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HomeMy WebLinkAboutCAFR2002 - _ _ ., .INP, t I ' - - VILLAGE - - - OF MORTON GROVE, ILLINOIS - - COMPREHENSIVE ANNUAL FINANCIAL REPORT t FROM JANUARY 1, 2002 THROUGH •1. DECEMBER 31, 2002 l ' rr I VILLAGE OF MORTON GROVE, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2002 — Prepared by Finance Department David O. Erb — Finance Director/Treasurer ■•• •Im .•=1 Im Mir %la mem •■•••• ■la VILLAGE OF MORTON GROVE, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION Principal Officials Organization Chart ii Certificate of Achievement for Excellence in Financial Reporting iii Letter of Transmittal iv-xvi FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 1-2 T GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit 3-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Discretely Presented Component Unit 7-8 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 9-12 Combined Statement of Revenues, Expenses and Changes in Retained Earnings -Proprietary Fund Type 13 Statement of Cash Flows - Proprietary Fund Type 14 Combined Statement of Changes in Plan Net Assets - All Trust Fund Types 15 Notes to Financial Statements 16-53 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress Illinois Municipal Retirement Fund 54 _ Police Pension Fund 55 Firefighters' Pension Fund 56 Schedule of Employer Contributions • Illinois Municipal Retirement Fund 57 Police Pension Fund 58 Firefighters'Pension Fund 59 VII LAGE OF MORTON GROVE, ILLINOIS TABLE OF CONTENTS (Continued) — Page(s) FINANCIAL SECTION(Continued) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP — STATEMENTS AND SCHEDULES GOVERNMENTAL FUND TYPES — GENERAL FUND Balance Sheet 60 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual 61 Schedule of Expenditures - Budget and Actual 62-65 — SPECIAL REVENUE FUNDS Combining Balance Sheet 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 67-68 Municipal Employees Retirement Fund Balance Sheet 69 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual 70 Motor Fuel Tax Fund — Balance Sheet 71 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual 72 Community Development Block Grant Fund Balance Sheet 73 — Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 74 Revolving Equipment Replacement Fund Balance Sheet 75 — Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 76 VILLAGE OF MORTON GROVE, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Continued) GOVERNMENTAL FUND TYPES (Continued) SPECIAL REVENUE FUNDS (Continued) Commuter Parking Facility Fund Balance Sheet 77 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 78 9-1-1 Emergency Telephone System Fund Balance Sheet 79 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual 80 Waukegan Road TIF Fund Balance Sheet 81 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual 82 Economic Development Fund Balance Sheet 83 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 84 Lehigh/Ferris TIF Fund Balance Sheet 85 Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual 86 DEBT SERVICE FUND Balance Sheet 87 • Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual 88 VILLAGE OF MORTON GROVE, ILLINOIS TABLE OF CONTENTS (Continued) — Page(s) FINANCIAL SECTION(Continued) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP — STATEMENTS AND SCHEDULES (Continued) GOVERNMENTAL FUND TYPES (Continued) — CAPITAL PROJECTS FUNDS Combining Balance Sheet 89 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 90 Capital Project Fund Balance Sheet 91 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual 92 1999 Bond Issue Proceeds Fund Balance Sheet 93 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 94 PROPRIETARY FUND TYPE ENTERPRISE FUND — Water and Sewer Fund Balance Sheet 95 Statement of Revenues, Expenses and Changes in Retained Earnings 96 Statement of Cash Flows 97 FIDUCIARY FUND TYPE TRUST FUNDS Combining Statement of Plan Net Assets - Pension Trust Funds 98 Combining Statement of Changes in Plan Net Assets - Pension Trust Funds 99 VILLAGE OF MORTON GROVE, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Continued) ACCOUNT GROUP GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets -by Source 100 Schedule of General Fixed Assets -by Function and Activity 101 Schedule of Changes in General Fixed Assets - by Function and Activity 102 COMPONENT UNIT - PUBLIC LIBRARY Combining Balance Sheet 103 Statement of Revenues, Expenditures and Changes in Fund Balance 104 _ STATISTICAL SECTION General Governmental Revenues by Source and Other Financing Sources - Last Ten Fiscal Years 105 General Governmental Expenditures by Function and Other Financing Uses - Last Ten Fiscal Years 106 Property Tax Levies and Collections 107 Assessed and Estimated Actual Value of Taxable Property- Last Ten Fiscal Years 108 Ratio of Net General Obligation Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita- Last Ten Fiscal Years 109 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures and Other Financing Uses - Last Ten Fiscal Years 110 Schedule of Revenue Bond Coverage 111 Property Tax Rates - All Direct and Overlapping Governments 112 Schedule of Direct and Overlapping Bonded Debt 113 Equalized Assessed Valuation (EAV) and Other Demographic Information 114 Permit Fees and Value of Construction 115 Principal Taxpayers 116 Miscellaneous Statistics 117 Smo don. U INTRODUCTORY SECTION +r i - be her L i 1 C t VILLAGE OF MORTON GROVE, ILLINOIS PRINCIPAL OFFICIALS AND OFFICERS January 1, 2002 ELECTED TERM/APPOINTMENT ENDS Daniel D. Scanlon Mayor April 2005 Daniel DiMaria Trustee April 2007 Larry Gomberg Trustee April 2005 James Karp Trustee April 2005 Teresa Hoffman Liston Trustee April 2005 Rick Krier Trustee April 2007 Dan Staackmann Trustee April 2007 Marilyn Sneider Acting Village Clerk April 2005 APPOINTED Ralph E. Czerwinski Village Administrator Pro-Tern January 1, 2003 Timothy Angell Economic Development Director January 1, 2003 Gabriel Berrafato Corporation Counsel January 1, 2003 Ralph E. Czerwinski Fire Chief January 1,2003 David O. Erb Director of Finance/Treasurer January 1, 2003 Ed Hildebrandt Building Commissioner January 1, 2003 George hicledon Police Chief January 1, 2003 Craig Karas ESDA Director January 1, 2003 Bridget Wachtel Assistant Village Administrator January 1, 2003 _ Neal C. Walter Village Prosecutor January 1, 2003 — i L y O O co 0 Li C — c ^O .0 d G VI era g t . �t .v V 0■ _ u b eg ran q • a. V DD t) c Rt 7 • ^O -- on U V . < 44 aci U $, c .. O "0 C © E .... — a, on 4,1 nici L 0 •I-, C 0 c v° m u o �, �o�... o w E C. •E > .a C) C7 .1 L c O W © G y (..) ^O = o o q tn C o.2 en Oa.0.l U cc. F. U•.0 0 C d U O L c ,•j es o W A o c W n A h a o ,b, q U o al A Oo m ° o v °' o '> wC7a. ¢ 3warlw Et Ca Q o co '5 c lag al / • . O c U 0. 0 c0 04 S i a ° o o c °. C.4 s� W 0. > c 0 0. v m a . .� CU — d = "0 _. j > O c c y ° W - h 0 W 0co w Na G to R 7 y e7 - c •� a. 6 la . U O u C H d0 o .� .0 5 © d U a, U -I,, Y O b y U 0 y m a. v 5 z c on '� c q-cc N\ wF, > 3 � „ c o R L m 0 • \ j L ,_ = m v_, O y \ I W all > 0 C aa) q .-+ _ CL N F. a) U t N I al \\ I a tit w [n 14 C4 I L v y > x c 0.0 en _ , U O ii,d, °� u� v �U c C a? 0 L, bi) as m > m psi _ _ Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Morton Grove, Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31,2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and financial reporting. ° 4 F °e President Qco SEAL Executive Director iii /ea ,== Awe. tat •■••■ mat 4r Village of gMorton grove June 30, 2003 To: The Citizens of the Village of Morton Grove, Village President Daniel D. Scanlon, Board of Trustees, and Other Interested Parties INTRODUCTION • The Comprehensive Annual Financial Report(CAFR) of the Village of Morton Grove (Village) ti for the fiscal year ended December 31, 2002, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the Village. To the best of our knowledge and belief,the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the Village. Ml disclosures are included which are necessary to enable the reader to gain an understanding of the Village's financial activities. Although the Village is only required to issue an annual audited financial statement, we are issuing the CAFR to clearly communicate the Village's financial story and enhance understanding of the traditional governmental financial reporting model. The CAFR is prepared according to the guidelines recommended by the Government Finance Officer's Association (GFOA) of the United States and Canada. The GFOA awards Certificates of Achievement for Excellence in Financial Reporting to governments with annual financial reports judged to conform substantially to generally accepted accounting principles established by the Governmental Accounting Standards Board (GASB). To qualify, the CAFR must be formatted in any easily readable and efficiently organized manner. The Village of Morton Grove was awarded a Certificate of Achievement for its Annual Financial Report for the period ended December 31, 2001, for the 14th consecutive year. It is our belief that the accompanying Financial Report will meet program standards and is being submitted to the Government Finance Officer's Association for review. In conformance with GASB pronouncements concerning financial report presentations, this report is organized into the following three sections: Part 1: The Introductory Section contains this letter of transmittal from the Village Administrator and the Village Finance Director. This letter contains a discussion concerning the community, its economic outlook, and financial highlights for the fiscal period and other presentations to give the reader a general overview. Part 1 also provides a listing of Village officials and department heads and an organizational chart of Village operations. iv Richard T. Flickinger Municipal Center 6101 Capulina Avenue • Morton Grove. Illinois 60053-2985 h Tel: (847) 965-4100 • TDD (847) 470-5249 • Fax: (847) 965-4162 • mma imm - `a, mimm mlne, Part 2: The Financial Section contains the Independent Certified Public Accountant's opinion and the Village's financial statements. The financial report reflects the "pyramid" statement format as required by GASB Statement 1. Under this method,the General- Purpose Financial Statements are presented first(at the"top"), and are comprised of all the "combined" statements, exhibits, and notes to the financial statements for all the funds. This will provide the reader with a general overview of the Village's financial condition. As more levels of reporting data are desired,the reader may descend through ^ the"pyramid"to the more detailed financial statement sections which will be presenting data by fund type (i.e., Governmental,Proprietary, Fiduciary) and from within fund type, by individual fund. — Part 3: The Statistical Section contains selected financial and demographic information, generally on a multi-year basis. REPORTING ENTITY The financial reporting entity(the government) includes all of the funds and account groups of the primary government(i.e.,the Village of Morton Grove as legally defined), as well as all of its component units (Municipal Employees' Retirement Fund and Morton Grove Public Library). Component units are legally separate entities for which the primary government is financially accountable. The Municipal Employees' Retirement Fund's function is mainly to collect tax revenues and remit them to the private insurance company that administers the plan. For this reason, the Fund is a "blended" component unit and its activities are included on the report as a special revenue fund. The Morton Grove Public Library is a separate, semi-autonomous entity with its own governing board elected by the eligible voters of the Village and operating under the Illinois Local Library Act (75 ILCS 5). However, the Village of Morton Grove Board is required to approve its annual budget, annual tax levy, and all types of debt. For this reason, the public library's activities are included in the report as a"discretely presented" component unit. Pursuant to standards promulgated by the Governmental Accounting Standards Board (GASB#14), "discretely presented"component units are reported in a separate column in the Combined Financial Statements to emphasize that they are legally separate from the primary government and to differentiate their financial position, results of operation and cash flows from those of the primary government. The Morton Grove Park District and the various school districts located in Morton Grove have not met any of the established criteria for inclusion as component units under the reporting entity, and are therefore excluded from this report. The Village of Morton Grove provides a full range of services which includes police and fire protection; paramedic services; solid waste disposal; water distribution, maintenance of highways, streets and other infrastructure; building code enforcement; planning and community development activities; and health and human services. v The Village Board has adopted Vision and Mission statements, which serve as a focus for policy _ discussions regarding the future of the community. The Vision and Mission statements are: Vision Statement To preserve and enhance the overall quality of life within the Village. To provide quality municipal services and infrastructure improvements in a cost effective manner so that the Village is held in high esteem by residents, municipal organizations and professional associations. To participate in advantageous intergovernmental activities and maintain positive relationships with other government agencies. — To provide quality and affordable housing in livable residential neighborhoods. To preserve and enhance the open space and recreational facilities now available within the community. - To promote positive economic development within the framework of reasonable codes and zoning standards to facilitate future business and industrial development. To be an innovative "leadership" community while avoiding highly experimental policies or programs. Mission Statement • To provide municipal services, public improvements and economic development activities in an efficient and effective manner in order to preserve and enhance the quality of life within the community. — VILLAGE FINANCIAL ACTIVITY AND OTHER HIGHLIGHTS DURING 2002 1. The Village Board adopted Ordinance 02-01 authorizing a redevelopment agreement for the Waukegan Road TIF District redevelopment area`B". As part of this agreement, the Village sold property on Waukegan Rd. to Gary McGrath for the construction of an Acura automobile dealership. 2. The Village adopted Ordinance 02-07 authorizing the acquisition of 6055 through 6061 Dempster Street for a total cost of$360,000. The properties were acquired to be land banked for possible future redevelopment within the Dempster Street Corridor. 3. Adoption of ordinance 02-13 establishing an amended agreement with Abt Electronics for the payment of$2,000,000 effective once Abt relocates operations outside the Village of Morton Grove. vi 4. Adoption of Ordinance 02-27 establishing a tax collection agreement between the Village and Northern Illinois Gas. As of July 1, 2002,Nicor will collect $.02 per therm of gas delivered and billed for all non exempt users within the Village. Tax collections will be remitted to the Village on a monthly basis. 5. Several borrowings were done during 2002 for the benefit of economic development. Ordinance 02-30 authorized the Village to refinance two existing bank notes at a lower rate of interest in the amount of$5,300,000. Ordinance 02-51 authorized an agreement �- with Northern Trust Company for execution of a note for Village to borrow$800,000 for financing the acquisition of property and related redevelopment expenses in the Lehigh/Ferris TIF District. Ordinance 02-52 authorized an agreement with Northern Trust Company for execution of a note for Village to borrow$360,000 for financing the acquisition of property at 6055-6061 Dempster Street. A BRIEF INTRODUCTION ABOUT THE VILLAGE AND ITS SERVICES The Village of Morton Grove, Cook County, Illinois, was incorporated in 1895. It is a near north suburb of Chicago, located ten miles northeast of O'Hare International Airport. The Village encompasses an area of five square miles and has a population of 22,451 residents according to the 2000 census. Almost one-third of the land area is dedicated to recreational purposes between land owned by either the County Forest Preserve or the Park District. This has a positive effect on the quality of life enjoyed by Village residents. The Village is a diversified and balanced community of residential and commercial structures with light to medium manufacturing and warehouse facilities. Village residents are served by five elementary and two secondary school districts. Morton Grove's principal growth took place during the late 50's and early 60's when the population increased from 7,427 to 20,533 residents. The Village has been built out primarily '— with residential land uses. Significant industrial, office and commercial land uses are also located in the community. Very little vacant land remains for commercial and office development or light manufacturing. The Village of Morton Grove is governed as a home rule community under Illinois law and operates under a President/Trustee form of government with a full-time Administrator. The home rule status was confirmed by a special referendum held on March 18, 1980. Under home rule powers,the Village is permitted to carry out its own governing procedures except where specifically prohibited by the State Legislature. The Village President and a six-member Board of Trustees are elected at large for four-year terms. The President, with concurrence from the Board, appoints the Village Administrator and all Department Directors. The Village Administrator is the Chief Administrative Officer who oversees the day-to-day operations of the Village. The Village has 164 full-time employees and 52 part-time/seasonal �— employees who work in any one of seven departments: police,fire, public works, community and economic development, health and human services, code enforcement, finance or administration. vii FINANCIAL SUMMARY VILLAGE BASIS OF ACCOUNTING: The Village's governmental funds (general, special revenue, debt service, and capital projects) are maintained and reported on the modified accrual basis of accounting, whereby revenues are — recognized when measurable and available, and expenditures are recognized when the related liability is incurred. The proprietary(water and sewer) and fiduciary(police and firefighters' pension) funds are accounted for using the accrual basis of accounting recognizing revenues when earned and expenses when incurred. INTERNAL CONTROL: Village management is responsible for establishing and maintaining internal control designed to ensure assets of the Village are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of fmancial statements in conformity with generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that(1)the cost of a control should not exceed the benefits likely to be derived; and (2)the valuation of cost and benefits requires estimates and judgments by management. The Village has a complete set of internal controls that are reviewed annually as part of the independent audit. Cost effective management and accounting internal control recommendations are generally implemented by the Village. -- We believe the Village's internal accounting controls adequately safeguard assets and provide reasonable assurances of the proper recording of financial transactions. We also subscribe to the theory that accounting policies, systems and procedures along with internal controls, should be constantly,monitored and revised to meet changing requirements and also to provide credible and timely information in the most efficient manner. BUDGETARY CONTROL: Budgetary appropriations for the operations of various Village departments are established through the adoption of an annual Budget Ordinance by the Village Board of Trustees. On — November 10, 1997, the Village Board of Trustees approved Ordinance 97-53 that changed the fiscal year end date from April 30 to December 31. This was done to align property tax receipts with the year they are intended to finance, take advantage of more favorable construction rates (bids are done in the fall rather than early summer) and to allow the budget preparation process to begin in the fall when municipal operations are generally at a more manageable level. Budgetary control over expenditures at the line-item level is facilitated through the maintenance viii of an encumbrance system for purchase orders. Encumbered amounts lapse at year-end. However, encumbrances generally are reappropriated as part of the following year's budget. Budget authority is flexible in that the Village Administrator may make certain transfers within departments when considered necessary for the proper administration of Village government. ir- The Village Board may revise the budget at any time through interdepartmental transfers within any fund by passage of a resolution upon recommendation by the Village Administrator. The resolution would not change fund totals. Transfers, however, between two or more funds or — additional appropriations to any fund require the passage of a Supplemental Appropriations Ordinance. GENERAL GOVERNMENTAL FUNCTIONS: The Capital Projects Funds are not included in any of the tables discussing the general governmental functions of this transmittal letter. As the amount of Capital Projects will vary greatly from year-to-year, data is purposely excluded from tables in the transmittal letter to avoid distorting comparisons from year-to-year. REVENUE: The following schedule presents a summary of General, Special Revenue, and Debt Service Fund revenues of the primary government for the fiscal year ended December 31, 2002, and the amount and percentages of increases and decreases in relation to prior year revenues. INCREASE(DECREASE) `– % OF FROM 12/31/01 SOURCE 12/31/02 TOTAL AMOUNT % Taxes $15,904,308 50.49 $(1,246,290) (7.27%) Licenses & Permits 1,143,947 3.63 313,081 37.68 Intergovernmental 633,381 2.01 570,543 907.96 • E 911 Surcharge Fees 221,018 .70 37,871 20.68 " Charges for Services 359,990 1.14 (772) (.21) Fines 239,202 .76 (1,787) (.74) Investment Income 99,563 .32 (61,467) (38.17) Cable TV and Infrastructure 293,901 .93 36,665 14.25 Maintenance Fees Other Miscellaneous 2,287,808 7.26 2,158,956 1675.53 Total Revenues 21,183,118 67.24 1,806,800 9.32 Operating Transfers-In 2,408,826 7.65 1,131,016 88.51 Installment Note Proceeds 6,100,000 19.36 5,625,000 1184.21 Sale of Property/Equipment 1,809,575 5.75 1,777,660 5569.98 Total Other Financing Sources 10,318,401 32.76 8,533,676 478.15 Total Revenue& Other Financing Sources $31,501,519 100.00% $10,340,476 48.87% ix Total revenue and other sources for the general governmental functions totaled $31,501,519 for the fiscal year ended December 31, 2002. This is an increase of$10,340,476 or 48.87% from the period ended December 31, 2001. The primary increase in total revenue is due to 1) the receipt of installment note proceeds in the amount of$6,100,000 which includes $5,300,000 of refinanced notes; 2) the sale of property for $1,794,090 located within the Waukegan TIF boundaries; 3)payments from Abt Electronics in –. the amount of$2,000,000 as negotiated. The sum of these three revenue increases from last year account for 95.5% of the total revenue increase from years 2001 to 2002. Like most municipalities across the nation, the largest source of revenue to the Village is taxes. Tax revenues from the General, Special Revenue and Debt Service Funds are primarily — comprised of ten distinct resources summarized below with prior year comparisons: INCREASE (DECREASEI SOURCE 12/31/02 12/31/01 AMOUNT Sales Tax $ 6,418,577 $ 7,917,255 $(1,498,678) (18.93)% PropertyTax–General 5,408,575 5,122,935 285,640 5.58 Property Tax–TIF 75,887 - 75,887 100.00 State Income Tax 1,483,734 1,614,044 (130,310) (8.07) Telecommunications Tax 782,602 790,737 (8,135) (1.03) — Real Estate Transfer Tax 444,372 385,164 59,208 15.37 Replacement Tax 197,403 248,051 (50,648) (20.42) Electric Consumption Tax 941,790 384,162 557,628 145.15 Gas Utility Tax 106,865 - 106,865 100.00 Other Tax 44,503 56,688 (12,185) 21.49 Total Taxes $15,904,308 $16,519,036 $ (614,7281 (3.721% Tax revenue from the general governmental functions totaled $15,904,308 for the fiscal year ended December 31, 2002. This is a decrease of$614,728 or 3.72% from the prior period ended — December 31, 2001. Sales taxes decreased by $1,498,678 or 18.93%,the largest revenue category of general governmental revenue. The decrease in this account is primarily due to the loss of Abt Electronics in May 2002. Electric consumption tax in total only slightly increased. Beginning in 2002, 100% of all electric consumption tax was allocated to the General fund, whereas in previous years the allocation was allocated between the General and Capital Projects Funds as budgeted. — Beginning in July 2002 the Village initiated a new gas utility tax. For the upcoming year, the Village budgeted receipts for this tax of$310,000. The majority of taxes collected are sales taxes rather than property taxes as has been the case during most of Morton Grove's history. This condition has met an objective set by the Village at x — the beginning of the decade to lower reliance on local property taxes. In the 1990 fiscal year, 54.1% of the taxes collected for operations of the General, Special Revenue, and Debt Service Funds came from the local property tax. With the enactment of the local option sales tax in September 1992 and the increase in that rate in January 1995, along with the enactment of the telecommunications tax and electric consumption tax,the general property tax share dropped to 33.07%in 2002. The decreasing reliance on the property tax is important for two reasons. One,property tax caps — in Cook County are a reality. Although the Village is a home rule community(exempt from the cap at this time),the pressure will always exist for the Village to follow the tax cap provision whether home rule or not. Second,to maintain a favorable tax base for both commercial and residential property owners, it is important property taxes remain stable. • EXPENDITURES: The following schedule presents a summary of General, Special Revenue, and Debt Service — Fund expenditures for the fiscal year ended December 31, 2002, and the percentage of increases and decreases in relation to prior year amounts. ... INCREASE (DECREASE) % FROM 12/31/01 FUNCTION 12/31/02 TOTAL AMOUNT % General Government $ 2,711,127 9.05% $ 266,548 9.83% Public Safety 9,378,760 30.30 582,505 621 Streets & Sidewalks 2,122,891 7.08 (304,887) (14.36) — Sanitation 1,370,045 4.57 (29,967) (2.19) Vehicle Maintenance 544,968 1.82 (149,435) (27.42) Health & Human Services 465,655 1.55 153,865 33.04 .� Community Development 155,484 .52 (28,497) (18.33) Building & Inspectional Services 606,281 2.02 (121,371) (20.02) Economic Development 1,315,612 4.39 653,376 49.66 Village Share of Retirement Costs 318,610 1.06 41,893 13.15 .– Principal Debt Retirement 1,240,479 4.14 77,451 6.24 Interest& Fiscal Charges 1,264,853 4.22 28,000 2.21 Total Expenditures 21,494,766 71.73 1,169,481 5.44 Principal Refundings 6,035,000 20.14 6,035,000 100.00 Operating Transfers-Out 2,436,576 8.13 1,252,116 51.39 Total Other Financing Uses 8,471,576 28.27 7,287,116 86.02 Total Expenditures and Other Financing Uses $ 29,966,342 100.00% S 8,456,597 28.22% Total expenditures for the general governmental functions totaled $29,966,342 for the fiscal year ended December 31, 2002. This is an increase of$8,456,597 or 28.22% from the year ended December 31, 2001. Much of the change is due to expenditures that are not incurred by the Village on a regular basis such as installment note refinancing and property acquisitions. xi — The largest fluctuations from the prior year were in Principal Debt Retirement for which two Waukegan TIF loans were paid in full and refinanced at a lower rate of interest. There was also a 6.21%increase in Public Safety that was primarily the result of an increase in personnel costs. _ Lastly, the increase of 49.66%in Economic Development is primarily due to a property purchase within the Waukegan TIF which was later sold during the year. ENTERPRISE FUND: The Enterprise Fund is established to account for the fmancing of self-supporting municipal activities that render services generally on a user-charge basis. The most significant attribute of an Enterprise Fund is that by financing this activity primarily with user charges and, using accounting principles similar to those used in private industry, it is possible to show whether the — fund is operating at a profit or loss. The Water and Sewer Fund had a net gain of$181,164 for the fiscal year ended December 31, 2002. This is an increase of$712,427 from the net loss for the period ended December 31,2001. The net gain is primarily due to delaying expenditures for infrastructure improvements which lowered total expenditures from years 2001 to 2002. It should also be pointed out that cash outlays for Capital Equipment and Debt Reduction are not reflected as "expenditure" as they are in the General Governmental Funds discussed earlier. On — the other hand, depreciation expense that is a non-cash outlay is reflected as an expense. These treatments are in accordance with generally accepted accounting principles (GAAP) and will have differing effects on the "change in cash position"versus "net income." A reconciliation of — cash flows and operating income can be found on page 14 of this CAFR. PENSION TRUST FUNDS: Pension Trust Funds are established for the purpose of accounting for money and property held by a governmental unit in the capacity of trustee, custodian or agent for individuals. Pension Trust Funds that the Village has in its custody are the Police and Firefighters' Pension Funds. For 2002,there was an increase in the combined assets for the Police and Fire Pension. The — change in plan assets was an increase of$272,301 to $39,718,517 for the fiscal year ended December 31, 2002. Broken down by fund, the Fire Pension assets decreased $324,622 from the prior year, while the Police Pension assets grew$596,923 during the same period. This was due to the fact that the Police Pension Fund had a larger portion of its portfolio (90% vs. 55%) allocated into fixed — income investments than the Fire Pension. The losses in the equities portion of the portfolio offset gains of the fixed income investments. Since the Fire Pension held a larger amount of equities in its portfolio, the impact from the loss in value was greater than for the Police Pension. The combined net assets held in trust for pension benefits for both pension funds now total $39,733,971. This represents an increase of 0.69% from the previous fiscal period. As of xii January 1, 2003,the Fire and Police Pension Funds were funded at 71.8% and 76.7%, respectively. DEBT ADMINISTRATION: The ratio of net general obligation bonded debt to equalized assessed valuation and the amount of bonded debt per capita are useful indicators of the Village's debt position. This data as of December 31, 2002, is as follows: Ratio of Debt to Equalized Assessed Debt -. Amount Valuation (2001) Per Capita Net General Obligation Debt' $227,660,790 4.53% $1,232.05 During the fiscal year,the total long-term debt obligation of the Village decreased from $30,364,000 to $29,250,433. A summary of the long-term debt as of December 31, 2002, is as follows: • Summary of Long-Term Debt3 1999 General Obligation Bonds $ 13,470,000 r/ General Obligation Bank Promissory Note for projects related to TIF Fund and Economic Development Fund 3,047,348/ Tax-exempt bank note for acquisition of properties and related preparation expenses for Waukegan TIF Road District 5,300,000'/ Installment notes on various Village equipment 543,887 ✓ Tax-exempt bank note for acquisition of property for the Dempster Street Corridor 320,000 Taxable bank notes for acquisition of properties for the Lehigh/Ferris TIF District 985,000 ✓ Taxable bank note for acquisition of properties and related preparation Expenses for Lehigh.Ferris TIF 800,000 Tax exempt bank note for property acquisition for redevelopment of Dempster St. corridor 360,000 IEPA loan for South Central &Parkview Projects 3,866,351 V IEPA loan for mandated sewer repair 557,847 V Total long-term debt 519_,Z11,433 The 1999 General Obligation Bond is rated Aa3. To be supported from property tax levy and is considered general obligations of the Village supported by its"full faith and credit." 2 Excludes IEPA Revolving Loan for mandated sewer rehabilitation project as considered to be self- supporting from sewer charges. The total debt indicated above is net of the year-end fund balance in the Debt Service Fund. 3 Rounded to the nearest thousand. xiii CASH MANAGEMENT: The Village's investment policies are governed by Illinois Statutes. Idle cash during the period — was invested in secured demand deposits through the Illinois Funds (formerly known as the Illinois Public Treasurers' Investment Pool-IPTIP) managed through the State Treasurer's Office; the Illinois Government Cash and Investment Fund (managed by the trust department of _ a major Illinois banking institution); the Illinois Metropolitan Investment Fund (intermediate U.S. government pool between 1-5 years managed by the trust department of a major Illinois banking institution); and other obligations of the U.S. Treasury or a U.S. Government Agency. — Collateral is required for demand deposits and any certificates of deposit over the amount covered by the Federal Deposit Insurance Corporation. Obligations currently pledged as collateral include various Governmental Revenue Bonds and Federal National Mortgage Association Bond Pools (FNMA pools). The amount of interest income by fund for the period ended December 31, 2002, and the preceding period is as follows: Investment Income by Fund 2002 2001 — General Fund $ 20,632* $ 62,478* Special Revenue Funds 40,446 36,765 — Debt Service Funds 38,515 61,787 Capital Projects Funds 23,862 322,090 Enterprise (Water& Sewer) Fund 3,033 4,488 Investment Income before Pension Funds 126,259 487,608 Firefighters &Police Pension Funds 1,575,792 1,576,877 Total Investment Income $ 1 702,280 $ 2.064,485 * Includes $0 and $6,531 received during 2002 and 2001,respectively, from interest on — undistributed property tax from the Cook County Treasurer. Total investment income for the Village decreased $366,434 or 18%from the year ended _ December 31, 2001. All groups showed a decrease due to the extreme drop in interest rates over the past year and fewer surplus funds on hand for investment. RISK MANAGEMENT: The Village is currently self-insured for workers' compensation, general liability, public officials liability, auto collision and liability, property and casualty, and boiler and machinery as a member of the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization - consisting of neighboring municipalities and special districts in Northeastern Illinois which formed an association under the Illinois Intergovernmental Agreement Statute to pool risk xiv management needs. Along with providing insurance needs, IRMA also provides a claim/litigation management program; extensive safety/loss control consulting and training; risk information system and financial reporting services for its members. The Village has participated in many of these programs as well as its own safety programs to help minimize accident related losses. Coverage through IRMA has provided claims over the $1,000 deductible at various levels. PROSPECTS FOR THE FUTURE The calendar year 2003 budget was adopted on a balanced basis. The property tax levy to support this budget was approved by the Board of Trustees of the Village on December 9, 2002. Although balanced,the General Fund required a significant amount of available fund balance. The use of fund balance to the balance the budget cannot be sustained long-term without detrimental affects. Abt Electronics,the Village's single largest taxpayer, ceased doing business in Morton Grove as of May 2002. As part of a previously negotiated agreement between The Village and Abt Electronics, payments totaling $2,000,000 were paid to the Village once Abt vacated their Morton Grove facility. As of the end of fiscal year 2002, payments have been made in full. The purpose of this settlement was to lessen the effect of suddenly losing the sales tax revenue generated from the Abt business while allowing the Village more time to seek alternative methods for additional revenue. During the course of the year, Menards Home Improvement opened up a new facility in Morton Grove, thus lessening the effect of the lost sales tax revenue from Abt Electronics. In addition, McGrath Auto purchased a site from the Village on Waukegan Avenue and began construction for a new automobile dealership. Although the opening of Menards during 2002 and the anticipated opening of McGrath in 2003 are both positive developments for the Village, additional sources of revenue will be necessary to avoid cutbacks in Village services. The Village will continue to seek out new and profitable businesses for the area in order to generate additional diversified sources of tax revenue. There will also be future improvements to Dempster Street as well as the Lehigh/Ferris TIF. The Village believes that improving the overall appearance of main streets and shopping areas within the area will eventually increase the quality of life for Village residents as well as increase property values. The Village remains optimistic in the upcoming year for finding additional sources of revenue. Of course, nothing can be guaranteed. If additional sources of revenue do not materialize within a reasonable period of time, a decrease in Village services may eventually become inevitable. xv INDEPENDENT AUDIT Paragraph 8, Division 8, Section 3 of the Illinois Municipal Code requires an annual audit of a - municipality's funds and accounts by an independent certified public accountant appointed by _ the Village Board of Trustees. The accounting firm of Sikich Gardner& Co, LLP was selected to perform the audit for the fiscal year ended December 31, 2002, and their opinion is included in this report. CONCLUSION While the Village has adopted sound financial policies to meet all of its current short-term and long-term obligations, a continuous effort must be maintained to monitor the adequacy and diversity of revenue sources so the Village is not overly dependent on one source of revenue. Tight financial controls must be maintained to insure that expenditures are properly managed. This is especially evident in meeting ongoing service demands and unfunded Federal and State mandates while keeping tax increases to a minimum. ACKNOWLEDGMENTS This report is intended to provide complete and reliable information to the citizens of the Village of Morton Grove, its governing body, investors and creditors on the financial operations of the Village. The preparation of this report on a timely basis could not have been accomplished — without the efficient and dedicated services of the Department of Finance, as well as assistance from the Administrator's office. We would like to express appreciation specifically to Darlene Wrzala, Assistant Finance Director and Steven Drazner, Chief Accountant, as well as all other members who assisted and contributed to its preparation. We would also like to thank the Mayor and members of the Board of Trustees for their interest and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. Respectfully submitted, VILLAGE OF MORTON GROVE ralph E. Czerw. David O. Erb illage Administrator, Pro-Tem Finance Director/Treasurer xvi ■ L.. FINANCIAL SECTION ,L. 1 aims INDEPENDENT AUDITOR'S REPORT i.. k L S at S MEMBERS OF tile AMERICAN INSTITUTE OF Sikich Gardner & Co, LLP CERTIFIED PUBLIC ACCOUNTANTS lopAccountants & Consultants NOIS CPA SOCIETY 998 Corporate Boulevard Aurora, IL 60504 A Member of Sikich Group, LLC INDEPENDENT AUDITOR'S REPORT '" The Honorable President Members of the Board of Trustees Village of Morton Grove ..— Morton Grove, Illinois We have audited the general purpose financial statements and the combining, individual fund and — account group financial statements of the Village of Morton Grove, Illinois, as of and for the year ended December 31, 2002, as listed in the accompanying table of contents. These financial statements are the responsibility of the Village of Morton Grove, Illinois' management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Village of Morton Grove, Illinois, as of December 31, 2002, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion,the combining, individual fund and account group financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of the Village of Morton Grove, Illinois, as of December 31, 2002, and the results of operations of such funds and the cash flows of individual proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. - 1 - Mak Man Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining, individual fund and account group financial statements. The accompanying schedules and the supplemental data listed in the accompanying table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the Village of Morton Grove, Illinois. Such information has been subjected to the auditing procedures applied in the audit of the general purpose, combining, individual fund, and account group financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements and each of the combining, individual fund, and account group financial statements taken as a whole. The required supplementary information listed in the table of contents is not a required part of the general purpose financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures,which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However,we did not audit the information and express no opinion on it. The introductory and statistical information listed in the table of contents was not audited by us, and accordingly,we do not express an opinion thereon. IA:ex, As (lip Aurora, Illinois April 24, 2003 - 2 - Mina moms Aa ••••■ al% iLL-- ler i GENERAL PURPOSE FINANCIAL STATEMENTS L 4r L 1 ins _r a' a' (This page is intentionally left blank.) VILLAGE OF MORTON GROVE,ILLINOIS COMBINED BALANCE SHEET ALL FUND TYPES,ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT December 31,2002 ... (With Comparative Totals for 2001) • Governmental Fund Types Special Debt Capital General Revenue Service Projects ASSETS AND OTHER DEBITS ASSETS Cash and cash equivalents $ 2,694,528 $ 1,210,960 $ 413,895 $ 1,227,141 Investments - - 498,745 122,330 Receivables Property taxes 4,298,431 257,491 1,094,420 622,031 — Sales tax 1,182,300 97,086 118,770 44,641 State income tax - _ - - Accounts and allotments 366,928 94,957 Intergovernmental - - - - Accrued interest - _ - - Due from other funds 910,199 56,714 - - Prepaid items — Expenses/expenditures 82,719 - - Land held for resale - 140,000 - _ Escrow for excess losses-IRMA 436,070 - - _ Fixed assets-net - _ OTHER DEBITS Amount available in Debt Service Fund - _ Amount to be provided from building and inspectional service of bonds,contracts, notes and lease obligations payable and net pension obligation _ - - TOTAL ASSETS AND OTHER DEBITS $ 9,971,175 $ 1,857,208 $ 2,125,830 $ 2,016,143 a -3- — Proprietary Fiduciary Total Fund Type Fund Type Account Groups Primary Totals Trust General General Government Component Reporting Entity and Fixed Long-Term (Memorandum Unit (Memorandum Only) Enterprise Agency Assets Debt Only) Public Library 2002 2001 $ 13,031 $ 898,613 $ - $ - $ 6,458,168 $ 1,348,263 $ 7,806,431 $ 8,188,849 - 38,441,506 - - 39,062,581 35,677 39,098,258 39,958,144 - - - - 6,272,373 2,162,303 8,434,676 8,031,158 - - - - 1,442,797 - 1,442,797 2,144,345 .... - - - - - - - 139,862 461,418 - - - 923,303 - 923,303 1,000,462 - - - - - - - 22,748 - 391,619 - - 391,619 - 391,619 680,688 — - 2,233 - - 969,146 - 969,146 2,887,223 - - - - 82,719 31,076 113,795 222,655 - - - - 140,000 - 140,000 - 56,855 - - - 492,925 .. 492,925 1,467,929 6,838,482 - 21,596,929 - 28,435,411 2,406,209 30,841,620 28,160,324 — - - - 1,031,210 1,031,210 - 1,031,210 1,004,415 - - - 30,757,764 30,757,764 27,742 30,785,506 29,215,971 $ 7,369,786 $ 39,733,971 $ 21,596,929 $ 31,788,974 $ 116,460,016 $ 6,011,270 $ 122,471,286 $ 123,124,773 .a. (This statement is continued on the following pages.) _q_ VILLAGE OF MORTON GROVE,ILLINOIS COMBINED BALANCE SHEET(Continued) ALL FUND TYPES,ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT December 31,2002 • (With Comparative Totals 2001) Governmental Fund Types Special Debt Capital General Revenue Service Projects LIABILITIES,EQUITY AND OTHER CREDITS LIABILITIES _ Accounts payable $ 301,593 $ 260,857 $ 200 $ 312,676 Accrued salaries and wages payable 307,540 - - - Claims payable 130,280 - - - Compensated absences payable 7,302 _ - - — Accrued interest payable - - - - Deferred property tax revenue 4,298,431 257,491 1,094,420 622,031 Deferred revenue-other 436,070 - - - — Due to other funds 10,336 876,357 - 48,792 Deposits refundable 40,933 1,500 - 39,875 Installment contracts payable - - _ - Arbitrage payable - - - - a. Bonds payable - - - - Net pension obligation - - - - Total liabilities 5,532,485 1,396,205 1,094,620 1,023,374 EQUITY AND OTHER CREDITS Investment in general fixed assets - - - - Retained earnings-unreserved - - - - Fund balances(deficits) Reserved Prepaid items 82,719 - - - Land held for resale - 140,000 - - Village retirement plans - - - - Debt service - - 1,031,210 - ..., Unreserved-designated Escrow for excess losses-IRMA - - - - Self-insurance health costs - - - - Accrued employee benefits 475,890 - - - Rehabilitation of Village Hall 200,000 - - - Rehabilitation of Public Library - - - - Drug Enforcement Act 90,718 - - - Unreserved-undesignated 3,589,363 321,003 - 992,769 Total equity and other credits 4,438,690 461,003 1,031,210 992,769 TOTAL LIABILITIES,EQUITY AND OTHER CREDITS $ 9,971,175 $ 1,857,208 $ 2,125,830 $ 2,016,143 • -5- Proprietary Fiduciary - Total Fund Type Fund Type Account Groups Primary Totals Trust General General Government Component Reporting Entity and Fixed Long-Term (Memorandum Unit (Memorandum Only) Enterprise Agency Assets Debt Only) Public Library 2002 2001 $ 229,529 $ 13,324 $ - $ - $ 1,118,179 $ 63,829 $ 1,182,008 $ 1,185,060 24,758 - - - 332,298 12,452 344,750 290,854 - - - - 130,280 - 130,280 - - - - 475,890 483,192 9,083 492.275 74,971 14,514 - - - 14,514 - 14,514 270,958 - - - - 6,272,373 2,162,303 8,434,676 7,998,483 22,050 - - - 458,120 - 458,120 22,724 31,531 2,130 - - 969,146 - 969,146 2,887,223 24,677 - - - 106,985 - 106,985 298,693 ..- 626,989 - - 15,153,444 15,780,433 27,742 15,808,175 16,453,222 - - - 249,045 249,045 - 249,045 - 3,367,500 - - 10,102,500 13,470,000 - 13,470,000 14,860,000 - - 5,808,095 5,808,095 - 5,808,095 3,412,353 4,341,548 15,454 - 31,788,974 45,192,660 2,275,409 47,468,069 47,754,541 - - 21,596,929 - 21,596,929 2,406,209 24,003,138 23,212,549 3,028,238 - - - 3,028,238 - 3,028,238 3,421,501 - - - - 82,719 31,076 113,795 68,323 - - - - 140,000 - 140,000 - - 39,718,517 - - 39,718,517 - 39,718,517 39,205,101 - - - - 1,031,210 - 1,031,210 1,004,415 - - - - - - - 1,307,651 - - - - - - - - 639,390 - - - - 475,890 - 475,890 318,983 - - - - 200,000 - 200,000 200,000 - - - - - 500,000 500,000 500,000 - - - - 90,718 - 90,718 2,086 - - - - 4,903,135 798,576 5,701.711 5,490,233 3,028,238 39,718,517 21,596,929 - 71,267,356 3,735,861 75,003,217 75,370,232 $ 7,369,786 $ 39,731971 $ 21,596,929 $ 31,788,974 $ 116,460,016 $ 6,011,270 $ 122,471,286 $ 123,124,773 See accompanying notes to financial statements. •_ 6 ■ ■ - b n r 00 b N b - V1 0000N ,10 .--. 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A A � S � V 0 W ni "'� O z n z F ii, z 0 x z c c 0 C n w 0 SF X z J O 0 .a7 F .a] W M . ya 047171 " E c o F NOc4Z m � c MrqW m U > S a, 0 c t= 0 W O W Q q 0. `0 a z 0 xO o00m0 - m. ti w QO [`z 0 a °' 4a w VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE For the Year Ended December 31,2002 (With Comparative Totals for 2001) 2002 2001 OPERATING REVENUES Water sales $ 2,813,002 $ 2,584,478 Sewer charges 682,801 632,726 _ Meter and connection fees 2,423 4,396 Miscellaneous 175 148 Total operating revenues 3,498,401 3,221,748 OPERATING EXPENSES Personal services 980,907 985,638 — Contractual services and other charges 300,459 641,526 Water purchases 1,478,020 1,399,811 Commodities 128,946 299,185 Utilities 80,074 83,086 Total operating expenses 2,968,406 3,409,246 OPERATING INCOME(LOSS)BEFORE DEPRECIATION 529,995 (187,498) DEPRECIATION 182,256 144,484 OPERATING INCOME(LOSS) 347,739 (331,982) NON-OPERATING REVENUES(EXPENSES) Rental income 103,231 78,912 Investment income 3,033 4,488 Interest expense and fiscal agent fees (175,589) (189,331) Total non-operating revenues(expenses) (69,325) (105,931) NET INCOME(LOSS)BEFORE — OPERATING TRANSFERS 278,414 (437,913) OPERATING TRANSFERS IN(OUT) Transfers in 12,750 11,650 — Transfers(out) (110,000) (105,000) Total operating transfers in(out) (97,250) (93,350) — NET INCOME(LOSS) - 181,164 (531,263) RETAINED EARNINGS,JANUARY 1,AS PREVIOUSLY REPORTED 2,890,238 3,421,501 — Prior period adjustment (43,164) - RETAINED EARNINGS,JANUARY 1,AS RESTATED 2,847,074 3,421,501 — RETAINED EARNINGS,DECEMBER 31 $ 3,028,238 $ 2,890,238 See accompanying notes to financial statements. - 13- VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE For the Year Ended December 31,2002 (With Comparative Totals for 2001) 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ 450,970 $ (253,070) Adjustments to reconcile operating income(loss)to net cash from operating activities Depreciation 182,256 144,484 Changes in operating assets and liabilities Receivables (9,480) 76,757 Other assets 30,721 69,317 Refundable deposits 13,205 3,372 Deferred revenues (9,149) 8,475 Accounts payable and accrued expenses (131,918) 197,112 Due to other funds (7,344) 15,779 Net cash from operating activities 519,261 262,226 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Operating transfers(out) (110,000) (105,000) Operating transfers in 12,750 11,650 Net cash from non-capital financing activities (97,250) (93,350) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on IEPA revolving loan program for mandated sewer rehabilitation (62,154) (60,726) Acquisition of capital assets (93,987) (63,225) Principal payments on installment loans (35,139) (54,125) Interest paid on bonds and installment notes (175,589) (189,331) Redemption of water bonds and principal payments on general purpose bonds (178,750) (168,750) Net cash from capital and related financing activities (545,619) (536,157) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 3,033 4,488 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (120,575) (362,793) CASH AND CASH EQUIVALENTS,JANUARY 1 133,606 496,399 CASH AND CASH EQUIVALENTS,DECEMBER 31 $ 13,031 $ 133,606 See accompanying notes to financial statements. - 14- VILLAGE OF MORTON GROVE, ILLINOIS — COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUNDS — For the Year Ended December 31, 2002 (With Comparative Totals for 2001) 2002 2001 ADDITIONS Contributions — Employer $ 382,745 $ 206,476 Employee 553,991 501,320 Total contributions 936,736 707,796 Investment income Net appreciation (depreciation) in fair value of investments (63,709) (238,791) Interest 1,639,501 1,815,668 Total investment income 1,575,792 1,576,877 Less investment expense (62,446) (52,482) _ Net investment income 1,513,346 1,524,395 Other miscellaneous income 220 125 Total additions 2,450,302 2,232,316 — DEDUCTIONS Retirement benefits 1,676,832 1,585,746 Duty/nonduty disability benefits 230,494 211,372 Surviving spouse benefits 175,939 148,133 Children's benefits 8,633 8,633 _ Refunds 69,868 - Administrative expenses 16,235 37,317 Total deductions 2,178,001 1,991,201 NET INCREASE 272,301 241,115 — NET ASSETS HELD IN TRUST FOR PENSION BENEFITS 39,446,216 39,205,101 — January 1 December 31 $ 39,718,517 $ 39,446,216 See accompanying notes to financial statements. - 15 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2002 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Morton Grove, Illinois (the Village) have been prepared in conformity with accounting principles generally accepted in the United States of America(hereinafter referred to as generally accepted accounting principles (GAAP)), as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Village's accounting policies are described below. a. Reporting Entity The Village is a municipal corporation governed by an elected president and six- member board of trustees. As required by generally accepted accounting principles, these financial statements present the Village (the primary government) and its component units. The Village's financial statements include two pension trust funds. Police Pension Employees Retirement System The Village's police employees participate in the Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed by a member pension board. Two members appointed by the Village's President, one elected pension beneficiary, and two elected police employees constitute the pension board. The Village and PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. _ Although it possesses many of the characteristics of a legally separate government, the PPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village's police employees, and because of the fiduciary nature of such activities. The PPERS is reported as a pension trust fund. - 16 - VILLAGE OF MORTON GROVE, ILLINOIS — NOTES TO FINANCIAL STATEMENTS (Continued) I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity(Continued) Firefighters' Pension Employees Retirement System — The Village's firefighters participate in the Firefighters' Pension Employees Retirement System (FPERS). FPERS functions for the benefit of these employees — and is governed by a nine-member pension board. The Village's President, Treasurer, Clerk, Attorney, and Fire Chief, one elected pension beneficiary, and _ elected fire employees constitute the pension board. The Village and FPERS participants are obligated to fund all FPERS 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 contribution levels. Although it possesses many of the characteristics of a legally - separate government, the FPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village's firefighters and because of the fiduciary nature of such activities. The FPERS is reported as a pension trust fund. — Discretely Presented Component Unit Morton Grove Public Library(the Library) The Library's board consists of seven individuals. None of which are members of the Village's governing body. The Library's budget is subject to the approval of the Village's governing body. In addition, the taxing authority and issuance of debt is also subject to the approval of the Village's governing body. Additionally, the — activities of the Library are open to all citizens and benefit the citizens of the Village. Blended Component Unit Municipal Employees' Retirement Fund (the Fund) — This Fund is included as a special revenue fund because its function is mainly to collect tax revenues and remit them to the private insurance company which — administers the plan. The retirement plan is similar to the Illinois Municipal Retirement Plan which is not required to be recorded as a pension trust or agency fund. - - 17 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting The Village uses funds and account groups to report on its financial position, results _ of its operations, and cash flows. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Funds are classified into the following categories: governmental,proprietary and fiduciary. Each category, in turn, is divided into separate"fund types". Governmental funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided _ either to outside parties (enterprise funds) or to other departments or agencies primarily within the Village (internal service funds). Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the Village. When these assets are held under the terms of a formal trust agreement, either a pension trust fund or an expendable trust fund is used. The term "expendable"refers to whether or not the Village is under an obligation to maintain the trust principal. Agency funds generally are used to account for assets that the Village holds on behalf of others as their agent. The following fund types and account groups are: The general fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. 18 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting (Continued) Special revenue funds account for revenue sources that are legally restricted to — expenditure for specific purposes (not including expendable trusts or major capital projects). Debt service funds account for the servicing of general long-term debt not being financed by proprietary funds. — Capital projects funds accounts for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary trust funds. Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the Board has — decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Fiduciary funds account for assets held by the Village in a trustee capacity or as an agent on behalf of others. Trust funds account for assets held by the Village — under the terms of a formal trust agreement. Pension trust funds are accounted for in essentially the same manner as the proprietary funds, using the same measurement focus and basis of accounting. The pension trust funds account for the assets of the Village's public safety employees' pension plans. Account Groups - the general fixed assets account group is used to account for fixed assets not accounted for in proprietary or trust funds. The general long- term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust _ funds. c. Basis of Accounting The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this _ measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other _ financing uses) in net current assets. - 19 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) e 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Basis of Accounting (Continued) All proprietary funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Proprietary fund-type fund equity(i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (i.e.,revenues) and decreases (i.e., expenses) • in net total assets. The modified accrual basis of accounting is used by all governmental fund types. Under the modified accrual basis of accounting,revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable"means the amount of the transaction can be determined and "available"means collectible within the current period. The Village recognizes property taxes when they become both measurable and available in accordance with GASB Codification Section P70 and for the period intended to finance. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. Those revenues susceptible to accrual are property taxes, franchise taxes, licenses, interest revenue and charges for services. Sales taxes owed to and fines collected and held by the state/county at year end on behalf of the Village also are recognized as revenue. Permit revenues are not susceptible to accrual because, generally, they are not measurable until received in cash. The accrual basis of accounting is utilized by proprietary fund types, and pension trust funds. Under this method, revenues/additions are recorded when earned and expenses/deletions are recorded at the time liabilities are incurred. The Village reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the Village before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. 20 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Budgets Budgets are adopted on a basis consistent with generally accepted accounting — principles. Annual appropriated budgets are adopted (at the fund level) for the General, Special Revenue,Debt Service and Capital Projects Funds on the modified accrual basis and for the Enterprise and Pension Trust Funds on the accrual basis. — The annual appropriated budget is legally enacted and provides for a legal level of control at the department level for the General Fund and at the fund level for all other funds. All annual appropriations lapse at fiscal year end. Encumbrances represent commitments related to unperformed contracts for goods or — services. Encumbrance accounting--under which purchase orders, contracts, and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation--is utilized in the governmental funds. — Material encumbrances outstanding at year end, if any, are reported as reservations of fund balances and do not constitute expenditures or liabilities because the - commitments will be honored during the subsequent year. — e. Cash and Investments For purposes of the statement of cash flows, the Village's proprietary fund types consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. f. Investments Investments with a maturity of less than one year when purchased and non-negotiable certificates of deposit are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased and all investments of the pension — trust funds are stated at fair value. Fair value is based on prices listed on national exchanges as of December 31, 2002 for debt and equity securities. Mutual funds, — investment funds and insurance separate accounts are valued at contract value as of December 31, 2002. r g. Short-Term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual — funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds"or"due to other funds" on the balance sheet. Short-term interfund loans, if any, are classified as "interfund receivables/payables". — 21 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) .- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) h Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. i. Fixed Assets General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. The Library's assets on hand as of April 30, 1969,which were valued at $517,954, represented appraised market value at that date. Donated fixed assets are valued at their estimated fair value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Public domain("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the Village. Assets in the general fixed assets account group are not depreciated. Depreciation of buildings, equipment,water/sewer systems and vehicles in the proprietary fund types is computed using the straight-line method. Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. j. Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Vested or accumulated vacation leave of proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, an expenditure is reported and a liability is recognized for that portion of accumulating sick leave benefits that it is estimated will be taken as "terminal leave" at retirement. - 22 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k. Rebatable Arbitrage The Village reports rebatable arbitrage as a component in the general long-term debt — account group. Long-Term Obligations Long-term debt is recognized as a liability of a governmental fund when due or when resources have been accumulated in the debt service fund for payment early in the — following year. For other long-term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the general long-term debt account group. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. _ m. Bond Discounts/Issuance Costs In governmental fund types, bond discounts and issuance costs are recognized in the current period. Bond discounts and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using the bonds-outstanding — method, which approximates the effective interest method. Bond discounts are presented as a reduction of the face amount of bonds payable whereas issuance costs are recorded as deferred charges. — n. Fund Equity Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. o. Interfund Transactions — Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. — All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 23 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) o. Interfund Transactions (Continued) Advances between funds, if any, are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. p. Memorandum Only- Total Columns Total columns on the general purpose financial statements are captioned "memorandum only"to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. -- q. GASB Pronouncements The Village has elected, under the provisions of GASB Statement No. 20,titled "Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting,"to apply all applicable GASB pronouncements and all FASB Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) issued on or before November 30, 1989, unless they conflict with or contradict GASB pronouncements. 2. LEGAL COMPLIANCE AND ACCOUNTABILITY a. Budgets All departments of the Village submit requests for appropriation to the Village's administrator so that a budget may be prepared. The budget is prepared by fund and includes information on the past year, current year estimates, and requested appropriations for the next fiscal year. All annual appropriations lapse at fiscal year end. The proposed budget is presented to the governing body for review. The governing body holds public hearings and may add to, subtract from or change appropriations, but may not change the form of the budget. - 24 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 2. LEGAL COMPLIANCE AND ACCOUNTABILITY (Continued) a. Budgets (Continued) The administrator is authorized to transfer budgeted amounts between departments — within the General Fund and at the fund level for all other funds; however, any revisions that alter the total expenditures of any fund must be approved by the governing body. Expenditures may not legally exceed budgeted appropriations at the — fund level. During the year several budget amendments were approved by the Village Board. The budget figures included in this report reflect all budget amendments made during the year. b. Deficit Fund Balances of Individual Funds Fund Deficit Municipal Employees' Retirement $ 13,111 — Waukegan Road TIF 701,794 Revolving Equipment Replacement 31,489 — Capital Projects - 1999 Bond Issue Proceeds 91,867 c. Excess of Actual Expenditures/Expenses over Budget in Individual Funds The following funds had an excess of actual expenditures/expenses (exclusive of - depreciation and amortization) over budget for the fiscal year: — Fund Excess General $ 57,451 Lehigh/Ferris Tax Increment Financing 138,106 Waukegan Road Tax Increment Financing 1,252,901 — Community Development Block Grant 2,302 Economic Development Fund 210,076 The following departments had an excess of actual expenditures over budget for the fiscal year: Department Excess Legislative $ 2,392 — Administrative 5,750 Financial 266,319 — Management information services 14,617 25 VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. LEGAL COMPLIANCE AND ACCOUNTABILITY (Continued) c. Excess of Actual Expenditures/Expenses over Budget in Individual Funds (Continued) Department Excess Streets and sidewalks $ 11,063 Sanitation 32,893 Community development 8,718 Building and inspectional services 4,218 — 3. DEPOSITS AND INVESTMENTS Permitted Deposits and Investments - Statutes authorize the Village to make deposits/invest in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreements to repurchase these same obligations,repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, and The Illinois Funds. Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran's loans, obligations of the State of Illinois and its political subdivisions, and Illinois insurance company general and separate accounts, mutual funds and equity securities. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund's share price, which is the price the investment could be sold for. Illinois Metropolitan Investment Fund(IMET) is a non-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an investment company. Investments in IMET are valued at IMET's share price, which is the price the investment could be sold for. - 26 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 3. DEPOSITS AND INVESTMENTS (Continued) a. Deposits At year end, the carrying amount of the primary government's deposits totaled $3,351,653 and the bank balances totaled $2,855,034. The carrying amount of the component unit's deposits totaled $108,574 and the bank balances totaled $146,917. Cash on hand of$1,875 for the primary government and $250 for the Component Unit has been excluded from the above amounts. Bank Balances Primary Component Government Unit Category I Deposits covered by federal depository insurance, or collateral held by the Village, or its agent, in the — Village's name. $ 2,855,034 $ 146,917 Category 2 — Deposits covered by collateral held by the pledging financial institution's trust department, or by its agent, in the Village's name. - - Category 3 Deposits covered by collateral held by the pledging financial institutions, or its trust department, or its agent but not in the Village's name, and deposits which are uninsured and uncollateralized. r TOTAL $ 2,855,034 $ 146,917 b. Investments The Village's investments are categorized to give an indication of the level of custodial credit risk assumed by the entity at year end. Category 1 includes — investments that are insured or registered or for which the securities are held by the Village or its agent in the Village's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust — department or agent in the Village's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty in the — Village's name, or held by any third party but not in the Village's name. -27 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) . 3. DEPOSITS AND INVESTMENTS (Continued) b. Investments (Continued) Primary Government Fair Value Category Component 1 2 3 Totals Unit U.S.Government Securities $ 13,070,216 $ - $ - $ 13,070,216 $ - U.S.AgencySecurities 16,085,174 - - 16,085,174 Equity Securities 9,286,116 - - 9,286,116 - $ 38,441,506 $ - $ - 38,441,506 - *Illinois Governmental Cash Investment Fund 1,923,327 '� The Illinois Metropolitan Investment Fund 693,838 •The Illinois Funds 1,108,551 1,275,116 TOTAL INVESTMENTS $ 42,167,222 $ 1,275,116 *(Not Subject to Custodial Credit Risk Categorization) 4. RECEIVABLES Property taxes for 2002 attach as an enforceable lien on January 1, 2002 on property values assessed as of the same date. Taxes are levied by December of the fiscal year(by passage of a Tax Levy Ordinance). Tax bills are prepared by the County and issued on or about February 1, 2003 and August 1, 2003 and are payable in two installments, on or about March 1, 2003 and September 1, 2003. The County collects such taxes and remits them periodically. The allowance for uncollectible taxes has been stated at 2% of the tax levy, to reflect actual collection experience. Since the 2002 levy is intended to fund the 2003 fiscal year, the levy has been recorded as a receivable and deferred revenue. 5. FIXED ASSETS a. General Fixed Assets Account Group The following is a summary of changes in the general fixed assets account group during the fiscal year: Balances Balances Primary Government January-1 Additions Retirements December 31 Land $ 441,808 $ - $ - $ 441,808 Building and improvements 10,829,536 1,564,606 3,281,325 9,112,817 Improvements other than building 1,566,759 - - 1,566,759 Equipment 10,410,527 178,246 113,228 10,475,545 TOTAL GENERAL FIXED ASSETS $ 23,248,630 $ 1,742,852 $ 3,394,553 $ 21,596,929 - 28 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. FIXED ASSETS (Continued) a. General Fixed Assets Account Group (Continued) Balances Balances — Component Unit January 1 Additions Retirements December 31 Building and improvements $ 1,580,243 $ 22,168 $ - $ 1,602,411 Equipment 719,108 84,690 - 803,798 TOTAL GENERAL — FIXED ASSETS $ 2,299,351 $ 106,858 $ - $ 2,406,209 b. Proprietary Fixed Assets — The following is a summary of proprietary fund type fixed assets for the primary government at December 31, 2002: — Water and — Sewer Land $ 20,762 — Buildings and improvements 9,062,018 Equipment 2,037,151 11,119,931 Less accumulated depreciation (4,281,449) TOTAL PROPRIETARY FIXED ASSETS $ 6,838,482 In proprietary funds, the following estimated useful lives are used to compute depreciation: Reservoirs, pump house and water mains 50 - 100 years Garage and fence 50 years Office building, remodeling and improvements 10-50 years — Improvements to water system 20 years Equipment 3 - 10 years Water meters 10 - 15 years - - 29 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 6. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by the Village's participation in Intergovernmental Risk Management Association(IRMA), an organization of a municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperations Statute to pool its risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages;property/casualty and workers' compensation claim administration/litigation management services; unemployment claim administration/litigation management services; unemployment claim _ administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. The Village's payments to IRMA are displayed on the financial statements as expenditures/expenses in appropriate funds. Each member assumes the first $1,000 of each occurrence and IRMA has a mix of self-insurance and commercial insurance at various amounts above that level. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the -- Board of Directors. The Village paid an original contribution that was based on the Village's eligible revenue as defined in the by-laws of IRMA and experience modification factors based on past member loss experience. The Village has a contractual obligation to •— fund any deficit or IRMA attributable to a membership year during which the Village was a member. Supplemental contributions may be required to fund these deficits. No supplemental contributions were due at December 31, 2002. On January 1, 1990, the Village became self-insured for health insurance for all employees. The plan requires the employees to pay 10% of the premium cost with the Village paying the other 90%. The premium is based on projected claims by all employees for the calendar year. The Village is solely responsible to pay the claims for the corridor from the _ projected claim amount to the aggregate stop loss which is equal to 140% of the total projected claims. For the year ended December 31, 2002, the Village paid claims in excess of projected claims totaling $44,387. Settlement amounts have not exceeded commercial insurance coverage for the current year or the five prior years. - 30 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. RISK MANAGEMENT (Continued) A reconciliation of claims payable for the fiscal years ended December 31, 2002 and 2001 is as follows: Health Insurance — CLAIMS PAYABLE, JANUARY 1* $ 65,302 Add claims incurred 65,086 Less claims paid 108 CLAIMS PAYABLE,DECEMBER 31 $ 130,280 — *Claims payable was not recorded in 2001, resulting in a prior period adjustment. 7. LONG-TERM DEBT a. Changes in Long-Term Liabilities During the fiscal year, the following changes occurred in liabilities reported in the — General Long-Term Debt Account Group: Balances — January 1, Balances As Restated Additions Reductions December 31 Compensated absences $ 413,467 $ 77,324 $ 14,901 $ 475,890 Installment contracts 15,432,674 6,934,745 7,213,975 15,153,444 General obligation bonds 10,638,750 - 536,250 10,102,500 Net pension obligation 1,176,260 4,631,835 - 5,808,095 Arbitrage calculation - 249,045 - 249,045 — TOTAL GENERAL LONG-TERM DEBT ACCOUNT GROUP $27,661,151 $ 11,892,949 $ 7,765,126 $ 31,788,974 — During the fiscal year, the following changes occurred in liabilities reported in the Enterprise Fund: Balances Balances January 1 Additions Reductions December 31 General obligation bonds $ 3,546,250 $ - $ 178,750 $ 3,367,500 Installment contracts 724,381 - 97,392 626,989 TOTAL ENTERPRISE FUND $ 4,270,631 $ - $ 276,142 $ 3,994,489 31 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 7. LONG-TERM DEBT (Continued) b. General Obligation Bonds The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both general government and proprietary activities. These bonds therefore are reported in the proprietary funds if they are expected to be repaid from proprietary _ revenues. In addition, general obligation bonds have been issued to refund general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. General obligation bonds currently outstanding are as follows: Fund Debt Balances Balances Retired By January 1 Additions Reductions December 31 $15,495,000 Corporate Purpose Serial Bonds dated February 1, 1999,due in annual installments of$635,000 to $1,765,000 plus interest at 4.0%to 6.0%,due on June 1 and December 1 of Debt each year. Service $ 10,638,750 $ - $ 536,250 $ 10,102,500 The Village entered into several installment contracts with the Illinois Environmental Protection Agency to provide funds for the construction of flood control projects. The contracts are for a 20-year period with equal semi-annual installments. Installment contracts currently outstanding are as follows: Fund Debt Balances Balances Retired By January 1 Additions Reductions December 31 IEPA revolving line of credit for Parkview and South Central sewer rehabilitation projects,payable semi- annually over 20 years '— upon presentation of invoice by IEPA with Debt interest at 3.58%. Service $ 4,194,453 $ - $ 328,102 $ 3,866,351 - 32 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) c. Installment Contracts and Notes Payable Fund Debt Balances Balances Retired By January 1 Additions Reductions December 31 Installment notes payable,secured by �. equipment,due in annual installments at various amounts over the next three years, -� plus interest ranging Debt from 4.45%to 11.9%. Service $ 683,221 $ 474,745 $ 683,221 $ 474,745 $3,165,000 General Obligation Bank Promissory Note for projects related to the Tax Increment Financing Fund and the Economic Development Fund, — principal due semi- annually over through 2018 with interest at Debt 5.32%. Service 3,165,000 - 117,652 3,047,348 $4,000,000 tax-exempt bank note for the acquisition of properties and related preparation expenses for the Waukegan Tax Increment Financing District Redevelopment Area "B"Project,due in semi-annual payments of$100,000 with a balloon payment of $3,800,000 due _ August 13,2003 with Debt interest at 4.26%. Service 4,000,000 - 4,000,000 - $420,000 tax-exempt bank note for the acquisition of property along the Dempster Street Corridor,due in four annual payments of$50,000 beginning December 2001 with a balloon payment of $220,000 due December 19,2005 Debt with interest at 5.03%. Service 370,000 - 50,000 320,000 - 33 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 7. LONG-TERM DEBT (Continued) c. Installment Contracts and Notes Payable (Continued) Fund Debt Balances Balances Retired By January 1 Additions Reductions December 31 $475,000 taxable bank note for the acquisition of properties within Lehigh/Ferris Tax Increment Financing District,due in annual payments of$95,000 from 2004 through 2008 with interest at 4.725%for payment due at September 10, 2002 and at 70%of the Wall Street Journal's published prime rate for subsequent payments. �- The prime rate at September 10,2002 Debt was 4.75%. Service $ 475,000 $ - $ - $ 475,000 $510 taxable bank note for the acquisition of properties within the Lehigh/Ferris Tax Increment Financing District due with a payment of$100,000 December 2004 and a balloon payment of $410 due December 2005 with interest at Debt 7.25%. Service 510,000 - - 510,000 $3,000,000 taxable bank note for the acquisition of properties and related preparation expenses for the Waukegan Tax Increment Financing District Redevelopment Area"B"Project,due _ in semi-annual payments of$75,000 beginning February 2002 with a balloon payment of$2,775 due August 13,2003 with Debt interest at 6.22%. Service 2,035,000 - 2,035,000 - 34 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) c. Installment Contracts and Notes Payable (Continued) Fund Debt Balances Balances Retired By January 1 Additions Reductions December 31 $360,000 tax-exempt bank note for the acquisition of property along the Dempster Street Corridor,due in annual payments of $50,000,beginning December 1,2006 with a balloon payment of _ $310,000 due December 1,2007. Interest is variable at 70%of the LIBOR rate plus 85 interest points and is due beginning Debt December 1,2003. Service $ - $ 360,000 $ - $ 360,000 $800,000 taxable bank note for the acquisition and redevelopment of properties within Lehigh/Ferris Tax Increment Financing District,due in annual payments of$100,000 beginning December 1, 2006 with a balloon payment of$500,000 due December 1,2009. Interest is variable at Libor plus 70 basis points and is due beginning December I, Lehigh/Ferris 2003. TIF - 800,000 - 800,000 $5,300,000 General Obligation Promissory Note,Series 2002, dated July 22,2002, due in annual –� installments of$10,000 to$515,000 beginning December I,2002,plus — interest at 4.620% Waukegan through June 1,2022. Road TIF - 5,300,000 - 5,300,000 TOTAL LONG-TERM DEBT $ 15,432,674 $ 6,934,745 $ 7,213,975 S 15,153,444 - 35 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) d. Proprietary Fund debt currently outstanding is as follows: Fund Debt Balances Balances Retired By January 1 Additions Reductions December 31 $15,495,000 Corporate Purpose Serial Bonds dated February I, 1999, due in annual installment of$635,000 to $1,765,000 plus interest ' at 4.0%to 6.0%,due on Water June 1 and December 1 and of each year. Sewer $ 3,546,250 $ - $ 178,750 $ 3,367,500 IEPA revolving line of ^ credit for mandated sewer rehabilitation, payable semi-annually over 20 years upon presentation of invoice Water by the IEPA with interest and at 2.5%. Sewer 620,100 - 62,253 557,847 Installment notes payable,secured by equipment,due in annual _ installments at various amounts over the next four years,plus interest Water ranging from 4.45%to and 11.90%. Sewer 104,281 - 35,139 69,142 TOTAL $ 4,270,631 $ - $ 276,142 $ 3,994,489 36 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) e. Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: — General Long-Term Debt Account Group Fiscal Year General Installment Ending Obligation Contracts December 31 Bonds Payable Totals 2003 $ 1,008,810 $ 1,379,168 $ 2,387,978 2004 1,007,460 1,577,473 2,584,933 2005 1,009,710 1,897,263 2,906,973 2006 1,007,160 1,242,715 2,249,875 2007 1,007,460 1,505,452 2,512,912 2008 1,006,710 1,206,234 2,212,944 2009 1,007,959 1,201,251 2,209,210 2010 1,007,977 1,198,189 2,206,166 2011 1,196,874 1,207,561 2,404,435 2012 1,386,390 1,078,475 2,464,865 2013 1,385,430 762,560 2,147,990 2014 1,384,643 773,395 2,158,038 2015 - 787,916 787,916 2016 - 805,991 805,991 2017 - 817,425 817,425 2018 - 832,755 832,755 2019 - 486,742 486,742 2020 - 496,148 496,148 2021 - 514,840 514,840 2022 - 527,902 527,902 — TOTAL PRINCIPAL AND INTEREST $ 13,416,583 $ 20,299,455 $ 33,716,038 INTEREST PORTION $ 3,314,083 $ 5,146,011 $ 8,460,094 - 37 - - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 7. LONG-TERM DEBT (Continued) e. Debt Service Requirements to Maturity(Continued) Proprietary Fiscal Year General Installment Ending Obligation Contracts December 31 Bonds Payable Totals 2003 $ 336,270 $ 688,099 $ 1,024,369 2004 335,820 - 335,820 2005 336,570 - 336,570 2006 335,720 - 335,720 2007 335,820 - 335,820 2008 335,570 - 335,570 2009 335,986 - 335,986 2010 335,992 - 335,992 2011 398,958 - 398,958 2012 462,130 - 462,130 2013 461,810 - 461,810 2014 461,548 - 461,548 TOTAL PRINCIPAL AND y INTEREST $ 4,472,194 $ 688,099 $ 5,160,293 INTEREST PORTION $ 1,104,694 $ 61,110 $ 1,165,804 £ Changes in Long-Term Debt - Component Unit Lease Obligations LONG-TERM DEBT,BEGINNING OF YEAR $ 31,144 New lease obligations - Repayments 3,402 LONG-TERM DEBT,END OF YEAR $ 27,742 Library long-term debt at December 31, 2002 is comprised of two lease obligations payable, secured by equipment, due in monthly installments totaling $578 (including interest) through 2006; interest at 4.725%. - 38 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) g. Debt Service Requirements to Maturity- Component Unit Fiscal Year Ending Lease December 31 Obligations -' 2003 $ 6,936 2004 6,936 2005 6,936 2006 6,934 — TOTAL $ 27,742 h. General Obligation Refunding — The general obligation tax-exempt bank note for the Waukegan TIF District — Redevelopment Area`B" (1999), defeasance of$3,900,000 of the $4,000,000 issue and the general obligation taxable bank note for the Waukegan TIF District Redevelopment Area`B" (1999), defeasance of$1,400,000 of the $3,000,000 issue: On July 22, 2002, the Village issued$5,300,000 in a general obligation refunding promissory note for the Waukegan TIF District Redevelopment Area _ "B" (2002). The proceeds of the bonds were used to call all of the cost of the general obligation tax-exempt bank note (1999) and the taxable bank note (1999). At December 31, 2002,none of the defeased bonds remain — outstanding. The Village refunded these bonds to reduce its total debt service in 2003 by approximately$6,730,096 and to provide for an economic gain of approximately$6,432,897. The 2002 issue matures in 2022. Legal Debt Margin The Village is a home rule municipality. "' Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the — legal debt margin. - 39 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) i. Legal Debt Margin(Continued) "The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property. . . (2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: . . . indebtedness which is outstanding on the effective date(July 1, 1971) of this constitution or which is thereafter approved by referendum . . . shall not be included in the foregoing percentage amounts." To date the General Assembly has set no limits for home rule municipalities. 8. CONTRACTUAL COMMITMENTS a. Construction Contracts At December 31, 2002, several construction contracts were outstanding in which the Village has committed to but not accrued the full expenditure or expense as the work has not yet been completed. The estimated amount for which the Village is committed to complete these contracts is $762,394. a b. Intergovernmental Agreement with School District 67 In 1996, the Village entered into an agreement with Morton Grove School District 67. The agreement acknowledges the negative impact on the future property tax revenue of the school district as a result of the TIF, which calls for the freezing of the equalized assessed valuation. Deferred revenues have been set aside for economic development activities. The agreement calls for the Village to remit to the school district a portion of the proposed deferred tax revenue due to projected growth in the equalized assessed valuation for existing properties located on Waukegan Road and existing on the date when the TIF was formed. Payments are deferred until December 31 of each year and shall continue until the conclusion of the TIF at which time all future growth in the equalized assessed valuation will be released for distribution of property tax revenues to the overlapping taxing jurisdictions. During the year ended December 31, 2002, the Village made total intergovernmental payments of$44,605. Because the deferred tax revenue is determined on an annual basis, any future liability is indeterminable at this time. - 40 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 8. CONTRACTUAL COMMITMENTS (Continued) c. Intergovernmental Agreement with School District 70 In 2000, the Village entered into a second intergovernmental agreement, this time — with Morton Grove School District 70. The agreement acknowledges the negative impact on future property tax revenue of the school district as a result of the Village's second TIF encompassing the area surrounding Lehigh and Ferris Avenues. — Deferred revenues have been set aside for economic development activities. The agreement calls for the Village to remit to the school district a portion of the proposed deferred tax revenue due to projected growth in the equalized assessed — valuation for existing properties located in the Lehigh/Ferris TIF and existing on the date when the TIF was formed. As with the agreement with District 67, payments — are deferred until December 31 of each year and shall continue until the conclusion of the TIF at which time all future growth in the equalized assessed valuation will be released for distribution of property tax revenues to the overlapping taxing — jurisdictions. During the year ended December 31, 2002, the Village made total intergovernmental payments of$15,234. Because the deferred tax revenue is determined on an annual basis, any future liability is indeterminable at this time. _ 9. INTERFUND ASSETS/LIABILITIES Due From/To Other Funds Receivable Fund Payable Fund Amount — General Fund Municipal Employees Retirement $ 25,431 Revolving Equipment Replacement 112,147 — Waukegan Road TIF 738,779 Capital Projects 12,112 Water and Sewer 21,730 — Total General Fund 910,199 Motor Fuel Tax General Fund 4,926 Capital Projects 36,679 Total Motor Fuel Tax 41,605 Community Block Grant General Fund 4,227 — 41 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9. INTERFUND ASSETS/LIABILITIES (Continued) Due From/To Other Funds (Continued) Receivable Fund Payable Fund Amount Municipal Employees Retirement Water and Sewer $ 9,801 Fire Pension 1,081 Total Municipal Employees Retirement 10,882 Fire Pension General Fund 592 Police Pension 1,049 Total Fire Pension 1,641 Police Pension General Fund 592 TOTAL $ 969,146 10. CONTINGENT LIABILITIES Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village's attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. Grants _ The Village participates in numerous federally assisted programs, on both a direct and state pass-through basis, as well as on a service-provider basis. Principal among these are the Federal-Aid Highway Program and Community Development Block Grants. In connection with these grants,the Village is required to comply with specific terms and agreements, as well as applicable federal and State laws and regulations. Such compliance is subject to review and audit by the grantors and their representatives. In the opinion of management, the Village has complied with all requirements. However, since such programs are subject to future audit or review, the possibility of disallowed expenditures exists. In the event of any disallowance of claimed expenditures, the Village expects the resulting liability to be immaterial. - 42 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. JOINT VENTURES Solid Waste Agency of Northern Cook County(SWANCC) The Village is a member of the Solid Waste Agency of Northern Cook County(SWANCC) — which consists of twenty-three municipalities. SWANCC is a municipal corporation and public body politic and corporate established pursuant to the Intergovernmental Cooperation Act of the State of Illinois. SWANCC is empowered to plan, construct, finance, operate and — maintain a solid waste disposal system to serve its members. SWANCC is governed by a board of directors which consists of the mayor or president from — each member municipality. Each director has an equal vote. The officers of SWANCC are appointed by the board of directors. The board of directors determines the general policy of — SWANCC, makes all appropriations, approves contracts,provides for the issuance of debt, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the agency agreement or the by-laws. — Complete financial statements for SWANCC can be obtained from the SWANCC's administrative office at 1616 East Golf Road,Des Plaines,Illinois 60016. — SWANCC's outstanding bonds are revenue obligations. They are limited obligations of SWANCC with a claim for payment solely from and secured by a pledge of the revenues of the system and amounts in various funds and accounts established by SWANCC resolutions. The bonds are not the debt of any member. SWANCC has no power to levy taxes. Revenues of the system consist of(1) all receipts derived from solid waste disposal contracts or any other contracts for the disposal of waste; (2) all income derived from the investment of monies; and(3) all income, fees, service charges and all grants,rents and receipts derived by — SWANCC from the ownership and operation of the system. SWANCC covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. SWANCC has entered into solid waste disposal contracts with the member municipalities. The contracts are irrevocable and may not be terminated or amended except as provided for in — the contract. Each member is obligated, on a"take or pay"basis, to deliver a minimum amount of solid waste to the system. The obligation of the Village to make all payments as required by this contract is unconditional and irrevocable,without regard to performance or nonperformance by the Agency of its obligations under the contract. The contract does not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. — In accordance with the contract, the Village made payments totaling $146,593 to SWANCC in 2002. The Village does not have an equity interest in SWANCC at December 31, 2002. — 43 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. JOINT VENTURES (Continued) Solid Waste Agency of Northern Cook County(SWANCC) (Continued) The Village has committed and budgeted for the following payments to SWANCC for solid waste refuse disposal, and expects to pay the following amounts: Fiscal Year Ending December 31 Amount 2003 $ 589,197 2004 592,504 2005 598,288 These amounts have been estimated based upon the Village's commitment for 2002. In future years, the annual expense will be subject to change based upon the actual tonnage of refuse disposed of and current SWANCC costs. 12. RELATED PARTIES a. Regional Emergency Dispatch Center The Regional Emergency Dispatch Center(the Center) is a joint venture of Illinois municipalities which is used to account for the resources involved in dispatching fire and medical emergency services to a seven-community area. The fund is supported by contributions by the eight member departments. Management consists of a Board of Directors comprised of one elected officer from each member. There is also a Joint Chiefs Authority which is comprised of the fire chief from each member,which takes care of day-to-day activities. The Village does not exercise any control over the activities of the Center beyond its representation on the Board of Directors and Joint Chiefs Authority. Annual contributions are determined each year based on the estimated number of fire calls for the upcoming year. Each year, the members sign a contract which denotes the amount of the contribution for the year. The Board of Directors has the power to levy a special assessment should a deficit or emergency arise. Complete separate financial statements for the Center may be obtained at the Center's office located at 1815 Glenview Road, Glenview, Illinois. - 44 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. RELATED PARTIES (Continued) b. Joint Computer Project for Libraries The Joint Computer Project for Libraries (the Project) is a joint venture between the — Morton Grove Public Library and three other libraries whose purpose is to advance the services provided to the general public through the utilization of computers in libraries. — Management consists of a Board of Directors comprised of the head librarian for each member. In addition, there is a project manager. — The Morton Grove Library does not exercise any control over the activities of the — Project beyond its representation on the Board of Directors. Annual contributions are determined on the number of patrons served,number of items — owned and number of items in circulation. Complete separate financial statements for the Project may be obtained,when they become available, at the Project's office located at 120 N. County St., Waukegan, Illinois. c. Joint Computer Project for Libraries (the Project) During 2002, the Library received a distribution for its share of the JCPL Growth Fund, — which was $15,663. Any future distributions to be paid by the Project to the Library cannot be determined at this time. 13. ECONOMIC DEVELOPMENT AND REDEVELOPMENT AGREEMENTS a. Abt Electronics In 1989, the Village entered into an agreement with Abt Electronics (Abt)that called _ for the Village to remit back to Abt a portion of the sales tax receipts collected on sales made by Abt at their Morton Grove store. This agreement was modified during 1994 to provide that Abt is required to repay 100%of the sales tax receipts received should — Abt relocate outside of the Village within a period of four years following the last sales tax sharing payment from the Village to Abt. The last sales tax sharing payment was made in 2000 and Abt has announced its decision to relocate its Morton Grove store to — the Village of Glenview, Illinois. The Village has entered into an agreement with Abt for the repayment of the$2,000,000 in sales tax receipts. Monthly payments of $200,000 will be due beginning on the first day of the first month following the close of Abt's Morton Grove store or the opening of Abt's Glenview store,whichever occurs first. 45 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) .- 13. ECONOMIC DEVELOPMENT AND REDEVELOPMENT AGREEMENTS (Continued) a. Abt Electronics (Continued) Interest at 3%will be charged beginning on the first day of the first month that a repayment is due to the Village. If Abe s Morton Grove store is sold prior to the conclusion of this agreement,the unpaid balance plus any interest that is due shall be paid to the Village at the time of closing. Any unpaid balance that exists at December 31,2002 shall be paid as a lump sum payment to the Village on or about January 1, 2003. As of December 31, 2002, all unpaid balances plus interest has been paid to the Village. Total payments recognized in 2002 are$2,000,979. b. Charter One Bank In October 1999, the Village entered into an economic development agreement with Charter One Bank to assist in the move from its present location at 8930 Waukegan Road to a site further north in the Waukegan Road tax increment financing district. The intent of the agreement was to facilitate the relocation of Charter One to provide much needed space for Abt Electronics,the largest taxpayer in the Village,to construct a major facility addition which would contribute to the continued growth and expansion of its business. Charter One was currently occupying a site already owned by Abt. Subsequent to the agreement, and the relocation of Charter One, Abt Electronics elected not to move forward with the expansion and selected a site outside of the Village to construct a new facility. During the year ended December 31, 2002,the Village made payments of $40,000. The Village has committed to make payments to Charter One Bank for relocation assistance, and expects to pay the following amounts: Fiscal Year Ending December 31 Amount 2003 $ 40,000 2004 35,000 2005 35,000 2006 30,000 2007 25,000 2008 22,082 - 46- VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. ECONOMIC DEVELOPMENT AND REDEVELOPMENT AGREEMENTS (Continued) c. Osco Drug, Inc. During 2001,the Village entered into an economic development agreement with Osco Drug, Inc., to construct a site in the Village during 2002. The agreement calls for the Village to share future sales tax receipts collected on sales made by the Osco Drug, Inc. retail store. Maximum amount to be remitted by the Village is $250,000 and payments — will not begin until the Village starts to receive sales tax revenue for sales made by the store. No payments were made to Osco Drug, Inc. during 2002. d. Gary D. McGrath On January 14, 2002,the Village entered into a redevelopment agreement for the Waukegan Road TIF District Redevelopment Area"B"with Gary D. McGrath, a local auto dealership owner. The agreement calls for Mr. McGrath to purchase properties of ... the north portion of Redevelopment Area`B"for$1,799,412 and for the Village to remit to him a portion of the sales tax receipts collected on sales made by the new auto dealership, McGrath Acura,which is planned to be located on the purchased properties. — Maximum amount to be remitted by the Village is$500,000,provided that the Village does not require site improvements costing in excess of that amount. Payments will not begin until the calendar year following the start of operations. — e. Menard's, Inc. — On February 25, 2002,the Village entered into an economic development agreement with Menard's, Inc.,which constructed a home improvement center site in the Village during 2002. The agreement calls for the Village to share sales tax receipts on sales — made by the home improvement center. The maximum amount to be remitted by the Village is $340,144 and payments will not begin until December 1,2003 and will be — made over at least a five year period. f. Dominick's Finer Foods,Inc. — On September 9, 2002,the Village entered into an economic development agreement with Dominick's Finer Foods, Inc.,which is planning to remodel/renovate the existing — supermarket located in the Prairie View Plaza Shopping Center. The agreement calls for the Village to share future sales tax receipts upon completion of the remodeUrenovation. Maximum to be remitted by the Village is $300,000. Payments begin on January 1 following renovation and ending each December 31. As of December 31, 2002,the existing supermarket renovation has not been completed. No payments were made to Dominick's Finer Foods, Inc. during 2002. — 47 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. ECONOMIC DEVELOPMENT AND REDEVELOPMENT AGREEMENTS (Continued) g. Bond Drug Company of Illinois, dba Walgreens and MRD -Morton Grove,LP On June 1, 1999, the Village entered into a redevelopment agreement with Bond Drug Company of Illinois (Walgreens)and MRD -Morton Grove,LP to develop a site for a Walgreens Drug Store in the Village. The Village has required, as part of the redevelopment agreement,that certain infrastructure improvements be constructed. In order to comply with the Village's requirements for infrastructure improvement the Village has agreed to enter into a sales tax revenue sharing program upon the commencement of retail operations to be public. The first $110,000 of sales tax revenue shall be retained by the Village. The program will continue until the Developer's receipt of$253,320 or ten years following the opening of the store, whichever comes first. The Village will retain 100%of the sales tax on the first $2,000,000 of annual sales and will share equally in the sales tax on annual sales exceeding $3,000,000. 14. POSTEMPLOYMENT BENEFITS The Village offers post-retirement health care benefits in accordance with Illinois Compiled Statutes and the personnel policy manual of the Village. All employees who are eligible to receive a monthly pension benefit from one of the Village's pension plans are eligible to purchase post-retirement health care benefits. Qualified dependents of eligible retirees may also continue to be covered by the Village's plan. The Village has chose to designate $475,890 of its fund balance for severance payments to be made in the future to all civilian employees who are at least age 60 and have 5 years or more of service or are any age,but have 30 years of service and sworn personnel who are at least age 50 and have 20 years of service. The amount designated represents the amount of benefits earned by each employee who meets the criteria noted above. 15. EMPLOYEE RETIREMENT SYSTEMS Plan Descriptions The Village contributes to three defined benefit pension plans, the Municipal Employees' Retirement Fund (MERF), a single employer plan; the Police Pension Plan which is a single-employer pension plan; and, the Firefighters' Pension Plan which is also a single- employer pension plan. The benefits,benefit levels, employee contributions and employer contributions for all three plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. None of the pension plans issue separate reports on the pension plans. -48 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -' 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) Plan Descriptions (Continued) At December 31, 2002, the Municipal Employees' Retirement Fund membership consisted _ of: Retirees and beneficiaries currently receiving benefits 8 — Terminated employees entitled to benefits but not yet receiving them 12 Current employees Vested 55 Partially vested 33 Nonvested 1 TOTAL 109 Police Pension Police sworn personnel are covered by the Police Pension Plan which is a defined benefit single-employer pension plan. Although this is a single-employer pension plan, the defined — benefits and employee and employer contributions levels are govemed by Illinois Compiled Statutes (Chapter 40 - Article 5/3) and may be amended only by the Illinois — legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2002, the Police Pension Plan membership consisted of: — Retirees and beneficiaries currently receiving benefits 32 Terminated employees entitled to benefits but not yet receiving them - Current employees Vested 29 Nonvested 17 TOTAL 78 The Police Pension Plan provides retirement benefits as well as death and disability — benefits. Employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one-half of the salary attached — to the rank 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 2.50% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least eight years but less than 20 years of credited service may retire at "' or after age 60 and receive a reduced benefit. The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, — following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3.00% of the original pension and 3.00% simple interest annually thereafter. 49 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) Plan Descriptions (Continued) Police Pension (Continued) Covered employees are required to contribute 9.91%of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan as actuarially determined by an enrolled actuary. Effective July 1, 1993, the Village has until 2033 to fully fund the past service cost for the Police Pension Plan. For the year ended December 31, 2002,the Village's contribution was 4.21% of covered payroll. Firefighters' Pension Fire sworn personnel are covered by the Firefighters' Pension Plan which is a defined benefit single-employer pension plan. Although this is a single-employer pension plan, the defined benefits as well as the employee and employer contributions levels are mandated by Illinois Compiled Statutes (Chapter 40 - Article 5/4) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2002, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 28 Terminated employees entitled to benefits but not yet receiving them 1 Current employees Vested 29 Nonvested 15 TOTAL 73 The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive a monthly retirement benefit of one-half of the monthly salary attached to the rank held in the fire service at the date of retirement. The monthly pension shall be increased by 1/12 of 2.50%of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75% of such monthly salary. Employees with at least ten years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a 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 paid upon reaching at least the age 55, by 3% of the original pension and 3% annually thereafter. - 50- VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) Plan Descriptions (Continued) Firefighters' Pension(Continued) — Covered employees are required to contribute 8.455% of their 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 as actuarially determined by an enrolled actuary. Effective July 1, 1993, the — Village has until the year 2033 to fully fund the past services costs for the Firefighters' Pension Plan. For the year ended December 31, 2002, the Village's contribution was 8.76% of covered payroll. Summary of Significant Accounting Policies and Plan Asset Matters — There are no significant investments (other than U.S Government guaranteed obligations) in any one organization that represent 5.00% or more of plan net assets for either the Police or the Firefighter's Pension Plans. Animal Pension Cost Municipal Employees' Police Firefighters' — Retirement Fund Pension Pension Actuarial Valuation Date December 31, December 31, December 31, 2002 2002 2002 — Actuarial Cost Method Projected Entry-age Entry-age Unit Credit Normal Normal — Asset Valuation Method Market Market Market Amortization Method Level Level Level Percentage of Percentage of Percentage of Payroll Payroll Payroll Amortization Period 40 Years, 40 Years, 40 Years, - Closed Closed Closed — 51 - VILLAGE OF MORTON GROVE, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) Summary of Significant Accounting Policies and Plan Asset Matters (Continued) Annual Pension Cost (Continued) Municipal Employees' Police Firefighters' Retirement Fund Pension Pension Significant Actuarial Assumptions a) Rate of Return on 8.00% 7.50% 7.50% Present and Future Assets Compounded Compounded Compounded Annually Annually Annually b) Projected Salary Increase- 4.00% 4.00% 4.00% Attributable to Inflation Compounded Compounded Compounded Annually Annually Annually c) Additional Projected 1.00% 1.00% 1.00% Salary Increases - Seniority/Merit d.) Post-Retirement Benefit Increases None 3.00% 3.00% Net Pension Obligation The Village's annual pension cost and net pension obligation for the current year were as follows: Municipal Employees' Police Firefighters' Retirement Pension Pension Annual required contributions $ 396,763 $ 742,025 $ 785,623 Interest on net pension obligation (1,794) 156,721 185,162 Adjustment to annual required contribution 1,226 (108,601) (128,309) Annual pension cost 396,195 790,145 842,476 Contributions made 393,701 125,517 257,448 Increase(decrease) in net pension obligation (asset) 2,494 664,628 585,028 Net pension obligation (asset)beginning of year (22,424) 2,089,612 2,468,827 NET PENSION OBLIGATION(ASSET) END OF YEAR $ (19,930) $ 2,754,240 $ 3,053,855 — - 52 - VILLAGE OF MORTON GROVE, ILLINOIS _ NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) Trend Information Trend information gives an indication of the progress made in accumulating sufficient — assets to pay benefits when due. Municipal — Employees' Fiscal Retirement Police Firefighters' Year Fund Pension Pension — Annual pension cost 2000 $ 347,740 $ 583,271 $ 673,037 (APC) 2001 375,749 654,189 698,498 2002 396,195 790,145 842,476 Actual contribution 2000 $ 349,120 $ - $ 49,564 2001 345,575 99,519 107,082 — 2002 393,701 125,517 257,448 Percentage of APC 2000 100.04% -% 7.36% — contributed 2001 91.97 15.21 15.33 2002 99.37 15.89 30.56 — NPO (Asset) 2000 $ (52,598) $ 1,534,942 $ 1,877,411 2001 (22,424) 2,089,612 2,468,827 2002 (19,930) 2,754,240 3,053,855 16. PRIOR PERIOD ADJUSTMENTS — Fund balances of the governmental funds in the fund financial statements have been restated as of the beginning of the year for the effect of implementing GASB Statement No. 33,Accounting and Financial Reporting for Nonexchange Transactions. This resulted in a — net decrease in fund balance in the following governmental funds totaling $120,096: General Fund ($23,959); Revolving Equipment Replacement Fund($12,634); and Capital Projects Fund ($6,497). Further, a prior period adjustment was made to correct an error — made in the prior year recording accrued interest in governmental fund type funds. This resulted in a net increase in fund balance in the following governmental funds totaling $249,893: Debt Service Fund$50,928; Waukegan Road TIF Fund $181,723; Economic — Development Fund$15,907; and Lehigh/Ferris TIF Fund $1,335. Additionally, a prior period adjustment was made to accrue for health insurance claims liability at the beginning of the year. This resulted in a further decrease in fund balance in the governmental funds — of$65,086. A prior period adjustment was also made to recognize the liability for sick leave at — December 31, 2001. This resulted in a net increase in the General Long-Term Debt Account Group related to accrued employee benefits of$390,969. Fund balance in the General Fund was restated to correct an error in the amount of the Village's member — balance in IRMA. This restatement resulted in a reduction of fund balance of$436,070. - 53 - 1 u., REQUIRED SUPPLEMENTAL INFORMATION her a a a VILLAGE OF MORTON GROVE,ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS MUNICIPAL EMPLOYEES'RETIREMENT FUND December 31,2002 (2) (4) UAAL Actuarial Unfunded (OAAL) Accrued (Overfunded) As a (1) Liability (3) AAL Percentage Actuarial Actuarial (AAL) Funded (UAAL) (5) of Covered Valuation Value of -Projected Ratio (OAAL) Covered Payroll Date Assets Union Credit (1)/(2) (2) -(1) Payroll (4)/(5) January 1, 1998 $ 4,957,789 $ 6,048,523 81.97% $ 1,090,734 $ 3,954,073 27.59% January 1, 1999 4,859,703 6,268,024 77.53% 1,408,321 4,100,806 34.34% January 1,2000 5,445,472 7,128,073 76.39% 1,682,601 4,350,879 38.67% January 1,2001 4,726,250 6,964,171 67.87% 2,237,921 4,010,146 55.81% January 1,2002 5,186,690 7,644,749 67.85% 2,458,059 4,020,911 61.13% January 1,2003 5,824,433 8,369,008 69.60% 2,544,575 4,269,622 59.60% (See independent auditor's report.) -54- VILLAGE OF MORTON GROVE, ILLINOIS — REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND December 31, 2002 (4) UAAL — (2) Unfunded (OAAL) Actuarial (Overfunded) As a (I) Accrued (3) AAL Percentage — Actuarial Actuarial Liability Funded (UAAL) (5) of Covered Valuation Value of (AAL) Ratio (OAAL) Covered Payroll Date Assets -Entry Age (1)/(2) (2) -(1) Payroll (4)/(5) — April 30, 1997 $19,693,691 $ 19,296,271 102.06% $ (397,420) $ 2,317,861 (17.15%) April 30, 1998 20,654,975 20,596,186 100.29% (58,789) 2,342,906 (2.51%) December 31, 1999 20,862,356 24,297,715 85.86% 3,435,359 2,570,118 133.67% December 31,2000 21,942,289 25,772,504 85.14% 3,830,215 2,779,514 137.80% December 31,2001 22,727,614 28,681,447 79.24% 5,953,833 2,810,574 211.84% December 31,2002 23,419,642 30,516,255 76.74% 7,096,613 2,983,301 237.88% (See independent auditor's report.) -55 - VILLAGE OF MORTON GROVE, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FIREFIGHTERS'PENSION FUND — December 31,2002 UAAL (2) (4) (OAAL) Actuarial Unfunded As a (1) Accrued (3) (Overfunded) Percentage Actuarial Actuarial Liability Funded AAL (5) of Covered Valuation Value of (AAL) Ratio (UAAL) Covered Payroll Date Assets -Entry Age (1)1(2) (2)-(1) Payroll (4)/(5) April 30, 1997 $ 14,277,508 $ 15,251,198 93.62% $ 973,690 $ 2,295,577 42.42% April 30, 1998 15,562,975 16,411,800 94.83% 848,825 2,363,689 35.91% December 31, 1999 16,941,715 21,020,138 80.60% 4,078,423 2,582,815 157.91% v- December 31, 2000 17,262,812 21,334,542 80.91% 4,071,730 2,616,153 155.64% — December 31,2001 17,631,091 23,249,594 75.83% 5,618,503 2,709,263 207.38% December 31, 2002 17,733,693 24,693,909 71.81% 6,960,216 2,938,190 236.89% (See independent auditor's report.) -56- VILLAGE OF MORTON GROVE, ILLINOIS — REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS MUNICIPAL EMPLOYEES' RETIREMENT FUND December 31, 2002 — Annual Pension Calendar Employer Cost Percentage Year Contributions (APC) Contributed 1997 $ 302,011 $ 279,423 108.08% 1998 224,890 286,805 78.41% 1999 310,001 308,622 100.45% 2000 349,120 347,740 100.40% 2001 345,575 375,749 91.97% 2002 393,701 396,195 99.37% r (See independent auditor's report.) -57 - VILLAGE OF MORTON GROVE, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND December 31, 2002 Annual Pension Fiscal Employer Cost Percentage Periods Contributions (APC) Contributed April 30, 1997 $ 25,759 $ 182,777 14.09% April 30, 1998 13,428 280,713 4.78% December 31, 1999 - 539,109 0.00% December 31, 2000 - 583,271 0.00% December 31, 2001 99,519 654,189 15.21% December 31,2002 125,517 790,145 15.89% (See independent auditor's report.) - 58 - VILLAGE OF MORTON GROVE, ILLINOIS — REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS'PENSION FUND December 31, 2002 — Annual Pension _ Fiscal Employer Cost Percentage Periods Contributions (APC) Contributed April 30, 1997 $ 25,955 $ 373,156 6.96% April 30, 1998 42,754 429,975 9.94% December 31, 1999 215,369 760,965 28.30% December 31, 2000 49,564 673,037 7.36% December 31, 2001 107,082 698,498 15.33% December 31, 2002 257,448 842,476 30.56% (See independent auditor's report.) - 59 - b. . GOVERNMENTAL FUND TYPES Nri ti L L 1. . - , • L r 4 • r /3/4 t oat lma T GENERAL FUND The General Fund is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund. It receives a greater variety and amount of revenues and finances a wider range of governmental activities than any other fund. Major functions financed by the General Fund include: Legislative Administrative Legal Finance Management Information Systems Police Fire/ESDA Public Works Vehicle Maintenance Solid Waste Disposal Health and Human Services Community Development Building and Inspectional Services VILLAGE OF MORTON GROVE,ILLINOIS — BALANCE SHEET GENERAL FUND December 31,2002 (With Comparative Totals for 2001) 2002 2001 ASSETS — Cash and cash equivalents $ 2,694,528 $ 1,158,353 Receivables Property taxes-net 4,298,431 4,350,207 Sales tax 1,182,300 1,993,704 State income tax - 1 10,928 Miscellaneous accounts 366,928 182,965 Due from other funds 910,199 716,369 Prepaid insurance premiums 82,719 44,686 Escrow for excess losses- IRMA 436,070 1,023,187 TOTAL ASSETS $ 9,971,175 $ 9,580,399 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 301,593 $ 450,439 Accrued salaries payable 307,540 342,625 Claims payable 130,280 - Compensated absences payable 7,302 8,040 Deferred property tax revenue 4,298,431 4,332,517 r Deferred revenue-other 436,070 - Due to other funds 10,336 274,579 Deposits refundable 40,933 42,717 Total liabilities 5,532,485 5,450,917 — FUND BALANCE Reserved for prepaid items 82,719 44,686 Unreserved,designated for escrow for — excess losses -IRMA - 1,023,187 Unreserved, designated for self health insurance costs - 625,225 Unreserved,designated for accrued employee benefits 475,890 390,969 Unreserved, designated for Village Hall rehabilitation 200,000 200,000 Unreserved, designated for Drug Enforcement Act 90,718 6,375 Unreserved, undesignated 3,589,363 1,839,040 Total fund balance 4,438,690 4,129,482 TOTAL LIABILITIES AND FUND BALANCE $ .9,971,175 $ 9,580,399 See accompanying notes to financial statements. - 60- VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 .." Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES %iv Sales taxes $ 4,696,213 $ 5,549,010 $ 852,797 $ 7,289,775 Property taxes 4,148,351 4,121,561 (26,790) 3,891,695 State income taxes 1,621,672 1,344,499 (277,173) 1,434,535 Telecommunications taxes 832,000 782,602 (49,398) 790,737 .4. Other taxes 1,598,789 1,629,672 30,883 1,002,772 Licenses and permits 1,068,280 1,143,947 75,667 830,866 Intergovernmental 2,000 - (2,000) 5,153 Charges for services 274,908 205,964 (68,944) 210,664 o.- Fines 280,000 239,202 (40,798) 240,989 Investment income 70,000 20,602 (49,398) 62,478 Cable TV franchise fees 146,750 157,530 10,780 147,443 Infrastructure maintenance fees 113,400 136,371 22,971 109,793 Miscellaneous 526,570 243,045 (283,525) 117,218 Total revenues 15,378,933 15,574,005 195,072 16,134,118 EXPENDITURES General government 2,437,056 2,711,127 (274,071) 2,444,579 Public safety 9,178,074 9,061,192 116,882 8,675,989 Streets and sidewalks 1,854,525 1,862,120 (7,595) 1,911,243 Sanitation 1,337,152 1,370,045 (32,893) 1,400,012 Vehicle maintenance 598,649 544,969 53,680 694,404 Health and human services 474,122 465,655 8,467 311,790 Community development 144,464 153,182 (8,718) 140,336 Buildings and inspection services 693,078 606,281 86,797 727452 N... Total expenditures 16,717,120 16,774,571 (57,451) 16,306,005 EXCESS(DEFICIENCY)OF REVENUES .../ OVER EXPENDITURES (1,338,187) (1,200,566) 137,621 (171,887) OTHER FINANCING SOURCES(USES) Operating transfers in Water and Sewer Fund 110,000 110,000 - 105,000 Motor Fuel Tax Fund 311,710 311,710 - 287,366 Commuter Parking Facility 74,700 74,700 - 68,400 Economic Development Fund - 1,600,000 1,600,000 - Sale of surplus equipment 40,000 15,485 (24,515) 31,915 Total other financing sources(uses) 536,410 2,111,895 1,575,485 492,681 EXCESS(DEFICIENCY)OF REVENUES - AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (801,777) 911,329 $ 1,713,106 320,794 ••' FUND BALANCES,JANUARY I, AS PREVIOUSLY REPORTED 4,129,482 3,808,688 Prior period adjustment (602,121) - FUND BALANCES,JANUARY 1, AS RESTATED 3,527,361 3,808,688 - FUND BALANCES,DECEMBER 31 $ 4,438,690 $ 4,129,482 .- See accompanying notes to financial statements. -61- VILLAGE OF MORTON GROVE,ILLINOIS SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2002 • (With Comparative Actual for 2001) 2002 - Variance Favorable 2001 Budget Actual (Unfavorable) Actual - GENERAL GOVERNMENT Legislative Personal services S 73,086 S 72,070 S 1,016 S 72,400 Contractual services 30,877 33,627 (2,750) 44,114 Commodities 500 1,158 (658) 706 Total legislative 104,463 106,855 (2,392) 117,220 - Administrative Personal services 341,875 346,532 (4,657) 318,681 Contractual services 30,718 30,466 252 37,518 Commodities 2,800 4,145 (1,345) 2,690 Total administrative 375,393 381,143 (5,750) 358,889 Financial Personal services 380,801 388,901 (8,100) 343,037 Contractual services 903,464 1,162,922 (259,458) 832,013 Commodities 16,000 14,761 1,239 15,449 Total financial 1,300.265 1,566,584 (266.319) 1,190,499 Management Information Services Professional services 31,133 31,254 (121) - Contractual services 182,052 195,948 (13,896) 343,052 Commodities - 1,625 (1,625) - Capital outlay 23,250 22,225 1,025 49,010 Total management information services 236,435 251,052 (14,617) 392,062 Legal -. Contractual services 207,750 197,521 10,229 234,934 Other expenditures -- Health insurance assessment 100,000 44,387 55.613 96,007 Reserve for retirement 75,000 26,465 48,535 - Reserve compensation - 111,598 (111,598) - - Other 37,750 25,522 12,228 54,968 Total other expenditures 212,750 207.972 4,778 150.975 Total general govemment 2.437,056 7,711,127 (274,071) 2,444,579 (This schedule is continued on the following pages.) -62 - VILLAGE OF MORTON GROVE, ILLINOIS SCHEDULE OF EXPENDITURES -BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2002 • (With Comparative Actual for 2001) 2002 Variance Favorable 2001 ... Budget Actual (Unfavorable) Actual PUBLIC SAFETY Police Personal services $ 4,613,763 $ 4,567,951 $ 45,812 $ 4,334,855 Contractual services 174,180 146,322 27,858 124,499 Commodities 92,631 90,407 2,224 95,432 ‘.r Capital outlay 115,200 117,373 (2,173) 106,123 Total police 4,995,774 4,922,053 73,721 4,660,909 Fire Personal services 3,728,334 3,772,625 (44,291) 3,611,135 Contractual services 283,697 242,368 41,329 204,924 Commodities 132,310 91,382 40,928 124,907 Capital outlay 26,400 23,628 2,772 65,860 Total fire 4,170,741 4,130,003 40,738 4,006,826 Civil preparedness Personal services 665 667 (2) 696 ` Contractual services 5,394 3,575 1,819 3,246 Commodities 5,500 4,894 606 4,312 Total civil preparedness 11,559 9,136 2,423 8,254 Total public safety 9,178,074 9,061,192 116,882 8,675,989 STREETS AND SIDEWALKS Streets and sidewalks Personal services 1,408,510 1,412,123 (3,613) 1,388,113 Contractual services 208,222 211,147 (2,925) 274,421 Commodities 76,800 81,715 (4,915) 96,107 Capital outlay 5,500 5,110 390 28,185 Total streets and sidewalks 1,699,032 1,710,095 (11,063) 1,786,826 Engineering Personal services 141,265 139,484 1,781 116,337 Contractual services 11,928 - 10,007 1,921 4,240 Commodities 2,300 2,534 (234) 3,840 Total engineering 155,493 152,025 3,468 124,417 Total streets and sidewalks 1,854,525 1,862,120 (7,595) 1,911,243 (This schedule is continued on the following pages.) - -63 - VILLAGE OF MORTON GROVE, ILLINOIS SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual - SANITATION Services and charges S 1,337,152 S 1,370,310 S (33,158) S 1,400,821 Commodities - (265) 265 (809) Total sanitation 1337,152 1,370,045 (32,893) 1,400,012 VEHICLE MAINTENANCE ^ Personal services 272,534 272,287 247 280,882 Contractual services 48,475 29,170 19,305 128,622 Commodities 277,640 243,512 34,128 281,539 Capital outlay - 3,361 Total vehicle maintenance 598,649 544,969 53,680 694,404 HEALTH AND HUMAN SERVICES Family and Senior Services Personal services 335,219 334,396 823 261,731 „... Contractual services 83,603 80,498 3,105 29,757 Commodities 55,300 50,761 4,539 4,864 Capital Outlay - - - 15.438 - Total health and human services 474,122 465,655 8-467 311.790 COMMUNITY DEVELOPMENT Personal services 120,004 128,474 (8,470) 112,434 Contractual services 22,910 23,490 (580) 27,074 Capital outlay 1,550 1.218 332 828 ,- Total community development 144,464 153,182 (8,718) 140,336 BUILDING AND INSPECTION SERVICES Building and Inspectional Services Personal services 373,681 373,717 (36) 361,622 Contractual services 7,355 11,299 (3,944) 5,109 's. Commodities 1,695 1,933 (238) 2,291 Capital outlay - - - 15,438 Total building and inspectional services 382,731 386,949 (4.218) 384,460 (This schedule is continued on the following paee.) -64- VILLAGE OF MORTON GROVE,ILLINOIS SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Nur Budget Actual (Unfavorable) Actual BUILDING AND INSPECTION SERVICES (Continued) Municipal buildings Personal services $ 13,972 $ 12,741 $ 1,231 $ 13,323 Contractual services 287,150 200,329 86,821 298,415 Commodities 9,225 6,262 2,963 10,044 Capital outlay - - - 21,410 dir Total municipal buildings 310,347 219,332 91,015 343,192 Total building and inspection services 693,078 606,281 86,797 727,652 TOTAL EXPENDITURES $ 16,717,120 $ 16,774,571 $ (57,451) $ 16.306,005 ti (See independent auditor's report.) -65- • 4/ • SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects)that are legally restricted to expenditures for specific purposes. Nine individual funds are reported within the Special Revenue Funds as follows: Municipal Employees' Retirement Fund- accounts for taxes levied to provide retirement benefits ` and long-term disability insurance for all full-time civilian employees. The Village provides its own private insurance for the benefits and is not a participant of the Illinois Municipal Retirement Fund. Motor Fuel Tax Fund - accounts for monies received from the State levied tax on the sale of fuels and the expenditures for capitalized construction, improvements or general maintenance to the Village roadway system. Community Development Block Grant Fund-accounts for federal and county grant revenues used for residential rehabilitation, code enforcement and other related expenditures. Revolving Equipment Replacement Fund-accounts for the cost of replacing major equipment in the Public Works or Fire department areas. Revenues are primarily received from the share of the State income tax and the State of Illinois as a reimbursement for maintenance of state-owned highways within the corporate limits of Morton Grove. Commuter Parking Facility Fund-accounts for the cost of major improvements and general maintenance to the commuter parking facility on Lehigh Avenue. Revenues are primarily received from the daily parking fee imposed on the users of the facility. 9-1-1 Emergency Telephone System Fund- accounts for telephone surcharge fees collected for the 9-1-1 emergency telephone system. The funds are to be disbursed for the purchase and subsequent maintenance of that system. Waukegan Road Tax Increment Financing Fund- accounts for tax increment revenue and other financial resources received along with the costs related to the Village's Tax Increment Financing (TIF) Projects. The fund entails the TIF District along Waukegan Road. The TIF District is authorized by State law and is created to promote redevelopment of certain parcels declared as "blighted" into a higher and more productive land use. .. Economic Development Fund - accounts for expenditures related to promoting economic development throughout the Village. The fund also accounts for non-TIF redevelopment costs including those that support an existing TIF but whose redevelopment is not directly within a TIF .— established district. Lehigh/Ferris Tax Increment Financing Fund- accounts for tax increment revenue and other financial resources received along with the costs related to the Village's Tax Increment Financing (TIF) Projects. The fund entails the TIF District along Lehigh and Ferris Avenues. 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Q o u i Li La °o w ■ VILLAGE OF MORTON GROVE, ILLINOIS BALANCE SHEET MUNICIPAL EMPLOYEES' RETIREMENT FUND December 31, 2002 - (With Comparative Amounts for 2001) 2002 2001 — ASSETS Cash and cash equivalents $ 1,438 $ 195,713 — Property taxes receivable- net 257,491 249,091 Due from other funds 10,882 — TOTAL ASSETS $ 269,811 $ 444,804 LIABILITIES AND FUND BALANCE LIABILITIES — Accounts payable $ - $ 6,352 Deferred property tax revenue 257,491 248,119 Due to other funds 25,431 212,394 Total liabilities 282,922 466,865 FUND BALANCE (DEFICIT) (13,111) (22,061) TOTAL LIABILITIES AND FUND BALANCE $ 269,811 $ 444,804 See accompanying notes to financial statements. - 69 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL MUNICIPAL EMPLOYEES'RETIREMENT FUND +.- For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES Property taxes $ 236,555 $ 237,534 $ 979 $ 190,732 Other taxes 57,981 83,728 25,747 57,802 Employee contributions 78,564 1,081 (77,483) - Investment income 3,750 5,217 1,467 4,670 Total revenues 376,850 327,560 (49,290) 253,204 EXPENDITURES Retirement costs Village share of retirement cost 360,912 292,068 68,844 261,770 Long-term disability insurance premiums 10,938 8,056 2,882 7,448 Actuarial fees 4,500 9,740 (5,240) 4,440 Attorney's fee 500 8,746 (8,246) 3,059 Total expenditures 376,850 318,610 58,240 276,717 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES $ - 8,950 $ 8,950 (23,513) .. FUND BALANCE(DEFICIT),JANUARY 1 (22,061) 1,452 FUND BALANCE(DEFICIT),DECEMBER 31 $ (13,111) $ (22.061) See accompanying notes to financial statements. -70- VILLAGE OF MORTON GROVE, ILLINOIS _ BALANCE SHEET MOTOR FUEL TAX FUND December 31, 2002 (With Comparative Amounts for 2001) 2002 2001 — ASSETS Cash and cash equivalents $ 162,620 $ 144,361 Receivable Allotments available 53,948 52,410 Due from other funds 41,605 TOTAL ASSETS $ 258,173 $ 196,771 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 9,785 $ 16,909 Due to other funds - 25,262 Total liabilities 9,785 42,171 — FUND BALANCE 248,388 154,600 TOTAL LIABILITIES AND FUND BALANCE $ 258,173 $ 196,771 See accompanying notes to financial statements. _ - 71 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL MOTOR FUEL TAX FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual y REVENUES Intergovernmental Motor fuel taxes $ 638,730 $ 638,715 $ (15) $ 631,562 Investment income 2,000 1,623 (377) 6,456 Total revenues 640,730 640,338 (392) 638,018 EXPENDITURES Streets and sidewalks Materials 327,620 177,170 150,450 236,072 Lighting 34,400 57,670 (23,270) 86,515 Total expenditures 362,020 234,840 127,180 322,587 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 278,710 405,498 126,788 315,431 OTHER FINANCING SOURCES(USES) Operating transfers(out) General Fund (311,710) (311,710) - (287,366) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (33,000) 93,788 $ 126,788 28,065 FUND BALANCE,JANUARY 1 154,600 126,535 FUND BALANCE,DECEMBER 31 $ 248,388 $ 154,600 See accompanying notes to financial statements. -72- VILLAGE OF MORTON GROVE, ILLINOIS BALANCE SHEET COMMUNITY DEVELOPMENT BLOCK GRANT FUND December 31, 2002 (With Comparative Amounts for 2001) 2002 2001 — ASSETS Cash and cash equivalents $ 3,851 $ 5,160 — Due from other funds 4,227 4,227 TOTAL ASSETS $ 8,078 $ 9,387 LIABILITIES AND FUND BALANCE LIABILITIES None $ - $ - FUND BALANCE 8,078 9,387 — TOTAL LIABILITIES AND - FUND BALANCE $ 8,078 $ 9,387 See accompanying notes to financial statements. - 73 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES Intergovernmental $ - $ 916 $ 916 $ 42,106 Investment income - 77 77 344 Total revenues - 993 993 42,450 EXPENDITURES Home care services Contractual services - 2,302 (2,302) 43,645 S Total expenditures - 2,302 (2,302) 43,645 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES - (1,309) $ (1,309) (1,195) FUND BALANCE,JANUARY 1 9,387 10,582 FUND BALANCE,DECEMBER 31 $ 8,078 $ 9,387 See accompanying notes to financial statements. -74- VILLAGE OF MORTON GROVE, ILLINOIS BALANCE SHEET REVOLVING EQUIPMENT REPLACEMENT FUND _ December 31, 2002 (With Comparative Amounts for 2001) — 2002 2001 — ASSETS Cash and cash equivalents $ 64,658 $ 26,543 — State income tax receivable - 13,881 Accounts receivable 16,000 48,269 Due from other funds - 13,770 — TOTAL ASSETS $ 80,658 $ 102,463 LIABILITIES AND FUND BALANCE LIABILITIES Due to other funds $ 112,147 $ 235,425 Total liabilities 112,147 235,425 — FUND BALANCE (DEFICIT) (31,489) (132,962) TOTAL LIABILITIES AND r FUND BALANCE $ 80,658 $ 102,463 See accompanying notes to financial statements. - 75 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL REVOLVING EQUIPMENT REPLACEMENT FUND .- - For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES State income taxes $ 164,904 $ 139,235 $ (25,669) $ 179,509 Other taxes 14,000 21,533 7,533 13,491 Charges for services 64,307 63,690 (617) 64,285 Investment income 3,000 2,065 (935) 2,156 s Total revenues 246,211 226,523 (19,688) 259,441 EXPENDITURES Streets and sidewalks Capital outlay - - - 181,601 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 246,211 226,523 (19,688) 77,840 OTHER FINANCING SOURCES (USES) Operating transfers in Economic Development Fund - 100,000 100,000 - Operating transfers(out) Debt Service Fund (261,211) (212,416) 48,795 (306,558) Sale of surplus equipment 15,000 - (15,000) - Total other financing sources(uses) (246,211) (112,416) 133,795 (306,558) EXCESS(DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ - 114,107 $ 114,107 (228,718) ... FUND BALANCE(DEFICIT),JANUARY 1 AS PREVIOUSLY REPORTED (132,962) 95,756 Prior period adjustment (12,634) - FUND BALANCE(DEFICIT),JANUARY 1 AS RESTATED (145,596) 95,756 FUND BALANCE(DEFICIT),DECEMBER 31 $ (31,489) $ (132,962) i... See accompanying notes to financial statements. -76- VILLAGE OF MORTON GROVE, ILLINOIS _ BALANCE SHEET COMMUTER PARKING FACILITY FUND — December 31, 2002 (With Comparative Amounts for 2001) — 2002 2001 — ASSETS Cash and cash equivalents $ 160,631 $ 182,667 — TOTAL ASSETS $ 160,631 $ 182,667 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 250 $ 76 FUND BALANCE 160,381 182,591 TOTAL LIABILITIES AND FUND BALANCE $ 160,631 $ 182,667 See accompanying notes to financial statements. - 77 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL COMMUTER PARKING FACILITY FUND `-' For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES Charges for services $ 128,400 $ 89,255 $ (39,145) $ 85,813 Investment income 10,000 1,916 (8,084) 5,733 Total revenues 138,400 91,171 (47,229) 91,546 EXPENDITURES Streets and sidewalks Utilities and maintenance of street lighting 4,000 2,367 1,633 2,996 Commodities 24,550 13,654 10,896 8,017 Capital outlay 15,500 9,910 5,590 1,334 Total expenditures 44,050 25,931 18,119 12,347 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 94,350 65,240 (29,110) 79,199 OTHER FINANCING SOURCES(USES) Operating transfers(out) General Fund (74,700) (74,700) - (68,400) Water and Sewer Fund (12,750) (12,750) - (11,650) Total other financing sources(uses) (87,450) (87,450) - (80,050) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER r. FINANCING USES $ 6,900 (22,210) $ (29,110) (851) FUND BALANCE,JANUARY 1 182,591 183,442 FUND BALANCE,DECEMBER 31 $ 160,381 $ 182,591 See accompanying notes to financial statements. -78 - VILLAGE OF MORTON GROVE, ILLINOIS BALANCE SHEET 9-1-1 EMERGENCY TELEPHONE SYSTEM FUND — December 31, 2002 (With Comparative Amounts for 2001) 2002 2001 ASSETS Cash and cash equivalents $ 255,334 $ 173,078 — Miscellaneous accounts receivable 24,248 20,004 TOTAL ASSETS $ 279,582 $ 193,082 — LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 183,964 $ 729 — Accrued salaries and wages - 319 Due to other funds - 20 Total liabilities 183,964 1,068 — FUND BALANCE 95,618 192,014 TOTAL LIABILITIES AND FUND BALANCE $ 279,582 $ 193,082 See accompanying notes to financial statements. - 79 - L VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL 9-1-1 EMERGENCY TELEPHONE SYSTEM FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 a- Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES Surcharge fees $ 188,000 $ 221,018 $ 33,018 $ 183,147 Investment income 1,000 154 (846) 1,170 Miscellaneous income 50,000 - (50,000) - Total revenues 239,000 221,172 (17,828) 184,317 EXPENDITURES Public safety ' Personal services 2,900 - 2,900 55,660 Contractual services 88,950 70,061 18,889 64,479 Commodities 1,100 599 501 127 Capital outlay 297,250 246,908 50,342 - Total expenditures 390,200 317,568 72,632 120,266 EXCESS(DEFICIENCY) OF REVENUES OVER EXPENDITURES $ (151,200) (96,396) $ 54,804 64,051 FUND BALANCE,JANUARY 1 192,014 127,963 FUND BALANCE,DECEMBER 31 $ 95,618 $ 192,014 See accompanying notes to financial statements. -80- VILLAGE OF MORTON GROVE, ILLINOIS _ BALANCE SHEET WAUKEGAN ROAD TAX INCREMENT FINANCING FUND — December 31, 2002 (With Comparative Amounts for 2001) 2002 2001 ASSETS Cash and cash equivalents $ 36,985 $ 40,086 — TOTAL ASSETS $ 36,985 $ 40,086 LIABILITIES ANT) FUND BALANCE — LIABILITIES Accounts payable $ - $ 23,284 Accrued interest payable - 181,723 — Due to other funds 738,779 484,449 Total liabilities 738,779 689,456 FUND BALANCE (DEFICIT) (701,794) (649,370) — TOTAL LIABILITIES AND FUND BALANCE $ 36,985 $ 40,086 See accompanying notes to financial statements. 81 VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL WAUKEGAN ROAD TAX INCREMENT FINANCING FUND For the Year Ended December 31,2002 ,.-. (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES Property taxes $ 100,000 $ - $ (100,000) $ Investment income 2,800 664 (2,136) 8,650 Total revenues 102,800 664 (102,136) 8,650 EXPENDITURES Current Economic development Redevelopment of area"B" Contractual services 11,000 9,749 1,251 25,709 Capital outlay - 979,785 (979,785) - Total redevelopment of area"B" 11,000 989,534 (978,534) 25,709 Initial start-up costs Contractual services - - - 21.476 Debt service Interest 30,000 304,367 (274,367) - Total expenditures 41,000 1.293,901 (1,252,901) 47,185 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 61,800 (1,293,237) (1,355,037) (38,535) OTHER FINANCING SOURCES(USES) Operating transfers(out) Debt Service Fund - - - (302,063) Installment contract proceeds - 5,300,000 5,300,000 - Saleofassets - 1,794,090 1,794,090 - Principal refunding - (6,035,000) (6,035,000) - Total other financing sources(uses) - 1,059,090 1,059.090 (302,063) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 61.800 (234,147) $ (295,947) (340.598) .._ FUND BALANCE(DEFICIT),JANUARY 1, AS PREVIOUSLY REPORTED (649,370) (308,772) Prior period adjustment 181.723 - FUND BALANCE(DEFICIT),JANUARY 1, AS RESTATED (467,647) (308,772) FUND BALANCE(DEFICIT),DECEMBER 31 $ (701,794) $ (649,370) See accompanying notes to financial statements. -82- VILLAGE OF MORTON GROVE, ILLINOIS — BALANCE SHEET ECONOMIC DEVELOPMENT FUND –a December 31, 2002 (With Comparative Amounts for 2001) — 2002 2001 ASSETS Cash and cash equivalents $ 48,466 $ 121,143 — Sales tax receivable 97,086 38,100 Miscellaneous accounts receivable - 2,000,000 TOTAL ASSETS $ 145,552 $ 2,159,243 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ - $ 90,101 Accrued interest payable - 15,907 — Other deferred revenue - 2,000,000 Due to other funds - 69,889 Total liabilities - 2,175,897 FUND BALANCE (DEFICIT) 145,552 (16,654) TOTAL LIABILITIES AND — FUND BALANCE $ 145,552 $ 2,159,243 See accompanying notes to financial statements. - 83 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL ECONOMIC DEVELOPMENT FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES ._ Other taxes $ 462,054 $ 394,487 $ (67,567) $ 152,400 Investment income 6,000 28,963 22,963 7,700 Miscellaneous income Economic incentive refunded - 2,000,979 2,000,979 - Total revenues 468,054 2,424,429 1,956,375 160,100 EXPENDITURES Current Village share of retirement cost Fire Pension Fund - 125,000 (125,000) - Community development Contractual services 113,651 99,839 13,812 89,122 Debt service Principal 186,176 235,639 (49,463) - Interest 68,227 117,652 (49,425) - Total expenditures 368,054 578,130 (210,076) 89,122 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 100,000 1,846,299 1,746,299 70,978 OTHER FINANCING SOURCES(USES) Operating transfers(out) Debt Service Fund - - - (170,934) Revolving Equipment Fund - (100,000) (100,000) General Fund - (1,600,000) (1,600,000) - Total other financing sources(uses) - (1,700,000) (1,700,000) (170,934) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES `.. OVER EXPENDITURES AND OTHER FINANCING USES $ 100,000 146,299 $ 46,299 (99,956) FUND BALANCE(DEFICIT),JANUARY 1, AS PREVIOUSLY REPORTED (16,654) 83,302 Prior period adjustment 15,907 - FUND BALANCE(DEFICIT),JANUARY 1, AS RESTATED (747) 83,302 FUND BALANCE(DEFICIT),DECEMBER 31 $ 145,552 $ (16,654) See accompanying notes to financial statements. -84- VILLAGE OF MORTON GROVE, ILLINOIS BALANCE SHEET LEHIGH/FERRIS TAX INCREMENT FINANCING FUND — December 31, 2002 (With Comparative Amounts for 2001) 2002 2001 — ASSETS Cash and cash equivalents $ 476,977 $ 128,655 — Accounts receivable 761 15,579 Due from other funds - 235,000 Land held for resale 140,000 - — TOTAL ASSETS $ 617,738 $ 379,234 — LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 66,858 $ 4,911 Accrued interest payable - 1,335 — Deposits refundable 1,500 2,284 Due to other funds - 456,097 Total liabilities 68,358 464,627 FUND BALANCE (DEFICIT) 549,380 (85,393) TOTAL LIABILITIES AND FUND BALANCE $ 617,738 $ 379,234 See accompanying notes to financial statements. - 85 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND `-' CHANGES IN FUND BALANCE-BUDGET AND ACTUAL LEHIGH/FERRIS TAX INCREMENT FINANCING FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance �- Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES Property taxes $ 68,644 $ 75,887 $ 7,243 $ - Investment income - (233) (233) (114) Lease and rental income 48,000 43,784 (4,216) 11,634 Intergovernmental 25,000 (6,250) (31,250) 15,579 Total revenues 141,644 113,188 (28,456) 27,099 ' EXPENDITURES Current Economic development Administrative activities Contractual services 81,400 226,239 (144,839) 44,263 Capital outlay - - - 481,666 Debt service '- Interest 60,244 53,511 6,733 - Total expenditures 141,644 279,750 (138,106) 525,929 s EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES - (166,562) (166,562) (498,830) OTHER FINANCING SOURCES(USES) Operating transfers(out) Debt Service Fund - - - (37,489) Installment note proceeds - 800,000 800,000 475,000 Total other financing sources(uses) - 800,000 800,000 437,511 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ - 633,438 $ 633,438 (61,319) FUND BALANCE(DEFICIT),JANUARY 1, AS PREVIOUSLY REPORTED (85,393) (24,074) Prior period adjustment 1,335 - -' FUND BALANCE(DEFICIT),JANUARY 1, AS RESTATED (84,058) (24,074) d FUND BALANCE(DEFICIT),DECEMBER 31 $ 549,380 $ (85,393) See accompanying notes to financial statements. -86- DEBT SERVICE FUND The Debt Service Fund accounts for monies accumulated to pay for the payment of general long- term debt principal, interest and related costs. The Debt Service Fund accounts for the payments of all long-term debt incurred by the Village, except for the Water Revenue Bonds and various installment notes, which are accounted for in the Enterprise Fund. A description of the Debt Service Fund is as follows: Includes the 1999 Corporate Purpose General Obligation Bond Issue, the Illinois Environmental Protection Agency revolving line-of-credit for the Capulina and Parkview sewer relief projects, the General Obligation Bank Promissory Note, the tax-exempt and taxable bank notes, and various installment notes on major pieces of equipment. VILLAGE OF MORTON GROVE, ILLINOIS — BALANCE SHEET DEBT SERVICE FUND — December 31, 2002 (With Comparative Amounts for 2001) 2002 2001 — ASSETS Cash and cash equivalents $ 413,895 $ 417,145 — Investments 498,745 469,801 Property taxes receivable - net 1,094,420 1,107,443 — Sales tax receivable 118,770 118,770 Due from other funds - 39,063 TOTAL ASSETS $ 2,125,830 $ 2,152,222 LIABILITIES AND FUND BALANCE LIABILITIES — Accounts payable $ 200 $ 200 Accrued interest - 50,927 — Deferred property tax revenue 1,094,420 1,102,142 Total liabilities 1,094,620 1,153,269 FUND BALANCE Reserved for debt service 1,031,210 998,953 — TOTAL LIABILITIES AND — FUND BALANCE $ 2,125,830 $ 2,152,222 See accompanying notes to financial statements. - 87 - L VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND �- - CHANGES IN FUND BALANCE-BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual REVENUES Property taxes $ 1,034,822 $ 1,049,480 $ 14,658 $ 1,040,508 Sales taxes 475,000 475,080 80 475,080 Investment income 58,600 38,515 (20,085) 61,787 Total revenues 1,568,422 1,563,075 (5,347) 1,577,375 EXPENDITURES Principal retirement 1,169,870 1,122,827 47,043 1,163,028 Interest 686,949 671,135 15,814 1,236,653 Fiscal agent fees 600 200 400 200 Total expenditures 1,857,419 1,794,162 63,257 2,399,881 _ EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (288,997) (231,087) 57,910 (822,506) OTHER FINANCING SOURCES(USES) Operating transfers in- Revolving Equipment Replacement Fund 261,211 212,416 (48,795) 306,558 Waukegan Road Tax Increment Financing Fund - - - 302,063 Economic Development Fund - - - 170,934 Lehigh/Ferris Tax Increment Financing Fund - - - 37,489 Total other financing sources(uses) 261,211 212,416 (48,795) 817,044 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (27,786) (18,671) $ 9,115 (5,462) FUND BALANCE,JANUARY 1, AS PREVIOUSLY REPORTED 998,953 1,004,415 Prior period adjustment 50,928 - FUND BALANCE,JANUARY 1, AS RESTATED 1,049,881 1,004,415 L FUND BALANCE,DECEMBER 31 $ 1,031,210 $ 998,953 See accompanying notes to financial statements. -88- • aft IMPE• aim • MIR CAPITAL PROJECTS FUNDS The Capital Projects Funds are used to account for the financial resources used for major infrastructure and other capital improvements (other than those financed by the Proprietary Fund)within the Village of Morton Grove. When there is a bond issue used to finance a specific capital project, the proceeds accounting for the expenditures of that project will be separately accounted for in this section. The description of the Capital Projects Funds are as follows: Capital Projects Fund - accounts for property taxes levied and other resources accumulated primarily for major infrastructure and other capital improvements. During calendar year 2001,major expenditures included the local street resurfacing projects, which included both Dempster Road and Beckwith Street, a neighborhood street lighting project, and an alley paving program. Capital Projects Fund- 1999 Bond Issue Proceeds - accounts for the 1999 bond issue proceeds used primarily for major infrastructure and other capital improvements. The sale of bonds occurred during February 1999. During calendar year 2001,both the Beckwith _ Road/Church Street and Waukegan Road Corridors, along with the Gross Point Road reconstruction, were substantially completed. Additionally, remodeling and all necessary building additions to the new Civic Center building were also substantially completed during 2001. VILLAGE OF MORTON GROVE,ILLINOIS COMBINING BALANCE SHEET CAPITAL PROJECTS FUNDS December 31,2002 (With Comparative Totals for 2001) a. 1999 Bond Capital Issue Totals Projects Proceeds 2002 2001 - ASSETS Cash and cash equivalents $ 1,186,301 $ 40,840 $ 1,227,141 $ 1,332,587 - Investments - 122,330 122,330 - Receivables Property taxes 622,031 - 622,031 630,372 Sales tax 44,641 - 44,641 165,562 State income - - - 7,138 Accounts - - - 255,389 Due from other funds - - - 834,293 Prepaid items - - - 10,000 TOTAL ASSETS $ 1,852,973 $ 163,170 $ 2,016,143 $ 3,235,341 - LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 57,639 $ 255,037 $ 312,676 $ 1,570,476 Deferred property tax revenue 622,031 - 622,031 627,355 .� Due to other funds 48,792 - 48,792 152,783 Deposits refundable 39,875 - 39,875 40,578 Total liabilities 768,337 255,037 1,023,374 2,391,192 FUND BALANCES(DEFICITS) Unreserved, undesignated 1,084,636 (91,867) 992,769 844,149 TOTAL LIABILITIES AND FUND BALANCES $ 1,852,973 $ 163,170 $ 2,016,143 $ 3,235,341 See accompanying notes to financial statements. _ - 89- VILLAGE OF MORTON GROVE,ILLINOIS COMBINING STATEMENT OF REVENUES,EXPENDITURES ` AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS - For the Year Ended December 31,2002 (With Comparative Totals for 2001) 1999 Bond - Capital Issue Totals Projects Proceeds 2002 2001 REVENUES Sales taxes $ 318,879 $ - $ 318,879 $ 559,141 Property taxes 597,387 - 597,387 592,063 Electric consumption taxes - - - 535,987 State income taxes 6,497 - 6,497 92,314 - Other taxes 19,864 - 19,864 24,872 Intergovernmental - 42,344 42,344 1,943,932 Lease and rental income 27,822 - 27,822 - Investment income 15,529 8,335 23,864 322,090 Total revenues 985,978 50,679 1,036,657 4,070,399 EXPENDITURES Contractual services 617,507 196,523 814,030 5,302,194 Capital outlay 427,510 - 427,510 1,439,176 Total expenditures 1,045,017 196,523 1,241,540 6,741,370 - EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (59,039) (145,844) (204,883) (2,670,971) - OTHER FINANCING SOURCES(USES) Bond proceeds 360,000 - 360,000 - EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 300,961 (145,844) 155,117 (2,670,971) - FUND BALANCES,JANUARY 1 AS PREVIOUSLY REPORTED 790,172 53,977 844,149 3,515,120 Prior period adjustment (6,497) - (6,497) - - FUND BALANCES,JANUARY 1 AS RESTATED 783,675 53,977 837,652 3,515,120 - FUND BALANCES(DEFICITS), DECEMBER31 $ 1,084,636 $ (91,867) $ 992,769 $ 844,149 See accompanying notes to financial statements. - 90- VILLAGE OF MORTON GROVE, ILLINOIS — BALANCE SHEET CAPITAL PROJECT FUND — December 31, 2002 (With Comparative Amounts for 2001) — 2002 2001 — ASSETS Cash and cash equivalents $ 1,186,301 $ 683,077 — Property taxes receivable - net 622,031 630,372 Sales tax receivable 44,641 165,562 State income tax receivable - 7,138 Accounts receivable - 41,231 Due from other funds - 147,393 — Prepaid expenses and deposits - 10,000 TOTAL ASSETS $ 1,852,973 $ 1,684,773 — LIABILITIES AND FUND BALANCE — LIABILITIES Accounts payable $ 57,639 $ 80,217 — Deferred property tax revenue 622,031 627,355 Due to other funds 48,792 146,451 Deposits refundable 39,875 40,578 — Total liabilities 768,337 894,601 — FUND BALANCE Unreserved, undesignated 1,084,636 790,172 — TOTAL LIABILITIES AND FUND BALANCE $ 1,852,973 $ 1,684,773 — See accompanying notes to financial statements. - 91 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND a.. CHANGES IN FUND BALANCE-BUDGET AND ACTUAL CAPITAL PROJECT FUND For the Year Ended December 31,2002 (With Comparative Actual for 2001) • -- 2002 Variance Favorable 2001 Budget Actual (Unfavorable) Actual • REVENUES Sales taxes $ 64,240 $ 318,879 $ 254,639 $ 559,141 Property taxes 594,925 597,387 2,462 592,063 State income taxes - 6,497 6,497 92,314 Electric consumption tax - - - 535,987 Other taxes 25,160 19,864 (5,296) 24,872 Intergovernmental 50,000 - (50,000) 150,000 Lease and rental income - 27,822 27,822 - Investment income 10,000 15,529 5,529 15,449 Total revenues 744,325 985,978 241,653 1,969,826 EXPENDITURES Local street resurfacing Engineering 20,000 79,520 (59,520) 41,416 Construction 785,000 448,331 336,669 1,504,160 Total local street resurfacing 805,000 527,851 277,149 1,545,576 Dempster Street corridor improvements Engineering services 225,000 3,500 221,500 13,734 Alley paving Construction 82,500 85,023 (2,523) 4,010 Municipal-design and planning Professional Services - 1,133 (1,133) 3,730 Other capital outlay 759,650 427,510 332,140 - Total expenditures 1,872,150 1,045,017 827,133 1,567,050 EXCESS(DEFIENCY)OF REVENUES OVER EXPENDITURES (1,127,825) (59,039) 1,068,786 402,776 OTHER FINANCING SOURCES(USES) Bond proceeds 622,500 360,000 262,500 - EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (505,325) 300,961 $ 1,331,286 402,776 FUND BALANCE,JANUARY 1, 790,172 387,396 AS PREVIOUSLY REPORTED Prior period adjustment (6,497) - FUND BALANCE,JANUARY 1,AS RESTATED 783,675 387,396 FUND BALANCE,DECEMBER 31 S 1,084,636 S 790,172 See accompanying notes to financial statements. -92- VILLAGE OF MORTON GROVE, ILLINOIS — BALANCE SHEET CAPITAL PROJECTS FUND - 1999 BOND ISSUE PROCEEDS — December 31, 2002 (With Comparative Amounts for 2001) 2002 2001 ASSETS Cash and cash equivalents $ 40,840 S 649,510 — Investments 122,330 - Accrued interest receivable - 214,158 — Due from other funds - 686,900 TOTAL ASSETS $ 163,170 S 1,550,568 — LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 255,037 $ 1,490,258 — Due to other funds - 6,333 Total liabilities 255,037 1,496,591 FUND BALANCE (DEFICIT) Unreserved, undesignated (91,867) 53,977 — TOTAL LIABILITIES AND FUND BALANCE S 163,170 S 1,550,568 — See accompanying notes to financial statements. - 93 - VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL CAPITAL PROJECTS FUND- 1999 BOND ISSUE PROCEEDS For the Year Ended December 31,2002 - (With Comparative Actual for 2001) 2002 Variance Favorable 2001 - Budget Actual (Unfavorable) Actual REVENUES Intergovernmental $ - $ 42,344 $ 42,344 $ 1,793,932 Investment income - 8,335 8,335 306,641 Total revenues - 50,679 50,679 2,100,573 EXPENDITURES Capital outlay Contractual services Waukegan Road improvements Engineering - 3,423 (3,423) 212,696 Construction 144,359 141,847 2,512 1,652,222 Total Waukegan Road improvements 144,359 145,270 (911) 1,864,918 Municipal facilities Engineering - - - - 143,772 Capital outlay - - - 1,439,176 Total municipal facilities - - - 1,582,948 Gross Point Road improvements Engineering - - - 133,757 - Construction 300,000 51,253 248,747 775,446 Total Gross Point Road improvements 300,000 51,253 248,747 909,203 Beckwith Road/Church Street resurfacing Engineering - - - 179,463 Construction - - - 628,942 Total Beckwith Road/Church Street resurfacing - - - 808,405 - Total contractual services 444,359 196,523 247,836 5,165,474 Professional services - - - 8,846 Total expenditures 444,359 196,523 247,836 5,174,320 EXCESS(DEFICIENCY)OF REVENUES - OVER EXPENDITURES $ (444,359) (145,844) $ 298,515 (3,073,747) FUND BALANCES,JANUARY I 53,977 3,127,724 FUND BALANCES(DEFICIT),DECEMBER 31 $ (91,867) $ 53,977 See accompanying notes to financial statements. -94- =Ea SIM PROPRIETARY FUND TYPE L L. f L L L L L i , , -, - - ASI r ENTERPRISE FUND Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the Village governing board is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or where the Village board has decided that �- periodic determination of net income is appropriate for accountability purposes. The only current Enterprise Fund is: Water and Sewer Fund - accounts for the provisions of water services to the residents of the Village. All activities necessary to provide such services are accounted for in this fund including, but not limited to, wholesale purchase of water from the City of Chicago, and administration, operations, financing and related debt service and billing and collection. In addition, the fund also accounts for maintaining the storm and sanitary sewer collection system under the Village jurisdiction. VILLAGE OF MORTON GROVE,ILLINOIS BALANCE SHEET WATER AND SEWER FUND December 31,2002 (With Comparative Amounts for 2001) 2002 2001 ASSETS CURRENT ASSETS Cash and cash equivalents $ 13,031 $ 133,606 Accounts receivable 461,418 451,938 Due from other funds - 78 Total current assets 474,449 585,622 OTHER ASSETS Escrow for excess losses-IRMA 56,855 130,740 PROPERTY,PLANT AND EQUIPMENT Fixed assets-net 6,838,482 6.926,772 TOTAL ASSETS $ 7,369,786 $ 7,643,134 LIABILITIES AND FUND EQUITY — CURRENT LIABILITIES Accounts payable $ 229,529 $ 366,098 — Accrued salaries and wages payable 24,758 17,031 Compensated absences payable - 1,924 Accrued interest payable 14,514 15,667 Deferred revenues 22,050 31,199 — Due to other funds 31,531 38,875 Refundable deposits 24,677 11,472 Installment purchase contract- currentinstallments - 35,138 Notes payable-current maturities - 62,254 Bonds payable-current maturities - 178,750 Total current liabilities 347,059 758,408 LONG-TERM LIABILITIES Installment purchase contract 69,142 69,142 Notes payable 557,847 557,846 Bonds payable 3,367,500 3,367,500 Total long-term liabilities 3,994.489 3,994,488 Total liabilities 4,341,548 4,752,896 FUND EQUITY Retained earnings 3,028,238 2,890,238 TOTAL LIABILITIES AND FUND EQUITY $ 7,369,786 $ 7,643,134 See accompanying notes to financial statements. -95- VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS WATER AND SEWER FUND For the Year Ended December 31,2002 (With Comparative Totals for 2001) — 2002 2001 OPERATING REVENUES Water sales $ 2,813,002 $ 2,584,478 Sewer charges 682,801 632,726 Meter and connection fees 2,423 4,396 Miscellaneous 175 148 Total operating revenues 3,498,401 3,221,748 = OPERATING EXPENSES Personal services 980,907 985,638 Contractual services and other charges 300,459 641,526 Water purchases 1,478,020 1,399,811 Commodities 128,946 299,185 Utilities 80,074 83,086 Total operating expenses 2,968,406 3,409,246 OPERATING INCOME(LOSS)BEFORE DEPRECIATION 529,995 (187,498) DEPRECIATION 182,256 144,484 OPERATING INCOME(LOSS) 347,739 (331,982) r_ NONOPERATING REVENUES(EXPENSES) Rental income 103,231 78,912 Investment income 3,033 4,488 — Interest expense and fiscal agent fees (175,589) (189,331) Total nonoperating revenues(expenses) (69,325) (105,931) NET INCOME(LOSS)BEFORE OPERATING TRANSFERS 278,414 (437,913) OPERATING TRANSFERS IN(OUT) Commuter Parking Fund 12,750 11,650 General Corporate Fund (110,000) (105,000) Total operating transfers in(out) (97,250) (93,350) NET INCOME(LOSS) 181,164 (531,263) RETAINED EARNINGS,JANUARY 1,AS PREVIOUSLY REPORTED 2,890,238 3,421,501 Prior period adjustment (43.164) - RETAINED EARNINGS,JANUARYI,AS RESTATED 2,847,074 3,421,501 RETAINED EARNINGS,DECEMBER 31 $ 3,028,238 $ 2,890,238 See accompanying notes to financial statements. -96- VILLAGE OF MORTON GROVE,ILLINOIS STATEMENT OF CASH FLOWS WATER AND SEWER FUND For the Year Ended December 31,2002 (With Comparative Totals for 2001) 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ 347,739 $ (253,070) Adjustments to reconcile operating income(loss)to net cash from operating activities — Depreciation 182,256 144,484 Changes in assets and liabilities Receivables (9,480) 76,757 Other assets 30,721 69,317 Refundable deposits 13,205 3,372 Deferred revenues (9,149) 8,475 Accounts payable and accrued expenses (131,918) 197,112 .. Due to other funds (7,344) 15,779 Net cash from operating activities 416,030 262,226 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES — Operating transfers(out) (110,000) (105,000) Operating transfers in 12,750 11,650 Net cash from non-capital financing activities (97,250) (93,350) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES — Principal payments on IEPA revolving loan (62,154) (60,726) Acquisition of capital assets (93,987) (63,225) Principal payments on installment loans (35,139) (54,125) Interest paid on bonds and installment notes and fiscal agent fees (175,589) (189,331) Principal payments on general purpose bonds and water bonds 178,750 ( ) (168,750) — Net cash from capital and related financing activities (545,619) (536,157) CASH FLOWS FROM INVESTING ACTIVITIES Rental income 103,231 - Interest on investments 3,033 4,488 — Net cash from investing activities 106,264 4,488 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (120,575) (362,793) CASH AND CASH EQUIVALENTS,JANUARY 1 133,606 496,399 CASH AND CASH EQUIVALENTS,DECEMBER 31 $ 13,031 $ 133,606 See accompanying notes to financial statements. -97- Lei FIDUCIARY FUND TYPE we w L L n k,. 1 ` • Lee 7 5' PENSION TRUST FUNDS Firefighters' Pension Fund - accounts for the accumulation of resources to be used for retirement and disability pensions for the Village's sworn fire personnel. Most rules and regulations of the fund are established by the pension division of the Illinois Department of Insurance. Police Pension Fund - accounts for the accumulation of resources to be used for retirement and disability pensions for the Village's sworn police personnel. Most rules and regulations of the fund are established by the pension division of the Illinois Department of Insurance. VILLAGE OF MORTON GROVE, ILLINOIS COMBINING STATEMENT OF PLAN NET ASSETS PENSION TRUST FUNDS December 31, 2002 (With Comparative Totals for 2001) Firefighters' Police Totals Pension Pension 2002 2001 ASSETS Cash and cash equivalents $ 639,487 $ 259,126 $ 898,613 $ 4,480,586 Investments, at fair value — Common stock securities 6,435,233 2,850,883 9,286,116 7,753,550 U.S. Government 9,357,136 19,798,254 29,155,390 26,749,171 Receivables — Property taxes- net - - - 263,158 Accrued interest 125,039 266,580 391,619 382,904 Due from other funds 1,641 592 2,233 126,867 — Total assets 16,558,536 23,175,435 39,733,971 39,756,236 LIABILITIES Accounts payable 7,301 6,023 13,324 28,900 Deferred property tax revenue - - - 262,144 — Due to other funds 1,081 1,049 2,130 18,976 Total liabilities 8,382 7,072 15,454 310,020 — NET ASSETS HELD IN TRUST FOR PENSION BENEFITS (Schedules of — finding progress are presented on pages 53-54) $ 16,550,154 $ 23,168,363 $ 39,718,517 $ 39,446,216 See accompanying notes to financial statements. - 98 - VILLAGE OF MORTON GROVE,ILLINOIS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS - PENSION TRUST FUNDS For the Year Ended December 31,2002 .- (With Comparative Totals for 2001) Firefighters' Police Pension Pension Totals Fund Fund 2002 2001 ADDITIONS Contributions Employer - Taxes 5 132,228 5 125,517 5 257,745 $ 206,476 Additional contribution 125,000 - 125,000 - Employee 249,481 304,510 553,991 501,320 Total contributions 506,709 430,027 936,736 707,796 Investment income Net appreciation(depreciation)in fair value of investments (452,535) 388,826 (63,709) (238,791) Interest 586,905 1,052,596 1,639,501 1,815,668 134,370 1,441,422 1,575,792 1,576,877 Less investment expense (35,696) (26,750) (62,446) (52,482) Net investment income 98,674 1,414,672 1,513,346 1,524,395 Other miscellaneous income 220 - 220 125 Total additions 605,603 1,844,699 2,450,302 2,232,316 DEDUCTIONS Retirement benefits 617,946 1,058,886 1,676,832 1,585,746 Duty/nonduty disability benefits 203,286 27,208 230,494 211,372 Surviving spouse benefits 83,577 92,362 175,939 148,133 Children's benefits 8,633 - 8,633 8,633 Refunds 5,177 64,691 69,868 - Administrative expenses 11,606 4,629 16,235 37,317 ..„ Total deductions 930,225 1,247,776 2,178,001 1,991,201 NET INCREASE(DECREASE) (324,622) 596,923 272,301 241,115 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 16,874,776 22,571,440 39,446,216 39,205,101 December31 $ 16,550,154 5 23,168,363 $ 39,718,517 $ 39,446,216 See accompanying notes to financial statements. - -99- an= w oo,. elk •••• •r 1 ige ACCOUNT GROUP i.. L r alk aft nee '1 ■ 1 VILLAGE OF MORTON GROVE, ILLINOIS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY SOURCE GENERAL FIXED ASSET ACCOUNT GROUP December 31, 2002 GENERAL FIXED ASSETS Land $ 441,808 Buildings and improvements 9,112,817 Improvements other than buildings 1,566,759 Machinery and equipment 10,475,545 TOTAL $ 21,596,929 INVESTMENT IN GENERAL FIXED ASSETS General revenue $ 4,941,929 General obligation bonds 16,655,000 TOTAL $ 21,596,929 (See independent auditor's report.) - 100 - VILLAGE OF MORTON GROVE, ILLINOIS — SCHEDULE OF GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY GENERAL FIXED ASSET ACCOUNT GROUP — December 31,2002 Improvements Machinery Other than and Function and Activity Land Buildings Buildings Equipment Totals General government General government buildings $ 441,808 $ 6,668,028 $ - $ 4,659,409 $ 11,769,245 — Public safety Police protection - 267,032 - 1,104,416 1,371,448 Fire protection - 577,293 - 1,503,468 2,080.761 Total public safety - 844,325 - 2,607,884 3,452,209 Streets,sidewalks and sewers - 1,600,464 1,091,457 3,149,415 5,841,336 — Public welfare - - 465,392 58,837 524,229 Commuter parking lot - - 9,910 - 9,910 TOTAL $ 441,808 $ 9,112,817 $ 1,566,759 $ 10,475,545 $ 21,596,929 (See independent auditor's report.) - 101 - VILLAGE OF MORTON GROVE, ILLINOIS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY GENERAL FIXED ASSET ACCOUNT GROUP December 31,2002 Balances Balances January 1 Additions Retirements December 31 General government Buildings and equipment $ 13,723,895 $ 1,357,385 $ 3,312,035 $ 11,769,245 Public safety _ Police protection 1,092,004 346,819 67,375 1,371,448 Fire protection 2,072,276 23,628 15,143 2,080,761 Total public safety 3,164,280 370,447 82,518 3,452,209 Streets, sidewalks and sewers 5,836,226 5,110 - 5,841,336 Public welfare 524,229 - - 524,229 Commuter Parking Lot - 9,910 - 9,910 TOTAL $ 23,248,630 $ 1,742,852 $ 3,394,553 $ 21,596,929 ti (See independent auditor's report.) - 102 - ••■1 taw am& .•••■ eallt Om, SIM ■ COMPONENT UNIT-PUBLIC LIBRARY tir i L L. 4 tK - n •• COMPONENT UNIT Refer to Note 1 for description of the component unit and the criteria for component unit -- classificiation. VILLAGE OF MORTON GROVE,ILLINOIS COMPONENT UNIT-PUBLIC LIBRARY '. COMBINING BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS December 31,2002 (With Comparative Totals for 2001) Account Group "' Governmental General General Fund Type Fixed Long-Term Totals General Assets Debt 2002 2001 7. ASSETS AND OTHER DEBITS ASSETS Cash and cash equivalents $ 1,348,263 $ - $ - $ 1,348,263 $ 1,188,493 Investments 35,677 - - 35,677 - Property taxes receivable-net 2,162,303 - - 2,162,303 1,999,722 Prepaid expenses 31,076 - - 31,076 28,567 Fixed assets - 2,406,209 - 2,406,209 2,391,001 OTHER DEBITS Amount to be provided from future revenues for retirement of contracts payable - - 27,742 27,742 31,144 TOTAL ASSETS AND OTHER DEBITS $ 3,577,319 $ 2,406,209 $ 27,742 $ 6,011,270 $ 5,638,927 LIABILITIES,EQUITY AND OTHER CREDITS LIABILITIES Accounts payable $ 63,829 $ - $ - $ 63,829 $ 45.450 Salaries and wages payable 12,452 - - 12,452 40,745 Compensated absences payable 9,083 - - 9,083 12,726 Deferred property tax revenue 2,162,303 - - 2,162,303 1,999,722 Contracts payable - - 27,742 27,742 31,144 Total liabilities 2,247,667 - 27,742 2,275,409 2.129,787 EQUITY AND OTHER CREDITS ■ Investment in general fixed assets - 2,406,209 - 2,406,209 2,391,001 Fund balances Reserved for prepaid items 31,076 - - 31,076 28,567 - Reserved for rehabilitation of Public Library 500,000 - - 500,000 500,000 Unreserved,undesignated 798,576 - - 798,576 589,572 a. Total equity and other credits 1,329,652 2,406,209 - 3,735,861 3,509.140 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 3,577,319 $ 2,406,209 $ 27,742 $ 6,011,270 $ 5,638,927 See accompanying notes to financial statements. - 103 - VILLAGE OF MORTON GROVE, ILLINOIS COMPONENT UNIT - PUBLIC LIBRARY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2002 (With Comparative Totals for 2001) 2002 2001 REVENUES Taxes $ 2,038,543 $ 1,962,266 Intergovernmental 28,864 31,303 Charges for services 31,701 18,906 — Fines 23,460 24,297 Investment income 21,616 37,547 Miscellaneous 2,173 7,129 Total revenues 2,146,357 2,081,448 EXPENDITURES Current Culture and recreation 1,934,285 1,970,131 Debt Service Principal retirement 559 528 Total expenditures 1,934,844 1,970,659 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 211,513 110,789 OTHER FINANCING SOURCES (USES) Contracts payable proceeds - 28,270 Joint venture distributions - 72,408 Total other financing sources (uses) - 100,678 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 211,513 211,467 FUND BALANCE, JANUARY 1 1,118,139 906,672 FUND BALANCE, DECEMBER 31 $ 1,329,652 $ 1,118,139 See accompanying notes to financial statements. - 104 - /ma STATISTICAL SECTION(UNAUDITED) 44••. 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B o`0D = F 000 E ? 2 `� w c: .] W O to E 2- E> R a ca v v 0 O v u c w U o u Z O > VILLAGE OF MORTON GROVE,ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS I a5t Ten Fiscal Periods(1) Ratio of Total Ratio Of Tax Fiscal Total Tax Collections Outstanding Delinquent Levy Period Tax Total Tax To Total Delinquent Taxes to Total Year Ending(2,4) Levy(3) Collections Tax Levy Taxes Tax Levy 1992 4/30/94 $ 5,522,843 $ 5,414,027 98.03 % $ 108,816 1.97 % 1993 4/30/95 5,652,830 5,635,365 99.69 17,465 0.31 1994 4/30/96 5,831,625 5,833,181 100.03 - - 1995 4/30/97 5,831,625 5,803,047 99.51 28,578 0.49 1996 4/30/98 5,942,660 5,934,876 99.87 7,784 0.13 1997 12/31/98 5,941,971 5,818,707 97.93 123,264 2.07 1998 12/31/99 5,947,116 5,850,695 98.38 96,421 1.62 1999 12/31/00 5,947,184 5,879,762 98.87 67,422 1.13 2000 12/31/01 6,108,384 5,871,866 96.13 236,518 3.87 2001 12/31/02 6,406,587 6,284,352 98.09 122,235 1.91 Notes: (1) Total tax collections include both current and delinquent tax collections for that fiscal year. The specific breakdowns between current and delinquent taxes are unavailable. (2) Prior to 1999,property taxes were collected over the two fiscal years following the calendar year in which the taxes are levied(e.g.,the taxes actually collected from the 1996 levy year are physically collected during the 1997 and 1998 fiscal years). After the change in fiscal year ended to 12/31,all taxes are collected in a single year following the levy. To enhance comparisons between the tax levy and the amount actually collected from that levy,the total collections are shown exclusively in the last of the two fiscal years of collections only(e.g.,the taxes actually collected from the 1996 levy year are shown under fiscal 1998). (3) Tax levies indicated above include an additional 3-5%added by Cook County for"loss and cost." Above tax levies exclude Special Service Area#I. These taxes are paid exclusively by the property owners of the designated area. The above table includes only the Village(as Primary Government)and hence the Library Property Tax Levy is excluded from the above table as it is considered a component unit pursuant to GASB No. 14. Property Tax Levy for the Waukegan Road TIF is also encluded from this table. (4) The fiscal period ending 12/31/98 was an eight-month transition period due to the Village changing its fiscal year ending date from 4/30 to 12/31. Data Source Cook County Clerk - 107- VILLAGE OF MORTON GROVE, ILLINOIS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Ratio of Total Assessed Valued — Tax Real Property to Total Levy Equalized Estimated Estimated Year Assessed Value Actual Value True Value — 1992 $ 429,611,056 $ 1,288,962,064 33.33 % 1993 441,564,117 1,324,824,833 33.33 — 1994 433,014,535 1,299,173,522 33.33 1995 472,188,805 1,416,708,086 33.33 1996 477,122,412 1,431,510,387 33.33 — 1997 478,928,650 1,436,929,643 33.33 1998 517,062,624 1,551,343,006 33.33 1999 536,440,614 1,609,321,842 33.33 2000 531,796,341 1,595,389,023 33.33 2001 610,786,444 1,832,359,332 33.33 — Data Source — Cook County Clerk - 108 - VILLAGE OF MORTON GROVE,ILLINOIS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET GENERAL BONDED DEBT PER CAPITA Last Ten Fiscal Years _ Ratio of — Net General Less Debt Net Bonded Debt Net General Fiscal Equalized Gross Service General to Equalized Bonded Debt — Period Assessed General Funds Bonded Assessed Debt Per Ending Population Value Bonded Debt(1) Available Debt Value Capita 4/30/94 22,408 $441,564,117 $ 11,635,000 $ 1,331,010 $ 10,303,990 2.33 $ 459.84 4/30/95 22,408 433,014,535 17,747,765 1,092,156 16,655,609 3.85 743.29 4/30/96 22,408 472,188,805 16,482,328 1,380,872 15,101,456 3.20 673.93 — 4/30/97 22,408 477,122,412 15,649,601 1,374,920 14,274,681 2.99 637.04 4/30/98 22,408 478,928,650 14,634,339 1,259,878 13,374,461 2.79 596.86 12/31/98 (2) 22,408 478,928,650 23,557,319 1,042,999 22.514,320 4.70 1,004.74 — 12/31/99 22,408 517,062,624 30,893,436 880,188 30,013,248 5.80 1,339.40 12/31/00 22,408 536,440,614 30,632,000 1,004,415 29,627,585 5.52 1,322.19 12/31/01 22,451 531,796,341 29,722,000 998,953 28,723,047 5.40 1,279.37 12/31/02 22,451 610,786,444 25,255,944 1,031,210 24,224,734 3.97 1,079.00 Notes: (1) Excludes water revenue bonds and loans for mandated sewer repair projects,which are considered to be self-supporting from fees collected from water sales or sewer fees. (2) Represents an eight-month transition period due to a change in fiscal year ending date. The fiscal year ending date was changed from 4/30 to 12/31. — Data Source U.S.Census - 109- VILLAGE OF MORTON GROVE,ILLINOIS — RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT(1)TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES Last Ten Fiscal Years Ratio of Debt Total Service to Fiscal Total Debt General Total General Year Principal Interest Service(1) Expenditures(2) Expenditures 4/30/94 $ 1,114,960 S 448,611 S 1,563,571 S 15,352,931 10.18 4/30/95 1,228,908 875,991 2,104,899 18,299,391 11.50 4/30/96 1,281,105 843,894 2,124,999 21,083,238 10.08 4/30/97 1,266,328 754,081 2,020,409 20,145,938 10.03 4/30/98 1,439,991 730,997 2,170,988 19,938.309 10.89 12/31/98 (3) 1,028,904 725,340 1,754,244 21,266,304 8.25 12/31/99 1,074,779 2,190,492 3,265,271 32,224,708 10.13 12/31/00 1,203,819 1,225,656 2,429,475 26,864,647 9.04 12/31/01 1,163,028 1,236,853 2,399,881 28,251,115 8.49 12/31/02 1,975,479 1,264,652 3,240,131 31,332,881 10.34 Notes : — (1) Includes installment purchase contracts,and mortgages on Village Hall and Public Works buildings. (2)Includes expenditures of General, Special Revenue,Debt Service and Capital Projects Funds. (3)Represents and eight-month transition period due to a change in fiscal year ending date. The fiscal year ending date was changed from 4/30 to 12/31. Data Source — Village Records 110- VILLAGE OF MORTON GROVE,ILLINOIS SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years Net Revenue Fiscal Available Period Gross Operating for Debt Debt Service Requirements(3) Ending Revenue(1) Expenses(2) Service Principal Interest Total Coverage 4/30/94 $ 2,538,882 $2,267,510 $ 271,372 $ 85,445 $ 65,538 $ 150,983 1.80 - 4/30/95 2,943,152 2,458,468 484,684 101,122 35,399 136,521 3.55 4/30/96 3,099,533 2,629,369 470,164 107,316 33,270 140,586 3.34 4/30/97 3,180,878 2,779,159 401,719 98,632 30,632 129,264 3.11 - 4/30/98 3,053,092 2,645,548 407,544 99,981 26,048 126,029 3.23 12/31/98 (4) 2,472,219 1,935,430 536,789 101,365 15,367 116,732 4.60 12/31/99 3,495,705 2,732,611 763,094 77,782 20,146 97,928 7.79 12/31/00 3,331,371 2,552,655 778,716 131,874 26,026 157,900 4.93 12/31/01 3,316,798 3,514,246 (197,448) 114,850 23.769 138,619 (1.42) 12/31/02 3,617,415 3,253,995 363,420 97,392 19,748 117,140 3.10 Notes: ._ (1) Gross revenues include transfers in from other funds. Gross revenue for 1993 includes$57,550($25,028 in 1995)in grant revenues as well as transfers in from other funds. (2) Operating expenses exclude depreciation,share of Public Works building mortgage and 1984 and 1991 G.O.bond issues. (3) Including principal and interest of Revenue Bonds and Notes only. Does not include Water Fund share of General Obligation Bond Issues or share of Public Works Building Mortgage. (4) Represents an eight-month transition period due to a change in fiscal year ending date. This fiscal year ending date was changed from 4/30 to 12/31 - Data Source Annual Financial Reports - - 111 - ea ma V' P O O N r 0 O l0 o r — r V — rel 0 r C O n t 0 N r P C N 0 x R ' O P V — n n O — o — N n P N Vo — ox — ro c nv ,n — o Co N — C N N N N N N — O O C O C O C C O O C C P N — V N ON r x 00 n V P N c'1 0 N P O 00 — O V r fJ R ^ N r 0\ b N 0 V 00 — V t O .. 0 — n r n Vl — n N C N 00 O "Cr V 0 — 0 0 0 N - C N n N r, N N N C C OO C C C C C C O C P P in N r O r — 00 n n r O P P N r U' C x — P O — N n in N x ON O O r r — N O r N V 0 - P — n l.0 N "Cr Cr) N — 01 N x O R V V in — O O O O N n 0 1 0"; 0 1 0 1 —. 6 6 6 O C O O O O O O N' ^ r n V x O V Vt H -- N e O ,n N r P x — ■ .x in x .'1 N 00 r N n N O — r V V Vl r N n C - 0 — N C — O in N P N P O 'Cr V 'Cr e{ 0 0 0 P - O N n N r- N N — C O C o o C C O C O C "` '�_ n x n x n N N D co 0 V — 0 O x P .0 00 C r 0 'Cr C n P J t n - - V r 0 r 00 P V V o — P N n x N N ■ V n O N P 0 'Cr V V 'I' — O O O m 4 — O N n N n N N N O O co O C C O O O O C o 24 CC p •.0 ,a L 0 V P v co N r r o V V P x P V • P — h O r r V N O x r N -- P O N n x P C 'V r '- ,f o — A — 7 P N N e< V Vl O n N 0 N 0 O V ut 'Cr C O O O Z ^ ^ — O N n N n N N — 0 0 0 0 0 0 0 C O 0 0 L C. -_ N O W 2 V U 7 h 0 C 0 d c5 N = v ,n P - o v vn nnN ,n u` rxto ,nx - t 0 ,,n c n r C x x r N O n N r P C r O U Z •-cy 0 N N P N o N P N C O .1- ,n t V — O 0 0 Z G 0 P O N n N n N N — O ^ 0 0 0 0 C O 0 0 9 N il; C _H N c F C o E5 z en ._.� - r OO x o0 r r n n n V n V 00 0 0 0 0 0 0 7 0 V x n x b N V 0 t^ n P r T 0 V 00 Q C n N — V N n v") n O N CO O — O O O ^ C n n N n N N N C 0 0 0 0 0 0 0 0 0 0 I Q cn T F O N u Q^ L T — V b N r O P — N x n N ci x V u C P P — x V P r ■ P — P ,o P x — r h V 0 'Cr 'Cr O ^ C �P N N x 'Cr n N ' - P N P O 'Cr V 'Cr "Cr C O O • 2 — O N Cr. N n N N — O O O 0 0 C O O C O O 0 0D [- n C L aim C o O L o x r r 0 - - C n P p n O — r n n N x C 0 00 ut V r 0 .. ■O 0 0 n r co r n O n V n O . 01 N N r P — r N O r N — O V V V V — C O O L 0 —. O N N N N N N — O — O C C C C C O O O C 0 o 0 0 S U 0 n • v cz L o V) O �_ r T V > V > O r P _ q C•0 C — w_ y 0 r < co O N 1~ (� F. O ct O -0 C K• l G -0 C 0 U V r L- •0 o U t v,o f x . # i, m 0 o 0 rn E. >- .4• O v n v - O O C ."- ei > Y o, 3 d E._, H N V L T — aoC7 ggOLlc o Sco Co3 _ U0-. v [-o 3 mN 3 x o 0 X cl ° o 0 00 0 0 = j ° x x ° y t .Y - E z £ e H co Y p " t " m - c o o ° — 0 0 0 .0 m 0 LO O .', m o H > .'� cncn V) ZCCX = uuu 2 � O Zc Z Zt t. C U ■ VILLAGE OF MORTON GROVE, ILLINOIS SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT December 31,2002 (2) Percentage (1) of Debt (3) Gross Applicable to Government's Governmental Unit Bonded Debt Government Share of Debt Direct Debt Village of Morton Grove(4) $ 28,692,000 100.00% $ 28,692,000 Overlapping Debt Metro Water Reclamation District 1,365,545,000 0.66% 9,012,597 Cook County(5) 2,618,405,000 0.65% 17,019,633 Cook County Forest Preserve 41,586,974 0.65% 270,315 School District#63 24,145,000 31.27% 7,550,142 School District#67 7,973,512 68.91% 5,494,547 School District#68 5,000,000 0.51% 25,500 School District#69 13,095,000 14.98% 1,961,631 School District#70 2,635,000 98.05% 2,583,618 School District#71 5,265,000 6.00% 315,900 High School District#207 21,660,000 3.47% 751,602 High School District#219 88,713,237 15.55% 13,794,908 Morton Grove Park District 760,000 99.19% 753,844 Skokie Park District 40,577,199 0.41% 166,367 Glenview Park District 34,255,000 0.24% 82,212 TOTAL $4,298,307,922 $ 88,474,816 (1) Amounts other than the Village of Morton Grove are as of December 31,2001,most recent available. (2) Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village of Morton Grove. (Levy Year 2000) (3) Amount in column(2)multiplied by amount in column(1). (4) Includes General Obligation Bonds and Notes,all installment notes,loans to IEPA for Capulina and Parkview Sewer rehabilitation loans financed through sewer use fees. (5) Excludes Chicago Public Building Commission Bonds. Data Source Governmental Unit Finance Departments - 113 - VILLAGE OF MORTON GROVE,ILLINOIS - EQUALIZED ASSESSED VALUATION(EAV)AND OTHER DEMOGRAPHIC INFORMATION - Last Ten Fiscal Years (3) (4) (5) (2) (1) Average Per - Fiscal School (1) Unemployment Median Home Capita Year Enrollment Population Rate Age Value Income 04/30/94 17,107 22,408 4.7% 43.0 $ 173,737 $ 20,206 04/30/95 17,941 22,408 3.7% 43.0 189,598 20,206 04/30/96 18,148 22,408 3.2% 43.0 184,321 20,206 _ 04/30/97 18,468 22,408 3.3% 43.0 191,501 20,206 04/30/98 18,937 22,408 3.1% 43.0 202,578 20,206 12/31/98 18,937 22,408 3.1% 43.0 202,578 20,206 - 12/31/99 18,603 22,408 2.4% 43.0 212,020 20,206 12/31/00 18,603 22,408 2.4% 43.0 212,020 20,206 12/31/01 19,432 22,451 4.5% 43.9 237,000 31,666 - 12/31/02 19,507 22,451 4.7% 43.9 237,000 31,666 Data Source (1) U.S. Census (2) Illinois Bureau of Employment Securit _ (3) The 12/31/02 figure is per the website www.greaterchicago.com and is as of 12/31/00 (4) The fiscal year ending date was changed from 4/30 to 12/31 beginning 5/1/98 (5) The figure as of 12/31/02 was compiled from school districts attended by Village residents - 114 - VILLAGE OF MORTON GROVE, ILLINOIS PERMIT FEES AND VALUE OF CONSTRUCTION Last Ten Fiscal Years Number of Fees Value of Fiscal Period Ending Permits Issued Generated Construction 04/30/94 631 $ 120,170 $ 9,543,587 04/30/95 642 130,080 10,969,941 04/30/96 650 158,812 22,888,028 04/30/97 721 155,882 19,059,121 04/30/98 703 207,986 9,634,513 12/31/98 (1) 574 79,594 8,349,675 12/31/99 847 412,522 20,534,948 12/31/00 550 167,820 12,842,241 12/31/01 614 250,657 28,011,227 12/31/02 612 333,619 43,441,917 (1) Represents an eight-month transition period due to a change in fiscal year ending date. The fiscal year ending was changed from 04/30 to 12/31. Date Source: Village Building Department - 115 - VILLAGE OF MORTON GROVE,ILLINOIS PRINCIPAL TAXPAYERS December 31,2002(1) — Percentage 2001 of Total Equalized Equalized Assessed Assessed Taxpayer Description of Business/Property Valuation Valuation Federal Center,Inc. Shopping Center $ 16,746,027 2.74% — Rose Real Estate Office and Warehouse Buildings 17,400,847 2.85% Bell&Gossett Pumps,Compressors&Valve Manufacturer 10,800,694 1.77% • Avon Cosmetics,Beauty Aids 8,642,209 1.41% Marvin F Poer&Co. (Crane) Packing Materials Mfg. 9,063,650 1.48% Schwartz Paper Co. Paper Goods Distributor 7,061,843 1.16% — Lawnware Products Patio Furniture 5,107,273 0.84% Abt TV&Appliances Retail 6,345,168 1.04% Kraft Foods 7,126,964 1.17% Schwinge Family Ltd. Shopping Centers 6,260,817 1.03% Method K Partners Shopping Centers 5,072,492 0.83% Menards Retail 4,042,134 0.66% Edler Warehouse 4,030,040 0.66% Com Ed Utility 3,768,530 0.62% TOTAL PRINCIPAL TAXPAYERS $ 111,468,688 18.26% TOTAL VILLAGE EQUALIZED ASSESSED VALUATION $ 610,786,444 100.00% — (I)Information provided in this table is from the 2001 levy and fiscal year ended December 31,2002. — Data Source Cook County Tax Extension Office - 116- VILLAGE OF MORTON GROVE,ILLINOIS MISCELLANEOUS STATISTICS December 31,2002 Date of incorporation December 24, 1895 Form of government Seven Member Board of Trustees including Mayor; Village Administrator appointed by Board of Trustees. Area- Square Miles 5.2(1/3 of which is recreational-Forest Preserve or Park District Miles of Streets 64.89 Number of Metered Water Customers 7,737 Water System Pumping Capacity 20,160,000 Gallons Per Day Present Water Consumption 2,566,000 Gallons Per Day Police Protection 46 Sworn Full-Time Officers 7 Full-Time Civilian Dispatchers 17 Full-Time Civilian Staff Support 18 Part-Time School Crossing Guards Fire Protection 43 Sworn Full-Time Firefighters 2 Full-Time Civilian Staff Support 2 Fire Stations Insurance Class Rating-3 Number of Employees 164 Full-Time 52 Part-Time Recreation Parks-73.14 acres Playgrounds- 13 Swimming Pools-2 Education 5 -Elementary Schools 2-Special Education Schools 1 -Junior High School Census 1950-3,926 1960-20,533 1970-26,369 1980-23,747 1990-22,408 2000-22,451 Median Household Income S 52,815 Data Source Village records - 117- — MEN MR• SR SRN sal