VILLAGE OF MATTESON, ILLINOIS ANNUAL FINANCIAL REPORT YEAR ENDED APRIL 30, 2016

Transcription

1 ANNUAL FINANCIAL REPORT Report issued by: Village of Matteson Finance Department

2 ANNUAL FINANCIAL REPORT CONTENTS INTRODUCTORY SECTION Officers FINANCIAL and Officials SECTION Independent Auditor's Report 11 - IV Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position Statement of Activities 2-3 Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) - Budget and Actual - General Fund and Major Special Revenue Fund Statement of Net Position - Enterprise Fund - Waterworks and Sewerage Fund Statement of Revenues, Expenses and Changes in Net Position - Enterprise Fund - Waterworks and Sewerage Fund Statement of Cash Flows - Enterprise Fund - Waterworks and Sewerage Fund

3 ANNUAL FINANCIAL REPORT CONTENTS Statement of Fiduciary Net Position - Pension Trust Funds 15 Statement of Changes in Fiduciary Net Position - Pension Trust Funds ]6 Notes to Basic Financial Statements Required Supplementary Information: Employer's Retirement and Postemployment Benefit Plan Information: Firefighters' Pension Fund Police Pension Fund Illinois Municipal Retirement Fund Postemployment Healthcare Plan 75 Combining and Individual Fund Financial Statements and Schedules: Major Governmental Funds: General Fund: Balance Sheet 76 Schedule of Revenues, Expenditures and Changes in Fund Deficits - Budget and Actual 77 Schedule of Revenues - Budget and Actual Schedule of Expenditures - Budget and Actual Special Revenue Fund: Lincoln Highway/Cicero Avenue Business District Fund: Balance Sheet 100 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 101

4 ANNUAL FINANCIAL REPORT CONTENTS Capital Projects Funds: Tax Incremental Finance District II Fund: Balance Sheet 102 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 103 Tax Incremental Finance District N Fund: Balance Sheet 104 Schedule of Revenues, Expenditures and Changes in Fund Deficits - Budget and Actual 105 Nonmajor Governmental Funds: Combining Balance Sheet 106 Combining Statement of Revenues, Expenditures and Changes III Fund Balances 107 Nonmajor Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes III Fund Balances Motor Fuel Tax Fund: Balance Sheet 112 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 113

5 ANNUAL FINANCIAL REPORT CONTENTS South Suburban Special Recreation Fund: Balance Sheet 114 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 115 Drug Forfeiture Fund: Balance Sheet 116 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 117 Foreign Fire Insurance Fund: Balance Sheet 118 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 119 Hotel/Motel Tax Fund: Balance Sheet 120 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 121 Lincoln Highway/Governors Highway Corridor Business District Fund: Balance Sheet 122 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 123

6 ANNUAL FINANCIAL REPORT CONTENTS Matteson Gateway Business District Fund: Balance Sheet 124 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 125 Nonmajor Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes 111 Fund Balances (Deficits) A Community Center Utility Bonds Fund: Balance Sheet 130 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B Refunding Bonds Fund: Schedule of Expenditures and Changes in Fund Balances - Budget and Actual B General Obligation Refunding Bonds Fund: Balance Sheet 133 Schedule of Revenues, Expenditures and Changes 111 Fund Deficits - Budget and Actual A General Obligation Bonds Fund: Balance Sheet 135 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 136

7 ANNUAL FINANCIAL REPORT CONTENTS 2008 General Obligation Bonds Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual l Debt Certificates Fund: Balance Sheet 138 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B Alternate Revenue Bonds Fund: Balance Sheet 140 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 141 Tax Incremental Finance District IV Debt Service Fund: Balance Sheet 142 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 143 Nonmajor Capital Projects Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes 111 Fund Balances (Deficit) Tax Incremental Finance District I Fund: Balance Sheet 148 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 149

8 ANNUAL FINANCIAL REPORT CONTENTS Tax Incremental Finance District III Fund: Balance Sheet 150 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 151 Tax Incremental Finance District V Fund: Balance Sheet 152 Schedule of Expenditures and Changes in Fund Deficits - Budget and Actual 153 Tax Incremental Finance District VI Fund: Balance Sheet 154 Schedule of Revenues, Expenditures and Changes III Fund Balances (Deficit) - Budget and Actual 155 Major Enterprise Fund: Waterworks and Sewerage Fund: Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ]56 Fiduciary Funds: Pension Trust Funds: Combining Statement of Fiduciary Net Position ]57 Combining Statement of Changes in Fiduciary Net Position ]58

9 INTRODUCTORY SECTION

10 OFFICERS AND OFFICIALS APRIL 30, 2016 VILLAGE PRESIDENT Andre B. Ashmore VILLAGE CLERK Dorothy Grisco TRUSTEES Sam Brown Sheila Chalmers-Currin Veloid Cotton Bridget A. Dancy Paula Farr Andre Satchell VILLAGE ADMINISTRATOR Brian D. Mitchell

11 FINANCIAL SECTION

12 Certified Public Accountants & Trusted Advisors To the Honorable President and Members of the Board of Trustees Village of Matteson, Illinois INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Matteson, Illinois, as of and for the year ended April 30, 2016, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. We did not audit the financial statements of the pension trust funds. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the pension trust funds, which are fiduciary fund-type component units. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the pension trust funds, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 11 P: F: RaviniaAve., Orland Park, IL mpscpa.com

13 Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information, and the pension trust funds of the Village of Matteson, Illinois, as of April 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General Fund and major special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As described in Note II. H to the basic financial statements, the Village changed its method of accounting and financial reporting for pensions as required by the provisions of GASB Statement No. 68. Our opinion is not modified with respect to that matter. Emphasis of Matter As discussed in Notes H.F and H.G to the financial statements, the Village has a significant deficit in the General Fund. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the employer's retirement and postemployment benefit plan information on pages 63 through 72 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 111

14 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of the Village of Matteson, Illinois. The introductory section and the combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, based on our audit, the procedures performed as described above, and the reports of other auditors, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on this section. We also have previously audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Matteson, Illinois for the year ended April 30, 2015, which are not presented with the accompanying financial statements. We did not audit the pension trust funds for the year ended April 30, Based on our audit and the reports of other auditors, we expressed unmodified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information and the pension trust funds. The audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements ofthe Village of Matteson, Illinois as a whole. The individual fund financial statements and schedules for the year ended April 30, 2015, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibi lity of management and was derived from and relates directly to the underlying accounting and other records used to prepare the April 30, 2015 basic financial statements. The information has been subjected to the auditing procedures applied in the audits of those basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the April 30,2015 individual fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements from which they have been derived. Orland Park, Illinois February 9, 2017 IV

15 BASIC FINANCIAL STATEMENTS

16 GOVERNMENT-WIDE FINANCIAL STATEMENTS

17 STATEMENT OF NET POSITION APRIL 30, 2016 ASSETS Governmental Business-type Activities Activities Total Cash and cash equivalents $ 22,474,067 $ 54,167 $ 22,528,234 Restricted cash 2,358,780 2,358,780 Receivables: Property taxes 3,763,916 3,763,916 Other taxes 3,575,690 3,575,690 Other 915,236 1,603,732 2,518,968 Due from other governments 6,556 6,556 Inventories 14,248 14,248 Prepaid items 234, ,531 Internal balances (6,912,894) 6,912,894 Capital assets not being depreciated 17,334, ,061 18,000,599 Capital assets net of accumulated depreciation , Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pensions 12,608, ,484 13,077,891 Unamortized loss on refunding ,540 Total deferred inflows of resources , LIABILITIES Accounts payable 2,694, ,602 2,927,509 Accrued expenses 2,854,135 56,081 2,910,216 Accrued interest 310,572 81, ,407 Deferred revenue 47,566 47,566 Deposits 35,663 35,663 Due to other governments 300, ,699 Letter of credit 637, ,852 Noncurrent liabilities: Due within one year 1,932, ,390 2,412,144 Due in more than one year Total liabilities , DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 306, ,840 Unavailable revenue - property taxes Total deferred inflows of resources 3, NET POSITION (DEFICIT) Net investment in capital assets 17,604,775 20,520,336 38,125,111 Restricted for: Capital projects 7,629,518 7,629,518 Community development 10,222,385 10,222,385 Debt service 5,171,192 5,171,192 Public works 1,055,270 1,055,270 Other purposes 350, ,067 Unrestricted (84,884,649) 9,803,123 <75, ) Total net position (deficit) $ (42, ) $ $ ( ) See notes to basic fmancial statements.

18 STATEMENT OF ACTIVITIES Expenses Program Charges for Services Revenues Operating Grants and Contributions Functions/programs: Governmental activities: General government Community development Public safety Public works Recreational services Interest $ 9,325,978 $ 2,011,748 $ 3,549,653 16,785,843 1,547, ,440 2,001, , ,334 2,144,720 1,173,913 3,975,176 Total governmental activities 37,782,648 5,165, ,774 Business-type activities: Waterworks and sewerage Total 7,032,519 7, $ 44,8 L5,167 $ $ 578,774 General revenues: Taxes: Property State sales Other Earnings on investments Other income Total general revenues Changes in net position (deficit) Net position (deficit) at beginning of year, as restated Net position (deficit) at end of year See notes to basic financial statements. 2

19 Net (Expense) Revenue and Changes in Net Position <Deficit) Governmental Business-type Activities Activities Total $ (7,314,230) $ $ (7,314,230) (3,549,653) (3,549,653) (14,907,926) (14,907,926) (1,320,094) (1,320,094) (970,807) (970,807) (3,975,176) ( ) (32,037,886) (32,037,886) ( ) (31,896,004) 8,056,451 8,056,451 4,990,652 4,990,652 8,117,148 8,117,148 15,284 6,213 21, , ,144 22,420, ,892 (9,617,619) 179,507 (9,438,112) (33,233,823) 30,143,952 (3,089,871) $ (42, ) $ ,459 s (\ 2,527,983) 3

20 FUND FINANCIAL STATEMENTS

21 BALANCESHEET-GOVERNMENTALFUNDS APRIL 30, 2016 ASSETS Tax Tax Lincoln Highway/ Incremental Incremental Cicero Avenue Finance Finance General Business District District II District IV Cash and cash equivalents $ 2,200 $ 4,932,031 $ 4,881,818 $ Receivables: Property taxes 3,539,504 Other taxes 2,593, ,041 Other 893,345 21,891 Due from other governments Advances to other funds 292,743 Inventories 14,248 Prepaid items Total assets $ $ 5.410,325 $ $ LIABILITIES Accounts payable $ 2,403,413 $ 1,112 $ $ 47,177 Accrued expenditures 595,821 5,034 2,250,000 Deposits 35,663 Due to other governments 4,503 Letter of credit 637,852 Advances from other funds 8, Total liabilities ,146 2, DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES (DEFICITS) Nonspendable 248, Restricted 5,403,926 5,174,561 Assigned Unassigned ( ) ( ) Total fund balances (deficits) (8,530.)83) (2.568,029) Total liabilities, deferred inflows of resources, and fund balances (deficits) $ $ $ $ 21,891 See notes to basic financial statements. 4

22 Tax Total Incremental Nonmajor Total Finance Governmental Governmental District VII Funds Funds $ $ 12,658,018 $ 22,474, ,412 3,763, ,645 3,575, ,236 6,556 6,556 1,739,865 2,032,608 14, ,531 $ $ 15,134,002 $ 33,016,852 $ $ 243,205 $ 2,694,907 3,280 2,854,135 35, , , ,852 55,979 8,945, , , ,507 3,754, ,159, ,550 (55,979) 248,779 24,738, ,550 (11.402,411) ,835 13,793,163 $ $ 15,134,002 $ 33,016,852 5

23 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION APRIL 30, 2016 Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds $ 13,793,163 Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental funds. 70,608,062 Unamortized loss on refunding is shown as a deferred outflow of resources on the statement of net position. 21,540 Revenues that do not provide current financial resources are included in unavailable revenue in the balance sheet - governmental funds. 224,449 Long-term liabilities, including bonds and debt certificates payable, are not due and payable in the current year and, therefore, are not reported as liabilities in the funds. Long-term liabilities and related accounts at year-end consist of: Bonds and debt certificates payable Issuance premium Issuance discount Accrued interest Compensated absences payable Net pension liabilities Other post-employment benefits obligation $ (56,244,913) (100,854) 287,012 (310,572) (744,417) (82,083,680) ( ) Total (139,800,223) Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. Deferred outflows and inflows of resources related to pensions at year-end are as follows: Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions $ 12,608,407 ( ) Total Net position (deficit) of governmental activities $ (42, ) See notes to basic financial statements. 6

24 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - GOVERNMENTAL FUNDS Tax Tax Lincoln Highway/ Incremental Incremental Cicero Avenue Finance Finance General Business District District II District IV Revenues: Property taxes $ 5,964,464 $ $ 35,989 $ 743,877 State sales tax 4,990,652 Other taxes 4,691,274 1,937,333 Licenses and permits 432,850 Charges for services 2,627,245 Intergovernmental 290,691 Interest income 6,924 Fines, forfeitures and penalties 614,508 Recreation programs 1,173,913 Vehicle licenses 317,472 Other income 1.173,739 Total revenues 22,283, ,333 35, ,877 Expenditures: Current: General government 341,008 General operations 3,652,589 Administrative services 261, ,252 1,100 2,658,287 Finance 560,896 Human resources 187,550 Community development 452,731 Community affairs 213,766 Public safety 12,699,735 Public works 691,021 Recreational services 2,012,444 Capital outlay: Finance 110,194 Public safety Public works Recreational services 3,479 Debt service: Principal retirement Interest charges and fees Issuance costs Total expenditures , , ,658,287 Excess (deficiency) of revenues over expenditures 1,097, ,081 34,889 (1, ) Other financing sources (uses): Limited bonds issued Transfers in Transfers out (1.199,990) ( ) Total other financing sources (uses) (1.199,990) ( ) Net change in fund balances (deficits) (102,947) 1,726,081 34,889 (2,198,735) Fund balances (deficits) at beginning of year ( ) 3,678, ,672 (369,294) Fund balances (deficits) at end of year $ (8, ) $ 5.404,179 $ 5, $ (2,568,029) See notes to basic fmancial statements, 7

25 Tax Total Incremental Nonmajor Total Finance Governmental Governmental District VII Funds Funds $ $ 1,442,139 $ 8,186,469 4,990,652 1,488,541 8,117, ,850 2,627, , ,774 8,360 15, ,508 1,173, , l

26 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances (deficits) - total governmental funds $ 363,895 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense ($2,073,115) exceeded capital outlays ($566,960) in the current period. Property tax revenues that are not available to pay for current period expenditures are identified as unavailable revenues and not reported as revenues in the governmental funds. This is the amount by which unavailable property tax revenue at year-end changed from the corresponding prior year-end amount. Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. This is the amount by which accrued interest at year-end increased from the corresponding amount at the end ofthe previous year. (1,506,155) (130,018) (62,304) The issuance of long-term debt (e.g., bonds, debt certificates) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt uses current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The net effect of these differences in the treatment of long-term debt and related items is summarized as follows: Limited bonds issued Principal repayments of long-term debt Increase in accreted bond interest Amortization of issuance premium Amortization of issuance discount Amortization of unamortized loss on refunding $ (3,033,928) 1,855,000 (3,058,502) 10,500 (20,904) (12,576) Total (4,260,410) Certain expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. These expenses consist of the following: Increase in compensated absences payable Increase in the other post-employment benefits obligation $ (26,836) ( ) Total Governmental funds report Village pension contributions as expenditures. However, in the statement of activities, the cost of pension benefits earned is reported as pension expense. This is the amount by which pension benefits earned exceeded Village pension contributions in the current period. Change in net position (deficit) of governmental activities s (179,283) (3, ) See notes to basic financial statements. 9

27 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - BUDGET AND ACTUAL GENERAL FUND AND MAJOR SPECIAL REVENUE FUND General Fund Original Final Variance with Budget Budget Actual Final Budget Revenues: Property taxes $ 5,566,455 $ 5,566,455 $ 5,964,464 $ 398,009 State sales tax 5,055,000 5,055,000 4,990,652 (64,348) Other taxes 4,701,191 4,513,191 4,691, ,083 Licenses and permits 459, , ,850 (26,350) Charges for services 2,630,690 2,630,690 2,627,245 (3,445) Intergovernmental 340, , ,691 (49,362) Interest income 1,000 1,000 6,924 5,924 Fines, forfeitures and penalties 1,435,000 1,180, ,508 (565,492) Recreation programs 1,631,500 L,341,500 1,173,913 ( 167,587) Vehicle Licenses 350, , ,472 (32,528) Other income I. 175, ,539 I. 173,739 (1,800) Total revenues ( ) Expenditures: Current: GeneraL government 371, , ,008 30,036 GeneraL operations 3,410,879 3,410,879 3,652,589 (24 L,71O) Administrative services 263,L47 263, ,276 L,871 Finance 675, , ,896 L14,205 Human resources 202, , ,550 14,538 Community development 451, , ,731 (1,727) Community affairs 279, , ,766 65,449 Public safety 13,000,935 13,000,935 12,699, ,200 Public works 758, , ,021 67,414 RecreationaL services 1,866,228 L,866,228 2,012,444 ( 146,216) Capital outlay: Finance 119, , ,194 8,806 Recreational services 15, TotaL expenditures L ,387 Excess of revenues over expenditures 1,933,552 1,200,552 1,097,043 (103,509) Other financing uses: Transfers out ( ) ( ) ( ) 24 Net change in fund balances (deficits) 733, (102,947) (103,485) Fund balances (deficits) at beginning of year ( ) (8, ) ( ) Fund balances (deficits) at end of year $ ( ) $ ( ) s ( SJ) s (I OJ. 85) See notes to basic financial statements. 10

28 Lincoln Highway/Cicero Avenue Business District Fund Original and Final Variance with Budget Actual Final Budget $ $ $ 2,090,000 1,937,333 (152,667) (, ) 538, , , =::..:53~8~.4~3:! ,551,567 1,726, , ,567 l.726.0g I 174, Cl78.0 Il $ s ;=$_==17=4,;,;;.5=14= II

29 STATEMENT OF NET POSITION ENTERPRISE FUND - WATERWORKS AND SEWERAGE FUND APRIL 30, 2016 ASSETS Current assets: Cash and cash equivalents Restricted cash Accounts receivable, net of allowance of $158,298 Total current assets Noncurrent assets: Capital assets not being depreciated Capital assets, net of accumulated depreciation Advances to other funds $ 54,167 2,358, ,061 25,479, Total noncurrent Total assets assets 33,058, DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pensions 469,484 LIABILITIES Current liabilities: Accounts payable Accrued expenditures Accrued interest Deferred revenue Current portion of long-term liabilities: Bonds payable Compensated absences payable 232,602 56,081 81,835 47, , Total current liabilities 897,474 Long-term liabilities, less current portion: Bonds payable Compensated absences payable Net pension liability 5,170,110 9, Total long-term liabilities 6, Total liabilities 7, NET POSITION Net investment Unrestricted in capital assets 20,520,336 9, Total net position $ 30, See notes to basic financial statements. 12

30 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ENTERPRISE FUND - WATERWORKS AND SEWERAGE FUND Operating revenues: Charges for services: Water sales $ 5,197,233 Sewer charges 1,800,544 Penalties 154,637 Sales of water meters 21,987 Other Total operating revenues 7,205,813 Operating expenses: Operations 5,735,575 Depreciation 1.090,705 Total operating expenses 6,826,280 Operating income 379,533 Nonoperating revenue (expense): Interest income 6,213 Interest charges and fees ( ) Total nonoperating revenue (expense) (200,026) Increase in net position Net position at beginning of year, as restated 30,143,952 Net position at end of year $ 30,323,459 See notes to basic financial statements. 13

31 STATEMENT OF CASH FLOWS ENTERPRISE FUND - WATERWORKS AND SEWERAGE FUND Cash flows from operating activities: Receipts from customers and users $ 7,088,816 Payments to employees (1,863,690) Payments to suppliers (3,786,150) Net cash provided by operating activities J.438,976 Cash flows from noncapital financing activities: Advances made to other funds ( ) Cash flows from capital and related fmancing activities: Purchases of capital assets (428,332) Principal paid on capital debt (415,000) Interest paid on capital debt (210,159) Net cash used by capital and related financing activities (1,053,491) Cash flows from investing activities: Interest income received 6,213 Net decrease in cash (435,622) Cash at beginning of year 2,848,569 Cash at end of year $ 2,412,947 Reconciliation of operating income to net cash provided by operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation (Increase) in: Receivables Deferred outflows of resources related to pensions Increase (decrease) in: Accounts payable Accrued expenses Compensated absences payable Net pension liability Net cash provided by operating activities $ 379,533 1,090,705 (116,997) (415,022) 7,761 5,761 (6,581) 493,816 $ 1,438,976 Summary of cash: Cash and cash equivalents Restricted cash Total $ 54, ,780 $ 2,412,947 See notes to basic financial statements. 14

32 STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST FUNDS APRIL 30, 2016 ASSETS Cash and cash equivalents $ 76,960 Accrued interest receivable 82,516 Investments, at fair value: Corporate bonds 6,429,677 Equity mutual funds 23,078,597 Equity securities 417,174 Money market mutual funds 1,385,248 State and local obligations 185,475 U.S. government and agency securities 8,773,133 Prepaid expense Total assets 40,436,019 LIABILITIES Accounts payable NET POSITION Net position restricted for pensions $ 40,412,418 See notes to basic financial statements. 15

33 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS Additions: Contributions: Employer $ 2,255,369 Employee Total contributions 2,818,087 Investment income (loss) (598,471) Less investment expense ( ) Net investment income (loss) (712,875) Total additions 2,105,2]2 Deductions: Administrative expenses 106,009 Benefit payments 3,419,484 Refund of employee contributions Total deductions 3,578,923 Net decrease in net position (1,473,711) Net position at beginning of year 41, Net position at end of year $ See notes to basic financial statements. 16

34 NOTES TO BASIC FINANCIAL STATEMENTS

35 NOTES TO BASIC FINANCIAL STATEMENTS I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Description of Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. B. Reporting Entity The Village of Matteson, Illinois was incorporated on April 18, The Board of Trustees is composed of an elected President and Trustees which forms the legislative branch of the Village. The Village provides a wide range of general municipal services, including police protection, fire protection, community planning and zoning, building inspection and safety, street maintenance, public improvements, recreation and general administrative services. Tn addition, water and sewer services are provided under an enterprise fund concept, with user charges set by the Village to ensure adequate coverage of operating expenses and payments on outstanding debt. The accompanying financial statements present the Village and its component units, entities for which the Village is considered to be financially accountable. Blended component units are, in substance, part of the primary government's operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. Fiduciary-type Component Unit. The Village's sworn fire and police employees participate in the Firefighters' and Police Pension Funds. The Village and the Pension Funds' participants are obligated to fund all costs based upon actuarial valuations. The state of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of the contribution levels. Although they are legally separate from the Village, the Pension Funds are reported as if they were part of the primary government because their sole purpose is to provide retirement benefits for the Village's sworn firefighters and police officers. Matteson Public Library. The Matteson Public Library ("Library") was presented as a discretely presented component unit in previous years. As of January 1,2016, the Library became a District Library and is no longer considered a component unit of the Village. C. Basis of Presentation - Government-wide financial statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds, while business-type activities incorporate data from the Village's enterprise fund. Separate financial statements are provided for governmental funds, the enterprise fund, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. 17

36 NOTES TO BASIC FINANCIAL STATEMENTS As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the Village's waterworks and sewerage function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. D. Basis of Presentation - Fund Financial Statements The fund financial statements provide information about the Village's funds, including its blended component units which are reported as fiduciary funds. Separate statements for each fund category - governmental, enterprise, and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. The major individual governmental funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds: The General Fund is the Village's primary operating fund. The General Fund accounts for all financial resources of the general government, except those accounted for in another fund. The Lincoln Highway/Cicero Avenue Business District Fund is a major special revenue fund of the Village. This fund accounts for the administrative and community development activities of the identified business district. The Tax Incremental Finance District II Fund is a major capital projects fund of the Village. This fund accounts for financial resources earmarked or segregated for the acquisition and/or construction of capital assets relating to the Tax Incremental Finance District II. The Tax Incremental Finance District IV Fund is a major capital projects fund of the Village. This fund accounts for financial resources earmarked or segregated for the acquisition and/or construction of capital assets relating to the Tax Incremental Finance District IV. The Tax Incremental Finance District VII Fund is a major capital projects fund of the Village. This fund accounts for financial resources earmarked or segregated for the acquisition and/or construction of capital assets relating to the Tax Incremental Finance District VII. The Village reports the following nonmajor governmental funds: Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted by law or administrative action to expenditure for specific purposes other than debt service or capital projects. The Village's nonmajor special revenue funds are the Motor Fuel Tax Fund, South Suburban Special Recreation Fund, Drug Forfeiture Fund, Foreign Fire Insurance Fund, Hotel/Motel Tax Fund, Lincoln Highway/Governors Highway Corridor Business District Fund, Matteson Gateway Business District Fund, and Matteson Auto Mall Business Development Fund. 18

37 NOTES TO BASIC FINANCIAL STATEMENTS Debt service funds are used to account for the accumulation of resources that are restricted, committed, or assigned for the payment of principal and interest on long-term obligations of governmental funds. The Village's nonmajor debt service funds are the 2003A Community Center Utility Bonds Fund, 2003B Refunding Bonds Fund, 2004B General Obligation Refunding Bonds Fund, 2006A General Obligation Bonds Fund, 2008 General Obligation Bonds Fund, 2010 Debt Certificates Fund, 2011B Alternate Revenue Bonds Fund, and Tax Incremental Finance District N Debt Service Fund. Capital projects funds are used to account for financial resources that are earmarked or segregated for the acquisition and/or construction of capital assets, except those financed and accounted for in other funds. The Village's nonmajor capital projects funds are the Tax Incremental Finance District I Fund, Tax Incremental Finance District III Fund, Tax Incremental Finance District V Fund, and Tax Incremental Finance District VI Fund. The Village reports the following major enterprise fund: The Waterworks and Sewerage Fund accounts for the provision of water and sewer services to the residents ofthe Village. Additionally, the Village reports the following fiduciary fund type: The pension trust funds account for funds held by the Village in a fiduciary capacity for public employee retirement systems. The pension trust funds of the Village are the Firefighters' Pension Fund and the Police Pension Fund. During the course of operations the Village has activity between funds for various purposes. Any residual balances outstanding at year end are reported as advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the governmentwide financial statements. Balances between the funds included in governmental activities are eliminated so that only the net amount is included as internal balances in the governmental activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. E. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. 19

38 NOTES TO BASIC FINANCIAL STATEMENTS The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 90 days of the end of the current fiscal period (60 days for property taxes). Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Property taxes, sales taxes, other taxes, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (see preceding paragraph for discussion of the availability period). All other revenue items are considered to be measurable and available only when cash is received by the Village. The enterprise and pension trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. F. Budgetary Information 1. Budgetary Basis of Accounting The annual appropriations ordinance (budget) is adopted on a basis consistent with accounting principles generally accepted in the United States of America. The budget appropriations lapse at the end of each fiscal year. The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The administration submits to the Board of Trustees a proposed operating budget for the year commencing the following May. The operating budget includes proposed expenditures and the means of financing them. 20

39 NOTES TO BASIC FINANCIAL STATEMENTS 2. Public budget hearings are conducted and the proposed budget is available for inspection to obtain taxpayer comments. 3. The budget is legally enacted through passage of an ordinance by the Board of Trustees. 4. The Village administration is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Board of Trustees. 5. Budgets are adopted on the modified accrual basis of accounting for governmental funds and the accrual basis of accounting for the enterprise fund. The level of control (level at which expenditures may not exceed budget/appropriations) is the fund. 6. Formal budgetary integration is employed as a management control device during the year for the budgeted funds. Formal budgetary integration is not employed for the other funds because effective budgetary control is achieved through other means. 7. The budget was amended during the year ended April 30, Excess of Expenditures/Expenses over Budgeted Amounts For the year ended April 30,2016, expenditures/expenses exceeded the budgeted amount in the following funds: Fund Budget Actual Variance Tax Incremental Finance District IV Fund $ Tax Incremental Finance District VII Fund Nonmajor governmental funds: Special revenue funds: Motor Fuel Tax Fund South Suburban Special Recreation Fund Drug Forfeiture Fund Foreign Fire Insurance Fund Matteson Auto Mall Business Development Fund Capital projects fund: Tax Incremental Finance District I Fund 50,000 $ 2,658,287 3,033, ,099 98,810 1,100 $ (2,608,287) (3,033,928) 803,966 (164,867) 116,665 (17,855) 83,423 (83,423) 29,885 (29,885) 1,380 (1,380) 114,876 (113,776) The overexpenditure in the Tax Incremental Finance District IV Fund was funded by accounts payable. The overexpenditure in the Tax Incremental Finance District VII Fund was funded by bond proceeds. The overexpenditures in the Motor Fuel Tax Fund and the Matteson Auto Mall Business Development Fund were funded by greater than anticipated revenues. The overexpenditures in the South Suburban Special Recreation Fund and the Tax Incremental Finance District I Fund were funded by available fund balance. The overexpenditures in the Drug Forfeiture Fund and the Foreign Fire Insurance Fund were funded by greater than anticipated revenues and available fund balance. 21

40 NOTES TO BASIC FINANCIAL STATEMENTS G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 1. Cash and Cash Equivalents The Village's cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturities of three months or less from the date of acquisition. 2. Investments Investments are reported at fair value (generally based on quoted market prices) except for the position in the Illinois Funds. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national exchange are valued at the last reported sales price and investments that do not have an established market are reported at estimated fair value. Cash deposits are reported at carrying amount which reasonably approximates fair value. In accordance with state law, the Illinois Funds operates in conformity with all of the requirements of the Securities and Exchange Commission's (SEC) Rule 2a7 as promulgated under the Investment Company Act of 1940, as amended. Accordingly, the Illinois Funds qualifies as a 2a7-like pool and is reported at the net asset value per share (which approximates fair value) even though it is calculated using the amortized cost method. The lllinois Funds is subject to regulatory oversight by the state Treasurer, although it is not registered with the SEC. 3. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. 4. Capital Assets Capital assets, which include land, rights of way, construction in progress, land improvements, buildings and improvements, machinery, furniture, and equipment, streets, sidewalks, storm sewers, sanitary sewers, street lights, traffic signals, bridges and the water distribution system are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial individual cost of more than $10,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its estimated useful life. Donated capital assets are recorded at estimated fair value at the date of donation. 22

41 NOTES TO BASIC FINANCIAL STATEMENTS Interest incurred during the construction phase of capital assets of the enterprise fund is included as part of the capitalized value of the assets constructed. The amount of interest capitalized depends on the specific circumstances. Land, rights of way and construction in progress are not depreciated. The other capital assets are depreciated using the straight-line method over the following estimated useful lives: As et Bridges Buildings and improvements Land improvements Machinery, furniture, equipment and software Sanitary sewers Sidewalks Storm sewers Street lights Streets Traffic signals Water distribution system Years Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts, as well as gains (losses) on refundings, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Gains (losses) on refundings are reported as deferred inflows (outflows) of resources. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenses. 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 from the actual debt proceeds received, are reported as debt service expenditures. 23

42 NOTES TO BASIC FINANCIAL STATEMENTS 6. Deferred Outflows/Inflows of Resources In addition to assets, the financial statements will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Village has two items that qualify for reporting in this category. One item, unamortized loss on refunding, is reported in the government-wide statement of net position. An unamortized loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The other item, deferred outflows of resources related to pensions, is reported in the government-wide and enterprise fund statements of net position (see Note lila for further discussion of deferred inflows of resources related to pensions). In addition to liabilities, the financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenues) until that time. The Village has two items that qualify for reporting in this category. One item, unavailable revenue, is reported in the government-wide statement of net position and governmental funds balance sheet. The Village reports unavailable revenues from property taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The other item, deferred inflows of resources related to pensions, is reported in the governmentwide and enterprise fund statements of net position (see Note IILA for further discussion of deferred inflows of resources related to pensions). 7. Net Position Flow Assumption Sometimes the Village will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and enterprise fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village's policy to consider restricted net position to have been depleted before unrestricted net position is applied. 8. Fund Balance Flow Assumptions Sometimes the Village will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 24

43 NOTES TO BASIC FINANCIAL STATEMENTS 9. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The Village itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The comm itted fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the Village's highest level of decision-making authority. The Board of Trustees is the highest level of decision-making authority for the Village that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the Village for specific purposes but do not meet the criteria to be classified as committed. The Board of Trustees may, by resolution, authorize an individual to assign fund balance. The Board of Trustees has not adopted such a resolution. The Board of Trustees may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. H. Revenues and ExpenditureslExpenses 1. Program Revenues Amounts reported as program revenues include I) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. 2. Property Taxes Property taxes are levied as of January 1 on property values assessed on the same date. The tax levy is divided into two billings: the first billing is mailed on or about February 1 of the following year and the second billing is mailed on or about August 1 of the following year. The billings are considered past due 30 days after the respective tax billing date at which time the applicable property is subject to lien and penalties and interest are assessed. The Village receives significant property tax distributions in the month following the due dates. 25

44 NOTES TO BASIC FINANCIAL STATEMENTS 3. Compensated Absences The Village's policy permits employees to accumulate earned but unused vacation benefits. The liability for such leave is reported as incurred in the government-wide and enterprise fund financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The liability for unused vacation benefits includes salaryrelated benefits, where applicable. Accumulated sick leave lapses when employees leave the employ of the Village and, upon separation from service, generally no monetary obligation exists. 4. Enterprise Funds Operating and Nonoperating Revenues and Expenses Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund's principal ongoing operations. The principal operating revenue of the Waterworks and Sewerage Fund is charges to customers for sales and services. The Waterworks and Sewerage Fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for the enterprise fund includes the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. I. Estimates Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets, liabilities, and deferred outflows/inflows of resources; the disclosure of contingent assets and liabilities; and the reported revenues and expenses/expenditures. Actual results could differ from those estimates. J. Comparative Data Comparative data for the prior year have been presented in the financial statements in order to provide an understanding of the changes in the financial position and operations of the Village. 26

45 NOTES TO BASIC FINANCIAL STATEMENTS II. DETAILED NOTES ON ALL ACTIVITIES AND FUNDS A. Deposits and Investments The Village maintains a cash and investment pool that is available for use by all funds, except for the Firefighters' and Police Pension Funds. The Village is authorized to make deposits in commercial banks, savings and loan institutions and make investments in obligations of the U.S. Treasury and U.S. government agencies, obligations of states and their political subdivisions, savings accounts, credit union shares, repurchase agreements under certain statutory restrictions, commercial paper rated within the three highest classifications by at least two standard rating services and the Illinois Funds. Pension trust funds may also invest in certain non U.S. obligations, mortgages, veteran's loans, and life insurance company contracts. The deposits and investments of the pension trust funds are held separately from those of other funds. Deposits Village of Matteson, Illinois: Custodial credit risk for deposits is the risk that, in the event of a bank failure, the Village's deposits might not be recovered. The Village does not have a deposit policy for custodial credit risk. As of April 30, 2016, $12,396,953 of the Village's bank balances of $12,667,499 was in excess of FDIC limits and was collateralized with securities held by the pledging financial institutions' trust departments or agents in the Village's name. Firefighters' Pension Fund: At year end, the Firefighters' Pension Fund's bank balances were fully covered by federal depository insurance. Police Pension Fund: At year end, the Police Pension Fund's bank balances were fully covered by federal depository insurance. 27

46 NOTES TO BASIC FINANCIAL STATEMENTS Investments As of April 30,2016, investments were comprised of the following: Investment Maturities - (in Years) Not Type of investment Fair Value Less than More than 10 Applicable Village: Money market mutual fund $ 2,006,023 $ $ $ $ $ 2,006,023 Illinois Funds 10, ,135,414 Total Village $ ,437 $ $ $ $ $ Firefighters' Pension Fund: Corporate bonds $ 3,370,233 $ 152,607 $ 1,916,794 $ 1,300,832 $ $ Equity mutual funds 11,138,518 11,138,518 Equ ity securities 417, ,174 Federal Home Loan Mortgage Corporation 409, , ,421 Federal National Mortgage Association 486, , ,147 50,960 Governmental National Mortgage Association 5,345 1,679 3,666 Money market mutual funds 537, ,701 State and local obi igations 185,475 20, ,125 U.S. Treasury notes ,849 Total Firefighters' Pension Fund $ $ 747,426 $ 3.276,425 $ 2.651,494 s $ Police Pension Fund: Corporate bonds $ 3,059,444 $ $ 2,535,332 $ 524,112 $ $ Equity mutual funds 11,940,079 11,940,079 Federal Home Loan Bank 2,707,654 2,707,654 Governmental National Mortgage Association 227, ,577 69,072 Money market mutual funds 847, ,547 Tennessee Valley Authority strips 1,280,011 1,280,011 U.S. Treasury notes \ Total Police Pension Fund $ $ 847,547 $ 6.676,364 $ !r $ $ 11, The Firefighters' called. Pension Fund and the Police Pension Fund assume that any callable securities will not be 28

47 NOTES TO BASIC FINANCIAL STATEMENTS Investment Policies The Village's investments are subject to the following risks: Concentration of credit risk is the risk of loss attributed to the magnitude of the Village's investment in a single issuer. The Village's investment policy requires diversified investments to eliminate the risk of loss resu Iting from an over concentration in a specific issuer or class of securities. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statutes authorize the Village to invest in obligations ofthe U.S. Treasury and U.S. agencies, obligations of states and their political subdivisions, repurchase agreements (under certain statutory restrictions), commercial paper rated within the three highest classifications by at least two standard rating services, and the Illinois Funds. It is the Village's policy to limit its investments to the top rating issued by nationally recognized standard rating organizations. The Village's investment in the Illinois Funds was rated AAAm by Standard & Poor's. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the Village will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The Village does not have an investment policy to address custodial credit risk for investments. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Village does not have an investment policy to address interest rate risk for investments. The Firefighters' Pension Fund's investments are subject to the following risks: Concentration of credit risk is the risk of loss attributed to the magnitude of the Firefighters' Pension Fund's investment in a single issuer. The Firefighters' Pension Fund does not have a formal written policy with regards to concentration of credit risk for investments. At April 30, 2016, the Firefighters' Pension Fund had investments in equity mutual funds that were $7,526,695 in excess of 5% of fiduciary net position. Agency investments represent a large portion of the portfolio; however the investments are diversified by maturity date and are backed by the issuing organization. Although unlike Treasuries, agency securities do not have the "full faith and credit" backing of the U.S. government, they are considered to have a moral obligation of implicit backing and are supported by Treasury lines of credit and increasingly stringent federal regulation. The Illinois Compiled Statutes limit the Firefighters' Pension Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in anyone company should not exceed 5% of the total fiduciary net position. 29

48 NOTES TO BASIC FINANCIAL STATEMENTS Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Firefighters' Pension Fund helps limit its exposure to credit risk by primarily investing in securities issued by the United States government and/or its agencies that are implicitly guaranteed by the United States government and in corporate bonds rated at investment grade by one of the two largest rating services. The Firefighters' Pension Fund's investment policy establishes criteria for allowable investments; those criteria follow the requirements of the Illinois Pension Code. The investments in state and local obligations were all rated AA or better, U.S. government agencies were all rated AAA, and corporate bonds were rated BBB or better by Standard & Poor's or by Moody's Investors Services or were small issues that were unrated. The Firefighters' Pension Fund's investment policy also prescribes to the "prudent person" rule, which states, "Investments shall be made with judgement and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the primary objective of safety as well as the secondary objective of the attainment of market rates of return." Custodial credit risk - investments is the risk that, in the event of the failure of the counterparty, the Firefighters' Pension Fund will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Money market mutual funds and equity mutual funds are not subject to custodial credit risk. The Firefighters' Pension Fund's investment policy limits its exposure to custodial credit risk by utilizing an independent third party institution, selected by the Firefighters' Pension Fund, to act as custodian for its securities and collateral. Although the Firefighters' Pension Fund's investment policy does not require a third party custodian, the Firefighters' Pension Fund limits its exposure by requiring the investment broker/custodian to acquire an excess SIPC policy to provide the same coverage for the portfolio as would be provided by the SIPC. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with the Firefighters' Pension Fund's investment policy, the Firefighters' Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity while at the same time matching investment maturities to projected fund liabilities. 30

49 NOTES TO BASIC FINANCIAL STATEMENTS The Police Pension Fund's investments are subject to the following risks: Concentration of credit risk is the risk of loss attributed to the magnitude of the Police Pension Fund's investment in a single issuer. The Police Pension Fund's investment policy states that the Board of Trustees has consciously diversified the aggregate fund to ensure that adverse or unexpected results will not have an excessively detrimental impact on the entire portfolio. At April 30, 2016, the Police Pension Fund had investments in various equity mutual funds that were $1,341,366 in excess of 5% of fiduciary net position. Agency investments represent a large portion of the portfolio; however the investments are diversified by maturity date and are backed by the issuing organization. Although unlike Treasuries, agency securities do not have the "full faith and credit" backing of the U.S. government, they are considered to have a moral obligation of implicit backing and are supported by Treasury lines of credit and increasingly stringent federal regulation. The Illinois Compiled Statutes limit the Police Pension Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in anyone company should not exceed 5% of the total fiduciary net position. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Police Pension Fund helps limit its exposure to credit risk by primarily investing in securities issued by the United States government and/or its agencies that are implicitly guaranteed by the United States government. The Police Pension Fund's investment policy establishes criteria for allowable investments; those criteria follow the requirements ofthe Illinois Pension Code. The investments in the securities of U.S. government agencies were all rated AAA, and corporate bonds were all rated BBB or better by Standard & Poor's or by Moody's Investors Services. The Police Pension Fund's investment policy also prescribes to the "'prudent person" rule, which states, "Investments shall be made with judgment and care, under circumstances then prevailing, which person of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the primary objective of safety as well as the secondary objective of the attainment of market rates of return." Custodial credit risk - investments is the risk that, in the event of the failure of the counterparty, the Police Pension Fund will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Money market mutual funds and equity mutual funds are not subject to custodial credit risk. The Police Pension Fund's investment policy limits its exposure to custodial credit risk by utilizing an independent third party institution, selected by the Police Pension Fund, to act as custodian for its securities and collateral. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with the Police Pension Fund's investment policy, the Police Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity while at the same time matching investment maturities to projected fund liabilities. 31

50 NOTES TO BASIC FINANCIAL STATEMENTS B. Capital Assets Capital asset activity for the year ended April 30, 2016 was as follows: Beginning Decreases! Ending Balance Increases Transfers Balance Governmental activities: Capital assets, not being depreciated: Construction in progress $ 576,353 $ 345,897 $ (123,248) $ 799,002 Land 6,199,413 6,199,413 Rights of way 10,336,123 10,336,123 Total capital assets, not being depreciated 17,111, ,897 (123,248) 17,334,538 Capital assets, being depreciated: Bridges 3,372,914 3,372,914 Buildings and improvements 38,610,432 38,610,432 Land improvements 4,794,004 4,794,004 Machinery and equipment 10,918,910 92,712 11,011,622 Sidewalks 12,722,776 43,369 21,923 12,788,068 Street lights 3,884,254 84, ,325 4,070,561 Streets 22,709,582 22,709,582 Traffic signals 309, ,500 Total capital assets, being depreciated 97,322, , ,666,683 Less accumulated depreciation for: Bridges (1,071,357) (67,458) (1,138,815) Buildings and improvements (7,774,876) (771,933) (8,546,809) Land improvements (3,222,409) (178,534) (3,400,943) Machinery and equipment (9,891,902) (331,251) (10,223,153) Sidewalks (6,788,633) (259,018) (7,047,651) Street lights (3,273,504) (77,477) (3,350,981) Streets (10,017,301) (383,764) (10,401,065) Traffic signals (280,062) (3,680) (283,742) Total accumulated depreciation (42,320,044) (2, ) (44, ) Total capital assets, being depreciated, net 55,002,328 ( 1, ) 123,248 53,273,524 Governmental activities capital assets, net $ 72, s (1, ) $ $ 70,

51 NOTES TO BASIC FINANCIAL STATEMENTS Beginning Decreases/ Ending Balance Increases Transfers Balance Business-type activities: Capital assets, not being depreciated: Construction in progress $ 1,737,231 $ 88,831 $ (1,189,781) $ 636,281 Land 29,780 29,780 Total capital assets, not being depreciated 1,767,011 88,83 j (1.189,781) 666,061 Capital assets, being depreciated: Buildings and improvements 1,495,065 1,495,065 Machinery, furniture and equipment 6,296,616 97,013 6,393,629 Sanitary sewers 8,747,070 8,747,070 Storm sewers 29,730,366 29,730,366 Water distribution system 7, , ,768 8,621,743 Total capital assets, being depreciated , ,501 1,189,781 54,987,873 Less accumulated depreciation for: Buildings and improvements (1,292,941) (40,407) (1,333,348) Machinery, furniture and equipment (3,219,344) (184,882) (3,404,226) Sanitary sewers (4,677,059) (161,645) (4,838,704 ) Storm sewers (16,991,486) (560,228) (17,551,714) Water distribution system ( ) (143,543) (2,380,715) Total accumulated depreciation (28,4 18,002) ( 1,090,705) (29,508,707) Total capital assets, being depreciated, net 25,040,589 (751,204) 1.189,781 25,479,166 Business-type activities capital assets, net $ 26,807,600 $ (662,373) $ s 26,145,227 Depreciation expense was charged to functions/programs as follows: Governmental activities: General government $ 762,350 Public safety 318,095 Public works 980,538 Recreational services Total depreciation expense - governmental activities $ 2,073,115 Business-type activities: Waterworks and sewerage $ 1,090,705 33

52 NOTES TO BASIC FINANCIAL STATEMENTS C. Interfund Receivables, Payables and Transfers The composition of interfund balances at April 30, 2016 is as follows: Governmental funds: General Fund Tax Incremental Finance District II Fund Tax Incremental Finance District IV Fund Nonmajor governmental funds: Special revenue fund: Hotel/Motel Tax Fund Debt service funds: 2003A Community Center Utility Bonds Fund 2004B General Obligation Refunding Bonds Fund 2006A General Obligation Bonds Fund 201lB Alternate Revenue Bonds Fund Capital projects funds: Tax Incremental Finance District V Fund Tax Incremental Finance District VI Fund Total governmental funds Enterprise fund: Waterworks and Sewerage Fund Total all funds Advances between funds represent year. interfund loans that are not expected to be repaid in the following fiscal 34

53 NOTES TO BASIC FINANCIAL STATEMENTS Interfund transfers during the year ended April 30, 2016 were as follows: Transfer from Transfer to Amount General Fund General Fund General Fund Tax Incremental IV Fund Finance District Nonrnajor governmental fund: Debt service fund: 2003A Community Center Utility Bonds Fund $ 170,052 Nonmajor governmental fund: Debt service fund: 2004B General Obligation Refunding Bonds Fund 297,588 Nonmajor governmental fund: Debt service fund: 2008 General Obligation Bonds Fund 732,350 Nonmajor governmental fund: Debt service fund: Tax Incremental Finance District IV Debt Service Fund 284,325 Nonmajor governmental fund: Capital projects fund: Tax Incremental Finance District III Fund Total Nonmajor governmental fund: Debt service fund: 2003B Refunding Bonds Fund $ Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statue or budget requires to expend them in accordance with budgetary authorizations. 35

54 NOTES TO BASIC FINANCIAL STATEMENTS D. Long-term Liabilities Governmental Activities: General Obligation Bonds (Alternate Revenue Source), Series 2003A The Village issued general obligation bonds (utility tax alternate revenue source), Series 2003A on December 2, 2003 to provide for the acquisition of land and related infrastructure for the future site of the Village's Community Center. The bonds are due serially on December 1 through 2023, bearing interest at 3.60% to 4.70%. The Village has pledged future utility tax revenues in the General Fund fa]' the repayment of these bonds. Annual debt service requirements are as follows: Year Ending April 30. Principal Interest T tal 2017 $ 120,000 $ 50, ,000 45, ,000 39, ,000 34, ,000 28, ,000 21, ,000 15, ' ,755 Total $ 1.120,000 $ 241,636 $ 170, , , , , , , ,755 $ 1,361,636 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2004B The Village issued general obligation refunding bonds (alternate revenue source), Series 2004B on October 1, 2004 to provide for the refunding of the Series 1997C general obligation bonds. The bonds are due serially on December 1 through 2016, bearing interest at 3.75% to 4.00%, The Village has pledged future sales tax revenues in the General Fund for the repayment of these bonds. Annual debt service requirements are as follows: Year Ending April 30. Principal Interest Total 2017 $ 285,000 $ 11,400 $ 296,400 36

55 NOTES TO BASIC FINANCIAL STATEMENTS Tax Incremental Revenue Bonds (Alternate Revenue Source), Series 2004C The Village issued tax increment revenue bonds, Series 2004C on October 1, 2004 to provide financing for capital improvements within Redevelopment Project Area #4 (TIF #4). The bonds are due serially on December 1 through 2017, bearing interest at 3.75% to 5.50%. The Village has pledged future tax incremental finance property tax revenues from TIF #4 for the repayment of these bonds. Annual debt service requirements are as follows: Year Ending April 30. Principal Interest Total 2017 $ 250,000 $ 28,325 $ 278, Total $ $ $ General Obligation Refunding Bonds, Series 2006A The Village issued general obligation refunding bonds, Series 2006A on December 21, 2006 to provide for the partial refunding of the Series 2001 general obligation bonds. The bonds are due semiannually on June 1 and December 1st through 2020, bearing interest at 3.625% to 4.00%. The Village has pledged property tax revenues for the repayment of these bonds. Annual debt service requirements are as follows: Year Ending April 30. Principal Interest 2017 $ 210,000 $ 46, ,000 37, ,000 29, ,000 20, ,200 Total $ L $ Total $ 256, , , , ,200 $ 1.298,400 General Obligation Bonds (Utility Tax Alternate Revenue Source), Series 2008 The Village issued general obligation bonds (alternate revenue source), Series 2008 on April 7, 2008 to finance the construction of a community center within the Village. The bonds are due semiannually on June 1 and December 1 through 2027, bearing interest at 3.50% to 4.00%. The Village has pledged future utility tax revenues in the General Fund for the repayment of these bonds. Annual debt service requirements are as follows: 37

56 NOTES TO BASIC FINANCIAL STATEMENTS Year Ending April 30, Principal Interest Total 2017 $ 435,000 $ 292,000 $ 727, , , , , , , , , , , , , , , , , , , , , , , , , ,000 99, , ,000 67, , , ,600 Total $ 7,300,000 $ 2, $ 9.437,200 General Obligation Refunding Bonds (Sales Tax Alternate Revenue Source), Series 2011B The Village issued general obligation bonds (alternate revenue source), Series 2011B on September 7, 2011 to provide for the refunding of Series 2002B general obligation refunding bonds (alternate revenue source), Series 2003A general obligation bonds (alternate revenue source), Series 2003B general obligation refunding bonds (alternate revenue source), Series 2004A general obligation bonds (alternate revenue source), Series 2004B general obligation refunding bonds (alternate revenue source), Series 2008 general obligation bonds (alternate revenue source), and to pay for the costs of issuing the Series 2011 B bonds. The bonds are due serially on June 1 and December 1 through 2031, bearing interest at 3.875% to 4.25%. Annual debt service requirements are as follows: 38

57 NOTES TO BASIC FINANCIAL STATEMENTS Year Ending April 30, Principal Interest Total 2017 $ $ 94,313 $ 94, ,313 94, ,313 94, ,313 94, ,313 94, ,313 94, ,313 94, ,313 94, ,313 94, ,313 94, ,000 94, , ,000 78, , ,000 60, , ,000 41, , , ,250 Total $ $ 1,239,157 $ 3,534,157 Capital Appreciation Debt Certificates, Series 2010 The Village issued capital appreciation debt certificates, Series 2010 on April 26, 20 I 0 to provide financing for the remaining construction costs of the community center and various other capital projects. The certificates bear interest at 8.00% per annum and are due semiannually on June 1 and December 1, with the first payment due on December 1, 2017 and the final payment due on December 1,2029. The Village has pledged future sales, utility and income taxes for the repayment of these debt certificates. Annual debt service requirements are as follows: 39

58 NOTES TO BASIC FINANCIAL STATEMENTS Year Ending April 30, Original Principal Principal Interest Accretion Remaining Balance Principal Debt Service Requirements Interest Total $ 25,297,202 $ 2,090,987 2,234,696 2,417,239 2,614,491 2,827,868 3,058,502 1,894,017 $ 25,297,202 $ 27,388,189 29,622,885 32,040,124 34,654,615 37,482,483 40,540,985 42,435,002 40,460,000 38,330,000 36,025,000 33,540,000 30,855,000 27,955,000 24,820,000 21,435,000 17,780,000 13,835,000 9,575,000 4,970,000 1,975,002 2,130,000 2,305,000 2,485,000 2,685,000 2,900,000 3,135,000 3,385,000 3,655,000 3,945,000 4,260,000 4,605, ,000 $ 3,394,800 3,236,800 3,066,400 2,882,000 2,683,200 2,468,400 2,236,400 1,985,600 1,714,800 1,422,400 1,106, , ,600 $ 5,369,802 5,366,800 5,371,400 5,367,000 5,368,200 5,368,400 5,371,400 5,370,600 5,369,800 5,367,400 5,366,800 5,371, Total $ $ $ ,002 $ $ ,202 Limited Obligation Tax Increment Revenue Bond, Series 2015 On November 9, 2015, the Village entered into an agreement to issue a tax increment revenue bond not to exceed $9,550,000. The bond has an interest rate of 6.5% and is subject to mandatory sinking fund redemption from December 1,2022 through December 1,2035. The bond is to be paid solely from pledged revenues. The bond will be issued to provide financing for (i) the acquisition by the purchaser of approximately 66 acres of real property within and comprising a portion of the North Cicero TIF #7 Redevelopment Project Area and certain other property assembly and public improvement costs including water and sewer improvements; (ii) the initial accrued interest amount through June 1,2020; (iii) a Bond Reserve Account equal to the Bond Reserve Requirement; and (iv) the costs of issuance. As of April 30, 2016, $3,033,928 of this bond has been issued. 40

59 NOTES TO BASIC FINANCIAL STATEMENTS Business-type activities: General Obligation Bonds (Waterworks System Alternate Revenue Source), Series 2006 The Village issued general obligation bonds (alternate revenue source), Series 2006 on March 6, 2006 to provide financing of improvements to the waterworks system. The bonds are due semiannually on June 1 and December 1 through 2020, bearing interest at 3.625% to 4.00%. Annual debt service requirements are as follows: Year Ending April 30, Principal Interest 2017 $ 275,000 $ 58, ,000 48, ,000 37, ,000 25, , Total $ $ Total $ 333, , , , $ General Obligation Bonds (Waterworks System Alternate Revenue Source), Series 20llA The Village issued general obligation bonds (alternate revenue source), Series 2011A on September 7, 2011 to provide financing for the acquisition costs, construction and installation of a new water tower, water main improvements and extension and other improvements to the waterworks and sewerage system. The bonds are due serially on December 1 through 2026, bearing interest at 2.00% to 3.875%. Annual debt service requirements are as follows: Year Ending April 30, Principal Interest 2017 $ 150,000 $ 138, , , , , , , , , , , , , ,000 85, ,000 66, ,000 46, ,250 Total $ $ 1, Total $ 288, , , , , , , , , , ,250 $ 5,217,126 41

60 NOTES TO BASIC FINANCIAL STATEMENTS Total future debt service requirements for the outstanding debt as listed above are as follows: Year Ending Governmental Activities Business-tvpe Activities April 30. Principal Interest Principal Interest Total 2017 $ 1,300,000 $ 522,341 $ 425,000 $ 196,403 $ 2,443, ,035,002 3,861, , ,091 7,519, ,965,000 3,656, , ,580 7,244, ,180,000 3,452, , ,980 7,255, ,395,000 3,232, , ,980 7,253, ,365,000 2,996, , ,236 6,989, ,610,000 2,753, , ,299 6,990, ,875,000 2,492, ,000 85,893 6,997, ,155,000 2,210, ,000 66,273 6,991, ,455,000 1,908, ,000 46,113 7,000, ,195,000 1,584, ,000 23,250 7,402, ,565,000 1,219,438 6,784, ,065, ,988 5,891, ,445, ,038 5,884, ,000 21, ,250 Undetermined 3,033, ,126,858 Total $ $ 31, $ 5, $ 1,279,098 $ Long-term liability activity for the year ended April 30, 2016 was as follows: Beginning Reductionsl Ending Due Within Balance Additions Adjustments Balance One Year Governmental activities: General obligation bonds $ 1,360,000 $ $ (205,000) $ 1,155,000 $ 210,000 Alternate revenue bonds 13,165,000 (1,650,000) 11,515,000 1,090,000 Limited obligation bonds 3,033,928 3,033,928 Debt certificates 37,482,483 3,058,502 40,540,985 Issuance premium 111,354 (10,500) 100,854 Issuance discount (307,916) 20,904 (287,012) Compensated absences payable 717, ,673 (617,837) 744, ,754 Net pension liabilities: Firefighters' Pension Fund 32,499,345 2,980,613 4,303,155 39,783,113 Police Pension Fund 32,284,387 2,989,269 4,955,145 40,228,801 Illinois Municipal Retirement Fund 1,260, , ,393 2,071,766 Other postemployment benefits obligation ( ) Governmental activity long-term liabilities $ $ $ $ 139.1~89.65J $

61 NOTES TO BASIC FINANCIAL STATEMENTS Beginning Reductions/ Ending Due Within Balance Additions Adjustments Balance One Year Business-type activities: Alternate revenue bonds $ 6,025,000 $ $ (415,000) $ 5,610,000 $ 425,000 Issuance discount (16,306) 1,416 (14,890) Compensated absences payable 70,569 78,059 (84,640) 63,988 54,390 Net pension liability: Illinois Municipal Retirement Fund 649, , ,588 L143,643 Business-type activity long-term liabilities $ 6,729,090 $ 326,287 s ( ),$ 6.~02.74J $ 479,390 The General Fund and the debt service funds have been used to liquidate the governmental activities' liabilities in prior years. Legal Debt Margin The legal debt margin of the Village as of April 30, 2016 is calculated as follows: Assessed valuation tax year (most recent information available) $ :379,009,063 Statutory debt limit (8.625% of assessed valuation) $ 32,689,532 Debt: Village of Matteson, Illinois: General obligation bonds and debt certificates (original principal only) 26,452,202 Legal debt margin $

62 NOTES TO BASIC FINANCIAL STATEMENTS E. Fund Balances As of April 30, 2016, fund balances were comprised of the following: Lincoln Highway! Cicero Tax Tax Avenue Incremental Incremental Total Business Finance Finance Nonmajor Total General District District II District IV Governmental Governmental Fund Fund pund Fund Funds Funds Nonspendable: Inventories $ 14,248 $ $ $ $ $ 14,248 Prepaid items 233, ,531 Total nonspendable ,779 Restri cted: Capital projects 5,174,561 2,454,957 7,629,518 Community development 5,403,926 4,817,700 10,221,626 Debt service 5,481,764 5,481,764 Public safety 162, ,641 Public works 1,055,270 1,055,270 Special recreation programs 187, Total restricted 5,403,926 5,174,561 14, , Assigned: Community development 83,399 83,399 Debt service 15,079 15,079 Publ ic works 109, ,504 Public safety Total assigned 208, ,550 Unassigned (8,778,403 ) (2,568,029) (55.979) ( I 1.402,411) Total ( ) s 5, $ 5,174,561 $ (2.568,0291 $ ,835 $ 13,793,163 F. Deficit Fund Balances The following funds had a deficit fund balance as of April 30, 2016: General Fund $ (8,530,383) Tax Incremental Finance District IV Fund (2,568,029) Nonmajor governmental fund: Capital projects fund: Tax Incremental Finance District V Fund (55,979) 44

63 NOTES TO BASIC FINANCIAL STATEMENTS G. Deficit in General Fund (Unaudited) The Village recognizes the urgency and the necessity of restoring the General Fund balance to a surplus level. This deficit reduction will be fueled by increased governmental revenue generated from new sources and enhanced collection efforts of well-established sources. In many respects the regional economy is still recovering from the 2008 recession, however, we have seen revenue increases in sales taxes, police traffic enforcement, and building permit and related fees. Business District Enhancement - The Village is actively engaged in the redevelopment of the area encompassing Lincoln Mall. The Village has an exclusive six month agreement with a developer to create a plan for future use which will aid the business environment by increasing the retail and residential footprint. The Village will receive the completed recommendation by April 10, 2017 and upon review, decide on the optimal manner in which to proceed. Public Safety Expense - The addition of Red Light Cameras has increased General Fund revenue while providing law enforcement with an additional policing tool. All cameras are fully operational and revenue is projected to surpass budgeted expectations. This revenue will aid the Village in maintaining EMT, Public Works Equipment, and personnel providing required services to the residents. Residential Development - The Brookmere subdivision project has exceeded projected construction expectations. The success of this development has spawned interest in other undeveloped land in the Village. Future Debt Repayments - The Village is actively engaged in the resolution of the repayment of outstanding debt. The Village is in communication with current bondholders to work toward reducing the debt burden on the Village to more manageable levels. The General Fund deficit remains a priority of the Village. We believe that, over time, once these revenue and economic sources have been established for a period of time, the General Fund will be well positioned to return to a surplus. H. Change in Accounting Principle During the year ended April 30, 2016, the Village implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. The implementation of GASB 68 resulted in the restatement of beginning net position in the governmentwide and enterprise fund financial statements. Under GASB 68, the liability of employers to employees for defined benefit pensions (net pension liability) is required to be measured as the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service (total pension liability), less the amount of the pension plan's fiduciary net position. Prior to the issuance of GASB 68, employers reported a pension liability equal to the cumulative difference between the actuarial required contribution, as adjusted, and the actual employer contributions made. 45

64 NOTES TO BASIC FINANCIAL STATEMENTS The restatement of beginning net position is summarized as follows: Government-wide Governmental Business-type Activities Activities * Total Net position at April 30, 2015, as previously reported $ $ $ 57, Change in reporting of: Prior net pension benefit obligation: Police Pension Fund 3,583,721 3,583,721 Firefighters' Pension Fund 2,315,918 2,315,918 Net pension liability: Police Pension Fund (32,284,387) (32,284,387) Firefighters' Pension Fund (32,499,345) (32,499,345) Illinois Municipal Retirement Fund (1,260,696) (649,827) (1,910,523 ) Deferred outflows of resources related to pensions: Illinois Municipal Retirement Fund Total (60,039,130) (595,365) ( ) Net position (deficit) at April 30, 2015, as restated '$ (33, ) $ ,952 s (3,089,871) * The restatement of beginning net position of the enterprise fund is the same as the restatement of the business-type activities above. I. Letter of Credit During the year ended April 30, 2016, the Village demanded an amount of $790,078 pursuant to an Irrevocable Letter of Credit related to a subdivision within the Village. The Village is using the proceeds to make certain subdivision improvements that were not made by the developer. Improvements of $152,226 have been made by the Village as of April 30, The remaining balance of $637,852 is reflected as a liability at April 30, III. OTHER INFORMATION A. Employee Retirement and Postemployment Benefit Plans The Village maintains single-employer, defined benefit pension plans (Firefighters' and Police Pension Funds) that cover its qualified Fire and Police Department employees and participates in the statewide Illinois Municipal Retirement Fund, an agent multiple-employer defined benefit public employee pension plan which covers substantially all of the remaining qualified Village employees. The Village also administers the Postemployment Healthcare Plan that provides limited health care insurance coverage for eligible retired employees. The information presented in the following notes for these plans is the most current information available as of April 30,

65 NOTES TO BASIC FINANCIAL STATEMENTS 1. Firefighters' Pension Fund Plan Administration. The Firefighters' Pension Plan is a single-employer defined benefit pension plan that covers all sworn firefighter personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The Village accounts for the Firefighters' Pension Fund ("FPF") as a pension trust fund. The FPF is governed by a five-member Board of Trustees. Two members of the Board are appointed by the Village's Mayor, one member is elected by the pension beneficiaries and two members are elected by active fire employees. The Firefighters' Pension Fund issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained at the Fund's administrative office, located at 3445 West 21lth Street, Matteson, Illinois, Plan Membership. At April 30, 2016, the measurement date, membership consisted of the following: Inactive plan members currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members 31 I 28 Total 60 Benefits Provided. The following is a summary of the Firefighters' Pension Plan as provided for in Illinois State Statutes. The Firefighters' Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1,2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of 112 of 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 annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually thereafter. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Firefighter'S salary for pension purposes is capped at $106,800, plus the lesser of 112 of the annual change in the Consumer Price Index or 3 percent compounded. The annual 47

66 NOTES TO BASIC FINANCIAL STATEMENTS benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years of service may retire at or after age 50 and receive a reduced benefit (i.e., 112 percent for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January l st after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 percent or 112 of the change in the Consumer Price Index for the preceding calendar year. Contributions. Covered employees are required to contribute percent of their base salary to the Firefighters' Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually calculated using a projected unit credit actuarial cost method that will result in the funding of 90 percent of the past service cost by the year For the year ended April 30, 2016, the Village's contribution was percent of covered payroll. Investment Policy. Statutes authorize the FPF to make deposits/invest in interest bearing direct obligations of the United States of America; obligations that are fully guaranteed or insured as to the payment of principal and interest by the United States of America; bonds, notes, debentures, or similar obligations of agencies of the United States of America; savings accounts or certificates of deposit issued by banks or savings and loan associations chartered by the United States of America or by the State of Illinois, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; credit unions, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; State of lllinois bonds; pooled accounts managed by the Illinois Funds Market Fund (formerly known as IPTIP, Illinois Public Treasurer's Investment Pool), or by banks, their subsidiaries or holding companies, in accordance with the laws of the State of Illinois; bonds or tax anticipation warrants of any county, township, or municipal corporation of the State of Illinois; direct obligations of the State ofisrael; money market mutual funds managed by investment companies that are registered under the Federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended management investment companies, provided the portfolio is limited to specified restrictions; general accounts of life insurance companies; and separate accounts of life insurance companies and mutual funds, the mutual funds must meet specific restrictions, provided the investment in separate accounts and mutual funds does not exceed 10 percent of the FPF's plan net position; and corporate bonds managed through an investment advisor, rated as investment grade by one of the two largest rating services at the time of purchase. Pension funds with plan net position of $2.5 million or more may invest up to 45 percent of plan net position in separate accounts of life insurance companies and mutual funds. Pension funds with plan net position of at least $5 million that have appointed an investment advisor, may through that investment advisor invest up to 45 percent of the plan net position in common and preferred stocks that meet specific restrictions. In addition, pension funds with plan net position of at least $10 million that have appointed an investment advisor, may invest up to 55 percent of its net position in common and preferred stocks and mutual funds that meet specific restrictions effective July 1, No changes were made to the investment policy during the current fiscal year. 48

67 NOTES TO BASIC FINANCIAL STATEMENTS Net Pension Liability. The Village's net pension liability was measured as of April 30, The total pension Iiability used to calculate the net pension liability was determined by an actuarial valuation as of that date using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial cost method - Entry-age normal; level % of pay Asset valuation method - Market value Actuarial assumptions: Interest rate % Discount rate % Salary increases % % Cost of living adjustments % Inflation % Mortality rates are based on rates developed in the Lauterbach & Amen, LLP 2016 Mortality Table for liiinois Firefighters. The long-term expected rate of return on the FPF's investments was determined using an asset allocation study by the Global Investment Committee of Morgan Stanley and was published in March The best estimate ranges of expected real rates of return (nominal rates; less the inflation rate of 2.3%) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage. Best estimates or geometric real rates of return excluding inflation for each major asset class included in the FPF's target asset allocation as of April 30, 2016 are listed in the following table: Asset Class Target Allocation Long-term Expected Real Rate of Return Fixed income U.S. large cap equities U.S. mid cap equities U.S. small cap equities Developed international equities Emerging international equities Real estate equities Cash and equivalents 38 % % Total 100 % 49

68 NOTES TO BASIC FINANCIAL STATEMENTS Discount Rate. A single discount rate of 4.27 percent was used to measure the total pension liability. The projection of cash flows used to determine this single discount rate assumed that the plan members' contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The single discount rate reflects: 1. The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and 2. The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of the most recent valuation, the expected rate of return on plan investments is 6.75 percent, the municipal bond rate is 3.32 percent, and the resulting single discount rate is 4.27 percent. Changes in the Net Pension Liability. Changes in the Village's net pension liability for the year ended April 30, 2016 were as follows: Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (a) - (b) Balances at April 30, 2015 Changes for the year: Service cost Interest Differences between expected and actual experience Changes in assumptions Net investment income (loss) Contributions - employees Contributions - employer Benefit payments, including refunds of employee contributions Administrative expense Net changes Balances at April 30,2016 $ $ 19, ,308,942 2,197, ,291 4,237,274 (391,906) 258,756 1,085,233 (1,710,576) (1,710,576) (56.024) (814,517) $ 58,784,030 $ ,917 $ ,308,942 2,197, ,291 4,237, ,906 (258,756) (1,085,233) ,283,768 $ 39,783,113 50

69 NOTES TO BASIC FINANCIAL STATEMENTS The change in assumptions amount of $4,237,274 was the result of changes in demographic assumptions based on a study of firefighters and fire pension funds in Illinois and a reduction in the tax-exempt municipal bond rate. Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the Village, calculated using the discount rate of 4.27 percent, as well as what the Village's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (3.27 percent) or one percentage point higher (5.27 percent) than the current rate: Current 1% Decrease Discount Rate I% Increase (3.27%) (4.27%) (5.27%) Village's net pension liability $ $ $ 31, Plan Fiduciary Net Position. Detailed information about the Plan's fiduciary net position is available in other locations in this report as the Plan is reported as a fiduciary fund of the Village as well as in a separately issued financial report of the Plan. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. For the year ended April 30, 2016, the Village recognized pension expense of $2,980,613. At April 30, 2016, the V illage reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Deferred amounts to be recognized in pension expense in future periods: Differences between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on Plan investments $ 374, ,314 l.372,148 $ Total $ 5.188,389 $ 51

70 NOTES TO BASIC FINANCIAL STATEMENTS Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense in years ending April 30 as follows: 2. Police Pension Fund 2017 $ 1,000, ,000, ,000, ,000, ,324 Thereafter 729,621 Total $ 5,388,389 Plan Administration. The Police Pension Plan is a single-employer defined benefit pension plan that covers all sworn police personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The Village accounts for the Police Pension Fund ("PPF") as a pension trust fund. The PPF is governed by a five-member Board of Trustees. Two members of the Board are appointed by the Village's Mayor, one member is elected by the pension beneficiaries and two members are elected by active police employees. The Police Pension Fund issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained at the Fund's administrative office, located at 3445 West 21lth Street, Matteson, Illinois, Plan Membership. At April 30, 2016, the measurement date, the Police Pension Plan membership consisted of the following: Inactive plan members currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members Total 65 Benefits Provided. The following is a summary of the Police Pension Plan as provided for in Illinois State Statutes. 52

71 NOTES TO BASIC FINANCIAL STATEMENTS The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of 1/2 of 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 annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually thereafter. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Police officer salary for the pension purposes is capped at $106,800, plus the lesser of 112 of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., 112 percent for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1st after the police officer retires, or the first anniversary of the pension starting date, whichever is later. Non-compounding increases occur annually, each January thereafter. The increase is the lesser of 3 percent or 112 of the change in the Consumer Price Index for the preceding calendar year. Contributions. Covered employees are required to contribute 9.91 percent of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90 percent of the past service cost by the year For the year ended April 30,2016, the Village's contribution was percent of covered payroll. 53

72 NOTES TO BASIC FINANCIAL STATEMENTS Investment Policy. Statutes authorize the PPF to make deposits/invest in interest bearing direct obligations of the United States of America; obligations that are fully guaranteed or insured as to the payment of principal and interest by the United States of America; bonds, notes, debentures, or similar obligations of agencies of the United States of America; savings accounts or certificates of deposit issued by banks or savings and loan associations chartered by the United States of America or by the State of Illinois, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; credit unions, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; State of Illinois bonds; pooled accounts managed by the Illinois Funds Market Fund (formerly known as IPTIP, lllinois Public Treasurer's Investment Pool), or by banks, their subsidiaries or holding companies, in accordance with the laws of the State of Illinois; bonds or tax anticipation warrants of any county, township, or municipal corporation of the State of Illinois; direct obligations of the State of Israel; money market mutual funds managed by investment companies that are registered under the Federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended management investment companies, provided the portfolio is limited to specified restrictions; general accounts of life insurance companies; and separate accounts of life insurance companies and mutual funds, the mutual funds must meet specific restrictions, provided the investment in separate accounts and mutual funds does not exceed 10 percent of the Pension Fund's plan net position; and corporate bonds managed through an investment advisor, rated as investment grade by one of the two largest rating services at the time of purchase. Pension Funds with plan net position of $2.5 million or more may invest up to 45 percent of plan net position in separate accounts of life insurance companies and mutual funds. Pension Funds with plan net position of at least $5 million that have appointed an investment advisor, may through that investment advisor invest up to 45 percent of the plan net position in common and preferred stocks that meet specific restrictions. In addition, pension funds with plan net position of at least $10 million that have appointed an investment advisor, may invest up to 55 percent of its net position in common and preferred stocks and mutual funds that meet specific restrictions effective July 1,2012. Net Pension Liability. The Village's net pension liability was measured as of April 30, The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial cost method - Entry-age normal; level % of pay Asset valuation method - Market value Actuarial assumptions: Interest rate % Discount rate % Salary increases % % Cost of living adjustments % Inflation % Mortality rates are based on rates developed in the Lauterbach & Amen, LLP 2016 Mortality Table for Illinois Police Officers. 54

73 NOTES TO BASIC FINANCIAL STATEMENTS The long-term expected rate of return on the PPF's investments was determined using an asset allocation study conducted by JPMorgan Chase as of November 2014, in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the Fund's target asset allocation as of April 30,2016 are listed in the following table: Asset Class Fixed income Domestic equities International equities Real estate equities Cash Target Allocation % Long-term Expected Real Rate of Return 1.82% % Total % Discount Rate. A single discount rate of 4.54 percent was used to measure the total pension liability. The projection of cash flows used to determine this single discount rate assumed that the plan members' contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The single discount rate reflects: 1. The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and 2. The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of the most recent valuation, the expected rate of return on plan investments is 6.75 percent, the municipal bond rate is 3.32 percent, and the resulting single discount rate is 4.54 percent. 55

74 NOTES TO BASIC FINANCIAL STATEMENTS Changes in the Net Pension Liability. Changes in the Village's net pension liability for the year ended April 30, 2016 were as follows: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances at April 30, 2015 $ 54, $ 22,070,695 $ 32,284,387 Changes for the year: Service cost 1,013,429 1,013,429 Interest 2,427,716 2,427,716 Differences between expected and actual experience (310,538) (310,538) Changes in assumptions 5,916,951 5,916,951 Net investment income (loss) (320,969) 320,969 Contributions - employees 303,962 (303,962) Contributions - employer 1,170,136 (1,170,136) Benefit payments, including refunds of employee contributions (1,762,338) (1,762,338) Administrative expense (49.985) 49,985 Net changes 7,285,220 (659,194). 7, Balances at April 30, 2016 $ 61,640,302 $ 21,411,501 $ 40,228,801 The change in assumptions amount of $5,916,951 was the result of changes in demographic assumptions based on a study of police officers and police pension funds in Illinois and a reduction in the tax-exempt municipal bond rate. Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the Village calculated using the discount rate of 4.54 percent as well as what the Village's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (3.54 percent) or one percentage point higher (5.54 percent) than the current rate: 1% Decrease (3.54%) Current Discount Rate (4.54%) 1% Increase (5.54%) Village's net pension liability $ 51,182,072 $ $ 31,535,555 Plan Fiduciary Net Position. Detailed information about the Plan's fiduciary net position is available in other locations in this report as the Plan is reported as a fiduciary fund of the Village as well as in a separately issued financial report of the Plan. 56

75 NOTES TO BASIC FINANCIAL STATEMENTS Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. For the year ended April 30, 2016, the Village recognized pension expense of $2,989,269. At April 30, 2016, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Deferred amounts to be recognized in pension expense in future periods: Differences between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on Plan investments $ $ 259,546 4,945,366 1, Total $ 6,384,826 $ 259,546 Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense in years ending April 30 as follows: 3. Illinois Municipal Retirement Fund 2016 $ 1,280, ,280, ,280, ,280, ,593 Thereafter 82,855 Total $ 6.125,280 Plan Description. The Village's defined benefit pension plan for employees that are not in positions covered by the Firefighters' Pension Plan or the Police Pension Plan provides retirement and disability benefits, post retirement increases, and death benefits to plan members and beneficiaries. The Village's plan is managed by the Illinois Municipal Retirement Fund (IMRF), the administrator of a multipleemployer public pension fund. A summary of IMRF's pension benefits is provided in the "Benefits Provided" section of this document. Details of all benefits are available from IMRF. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available Comprehensive Annual Financial Report that includes financial statements, detailed information about the pension plan's fiduciary net position, and required supplementary information. The report is available for download at 57

76 NOTES TO BASIC FINANCIAL STATEMENTS Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan. The Sheriffs Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date). Employees of the Village who are eligible to participate in the plan participate in the Regular Plan. All three IMRF benefit plans have two tiers. Employees hired before January 1,2011, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3 percent of the final rate of earnings for the first 15 years of service credit, plus 2 percent for each year of service credit after 15 years to a maximum of 75 percent of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3 percent of the original amount on January 1 every year after retirement. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after 10 years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3 percent of the final rate of earnings for the first 15 years of service credit, plus 2 percent for each year of service credit after 15 years to a maximum of 75 percent of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: 3 percent of the original pension amount, or One-half of the increase in the Consumer Price Index of the original pension amount. Employees Covered by Benefit Terms. As of December 31,2015, the following employees were covered by the benefit terms: Retirees and beneficiaries currently receiving benefits Inactive plan members entitled to but not yet receiving benefits Active plan members '101 Total 269 (The numbers include employees of Matteson Library and SouthCom Dispatch, which are included with the Village by IMRF, but are not presented here as component units.) 58

77 NOTES TO BASIC FINANCIAL STATEMENTS Contributions. As set by statute, the Village's Regular Plan members are required to contribute 4.5 percent of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Village's annual contribution rate for calendar year 2015 was percent. For the fiscal year ended April 30, 2016, the Village contributed $483,535 to the plan. The Village also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF's Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability. The Village's net pension liability was measured as of December 31,2015. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial Assumptions. The following are the methods and assumptions used to determine the total pension liability at December 31,2015: The Actuarial Cost Method used was Entry Age Normal. The Asset Valuation Method used was Market Value of Assets. The Inflation Rate was assumed to be 3.50%. Salary Increases were expected to be 3.75% to 14.50%, including inflation. The Investment Rate of Return was assumed to be 7.50%. Projected Retirement Age was from the Experience-based Table of Rates, specific to the type of eligibility condition, last updated for the 2014 valuation according to an experience study from years 2011 to The IMRF-specific rates for Mortality (for non-disabled retirees) were developed from the RP Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For Disabled Retirees, an IMRF-specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF-specific rates were developed from the RP-2014 Disabled Retirees Mortality Table, applying the same adjustments that were applied for non-disabled lives. For Active Members, an IMRF-specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF-specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: 59

78 NOTES TO BASIC FINANCIAL STATEMENTS Asset Class Domestic equity Fixed income International equity Alternative investments Real estate Cash equivalents Portfolio Target Percentage 38 % Long-term Expected Real Rate of Return 7.39 % l Total 100 % Single Discount Rate. A single discount rate of 7.47 percent was used to measure the total pension liability. The projection of cash flow used to determine this single discount rate assumed that the plan members' contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The single discount rate reflects: 1. The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and 2. The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of the most recent valuation, the expected rate of return on plan investments is 7.50 percent, the municipal bond rate is 3.57 percent, and the resulting single discount rate is 7.47 percent. 60

79 NOTES TO BASIC FINANCIAL STATEMENTS Changes in the Net Pension Liability. Changes in the net pension liability for the year ended December 31,2015 were as follows: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances at December 31, 2014 $ ,625 $ ,102 $ 1,910,523 Changes for the year: Service cost 354, ,075 Interest on the total pension liability 1,322,492 1,322,492 Differences between expected and actual experience of the total pension liability 288, ,162 Changes in assumptions 47,398 47,398 Contributions - employer 483,592 (483,592) Contributions - employees 152,893 (152,893) Net investment income 79,696 (79,696) Benefit payments, including refunds of employee contributions (721,116) (721,116) Change in proportionate share (497,047) (445,260) (51,787) Other changes (60,727) 60,727 Net changes 793,964 (510,922) Balances at December 3 1,2015 $ 19, $ 15,916,180 $ 3,215,409 Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the Village calculated using a single discount rate of 7.47 percent, as well as what the net pension liability would be if it were calculated using a single discount rate that is one percentage point lower (6.4 7 percent) lower or one percentage point higher (8.4 7 percent) than the current rate: 1% Lower (6.47%) Current Discount Rate (7.47%) 1% Higher (8.47%) Net pension liability $ $ 3, =$ =,;";1,=10=2=,0==64,;,,, Plan Fiduciary Net Position. Detailed information about the Plan's fiduciary net position is available in the separately issued IMRF Comprehensive Annual Financial Report. 61

80 NOTES TO BASIC FINANCIAL STATEMENTS Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions. For the year ended April 30, 2016, the Village recognized pension expense of $697,905. At April 30, 2016, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred amounts to be recognized in pension expense in future periods: Differences between expected and actual experience $ 216,048 $ Changes in assumptions 35,536 Net difference between projected and actual earnings on Plan investments 890,776 Change in proportionate share 8,447 Total deferred amounts to be recognized in pension expense in future periods 1,150,807 Deferred Inflows of Resources 47,294 47,294 Employer contributions made subsequent to the measurement date Total deferred amounts related to pensions $ 1,304,676 $ $153,869 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the reporting year ended April 30, Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense in years ended April 30 as follows: $ 293, , , ,694 Total $ , Summary of Pension Information For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Firefighters' Pension Plan (FPP), Police Pension Plan (PPP), and the Illinois Municipal Retirement Fund (IMRF) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 62

81 NOTES TO BASIC FINANCIAL STATEMENTS Pension-related deferred outflows of resources, liabilities, deferred inflows of resources, and pension expense/expenditures are summarized as follows: FPP ppp IMRF Total Deferred outflows of resources Net pension liability Deferred inflows of resources Pension expense Pension expenditures $ 5,388,389 $ 39,783,113 2,980,613 6,384,826 $ 40,228, ,546 2,989,269 1,304,676 $ 3,215,409 47, , ,535 13,077,891 83,227, ,840 6,667, , Postemployment Healtltcare Plan Plan Description. The Postemployment Healthcare Plan (PHP) is a single-employer defined benefit health care plan administered by the Village. The Village provides limited health care insurance coverage for its eligible retired employees. The Village does not issue a stand alone report for PHP. Funding Policy. The contribution requirements are established by the Village, using an actuarial study that is based on projected pay-as-you-go financing. Eligible disabled pensioners receive coverage under the Village's health plan with an employer contribution rate of 100 percent of the premiums for the coverage elected by the retiree. There is also an implicit subsidy of 20 percent related to all Village retirees. For fiscal year 2016, the Village contributed $261,365 to the plan. Plan members receiving benefits contributed $0. Annual OPEB Cost and Net OPEB Obligation. The Village's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the Village's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Village's net OPEB obligation to PHP: Annual required contribution Interest on net OPEB obligation Adj ustment to annual required contribution Annual OPEB cost (expense) Contributions made Change in net OPEB obligation Net OPEB obligation at beginning of year $ 410,809 18,014 (15,011) 413, , Net OPEB obligation at end of year $

82 NOTES TO BASIC FINANCIAL STATEMENTS The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the three most recent years were as follows: Fiscal Annual Percentage of Net Year OPEB AnnualAOC OPEB Ended Cost (AOC) Contri buted Obligation 4/30/16 $ 413, % $ 602,799 4/30/15 334, ,352 4/30/14 328, ,097 Funded Status and Funding Progress. As of May 1,2015, the most recent actuarial valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $8,681,604, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $8,681,604. The covered payroll (annual payroll of active employees covered by the plan) was and the ratio of the UAAL to covered payroll was unavailable. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and included in the types of benefits provided at the time of each valuation and historical pattern of sharing benefits costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the May 1, 2015 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions included a 4.00 percent investment rate of return (net of administrative expenses), an inflation rate of 3.00 percent, and an annual healthcare cost trend rate of 7.90 percent initially, reduced by decrements to an ultimate rate of 5.50 percent. The UAAL is being amortized as a level percentage of projected pay on an open basis. The remaining amortization period at May 1,2015 was 30 years. The schedule of funding progress, presented as required supplementary information following the notes to basic financial statements, presents trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. 64

83 NOTES TO BASIC FINANCIAL STATEMENTS B. Risk Management The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction to assets: errors and omissions; injuries to employees; natural disasters; and employee health insurance coverage. On January I, 2011, the Village joined together with other municipalities in the state of Illinois to participate in the Illinois Counties Risk Management Trust (ICRMT), a public entity risk pool currently operating as a common risk management and insurance program for over 200 members. The Village pays premiums to ICRMT for property and casualty and worker's compensation coverage. The formation agreement for ICRMT provides that ICRMT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of $500,000 under property and casualty and $1,000,000 under worker's compensation for each insured event. The Village carries commercial insurance for its employee health insurance coverage. The Village did not exceed its insurance coverage under any plan during the years ended April 30, 2016, 2015 or C. Subsequent Events Management has evaluated subsequent events through February 9, 2017, which is the date the financial statements were available to be issued. Subsequent to year end, the Village settled a legal claim with the owner of Tax Incremental Revenue Developer Note (TIF 4) Series , Note No. R-5 for $2,250,000. This amount has been recorded as a liability as of April 30, Subsequent to the year end, the Village purchased land and a building at the address of 600 Lincoln Mall Drive, Matteson, Illinois for the amount of $526,285. The actual amount paid, net of delinquent property taxes, was $237,

84 REQUIRED SUPPLEMENTARY INFORMATION

85 EMPLOYER'S RETIREMENT AND POSTEMPLOYMENT BENEFIT PLAN INFORMATION

86 REQUIRED SUPPLEMENTARY INFORMATION - FIREFIGHTERS' PENSION FUND LAST TEN FISCAL YEARS (SCHEDULES TO BE BUILT PROSPECTIVELY) SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY 2016* 2015* Total pension liability: Service cost $ 1,308,942 $ 1,405,958 Interest 2,197,320 2,190,951 Differences between expected and actual experience 436,291 Changes in assumptions 4,237,274 Benefit payments, including refunds of member contributions (1, ) (1,478,538) Net change in total pension liability 6,469,251 2,118,371 Total pension liability at beginning of year 52,314,779 50,196,408 Total pension liability at end of year s 58,784,030 $ Plan fiduciary net position: Contributions - employer $ 1,085,233 $ 937,006 Contributions - employees 258, ,973 Net investment income (loss) (391,906) 1,008,757 Benefit payments, including refunds of member contributions (1,710,576) (1,478,538) Administrative expense (56.024) (71,130) Net change in plan fiduciary net position (814,517) 668,068 Plan fiduciary net position at beginning of year 19,815, ,366 Plan fiduciary net position at end of year 19,000,917 $ 19,815,434 Village's net pension liability at end of year $ 39,783,113 $ 32,499,345 Plan fiduciary net position as a percentage of total pension liability % % Covered-employee payroll $ 2,510,547 $ 2,695,252 Village's net pension liability as a percentage of covered-employee payroll 1, % % * Information for April 30, 2016 and 2015 is the only information that is currently available. Note to Schedule: In 2016, the change in assumptions was the result of changes in demographic assumptions based on a study of firefighters and fire pension funds in Illinois and a reduction in the tax-exempt municipal bond rate. 66

87 REQUIRED SUPPLEMENTARY INFORMATION - FIREFIGHTERS' PENSION FUND LAST TEN FISCAL YEARS (SCHEDULES TO BE BUILT PROSPECTIVELY) SCHEDULE OF VILLAGE CONTRIBUTIONS 2016* 2015* Actuarially determined contribution $ 1,633,302 $ 1,363,790 Contributions in relation to the actuarially determined contribution Contribution deficiency $ $ Covered-employee payroll $ $ Contributions as a percentage of covered-employee payroll % % * Information for April 30, 2016 and 2015 is the only information that is currently available. Notes to schedule: Valuation Date. Actuarially determined contribution rates are calculated as April 30. Methods and Assumptions used to Determine Contribution Rates. Actuarial cost method Entry age normal (level % pay) Amortization method Level dollar (closed) Remaining amortization period 90% of the April 30, 2012 unfunded liability is amortized through Each subsequent year's unfunded liability is amortized over the remaining years. Asset valuation method 5-year smoothed market value Inflation 3.00% Salary increases 4.50% %; 4.50% % for Fiscal Year 2015 Investment rate of return 6.75% Retirement age See the Notes to the Financial Statements Mortality Mortality rates are based on rates developed in the Lauterbach & Amen, LLP 2016 Mortality Table for Illinois Firefighters 67

88 REQUIRED SUPPLEMENTARY INFORMATION - FIREFIGHTERS' PENSION FUND LAST TEN FISCAL YEARS (SCHEDULES TO BE BUILT PROSPECTIVELY) SCHEDULE OF INVESTMENT RETURNS 2016* 2015* Annual money-weighted rate of return, net of investment expense (1.73)% 4.54 % * Information for April 30, 2016 and 2015 is the only information that is currently available. 68

89 REQUIRED SUPPLEMENTARY INFORMATION - POLICE PENSION FUND LAST TEN FISCAL YEARS (SCHEDULES TO BE BUILT PROSPECTIVELY) SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY Total pension liability: Service cost $ 1,013,429 $ 998,812 Interest 2,427,716 2,439,154 Differences between expected and actual experience (310,538) Changes in assumptions 5,916,951 Benefit payments, including refunds of member contributions (1,762,338) (1,739,168) Net change in total pension liability 7,285,710 1,698,798 Total pension liability at beginning of year 54,355,082 52,656,284 Total pension liability at end of year $ 61,6'-10,302 $ 54,355,082 Plan fiduciary net position: Contributions - employer $ 1,170,136 $ 1,005,178 Contributions - employees 303, ,443 Net investment income (loss) (320,969) 1,437,703 Benefit payments, including refunds of member contributions (1,762,338) (1,739,168) Administrative expense (49,985) (41,90 I) Net change in plan fiduciary net position (659,194) 1,006,255 Plan fiduciary net position at beginning of year 22,070,695 21, Plan fiduciary net position at end of year $ 21,411,501 $ 22,070,695 Village's net pension liability at end of year $ 40,228,801 $ 32,284,387 Plan fiduciary net position as a percentage of total pension liability 34,74 % 40,60 % Covered-employee payroll $ $ 2,948,972 Village's net pension liability as a percentage of covered-employee payroll 1, % 1,094,77 % * Information for April 30, 2016 and 2015 is the only information that is currently available. Note to Schedule: In 2016, the change in assumptions was the result of changes in demographic assumptions based on a study of police officers and police pension funds in Illinois and a reduction in the tax-exempt municipal bond rate. 69

90 REQUIRED SUPPLEMENTARY INFORMATION - POLICE PENSION FUND LAST TEN FISCAL YEARS (SCHEDULES TO BE BUILT PROSPECTIVELY) SCHEDULE OF VILLAGE CONTRIBUTIONS Actuarially determined contribution $ 1,581,181 $ 1,436,481 Contributions in relation to the actuarially determined contribution 1,170,136 1,005,178 Contribution deficiency $ 411,045 s 43 [,303 Covered-employee payroll s 3.129,408 $ 2,948,972 Contributions as a percentage of covered-employee payroll % % * Information for April 30, 2016 and 2015 is the only information that is currently available. Notes to schedule: Valuation Date. Actuarially determined contribution rates are calculated as April 30. Methods and Assumptions used to Determine Contribution Rates. Actuarial cost method Entry age normal (level % pay) Amortization method Level % pay (closed) Remaining amortization period 90% of the April 30, 2012 liability over 30 years. Subsequent years' unfunded liabilities are amortized over 15 years. Asset valuation method 5-year smoothed market value Inflation 3.00%; 2.50% for Fiscal Year 2015 Salary increases 3.00% %; 4.00% % for Fiscal Year 2015 Investment rate of return 6.75% Retirement age See the Notes to the Financial Statements Mortality Mortality rates are based on rates developed in the Lauterbach & Amen, LLP 2012 Mortality Table for Illinois Police Officers 70

91 REQUIRED SUPPLEMENTARY INFORMATION - POLICE PENSION FUND LAST TEN FISCAL YEARS (SCHEDULES TO BE BUILT PROSPECTIVELY) SCHEDULE OF INVESTMENT RETURNS 2016* 2015* Annual money-weighted rate of return, net of investment expense * Information for April 30,2016 and 2015 is the only information that is currently available. 71

92 REQUIRED SUPPLEMENTARY INFORMATION - ILLINOIS MUNICIPAL RETIREMENT FUND LAST TEN CALENDAR YEARS (SCHEDULE TO BE BUILT PROSPECTIVELy) SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Total pension liability: Service cost Interest on the total pension liability Difference between expected and actual experience of the total pension liability Changes in assumptions Benefit payments, including refunds of employee contributions Proportionate change Net change in total pension liability Total pension liability at beginning of year Total pension liability at end of year Plan fiduciary net position: Contributions - employer Contributions - employees Net investment income Benefit payments, including refunds of employee contributions Other changes Proportionate change Net change in plan fiduciary net position Plan fiduciary net position at beginning of year Plan fiduciary net position at end of year Net pension liability at end of year Plan fiduciary net position as a percentage of total pension liability Covered valuation payroll Net pension liability as a percentage of covered valuation payroll 72

93 REQUIRED SUPPLEMENTARY INFORMATION - ILLINOIS MUNICIPAL RETIREMENT FUND LAST TEN CALENDAR YEARS (SCHEDULE TO BE BUILT PROSPECTIVELY) SCHEDULE OF EMPLOYER CONTRIBUTIONS Actuarially determined contribution Actual contribution Contribution deficiency (excess) Covered valuation payroll Actual contribution as a percentage of covered valuation payroll NOTES TO REQUIRED SUPPLEMENTARY INFORM ATION Valuation Date: Actuarially determined contribution rates are calculated as of December 31 each year, which is 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine the 2015 Contribution Rate*: Actuarial cost method Aggregate entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period 28-year closed period Asset valuation method 5-year smoothed market; 20% corridor Wage growth 4% Price inflation 3% approximate; no explicit price inflation assumption is used in this valuation. Salary increases 4.4% to 16% including inflation Investment rate of return 7.5% Retirement age Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the 2011 valuation pursuant to an experience study of the period

94 REQUIRED SUPPLEMENTARY INFORMATION - ILLINOIS MUNICIPAL RETIREMENT FUND LAST TEN CALENDAR YEARS (SCHEDULE TO BE BUILT PROSPECTIVELy) Mortality RP-2000 Combined Healthy Mortality Table, adjusted for mortality improvements to 2020 using projection scales AA. For men 120% of the table rates were used. For women 92% of the table rates were used. For disabled lives, the mortality rates are the rates applicable to non-disabled lives set forward 10 years. Other Information: There were no benefit changes during the year. * Based on valuation assumptions used in the December 31, 2013 actuarial valuation; note two year lag between valuation and rate setting. 74

95 REQUIRED SUPPLEMENTARY INFORMATION - POSTEMPLOYMENT HEALTH CARE PLAN APRIL 30, 2016 SCHEDULE OF FUNDING PROGRESS Unfunded Actuarial UAAL as a Actuarial Actuarial Accrued Percentage Actuarial Value of Accrued Liability Funded Covered of Covered Valuation Date Assets Liabilitv (UAAL) Ratio Payroll Payroll May 1,2015 $ 0 $ 8,681,604 $ 8,681, % N/A N/A May 1, ,066,338 5,066, % $ 10,291, % May 1, ,822,477 3,822, ,796, Information provided above is the most current information available. N/A - Information is not available SCHEDULE OF EMPLOYER CONTRIBUTIONS Annual Required Percentage Year Ended Contribution Contributed April 30, 2016 $ 410, % April 30, , April 30, , April 30, , April 30, , April 30, ,

96 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

97 MAJOR GOVERNMENTAL FUNDS

98 GENERAL FUND

99 GENERAL FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 2,200 $ 4,034 Receivables: Property taxes 3,539,504 3,404,942 Other taxes 2,593,004 2,633,558 Other 893, ,254 Inventories 14,248 30,168 Prepaid items 233, ,866 Total assets $ 7.276,073 j LIABILITIES Accounts payable $ 2,403,413 $ 2,518,557 Accrued expenditures 595, ,726 Deposits 35,663 17,325 Due to other governments 4,503 5,934 Letter of credit 637,852 Advances from other funds ,544,624 Total liabilities 12,274,032 12, DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES (DEFICITS) Nonspendable 248, ,034 Unassigned (8, ) (9, ) Total fund balances (deficits) (8,530,383) ( ) Total liabilities, deferred inflows of resources, and fund balances (deficits) $ 7.276,073 $ 7,576,822 76

100 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND DEFICITS - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Revenues: Property taxes $ 5,566,455 $ 5,964,464 $ 398,009 $ 5,360,659 State sales tax 5,055,000 4,990,652 (64,348) 4,995,673 Other taxes 4,513,191 4,691, ,083 4,277,131 Licenses and permits 459, ,850 (26,350) 636,501 Charges for services 2,630,690 2,627,245 (3,445) 2,599,275 Intergovernmental 340, ,691 (49,362) Ill,230 Interest income 1,000 6,924 5, Fines, forfeitures and penalties 1,180, ,508 (565,492) 715,412 Recreation programs 1,341,500 1,173,913 (167,587) 1,131,969 Vehicle licenses 350, ,472 (32,528) 324,642 Other income (1.800) Total revenues ( ) Expenditures: Current: General government 371, , ,773 General operations 3,410,879 3,652,589 (241,710) 3,756,678 Administrative services 263, ,276 1, ,659 Finance 675, , , ,542 Human resources 202, ,550 14, ,036 Community development 451, ,731 (1,727) 413,445 Community affairs 279, ,766 65, ,767 Public safety 13,000,935 12,699, ,200 12,244,665 Public works 758, ,021 67, ,785 Recreational services 1,866,228 2,012,444 (146,216) 2,031,376 Capital outlay: Finance 119, ,194 8, ,772 Recreational services Total expenditures 21, , I Excess of revenues over expenditures ( I03.509) Other financing sources (uses): Transfers in 356,824 Transfers out ( ) ( ) 24 ( ) Total other financing sources (uses) (1, ) ( ) 24 ( ) Net change in fund deficits 538 (102,947) (103,485) (199,252) Fund deficits at beginning of year ( ) (R ( ) Fund deficits at end of year $ (8, ) $ ( ) $ ( ) s ( ]6) 77

101 GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Property taxes: Property tax $ 5,401,455 $ 5,781,188 $ 379,733 $ 5,189,375 Road and bridge tax ,284 Total property taxes 5, State sales tax 5, (64,348) Other taxes: Income tax 1,881,891 1,944,370 62,479 1,915,076 Replacement tax 158, ,587 (7,113) 163,861 Utility tax 1,532,000 1,502,866 (29,134) 1,661,027 Sales use tax 368, ,053 74, ,392 Eat in tax 450, ,711 31,711 Other Total other taxes ,691, Licenses and permits: Business licenses 70,000 52,519 (17,481) 52,425 Liquor licenses 30,000 33,040 3,040 40,273 Vending machine licenses 11,000 9,925 (1,075) 10,125 Miscellaneous licenses 550 1, ,330 Tobacco licenses 1,500 1,250 (250) 1,600 Contractor's licenses 46,000 67,938 21,938 59,650 Payroll processing services 3,750 2,944 (806) 6,976 Building permits 150, ,693 (23,307) 254,345 Special event permits Electrical permits 26,500 26,199 (301) 50,193 Plumbing permits 24,300 21,677 (2,623) 39,383 Mechanical permits 20,100 17,695 (2,405) 39,853 Alarm perm its 60,000 56,035 (3,965) 67,898 Fire permits (75) Total licenses and permits (26.350) (continued) 78

102 GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL WITH COMP ARA TIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Charges for services: Existing structure 50,000 61,879 11,879 $ 49,345 Inspections and re-inspections 4,000 5,700 1,700 4,275 Fire re-inspections 2, (2,040) 2,800 Engineering and construction inspection 20,000 30,003 10,003 19,253 Engineering review fees 30,000 43,175 13,175 24,233 Development fees - fire 2,000 12,913 10, Developer fees 12,934 12,934 Enterprise zone admin fee 1,000 1,000 Plan review income 20,000 25,910 5,910 44,445 Scavenger services 1,447,700 1,387,324 (60,376) 1,418,397 Senior programs Yard waste stickers 35,500 37,057 1,557 37,123 Police reports 5,000 3,915 (1,085) 4,555 Fire reports 1,000 1, ,060 Fire protection agreements 153, ,877 (12,013) 150,889 Ambulance service 475, ,349 (6,651) 455,112 Planning and review fees 20,000 11,710 (8,290) 30,686 Administrative fees 26,600 27,820 1,220 21,354 Health inspections 12,500 10,925 (1,575) 10,825 Park facility rental 130, ,996 5, ,015 Cable franchise fee 195, ,173 11, ,611 Police and fire applications ,041 Miscellaneous police - gaming grant 250 Other Total charges for services (3.445) Intergovernmental: Other reimbursed salaries 148, ,361 57, ,230 Police COPS grant 166,702 80,960 (85,742) Fire training reimbursement (20.630) Total intergovernmental (49.362) Interest income ,924 5, (continued) 79

103 GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Fines, forfeitures and penalties: Traffic and parking 160, ,287 30, ,120 Police IOC debt recovery 250,000 93,888 (156,112) 213,743 Court fines 50,000 40,793 (9,207) 54,581 MSI court fines (building) 12,000 32,423 20,423 20,540 False alarm fines - police 20,000 31,405 11,405 26,020 False alarm fines - fire 13,000 2,500 (10,500) 10,730 Other fines and penalties ( ) Total fines, forfeitures and penalties (565,492) 715,412 Recreation programs: Commissions/pop/other 2, (1,012) 1,464 Daily fees 30,000 22,997 (7,003) 25,720 Juice bar receipts 35,000 43,835 8,835 42,328 Leisure guide advertising 2,500 (2,500) Resident yearly membership 145, ,711 (4,289) 154,676 Non-resident yearly membership 575, ,696 7, ,946 Sponsorships 10,000 (10,000) 3,098 Resale items Personal training 20,000 15,743 (4,257) 15,485 Swim party income (6) (6) 595 Swim classes 90,000 35,775 (54,225) 46,006 Youth swim and gym 80,000 67,638 (12,362) 71,494 Nursery 2, (1,200) 1,902 Massage therapy 2,000 1,808 (192) 1,398 Swim programs (53) (53) Enrollment fees 35,000 35, ,229 Rec programs - summer 60,000 11,134 (48,866) 57,991 Rec programs - fall 20,000 12,893 (7, 107) 10,645 Rec programs - winter 60,000 31,389 (28,611) 40,985 Preschool - fall 2, (1,150) 1,500 Preschool - winter/spring 3,000 2,050 (950) 3,475 Halloween carnival 1,000 (1,000) 150 Youth baseball 15,000 6,942 (8,058) 6,300 Youth basketball 75,000 66,541 (8,459) 29,710 Dance fundraising 7,291 7,291 Kiddie kamp 10,000 7,610 (2,390) 3,417 Day camp 59,000 78,473 19,473 51,577 Concession sales 3,000 (3,000) 1,449 Other recreation income 5, (4.655) Total recreation programs 1, ( ) 1.131,969 (continued) 80

104 GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Vehicle licenses A72 (32.528) $ Other income: MCC cast camp donations 15,000 8,845 (6,155) 6,571 Southcom utility payments 4,200 4,200 4,200 Tower rent 83,060 48,237 (34,823) 73,219 Scrap sales ,097 Matteson family days 2,000 2, ,734 Sale of equipment 15,000 6,240 (8,760) 19,204 Cook county fuel tax refund 5,000 3,732 (1,268) Car fire reimbursement 2, (1,720) 2,668 Donations 3,500 10,098 6,598 40,510 Returned check fees 4,000 3,712 (288) 2,940 Miscellaneous 1, , Total other income 1,175,539 1, (1.800) Total General Fund revenues $ $ $ ( ) $ 21, (concluded) 81

105 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual General government: Current: Executive and legislative: Village president salary $ 20,340 $ 20,396 $ (56) $ 20,396 Board of trustees' salaries 90,000 90,247 (247) 90,247 Commissioner salary 9,660 9,687 (27) 9,687 FICA taxes 7,440 6, ,762 IMRF 8,772 10,139 (1,367) 8,174 Medicare taxes 1,740 1, ,582 Health insurance 47,529 32,307 15,222 41,414 Life insurance I>ental insurance 3,169 2, ,833 Worker's compensation Office supplies 141 (141 ) 11 Materials and supplies (119) 393 Motor fuel and lubricants 2,500 1, ,323 Liquor license investigation (49) 187 Employee relations 1,500 1, ,881 Meeting costs ,058 Dues ,650 Conference/training 2,000 4,150 (2,150) 1,254 Travel (127) 610 Legislative events 5,000 5,766 (766) 9,587 Computer Software 175 (175) Elected officials expense 5,000 2,701 2,299 2,391 Strategic planning 735 (735) 294 Vehicle lease 5,928 5,928 4,940 Other maintenance Total executive and legislative 214, ,465 14, Ll64 Village clerk: Full-time salaries 44,908 45,287 (379) 44,244 Village clerk salary 20,000 20,055 (55) 20,055 FICA taxes 4,024 3, ,566 IMRF 6,566 5, ,751 Medicare taxes Health insurance 23,319 20,188 3,131 21,666 Short-term disability Life insurance (I) 134 FSA Dental insurance 1,274 1, ,208 Unemployment insurance (continued) 82

106 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with BUdget Actual Final Iludget Actual General government (continued): Current (continued): Village clerk (continued): Worker's compensation Material and supplies (276) 226 Ordinance codification 14,000 14,000 Legal notices 3,500 5,501 (2,001) 2,333 Dues Conference/training Elected officials expense Total village clerk , Memberships and contributions: Family youth initiative 1,500 1,500 1,500 Rich Township bus 1,016 Illinois municipal league 1,500 ],500 1,400 SSMMA 23,000 20,77] 2,229 20,178 Chicago Southland Chamber of Commerce Matteson business association 200 ]2 ]88 54 Dollars for scholars 130 Miscellaneous (532) 182 Total memberships and contributions ,055 1, Police, fire and plan commission: Conference and training 1,071 (1,071 ) Office supplies Testing costs 7,500 10,176 (2,676) 810 Other legal services 1,350 1,350 Dues Total police, fire and plan commission 9, (2.309) Total general government 371, , ,773 (continued) 83

107 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual 'Final Budget. Actual General operations: Current: Legal services: Village attorney 65,000 65,916 (916) 92,579 Special counsel 24,000 11,821 12,179 42,552 Adjudication prosecutions 9,500 7,200 2,300 7,120 Total legal services 98,500 84,937 13, ] Professional and contractual services: Referendum costs 60,049 Materials and supplies 5,000 7,210 (2,210) 5,954 Professional consulting ,956 (71,056) 846 Scavenger service 1,459,576 1,452,825 6,751 1,405,933 Postage 15,000 15,842 (842) 14,744 Telephone 259, ,377 (118,377) 332,831 Heat 7,500 8,171 (671) 12,880 Copier rental 7,000 3,441 3,559 4,836 Postage machine rental 6,500 5, ,438 Payments to Southcom Total professional and contractual services 2, , ) 2,625,663 Employee benefits: Health insurance 24,593 (24,593) Workmen's compensation insurance 188, ,956 (91,111) 277,859 General liability insurance - premium 443, ,856 47, ,580 General liability insurance - deductible 25,000 8,062 16, Total employee benefits 657, (50,946) 822,027 Equipment/vehicle maintenance and repair: Equipment - general (1.486) (continued) 84

108 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Filial Budget Actual General operations (continued): Current (continued): Building maintenance services: Janitorial services 23,546 27,526 (3,980) 25,264 Exterminating Building - operating 15,000 22,148 (7,148) 15,891 Building - contractual 24,000 12,558 11,442 21,624 Total building maintenance services 63,146 62, Miscellaneous: Bad debt expense 7,236 (7,236) 29,617 Bank/service charges 20,000 25,450 (5,450) 25,008 Notaries Computer equipment/phone 150 Vehicles 35,960 Other 30,000 38,732 (8,732) Total miscellaneous 50, (21.288) 102,041 Total general operations 3,410,879 3,652,589 ( ) 3,756,678 Administrative services: Current: Village administrator: Full-time salaries 159, ,252 2, ,969 FICA taxes 8,081 7, ,214 IMRF 21,404 22,377 (973) 19,969 Medicare taxes 2,126 2,231 (l05) 1,973 Health insurance 21,444 21,852 (408) 19,985 Short-term disability Life insurance (17) 273 FSA 26 (26) 46 Dental insurance 1,468 1, ,387 Unemployment insurance Worker's compensation (1) 816 Office supplies (366) 317 (continued) 85

109 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Administrative services (continued): Current (continued): Village administrator (continued): Reference materials (66) 149 Motor fuel and lubricants 3,500 4,127 (627) 3,540 Employee relations Meeting costs (62) 338 Dues 1,500 1, ,572 Conference/training 4,000 6,735 (2,735) 4,467 Travel 250 1,134 (884) 561 Vehicle maintenance and repair (1.006) 98 Total village administrator (3.828) Economic development: Full-time salaries 24,480 20,269 4,211 5,169 FICA taxes 1,469 1, IMRF 3,579 2, Medicare taxes Health insurance 3,288 3, ,226 Short-term disability 14 (14) 4 Life insurance FSA 15 (15) 6 Dental insurance Unemployment insurance (115) 38 Worker's compensation Office supplies 234 (234) Consulting 3, , Conference and training 1,997 (1.997) Total economic development 36, Total administrative services 263, , ,659 (continued) 86

110 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Finance: Current: Information technology: Full-time salaries 44,170 44,772 (602) 45,553 FICA taxes 2,739 2, ,726 IMRF 6,458 6, ,543 Medicare taxes Health insurance 6,285 6,403 (l18) 6,069 Short-term disability Life insurance (I) 81 Dental insurance Unemployment insurance Worker's compensation Office supplies IT consulting 10,500 6,126 4,374 13,445 Conference/train ing 160 Computer maintenance and repair 203 (203) 151 Total information technology , Accounting and budget management: Full-time salaries 135, ,987 (719) 134,328 Overtime salaries 1,157 (1,157) 72 Treasurer's salary 1,600 1,600 1,600 FICA taxes 8,486 8, ,980 IMRF 19,776 19, ,655 Medicare taxes 1,985 1, ,866 Health insurance 28,397 29,306 (909) 27,480 Short-term disability (2) 151 Life insurance I 243 Dental insurance 1,536 1, ,520 Unemployment insurance 1,325 1, ,419 Worker's compensation Office supplies 3,000 2, ,562 Audit 59,000 44,400 14,600 45,030 Outsourced payroll service 41,450 10,458 30,992 Financial consulting 300, Total accounting and budget management , (continued) 87

111 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Finance (continued): Capital outlay: Information technology: Computer hardware/software/licenses 119, ,194 8,806 62,251 Computer equipment/phone system Total information technology ,772 Total finance 794, , , ,314 Human resources: Current: Full-time salaries 101, ,998 (10,489) 134,107 FICA taxes 6,313 6,782 (469) 8,334 IMRF 14,841 16,085 (1,244) 19,679 Medicare taxes 1,476 1,586 (110) 1,949 Health insurance 8,149 9,251 (1,102) 12,823 Short-term disability (7) 100 Life insurance (16) 243 Dental insurance (36) 635 Unemployment insurance Worker's compensation (32) 787 Office supplies Physical examinations 2,000 2,382 (382) 8,222 Labor relations 60,000 32,491 27,509 50,739 EAP program 4,300 3, ,342 Recruitment expense ,999 Postage Dues Conference/train ing (57) 20 Total human resources 202, , ,036 (continued) 88

112 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Community development: Current: Planning: Full-time salaries 69,837 69, ,550 FICA taxes 4,331 4, ,750 IMRF 10,210 9, ,846 Medicare taxes 1, Health insurance 16,440 16, ,321 Short-term disability Life insurance Dental insurance Unemployment insurance Worker's compensation Office supplies Engineering 55,000 54, ,572 Printing Postage Dues Conference/training (34) 137 Total planning 159, ,528 2, ,575 Building services: Full-time salaries 167, ,967 (577) 164,261 Part-time salaries 16,334 11,731 4,603 21,227 FICA taxes 11,393 10, ,349 IMRF 24,472 22,766 1,706 22,553 Medicare taxes 2,664 2, ,420 Health insurance 39,759 40,507 (748) 36,998 Short-term disability Life insurance FSA Dental insurance 2,221 2, ,104 Unemployment insurance 2,366 1, ,006 Worker's compensation 1,084 3,294 (2,210) 1,041 Office supplies (113) 603 Motor fuel and lubricants 3,600 2,299 1,301 3,182 Inspections 12,500 11,320 1,180 2,216 MSI monthly fees 4,000 15,360 (11,360) 5,170 (continued) 89

113 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Community development (continued): Current (continued): Building services (continued): Printing 1,100 1,238 (138) 476 Dues Vehicle maintenance Total building services (4.189) Total community development (1.727) Community affairs: Current: Full-time salaries 141, ,778 14, ,354 Part-time salaries 31,155 8,749 22,406 30,663 FICA taxes 10,712 7,612 3,100 8,200 IMRF 25,247 17,712 7,535 18,898 Medicare taxes 2,505 1, ,918 Health insurance 30,656 27,924 2,732 24,049 Short-term disability Life insurance FSA Dental insurance 1,879 1, ,515 Unemployment insurance 1,704 1, ,515 Worker's compensation 1, Office supplies 1, Materials and supplies 15,000 8,332 6,668 9,688 Residential marketing 3,000 2, ,938 Economic development marketing Printing 1,000 1,000 1,625 Postage 1,500 1,500 1,644 Conference/training 1,500 1, ,125 Travel 1, ,040 Community affairs programs 6,000 4,154 1,846 3,065 Memorial day parade Total community affairs ,767 (continued) 90

114 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Public safety: Current: Police department - administration: Full-time salaries 437, ,665 (2,851) 405,988 Overtime salaries 3,060 3,553 (493) 2,919 Part-time salaries 111,269 84,134 27,135 80,517 FICA taxes 34,248 30,880 3,368 28,917 IMRF 32,768 30,160 2,608 54,825 Medicare taxes 8,010 7, ,763 Health insurance 64,284 66,212 (1,928) 66,196 Short-term disability Life insurance FSA Dental insurance 4,116 4, ,718 Unemployment insurance 6,625 5,075 1,550 6,213 Worker's compensation 23,510 19,636 3,874 15,083 Office supplies 12,000 14,038 (2,038) 12,558 Tools and equipment 10,300 10,731 (431) 2,766 Reference materials 1, ,054 Vehicle license fees 103 (103) 725 Cleaning supplies 2,300 2, ,060 Uniforms 2,000 1, ,155 Janitorial 27,000 21,570 5,430 23,727 Postage Dues 500 1,010 (510) 523 Conference/training 5,300 4, ,264 Heat 6,000 4,298 1,702 4,777 Copier rental 6,500 4,104 2,396 4,104 Equipment maintenance and repair 2,500 3,911 (1,411) 2,648 Building maintenance and repairoperating 5,000 18,349 (13,349) 5,147 Building maintenance and repair - contractual 12,500 11,410 1,090 12,180 Senior programs 750 1,050 (300) 738 Cast camp 15,000 9,488 5,512 7,215 Community policing programs 2,000 1, ,000 Police pension contribution 1.096, ,136 (73.441) 1.005,178 Total police department - administration 1,934, ,043 (39,117) 1,767,320 (continued) 91

115 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Public safety (continued): Current (continued): Police department - uniform division: Full-time salaries 3,168,712 2,908, ,792 2,944,881 Overtime salaries 442, , , ,040 Part-time salaries 15,206 9,018 6,188 11,841 Training salaries 15,000 15,749 (749) 15,950 Leave coverage salaries 135, ,549 (279,549) 155,332 Reimbursed overtime salaries 65, ,202 (40,202) 66,861 FICA taxes 223, ,938 10, ,861 IMRF 5,971 6,339 (368) 6,621 Medicare taxes 52,621 52, ,230 Health insurance 475, , , ,465 Short-term disability 2,208 1, ,795 Life insurance 6,288 5,231 1,057 5,382 FSA Dental insurance 27,570 22,781 4,789 23,489 Unemployment insurance 18,928 16,844 2,084 17,395 Worker's compensation 217, ,095 3, ,018 Compensated absences 17,340 34,191 (16,851) 28,400 Equipment supplies 2,900 3,398 (498) 2,947 Tools and equipment 2,000 2,394 (394) 2,318 Prisoner meals 2,000 2,059 (59) 2,020 Motor fuel and lubricants 113,000 85,709 27, ,591 Ammunition 5,000 5,020 (20) 4,095 Protective clothing 6,600 6,600 Uniforms 26,450 27,523 (1,073) 16,221 Parking ticket software services 21,000 19,319 1,681 25,493 Animal control 250 1,387 (J,137) 633 Subscriptions (J 04) 589 Conference/training 5,000 6,985 (1,985) 5,127 Travel 1, Vehicle maintenance and repair (I7.694) 43,400 Total police departmentuniform division 5, ,866, ,957 4,593,823 (conti nued) 92

116 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Public safety (continued): Current (continued): Fire department - administration: Fu II-time salaries 276, ,101 54, ,065 Overtime salaries 3, ,100 1,160 FICA taxes 17,106 12,739 4,367 22,088 IMRF 5,578 3,161 2,417 2,536 Medicare taxes 4,029 2,979 1,050 5,245 Health insurance 143, ,896 (9,342) 140,492 Short-term disability Life insurance FSA Dental insurance 2,842 1, ,926 Unemployment insurance 1, ,268 1,853 Worker's compensation 31,754 29,655 2,099 55,125 Compensated absences 5,989 (5,989) 5,478 Office supplies 2,000 1, ,728 Reference materials Physical examinations 15,000 7,381 7,619 9,234 Shared ambulance agreement M.A.B.A.S. 3,500 3, ,250 Cleaning supplies 6,000 8,537 (2,537) 4,890 Protective clothing 14,000 8,934 5,066 7,289 Uniforms 20,000 17,950 2,050 22,541 Collection agency fees - fire 248 Employee relations 1,683 (1,683) 544 Printing Postage Dues 1,000 5,261 (4,261) 1,139 Conference/training 1, ,100 1,610 Public education 150 Heat 12,500 5,890 6,610 11,864 Copier rental 3,950 3, ,924 Equipment maintenance and repair 731 (731) 1,168 Vehicle maintenance and repair 4,000 6,271 (2,271) 9,802 Building maintenance and repair - contractual 23,195 9,921 13,274 22,178 Building maintenance and repair 25,000 24, ,751 Fire pension contribution (73.811) Total fire department - administration ,712,863 (continued) 93

117 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Public safety (continued): Current (continued): Fire department - operations: Full-time salaries 2,434,674 2,303, ,147 2,387,910 Overtime salaries 584, ,846 (85,226) 572,421 Training salaries 25,000 14,965 10,035 8,641 FICA taxes 185, ,538 11, ,796 Medicare taxes 43,434 42,008 1,426 41,463 Health insurance 368, ,112 (12,787) 347,408 Short-term disability 1,907 1, ,442 Life insurance 5,450 4,243 1,207 4,471 FSA (27) 375 Dental insurance 21,560 21, ,466 Symetra life insurance Unemployment insurance 13,250 10,957 2,293 13,718 Worker's compensation 419, ,020 5, ,998 Compensated absences 35,000 18,326 16,674 29,272 Salary incentive Materials and supplies - fire 1,183 Equipment supplies - fire 944 (944) 13 Tools and equipment - fire 10,000 12,402 (2,402) 15,032 Tools and equipment - EMS 5,000 18,922 (13,922) 5,136 Medical supplies 5, ,809 1,939 Vehicle license fees Motor fuel and lubricants 33,000 19,824 13,176 29,310 Protective clothing 3,135 Printing 1,000 1,000 Conference/training/education 360 (360) 905 Equipment maintenance and repair - fire 15,000 12,753 2,247 6,817 Equipment maintenance and repair - EMS 5,000 5,417 (417) 6,252 Vehicle maintenance and repairfire 65,000 76,047 (11,047) 66,107 Vehicle maintenance and repair- EMS (1.059) Total fire department - operations , Total public safety (continued) 94

118 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Public works: Current: Public works department - administration: Full-time salaries 132, ,150 27, ,397 Overtime salaries 6,120 6, FICA taxes 8,615 6,046 2,569 7,645 IMRF 20,305 14,765 5,540 18,118 Medicare taxes 2,015 1, ,788 Health insurance 17,692 13,123 4,569 16,489 Short-term disability Life insurance FSA (60) 75 I>ental insurance 938 1,140 (202) 903 Unemployment insurance 1, ,009 Worker's compensation 11,353 8,271 3,082 10,898 Office supplies (119) 194 Materials and supplies (16) 357 Uniforms Consulting engineering 1,246 Janitorial services 2,112 1, ,936 Extermination 700 1,025 (325) 546 Employee relations Conference/training Travel Heat 7,000 5,500 1,500 10,686 Equipment rental Copier rental 2,304 2, ,304 Equipment maintenance and repair Outdoor siren maintenance 5,000 3,360 1,640 3,360 Building maintenance and repair - operating 10,000 10,752 (752) 10,275 Building maintenance and repair - contractual 1,400 1,400 Building maintenance and repair 2,000 2, Total public works department - administration 233, ,482 57, ,056 (continued) 95

119 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Public works (continued): Current (continued): Vehicles and equipment, roadway and grounds maintenance: Full-time salaries 236, ,441 6, ,358 Overtime salaries 24,252 30,089 (5,837) 36,731 FICA taxes 16,161 14,863 1,298 15,149 lmrf 37,376 35,890 1,486 36,080 Medicare taxes 3,780 4,014 (234) 3,543 Health insurance 56,795 49,665 7,130 47,701 Short-term disability Life insurance FSA (118) 27 Dental insurance 3,324 3, ,821 Unemployment insurance 1,704 1, ,686 Worker's compensation 21,419 20, ,781 Sick leave buy-back (61) 627 Materials and supplies 16,000 16,467 (467) 14,YlO Tools and equipment 6,000 7,791 (1,791) 4,365 Motor fuel and lubricants 9,300 8, ,265 Street/traffic signs 7,000 13,996 (6,996) 6,142 Paint Protective clothing Uniforms 3,000 3,364 (364) 1,927 Consulting engineering 3,000 3,392 (392) Exterminating Julie locator 3,000 3,000 1,865 Conference/training Continuing education (68) 105 Vehicle maintenance 17,000 17,694 (694) 13,331 Severe storm 46,188 Traffic and street light maintenance 30,973 30, ,521 Building maintenance and repair - contractual 1,600 1,600 Grounds maintenance 11,000 13,678 (2,678) 11,579 Restoration 4,000 5,438 (1,438) 4,790 Tree replacement 6,000 1,280 4, Emerald ash borer removal 1, Alley maintenance Total vehicles and equipment, roadway and grounds maintenance ,729 (continued) 96

120 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Total public works ,785 Recreational services: Current: Administration: Full-time salaries 314, ,992 (2,133) 309,767 Overtime salaries 83 (83) 605 Part-time salaries 460, ,909 35, ,079 FICA taxes 48,041 45,094 2,947 46,610 IMRF 56,707 51,923 4,784 53,169 Medicare taxes 11,235 10, ,901 Health insurance 59,864 56,349 3,515 47,885 Short-term disability Life insurance (224) 562 Dental insurance 3,203 2, ,617 Unemployment insurance 33,113 16,868 16,245 22,796 Worker's compensation 9,043 9,837 (794) 8,944 Office supplies 5,000 3,852 1,148 3,253 Materials and supplies 14,000 13, ,993 Physical exams / background 5,200 4, Motor fuel and lubricants Cleaning supplies 20,000 35,566 (15,566) 27,545 Uniforms 4,000 1,847 2,153 1,679 Consulting - marketing 3,200 Other professional services Employee relations 1, Telephone/data 6,000 11,486 (5,486) 8,456 Program guide 10,000 11,420 (1,420) 11,940 Printing 400 1,223 (823) 1,650 Postage 1, Dues 3,000 1,420 1, Advertising 2, ,782 Conference/training 2,000 2, Electric 120, ,822 (11,822) 134,174 Heat 28,000 32,808 (4,808) 54,327 Equipment rental 30,000 18,819 11,181 17,604 Copier rental 8,000 7, ,040 Equipment maintenance and repair 6,000 7,790 (1,790) 2,385 (continued) 97

121 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Recreational services (continued): Current (continued): Administration (continued): Vehicle maintenance and repair 216 (216) 760 Building maintenance and repair - contractual 7,000 5,840 1,160 4,041 Building maintenance and repair 15,000 28,849 (13,849) 30,491 Grounds maintenance 30,000 26,536 3,464 17,955 Bank/service charges 15,000 13,116 1,884 13,965 Pool control personnel 200, ,991 (37,991) 244,123 Personal trainers 10,000 17,403 (7,403) 13,161 Fitness center equipment 12,000 15,489 (3,489) 12,766 Cable 7,000 7,314 (314) 6,643 HV AC maintenance 35,000 26,078 8,922 35,499 Security 17,000 35,130 (18,130) 22,139 Pool supplies/chemicals 20,000 21,108 (1,108) 14;524 Special fitness instructor 40,000 53,660 (13,660) 60,933 Forms/mailings 1,000 1,846 (846) 3,074 Concession/juice bar purchases 20,000 29,460 (9,460) 29,780 Massage therapy 1,500 1,762 (262) 1,344 Computer hardware/software/ licenses 12,000 9,735 2,265 24,034 Computer equipment/phone system 5,000 5,000 5,717 Total administration 1,711,014 1,752,296 (41,282) 1, Programming: Overtime salaries 20 (20) 128 Part-time salaries 45,000 84,130 (39,130) 99,074 Summer programs 40,000 24,305 15,695 48,263 Winter/spring programs 24,000 1,064 22,936 13,966 Fall preschool 3,000 3,000 2,177 FICA taxes 6,944 5,231 1,713 4,857 IMRF taxes 212 1,862 (1,650) 1,222 Medicare taxes 1,624 1, ,136 Unemployment insurance 17,976 3,028 14,948 3,518 Worker's compensation 1,758 1, ,232 Matteson youth baseball 2,000 14,514 (12,514) 7,948 Matteson youth basketball 2,000 86,478 (84,478) 44,065 Open gym 6 (6) 6,568 Kiddiekamp 611 (611) 50 Promotions 1,500 5,223 (3,723) (continued) 98

122 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Final Variance with Budget Actual Final Budget Actual Recreational services (continued): Current (continued): Programming (continued): Day camp 1,200 22,310 (21,110) 1,042 Community special events 8,000 8,803 (803) 5,741 Halloween carnival 17 Total programming 155, ,148 ( 104,934) 241,004 Capital outlay: Administration: Parks equipment and maintenance 15, ,52] 4,793 Total recreational services ,015,923 (134,695) 2,036,169 Total General Fund expenditures $ ,076 $ 21, $ s 21,018,29\ (concluded) 99

123 SPECIAL REVENUE FUND

124 LINCOLN HIGHWAY /CICERO AVENUE BUSINESS DISTRICT FUND

125 LINCOLN HIGHWAY/CICERO AVENUE BUSINESS DISTRICT FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 4,932,031 $ 2,607,050 Receivables - other taxes 478, ,421 Advances to other funds 588,673 Prepaid items 253 1,743 Total assets $ $ 3, LIABILITIES Accounts payable $ 1,112 $ 956 Accrued expenditures 5, Total liabilities 6, FUND BALANCES Nonspendable 253 1,743 Restricted 5.403, Total fund balances 5.404,179 3,678,098 Total liabilities and fund balances $ $ 3.680,

126 LINCOLN HIGHWAY/CICERO AVENUE BUSINESS DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Fiual Budget Actual Revenues: Other taxes $ 2,090,000 $ 1,937,333 $ (152,667) $ 1,798,445 Expenditures: Current: Administrative services 538, ,233 Excess of revenues over expenditures 1,551,567 1,726, ,514 I Fund balances at beginning of year 3,678,098 3,678,098 2,033,886 Fund balances at end of year $ 5,229,665 $ 5,404,'] 79 $ 174,514 $ 3,678,

127 CAPITAL PROJECTS FUNDS

128 TAX INCREMENTAL FINANCE DISTRICT II FUND

129 TAX INCREMENTAL FINANCE DISTRICT II FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 4,881,818 $ 5,039,306 Advances to other funds Total assets $ 5, $ , LIABILITIES Accounts payable $ $ 52,097 Due to other governments Total liabilities 77,542 FUND BALANCES Restricted Total liabilities and fund balances $ 5, $

130 TAX INCREMENTAL FINANCE DISTRICT II FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budaet Actual Final Budget Actual Revenues: Property taxes $ $ 35,989 $ 35,989 $ 15,628 Expenditures: Current: Administrative services 5.076,100 1,100 5,075, ,475 Excess (deficiency) of revenues over expend itures ( ) 34,889 5,110,989 (208,847) Fund balances at beginning of year 5,139,672 5,139, ,519 Fund balances at end of year $ 63,572 $ 5,174,561 $ 5,110,989 $ 5,139,

131 TAX INCREMENTAL FINANCE DISTRICT IV FUND

132 TAX INCREMENTAL FINANCE DISTRICT IV FUND BALANCE SHEET APRIL 30, 2016 WITH COMP ARA TIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Other receivables $ $ LIABILITIES Accounts payable $ 47,177 $ Accrued expenditures 2,250,000 Due to other governments 191,386 Advances from other funds 292, ,908 Total liabilities 2,589, ,294 FUND DEFICITS Unassigned (2,568,029) ) Total liabilities and fund deficits $ 21,891 $ 104

133 TAX INCREMENTAL FINANCE DISTRICT IV FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND DEFICITS - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Property taxes $ 800,000 $ 743,877 $ (56,123) $ 1,358,620 Expenditures: Current: Administrative services 50,000 2,658,287 (2,608,287) Excess (deficiency) of revenues over expenditures 750,000 (1,914,410) (2,664,410) 1,090,091 Other financing uses: Transfers out (284,325) (284,325) (1,161,372) Net change in fund deficits 465,675 (2,198,735) (2,664,410) (71,281) Fund deficits at beginning of year ( ) ( ) (298,013) Fund balance (deficits) at end of year $ 96,381 $ (2, ) $ (2,664,410) s (369,294) 105

134 NONMAJOR GOVERNMENTAL FUNDS

135 NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET APRIL 30, 2016 ASSETS Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds Cash and cash equivalents $ 5,465,817 $ 4,558,628 $ 2,633,573 $ 12,658,018 Receivables: Property taxes 80, , ,412 Other taxes 504, ,645 Due from other governments 6,556 6,556 Advances to other funds 746, ,997 55,979 1,739,865 Prepaid items Total assets $ 6,798,743 $ 5, $ 2,696,108 $ 15,134,002 LIABILITIES Accounts payable $ 243,205 $ $ $ 243,205 Accrued expenditures 3,280 3,280 Due to other governments 55, , ,196 Advances from other funds 55,979 55,979 Total liabilities , DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 80, ,507 FUND BALANCES (DEFICIT) Nonspendable Restricted 6,223,037 5,481,764 2,454,957 14,159,758 Assigned 193,471 15, ,550 Unassigned (55.979) (55.979) Total fund balances (deficit) , , Total liabilities, deferred inflows of resources, and fund balances (deficit) $ $ 5,639,151 $ 2,696,108 s 15,

136 NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds Revenues: Property taxes $ 140,379 $ 248,722 $ 1,053,038 $ 1,442,139 Other taxes 1,488,541 1,488,541 Intergovernrnental 288, ,083 Interest income 2,063 6,297 8,360 Other income ,993 Total revenues 'I, ), Expenditures: Current: Administrative services 168, , ,267 Community development 79,228 79,228 Public safety 50,723 50,723 Public works 329, ,719 Recreational services 116, ,665 Capital outlay: Public safety 62,585 62,585 Public works 474, ,247 Debt service: Principal retirement 1,855,000 1,855,000 Interest charges and fees 601, ,390 Total expenditures Excess (deficiency) of revenues over expenditures (2.201,371) ( ) Other financing sources (uses): Transfers in 2,101,330 2,101,330 Transfers out ( ) (617,015) Total other financing sources (uses) 2.101,330 ( ) Net change in fund balances 704,822 (100,041) 299, ,607 Fund balances at beginning of year , Fund balances at end of year $ 6.417,014 $ $ $

137 NONMAJOR SPECIAL REVENUE FUNDS

138 NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET APRIL 30, 2016 ASSETS South Suburban Motor Fuel Special Drug Foreign Fire Hotel/Motel Tax Recreation Forfeiture Insurance Tax Cash and cash equivalents $ 1,205,550 $ 186,739 $ 201,000 $ 19,502 $ 1,182,741 Receivables: Property taxes 80,886 Other taxes 112, ,118 Advances to other funds 746,889 Prepaid items Total assets $ $ $ $ L9.502 $ LIABILITIES Accounts payable $ 152,978 $ $ 2,248 $ $ 22,819 Accrued expenditures 1,162 Due to other governments Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted 1,055, , ,139 19,502 2,013,368 Assigned Total fund balances , Total liabilities, deferred inflows of of resources, and fund balances $ $ $ 201,000 $ 19,502 $

139 Lincoln Highway! Governors Total Highway Matteson Matteson Nonmajor Corridor Gateway Auto Mall Special Business Business Business Revenue District District Develonment Funds $ 1,417,812 $ 1,245,170 $ 7,303 $ 5,465,817 80,886 76,426 97,361 27, , , $ $ 1.342,784 $ 34,841 s 6,798,743 $ 2,106 $ 1,059 63,054 $ 1,059 $ 243,205 3,280 55,045 3,165 64, , ,491,073 1,278,418 34,841 6,223, ,671 34, ,014 $ $ 1, s 34,841 $ 6,798,

140 NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES South Suburban Motor Fuel Special Drug Foreign Fire Hotel/Motel Tax Recreation Forfeiture Insurance Tax Revenues: Property taxes $ $ 140,379 $ $ $ Other taxes 486, ,9l3 Intergovernmental 248,334 39,749 Interest income 1, Other income 42,352 24,641 Total revenues l3 Expenditures: Current: Administrative services 42,888 Community development 79,228 Public safety 20,838 29,885 Public works 329,719 Recreational services 116,665 Capital outlay: Public safety 62,585 Public works 474,247 Total expenditures 803, , Excess (deficiency) of revenues over expenditures (25,185) 23,714 (43,477) (5,244) 400,797 Fund balances at beginning of year 1.189, , , ,970 Fund balances at end of year $ L.I64,774 s 187,426 $ 143,707 $ s

141 Lincoln Highway! Governors Total Highway Matteson Matteson Nonmajor Corridor Gateway Auto Mall Special Business Business Business Revenue District District Development Funds $ $ $ $ 140, , ,279 36,221 1,488, ,083 2,063 66, ,899 [89,279 36, ,059 70,027 53,775 1, ,070 79,228 50, , ,665 62, ,247 70,027 53, [, [83, ,504 34, , ,167 5, $ [, $ [ l $ $

142 MOTOR FUEL TAX FUND

143 MOTOR FUEL TAX FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 1,205,550 $ 1,076,440 Receivables - other taxes 112, ,846 Total assets $ 1,317,752 $ LIABILITIES Accounts payable $ 152,978 $ 79,135 Accrued expenditures 160 Total liabilities ,295 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - other taxes FUND BALANCES Restricted 1,012,918 1,082,321 Assigned Total fund balances 1,164,774 1, Total liabilities, deferred inflows of resources, and fund balances $ 1, ;II 1,282,

144 MOTOR FUEL TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Other taxes $ 452,414 $ 486,229 $ 33, ,856 Intergovernmental 248, , ,326 Interest income 100 1,866 1, Other income Total revenues 452, ,820 Expenditures: Current: Public works 439, , , ,771 Capital outlay: Public works 200, ( ) 166,] 14 Total expenditures 639, ( ) Excess (deficiency) of revenues over expenditures (186,585) (25,185) 161, ,935 Fund balances at beginning of year 1.189, ,959 1,072,024 Fund balances at end of year $ 1,003,374 $ 1.164,774 $ $ 1,

145 SOUTH SUBURBAN SPECIAL RECREATION FUND

146 SOUTH SUBURBAN SPECIAL RECREATION FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 186,739 $ Property taxes receivable 80,886 83,308 Advances to other funds Total assets $ 267,625 $ 246,853 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes $ 80,199 $ 83,141 FUND BALANCES Restricted 187, Total deferred inflows of resources and fund balances $ 267,625 $ 246,

147 SOUTH SUBURBAN SPECIAL RECREATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Property taxes $ 142,286 $ 140,379 $ (1,907) $ 139,675 Expenditures: Current: Recreational services (17.855) Excess of revenues over expenditures 43,476 23,714 (19,762) 28,179 Fund balances at beginning of year 163, , ,533 Fund balances at end of year $ $ $ (19,762) $

148 DRUG FORFEITURE FUND

149 DRUG FORFEITURE FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ $ LIABILITIES Accounts payable $ 2,248 $ 84 Due to other governments 55, Total liabilities 57, FUND BALANCES Restricted 143, ,813 Assigned Total fund balances 143, Total liabilities and fund balances $ $

150 DRUG FORFEITURE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Intergovernmental $ $ 39,749 $ 39,749 $ 55,940 Interest income Total revenues 39,946 39,946 56,116 Expenditures: Current: Public safety 20,838 (20,838) 9,992 Capital outlay: Public safety 62,585 (62,585) 37,304 Total expenditures 83,423 (83,423) Excess (deficiency) of revenues over expenditures (43,477) (43,477) 8,820 Fund balances at beginning of year 187, , ,364 Fund balances at end of year $ 187,184 $ 143,707 $ (43,477) $ 187,184 ] ]7

151 FOREIGN FIRE INSURANCE FUND

152 FOREIGN FIRE INSURANCE FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 19,502 lk.$ _-====2~4~, 7~46g", FUND BALANCES Restricted $ ] 9,502 :,$ =-_2~4~, 7:.;;;:;4~6 118

153 FOREIGN FIRE INSURANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Other income $ $ 24,641 $ 24,641 $ 20,554 Expenditures: Current: Public safety 29,885 (29,885) 12,869 Excess (deficiency) of revenues over expenditures (5,244) (5,244) 7,685 Fund balances at beginning of year 24,746 24,746 17,061 Fund balances at end of year $ 24,746 $ 19,502 $ (5,244) $ 24,

154 HOTEL/MOTEL TAX FUND

155 HOTEL/MOTEL TAX FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 1,182,741 $ Receivables - other taxes 191,118 46,957 Advances to other funds 746, Total assets $ 2,120,748 $ LIABILITIES Accounts payable $ 22,819 $ 11,743 Accrued expenditures 1,162 2,294 Total liabilities 23, FUND BALANCES Restricted 2,013,368 1,612,571 Assigned 83, Total fund balances 2,096,767 1, Total liabilities and fund balances $ $

156 HOTELIMOTEL TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Other taxes $ 475,000 $ 522,913 $ 47,913 $ 463,795 Other income 52,575 Total revenues 475, ,913 47, ,370 Expenditures: Current: Administrative services 48,181 42,888 5, ,141 Community development 90,250 79,228 11, ,645 Total expenditures 138, ,116 16, ,786 Excess of revenues over expenditures 336, ,797 64, ,584 Fund balances at beginning of year 1,695,970 1,695,970 1,582,386 Fund balances at end of year $ 2,032,539 $ 2,096,767 $ 64,228 $ 1,695,

157 LINCOLN HIGHWAY/GOVERNORS HIGHWAY CORRIDOR BUSINESS DISTRICT FUND

158 LINCOLN HIGHWAY / GOVERNORS HIGHWAY CORRIDOR BUSINESS DISTRICT FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 1,417,812 $ 1,232,731 Receivables - other taxes 76,426 73,518 Prepaid items Total assets $ 1, $ LIABILITIES Accounts payable $ 2,106 $ Accrued expenditures 1, Total liabilities 3, FUND BALANCES Nonspendable 253 1,743 Restricted 1, ,711 Total fund balances 1,491,326 1, Total liabilities and fund balances $ 1.494,491 $ 1.307,

159 LINCOLN HIGHWAY / GOVERNORS HIGHWAY CORRIDOR BUSINESS DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Other taxes $ 275,000 $ 253,899 $ (21,101) $ 238,188 Expenditures: Current: Administrative services 95,674 70,027 25,647 28,131 Excess of revenues over expenditures 179, ,872 4, ,057 Fund balances at beginning of year , ,397 Fund balances at end of year $ 1,486,780 $ $ $ 1.307,

160 MATTESON GATEWAY BUSINESS DISTRICT FUND

161 MATTESON GATEWAY BUSINESS DISTRICT FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 1,245,170 $ 1,087,337 Receivables - other taxes 97,361 54,743 Prepaid items Total assets $ 1.342,784 $ LIABILITIES Accounts payable $ 63,054 $ 94 Accrued expenditures Total liabilities FUND BALANCES Nonspendable 253 1,743 Restricted Total fund balances ,167 Total liabilities and fund balances $ 1.342,784 $

162 MATTESON GATEWAY BUSINESS DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budzer Actual Final Budzet Actual Revenues: Other taxes $ 177,500 $ 189,279 $ 11,779 $ 188,675 Expenditures: Current: Administrative services Excess of revenues over expenditures 81, ,504 53, ,218 Fund balances at beginning of year 1, , Fund balances at end of year $ $ $ $ 1.143,

163 NONMAJOR DEBT SERVICE FUNDS

164 NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET APRIL 30, 2016 ASSETS 2004B 2003A General 2006A Community Obligation General 2010 Center Refunding Obligation Debt Utility Bonds Bonds Bonds Certificates Cash and cash equivalents $ $ $ $ 2,552,605 Property taxes receivable 143,526 Advances to other funds 216, ,223 Total assets $ 216,706 $ 38 $ 156,749 $ 2,552,605 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes $ $ $ 142,308 $ FUND BALANCES Restricted 216,706 14,441 2,537,939 Assigned 38 14,666 Total fund balances 216, ,552,605 Total deferred inflows of resources and fund balances $ 216,706 $ 38 $ $ 2,552,

165 Tax 2011B Incremental Total Alternate Finance Nonmajor Revenue District IV Debt Service Bonds Debt Service Funds $ $ 2,006,023 $ 4,558, , $ $ :Ii 5,639,151 $ $ $ ,030 2,005, ,481, $ $ 2,006,()23,g,$=~j~.6~9.~I:;,j

166 NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) YEAR ENDED APRIL 30, B 2003A General 2006A 2008 Community 2003B Obligation General General Center Refunding Refunding Obligation Obligation Utility Bonds Bonds Bonds Bonds Bonds Revenues: Property taxes $ $ $ $ 248,722 $ Interest income Total revenues Expenditures: Debt service: Principal retirement 115, , , , ,000 Interest charges and fees Total expenditures Excess (deficiency) of revenues over expenditures (170,012) (617,015) (297,550) (11,153) (732,350) Other financing sources: Transfers in Net change in fund balances (11,153) Fund balances at beginning of year Fund balances at end of year $ $ $ 38 $ $ 128

167 Tax Incremental Total 2010 Alternate Finance Nonmajor Debt Revenue District IV Debt Service Certificates Bonds Debt Service Funds $ $ $ $ 248,722 6, ,\ ,000 1,855, , l, , ,325 2,456,390 5,694 (94,788) (284,197) (2,201,371) Ol,330 5,694 (94,788) 128 (100,041) 2.546, ,005, $ 2.552,605 $ $ $ 5.41)6,84] 129

168 2003A COMMUNITY CENTER UTILITY BONDS FUND

169 2003A COMMUNITY CENTER UTILITY BONDS FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Advances to other funds $ ==$ ==21==6~.6==6=6 FUND BALANCES Restricted $ =$==21==6~.6=6=6 s 130

170 2003A COMMUNITY CENTER UTILITY BONDS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Filial Budget Actual Revenues: Property taxes $ $ $ $ Expenditures: Debt service: Principal retirement 115, , ,000 Interest charges and fees 55,053 55, Total expenditures 170, Deficiency of revenues over expenditures (l70,053) (170,012) 41 ( ) Other financing sources (uses): Transfers in 170, ,052 (1) Transfers out ( ) Total other financing sources (uses) 170, (1) (128,689) Net change in fund balances (295,530) Fund balances at beginning of year ,196 Fund balances at end of year $ $ 216,706 $ 40 $ 216,

171 2003B REFUNDING BONDS FUND

172 2003B REFUNDING BONDS FUND SCHEDULE OF EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30,

173 2004B GENERAL OBLIGATION REFUNDING BONDS FUND

174 2004B GENERAL OBLIGATION REFUNDING BONDS FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Advances to other funds =$=====3==8=$==== FUND BALANCES Assigned :=$=====3==8=$==== 133

175 2004B GENERAL OBLIGATION REFUNDING BONDS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND DEFICITS - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Property taxes $ $ $ $ Expenditures: Debt service: Principal retirement 275, , ,000 Interest charges and fees 22,590 22, Total expenditures 297, ,715 Deficiency of revenues over expenditures (297,590) (297,550) (297,550) (298,253) Other financing sources: Transfers in ,588 (2) 475,603 Net change in fund deficits 38 (297,552) 177,350 Fund deficits at beginning of year ( ) Fund balances at end of year $ $ 38 s (297,552) $ 134

176 2006A GENERAL OBLIGATION BONDS FUND

177 2006A GENERAL OBLIGATION BONDS FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Property taxes receivable Advances to other funds $ 143,526 $ 13, ,516 25,298 Total assets $ 156,749 :!:,$ ======17:=2==:,8=1 ==4 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes $ 142,308 $ 147,220 FUND BALANCES Restricted 14,441 25,594 Total deferred inflows of resources and fund balances $ 156,749 :!:,$ ======17:=2==:,8=1 ==4 135

178 2006A GENERAL OBLIGATION BONDS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Property taxes $ $ $ (] 1,]73) $ Expenditures: Debt service: Principal retirement 205, , ,000 Interest charges and fees Total expenditures Deficiency of revenues over expenditures (11,153) (11,153) (15,143) Other financing uses: Transfers out ( ) Net change in fund balances (11,153) (11,153) (243,278) Fund balances at beginning of year , ,872 Fund balances at end of year s $ $ (] I,] 53) $

179 2008 GENERAL OBLIGATION BONDS FUND

180 2008 GENERAL OBLIGATION BONDS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Property taxes $ $ $ $ Expenditures: Debt service: Principal retirement 425, , ,000 Interest charges and fees Total expenditures ,701 Deficiency of revenues over expenditures (732,371) (732,350) 21 (720,901) Other financing sources: Transfers in (21) Net change in fund balances (87,804) Fund balances at beginning of year 87,804 Fund balances at end of year $ $ $ $ 137

181 2010 DEBT CERTIFICATES FUND

182 2010 DEBT CERTIFICATES FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 2,552,605 $ 2,546,911 FUND BALANCES Restricted $ 2,537,939 $ 2,538,414 Assigned 14, Total fund balances $ 2.552,605 $

183 2010 DEBT CERTIFICATES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Interest income $ 475 $ 6,169 $ 5,694 $ 4,140 Expenditures: Debt service: Interest charges and fees Excess of revenues over expenditures 5,694 5,694 3,665 Fund balances at beginning of year Fund balances at end of year $ $ $ $

184 2011B ALTERNATE REVENUE BONDS FUND

185 2011B ALTERNATE REVENUE BONDS FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Advances to other funds $ 707,030 ~$=~80=1~,8=1=8 FUND BALANCES Restricted $ 707,030,0:$=====80=1~,8=1 =8 140

186 2011B ALTERNATE REVENUE BONDS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Property taxes $ $ $ $ 1,395 Expenditures: Debt service: Interest charges and fees Deficiency of revenues over expenditures (94,828) (94,788) 40 (93,433) Fund balances at beginning of year ,251 Fund balances at end of year $ $ $ 40 $

187 TAX INCREMENTAL FINANCE DISTRICT IV DEBT SERVICE FUND

188 TAX INCREMENTAL FINANCE DISTRICT IV DEBT SERVICE FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 2,006,023 $ 2.005,895 FUND BALANCES Restricted $ 2,005,776 $ 2,005,648 Assigned Total fund balances $ 2,006,023 $

189 TAX INCREMENTAL FINANCE DISTRICT IV DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Interest income $ $ 128 $ 128 $ 125 Expenditures: Debt service: Principal retirement 240, , ,000 Interest charges and fees 44,325 44,325 56,700 Total expenditures 284, , ,700 Deficiency of revenues over expenditures (284,325) (284,197) 128 (281,575) Other financing sources: Transfers in 284, ,325 IJ Net change in fund balances ,797 Fund balances at beginning of year 2,005,895 2,005,895 1,126,098 Fund balances at end of year $ 2,005,895 $ 2,006,023 $ 128 $ 2,005,

190 NONMAJOR CAPITAL PROJECTS FUNDS

191 NONMAJOR CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET APRIL 30, 2016 ASSETS Tax Tax Tax Tax Incremental Incremental Incremental Incremental Finance Finance Finance Finance District I District III District V District VI Cash and cash equivalents $ 1,394,444 $ 795,008 $ $ 444,121 Due from other governments 6, Advances to other funds Total assets $ $ $ $ LIABILITIES Due to other governments $ 241,151 $ $ $ Advances from other funds Total liabilities FUND BALANCES (DEFICIT) Restricted 1,153, , ,115 Unassigned (55,979) Total fund balances (deficit) ,549 (55,979) 500,115 Total liabilities and fund balances (deficit) $ $ 801,549 $ $ 500,

192 Total Nonmajor Capital Projects Funds $ 2,633,573 6, $ $ 241, ,454,957 (55.979) $

193 NONMAJOR CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT) Tax Tax Tax Tax Incremental Incremental Incremental Incremental Finance Finance Finance Finance District I District III District V District VI Revenues: Property taxes $ $ 770,259 $ $ 282,779 Expenditures: Current: Administrative services Excess (deficiency) of revenues over expenditures (114,876) 750, ,679 Other financing uses: Transfers out ( ) Net change in fund balances (deficit) (114,876) 133, ,679 Fund balances (deficit) at beginning of year (55.979) 218,436 Fund balances (deficit) at end of year $ $ $ (55.979) $ 500,

194 Total Nonmajor Capital Projects Funds $ 1,053, ,841 ( ) 299, $

195 TAX INCREMENTAL FINANCE DISTRICT I FUND

196 TAX INCREMENTAL FINANCE DISTRICT I FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents $ 1,394,444 $ 1, LIABILITIES Due to other governments $ 241,151 $ 127,375 FUND BALANCES Restricted 1,153, ,169 Tota11iabilities and fund balances $ 1,394,444 $ 1,395,

197 TAX INCREMENTAL FINANCE DISTRICT I FUND SCHEDULE OF EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Expenditures: Current: Administrative services $ 1,100 $ 114,876 $ (113,776) $ 128,957 Fund balances at beginning of year 1,268,169 I,268, 169 1,397,126 Fund balances at end of year $ \,267,069 $ s Cli J,776) $ 1.268,

198 TAX INCREMENTAL FINANCE DISTRICT III FUND

199 TAX INCREMENTAL FINANCE DISTRICT III FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash and cash equivalents Due from other governments $ 795,008 $ 6, ,378 28,148 Total assets $ ~$=~66~8;,;:,5~2=6 FUND BALANCES Restricted $ 801,549 ~$=~66=8~,5~2~6 150

200 TAX INCREMENTAL FINANCE DISTRICT III FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budget Actual Final Budget Actual Revenues: Property taxes $ $ $ $ 893,734 Expenditures: Current: Administrative services 21,100 20, ,334 Capital outlay: Community development Total expenditures 68,144 20, Excess of revenues over expenditures 681, ,038 68, ,400 Other financing uses: Transfers out ( ) (617,015) 465 (610,081) Net change in fund balances 64, ,023 68, ,319 Fund balances at beginning of year 668, , Fund balances at end of year $ 732,902 $ 801,549 $ $ 668,

201 TAX INCREMENTAL FINANCE DISTRICT V FUND

202 TAX INCREMENTAL FINANCE DISTRICT V FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 LIABILITIES Accounts payable $ $ 1,140 Advances from other funds 55,979 54,839 Total liabilities 55,979 55,979 FUND DEFICITS Unassigned (55,979) (55,979) Total liabilities and fund deficits $ $ 152

203 TAX INCREMENTAL FINANCE DISTRICT V FUND SCHEDULE EXPENDITURES AND CHANGES IN FUND DEFICITS - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budzet Actual 'innl Budget Actual Expenditures: Current: Administrative services $ $ $ $ 1,623 Fund deficits at beginning of year (55,979) (55,979) (54,356) Fund deficits at end of year $ (55,979) $ (55,979) $ $ (55,979) 153

204 TAX INCREMENTAL FINANCE DISTRICT VI FUND

205 TAX INCREMENTAL FINANCE DISTRICT VI FUND BALANCE SHEET APRIL 30, 2016 WITH COMPARATIVE AMOUNTS FOR APRIL 30, 2015 ASSETS Cash $ 444,121 $ 163,597 Due from other governments 15 Advances to other funds Total assets $ 500,115 $ 218,436 FUND BALANCES Restricted $ 500,115 $ 218,

206 TAX INCREMENTAL FINANCE DISTRICT VI FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT) - BUDGET AND ACTUAL WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED APRIL 30, Original and Final Variance with Budzet Actual Final Budget Actual Revenues: Property taxes $ 250,000 $ 282,779 $ 32,779 $ 253,812 Expenditures: Current: Administrative services 201,100 1, ,000 2,629 Excess of revenues over expenditures 48, , , ,183 Fund balances (deficit) at beginning of year 218, ,436 (32,747) Fund balances at end of year $ 267,336 $ 500,115 $ 232,779 $ 218,

207 MAJOR ENTERPRISE FUND

208 WATERWORKS AND SEWERAGE FUND

209 WATERWORKS AND SEWERAGE FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL Original and Final Variance with Budget Actual Final Budget Operating revenues: Charges for services: Water sales $ 5,630,612 $ 5,197,233 $ (433,379) Sewer charges 1,751,775 1,800,544 48,769 Penalties 145, ,637 9,637 Sales of water meters 10,000 21,987 11,987 Other Total operating revenues 7,545,537 7,205,813 ( ) Operating expenses: Operations 6,158,012 5,735, ,437 Depreciation 1.115,000 1,090, Total operating expenses 7.273, Operating income 272, , ,008 Nonoperating revenue (expense): Interest income 2,500 6,213 3,713 Interest charges and fees ( ) ( ) 4,000 Total nonoperating revenue (expense) ( ) (200,026) 7,713 Increase in net position 64, , ,721 Net position at beginning of year, as restated , Net position at end of year $ $ $ Other budgeted expenditures: Capital outlay $ $ $

210 FIDUCIARY FUNDS

211 PENSION TRUST FUNDS

212 PENSION TRUST FUNDS COMBINING STATEMENT OF FIDUCIARY NET POSITION APRIL 30, 2016 WITH COMPARATIVE TOTALS FOR APRIL 30, 2015 ASSETS Firefighter's Police Pension Pension Total Total Cash and cash equivalents $ 26,960 $ 50,000 $ 76,960 90,575 Accrued interest receivable 47,143 35,373 82,516 81,536 Investments, at fair value: Corporate bonds 3,370,233 3,059,444 6,429,677 6,489,883 Equity mutual funds 11,138,518 11,940,079 23,078,597 23,828,269 Equity securities 417, , ,696 Money market mutual funds 537, ,547 1,385,248 2,132,906 State and local obligations 185, , ,282 U.S. government and agency securities 3,283,018 5,490,115 8,773,133 8,619,914 Prepaid expense 4, , Total assets 19,010,442 21,425,577 40,436,019 41,899,959 LIABILITIES Accounts payable 9,525 14,076 23, NET POSITION Net position restricted for pensions $ 19,000,917 $ 21,411,501 $ 40,412,418 $ 41,886,

213 PENSION TRUST FUNDS COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION WITH COMPARATIVE TOTALS FOR THE YEAR ENDED APRIL 30, Firefighter's Police Pension Pension Total Total Additions: Contributions: Employer $ 1,085,233 $ 1,170,136 $ 2,255,369 $ 1,942,184 Employee 258, , , ,416 Total contributions 1,343,989 1, ,818,087 2,558,600 Investment income (loss) (320,524) (277,947) (598,471) 2,571,877 Less investment expense (71,382) (43,022) (114,404) (125,417) Net investment income (loss) (391,906) ( ) ( ) 2,446,460 Total additions ,212 5,005,060 Deductions: Administrative expenses 56,024 49, , ,031 Benefit payments 1,710,576 1,708,908 3,419,484 3,159,639 Refunds of employee contributions 53,430 53,430 58,067 Total deductions 1, , ,578, ,737 Net increase (decrease) in net position (814,517) (659,194) (1,473,711) 1,674,323 Net position at beginning of year 19, ,070,695 41, Net position at end of year $ ,917 $ 21,4] 1.50 I $ 40,412,418 $ 41,