The URL can be used to link to this page

Village CAFR for year ended April 30, 2008VILLAGE OF DEERFIELD, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended April 30, 2008 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 Post-Employment Benefit Plan ........................................................55 Schedule of Employer Contribut io ns Illino is Municipal Retirement Fund ...........................................................56 Police Pensio n Fund ..................................................................................57 Other Post-Employment 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 Project 29 Fund .........................................................................................72 MAJOR ENTEPRISE FUNDS Water Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................73 Schedule of Operat ing Expenses -Budget and Actual ................................74 Schedule of Capital Assets and Depreciat io n .............................................75 Sewerage Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................76 Schedule of Operat ing Expenses -Budget and Actual ................................77 Schedule of Capital Assets and Depreciat io n .............................................78 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) MAJOR ENTEPRISE FUNDS (Continued) Refuse Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................79 NONMAJOR ENTEPRISE FUNDS Commuter Parking Lot Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................80 Schedule of Operat ing Expenses -Budget and Actual ................................81 Schedule of Capit al Assets and Depreciat io n .............................................82 INTERNAL SERVICE FUNDS Combining Statement of Net Assets ...............................................................83 Combining Statement of Revenues, Expenses and Changes in Net Assets ....................................................................................................84 Combining Statement of Cash Flows ..............................................................85 Garage Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual ...................................................................................86 Schedule of Operat ing Expenses -Budget and Actual ................................87 Vehicle and Equipment Replacement Fund Schedule of Revenues, Expenses and Changes in Net Assets -Budget and Actual .............................................88 FIDUCIARY FUNDS Schedule of Changes in Plan Net Assets -Budget and Actual - Police Pensio n Fund .....................................................................................89 Combining Statement of Changes in Assets and Liabilit ies - Agency Funds ..............................................................................................90 VILLAGE OF DEERFIELD, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) SUPPLEMENTAL DATA Long-Term Debt Requirements General Obligat io n Bond Series of 1998.........................................................91 General Obligat io n Refunding Bond Series of 2003 .......................................92 STATISTICAL SECTION Financial Trends Net Assets by Component ...................................................................................93 Change in Net Assets ..........................................................................................94-95 Fund Balances of Governmental Funds ...............................................................96 Changes in Fund Balances of Governmental Funds .............................................97 Revenue Capacit y Sales Tax by Category ........................................................................................98 Direct and Overlapping Sales Tax Rates .............................................................99 Debt Capacit y Ratios of Outstanding Debt by Type ...................................................................100 Ratios of General Bonded Debt Outstanding .......................................................101 Direct and Overlapping Bonded Debt -Governmental Act ivit ie s ........................102 Legal Debt Margin Information ..........................................................................103 Demographic and Economic Informat io n Demographic and Economic Informat io n ............................................................104 Principal Emplo yers ............................................................................................105 Operating Informat io n Full-Time Equivalent Employees ........................................................................106 Operating Indicators............................................................................................107 Capital Asset Statistics ........................................................................................108 -i - VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL OFFICIALS April 30, 2008 LEGISLATIVE VILLAGE BOARD OF TRUSTEES Steven M. Harris, Mayor Robert L. Benton Michelle Feldman Thomas Jester Harriet E. Rosenthal William S. Seiden Barbara J. Struthers Kent Street, Clerk ADMINISTRATIVE Kent Street, Village Manager FINANCE DEPARTMENT Robert W. Fialkowski Director of Finance/Treasurer Public Boards and Mayor and Board Village Attorney Commissions of Trustees Assistant to the Village Manager Village Manager 3 Employees Police Finance Community Public Works Development & Engineering 55 Employees 7 Employees 5 Employees 34 Employees Patrol Budgeting Planning Water Works Investigations Accounting Zoning Sewage Treatment Youth Treasury Code Streets Management Enforcement Communications Personnel Building Plan Vehicle Review Maintenance Records Utility Billing Permits Storm Drainage Research and Purchasing Appearance Plan Design Development Review & Review - ii - 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, 2008 the Village's unemployment rate was estimated to be 3.4%, compared to 5.2% for Lake County, 5.4% for the State of Illinois and 5.0% for the United States. The overall slowdown in the national and state economy has reached the surrounding area and affected 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 4% from 2007. 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 remained relatively stable compared to the prior year both in value and number of permits issued. In 2008 there were 52 new commercial permits (includes remodeling) issued, with a total value of $13.6 million and 24 new residential permits (primarily single family) issued with a total value of $14.6 million. There were no new major commercial occupancies during the year. The Chicagoland Conservative Jewish High School completed construction of their new campus during the vi fiscal year and opened for the school year in August, 2007. 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. No new debt was issued in FY 2007/08. 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 should be selected in early FY 2009 and final design and costs will be prepared. Meanwhile, design work was completed on the reconstruction of the satellite facilities pursuant to recommendations in the study. Construction should begin in FY 2009 to be partially funded by proceeds of a new general obligation bond issue. 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 2009, balances in the Infrastructure along with the home rule tax revenue will be used; additional debt anticipated at $5 million will be issued during FY 2009 for the capital improvement program. As part of the overall Tri-state Tollway reconstruction, work began on the widening of the Lake Cook Road overpass. Village involvement was limited to the relocation of a water main in Wilmot Road north of Lake Cook. Construction of the new Village Hall addition and remodeling was completed in January, 2008. Funding was through the Village Center Tax Increment Financing District. 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, 2007. 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-four 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, 2007. 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. MD&A 1 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2008 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 revenues exceeding total expenditures by $948,653. Com bined with other financing net use of $3,988,948,the April 30, 2008 fund balance decreased by $3,040,295. ·New building activity continued to decline due to overall slowdown in construction, especially single family residential. Total building permit revenue was $651,351 for the year, a decrease of 30% from the prior year. ·Rev enue from both the State income tax and local hotel/motel tax were higher compared to the prior year, reflecting a continued, positive recovery in business travel to Deerfield in the case of the hotel tax but the positive incom e tax revenue likely indicates a lag in a slowing state economy. ·The Village’s base sales tax (1%) increased less than 1% from the prior year; net of the Walgreen’s rebate this revenue declined reflecting a slowing of sales activity in the local economy. ·The Village retired $2,400,000 of general obligation debt during the year and did not issue any new debt. The total balance of debt outstanding as of April 30, 2008 was $6,185,000. ·The Village transferred $4,000,000 from the General Fund to the Infrastructure and Water Funds for capital project financing. These transfers represent a spend down of excess unreserved fund balances. 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 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. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 2 Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Village uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the Village’s most significant funds rather than the Village as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for non-major funds is provided in the form of combining statements in a later section of this report. The Governmental Major Funds (see pages 6 –9)are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, governmental fund statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near- term. The government-wide financial statements provide a long-term view. Comparisons between the individual governmental fund statements and the government -wide statements provide information about financing decisions and the amount invested in maintaining and improving infrastructure. These two perspectives can provide insight into the long-term impact of short-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances reconcile the differences between these two perspectives. Budgetary comparison schedules for other funds can be found in a later section of this report. These statements and schedules demonstrate compliance with the Village’s budget. Proprietary or Business-type activity funds (see pages 10 -13)reported in the fund financial statements are for those services for which the Village charges customers a fee. There are two kinds of proprietary funds, enterprise and internal service. Enterprise funds essentially encompass the same functions reported as business-type activities in the government-wide statements. Enterprise fund services are primarily provided to customers external to the Village organization such as those of the water and sewer utilities, commuter parking lots and refuse function. Internal service funds provide services and charge fees to customers within the Village organization such as equipment services (repair and maintenance of Village vehicles). Internal service funds are included in governmental activities of the government-wide financial statements. Proprietary fund statements provide both long-term and short-term financial information consistent with the focus provided by the government-wide financial statements, but with more detail for major enterprise funds. Individual fund information for internal service funds and non-major enterprise funds is found in combining statem ents 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, other post-em ployment benefits 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 68. 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 Activities Business-type Activities Total –Primary Govt. 2007 2008 2007 2008 2007 2008 Current & Other Assets 37.83 37.32 6.72 5.06 44.55 42.38 Capital Assets 60.11 64.24 19.51 21.36 79.62 85.60 Total Assets 97.94 101.56 26.23 26.42 124.17 127.98 Long-Term Liabilities 5.04 3.24 2.39 2.00 7.43 5.24 Other Liabilities 10.52 10.86 2.07 2.12 12.59 12.98 Total Liabilities 15.56 14.10 4.46 4.12 20.02 18.22 Net Assets: Investment in Capital Assets –Net of Related Debt 60.11 60.24 16.93 19.18 77.04 79.42 Restricted 4.08 4.98 --4.08 4.98 Unrestricted 18.19 22.24 4.84 3.12 23.03 25.36 Total Net Assets 82.38 87.46 21.77 22.30 104.15 109.76 The Village’s total primary government net assets increased by $5.61 million primarily due to an increase of $0.95 million in net positive operating results in the General Fund and use of cash to invest in capital outlay including new buildings. 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 Activities Business-type Activities Total –Primary Govt. 2007 2008 2007 2008 2007 2008 Revenues: Program Revenues: Charges for Service 2.73 2.49 7.45 7.60 10.18 10.09 Operating Grants and Contributions 0.54 0.52 --0.54 0.52 Capital Grants and Contributions 0.21 1.49 1.00 0.44 1.21 1.93 General Revenue: Property Taxes 6.54 6.51 0.86 0.78 7.40 7.29 Other Taxes 10.58 10.99 --10.58 10.99 Transfers in (out)-1.60 -2.00 1.60 2.00 -- Other 1.77 1.54 0.40 0.40 2.17 1.94 Total Revenue 20.77 21.54 11.31 11.22 32.08 32.76 Expenses: General Government 4.60 4.57 --4.60 4.57 Public Safety 7.15 7.23 --7.15 7.23 Highways and Streets 5.82 4.45 --5.82 4.45 Interest 0.30 0.21 --0.30 0.21 Water --4.26 6.22 4.26 6.22 Sewer --2.45 2.74 2.45 2.74 Refuse --1.50 1.52 1.50 1.52 Parking Lots --0.25 0.21 0.25 0.21 Total Expense 17.87 16.46 8.46 10.69 26.33 27.15 VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 4 Excess (Deficiency) before prior period adjust.2.90 5.08 2.85 0.53 5.75 5.61 Prior Period Adjustment And contributions 1.06 --1.06 --- Changes in Net Assets 3.96 5.08 1.79 0.53 5.75 5.61 CURRENT YEAR IMPACTS Governmental Activities Revenue In the General Fund, revenues exceeded budget by $1.47 million.Sales taxes exceeded budget by $0.45 million and building permit revenue was $0.05 million over budget –both reflected a stable local economy but a reduction in growth from the previous year. Investment income was above budget by $0.36 million due to favorable interest rate movements and larger than expected fund reserves.Hotel/motel taxes were $0.18 million over budget due to local demand for business travel associated with growing corporate headquarters located in and near the Village. Property tax revenues decreased by $0.03 million due primarily to growth in assessed value in the Tax Increment Financing District #2 which was offset by a decrease in the property tax levy. In the Infrastructure Fund, taxes exceeded budget by $0.11 million due higher home rule sales taxes than expected. Expenses Actual expenditures in the General Fund ended the year at 95% of the final budget (not including the budgeted transfer of $4 million to the Infrastructure and Water Funds for capital projects). All departments and functions were similarly below the actual budget level exc ept for Highways and Streets. The expenditures in this area were $0.33 million over budget due to the severe winter and higher than budgeted expenses for road salt and employee overtime. 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. The planned transfer was made to reduce a larger than necessary fund balance in the General Fund and delay the necessity of issuing debt for the capital projects. Construction of the new Village Hall was completed during the year. This expenditure is in the Village Center TIF District (#2). Business-type Activities Revenue A rate increase of 2.5% implemented in May, 2007 and a relatively normal summer resulted in water sales of $4.37 million, an increase of $0.12 million or 2.7% from the prior year and marginally above budget. Sewer user charges of $2.40 million were $0.03 million or 1%higher than the prior year; there was no rate change for the fiscal year. Refuse charge rates were unchanged, and revenue of $0.62 million was essentially unchanged from the prior year. Commuter parking revenue increased slightly from $0.20 million to $0.21 million. Expenses Operating expenses for the W ater Fund increased by $1.95 million or 51% primarily due to an increase in capital outlay of $1.82 million and higher energy and wholesale water costs. Sewer Fund operating expenses increased by $0.27 million due primarily to increased energy and chemical costs associated with the wastewater treatment facility and collection system. Refuse Fund operating expenses increased by $0.24 million due to the annual rate change from the contract hauler which takes place on January 1. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 5 FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS Governmental Funds At April 30, 2008, the governmental funds reported a combined fund balance of $23.9 million which is a 5.2% decrease from the beginning of the year ($25.2 million). The decrease is due to the use of reserves in the General Fund for capital improvements. Major Governmental Funds The General Fund is the Village’s primary operating fund and the largest source of day-to-day service delivery. The undesignated fund balance of the General Fund decreased $2.10 million from $17.0 to $14.9 million. The General fund cash balance of $13.8 million provides for 315 days of anticipated expenditures (FY 2009 budget). Revenues were 111%of budget of $13.8 million. Expenditures were $0.76 million less than budget (not including the transfer). This was due to lower than expected costs in all departments other than streets, where an unusually severe winter caused expenditures over budget. State shared revenues, such as income taxes and use taxes, wer e higher than anticipated at the beginning of the fiscal year which continued the third year of increasing revenues in this area. State shared revenues account for only 12.8% 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 52. General Fund Budget versus Actual Fiscal year ended April 30, 2008 (in millions) Original Am ended Budget Budget Actual Revenues Taxes 11.21 11.21 11.98 Intergovernmental 0.03 0.03 0.10 Other 2.59 2.59 3.21 Total 13.83 13.83 15.29 Expenditures & Transfers Expenditures 15.11 15.11 14.34 Other Uses ---0.01 Transfers –Net 4.00 4.00 4.00 Total 19.11 19.11 18.33 Change in Fund Balance -5.28 -5.28 -3.04 In the Tax Increment Financing District #2, the major source of revenue, increment property tax, was up 7.4% to $4.53 million. Most development activity related to the downtown commercial redevelopment has been completed; thus, the growth in increment property tax has reverted to normal market increases. Expenses for the year totaled $4.12 million (including transfers out), and consisted of construction and related expenditures on the final phase of the expansion and remodeling of the Village Hall and debt service on the 1998 TIF bonds.In the Infrastructure Fund, total revenue decreased 14% to $3.12 million (including transfers in)primarily due to a smaller transfer in from the General Fund. Expenditures for capital improvements decreased $1.5 million or 40% due to the timing of the completion 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 W ater Fund operating revenues exceeded budget $0.12 million due to an increase in the water rate of 2.5%. Actual operating expenses excluding depreciation were 70% of budget due to delays in getting planned capital projects completed. The Sewerage Fund operating expense excluding depreciation exc eeded operating revenue by $0.13 million. Lower than expected personnel costs and delayed capital improvements caused expenses to be substantially below budget. Capital expenses for the near term in this fund will be transferred to the Infrastructure Fund.The replacement of the treatment plant will likely use a new debt issuance. VILLAGE OF DEERFIELD, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS MD&A 6 Internal Service Funds The Village’s combined internal service funds net assets were $5.0 million as of April 30, 2008, with $4.9 million of the total accumulated for major equipment purchases in the Replacement Fund. Total revenue exceeded expenses by $0.05 million 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, 2008 was $64.2 million. The Village’s investment in capital assets, net of accumulated depreciation, for business-type activities as of April 30, 2008 was $21.4 million. Major capital asset events during the current fiscal year included completion of the Village Hall addition and remodeling along with 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 $6.19 million. None of this amount is funded directly from property taxes. The alternate funding for this outstanding debt is from tax increment finance district revenue (TIF District #2) and water sales revenues. No new debt was issued during the current year. As a home rule government, under Illinois law, the Village has no legal debt limit. As of April 30, 2008 the total Village debt represented 0.13%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 September 2006. 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 local Village micro-economy continues to hold firm as the overall State economy has started to plateau. The Village is an affluent residential community with a substantial office/commercial presence including a number of headquarters operations in the health services area. Property taxes are a minor part of the overall operating revenues. As a portion of the General Fund, property tax revenue decreased from 18% of total revenue in FY 2007 to 13% in FY 2008. Both retail areas of the Village are new or newly rehabilitated, which has contributed to the stability in year to year sales tax revenue. Building permit revenues have also stabilized with 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 slightly. The Village’s hotel/motel tax continued its recovery with an increase of $0.10 million or 5% from last year. All of the Village’s six hotels have experienced increased occupancies during the year. The opening of the new Takeda Pharmaceutical corporate headquarters and continued growth in Walgreen’s and other local corporate employment provides additional business demand for rooms which is the primary market for these hotels. Contacting the Village’s Financial Management This financial report is designed to provide a general overview of the Village’s finances, comply with finance-related laws and regulations and demonstrate the Village’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the Village’s Finance Director, 850 Waukegan Road, Deerfield, IL 60015 or access the Village website at www.deerfield-il.org. Component Unit Governmental Business-Type Deerfield Activities Activities Total Public Library ASSETS Cash and investments 24,828,546$ 3,018,686$ 27,847,232$ 3,789,330$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 6,824,344 753,459 7,577,803 2,453,841 Accounts 579,473 991,543 1,571,016 - Accrued interest 73,780 9,643 83,423 - In ventory 177,794 136,360 314,154 - Due from other governments 1,904,370 - 1,904,370 - Prepaid expenses 345,939 - 345,939 - Land held for resale 1,582,087 - 1,582,087 - Deferred charges - 146,335 146,335 - Net pension asset 996,454 - 996,454 - Capital assets not being depreciated 19,265,589 2,225,509 21,491,098 65,493 Capital assets (net of accumulated depreciation)44,977,600 19,135,830 64,113,430 163,334 Total assets 101,555,976 26,417,365 127,973,341 6,471,998 LIABILITIES Accounts payable 1,131,164 762,297 1,893,461 53,394 Accrued payroll 291,768 53,029 344,797 57,000 Retainage payable 59,727 26,675 86,402 - Deposits payable 39,378 10,476 49,854 - Other payables 5,100 - 5,100 - Accrued interest payable 14,415 28,260 42,675 - Unearned revenues 7,168,066 808,950 7,977,016 2,625,000 Noncurrent liabilities Due within one year 2,144,261 434,165 2,578,426 64,535 Due in more than one year 3,241,358 1,996,793 5,238,151 41,604 Total liabilities 14,095,237 4,120,645 18,215,882 2,841,533 NET ASSETS In vestment in capital assets, net of related debt 60,243,189 19,176,339 79,419,528 228,827 Restricted for Maintenance of roadways 602,626 - 602,626 - Public safety 904,020 - 904,020 - Economic development 2,911,983 - 2,911,983 - Debt service 560,711 - 560,711 - Culture and recreation - - - 3,401,638 Unrestricted 22,238,210 3,120,381 25,358,591 - TOTAL NET ASSETS 87,460,739$ 22,296,720$ 109,757,459$ 3,630,465$ Primary Government VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF NET ASSETS April 30, 2008 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 4,569,982$ 1,480,008$ -$ -$ Public safety 7,232,143 935,302 1,210 118,737 Highways and streets 4,451,069 75,400 523,213 1,373,416 Interest 209,430 - - - Total governmental activities 16,462,624 2,490,710 524,423 1,492,153 Business-Type Activities Water 6,224,262 4,365,767 - 299,910 Sewerage 2,735,053 2,396,295 - 141,695 Refuse disposal 1,520,190 624,349 - - Commuter parking lot 210,307 212,585 - - Total business-type activities 10,689,812 7,598,996 - 441,605 TOTAL PRIMARY GOVERNMENT 27,152,436$ 10,089,706$ 524,423$ 1,933,758$ COMPONENT UNIT Deerfield Public Library 2,362,868$ 81,327$ 35,581$ -$ Program Revenues VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended April 30, 2008 - 4 - Component Unit Deerfield Governmental Business-Type Public Activities Activities Total Library (3,089,974)$ -$ (3,089,974)$ -$ (6,176,894) - (6,176,894) - (2,479,040) - (2,479,040) - (209,430) - (209,430) - (11,955,338) - (11,955,338) - - (1,558,585) (1,558,585) - - (197,063) (197,063) - - (895,841) (895,841) - - 2,278 2,278 - - (2,649,211) (2,649,211) - (11,955,338) (2,649,211) (14,604,549) - - - - (2,245,960) General Revenues Taxes Property 6,512,605 780,785 7,293,390 2,299,316 Replacement 105,043 - 105,043 92,369 Sales 4,552,097 - 4,552,097 - Home rule sales 1,913,268 - 1,913,268 - Income 1,695,991 - 1,695,991 - Local use 260,520 - 260,520 - Hotel/motel 2,108,580 - 2,108,580 - Simplified telecommunications 354,984 - 354,984 - Investment income 1,253,533 192,967 1,446,500 169,506 Miscellaneous 278,667 204,343 483,010 6,395 Transfers in (out)(2,000,000) 2,000,000 - - Total 17,035,288 3,178,095 20,213,383 2,567,586 CHANGE IN NET ASSETS 5,079,950 528,884 5,608,834 321,626 NET ASSETS, MAY 1 82,380,789 21,767,836 104,148,625 3,308,839 NET ASSETS, APRIL 30 87,460,739$ 22,296,720$ 109,757,459$ 3,630,465$ 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 13,755,461$ 2,082,380$ 3,265,071$ 559,522$ 1,598,318$ 21,260,752$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 1,836,023 41,913 4,946,408 - - 6,824,344 Accounts 498,069 7,410 - - 72,566 578,045 Accrued interest 43,042 4,098 12,454 1,489 3,655 64,738 Due from other governments 1,634,457 228,679 - - 41,234 1,904,370 Advance to other funds 1,837,170 - - - - 1,837,170 Inventory 50,133 - - - - 50,133 Prepaid items 345,939 - - - - 345,939 Land held for resale - - 1,582,087 - - 1,582,087 TOTAL ASSETS 20,000,294$ 2,364,480$ 9,806,020$ 561,011$ 1,715,773$ 34,447,578$ LIABILITIES Accounts payable 576,026$ 469,359$ 71,618$ 300$ 3,490$ 1,120,793$ Accrued payroll 286,606 - - - - 286,606 Deposits payable 459 - - - 38,919 39,378 Retainage payable - 20,886 38,841 - - 59,727 Other payables 5,100 - - - - 5,100 Deferred property taxes 1,984,950 45,000 4,946,408 - - 6,976,358 Deferred grant revenue - 191,708 - - - 191,708 Advance from other funds - - 1,837,170 - - 1,837,170 Total liabilities 2,853,141 726,953 6,894,037 300 42,409 10,516,840 FUND BALANCES Reserved for inventory 50,133 - - - - 50,133 Reserved for prepaid items 345,939 - - - - 345,939 Reserved for long-term advance 1,837,170 - - - - 1,837,170 Reserved for debt service - - - 560,711 - 560,711 Reserved for maintenance of roadways - - - - 602,626 602,626 Reserved for public safety - - - - 904,020 904,020 Reserved for economic development - - 1,329,896 - - 1,329,896 Reserved for land held for resale - - 1,582,087 - - 1,582,087 Unreserved Undesignated - General Fund 14,913,911 - - - - 14,913,911 Undesignated - Capital Projects Funds - 1,637,527 - - 166,718 1,804,245 Total fund balances 17,147,153 1,637,527 2,911,983 560,711 1,673,364 23,930,738 TOTAL LIABILITIES AND FUND BALANCES 20,000,294$ 2,364,480$ 9,806,020$ 561,011$ 1,715,773$ 34,447,578$ LIABILITIES AND FUND BALANCES VILLAGE OF DEERFIELD, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS April 30, 2008 ASSETS See accompanying notes to financial statements. - 6 - FUND BALANCES OF GOVERNMENTAL FUNDS 23,930,738$ 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 64,243,189$ Less internal service funds (1,333,041)62,910,148 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Bonds payable (4,000,000) Other post-employment benefit payable (87,900) Compensated absences (1,297,719) Less internal service funds (20,788)(1,276,931) Accrued interest on long-term liabilities is shown as a liability on the statement of net assets (14,415) The net pension assets of the police pension fund are included in the governmental activities in the statement of net assets 996,454 The net assets of the internal service fund are included in the governmental activities in the statement of net assets 5,002,645 NET ASSETS OF GOVERNMENTAL ACTIVITIES 87,460,739$ April 30, 2008 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, 2008 Tax Increment Infrastructure Financing Debt Nonmajor General Replacement District 2 Service Governmental Total REVENUES Taxes 11,975,652$ 1,000,132$ 4,527,305$ -$ -$ 17,503,089$ Licenses and permits 1,161,276 - - - - 1,161,276 Intergovernmental 96,985 25,198 - - 591,287 713,470 Charges for services 348,528 - - - 367,994 716,522 Fines and forfeits 261,495 - - - - 261,495 Investment income 838,215 86,460 225,489 27,553 75,816 1,253,533 Miscellaneous 609,796 5,000 - - - 614,796 Total revenues 15,291,947 1,116,790 4,752,794 27,553 1,035,097 22,224,181 EXPENDITURES Current General government 4,827,462 - - - - 4,827,462 Public safety 7,080,991 - - - 192,512 7,273,503 Highways and streets 2,434,841 - - - 600,000 3,034,841 Capital outlay - 2,297,464 1,907,520 - - 4,204,984 Debt service Principal retirement - - - 2,000,000 - 2,000,000 Interest and fiscal charges - - - 216,600 - 216,600 Total expenditures 14,343,294 2,297,464 1,907,520 2,216,600 792,512 21,557,390 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 948,653 (1,180,674) 2,845,274 (2,189,047) 242,585 666,791 OTHER FINANCING SOURCES (USES) Transfers in - 2,000,000 - 2,216,000 - 4,216,000 Transfers (out)(4,000,000) - (2,216,000) - - (6,216,000) Sale of capital assets 11,052 - - - - 11,052 Total other financing sources (uses)(3,988,948) 2,000,000 (2,216,000) 2,216,000 - (1,988,948) NET CHANGE IN FUND BALANCES (3,040,295) 819,326 629,274 26,953 242,585 (1,322,157) FUND BALANCES, MAY 1 20,187,448 818,201 2,282,709 533,758 1,430,779 25,252,895 FUND BALANCES, APRIL 30 17,147,153$ 1,637,527$ 2,911,983$ 560,711$ 1,673,364$ 23,930,738$ See accompanying notes to financial statements. - 8 - NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (1,322,157)$ 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 5,457,786$ Less internal service funds (310,082)5,147,704 Contributions of capital assets are reported as revenue in the statement of activities 1,307,342 The repayment of the principal portion long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities 2,000,000 The decrease in interest payable is reported as a reduction of expense on the statement of activities 7,170 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 (2,113,587) Less internal service funds 218,138 (1,895,449) The loss on disposal of capital assets for road reconstruction increases the highways and streets expense on the statement of activities (514,480) The decrease in compensated absences is reported as a reduction to expense on the statement of activities (94,622) The increase in the other post-employment benefit payable is reported as an addition to expense on the statement of activities (87,900) The decrease in net pension asset is reported as an addition to expense on the statement of activities (12,620) The change in net assets of certain activities of internal service funds is in governmental funds 544,962 CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 5,079,950$ For the Year Ended April 30, 2008 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, 2008 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service CURRENT ASSETS Cash and investments 862,905$ 1,095,862$ 360,452$ 699,467$ 3,018,686$ 3,567,794$ Receivables Property taxes - - 753,459 - 753,459 - Accounts - billed 71,272 109,293 21,581 - 202,146 1,428 Accounts - unbilled 414,633 277,761 97,003 - 789,397 - Accrued interest 2,166 3,831 1,706 1,940 9,643 9,042 Inventory 121,081 15,279 - - 136,360 127,661 Total current assets 1,472,057 1,502,026 1,234,201 701,407 4,909,691 3,705,925 NONCURRENT ASSETS Deferred bond issuance costs 146,335 - - - 146,335 - Total noncurrent assets 146,335 - - - 146,335 - CAPITAL ASSETS Nondepreciable 2,011,333 136,676 - 77,500 2,225,509 - Depreciable 16,663,782 7,056,608 - 1,950,831 25,671,221 2,947,550 Accumulated depreciation (3,305,638) (2,535,583) - (694,170) (6,535,391) (1,614,509) Net capital assets 15,369,477 4,657,701 - 1,334,161 21,361,339 1,333,041 Total assets 16,987,869 6,159,727 1,234,201 2,035,568 26,417,365 5,038,966 CURRENT LIABILITIES Accounts payable 273,297 365,142 122,023 1,835 762,297 10,371 Accrued payroll 19,555 32,824 - 650 53,029 5,162 Deposits payable 7,722 2,754 - - 10,476 - Retainage payable 26,675 - - - 26,675 - Accrued interest payable 28,260 - - - 28,260 - Deferred property taxes - - 808,950 - 808,950 - Compensated absences payable 10,178 13,212 - 775 24,165 2,079 Current portion of general obligations bonds payable 410,000 - - - 410,000 - Total current liabilities 775,687 413,932 930,973 3,260 2,123,852 17,612 LONG-TERM LIABILITIES Compensated absences payable 91,606 118,907 - 6,980 217,493 18,709 Other post-employment benefit payable 500 3,800 - - 4,300 - General obligation bonds payable 1,775,000 - - - 1,775,000 - Total long-term liabilities 1,867,106 122,707 - 6,980 1,996,793 18,709 Total liabilities 2,642,793 536,639 930,973 10,240 4,120,645 36,321 NET ASSETS Invested in capital assets, net of related debt 13,184,477 4,657,701 - 1,334,161 19,176,339 1,333,041 Unrestricted 1,160,599 965,387 303,228 691,167 3,120,381 3,669,604 TOTAL NET ASSETS 14,345,076$ 5,623,088$ 303,228$ 2,025,328$ 22,296,720$ 5,002,645$ 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, 2008 Governmental Activities Nonmajor Enterprise Total Internal Water Sewerage Refuse (Parking Lot)Enterprise Service OPERATING REVENUES Charges for services 4,365,767$ 2,396,295$ 624,349$ 212,585$ 7,598,996$ 886,935$ Miscellaneous 127,619 69,371 6,353 1,000 204,343 9,540 Total operating revenues 4,493,386 2,465,666 630,702 213,585 7,803,339 896,475 OPERATING EXPENSES Administration 451,530 401,505 - - 853,035 - Operations 5,332,157 2,192,950 1,520,190 183,570 9,228,867 332,415 Commodities - - - - - 67,801 Total operating expenses 5,783,687 2,594,455 1,520,190 183,570 10,081,902 400,216 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (1,290,301) (128,789) (889,488) 30,015 (2,278,563) 496,259 Depreciation 340,314 140,598 - 26,737 507,649 218,138 OPERATING INCOME (LOSS)(1,630,615) (269,387) (889,488) 3,278 (2,786,212) 278,121 NONOPERATING REVENUES (EXPENSES) Investment income 38,054 84,058 32,495 38,360 192,967 178,845 Property taxes - - 780,785 - 780,785 - Gain on disposal of capital assets - - - - - 87,996 Interest expense (100,261) - - - (100,261) - Total nonoperating revenues (expenses)(62,207) 84,058 813,280 38,360 873,491 266,841 INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS (1,692,822) (185,329) (76,208) 41,638 (1,912,721) 544,962 TRANSFERS IN 2,000,000 - - - 2,000,000 - CONTRIBUTIONS 299,910 141,695 - - 441,605 - CHANGE IN NET ASSETS 607,088 (43,634) (76,208) 41,638 528,884 544,962 NET ASSETS, MAY 1 13,737,988 5,666,722 379,436 1,983,690 21,767,836 4,457,683 NET ASSETS, APRIL 30 14,345,076$ 5,623,088$ 303,228$ 2,025,328$ 22,296,720$ 5,002,645$ 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, 2008 Governmental Activities Nonmajor Enterprise Total Internal Water Sewer Refuse (Parking Lot)Enterprise Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 4,428,130$ 2,374,246$ 624,978$ 212,585$ 7,639,939$ -$ Receipts from interfund services - - - - - 886,240 Receipts from miscellaneous revenues 127,619 69,371 6,353 1,000 204,343 9,540 Payments to suppliers (4,788,489) (930,185) (1,415,944) (169,926) (7,304,544) (218,773) Payments to employees (931,059) (1,458,460) (61,621) (23,733) (2,474,873) (207,093) Payments for interfund services (70,572) (101,861) (40,762) - (213,195) - Net cash from operating activities (1,234,371) (46,889) (886,996) 19,926 (2,148,330) 469,914 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in (out)2,000,000 - - - 2,000,000 - Property taxes - - 779,475 - 779,475 - Net cash from noncapital financing activities 2,000,000 - 779,475 - 2,779,475 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - - - - - 87,996 Capital assets purchased (979,885) (935,872) - - (1,915,757) (310,082) Bond principal payments (400,000) - - - (400,000) - Bond interest payments (77,220) - - - (77,220) - Net cash from capital and related financing activities (1,457,105) (935,872) - - (2,392,977) (222,086) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 46,579 83,575 35,716 41,323 207,193 192,069 Net cash from investing activities 46,579 83,575 35,716 41,323 207,193 192,069 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (644,897) (899,186) (71,805) 61,249 (1,554,639) 439,897 CASH AND CASH EQUIVALENTS, MAY 1 1,507,802 1,995,048 432,257 638,218 4,573,325 3,127,897 CASH AND CASH EQUIVALENTS, APRIL 30 862,905$ 1,095,862$ 360,452$ 699,467$ 3,018,686$ 3,567,794$ 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, 2008 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)(1,630,615)$ (269,387)$ (889,488)$ 3,278$ (2,786,212)$ 278,121$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation and amortization 340,314 140,598 - 26,737 507,649 218,138 (Increase) decrease in Receivables 62,363 (22,049) 629 - 40,943 (695) Inventories (3,382) 612 - - (2,770) (34,141) Prepaids 11,160 15,860 516 482 28,018 1,099 Increase (decrease) in Accounts payable (12,563) 66,032 1,347 (11,954) 42,862 (1,269) Deposits payable 2,917 594 - - 3,511 - Accrued payroll 1,213 10,995 - 176 12,384 2,093 Other post-employment benefit payable 500 3,800 - - 4,300 - Compensated absences payable (6,278) 6,056 - 1,207 985 6,568 NET CASH FROM OPERATING ACTIVITIES (1,234,371)$ (46,889)$ (886,996)$ 19,926$ (2,148,330)$ 469,914$ NONCASH TRANSACTIONS Contributions of capital assets by other funds 299,910$ 141,695$ -$ -$ 441,605$ -$ TOTAL NONCASH TRANSACTIONS 299,910$ 141,695$ -$ -$ 441,605$ -$ Business-Type Activities See accompanying notes to financial statements. - 13 - Pension Agency Trust Fund Funds ASSETS Cash and cash equivalents 911,289$ 1,666,762$ Investments U.S. Treasury obligations 8,840,294 - U.S. agencies securities 2,730,475 - Mutual funds 12,128,404 - Municipal bonds 1,347,641 - Negotiable certificates of deposit 274,256 - Receivables Accrued interest 88,494 217 Total assets 26,320,853 1,666,979$ LIABILITIES Accounts payable 22,600 31,697$ Deposits payable - 1,560,699 Other payables - 74,583 Total liabilities 22,600 1,666,979$ NET ASSETS HELD IN TRUST FOR PENSION BENEFITS 26,298,253$ VILLAGE OF DEERFIELD, ILLINOIS STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS April 30, 2008 See accompanying notes to financial statements. - 14 - ADDITIONS Contributions - employer 698,335$ Contributions - employee 418,205 Total contributions 1,116,540 Investment income Net appreciation (depreciation) in fair value of investments (63,137) Interest earned on investments 594,853 Total investment income 531,716 Less investment expense (1,538) Net investment income 530,178 Total additions 1,646,718 DEDUCTIONS Benefits and refunds Pension payments 1,312,162 Separation refunds 75,446 Administrative 9,401 Total deductions 1,397,009 NET INCREASE 249,709 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1 26,048,544 April 30 26,298,253$ VILLAGE OF DEERFIELD, ILLINOIS PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended April 30, 2008 See accompanying notes to financial statements. - 15 - -16 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS April 30, 2008 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 st reet 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 co llect ible within 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 Presentat io 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 state at year end on behalf o f t he Village also are recognized as revenue. Permit revenues are not suscept ible to accrual because generally they are not measurable until received in cash. The Village reports deferred revenue on its financial statements. Deferred revenues arise when a potential revenue does not meet both the “measurable”and “available” criteria for recognit io n in t he current period. Deferred revenues also arise when resources are received by the Village before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognit io n criteria are met or when the Village has a legal claim to the resources, the liability fo r 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 non- negotiable cert ificates of deposit are stated at cost or amortized cost. Investme nt s with a mat urity greater than one year when purchased and all invest me nt s of the pensio n t rust funds are stated at fair value. Fair value is based on prices listed on nat io nal exchanges as of April 30, 2008 fo r debt and equit y s ecurities. f.Short -Term Interfu nd Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “due from other funds”or “due to other funds”on the balance sheet. Short -term int erfund loans, if any, are classified as “int erfund receivables/payables.” VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -22 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) g.Ad vances to Other Funds Noncurrent portions of lo ng-term int erfund loan receivables are reported as advances between funds in the fund financial statements. The advances are offset equally by a fund balance reserve account in applicable governmental funds to ind icate that they are not available for appropriat io n and are not expendable available financial resources. h.Inventories Inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The costs of governmental fund inventories are recorded as expenditures when consumed rather than when purchased. i.Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. j.Capital Assets Capital assets, which include property, plant, equipment, water and sewer system and infrastructure assets (e.g., roads, bridges,and similar items), are reported in the applicable governmental or business-type activit ies columns in the government-wide financial statements.Capital assets are defined by the Village as assets with an init ial, individual cost in excess of $25,000 and an estimated useful life in excess of one year. All purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their est imated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -23 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j.Capital Assets (Continued) Depreciat io n of buildings,equipment, water/sewer systems and vehicles is computed using the straight-line method over the fo llo wing useful lives: Years Buildings and building improvements 20-50 Parking improvements 15-50 Water/sewer system 40-60 Vehicles, machinery and equipment 4-20 Infrastructure 20-50 k.Compensated Absences Vested or accumulated vacat io n le ave, including related social securit y and medicare, that is owed to retirees or terminated employees is reported as an expenditure and a fund liabilit y of the governmental fund that will pay it in t he fund financial statements and the remainder is reported in long-term debt. Vested or accumulated vacation leave and vested sick leave of proprietary fu nds at both levels and governmental activit ies at the government -wide level is recorded as an expense and liabilit y as the benefit s accrue to emplo yees. l.Long-Term Obligat io ns In the government-wide financial statements, and proprietary fu nds in t he fund financial statements, long-term debt and other long-term obligations are reported as liabilit ies in the applicable governmental act ivit ies,business-type activit ies or proprietary fu nd financial statements. Bond premiums and discounts, as well as issuance costs and gains/losses on refundings, are deferred and amortized over the life o f t he bonds using the bonds outstanding method, which approximates the effect ive interest method. Bonds payable are reported net of the applicable bond premium or discount and gains/losses on refundings. Bond 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 period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld fro m t he actual debt proceeds received, are reported as expenditures. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -24 - 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) m.Fund Equit y/Net Assets In the fund financial statements, governmental funds report reservatio ns of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative 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, 2008, 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. 2.DEPOSITS AND INVESTMENTS The Village maintains a cash and invest me nt pool that is available for use by all funds, except the pension 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 classificatio 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 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, 2008: Investment Maturities (in Years) Fair Greater than Value Less than 1 1-5 6-10 10 U.S. Agency obligations $8,551,469 $3,582,825 $1,610,210 $2,358,244 $1,000,190 Illinois Funds 20,000,368 20,000,368 --- TOTAL $28,551,837 $23,583,193 $1,610,210 $2,358,244 $1,000,190 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 funds not needed within a three year period. Ho wever, the investment policy does not limit the maximum maturity length of invest me nt s. Invest me nt s may be purchased with maturit ie s to match future projects or liabilit y requirements. In addit io n, the policy requires the Village to structure the investment portfolio so that securit ie s mature to meet cash requirements fo r 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 securit y 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 po licies 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 (Co nt inued) 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, 2008: Investment Maturities (in Years) Fair Greater than Value Less than 1 1-5 6-10 10 U.S. Agency obligations $2,730,475 $503,750 $520,872 $501,405 $1,204,448 U.S. Treasury obligations 8,840,294 -2,636,812 154,137 6,049,345 Municipal bonds 1,347,641 --1,048,592 299,049 Illinois Funds 911,289 911,289 --- Negotiable certificates of deposit 274,256 274,256 --- TOTAL $14,103,955 $1,689,295 $3,157,684 $1,704,134 $7,552,842 In accordance with its invest me nt policy, the Police Pensio n Fund limit s it s exposure to interest rate risk by structuring the portfolio to provide liquidit y fo r operating funds and maximizing yields for funds not needed within a one year period. The investment policy does not limit the maximum maturity length of investme nt s in t he 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 securities 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 obligations are rated by Moody’s between AA2 and AAA and the municipal bonds are rated between AA3 and AAA. Illino is Funds is rated AAA by Standard and Poor’s. The invest me nt policy is silent on minimum ratings required. Custodial credit risk for invest me nt s is t he risk that, in the event of the failure of the counterparty to the investment, the Police Pensio n 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. Illinois Funds and the mut ual 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 invest me nt vehicle. With the exception of U.S. Treasury securit ies and authorized pools, no more than 60% of the Police Pensio n Fund’s total investment portfolio can be invested in a single securit y type or with a single financial inst it ution. The Police Pensio n Fund’s invest me nt policy does not specifically prohibit the use of or the invest me nt in derivat ives. 3.RECEIVABLES -TAXES Property taxes for 2007 attach as an enforceable lien on January 1, 2007 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, 2008 and August 1, 2008 and are payable in two installments, on or about March 1, 2008 and September 1, 2008. The County co llects such taxes and remits them periodically. The 2008 tax levy, which attached as an enforceable lien on property as of January 1, 2008, has not been recorded as a receivable as of April 30, 2008 as the tax has not yet been levied by the Village and will not be levied unt il D ecember 2008, and, therefore, the levy is not measurable at April 30, 2008. 4.CAPITAL ASSETS Capital asset activit y for the year ended April 30, 2008 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 4,678,682 75,480 4,678,682 75,480 Total capital assets not being depreciated 23,868,791 75,480 4,678,682 19,265,589 Capital assets being depreciated Buildings and improvements 5,704,293 6,609,909 82,169 12,232,033 Vehicles, machinery and equipment 2,862,665 310,082 193,937 2,978,810 Infrastructure 85,545,825 4,448,340 1,764,764 89,229,401 Total capital assets being depreciated 95,112,783 11,368,331 2,040,870 104,440,244 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 $1,789,362 $225,243 $82,169 $1,932,436 Vehicles, machinery and equipment 1,591,872 221,264 193,937 1,619,199 Infrastructure 55,494,213 1,667,080 1,250,284 55,911,009 Total accumulated depreciation 58,875,447 2,113,587 1,526,390 59,462,644 Total capital assets being depreciated, net 36,237,336 9,254,744 514,480 44,977,600 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $60,106,127 $9,330,224 $5,193,162 $64,243,189 BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $1,955,456 $-$-$1,955,456 Construction in progress -270,053 -270,053 Total capital assets not being depreciated 1,955,456 270,053 -2,225,509 Capital assets being depr eciated Buildings and improvements 6,966,127 539,167 -7,505,294 Parking lot improvements 1,950,830 --1,950,830 Vehicles, machinery and equipment 595,397 --595,397 Water distribution system 10,923,584 1,146,418 181,740 11,888,262 Sanitary sewer system 3,351,555 401,724 21,843 3,731,436 Total capital assets being depreciated 23,787,493 2,087,309 203,583 25,671,219 Less accumulated depreciation for Buildings and improvements 2,724,806 157,055 -2,881,861 Parking lot improvements 667,432 26,737 -694,169 Vehicles, machinery and equipment 540,313 8,323 -548,636 Water distribution system 1,451,250 240,154 181,740 1,509,664 Sanitary sewer system 847,522 75,380 21,843 901,059 Total accumulated depreciation 6,231,323 507,649 203,583 6,535,389 Total capital assets being depreciated, net 17,556,170 1,579,660 -19,135,830 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $19,511,626 $1,849,713 $-$21,361,339 Depreciat io n expense was charged to funct io ns/programs of the primary government as fo llo ws: GOVERNMENTAL ACTIVITIES General government $91,956 Public safety 117,236 Highways and streets, including depreciation of general infrastructure assets 1,904,395 DEPRECIATION EXPENSE -GOVERNMENTAL ACTIVITIES $2,113,587 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, 2009; payable in annual installments; interest rates from 4.20% to 4.35%) Debt Service**$6,000,000 $-$2,000,000 $4,000,000 $2,000,000 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*2,585,000 -400,000 2,185,000 410,000 TOTAL $8,585,000 $-$2,400,000 $6,185,000 $2,410,000 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -32 - 6.LONG-TERM DEBT (Continued) a.General Obligat io n Bonds (Continued) 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 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. 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 2009 $2,000,000 $130,000 $2,130,000 $410,000 $67,820 $477,820 2010 2,000,000 43,500 2,043,500 425,000 57,365 482,365 2011 ---435,000 44,827 479,827 2012 ---450,000 31,125 481,125 2013 ---465,000 16,275 481,275 TOTAL $4,000,000 $173,500 $4,173,500 $2,185,000 $217,412 $2,402,412 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 $6,000 ,000 $-$2,000,000 $4,000,000 $2,000,000 Compensated absences (Governmental)General 1,182,309 246,421 151,799 1,276,931 142,182 Compensated absences (Internal Service)Garage 14,220 7,990 1,422 20,788 2,079 Other post-employment benefit General -87,900 -87,900 - TOTAL GOVERNMENTAL ACTIVITIES $7,196,529 $342,311 $2,153,221 $5,385,619 $2,144,261 VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -33 - 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 $2,585,000 $-$400,000 $2,185,000 $410,000 Compensated absences (Enterprise) Water/Sewer/ Parking 240,673 11,012 10,027 241,658 24,165 Other post-employment benefit Water/Sewer -4,300 -4,300 - TOTAL BUSINESS-TYPE ACTIVITIES $2,825,673 $15,312 $410,027 $2,430,958 $434,165 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 municipalities, payable fro m ad valorem property tax receipts, only in excess o f t he fo llo wing percentages of the assessed value of its taxable property...(2) if its populat io n is mo re than 25,000 and less than 500,000 an aggregate of one percent: ...indebtedness which is outstanding on the effect ive date (July 1, 1971) of this const it utio n or which is thereafter approved by referendum... shall not be included in the foregoing percentage amounts.” To date, the General Assembly has set no limit s fo r home rule municipalit ies. The Village qualifies as a Home Rule Unit under Section 6(a) of Article VII of the 1970 Constitution of Illino is and, under the powers granted by this sect io n, can exercise any power and perform any funct io n pertaining to its government and affairs that is not prohibited by the Illinois Co mp iled Statutes. e.Noncommit ment Debt -Industrial Development Revenue Bonds The issuance of Industrial Development Revenue Bonds (IDRB’s) by t he Village is to finance in who le or in part the cost of the acquisit io n, 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) -34 - 6.LONG-TERM DEBT (Continued) e.Noncommit ment Debt -Industrial Development Revenue Bonds (Continued) IDRB’s 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 IDRB’s, the transact io ns 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, 2008, 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 a.Ad vances To/From Other Funds Fund Receivable Fund Payable Fund General $1,837,170 $- Tax Incremental Financing District 2 -1,837,170 TOTAL $1,837,170 $1,837,170 The purpose of significant advances to/from other funds is as follo ws: ·In addit io n to the 1998 issue, money was advanced fro m the General Fund to the Tax Incremental Financing District (TIF) 2 Fund to fund public improvements with the recognit io n t hat this would eventually be paid back fro m fut ure TIF taxes. It is intended that this payback would begin as the increment grows in excess of the funds necessary for the project. The repayment began in fiscal year 2006 as $500,000 was repaid to the General Fund; in fiscal year 2008,$1,250,000 was repaid to the General Fund and it is ant ic ipated that this will cont inue at some level until the ent ir e amount is repaid before the TIF terminates. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -35 - 7.INTERFUND ASSETS/LIABILITIES (Continued) b.Interfund Transfers Transfers From Transfers To Amount Tax Increment Financing District 2 Debt Service $2,216,000 General Water 2,000,000 General Infrastructure Replacement 2,000,000 TOTAL $6,216,000 The purpose of significant transfers to/from other funds is as follo ws: ·$2,216,000 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. ·$2,000,000 transferred fro m t he General Fund to the Water Fund is to offset the cost of improvements to the water system. The amount will not be repaid. ·$2,000,000 transferred fro m t he General Fund to the Infrastructure Replacement Fund is to provide addit io nal funding needed to complete budgeted projects. 8.COMMITMENTS High-Level Excess Liabilit y P ool (HELP) The Village has committed to purchase excess liability insurance from HELP, a jo int venture of Illino is municipalit ie s. These amounts have been calculated using the Village’s current allocat io n percentage of 3.65%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. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -36 - 9.CONTINGENT LIABILITIES a.Litigat ion 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 liabilit y of the applicable funds. The amount, if any, o f expenditures that may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. c.High-Level Excess Liabilit y P ool (HELP) The Village’s agreement with HELP provides that each member is liable for its proportionate share of any costs arising fro m defaults in payment obligations by other members. 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 thirt y-five municipalit ies. SWALCO is a municipal corporation and public body polit ic and corporate established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illino is, as amended (the Act). SWALCO is empowered under the Act to plan, construct, finance, operate and maintain a solid waste disposal system to serve its members. These percentage shares are subject to change in future years based on the combination of the population and equalized assessed valuat io n of the municipalit ies. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -37 - 10.JOINT VENTURES (Continued) Solid Waste Agency o f Lake Count y (SWALCO)(Continued) Descript io n of Jo int Venture (Continued) The members form a contiguous geographic service area, which is located in Lake County. Under the Agency Agreement, addit io nal members may jo in S WALCO upon the approval of each member. SWALCO is governed by a Board of Directors, which consists of one appointed representative fro m each member municipalit y.Each Director has an equal vote. The officers of SWALCO are appointed by the Board of Directors. The Board of Directors determines the general po licy o f S WALCO; makes all appropriations; approves contracts; adopts resolut ions 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, 2008 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, Illinois 60031. The Village does not have an equit y int erest in SWALCO at April 30, 2008. 11.OTHER POST-EMPLOYMENT BENEFITS a.Plan Descript io n In addit io n to providing the pensio n benefit s described, the Village provides post- employment health care benefits (OPEB) for retired employees through a single- employer defined benefit plan. The benefits, benefit levels, emplo yee 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. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -38 - 11.OTHER POST-EMPLOYMENT BENEFITS (Continued) b.Benefit s Provided The Village provides pre and post Medicare post-retirement health insurance to retirees, their spouses and dependents (enrolled at time of emplo yee’s retirement). To be eligible for benefits, the emplo yee 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. 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 (expense) of $193,800 was equal to the ARC for the fiscal year, as the transit io n liabilit y was set at zero as of May 1, 2007. The Village’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligat io n fo r 2008 was as fo llo ws (informat io n fo r the two preceding years is not available as an actuarial valuat io n was performed for the first time as of May 1, 2007): VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -39 - 11.OTHER POST-EMPLOYMENT BENEFITS (Continued) e.Annual OPEB Costs and Net OPEB Obligat io n (Continued) 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 The net OPEB obligat io n as of April 30, 2008, was calculated as fo llo ws: Annual required contribut io n $193,800 Interest on net OPEB obligation - Ad just me nt to annual required contribution - Annual OPEB cost 193,800 Contribut io ns made 101,600 Increase in net OPEB obligat io n 92,200 Net OPEB obligat io n beginning of year - NET OPEB OBLIGATION END OF YEAR $92,200 Funded Status and Funding Progress:The funded status of the plan as of April 30, 2008, was as fo llo ws: Actuarial accrued liabilit y (AAL)$2,534,700 Actuarial value of plan assets - Unfunded actuarial accrued liabilit y (UAAL)2,534,700 Funded ratio (actuarial value of plan assets/AAL)0% Covered payroll (act ive plan members)7,937,200 UAAL as a percentage of covered payro ll 31.93% Actuarial valuat io ns of an ongoing plan invo lve estimates of the value of reported amounts and assumptions about the probabilit y o f o ccurrence of events far into the future. Examples include assumpt io ns about future emplo yment, mortalit y,and 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 funding progress, presented as required supplementary informat io n fo llo wing the notes to financial statements, presents mult i-year trend informat io n t hat shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilit ies fo r benefits. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -40 - 11.OTHER POST-EMPLOYMENT BENEFITS (Continued) e.Annual OPEB Costs and Net OPEB Obligat io n (Continued) 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 benefits provided at the time of each valuat io n and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term vo lat ilit y in actuarial accrued liabilit ie s and the actuarial value of assets, consistent with the long-term perspective of the calculat io ns. In the May 1, 2007, actuarial valuation, the entry-age normal actuarial cost method was used. The actuarial assumpt 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 payro ll o n an open basis. The remaining amortizat io n period at May 1, 2007, was thirty years, except for Water Fund emplo yees which was eighteen years. 12.EMPLOYEE RETIREMENT SYSTEMS a.Plan Descript io ns and Provisio ns Illino is Municipal R etirement 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). 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 8 years of service are ent it led to an annual ret ir ement benefit, payable monthly for life, in an amount equal to 1 2/3 percent 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 percent for each year thereafter. IMRF also provides death and disabilit y benefits. The Illino is Pensio n Code establishes the benefit provisions of the plan that can only be amended by the Illino is General Assembly. 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) Participating members are required to contribute 4.5 percent of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund the coverage of its own emplo yees in the system, using the actuarial basis specified by state statute (ent ry age normal). The employer contribut io n fo r the calendar year ended December 31, 2007 was 11.03%of covered payroll. IMRF issues a separate financial report which may be obtained by writ ing them at IMRF,2211 York Road, Suite 500, Oak Brook, Illino is 60523.This report contains informat io n fo r IMRF as a who le, but not by individual emplo yer. Police Pensio n Plan Police sworn personnel are covered by the Police Pension P lan, which is a defined benefit single-employer pensio n plan. Although this is a single-employer pensio n plan, the defined benefits and employee and emplo yer contribut io ns levels are governed by Illino is Co mp iled Statutes (Chapter 40 -Article 5/3) and can be amended only by the Illino is legislature. The Village accounts for the Police Pensio n Pla n as a pensio n t rust fund. At April 30, 2008, the Police Pension Plan membership consisted of: Retirees and beneficiaries current ly receiving benefits 25 Terminated emp lo yees ent it led to benefits but not yet receiving them 3 Current emp lo yees Vested 26 Nonvested 13 TOTAL 67 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. 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 Police Pensio n P la n provides retirement benefits as well as death and disability benefits. Emplo yees attaining the age of 50 or more with 20 or more years of creditable service are ent it led to receive an annual retirement benefit of one-half o f the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater. The pensio n shall be increased by 2½ percent of such salary for each addit io nal year of service over 20 years up to 30 years, to a maximum o f 75 percent of such salary. Emplo yees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly pensio n of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, fo llo wing the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent 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, 2008 was 22.75% 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. Gains and losses on sales and exchanges of fixed-inco me securit ie s are recognized on the transaction date. Significant Invest me nt s: Investments (other than U.S. government and U.S. government guaranteed obligat io ns) in a Vanguard Mutual Fund represent ing 46% of net assets available for benefit s. 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) Related Party Transact io ns: There were no securities of the employer or any other related parties included in plan assets, including any loans. 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, 2005 May 1, 2007 Actuarial cost met hod Entry-age Nor ma l Entry-age Nor ma l Level Dollar Asset valuation met hod 5 Year Smoothed Market Actuary’s Value Amortization method Level Percentage of Payroll Level Dollar Amortization per iod 25 Years, Closed 26 Years, Closed Significant actuarial assumptions a)Rate of return on 7.50%8.00% present and future assets Compounded Compounded Annually Annually b)Projected salary incr ease -4.00%3.50% attributable to inflation Compounded Compounded Annually Annually c)Additional projected salary .40 to 10.00%5.50% increases -seniority/mer it d)Post retirement benefit increases 3.00%3.00% VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -44 - 12.EMPLOYEE RETIREMENT SYSTEMS (Continued) c.Annual Pensio n Cost (Continued) 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 2006 $551,606 $587,217 (APC)2007 674,312 666,099 2008 699,397 710,955 Actual contribution 2006 $551,606 $575,395 2007 674,312 654,414 2008 699,397*698,335 Percentage of APC contributed 2006 100.00%97.99% 2007 100.00%98.25% 2008 100.00%98.22% NPO (asset)2006 $-$(1,020,759) 2007 -(1,009,074) 2008 -(996,454) *Of this amount, $582,108 (83.23%) was contributed by t he Village and $117,289 (16.77%) was contributed by the Library. The Village’s annual pensio n cost and net pensio n obligat io n (asset) for the Police Pensio n Plan fo r the April 30, 2008 valuat io n date (most recent data available) are as fo llo ws: Annual required contribut io n $698,335 Interest on net pensio n obligat io n (asset)(80,726) Ad just me nt to annual required contribution 93,346 Annual pension cost 710,955 Contribut io ns made 698,335 Increase in net pension obligat io n 12,620 Net pension obligation (asset) beginning of year (1,009,074) NET PENSION OBLIGATION (ASSET) END OF YEAR $(996,454) VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -45 - 12.EMPLOYEE RETIREMENT SYSTEMS (Continued) c.Annual Pensio n Cost (Continued) Funded Status and Funding Progress:The funded status of the plans as of April 30, 2008 were as fo llo ws: Illino is Municipal Retirement* Police Pensio n Actuarial accrued liabilit y (AAL)$13,938,222 $32,230,820 Actuarial value of plan assets 10,465,905 26,434,408 Unfunded actuarial accrued liabilit y (UAAL)3,472,317 5,796,412 Funded ratio (actuarial value of plan assets/AAL)75.09%82.02% Covered payroll (act ive plan members)6,340,864 3,124,688 UAAL as a percentage of covered payro ll 54.76%185.50% *Includes both the Village and the Library. 13.CONTRACTUAL COMMITMENTS Economic Incent ive Agreements The Village has entered into economic incent ive agreements with two commercial ent it ie s whereby the Village has agreed to reimburse the commercial entit ie s through sales tax rebates. The amount of the rebates is limited to specified time periods or maximum caps and are payable over one to fifteen years sole ly from sales taxes generated by the commercial entit ie s. The rebates are to be paid mo nt hly or annually,depending on the agreement, with the last agreement expiring fifteen years after commencement. At April 30, 2008, the Village has accrued an estimated rebate liability o f $249,059 fo r amounts collected by the state through April 30, 2008 but not yet paid to the commercial ent it ies. To date, the Village has paid $2,348,119 to the commercial entit ie s.The maximum rebate to be paid for one agreement is $5,500,000, and the other has no stated maximum. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -46 - 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY a.Summary Financial Informat io n The fo llo wing is summary fund financial informat ion for the Deerfield Public Library (the Library) for the fiscal year ended April 30, 2008: General Adjustments Statement of Net Assets ASSETS Cash and investments $3,789,330 $-$3,789,330 Receivables Property taxes 2,453,841 -2,453,841 Capital assets, net of accumulated depreciation -228,827 228,827 Total assets 6,243,171 228,827 6,471,998 LIABILITIES Accounts payable 53,394 -53,394 Accrued payroll 57,000 -57,000 Deferred property taxes 2,625,000 -2,625,000 Compensated absences payable -106,139 106,139 Total liabilities 2,735,394 106,139 2,841,533 FUND BALANCES/NET ASSETS Fund balances -unr es er ved Designated for scholarship 20,893 (20,893)- Undesignated 3,486,884 (3,486,884)- Net assets Invested in capital assets, net of related debt -228,827 228,827 Unr estricted -3,401,638 3,401,638 TOTAL FUND BALANCES/ NET ASSETS $3,507,777 $122,688 $3,630,465 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 Act ivities REVENUES Property taxes $2,299,316 $-$2,299,316 Replacement taxes 92,369 -92,369 Intergovernmental 35,581 -35,581 Charges for services 81,327 -81,327 Investment income 169,506 -169,506 Miscellaneous 6,395 -6,395 Total revenues 2,684,494 -2,684,494 EXPENDITURES/EXPENSES Culture and recreation 2,372,966 (10,098)2,362,868 Total expenditures/expenses 2,372,966 (10,098)2,362,868 NET CHANGE IN FUND BALANCE/ NET ASSETS 311,528 10,098 321,626 FUND BALANCE/NET ASSETS MAY 1 3,196,249 112,590 3,308,839 FUND BALANCES/NET ASSETS APRIL 30 $3,507,777 $122,688 $3,630,465 b.Deposits and Invest me nt s 1)Deposits Permitted Deposits and Invest me nt s -The Illino is Compiled Statutes authorize the Library 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 union shares, money market mutual funds wit h portfolio s of securit ies issued or guaranteed by the United States or agreements to repurchase these same obligat io 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) -48 - 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY (Continued) b.Deposits and Invest me nt s (Continued) 1)Deposits (Continued) 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 does not have a separate invest me nt policy, but fo llo ws the Village’s invest me nt policy which requires pledging of collateral with a fair value of 100% of all bank balances in excess of federal depository insurance. At April 30, 2008, all o f t he Library’s bank balances were insured or collateralized. 2)Invest me nt s As o f Apr il 30, 2008, 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 $3,748,765 $3,748,765 $-$-$- TOTAL $3,748,765 $3,748,765 $-$-$- 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 (Continued) In accordance with the Village’s investment policy, the Library limits its exposure to interest rate risk by structuring the portfolio to provide liquidit y fo r operat ing funds and maximizing yields for funds not needed within a three year period. The invest me nt policy limits the maximum maturit y le ngth of investments in the general fund to three years fro m date of purchase. In addition, the policy requires the Library to structure the invest me nt portfolio so that securit ies 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 maturity. 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 its invest me nt s that are in possessio n of an outside party. Illino is Funds is not subject to custodial credit risk. c.Receivables -Taxes Property taxes for the 2007 le vy year attach as an enforceable lien on January 1, 2007, 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, 2008 and August 1, 2008, and are payable in two installments, on or about March 1, 2008 and September 1, 2008. The County co llects such taxes and remit s them periodically. The 2007 tax levy co llect io ns are intended to finance the 2009 fiscal year and are not considered available for current operations and are, therefore, shown as deferred revenue. The 2008 tax levy has not been recorded as a receivable at April 30, 2008, as the tax attached as a lien on property as of January 1, 2008, however, the tax will not be levied until December 2008 and, accordingly, is not measurable at April 30, 2008. 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. VILLAGE OF DEERFIELD, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -50 - 14.COMPONENT UNIT -DEERFIELD PUBLIC LIBRARY (Continued) d.Capital Assets (Continued) Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Buildings are depreciated using the straight-line method over the fo llo wing estimated useful lives: Years Buildings 45 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 Total capital assets not being depreciated 65,493 --65,493 Capital assets being depreciated Buildings 1,050,000 --1,050,000 Total capital assets being depreciated 1,050,000 --1,050,000 Less accumulated depreciation for Buildings 863,333 23,333 -886,666 Total accumulated depreciation 863,333 23,333 -886,666 Total capital assets being depreciated, net 186,667 (23,333)-163,334 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $252,160 $(23,333)$-$228,827 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, 2008: Balance, May 1 Additions Retirements Balance, April 30 Current Portion Compensated absences $139,570 $49,944 $96,475 $93,039 $64,535 Other post-employment benefit -13,100 -13,100 - TOTAL LONG-TERM LIABILITIES $139,570 $63,044 $96,475 $106,139 $64,535 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual REVENUES Taxes 11,209,480$ 11,209,480$ 11,975,652$ Licenses and permits 1,108,000 1,108,000 1,161,276 Intergovernmental 34,000 34,000 96,985 Charges for services 393,600 393,600 348,528 Fines and forfeits 208,500 208,500 261,495 Investment income 480,000 480,000 838,215 Miscellaneous 392,000 392,000 609,796 Total revenues 13,825,580 13,825,580 15,291,947 EXPENDITURES General government 5,295,430 5,295,430 4,827,462 Public safety 7,708,962 7,708,962 7,080,991 Highways and streets 2,101,905 2,101,905 2,434,841 Total expenditures 15,106,297 15,106,297 14,343,294 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,280,717) (1,280,717) 948,653 OTHER FINANCING SOURCES (USES) Transfer (out)(4,000,000) (4,000,000) (4,000,000) Sale of capital assets 5,000 5,000 11,052 Total other financing sources (uses)(3,995,000) (3,995,000) (3,988,948) NET CHANGE IN FUND BALANCE (5,275,717)$ (5,275,717)$ (3,040,295) FUND BALANCE, MAY 1 20,187,448 FUND BALANCE, APRIL 30 17,147,153$ (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) 2002 15,020,009$ 15,628,924$ 96.10%608,915$ 5,064,382$ 12.02% 2003 14,167,618 15,105,472 93.79%937,854 5,241,608 17.89% 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% Note: Amounts above include both the Village of Deerfield and Deerfield Public Library. April 30, 2008 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) 2002 20,588,975$ 22,217,590$ 92.67%1,628,615$ 2,529,945$ 64.37% 2003 21,397,216 23,235,103 92.09%1,837,887 2,612,402 70.35% 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% April 30, 2008 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% Information for prior years is not available as the Village's first actuarial valuation was performed May 1, 2007. April 30, 2008 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF FUNDING PROGRESS OTHER POST-EMPLOYMENT BENEFIT PLAN (See independent auditor's report.) - 55 - Annual Required Calendar Employer Contribution Percentage Year Contributions (ARC)Contributed 2002 342,859$ 342,859$ 100.00% 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% Note: Amounts above include both the Village of Deerfield and Deerfield Public Library. April 30, 2008 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 2003 276,383$ 278,581$ 99.21% 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% April 30, 2008 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% Information for prior years is not available as the Village's first actuarial valuation was performed May 1, 2007. April 30, 2008 VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS OTHER POST-EMPLOYMENT BENEFIT PLAN (See independent auditor's report.) - 58 - -59 - VILLAGE OF DEERFIELD, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION April 30, 2008 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 appropriatio n-- is ut ilized 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 fr om 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 Water and Infrastructure Replacement Funds. VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual TAXES Property 2,094,250$ 2,094,250$ 1,941,802$ Replacement 75,000 75,000 105,043 Sales 4,100,000 4,100,000 4,552,098 Home rule sales 850,000 850,000 956,634 Local use 252,030 252,030 260,520 Income 1,618,200 1,618,200 1,695,991 Hotel/motel 1,925,000 1,925,000 2,108,580 Telecommunication 295,000 295,000 354,984 Total taxes 11,209,480 11,209,480 11,975,652 LICENSES AND PERMITS Beer/liquor licenses 71,000 71,000 67,625 Food licenses 8,000 8,000 5,441 Other business licenses 28,000 28,000 5,141 Building permits 600,000 600,000 651,351 Contractor's licenses 8,000 8,000 25,653 Non-business licenses and permits 53,000 53,000 67,276 Vehicle licenses 340,000 340,000 338,789 Total licenses and permits 1,108,000 1,108,000 1,161,276 INTERGOVERNMENTAL State grant 6,000 6,000 1,210 State highway maintenance 28,000 28,000 45,112 Federal grant - - 50,663 Total intergovernmental 34,000 34,000 96,985 CHARGES FOR SERVICES Special police services 308,600 308,600 193,364 Dispatching services 79,000 79,000 84,000 50/50 tree planting 4,000 4,000 71,164 Engineering services 2,000 2,000 - Total charges for services 393,600 393,600 348,528 FINES AND FORFEITS 208,500 208,500 261,495 INVESTMENT INCOME 480,000 480,000 838,215 (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, 2008 Original Final Budget Budget Actual MISCELLANEOUS False alarms 40,000$ 40,000$ 28,450$ Sale of materials 2,000 2,000 - Rentals 25,000 25,000 40,610 Miscellaneous 95,000 95,000 262,614 Franchise fees 230,000 230,000 278,122 Total miscellaneous 392,000 392,000 609,796 TOTAL REVENUES 13,825,580$ 13,825,580$ 15,291,947$ (See independent auditor's report.) - 61 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual GENERAL GOVERNMENT Finance department Personnel services 1,034,965$ 1,034,965$ 1,006,074$ Less: IPBC terminal reserve dividend - - (313,761) Training and development 23,600 23,600 6,409 Contractual services 1,188,100 1,188,100 1,232,711 Commodities 29,000 29,000 17,279 Utilities 30,000 30,000 12,841 Capital outlay 76,867 76,867 54,244 Total finance department 2,382,532 2,382,532 2,015,797 Administration Personnel services 590,893 590,893 556,572 Training and development 5,000 5,000 2,291 Contractual services 363,100 363,100 441,654 Commodities 12,600 12,600 14,705 Utilities 1,600 1,600 1,239 Capital outlay 352,600 352,600 330,820 Total administration 1,325,793 1,325,793 1,347,281 Community development Personnel services 806,916 806,916 773,342 Training and development 8,000 8,000 4,278 Contractual services 160,500 160,500 92,894 Commodities 23,150 23,150 13,405 Utilities 14,100 14,100 13,771 Capital outlay 12,600 12,600 12,207 Total community development 1,025,266 1,025,266 909,897 Engineering Personnel services 313,850 313,850 332,998 Training and development 4,500 4,500 3,992 Contractual services 217,972 217,972 185,044 Commodities 6,900 6,900 9,220 Utilities 3,750 3,750 8,046 Capital outlay 14,867 14,867 15,187 Total engineering 561,839 561,839 554,487 Total general government 5,295,430 5,295,430 4,827,462 PUBLIC SAFETY Police department Administrative services Personnel services 1,395,912 1,395,912 1,279,930 Training and development 19,000 19,000 7,632 Contractual services 514,250 514,250 421,671 (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, 2008 Original Final Budget Budget Actual PUBLIC SAFETY (Continued) Police department (Continued) Administrative services (Continued) Commodities 52,500$ 52,500$ 43,736$ Utilities 37,000 37,000 18,191 Capital outlay 181,922 181,922 172,805 Total administrative services 2,200,584 2,200,584 1,943,965 Communications Personnel services 800,738 800,738 730,813 Training and development 5,300 5,300 2,593 Contractual services 500 500 208 Capital outlay 7,000 7,000 2,279 Total communications 813,538 813,538 735,893 Investigations Personnel services 820,022 820,022 785,064 Training and development 6,950 6,950 1,709 Contractual services 5,700 5,700 5,775 Commodities 14,000 14,000 11,344 Capital outlay 5,500 5,500 3,871 Total investigations 852,172 852,172 807,763 Patrol Personnel services 3,335,068 3,335,068 3,255,197 Training and development 36,900 36,900 16,401 Contractual services 50,600 50,600 53,837 Commodities 75,000 75,000 61,894 Utilities 6,500 6,500 6,142 Capital outlay 19,300 19,300 11,507 Total patrol 3,523,368 3,523,368 3,404,978 Special detail Personnel services 319,300 319,300 188,392 Total special detail 319,300 319,300 188,392 Total public safety 7,708,962 7,708,962 7,080,991 HIGHWAYS AND STREETS Public works department Administration Personnel services 260,200 260,200 213,411 Training and development 2,100 2,100 1,039 Contractual services 139,950 139,950 111,209 (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, 2008 Original Final Budget Budget Actual HIGHWAYS AND STREETS (Continued) Public works department (Continued) Administration (Continued) Commodities 12,000$ 12,000$ 11,936$ Utilities 11,250 11,250 8,883 Capital outlay 129,915 129,915 128,942 Total administration 555,415 555,415 475,420 Maintenance Personnel services 557,400 557,400 551,202 Contractual services 112,200 112,200 108,787 Commodities 106,000 106,000 90,653 Utilities 75,000 75,000 103,904 Capital outlay 20,000 20,000 - Total maintenance 870,600 870,600 854,546 Snow and ice control Personnel services 126,300 126,300 246,196 Contractual services 72,500 72,500 145,204 Commodities 164,000 164,000 468,631 Capital outlay 2,500 2,500 - Total snow and ice control 365,300 365,300 860,031 Forestry Personnel services 74,000 74,000 34,758 Contractual services 165,500 165,500 151,698 Commodities 4,500 4,500 5,984 Capital outlay 20,000 20,000 25,051 Total forestry 264,000 264,000 217,491 Train station maintenance Personnel services 15,390 15,390 8,050 Contractual services 26,500 26,500 16,764 Commodities 4,200 4,200 2,539 Utilities 500 500 - Total train station maintenance 46,590 46,590 27,353 Total highways and streets 2,101,905 2,101,905 2,434,841 TOTAL EXPENDITURES 15,106,297$ 15,106,297$ 14,343,294$ (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, 2008 Original Final Budget Budget Actual REVENUES Taxes 895,000$ 895,000$ 1,000,132$ Intergovernmental 1,484,900 1,484,900 25,198 Investment income 8,000 8,000 86,460 Miscellaneous 3,500 3,500 5,000 Total revenues 2,391,400 2,391,400 1,116,790 EXPENDITURES Capital outlay Contractual services 1,001,700 1,001,700 257,494 Construction 5,315,000 3,315,000 2,039,970 Total expenditures 6,316,700 4,316,700 2,297,464 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,925,300) (1,925,300) (1,180,674) OTHER FINANCING SOURCES (USES) Transfers in 4,000,000 2,000,000 2,000,000 Total other financing sources (uses)4,000,000 2,000,000 2,000,000 NET CHANGE IN FUND BALANCE 74,700$ 74,700$ 819,326 FUND BALANCE, MAY 1 818,201 FUND BALANCE, APRIL 30 1,637,527$ (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, 2008 Original Final Budget Budget Actual REVENUES Taxes Property 4,367,200$ 4,367,200$ 4,527,305$ Investment income 150,000 150,000 225,489 Total revenues 4,517,200 4,517,200 4,752,794 EXPENDITURES Capital outlay Construction 2,020,000 2,020,000 1,879,286 Other costs 45,000 45,000 28,234 Total expenditures 2,065,000 2,065,000 1,907,520 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 2,452,200 2,452,200 2,845,274 OTHER FINANCING SOURCES (USES) Transfers (out)(2,216,000) (2,216,000) (2,216,000) Total other financing sources (uses)(2,216,000) (2,216,000) (2,216,000) NET CHANGE IN FUND BALANCE 236,200$ 236,200$ 629,274 FUND BALANCE, MAY 1 2,282,709 FUND BALANCE, APRIL 30 2,911,983$ (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, 2008 Original Final Budget Budget Actual REVENUES Taxes Replacement 20,000$ 20,000$ -$ Investment income 15,000 15,000 27,553 Total revenues 35,000 35,000 27,553 EXPENDITURES Debt service Principal retirement 2,000,000 2,000,000 2,000,000 Interest 216,000 216,000 216,000 Fiscal charges 1,000 1,000 600 Total expenditures 2,217,000 2,217,000 2,216,600 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,182,000) (2,182,000) (2,189,047) OTHER FINANCING SOURCES (USES) Transfers in Tax Incremental Finance District 2 Fund 2,216,000 2,216,000 2,216,000 Total other financing sources (uses)2,216,000 2,216,000 2,216,000 NET CHANGE IN FUND BALANCE 34,000$ 34,000$ 26,953 FUND BALANCE, MAY 1 533,758 FUND BALANCE, APRIL 30 560,711$ (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. 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, 2008 Capital Projects Motor Enhanced Project Fuel Tax 911 29 Total Cash and investments 559,803$ 833,112$ 205,403$ 1,598,318$ Receivables Accounts - 72,566 - 72,566 Accrued interest 1,589 1,832 234 3,655 Due from other governments 41,234 - - 41,234 TOTAL ASSETS 602,626$ 907,510$ 205,637$ 1,715,773$ LIABILITIES Accounts payable -$ 3,490$ -$ 3,490$ Deposits payable - - 38,919 38,919 Total liabilities - 3,490 38,919 42,409 FUND BALANCES Reserved for maintenance of roadways 602,626 - - 602,626 Reserved for public safety - 904,020 - 904,020 Unreserved - undesignated - - 166,718 166,718 Total fund balances 602,626 904,020 166,718 1,673,364 TOTAL LIABILITIES AND FUND BALANCES 602,626$ 907,510$ 205,637$ 1,715,773$ ASSETS LIABILITIES AND FUND BALANCES Special Revenue Funds (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, 2008 Capital Projects Motor Enhanced Project Fuel Tax 911 29 Total REVENUES Intergovernmental 523,213$ 68,074$ -$ 591,287$ Charges for services - 367,994 - 367,994 Investment income 30,807 36,661 8,348 75,816 Total revenues 554,020 472,729 8,348 1,035,097 EXPENDITURES Public safety - 192,512 - 192,512 Highways and streets 600,000 - - 600,000 Total expenditures 600,000 192,512 - 792,512 NET CHANGE IN FUND BALANCES (45,980) 280,217 8,348 242,585 FUND BALANCES, MAY 1 648,606 623,803 158,370 1,430,779 FUND BALANCES, APRIL 30 602,626$ 904,020$ 166,718$ 1,673,364$ Special Revenue Funds (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, 2008 Original Final Budget Budget Actual REVENUES Intergovernmental Allo tments earned 524,970$ 524,970$ 523,213$ Investment income 25,000 25,000 30,807 Total revenues 549,970 549,970 554,020 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 (50,030)$ (50,030)$ (45,980) FUND BALANCE, MAY 1 648,606 FUND BALANCE, APRIL 30 602,626$ (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, 2008 Original Final Budget Budget Actual REVENUES Intergovernmental -$ -$ 68,074$ Charges for services Other charges 318,000 318,000 367,994 Investment income 12,000 12,000 36,661 Total revenues 330,000 330,000 472,729 EXPENDITURES Public safety Contractual services 109,000 109,000 69,534 Utilit ies 75,000 75,000 61,807 Capital outlay 111,500 111,500 61,171 Total expenditures 295,500 295,500 192,512 NET CHANGE IN FUND BALANCE 34,500$ 34,500$ 280,217 FUND BALANCE, MAY 1 623,803 FUND BALANCE, APRIL 30 904,020$ (See independent auditor's report.) - 71 - 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, 2008 Original Final Budget Budget Actual REVENUES Investment income 3,000$ 3,000$ 8,348$ Total revenues 3,000 3,000 8,348 EXPENDITURES Contractual services 500 500 - Total expenditures 500 500 - NET CHANGE IN FUND BALANCE 2,500$ 2,500$ 8,348 FUND BALANCE, MAY 1 158,370 FUND BALANCE, APRIL 30 166,718$ (See independent auditor's report.) - 72 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL WATER FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Water sales 4,271,500$ 4,271,500$ 4,365,767$ Miscellaneous Permits and fees 30,000 30,000 27,561 Penalties 37,000 37,000 35,540 Other 34,000 34,000 64,518 Total operating revenues 4,372,500 4,372,500 4,493,386 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 500,477 500,477 451,530 Operations Distribution 3,287,280 3,287,280 2,562,975 Maintenance - mains and fire hydrants 2,165,500 4,165,500 2,505,273 Maintenance - meters 271,200 271,200 263,909 Total operating expenses excluding depreciation 6,224,457 8,224,457 5,783,687 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (1,851,957) (3,851,957) (1,290,301) Depreciation - - 340,314 OPERATING INCOME (LOSS)(1,851,957) (3,851,957) (1,630,615) NONOPERATING REVENUES (EXPENSES) In vestment income 45,000 45,000 38,054 In terest expense (477,820) (477,820) (100,261) Total nonoperating revenues (expenses)(432,820) (432,820) (62,207) NET INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (2,284,777) (4,284,777) (1,692,822) CONTRIBUTIONS - - 299,910 TRANSFERS IN - 2,000,000 2,000,000 CHANGE IN NET ASSETS (2,284,777)$ (2,284,777)$ 607,088 NET ASSETS, MAY 1 13,737,988 NET ASSETS, APRIL 30 14,345,076$ (See independent auditor's report.) - 73 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATER FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual ADMINISTRATION Personnel services 258,750$ 258,750$ 272,325$ Training and development 2,900 2,900 1,253 Contractual services 173,200 173,200 114,701 Commodities 7,100 7,100 9,605 Utilities 16,000 16,000 12,119 Capital outlay 42,527 42,527 41,527 Total administration 500,477 500,477 451,530 OPERATIONS Distribution Personnel services 110,750 110,750 99,414 Contractual services 121,750 121,750 29,017 Commodities 2,300,480 2,300,480 2,237,438 Utilities 82,300 82,300 96,264 Capital outlay 672,000 672,000 100,842 Total distribution 3,287,280 3,287,280 2,562,975 Main and fire hydrant maintenance Personnel services 409,100 409,100 399,287 Contractual services 529,200 529,200 148,334 Commodities 170,200 170,200 137,341 Capital outlay 2,036,885 4,036,885 2,800,196 Subtotal main and fire hydrant maintenance 3,145,385 5,145,385 3,485,158 Less nonoperating expenses Capital assets capitalized (979,885) (979,885) (979,885) Total main and fire hydrant maintenance 2,165,500 4,165,500 2,505,273 Meter maintenance Personnel services 152,500 152,500 155,468 Contractual services 10,100 10,100 5,835 Commodities 9,600 9,600 3,270 Capital outlay 99,000 99,000 99,336 Total meter maintenance 271,200 271,200 263,909 TOTAL OPERATING EXPENSES 6,224,457$ 8,224,457$ 5,783,687$ (See independent auditor's report.) - 74 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION WATER FUND For the Year Ended April 30, 2008 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 10,923,584 1,146,418 181,740 11,888,262 Equipment and vehicles 595,397 - - 595,397 TOTAL 17,577,060$ 1,279,795$ 181,740$ 18,675,115$ Balances Balances May 1 Additions Retirements April 30 Buildings 1,155,500$ 91,837$ -$ 1,247,337$ Water system improvements 1,451,251 240,154 181,740 1,509,665 Equipment and vehicles 540,313 8,323 - 548,636 TOTAL 3,147,064$ 340,314$ 181,740$ 3,305,638$ NET ASSET VALUE 15,369,477$ Accumulated Depreciation (See independent auditor's report.) - 75 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Sewer charges 2,415,000$ 2,415,000$ 2,396,295$ Miscellaneous Permits and fees 22,000 22,000 19,675 Penalties 34,000 34,000 29,954 Other 5,000 5,000 19,742 Total operating revenues 2,476,000 2,476,000 2,465,666 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 515,489 515,489 401,505 Operations Treatment plant 2,657,267 2,657,267 1,544,146 Cleaning and maintenance 287,100 287,100 207,063 Construction 4,357,120 4,357,120 441,741 Total operating expenses excluding depreciation 7,816,976 7,816,976 2,594,455 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (5,340,976) (5,340,976) (128,789) Depreciation - - 140,598 OPERATING INCOME (LOSS)(5,340,976) (5,340,976) (269,387) NONOPERATING REVENUES (EXPENSES) In vestment income 5,000 5,000 84,058 Grants 160,000 160,000 - Total nonoperating revenues (expenses)165,000 165,000 84,058 INCOME (LOSS) BEFORE CONTRIBUTIONS (5,175,976) (5,175,976) (185,329) CONTRIBUTIONS - - 141,695 CHANGE IN NET ASSETS (5,175,976)$ (5,175,976)$ (43,634) NET ASSETS, MAY 1 5,666,722 NET ASSETS, APRIL 30 5,623,088$ (See independent auditor's report.) - 76 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL SEWERAGE FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual ADMINISTRATION Personnel services 248,310$ 248,310$ 190,922$ Training and development 1,600 1,600 841 Contractual services 200,350 200,350 145,758 Commodities 6,000 6,000 6,984 Utilities 4,800 4,800 5,044 Capital outlay 54,429 54,429 51,956 Total administration 515,489 515,489 401,505 OPERATIONS Treatment plant Personnel services 925,750 925,750 864,333 Training and development 4,800 4,800 3,060 Contractual services 735,350 735,350 132,240 Commodities 148,000 148,000 102,414 Utilities 288,000 288,000 275,126 Miscellaneous 50,000 50,000 16,650 Capital outlay 505,367 505,367 150,323 Total treatment plant 2,657,267 2,657,267 1,544,146 Cleaning and maintenance Personnel services 213,400 213,400 174,213 Contractual services 39,500 39,500 21,873 Commodities 34,200 34,200 10,977 Total cleaning and maintenance 287,100 287,100 207,063 Construction Personnel services 259,420 259,420 249,843 Contractual services 239,500 239,500 95,596 Commodities 78,200 78,200 60,620 Capital outlay 4,715,872 4,715,872 971,554 Subtotal construction 5,292,992 5,292,992 1,377,613 Less nonoperating expenses Capital assets capitalized (935,872) (935,872) (935,872) Total construction 4,357,120 4,357,120 441,741 TOTAL OPERATING EXPENSES 7,816,976$ 7,816,976$ 2,594,455$ (See independent auditor's report.) - 77 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION SEWERAGE FUND For the Year Ended April 30, 2008 Assets Balances Balances May 1 Additions Retirements April 30 Construction in progress -$ 136,676$ -$ 136,676$ Sewer system 3,351,555 401,724 21,843 3,731,436 Buildings and improvements 2,786,005 539,167 - 3,325,172 TOTAL 6,137,560$ 1,077,567$ 21,843$ 7,193,284$ Accumulated Depreciation Balances Balances May 1 Additions Retirements April 30 Sewer system 847,522$ 75,380$ 21,843$ 901,059$ Buildings and improvements 1,569,306 65,218 - 1,634,524 TOTAL 2,416,828$ 140,598$ 21,843$ 2,535,583$ NET ASSET VALUE 4,657,701$ (See independent auditor's report.) - 78 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL REFUSE FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual OPERATING REVENUES Charges for services Refuse billing 645,000$ 645,000$ 624,349$ Miscellaneous 9,000 9,000 6,353 Total operating revenues 654,000 654,000 630,702 OPERATING EXPENSES Operations Personnel services 96,700 96,700 61,621 Contractual services 1,612,900 1,612,900 1,435,624 Commodities 10,300 10,300 12,170 Capital outlay 10,775 10,775 10,775 Total operating expenses 1,730,675 1,730,675 1,520,190 OPERATING INCOME (LOSS)(1,076,675) (1,076,675) (889,488) NONOPERATING REVENUES (EXPENSES) Investment income 10,000 10,000 32,495 Property taxes 841,360 841,360 780,785 Total nonoperating revenues (expenses)851,360 851,360 813,280 CHANGE IN NET ASSETS (225,315)$ (225,315)$ (76,208) NET ASSETS, MAY 1 379,436 NET ASSETS, APRIL 30 303,228$ (See independent auditor's report.) - 79 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual OPERATING REVENUES Parking lot fees 203,000$ 203,000$ 212,585$ Miscellaneous - - 1,000 Total operating revenues 203,000 203,000 213,585 OPERATING EXPENSES Operations 266,840 266,840 183,570 Depreciation - - 26,737 Total operating expenses 266,840 266,840 210,307 OPERATING INCOME (LOSS)(63,840) (63,840) 3,278 NONOPERATING REVENUES (EXPENSES) Investment income 11,000 11,000 38,360 Total nonoperating revenues (expenses)11,000 11,000 38,360 CHANGE IN NET ASSETS (52,840)$ (52,840)$ 41,638 NET ASSETS, MAY 1 1,983,690 NET ASSETS, APRIL 30 2,025,328$ (See independent auditor's report.) - 80 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL COMMUTER PARKING LOT FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual OPERATIONS Parking lots - Village and federal funds Personnel services 17,680$ 17,680$ 12,558$ Contractual services 122,530 122,530 78,023 Commodities 5,800 5,800 4,771 Utilities 3,000 3,000 2,687 Capital outlay 5,000 5,000 - Total parking lots - Village and federal funds 154,010 154,010 98,039 Parking lots - Village construction Personnel services 18,100 18,100 12,558 Contractual services 86,530 86,530 67,022 Commodities 1,400 1,400 240 Utilities 5,800 5,800 5,711 Capital outlay 1,000 1,000 - Total parking lots - Village construction 112,830 112,830 85,531 TOTAL OPERATING EXPENSES 266,840$ 266,840$ 183,570$ (See independent auditor's report.) - 81 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF CAPITAL ASSETS AND DEPRECIATION COMMUTER PARKING LOT FUND For the Year Ended April 30, 2008 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 667,433$ 26,737$ -$ 694,170$ NET ASSET VALUE 1,334,161$ (See independent auditor's report.) - 82 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS April 30, 2008 Vehicle and Equipment Garage Replacement Total CURRENT ASSETS Cash and investments 43,120$ 3,524,674$ 3,567,794$ Receivables Accounts 1,428 - 1,428 Accrued interest 59 8,983 9,042 Inventory 127,661 - 127,661 Total current assets 172,268 3,533,657 3,705,925 CAPITAL ASSETS Depreciable - 2,947,550 2,947,550 Accumulated depreciation - (1,614,509) (1,614,509) Net capital assets - 1,333,041 1,333,041 Total assets 172,268 4,866,698 5,038,966 CURRENT LIABILITIES Accounts payable 10,371 - 10,371 Accrued payroll 5,162 - 5,162 Compensated absences payable 2,079 - 2,079 Total current liabilities 17,612 - 17,612 LONG-TERM LIABILITIES Compensated absences payable 18,709 - 18,709 Total long-term liabilities 18,709 - 18,709 Total liabilities 36,321 - 36,321 NET ASSETS Invested in capital assets - 1,333,041 1,333,041 Unrestricted 135,947 3,533,657 3,669,604 TOTAL NET ASSETS 135,947$ 4,866,698$ 5,002,645$ (See independent auditor's report.) - 83 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS For the Year Ended April 30, 2008 Vehicle and Equipment Garage Replacement Total OPERATING REVENUES Interfund services Billings 370,591$ 516,344$ 886,935$ Miscellaneous 9,540 - 9,540 Total operating revenues 380,131 516,344 896,475 OPERATING EXPENSES Operations 332,415 - 332,415 Commodities - 67,801 67,801 Total operating expenses 332,415 67,801 400,216 OPERATING INCOME BEFORE DEPRECIATION 47,716 448,543 496,259 Depreciation - 218,138 218,138 OPERATING INCOME 47,716 230,405 278,121 NONOPERATING REVENUES (EXPENSES) Investment income 1,255 177,590 178,845 Gain on disposal of capital assets - 87,996 87,996 Total nonoperating revenues (expenses)1,255 265,586 266,841 CHANGE IN NET ASSETS 48,971 495,991 544,962 NET ASSETS, MAY 1 86,976 4,370,707 4,457,683 NET ASSETS, APRIL 30 135,947$ 4,866,698$ 5,002,645$ (See independent auditor's report.) - 84 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended April 30, 2008 Vehicle and Equipment Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services 369,896$ 516,344$ 886,240$ Receipts from miscellaneous revenue 9,540 - 9,540 Payments to suppliers (147,083) (71,690) (218,773) Payments to employees (207,093) - (207,093) Net cash from operating activities 25,260 444,654 469,914 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 - 87,996 87,996 Capital assets purchased - (310,082) (310,082) Net cash from capital and related financing activities - (222,086) (222,086) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 1,244 190,825 192,069 Net cash from investing activities 1,244 190,825 192,069 NET INCREASE IN CASH AND CASH EQUIVALENTS 26,504 413,393 439,897 CASH AND CASH EQUIVALENTS, MAY 1 16,616 3,111,281 3,127,897 CASH AND CASH EQUIVALENTS, APRIL 30 43,120$ 3,524,674$ 3,567,794$ RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income 47,716$ 230,405$ 278,121$ Adjustments to reconcile operating income to net cash from operating activities Depreciation - 218,138 218,138 (Increase) decrease in Accounts receivable (695) - (695) Inventories (34,141) - (34,141) Prepaids 1,099 - 1,099 Increase (decrease) in Accounts payable 2,620 (3,889) (1,269) Accrued payroll 2,093 - 2,093 Compensated absences payable 6,568 - 6,568 NET CASH FROM OPERATING ACTIVITIES 25,260$ 444,654$ 469,914$ (See independent auditor's report.) - 85 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL GARAGE FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual OPERATING REVENUES Interfund services Billings 300,000$ 300,000$ 370,591$ Miscellaneous 1,000 1,000 9,540 Total operating revenues 301,000 301,000 380,131 OPERATING EXPENSES Operations 367,425 367,425 332,415 OPERATING INCOME (LOSS)(66,425) (66,425) 47,716 NONOPERATING REVENUES (EXPENSES) Investment income 500 500 1,255 Total nonoperating revenues (expenses)500 500 1,255 CHANGE IN NET ASSETS (65,925)$ (65,925)$ 48,971 NET ASSETS, MAY 1 86,976 NET ASSETS, APRIL 30 135,947$ (See independent auditor's report.) - 86 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL GARAGE FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual OPERATING EXPENSES Public works department Personnel services 240,500$ 240,500$ 215,754$ Training and development 900 900 102 Contractual services 24,400 24,400 17,452 Commodities 86,400 86,400 85,977 Utilities 4,700 4,700 4,360 Capital outlay 10,525 10,525 8,770 TOTAL OPERATING EXPENSES 367,425$ 367,425$ 332,415$ (See independent auditor's report.) - 87 - VILLAGE OF DEERFIELD, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL VEHICLE AND EQUIPMENT REPLACEMENT FUND For the Year Ended April 30, 2008 Original Final Budget Budget Actual OPERATING REVENUES Interfund services Billings 516,344$ 516,344$ 516,344$ OPERATING EXPENSES Capital outlay 265,200 265,200 377,883 Less capital assets capitalized (310,082) (310,082) (310,082) Net capital outlay (44,882) (44,882) 67,801 OPERATING INCOME BEFORE DEPRECIATION 561,226 561,226 448,543 Depreciation - - 218,138 OPERATING INCOME 561,226 561,226 230,405 NONOPERATING REVENUES (EXPENSES) Investment income 50,000 50,000 177,590 Gain on disposal of capital assets - - 87,996 Total nonoperating revenues (expenses)50,000 50,000 265,586 CHANGE IN NET ASSETS 611,226$ 611,226$ 495,991 NET ASSETS, MAY 1 4,370,707 NET ASSETS, APRIL 30 4,866,698$ (See independent auditor's report.) - 88 - Original Final Budget Budget Actual ADDITIONS Contributions - employer 750,000$ 750,000$ 698,335$ Contributions - employee 328,000 328,000 418,205 Total contributions 1,078,000 1,078,000 1,116,540 Investment income Net appreciation (depreciation) in fair value of investments - - (63,137) Interest earned on investments 700,000 700,000 594,853 Total investment income 700,000 700,000 531,716 Less investment expense (1,750) (1,750) (1,538) Net investment income 698,250 698,250 530,178 Total additions 1,776,250 1,776,250 1,646,718 DEDUCTIONS Benefits and refunds Pension payments 1,413,984 1,413,984 1,312,162 Separation refunds 15,000 15,000 75,446 Administrative 10,500 10,500 9,401 Total deductions 1,439,484 1,439,484 1,397,009 NET INCREASE 336,766$ 336,766$ 249,709 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS May 1 26,048,544 April 30 26,298,253$ VILLAGE OF DEERFIELD, ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS - BUDGET AND ACTUAL For the Year Ended April 30, 2008 (See independent auditor's report.) - 89 - VILLAGE OF DEERFIELD, ILLINOIS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended April 30, 2008 Balances Balances May 1 Additions Deductions April 30 ASSETS Cash and investments 1,512,514$ 228,205$ 73,957$ 1,666,762$ Receivables - accrued interest 718 217 718 217 TOTAL ASSETS 1,513,232$ 228,422$ 74,675$ 1,666,979$ LIABILITIES Accounts payable 10,786$ 23,397$ 2,486$ 31,697$ Deposits payable 1,412,515 149,714 1,530 1,560,699 Other payables 89,931 54,335 69,683 74,583 TOTAL LIABILITIES 1,513,232$ 227,446$ 73,699$ 1,666,979$ ASSETS Cash and investments 1,420,815$ 172,614$ 1,530$ 1,591,899$ TOTAL ASSETS 1,420,815$ 172,614$ 1,530$ 1,591,899$ LIABILITIES Accounts payable 8,300$ 22,900$ -$ 31,200$ Deposits payable 1,412,515 149,714 1,530 1,560,699 TOTAL LIABILITIES 1,420,815$ 172,614$ 1,530$ 1,591,899$ ASSETS Cash and investments 91,699$ 55,591$ 72,427$ 74,863$ Receivables - accrued interest 718 217 718 217 TOTAL ASSETS 92,417$ 55,808$ 73,145$ 75,080$ LIABILITIES Accounts payable 2,486$ 497$ 2,486$ 497$ Other payables 89,931 54,335 69,683 74,583 TOTAL LIABILITIES 92,417$ 54,832$ 72,169$ 75,080$ DEPOSIT FUND ALL FUNDS EAST SHORE RADIO NETWORK FUND (See independent auditor's report.) - 90 - Date of Issue April 15, 1998 Date of Maturity October 1, 2009 Authorized Issue $17,000,000 Denomination of Bonds $5,000 In terest Rates 4.20%, 4.25%, 4.30%, and 4.35% Principal Maturity Date October 1 Payable at J.P. Morgan Trust Company Tax Levy Bond Year Numbers Principal In terest Total April 1 Amount October 1 Amount 2007 2,601-3,000 2,000,000$ 130,000$ 2,130,000$ 2008 86,500$ 2008 86,500$ 2008 3,001-3,400 2,000,000 43,500 2,043,500 2009 43,500 2009 43,500 4,000,000$ 173,500$ 4,173,500$ 130,000$ 130,000$ FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Tax Levy In terest Due on VILLAGE OF DEERFIELD, ILLINOIS LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BOND SERIES OF 1998 April 30, 2008 (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 $5,000 Interest Rates 2.25%, 2.55%, 2.95%, 3.15%, 3.30%, 3.50% Principal Maturity Date December 1 Payable at Cole Taylor Bank, Chicago, Illinois Tax Levy Bond Year Numbers Principal Interest Total June 1 Amount December 1 Amount 2007 256-337 410,000$ 67,820$ 477,820$ 2008 33,910$ 2008 33,910$ 2008 338-422 425,000 57,365 482,365 2009 28,682 2009 28,683 2009 423-509 435,000 44,827 479,827 2010 22,414 2010 22,413 2010 510-599 450,000 31,125 481,125 2011 15,562 2011 15,563 2011 600-692 465,000 16,275 481,275 2012 8,138 2012 8,137 2,185,000$ 217,412$ 2,402,412$ 108,706$ 108,706$ 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, 2008 (See independent auditor's report.) - 92 - STATISTICAL SECTION This part of the Village of Deerfield’s comprehensive annual financial report presents detailed info rmation as a context for understanding what the information in the financial statements, note disclosures, and required supplementary info rmation says about the Village’s overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village’s financial performance and well-being have changed over time.93-97 Revenue Capacity These schedules contain information to help the reader assess the Village’s mo st significant local revenue source, the property tax.98-99 Debt Capacity These schedules present information to help the reader assess the affordability of the Village’s current levels of outstanding debt and the Village’s ability to issue additional debt in the future.100-103 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village’s financial activities take place. 104-105 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village’s financial report relates to the services the Village provides and the activities it performs.106-108 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Village implement ed GASB Statement 34 in FY 2004; schedules presenting government-wide information include information beginning in t hat year. VILLAGE OF DEERFIELD, ILLINOIS NET ASSETS BY COMPONENT Last Five Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 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$ Restricted 7,143,495 5,642,027 6,634,566 4,088,876 4,979,340 Unrestricted 23,683,161 22,293,758 24,431,788 18,185,786 22,238,210 TOTAL GOVERNMENTAL ACTIVITIES 76,039,057$ 74,352,259$ 78,426,760$ 82,380,789$ 87,460,739$ 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$ Unrestricted 5,750,279 4,753,661 4,066,666 4,841,210 3,120,381 TOTAL BUSINESS-TYPE ACTIVITIES 18,283,955$ 19,081,563$ 19,965,655$ 21,767,836$ 22,296,720$ 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$ Restricted 7,143,495 5,642,027 6,634,566 4,088,876 4,979,340 Unrestricted 29,433,440 27,047,419 28,498,454 23,026,996 25,358,591 TOTAL PRIMARY GOVERNMENT 94,323,012$ 93,433,822$ 98,392,415$ 104,148,625$ 109,757,459$ Data Source Audited Financial Statements - 93 - Fiscal Year 2004 2005 2006 2007 2008 EXPENSES Governmental activities General government 13,407,856$ 17,160,850$ 14,956,404$ 4,602,570$ 4,569,982$ Public safety 6,718,927 6,660,439 6,780,176 7,154,536 7,232,143 Highways and streets 4,809,688 7,113,852 6,404,266 5,822,340 4,451,069 Interest 574,558 462,600 372,475 295,435 209,430 Total governmental activities expenses 25,511,029 31,397,741 28,513,321 17,874,881 16,462,624 Business-type activities Water 3,915,324 3,940,038 4,319,188 4,264,602 6,224,262 Sewerage 2,335,993 2,380,517 2,126,395 2,450,965 2,735,053 Refuse disposal 1,388,879 1,386,178 1,397,308 1,496,548 1,520,190 Commuter parking 43,573 195,513 225,498 246,153 210,307 Total business-type activities expenses 7,683,769 7,902,246 8,068,389 8,458,268 10,689,812 TOTAL PRIMARY GOVERNMENT EXPENSES 33,194,798$ 39,299,987$ 36,581,710$ 26,333,149$ 27,152,436$ PROGRAM REVENUES Governmental activities Charges for services General government 1,147,830$ 1,617,058$ 2,384,295$ 1,743,818$ 1,480,008$ Public safety 770,963 867,230 884,195 911,421 935,302 Highways and streets - 10,091 57,912 69,216 75,400 Operating grants and contributions 534,561 558,143 557,050 544,823 524,423 Capital grants and contributions 297,220 1,019,794 235,298 213,575 1,492,153 Total governmental activities program revenues 2,750,574 4,072,316 4,118,750 3,482,853 4,507,286 Business-type activities Charges for services Water 4,109,003 4,038,598 4,644,744 4,250,938 4,365,767$ Sewerage 1,772,816 1,713,520 1,788,238 2,372,061 2,396,295 Refuse disposal 640,430 630,935 615,349 623,681 624,349 Commuter parking 151,133 202,497 206,205 204,177 212,585 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 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 9,423,956$ 10,657,866$ 11,946,465$ 11,936,619$ 12,547,887$ NET (EXPENSE) REVENUE Governmental activities (22,760,455)$ (27,325,425)$ (24,394,571)$ (14,392,028)$ (11,955,338)$ Business-type activities (1,010,387) (1,316,696) (240,674) (4,502) (2,649,211) TOTAL PRIMARY GOVERNMENT NET (EXPENSE) REVENUE (23,770,842)$ (28,642,121)$ (24,635,245)$ (14,396,530)$ (14,604,549)$ CHANGE IN NET ASSETS VILLAGE OF DEERFIELD, ILLINOIS Last Five Fiscal Years - 94 - VILLAGE OF DEERFIELD, ILLINOIS CHANGE IN NET ASSETS (Continued) Last Five Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 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$ Sales 3,420,855 4,490,379 4,480,111 4,533,261 4,552,097 Home rule sales - - 1,875,874 1,832,281 1,913,268 Simplified telecommunications 339,634 298,021 305,226 323,358 354,984 Other 2,899,641 3,214,073 3,600,623 3,891,356 4,065,091 Investment income 499,724 835,537 871,624 1,557,378 1,253,533 Miscellaneous 182,343 175,507 221,617 210,116 278,667 Special items (1,370,009) - - - - Contribution to Component Unit - (127,335) - - - Transfers in (out)- - - (1,600,000) (2,000,000) Total governmental activities 22,245,719 25,638,627 28,436,411 17,289,892 17,035,288 Business-type activities Property taxes 761,356 740,915 786,228 859,502 780,785 Investment income 56,301 113,401 66,823 188,864 192,967 Miscellaneous 101,007 218,095 271,715 214,481 204,343 Contributions 365,926 1,041,893 - - - Transfers in (out)- - - 1,600,000 2,000,000 Total business-type activities 1,284,590 2,114,304 1,124,766 2,862,847 3,178,095 TOTAL PRIMARY GOVERNMENT 23,530,309$ 27,752,931$ 29,561,177$ 20,152,739$ 20,213,383$ CHANGE IN NET ASSETS Governmental activities (514,736)$ (1,686,798)$ 4,041,840$ 2,897,864$ 5,079,950$ Business-type activities 274,203 797,608 884,092 2,858,345 528,884 TOTAL PRIMARY GOVERNMENT CHANGE IN NET ASSETS (240,533)$ (889,190)$ 4,925,932$ 5,756,209$ 5,608,834$ Data Source Audited Financial Statements - 95 - VILLAGE OF DEERFIELD, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 GENERAL FUND Reserved 4,613,870$ 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$ Unreserved 9,328,913 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 TOTAL GENERAL FUND 13,942,783$ 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$ ALL OTHER GOVERNMENTAL FUNDS Reserved 15,844,707$ 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$ Unreserved, reported in Special Revenue Funds 2,252,397 2,575,863 2,796,582 2,630,136 1,234,478 361,876 - - - - Capital Project Funds 5,244,568 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 TOTAL ALL OTHER GOVERNMENTAL FUNDS 23,341,672$ 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$ Data Source Audited Financial Statements - 96 - VILLAGE OF DEERFIELD, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 REVENUES Taxes 18,677,376$ 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$ Licenses and permits 1,099,787 898,849 1,109,682 877,546 934,518 939,098 1,390,602 2,151,791 1,454,044 1,161,276 Intergovernmental 426,053 489,252 524,575 512,901 660,996 831,782 1,582,943 795,364 762,016 713,470 Fines and forfeitures 410,645 396,164 260,435 223,465 193,060 166,175 230,320 244,100 239,668 716,522 Charges for services 409,701 535,458 467,173 566,787 954,827 561,219 606,071 657,581 701,606 261,495 Investment income 1,748,172 1,346,836 3,203,955 1,570,967 1,415,015 499,720 835,537 871,621 1,557,378 1,253,533 Miscellaneous 1,588,558 1,419,645 5,140,866 1,069,550 549,700 434,648 433,279 491,534 514,765 614,796 Total revenues 24,360,292 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 EXPENDITURES General government 2,181,217 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 Public safety 4,114,093 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 Highways and streets 1,323,005 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 Capital outlay 10,493,584 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 Miscellaneous 755,482 - - - - - - - - - Debt service Principal 1,050,000 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 Interest 1,084,617 957,529 904,749 876,891 739,459 598,683 482,750 377,850 302,600 216,600 Total expenditures 21,001,998 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 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 3,358,294 (143,165) (2,469,239) (1,377,602) 1,343,681 (850,953) (3,011,995) 2,849,895 (1,868,566) 666,791 OTHER FINANCING SOURCES (USES) Transfers in 3,950,373 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 Transfers (out)(3,512,723) (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) Bonds issued - - - 3,546,013 - - - - - - Refunding of bonds - - - (3,510,000) - - - - - - Special item - - - - - (1,370,009) - - - - Sale of capital assets - - - - - - 4,606 - 20,870 11,052 Total other financing sources (uses)437,650 191,000 250,025 233,013 750,979 (1,370,009) (122,729) 561,229 (1,579,130) (1,988,948) NET CHANGE IN FUND BALANCES 3,795,944$ 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)$ Debt Service as a Percentage of Noncapital Expenditures 20.31%19.04%25.82%17.85%16.62%13.75%10.36%7.34%14.43%13.51% Data Source Audited Financial Statements - 97 - VILLAGE OF DEERFIELD, ILLINOIS SALES TAX BY CATEGORY Last Ten Calendar Years Calendar Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 General merchandise 56,378$ 87,177$ 78,758$ 79,268$ 82,011$ 162,873$ 214,657$ 297,344$ 217,623$ 268,413$ Food 245,366 185,920 222,214 248,773 307,716 418,454 506,945 646,617 709,999 712,229 Drinking and eating places 337,788 373,500 398,872 457,226 476,341 472,203 469,889 604,698 666,821 749,845 Apparel 29,265 2,983 23,447 66,162 73,784 91,238 108,410 140,908 189,351 195,358 Furniture & H.H. & radio 560,544 489,107 514,293 545,153 560,267 528,154 579,127 1,026,827 836,653 784,397 Lumber, building hardware 93,090 464,986 488,534 511,579 502,467 441,858 490,021 741,273 681,704 614,752 Automobile and filling stations 134,842 153,378 189,363 166,908 160,031 157,021 168,139 264,775 317,435 257,719 Drugs and miscellaneous retail 702,487 718,124 742,858 782,309 763,484 793,503 994,536 1,707,928 1,899,467 1,877,780 Agriculture and all others 231,921 192,926 172,334 176,498 178,602 163,866 186,343 685,694 788,059 737,298 Manufacturers 95,581 115,031 141,888 60,744 96,720 65,151 63,701 95,169 125,147 93,150 TOTAL 2,487,262$ 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$ 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 - 98 - 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 1998 0.25%0.25%0.75%1.00%0.00%1.00%5.00% 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% Data Source Village and County Records - 99 - RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Business-Type Activities Activities Percentage Fiscal General General Total of Year Obligation Obligation Primary Personal Per Ended Bonds Bonds Government Income*Capita* 1999 23,905,000$ 5,000,000$ 28,905,000$ 2.23%1,605.65$ 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 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 the financial * See the schedule of Demographic and Economic Statistics on page 104 for personal statements. - 100 - VILLAGE OF DEERFIELD, ILLINOIS RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years (1)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 1999 23,905,000$ 2,091,157$ 21,813,843$ 1.07%1,211.75$ 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 ** 2007 EAV used as it is the most recent data available Data Source (1) Audited Financial Statements - 101 - * (1)(2) Gross Percentage ** General of Debt Village's Obligation Applicable to Share Governmental Unit Debt Government of Debt Village of Deerfield 4,000,000$ 100.000%4,000,000$ 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 4,978,027,289 60,043,616 Less Debt Service Fund amount available - Village of Deerfield 560,711 560,711 TOTAL DIRECT AND OVERLAPPING DEBT 4,977,466,578$ 59,482,905$ (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. * **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, 2008 Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation. GOVERNMENTAL ACTIVITIES Excludes outstanding principal amounts of General Obligation (Alternate Revenue Source) Bonds which are expected to be paid from sources other than general taxation. - 102 - VILLAGE OF DEERFIELD, ILLINOIS LEGAL DEBT MARGIN INFORMATION April 30, 2008 EQUALIZED ASSESSED VALUATION - 2007*1,534,804,968$ Legal Debt Limit - 8.625%132,376,928$ Amount of debt applicable to limit: General Obligation Bonds Series 1998 4,000,000 LEGAL DEBT MARGIN 128,376,928$ * Most Recent EAV Available 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: Illustrative Computation of Debt Margin If Government Were Not a Home Rule Municipality The Village is a home rule municipality and, as such, has no debt limitations. If, however, the Village were a non-home rule municipality, its available debt limit would be as follows: "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." - 103 - Median Fiscal Personal Household Unemployment Year Population Income Income Rate 1999 18,002 1,295,531,932$ 71,966$ 0.70% 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% Data Source U.S. Census Bureau and U.S. Bureau of Labor Statistics VILLAGE OF DEERFIELD, ILLINOIS DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years - 104 - % of % of Total Village Total Village Employer Employees Rank Population Employees Rank Population Baxter International Inc 3,000 1 16%2,500 1 14% Walgreen Co 2,500 2 14%1,800 2 10% Takeda Pharmaceuticals North 1,900 3 10%- - Kinetek Inc 1,080 4 6%- - Astellas Pharma Us Inc 1,000 5 5%- - Montclair Hotels Mb LLC 700 6 4%- - Linkscorp LLC 700 7 4%- - Deerfield High School 560 8 3%- - Illinois Student Assistance Commission 550 9 3%512 3 3% Moore Walace North America 350 10 2%- - Alliant Food Service - - 450 4 3% Deutsche Financial Services Corp - - 390 5 2% MMI Companies - - 380 6 2% West Group - - 300 7 2% William M. Mercer - - 290 8 2% Teradyne Inc., Telecommunications Division - - 275 9 2% Nestle Clinical Nutrition - - 225 10 1% 12,340 67%7,122 41% Village population 18,420 18,000 Data Source Lake County Partners VILLAGE OF DEERFIELD, ILLINOIS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2008 1999 - 105 - Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 GENERAL GOVERNMENT Village Manager 3 3 3 3 3 3 3 3 3 3 Finance 7 7 7 7 8 8 8 9 10 10 Engineering 1 1 1 1 1 1 1 2 3 3 Community development 5 5 5 5 5 5 5 6 7 7 PUBLIC WORKS Administration 3 3 3 3 3 3 3 2 4 4 Street maintenance 7 7 7 7 7 7 7 7 7 7 Utilities maintenance 11 12 12 13 13 13 13 13 14 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 8 7 7 Communications 7 7 7 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 32 31 31 TOTAL 101 102 102 104 105 105 105 107 111 112 Data Source Village budget office VILLAGE OF DEERFIELD, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years - 106 - Function/Program 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 PUBLIC SAFETY Police Physical arrests 716 611 580 515 458 552 463 498 532 587 Parking violations 5,707 5,043 4,830 4,446 4,113 3,911 3,260 2,332 2,625 2,690 Traffic violations 3,928 3,862 5,401 5,122 3,523 3,767 3,836 4,140 4,119 4,278 PUBLIC WORKS Street resurfacing (miles)1.70 1.63 0.00 0.00 0.91 0.00 2.21 3.11 3.18 3.21 WATER Water main breaks 76 84 92 76 68 110 107 141 62 77 Average daily consumption (gallons)2,918,925 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 Peak daily consumption (gallons)5,711,875 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 WASTEWATER Average daily treatment (gallons)3,495,890 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 Data Source Various Village departments VILLAGE OF DEERFIELD, ILLINOIS OPERATING INDICATORS Last Ten Calendar Years - 107 - Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 PUBLIC SAFETY Police Stations 1 1 1 1 1 1 1 1 1 1 Number of Police Officers 38 40 40 40 40 40 40 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 62 68 68 68 68 68 Traffic signals 8 8 9 9 9 9 10 10 10 10 WATER Water mains (miles)65 82 82 82 82 83 84 84 84 84 Fire hydrants 930 1,174 1,174 1,174 1,174 1,189 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)140 140 140 140 140 140 140 151 151 151 Treatment capacity (gallons)8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 Data Source Various Village departments VILLAGE OF DEERFIELD, ILLINOIS CAPITAL ASSET STATISTICS Last Ten Fiscal Years - 108 -