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Village CAFR for year ended April 30, 2009VILLAGE OF DEERFIELD, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended April 30, 2009 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 1-6 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 Pension Fund ..................................................................................54 Other Postemp lo yment Benefit Plan ..........................................................55 Schedule of Employer 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 Debt Service Fund .....................................................................................67 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ..............................................................................68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..............................................................................................69 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund .................................................................................70 Enhanced 911 Fund ...................................................................................71 Bond Proceeds Fund ..................................................................................72 Project 29 Fund .........................................................................................73 MAJOR ENTEPRISE FUNDS Water Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................74 Schedule of Operating Expenses -Budget and Actual ................................75 Schedule of Capital Assets and Depreciat io n .............................................76 Sewerage Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................77 Schedule of Operat ing Expenses -Budget and Actual ................................78 Schedule of Capital Assets and Depreciat io n .............................................79 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 ...................................................................................80 NONMAJOR ENTEPRISE FUNDS Commuter Parking Lot Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................81 Schedule of Operat ing Expenses -Budget and Actual ................................82 Schedule of Capit al Assets and Depreciat io n .............................................83 INTERNAL SERVICE FUNDS Combining Statement of Net Assets ...............................................................84 Combining Statement of Revenues, Expenses and Changes in Net Assets ....................................................................................................85 Combining Statement of Cash Flows ..............................................................86 Garage Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................87 Schedule of Operat ing Expenses -Budget and Actual ................................88 Vehicle and Equipment Replacement Fund Schedule of Revenues, Expenses and Changes in Net Assets -Budget and Actual .............................................89 FIDUCIARY FUNDS Schedule of Changes in Plan Net Assets -Budget and Actual - Police Pensio n Fund .....................................................................................90 Combining Statement of Changes in Assets and Liabilit ies - Agency Funds ..............................................................................................91 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 .......................................92 General Obligat io n Refunding Bond Series of 2008 .......................................93 STATISTICAL SECTION Financial Trends Net Assets by Component ...................................................................................94 Change in Net Assets ..........................................................................................95-96 Fund Balances of Governmental Funds ...............................................................97 Changes in Fund Balances of Governmental Funds .............................................98 Revenue Capacit y Sales Tax by Category ........................................................................................99 Direct and Overlapping Sales Tax Rates .............................................................100 Debt Capacit y Ratios of Outstanding Debt by Type ...................................................................101 Ratios of General Bonded Debt Outstanding .......................................................102 Direct and Overlapping Bonded Debt -Governmental Act ivit ie s ........................103 Legal Debt Margin Information ..........................................................................104 Demographic and Economic Informat io n Demographic and Economic Informat io n ............................................................105 Principal Emplo yers ............................................................................................106 Operating Informat io n Full-Time Equivalent Employees ........................................................................107 Operating Indicators............................................................................................108 Capital Asset Statistics ........................................................................................109 -i - VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL OFFICIALS April 30, 2009 LEGISLATIVE VILLAGE BOARD OF TRUSTEES Steven M. Harris, Mayor Robert L. Benton Thomas Jester Harriet E. Rosenthal William S. Seiden Barbara J. Struthers Norton Wasserman Kent Street, Clerk ADMINISTRATIVE Kent Street, Village Manager FINANCE DEPARTMENT Robert W. Fialkowski Director of Finance/Treasurer v as its sole purpose is to provide retirement benefits to the Village's sworn police officers. The Deerfield Public Library is included as a discretely presented component unit since a separately elected board of trustees governs it. No other legally separate entity qualifies as a component unit of the Village. Accounting System and Budgetary Control The accounts of the Village are organized on the basis of funds, each of which is considered a separate and distinct accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Revenues are allocated to and accounted for in individual funds based upon the purpose for which they are to be expended and the means by which spending activities are controlled. The accounting records for general governmental operations are maintained on the modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded when materials or services are received and the liability is incurred. Accounting records for the Village's enterprise funds, internal service funds, agency funds and pension trust fund are maintained on the accrual basis of accounting. Management of the Village is responsible for establishing and maintaining a system of internal accounting controls. These controls are designed to assure that the assets of the Village are safeguarded against any material loss, theft or misuse. These controls assure that the financial statements are in conformity with generally accepted accounting principles. Internal accounting controls are designed to provide reasonable, but not absolute, assurance that control objectives will be met. The concept of reasonable assurance recognizes that (1) the cost of control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits require estimates and judgment by Management. The annual budget serves as the foundation for the Village’s financial planning and control. State law requires that a municipality operating under the budget system adopt its annual budget prior to the start of its fiscal year. Through the budget, spending authority is conveyed by expenditure object. The legal level of budgetary control is the department level, or, where no departmental segregation of a fund exists, the fund level. Factors Affecting Financial Condition Economic Outlook. There are several measures of economic health for local governments. Four of the more objective measures or indicators are local employment levels, retail sales activity, family income levels and construction activity. Employment levels in the Village have always surpassed that of Lake and Cook Counties and the State of Illinois as a whole. As of April 30, 2009 the Village's unemployment rate was estimated to be 4.9%, compared to 8.1% for Lake County, 9.4% for the State of Illinois and 8.9% for the United States. The overall slowdown in the national and state economy continues to affect the surrounding local area and reduced the Village base sales tax revenue (which represents 1% of the total eligible sales) which, net of the Walgreen’s sales tax rebate, dropped approximately 6% from 2008. No significant retailers opened or closed during the year; however, Walgreen National continues to increase its activity from the prior years. Pursuant to a sales tax sharing agreement, 80% of the Village share of the sales tax received from them is rebated back. Median family income figures from the 2000 Census demonstrate that the average income of Deerfield residents far exceeds county and state averages. According to the Census Bureau, Deerfield's 2000 median family income was $118,683, compared to $76,424 for Lake County, $55,545 for the State of Illinois and $50,046 for the United States. This ranked Deerfield among the wealthiest communities in the State of Illinois. We presume that these numbers are significantly higher at the present time. New commercial and residential construction activity continued to slow compared to the prior year both in value and number of permits issued. In 2009 there were 1,086 total permits of all categories issued, with a building value estimated at $95.6 million. Much of this value was in commercial remodeling with some new single family residential. There were no new major commercial occupancies during the year. Foreclosure rates remained low, with approximately 35 to 40 single family homes in this status during the year. vi Long-term Financial Planning. The Village utilizes a 5 year Capital Improvement Program (“CIP”) to address major capital and infrastructure improvements. For a project to be included in the CIP, it must involve the creation or purchase of a tangible asset with an original cost of at least $25,000 and a useful life of more than one year. Projects that are programmed for the first year of the CIP (i.e., the upcoming budget year) are most closely scrutinized in the capital planning process because associated funding must be provided in that budget. The Village has primarily followed a “pay-as-you-go” funding strategy for maintenance and replacement of assets and has issued debt for new projects as necessary. Capital grants are sought at the state and local level for eligible projects. A new debt issuance of $5,000,000 was made in July, 2008 to finance capital improvements, primarily road reconstruction projects including water and sewer main replacement and the replacement of satellite sanitary sewer lift stations. Major Initiatives The Village continues to work on the design of the new wastewater treatment facility including financing options for an expected $25 million cost. The treatment process option was selected and work began in FY 2009 on the final design. As indicated above, construction began on the rebuilding of the satellite facilities pursuant to recommendations in the study. Construction should begin in late FY 2010 on the main treatment plant to be funded through loans from the state revolving loan fund and other local funds. As part of the regular budget planning process, Village staff has presented the Board with a capital projects program that will require significant expenditures over the next five year period. These projects include water and sewer main replacement along with road reconstruction. The Village Board has previously approved using General Fund unreserved balances for the initial funding of the program and implemented a home rule sales tax of 0.5% on January 1, 2005 to fund a portion of the program. For FY 2010, balances in the Infrastructure along with the home rule tax revenue will be used along with the remainder of the debt proceeds from the 2008 issue, state and federal grants and surplus distribution from the expired TIF District #2. Awards and Acknowledgments The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Deerfield for its comprehensive annual financial report for the fiscal year ended April 30, 2008. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report (CAFR) whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village of Deerfield has received a Certificate of Achievement for the last twenty-five years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA. In addition, the Village also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document dated May 1, 2008. In order to qualify for the Distinguished Budget Presentation Award, the Village’s budget document had to be judged proficient as a policy document, a financial plan, an operations guide and a communications device. The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the Department has my sincere appreciation for the contributions made in the preparation of this report. In particular, I would like to acknowledge the work of Eric Burk, Assistant Finance Director and Richard Jett, Accountant, for their efforts in continuing to efficiently administer the accounting systems of the Village. (MD&A) - 1 - VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2009 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 $546,972. Combined with other financing sources of $8,772, the April 30, 2009 fund balance decreased by $538,200. • New residential building activity continued to decline but was offset by an increase in commercial and non- profit remodeling. Total building permit revenue was $801,664 for the year, an increase of 23% from the prior year. • Revenue from both the State income tax and local hotel/motel tax were lower compared to the prior year, reflecting the overall negative economy. Hotel/motel tax revenue declined 17% to $1,746,051; 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 6% 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 $4,410,000 of general obligation debt during the year and issued $5,000,000 in new debt for capital expenditures. The total balance of debt outstanding as of April 30, 2009 was $6,775,000. • The Village terminated its second and last remaining tax increment financing district on December 31, 2008. Activity will continue to be reported through FY 2010 to provide for the distribution of remaining surplus funds pursuant to state statute. • The Project 29 fund was terminated at the end of the year and the remaining balance transferred to the Infrastructure Replacement Fund due to the completion of the project for which this fund was created. 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. Shared state sales tax, local hotel/motel tax and shared state income taxes finance the majority of VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A - 2 - these services. The Business-type Activities reflect private sector type operations (Water, Sewer, Refuse Disposal and Commuter Parking) where the charges for services typically cover all or most of the cost of operation, including depreciation. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Village uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the Village’s most significant funds rather than the Village as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for non-major funds is provided in the form of combining statements in a later section of this report. The Governmental Major Funds (see pages 6 – 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) and the insurance fund. Internal service 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. 20092008200920082009 2008 Current & Other Assets 39.3237.313.825.06 43.14 42.37 Capital Assets 63.8164.2424.0621.36 87.88 85.60 Total Assets 103.13101.5627.8926.42 131.02 127.97 Long-Term Liabilities 6.253.241.592.00 7.85 5.24 Other Liabilities 10.2210.851.932.12 12.15 12.97 Total Liabilities 16.4714.103.534.12 20.00 18.22 Net Assets: Investment in Capital Assets – Net of Related Debt 62.6260.2422.2919.18 84.91 79.42 Restricted 5.904.98-- 5.90 4.98 Unrestricted 18.1422.242.073.12 20.21 25.36 Total Net Assets 86.6687.4624.3622.30 111.02 109.78 The Village’s total primary government net assets increased by $1.26 million primarily due to an increase of $1.24 millions in infrastructure investment offset by net negative operating results in the General Fund and use of cash to invest in capital outlay. 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 2008200920082009 2008 Revenues: Program Revenues: Charges for Service 2.66 2.496.807.609.46 10.09 Operating Grants 0.49 0.52--0.49 0.52 Capital Grants 0.89 1.49-0.440.89 1.93 General Revenue: Property Taxes 7.00 6.51 0.810.787.81 7.29 Other Taxes 11.02 10.99--11.02 10.99 Transfers in (out) -3.13 -2.003.132.00- - Other 0.75 1.530.23 0.400.98 1.93 Total Revenue 19.67 21.5410.9711.2230.64 32.76 Expenses: General Government 5.23 4.57--5.23 4.57 Public Safety 7.72 7.23--7.72 7.23 Highways and Streets 7.32 4.45--7.32 4.45 Interest 0.22 0.21--0.22 0.21 Water - -3.996.223.99 6.22 Sewer - -3.042.743.04 2.74 Refuse - -1.591.521.59 1.52 Parking Lots - -0.280.210.28 0.21 Total Expense 20.48 16.468.9110.6929.38 27.15 Excess (Deficiency) before prior period adjust. -0.80 5.08 2.06 0.53 1.26 5.61 Changes in Net Assets -0.80 5.082.060.531.26 5.61 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A - 4 - CURRENT YEAR IMPACTS Governmental Activities Revenue In the General Fund, revenues exceeded budget by $0.04 million. Total sales taxes including home rule exceeded budget by $0.06 million and building permit revenue was $0.20 million over budget – both reflected a somewhat slower local economy. Investment income was below budget by $0.22 million due to a substantial drop in short term interest rates. Hotel/motel taxes were $0.25 million below budget due to economic conditions slowing demand for business travel which is the primary market for our local hotels. Property tax revenues increased by $0.49 million due primarily to growth in assessed value in the Tax Increment Financing District #2. In the Infrastructure Fund, taxes exceeded budget by $0.73 million due higher home rule sales taxes than expected. Expenses Actual expenditures in the General Fund ended the year at 98.5% of the final budget. Most departments and functions were similarly below the actual budget level except for: Highways and Streets (+$0.30 million to budget) due to the severe winter and much higher prices for road salt; Finance (+$0.17 million) due to higher than expected economic development payments; and Administration due to higher than expected litigation costs. 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. No transfers were made for capital projects from the General Fund. Business-type Activities Revenue A rate increase of 4.5% was implemented in May, 2008; water sales totaled $3.65 million, a decrease of $0.72 million or 16% from the prior year and 14.5% below budget. A much wetter than normal summer along with the loss of a substantial amount of use by the Village of Riverwoods led to the decline. Sewer user charges of $2.31 million were $0.09 million or 4% lower than the prior year; sewer rates were also increase 4.5% and the wetter summer affected this revenue. However, 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 revenue increased slightly from $0.213 million to $0.219. Expenses Operating expenses for the Water Fund decreased by $2.24 million or 29% primarily due to a decrease in capital outlay of $2.0 and lower wholesale water cost due to the reduced usage. Sewer Fund operating expenses increased by $0.28 million due primarily to increased maintenance costs associated with the wastewater treatment facility and collection system. Refuse Fund operating expenses increased by $0.07 due to the annual rate change from the contract hauler which takes place on January 1. FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS Governmental Funds At April 30, 2009, the governmental funds reported a combined fund balance of $24.4 million which is a 2.1% increase from the beginning of the year ($23.9 million). The increase is primarily due to the accumulation of surplus in the TIF 2 Fund and balances remaining in the debt proceeds account from the 2008 issue, offset by net loss in operations in the General Fund. Major Governmental Funds The General Fund is the Village’s primary operating fund and the largest source of day-to-day service delivery. The undesignated fund balance of the General Fund increased $1.24 from $14.9 to $16.2 million. The General fund cash balance of $15.1 million provides for 292 days of anticipated expenditures (FY 2010 budget). VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A - 5 - Revenues were slightly above the budget of $14.9 million. Expenditures were $0.23 million less than budget. This was due to lower than expected costs in all departments other than streets, where another unusually severe winter coupled with a drastic increase in ice control chemicals caused expenditures over budget. Also slightly over budget was Finance due to higher than anticipated economic development agreement payments to Walgreen National. State shared revenues, such as income taxes and use taxes, were slightly higher than anticipated at the beginning of the fiscal year but declined from the prior year due to overall economic conditions. State shared revenues account for only 13% of the General Fund total, which is somewhat higher than 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. General Fund Budget versus Actual Fiscal year ended April 30, 2009 (in millions) Original Amended BudgetBudgetActual Revenues Taxes 12.27 12.27 12.10 Intergovernmental 0.04 0.04 0.06 Other 2.60 2.60 2.80 Total 14.91 14.91 14.96 Expenditures & Transfers Expenditures 15.74 15.74 15.50 Other Uses - - - Transfers – Net - - - Total 15.74 15.74 15.50 Change in Fund Balance -0.83 -0.83 -0.54 In the Tax Increment Financing District #2, the major source of revenue, increment property tax, was up 9.3% to $4.95 million. This district was terminated early on December 31, 2008 and will receive one more year of property tax revenue (2008 taxes payable in 2009). Expenses for the year were minimal and remaining balances will be distributed pursuant to state statute in FY 2010. In the Infrastructure Fund, total revenue increased 104% to $6.34 million due to grant revenue of $0.80 million and bond proceeds of $4.53 million. There were no transfers in from the General Fund. Expenditures for capital improvements increased $4.43 million or 293% due to an increased number of scheduled projects. 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 $0.61 million due to the loss of sales to the Village of Riverwoods and a wetter than normal year. Actual operating expenses excluding depreciation were 81% of budget due to lower wholesale water purchased and expenses generally below budget in other areas. The Sewerage Fund operating expense excluding depreciation exceeded operating revenue by $0.52 million. Lower than expected personnel costs and delayed 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 likely use a new debt issuance or other borrowing Internal Service Funds The Village’s combined internal service funds’ net assets were $5.4 million as of April 30, 2009, with $5.2 million of the total accumulated for major equipment purchases in the Vehicle and Equipment Replacement Fund. Total revenue exceeded expenses by $0.03 in the Garage Fund due to lower personnel costs and an increased charge rate 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, 2009 was $63.8 million. The Village’s investment in capital assets, net of accumulated depreciation, for VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A - 6 - business-type activities as of April 30, 2009 was $24.1 million. Major capital asset events during the current fiscal year included installation of new water and sewer mains. 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 $6.78 million. $5.0 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 water sales revenues. $5.0 million in new general obligation debt was issued during the current year. As a home rule government, under Illinois law, the Village has no legal debt limit. As of April 30, 2009 the total Village debt represented 0.44% 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 2008. 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 reached the local Village micro-economy this year 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 12% of total revenue in FY 2008 to 13% in FY 2009. Neither major retail area of the Village lost any major tenants during the year which helped to pare 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 $0.36 million or 17% from last year. All of the Village’s six hotels have remained open during the year. The continued strength of the local corporate employment provides a base level of demand for rooms which is the primary market for these hotels. Contacting the Village’s Financial Management This financial report is designed to provide a general overview of the Village’s finances, comply with finance-related laws and regulations and demonstrate the Village’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the Village’s Finance Director, 850 Waukegan Road, Deerfield, IL 60015 or access the Village website at www.deerfield.il.us. Component Unit Governmental Business-Type Deerfield Activities Activities Total Public Library ASSETS Cash and investments 25,563,374$ 1,906,515$ 27,469,889$ 3,880,229$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 7,022,140 757,188 7,779,328 2,586,000 Accounts 1,049,443 831,805 1,881,248 - Accrued interest 49,263 4,485 53,748 - In ventory 126,977 202,500 329,477 - Due from other governments 2,437,491 - 2,437,491 22,285 Prepaid expenses 438,909 - 438,909 8,820 Land held for resale 1,582,087 - 1,582,087 - Deferred charges 66,407 118,876 185,283 - Net pension asset 982,318 - 982,318 - Capital assets not being depreciated 19,605,293 3,997,882 23,603,175 199,173 Capital assets (net of accumulated depreciation)44,208,643 20,066,617 64,275,260 165,199 Total assets 103,132,345 27,885,868 131,018,213 6,861,706 LIABILITIES Accounts payable 1,932,778 552,148 2,484,926 71,822 Accrued payroll 405,846 64,413 470,259 55,655 Retainage payable 312,976 - 312,976 - Deposits payable 8,602 16,526 25,128 - Other payables 2,541 - 2,541 - Accrued interest payable 80,480 23,900 104,380 - Unearned revenues 7,163,548 808,950 7,972,498 2,756,250 Noncurrent liabilities Due within one year 314,668 465,871 780,539 52,202 Due in more than one year 6,251,712 1,593,408 7,845,120 64,243 Total liabilities 16,473,151 3,525,216 19,998,367 3,000,172 NET ASSETS In vestment in capital assets, net of related debt 62,619,244 22,289,499 84,908,743 364,372 Restricted for Maintenance of roadways 499,632 - 499,632 - Public safety 1,089,746 - 1,089,746 - Economic development 3,837,808 - 3,837,808 - Debt service 472,761 - 472,761 - Culture and recreation - - - 3,497,162 Unrestricted 18,140,003 2,071,153 20,211,156 - TOTAL NET ASSETS 86,659,194$ 24,360,652$ 111,019,846$ 3,861,534$ Primary Government VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF NET ASSETS April 30, 2009 See accompanying notes to financial statements. - 3 - Operating Capital Charges Grants and Grants and FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities General government 5,228,097$ 1,645,678$ -$ -$ Public safety 7,715,014 956,468 1,210 12,812 Highways and streets 7,317,060 59,609 489,558 881,733 Interest 215,464 - - - Total governmental activities 20,475,635 2,661,755 490,768 894,545 Business-Type Activities Water 3,993,964 3,647,017 - - Sewerage 3,040,082 2,306,028 - - Refuse disposal 1,590,167 623,738 - - Commuter parking lot 282,534 218,770 - - Total business-type activities 8,906,747 6,795,553 - - TOTAL PRIMARY GOVERNMENT 29,382,382$ 9,457,308$ 490,768$ 894,545$ COMPONENT UNIT Deerfield Public Library 2,667,932$ 76,616$ 22,460$ -$ Program Revenues VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended April 30, 2009 - 4 - Component Unit Deerfield Governmental Business-Type Public Activities Activities Total Library (3,582,419)$ -$ (3,582,419)$ -$ (6,744,524) - (6,744,524) - (5,886,160) - (5,886,160) - (215,464) - (215,464) - (16,428,567) - (16,428,567) - - (346,947) (346,947) - - (734,054) (734,054) - - (966,429) (966,429) - - (63,764) (63,764) - - (2,111,194) (2,111,194) - (16,428,567) (2,111,194) (18,539,761) - - - - (2,568,856) General Revenues Taxes Property 6,999,898 807,708 7,807,606 2,624,687 Replacement 93,921 - 93,921 86,835 Sales 4,438,194 - 4,438,194 - Home rule sales 2,448,385 - 2,448,385 - Income 1,678,335 - 1,678,335 - Local use 259,932 - 259,932 - Hotel/motel 1,746,051 - 1,746,051 - Simplified telecommunications 347,666 - 347,666 - Investment income 486,398 49,427 535,825 57,458 Miscellaneous 260,971 185,262 446,233 30,945 Transfers in (out)(3,132,729) 3,132,729 - - Total 15,627,022 4,175,126 19,802,148 2,799,925 CHANGE IN NET ASSETS (801,545) 2,063,932 1,262,387 231,069 NET ASSETS, MAY 1 87,460,739 22,296,720 109,757,459 3,630,465 NET ASSETS, APRIL 30 86,659,194$ 24,360,652$ 111,019,846$ 3,861,534$ Primary Government Net (Expense) Revenue and Change in Net Assets See accompanying notes to financial statements. - 5 - Tax Increment Infrastructure Financing Debt Nonmajor General Replacement District 2 Service Governmental Total Cash and investments 15,095,116$ 1,702,872$ 2,249,695$ 471,845$ 2,144,478$ 21,664,006$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 1,846,430 42,112 5,133,598 - - 7,022,140 Accounts 337,479 628,714 - - 82,548 1,048,741 Accrued interest 27,273 3,153 6,026 916 5,163 42,531 Due from other governments 2,180,565 220,143 - - 36,783 2,437,491 Inventory 14,215 - - - - 14,215 Prepaid items 438,909 - - - - 438,909 Land held for resale - - 1,582,087 - - 1,582,087 TOTAL ASSETS 19,939,987$ 2,596,994$ 8,971,406$ 472,761$ 2,268,972$ 34,250,120$ LIABILITIES Accounts payable 934,024$ 983,311$ -$ -$ 7,015$ 1,924,350$ Accrued payroll 400,917 - - - - 400,917 Deposits payable 8,602 - - - - 8,602 Retainage payable - 312,976 - - - 312,976 Other payables 2,541 - - - - 2,541 Deferred property taxes 1,984,950 45,000 5,133,598 - - 7,163,548 Total liabilities 3,331,034 1,341,287 5,133,598 - 7,015 9,812,934 FUND BALANCES Reserved for inventory 14,215 - - - - 14,215 Reserved for prepaid items 438,909 - - - - 438,909 Reserved for debt service - - - 472,761 - 472,761 Reserved for maintenance of roadways - - - - 499,632 499,632 Reserved for public safety - - - - 1,089,746 1,089,746 Reserved for economic development - - 2,255,721 - - 2,255,721 Reserved for land held for resale - - 1,582,087 - - 1,582,087 Unreserved Undesignated - General Fund 16,155,829 - - - - 16,155,829 Undesignated - Capital Projects Funds - 1,255,707 - - 672,579 1,928,286 Total fund balances 16,608,953 1,255,707 3,837,808 472,761 2,261,957 24,437,186 TOTAL LIABILITIES AND FUND BALANCES 19,939,987$ 2,596,994$ 8,971,406$ 472,761$ 2,268,972$ 34,250,120$ LIABILITIES AND FUND BALANCES VILLAGE OF DEERFIELD, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS April 30, 2009 ASSETS See accompanying notes to financial statements. - 6 - FUND BALANCES OF GOVERNMENTAL FUNDS 24,437,186$ 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 63,813,936$ Less internal service funds (1,404,219)62,409,717 Discount on bonds issued and issuance costs are capitalized and amortized on the statement of net assets 66,407 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Bonds payable (5,000,000) Other postemployment benefit payable (169,700) Compensated absences (1,396,680) Less internal service funds (24,714)(1,371,966) Accrued interest on long-term liabilities is shown as a liability on the statement of net assets (80,480) The net pension assets of the police pension fund are included in the governmental activities in the statement of net assets 982,318 The net assets of the internal service fund are included in the governmental activities in the statement of net assets 5,385,712 NET ASSETS OF GOVERNMENTAL ACTIVITIES 86,659,194$ April 30, 2009 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, 2009 Tax Increment Infrastructure Financing Debt Nonmajor General Replacement District 2 Service Governmental Total REVENUES Taxes 12,095,991$ 968,127$ 4,948,264$ -$ -$ 18,012,382$ Licenses and permits 1,271,817 - - - - 1,271,817 Intergovernmental 60,394 799,534 - - 489,558 1,349,486 Charges for services 316,503 - - - 410,942 727,445 Fines and forfeits 251,680 - - - - 251,680 Investment income 302,941 33,943 73,026 10,489 65,999 486,398 Miscellaneous 658,776 - - - 40,063 698,839 Total revenues 14,958,102 1,801,604 5,021,290 10,489 1,006,562 22,798,047 EXPENDITURES Current General government 5,156,342 - - - - 5,156,342 Public safety 7,412,526 - - - 243,807 7,656,333 Highways and streets 2,936,206 - - - 600,000 3,536,206 Capital outlay - 6,726,719 8,965 - - 6,735,684 Debt service Principal retirement - - - 4,000,000 - 4,000,000 Interest and fiscal charges - - - 184,939 - 184,939 Total expenditures 15,505,074 6,726,719 8,965 4,184,939 843,807 27,269,504 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (546,972) (4,925,115) 5,012,325 (4,174,450) 162,755 (4,471,457) OTHER FINANCING SOURCES (USES) Proceeds from bonds issued, at par - - - - 5,000,000 5,000,000 Discount on bonds issued - - - - (30,867) (30,867) Transfers in - 4,543,295 - 4,086,500 - 8,629,795 Transfers (out)- - (4,086,500) - (4,543,295) (8,629,795) Sale of capital assets 8,772 - - - - 8,772 Total other financing sources (uses)8,772 4,543,295 (4,086,500) 4,086,500 425,838 4,977,905 NET CHANGE IN FUND BALANCES (538,200) (381,820) 925,825 (87,950) 588,593 506,448 FUND BALANCES, MAY 1 17,147,153 1,637,527 2,911,983 560,711 1,673,364 23,930,738 FUND BALANCES, APRIL 30 16,608,953$ 1,255,707$ 3,837,808$ 472,761$ 2,261,957$ 24,437,186$ See accompanying notes to financial statements. - 8 - NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 506,448$ 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 1,859,202$ Less internal service funds (278,961)1,580,241 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 4,000,000 The issuance of bonds is reported as an other financing source on the governmental funds income statement Bond proceeds at par (5,000,000) Discount on bonds issued 30,867 The increase in interest payable is reported as an increase in expense on the statement of activities (66,065) The increase in bond issuance costs is reported as a reduction of expense on the statement of activities 35,540 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 (2,141,826) Less internal service funds 207,783 (1,934,043) The loss on disposal of capital assets for road reconstruction increases the highways and streets expense on the statement of activities (146,629) The decrease in compensated absences is reported as a reduction to expense on the statement of activities (95,035) The increase in the other postemployment benefit payable is reported as an addition to expense on the statement of activities (81,800) The decrease in net pension asset is reported as an addition to expense on the statement of activities (14,136) The change in net assets of certain activities of internal service funds is in governmental funds 383,067 CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES (801,545)$ For the Year Ended April 30, 2009 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, 2009 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service CURRENT ASSETS Cash and investments 549,849$ 459,943$ 214,099$ 682,624$ 1,906,515$ 3,899,368$ Receivables Property taxes - - 757,188 - 757,188 - Accounts - billed 81,629 80,971 19,347 - 181,947 702 Accounts - unbilled 329,722 223,219 96,917 - 649,858 - Accrued interest 1,310 970 809 1,396 4,485 6,732 Inventory 190,950 11,550 - - 202,500 112,762 Total current assets 1,153,460 776,653 1,088,360 684,020 3,702,493 4,019,564 NONCURRENT ASSETS Deferred bond issuance costs 118,876 - - - 118,876 - Total noncurrent assets 118,876 - - - 118,876 - CAPITAL ASSETS Nondepreciable 1,877,956 2,042,426 - 77,500 3,997,882 - Depreciable 17,008,413 7,775,053 - 1,950,831 26,734,297 3,040,645 Accumulated depreciation (3,494,431) (2,452,341) - (720,908) (6,667,680) (1,636,426) Net capital assets 15,391,938 7,365,138 - 1,307,423 24,064,499 1,404,219 Total assets 16,664,274 8,141,791 1,088,360 1,991,443 27,885,868 5,423,783 CURRENT LIABILITIES Accounts payable 186,749 240,346 119,627 5,426 552,148 8,428 Accrued payroll 22,074 41,678 - 661 64,413 4,929 Deposits payable 10,397 6,129 - - 16,526 - Accrued interest payable 23,900 - - - 23,900 - Unearned property taxes - - 808,950 - 808,950 - Compensated absences payable 11,021 29,063 - 787 40,871 2,471 Current portion of general obligations bonds payable 425,000 - - - 425,000 - Total current liabilities 679,141 317,216 928,577 6,874 1,931,808 15,828 LONG-TERM LIABILITIES Compensated absences payable 99,191 121,735 - 7,082 228,008 22,243 Other postemployment benefit payable 9,300 6,100 - - 15,400 - General obligation bonds payable 1,350,000 - - - 1,350,000 - Total long-term liabilities 1,458,491 127,835 - 7,082 1,593,408 22,243 Total liabilities 2,137,632 445,051 928,577 13,956 3,525,216 38,071 NET ASSETS Invested in capital assets, net of related debt 13,616,938 7,365,138 - 1,307,423 22,289,499 1,404,219 Unrestricted 909,704 331,602 159,783 670,064 2,071,153 3,981,493 TOTAL NET ASSETS 14,526,642$ 7,696,740$ 159,783$ 1,977,487$ 24,360,652$ 5,385,712$ 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, 2009 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service OPERATING REVENUES Charges for services 3,647,017$ 2,306,028$ 623,738$ 218,770$ 6,795,553$ 981,886$ Miscellaneous 131,599 47,406 6,257 - 185,262 12,569 Total operating revenues 3,778,616 2,353,434 629,995 218,770 6,980,815 994,455 OPERATING EXPENSES Administration 502,543 419,885 - - 922,428 - Operations 3,040,872 2,450,866 1,590,167 255,796 7,337,701 379,345 Commodities - - - - - 142,166 Total operating expenses 3,543,415 2,870,751 1,590,167 255,796 8,260,129 521,511 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 235,201 (517,317) (960,172) (37,026) (1,279,314) 472,944 Depreciation 359,230 169,331 - 26,738 555,299 207,783 OPERATING INCOME (LOSS)(124,029) (686,648) (960,172) (63,764) (1,834,613) 265,161 NONOPERATING REVENUES (EXPENSES) Investment income 15,222 9,263 9,019 15,923 49,427 76,906 Property taxes - - 807,708 - 807,708 - Gain on disposal of capital assets - - - - - 41,000 Interest expense (91,319) - - - (91,319) - Total nonoperating revenues (expenses)(76,097) 9,263 816,727 15,923 765,816 117,906 INCOME (LOSS) BEFORE CONTRIBUTIONS (200,126) (677,385) (143,445) (47,841) (1,068,797) 383,067 CONTRIBUTIONS 381,692 2,751,037 - - 3,132,729 - CHANGE IN NET ASSETS 181,566 2,073,652 (143,445) (47,841) 2,063,932 383,067 NET ASSETS, MAY 1 14,345,076 5,623,088 303,228 2,025,328 22,296,720 5,002,645 NET ASSETS, APRIL 30 14,526,642$ 7,696,740$ 159,783$ 1,977,487$ 24,360,652$ 5,385,712$ 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, 2009 Governmental Activities Nonmajor Enterprise Total Internal Water Sewer Refuse (Parking Lot)Enterprise Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 3,721,571$ 2,388,892$ 626,058$ 218,770$ 6,955,291$ -$ Receipts from interfund services - - - - - 982,612 Receipts from miscellaneous revenues 131,599 47,406 6,257 - 185,262 12,569 Payments to suppliers (2,678,256) (1,261,634) (1,484,281) (223,510) (5,647,681) (285,415) Payments to employees (949,975) (1,581,668) (58,642) (26,027) (2,616,312) (219,447) Payments for interfund services (75,854) (115,308) (49,640) (2,543) (243,345) - Net cash from operating activities 149,085 (522,312) (960,248) (33,310) (1,366,785) 490,319 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes - - 803,979 - 803,979 - Net cash from noncapital financing activities - - 803,979 - 803,979 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - - - - - 41,000 Capital assets purchased - (125,731) - - (125,731) (278,961) Bond principal payments (410,000) - - - (410,000) - Bond interest payments (68,219) - - - (68,219) - Net cash from capital and related financing activities (478,219) (125,731) - - (603,950) (237,961) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 16,078 12,124 9,916 16,467 54,585 79,216 Net cash from investing activities 16,078 12,124 9,916 16,467 54,585 79,216 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (313,056) (635,919) (146,353) (16,843) (1,112,171) 331,574 CASH AND CASH EQUIVALENTS, MAY 1 862,905 1,095,862 360,452 699,467 3,018,686 3,567,794 CASH AND CASH EQUIVALENTS, APRIL 30 549,849$ 459,943$ 214,099$ 682,624$ 1,906,515$ 3,899,368$ 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, 2009 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)(124,029)$ (686,648)$ (960,172)$ (63,764)$ (1,834,613)$ 265,161$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation and amortization 359,230 169,331 - 26,738 555,299 207,783 (Increase) decrease in Receivables 74,554 82,864 2,320 - 159,738 726 Inventories (69,869) 3,729 - - (66,140) 14,899 Increase (decrease) in Accounts payable (86,548) (124,796) (2,396) 3,591 (210,149) (1,943) Deposits payable 2,675 3,375 - - 6,050 - Retainage payable (26,675) - - - (26,675) - Accrued payroll 2,519 8,854 - 11 11,384 (233) Other postemployment benefit payable 8,800 2,300 - - 11,100 - Compensated absences payable 8,428 18,679 - 114 27,221 3,926 NET CASH FROM OPERATING ACTIVITIES 149,085$ (522,312)$ (960,248)$ (33,310)$ (1,366,785)$ 490,319$ NONCASH TRANSACTIONS Contributions of capital assets by other funds 381,692$ 2,751,037$ -$ -$ 3,132,729$ -$ TOTAL NONCASH TRANSACTIONS 381,692$ 2,751,037$ -$ -$ 3,132,729$ -$ Business-Type Activities See accompanying notes to financial statements. - 13 - Pension Agency Trust Fund Funds ASSETS Cash and cash equivalents 204,479$ 1,221,375$ Investments U.S. Treasury obligations 7,703,151 - U.S. agencies securities 2,742,432 - Mutual funds 9,943,108 - Municipal bonds 1,297,642 - Negotiable certificates of deposit 192,007 - Receivables Accrued interest 118,873 151 Total assets 22,201,692 1,221,526$ LIABILITIES Accounts payable 9,285 6,343$ Deposits payable - 1,157,416 Other payables - 57,767 Total liabilities 9,285 1,221,526$ NET ASSETS HELD IN TRUST FOR PENSION BENEFITS 22,192,407$ VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS April 30, 2009 See accompanying notes to financial statements. - 14 - ADDITIONS Contributions - employer 843,209$ Contributions - employee 359,491 Total contributions 1,202,700 Investment income Net appreciation (depreciation) in fair value of investments (4,468,252) Interest earned on investments 612,966 Total investment income (3,855,286) Less investment expense (1,505) Net investment income (3,856,791) Total additions (2,654,091) DEDUCTIONS Benefits and refunds Pension payments 1,403,226 Separation refunds 40,165 Administrative 8,364 Total deductions 1,451,755 NET INCREASE (4,105,846) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1 26,298,253 April 30 22,192,407$ VILLAGE OF DEERFIELD, ILLINOIS PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended April 30, 2009 See accompanying notes to financial statements. - 15 - -16 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS April 30, 2009 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 the PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determinat io n of contribution levels. Alt hough it possesses many of the characterist ics of a legally separate government, the PPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensio ns of the Village’s police emplo yees and because of the fiduciary nature of such activit ies. The PPERS is reported as a pensio n t rust 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 municipalit ies. 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 transactio 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 pronouncement s 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 for 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. Go vernmental 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 meeting 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 Debt Service Fund accounts for the accumulatio n of resources for the payment of general lo ng-term debt. 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 holds 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 of 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 directly 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. Expenditures are recorded when the related fund liabilit y is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the 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 Presentatio n (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 stat e 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 legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the Village has a legal claim to the resources, the 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, 2009 fo r debt and equity securities. f.Short -Term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “due from other funds”or “due to other funds”on the balance sheet. Short -term 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 government al 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 issuance 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 perio d. 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 management 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. For the year ended April 30, 2009, no net asset restrictions 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 trust 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 (corporate 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 securit ie s (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, 2009: Investment Maturities (in Years) Fair Greater than Value Less than 1 1-5 6-10 10 U.S. agency obligations $5,882,895 $1,285,921 $1,839,276 $2,757,698 $- Municipal obligations 506,065 -506,065 -- Illinois Funds 21,428,761 21,428,761 --- TOTAL $27,817,721 $22,714,682 $2,345,341 $2,757,698 $- 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 investme nt 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 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 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 are not subject to custodial credit risk. 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 depository 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 nt s and maturit ie s of the Police Pensio n Fund’s debt securit ie s as of April 30, 2009: Investment Maturities (in Years) Fair Greater than Value Less than 1 1-5 6-10 10 U.S. agency obligations $2,742,432 $1,785 $1,028,945 $-$1,711,702 U.S. Treasury obligations 7,703,150 -1,677,533 -6,025,617 Municipal bonds 1,297,642 -475,746 551,185 270,711 Illinois Funds 204,479 204,479 --- Negotiable certificates of deposit 192,007 192,007 --- TOTAL $12,139,710 $398,271 $3,182,224 $551,185 $8,008,030 In accordance with its invest me nt po licy, 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 invest me 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 its par value upon maturity, by primarily investing in obligat io ns guaranteed by the United States Government or securit ies issued by agencies of the United States Government that are explicitly or implicit ly guaranteed by t he United States Government. The U.S. agency obligat io ns are rated by Moody’s AAA and the municipal bonds are rated between A2 and AA1. Illino is Funds is rated AAA by Standard and Poor’s. The investment policy is silent on minimum rat ings 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 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 investme 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 2008 attach as an enforceable lien on January 1, 2008 on property values assessed as of the same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy Ordinance). Tax bills are prepared by the County and issued on or about February 1, 2009 and August 1, 2009 and are payable in two installments, on or about March 1, 2009 and September 1, 2009. The County co llects such taxes and remits them periodically. The 2009 tax levy, which attached as an enforceable lien on property as of January 1, 2009, has not been recorded as a receivable as of April 30, 2009 as the tax has not yet been levied by the Village and will not be levied unt il D ecember 2009 and, therefore, the levy is not measurable at April 30, 2009. 4.CAPITAL ASSETS Capital asset activit y fo r the year ended April 30, 2009 was as follows: Beginning Balance Increases Decreases Ending Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $3,009,921 $-$-$3,009,921 Land right of way 16,180,188 --16,180,188 Construction in progress 75,480 415,184 75,480 415,184 Total capital assets not being depreciated 19,265,589 415,184 75,480 19,605,293 Capital assets being depreciated Buildings and improvements 12,232,033 12,232,033 Vehicles, machinery and equipment 2,978,810 278,961 185,866 3,071,905 Infrastructure 89,229,401 1,240,537 1,121,629 89,348,309 Total capital assets being depreciated 104,440,244 1,519,498 1,307,495 104,652,247 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 $1,932,436 $291,343 $-$2,223,779 Vehicles, machinery and equipment 1,619,199 210,909 185,866 1,644,242 Infrastructure 55,911,009 1,639,574 975,000 56,575,583 Total accumulated depreciation 59,462,644 2,141,826 1,160,866 60,443,604 Total capital assets being depreciated, net 44,977,600 (622,328)146,629 44,208,643 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $64,243,189 $(207,144)$222,109 $63,813,936 BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $1,955,456 $-$-$1,955,456 Construction in progress 270,052 1,955,868 183,494 2,042,426 Total capital assets not being depreciated 2,225,508 1,955,868 183,494 3,997,882 Capital assets being depreciated Buildings and improvements 7,505,294 765,109 252,573 8,017,830 Parking lot improvements 1,950,830 --1,950,830 Vehicles, machinery and equipment 595,397 --595,397 Water distribution system 11,888,262 515,069 170,437 12,232,894 Sanitary sewer system 3,731,436 205,909 -3,937,345 Total capital assets being depreciated 25,671,219 1,486,087 423,010 26,734,296 Less accumulated depreciation for Buildings and improvements 2,881,861 178,193 252,573 2,807,481 Parking lot improvements 694,170 26,738 -720,908 Vehicles, machinery and equipment 548,636 8,323 -556,959 Water distribution system 1,509,664 259,070 170,437 1,598,297 Sanitary sewer system 901,059 82,975 -984,034 Total accumulated depreciation 6,535,390 555,299 423,010 6,667,679 Total capital assets being depreciated, net 19,135,829 930,788 -20,066,617 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $21,361,337 $2,886,656 $183,494 $24,064,499 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 117,236 Highways and streets, including depreciation of general infrastructure assets 1,866,535 DEPRECIATION EXPENSE -GOVERNMENTAL ACTIVITIES $2,141,826 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 emplo yees 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 t he IPBC beyond its representation on the Board of Directors. Municipal Insurance Cooperative Agency (MICA) The Village participates in the Municipal Insurance Cooperative Agency (MICA). MICA is a public ent it y r isk 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 co verage ($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 1998 ($17,000,000 dated April 15, 1998; maturing October 1, 2008; payable in annual installments; interest rates from 4.20% to 4.35%) Debt Service**$4,000,000 $-$4,000,000 $-$- 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*2,185,000 -410,000 1,775,000 425,000 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 $-$5,000,000 $175,000 TOTAL $6,185,000 $5,000,000 $4,410,000 $6,775,000 $600,000 The $17,000,000 in General Obligat io n Bonds, Series 1998, was authorized for the purpose of downtown redevelopment. The bond issue is a general obligatio n bond issue; however, it is being repaid fro m T ax Incremental District 2 funds. 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 abates the tax levy on this bond issue annually. The debt is being retired by transfers from the Tax Incremental Finance District 2 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 2010 $175,000 $193,150 $368,150 $425,000 $57,365 $482,365 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 $5,000,000 $2,371,445 $7,371,445 $1,775,000 $149,592 $1,924,592 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 $4,000,000 $5,000,000 $4,000,000 $5,000,000 $175,000 Compensated absences (Governmental)General 1,276,931 237,217 142,182 1,371,966 137,197 Compensated absences (Internal Service)Garage 20,788 6,005 2,079 24,714 2,471 Other postemployment benefit General 87,900 183,400 101,600 169,700 - TOTAL GOVERNMENTAL ACTIVITIES $5,385,619 $5,426,622 $4,245,861 $6,566,380 $314,668 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 $2,185,000 $-$410,000 $1,775,000 $425,000 Compensated absences (Enterprise) Water/Sewer/ Parking 241,658 51,386 24,165 268,879 40,871 Other postemployment benefit Water/Sewer 4,300 18,900 7,800 15,400 - TOTAL BUSINESS-TYPE ACTIVITIES $2,430,958 $70,286 $441,965 $2,059,279 $465,871 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 Illino is 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 of 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, 2009, 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. 7.INTERFUND ASSETS/LIABILITIES Interfund Transfers Transfers From Transfers To Amount Tax Increment Financing District 2 Debt Service $4,086,500 Nonmajor Governmental Infrastructure Replacement 4,543,295 TOTAL $8,629,795 The purpose of significant transfers to/from other funds is as follo ws: ·$4,086,500 transferred fro m t he Tax Increment Financing District 2 Fund to the Debt Service Fund for the debt service payment on the General Obligat io n Bonds, Series 1998, which were issued to fund improvements in the Village Center TIF District.The amount will not be repaid. ·$4,543,295 transferred fro m t he Nonmajor Governmental Funds to the Infrastructure Replacement Fund consists of $4,333,113 from the Bond Proceeds Fund to provide addit io nal funding needed to complete budgeted capital projects and $210,182 from the Project 29 Fund fo r excess funds remaining after complet io n of a project. ·$3,132,729 of capital assets were contributed by the governmental activities (Infrastructure Replacement Fund) to the business-type act ivit ies and recorded as transfers on the statement of activit ies. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -36 - 8.COMMITMENTS High-Level Excess Liabilit y Pool (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 3.65%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 constitute a liability 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 Co operation 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 SWALCO 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. The Village made no payments to SWALCO for the year ended April 30, 2009 and no future payments are expected. Complete financial statements can be obtained from the Solid Waste Agency o f Lake County, 1300 N. Skokie Highway, Suite 103, Gurnee, Illino is 60031. The Village does not have an equit y int erest in SWALCO at April 30, 2009. 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, 2008, membership consisted of: Retirees and beneficiaries current ly receiving benefits 32 Terminated employees ent it led to benefit s but not yet receiving them - Act ive emplo yees 108 TOTAL 140 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 2009 was as fo llo ws (informat io n fo r the third preceding year is no t available as an actuarial valuation was performed for the first time as of May 1, 2007): Fiscal Year Ended Annual OPEB Cost Employer Contribut io ns Percentage of Annual OPEB Cost Contributed Net OPEB Obligat io n April 30, 2008 $193,800 $101,600 52.4%$92,200 April 30, 2009 202,300 109,400 54.1%185,100 The net OPEB obligat io n as of April 30, 2009, was calculated as fo llo ws: Annual required contribut io n $202,300 Interest on net OPEB obligation - Ad just me nt to annual required contribution - Annual OPEB cost 202,300 Contribut io ns made 109,400 Increase in net OPEB obligat io n 92,900 Net OPEB obligat io n beginning of year 92,200 NET OPEB OBLIGATION END OF YEAR $185,100 Funded Status and Funding Progress: The funded status of the plan as of April 30, 2009, was as fo llo ws: Actuarial accrued liabilit y (AAL)$2,642,100 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL)2,642,100 Funded ratio (actuarial value of p lan assets/AAL)0% Covered payroll (act ive plan members)$8,254,700 UAAL as a percentage of covered payro ll 32.0% 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 a n 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 wit h past expectations and new est imates are made about the future. The schedule of fu nding 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 emplo yer and plan members) and include the types of be nefits 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, 2008, actuarial valuation, the entry-age normal actuarial cost method was used. The actuarial a ssumpt io ns included no investment rate of return and an init ial healthcare cost trend rate of 10.0% with an ult imate healthcare 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 , 2008, 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 posit io ns 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 contribut e 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, 2008 was 11.55%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 Pension 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, 2009, 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 3 Current emp lo yees Vested 25 Nonvested 12 TOTAL 67 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 Illino is Compiled Statutes. The Police Pensio n P la n provides retirement benefits as well as death and disabilit y 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 fir st anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3%of the original pension and 3%compounded interest annually thereafter. 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, 2009 was 23.24% 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 emplo yee 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: Investments (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 Pension 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, 2006 April 1, 2008 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 24 Years, Closed 25 Years, Closed VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -44 - 12.EMPLOYEE RETIREMENT SYSTEMS (Continued) c.Annual Pensio n Cost (Continu ed) 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 11.60%5.50% increases -seniority/mer it d)Post retirement 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)2007 $674,312 $666,099 2008 699,397 710,955 2009 778,342 857,345 Actual contribution 2007 $674,312 $654,414 2008 699,397 698,335 2009 778,342*843,209 Percentage of APC contributed 2007 100.00%98.25% 2008 100.00%98.22% 2009 100.00%98.35% NPO (asset)2007 $-$(1,009,074) 2008 -(996,454) 2009 -(982,318) *Of this amount, $634,616 (81.53%) was contributed by the Village and $143,726 (18.47%) 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, 2009 are as fo llo ws: Annual required contribution $843,209 Interest on net pension obligation (asset)(77,225) Adjustment to annual required contribution 91,361 Annual pension cost 857,345 Contributions made 843,209 Increase in net pension obligation 14,136 Net pension obligation (asset) beginning of year (996,454) NET PENSION OBLIGATION (ASSET) END OF YEAR $(982,318) Funded Status and Funding Progress: The funded status of t he plans as of April 30, 2008 (most recent data available)were as fo llo ws. The actuarial assumptions used to determine the funded status of the Police Pension Plan are the same actuarial assumptions used to determine the employer APC of the plan as disclosed in Note 12.d. Illinois Municipal Retirement* Police Pension Actuarial accrued liability (AAL)$15,152,271 $34,968,811 Actuarial value of plan assets 8,049,486 27,864,349 Unfunded actuarial accrued liability (UAAL)7,102,785 7,104,462 Funded ratio (actuarial value of plan assets/AAL)53.12%79.68% Covered payroll (active plan members)$6,738,890 $3,192,147 UAAL as a percentage of covered payroll 105.40%222.56% *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, 2008. The Pensio n Fund experienced significant decline in the fair value (actuarial value) of assets for the year ended April 30, 2009, which is not reflected in these funded ratios. 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, 2009, the Village has accrued an estimated rebate liabilit y o f $666,282 fo r amounts collected by the state through Apr il 30, 2009 but not yet paid to the commercial entit y. To date, the Village has paid $3,646,597 to the commercial entit y.The agreement has no stated maximum. 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY a.Summary Financial Informat io n The follo wing is summary fund financial informat ion for the Deerfield Public Library (the Library) for the fiscal year ended April 30, 2009: General Adjustments Statement of Net Assets ASSETS Cash and investments $3,880,229 $-$3,880,229 Receivables Property taxes 2,586,000 -2,586,000 Due from other governments 22,285 -22,285 Prepaid expenses 8,820 -8,820 Capital assets, net of accumulated depreciation -364,372 364,372 Total assets 6,497,334 364,372 6,861,706 LIABILITIES Accounts payable 71,822 -71,822 Accrued payroll 55,655 -55,655 Deferred property taxes 2,756,250 -2,756,250 Compensated absences payable/OPEB -116,445 116,445 Total liabilities 2,883,727 166,445 3,000,172 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 $19,485 $(19,485)$- Undesignated 3,594,122 (3,594,122)- Net assets Invested in capital assets, net of related debt -364,372 364,372 Unr estricted -3,497,162 3,497,162 TOTAL FUND BALANCES/ NET ASSETS $3,613,607 $247,927 $3,861,534 General Adjustments Statement of Act ivities REVENUES Property taxes $2,624,687 $-$2,624,687 Replacement taxes 86,835 -86,835 Intergovernmental 22,460 -22,460 Charges for services 76,616 -76,616 Investment income 57,458 -57,458 Miscellaneous 30,945 -30,945 Total revenues 2,899,001 -2,899,001 EXPENDITURES/EXPENSES Culture and recr eation 2,793,171 (125,239)2,667,932 Total expenditures/expenses 2,793,171 (125,239)2,667,932 NET CHANGE IN FUND BALANCE/ NET ASSETS 105,830 125,239 231,069 FUND BALANCE/NET ASSETS MAY 1 3,507,777 122,688 3,630,465 FUND BALANCES/NET ASSETS APRIL 30 $3,613,607 $247,927 $3,861,534 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 Illino is 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 its funds 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 institutions 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, 2009, 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, 2009, 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 $3,503,448 $3,503,448 $-$-$- TOTAL $3,503,448 $3,503,448 $-$-$- 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 for operating funds and maximizing yields. The investment policy limits 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 its 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 it s 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 2008 le vy year attach as an enforceable lien on January 1, 2008, on property values assessed as of the same date. Taxes are levied by December 31 of the subsequent fiscal year end by passage of a Tax Levy Ordinance. Tax bills are prepared by the Count y a nd issued on or about February 1, 2009 and August 1, 2009, and are payable in two installments, on or about March 1, 2009 and September 1, 2009. The County co llects such taxes and remit s them periodically. The 2008 tax levy co llect io ns are intended to finance the 2010 fiscal year and are not considered available for current operations and are, therefore, shown as deferred revenue. The 2009 tax levy has not been recorded as a receivable at April 30, 2009, as the tax attached as a lien on property as of January 1, 2009;however, the tax will not be levied until December 2009 and, accordingly, is not measurable at April 30, 2009. 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 -133,680 Total capital assets not being depreciated 65,493 133,680 -199,173 Capital assets being depreciated Buildings 1,050,000 --1,050,000 Equipment -27,137 -27,137 Total capital assets being depreciated 1,050,000 27,137 -1,077,137 Less accumulated depreciation for Buildings 886,666 23,333 -909,999 Equipment -1,939 -1,939 Total accumulated depreciation 886,666 25,272 -911,938 Total capital assets being depreciated, net 163,334 1,865 -165,199 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $228,827 $135,545 $-$364,372 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, 2009: Balance, May 1 Additions Retirements Balance, April 30 Current Portion Compensated absences $93,039 $61,041 $64,535 $89,545 $52,202 Other postemployment benefit 13,100 13,800 -26,900 - TOTAL LONG-TERM LIABILITIES $106,139 $74,841 $64,535 $116,445 $52,202 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual REVENUES Taxes 12,274,250$ 12,274,250$ 12,095,991$ Licenses and permits 1,113,000 1,113,000 1,271,817 Intergovernmental 39,000 39,000 60,394 Charges for services 347,500 347,500 316,503 Fines and forfeits 213,500 213,500 251,680 Investment income 520,000 520,000 302,941 Miscellaneous 407,000 407,000 658,776 Total revenues 14,914,250 14,914,250 14,958,102 EXPENDITURES General government 5,130,561 5,130,561 5,156,342 Public safety 7,965,900 7,965,900 7,412,526 Highways and streets 2,640,970 2,640,970 2,936,206 Total expenditures 15,737,431 15,737,431 15,505,074 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (823,181) (823,181) (546,972) OTHER FINANCING SOURCES (USES) Sale of capital assets 5,000 5,000 8,772 Total other financing sources (uses)5,000 5,000 8,772 NET CHANGE IN FUND BALANCE (818,181)$ (818,181)$ (538,200) FUND BALANCE, MAY 1 17,147,153 FUND BALANCE, APRIL 30 16,608,953$ (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) 2003 14,167,618$ 15,105,472$ 93.79%937,854$ 5,241,608$ 17.89% 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% Note: Amounts above include both the Village of Deerfield and Deerfield Public Library. April 30, 2009 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 May 1,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) 2003 21,397,216$ 23,235,103$ 92.09%1,837,887$ 2,612,402$ 70.35% 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% The actuarial value of plan assets for the Police Pension Plan above is as of April 30, 2008. As disclosed in note 12.e, the Police Pension Fund experienced significant declines in the fair value (actuarial value) of assets for the year ended April 30, 2009, which are not reflected in these funded ratios. April 30, 2009 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 May 1,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% Information for prior years is not available as the Village's first actuarial valuation was performed May 1, 2007. April 30, 2009 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFIT PLAN (See independent auditor's report.) - 55 - Annual Required Calendar Employer Contribution Percentage Year Contributions (ARC)Contributed 2003 399,935$ 399,935$ 100.00% 2004 522,513 522,513 100.00% 2005 551,606 551,606 100.00% 2006 674,312 674,312 100.00% 2007 699,397 699,397 100.00% 2008 778,342 778,342 100.00% Note: Amounts above include both the Village of Deerfield and Deerfield Public Library. April 30, 2009 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 2004 325,762$ 325,762$ 100.00% 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% April 30, 2009 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% Information for prior years is not available as the Village's first actuarial valuation was performed May 1, 2007. April 30, 2009 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, 2009 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 Debt Service 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, 2009 Original Final Budget Budget Actual TAXES Property 2,094,250$ 2,094,250$ 2,006,581$ Replacement 75,000 75,000 93,921 Sales 4,500,000 4,500,000 4,438,194 Home rule sales 1,400,000 1,400,000 1,525,311 Local use 245,000 245,000 259,932 Income 1,650,000 1,650,000 1,678,335 Hotel/motel 2,000,000 2,000,000 1,746,051 Telecommunication 310,000 310,000 347,666 Total taxes 12,274,250 12,274,250 12,095,991 LICENSES AND PERMITS Beer/liquor licenses 71,000 71,000 58,950 Food licenses 8,000 8,000 4,883 Other business licenses 28,000 28,000 5,545 Building permits 600,000 600,000 801,664 Contractor's licenses 8,000 8,000 7,850 Nonbusiness licenses and permits 53,000 53,000 55,033 Vehicle licenses 345,000 345,000 337,892 Total licenses and permits 1,113,000 1,113,000 1,271,817 INTERGOVERNMENTAL State grant 6,000 6,000 1,210 State highway maintenance 33,000 33,000 46,372 Federal grant - - 12,812 Total intergovernmental 39,000 39,000 60,394 CHARGES FOR SERVICES Special police services 262,500 262,500 173,122 Dispatching services 79,000 79,000 88,008 50/50 tree planting 4,000 4,000 55,373 Engineering services 2,000 2,000 - Total charges for services 347,500 347,500 316,503 FINES AND FORFEITS 213,500 213,500 251,680 INVESTMENT INCOME 520,000 520,000 302,941 (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, 2009 Original Final Budget Budget Actual MISCELLANEOUS False alarms 35,000$ 35,000$ 32,717$ Sale of materials 2,000 2,000 - Rentals 25,000 25,000 74,948 Miscellaneous 100,000 100,000 252,197 Franchise fees 245,000 245,000 298,914 Total miscellaneous 407,000 407,000 658,776 TOTAL REVENUES 14,914,250$ 14,914,250$ 14,958,102$ (See independent auditor's report.) - 61 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual GENERAL GOVERNMENT Finance department Personnel services 1,108,587$ 1,108,587$ 1,086,448$ Less: IPBC terminal reserve dividend - - (134,728) Training and development 16,600 16,600 4,505 Contractual services 1,211,350 1,211,350 1,589,371 Commodities 27,000 27,000 13,532 Utilities 27,000 27,000 17,975 Capital outlay 65,250 65,250 49,182 Total finance department 2,455,787 2,455,787 2,626,285 Administration Personnel services 565,274 565,274 441,543 Training and development 5,000 5,000 3,379 Contractual services 400,100 400,100 547,911 Commodities 14,500 14,500 3,069 Utilities 1,600 1,600 1,056 Capital outlay 64,571 64,571 56,029 Total administration 1,051,045 1,051,045 1,052,987 Community development Personnel services 842,400 842,400 815,046 Training and development 8,000 8,000 4,719 Contractual services 139,100 139,100 153,956 Commodities 25,500 25,500 14,052 Utilities 12,500 12,500 6,316 Capital outlay 7,143 7,143 6,458 Total community development 1,034,643 1,034,643 1,000,547 Engineering Personnel services 368,000 368,000 304,149 Training and development 6,600 6,600 2,287 Contractual services 184,000 184,000 137,686 Commodities 10,500 10,500 11,088 Utilities 5,000 5,000 8,084 Capital outlay 14,986 14,986 13,229 Total engineering 589,086 589,086 476,523 Total general government 5,130,561 5,130,561 5,156,342 PUBLIC SAFETY Police department Administrative services Personnel services 1,449,164 1,449,164 1,492,121 Training and development 27,500 27,500 8,776 Contractual services 526,500 526,500 468,139 (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, 2009 Original Final Budget Budget Actual PUBLIC SAFETY (Continued) Police department (Continued) Administrative services (Continued) Commodities 53,000$ 53,000$ 31,678$ Utilities 35,000 35,000 15,528 Capital outlay 175,035 175,035 167,699 Total administrative services 2,266,199 2,266,199 2,183,941 Communications Personnel services 819,995 819,995 766,826 Training and development 5,600 5,600 2,820 Contractual services 500 500 357 Commodities - - 280 Capital outlay 5,000 5,000 1,129 Total communications 831,095 831,095 771,412 Investigations Personnel services 788,207 788,207 809,826 Training and development 6,950 6,950 3,723 Contractual services 6,200 6,200 11,224 Commodities 15,960 15,960 11,189 Capital outlay 9,750 9,750 3,430 Total investigations 827,067 827,067 839,392 Patrol Personnel services 3,517,989 3,517,989 3,279,455 Training and development 36,900 36,900 17,423 Contractual services 60,600 60,600 75,376 Commodities 75,000 75,000 58,417 Utilities 6,500 6,500 5,734 Capital outlay 19,500 19,500 9,920 Total patrol 3,716,489 3,716,489 3,446,325 Special detail Personnel services 325,050 325,050 171,456 Total special detail 325,050 325,050 171,456 Total public safety 7,965,900 7,965,900 7,412,526 HIGHWAYS AND STREETS Public works department Administration Personnel services 267,000 267,000 225,995 Training and development 6,200 6,200 1,032 Contractual services 153,600 153,600 145,283 (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, 2009 Original Final Budget Budget Actual HIGHWAYS AND STREETS (Continued) Public works department (Continued) Administration (Continued) Commodities 12,800$ 12,800$ 10,114$ Utilities 10,500 10,500 8,629 Capital outlay 167,750 167,750 169,837 Total administration 617,850 617,850 560,890 Maintenance Personnel services 585,950 585,950 593,287 Contractual services 128,000 128,000 100,908 Commodities 106,000 106,000 89,757 Utilities 80,000 80,000 100,686 Capital outlay 135,000 135,000 121,316 Total maintenance 1,034,950 1,034,950 1,005,954 Snow and ice control Personnel services 145,930 145,930 174,275 Contractual services 90,500 90,500 171,230 Commodities 244,000 244,000 642,665 Capital outlay 27,000 27,000 27,357 Total snow and ice control 507,430 507,430 1,015,527 Forestry Personnel services 78,750 78,750 8,089 Contractual services 236,500 236,500 192,794 Commodities 8,500 8,500 5,922 Capital outlay 55,000 55,000 95,908 Total forestry 378,750 378,750 302,713 Train station maintenance Personnel services 15,290 15,290 8,361 Contractual services 82,000 82,000 39,965 Commodities 4,200 4,200 2,796 Utilities 500 500 - Total train station maintenance 101,990 101,990 51,122 Total highways and streets 2,640,970 2,640,970 2,936,206 TOTAL EXPENDITURES 15,737,431$ 15,737,431$ 15,505,074$ (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, 2009 Original Final Budget Budget Actual REVENUES Taxes Property 45,000$ 45,000$ 45,053$ Sales 850,000 850,000 923,074 Intergovernmental 1,484,900 1,484,900 799,534 Investment income 12,000 12,000 33,943 Miscellaneous 348,500 348,500 - Total revenues 2,740,400 2,740,400 1,801,604 EXPENDITURES Capital outlay Contractual services 1,683,000 1,683,000 905,780 Construction 7,800,000 7,800,000 5,820,939 Total expenditures 9,483,000 9,483,000 6,726,719 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (6,742,600) (6,742,600) (4,925,115) OTHER FINANCING SOURCES (USES) Proceeds from bonds issued, at par 5,000,000 5,000,000 - Transfers in - - 4,543,295 Total other financing sources (uses)5,000,000 5,000,000 4,543,295 NET CHANGE IN FUND BALANCE (1,742,600)$ (1,742,600)$ (381,820) FUND BALANCE, MAY 1 1,637,527 FUND BALANCE, APRIL 30 1,255,707$ (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, 2009 Original Final Budget Budget Actual REVENUES Taxes Property 4,500,000$ 4,500,000$ 4,948,264$ Investment income 110,000 110,000 73,026 Total revenues 4,610,000 4,610,000 5,021,290 EXPENDITURES Capital outlay Construction - - 8,965 Other costs 25,000 25,000 - Total expenditures 25,000 25,000 8,965 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 4,585,000 4,585,000 5,012,325 OTHER FINANCING SOURCES (USES) Transfers (out)(2,130,000) (4,130,000) (4,086,500) Total other financing sources (uses)(2,130,000) (4,130,000) (4,086,500) NET CHANGE IN FUND BALANCE 2,455,000$ 455,000$ 925,825 FUND BALANCE, MAY 1 2,911,983 FUND BALANCE, APRIL 30 3,837,808$ (See independent auditor's report.) - 66 - 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, 2009 Original Final Budget Budget Actual REVENUES Taxes Property 400,000$ 400,000$ -$ Replacement 20,000 20,000 - Investment income 25,000 25,000 10,489 Total revenues 445,000 445,000 10,489 EXPENDITURES Debt service Principal retirement 2,000,000 4,000,000 4,000,000 Interest 530,000 530,000 148,201 Fiscal charges 41,000 41,000 36,738 Total expenditures 2,571,000 4,571,000 4,184,939 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,126,000) (4,126,000) (4,174,450) OTHER FINANCING SOURCES (USES) Transfers in Tax Incremental Finance District 2 Fund 2,130,000 4,130,000 4,086,500 Total other financing sources (uses)2,130,000 4,130,000 4,086,500 NET CHANGE IN FUND BALANCE 4,000$ 4,000$ (87,950) FUND BALANCE, MAY 1 560,711 FUND BALANCE, APRIL 30 472,761$ (See independent auditor's report.) - 67 - 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. Project 29 Fund -Established pursuant to an escrow agreement with the Corps of Engineers and State of Illino is t o account for grant funds for a floodwater control project in the Village. VILLAGE OF DEERFIELD, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS April 30, 2009 Motor Enhanced Bond Project Fuel Tax 911 Proceeds 29 Total Cash and investments 462,138$ 1,012,585$ 669,755$ -$ 2,144,478$ Receivables Accounts - 82,548 - - 82,548 Accrued interest 711 1,628 2,824 - 5,163 Due from other governments 36,783 - - - 36,783 TOTAL ASSETS 499,632$ 1,096,761$ 672,579$ -$ 2,268,972$ LIABILITIES Accounts payable -$ 7,015$ -$ -$ 7,015$ Total liabilities - 7,015 - - 7,015 FUND BALANCES Reserved for maintenance of roadways 499,632 - - - 499,632 Reserved for public safety - 1,089,746 - - 1,089,746 Unreserved - undesignated - - 672,579 - 672,579 Total fund balances 499,632 1,089,746 672,579 - 2,261,957 TOTAL LIABILITIES AND FUND BALANCES 499,632$ 1,096,761$ 672,579$ -$ 2,268,972$ ASSETS LIABILITIES AND FUND BALANCES Special Revenue Funds Capital Projects (See independent auditor's report.) - 68 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended April 30, 2009 Motor Enhanced Bond Project Fuel Tax 911 Proceeds 29 Total REVENUES Intergovernmental 489,558$ -$ -$ -$ 489,558$ Charges for services - 410,942 - - 410,942 Investment income 7,448 18,591 36,559 3,401 65,999 Miscellaneous - - - 40,063 40,063 Total revenues 497,006 429,533 36,559 43,464 1,006,562 EXPENDITURES Public safety - 243,807 - - 243,807 Highways and streets 600,000 - - - 600,000 Total expenditures 600,000 243,807 - - 843,807 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (102,994) 185,726 36,559 43,464 162,755 OTHER FINANCING SOURCES (USES) Proceeds from bonds issued, at par - - 5,000,000 - 5,000,000 Discount on bonds issued - - (30,867) - (30,867) Transfers (out)- - (4,333,113) (210,182) (4,543,295) Total other financing sources (uses)- - 636,020 (210,182) 425,838 NET CHANGE IN FUND BALANCES (102,994) 185,726 672,579 (166,718) 588,593 FUND BALANCES, MAY 1 602,626 904,020 - 166,718 1,673,364 FUND BALANCES, APRIL 30 499,632$ 1,089,746$ 672,579$ -$ 2,261,957$ Special Revenue Funds Capital Projects (See independent auditor's report.) - 69 - 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, 2009 Original Final Budget Budget Actual REVENUES Intergovernmental Allo tments earned 525,000$ 525,000$ 489,558$ Investment income 25,000 25,000 7,448 Total revenues 550,000 550,000 497,006 EXPENDITURES Highways and streets Capital outlay 600,000 600,000 600,000 Total expenditures 600,000 600,000 600,000 NET CHANGE IN FUND BALANCE (50,000)$ (50,000)$ (102,994) FUND BALANCE, MAY 1 602,626 FUND BALANCE, APRIL 30 499,632$ (See independent auditor's report.) - 70 - 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, 2009 Original Final Budget Budget Actual REVENUES Charges for services Other charges 300,000$ 300,000$ 410,942$ Investment income 14,000 14,000 18,591 Total revenues 314,000 314,000 429,533 EXPENDITURES Public safety Contractual services 120,545 120,545 110,297 Utilit ies 75,000 75,000 70,666 Capital outlay 75,067 75,067 62,844 Total expenditures 270,612 270,612 243,807 NET CHANGE IN FUND BALANCE 43,388$ 43,388$ 185,726 FUND BALANCE, MAY 1 904,020 FUND BALANCE, APRIL 30 1,089,746$ (See independent auditor's report.) - 71 - 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, 2009 Original Final Budget Budget Actual REVENUES Investment income -$ -$ 36,559$ Total revenues - - 36,559 EXPENDITURES None - - - Total expenditures - - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES - - 36,559 OTHER FINANCING SOURCES (USES) Proceeds from bonds issued, at par - - 5,000,000 Discount on bonds issued - - (30,867) Transfers (out) Infrastructure Replacement Fund - - (4,333,113) Total other financing sources (uses)- - 636,020 NET CHANGE IN FUND BALANCE -$ -$ 672,579 FUND BALANCE, MAY 1 - FUND BALANCE, APRIL 30 672,579$ (See independent auditor's report.) - 72 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PROJECT 29 FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual REVENUES Investment income -$ -$ 3,401$ Miscellaneous - - 40,063 Total revenues - - 43,464 EXPENDITURES None - - - Total expenditures - - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES - - 43,464 OTHER FINANCING SOURCES (USES) Transfers (out) Infrastructure Replacement Fund - - (210,182) Total other financing sources (uses)- - (210,182) NET CHANGE IN FUND BALANCE -$ -$ (166,718) FUND BALANCE, MAY 1 166,718 FUND BALANCE, APRIL 30 -$ (See independent auditor's report.) - 73 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL WATER FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Water sales 4,262,000$ 4,262,000$ 3,647,017$ Miscellaneous Permits and fees 30,000 30,000 38,846 Penalties 37,000 37,000 38,581 Other 58,000 58,000 54,172 Total operating revenues 4,387,000 4,387,000 3,778,616 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 523,365 523,365 502,543 Operations Distribution 2,577,815 2,577,815 2,174,042 Maintenance - mains and fire hydrants 885,460 885,460 576,646 Maintenance - meters 380,650 380,650 290,184 Total operating expenses excluding depreciation 4,367,290 4,367,290 3,543,415 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 19,710 19,710 235,201 Depreciation - - 359,230 OPERATING INCOME (LOSS)19,710 19,710 (124,029) NONOPERATING REVENUES (EXPENSES) Investment income 41,000 41,000 15,222 Interest expense (478,820) (478,820) (91,319) Total nonoperating revenues (expenses)(437,820) (437,820) (76,097) NET INCOME (LOSS) BEFORE CONTRIBUTIONS (418,110) (418,110) (200,126) CONTRIBUTIONS - - 381,692 CHANGE IN NET ASSETS (418,110)$ (418,110)$ 181,566 NET ASSETS, MAY 1 14,345,076 NET ASSETS, APRIL 30 14,526,642$ (See independent auditor's report.) - 74 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual ADMINISTRATION Personnel services 285,870$ 285,870$ 291,031$ Training and development 6,400 6,400 1,016 Contractual services 148,900 148,900 136,934 Commodities 9,800 9,800 7,114 Utilities 16,000 16,000 11,053 Capital outlay 56,395 56,395 55,395 Total administration 523,365 523,365 502,543 OPERATIONS Distribution Personnel services 107,958 107,958 114,112 Contractual services 72,350 72,350 24,826 Commodities 2,267,207 2,267,207 1,920,597 Utilities 87,300 87,300 114,507 Capital outlay 43,000 43,000 - Total distribution 2,577,815 2,577,815 2,174,042 Main and fire hydrant maintenance Personnel services 406,760 406,760 425,316 Contractual services 231,500 231,500 69,241 Commodities 140,200 140,200 80,149 Capital outlay 107,000 107,000 1,940 Total main and fire hydrant maintenance 885,460 885,460 576,646 Meter maintenance Personnel services 161,450 161,450 139,263 Contractual services 10,100 10,100 2,505 Commodities 7,100 7,100 4,109 Capital outlay 202,000 202,000 144,307 Total meter maintenance 380,650 380,650 290,184 TOTAL OPERATING EXPENSES 4,367,290$ 4,367,290$ 3,543,415$ (See independent auditor's report.) - 75 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION WATER FUND For the Year Ended April 30, 2009 Assets Balances Balances May 1 Additions Retirements April 30 Land 1,877,956$ -$ -$ 1,877,956$ Construction in progress 133,377 - 133,377 - Buildings 4,180,123 - - 4,180,123 Water system improvements 11,888,262 515,068 170,437 12,232,893 Equipment and vehicles 595,397 - - 595,397 TOTAL 18,675,115$ 515,068$ 303,814$ 18,886,369$ Balances Balances May 1 Additions Retirements April 30 Buildings 1,247,337$ 91,837$ -$ 1,339,174$ Water system improvements 1,509,665 259,070 170,437 1,598,298 Equipment and vehicles 548,636 8,323 - 556,959 TOTAL 3,305,638$ 359,230$ 170,437$ 3,494,431$ NET ASSET VALUE 15,391,938$ Accumulated Depreciation (See independent auditor's report.) - 76 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Sewer charges 2,524,000$ 2,524,000$ 2,306,028$ Miscellaneous Permits and fees 22,000 22,000 7,030 Penalties 34,000 34,000 26,652 Other 5,000 5,000 13,724 Total operating revenues 2,585,000 2,585,000 2,353,434 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 521,405 521,405 419,885 Operations Treatment plant 2,094,481 2,094,481 1,757,411 Cleaning and maintenance 289,700 289,700 329,919 Construction 1,020,100 1,020,100 363,536 Total operating expenses excluding depreciation 3,925,686 3,925,686 2,870,751 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (1,340,686) (1,340,686) (517,317) Depreciation - - 169,331 OPERATING INCOME (LOSS)(1,340,686) (1,340,686) (686,648) NONOPERATING REVENUES (EXPENSES) Investment income 15,000 15,000 9,263 Grants 160,000 160,000 - Total nonoperating revenues (expenses)175,000 175,000 9,263 INCOME (LOSS) BEFORE CONTRIBUTIONS (1,165,686) (1,165,686) (677,385) CONTRIBUTIONS - - 2,751,037 CHANGE IN NET ASSETS (1,165,686)$ (1,165,686)$ 2,073,652 NET ASSETS, MAY 1 5,623,088 NET ASSETS, APRIL 30 7,696,740$ (See independent auditor's report.) - 77 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual ADMINISTRATION Personnel services 252,700$ 252,700$ 179,039$ Training and development 5,400 5,400 1,561 Contractual services 187,200 187,200 166,772 Commodities 8,500 8,500 6,883 Utilities 5,000 5,000 4,896 Capital outlay 62,605 62,605 60,734 Total administration 521,405 521,405 419,885 OPERATIONS Treatment plant Personnel services 966,580 966,580 904,063 Training and development 7,100 7,100 3,465 Contractual services 317,400 317,400 173,047 Commodities 150,500 150,500 83,592 Utilities 295,000 295,000 333,071 Miscellaneous 65,000 65,000 27,280 Capital outlay 292,901 292,901 232,893 Total treatment plant 2,094,481 2,094,481 1,757,411 Cleaning and maintenance Personnel services 225,500 225,500 291,101 Contractual services 30,000 30,000 19,490 Commodities 34,200 34,200 18,594 Capital outlay - - 734 Total cleaning and maintenance 289,700 289,700 329,919 Construction Personnel services 264,400 264,400 237,298 Contractual services 90,500 90,500 32,657 Commodities 60,200 60,200 66,749 Capital outlay 730,731 730,731 152,563 Subtotal construction 1,145,831 1,145,831 489,267 Less nonoperating expenses Capital assets capitalized (125,731) (125,731) (125,731) Total construction 1,020,100 1,020,100 363,536 TOTAL OPERATING EXPENSES 3,925,686$ 3,925,686$ 2,870,751$ (See independent auditor's report.) - 78 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION SEWERAGE FUND For the Year Ended April 30, 2009 Assets Balances Balances May 1 Additions Retirements April 30 Construction in progress 136,676$ 1,955,868$ 50,117$ 2,042,427$ Sewer system 3,731,436 205,909 - 3,937,345 Buildings and improvements 3,325,172 765,108 252,573 3,837,707 TOTAL 7,193,284$ 2,926,885$ 302,690$ 9,817,479$ Accumulated Depreciation Balances Balances May 1 Additions Retirements April 30 Sewer system 901,059$ 82,975$ -$ 984,034$ Buildings and improvements 1,634,524 86,356 252,573 1,468,307 TOTAL 2,535,583$ 169,331$ 252,573$ 2,452,341$ NET ASSET VALUE 7,365,138$ (See independent auditor's report.) - 79 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL REFUSE FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Refuse billing 628,500$ 628,500$ 623,738$ Miscellaneous 9,000 9,000 6,257 Total operating revenues 637,500 637,500 629,995 OPERATING EXPENSES Operations Personnel services 96,500 96,500 58,642 Contractual services 1,669,612 1,669,612 1,500,080 Commodities 10,500 10,500 13,770 Capital outlay 17,675 17,675 17,675 Total operating expenses 1,794,287 1,794,287 1,590,167 OPERATING INCOME (LOSS)(1,156,787) (1,156,787) (960,172) NONOPERATING REVENUES (EXPENSES) Investment income 14,000 14,000 9,019 Property taxes 841,360 841,360 807,708 Total nonoperating revenues (expenses)855,360 855,360 816,727 CHANGE IN NET ASSETS (301,427)$ (301,427)$ (143,445) NET ASSETS, MAY 1 303,228 NET ASSETS, APRIL 30 159,783$ (See independent auditor's report.) - 80 - 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, 2009 Original Final Budget Budget Actual OPERATING REVENUES Parking lot fees 203,000$ 203,000$ 218,770$ Total operating revenues 203,000 203,000 218,770 OPERATING EXPENSES Operations 326,340 326,340 255,796 Depreciation - - 26,738 Total operating expenses 326,340 326,340 282,534 OPERATING INCOME (LOSS)(123,340) (123,340) (63,764) NONOPERATING REVENUES (EXPENSES) Investment income 15,000 15,000 15,923 Total nonoperating revenues (expenses)15,000 15,000 15,923 CHANGE IN NET ASSETS (108,340)$ (108,340)$ (47,841) NET ASSETS, MAY 1 2,025,328 NET ASSETS, APRIL 30 1,977,487$ (See independent auditor's report.) - 81 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual OPERATIONS Parking lots - Village and federal funds Personnel services 17,680$ 17,680$ 13,076$ Contractual services 145,530 145,530 105,476 Commodities 5,800 5,800 2,018 Utilities 3,300 3,300 2,797 Capital outlay 5,000 5,000 - Total parking lots - Village and federal funds 177,310 177,310 123,367 Parking lots - Village construction Personnel services 18,100 18,100 13,076 Contractual services 122,530 122,530 113,069 Commodities 1,400 1,400 298 Utilities 6,000 6,000 5,986 Capital outlay 1,000 1,000 - Total parking lots - Village construction 149,030 149,030 132,429 TOTAL OPERATING EXPENSES 326,340$ 326,340$ 255,796$ (See independent auditor's report.) - 82 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION COMMUTER PARKING LOT FUND For the Year Ended April 30, 2009 Assets Balances Balances May 1 Additions Retirements April 30 Land 77,500$ -$ -$ 77,500$ Parking lot improvements 1,950,831 - - 1,950,831 TOTAL 2,028,331$ -$ -$ 2,028,331$ Accumulated Depreciation Balances Balances May 1 Additions Retirements April 30 Parking lot improvements 694,170$ 26,738$ -$ 720,908$ NET ASSET VALUE 1,307,423$ (See independent auditor's report.) - 83 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS April 30, 2009 Vehicle and Equipment Garage Replacement Total CURRENT ASSETS Cash and investments 92,522$ 3,806,846$ 3,899,368$ Receivables Accounts 702 - 702 Accrued interest 102 6,630 6,732 Inventory 112,762 - 112,762 Total current assets 206,088 3,813,476 4,019,564 CAPITAL ASSETS Depreciable - 3,040,645 3,040,645 Accumulated depreciation - (1,636,426) (1,636,426) Net capital assets - 1,404,219 1,404,219 Total assets 206,088 5,217,695 5,423,783 CURRENT LIABILITIES Accounts payable 8,428 - 8,428 Accrued payroll 4,929 - 4,929 Compensated absences payable 2,471 - 2,471 Total current liabilities 15,828 - 15,828 LONG-TERM LIABILITIES Compensated absences payable 22,243 - 22,243 Total long-term liabilities 22,243 - 22,243 Total liabilities 38,071 - 38,071 NET ASSETS Invested in capital assets - 1,404,219 1,404,219 Unrestricted 168,017 3,813,476 3,981,493 TOTAL NET ASSETS 168,017$ 5,217,695$ 5,385,712$ (See independent auditor's report.) - 84 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS For the Year Ended April 30, 2009 Vehicle and Equipment Garage Replacement Total OPERATING REVENUES Interfund services Billings 397,683$ 584,203$ 981,886$ Miscellaneous 12,569 - 12,569 Total operating revenues 410,252 584,203 994,455 OPERATING EXPENSES Operations 379,345 - 379,345 Commodities - 142,166 142,166 Total operating expenses 379,345 142,166 521,511 OPERATING INCOME BEFORE DEPRECIATION 30,907 442,037 472,944 Depreciation - 207,783 207,783 OPERATING INCOME 30,907 234,254 265,161 NONOPERATING REVENUES (EXPENSES) Investment income 1,163 75,743 76,906 Gain on disposal of capital assets - 41,000 41,000 Total nonoperating revenues (expenses)1,163 116,743 117,906 CHANGE IN NET ASSETS 32,070 350,997 383,067 NET ASSETS, MAY 1 135,947 4,866,698 5,002,645 NET ASSETS, APRIL 30 168,017$ 5,217,695$ 5,385,712$ (See independent auditor's report.) - 85 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended April 30, 2009 Vehicle and Equipment Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services 398,409$ 584,203$ 982,612$ Receipts from miscellaneous revenue 12,569 - 12,569 Payments to suppliers (143,249) (142,166) (285,415) Payments to employees (219,447) - (219,447) Net cash from operating activities 48,282 442,037 490,319 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 - 41,000 41,000 Capital assets purchased - (278,961) (278,961) Net cash from capital and related financing activities - (237,961) (237,961) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 1,120 78,096 79,216 Net cash from investing activities 1,120 78,096 79,216 NET INCREASE IN CASH AND CASH EQUIVALENTS 49,402 282,172 331,574 CASH AND CASH EQUIVALENTS, MAY 1 43,120 3,524,674 3,567,794 CASH AND CASH EQUIVALENTS, APRIL 30 92,522$ 3,806,846$ 3,899,368$ RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income 30,907$ 234,254$ 265,161$ Adjustments to reconcile operating income to net cash from operating activities Depreciation - 207,783 207,783 (Increase) decrease in Accounts receivable 726 - 726 Inventories 14,899 - 14,899 Increase (decrease) in Accounts payable (1,943) - (1,943) Accrued payroll (233) - (233) Compensated absences payable 3,926 - 3,926 NET CASH FROM OPERATING ACTIVITIES 48,282$ 442,037$ 490,319$ (See independent auditor's report.) - 86 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL GARAGE FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual OPERATING REVENUES Interfund services Billings 315,000$ 315,000$ 397,683$ Miscellaneous 1,000 1,000 12,569 Total operating revenues 316,000 316,000 410,252 OPERATING EXPENSES Operations 358,875 358,875 379,345 OPERATING INCOME (LOSS)(42,875) (42,875) 30,907 NONOPERATING REVENUES (EXPENSES) Investment income 500 500 1,163 Total nonoperating revenues (expenses)500 500 1,163 CHANGE IN NET ASSETS (42,375)$ (42,375)$ 32,070 NET ASSETS, MAY 1 135,947 NET ASSETS, APRIL 30 168,017$ (See independent auditor's report.) - 87 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL GARAGE FUND For the Year Ended April 30, 2009 Original Final Budget Budget Actual OPERATING EXPENSES Public works department Personnel services 206,850$ 206,850$ 223,140$ Training and development 1,900 1,900 290 Contractual services 25,000 25,000 11,750 Commo dit ies 112,900 112,900 133,169 Utilit ies 4,700 4,700 4,605 Capital outlay 7,525 7,525 6,391 TOTAL OPERATING EXPENSES 358,875$ 358,875$ 379,345$ (See independent auditor's report.) - 88 - 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, 2009 Original Final Budget Budget Actual OPERATING REVENUES Interfund services Billings 584,203$ 584,203$ 584,203$ OPERATING EXPENSES Capital outlay 1,321,700 1,321,700 421,127 Less capital assets capitalized (278,961) (278,961) (278,961) Net capital outlay 1,042,739 1,042,739 142,166 OPERATING INCOME BEFORE DEPRECIATION (458,536) (458,536) 442,037 Depreciation - - 207,783 OPERATING INCOME (458,536) (458,536) 234,254 NONOPERATING REVENUES (EXPENSES) Investment income 90,000 90,000 75,743 Gain on disposal of capital assets - - 41,000 Total nonoperating revenues (expenses)90,000 90,000 116,743 CHANGE IN NET ASSETS (368,536)$ (368,536)$ 350,997 NET ASSETS, MAY 1 4,866,698 NET ASSETS, APRIL 30 5,217,695$ (See independent auditor's report.) - 89 - Original Final Budget Budget Actual ADDITIONS Contributions - employer 790,000$ 790,000$ 843,209$ Contributions - employee 344,400 344,400 359,491 Total contributions 1,134,400 1,134,400 1,202,700 Investment income Net appreciation (depreciation) in fair value of investments - - (4,468,252) Interest earned on investments 800,000 800,000 612,966 Total investment income 800,000 800,000 (3,855,286) Less investment expense (1,750) (1,750) (1,505) Net investment income 798,250 798,250 (3,856,791) Total additions 1,932,650 1,932,650 (2,654,091) DEDUCTIONS Benefits and refunds Pension payments 1,561,400 1,561,400 1,403,226 Separation refunds 15,000 15,000 40,165 Administrative 10,500 10,500 8,364 Total deductions 1,586,900 1,586,900 1,451,755 NET INCREASE (DECREASE)345,750$ 345,750$ (4,105,846) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1 26,298,253 April 30 22,192,407$ VILLAGE OF DEERFIELD, ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS - BUDGET AND ACTUAL For the Year Ended April 30, 2009 (See independent auditor's report.) - 90 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended April 30, 2009 Balances Balances May 1 Additions Deductions April 30 ASSETS Cash and investments 1,666,762$ 127,851$ 573,238$ 1,221,375$ Receivables - accrued interest 217 151 217 151 TOTAL ASSETS 1,666,979$ 128,002$ 573,455$ 1,221,526$ LIABILITIES Accounts payable 31,697$ 6,343$ 31,697$ 6,343$ Deposits payable 1,560,699 63,892 467,175 1,157,416 Other payables 74,583 57,767 74,583 57,767 TOTAL LIABILITIES 1,666,979$ 128,002$ 573,455$ 1,221,526$ ASSETS Cash and investments 1,591,899$ 66,392$ 498,375$ 1,159,916$ TOTAL ASSETS 1,591,899$ 66,392$ 498,375$ 1,159,916$ LIABILITIES Accounts payable 31,200$ 2,500$ 31,200$ 2,500$ Deposits payable 1,560,699 63,892 467,175 1,157,416 TOTAL LIABILITIES 1,591,899$ 66,392$ 498,375$ 1,159,916$ ASSETS Cash and investments 74,863$ 61,459$ 74,863$ 61,459$ Receivables - accrued interest 217 151 217 151 TOTAL ASSETS 75,080$ 61,610$ 75,080$ 61,610$ LIABILITIES Accounts payable 497$ 3,843$ 497$ 3,843$ Other payables 74,583 57,767 74,583 57,767 TOTAL LIABILITIES 75,080$ 61,610$ 75,080$ 61,610$ DEPOSIT FUND ALL FUNDS EAST SHORE RADIO NETWORK FUND (See independent auditor's report.) - 91 - Date of Issue February 28, 2003 Date of Maturity December 1, 2012 Authorized Issue $3,460,000 Denomination of Bonds $5,000 Interest Rates 2.25%, 2.55%, 2.95%, 3.15%, 3.30%, 3.50% Principal Maturity Date December 1 Payable at Cole Taylor Bank, Chicago, Illinois Tax Levy Bond Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2008 338-422 425,000$ 57,365$ 482,365$ 2009 28,682$ 2009 28,683$ 2009 423-509 435,000 44,827 479,827 2010 22,414 2010 22,413 2010 510-599 450,000 31,125 481,125 2011 15,562 2011 15,563 2011 600-692 465,000 16,275 481,275 2012 8,138 2012 8,137 1,775,000$ 149,592$ 1,924,592$ 74,796$ 74,796$ 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, 2009 (See independent auditor's report.) - 92 - Date of Issue August 1, 2008 Date of Maturity December 1, 2028 Authorized Issue $5,000,000 Denomination of Bonds $5,000 In terest Rates 3.25%, 3.375%, 3.50%, 3.75%, 3.875%, 4.00%, 4.125%. 4.25% Principal Maturity Date December 1 Payable at Cole Taylor Bank, Chicago, Illinois Tax Levy Bond Year Numbers Principal In terest Total June 1 Amount December 1 Amount 2008 1-35 175,000$ 193,150$ 368,150$ 2009 96,575$ 2009 96,575$ 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 5,000,000$2,371,445$7,371,445$1,185,720$1,185,725$ 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, 2009 (See independent auditor's report.) - 93 - 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.94-98 Revenue Capacity These schedules contain information to help the reader assess the Village’s mo st significant local revenue source, the property tax.99-100 Debt Capacity These schedules present information to help the reader assess the affordability of the Village’s current levels of outstanding debt and the Village’s ability to issue additional debt in the future.101-104 Demographic and Economic Information These schedules offer demographic and economic indicators to help t he reader understand the environment within which the Village’s financial activities take place. 105-106 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village’s financial report relates to the services the Village provides and the activities it performs.107-109 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 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 Six Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 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$ Restricted 7,143,495 5,642,027 6,634,566 4,088,876 4,979,340 5,899,947 Unrestricted 23,683,161 22,293,758 24,431,788 18,185,786 22,238,210 18,140,003 TOTAL GOVERNMENTAL ACTIVITIES 76,039,057$ 74,352,259$ 78,426,760$ 82,380,789$ 87,460,739$ 86,659,194$ 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$ Unrestricted 5,750,279 4,753,661 4,066,666 4,841,210 3,120,381 2,071,153 TOTAL BUSINESS-TYPE ACTIVITIES 18,283,955$ 19,081,563$ 19,965,655$ 21,767,836$ 22,296,720$ 24,360,652$ 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$ Restricted 7,143,495 5,642,027 6,634,566 4,088,876 4,979,340 5,899,947 Unrestricted 29,433,440 27,047,419 28,498,454 23,026,996 25,358,591 20,211,156 TOTAL PRIMARY GOVERNMENT 94,323,012$ 93,433,822$ 98,392,415$ 104,148,625$ 109,757,459$ 111,019,846$ Data Source Audited Financial Statements - 94 - Fiscal Year 2004 2005 2006 2007 2008 2009 EXPENSES Governmental activities General government 13,407,856$ 17,160,850$ 14,956,404$ 4,602,570$ 4,569,982$ 5,228,097$ Public safety 6,718,927 6,660,439 6,780,176 7,154,536 7,232,143 7,715,014 Highways and streets 4,809,688 7,113,852 6,404,266 5,822,340 4,451,069 7,317,060 Interest 574,558 462,600 372,475 295,435 209,430 215,464 Total governmental activities expenses 25,511,029 31,397,741 28,513,321 17,874,881 16,462,624 20,475,635 Business-type activities Water 3,915,324 3,940,038 4,319,188 4,264,602 6,224,262 3,993,964 Sewerage 2,335,993 2,380,517 2,126,395 2,450,965 2,735,053 3,040,082 Refuse disposal 1,388,879 1,386,178 1,397,308 1,496,548 1,520,190 1,590,167 Commuter parking 43,573 195,513 225,498 246,153 210,307 282,534 Total business-type activities expenses 7,683,769 7,902,246 8,068,389 8,458,268 10,689,812 8,906,747 TOTAL PRIMARY GOVERNMENT EXPENSES 33,194,798$ 39,299,987$ 36,581,710$ 26,333,149$ 27,152,436$ 29,382,382$ 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$ Public safety 770,963 867,230 884,195 911,421 935,302 956,468 Highways and streets - 10,091 57,912 69,216 75,400 59,609 Operating grants and contributions 534,561 558,143 557,050 544,823 524,423 490,768 Capital grants and contributions 297,220 1,019,794 235,298 213,575 1,492,153 894,545 Total governmental activities program revenues 2,750,574 4,072,316 4,118,750 3,482,853 4,507,286 4,047,068 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$ Sewerage 1,772,816 1,713,520 1,788,238 2,372,061 2,396,295 2,306,028 Refuse disposal 640,430 630,935 615,349 623,681 624,349 623,738 Commuter parking 151,133 202,497 206,205 204,177 212,585 218,770 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 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 9,423,956$ 10,657,866$ 11,946,465$ 11,936,619$ 12,547,887$ 10,842,621$ NET (EXPENSE) REVENUE Governmental activities (22,760,455)$ (27,325,425)$ (24,394,571)$ (14,392,028)$ (11,955,338)$ (16,428,567)$ Business-type activities (1,010,387) (1,316,696) (240,674) (4,502) (2,649,211) (2,111,194) TOTAL PRIMARY GOVERNMENT NET (EXPENSE) REVENUE (23,770,842)$ (28,642,121)$ (24,635,245)$ (14,396,530)$ (14,604,549)$ (18,539,761)$ CHANGE IN NET ASSETS VILLAGE OF DEERFIELD, ILLINOIS Last Six Fiscal Years - 95 - VILLAGE OF DEERFIELD, ILLINOIS CHANGE IN NET ASSETS (Continued) Last Six Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 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$ Sales 3,420,855 4,490,379 4,480,111 4,533,261 4,552,097 4,438,194 Home rule sales - - 1,875,874 1,832,281 1,913,268 2,448,385 Simplified telecommunications 339,634 298,021 305,226 323,358 354,984 347,666 Other 2,899,641 3,214,073 3,600,623 3,891,356 4,065,091 3,684,318 Investment income 499,724 835,537 871,624 1,557,378 1,253,533 486,398 Miscellaneous 182,343 175,507 221,617 210,116 278,667 260,971 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 Business-type activities Property taxes 761,356 740,915 786,228 859,502 780,785 807,708 Investment income 56,301 113,401 66,823 188,864 192,967 49,427 Miscellaneous 101,007 218,095 271,715 214,481 204,343 185,262 Contributions 365,926 1,041,893 - - - - Transfers in (out)- - - 1,600,000 2,000,000 3,132,729 Total business-type activities 1,284,590 2,114,304 1,124,766 2,862,847 3,178,095 4,175,126 TOTAL PRIMARY GOVERNMENT 23,530,309$ 27,752,931$ 29,561,177$ 20,152,739$ 20,213,383$ 19,802,148$ CHANGE IN NET ASSETS Governmental activities (514,736)$ (1,686,798)$ 4,041,840$ 2,897,864$ 5,079,950$ (801,545)$ Business-type activities 274,203 797,608 884,092 2,858,345 528,884 2,063,932 TOTAL PRIMARY GOVERNMENT CHANGE IN NET ASSETS (240,533)$ (889,190)$ 4,925,932$ 5,756,209$ 5,608,834$ 1,262,387$ Data Source Audited Financial Statements - 96 - VILLAGE OF DEERFIELD, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 GENERAL FUND Reserved 4,370,978$ 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$ Unreserved 10,920,309 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 TOTAL GENERAL FUND 15,291,287$ 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$ ALL OTHER GOVERNMENTAL FUNDS Reserved 13,610,616$ 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$ Unreserved, reported in Special Revenue Funds 2,575,863 2,796,582 2,630,136 1,234,478 361,876 - - - - - Capital Project Funds 5,854,524 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 TOTAL ALL OTHER GOVERNMENTAL FUNDS 22,041,003$ 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$ Data Source Audited Financial Statements - 97 - VILLAGE OF DEERFIELD, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 REVENUES Taxes 19,359,314$ 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$ Licenses and permits 898,849 1,109,682 877,546 934,518 939,098 1,390,602 2,151,791 1,454,044 1,161,276 1,271,817 Intergovernmental 489,252 524,575 512,901 660,996 831,782 1,582,943 795,364 762,016 713,470 1,349,486 Fines and forfeitures 396,164 260,435 223,465 193,060 166,175 230,320 244,100 239,668 716,522 727,445 Charges for services 535,458 467,173 566,787 954,827 561,219 606,071 657,581 701,606 261,495 251,680 Investment income 1,346,836 3,203,955 1,570,967 1,415,015 499,720 835,537 871,621 1,557,378 1,253,533 486,398 Miscellaneous 1,419,645 5,140,866 1,069,550 549,700 434,648 433,279 491,534 514,765 614,796 698,839 Total revenues 24,445,518 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 EXPENDITURES General government 2,987,855 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 Public safety 4,364,584 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 Highways and streets 1,312,867 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 Capital outlay 13,885,848 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 Debt service Principal 1,080,000 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 Interest 957,529 904,749 876,891 739,459 598,683 482,750 377,850 302,600 216,600 184,939 Total expenditures 24,588,683 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 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (143,165) (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) OTHER FINANCING SOURCES (USES) Transfers in 4,830,585 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 Transfers (out)(4,639,585) (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) 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 Total other financing sources (uses)191,000 250,025 233,013 750,979 (1,370,009) (122,729) 561,229 (1,579,130) (1,988,948) 4,977,905 NET CHANGE IN FUND BALANCES 47,835$ (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$ Debt Service as a Percentage of Noncapital Expenditures 19.04%25.82%17.85%16.62%13.75%10.36%7.34%14.43%14.43%16.29% Data Source Audited Financial Statements - 98 - VILLAGE OF DEERFIELD, ILLINOIS SALES TAX BY CATEGORY Last Ten Calendar Years Calendar Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 General merchandise 87,177$ 78,758$ 79,268$ 82,011$ 162,873$ 214,657$ 297,344$ 217,623$ 268,413$ 181,355$ Food 185,920 222,214 248,773 307,716 418,454 506,945 646,617 709,999 712,229 656,766 Drinking and eating places 373,500 398,872 457,226 476,341 472,203 469,889 604,698 666,821 749,845 756,872 Apparel 2,983 23,447 66,162 73,784 91,238 108,410 140,908 189,351 195,358 178,925 Furniture & H.H. & radio 489,107 514,293 545,153 560,267 528,154 579,127 1,026,827 836,653 784,397 676,075 Lumber, building hardware 464,986 488,534 511,579 502,467 441,858 490,021 741,273 681,704 614,752 532,637 Automobile and filling stations 153,378 189,363 166,908 160,031 157,021 168,139 264,775 317,435 257,719 283,125 Drugs and miscellaneous retail 718,124 742,858 782,309 763,484 793,503 994,536 1,707,928 1,899,467 1,877,780 2,184,421 Agriculture and all others 192,926 172,334 176,498 178,602 163,866 186,343 685,694 788,059 737,298 711,157 Manufacturers 115,031 141,888 60,744 96,720 65,151 63,701 95,169 125,147 93,150 143,018 TOTAL 2,783,132$ 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$ 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%0.00%0.50%0.50%0.50% Data Source Illinois Department of Revenue - 99 - VILLAGE OF DEERFIELD, ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years Village Lake RTA Cook RTA Home Village Fiscal County Lake County County Cook County Rule Direct State Year Rate Rate Rate Rate Rate Rate Rate 1999 0.25%0.25%0.75%1.00%0.00%1.00%5.00% 2000 0.25%0.25%0.75%1.00%0.00%1.00%5.00% 2001 0.25%0.25%0.75%1.00%0.00%1.00%5.00% 2002 0.25%0.25%0.75%1.00%0.00%1.00%5.00% 2003 0.25%0.25%0.75%1.00%0.00%1.00%5.00% 2004 0.25%0.25%0.75%1.00%0.00%1.00%5.00% 2005 0.25%0.25%0.75%1.00%0.50%1.00%5.00% 2006 0.25%0.25%0.75%1.00%0.50%1.00%5.00% 2007 0.25%0.75%0.75%1.25%0.50%1.00%5.00% 2008 0.25%0.75%1.75%1.25%1.00%1.00%5.00% Data Source Village and County Records - 100 - RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Business-Type Activities Activities Percentage Fiscal General General Total of Year Obligation Obligation Primary Personal Per Ended Bonds Bonds Government Income*Capita* 2000 22,825,000$ 4,735,000$ 27,560,000$ 1.43%1,530.94$ 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 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 105 for personal statements. - 101 - VILLAGE OF DEERFIELD, ILLINOIS RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years (1)Percentage of (1)Less: Amounts Estimat ed General Available Actual Taxable Fiscal Obligation In Debt Value of Per Year Bonds Service Fund Total Property Capita 2000 22,825,000$ 2,414,791$ 20,410,209$ 0.97%1,133.77$ 2001 20,195,000 2,660,397 17,534,603 0.79%951.93 2002 17,460,000 2,880,845 14,579,155 0.61%791.49 2003 14,735,000 2,840,619 11,894,381 0.46%645.73 2004 11,985,000 1,674,419 10,310,581 0.37%559.75 2005 9,500,000 361,876 9,138,124 0.31%496.10 2006 8,000,000 1,094,777 6,905,223 0.18%374.88 2007 6,000,000 533,758 5,466,242 0.13%296.76 2008 4,000,000 560,711 3,439,289 0.07%186.71 2009*5,000,000 472,761 4,527,239 0.10%245.78 * 2007 EAV used as it is the most recent data available Data Source (1) Audited Financial Statements - 102 - *** (1)(2) Gross Percentage *** General of Debt Village's Obligation Applicable to Share Governmental Unit Debt Government of Debt Village of Deerfield 5,000,000$ 100.000%5,000,000$ Lake County - (1)4.304%- Lake County Forest Preserve 206,524,438 (2)4.304%8,888,812 Cook County 2,953,610,000 0.136%4,016,910 Cook County Forest Preserve 121,270,000 0.136%164,927 Deerfield Park District 6,990,000 98.070%6,855,093 Park District of Highland Park 1,300,000 1.324%17,212 Northbrook Park District 17,450,000 4.289%748,431 Lake School District No. 109 18,480,000 (4)73.333%13,551,938 Lake School Distrtict No. 112 24,095,000 (1)0.193%46,503 Lake High School District No. 113 58,300,000 26.802%15,625,566 Cook High School District No. 225 96,584,614 (2)3.822%3,691,464 Community College No. 532 9,157,475 (1)(2)4.528%414,650 Metro Water Reclamation District 1,453,547,772 (3)0.139%2,020,431 North Shore Sanitary District 6,717,990 (3)0.025%1,679 4,974,027,289 56,043,616 Total gross debt 4,979,027,289 61,043,616 Less Debt Service Fund amount available - Village of Deerfield 472,761 472,761 TOTAL DIRECT AND OVERLAPPING DEBT 4,978,554,528$60,570,855$ (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, 2009 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. - 103 - VILLAGE OF DEERFIELD, ILLINOIS LEGAL DEBT MARGIN INFORMATION April 30, 2009 EQUALIZED ASSESSED VALUATION - 2008*1,534,804,968$ Legal Debt Limit - 8.625%132,376,928$ Amount of debt applicable to limit: General Obligation Bonds Series 2008 5,000,000 LEGAL DEBT MARGIN 127,376,928$ * Most Recent EAV Available Illustrative Computation of Debt Margin If Government Were Not a Home Rule Municipality The Village is a home rule municipality and, as such, has no debt limitations. If, however, the Village were a nonhome rule municipality, its available debt limit would be as follows: "The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, ...indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum...shall not be included in the foregoing percentage." The Village is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin: To date, the General Assembly has set no limits for home rule municipalities. only in excess of the following percentages of the assessed value of its taxable property...(2) if its population is more than 25,000 and less than 500,000 an aggregate of one per cent: - 104 - Median Fiscal Personal Household Unemployment Year Population Income Income Rate 2000 18,002 1,929,706,388$ 107,194$ 0.90% 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% 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 - 105 - % of % of Total Village Total Village Employer Employees Rank Population Employees Rank Population Baxter International Inc 4,500 1 24%- - Walgreen Co 2,400 2 13%1,800 1 10% Takeda Pharmaceuticals North 2,300 3 12%- - Astellas Pharma Us Inc 1,200 4 7%- - Fortune Brands 905 5 5%- - Illinois Student Assistance Commission 550 6 3%512 2 3% Deerfield High School 500 7 3%- - United Stationers Supply 500 8 3%- - Sears, Roebuck & Co.380 9 2%- - Thompson Financial LLC 350 10 2%- - Alliant Food Service - - 450 3 3% Pactiv Corp - - 400 4 2% MMI Companies - - 380 5 2% West Group - - 300 6 2% Teradyne Inc., Telecommunications Division - - 275 7 2% William M. Mercer, Inc.- - 240 8 1% Nestle Clinical Nutrition - - 225 9 1% Whitehall North - - 206 10 1% 13,585 74%4,788 27% Village population 18,420 18,002 Data Source Lake County Partners VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2009 2000 - 106 - Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 GENERAL GOVERNMENT Village Manager 3 3 3 3 3 3 3 3 3 3 Finance 7 7 7 8 8 8 9 10 10 10 Engineering 1 1 1 1 1 1 2 3 3 3 Community development 5 5 5 5 5 5 6 7 7 7 PUBLIC WORKS Administration 3 3 3 3 3 3 2 4 4 4 Street maintenance 7 7 7 7 7 7 7 7 7 7 Utilities maintenance 12 12 13 13 13 13 13 14 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 8 7 7 7 Communications 7 7 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 32 31 31 31 TOTAL 102 102 104 105 105 105 107 111 112 112 Data Source Village budget office VILLAGE OF DEERFIELD, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years - 107 - Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 PUBLIC SAFETY Police Physical arrests 611 580 515 458 552 463 498 532 587 568 Parking violations 5,043 4,830 4,446 4,113 3,911 3,260 2,332 2,625 2,690 2,385 Traffic violations 3,862 5,401 5,122 3,523 3,767 3,836 4,140 4,119 4,278 4,255 PUBLIC WORKS Street resurfacing (miles)1.63 0.00 0.00 0.91 0.00 2.21 3.11 3.18 3.21 3.14 WATER Water main breaks 84 92 76 68 110 107 141 62 77 47 Average daily consumption (gallons)2,864,885 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 Peak daily consumption (gallons)6,484,740 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 WASTEWATER Average daily treatment (gallons)3,353,425 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 Data Source Various Village departments VILLAGE OF DEERFIELD, ILLINOIS OPERATING INDICATORS Last Ten Calendar Years - 108 - Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 PUBLIC SAFETY Police Stations 1 1 1 1 1 1 1 1 1 1 Number of Police Officers 40 40 40 40 40 40 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 62 68 68 68 68 68 68 Traffic signals 8 9 9 9 9 10 10 10 10 10 WATER Water mains (miles)82 82 82 82 83 84 84 84 84 84 Fire hydrants 1,174 1,174 1,174 1,174 1,189 1,203 1,203 1,203 1,203 1,203 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)140 140 140 140 140 140 151 151 151 151 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 - 109 -