under the powers granted by this sect io n, can exercise any power and perform any funct io n pertaining to its government and affairs that is not prohibited by the Illinois Co mp iled Statutes. e.Noncommit ment Debt -Industrial Development Revenue Bonds The issuance of Industrial Development Revenue Bonds (IDRBs) by t he Village is to finance in who le o r in part the cost of the acquisit ion, purchase, construction, reconstruction, improvement, equipping, betterment or extension of any econo mic development project in order to encourage economic development within or near the Village. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -35 - 6.LONG-TERM DEBT (Continued) e.Noncommit ment Debt -Industrial Development Revenue Bonds (Continued) IDRBs are not a debt of the Village. The ent it y using the bond proceeds to finance a construction or improvement project is liable for the bonds. Since the Village does not act as an agent for IDRBs, the transactions relating to the bonds and property do not appear in the Village’s financial statements. The Village has authorized the issuance o f t he fo llowing such bonds: Date Issued Type of Bond Original Amount Debtor 4/16/84 Industrial Revenue $1,000,000 Teradyne, Inc. 5/18/06 Industrial Revenue 27,515,000 Chicagoland Jewish High School As of April 30, 2010, there were two IDRBs outstanding. The aggregate principal amount payable for the series which could be determined was $27,515,000. The aggregate principal payable for the other series of IDRBs could not be determined; however, it s original issue amount was $1,000,000. The Village has been notified that the IDRB for the Chicago la nd Jewel High School is in default. 7.INTERFUND ASSETS/LIABILITIES Interfund Transfers Transfers From Transfers To Amount General Infrastructure Replacement $250,000 Nonmajor Governmental Infrastructure Replacement 673,389 TOTAL $923,389 The purpose of significant transfers to/from other funds is as follo ws: ·$250,000 transferred from the General Fund to the Infrastructure Replacement Fund to provide funding for budgeted projects.The amount will not be repaid. ·$673,389 transferred from the Nonmajor Governmental Funds to the Infrastructure Replacement Fund to provide addit ional fu nding needed to complete budgeted capital projects. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -36 - 8.COMMITMENTS High-Level Excess Liabilit y P ool (HELP) The Village has committed to purchase excess liability insurance from HELP, a jo int venture of Illino is municipalit ie s. These amounts have been calculated using the Village’s current allocat io n percentage of 3.69%of premium expense. In future years, this allocat io n percentage will be subject to change because HELP’s agreement provides that the members will be assessed each year based upon a formula that specifies the follo wing four criteria for allocat ing premium costs: Miles of streets Full-time equivalent emplo yees Number of licensed vehicles Operating revenues The Village has passed a reso lut io n authorizing the extensio n of HELP for ten years beginning May 1, 2008. 9.CONTINGENT LIABILITIES a.Litigat io n The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not present ly d eterminable, in the opinion of the Village’s attorney, the resolut io n of these matters will not have a material adverse effect on the financial condition of the Village. b.Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may co nstitute a liabilit y of the applicable funds. The amount, if any, o f expenditures that may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. c.High-Level Excess Liabilit y P ool (HELP) The Village’s agreement with HELP provides that each member is liable for its proportionate share of any costs arising fro m defaults in payment obligations by other members. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -37 - 9.CONTINGENT LIABILITIES (Continued) d.Solid Waste Agency o f Lake Count y (SWALCO) The Village’s contract with SWALCO provides that each member is liable for its proportionate share of any costs arising fro m defaults in payment obligations by other members. 10.JOINT VENTURES Solid Waste Agency o f Lake Count y (SWALCO) Descript io n of Jo int Venture The Village is a member of SWALCO, which consists of 35 mu nicipalit ies. SWALCO is a mu nicipal corporation and public body po lit ic and corporate established pursuant to the Const it ut io n of the State of Illino is and the Intergovernmental Cooperation Act of the State of Illino is, as amended (the Act). SWALCO is empowered under the Act to plan, construct, finance, operate and maintain a so lid 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 valuat io n of the municipalit ies. The members form a contiguous geographic service area, which is located in Lake County. Under the agency agreement, addit io nal members may jo in S WALCO upon the approval of each member. SWALCO is governed by a Board of Directors, which consists of one appointed representative fro m each member municipalit y.Each Director has an equal vote. The officers of SWALCO are appointed by the Board of Directors. The Board of Directors determines the general po licy o f S WALCO; makes all appropriations; approves contracts; adopts resolut io ns providing for the issuance of bonds or notes by SWALCO; adopts bylaws, rules and regulat io ns; and exercises such powers and performs such duties as may be prescribed in the agency agreement or the bylaws. SWALCO is an oversight advisory board providing long range planning services to member municipalit ies. The Village is a participant in SWALCO, but no agreement has been reached as to services to be provided. Complete financial statements can be obtained from the Solid Waste Agency o f Lake County, 1300 N. Skokie Highway, Suite 103, Gurnee, Illinois 60031. The Village does not have an equity int erest in SWALCO at April 30, 2010. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -38 - 11.OTHER POSTEMPLOYMENT BENEFITS a.Plan Descript io n In addit io n to providing the pensio n benefit s described, the Village provides post emp lo yment healt h care benefits (OPEB) for retired emplo yees through a single- employer defined benefit plan. The benefits, benefit levels, employee contribut io ns and emplo yer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. The plan is not accounted fo r as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. The activit y o f t he plan is reported in t he Village’s governmental and business-type activit ies. b.Benefit s Provided The Village provides pre and post Medicare postretirement health insurance to retirees, their spouses and dependents (enrolled at time of emplo yee’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 mo nt hly health insurance premiums for the retirees up to a maximum of $50.The retiree pays the remainder of the blended premium. Upon a retiree beco ming eligible fo r Medicare, the amount payable under the Village’s healt h plan will be reduced by the amount payable under Medicare fo r those expenses that are covered under both. c.Membership At April 30, 2010, membership consisted of: Retirees and beneficiaries current ly receiving benefits 30 Terminated employees ent it led to benefit s but not yet receiving them - Act ive emplo yees 107 TOTAL 137 Participating emplo yers 1 d.Funding Policy The Village is not required to and currently does not advance fund the cost of benefits that will beco me due and payable in the future. Active employees do not contribute to the plan until retirement. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -39 - 11.OTHER POSTEMPLOYMENT BENEFITS (Continued) e.Annual OPEB Costs and Net OPEB Obligat io n The Village first had an actuarial valuat io n performed for the plan as of May 1, 2007 to determine the funded status of the plan as of that date as well as the employer’s annual required contribut io n (ARC) for the fiscal year ended April 30, 2008. The Village’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the last three years was as fo llo ws: Fiscal Year Ended Annual OPEB Cost Employer Contribut io ns Percentage of Annual OPEB Cost Contributed Net OPEB Obligat io n 2008 $193,800 $101,600 52.4%$92,200 2009 202,300 109,400 54.1%185,100 2010 316,377 168,200 53.2%333,277 The net OPEB obligat io n as of April 30, 2010, was calculated as fo llo ws: Annual required cont ribut io n $315,350 Interest on net OPEB obligation 7,404 Ad just me nt to annual required contribution (6,377) Annual OPEB cost 316,377 Contribut io ns made 168,200 Increase in net OPEB obligat io n 148,177 Net OPEB obligat io n,beginning of ye ar 185,100 NET OPEB OBLIGATION,END OF YEAR $333,277 Funded Status and Funding Progress -The funded status of the plan as of April 30, 2010, was as fo llo ws: Actuarial accrued liabilit y (AAL)$4,255,265 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL)4,255,265 Funded ratio (actuarial value of plan assets/AAL)0% Covered payroll (act ive plan members)$8,121,599 UAAL as a percentage of covered payro ll 52.4% VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -40 - 11.OTHER POSTEMPLOYMENT BENEFITS (Continued) e.Annual OPEB Costs and Net OPEB Obligat io n (Continued) Actuarial valuat io ns of an ongoing plan invo lve estimates of the value of reported amounts and assumptions about the probabilit y o f o ccurrence of events far into the future. Examples include assumpt io ns about future emplo yment, mortalit y a nd the healt hcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisio n as actual results are compared with past expectations and new est imates are made about the future. The schedule of funding progress, presented as required supplementary informat io n fo llo wing the notes to financial statements, presents mult i-year trend informat io n t hat shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilit ies for benefits. Actuarial methods and assumpt io ns -project io ns of benefits for financial reporting purposes are based on the substant ive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuat io n and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term vo lat ilit y in actuarial accrued liabilit ie s and the actuarial value of assets, consistent with the long-term perspective of the calculat io ns. In the May 1, 2009, actuarial valuation, the entry-age normal actuarial cost method was used. The actuarial assumpt io ns included 4.0%investment rate of return and an init ial healthcare cost trend rate of 9.0% with an ultimate healt hcare inflat io n rate of 4.5%. Both rates include a 3.0% inflat io n assumptio n and 4.0% wage inflat io n assumpt io n. The actuarial value of assets was not determined as the Village has not advance funded its obligat io n. The plan’s unfunded actuarial accrued liabilit y is being amortized as a level percentage of projected payroll o n an open basis. The remaining amortizat io n period at May 1, 2009, was 30 years, except for Water Fund employees which was 18 years. 12.EMPLOYEE RETIREMENT SYSTEMS a.Plan Descript io ns and Provisio ns Illino is Municipal Retirement Fund The Village contributes to the Illinois Municipal Retirement Fund (IMRF), a defined benefit agent mult iple-employer public emplo yee retirement system that acts as a commo n invest me nt and administrative agent for local governments and school districts in Illino is (other than those covered by the Police Pension Plan). VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -41 - 12.EMPLOYEE RETIREMENT SYSTEMS (Continued) a.Plan Descript io ns and Provisio ns (Cont inued) Illino is Municipal Retirement Fund (Continued) All emplo yees hired in positions that meet or exceed the prescribed annual hourly standard must be enro lled in IMRF as participating members. Pension benefits vest after eight years of service. Participat ing members who retire at or after age 60 with eight years of service are ent it led to an annual ret ir ement benefit, payable monthly fo r life, in an amount equal to 1 2/3%of their final rate (average of the highest 48 consecut ive months’earnings during the last 10 years) of earnings for each year of credited service up to 15 years and 2%fo r each year thereafter. IMRF also provides death and disabilit y be nefits. The Illino is Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General Assembly. Participating members are required to contribute 4.5%of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund the coverage of its own emplo yees in the system, using the actuarial basis specified by state statute (entry-age normal). The employer contribut io n fo r the calendar year ended December 31, 2009 was 11.66%of covered payroll. IMRF issues a separate financial report which may be obtained by writ ing them at IMRF,2211 York Road, Suite 500, Oak Brook, Illino is 60523. This report contains informat io n fo r IMRF as a who le, but not by individual emplo yer. Police Pensio n Plan Police sworn personnel are covered by the Police Pension P lan, which is a defined benefit single-employer pensio n plan. Although this is a single-employer pensio n plan, the defined benefits and employee and emplo yer contribut io ns levels are governed by Illino is Co mp iled Statutes (Chapter 40 -Article 5/3) and can be amended only by the Illino is legislature. The Village accounts for the Police Pensio n Pla n as a pensio n t rust fund. At April 30, 2010, the Police Pension Plan membership consisted of: Retirees and beneficiaries current ly receiving benefits 27 Terminated emp lo yees ent it led to benefits but not yet receiving them 4 Current emp lo yees Vested 27 Nonvested 11 TOTAL 69 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -42 - 12.EMPLOYEE RETIREMENT SYSTEMS (Continued) a.Plan Descript io ns and Provisio ns (Cont inued) Police Pensio n P la n (Continued) The fo llo wing is a summary o f t he Police Pensio n P la n as provided for in I llino is Compiled Statutes. The Police Pensio n P la n provides retirement benefits as well as death and disability benefits. Emplo yees attaining the age of 50 or more with 20 or more years of creditable service are ent it led to receive an annual retirement benefit of one-half o f the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater. The pensio n shall be increased by 2.5% of such salary fo r each addit io nal year of service over 20 years up to 30 years, to a maximum of 75%of such salary. Emplo yees with at least eig ht years but less than 20 years of credited service may ret ir e at or after age 60 and receive a reduced benefit. The mo nt hly pension of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, fo llo wing the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3%of the original pension. Covered emplo yees are required to contribute 9.91%of their base salary to the Police Pensio n P la n. If an emplo yee leaves covered emplo yment with less than 20 years o f service, accumulated emplo yee contribut ions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the Police Pensio n P lan as actuarially determined by an enrolled actuary. The Village’s contribut io ns must accumulate to the point where the past service cost for the Police Pension P lan is fully funded by the year 2033.The employer contribut io n fo r the fiscal year ended April 30, 2010 was 38.71% of covered payroll. The Police Pensio n Plan issues a separate financial report which may be obtained by writing them at the Village of Deerfield Village Hall. b.Summary of Significant Accounting Policies and Plan Asset Matters Basis of Account ing -The financial statements are prepared using the accrual basis of accounting. Employee and emplo yer contributions are recognized as revenues in the period in which employee services are performed. Method Used to Value Invest me nt s -Invest me nt s are reported at fair value. Invest me nt inco me is recognized as earned. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -43 - 12.EMPLOYEE RETIREMENT SYSTEMS (Continued) b.Summary of Significant Accounting Policies and Plan Asset Matters (Continued) Gains and losses on sales and exchanges of fixed inco me securit ie s are recognized on the transact io n date. Significant Invest me nt s -Invest me nt s (other than U.S. Government and U.S. Government guaranteed obligatio ns) in a Vanguard Mutual Fund represent ing 45% of net assets available for benefit s. Related Party Transact io ns -There were no securities of the employer or any other related parties included in plan assets, including any lo ans. Ad ministrative costs for the Police Pensio n P la n are financed primarily through investment earnings. c.Annual Pensio n Cost Illinois Municipal Retir ement Police Pension Actuarial valuation date December 31, 2007 April 30, 2009 Actuarial cost met hod Entry-age Nor ma l Entry-age Nor ma l Level Dollar Asset valuation met hod 5 Year Smoothed Market Actuarial Value Amortization method Level Percentage of Payroll Level Dollar Amortization per iod 23 Years, Closed 24 Years, Closed VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -44 - 12.EMPLOYEE RETIREMENT SYSTEMS (Continued) c.Annual Pensio n Cost (Continued) Illinois Municipal Retir ement Police Pension Significant actuarial assumptions a)Rate of return on 7.50%7.75% present and future assets Compounded Compounded Annually Annually b)Projected salary incr ease -4.00%3.50% attributable to inflation Compounded Compounded Annually Annually c)Additional projected salary .40%to 10.00%5.50% increases -seniority/mer it d)Postretirement benefit increases 3.00%3.00% Employer annual pensio n cost (APC) actual contribut io ns and the net pensio n obligat io n (NPO) are as follows. The NPO is the cumulat ive difference between the APC and the contributions actually made. For Fiscal Year Illinois Municipal Retirement Police Pension Annual pension cost (APC)2008 $699,397 $710,955 2009 778,342 857,345 2010 848,052 1,217,237 Actual contribution 2008 $699,397 $698,335 2009 778,342 843,209 2010 848,052*1,202,006 Percentage of APC contributed 2008 100.00%98.22% 2009 100.00%98.35% 2010 100.00%98.75% NPO (asset)2008 $-$(996,454) 2009 -(982,318) 2010 -(967,087) *Of this amount, $672,338 (79.28%) was contributed by the Village and $175,714 (20.72%) was contributed by the Library. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -45 - 12.EMPLOYEE RETIREMENT SYSTEMS (Continued) c.Annual Pensio n Cost (Continued) The Village’s annual pensio n cost and net pensio n obligat io n (asset) for the Police Pensio n Plan fo r April 30, 2010 are as fo llo ws: Annual required contribution $1,202,006 Interest on net pension obligation (asset)(76,130) Adjustment to annual required contribution 91,361 Annual pension cost 1,217,237 Contributions made 1,202,006 Increase in net pension obligation 15,231 Net pension obligation (asset),beginning of year (982,318) NET PENSION OBLIGATION (ASSET),END OF YEAR $(967,087) Funded Status and Funding Progress -The funded status of t he plans as of April 30, 2009 (most recent data available)were as fo llo ws. The actuarial assumpt io ns used to determine the funded status of the Police Pension P la n are the same actuarial assumpt io ns used to determine the emplo yer APC of the plan as disclosed in Note 12d. Illinois Municipal Retirement* Police Pension Actuarial accrued liability (AAL)$16,821,834 $37,524,305 Actuarial value of plan assets 9,107,659 26,630,887 Unfunded actuarial accrued liability (UAAL)7,713,725 10,893,418 Funded ratio (actuarial value of plan assets/AAL)54.14%70.97% Covered payroll (active plan members)$7,006,916 $3,104,786 UAAL as a percentage of covered payroll 110.09%350.86% *Includes both the Village and the Library. The actuarial value of plan assets for the Police Pension P lan above is as of April 30, 2009. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -46 - 13.CONTRACTUAL COMMITMENTS Economic Incent ive Agreements The Village has entered into economic incent ive agreements with a commercial entit y whereby the Village has agreed to reimburse the commercial entit y through sales tax rebates. The amount of the rebates is limited to specified time period and are payable over 15 years so le ly fro m sales taxes generated by the commercial ent it y. The rebates are to be paid monthly wit h t he agreement expiring 15 years after commencement. At April 30, 2010, the Village has accrued an estimated rebate liabilit y o f $245,155 fo r amounts collected by the state through April 30, 2010 but not yet paid to the commercial entit y. To date, the Village has paid $5,027,333 to the commercial entit y.The agreement has no stated maximum. 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY a.Summary Financial Informat io n The fo llo wing is summary fund financial informat ion for the Deerfield Public Library (the Library) for the fiscal year ended April 30, 2010: General Adjustments Statement of Net Assets ASSETS Cash and investments $3,969,100 $-$3,969,100 Receivables Property taxes 2,697,775 -2,697,775 Inter est 15,828 -15,828 Prepaid expenses 36,413 -36,413 Capital assets, net of accumulated depreciation -418,894 418,894 Total assets 6,719,116 418,894 7,138,010 LIABILITIES Accounts payable 27,571 -27,571 Accrued payroll 59,520 -59,520 Deferred property taxes 2,903,250 -2,903,250 Due to primary gover nment 1,179 -1,179 Compensated absences payable/OPEB -140,974 140,974 Total liabilities 2,991,520 140,974 3,132,494 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -47 - 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY (Continued) a.Summary Financial Informat io n (Continued) General Adjustments Statement of Net Assets FUND BALANCES/NET ASSETS Fund balances -unr es er ved Designated for scholarship $16,731 $(16,731)$- Undesignated 3,710,865 (3,710,865)- Net assets Invested in capital assets, net of related debt -418,894 418,894 Unr estricted -3,586,622 3,586,622 TOTAL FUND BALANCES/ NET ASSETS $3,727,596 $277,920 $4,005,516 General Adjustments Statement of Act ivities REVENUES Property taxes $2,730,494 $-$2,730,494 Replacement taxes 78,814 -78,814 Intergovernmental 30,609 -30,609 Charges for services 84,396 -84,396 Investment income 29,469 -29,470 Miscellaneous 174,458 -174,457 Total revenues 3,128,240 -3,128,240 EXPENDITURES/EXPENSES Culture and recreation 3,014,251 (29,993)2,984,258 Total expenditures/expenses 3,014,251 (29,993)2,984,258 NET CHANGE IN FUND BALANCE/ NET ASSETS 113,989 29,993 143,982 FUND BALANCE/NET ASSETS, MAY 1 3,613,607 247,927 3,861,534 FUND BALANCES/NET ASSETS, APRIL 30 $3,727,596 $277,920 $4,005,516 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -48 - 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY (Continued) b.Deposits and Invest me nt s 1)Deposits Permitted Deposits and Invest me nt s -The Illino is Compiled Statutes and the Library’s invest me nt policy authorize the Library to make deposits/invest in insured co mmercial banks, savings and loan inst it ut io ns, obligat io ns o f t he U.S. Treasury and U.S. agencies, insured credit unio n shares, money market mutual fu nds wit h portfolio s of securit ies issued or guaranteed by the United States or agreements to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classificat io ns by at least two standard rating services and Illinois Funds. Illino is Funds is an invest me nt pool managed by the State of Illino is, Office of the Treasurer, which allows governments within the state to pool their funds fo r invest me nt purposes. Illino is Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Invest me nt Company Act of 1940. Investments in Illinois Funds are valued at Illino is Fund’s share price, which is the price the investment could be sold for. It is the policy o f t he Library to invest it s fu nds in a manner which will provide the highest invest me nt return with the maximum securit y while meet ing the daily cash flow demands of the Library and conforming to all state and local statutes governing the invest me nt of public funds, using the “prudent person” standard for managing the overall portfolio. The primary objective of the policy is safet y (preservat io n of capital and protectio n of invest me nt principal), liquidit y a nd yie ld. Custodial credit risk for deposits with financial institutio ns is the risk that in the event of a banks failure, the Library’s deposits may not be returned to it. The Library’s invest me nt policy requires pledging of collateral held by the Library’s agent wit h a fair value o f 100% of all bank balances in excess of federal depository insurance. At April 30, 2010, all o f t he Library’s bank balances were insured or collateralized. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -49 - 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY (Continued) b.Deposits and Invest me nt s (Continued) 2)Invest me nt s As o f Apr il 30, 2010, the Library had the following investments and maturit ies of debt securities: Investment Maturities (in Years) Fair Value Less than 1 1-5 6-10 Greater than 10 Illinois Funds $2,148,989 $2,148,989 $-$-$- TOTAL $2,148,989 $2,148,989 $-$-$- In accordance with the Library’s invest me nt policy, the Library limits its exposure to interest rate risk by structuring the portfolio to provide liquidit y fo r operating funds and maximizing yields. The investment policy limit s the maximum maturit y le ngth of invest me nt s to one year fro m date of purchase, unless matched to a specific cash flow. Reserve funds may be invested in securit ie s exceeding one year if the maturit y o f such funds are made to coincide as nearly as practicable with the expected use of the funds. The Library limit s it s exposure to credit risk, the risk that the issuer of a debt securit y w ill not pay it s par value upon maturit y,by pr imarily investing in Illino is Funds, which is rated AAA by Standard and Poor’s. Custodial credit risk for invest me nt s is t he risk that, in the event of the failure of the counterparty to the invest me nt , the Library will not be able to recover the value of its invest me nt s that are in possessio n of an outside party. Illino is Funds is not subject to custodial credit risk. c.Receivables -Taxes Property taxes for the 2009 le vy year attach as an enforceable lien on January 1, 2009, on property values assessed as of the same date. Taxes are levied by December 31 of the subsequent fiscal year end by passage o f a Tax Levy Ordinance. Tax bills are prepared by the Count y a nd issued on or about February 1, 2010 and August 1, 2010, and are payable in two installments, on or about March 1, 2010 and September 1, 2010. The County co llects such taxes and remit s them periodically. The 2010 tax levy co llect io ns are intended to finance the 2011 fiscal year and are not considered available for current operations and are, therefore, shown as unearned revenue. The 2010 tax levy has not been recorded as a receivable at April 30, 2010, as the tax attached as a lien on property as of January 1, 2010;however, the tax will not be levied until December 2010 and, accordingly, is not measurable at April 30, 2010. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -50 - 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY (Continued) d.Capital Assets Capital assets, which include land, buildings and equipment,are reported in the governmental act ivit ie s in the government-wide financial statements. Capital assets are defined by the Library as assets with an init ial, individual cost in excess of $25,000 and an est imated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Buildings and equipment are depreciated using the straight-line method over the following est imated useful lives: Years Buildings 45 Equipment 7 The fo llo wing is a summary o f c hanges in capital assets during the fiscal year: Beginning Balance Increases Decreases Ending Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $65,493 $-$-$65,493 Construction in progress 133,680 93,070 226,750 - Total capital assets not being depreciated 199,173 93,070 226,750 65,493 Capital assets being depreciated Buildings 1,050,000 --1,050,000 Equipment 27,137 226,750 -253,887 Total capital assets being depr eciated 1,077,137 226,750 -1,303,887 Less accumulated depreciation for Buildings 909,999 23,333 -933,332 Equipment 1,939 15,215 -17,154 Total accumulated depreciation 911,938 38,548 -950,486 Total capital assets being depreciated, net 165,199 188,202 -353,401 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $364,372 $281,272 $226,750 $418,894 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -51 - 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY (Continued) e.Changes in Long-Term Liabilit ies The fo llo wing is a summary o f c hanges in lo ng-term liabilit ies for the year ended April 30, 2010: Balance, May 1 Additions Retirements Balance, April 30 Current Portion Compensated absences $89,545 $61,672 $52,202 $99,015 $60,100 Other postemployment benefit 26,900 15,059 -41,959 - TOTAL LONG-TERM LIABILITIES $116,445 $76,731 $52,202 $140,974 $60,100 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual REVENUES Taxes 13,640,890$ 13,640,890$ 12,190,476$ Licenses and permits 1,409,000 1,409,000 1,366,472 Intergovernmental 39,000 39,000 49,229 Charges for services 256,500 256,500 313,546 Fines and forfeits 238,500 238,500 227,686 Investment income 350,000 350,000 117,172 Miscellaneous 442,000 442,000 821,396 Total revenues 16,375,890 16,375,890 15,085,977 EXPENDITURES General government 5,514,517 6,014,517 5,057,271 Public safety 8,640,364 8,892,364 7,992,953 Highways and streets 2,498,235 2,628,235 2,422,045 Total expenditures 16,653,116 17,535,116 15,472,269 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (277,226) (1,159,226) (386,292) OTHER FINANCING SOURCES (USES) Transfers (out)(2,100,000) (2,100,000) (250,000) Sale of capital assets 7,500 7,500 94,690 Total other financing sources (uses)(2,092,500) (2,092,500) (155,310) NET CHANGE IN FUND BALANCE (2,369,726)$ (3,251,726)$ (541,602) FUND BALANCE, MAY 1 16,608,953 FUND BALANCE, APRIL 30 16,067,351$ (See independent auditor's report.) - 52 - (6) Un funded (Overfunded) Actuarial (4)Accrued (2)Un funded Liability (1)Actuarial (Overfunded)as a Actuarial Actuarial Accrued (3)Actuarial (5)Percentage Valuation Value of Liability Percentage Accrued Annual of Covered Date Plan (AAL)Funded Liability Covered Payroll December 31,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) 2004 12,061,017$ 14,761,287$ 81.71%2,700,270$ 5,630,533$ 47.96% 2005 12,458,723 15,094,476 82.54%2,635,753 5,751,893 45.82% 2006 10,898,308 13,983,806 77.94%3,085,498 5,868,691 52.58% 2007 10,465,905 13,938,222 75.09%3,472,317 6,340,864 54.76% 2008 8,049,486 15,152,271 53.12%7,102,785 6,738,890 105.40% 2009 9,107,659 16,821,384 54.14%7,713,725 7,006,916 110.09% Note: Amounts above include both the Village of Deerfield and Deerfield Public Library. April 30, 2010 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF FUNDING PROGRESS ILLINOIS MUNICIPAL RETIREMENT FUND (See independent auditor's report.) - 53 - (6) Unfunded (Overfunded) Actuarial (4)Accrued (2)Unfunded Liability (1)Actuarial (Overfunded)as a Actuarial Actuarial Accrued (3)Actuarial (5)Percentage Valuation Value of Liability Percentage Accrued Annual of Covered Date Plan (AAL)Funded Liability Covered Payroll April 30,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) 2004 22,248,709$ 26,895,164$ 82.72%4,646,455$ 2,765,899$ 167.99% 2005 23,569,208 27,807,134 84.76%4,237,926 2,864,889 147.93% 2006 24,863,930 29,916,404 83.11%5,052,474 3,038,118 166.30% 2007 26,434,408 32,230,820 82.02%5,796,412 3,124,688 185.50% 2008 27,864,349 34,968,811 79.68%7,104,462 3,192,147 222.56% 2009 26,630,887 37,524,305 70.97%10,893,418 3,104,786 350.86% The actuarial value of plan assets for the Police Pension Plan above is as of April 30, 2009. As disclosed in Note 12e, the Police Pension Fund experienced significant declines in the fair value (actuarial value) of assets for the year ended April 30, 2010, which are not reflected in these funded ratios. April 30, 2010 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND (See independent auditor's report.) - 54 - (6) Un funded (Overfunded) Actuarial (4)Accrued (2)Un funded Liability (1)Actuarial (Overfunded)as a Actuarial Actuarial Accrued (3)Actuarial (5)Percentage Valuation Value of Liability Percentage Accrued Annual of Covered Date Plan (AAL)Funded Liability Covered Payroll April 30,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) 2007 -$ 2,534,700$ 0.00%2,534,700$ 7,937,200$ 31.93% 2008 - 2,642,100 0.00%2,642,100 8,254,700 32.01% 2009 - 4,255,265 0.00%4,255,265 8,121,599 52.39% Information for prior years is not available as the Village's first actuarial valuation was performed May 1, 2007. April 30, 2010 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFIT PLAN (See independent auditor's report.) - 55 - Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC)Contributed 2005 528,407$ 528,407$ 100.00% 2006 595,737 595,737 100.00% 2007 682,093 682,093 100.00% 2008 725,222 725,222 100.00% 2009 783,935 783,935 100.00% 2010 848,052 848,052 100.00% Note: Amounts above include both the Village of Deerfield and Deerfield Public Library. April 30, 2010 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND (See independent auditor's report.) - 56 - Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC)Contributed 2005 614,326$ 614,326$ 100.00% 2006 575,395 575,395 100.00% 2007 654,414 654,414 100.00% 2008 698,335 698,335 100.00% 2009 843,209 843,209 100.00% 2010 1,202,006 1,202,006 100.00% April 30, 2010 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND (See independent auditor's report.) - 57 - Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC)Contributed 2008 101,600$ 193,800$ 52.43% 2009 109,400 202,300 54.08% 2010 168,200 315,350 53.34% Information for prior years is not available as the Village's first actuarial valuation was performed May 1, 2007. April 30, 2010 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS OTHER POSTEMPLOYMENT BENEFIT PLAN (See independent auditor's report.) - 58 - -59 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION April 30, 2010 BUDGETS Budgets are adopted on a basis consistent with GAAP. Annual appropriated budgets are adopted (at the fund level) for the General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service and Pensio n Trust Funds. The annual appropriated budget is legally enacted and provides for a legal level o f control at the department level, or, where no departmental segregation o f a fu nd exists, the fu nd level. All annual appropriat io ns lapse at fiscal year end. Encumbrances represent commit ments related to unperformed contracts for goods or services. Encumbrance account ing-under which purchase orders, contracts and other commit ments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation-is utilized in the governmental funds. Material encumbrances outstanding at year end, if any, are reported as reservations of fund balances and do not constitute expenditures or liabilit ies because the commit ments will be honored during the subsequent year. All departments of the Village submit requests for appropriation to the Village’s manager so that a budget may be prepared. The budget is prepared by fund and includes informat io n on the past year, current year est imates and requested appropriations for the next fiscal year. The proposed budget is presented to the governing body for review. The governing body hold s public hearings and can add to, subtract from or change appropriat io ns;but cannot change the fo rm of the budget. Management cannot amend the total budget for individual funds wit hout seeking the approval of the governing body. Expenditures cannot legally exceed budgeted appropriations at the fund level, and the Board must approve any over expenditures of appropriat ion or transfers of appropriated amounts. During the year, supplementary appropriat io ns were necessary for the General and Tax Increment Financing District #2 Funds. VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual TAXES Property 2,256,250$ 2,256,250$ 2,006,159$ Replacement 75,000 75,000 81,182 Sales 4,500,000 4,500,000 4,153,781 Home rule sales 2,700,000 2,700,000 2,525,183 Local use 259,440 259,440 219,053 Income 1,665,200 1,665,200 1,462,986 Hotel/motel 1,850,000 1,850,000 1,415,604 Telecommunication 335,000 335,000 326,528 Total taxes 13,640,890 13,640,890 12,190,476 LICENSES AND PERMITS Beer/liquor licenses 68,000 68,000 60,175 Food licenses 8,000 8,000 4,653 Other business licenses 28,000 28,000 5,435 Building permits 900,000 900,000 890,017 Contractor's licenses 8,000 8,000 7,500 Nonbusiness licenses and permits 53,000 53,000 63,329 Vehicle licenses 344,000 344,000 335,363 Total licenses and permits 1,409,000 1,409,000 1,366,472 INTERGOVERNMENTAL State grant 6,000 6,000 1,100 State highway maintenance 33,000 33,000 48,129 Total intergovernmental 39,000 39,000 49,229 CHARGES FOR SERVICES Special police services 162,500 162,500 179,471 Dispatching services 84,000 84,000 91,236 50/50 tree planting 8,000 8,000 42,839 Engineering services 2,000 2,000 - Total charges for services 256,500 256,500 313,546 FINES AND FORFEITS 238,500 238,500 227,686 INVESTMENT INCOME 350,000 350,000 117,172 (This schedule is continued on the following page.) - 60 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual MISCELLANEOUS False alarms 30,000$ 30,000$ 27,000$ Sale of materials 2,000 2,000 - Rentals 50,000 50,000 182,163 Miscellaneous 100,000 100,000 298,668 Franchise fees 260,000 260,000 313,565 Total miscellaneous 442,000 442,000 821,396 TOTAL REVENUES 16,375,890$ 16,375,890$ 15,085,977$ (See independent auditor's report.) - 61 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual GENERAL GOVERNMENT Finance department Personnel services 1,150,215$ 1,150,215$ 1,051,892$ Less IPBC terminal reserve dividend - - (47,497) Training and development 10,800 10,800 4,354 Contractual services 1,525,760 2,025,760 1,667,707 Commodities 23,500 23,500 8,659 Utilities 23,000 23,000 14,898 Capital outlay 50,667 50,667 49,220 Total finance department 2,783,942 3,283,942 2,749,233 Administration Personnel services 545,200 545,200 419,194 Training and development 6,500 6,500 2,221 Contractual services 445,100 445,100 408,310 Commodities 11,000 11,000 1,107 Utilities 1,500 1,500 1,145 Capital outlay 56,250 56,250 40,342 Total administration 1,065,550 1,065,550 872,319 Community development Personnel services 882,758 882,758 833,136 Training and development 8,000 8,000 6,490 Contractual services 132,500 132,500 105,845 Commodities 23,700 23,700 13,304 Utilities 9,000 9,000 6,531 Capital outlay 11,750 11,750 9,716 Total community development 1,067,708 1,067,708 975,022 Engineering Personnel services 386,660 386,660 250,133 Training and development 4,700 4,700 1,088 Contractual services 169,900 169,900 180,039 Commodities 14,000 14,000 10,937 Utilities 8,000 8,000 8,479 Capital outlay 14,057 14,057 10,021 Total engineering 597,317 597,317 460,697 Total general government 5,514,517 6,014,517 5,057,271 PUBLIC SAFETY Police department Administrative services Personnel services 815,146 835,996 787,262 Training and development 24,500 24,500 6,982 (This schedule is continued on the following pages.) - 62 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual PUBLIC SAFETY (Continued) Police department (Continued) Administrative services (Continued) Contractual services 567,200$ 567,200$ 495,367$ Commodities 53,000 53,000 29,294 Utilities 30,000 30,000 15,225 Capital outlay 157,766 157,766 154,524 Total administrative services 1,647,612 1,668,462 1,488,654 Communications Personnel services 863,300 863,300 757,411 Training and development 5,600 5,600 3,192 Contractual services 500 500 212 Capital outlay 5,000 5,000 2,385 Total communications 874,400 874,400 763,200 Investigations Personnel services 1,011,287 1,049,287 1,065,946 Training and development 6,950 6,950 1,172 Contractual services 7,000 7,000 4,814 Commodities 15,960 15,960 13,970 Capital outlay 5,000 5,000 1,437 Total investigations 1,046,197 1,084,197 1,087,339 Patrol Personnel services 4,626,830 4,819,980 4,336,329 Training and development 36,900 36,900 24,020 Contractual services 65,600 65,600 59,775 Commodities 75,000 75,000 55,479 Utilities 6,500 6,500 5,187 Capital outlay 25,200 25,200 11,488 Total patrol 4,836,030 5,029,180 4,492,278 Special detail Personnel services 236,125 236,125 161,482 Total special detail 236,125 236,125 161,482 Total public safety 8,640,364 8,892,364 7,992,953 HIGHWAYS AND STREETS Public works department Administration Personnel services 282,110 282,110 210,281 Training and development 2,100 2,100 1,107 Contractual services 147,360 147,360 168,970 (This schedule is continued on the following page.) - 63 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual HIGHWAYS AND STREETS (Continued) Public works department (Continued) Administration (Continued) Commodities 12,800$ 12,800$ 8,053$ Utilities 8,500 8,500 9,290 Capital outlay 175,872 175,872 173,973 Total administration 628,742 628,742 571,674 Maintenance Personnel services 626,500 626,500 577,060 Contractual services 128,000 128,000 94,310 Commodities 91,500 91,500 58,699 Utilities 100,000 100,000 109,675 Capital outlay 20,000 20,000 2,045 Total maintenance 966,000 966,000 841,789 Snow and ice control Personnel services 152,968 152,968 148,402 Contractual services 90,500 90,500 117,694 Commodities 244,000 374,000 348,236 Capital outlay 7,500 7,500 779 Total snow and ice control 494,968 624,968 615,111 Forestry Personnel services 41,075 41,075 2,747 Contractual services 220,000 220,000 223,721 Commodities 8,500 8,500 9,138 Capital outlay 40,000 40,000 64,215 Total forestry 309,575 309,575 299,821 Train station maintenance Personnel services 11,950 11,950 8,279 Contractual services 82,000 82,000 81,888 Commodities 4,500 4,500 3,483 Utilities 500 500 - Total train station maintenance 98,950 98,950 93,650 Total highways and streets 2,498,235 2,628,235 2,422,045 TOTAL EXPENDITURES 16,653,116$ 17,535,116$ 15,472,269$ (See independent auditor's report.) - 64 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INFRASTRUCTURE REPLACEMENT FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual REVENUES Taxes Property 1,395,000$ 1,395,000$ 1,406,275$ Sales 850,000 850,000 841,728 Intergovernmental 2,108,600 2,108,600 428,528 Investment income 12,000 12,000 - Miscellaneous 348,500 348,500 - Total revenues 4,714,100 4,714,100 2,676,531 EXPENDITURES Capital outlay Contractual services 2,053,000 2,053,000 1,924,051 Construction 7,058,000 7,058,000 2,700,923 Total expenditures 9,111,000 9,111,000 4,624,974 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (4,396,900) (4,396,900) (1,948,443) OTHER FINANCING SOURCES (USES) Transfers in 2,600,000 2,600,000 923,389 Total other financing sources (uses)2,600,000 2,600,000 923,389 NET CHANGE IN FUND BALANCE (1,796,900)$ (1,796,900)$ (1,025,054) FUND BALANCE, MAY 1 1,255,707 FUND BALANCE, APRIL 30 230,653$ (See independent auditor's report.) - 65 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TAX INCREMENTAL FINANCE DISTRICT 2 FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual REVENUES Taxes Property 5,000,000$ 5,000,000$ 5,124,436$ Investment income 45,000 45,000 34,623 Total revenues 5,045,000 5,045,000 5,159,059 EXPENDITURES Current General government Surplus distribution 4,500,000 7,414,375 7,414,375 Capital outlay Other costs 1,000 1,000 1,582,492 Total expenditures 4,501,000 7,415,375 8,996,867 NET CHANGE IN FUND BALANCE 544,000$ (2,370,375)$ (3,837,808) FUND BALANCE, MAY 1 3,837,808 FUND BALANCE, APRIL 30 -$ (See independent auditor's report.) - 66 - NONMAJOR GOVERNMENTAL FUNDS Motor Fuel Tax Fund -To account for activit y funded by the state share of tax on the use of mo tor fuels. Enhanced 911 Fund -To account for the operation of the E911 emergency response system which is funded by a per line charge on land-based and cellular phones. Bond Proceeds Fund -To account for the proceeds of the General Obligation Bonds, Series 2008. Debt Service Fund -to account for the accumulation of resources for the payment of general lo ng-term debt. VILLAGE OF DEERFIELD, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS April 30, 2010 Capital Projects Motor Enhanced Bond Debt Fuel Tax 911 Proceeds Service Total Cash and investments 443,786$ 1,039,646$ -$ 116,502$ 1,599,934$ Receivables Property taxes - - - 144,143 144,143 Accounts - 70,831 - - 70,831 Accrued interest 735 1,088 - 270 2,093 Due from other governments 39,956 - - - 39,956 TOTAL ASSETS 484,477$ 1,111,565$ -$ 260,915$ 1,856,957$ LIABILITIES Accounts payable -$ 3,055$ -$ -$ 3,055$ Deferred property taxes - - - 155,000 155,000 Total liabilities - 3,055 - 155,000 158,055 FUND BALANCES Reserved for maintenance of roadways 484,477 - - - 484,477 Reserved for public safety - 1,108,510 - - 1,108,510 Reserved for debt service - - - 105,915 105,915 Total fund balances 484,477 1,108,510 - 105,915 1,698,902 TOTAL LIABILITIES AND FUND BALANCES 484,477$ 1,111,565$ -$ 260,915$ 1,856,957$ ASSETS LIABILITIES AND FUND BALANCES Special Revenue Funds (See independent auditor's report.) - 67 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended April 30, 2010 Capital Projects Motor Enhanced Bond Debt Fuel Tax 911 Proceeds Service Total REVENUES Intergovernmental 473,426$ -$ -$ -$ 473,426$ Charges for services - 341,116 - - 341,116 Investment income 5,419 7,516 810 1,304 15,049 Total revenues 478,845 348,632 810 1,304 829,591 EXPENDITURES Current Public safety - 329,868 - - 329,868 Highways and streets 494,000 - - - 494,000 Debt service Principal retirement - - - 175,000 175,000 Interest - - - 193,150 193,150 Total expenditures 494,000 329,868 - 368,150 1,192,018 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (15,155) 18,764 810 (366,846) (362,427) OTHER FINANCING SOURCES (USES) Transfers (out)- - (673,389) - (673,389) Total other financing sources (uses)- - (673,389) - (673,389) NET CHANGE IN FUND BALANCES (15,155) 18,764 (672,579) (366,846) (1,035,816) FUND BALANCES, MAY 1 499,632 1,089,746 672,579 472,761 2,734,718 FUND BALANCES, APRIL 30 484,477$ 1,108,510$ -$ 105,915$ 1,698,902$ Special Revenue Funds (See independent auditor's report.) - 68 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MOTOR FUEL TAX FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual REVENUES Intergovernmental Allo tments earned 494,000$ 494,000$ 473,426$ Investment income 10,000 10,000 5,419 Total revenues 504,000 504,000 478,845 EXPENDITURES Highways and streets Capital outlay 550,000 550,000 494,000 Total expenditures 550,000 550,000 494,000 NET CHANGE IN FUND BALANCE (46,000)$ (46,000)$ (15,155) FUND BALANCE, MAY 1 499,632 FUND BALANCE, APRIL 30 484,477$ (See independent auditor's report.) - 69 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ENHANCED 911 FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual REVENUES Charges for services Other charges 366,000$ 366,000$ 341,116$ Investment income 14,000 14,000 7,516 Total revenues 380,000 380,000 348,632 EXPENDITURES Public safety Contractual services 140,000 140,000 118,727 Utilit ies 70,000 70,000 49,208 Capital outlay 197,398 197,398 161,933 Total expenditures 407,398 407,398 329,868 NET CHANGE IN FUND BALANCE (27,398)$ (27,398)$ 18,764 FUND BALANCE, MAY 1 1,089,746 FUND BALANCE, APRIL 30 1,108,510$ (See independent auditor's report.) - 70 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL BOND PROCEEDS FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual REVENUES Investment income -$ -$ 810$ Total revenues - - 810 EXPENDITURES None - - - Total expenditures - - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES - - 810 OTHER FINANCING SOURCES (USES) Transfers (out) Infrastructure Replacement Fund - - (673,389) Total other financing sources (uses)- - (673,389) NET CHANGE IN FUND BALANCE -$ -$ (672,579) FUND BALANCE, MAY 1 672,579 FUND BALANCE, APRIL 30 -$ (See independent auditor's report.) - 71 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual REVENUES Taxes Property 367,463$ 367,463$ -$ Replacement 20,000 20,000 - Investment income 12,000 12,000 1,304 Total revenues 399,463 399,463 1,304 EXPENDITURES Debt service Principal retirement 175,000 175,000 175,000 Interest 193,150 193,150 193,150 Fiscal charges 2,000 2,000 - Total expenditures 370,150 370,150 368,150 NET CHANGE IN FUND BALANCE 29,313$ 29,313$ (366,846) FUND BALANCE, MAY 1 472,761 FUND BALANCE, APRIL 30 105,915$ (See independent auditor's report.) - 72 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL WATER FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Water sales 4,368,550$ 4,368,550$ 3,567,809$ Miscellaneous Permits and fees 30,000 30,000 36,322 Penalties 37,000 37,000 27,925 Other 58,000 58,000 33,927 Total operating revenues 4,493,550 4,493,550 3,665,983 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 558,372 558,372 524,643 Operations Distribution 2,620,105 2,620,105 2,233,922 Maintenance - mains and fire hydrants 675,675 675,675 567,949 Maintenance - meters 383,566 383,566 329,486 Total operating expenses excluding depreciation 4,237,718 4,237,718 3,656,000 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 255,832 255,832 9,983 Depreciation - - 367,081 OPERATING INCOME (LOSS)255,832 255,832 (357,098) NONOPERATING REVENUES (EXPENSES) Investment income 30,000 30,000 1,079 Interest expense (483,365) (483,365) (80,808) Total nonoperating revenues (expenses)(453,365) (453,365) (79,729) NET INCOME (LOSS) BEFORE CONTRIBUTIONS (197,533) (197,533) (436,827) CONTRIBUTIONS - - 539,789 CHANGE IN NET ASSETS (197,533)$ (197,533)$ 102,962 NET ASSETS, MAY 1 14,526,642 NET ASSETS, APRIL 30 14,629,604$ (See independent auditor's report.) - 73 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual ADMINISTRATION Personnel services 318,600$ 318,600$ 301,520$ Training and development 3,600 3,600 2,053 Contractual services 165,750 165,750 156,669 Commodities 10,300 10,300 5,983 Utilities 11,000 11,000 10,246 Capital outlay 49,122 49,122 48,172 Total administration 558,372 558,372 524,643 OPERATIONS Distribution Personnel services 113,255 113,255 112,497 Contractual services 37,350 37,350 52,710 Commodities 2,232,200 2,232,200 1,974,478 Utilities 97,300 97,300 88,194 Capital outlay 140,000 140,000 6,043 Total distribution 2,620,105 2,620,105 2,233,922 Main and fire hydrant maintenance Personnel services 417,975 417,975 419,084 Contractual services 105,500 105,500 54,588 Commodities 145,200 145,200 94,277 Capital outlay 7,000 7,000 - Total main and fire hydrant maintenance 675,675 675,675 567,949 Meter maintenance Personnel services 164,366 164,366 145,037 Contractual services 10,100 10,100 4,456 Commodities 7,100 7,100 3,613 Capital outlay 202,000 202,000 176,380 Total meter maintenance 383,566 383,566 329,486 TOTAL OPERATING EXPENSES 4,237,718$ 4,237,718$ 3,656,000$ (See independent auditor's report.) - 74 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION WATER FUND For the Year Ended April 30, 2010 Assets Balances Balances May 1 Additions Retirements April 30 Land 1,877,956$ -$ -$ 1,877,956$ Construction in progress - 39,789 - 39,789 Buildings 4,180,123 - - 4,180,123 Water system improvements 12,232,894 500,000 80,682 12,652,212 Equipment and vehicles 595,397 - - 595,397 TOTAL 18,886,370$ 539,789$ 80,682$ 19,345,477$ Balances Balances May 1 Additions Retirements April 30 Buildings 1,339,174$ 91,837$ -$ 1,431,011$ Water system improvements 1,598,297 266,921 80,682 1,784,536 Equipment and vehicles 556,959 8,323 - 565,282 TOTAL 3,494,430$ 367,081$ 80,682$ 3,780,829$ NET ASSET VALUE 15,564,648$ Accumulated Depreciation (See independent auditor's report.) - 75 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Sewer charges 2,586,725$ 2,586,725$ 2,320,123$ Miscellaneous Permits and fees 22,000 22,000 6,600 Penalties 34,000 34,000 25,325 Other 5,000 5,000 1,360 Total operating revenues 2,647,725 2,647,725 2,353,408 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 538,363 538,363 443,123 Operations Treatment plant 1,753,290 1,753,290 1,398,290 Cleaning and maintenance 266,900 266,900 276,051 Construction 410,106 410,106 290,058 Total operating expenses excluding depreciation 2,968,659 2,968,659 2,407,522 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (320,934) (320,934) (54,114) Depreciation - - 235,754 OPERATING INCOME (LOSS)(320,934) (320,934) (289,868) NONOPERATING REVENUES (EXPENSES) Investment income 13,500 13,500 120 Miscellaneous - - 9,592 Total nonoperating revenues (expenses)13,500 13,500 9,712 INCOME (LOSS) BEFORE CONTRIBUTIONS (307,434) (307,434) (280,156) CONTRIBUTIONS - - 3,153,228 CHANGE IN NET ASSETS (307,434)$ (307,434)$ 2,873,072 NET ASSETS, MAY 1 7,696,740 NET ASSETS, APRIL 30 10,569,812$ (See independent auditor's report.) - 76 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual ADMINISTRATION Personnel services 251,450$ 251,450$ 176,728$ Training and development 3,400 3,400 1,172 Contractual services 207,700 207,700 194,217 Commodities 9,500 9,500 7,480 Utilities 5,000 5,000 4,213 Capital outlay 61,313 61,313 59,313 Total administration 538,363 538,363 443,123 OPERATIONS Treatment plant Personnel services 1,012,213 1,012,213 889,089 Training and development 5,600 5,600 3,297 Contractual services 264,000 264,000 130,577 Commodities 116,000 116,000 82,901 Utilities 282,000 282,000 254,699 Miscellaneous 50,000 50,000 19,200 Capital outlay 23,477 23,477 18,527 Total treatment plant 1,753,290 1,753,290 1,398,290 Cleaning and maintenance Personnel services 216,400 216,400 258,949 Contractual services 30,000 30,000 9,405 Commodities 20,500 20,500 7,697 Total cleaning and maintenance 266,900 266,900 276,051 Construction Personnel services 303,406 303,406 214,823 Contractual services 40,500 40,500 26,708 Commodities 66,200 66,200 48,527 Capital outlay 16,941 16,941 16,941 Subtotal construction 427,047 427,047 306,999 Less nonoperating expenses Capital assets capitalized (16,941) (16,941) (16,941) Total construction 410,106 410,106 290,058 TOTAL OPERATING EXPENSES 2,968,659$ 2,968,659$ 2,407,522$ (See independent auditor's report.) - 77 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION SEWERAGE FUND For the Year Ended April 30, 2010 Assets Balances Balances May 1 Additions Retirements April 30 Construction in progress 2,042,426$ 1,321,513$ 1,611,594$ 1,752,345$ Sewer system 3,937,345 190,532 - 4,127,877 Buildings and improvements 3,837,707 3,269,719 12,759 7,094,667 TOTAL 9,817,478$ 4,781,764$ 1,624,353$ 12,974,889$ Accumulated Depreciation Balances Balances May 1 Additions Retirements April 30 Sewer system 984,034$ 87,931$ -$ 1,071,965$ Buildings and improvements 1,468,307 147,823 12,759 1,603,371 TOTAL 2,452,341$ 235,754$ 12,759$ 2,675,336$ NET ASSET VALUE 10,299,553$ (See independent auditor's report.) - 78 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL REFUSE FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Refuse billing 621,500$ 621,500$ 622,629$ Miscellaneous 6,000 6,000 5,349 Total operating revenues 627,500 627,500 627,978 OPERATING EXPENSES Operations Personnel services 87,500 87,500 62,490 Contractual services 1,668,300 1,668,300 1,511,419 Commodities 13,000 13,000 13,718 Capital outlay 11,617 11,617 11,617 Total operating expenses 1,780,417 1,780,417 1,599,244 OPERATING INCOME (LOSS)(1,152,917) (1,152,917) (971,266) NONOPERATING REVENUES (EXPENSES) Investment income 11,000 11,000 1,765 Property taxes 841,360 841,360 807,968 Total nonoperating revenues (expenses)852,360 852,360 809,733 CHANGE IN NET ASSETS (300,557)$ (300,557)$ (161,533) NET ASSETS, MAY 1 159,783 NET ASSETS (DEFICIT), APRIL 30 (1,750)$ (See independent auditor's report.) - 79 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual OPERATING REVENUES Parking lot fees 218,000$ 218,000$ 209,165$ Total operating revenues 218,000 218,000 209,165 OPERATING EXPENSES Operations 322,280 322,280 235,721 Depreciation - - 26,737 Total operating expenses 322,280 322,280 262,458 OPERATING INCOME (LOSS)(104,280) (104,280) (53,293) NONOPERATING REVENUES (EXPENSES) Investment income 15,000 15,000 5,340 Total nonoperating revenues (expenses)15,000 15,000 5,340 CHANGE IN NET ASSETS (89,280)$ (89,280)$ (47,953) NET ASSETS, MAY 1 1,977,487 NET ASSETS, APRIL 30 1,929,534$ (See independent auditor's report.) - 80 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual OPERATIONS Parking lots - village and federal funds Personnel services 17,680$ 17,680$ 12,042$ Contractual services 146,000 146,000 110,033 Commodities 5,800 5,800 322 Utilities 3,300 3,300 - Capital outlay 5,000 5,000 - Total parking lots - village and federal funds 177,780 177,780 122,397 Parking lots - village construction Personnel services 18,100 18,100 12,042 Contractual services 118,000 118,000 97,230 Commodities 1,400 1,400 322 Utilities 6,000 6,000 3,730 Capital outlay 1,000 1,000 - Total parking lots - village construction 144,500 144,500 113,324 TOTAL OPERATING EXPENSES 322,280$ 322,280$ 235,721$ (See independent auditor's report.) - 81 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION COMMUTER PARKING LOT FUND For the Year Ended April 30, 2010 Assets Balances Balances May 1 Additions Retirements April 30 Land 77,500$ -$ -$ 77,500$ Parking lot improvements 1,950,830 - - 1,950,830 TOTAL 2,028,330$ -$ -$ 2,028,330$ Accumulated Depreciation Balances Balances May 1 Additions Retirements April 30 Parking lot improvements 720,908$ 26,737$ -$ 747,645$ NET ASSET VALUE 1,280,685$ (See independent auditor's report.) - 82 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS April 30, 2010 Vehicle and Equipment Garage Replacement Total CURRENT ASSETS Cash and investments 111,452$ 3,805,894$ 3,917,346$ Receivables Accounts 2,524 - 2,524 Accrued interest 105 4,093 4,198 Inventory 111,241 - 111,241 Total current assets 225,322 3,809,987 4,035,309 CAPITAL ASSETS Depreciable - 3,225,316 3,225,316 Accumulated depreciation - (1,627,982) (1,627,982) Net capital assets - 1,597,334 1,597,334 Total assets 225,322 5,407,321 5,632,643 CURRENT LIABILITIES Accounts payable 9,476 13,843 23,319 Accrued payroll 5,959 - 5,959 Compensated absences payable 2,606 - 2,606 Total current liabilities 18,041 13,843 31,884 LONG-TERM LIABILITIES Compensated absences payable 23,459 - 23,459 Total long-term liabilities 23,459 - 23,459 Total liabilities 41,500 13,843 55,343 NET ASSETS Invested in capital assets - 1,597,334 1,597,334 Unrestricted 183,822 3,796,144 3,979,966 TOTAL NET ASSETS 183,822$ 5,393,478$ 5,577,300$ (See independent auditor's report.) - 83 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS For the Year Ended April 30, 2010 Vehicle and Equipment Garage Replacement Total OPERATING REVENUES Interfund services Billings 373,594$ 584,639$ 958,233$ Miscellaneous 8,084 - 8,084 Total operating revenues 381,678 584,639 966,317 OPERATING EXPENSES Operations 366,648 - 366,648 Commodities - 267,353 267,353 Total operating expenses 366,648 267,353 634,001 OPERATING INCOME BEFORE DEPRECIATION 15,030 317,286 332,316 Depreciation - 237,722 237,722 OPERATING INCOME 15,030 79,564 94,594 NONOPERATING REVENUES (EXPENSES) Investment income 775 27,471 28,246 Gain on disposal of capital assets - 68,748 68,748 Total nonoperating revenues (expenses)775 96,219 96,994 CHANGE IN NET ASSETS 15,805 175,783 191,588 NET ASSETS, MAY 1 168,017 5,217,695 5,385,712 NET ASSETS, APRIL 30 183,822$ 5,393,478$ 5,577,300$ (See independent auditor's report.) - 84 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended April 30, 2010 Vehicle and Equipment Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services 371,772$ 584,639$ 956,411$ Receipts from miscellaneous revenue 8,084 - 8,084 Payments to suppliers (142,651) (253,510) (396,161) Payments to employees (219,047) - (219,047) Net cash from operating activities 18,158 331,129 349,287 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES None - - - Net cash from noncapital financing activities - - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - 68,748 68,748 Capital assets purchased - (430,837) (430,837) Net cash from capital and related financing activities - (362,089) (362,089) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 772 30,008 30,780 Net cash from investing activities 772 30,008 30,780 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 18,930 (952) 17,978 CASH AND CASH EQUIVALENTS, MAY 1 92,522 3,806,846 3,899,368 CASH AND CASH EQUIVALENTS, APRIL 30 111,452$ 3,805,894$ 3,917,346$ RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income 15,030$ 79,564$ 94,594$ Adjustments to reconcile operating income to net cash from operating activities Depreciation - 237,722 237,722 (Increase) decrease in Accounts receivable (1,822) - (1,822) Inventories 1,521 - 1,521 Increase (decrease) in Accounts payable 1,048 13,843 14,891 Accrued payroll 1,030 - 1,030 Compensated absences payable 1,351 - 1,351 NET CASH FROM OPERATING ACTIVITIES 18,158$ 331,129$ 349,287$ (See independent auditor's report.) - 85 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL GARAGE FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual OPERATING REVENUES Interfund services Billings 330,000$ 330,000$ 373,594$ Miscellaneous 7,000 7,000 8,084 Total operating revenues 337,000 337,000 381,678 OPERATING EXPENSES Operations 394,300 394,300 366,648 OPERATING INCOME (LOSS)(57,300) (57,300) 15,030 NONOPERATING REVENUES (EXPENSES) Investment income 500 500 775 Total nonoperating revenues (expenses)500 500 775 CHANGE IN NET ASSETS (56,800)$ (56,800)$ 15,805 NET ASSETS, MAY 1 168,017 NET ASSETS, APRIL 30 183,822$ (See independent auditor's report.) - 86 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL GARAGE FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual OPERATING EXPENSES Public works department Personnel services 241,700$ 241,700$ 221,428$ Training and development 1,000 1,000 131 Contractual services 25,850 25,850 17,962 Commo dit ies 112,900 112,900 116,754 Utilit ies 4,700 4,700 4,159 Capital outlay 8,150 8,150 6,214 TOTAL OPERATING EXPENSES 394,300$ 394,300$ 366,648$ (See independent auditor's report.) - 87 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL VEHICLE AND EQUIPMENT REPLACEMENT FUND For the Year Ended April 30, 2010 Original Final Budget Budget Actual OPERATING REVENUES Interfund services Billings 584,639$ 584,639$ 584,639$ OPERATING EXPENSES Capital outlay 1,370,837 1,370,837 698,190 Less capital assets capitalized (430,837) (430,837) (430,837) Net operating expenses 940,000 940,000 267,353 OPERATING INCOME BEFORE DEPRECIATION (355,361) (355,361) 317,286 Depreciation - - 237,722 OPERATING INCOME (355,361) (355,361) 79,564 NONOPERATING REVENUES (EXPENSES) Investment income 70,000 70,000 27,471 Gain on disposal of capital assets - - 68,748 Total nonoperating revenues (expenses)70,000 70,000 96,219 CHANGE IN NET ASSETS (285,361)$ (285,361)$ 175,783 NET ASSETS, MAY 1 5,217,695 NET ASSETS, APRIL 30 5,393,478$ (See independent auditor's report.) - 88 - Original Final Budget Budget Actual ADDITIONS Contributions - employer 950,000$ 950,000$ 1,202,006$ Contributions - employee 375,000 375,000 358,412 Total contributions 1,325,000 1,325,000 1,560,418 Investment income Net appreciation (depreciation) in fair value of investments - - 4,557,279 Interest earned on investments 800,000 800,000 504,026 Total investment income 800,000 800,000 5,061,305 Less investment expense (1,750) (1,750) (1,466) Net investment income 798,250 798,250 5,059,839 Miscellaneous - - 10,105 Total additions 2,123,250 2,123,250 6,630,362 DEDUCTIONS Benefits and refunds Pension payments 1,659,900 1,659,900 1,505,165 Separation refunds 15,000 15,000 - Administrative 14,000 14,000 15,830 Total deductions 1,688,900 1,688,900 1,520,995 NET INCREASE (DECREASE)434,350$ 434,350$ 5,109,367 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1 22,192,407 April 30 27,301,774$ VILLAGE OF DEERFIELD, ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS - BUDGET AND ACTUAL For the Year Ended April 30, 2010 (See independent auditor's report.) - 89 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended April 30, 2010 Balances Balances May 1 Additions Deductions April 30 ASSETS Cash and investments 1,221,375$ 263,347$ 353,920$ 1,130,802$ Receivables - accrued interest 151 78 151 78 TOTAL ASSETS 1,221,526$ 263,425$ 354,071$ 1,130,880$ LIABILITIES Accounts payable 6,343$ 8,500$ 3,523$ 11,320$ Deposits payable 1,157,416 204,746 292,461 1,069,701 Other payables 57,767 50,179 58,087 49,859 TOTAL LIABILITIES 1,221,526$ 263,425$ 354,071$ 1,130,880$ ASSETS Cash and investments 1,159,916$ 213,246$ 292,461$ 1,080,701$ TOTAL ASSETS 1,159,916$ 213,246$ 292,461$ 1,080,701$ LIABILITIES Accounts payable 2,500$ 8,500$ -$ 11,000$ Deposits payable 1,157,416 204,746 292,461 1,069,701 TOTAL LIABILITIES 1,159,916$ 213,246$ 292,461$ 1,080,701$ ASSETS Cash and investments 61,459$ 50,101$ 61,459$ 50,101$ Receivables - accrued interest 151 78 151 78 TOTAL ASSETS 61,610$ 50,179$ 61,610$ 50,179$ LIABILITIES Accounts payable 3,843$ -$ 3,523$ 320$ Other payables 57,767 50,179 58,087 49,859 TOTAL LIABILITIES 61,610$ 50,179$ 61,610$ 50,179$ DEPOSIT FUND ALL FUNDS EAST SHORE RADIO NETWORK FUND (See independent auditor's report.) - 90 - Date of Issue February 28, 2003 Date of Maturity December 1, 2012 Authorized Issue $3,460,000 Denomination of Bonds $5,000 Interest Rates 2.25%, 2.55%, 2.95%, 3.15%, 3.30%, 3.50% Principal Maturity Date December 1 Payable at Cole Taylor Bank, Chicago, Illinois Tax Levy Bond Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2009 423-509 435,000$ 44,827$ 479,827$ 2010 22,414$ 2010 22,413$ 2010 510-599 450,000 31,125 481,125 2011 15,562 2011 15,563 2011 600-692 465,000 16,275 481,275 2012 8,138 2012 8,137 1,350,000$ 92,227$ 1,442,227$ 46,114$ 46,113$ FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy Interest Due on VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION REFUNDING BOND SERIES OF 2003 April 30, 2010 (See independent auditor's report.) - 91 - Date of Issue August 1, 2008 Date of Maturity December 1, 2028 Authorized Issue $5,000,000 Denomination of Bonds $5,000 In terest Rates 3.25%, 3.375%, 3.50%, 3.75%, 3.875%, 4.00%, 4.125%. 4.25% Principal Maturity Date December 1 Payable at Cole Taylor Bank, Chicago, Illinois Tax Levy Bond Year Numbers Principal In terest Total June 1 Amount December 1 Amount 2009 36-71 180,000$ 187,463$ 367,463$ 2010 93,731$ 2010 93,732$ 2010 72-108 185,000 181,613 366,613 2011 90,806 2011 90,807 2011 109-146 190,000 175,600 365,600 2012 87,800 2012 87,800 2012 147-185 195,000 169,425 364,425 2013 84,712 2013 84,713 2013 186-226 205,000 162,844 367,844 2014 81,422 2014 81,422 2014 227-268 210,000 155,669 365,669 2015 77,834 2015 77,835 2015 269-312 220,000 147,794 367,794 2016 73,897 2016 73,897 2016 313-357 225,000 139,544 364,544 2017 69,772 2017 69,772 2017 358-404 235,000 131,106 366,106 2018 65,553 2018 65,553 2018 405-453 245,000 122,294 367,294 2019 61,147 2019 61,147 2019 454-504 255,000 112,800 367,800 2020 56,400 2020 56,400 2020 505-557 265,000 102,919 367,919 2021 51,459 2021 51,460 2021 558-612 275,000 92,319 367,319 2022 46,159 2022 46,160 2022 613-670 290,000 81,319 371,319 2023 40,659 2023 40,660 2023 671-730 300,000 69,356 369,356 2024 34,678 2024 34,678 2024 731-793 315,000 56,981 371,981 2025 28,491 2025 28,490 2025 794-859 330,000 43,987 373,987 2026 21,994 2026 21,993 2026 860-928 345,000 29,962 374,962 2027 14,981 2027 14,981 2027 929-1,000 360,000 15,300 375,300 2028 7,650 2028 7,650 4,825,000$2,178,295$7,003,295$1,089,145$1,089,150$ FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy In terest Due on VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 2008 April 30, 2010 (See independent auditor's report.) - 92 - STATISTICAL SECTION This part of the Village of Deerfield’s comprehensive annual financial report presents detailed info rmation as a context for understanding what the information in the financial statements, note disclosures, and required supplementary info rmation says about the Village’s overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village’s financial performance and well-being have changed over time.93-97 Revenue Capacity These schedules contain information to help the reader assess the Village’s mo st significant local revenue source, the property tax.98-99 Debt Capacity These schedules present information to help the reader assess the affordability of the Village’s current levels of outstanding debt and the Village’s ability to issue additional debt in the future.100-103 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village’s financial activities take place. 104-105 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village’s financial report relates to the services the Village provides and the activities it performs.106-108 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Village implement ed GASB Statement 34 in FY 2004; schedules presenting government-wide information include information beginning in t hat year. VILLAGE OF DEERFIELD, ILLINOIS NET ASSETS BY COMPONENT Last Seven Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 2010 GOVERNMENTAL ACTIVITIES Invested in capital assets net of related debt 45,212,401$ 46,416,474$ 47,360,406$ 60,106,127$ 60,243,189$ 62,619,244$ 66,174,872$ Restricted 7,143,495 5,642,027 6,634,566 4,088,876 4,979,340 5,899,947 1,698,902 Unrestricted 23,683,161 22,293,758 24,431,788 18,185,786 22,238,210 18,140,003 14,799,887 TOTAL GOVERNMENTAL ACTIVITIES 76,039,057$ 74,352,259$ 78,426,760$ 82,380,789$ 87,460,739$ 86,659,194$ 82,673,661$ BUSINESS-TYPE ACTIVITIES Invested in capital assets net of related debt 12,533,676$ 14,327,902$ 15,898,989$ 16,926,626$ 19,176,339$ 22,289,499$ 25,794,886$ Unrestricted 5,750,279 4,753,661 4,066,666 4,841,210 3,120,381 2,071,153 1,332,314 TOTAL BUSINESS-TYPE ACTIVITIES 18,283,955$ 19,081,563$ 19,965,655$ 21,767,836$ 22,296,720$ 24,360,652$ 27,127,200$ PRIMARY GOVERNMENT Invested in capital assets net of related debt 57,746,077$ 60,744,376$ 63,259,395$ 77,032,753$ 79,419,528$ 84,908,743$ 91,969,758$ Restricted 7,143,495 5,642,027 6,634,566 4,088,876 4,979,340 5,899,947 1,698,902 Unrestricted 29,433,440 27,047,419 28,498,454 23,026,996 25,358,591 20,211,156 16,132,201 TOTAL PRIMARY GOVERNMENT 94,323,012$ 93,433,822$ 98,392,415$ 104,148,625$ 109,757,459$ 111,019,846$ 109,800,861$ Data Source Audited Financial Statements - 93 - Fiscal Year 2004 2005 2006 2007 2008 2009 2010 EXPENSES Governmental activities General government 13,407,856$ 17,160,850$ 14,956,404$ 4,602,570$ 4,569,982$ 5,228,097$ 9,833,315$ Public safety 6,718,927 6,660,439 6,780,176 7,154,536 7,232,143 7,715,014 8,543,631 Highways and streets 4,809,688 7,113,852 6,404,266 5,822,340 4,451,069 7,317,060 10,985,018 Interest 574,558 462,600 372,475 295,435 209,430 215,464 193,105 Total governmental activities expenses 25,511,029 31,397,741 28,513,321 17,874,881 16,462,624 20,475,635 29,555,069 Business-type activities Water 3,915,324 3,940,038 4,319,188 4,264,602 6,224,262 3,993,964 4,103,889 Sewerage 2,335,993 2,380,517 2,126,395 2,450,965 2,735,053 3,040,082 2,643,276 Refuse disposal 1,388,879 1,386,178 1,397,308 1,496,548 1,520,190 1,590,167 1,599,244 Commuter parking 43,573 195,513 225,498 246,153 210,307 282,534 262,458 Total business-type activities expenses 7,683,769 7,902,246 8,068,389 8,458,268 10,689,812 8,906,747 8,608,867 TOTAL PRIMARY GOVERNMENT EXPENSES 33,194,798$ 39,299,987$ 36,581,710$ 26,333,149$ 27,152,436$ 29,382,382$ 38,163,936$ PROGRAM REVENUES Governmental activities Charges for services General government 1,147,830$ 1,617,058$ 2,384,295$ 1,743,818$ 1,480,008$ 1,645,678$ 1,862,200$ Public safety 770,963 867,230 884,195 911,421 935,302 956,468 866,510 Highways and streets - 10,091 57,912 69,216 75,400 59,609 47,219 Operating grants and contributions 534,561 558,143 557,050 544,823 524,423 490,768 474,526 Capital grants and contributions 297,220 1,019,794 235,298 213,575 1,492,153 894,545 2,195,963 Total governmental activities program revenues 2,750,574 4,072,316 4,118,750 3,482,853 4,507,286 4,047,068 5,446,418 Business-type activities Charges for services Water 4,109,003 4,038,598 4,644,744 4,250,938 4,365,767 3,647,017 3,567,809$ Sewerage 1,772,816 1,713,520 1,788,238 2,372,061 2,396,295 2,306,028 2,320,123 Refuse disposal 640,430 630,935 615,349 623,681 624,349 623,738 622,629 Commuter parking 151,133 202,497 206,205 204,177 212,585 218,770 209,165 Capital grants and contributions - - 573,179 1,002,909 441,605 - - Total business-type activities program revenues 6,673,382 6,585,550 7,827,715 8,453,766 8,040,601 6,795,553 6,719,726 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 9,423,956$ 10,657,866$ 11,946,465$ 11,936,619$ 12,547,887$ 10,842,621$ 12,166,144$ CHANGE IN NET ASSETS VILLAGE OF DEERFIELD, ILLINOIS Last Seven Fiscal Years - 94 - VILLAGE OF DEERFIELD, ILLINOIS CHANGE IN NET ASSETS (Continued) Last Seven Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 2010 NET (EXPENSE) REVENUE Governmental activities (22,760,455)$ (27,325,425)$ (24,394,571)$ (14,392,028)$ (11,955,338)$ (16,428,567)$ (24,108,651)$ Business-type activities (1,010,387) (1,316,696) (240,674) (4,502) (2,649,211) (2,111,194) (1,889,141) TOTAL PRIMARY GOVERNMENT NET (EXPENSE) REVENUE (23,770,842)$ (28,642,121)$ (24,635,245)$ (14,396,530)$ (14,604,549)$ (18,539,761)$ (25,997,792)$ GENERAL REVENUES AND OTHER CHANGES IN NET ASSETS Governmental activities Taxes Property 16,273,531$ 16,752,445$ 17,081,336$ 6,542,142$ 6,617,648$ 7,093,819$ 8,618,052$ Sales 3,420,855 4,490,379 4,480,111 4,533,261 4,552,097 4,438,194 4,995,509 Home rule sales - - 1,875,874 1,832,281 1,913,268 2,448,385 2,525,183 Simplified telecommunications 339,634 298,021 305,226 323,358 354,984 347,666 326,528 Other 2,899,641 3,214,073 3,600,623 3,891,356 4,065,091 3,684,318 3,097,643 Investment income 499,724 835,537 871,624 1,557,378 1,253,533 486,398 166,844 Miscellaneous 182,343 175,507 221,617 210,116 278,667 260,971 393,359 Special items (1,370,009) - - - - - - Contribution to component unit - (127,335) - - - - - Transfers in (out)- - - (1,600,000) (2,000,000) (3,132,729) - Total governmental activities 22,245,719 25,638,627 28,436,411 17,289,892 17,035,288 15,627,022 20,123,118 Business-type activities Property taxes 761,356 740,915 786,228 859,502 780,785 807,708 807,968 Investment income 56,301 113,401 66,823 188,864 192,967 49,427 8,304 Miscellaneous 101,007 218,095 271,715 214,481 204,343 185,262 146,400 Contributions 365,926 1,041,893 - - - - - Transfers in (out)- - - 1,600,000 2,000,000 3,132,729 3,693,017 Total business-type activities 1,284,590 2,114,304 1,124,766 2,862,847 3,178,095 4,175,126 4,655,689 TOTAL PRIMARY GOVERNMENT 23,530,309$ 27,752,931$ 29,561,177$ 20,152,739$ 20,213,383$ 19,802,148$ 24,778,807$ CHANGE IN NET ASSETS Governmental activities (514,736)$ (1,686,798)$ 4,041,840$ 2,897,864$ 5,079,950$ (801,545)$ (3,985,533)$ Business-type activities 274,203 797,608 884,092 2,858,345 528,884 2,063,932 2,766,548 TOTAL PRIMARY GOVERNMENT CHANGE IN NET ASSETS (240,533)$ (889,190)$ 4,925,932$ 5,756,209$ 5,608,834$ 1,262,387$ (1,218,985)$ Data Source Audited Financial Statements - 95 - VILLAGE OF DEERFIELD, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GENERAL FUND Reserved 4,577,551$ 4,108,931$ 4,108,983$ 4,101,576$ 4,090,258$ 3,638,004$ 3,219,255$ 2,233,242$ 453,124$ 447,892$ Unreserved 12,523,449 9,545,203 11,586,730 12,997,848 13,734,009 17,242,457 16,968,193 14,913,911 16,155,829 15,619,459 TOTAL GENERAL FUND 17,101,000$ 13,654,134$ 15,695,713$ 17,099,424$ 17,824,267$ 20,880,461$ 20,187,448$ 17,147,153$ 16,608,953$ 16,067,351$ ALL OTHER GOVERNMENTAL FUNDS Reserved 6,377,762$ 2,880,845$ 2,940,619$ 10,037,943$ 3,805,267$ 6,634,566$ 4,088,876$ 4,979,340$ 5,899,947$ 1,698,902$ Unreserved, reported in Special Revenue Funds 2,796,582 2,630,136 1,234,478 361,876 - - - - - - Capital Project Funds 8,837,732 11,960,387 12,473,866 892,287 3,627,272 1,185,564 976,571 1,804,245 1,928,286 230,653 TOTAL ALL OTHER GOVERNMENTAL FUNDS 18,012,076$ 17,471,368$ 16,648,963$ 11,292,106$ 7,432,539$ 7,820,130$ 5,065,447$ 6,783,585$ 7,828,233$ 1,929,555$ Data Source Audited Financial Statements - 96 - VILLAGE OF DEERFIELD, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 REVENUES Taxes 20,831,978$ 20,891,111$ 22,243,312$ 22,933,661$ 24,754,920$ 27,343,170$ 17,122,400$ 17,503,089$ 18,012,382$ 19,562,915$ Licenses and permits 1,109,682 877,546 934,518 939,098 1,390,602 2,151,791 1,454,044 1,161,276 1,271,817 1,366,472 Intergovernmental 524,575 512,901 660,996 831,782 1,582,943 795,364 762,016 713,470 1,349,486 951,183 Fines and forfeitures 260,435 223,465 193,060 166,175 230,320 244,100 239,668 716,522 727,445 654,662 Charges for services 467,173 566,787 954,827 561,219 606,071 657,581 701,606 261,495 251,680 227,686 Investment income 3,203,955 1,570,967 1,415,015 499,720 835,537 871,621 1,557,378 1,253,533 486,398 166,844 Miscellaneous 5,140,866 1,069,550 549,700 434,648 433,279 491,534 514,765 614,796 698,839 821,396 Total revenues 31,538,664 25,712,327 26,951,428 26,366,303 29,833,672 32,555,161 22,351,877 22,224,181 22,798,047 23,751,158 EXPENDITURES General government 3,312,324 10,175,205 10,491,626 12,787,565 17,159,086 14,733,899 4,208,961 4,827,462 5,156,342 12,471,646 Public safety 4,652,692 4,628,549 5,469,406 6,455,809 6,655,195 6,818,734 7,114,542 7,273,503 7,656,333 8,322,821 Highways and streets 2,189,880 1,591,611 1,414,832 1,760,743 1,860,596 2,167,013 2,333,709 3,034,841 3,536,206 2,916,045 Capital outlay 20,318,258 7,132,673 4,767,424 2,864,456 4,203,040 4,107,770 8,260,631 4,204,984 6,735,684 6,207,466 Debt service Principal 2,630,000 2,685,000 2,725,000 2,750,000 2,485,000 1,500,000 2,000,000 2,000,000 4,000,000 175,000 Interest 904,749 876,891 739,459 598,683 482,750 377,850 302,600 216,600 184,939 193,150 Total expenditures 34,007,903 27,089,929 25,607,747 27,217,256 32,845,667 29,705,266 24,220,443 21,557,390 27,269,504 30,286,128 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,469,239) (1,377,602) 1,343,681 (850,953) (3,011,995) 2,849,895 (1,868,566) 666,791 (4,471,457) (6,534,970) OTHER FINANCING SOURCES (USES) Transfers in 7,250,015 10,801,457 4,505,297 2,044,550 2,441,750 2,438,479 4,702,000 4,216,000 8,629,795 923,389 Transfers (out)(6,999,990) (10,604,457) (3,754,318) (2,044,550) (2,569,085) (1,877,250) (6,302,000) (6,216,000) (8,629,795) (923,389) Bonds issued - 3,546,013 - - - - - - 5,000,000 - Discount on bonds issued - - - - - - - - (30,867) - Refunding of bonds - (3,510,000) - - - - - - - - Special item - - - (1,370,009) - - - - - - Sale of capital assets - - - - 4,606 - 20,870 11,052 8,772 94,690 Total other financing sources (uses)250,025 233,013 750,979 (1,370,009) (122,729) 561,229 (1,579,130) (1,988,948) 4,977,905 94,690 NET CHANGE IN FUND BALANCES (2,219,214)$ (1,144,589)$ 2,094,660$ (2,220,962)$ (3,134,724)$ 3,411,124$ (3,447,696)$ (1,322,157)$ 506,448$ (6,440,280)$ Debt service as a percentage of noncapital expenditures 25.82%17.85%16.62%13.75%10.36%7.34%14.43%12.77%14.43%1.33% Data Source Audited Financial Statements - 97 - VILLAGE OF DEERFIELD, ILLINOIS SALES TAX BY CATEGORY Last Ten Calendar Years Calendar Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 General merchandise 78,758$ 79,268$ 82,011$ 162,873$ 214,657$ 297,344$ 217,623$ 268,413$ 181,355$ 215,487$ Food 222,214 248,773 307,716 418,454 506,945 646,617 709,999 712,229 656,766 708,194 Drinking and eating places 398,872 457,226 476,341 472,203 469,889 604,698 666,821 749,845 756,872 931,610 Apparel 23,447 66,162 73,784 91,238 108,410 140,908 189,351 195,358 178,925 205,112 Furniture & H.H. & radio 514,293 545,153 560,267 528,154 579,127 1,026,827 836,653 784,397 676,075 644,981 Lumber, building hardware 488,534 511,579 502,467 441,858 490,021 741,273 681,704 614,752 532,637 622,406 Automobile and filling stations 189,363 166,908 160,031 157,021 168,139 264,775 317,435 257,719 283,125 284,289 Drugs and miscellaneous retail 742,858 782,309 763,484 793,503 994,536 1,707,928 1,899,467 1,877,780 2,184,421 3,211,071 Agriculture and all others 172,334 176,498 178,602 163,866 186,343 685,694 788,059 737,298 711,157 895,708 Manufacturers 141,888 60,744 96,720 65,151 63,701 95,169 125,147 93,150 143,018 196,451 TOTAL 2,972,561$ 3,094,620$ 3,201,423$ 3,294,321$ 3,781,768$ 6,211,233$ 6,432,259$ 6,290,941$ 6,304,351$ 7,915,309$ Village direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00% Village home rule rate 0.00%0.00%0.00%0.00%0.00%0.00%0.50%0.50%0.50%1.00% Data Source Illinois Department of Revenue - 98 - VILLAGE OF DEERFIELD, ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years Cook Village Lake RTA Cook County RTA Home Village Calendar County Lake County County Home Rule Cook County Rule Direct State Year Rate Rate Rate Rate Rate Rate Rate Rate 2000 0.25%0.25%0.25%0.75%0.75%0.00%1.00%5.00% 2001 0.25%0.25%0.25%0.75%0.75%0.00%1.00%5.00% 2002 0.25%0.25%0.25%0.75%0.75%0.00%1.00%5.00% 2003 0.25%0.25%0.25%0.75%0.75%0.00%1.00%5.00% 2004 0.25%0.25%0.25%0.75%0.75%0.00%1.00%5.00% 2005 0.25%0.25%0.25%0.75%0.75%0.50%1.00%5.00% 2006 0.25%0.25%0.25%0.75%0.75%0.50%1.00%5.00% 2007 0.25%0.25%0.25%0.75%0.75%0.50%1.00%5.00% 2008 0.25%0.75%0.25%1.75%1.00%0.50%1.00%5.00% 2009 0.25%0.75%0.25%1.75%1.00%1.00%1.00%5.00% Data Source Village and County Records - 99 - 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* 2001 20,195,000$ 4,460,000$ 24,655,000$ 1.25%1,338.49$ 2002 17,460,000 4,170,000 21,630,000 1.10%1,174.27 2003 14,735,000 4,105,000 18,840,000 0.95%1,022.80 2004 11,985,000 3,730,000 15,715,000 0.80%853.15 2005 9,500,000 3,360,000 12,860,000 0.65%698.15 2006 8,000,000 2,980,000 10,980,000 0.56%596.09 2007 6,000,000 2,585,000 8,585,000 0.43%466.07 2008 4,000,000 2,185,000 6,185,000 0.31%335.78 2009 5,000,000 1,775,000 6,775,000 0.34%367.81 2010 4,825,000 1,350,000 6,175,000 0.31%335.23 Note: income and population data. Data Source Audited Financial Statements VILLAGE OF DEERFIELD, ILLINOIS Note: Details of the Village's outstanding debt can be found in the notes to financial * See the schedule of Demographic and Economic Statistics on page 104 for personal statements. - 100 - VILLAGE OF DEERFIELD, ILLINOIS RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years (1)(1) Governmental Business-Type (1)Percentage of Activities Activities Less: Amounts Estimat ed General General Available Actual Taxable Fiscal Obligation Obligation In Debt Value of Year Bonds Bonds Service Fund Total Property 2001 20,195,000$ 4,460,000$ 2,660,397$ 21,994,603$ 0.99% 2002 17,460,000 4,170,000 2,880,845 18,749,155 0.78% 2003 14,735,000 4,105,000 2,840,619 15,999,381 0.61% 2004 11,985,000 3,730,000 1,674,419 14,040,581 0.51% 2005 9,500,000 3,360,000 361,876 12,498,124 0.42% 2006 8,000,000 2,980,000 1,094,777 9,885,223 0.26% 2007 6,000,000 2,585,000 533,758 8,051,242 0.20% 2008 4,000,000 2,185,000 560,711 5,624,289 0.12% 2009 5,000,000 1,775,000 472,761 6,302,239 0.13% 2010*4,825,000 1,350,000 105,915 6,069,085 0.13% * 2008 EAV used as it is the most recent data available Data Source (1) Audited Financial Statements - 101 - *** (1)(2) Gross Percentage *** General of Debt Village's Obligation Applicable to Share Governmental Unit Debt Government of Debt Village of Deerfield 4,825,000$ 100.000%4,825,000$ Lake County 36,770,000 4.587%1,686,640 Lake County Forest Preserve 315,400,000 4.587%14,467,398 Cook County 3,184,830,000 0.130%4,140,279 Cook County Forest Preserve 108,665,000 0.130%141,265 Deerfield Park District 5,930,000 97.354%5,773,092 Park District of Highland Park 1,300,000 1.382%17,966 Northbrook Park District 12,249,500 3.970%486,305 Lake Elementary School District No. 109 22,865,000 75.705%17,309,948 Lake Elementary School Distrtict No. 112 25,165,000 0.199%50,078 Lake High School District No. 113 78,595,000 28.528%22,421,582 Cook Northfield Township High School District No. 225 95,529,613 3.350%3,200,242 Community College of Lake County No. 532 7,755,560 4.828%374,438 Metropolitan Water Reclamation District of Greater Chicago 1,960,541,202 0.130%2,548,704 North Shore Sanitary District 4,494,017 0.025%1,124 5,860,089,892 72,619,061 Total gross debt 5,864,914,892 77,444,061 Less Debt Service Fund amount available - Village of Deerfield 105,915 105,915 TOTAL DIRECT AND OVERLAPPING DEBT 5,864,808,977$ 77,338,146$ (1) (2)Includes outstanding original principal amounts of General Obligation Capital Appreciation Bonds. (3)Includes bonds payable to the IEPA. (4)Excludes outstanding debt certificates. *Most recent data available. ** ***Amount of column (2) multiplied by amount in column (1). Data Source Office of the County Clerk VILLAGE OF DEERFIELD, ILLINOIS DIRECT AND OVERLAPPING BONDED DEBT - April 30, 2010 Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation. GOVERNMENTAL ACTIVITIES Excludes outstanding principal amounts of General Obligation (Alternate Revenue Source) Bonds which are expected to be paid from sources other than general taxation. - 102 - VILLAGE OF DEERFIELD, ILLINOIS LEGAL DEBT MARGIN INFORMATION April 30, 2010 EQUALIZED ASSESSED VALUATION - 2009*1,577,953,846$ Legal Debt Limit - 8.625%136,098,519$ Amount of debt applicable to limit: General Obligation Bonds Series 2008 4,825,000 LEGAL DEBT MARGIN 131,273,519$ * Most Recent EAV Available Illustrative Computation of Debt Margin If Government Were Not a Home Rule Municipality The Village is a home rule municipality and, as such, has no debt limitations. If, however, the Village were a nonhome rule municipality, its available debt limit would be as follows: "The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, ...indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum...shall not be included in the foregoing percentage." The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin: To date, the General Assembly has set no limits for home rule municipalities. only in excess of the following percentages of the assessed value of its taxable property...(2) if its population is more than 25,000 and less than 500,000 an aggregate of one per cent: - 103 - Median Fiscal Personal Household Unemployment Year Population Income Income Rate 2001 18,420 1,974,513,480$ 107,194$ 0.90% 2002 18,420 1,974,513,480 107,194 1.40% 2003 18,420 1,974,513,480 107,194 3.20% 2004 18,420 1,974,513,480 107,194 3.80% 2005 18,420 1,974,513,480 107,194 1.40% 2006 18,420 1,974,513,480 107,194 1.10% 2007 18,420 1,974,513,480 107,194 2.80% 2008 18,420 1,974,513,480 107,194 3.40% 2009 18,420 1,974,513,480 107,194 4.90% 2010 18,420 1,974,513,480 107,194 7.10% Data Source U.S. Census Bureau and U.S. Bureau of Labor Statistics VILLAGE OF DEERFIELD, ILLINOIS DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years - 104 - % of % of Total Village Total Village Employer Employees Rank Population Employees Rank Population Walgreen Co 1,700 1 9%- - Baxter International Inc 1,500 2 8%1,000 1 5% Takeda Pharmaceuticals North 1,100 3 6%- - Kinetek Inc 1,080 4 6%- - Astellas Pharma Us Inc 900 5 5%- - Fortune Brands 775 6 4%- - Montclair Hotels Mb LLC 700 7 4%- - Illinois Student Assistance Commission 550 8 3%550 3 3% United Stationers Supply 500 9 3%- - Deerfield School District 109 361 10 2%389 5 2% Hewitt Associates - - 806 2 4% Alliant Food Service - - 500 4 3% Fujisawa Healthcare - - 350 6 2% Fort James Corporation - - 300 7 2% William M. Mercer, Inc.- - 300 8 2% Township High School District 113 - - 239 9 1% West Group - - 225 10 1% 9,166 50%4,659 25% Village population 18,420 18,420 Data Source Lake County Partners VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2010 2001 - 105 - Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GENERAL GOVERNMENT Village Manager 3 3 3 3 3 3 3 3 3 3 Finance 7 7 8 8 8 9 10 10 10 10 Engineering 1 1 1 1 1 2 3 3 3 3 Community development 5 5 5 5 5 6 7 7 7 7 PUBLIC WORKS Administration 3 3 3 3 3 2 4 4 4 4 Street maintenance 7 7 7 7 7 7 7 7 7 7 Utilities maintenance 12 13 13 13 13 13 14 15 15 15 Sewage treatment plant 8 8 8 8 8 8 8 8 8 8 Garage 2 2 2 2 2 2 2 2 2 2 PUBLIC SAFETY Police Administration 8 8 8 8 8 8 7 7 7 7 Communications 7 8 8 8 8 8 8 8 8 8 Investigations/youth 7 7 7 7 7 7 7 7 7 7 Patrol 32 32 32 32 32 32 31 31 31 31 TOTAL 102 104 105 105 105 107 111 112 112 112 Data Source Village budget office VILLAGE OF DEERFIELD, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years - 106 - Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 PUBLIC SAFETY Police Physical arrests 580 515 458 552 463 498 532 587 568 415 Parking violations 4,830 4,446 4,113 3,911 3,260 2,332 2,625 2,690 2,385 1,656 Traffic violations 5,401 5,122 3,523 3,767 3,836 4,140 4,119 4,278 4,255 3,703 PUBLIC WORKS Street resurfacing (miles)0.00 0.00 0.91 0.00 2.21 3.11 3.18 3.21 3.14 0.89 WATER Water main breaks 92 76 68 110 107 141 62 77 47 59 Average daily consumption (gallons)3,001,529 2,906,003 2,842,063 2,997,941 2,998,732 3,350,346 2,998,220 3,128,000 2,566,000 2,630,000 Peak daily consumption (gallons)5,074,860 6,149,350 6,271,610 5,461,590 4,225,510 4,932,570 4,476,210 5,894,000 5,279,000 4,510,000 WASTEWATER Average daily treatment (gallons)3,238,356 3,682,192 3,104,110 2,926,027 3,106,164 2,809,671 3,204,822 2,963,972 3,324,536 3,313,068 Data Source Various village departments VILLAGE OF DEERFIELD, ILLINOIS OPERATING INDICATORS Last Ten Calendar Years - 107 - Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PUBLIC SAFETY Police Stations 1 1 1 1 1 1 1 1 1 1 Number of Police Officers 40 40 40 40 40 39 39 39 39 39 PUBLIC WORKS Arterial streets (miles)8 8 8 8 8 8 8 8 8 8 Residential streets (miles)62 62 62 68 68 68 68 68 68 68 Traffic signals 9 9 9 9 10 10 10 10 10 10 WATER Water mains (miles)82 82 82 83 84 84 84 84 84 88 Fire hydrants 1,174 1,174 1,174 1,189 1,203 1,203 1,203 1,203 1,203 1,212 Storage capacity (gallons)8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 WASTEWATER Sewers (miles)140 140 140 140 140 151 151 151 151 151 Treatment capacity (gallons)8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 Data Source Various village departments VILLAGE OF DEERFIELD, ILLINOIS CAPITAL ASSET STATISTICS Last Ten Fiscal Years - 108 -