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VILLAGE OF MORTON GROVE, ILLINOIS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Year Ended
December 31, 2013
Prepared by Finance Department
Remy Navarrete
Finance Director
VILLAGE OF MORTON GROVE, ILLINOIS
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Principal Officials and Officers .................................................................................... i
Organization Chart ........................................................................................................ ii
Certificate of Achievement for Excellence in Financial Reporting .............................. iii
Letter of Transmittal ..................................................................................................... iv-viii
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT .................................................................... 1-3
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
Management’s Discussion and Analysis .................................................................. MD&A 1-14
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ............................................................................... 4-5
Statement of Activities ................................................................................... 6-7
Fund Financial Statements
Governmental Funds
Balance Sheet ............................................................................................. 8-9
Reconciliation of Fund Balances of Governmental Funds to
the Governmental Activities in the Statement of Net Position ................ 10
Statement of Revenues, Expenditures and Changes in Fund Balances ..... 11-12
Reconciliation of Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Governmental
Activities in the Statement of Activities .................................................. 13
Proprietary Funds
Statement of Net Position .......................................................................... 14
Statement of Revenues, Expenses and Changes in Net Position ............... 15
Statement of Cash Flows ........................................................................... 16-17
VILLAGE OF MORTON GROVE, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued)
Basic Financial Statements (Continued)
Fund Financial Statements (Continued)
Fiduciary Funds
Pension Trust Funds
Statement of Fiduciary Net Position ....................................................... 18
Statement of Changes in Fiduciary Net Position .................................... 19
Notes to Financial Statements ............................................................................. 20-63
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual -
General Fund .................................................................................................. 64
Lehigh/Ferris Tax Increment Financing Fund ................................................ 65
Waukegan Road Tax Increment Financing Fund ........................................... 66
Schedule of Funding Progress
Illinois Municipal Retirement Fund ............................................................... 67
Sherriff’s Law Enforcement Personnel Plan .................................................. 68
Municipal Employees’ Retirement Fund ........................................................ 69
Police Pension Fund ....................................................................................... 70
Firefighters’ Pension Fund ............................................................................. 71
Other Postemployment Benefit Plan .............................................................. 72
Schedule of Employer Contributions
Illinois Municipal Retirement Fund ............................................................... 73
Sherriff’s Law Enforcement Personnel Plan .................................................. 74
Municipal Employees’ Retirement Fund ........................................................ 75
Police Pension Fund ....................................................................................... 76
Firefighters’ Pension Fund ............................................................................. 77
Other Postemployment Benefit Plan .............................................................. 78
Notes to Required Supplementary Information ................................................... 79
VILLAGE OF MORTON GROVE, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
Schedule of Expenditures - Budget and Actual - General Fund.......................... 80-82
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
Debt Service Fund .......................................................................................... 83
Capital Projects Fund ..................................................................................... 84
NONMAJOR GOVERNMENTAL FUNDS
Combining Balance Sheet ................................................................................... 85-86
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances .......................................................................... 87-88
Schedule of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Motor Fuel Tax Fund ...................................................................................... 89
Commuter Parking Facility Fund ................................................................... 90
9-1-1 Emergency Telephone System Fund ..................................................... 91
Economic Development Fund ........................................................................ 92
Fire Alarm Fund ............................................................................................. 93
Seizure Fund ................................................................................................... 94
NONMAJOR PROPRIETARY FUNDS
Combining Statement of Net Position ................................................................. 95
Combining Statement of Revenues, Expenditures
and Changes in Net Position ............................................................................. 96
Combining Statement of Cash Flows .................................................................. 97
FIDUCIARY FUNDS
Pension Trust Funds
Combining Statement of Plan Net Position .................................................... 98
Combining Statement of Changes in Plan Net Position ................................. 99
VILLAGE OF MORTON GROVE, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component ..................................................................................... 100-101
Change in Net Position............................................................................................. 102-105
Fund Balances of Governmental Funds ................................................................... 106-107
Change in Fund Balances of Governmental Funds .................................................. 108-109
Revenue Capacity
Assessed and Actual Value of Taxable Property ..................................................... 110
Property Tax Rates - Direct and Overlapping Governments ................................... 111
Principal Property Taxpayers ................................................................................... 112
Property Tax Levies and Collections ....................................................................... 113
Debt Capacity
Ratios of Outstanding Debt by Type ........................................................................ 114
Ratios of General Bonded Debt Outstanding ........................................................... 115
Schedule of Direct and Overlapping Bonded Debt .................................................. 116
Schedule of Legal Debt Margin ............................................................................... 117
Demographic and Economic Information
Demographic and Economic Information ................................................................ 118
Principal Employers ................................................................................................. 119
Operating Information
Full-Time Equivalent Employees ............................................................................. 120
Operating Indicators ................................................................................................. 121
Capital Asset Statistics ............................................................................................. 122
COMPLIANCE SECTION
REPORT OF INDEPENDENT ACCOUNTANT’S ON COMPLIANCE ................. 123
INTRODUCTORY SECTION
i
VILLAGE OF MORTON GROVE, ILLINOIS
PRINCIPAL OFFICIALS AND OFFICERS
December 31, 2013
ELECTED TITLE/POSITION TERM/APPOINTMENT ENDS
Daniel DiMaria Mayor April 2017
Bill Grear Trustee April 2017
Shel Marcus Trustee April 2015
John Pietron Trustee April 2017
John Thill Trustee April 2015
Maria Toth Trustee April 2015
Janine Witko Trustee April 2015
Ed Ramos Village Clerk April 2017
APPOINTED
Ryan Horne Village Administrator December 31, 2013
Remy Navarrete Finance Director December 31, 2013
Nancy Radzevich Economic Development Director December 31, 2013
Teresa Hoffman Liston Corporation Counsel December 31, 2013
Thomas Friel Fire Chief December 31, 2013
Mark Erickson Police Chief December 31, 2013
Andrew DeMonte Public Works Director December 31, 2013
Jeffrey Greenspan Adjudication Hearing Officer December 31, 2013
Frank Tennant Village Prosecutor December 31, 2013
- iii -
Board of Trustees and
Citizens of the Village of Morton Grove
- v -
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.
As a home rule municipality, the Village is permitted to carry out its own governing procedures,
except where specifically prohibited by the State Legislature. The Village President and six
members 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 eight departments: police, fire, public works,
community and economic development, health and human services, code enforcement, finance and
administration.
The Village of Morton Grove Comprehensive Annual Financial Report (CAFR) includes all of its
governmental operation funds, pension trust funds (the Morton Grove Firefighters’ Pension Fund,
Morton Grove Police Pension Fund and the General Pension Fund). The accompanying financial
statements include only those funds of the Village, as there is no other organization for which it
has financial accountability. The pension funds are determined to be pension trust funds due to
their fiduciary and fiscal relationships with the Village as their sole purpose is to provide
retirement benefits to the Village’s civilian employees, sworn firefighters and police officers. The
Public Library is no longer reported as a discrete component unit with the implementation of
GASB Statement No 61.
The annual budget serves as the foundation for the Village’s financial planning and 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 and allow the budget preparation process to begin when
municipal operations are generally at a more manageable level.
Local Economy
The Village of Morton Grove’s principal growth took place during the late 50’s and early 60’s
when the population increase from 7,427 to 20,533 residents. The Village primarily consists of
residential land uses. Significant industrial, office and commercial land uses are also located in the
community. Little vacant land remains for commercial and office development or light
manufacturing. Approximately twenty percent (20%) of the Village’s land area is Cook County
Forest Preserve property.
Although the Village’s population has stabilized several years ago, it remains a vibrant economic
community and is a desirable place to live. The unemployment rate remained relatively stable
over the years: however, it has risen to 8.9% in 2010 and remained the same until 2012 due to the
economic recession with a decrease to 8.7% in 2013.
Board of Trustees and
Citizens of the Village of Morton Grove
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Residents in Morton Grove enjoy a pleasant suburban environment with an easy commute into the
City of Chicago for work or entertainment.
The median income for a household in the village was $63,511, and the median income for a
family was $72,778. Males had a median income of $46,489 versus $34,730 for females. The per
capita income for the village was $26,973. About 1.9% of families and 2.7% of the population
were below the poverty line, including 2.3% of those under age 18 and 4.1% of those ages 65 or
over.
Like other communities, the Village of Morton Grove was affected by the prolonged national and
regional recession 2008 through 2012 and recovery from which is very slow. Economist have
declared this downturn to be a recession as there has been a deterioration of the labor market, and
declines in consumer spending, business investments and industrial production. Additionally, the
Federal Reserve has lowered interest rates to a current rate between 0-.25 percent in order to
attempt to promote the resumption of sustainable economic growth.
There are several factors that impact the local finances of the Village. These factors include
desirability of goods and services provided by the local business community and action taken by
the Village Board. During the calendar year the Village recognized changes in the local economic
climate. The sales tax trend has stabilized and showed signs of recovery. However building
permits and business license revenues still declining and has not returned to levels prior to the
economic downturn.
The Village is impacted at the local level by regional, state, and national economic conditions as
well as governance of the State of Illinois and weather conditions. Several important revenue
sources are affected by economic conditions beyond the Village’s control. The delay in income tax
revenue from the State of Illinois is currently 4 months behind and is jeopardizing the Village’s
ability to meet its payment obligations. Additionally, property tax receipts collected by the Cook
County are in flux as the billing and payment deadline dates are often delayed further making it
difficult to anticipate the cash flow and plan for the outstanding debt service.
The economy is not expected to fully recover for several years. Local governments are still being
faced with the difficult choices of reducing service levels, assessing staffing levels, and
maintaining adequate reserves. The Village of Morton Grove has weathered this recession and
slow recovery very well. By re-evaluating every aspect of the Village’s operations for
opportunities for new revenues and cost containment. Some of the positive cost containment
results were due to staff reductions with limited backfill, procurement savings realized through a
municipal partnering initiative in joint proposals for goods and services, reductions in general
operating expenses as a result of re-evaluating many budgeted items and cost-sharing through new
intergovernmental agreements with neighboring communities.
The Village Board, Management and staff is pleased to report that they have been successful in
achieving their primary goal of maintaining service levels to the greatest extent possible while
taking measures to reduce their expenditures.
Board of Trustees and
Citizens of the Village of Morton Grove
- vii -
A number of infrastructure improvements have been completed throughout the Village in recent
years. These improvements are most prominent in the Village’s two (2) tax increment financing
districts (TIF). The Lehigh/Ferris tax increment district has been designated for transit -oriented
development which has fostered new condominium and town home development. A main Village
arterial street is also scheduled for improvements in the upcoming years which will allow for
needed infrastructure upgrades and an improved streetscape.
Long-Term Financial Planning
An analysis of long range issues invariably focuses on the Village’s infrastructure. Approximately
$30 million of streets, alleys, bridges, water mains, and storm sewers are deployed throughout the
Village. Routine maintenance and restoration is a significant expense each year. The continued
viability of this infrastructure network is a priority for the Village Board.
In response to the long-range need to finance infrastructure work, the Village is very active in the
area of economic development. The Village works to attract new businesses to the community
while retaining and strengthening existing establishments. The Village has been active in its use of
tax increment financing (TIF) and private activity bonds assistance to promote economic
development. The ultimate goal is for the resulting economic growth to provide additional sales
tax and other resources to help support the existing tax base of the Village.
Major Initiatives and Accomplishments
The Village provided the framework goals to provide outstanding services and programs in a
fiscally prudent environment. The goals included continuing to improve the operating budget and
financial practices to promote efficient service delivery, fiscal responsibility and transparency,
continuing to improve operations, maximize quality of service and efficiency, enhancing the
Village’s community planning and economic development efforts, develop intergovernmental
relationships, enhancing the Village communication program to promote dissemination of
information to customers and improving the capital improvement program in an effective and
fiscally-responsible manner.
The Waukegan Road tax increment financing district has been successful in removing unsightly
properties and promoting a feeling of increased safety and pride in the community.
The Lehigh/Ferris tax increment financing district has made significant progress with the
development of several new condominiums and town homes. In November, 2007, the Village
issued $9.2Million General Obligation Bonds to finance infrastructure improvements for the
district.
In 2012 Standard and Poor’s Rating Services has assigned its ‘AA’ long-term rating to the Village
of Morton Grove, Ill.’s series 2010A and 2010B general obligation bonds, reflecting the Village’s:
Participation in the deep and diverse Chicago metropolitan area economy;
Very strong income and extremely strong wealth indicators;
Board of Trustees and
Citizens of the Village of Morton Grove
- viii -
Good management practices that have led to maintenance of very strong general fund
reserve levels; and
Financial flexibility due to village’s status as a home rule community.
The Village intends to use the $9.975Million in bond proceeds to fund the capital equipment and
infrastructure improvements in and for the Village, including but not limited to waterworks and
sewerage system improvements, street improvements and the purchase of a new ambulance.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Village for its comprehensive annual financial report
(CAFR) for the fiscal year ended December 31, 2012. This was the twenty-fifth consecutive year
that the government has received this prestigious award. In order to be awarded a Certificate of
Achievement, the government must publish an easily readable and efficiently organized CAFR.
This report satisfied both generally accepted accounting principles (GAAP) and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility certification.
The preparation of this report on a timely basis could not be accomp lished without the efficient
and dedicated services of the entire staff of the Finance Department, and the cooperation and
assistance rendered by the staffs of other operating departments of the Village. I would like to
express my appreciation to all of those employees who assisted and contributed to its preparation.
Finally, appreciation is expressed to the Village President and Board of Trustees for their
leadership and support in planning and conducting the fiscal affairs of the Village in a responsible
manner.
Sincerely,
______________________________ ______________________________
Ryan J. Horne Remy Navarrete
Village Administrator Finance Director/Treasurer
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
- 2 -
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of the Village of Morton Grove,
Illinois, as of December 31, 2013, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter
The Village adopted GASB Statement No. 61, The Financial Reporting Entity: Omnibus – an
Amendment of GASB Statements No. 14 and No. 34, during the year ended December 31, 2013.
The adoption of this statement resulted in the removal of the Morton Grove Public Library as a
component unit of the Village. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and other required supplementary information be
presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
We also have previously audited, in accordance with auditing standards generally accepted in the
United States of America, financial statements of the governmental activities, business-type
activities, each major fund and the aggregate remaining fund information of the Village as of and
for the year ended December 31, 2012, the prior year in the period ended December 31, 2013
(none of which is presented herein), and we expressed unqualified opinions on those financial
statements. That audit was conducted for purposes of forming an opinion on the financial
statements as a whole.
- 2 -
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
(See independent auditor’s report.)
MD&A 1
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
As management of the Village of Morton Grove, Illinois (“the Village”) or (“Morton Grove”), we
offer readers of the Village’s financial statements this narrative overview and analysis of the
financial activities of the Village for the calendar year ended December 31, 2013. We encourage
readers to consider the information presented here in conjunction with additional information that we
have furnished in our letter of transmittal, which can be found on pages iv-viii of this report.
FINANCIAL HIGHLIGHTS
The Village’s total position increased as a result of this year’s operations. Net position of
governmental activities decreased by $681,901, while net position of the business-type
activities increased by $1,628,178 resulting in total ending net position for the year of
$44,055,802.
During the year, government-wide revenues before transfers for the governmental and
business-type activities total $41,256,832, while expenses totaled $40,310,555, resulting in
the increase in net position of $946,277.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and the
Statement of Activities provided information about the activities of the Village as a whole and
present a longer-term view of the Village’s finances. For governmental activities, these statements
tell how these services were financed in the short term as well as what is available for future
spending. Fund financial statements also report the Village’s operations in more detail than the
government-wide statements by providing information about the Village’s most significant funds.
The remaining statements provide financial information about fiduciary activities for which the
Village acts solely as a trustee or agent for the benefit of those outside of the government.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial are designed to provide readers with a broad overview of the
Village’s finances, in a manner similar to a private-sector business.
The Statement of Net Position reports information on all of the Village’s assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the Village’s financial position is improving or
deteriorating. Consideration of other nonfinancial factors, such as changes in the Village’s property
tax base and the condition of the Village’s infrastructure, is needed to assess the overall health of the
Village.
The Statement of Activities presents information showing how the Village’s net position changed
during the most recent calendar year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the t iming of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will result in cash
flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 2
Both of the government-wide financial statements distinguish functions of the Village that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities reflect the Village’s basic services,
including general government, police, fire, public works, economic development, senior services,
emergency 911 services, fire alarm, tax increment financing districts, motor fuel taxes and related
expenditures, and capital projects. Sales tax, property tax levies, and shared state income taxes
finance the majority of these services. Business-type activities of the Village consist of the
municipal water and sewer system, solid waste and municipal parking operations.
FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Village, like other local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All
of the funds of the Village can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
GOVERNMENTAL FUNDS
Governmental Funds are used to account for essentially the same functions reported as go vernmental
activities in the government-wide financial statements. However, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than tha t of the government-wide financial
statements, it is useful to compare the information presented for government funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental funds
statement of revenues, expenditures and changes in fund b alances provide a reconciliation to
facilitate the comparison between governmental funds and governmental activities.
The Village maintains twelve individual governmental funds. Information is presented separately in
the governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General Fund, the Debt Service Fund, the
Lehigh/Ferris TIF Fund and the Waukegan Road TIF Fund and the Capital Project Fund, all of which
are considered to be Major Funds. Data from the other seven governmental funds are combined into
a single, aggregated presentation. Individual fund data for each of these non -major governmental
funds is provided in the form of combining statements in a later section of this report.
The Village adopts an Annual Budget for all funds. A budgetary comparison statement has been
provided where appropriate to demonstrate compliance with these budgets.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 3
PROPRIETARY FUNDS
The Village maintains one type of proprietary fund . The Enterprise Fund is used to report the same
functions presented as business-type activities in the Government-Wide Financial Statements. The
Village uses an Enterprise Fund to account for its municipal water and sewer operations, solid waste
function and municipal parking lots.
Proprietary Funds provide the same type of information as the Government-Wide Financial
Statement, only in more detail. The Proprietary Fund financial statement provides separate
information for the Water and Sewer Fund, which is considered to be a major fund of the Village.
Individual fund information for non-major enterprise funds is found in combining statements in a
later section of this report.
FIDUCIARY FUNDS
Fiduciary Funds are used to account for resources held for the benefit of part ies outside the
government, such as the Municipal Employees’ Retirement Fund, Police Pension Fund and
Firefighters’ Pension Fund. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the Village’s own
programs. The accounting use for fiduciary funds is much like that used for Proprietary Funds.
NOTES TO THE FINANCIAL STATEMENTS
The notes provide additional information that is essential to a full understanding of the data provided
in the Government-Wide and Fund Financial Statements. These notes can be found beginning with
page 20 of this report.
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the Village’s Illinois Municipal Retirement Fund,
Sherriff’s Law Enforcement Personnel Plan, Municipal Emp loyee’s Retirement Fund, Police and
Firefighters’ Pension Fund, and Other Post-Employment Benefit Employee Pension Obligation. The
required supplementary information also contains budget to actual comparison schedule for the
General Fund, Lehigh/Ferris TIF Fund and the Waukegan Road TIF Fund. Required supplementary
information can be found on pages beginning with page 64 of this report. The combining statements
referred to earlier in connection with non-major governmental funds are presented immediately
following the required supplementary information. Combining and individual fund statements and
schedules for the Village can be found on pages beginning with page 80 of this report.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 4
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position. The
following tables show that in the case of the Village of Morton Grove, assets exceeded liabilities by
$44,055,802 at December 31, 2013, compared to $43,109,525 at December 31, 2012:
A large portion of the Village’s net position, $50,170,996, reflects its investment in capital assets (for
example, infrastructure, land, buildings and improvements, machinery, and equipment ), less any
related debt used to acquire those assets that is still outstanding. The Village uses these capital assets
to provide services to citizens; consequently, these assets are not available for future spending.
Although the Village’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must provide from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
An additional portion, $14,644,385, of the Village’s net assets represents resources that are subject to
external restrictions on how they may be used, including restrictions for future street improvements,
debt service payments, public safety, and future capital development.
NORMAL IMPACTS
There are six basic (normal) transactions that will affect the comparability of the Statement of Net
Assets summary presentation:
1) Net Results of Activities – which will impact (increase/decrease) current assets and
unrestricted net position.
2) Borrowing for Capital – which will increase current assets and long-term debt outstanding.
Village of Morton Grove Net Position (in thousands)
Governmental Business-Type
Activities Activities Total
Category 12/31/13 12/31/12 12/31/13 12/31/12 12/31/13 12/31/12
Current and other assets 33,073$ 32,878$ 5,201$ 4,572$ 38,274$ 37,450$
Capital assets 58,072 57,994 8,011 7,767 66,083 65,761
Deferred outflows 56 68 7 14 63 82
Total assets and deferred outflows 91,201 90,940 13,219 12,353 104,420 103,293
Current and other Liabilities 2,285 1,571 939 1,209 3,224 2,780
Long-Term liabilities 42,704 42,475 4,499 4,991 47,203 47,467
Deferred inflows 9,937 9,937 - - 9,937 9,937
Total liabilities and deferred inflows 54,926 53,983 5,438 6,200 60,364 60,183
Net position:
Net investment in capital assets 45,226 44,017 4,945 4,108 50,171 48,125
Restricted 14,644 13,415 - - 14,644 13,415
Unrestricted (23,595) (20,475) 2,836 2,045 (20,759) (18,430)
Total net position 36,275$ 36,957$ 7,781$ 6,153$ 44,056$ 43,110$
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 5
3) Spending Borrowed Proceeds on New Capital – which will reduce current assets and
increase capital assets. There is a second impact, an increase in invested in capital assets and
an increase in related net debt, which will not change the net investment in capital assets.
4) Spending Nonborrowed Current Assets on New Capital – which will (a) reduce current
assets and increase capital assets and (b) will reduce unrestricted net position and increase net
investment in capital assets.
5) Principal Payment on Debt – which will (a) reduce current assets and reduce long-term
debt and (b) reduce unrestricted net position and increase net investment in capital assets.
6) Reduction of Capital Assets through Depreciation – which will reduce capital assets and
reduce net investment in capital assets.
Following is a table that summarizes the change in net position of the Village at the close of the fiscal
year, with a comparison to the preceding fiscal year.
Village of Morton Grove Changes in Net Position (in thousands)
Governmental Business-Type
Activities Activities Total
Category 12/31/13 12/31/12 12/31/13 12/31/12 12/31/13 12/31/12
Revenues
Program revenues
Charges for services 4,034$ 3,541$ 9,868$ 9,040$ 13,902$ 12,581$
Operating Grants 759 1,002 - - 759 1,002
Capital Grants 462 158 59 64 521 222
General revenues
Taxes 25,296 24,913 - - 25,296 24,913
Investment income 12 27 3 14 15 41
Miscellaneous 414 262 350 296 764 558
Total revenues 30,977 29,903 10,280 9,414 41,257 39,317
Expenses
General government 3,827 5,635 3,827 5,635
Public safety 18,774 18,527 18,774 18,527
Streets and sidewalks 5,823 3,548 5,823 3,548
Vehicle maintenance 847 816 847 816
Health and human services 270 266 270 266
Community development 467 471 467 471
Building and inspectional services 846 700 846 700
Interest 805 861 805 861
Water and sewer 6,771 6,286 6,771 6,286
Solid Waste 1,869 1,821 1,869 1,821
Municipal Parking 12 - 12 -
Total expenses 31,659 30,824 8,652 8,107 40,311 38,931
Change in net position (682) (921) 1,628 1,307 946 386
Prior period adjustment - (193) - (55) - (248)
Net position - January 1 36,957 38,071 6,153 4,901 43,110 42,972
Net position - December 31 36,275$ 36,957$ 7,781$ 6,153$ 44,056$ 43,110$
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 6
NORMAL IMPACTS
There are eight basic (normal) impacts on revenues and expenses are reflected below:
Revenues:
1) Economic Condition – which can reflect a declining, stable, or growing economic
environment and has a substantial impact on state income, sales and utility tax revenue as
well as public spending habits for building permits, elective user fees, and level of
consumption.
2) Increase/Decrease in Village-Approved Rates – while certain tax rates are set by statute,
the Village Board has significant authority to impose and periodically increase/decrease rates
(property taxes, water, sewer, impact fees, building fees, home rule sales tax, etc.)
3) Changing Patterns in Intergovernmental and Grant Revenue (both Recurring and
Nonrecurring) – certain recurring revenues (state-shared revenues, etc.) may experience
significant changes periodically, while nonrecurring (or one-time) grants are less predictable
and often distorting on their impact on year-to-year comparisons.
4) Market Impacts on Investment Income – the Village’s investment policy is managed using
similar average maturity to most governments. Market conditions may cause investment
income to fluctuate.
Expenses:
5) Introduction of New Programs – within the functional expense categories (general
government, public works, public safety, etc.), individual programs may be added or deleted
to meet changing community needs.
6) Change in Authorized Personnel – changes in service demand may cause the Village
Board to increase/decrease authorized staffing. Personnel costs (salary and related benefits).
7) Salary Increases (Annual Adjustments and Merit) – the ability to attract and retain human
and intellectual resources requires the Village to strive to approach a competitive salary range
position in the marketplace.
8) Inflation – while overall inflation appears to be reasonably modest, the Village is a major
consumer of certain commodities such as supplies, fuels, and parts. Some functions may
experience unusual commodity-specific increases.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 7
GOVERNMENTAL ACTIVITIES
Revenues:
Revenues for governmental activities totaled $30,977,274 at December 31, 2013.
Property tax (and replacement tax) continues to be the Village’s largest revenue source
totaling $12,947,113 representing 41.8% of total governmental activity revenue. Sales tax
revenue was $6,277,412 or 20.3% of total governmental activity revenue. Charges for
Services revenue was $4,034,083 or 13.0% of total governmental activity revenue. State
income tax revenue was $2,217,175 or 7.2% of total governmental activity revenue.
Miscellaneous taxes revenue (local use, real estate transfer, hotel & motel tax, food &
beverage, gasoline tax) was $1,557,303 or 5.0% of total governmental activity revenue.
Telecommunication tax was $884,005 or 2.0% of total governmental activity revenue. A
utility tax (Electric & Natural gas tax) was $1,166,101 or 3.8% of total governmental activity
revenue.
Comparison with Prior Year.
Property tax and replacement tax revenue decreased by $23,270 or .18% from prior year.
Sales tax revenue increased by $336,481 or 5.66% from prior year. Charges for Services
revenue increased by $492,223 or 13.90% from prior year. State income tax revenue
increased by $172,499 or 8.44% from prior year. Miscellaneous taxes revenue (local use, real
estate transfer, hotel & motel tax, food & beverage, gasoline tax) decreased by $46,795 or
2.92% from prior year. Telecommunication decreased by $76,052 or 7.92% from prior year.
A utility tax (Electric & Natural gas tax) increased by $46,874 or 4.19% from prior year
(This space intentionally left blank)
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 8
The following table graphically depicts the major revenue sources of the Village.
Prior Year Revenue by Source – Governmental Activities – For Comparison
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 9
Expenses
For the year ended December 31, 2013, expenses for governmental activities were $31,659,175 at
December 31, 2013 and $30,823,905 at December 31, 2012, an increase of $835,270, or 2.71%. The
key change during the year for the governmental activity expenses is described below:
Administration, Police, Fire, Street and Sidewalks and Vehicle Maintenance were over
budget. The largest budget variances occurred in personal services.
The ‘Expense and Program Revenues’ table identifies those governmental functions where program
expenses exceed revenues. These deficits are expected as those governmental functions are primarily
support by General Revenues (for instance Property Taxes and Sales Taxes) rather than the Program
Revenues.
BUSINESS-TYPE ACTIVITIES
Business-Type activities posted total revenues of $10,220,534, while the costs of all business-type
activities totaled $8,651,380. This results in a surplus of $1,569,154 prior to net capital grant of
$59,024. In 2012, revenues of $9,349,883 exceed expenses of $8,106,547, resulting in a surplus of
$1,243,336 prior to net contribution of $64,122.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 10
Revenues
The Village of Morton Grove purchases its water from the City of Chicago. In 2011, the City of
Chicago announced a series of rate increases over a 4 year period equal to 70%. Per Village
municipal code 7-4-5:
7-4-5-A4: whenever the City of Chicago, Illinois, increases its rates or charges for the water
sold to the Village of Morton Grove by an amount equal to or more than one percent (1%) of
its current rate or charges, the rates to be charged by the village of Morton Grove to its
customers for water shall be automatically increased by a like percentage. Said rate increase
shall become effective upon the effective date of any rate increase by the city of Chicago.
7-4-5-A5: Additional Rate Increases: Beginning January 1, 2012, in addition to the rate
increases set forth in subsection A4 of this section, water rates will increase by an additional
three percent (3%) per year for the years 2012, 2013, 2014 and 2015
In 2013 the Village water rate increase d by 18% resulting in the current water rate charge of $9.16
per 1,000 Gallon. Water and Sewer Fund operating revenues increased by $750,713 or 10.56%, due
to rate increases.
The Village created the Solid Waste Fund to account for the financial activity of the Village
residential waste collection and disposal program. In May 2010 the Village’s staff assumed
responsibility for billing and residents are charged for waste removal and disposal as part of their bi-
monthly water bill. In 2013 Solid Waste operating revenues increased by $67,695 or 3.60%.
The Village created the Municipal Parking Fund to account for the Village parking lots and monies
received from permit sales. The Village staff are responsible for customers who signed a yearly,
quarterly or monthly lease for parking spaces near the Metra Station in Morton Grove. Operating
revenues for 2013 increased by $9,766 or 22.03%. The Parking lot opened January 2011.
Expenses
Total expenses for water and sewer fund activities totaled $6,770,519, an increase of $484,399, or
7.71% from prior year as a result of an increase in cost of water purchases and other commodities.
Total expenses for solid waste fund activities totaled $1,869,140, an increase of $49,083, or
2.70%from prior year as a result of rate increase from Groot for Trash and Leaf collection pickup.
Total expenses from Municipal Parking Fund activities totaled $11,721 or 3067.84% from prior year
as a result of stabilizing the retaining wall on the Village Municipal parking lot.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 11
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUND
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
GOVERNMENTAL FUNDS
The focus of the Village’s governmental funds is to provide information on the near -term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the Vil lage’s
financing requirement. In particular, unassigned fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
The Village’s governmental funds reported combining ending fund balances of $20,928,239, which
is $514,989, or 2.40% lower than last year’s total of $21,443,228. Of this $20,928,239 total,
$3,593,960 or approximately 17.17% of the fund balance constitutes unassigned fund balance.
General Fund: The General Fund reported a surplus for the year of $397,459. Revenue exceeds
budgeted amount such as; home rule sales tax, state income taxes, real estate transfer tax, food and
beverage taxes etc. Expenditure under budget due to continuously monitoring the expenses of each
department on a monthly basis.
The General Fund is the chief operating fund of the Village. At December 31, 2013, unassigned fund
balance in the General Fund was $5,744,509, which represents 79.07% of the total fund balance of
the General Fund. As a measure of the General Fund’s liquidity, it is useful to compare unassigned
fund balance to total expenditures. Unassigned fund balance in General Fund represents
approximately 24.04% of total General Fund expenditures.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 12
Lehigh Ferris TIF Fund: Reported a fund balance increase of $1,097,975 due to incremental
property tax revenue exceeding the expenditures for 2013.
Waukegan Road TIF Fund: Reported a fund balance declined of $376,469 as a result of debt
service costs exceeding the incremental property tax revenue.
Debt Service Fund: Reported a fund balance increase of $288,763 as a result of 2013 budget plan to
increase the home rule sales tax allocation to pay the debt service costs which exceeded the property
tax revenue allocated.
Capital Projects Fund: Reported a fund balance decrease of $1,947,014 primarily as a result of
various Capital Project Program implemented in 2013.
PROPRIETARY FUNDS
The Village’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.
The Village reports the Water and Sewer Fund a major proprietary fund. The Village reports two
non-major proprietary funds, the Solid Waste Fund and the Municipal Parking Fund. The Water and
Sewer Fund accounts for all of the operations of the municipal water system. Water is purchased
from the City of Chicago at a rate of $2.88 per thousand gallons a 15.00% increase from 2012. Water
is then sold to all residential municipal customers at a rate of $10.25 which covers both water and
sewer. Rates for commercial customers vary based on the gallons of water consumed. The spread
between the purchase and sales rates is intended to finance the operations of the water system,
including labor costs, supplies, repair and replacement and required infrastructure maintenance.
CAPITAL ASSETS
The Village’s investment in net capital assets for its governmental and business type ac tivities as of
December 31, 2013 was $66,082,653 (net of accumulated depreciation). This investment in capital
assets includes land (right of way), buildings, improvements, machinery & equipment, and
infrastructure. The minimum capital threshold remained at $10,000. For more information regarding
the Village’s capital assets, please refer to Note 4 of this CAFR.
12/31/13 12/31/12 12/31/13 12/31/12 12/31/13 12/31/12
Construction in Progress -$ -$ -$ 2,082$ -$ 2,082$
Right of Ways 43,972 42,921 - - 43,972 42,921
Infrastructure 6,547 7,087 - - 6,547 7,087
Buildings and Improvements 6,276 6,865 7,042 5,112 13,318 11,977
Machinery, Equipment and Vehicles 1,277 1,121 969 573 2,246 1,694
58,072$ 57,994$ 8,011$ 7,767$ 66,083$ 65,762$
Capital Assets - Net of Depreciation (in thousands)
Governmental Business-Type
Total
Activities Activities Total
Type of Debt
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 13
Debt Administration
In 2012 Standard and Poor classified the Village’s credit profile as ‘AA/Stable’ and therefore
assigned its ‘AA’ long-term rating to the Village. This rating reflects favorably upon the Village’s
management practices as the Village was rated AA3 by Moody’s Investor services in 2009. As the
Village is a home rule community, there is no legal limit for outstanding debt. Additional information
on the Village’s long-term debt can be found in Note 6 on page 37-45 of this report.
Long-Term Debt
At year-end, the Village had total outstanding debt of $22,864,121, as compared to
$25,022,954 the previous year, a decrease of $2,158,833, or 9.44% which coupled with
principal retirements that reduced the outstanding liability on the bonds.
The following is a comparative statement of outstanding debt (excluding intergovernmental
agreements).
Economic Factors and Future Prospects
The soft economy and showing little revenues remain the Village’s biggest challenge. The
Village Board continues to be sensitive to the unknown financial circumstances of residents
and businesses by reducing its operating expenditures and limiting tax increases. Some
challenges that were considered during the development of 2014 budget;
Instability of the National and local economy: Weak financial markets continue to dictate
low interest rates on investments. Real estate remained very slow particularly for Cook
County with the .17% foreclosure compared to .13% Illinois and .08% National. Housing
foreclosures, declining tax bases, and reduced state pass-through revenues have negatively
impacted the fiscal condition of the local economy.
Pension liabilities: Recent changes in pension legislation allowed the municipalities some
relief in funding the pension obligation at 90% by 2040. The Village continues to fund the
pension based on actuarial results from the Department of Insurance report or the
independent actuary the Village and Pensions hired. Additionally, the Village adjusted its
actuarial rate for Police and Fire pension return on investment from 7.25% in 2012 to 7.125
in 2013.
12/31/13 12/31/12 12/31/13 12/31/12 12/31/13 12/31/12
General Obligation Bonds 16,549$ 18,958$ 4,176$ 4,767$ 20,725$ 23,725$
Revolving loans - - - - - -
Installment Notes 2,139 1,298 - - 2,139 1,298
18,688$ 20,256$ 4,176$ 4,767$ 22,864$ 25,023$ Total Long Term Debt
Long Term Debt (in thousands)
Governmental
Activities
Business-Type
Activities Total
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
(See independent auditor’s report.)
MD&A 14
Total operating revenues budgeted for 2014 are $53,913,222 (excluding transfers), a 3.58%
increase from the 2013 budget, mostly due to tax revenues and charges for services. The
General fund revenues are budgeted at $25,216,197 (excluding transfers), a 1,108,179, or
4.60% increase from 2013 due to a projected slight increase from state shared sales, income
and utility taxes. The Village’s total 2013 property tax levy payable in 2014 is $9,677,907, a
0% (zero) increase over the prior year’s tax levy.
Total Village spending for the 2014 budget is $58,527,386 (excluding transfers), a 9.89%
increase from the 2013 budget. The majority of the increase distributed fairly evenly
throughout contractual, commodities, and other capital spending with personnel cost s being
slightly ahead of the other categories due to pension contributions and contractually obligated
pay increases.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Village’s finances for all those
with an interest in the Village’s operations. Questions concerning any of the information provided in
this report or request for additional financial information should be addressed to the Office of the
Finance Director, Village of Morton Grove, 6101 Capulina, Morton Grove, Illinois, 60053.
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and cash equivalents 5,163,994$ 4,141,009$ 9,305,003$
Investments 1,759,354 - 1,759,354
Receivables (net, where applicable,
of allowances for uncollectibles)
Property taxes 9,989,548 - 9,989,548
Sales tax 1,593,176 - 1,593,176
State income tax 260,098 - 260,098
Accounts and allotments 1,660,986 1,023,613 2,684,599
Due from other governments 8,600 - 8,600
Loan to developer 1,700,000 - 1,700,000
IRMA excess surplus 773,484 - 773,484
IPBC terminal reserve 591,553 - 591,553
Prepaid expenses - 36,470 36,470
Land held for resale 9,572,675 - 9,572,675
Capital assets not being depreciated 43,972,244 - 43,972,244
Capital assets (net of
accumulated depreciation)14,099,374 8,011,035 22,110,409
Total assets 91,145,086 13,212,127 104,357,213
DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding 55,918 6,777 62,695
Total deferred outflows of resources 55,918 6,777 62,695
Total assets and deferred outflows
of resources 91,201,004 13,218,904 104,419,908
Primary Government
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF NET POSITION
December 31, 2013
(This statement is continued on the following page.)
- 4 -
Governmental Business-Type
Activities Activities Total
LIABILITIES
Accounts payable 1,076,290$ 838,636$ 1,914,926$
Accrued salaries and wages 449,225 38,665 487,890
Other payables 60,852 - 60,852
Accrued interest payable 76,888 8,696 85,584
Deposits - refundable 274,258 5,496 279,754
Unearned revenue 345,445 48,120 393,565
Due to fiduciary funds 2,117 - 2,117
Noncurrent liabilities
Due within one year 3,257,542 602,946 3,860,488
Due in more than one year 39,446,226 3,895,662 43,341,888
Total liabilities 44,988,843 5,438,221 50,427,064
DEFERRED INFLOWS OF RESOURCES
Unearned revenue - property taxes 9,937,042 - 9,937,042
Total deferred inflows of resources 9,937,042 - 9,937,042
Total liabilities and deferred inflows
of resources 54,925,885 5,438,221 60,364,106
NET POSITION
Net investment in capital assets 45,225,759 4,945,237 50,170,996
Restricted for
Public safety 512,734 - 512,734
Community development 13,493,724 - 13,493,724
Highways and streets 637,927 - 637,927
Unrestricted (23,595,025) 2,835,446 (20,759,579)
TOTAL NET POSITION 36,275,119$ 7,780,683$ 44,055,802$
STATEMENT OF NET POSITION (Continued)
December 31, 2013
Primary Government
VILLAGE OF MORTON GROVE, ILLINOIS
See accompanying notes to financial statements.
- 5 -
Operating Capital
Charges Grants and Grants and
FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions
PRIMARY GOVERNMENT
Governmental Activities
General government 3,826,691$ 3,120,247$ -$ -$
Public safety 18,773,860 905,530 91,359 -
Streets and sidewalks 5,823,268 7,043 667,566 462,298
Vehicle maintenance 846,686 - - -
Health and human services 270,450 1,263 - -
Community development 467,393 - - -
Building and inspectional services 845,669 - - -
Interest 805,158 - - -
Total governmental activities 31,659,175 4,034,083 758,925 462,298
Business-Type Activities
Water and sewer 6,770,519 7,857,661 - 59,024
Solid waste 1,869,140 1,956,253 - -
Municipal parking 11,721 54,091 - -
Total business-type activities 8,651,380 9,868,005 - 59,024
TOTAL PRIMARY GOVERNMENT 40,310,555$ 13,902,088$ 758,925$ 521,322$
Program Revenues
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2013
- 6 -
Governmental Business-Type
Activities Activities Total
(706,444)$ -$ (706,444)$
(17,776,971) - (17,776,971)
(4,686,361) - (4,686,361)
(846,686) - (846,686)
(269,187) - (269,187)
(467,393) - (467,393)
(845,669) - (845,669)
(805,158) - (805,158)
(26,403,869) - (26,403,869)
- 1,146,166 1,146,166
- 87,113 87,113
- 42,370 42,370
- 1,275,649 1,275,649
(26,403,869) 1,275,649 (25,128,220)
General Revenues
Taxes
Property 12,559,743 - 12,559,743
Personal property replacement 387,370 - 387,370
Sales 6,277,412 - 6,277,412
Utility 1,166,101 - 1,166,101
Local use 400,868 - 400,868
Telecommunications 884,005 - 884,005
Income 2,217,174 - 2,217,174
Real estate transfer 430,777 - 430,777
Hotel/motel 74,616 - 74,616
Food and beverage 377,911 - 377,911
Gasoline 273,131 - 273,131
Other 246,553 - 246,553
Investment income 12,248 2,665 14,913
Gain on sale of capital assets - 49,000 49,000
Miscellaneous 414,059 300,864 714,923
Total 25,721,968 352,529 26,074,497
CHANGE IN NET POSITION (681,901) 1,628,178 946,277
NET POSITION, JANUARY 1 36,957,020 6,152,505 43,109,525
NET POSITION, DECEMBER 31 36,275,119$ 7,780,683$ 44,055,802$
Primary Government
Net (Expense) Revenue and Change in Net Position
See accompanying notes to financial statements.
- 7 -
Lehigh/Ferris Waukegan Debt Capital
General TIF Road TIF Service Projects Nonmajor Total
Cash and cash equivalents 1,299,649$ 1,435,488$ -$ -$ 1,113,735$ 1,315,122$ 5,163,994$
Investments 747,748 748,400 - 168,587 - 94,619 1,759,354
Receivables
Property taxes 8,933,048 1,995 1,559 1,001,447 51,499 - 9,989,548
Sales tax 1,344,770 - - 147,500 6,250 94,656 1,593,176
State income tax 260,098 - - - - - 260,098
Accounts and allotments 1,075,536 - - - 241,417 344,033 1,660,986
Due from other governments 8,600 - - - - - 8,600
Due from other funds 1,150,068 - - - - - 1,150,068
Loan to developer - 1,700,000 - - - - 1,700,000
Advances to other funds 1,506,190 44,364 - - - - 1,550,554
IRMA excess surplus reserve 773,484 - - - - - 773,484
IPBC terminal reserve 591,553 - - - - - 591,553
Land held for resale - 9,572,675 - - - - 9,572,675
TOTAL ASSETS 17,690,744$ 13,502,922$ 1,559$ 1,317,534$ 1,412,901$ 1,848,430$ 35,774,090$
ASSETS
VILLAGE OF MORTON GROVE, ILLINOIS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2013
- 8 -
Lehigh/Ferris Waukegan Debt Capital
General TIF Road TIF Service Projects Nonmajor Total
LIABILITIES
Accounts payable and retainage payable 450,282$ 9,198$ -$ -$ 236,978$ 379,832$ 1,076,290$
Accrued salaries and wages 449,225 - - - - - 449,225
Other payables 60,852 - - - - - 60,852
Unearned revenue 298,821 - - - 46,624 - 345,445
Deposits - refundable 274,258 - - - - - 274,258
Due to other funds - - 339,401 407,115 - 403,552 1,150,068
Due to fiduciary funds 2,117 - - - - - 2,117
Advances from other funds - - 1,428,930 - - 121,624 1,550,554
Total liabilities 1,535,555 9,198 1,768,331 407,115 283,602 905,008 4,908,809
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 8,889,931 - - 995,868 51,243 - 9,937,042
Total deferred inflows of resources 8,889,931 - - 995,868 51,243 - 9,937,042
Total liabilities and deferred inflows of resources 10,425,486 9,198 1,768,331 1,402,983 334,845 905,008 14,845,851
FUND BALANCES (DEFICIT)
Nonspendable
Advance to other funds 1,506,190 - - - - - 1,506,190
Restricted for
Public safety 14,559 - - - - 498,175 512,734
Capital improvements - unspent bond proceeds - - - - 1,078,056 - 1,078,056
Community development - 13,493,724 - - - - 13,493,724
Highways and streets - - - - - 637,927 637,927
Unrestricted
Committed for commuter improvements - - - - - 105,648 105,648
Unassigned 5,744,509 - (1,766,772) (85,449) - (298,328) 3,593,960
Total fund balances (deficit)7,265,258 13,493,724 (1,766,772) (85,449) 1,078,056 943,422 20,928,239
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 17,690,744$ 13,502,922$ 1,559$ 1,317,534$ 1,412,901$ 1,848,430$ 35,774,090$
RESOURCES AND FUND BALANCES
LIABILITIES, DEFERRED INFLOWS OF
See accompanying notes to financial statements.
- 9 -
FUND BALANCES OF GOVERNMENTAL FUNDS 20,928,239$
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are
not financial resources and, therefore, are not
reported in the governmental funds 58,071,618
Interest payable is not due and payable in the current period
and, therefore, not reported in the governmental funds (76,888)
Long-term liabilities are not due and payable in the current
period and, therefore, are not reported in the governmental funds
General obligation bonds payable (16,549,300)
Installment notes payable (2,139,121)
Intergovernmental agreement payable (3,134,950)
Net pension obligation (16,793,020)
Net other postemployment benefits obligation (3,420,715)
Compensated absences (609,900)
The unamortized bond premium is not a current financial
resource and, therefore, is not reported in the
governmental funds (63,961)
The unamortized bond discount is not a current financial
resource and, therefore, is not reported in the
governmental funds 7,199
The unamortized loss on bond refunding is shown as a deferred outflow
on the statement of net position 55,918
NET POSITION OF GOVERNMENTAL ACTIVITIES 36,275,119$
VILLAGE OF MORTON GROVE, ILLINOIS
RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION
December 31, 2013
See accompanying notes to financial statements.
- 10 -
Lehigh/Ferris Waukegan
General TIF Road TIF
REVENUES
Taxes 20,347,439$ 2,299,951$ 474,862$
Licenses and permits 1,498,507 - -
Intergovernmental 222,075 - -
Surcharges - - -
Charges for services 787,420 - -
Fines 835,461 - -
Investment income 2,467 4,126 18
Cable TV franchise fees 322,822 - -
Miscellaneous 264,904 - -
Total revenues 24,281,095 2,304,077 474,880
EXPENDITURES
Current
General government 2,983,917 - -
Public safety 16,331,849 - -
Streets and sidewalks 2,445,017 - -
Vehicle maintenance 846,686 - -
Health and human services 284,289 - -
Community development 143,571 125,120 1,616
Building and inspectional services 858,707 - -
Debt service
Principal retirement - 490,000 668,833
Interest and fiscal charges - 306,628 180,900
Capital outlay
Capital projects - 24,354 -
Total expenditures 23,894,036 946,102 851,349
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 387,059 1,357,975 (376,469)
OTHER FINANCING SOURCES (USES)
Transfers in 260,000 - -
Transfers (out)(300,000) (260,000) -
Issuance of installment note - - -
Proceeds from sale of capital assets 50,400 - -
Total other financing sources (uses)10,400 (260,000) -
NET CHANGE IN FUND BALANCES 397,459 1,097,975 (376,469)
FUND BALANCES (DEFICIT), JANUARY 1 6,867,799 12,395,749 (1,390,303)
FUND BALANCES (DEFICIT), DECEMBER 31 7,265,258$ 13,493,724$ (1,766,772)$
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2013
- 11 -
Debt Capital
Service Projects Nonmajor Total
1,687,222$ 109,850$ 376,337$ 25,295,661$
- - - 1,498,507
75,122 241,417 746,374 1,284,988
- - 249,121 249,121
- - 274,553 1,061,973
- - - 835,461
450 3,852 1,335 12,248
- - - 322,822
- 6,168 145,421 416,493
1,762,794 361,287 1,793,141 30,977,274
- - - 2,983,917
- - 539,491 16,871,340
- - 702,474 3,147,491
- - - 846,686
- - - 284,289
- - 495,193 765,500
- - - 858,707
1,469,000 - - 2,627,833
305,031 900 - 793,459
- 3,367,401 40,074 3,431,829
1,774,031 3,368,301 1,777,232 32,611,051
(11,237) (3,007,014) 15,909 (1,633,777)
300,000 - - 560,000
- - - (560,000)
- 1,060,000 - 1,060,000
- - 8,388 58,788
300,000 1,060,000 8,388 1,118,788
288,763 (1,947,014) 24,297 (514,989)
(374,212) 3,025,070 919,125 21,443,228
(85,449)$ 1,078,056$ 943,422$ 20,928,239$
See accompanying notes to financial statements.
- 12 -
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (514,989)$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlay as expenditures; however, they are
capitalized and depreciated in the statement of activities 1,553,566
Depreciation expense does not require the use of current financial statement resources,
and therefore, is not reported as in expenditure in the governmental funds (1,442,527)
Governmental funds do not report compensated absences; however, they are
recognized as a reduction to expenses on the statement of activities (68,978)
The issuance of long-term debt (installment notes) is reported as an other financing source in
governmental funds but as an increase of principal outstanding in the statement of activities (1,060,000)
The repayment of the principal portion of general obligation bonds payable, revolving notes
payable and installment notes payable are reported as debt service expenditures when
due in governmental funds but as a reduction of principal outstanding in the statement
of activities 2,627,833
The repayment of the principal portion of the intergovernmental agreement payable
is reported as an expenditure when due in governmental funds but as a reduction of
principal outstanding in the statement of activities 322,461
The amortization of the refunding loss is not reported in governmental funds,
but is reported in the statement of activities (12,425)
The amortization of the bond premium is not reported in governmental funds,
but is reported in the statement of activities 6,450
The amortization of the bond discount is not reported in governmental funds,
but is reported in the statement of activities (2,235)
The change in net pension obligation and asset is not reported in governmental
funds, but is reported in the statement of activities (1,361,389)
The change in net other postemployment benefits obligations are reported
only in the statement of activities (692,677)
Loss on disposal of capital assets (public safety expenses)(33,502)
The change in the accrued interest payable on long-term debt is reported
as interest expense on the statement of activities (3,489)
CHANGES IN NET POSITION OF GOVERNMENTAL ACTIVITIES (681,901)$
For the Year Ended December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
RECONCILIATION OF GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES
See accompanying notes to financial statements.
- 13 -
Water
and Sewer Nonmajor Total
CURRENT ASSETS
Cash and cash equivalents 3,858,550$ 282,459$ 4,141,009$
Receivables 958,429 65,184 1,023,613
Prepaid expenses - 36,470 36,470
Total current assets 4,816,979 384,113 5,201,092
NONCURRENT ASSETS
Capital assets - net of accumulated depreciation 8,011,035 - 8,011,035
Total noncurrent assets 8,011,035 - 8,011,035
Total assets 12,828,014 384,113 13,212,127
DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding 6,777 - 6,777
Total deferred outflows of resources 6,777 - 6,777
Total assets and deferred outflows of resources 12,834,791 384,113 13,218,904
CURRENT LIABILITIES
Accounts payable 626,856 211,780 838,636
Accrued salaries and wages 38,665 - 38,665
Accrued interest payable 8,696 - 8,696
Refundable deposits 5,496 - 5,496
Unearned revenue - 48,120 48,120
Compensated absences - current maturities 4,446 - 4,446
Bonds payable - current maturities 598,500 - 598,500
Total current liabilities 1,282,659 259,900 1,542,559
LONG-TERM LIABILITIES
Compensated absences 40,014 - 40,014
Bonds payable 3,580,087 - 3,580,087
Net other postemployment benefit obligation 275,561 - 275,561
Total long-term liabilities 3,895,662 - 3,895,662
Total liabilities 5,178,321 259,900 5,438,221
DEFERRED INFLOWS OF RESOURCES
None - - -
Total deferred inflows of resources - - -
Total assets and deferred inflows of resources 5,178,321 259,900 5,438,221
NET POSITION
Net investment in capital assets 4,945,237 - 4,945,237
Unrestricted 2,711,233 124,213 2,835,446
TOTAL NET POSITION 7,656,470$ 124,213$ 7,780,683$
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
See accompanying notes to financial statements.
- 14 -
Water and
Sewer Nonmajor Total
OPERATING REVENUES
Water sales 7,044,712$ -$ 7,044,712$
Sewer charges 802,095 - 802,095
Waste charges - 1,956,253 1,956,253
Meter and connection fees 10,854 - 10,854
Parking charges - 54,091 54,091
Miscellaneous 111,416 - 111,416
Total operating revenues 7,969,077 2,010,344 9,979,421
OPERATING EXPENSES
Personal services 1,741,211 - 1,741,211
Contractual services and other charges 734,298 1,880,494 2,614,792
Water purchases 3,228,171 - 3,228,171
Capital outlay 19,417 - 19,417
Commodities 303,574 367 303,941
Administrative fees 109,500 - 109,500
Utilities 75,113 - 75,113
Total operating expenses 6,211,284 1,880,861 8,092,145
OPERATING INCOME BEFORE DEPRECIATION 1,757,793 129,483 1,887,276
Depreciation 340,025 - 340,025
OPERATING INCOME 1,417,768 129,483 1,547,251
NON-OPERATING REVENUES (EXPENSES)
Rental income 189,448 - 189,448
Investment income 1,903 762 2,665
Gain on sale of capital assets 49,000 - 49,000
Interest expense and fiscal agent fees (219,210) - (219,210)
Total non-operating revenues (expenses)21,141 762 21,903
NET INCOME BEFORE CAPITAL GRANTS 1,438,909 130,245 1,569,154
CAPITAL GRANTS 59,024 - 59,024
CHANGE IN NET POSITION 1,497,933 130,245 1,628,178
NET POSITION (DEFICIT), JANUARY 1 6,158,537 (6,032) 6,152,505
NET POSITION, DECEMBER 31 7,656,470$ 124,213$ 7,780,683$
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2013
See accompanying notes to financial statements.
- 15 -
Water and
Sewer Nonmajor Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 7,629,111$ 2,013,707$ 9,642,818$
Receipts from miscellaneous revenues 111,416 - 111,416
Payments to suppliers (4,450,386) (1,980,566) (6,430,952)
Payments to employees (1,690,229) - (1,690,229)
Payments to other funds (109,500) - (109,500)
Net cash from operating activities 1,490,412 33,141 1,523,553
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Payments to other funds (37,737) - (37,737)
Rental receipts 189,448 - 189,448
Net cash from noncapital
financing activities 151,711 - 151,711
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Intergovernmental 59,024 - 59,024
Purchase of capital assets (583,782) - (583,782)
Proceeds from sale of capital assets 49,000 - 49,000
Bond principal payments (599,377) - (599,377)
Interest payments (213,357) - (213,357)
Net cash from capital and
related financing activities (1,288,492) - (1,288,492)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 1,903 762 2,665
Net cash from investing activities 1,903 762 2,665
NET INCREASE IN CASH AND
CASH EQUIVALENTS 355,534 33,903 389,437
CASH AND CASH EQUIVALENTS, JANUARY 1 3,503,016 248,556 3,751,572
CASH AND CASH EQUIVALENTS, DECEMBER 31 3,858,550$ 282,459$ 4,141,009$
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2013
(This statement is continued on the following page.)
- 16 -
Water and
Sewer Nonmajor Total
RECONCILIATION OF OPERATING INCOME TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income 1,417,768$ 129,483$ 1,547,251$
Adjustments to reconcile operating income to net
cash from operating activities
Depreciation 340,025 - 340,025
Changes in operating assets and liabilities
Receivables (193,079) (3,897) (196,976)
Prepaid expenses - (4,623) (4,623)
Refundable deposits 446 - 446
Accounts payable (89,813) (95,082) (184,895)
Accrued salaries and wages (55,696) - (55,696)
Compensated absences 44,460 - 44,460
Other postemployment benefit obligation 62,218 - 62,218
Deferred revenues (35,917) 7,260 (28,657)
NET CASH FROM OPERATING ACTIVITIES 1,490,412$ 33,141$ 1,523,553$
SCHEDULE OF NONCASH TRANSACTIONS
None -$ -$ -$
PROPRIETARY FUNDS
For the Year Ended December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CASH FLOWS (Continued)
See accompanying notes to financial statements.
- 17 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
December 31, 2013
Cash and cash equivalents 1,413,385$
Investments, at fair value
Equity mutual funds 31,327,991
Bond index fund 14,005,869
Annuity contracts 9,652,359
U.S. Treasury obligations 2,595,891
U.S. agency obligations 10,292,484
Municipal bonds 108,220
Receivables
Accrued interest 50,319
Other 49,577
Due from primary government 2,117
Prepaid expenses 4,602
Total assets 69,502,814
LIABILITIES
Accounts payable 11,299
Total liabilities 11,299
NET POSITION HELD IN TRUST FOR
PENSION BENEFITS 69,491,515$
ASSETS
See accompanying notes to financial statements.
- 18 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
For the Year Ended December 31, 2013
ADDITIONS
Contributions
Employer 3,792,981$
Employee 855,775
Total contributions 4,648,756
Investment income
Net appreciation in fair value
of investments 5,913,299
Interest 999,715
Total investment income 6,913,014
Less investment expense (121,931)
Net investment income 6,791,083
Total additions 11,439,839
DEDUCTIONS
Retirement benefits 4,426,142
Duty/nonduty disability benefits 685,367
Surviving spouse benefits 541,179
Refunds 3,608
Administrative expenses 91,967
Total deductions 5,748,263
NET INCREASE 5,691,576
NET POSITION HELD IN TRUST
FOR PENSION BENEFITS
January 1 63,799,939
December 31 69,491,515$
See accompanying notes to financial statements.
- 19 -
- 17 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 a
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.
Based on the criteria of GASB Statement No 61, The Financial Reporting Entity:
Omnibus – an amendment of GASB Statements No. 14 and No. 34, there are no
component units for which the Village is considered to be financially accountable
for.
The Village’s financial statements include pension trust funds.
Municipal Employees’ Retirement Fund (MERF)
The Village’s municipal employees participate in the Municipal Employees’
Retirement Fund (MERF). MERF functions for the benefit of these employees and is
governed by the Village Board of Trustees. The Village and MERF participants are
obligated to fund all MERF costs based upon actuarial valuations. 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, MERF 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
municipal employees that are not members of the Police Pension Employees
Retirement System or the Firefighters’ Pension Employees Retirement System and
because of the fiduciary nature of such activities. MERF is reported as a pension trust
fund.
- 20 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 18 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
a. Reporting Entity (Continued)
Police Pension Employees Retirement System (PPERS)
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 five-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,
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. PPERS is reported as a pension
trust fund.
Firefighters’ Pension Employees Retirement System (FPERS)
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 five-member pension board. Two members appointed by the
Village’s President, one elected pension beneficiary and two 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, 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. FPERS is reported as a pension trust fund.
b. Fund Accounting
The Village uses funds to report on its financial position, changes in its financial
position 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.
Funds are classified into the following categories: governmental, proprietary and
fiduciary.
- 21 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 19 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Fund Accounting (Continued)
Governmental funds are used to account for all or most of a government’s general
activities, including the collection and disbursement of restricted, committed or
assigned monies (special revenue funds), the funds restricted, committed or assigned
for the acquisition or construction of capital assets (capital projects funds) and the
funds restricted, committed or assigned for servicing of governmental 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.
c. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the nonfiduciary activities of the
Village. The effect of material interfund activity has been eliminated from these
statements. Interfund services provided and used between funds has not been
eliminated in the process of consolidation. Governmental activities which normally
are supported by taxes and intergovernmental revenues are reported separately from
business-type activities, which rely to a significant extent on fees and charges for
support.
The statement of activities demonstrates the degree to which the direct expenses of a
given function, segment or program are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or segment. Program
revenues include (1) charges to customers or applicants who purchase, use or directly
benefit from goods, services or privileges provided by a given function and (2) grants
and shared revenues that are restricted to meeting the operational or capital
requirements of a particular function. Taxes and other items are not properly
included among program revenues but are reported instead as general revenues.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial
statements.
- 22 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 20 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Government-Wide and Fund Financial Statements (Continued)
The Village reports the following major governmental funds:
The General Fund is the Village’s primary operating fund. It accounts for all
financial resources of the Village, except those accounted for in another fund.
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) District. The fund entails the TIF
District along Lehigh and Ferris Avenues. 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.
The 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) District. 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.
The Debt Service Fund is used to account for the payment of governmental
long-term debt. The Village has elected to report the fund as major.
The Capital Projects Fund accounts for property taxes levied and other
resources restricted, committed or assigned primarily for major infrastructure
and other capital improvements.
The Village reports the following major proprietary fund:
The Water and Sewer Fund accounts for the provision of water and sewer
services to the residents of the Village. All activities necessary to provide such
services are accounted for in this fund, including administration, operations,
maintenance, financing and billing and collection.
The Village reports the following fiduciary funds:
The Village reports Pension Trust Funds as fiduciary funds to account for the
Municipal Employees’ Retirement Fund, the Police Pension Fund and the
Firefighter’s Pension Fund.
- 23 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 21 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
and fiduciary fund financial statements. Revenues and additions are recorded when
earned and expenses and deductions are recorded when a liability is incurred. Grants
and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met. Operating revenues and expenses are
directly attributable to the operation of the proprietary funds. Non-operating
revenue/expenses are incidental to the operations of these funds.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. 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 or soon enough thereafter to be used to pay
liabilities of the current period, usually 60 days, except for sales tax and
telecommunication taxes which use a 90-day period. The Village recognizes property
taxes when they become both measurable and available in the year intended to
finance. Expenditures are recorded when the related fund liability is incurred.
Principal and interest on general long-term debt are recorded as expenditures when
due.
Sales taxes owed to the state at year end, franchise taxes, licenses, charges for
services and interest associated with the current fiscal period are all considered to be
susceptible to accrual and are recognized as revenues of the current fiscal period.
Income and motor fuel taxes and fines collected and held by the state or county at
year end on behalf of the Village also are recognized as revenue. Fines and permit
revenues are not susceptible to accrual because generally they are not measurable
until received in cash.
In applying the susceptible to accrual concept to intergovernmental revenues, the
legal and contractual requirements of the numerous individual programs are used as
guidelines. Monies that are virtually unrestricted as to purpose of expenditure, which
are usually revocable only for failure to comply with prescribed compliance
requirements, are reflected as revenues at the time of receipt or earlier if the
susceptible to accrual criteria are met.
- 24 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 22 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Measurement Focus, Basis of Accounting and Financial Statement Presentation
(Continued)
The Village reports unearned revenue and unavailable revenue on its financial
statements. Unearned revenue and unavailable revenue arises when a potential
revenue does not meet both the measurable and available or earned criteria for
recognition in the current period. Unearned revenue also arises 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 or deferred inflow of resources for unearned revenue or
unavailable revenue is removed from the financial statements and revenue is
recognized.
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
statement of net position. Proprietary fund operating statements present increases
(i.e., revenues) and decreases (i.e., expenses) in net position.
e. Cash and Investments
For purposes of the statement of cash flows, the Village’s proprietary fund considers
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 quoted market prices at
December 31 for debt securities, equity securities and mutual funds and contract
values for insurance contracts.
g. Interfund Transactions
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.”
- 25 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 23 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
g. Interfund Transactions (Continued)
Internal service 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 for interfund services provided and used are
reported as transfers.
Advances between funds, if any, are offset by nonspendable fund balance in
applicable governmental funds to indicate they are not available for appropriation
and are not expendable available financial resources.
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 using the consumption method.
i. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets
(e.g., roads, bridges, storm sewers and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the Village as assets with an initial,
individual cost of more than $10,000 and an estimated useful life in excess of one
year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair
market value at the date of donation.
The costs of normal maintenance and repairs, including street overlays, that do not
add to the value or service capacity of the asset or materially extend asset lives are
not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of
business-type activities is included as part of the capitalized value of the assets
constructed. Property, plant and equipment is depreciated using the straight-line
method over the following estimated useful lives:
- 26 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 24 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
i. Capital Assets (Continued)
Years
Buildings, reservoirs, pump house, water mains and improvements 50
Garage and fence 50
Office building, remodeling and improvements 10 - 50
Improvements to water system 20
Vehicles 3 - 10
Equipment 3 - 10
Water meters 10 - 15
Infrastructure
Streets 50
Alleys 10
Signals 25
Infrastructure acquired prior to fiscal years ended June 30, 1980 is also reported.
j. Compensated Absences
Vested or accumulated vacation leave that is matured is reported as an expenditure
and a fund liability of the governmental fund that will pay it in the governmental
fund financial statements. Vested or accumulated vacation leave of proprietary funds
and governmental activities 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.
In prior years, the General and Water and Sewer Funds have been used to liquidate
the liability for compensated absences.
In addition, the Village has recorded $571,460 for sick time payments to be made in
the future to all civilian employees who are at least age 50 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.
k. Rebatable Arbitrage
The Village reports rebatable arbitrage, if any, as a liability and expense in the
governmental activities column in the government-wide financial statements.
- 27 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 25 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
l. Long-Term Obligations
In the government-wide financial statements and proprietary fund in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities or
proprietary fund financial statements. Bond premiums and discounts, gains/losses or
refundings, as well as issuance costs, are deferred and amortized over the life of the
bonds. Bonds payable are reported net of the applicable bond premium or discount
and gains/losses or refundings. Issuance costs, whether or not withheld from the
actual debt proceeds received, are reported as expenses.
In the fund financial statements, governmental funds recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount
of debt issued is reported as other financing sources. Premiums received on debt
issuances are reported as other financing sources while discounts on debt issuances
are reported as other financing uses. Issuance costs, whether or not withheld from the
actual debt proceeds received, are reported as expenditures.
m. Fund Balance/Net Position
In the fund financial statements, governmental funds report nonspendable fund
balance for amounts that are either not in spendable form or are legally or
contractually required to be maintained intact. Restrictions of fund balance are
reported for amounts constrained by legal restrictions from outside parties for use for
a specific purpose or externally imposed by outside entities or from enabling
legislation adopted by the Village. Committed fund balance is constrained by formal
actions of the Village’s Board of Trustees, which is considered the Village’s highest
level of decision-making authority. Formal actions include ordinances approved by
the Board of Trustees. Assigned fund balance represents amounts constrained by the
Village’s intent to use them for a specific purpose. The authority to assign fund
balance has been delegated to the Finance Director. Any residual fund balance in the
General Fund and any deficit fund balance of any other governmental fund are
reported as unassigned.
The Village has not yet adopted a flow of funds policy; therefore, in accordance with
GASB Statement No. 54, the default flow of funds has been applied which prescribes
that the funds with the highest level of constraint are expended first. If restricted or
unrestricted funds are available for spending, the restricted funds are spent first.
Additionally, if different levels of unrestricted funds are available for spending the
Village considers committed funds to be expended first followed by assigned funds
and then unassigned funds.
- 28 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 26 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
m. Fund Balance/Net Position (Continued)
In the government-wide financial statements, restricted net positions are legally
restricted by outside parties for a specific purpose. None of the Village’s net
positions are restricted as a result of enabling legislation adopted by the Village. Net
investment in capital assets represents the book value of capital assets less any long-
term debt principal outstanding issued to construct capital assets.
n. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a
separate section for deferred outflows of resources. This separate financial statement
element, deferred outflows of resources, represents a consumption of net assets that
applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. In addition to liabilities, the statement of financial
position will sometimes report a separate section for deferred inflows of resources.
This separate financial statement element, deferred inflows of resources, represents
an acquisition of net assets that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time.
o. Accounting Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenditures/expenses during the reporting period. Actual results
could differ from those estimates.
2. DEPOSITS AND INVESTMENTS
Permitted Deposits and Investments - The Village’s investment policy (including MERF)
authorizes 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 Government 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, Illinois Funds and derivatives consistent with the
Government Finance Officers Association (GFOA) Recommended Practice on Use of
Derivatives by state and local governments. 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.
- 29 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 27 -
2. DEPOSITS AND INVESTMENTS (Continued)
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, the price for which
the investment could be sold.
Illinois Metropolitan Investment Fund (IMET) is a not-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, the price for which the investment
could be sold.
It is the investment credit risk policy of the Village to invest its funds in a manner which
will provide the highest investment return with the maximum security while meeting the
daily cash flow demands of the Village and conforming to all state and local statutes
governing the investment of public funds, using the “prudent person” standard for
managing the overall portfolio. The primary objective of the policy is legality, safety
(preservation of capital and protection of investment principal), liquidity and yield.
Village Deposits
Custodial credit risk for deposits with financial institutions is the risk that in the event of a
bank’s failure, the Village’s deposits may not be returned to it. The Village’s investment
policy requires pledging of collateral with a fair value of 110% of all bank balances in
excess of federal depository insurance with the collateral held by an agent of the Village in
the Village’s name.
Village Investments
As of December 31, 2013, the Village had the following debt security investments and
maturities.
Investment Maturities (in Years)
Less More
Fair Value than 1 1-5 6-10 than 10
IMET (1-3 year fund) $ 263,206 $ - $ 263,206 $ - $ -
Negotiable CDs 1,496,148 1,496,148 - - -
TOTAL $ 1,759,354 $ 1,496,148 $ 263,206 $ - $ -
- 30 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 28 -
2. DEPOSITS AND INVESTMENTS (Continued)
Village Investments (Continued)
In accordance with its investment policy, the Village limits its exposure to interest rate risk
by structuring the portfolio so that securities mature to meet cash requirements for ongoing
operations, thereby avoiding the need to sell securities on the open market prior to maturity
and by investing operating funds primarily in shorter-term securities. However, securities
may be sold prior to maturity if the sale minimizes the loss of principal in a declining credit
market, a security swap would improve the quality, yield or target duration of the portfolio
or for liquidity needs of the portfolio. Investments reserve funds may be purchased with
maturities to match future projects or liability requirements.
The Village limits its exposure to credit risk, the risk that the issuer of a debt security will
not pay its par value upon maturity, by primarily investing in obligations guaranteed by the
United States Government or securities issued by agencies of the United States
Government that are explicitly or implicitly guaranteed by the United States Government
or in pools. IMET is rated AAA.
Custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to the investment, the Village will not be able to recover the value of its
investments that are in possession of an outside party. To limit its exposure, the Village’s
investment policy requires all security transactions that are exposed to custodial credit risk
to be processed on a delivery versus payment (DVP) basis with the underlying investments
held by a third party acting as the Village’s agent separate from where the investment was
purchased or by the trust department of the bank where purchased, in the Village’s name.
Illinois Funds and IMET are not subject to custodial credit risk.
Concentration of credit risk - The Village’s investment policy does not contain any specific
guidelines on the diversification of the investment portfolio. At December 31, 2013, the
Village had 24.21% in negotiable certificate of deposits (CDs) and 4.26% in IMET.
Police Pension Fund Deposits
Custodial credit risk for deposits with financial institutions is the risk that in the event of a
bank’s failure, the Police Pension Fund’s deposits may not be returned to them. The Police
Pension Fund’s investment policies require pledging of collateral with a fair value of 110%
of all bank balances in excess of federal depository insurance with the collateral held by an
agent of the Police Pension Fund in the Police Pension Fund’s name.
- 31 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 29 -
2. DEPOSITS AND INVESTMENTS (Continued)
Police Pension Fund Investments
As of December 31, 2013, the Police Pension Fund had the following investments and
maturities.
Investment Maturities (in Years)
Less More
Fair Value than 1 1-5 6-10 than 10
Government bond index fund $ 13,345,200 $ 13,345,200 $ - $ - $ -
In accordance with its investment policy, the Police Pension Fund limits its exposure to
interest rate risk by structuring the portfolio to provide liquidity for operating funds and
maximizing yields for funds not needed within a one-year period. The investment policy
does not limit the maximum maturity length of investments in the Police Pension Fund.
The Police Pension Fund limits its exposure to credit risk, the risk that the issuer of a debt
security will not pay its par value upon maturity, by primarily investing in obligations
guaranteed by the United States Government or securities issued by agencies of the United
States Government that are explicitly or implicitly guaranteed by the United States
Government. The government bond index fund is not rated by the commercial ratings
agencies. The average quality rating of securities held in the fund is AAA.
Custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to the investment, the Police Pension Fund will not be able to recover the
value of its investments that are in possession of an outside party. To limit its exposure, the
Police Pension Fund’s investment policy requires all security transactions that are exposed
to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the
underlying investments held by a third party acting as the Police Pension Fund’s agent
separate from where the investment was purchased or by the trust department of the bank
where purchased, in the Police Pension Fund’s name. Illinois Funds and the money market
mutual funds are not subject to custodial credit risk.
Concentration of credit risk - the Police Pension Fund’s investment policy states
investment parameters for each asset class. Percentage allocations are intended to serve as
guidelines:
Minimum Maximum
Equities 10% 45%
International equities 0% 10%
Fixed income and cash 5% 90%
- 32 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 30 -
2. DEPOSITS AND INVESTMENTS (Continued)
Police Pension Fund Investments (Continued)
In addition, the Police Pension Fund’s investments of common, preferred or convertible
preferred stock, separate accounts managed by life insurance companies and mutual funds
shall not exceed 35% of the market value of the Police Pension Fund’s net present assets
and an additional 10% allowed to be invested in equities through a mutual fund or separate
account of a life insurance company.
Firefighters’ Pension Fund Deposits
Custodial credit risk for deposits with financial institutions is the risk that in the event of a
bank’s failure, the Firefighters’ Pension Fund’s deposits may not be returned to them. The
Firefighters’ Pension Fund’s investment policies require pledging of collateral with a fair
value of 110% of all bank balances in excess of federal depository insurance with the
collateral held by an agent of the Firefighters’ Pension Fund in the Firefighters’ Pension
Fund’s name.
Firefighters’ Pension Fund Investments
As of December 31, 2013, the Firefighters’ Pension Fund had the following investments
and maturities.
Investment Maturities (in Years)
Less More
Fair Value than 1 1-5 6-10 than 10
Municipal bonds $ 108,220 $ - $ - $ 108,220 $ -
U.S. Treasury obligations 2,595,891 - 1,626,422 969,469 -
U.S agencies 10,292,484 840,689 5,006,137 4,270,804 174,854
Bond index fund 660,669 660,669 - - -
TOTAL $ 13,657,264 $ 1,501,358 $ 6,632,559 $ 5,348,493 $ 174,854
In accordance with its investment policy, the Firefighters’ Pension Fund limits its exposure
to interest rate risk by structuring the portfolio to provide liquidity for operating funds and
maximizing yields for funds not needed within a one-year period. The investment policy
does not limit the maximum maturity length of investments in the Firefighters’ Pension
Fund.
The Firefighters’ Pension Fund limits its exposure to credit risk, the risk that the issuer of a
debt security will not pay its par value upon maturity, by primarily investing in obligations
guaranteed by the United States Government or securities issued by agencies of the United
States Government that are explicitly or implicitly guaranteed by the United States
Government. The municipal bonds and the U.S. Treasury obligations are not rated by
Standard and Poor’s. The ratings for the U.S. agency investments all were rated AA+.
- 33 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 31 -
2. DEPOSITS AND INVESTMENTS (Continued)
Firefighters’ Pension Fund Investments (Continued)
Custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to the investment, the Firefighters’ Pension Fund will not be able to recover
the value of its investments that are in possession of an outside party. To limit its exposure,
the Firefighters’ Pension Fund’s investment policy requires all security transactions that are
exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis
with the underlying investments held by a third party acting as the Firefighters’ Pension
Fund’s agent separate from where the investment was purchased or by the trust department
of the bank where purchased, in the Firefighters’ Pension Fund’s name. Illinois Funds and
the money market mutual funds are not subject to custodial credit risk.
Concentration of credit risk - the Firefighters’ Pension Fund’s investment policy states that
no more than 5% of the total portfolio may be invested in one individual security or in
cash. Also, with the exception of U.S. Treasury securities, no more than 40% of the total
fund’s investment portfolio may be invested in a single security type. At December 31,
2013, 9.15% of the Firefighters’ Pension Fund investments were invested in U.S. Treasury
obligations, 0.38% in municipal bonds and 36.27% in U.S. agency securities.
3. RECEIVABLES
a. Property Taxes
Property taxes for 2013 attach as an enforceable lien on January 1, 2013 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, 2013 and August 1, 2013 and are payable in two
installments, on or about March 1, 2013 and September 1, 2013. The County collects
such taxes and remits them periodically. The allowance for uncollectible taxes has
been stated at 3% of the tax levy, to reflect actual collection experience. Since the
2013 levy is intended to fund the 2013 fiscal year, the levy has been recorded as a
receivable and unavailable or unearned revenue.
b. Loan Receivable - Developer
In December 2010, the Village executed a loan of $1,700,000 to a developer in return
for the developer agreeing to build and operate a senior living facility in the
Lehigh/Ferris TIF District. The loan will be repaid upon sale or refinancing the
development. In addition, the Village will reimburse the developer up to $1,100,000
from new incremental taxes generated by the development during the life of the TIF
District.
- 34 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 32 -
4. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 was as follows:
Beginning
Balances
January 1
Additions
Retirements
Ending
Balances
December 31
GOVERNMENTAL ACTIVITIES
Capital assets not being depreciated
Land (including right of ways) $ 42,921,414 $ 1,050,830 $ - $ 43,972,244
Construction in progress - - - -
Total capital assets not being depreciated 42,921,414 1,050,830 - 43,972,244
Capital assets being depreciated
Buildings and improvements 18,175,872 - - 18,175,872
Vehicles and equipment 5,691,755 502,736 331,523 5,862,968
Infrastructure 30,759,292 - - 30,759,292
Total capital assets being depreciated 54,626,919 502,736 331,523 54,798,132
Less accumulated depreciation for
Buildings and improvements 11,310,891 589,191 - 11,900,082
Vehicles and equipment 4,570,791 313,457 298,021 4,586,227
Infrastructure 23,672,570 539,879 - 24,212,449
Total accumulated depreciation 39,554,252 1,442,527 298,021 40,698,758
Total capital assets being depreciated, net 15,072,667 (939,791) 33,502 14,099,374
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET
$ 57,994,081
$ 111,039
$ 33,502
$ 58,071,618
Depreciation expense was charged to functions/programs of the governmental activities as
follows:
GOVERNMENTAL ACTIVITIES
General government $ 442,297
Public safety 314,252
Streets and sidewalks 685,978
TOTAL DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 1,442,527
- 35 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 33 -
4. CAPITAL ASSETS (Continued)
Beginning
Balances
January 1
Additions
Retirements
Ending
Balances
December 31
BUSINESS-TYPE ACTIVITIES
Capital assets not being depreciated
Construction in progress $ 2,081,771 $ - $ 2,081,771 $ -
Total capital assets not being depreciated 2,081,771 - 2,081,771 -
Capital assets being depreciated
Buildings and improvements 12,294,289 2,172,321 - 14,466,610
Equipment 2,068,053 493,231 151,209 2,410,075
Total capital assets being depreciated 14,362,342 2,665,552 151,209 16,876,685
Less accumulated depreciation for
Buildings and improvements 7,182,258 242,586 - 7,424,844
Equipment 1,494,577 97,439 151,209 1,440,807
Total accumulated depreciation 8,676,835 340,025 151,209 8,865,651
Total capital assets being
depreciated, net
5,685,507
2,325,527
-
8,011,034
BUSINESS-TYPE ACTIVITIES CAPITAL
ASSETS, NET
$ 7,767,278
$ 2,325,527
$ 2,081,771
$ 8,011,034
5. RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; employee health; and
natural disasters.
These risks (except employee health) are covered by the Village’s participation in
Intergovernmental Risk Management Association (IRMA), an organization of
municipalities and special villages 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.
- 36 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 34 -
5. RISK MANAGEMENT (Continued)
The Village’s payments to IRMA are displayed on the financial statements as
expenditures/expenses in appropriate funds. Each member assumes the first $2,500 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 IRMA 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 of 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, 2013. The Village has recorded a receivable for the excess surplus balance
of $773,484 in the General Fund as of December 31, 2013.
The Village participates in the Intergovernmental Personnel Benefit Cooperative (IPBC).
IPBC is a public entity risk pool established by certain units of local government in Illinois
to administer some or all of the personnel benefit programs (primarily medical, dental and
life insurance coverage) offered by its members to their officers and employees and to the
officers and employees of certain other governmental, quasigovernmental and nonprofit
public service entities. Risk of loss is retained by the Village, except that IPBC purchases
excess coverage policies. The Village had terminal reserve net of any deficits of other
subaccounts as of June 30, 2013 (most recent available) of $591,553. This amount was
declared as a dividend to the Village and, therefore, has been recorded as a receivable in
the General Fund.
Management consists of a Board of Directors comprised of one appointed representative
from each member. In addition, there are three officers, a Benefit Administrator and a
Treasurer. The Village does not exercise any control over activities of IPBC beyond its
representation on the Board of Directors.
6. LONG-TERM DEBT
a. 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 fund if they are expected to be repaid from proprietary
revenues. In addition, general obligation bonds have been issued to refund general
obligation bonds.
- 37 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 35 -
6. LONG-TERM DEBT (Continued)
a. General Obligation Bonds (Continued)
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
Retired By
Balances
January 1
Additions
Reductions
Balances
December 31
Due Within
One Year
$9,200,000 General
Obligation Bonds Series
2007 dated November 1,
2007, due in annual
installments of $270,000
to $560,000 plus interest
at 4.0%, due on June 1
and December 1 of each
year.
Lehigh/
Ferris TIF
$ 7,655,000
$ -
$ 490,000
$ 7,165,000
$ 510,000
$7,650,000 General
Obligation Refunding
Bonds, Series 2009 dated
April 1, 2009, due in
annual installments of
$225,000 to $1,690,000
plus interest at 1.0% to
2.6%, due on June 1 and
December 1 of each year.
Water
and
Sewer
Debt
Service
837,500
2,512,500
-
-
415,000
1,245,000
422,500
1,267,500
422,500
1,267,500
$4,920,000 General
Obligation Bonds, Series
2009A dated October 1,
2009, due in annual
installments of $355,000
to $600,000 plus interest
at 3.000% to 4.125%, due
on June 1 and
December 1 of each year.
Waukegan
Road
TIF
3,790,000
-
450,000
3,340,000
475,000
$1,845,000 General
Obligation Bonds, Series
2010A dated March 31,
2010, due in annual
installments of $270,000
to $400,000 plus interest
at 2.0%, due on June 15
and December 15 of each
year.
Debt
Service
Water
and
Sewer
448,000
352,000
-
-
224,000
176,000
224,000
176,000
224,000
176,000
- 38 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 36 -
6. LONG-TERM DEBT (Continued)
a. General Obligation Bonds (Continued)
Fund Debt
Retired By
Balances
January 1
Additions
Reductions
Balances
December 31
Due Within
One Year
$8,130,000 Taxable
General Obligation Bonds
Series, 2010B dated
March 31, 2010, due in
annual installments of
$415,000 to $1,870,000
plus interest at 3.2% to
6.0%, due on June 15 and
December 15 of each
year.
Debt
Service
Water
and
Sewer
$ 4,552,800
3,577,200
$ -
-
$ -
-
$ 4,552,800
3,577,200
$ -
-
TOTAL $ 23,725,000 $ - $ 3,000,000 $ 20,725,000 $ 3,075,000
b. Installment Notes Payable
The Village issues installment notes payable to provide funds for the acquisition of
property and the development of the tax increment financing villages. Installment
notes payable have been issued for both general government and proprietary
activities.
Fund Debt
Retired By
Balances
January 1
Additions
Reductions
Balances
December 31
Due Within
One Year
$3,165,000 General
Obligation Bank
Promissory Note for
projects related to the Tax
Increment Financing Fund
and the Economic
Development Fund
principal due semiannually
through 2018 with interest
at 5.32%.
Waukegan
Road
TIF
$ 1,297,954
$ -
$ 218,833
$ 1,079,121
$ 227,912
$1,060,000 General
Obligation Bank
Promissory note, Series
2013 for land purchase,
principal is payable
annually over seven years.
Interest is at 2.0% and is
due beginning May 31,
2014.
General
-
1,060,000
-
1,060,000
142,583
TOTAL $ 1,297,954 $ 1,060,000 $ 218,833 $ 2,139,121 $ 370,495
- 39 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 37 -
6. LONG-TERM DEBT (Continued)
c. Intergovernmental Agreement with School District 67
In 1996, the Village entered into an agreement with Morton Grove School District
67. The agreement calls for the Village to remit to the school district a portion of the
proposed 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 made 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, 2013, the Village made
total intergovernmental payments of $204,623 from general (non-TIF) revenues. The
tax revenue is determined on an annual basis and the estimated future liability is
shown below.
d. 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 calls for the Village to remit
to the school district a portion of the proposed 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
School District 67, payments are made 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, 2013, the
Village made total intergovernmental payments of $117,838 from general (non-TIF)
revenues. The tax revenue is determined on an annual basis and the estimated future
liability is shown below.
Year
Ending
School
District 67
School
District 70
Total
2014 $ 220,460 $ 129,097 $ 349,557
2015 236,891 140,720 377,611
2016 253,938 152,722 406,660
2017 271,625 165,114 436,739
2018 289,975 177,909 467,884
2019-2023 - 1,096,499 1,096,499
TOTAL $ 1,272,889 $ 1,862,061 $ 3,134,950
- 40 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 38 -
6. LONG-TERM DEBT (Continued)
e. Debt Service Requirements to Maturity
Year General Obligation Bonds
Ending Governmental Activities Business-Type Activities
December 31, Principal Interest Total Principal Interest Total
2014 $ 2,476,500 $ 673,168 $ 3,149,668 $ 598,500 $ 197,710 $ 796,210
2015 1,282,400 599,839 1,882,239 182,600 183,205 365,805
2016 1,338,000 552,846 1,890,846 187,000 177,362 364,362
2017 1,395,800 501,403 1,897,203 189,200 170,630 359,830
2018 2,103,600 445,308 2,548,908 191,400 163,062 354,462
2019 899,800 370,284 1,270,084 200,200 154,066 354,266
2020 943,800 332,508 1,276,308 211,200 144,657 355,857
2021 990,000 292,875 1,282,875 220,000 134,730 354,730
2022 1,036,800 251,315 1,288,115 233,200 124,390 357,590
2023 1,083,000 206,133 1,289,133 242,000 112,147 354,147
2024 1,129,200 158,809 1,288,009 250,800 99,321 350,121
2025 330,400 109,012 439,412 259,600 85,653 345,253
2026 341,600 90,675 432,275 268,400 71,245 339,645
2027 352,800 71,375 424,175 277,200 56,080 333,280
2028 411,600 50,736 462,336 323,400 39,864 363,264
2029 434,000 26,040 460,040 341,000 20,460 361,460
TOTAL $ 16,549,300 $ 4,732,326 $ 21,281,626 $ 4,175,700 $ 1,934,582 $ 6,110,282
Year Total Installment Notes Payable
Ending Governmental Activities
December 31, Principal Interest Total
2014 $ 370,495 $ 63,184 $ 433,679
2015 382,800 50,878 433,678
2016 395,501 38,177 433,678
2017 408,776 24,902 433,678
2018 263,555 11,690 275,245
2019 157,423 6,360 163,783
2020 160,571 3,211 163,782
TOTAL $ 2,139,121 $ 198,402 $ 2,337,523
- 41 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 39 -
6. LONG-TERM DEBT (Continued)
f. Changes in Long-Term Liabilities
During the fiscal year, the following changes occurred in liabilities reported on the
schedule of long-term liabilities payable by governmental funds:
Balances
January 1
Additions
Reductions
Balances
December 31
Due Within
One Year
GOVERNMENTAL ACTIVITIES
General obligation bonds
payable
$ 18,958,300
$ -
$ 2,409,000
$ 16,549,300
$ 2,476,500
Unamortized premium on bonds 70,411 - 6,450 63,961 -
Unamortized discount on bonds (9,434) - (2,235) (7,199) -
Installment notes payable 1,297,954 1,060,000 218,833 2,139,121 370,495
Intergovernmental agreement
payable
3,457,411
-
322,461
3,134,950
349,557
Net pension obligation 15,431,631 1,361,389 - 16,793,020 -
Net other postemployment
benefit obligation
2,728,038
692,677
-
3,420,715
-
*Compensated absences payable 540,922 123,070 54,092 609,900 60,990
TOTAL GOVERNMENTAL
ACTIVITIES DEBT
$ 42,475,233
$ 3,237,136
$ 3,008,601
$ 42,703,768
$ 3,257,542
* Governmental activities’ compensated absences, net pension obligation and net other
postemployment benefit obligation are liquidated by the General Fund, the fund in which
the related salary has been charged.
Balances
January 1
Additions
Reductions
Balances
December 31
Due Within
One Year
BUSINESS-TYPE ACTIVITIES
General obligation bonds
payable
$ 4,766,700
$ -
$ 591,000
$ 4,175,700
$ 598,500
Unamortized premium on
bonds
11,264
-
8,377
2,887
-
*Net other postemployment
benefit obligation
213,343
62,218
-
275,561
-
*Compensated absences payable 64,794 - 20,334 44,460 4,446
TOTAL BUSINESS-TYPE DEBT $ 5,056,101 $ 62,218 $ 619,711 $ 4,498,608 $ 602,946
* Business-type activities’ net other postemployment benefit obligation and compensated
absences are liquidated by the Water and Sewer Fund, the fund in which the related salary
has been charged.
- 42 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 40 -
6. LONG-TERM DEBT (Continued)
g. 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.
“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.
h. Refunding Bonds
On October 1, 2009, the Village issued $4,920,000 Series 2009A General Obligation
Refunding Bonds to advance refund $4,785,000 of the General Obligation
Promissory Note, Series 2002. The proceeds of the 2009 issuance were placed in an
irrevocable trust to provide all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not
included in the financial statements. The defeased bonds are due annually on June 1
through June 1, 2022, and are callable anytime after June 1, 2016. At December 31,
2013, $3,765,000 of the refunded bonds was outstanding.
i. Economic Development and Redevelopment Agreements
1. CVS, Inc.
During June 2006, CVS, Inc. (CVS) purchased the Osco Drug (Osco) store
with which the Village had previously entered into an economic development
agreement that stated that the total amount paid will not exceed $250,000. It
was determined by legal counsel that the economic agreement that the Village
had with Osco remains applicable with CVS. Payment to Osco during 2006
through date of sale totaled $3,971. Amounts paid to CVS under the terms of
the agreement were $29,221 for fiscal year ended December 31, 2013.
- 43 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 41 -
6. LONG-TERM DEBT (Continued)
i. Economic Development and Redevelopment Agreements (Continued)
2. Gary D. McGrath
On January 14, 2002, the Village entered into a redevelopment agreement for
the Waukegan Road TIF Village 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. The 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. No
amounts were due to Gary D. McGrath under the terms of the agreement for
the fiscal year ended December 31, 2013.
3. 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 program will continue until the developer’s receipt
of $253,320 or ten years following the opening of the store, whichever comes
first. The first $110,000 of sales tax revenue of the $253,320 shall be retained
by the Village. 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 $2,000,000. Amounts paid to Walgreens under the terms of the
agreement were $18,836 for fiscal year ended December 31, 2013.
4. L & K Restaurants of Morton Grove LLC
On August 31, 2010, the Village entered into a development agreement with L
& K Restaurants of Morton Grove LLC to develop a new Culver’s Restaurant
(Culver’s). The agreement requires the Village to reimburse the developer
100% of sales taxes paid by the business for the first year after the Culver’s
store is open, and 50% of the sales taxes paid by the business from year two
through ten up to total revenue of $125,000. Amounts paid under the terms of
the agreement were $33,076 for fiscal year ended December 31, 2013.
- 44 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 42 -
6. LONG-TERM DEBT (Continued)
j. Noncommitment Debt
Industrial Revenue Bonds
On December 14, 2007, the Village approved the sale of $30,000,000 Cultural
Facility Variable Rate Demand Revenue Bonds, Series 2007 to be used for the
construction of a Holocaust Museum in Skokie, Illinois by a not-for-profit agency.
These bonds are industrial revenue bonds and are secured solely by the property
financed. The bonds are payable solely by the property owners. The Village is not
obligated in any manner for the repayment of the bonds. Accordingly, the bonds
outstanding are not reported as a liability in these financial statements.
7. INDIVIDUAL FUND DISCLOSURES
a. Due From/To Other Funds
Receivable Fund Payable Fund Amount
GOVERNMENTAL FUNDS
General Waukegan Road TIF $ 339,401
General Economic Development 403,552
General Debt Service 407,115
TOTAL $ 1,150,068
Significant amounts due from/to other funds at December 31, 2013 are as follows:
$407,115 due from the Debt Service Fund to the General Fund. This balance is
three months of sale tax overdue from the State Comptroller. The balance will
be paid in the first quarter of 2014.
$403,552 due from the Economic Development Fund to the General Fund.
This balance is three months of sale tax overdue from the State Comptroller.
The balance will be paid in the first quarter of 2014.
$339,401 due from the Waukegan Road TIF Fund to the General Fund. This
balance is from a loan from the General Fund to fund debt service payments.
The balance will be paid in 2014.
- 45 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 43 -
7. INDIVIDUAL FUND DISCLOSURES (Continued)
b. Due From/To Fiduciary Funds
Receivable Fund Payable Fund Amount
PENSION TRUST FUNDS
Municipal Employees Retirement General $ 2,117
TOTAL $ 2,117
Significant amounts due from/to fiduciary funds at December 31, 2013 are as
follows:
$2,117 due from General Fund to the Municipal Employees Retirement
Pension Trust Fund for contributions due at year end.
c. Advances
As of December 31, 2013, individual fund advances between funds were as follows:
Receivable Fund Payable Fund Amount
General Waukegan Road TIF $ 1,428,930
General Dempster/Waukegan TIF 77,260
Lehigh/Ferris TIF Dempster/Waukegan TIF 44,364
TOTAL $ 1,550,554
Significant amounts of advances at December 31, 2013 are as follows:
$1,428,930 was advanced by the General Fund as initial costs of the Waukegan
Road TIF. This amount will be repaid in future years from incremental
property tax revenues of the TIF.
d. Transfers
For the year ended December 31, 2013, individual fund transfers between funds were
as follows:
Transferred to Transferred from Amount
General Lehigh/Ferris TIF $ 260,000
Debt Service General 300,000
TOTAL $ 560,000
- 46 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 44 -
7. INDIVIDUAL FUND DISCLOSURES (Continued)
d. Transfers (Continued)
Significant amounts of transfers during the year ended December 31, 2013 are as
follows:
$260,000 was transferred from the Lehigh/Ferris TIF Fund to the General Fund
for administrative costs. This amount will not be repaid.
$300,000 was transferred from the General Fund to the Debt Service Fund to
fund a deficit. This amount will not be repaid.
e. Deficit Fund Balances
As of December 31, 2013, individual funds with deficit fund balances were as
follows:
Fund Deficit
Major Governmental
Waukegan Road TIF $ 1,766,772
Debt Service 85,449
Nonmajor Governmental
Economic Development 176,704
Dempster/Waukegan TIF 121,624
8. CONTINGENT LIABILITIES
a. 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.
b. 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 Highway Planning and
Construction.
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.
- 47 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 45 -
8. CONTINGENT LIABILITIES (Continued)
b. Grants (Continued)
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.
9. 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 23 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 2700 Patriot Boulevard, Suite 110, Glenview, Illinois 60026.
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.
- 48 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 46 -
9. JOINT VENTURES (Continued)
Solid Waste Agency of Northern Cook County (SWANCC) (Continued)
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 SWANCC 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 $411,445 to
SWANCC in 2013, which includes payment for debt contribution. The Village does not
have an equity interest in SWANCC at December 31, 2013.
Commencing in 2008, the annual expense will be subject to change based upon the actual
tonnage of refuse disposed of and current SWANCC costs. Beginning in 2004, the cost of
brush collection was transferred to the residents. The Village continues to pay tipping fees
averaging about $35,507 a month or $426,084 a year.
10. JOINTLY GOVERNED ORGANIZATION
Regional Emergency Dispatch Center
The Regional Emergency Dispatch Center (the Center) is a governmental 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 1842 Shermer Road, Northbrook, Illinois 60062.
- 49 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 47 -
11. OTHER POSTEMPLOYMENT BENEFITS
a. Plan Description
In addition to providing the pension benefits described, the Village provides other
postemployment health care benefits (OPEB) for retired employees through a single-
employer defined benefit plan (the Plan). The benefits, benefit levels, employee
contributions and employer contributions are governed by the Village and can be
amended by the Village through its personnel manual and union contracts. The Plan
is not accounted for as a trust fund, as an irrevocable trust has not been established to
account for the Plan. The Plan does not issue a separate report. The activity of the
Plan is reported in the Village’s governmental and business-type activities.
b. Benefits Provided
The Village provides pre and post-Medicare postretirement health insurance to
retirees, their spouses and dependents (enrolled at time of employee’s retirement). To
be eligible for benefits, the employee must qualify for retirement under one of the
Village’s three retirement plans. The Village provides a subsidy of 50% of the
blended healthcare premium to retired members with ten or more years of service.
Police officers and firefighters who became disabled in the line of duty during an
emergency receive continuation of healthcare benefits at no cost to the member.
Upon a retiree becoming eligible for Medicare, the amount payable under the
Village’s health plan will be reduced by the amount payable under Medicare for
those expenses that are covered under both.
c. Membership
At December 31, 2013, membership consisted of:
Retirees and beneficiaries currently receiving
benefits 42
Terminated employees entitled
to benefits but not yet receiving them -
Active employees 143
TOTAL 185
Participating employers 1
d. Funding Policy
The Village is not required to and currently does not advance fund the cost of
benefits that will become due and payable in the future. Active employees do not
contribute to the Plan until retirement.
- 50 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 48 -
11. OTHER POSTEMPLOYMENT BENEFITS (Continued)
e. Annual OPEB Costs and Net OPEB Obligation
The Village’s annual OPEB cost, the percentage of annual OPEB cost contributed to
the Plan and the net OPEB obligation was as follows:
Fiscal
Year
Ended
Annual
OPEB
Cost
Employer
Contributions
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
December 31, 2011 $ 1,118,579 $ 521,940 46.7% $ 2,391,358
December 31, 2012 1,173,358 623,335 53.1% 2,941,381
December 31, 2013 1,415,247 660,352 46.7% 3,696,276
The net OPEB obligation as of December 31, 2013 was calculated as follows:
Annual required contribution $ 1,387,902
Interest on net OPEB obligation 132,361
Adjustment to annual required contribution (105,016)
Annual OPEB cost 1,415,247
Contributions made 660,352
Increase in net OPEB obligation 754,895
Net OPEB obligation, beginning of year 2,941,381
NET OPEB OBLIGATION, END OF YEAR $ 3,696,276
Funded Status and Funding Progress: The projected funded status and funding
progress of the Plan as of December 31, 2013 was as follows:
Actuarial accrued liability (AAL) $ 20,464,527
Actuarial value of plan assets -
Unfunded actuarial accrued liability (UAAL) 20,464,527
Funded ratio (actuarial value of plan assets/AAL) 0.00%
Covered payroll (active plan members) $ 12,048,653
UAAL as a percentage of covered payroll 169.85%
- 51 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 49 -
11. OTHER POSTEMPLOYMENT BENEFITS (Continued)
e. Annual OPEB Costs and Net OPEB Obligation (Continued)
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality and the
healthcare cost trend. Amounts determined regarding the funded status of the Plan
and the annual required contributions of the employer are subject to continual
revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to financial statements, presents
multi-year trend information that shows whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
Actuarial methods and assumptions - projections of benefits for financial reporting
purposes are based on the substantive plan (the Plan as understood by the employer
and plan members) and include the types of benefits provided at the time of each
valuation and the historical pattern of sharing of benefit costs between the employer
and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective
of the calculations.
In the December 31, 2013 actuarial valuation, the entry-age normal actuarial cost
method was used. The actuarial assumptions included a 4.5% investment rate of
return and a healthcare cost trend rate of 8.03% with an ultimate healthcare inflation
rate of 4.5%. Both rates include a 4.0% wage inflation assumption. The actuarial
value of assets was not determined as the Village has not advance funded its
obligation. The Plan’s unfunded actuarial accrued liability is being amortized as a
level percentage of projected payroll on an open basis. The remaining amortization
period at December 31, 2013 was 30 years.
12. EMPLOYEE RETIREMENT SYSTEMS
a. Plan Descriptions
The Village contributes to five defined benefit pension plans, the Illinois Municipal
Retirement Fund (IMRF), an agent multiple-employer public employees retirement
system; the Sheriff’s Law Enforcement Personnel Fund (SLEP), which is
administered by IMRF, an agent multiple-employer public employee retirement
system; the Municipal Employees’ Retirement Fund (MERF), a single-employer
plan; the Police Pension Plan which is a single-employer pension plan; and the
- 52 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 50 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
a. Plan Descriptions (Continued)
Firefighters’ Pension Plan which is also a single-employer pension plan. The
benefits, benefit levels, employee contributions and employer contributions for the
Police and Firefighters’ Pension Plans are governed by Illinois Compiled Statutes
(ILCS) and can only be amended by the Illinois General Assembly. None of the
pension plans issue separate reports on the pension plans. The Morton Grove Public
Library also participates in IMRF and MERF. A portion of the liability for each plan
relates to the library.
Illinois Municipal Retirement Fund (IMRF)
IMRF provides retirement, disability, annual cost of living adjustments and death
benefits to plan members and beneficiaries. IMRF acts as a common investment and
administrative agent for local governments and school villages in Illinois. The
Illinois Pension Code establishes the benefit provisions of the plan that can only be
amended by the Illinois General Assembly.
IMRF issues a financial report that includes financial statements and required
supplementary information. The report may be obtained at
www.imrf.org/pubs/pubs_homepage.htm or by writing to the Illinois Municipal
Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
All employees (other than those covered by the Police or Firefighters’ Pension Plans)
hired in positions that meet or exceed the prescribed annual hourly standard must be
enrolled in IMRF effective January 1, 2005, as participating members. IMRF
provides two tiers of pension benefits. Employees hired prior to January 1, 2011, are
eligible for Tier 1 benefits. For Tier 1 employees, pension benefits vest after eight
years of service. Participating members who retire at age 55 (reduced benefits) or
after age 60 (full benefits) with eight years of credited service are entitled to an
annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of
their final rate of earnings, for each year of credited service up to 15 years, and 2%
for each year thereafter.
Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier
2 employees, pension benefits vest after ten years of service. Participating members
who retire at age 62 (reduced benefits) or after age 67 (full benefits) with ten years of
credited service are entitled to an annual retirement benefit, payable monthly for life,
in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited
service up to 15 years, and 2% for each year thereafter. Participating members are
required to contribute 4.50% of their annual salary to IMRF. The Village is required
to contribute the remaining amounts necessary to fund IMRF as specified by statute.
The employer contribution for the year ended December 31, 2013 was 10.26% of
covered payroll.
- 53 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 51 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
Illinois Municipal Retirement Fund (IMRF) (Continued)
a. Plan Descriptions (Continued)
For December 31, 2013, the Village’s annual pension cost of $327,895 was equal to
the Village’s required and actual contributions. The required contribution was
determined as part of the December 31, 2013 actuarial valuation using the entry-age
actuarial cost method. The actuarial assumptions included (a) 7.50% investment rate
of return (net of administrative expenses); (b) projected salary increases of 4.00% a
year, attributable to inflation; (c) additional projected salary increases ranging from
0.4% to 10.0% per year depending on age and service, attributable to seniority/merit;
and (d) postretirement benefit increases of 3% annually. The actuarial value of IMRF
assets was determined using techniques that smooth the effects of short-term
volatility in the market value of investments over a five-year period with a 20%
corridor. IMRF’s unfunded actuarial accrued liability is being amortized as a level
percentage of projected payroll on an open basis. The amortization period at
December 31, 2013 was 30 years.
Sheriff’s Law Enforcement Personnel (SLEP)
Sheriff’s Law Enforcement Personnel (SLEP) having accumulated at least 30 years
of SLEP service and terminating IMRF participation on or after July 1, 1988, may
elect to retire at or after age 50 with no early retirement discount penalty. SLEP
members meeting these two qualifications are entitled to an annual retirement
benefit, payable monthly for life, in an amount equal to 2.50% of their final rate of
earnings, for each year of credited service up to 20 years, 2.00% of their final
earnings rate for the next ten years of credited service and 1.00% for each year
thereafter. For those SLEP members retiring with less than 20 years of SLEP service,
the regular IMRF pension formula applies. SLEP also provides death and disability
benefits. These benefit provisions and all other requirements are established by state
statutes. SLEP members are required to contribute 7.50% of their annual salary to
SLEP. The Village is required to contribute the remaining amounts necessary to fund
it as specified by statute. The employer contribution rate for the calendar year ended
2013 was 13.77% of covered payroll.
Municipal Employee Retirement Fund (MERF)
All employees (other than those covered by the Police or Firefighters’ plans) hired in
positions that meet or exceed the prescribed annual hourly standard (1,000 hours)
were enrolled in MERF as participating members through January 1, 2005. The plan
is closed to new members. Pension benefits vest after ten years of service.
Participating members who retire after 30 years of creditable service or at or after age
60 with five years of credited service are entitled to an annual retirement benefit,
payable monthly for life, in an amount equal to 1 2/3% of average compensation for
each of the first 15 years of service, plus 2% of average compensation for each year
- 54 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 52 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
a. Plan Descriptions (Continued)
Municipal Employee Retirement Fund (MERF) (Continued)
of service in excess of 15 years. Average compensation is defined as the average of
the four calendar years (within the preceding ten years of participation) during which
the participant received the highest compensation. Participating members are
required to contribute 2.0% of their annual salary to MERF. The Village is required
to contribute the remaining amounts necessary to fund MERF as specified by the
plan. The employer contribution for the year ended December 31, 2013 was 21.31%
of covered payroll.
At December 31, 2013, MERF membership consisted of:
Retirees and beneficiaries currently receiving benefits 20
Terminated employees entitled to benefits but not
yet receiving them -
Active employees 28
Inactive employees 23
TOTAL 71
Police Pension Plan
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
governed by Illinois Compiled Statutes (Chapter 40 - Article 5/3) and may be
amended only by the Illinois legislature. The Village accounts for the Police Pension
Plan as a pension trust fund. At December 31, 2013, the Police Pension Plan
membership consisted of:
Retirees and beneficiaries currently receiving benefits 46
Terminated employees entitled to benefits but not
yet receiving them -
Inactive members 10
Current employees
Vested 30
Nonvested 14
TOTAL 100
- 55 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 53 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
a. Plan Descriptions (Continued)
Police Pension Plan (Continued)
The Police Pension Plan provides retirement benefits as well as death and disability
benefits. The Police Pension Plan provides retirement benefits as well as death and
disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining
the age of 50 or older with 20 or more years of creditable service are entitled to
receive an annual retirement benefit equal to 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 75.00% of
such salary.
Employees with at least eight years but less than 20 years of credited service may
retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police
officer who retired with 20 or more years of service after January 1, 1977 shall be
increased annually, following the first anniversary date of retirement and be paid
upon reaching the age of at least 55 years, by 3.00% of the original pension and
3.00% compounded annually thereafter.
Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or
older with ten or more years of creditable service are entitled to receive an annual
retirement benefit equal to the average monthly salary obtained by dividing the total
salary of the police officer during the 96 consecutive months of service within the
last 120 months of service in which the total salary was the highest by the number of
months of service in that period. Police officers’ salary for pension purposes is
capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price
Index or 3.00% compounded. 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 75.00% of such salary. Employees with at least ten years may retire at or after age
50 and receive a reduced benefit (i.e., ½% for each month under 55). The monthly
benefit of a Tier 2 police officer shall be increased annually at age 60 on the January
1st after the police officer retires, or the first anniversary of the pension starting date,
whichever is later. Noncompounding increases occur annually, each January
thereafter. The increase is the lesser of 3.00% or ½ of the change in the Consumer
Price Index for the proceeding calendar year.
Employees are required by ILCS to contribute 9.91% of their base salary to the
Police Pension Plan. If an employee leaves covered employment with less than ten
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.
- 56 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 54 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
a. Plan Descriptions (Continued)
Police Pension Plan (Continued)
Effective January 1, 2011, the Village has until the year 2040 to fund 90% of the past
service cost for the Police Pension Plan. For the year ended December 31, 2013, the
Village’s contribution was 39.55% of covered payroll.
Firefighters’ Pension Plan
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 Firefighters’
Pension Plan as a pension trust fund. At December 31, 2013, the Firefighters’
Pension Plan membership consisted of:
Retirees and beneficiaries currently receiving benefits 42
Terminated employees entitled to benefits but not
yet receiving them -
Inactive members 2
Current employees
Vested 30
Nonvested 11
TOTAL 85
The Firefighters’ Pension Plan provides retirement benefits as well as death and
disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining
the age of 50 or older with 20 or more years of creditable service are entitled to
receive an annual retirement benefit equal to one-half of the salary attached to the
rank held at the date of retirement. 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 75.00% of such 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
benefit. The monthly benefit of a covered employee 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% compounded annually thereafter.
- 57 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 55 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
a. Plan Descriptions (Continued)
Firefighters’ Pension Plan (Continued)
Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or
older with ten or more years of creditable service are entitled to receive an annual
retirement benefit equal to the average monthly salary obtained by dividing the total
salary of the firefighter during the 96 consecutive months of service within the last
120 months of service in which the total salary was the highest by the number of
months of service in that period.
Firefighters’ salary for pension purposes is capped at $106,800, plus the lesser of ½
of the annual change in the Consumer Price Index or 3.00% compounded. 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 75.00% of such salary.
Employees with at least ten years may retire at or after age 50 and receive a reduced
benefit (i.e., ½% for each month under 55). The monthly benefit of a Tier 2
firefighter shall be increased annually at age 60 on the January 1st after the firefighter
retires, or the first anniversary of the pension starting date, whichever is later.
Noncompounding increases occur annually, each January thereafter. The increase is
the lesser of 3.00% or ½ of the change in the Consumer Price Index for the
proceeding calendar year.
Effective July 1, 2004, covered employees are required to contribute 9.455% of their
base salary to the Firefighters’ Pension Plan. If an employee leaves covered
employment with less than ten years of service, accumulated employee contributions
may be refunded without accumulated interest. The Village is required to finance the
plan as actuarially determined by an enrolled actuary. Effective January 1, 2011, the
Village has until the year 2040 to fund 90% of the past services costs for the
Firefighters’ Pension Plan. For the year ended December 31, 2013, the Village’s
contribution was 46.92% of covered payroll.
b. Summary of Significant Accounting Policies and Plan Asset Matters
The financial statements are prepared using the accrual basis of accounting.
Employee and employer contributions are recognized as revenues in the period in
which employee services are performed.
Investments are reported at fair value. Investment income is recognized as earned.
Gains and losses on sales and exchanges of fixed income securities are recognized on
the transaction date.
- 58 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 56 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
b. Summary of Significant Accounting Policies and Plan Asset Matters (Continued)
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
position for either the Police or the Firefighters’ Pension Plans.
The costs of administering the Police and Firefighters’ Pension Plans are financed
through employer and employee contributions.
The benefits and refunds of the Police and Firefighters’ Pension Plans are recognized
when due and payable in accordance with the terms of the Police and Firefighters’
Pension Plans.
c. Annual Pension Cost
Employer contributions have been determined as follows:
Illinois
Municipal
Retirement
Sheriff’s Law
Enforcement
Personnel
Actuarial valuation date December 31,
2011
December 31,
2011
Actuarial cost method Entry-age
Normal
Entry-age
Normal
Asset valuation method 5 Year
Smoothed
Market
5 Year
Smoothed
Market
Amortization method Level
Percentage of
Payroll
Level
Percentage of
Payroll
Amortization period 30 Years,
Open
30 Years,
Open
- 59 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 57 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
c. Annual Pension Cost (Continued)
Illinois
Municipal
Retirement
Sheriff’s Law
Enforcement
Personnel
Significant actuarial assumptions
a) Rate of return on 7.50% 7.50%
present and future assets Compounded
Annually
Compounded
Annually
b) Projected salary increase 4.00% 4.00%
attributable to inflation Compounded
Annually
Compounded
Annually
c) Additional projected salary
increases - seniority/merit
.40% to
10.00%
.40% to
10.00%
d) Postretirement benefit
increases
3.00% 3.00%
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Actuarial valuation date January 1,
2014
December 31,
2013
December 31,
2011
Actuarial cost method Projected
Unit Credit
Entry-age
Normal
Entry-age
Normal
Asset valuation method Market Smoothed
Market
Smoothed
Market
Amortization method Level Percentage
of Payroll
Level
Percentage of
Payroll
Level
Percentage of
Payroll
Amortization period 27 Years,
Closed
27 Years,
Closed
27 Years,
Closed
- 60 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 58 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
c. Annual Pension Cost (Continued)
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Significant actuarial assumptions
a) Rate of return on 7.00% to 7.50% 7.125% 7.125%
present and future assets Pre/Postretirement Compounded Compounded
Compounded Annually Annually
Annually
b) Projected salary increase - 3.50% to 4.50% 4.50% 4.50%
attributable to inflation Compounded Compounded Compounded
Annually Annually Annually
c) Additional projected salary 1.00% 1.00% 1.00%
increases - seniority/merit
d) Postretirement benefit
increases
None 3.00% 3.00%
The Village’s annual pension cost and net pension obligation (asset) for the current
year ended December 31, 2013 were as follows:
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Annual required contributions $ 727,445 $ 1,942,614 $ 2,140,182
Interest on net pension obligation 54,203 524,554 555,586
Adjustment to annual required contribution (68,877) (400,205) (438,497)
Annual pension cost 712,771 2,066,963 2,257,271
Contributions made 450,010 1,513,592 1,712,014
Change in net pension obligation 262,761 553,371 545,257
Net pension obligation, beginning of year 774,322 6,994,055 7,663,254
NET PENSION OBLIGATION,
END OF YEAR
$ 1,037,083
$ 7,547,426
$ 8,208,511
- 61 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 59 -
12. EMPLOYEE RETIREMENT SYSTEMS (Continued)
d. Trend Information
Trend information gives an indication of the progress made in accumulating
sufficient assets to pay benefits when due.
Fiscal
Year
Illinois
Municipal
Retirement
Sheriff’s Law
Enforcement
Personnel
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Annual pension cost 2011 $ 271,600 $ - $ 655,656 $ 2,077,531 $ 2,293,361
(APC) 2012 282,054 3,258 667,127 1,986,779 2,174,011
2013 327,895 2,323 712,771 2,066,963 2,257,271
Actual contribution 2011 $ 271,600 $ - $ 490,743 $ 1,845,746 $ 2,047,228
2012 282,054 3,258 572,810 1,568,911 1,775,057
2013 327,895 2,323 450,010 1,513,592 1,712,014
Percentage of APC 2011 100.00% - 74.85% 88.84% 89.27%
contributed 2012 100.00% 100.00% 85.86% 78.97% 81.65%
2013 100.00% 100.00% 63.14% 73.23% 75.84%
Net pension obligation 2011 $ - $ - $ 680,005 $ 6,576,187 $ 7,264,300
(asset) 2012 - - 774,322 6,994,055 7,663,254
2013 - - 1,037,083 7,547,426 8,208,511
e. Funded Status and Funding Progress
The funded status and funding progress of the plans as of December 31, 2013 were as
follows:
Illinois
Municipal
Retirement
Sheriff’s Law
Enforcement
Personnel
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Actuarial accrued liability (AAL) $ 3,904,677 $ - $ 16,461,225 $ 55,964,162 $ 52,834,148
Actuarial value of plan assets 2,938,288 (9,485)* 7,980,917 30,071,140 27,567,617
Unfunded actuarial accrued
liability (UAAL)
966,389
9,485
8,480,308
25,893,022
25,266,531
Funded ratio (actuarial value of
plan assets/AAL)
75.25%
0.00%
48.48%
53.73%
52.18%
Covered payroll (active plan
members)
$ 3,195,858
$ -
$ 2,111,339
$ 3,826,781
$ 3,648,645
UAAL as a percentage of covered
payroll
30.24%
0.00%
401.66%
676.63%
692.49%
* The actuarial value of assets is negative as member benefits paid have exceeded
employer contributions; the amount relates to a former employee whose retirement
benefits were set by Sheriff’s Law Enforcement Personnel and had not been
adequately funded by a prior employer before employment with the Village.
- 62 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
- 60 -
13. SUBSEQUENT EVENTS
On March 10, 2014, the Village passed an ordinance to issue $1,415,000 of General
Obligation Bonds, Series 2014. These bonds were dated and issued on March 25, 2014 and
have an interest rate of 2.395%. These bonds were issued for the purpose of purchasing
equipment.
- 63 -
REQUIRED SUPPLEMENTARY INFORMATION
Original Final
Budget Budget Actual
REVENUES
Sales taxes 5,250,000$ 5,250,000$ 5,286,075$
Property taxes 8,559,288 8,559,288 8,637,230
Personal property replacement tax 325,000 325,000 352,998
State income taxes 2,200,000 2,200,000 2,217,174
Telecommunications taxes 1,125,000 1,125,000 884,005
Utility taxes 1,145,000 1,145,000 1,166,101
Other taxes 1,418,000 1,418,000 1,803,856
Licenses and permits 1,603,500 1,603,500 1,498,507
Intergovernmental 200,500 200,500 222,075
Charges for services 854,200 854,200 787,420
Fines 785,000 785,000 835,461
Investment income 10,000 10,000 2,467
Cable TV franchise fees 300,000 300,000 322,822
Miscellaneous 322,500 322,500 264,904
Total revenues 24,097,988 24,097,988 24,281,095
EXPENDITURES
Current
General government 3,597,777 3,597,777 2,983,917
Public safety 15,829,212 15,829,212 16,331,849
Streets and sidewalks 2,533,400 2,608,221 2,445,017
Vehicle maintenance 838,385 838,385 846,686
Health and human services 287,963 287,963 284,289
Community development 139,950 139,950 143,571
Buildings and inspection services 843,040 843,040 858,707
Total expenditures 24,069,727 24,144,548 23,894,036
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 28,261 (46,560) 387,059
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 10,000 10,000 50,400
Transfers 300,000 300,000 260,000
Debt service fund (300,000) (300,000) (300,000)
Total other financing sources (uses)10,000 10,000 10,400
NET CHANGE IN FUND BALANCE 38,261$ (36,560)$ 397,459
FUND BALANCE, JANUARY 1 6,867,799
FUND BALANCE, DECEMBER 31 7,265,258$
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended December 31, 2013
(See independent auditor's report.)
- 64 -
Original
and Final
Budget Actual
REVENUES
Property taxes 2,900,000$ 2,299,951$
Investment income 5,000 4,126
Miscellaneous - -
Total revenues 2,905,000 2,304,077
EXPENDITURES
Current
Community development
Personal services 51,300 49,122
Commodities 1,425 650
Contractual services 75,800 75,348
Debt service
Principal retirement 490,000 490,000
Interest and fiscal charges 306,200 306,628
Capital outlay 1,675,000 24,354
Total expenditures 2,599,725 946,102
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 305,275 1,357,975
OTHER FINANCING SOURCES (USES)
Transfer (out)(260,000) (260,000)
Proceeds from sale of capital assets 2,000,000 -
Total other financing sources (uses)1,740,000 (260,000)
NET CHANGE IN FUND BALANCE 2,045,275$ 1,097,975
FUND BALANCE, JANUARY 1 12,395,749
FUND BALANCE, DECEMBER 31 13,493,724$
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LEHIGH/FERRIS TAX INCREMENT FINANCING FUND
For the Year Ended December 31, 2013
(See independent auditor's report.)
- 65 -
Original
and Final
Budget Actual
REVENUES
Property taxes 815,000$ 474,862$
Investment income 750 18
Total revenues 815,750 474,880
EXPENDITURES
Current
Community development
Professional services 25,000 1,616
Commodities 900,000 -
Debt service
Principal 668,834 668,833
Interest and fiscal charges 180,900 180,900
Capital outlay 350,000 -
Total expenditures 2,124,734 851,349
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,308,984) (376,469)
OTHER FINANCING SOURCES (USES)
Transfer (out)(40,000) -
Total other financing sources (uses)(40,000) -
NET CHANGE IN FUND BALANCE (1,348,984)$ (376,469)
FUND BALANCE (DEFICIT), JANUARY 1 (1,390,303)
FUND BALANCE (DEFICIT), DECEMBER 31 (1,766,772)$
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
WAUKEGAN ROAD TAX INCREMENT FINANCING FUND
For the Year Ended December 31, 2013
(See independent auditor's report.)
- 66 -
(2)UAAL
Actuarial (4)as a
Actuarial (1)Accrued (3)Unfunded Percentage
Valuation Actuarial Liability Funded AAL (5)of Covered
Date Value of (AAL)Ratio (OAAL)Covered Payroll
December 31,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
2008 1,024,049$ 1,210,009$ 84.63%185,960$ 2,341,444$ 7.94%
2009 1,263,960 1,928,193 65.55%664,233 2,536,985 26.18%
2010 1,587,107 2,412,574 65.78%825,467 2,676,109 30.85%
2011 1,918,661 2,717,120 70.61%798,459 2,732,396 29.22%
2012 2,414,956 3,164,935 76.30%749,979 2,765,233 27.12%
2013 2,938,288 3,904,677 75.25%966,389 3,195,858 30.24%
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
ILLINOIS MUNICIPAL RETIREMENT FUND
(See independent auditor's report.)
- 67 -
(6)
Underfunded
(Overfunded)
Actuarial
(4)Accrued
(2)Unfunded Liability
(1)Actuarial (Overfunded)as a
Actuarial Actuarial Accrued (3)Actuarial (5)Percentage
Valuation Value of Liability Percentage Accrued Annual of Covered
Date Plan (AAL)Funded Liability Covered Payroll
December 31,Assets*Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
2008 69,127$ 51,219$ 134.96%(17,908)$ 121,625$ (14.72%)
2009 (21,320) - 0.00%21,320 69,944 30.48%
2010 (17,389) - 0.00%17,389 - 0.00%
2011 (21,917) - 0.00%21,917 - 0.00%
2012 (14,488) - 0.00%14,488 - 0.00%
2013 (9,485) - 0.00%9,485 - 0.00%
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
SHERRIFF'S LAW ENFORCEMENT PERSONNEL PLAN
December 31, 2013
*The actuarial value of assets is negative as member benefits paid have exceeded employer contributions;the
amount relates to a former employee whose retirement benefits were set by Sheriff’s Law Enforcement Personnel
and had not been adequately funded by a prior employer before employment with the Village.
(See independent auditor's report.)
- 68 -
(2)UAAL
Actuarial (4)as a
Actuarial (1)Accrued (3)Unfunded Percentage
Valuation Actuarial Liability Funded AAL (5)of Covered
Date Value of (AAL)Ratio (OAAL)Covered Payroll
December 31,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
2008 7,189,731$ 11,644,312$ 61.74%4,454,581$ 2,766,617$ 161.01%
2009 7,614,569 12,319,256 61.81%4,704,687 2,736,665 171.91%
2010 7,202,765 12,556,212 57.36%5,353,447 2,376,163 225.30%
2011 7,603,852 12,792,874 59.44%5,189,022 2,324,422 223.24%
2012 7,715,639 13,582,078 56.81%5,866,439 2,268,195 258.64%
2013 7,980,917 16,461,225 48.48%8,480,308 2,111,339 401.66%
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
MUNICIPAL EMPLOYEES' RETIREMENT FUND
(See independent auditor's report.)
- 69 -
(2)UAAL
Actuarial (4)as a
Actuarial (1)Accrued (3)Unfunded Percentage
Valuation Actuarial Liability Funded AAL (5)of Covered
Date Value of (AAL)Ratio (OAAL)Covered Payroll
December 31,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
2008 24,888,311$ 42,602,902$ 58.42%17,714,591$ 3,420,380$ 517.91%
2009 25,154,010 44,566,626 56.44%19,412,616 3,682,297 527.19%
2010 25,808,040 46,546,759 55.45%20,738,719 3,716,797 557.97%
2011 27,846,504 48,844,200 57.01%20,997,696 3,731,707 562.68%
2012 28,644,151 53,120,258 53.92%24,476,107 3,721,308 657.73%
2013 30,071,140 55,964,162 53.73%25,893,022 3,826,781 676.63%
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
POLICE PENSION FUND
(See independent auditor's report.)
- 70 -
(2)UAAL
Actuarial (4)as a
Actuarial (1)Accrued (3)Unfunded Percentage
Valuation Actuarial Liability Funded AAL (5)of Covered
Date Value of (AAL)Ratio (UAAL)Covered Payroll
December 31,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
2008 22,131,755$ 40,983,075$ 54.00%18,851,320$ 3,284,077$ 574.02%
2009 22,359,358 42,331,261 52.82%19,971,903 3,390,072 589.13%
2010 22,797,325 46,237,636 49.30%23,440,311 3,331,623 703.57%
2011 24,618,965 48,531,925 50.73%23,912,960 3,358,576 712.00%
2012 25,997,209 50,222,856 51.76%24,225,647 3,564,271 679.68%
2013 27,567,617 52,834,148 52.18%25,266,531 3,648,645 692.49%
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
FIREFIGHTERS' PENSION FUND
(See independent auditor's report.)
- 71 -
(6)
Underfunded
Actuarial
Accrued
(2)(4) Liability
(1)Actuarial Unfunded as a
Actuarial Actuarial Accrued (3)Actuarial (5)Percentage
Valuation Value of Liability Percentage Accrued Annual of Covered
Date Plan (AAL)Funded Liability Covered Payroll
December 31,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
2008 -$ 13,042,259$ 0.00%13,042,259$ 11,036,693$ 118.17%
2009 - 13,755,977 0.00%13,755,977 11,478,161 119.84%
2010 - 14,235,463 0.00%14,235,463 11,416,724 124.69%
2011 - 14,949,354 0.00%14,949,354 11,873,393 125.91%
2012 - 19,567,488 0.00%19,567,488 11,585,243 168.90%
2013 - 20,464,527 0.00%20,464,527 12,048,653 169.85%
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
OTHER POSTEMPLOYMENT BENEFIT PLAN
December 31, 2013
(See independent auditor's report.)
- 72 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
2008 215,881$ 215,881$ 100.00%
2009 239,238 239,238 100.00%
2010 245,399 245,399 100.00%
2011 271,600 271,600 100.00%
2012 282,054 282,054 100.00%
2013 327,895 327,895 100.00%
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
ILLINOIS MUNICIPAL RETIREMENT FUND
(See independent auditor's report.)
- 73 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
2008 15,033$ 15,033$ 100.00%
2009 8,736 8,736 100.00%
2010 - - N/A
2011 - - N/A
2012 3,258 3,258 100.00%
2013 2,323 2,323 100.00%
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
SHERRIFF'S LAW ENFORCEMENT PERSONNEL PLAN
December 31, 2013
(See independent auditor's report.)
- 74 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
2008 541,636$ 591,185$ 91.62%
2009 298,658 461,300 64.74%
2010 656,223 575,138 114.10%
2011 490,743 650,624 75.43%
2012 572,810 661,804 86.55%
2013 450,010 727,445 61.86%
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
MUNICIPAL EMPLOYEES' RETIREMENT FUND
(See independent auditor's report.)
- 75 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
2008 1,344,344$ 1,411,984$ 95.21%
2009 1,390,415 1,644,689 84.54%
2010 1,488,481 1,819,161 81.82%
2011 1,845,746 2,008,262 91.91%
2012 1,568,911 1,862,314 84.25%
2013 1,513,592 1,942,614 77.92%
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
POLICE PENSION FUND
(See independent auditor's report.)
- 76 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
2008 1,569,399$ 1,611,299$ 97.40%
2009 1,582,849 1,794,274 88.22%
2010 1,646,123 1,931,791 85.21%
2011 2,047,228 2,216,735 92.35%
2012 1,775,057 2,054,683 86.39%
2013 1,712,014 2,140,182 79.99%
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FIREFIGHTERS' PENSION FUND
(See independent auditor's report.)
- 77 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
2008 292,603$ 978,885$ 29.89%
2009 423,787 1,013,494 41.81%
2010 560,463 1,060,889 52.83%
2011 521,940 1,101,892 47.37%
2012 623,335 1,151,127 54.15%
2013 660,352 1,387,902 47.58%
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
OTHER POSTEMPLOYMENT BENEFIT PLAN
December 31, 2013
(See independent auditor's report.)
- 78 -
- 79 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2013
LEGAL COMPLIANCE AND ACCOUNTABILITY
a. Budgets
Budgets are adopted on a basis consistent with generally accepted accounting principles.
Annual appropriated budgets are adopted (at the department level) for the General, Special
Revenue (excluding Dempster/Waukegan TIF Fund), Debt Service, 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 fund level for all funds. All annual appropriations lapse at fiscal year
end.
All departments of the Village submit requests for appropriation to the Village
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.
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.
b. 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
Fire Alarm $ 37,211
9-1-1 Emergency Telephone System 250,354
- 79 -
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
GENERAL FUND
The General Fund is used to account for resources traditionally associated with governments
which are 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
DEBT SERVICE FUND
The Debt Service Fund is used to account for the payment of governmental long-term debt. The
Debt Service Fund accounts for the principal and interest 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 Proprietary Fund.
CAPITAL PROJECTS FUND
The Capital Projects Fund is 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. Bond issues used to finance a specific capital project, are separately
accounted for in this fund. The description of the Capital Projects Fund is as follows:
Capital Projects Fund - accounts for property taxes levied and other resources accumulated
primarily for major infrastructure and other capital improvements.
Orignal Final 2012
Budget Budget Actual Actual
GENERAL GOVERNMENT
Legislative
Personal services 66,500$ 66,500$ 56,857$ 56,302$
Contractual services 36,400 36,400 31,645 24,904
Commodities 12,775 12,775 4,376 2,544
Total legislative 115,675 115,675 92,878 83,750
Administrative
Personal services 622,200 622,200 592,692 534,915
Contractual services 85,650 85,650 34,095 54,283
Commodities 3,000 3,000 4,402 954
Total administrative 710,850 710,850 631,189 590,152
Finance
Personal services 913,500 913,500 842,010 1,120,510
Contractual services 841,155 841,155 533,645 657,594
Commodities 11,500 11,500 7,281 9,284
Less administrative fees
Water and Sewer Fund (120,000) (120,000) (120,000) (120,000)
Total finance 1,646,155 1,646,155 1,262,936 1,667,388
Management information services
Professional services 135,600 135,600 138,087 133,423
Contractual services 395,697 395,697 300,955 222,963
Capital outlay 63,450 63,450 55,124 37,158
Total management information services 594,747 594,747 494,166 393,544
Legal
Contractual services 200,350 200,350 124,887 112,813
Other expenditures
Other 330,000 330,000 377,861 106,319
Total other expenditures 330,000 330,000 377,861 106,319
Total general government 3,597,777 3,597,777 2,983,917 2,953,966
PUBLIC SAFETY
Police
Personal services 7,388,500 7,388,500 7,545,732 7,562,826
Contractual services 800,015 800,015 861,425 1,318,153
Commodities 127,500 127,500 124,720 73,520
Capital outlay 186,100 186,100 183,341 185,326
Total police 8,502,115 8,502,115 8,715,218 9,139,825
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended December 31, 2013
(with prior year actual for 2012)
2013
(This schedule is continued on the following pages.)
- 80 -
Orignal Final 2012
Budget Budget Actual Actual
PUBLIC SAFETY (Continued)
Fire
Personal services 6,854,700$ 6,854,700$ 7,091,707$ 6,934,809$
Contractual services 310,896 310,896 352,036 393,748
Commodities 112,159 112,159 110,623 88,524
Capital outlay 35,000 35,000 32,713 -
Total fire 7,312,755 7,312,755 7,587,079 7,417,081
Civil preparedness
Personal services 2,492 2,492 1,292 1,292
Contractual services 6,100 6,100 25,010 3,967
Commodities 3,250 3,250 752 2,131
Capital outlay 2,500 2,500 2,498 2,481
Total civil preparedness 14,342 14,342 29,552 9,871
Total public safety 15,829,212 15,829,212 16,331,849 16,566,777
STREETS AND SIDEWALKS
Streets and sidewalks
Personal services 1,616,000 1,616,000 1,642,237 1,578,367
Contractual services 442,450 442,450 302,883 401,312
Commodities 129,700 129,700 107,878 117,372
Capital outlay 262,000 336,821 330,983 147,321
Less administrative fees
Motor Fuel Tax Fund (180,000) (180,000) (180,000) (180,000)
Commuter Parking Facility Fund (105,000) (105,000) (105,000) (105,000)
Total streets and sidewalks 2,165,150 2,239,971 2,098,981 1,959,372
Engineering
Personal services 335,800 335,800 333,112 293,835
Contractual services 29,400 29,400 11,687 6,322
Commodities 3,050 3,050 1,237 1,755
Total engineering 368,250 368,250 346,036 301,912
Total streets and sidewalks 2,533,400 2,608,221 2,445,017 2,261,284
VEHICLE MAINTENANCE
Personal services 285,400 285,400 297,719 391,342
Contractual services 170,900 170,900 191,231 108,257
Commodities 382,085 382,085 357,736 316,474
Total vehicle maintenance 838,385 838,385 846,686 816,073
(with prior year actual for 2012)
2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended December 31, 2013
(This schedule is continued on the following page.)
- 81 -
Orignal Final 2012
Budget Budget Actual Actual
(with prior year actual for 2012)
2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended December 31, 2013
HEALTH AND HUMAN SERVICES
Family and Senior Services
Personal services 172,000$ 172,000$ 124,411$ 186,386$
Contractual services 101,813 101,813 152,432 66,764
Commodities 14,150 14,150 7,446 10,037
Total health and human services 287,963 287,963 284,289 263,187
COMMUNITY DEVELOPMENT
Personal services 127,400 127,400 131,818 99,900
Contractual services 11,050 11,050 11,577 4,225
Commodities 1,500 1,500 176 1,470
Total community development 139,950 139,950 143,571 105,595
BUILDING AND INSPECTION SERVICES
Building and Inspectional Services
Personal services 262,500 262,500 263,668 177,302
Contractual services 111,870 111,870 79,374 101,689
Commodities 1,800 1,800 2,664 1,024
Total building and inspectional services 376,170 376,170 345,706 280,015
Municipal Buildings
Personal services 12,500 12,500 11,756 10,632
Contractual services 151,200 151,200 155,892 295,857
Commodities 6,500 6,500 1,654 5,466
Capital outlay 296,670 296,670 343,699 106,293
Total municipal buildings 466,870 466,870 513,001 418,248
Total building and inspection services 843,040 843,040 858,707 698,263
TOTAL EXPENDITURES 24,069,727$ 24,144,548$ 23,894,036$ 23,665,145$
(See independent auditor's report.)
- 82 -
Original
and Final 2012
Budget Actual Actual
REVENUES
Property taxes 1,066,427$ 1,097,222$ 1,097,273$
Sales taxes 590,000 590,000 590,000
Intergovernmental 81,610 75,122 81,610
Investment income 1,000 450 1,110
Total revenues 1,739,037 1,762,794 1,769,993
EXPENDITURES
Debt service
Principal retirement 1,469,000 1,469,000 1,770,022
Interest and fiscal charges 334,998 305,031 339,543
Total expenditures 1,803,998 1,774,031 2,109,565
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (64,961) (11,237) (339,572)
OTHER FINANCING SOURCES (USES)
Transfers in 300,000 300,000 300,000
Total other financing sources (uses)300,000 300,000 300,000
NET CHANGE IN FUND BALANCE 235,039$ 288,763 (39,572)
FUND BALANCE (DEFICIT), JANUARY 1 (374,212) (334,640)
FUND BALANCE (DEFICIT), DECEMBER 31 (85,449)$ (374,212)$
2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DEBT SERVICE FUND
For the Year Ended December 31, 2013
(with prior year actual for 2012)
(See independent auditor's report.)
- 83 -
Original
and Final 2012
Budget Actual Actual
REVENUES
Property taxes 50,000$ 50,478$ 50,690$
Personal property replacement tax 25,500 34,372 31,005
Sales taxes 25,000 25,000 25,000
Intergovernmental 410,000 241,417 6,581
Investment income 1,000 3,852 17,286
Miscellaneous revenue - 6,168 4,403
Total revenues 511,500 361,287 134,965
EXPENDITURES
Debt service
Interest and fiscal charges - 900 -
Capital outlay
Capital projects
Capital acquisitions - 1,050,830 -
Construction 3,850,000 2,254,719 2,036,516
Engineering 80,000 61,852 41,005
Total expenditures 3,930,000 3,368,301 2,077,521
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (3,418,500) (3,007,014) (1,942,556)
OTHER FINANCING SOURCES (USES)
Issuance of installment note - 1,060,000 -
Total other financing sources (uses)- 1,060,000 -
NET CHANGE IN FUND BALANCE (3,418,500)$ (1,947,014) (1,942,556)
FUND BALANCE, JANUARY 1 3,025,070 4,967,626
FUND BALANCE, DECEMBER 31 1,078,056$ 3,025,070$
2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL PROJECTS FUND
For the Year Ended December 31, 2013
(with prior year actual for 2012)
(See independent auditor's report.)
- 84 -
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other
than for major capital projects) that are legally restricted to expenditures for specific purposes.
Six individual funds are reported within the Special Revenue Funds as follows:
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.
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.
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.
Fire Alarm Fund - accounts for expenditures related to fire alarm costs for the Regional
Emergency Dispatch Center. The funds are to be disbursed for the purchase and subsequent
maintenance of fire alarms.
Seizure Fund - accounts for expenditures related to public safety. Revenues are primarily
received from the seizure of assets within the Village limits.
Dempster/Waukegan TIF Fund - accounts for expenditures related to promoting economic
redevelopment in the Prairie View Shopping Center within the Dempster/Waukegan TIF
District.
9-1-1
Commuter Emergency
Motor Parking Telephone
Fuel Tax Facility System
Cash and cash equivalents 649,958$ 133,025$ 16,647$
Investments - - -
Sales tax receivable - - -
Accounts, miscellaneous and
allotments receivable 73,080 - 270,953
TOTAL ASSETS 723,038$ 133,025$ 287,600$
LIABILITIES
Accounts payable and retainage payable 85,111$ 27,377$ 214,464$
Due to other funds - - -
Advances from other funds - - -
Total liabilities 85,111 27,377 214,464
FUND BALANCES
Restricted for
Public safety - - 73,136
Highways and streets 637,927 - -
Unrestricted
Committed for commuter improvements - 105,648 -
Unassigned - deficit - - -
Total fund balances 637,927 105,648 73,136
TOTAL LIABILITIES AND
FUND BALANCES 723,038$ 133,025$ 287,600$
ASSETS
LIABILITIES AND FUND BALANCES
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
Special Revenue Funds
- 85 -
Economic Fire Dempster/
Development Alarm Seizure Waukegan TIF Total
86,437$ 47,891$ 381,164$ -$ 1,315,122$
94,619 - - - 94,619
94,656 - - - 94,656
- - - - 344,033
275,712$ 47,891$ 381,164$ -$ 1,848,430$
48,864$ 4,016$ -$ -$ 379,832$
403,552 - - - 403,552
- - - 121,624 121,624
452,416 4,016 - 121,624 905,008
- 43,875 381,164 - 498,175
- - - - 637,927
- - - - 105,648
(176,704) - - (121,624) (298,328)
(176,704) 43,875 381,164 (121,624) 943,422
275,712$ 47,891$ 381,164$ -$ 1,848,430$
Special Revenue Funds
(See independent auditor's report.)
- 86 -
9-1-1
Commuter Emergency
Motor Parking Telephone
Fuel Tax Facility System
REVENUES
Sales taxes -$ -$ -$
Intergovernmental 682,609 - -
Surcharge fees - - 249,121
Charges for services - 133,892 -
Investment income 142 365 46
Miscellaneous income - - 145,421
Total revenues 682,751 134,257 394,588
EXPENDITURES
Current
Public safety - - 495,354
Streets and sidewalks 493,425 209,049 -
Community development - - -
Capital outlay - - -
Total expenditures 493,425 209,049 495,354
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 189,326 (74,792) (100,766)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - 8,388
Total other financing sources (uses)- - 8,388
NET CHANGE IN FUND BALANCES 189,326 (74,792) (92,378)
FUND BALANCES (DEFICITS), JANUARY 1 448,601 180,440 165,514
FUND BALANCES (DEFICITS), DECEMBER 31 637,927$ 105,648$ 73,136$
COMBINING STATEMENT OF REVENUES, EXPENDITURES
VILLAGE OF MORTON GROVE, ILLINOIS
Special Revenue Funds
For the Year Ended December 31, 2013
NONMAJOR GOVERNMENTAL FUNDS
AND CHANGES IN FUND BALANCES
- 87 -
Economic Fire Dempster/
Development Alarm Seizure Waukegan TIF Total
376,337$ -$ -$ -$ 376,337$
- - 63,765 - 746,374
- - - - 249,121
- 140,661 - - 274,553
181 131 470 - 1,335
- - - - 145,421
376,518 140,792 64,235 - 1,793,141
- 44,137 - - 539,491
- - - - 702,474
486,543 - - 8,650 495,193
- 40,074 - - 40,074
486,543 84,211 - 8,650 1,777,232
(110,025) 56,581 64,235 (8,650) 15,909
- - - - 8,388
- - - - 8,388
(110,025) 56,581 64,235 (8,650) 24,297
(66,679) (12,706) 316,929 (112,974) 919,125
(176,704)$ 43,875$ 381,164$ (121,624)$ 943,422$
Special Revenue Funds
(See independent auditor's report.)
- 88 -
Original
and Final 2012
Budget Actual Actual
REVENUES
Intergovernmental
Motor fuel taxes 561,000$ 569,363$ 567,477$
Miscellaneous 97,000 113,246 151,037
Investment income 50 142 272
Total revenues 658,050 682,751 718,786
EXPENDITURES
Streets and sidewalks
Materials 283,000 243,985 263,476
Lighting 80,000 69,440 124,677
Administrative fees
General Fund 180,000 180,000 180,000
Total expenditures 543,000 493,425 568,153
NET CHANGE IN FUND BALANCE 115,050$ 189,326 150,633
FUND BALANCE, JANUARY 1 448,601 297,968
FUND BALANCE, DECEMBER 31 637,927$ 448,601$
2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MOTOR FUEL TAX FUND
For the Year Ended December 31, 2013
(with prior year actual for 2012)
(See independent auditor's report.)
- 89 -
Original
and Final 2012
Budget Actual Actual
REVENUES
Charges for services 140,000$ 133,892$ 135,454$
Investment income 250 365 521
Total revenues 140,250 134,257 135,975
EXPENDITURES
Streets and sidewalks
Utilities and maintenance
of street lighting 109,000 76,624 17,434
Commodities 11,500 16,925 11,715
Administrative fees
General Fund 105,000 105,000 105,000
Water and Sewer Fund 10,500 10,500 10,500
Total expenditures 236,000 209,049 144,649
NET CHANGE IN FUND BALANCE (95,750)$ (74,792) (8,674)
FUND BALANCE, JANUARY 1 180,440 189,114
FUND BALANCE, DECEMBER 31 105,648$ 180,440$
2013
(with prior year actual for 2012)
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COMMUTER PARKING FACILITY FUND
For the Year Ended December 31, 2013
(See independent auditor's report.)
- 90 -
Original
and Final 2012
Budget Actual Actual
REVENUES
Telecommunications surcharges 245,000$ 249,121$ 273,226$
Investment income - 46 241
Miscellaneous income - 145,421 -
Total revenues 245,000 394,588 273,467
EXPENDITURES
Public safety
Contractual services 245,000 495,354 259,563
Total expenditures 245,000 495,354 259,563
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES - (100,766) 13,904
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - 8,388 -
Total other financing sources (uses)- 8,388 -
NET CHANGE IN FUND BALANCE -$ (92,378) 13,904
FUND BALANCE, JANUARY 1 165,514 151,610
FUND BALANCE, DECEMBER 31 73,136$ 165,514$
2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
9-1-1 EMERGENCY TELEPHONE SYSTEM FUND
For the Year Ended December 31, 2013
(with prior year actual for 2012)
(See independent auditor's report.)
- 91 -
Original
and Final 2012
Budget Actual Actual
REVENUES
Sales taxes 312,000$ 376,337$ 312,000$
Investment income 600 181 356
Total revenues 312,600 376,518 312,356
EXPENDITURES
Community development
Contractual services 495,294 486,543 512,145
Total expenditures 495,294 486,543 512,145
NET CHANGE IN FUND BALANCE (182,694)$ (110,025) (199,789)
FUND BALANCE (DEFICIT), JANUARY 1 (66,679) 133,110
FUND BALANCE (DEFICIT), DECEMBER 31 (176,704)$ (66,679)$
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
2013
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT FUND
For the Year Ended December 31, 2013
(with prior year actual for 2012)
(See independent auditor's report.)
- 92 -
Original
and Final 2012
Budget Actual Actual
REVENUES
Charges for services 124,000$ 140,661$ 127,200$
Investment income 100 131 -
Total revenues 124,100 140,792 127,200
EXPENDITURES
Public safety
Personal services - 18,347 -
Contractual services 25,000 25,790 21,546
Capital outlay 22,000 40,074 199,458
Total expenditures 47,000 84,211 221,004
NET CHANGE IN FUND BALANCE 77,100$ 56,581 (93,804)
FUND BALANCE (DEFICIT), JANUARY 1 (12,706) 81,098
FUND BALANCE (DEFICIT), DECEMBER 31 43,875$ (12,706)$
2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FIRE ALARM FUND
For the Year Ended December 31, 2013
(with prior year actual for 2012)
(See independent auditor's report.)
- 93 -
Original
and Final 2012
Budget Actual Actual
REVENUES
Intergovernmental 37,500$ 63,765$ 90,251$
Investment income 500 470 406
Total revenues 38,000 64,235 90,657
EXPENDITURES
Public safety
Contractual services 38,000 - 405
Total expenditures 38,000 - 405
NET CHANGE IN FUND BALANCE -$ 64,235 90,252
FUND BALANCE, JANUARY 1 316,929 226,677
FUND BALANCE, DECEMBER 31 381,164$ 316,929$
2013
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SEIZURE FUND
For the Year Ended December 31, 2013
(with prior year actual for 2012)
(See independent auditor's report.)
- 94 -
NONMAJOR PROPRIETARY FUNDS
Solid Waste Fund - accounts for the operation of the Village waste collection services. All
activities necessary to provide such services mainly involve the collection and disposition of
waster and recyclable items.
Municipal Parking Fund - accounts for the operation of the Village parking lots and monies
received from permit sales. All activities necessary to provide such services are accounted for
in this fund, including but not limited to operations, maintenance and improvements.
Solid Municipal
Waste Parking Total
CURRENT ASSETS
Cash and cash equivalents 153,270$ 129,189$ 282,459$
Receivables 45,714 19,470 65,184
Prepaid expenses 36,470 - 36,470
Total current assets 235,454 148,659 384,113
Total assets 235,454 148,659 384,113
CURRENT LIABILITIES
Accounts payable 211,780 - 211,780
Unearned revenue - 48,120 48,120
Total current liabilities 211,780 48,120 259,900
Total liabilities 211,780 48,120 259,900
NET POSITION
Unrestricted 23,674 100,539 124,213
TOTAL NET POSITION 23,674$ 100,539$ 124,213$
NONMAJOR PROPRIETARY FUNDS
December 31, 2013
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF NET POSITION
(See independent auditor's report.)
- 95 -
Total
Solid Municipal Nonmajor
Waste Parking Enterprise
OPERATING REVENUES
Waste charges 1,956,253$ -$ 1,956,253$
Parking charges - 54,091 54,091
Total operating revenues 1,956,253 54,091 2,010,344
OPERATING EXPENSES
Contractual services and other charges 1,869,140 11,354 1,880,494
Commodities - 367 367
Total operating expenses 1,869,140 11,721 1,880,861
OPERATING INCOME 87,113 42,370 129,483
NON-OPERATING REVENUES
Interest income 407 355 762
CHANGE IN NET POSITION 87,520 42,725 130,245
NET POSITION (DEFICIT), JANUARY 1 (63,846) 57,814 (6,032)
NET POSITION, DECEMBER 31 23,674$ 100,539$ 124,213$
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF REVENUES, EXPENSES
NONMAJOR PROPRIETARY FUNDS
For the Year Ended December 31, 2013
AND CHANGES IN NET POSITION
(See independent auditor's report.)
- 96 -
Solid Municipal
Waste Parking Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 1,955,531$ 58,176$ 2,013,707$
Payments to suppliers (1,968,845) (11,721) (1,980,566)
Net cash from operating activities (13,314) 46,455 33,141
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
None - - -
Net cash from noncapital
financing activities - - -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
None - - -
Net cash from capital and
related financing activities - - -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 407 355 762
Net cash from investing activities 407 355 762
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (12,907) 46,810 33,903
CASH AND CASH EQUIVALENTS, JANUARY 1 166,177 82,379 248,556
CASH AND CASH EQUIVALENTS, DECEMBER 31 153,270$ 129,189$ 282,459$
RECONCILIATION OF OPERATING INCOME TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income 87,113$ 42,370$ 129,483$
Adjustments to reconcile operating income to net
cash from operating activities
Changes in operating assets and liabilities
Receivables (722) (3,175) (3,897)
Prepaid expenses (4,623) - (4,623)
Payables (95,082) - (95,082)
Unearned revenues - 7,260 7,260
NET CASH FROM OPERATING ACTIVITIES (13,314)$ 46,455$ 33,141$
SCHEDULE OF NONCASH TRANSACTIONS
None -$ -$ -$
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For the Year Ended December 31, 2013
(See independent auditor's report.)
- 97 -
FIDUCIARY FUNDS
PENSION TRUST FUNDS
Municipal Employees’ Retirement Fund - accounts for the accumulation of resources to be used
for retirement and disability pensions for the Village’s municipal employees.
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.
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.
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF PLAN NET POSITION
PENSION TRUST FUNDS
December 31, 2013
Municipal
Employees' Police Firefighters'
Retirement Pension Pension Total
Cash and cash equivalents -$ 828,877$ 584,508$ 1,413,385$
Investments, at fair value
Equity mutual funds - 17,189,650 14,138,341 31,327,991
Bond index fund - 13,345,200 660,669 14,005,869
Annuity contracts 9,652,359 - - 9,652,359
U.S. Treasury obligations - - 2,595,891 2,595,891
U.S. agency obligations - - 10,292,484 10,292,484
Municipal bonds - - 108,220 108,220
Receivables
Accrued interest - 59 50,260 50,319
Other 1,624 20,593 27,360 49,577
Due from primary government 2,117 - - 2,117
Prepaid expenses - 3,827 775 4,602
Total assets 9,656,100 31,388,206 28,458,508 69,502,814
LIABILITIES
Accounts payable - 8,873 2,426 11,299
Total liabilities - 8,873 2,426 11,299
NET POSITION HELD IN TRUST FOR
PENSION BENEFITS 9,656,100$ 31,379,333$ 28,456,082$ 69,491,515$
ASSETS
(See independent auditor's report.)
- 98 -
Municipal
Employees' Police Firefighters'2012
Retirement Pension Pension Total Actual
ADDITIONS
Contributions
Employer 567,375$ 1,513,592$ 1,712,014$ 3,792,981$ 3,959,232$
Employee 42,476 417,589 395,710 855,775 820,919
Total contributions 609,851 1,931,181 2,107,724 4,648,756 4,780,151
Investment income
Net appreciation in
fair value of investments - 3,763,943 2,149,356 5,913,299 3,905,368
Interest 334,081 474 665,160 999,715 1,000,543
Total investment income 334,081 3,764,417 2,814,516 6,913,014 4,905,911
Less investment expense (22,327) (32,022) (67,582) (121,931) (118,644)
Net investment income 311,754 3,732,395 2,746,934 6,791,083 4,787,267
Total additions 921,605 5,663,576 4,854,658 11,439,839 9,567,418
DEDUCTIONS
Retirement benefits 647,113 2,261,291 1,517,738 4,426,142 4,716,529
Duty/nonduty disability benefits - 140,768 544,599 685,367 743,041
Surviving spouse benefits - 268,536 272,643 541,179 434,235
Refunds - 3,608 - 3,608 380,084
Administrative expenses - 44,146 47,821 91,967 81,329
Total deductions 647,113 2,718,349 2,382,801 5,748,263 6,355,218
NET INCREASE 274,492 2,945,227 2,471,857 5,691,576 3,212,200
NET POSITION HELD IN TRUST
FOR PENSION BENEFITS
January 1 9,381,608 28,434,106 25,984,225 63,799,939 60,587,739
December 31 9,656,100$ 31,379,333$ 28,456,082$ 69,491,515$ 63,799,939$
2013
(with prior year actual for 2012)
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF CHANGES IN PLAN NET POSITION
PENSION TRUST FUNDS
For the Year Ended December 31, 2013
(See independent auditor's report.)
- 99 -
STATISTICAL SECTION
This part of the Village’s comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures and
required supplementary information displays about the Village’s overall financial health.
Contents Page(s)
Financial Trends
These schedules contain trend information to help the reader understand
how the Village’s financial performance and well-being have been changed
over time.
100-109
Revenue Capacity
These schedules contain information to help the reader assess the Village’s
most significant local revenue source, the property tax.
110-113
Debt Capacity
The schedules present information to help the reader assess the
affordability of the Village’s current levels of outstanding debt and the
Village’s ability to issue additional debt in the future.
114-117
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the Village’s financial
activities take place.
118-119
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the Village’s financial report relates to
the services the Village provides and the activities it performs.
120-122
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
Fiscal Year 2004 2005 2006 2007
GOVERNMENTAL ACTIVITIES
Net investment in capital assets 46,999,596$ 46,920,287$ 49,824,312$ 50,519,769$
Restricted 1,886,226 2,758,495 1,618,149 1,320,956
Unrestricted (19,709,344) (18,915,303) (16,684,584) (15,865,423)
TOTAL GOVERNMENTAL ACTIVITIES 29,176,478$ 30,763,479$ 34,757,877$ 35,975,302$
BUSINESS-TYPE ACTIVITIES
Net investment in capital assets 213,526$ 291,090$ 431,305$ 779,852$
Restricted - - - -
Unrestricted 526,266 1,298,434 1,518,474 1,557,185
TOTAL BUSINESS-TYPE ACTIVITIES 739,792$ 1,589,524$ 1,949,779$ 2,337,037$
PRIMARY GOVERNMENT
Net investment in capital assets 47,213,122$ 47,211,377$ 50,255,617$ 51,299,621$
Restricted 1,886,226 2,758,495 1,618,149 1,320,956
Unrestricted (19,183,078) (17,616,869) (15,166,110) (14,308,238)
TOTAL PRIMARY GOVERNMENT 29,916,270$ 32,353,003$ 36,707,656$ 38,312,339$
Data Source
Audited Financial Statements
VILLAGE OF MORTON GROVE, ILLINOIS
NET POSITION BY COMPONENT
Last Ten Fiscal Years
- 100 -
2008 2009 2010 2011 2012 2013
46,369,992$ 43,660,888$ 40,455,570$ 44,804,287$ 44,017,021$ 45,225,759$
1,490,542 15,697,500 19,784,173 11,645,390 13,415,241 14,644,385
(12,451,299) (24,936,412) (23,196,704) (18,379,105) (20,475,242) (23,595,025)
35,409,235$ 34,421,976$ 37,043,039$ 38,070,572$ 36,957,020$ 36,275,119$
1,194,967$ 1,918,346$ 3,844,337$ 4,490,571$ 4,108,087$ 4,945,237$
- - - - - -
1,396,375 928,429 177,104 409,939 2,044,418 2,835,446
2,591,342$ 2,846,775$ 4,021,441$ 4,900,510$ 6,152,505$ 7,780,683$
47,564,959$ 45,579,234$ 44,299,907$ 45,414,747$ 48,125,108$ 50,170,996$
1,490,542 15,697,500 19,784,173 11,645,390 13,415,241 14,644,385
(11,054,924) (24,007,983) (23,019,600) (14,089,055) (18,430,824) (20,759,579)
38,000,577$ 37,268,751$ 41,064,480$ 42,971,082$ 43,109,525$ 44,055,802$
- 101 -
Fiscal Year 2004 2005 2006 2007
EXPENSES
Governmental activities
General government 4,343,440$ 3,246,565$ 3,556,886$ 4,390,997$
Public safety 13,554,378 13,301,334 13,752,166 14,558,399
Streets and highways 2,858,425 3,349,491 3,205,566 3,187,348
Sanitation 718,894 455,792 411,845 627,214
Vehicle maintenance 692,770 700,854 752,462 872,991
Health and human services 542,572 525,788 557,683 669,564
Community development 165,062 1,278,214 2,023,898 2,433,222
Building and inspectional services 696,468 683,868 710,282 718,784
Interest 991,526 905,773 745,013 1,180,450
Total governmental activities expenses 24,563,535 24,447,679 25,715,801 28,638,969
Business-type activities
Water and sewer 3,537,103 3,779,714 4,026,028 4,047,889
Solid waste - - - -
Municipal parking - - - -
Total business-type activities expenses 3,537,103 3,779,714 4,026,028 4,047,889
TOTAL PRIMARY GOVERNMENT
EXPENSES 28,100,638$ 28,227,393$ 29,741,829$ 32,686,858$
PROGRAM REVENUES
Governmental activities
Charges for services
General government 1,594,783$ 2,255,978$ 2,202,037$ 2,289,270$
Public safety 297,149 309,786 314,940 469,729
Other activities 411,122 270,090 135,589 88,338
Operating grants and contributions 1,069,545 747,462 1,099,295 826,813
Capital grants and contributions 122,633 109,983 216,256 339,372
Total governmental activities
program revenues 3,495,232 3,693,299 3,968,117 4,013,522
Business-type activities
Charges for services
Water and sewer 4,120,267 4,580,331 4,174,016 4,239,458
Solid waste - - - -
Municipal parking - - - -
Capital grants and contributions - - - -
Total business-type activities
program revenues 4,120,267 4,580,331 4,174,016 4,239,458
TOTAL PRIMARY GOVERNMENT
PROGRAM REVENUE 7,615,499$ 8,273,630$ 8,142,133$ 8,252,980$
NET (EXPENSE) REVENUE
Governmental activities (21,068,303)$ (20,754,380)$ (21,747,684)$ (24,625,447)$
Business-type activities 583,164 800,617 147,988 191,569
TOTAL PRIMARY GOVERNMENT
NET (EXPENSE) REVENUE (20,485,139)$ (19,953,763)$ (21,599,696)$ (24,433,878)$
VILLAGE OF MORTON GROVE, ILLINOIS
CHANGE IN NET POSITION
Last Ten Fiscal Years
- 102 -
2008 2009 2010 2011 2012 2013
4,587,340$ 3,987,630$ 3,394,369$ 2,989,799$ 5,634,828$ 3,826,691$
15,324,442 16,452,967 16,785,158 18,359,859 18,526,759 18,773,860
4,196,379 3,815,984 4,312,475 4,685,104 3,547,591 5,823,268
632,928 646,686 74,942 - - -
932,625 752,089 720,434 738,039 816,073 846,686
679,218 717,693 383,133 254,522 266,405 270,450
2,047,185 778,130 695,599 331,224 470,695 467,393
693,218 812,585 511,905 533,941 699,282 845,669
1,254,168 879,876 1,018,423 1,043,389 862,272 805,158
30,347,503 28,843,640 27,896,438 28,935,877 30,823,905 31,659,175
4,550,240 4,995,861 5,204,329 5,371,031 6,286,120 6,770,519
- - 1,352,270 1,818,505 1,820,057 1,869,140
- - - - 370 11,721
4,550,240 4,995,861 6,556,599 7,189,536 8,106,547 8,651,380
34,897,743$ 33,839,501$ 34,453,037$ 36,125,413$ 38,930,452$ 40,310,555$
2,151,555$ 2,068,374$ 2,928,022$ 2,889,549$ 2,870,140$ 3,120,247$
439,602 478,189 522,603 722,977 668,063 905,530
83,477 77,835 98,009 7,981 3,657 8,306
699,862 804,094 978,467 882,240 1,002,278 758,925
55,729 1,244 216,450 278,738 157,618 462,298
3,430,225 3,429,736 4,743,551 4,781,485 4,701,756 5,255,306
4,596,060 4,990,281 5,451,711 5,773,298 7,106,948 7,857,661
- - 1,207,409 1,830,623 1,888,288 1,956,253
- - - 13,660 44,325 54,091
- - 811,519 64,122 64,122 59,024
4,596,060 4,990,281 7,470,639 7,681,703 9,103,683 9,927,029
8,026,285$ 8,420,017$ 12,214,190$ 12,463,188$ 13,805,439$ 15,182,335$
(26,917,278)$ (25,413,904)$ (23,152,887)$ (24,154,392)$ (26,122,149)$ (26,403,869)$
45,820 (5,580) 914,040 492,167 997,136 1,275,649
(26,871,458)$ (25,419,484)$ (22,238,847)$ (23,662,225)$ (25,125,013)$ (25,128,220)$
- 103 -
Fiscal Year 2004 2005 2006 2007
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities
Taxes
Property 7,993,211$ 9,358,810$ 11,485,489$ 11,677,488$
Sales 6,684,899 6,798,236 7,788,874 7,061,621
Utility 1,177,974 1,267,383 1,185,594 1,213,165
Other 3,832,556 4,627,121 4,719,673 5,223,159
Investment earnings 38,182 147,518 467,427 630,288
Miscellaneous 32,090 35,713 95,025 138,578
Gain on disposal of capital assets - - - -
Transfers 106,600 106,600 - -
Total governmental activities 19,865,512 22,341,381 25,742,082 25,944,299
Business-type activities
Investment earnings 3,044 9,286 11,993 3,652
Contributions - - - -
Miscellaneous 29,747 146,429 200,274 192,037
Gain on disposal of capital assets - - - -
Transfers (106,600) (106,600) - -
Total business-type activities (73,809) 49,115 212,267 195,689
TOTAL PRIMARY GOVERNMENT 19,791,703$ 22,390,496$ 25,954,349$ 26,139,988$
CHANGE IN NET POSITION
Governmental activities (1,202,791)$ 1,587,001$ 3,994,398$ 1,318,852$
Business-type activities 509,355 849,732 360,255 387,258
TOTAL PRIMARY GOVERNMENT
CHANGE IN NET POSITION (693,436)$ 2,436,733$ 4,354,653$ 1,706,110$
Data Source
Audited Financial Statements
Last Ten Fiscal Years
VILLAGE OF MORTON GROVE, ILLINOIS
CHANGE IN NET POSITION (Continued)
- 104 -
2008 2009 2010 2011 2012 2013
12,737,951$ 12,799,051$ 13,005,988$ 12,796,737$ 12,620,923$ 12,559,743$
6,370,839 5,604,221 5,576,524 5,602,819 5,940,931 6,277,412
1,206,890 1,144,676 1,159,513 1,154,124 1,119,227 1,166,101
5,293,549 4,773,793 4,746,800 4,715,988 5,231,516 5,292,405
394,088 304,129 114,990 73,661 26,846 12,248
574,371 295,348 1,170,135 813,078 262,112 414,059
- - - 25,518 - -
- - - - - -
26,577,688 24,921,218 25,773,950 25,181,925 25,201,555 25,721,968
12,188 3,469 6,296 15,454 13,740 2,665
- 108,134 8,100 - - -
196,297 250,925 246,230 297,636 296,582 300,864
- - - - - 49,000
- - - - - -
208,485 362,528 260,626 313,090 310,322 352,529
26,786,173$ 25,283,746$ 26,034,576$ 25,495,015$ 25,511,877$ 26,074,497$
(339,590)$ (492,686)$ 2,621,063$ 1,027,533$ (920,594)$ (681,901)$
254,305 356,948 1,174,666 805,257 1,307,458 1,628,178
(85,285)$ (135,738)$ 3,795,729$ 1,832,790$ 386,864$ 946,277$
- 105 -
Fiscal Year 2004 2005 2006 2007
GENERAL FUND
Nonspendable
Advance to other funds 19,629$ 72,073$ 55,457$ 1,667,406$
Prepaid items - - - -
Restricted for
Public safety - - - -
Specific property tax levies - - - -
Unrestricted/unassigned 3,820,401 6,399,102 9,492,148 8,890,161
TOTAL GENERAL FUND 3,840,030$ 6,471,175$ 9,547,605$ 10,557,567$
ALL OTHER GOVERNMENTAL FUNDS
Nonspendable
Prepaid items -$ -$ -$ -$
Advance to other funds - - - -
Restricted for
Public safety - - - -
Capital improvements - unspent bond proceeds - - - -
Community development 3,359,923 2,961,673 5,495,470 5,003,627
Economic development - - - -
Highways and streets - - - -
Debt service - - - -
Unrestricted
Committed for community development - - - -
Assigned for commuter improvements - - - -
Assigned for capital improvements (1,245,882) (1,011,770) - -
Special Revenue Funds - - 197,035 9,264,692
Unassigned - - - -
TOTAL ALL OTHER
GOVERNMENTAL FUNDS 2,114,041$ 1,949,903$ 5,692,505$ 14,268,319$
Note: The Village implemented GASB Statement No. 54 for the year ended December 31, 2011.
Data Source
Audited Financial Statements
VILLAGE OF MORTON GROVE, ILLINOIS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
- 106 -
2008 2009 2010 2011 2012 2013
1,614,804$ 1,588,930$ 1,549,007$ 1,508,930$ 1,546,190$ 1,506,190$
- 6,626 - - 103,495 -
- - - 116,805 116,805 14,559
- - - - 7,357 -
8,477,050 5,794,060 5,931,760 5,684,663 5,093,952 5,744,509
10,091,854$ 7,389,616$ 7,480,767$ 7,310,398$ 6,867,799$ 7,265,258$
-$ 22,336$ -$ -$ -$ -$
- - - - 35,714 -
180,400 196,590 191,843 459,385 482,443 498,175
550,497 488,113 6,483,518 4,284,205 2,481,828 1,078,056
6,003,872 14,452,122 12,671,491 10,771,232 12,360,035 13,493,724
7,282,950 - - - - -
35,727 46,069 204,343 297,968 448,601 637,927
468,461 492,270 232,978 - - -
- - - 133,110 - -
133,254 164,233 167,904 189,114 180,440 105,648
- - - 683,421 543,242 -
- - - - - -
(1,103,419) (975,505) (1,079,187) (1,494,055) (1,956,874) (2,150,549)
13,551,742$ 14,886,228$ 18,872,890$ 15,324,380$ 14,575,429$ 13,662,981$
- 107 -
Fiscal Year 2004 2005 2006 2007
REVENUES
Taxes 19,443,960$ 21,830,916$ 24,952,449$ 24,935,759$
Licenses and permits 1,157,687 1,473,641 1,375,358 1,194,285
Intergovernmental 1,057,227 857,445 1,315,550 1,176,429
Surcharge fees 76,932 220,634 227,181 239,671
Charges for services 746,743 683,943 700,674 983,358
Fines and forfeitures 253,663 282,892 273,543 327,835
Lease and rental income 45,030 30,832 - -
Investment income 87,412 147,520 467,426 620,046
Cable TV 178,520 184,424 197,272 215,606
Miscellaneous 217,741 222,516 200,746 264,832
Total revenues 23,264,915 25,934,763 29,710,199 29,957,821
EXPENDITURES
General government 3,609,971 2,807,443 3,099,624 3,176,009
Public safety 10,611,336 11,627,607 12,918,063 14,809,880
Streets and sidewalks 2,116,517 2,322,281 2,268,649 3,027,875
Sanitation 617,465 455,792 405,715 627,214
Vehicle maintenance 614,449 700,854 752,462 872,991
Health and human services 481,236 503,762 560,598 669,564
Community development 146,426 943,973 1,582,343 605,286
Building and inspection services 617,675 682,764 719,296 718,083
Debt service
Principal 1,517,631 1,986,557 1,766,127 1,940,203
Interest 993,538 943,342 690,343 999,340
Other charges - - - 101,800
Capital outlay 2,511,099 906,404 958,947 2,025,571
Total expenditures 23,837,343 23,880,779 25,722,167 29,573,816
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (572,428) 2,053,984 3,988,032 384,005
OTHER FINANCING SOURCES (USES)
Transfers in 1,049,293 714,669 83,829 2,496,092
Transfers (out)(942,693) (608,069) (83,829) (2,496,092)
Issuance of bonds - 283,198 2,831,000 9,200,000
Issuance of refunding bonds - - - -
Discount on debt issuance - - - -
Issuance of refunding installment note - - - -
Issuance of installment note - - - -
Payment to bond escrow - - - -
Other - - - 103,198
Proceeds from sale of capital assets 18,905 23,225 - -
Total other financing sources (uses)125,505 413,023 2,831,000 9,303,198
NET CHANGE IN FUND BALANCES (446,923)$ 2,467,007$ 6,819,032$ 9,687,203$
DEBT SERVICE AS A PERCENTAGE OF
NONCAPITAL EXPENDITURES 11.78%12.75%9.92%10.47%
Data Source
Audited Financial Statements
VILLAGE OF MORTON GROVE, ILLINOIS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
- 108 -
2008 2009 2010 2011 2012 2013
25,315,956$ 24,051,133$ 24,242,015$ 24,035,551$ 24,639,371$ 25,295,661$
1,115,215 1,029,669 1,569,517 1,587,662 1,472,977 1,498,507
755,810 805,337 1,194,918 1,160,979 1,250,147 1,284,988
293,273 270,610 246,812 234,115 273,226 249,121
982,042 873,261 1,014,532 1,152,456 1,067,979 1,061,973
281,457 346,754 561,349 531,010 609,450 835,461
- - - - - -
393,869 304,129 114,990 73,661 26,846 12,248
224,026 233,278 260,205 259,862 322,937 322,822
628,427 436,783 1,313,163 902,535 240,378 416,493
29,990,075 28,350,954 30,517,501 29,937,831 29,903,311 30,977,274
3,829,837 3,235,134 2,941,777 2,299,975 2,960,966 2,983,917
14,878,141 15,393,475 15,899,654 16,948,038 16,841,291 16,871,340
3,236,324 3,029,454 2,754,279 2,752,341 2,974,086 3,147,491
632,928 644,771 74,942 - - -
932,625 752,089 720,434 738,039 816,073 846,686
679,218 718,045 395,984 255,880 263,187 284,289
2,047,185 529,407 557,192 545,904 766,988 765,500
687,918 807,146 514,832 555,482 698,263 858,707
1,701,086 10,144,327 2,434,899 5,390,149 2,649,987 2,627,833
1,304,359 1,084,892 1,081,772 1,026,638 859,489 793,459
- 94,346 - - - -
1,034,105 975,791 4,680,419 3,173,842 2,342,331 3,431,829
30,963,726 37,408,877 32,056,184 33,686,288 31,172,661 32,611,051
(973,651) (9,057,923) (1,538,683) (3,748,457) (1,269,350) (1,633,777)
137,162 136,945 62,630 - - -
(137,162) (136,945) (62,630) - - -
- - 5,586,000 - - -
- 10,657,500 - - - -
- (11,975) (3,371) - - -
- 2,685,000 - - - -
- - - - - 1,060,000
- (5,661,824) - - - -
- - - - - -
17,838 21,470 33,867 29,578 77,800 58,788
17,838 7,690,171 5,616,496 29,578 77,800 1,118,788
(955,813)$ (1,367,752)$ 4,077,813$ (3,718,879)$ (1,191,550)$ (514,989)$
9.96%30.68%12.21%19.95%11.36%11.02%
- 109 -
VILLAGE OF MORTON GROVE, ILLINOIS
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Levy Years
Total Estimated Estimated
Less:Total Taxable Direct Actual Actual
Levy Residential Farm Commercial Industrial Tax-Exempt Assessed Tax Taxable Taxable
Year Property Property Property Property Property Value Rate Value Value
2003 403,983,918$ -$ 107,263,051$ 141,543,205$ -$ 652,790,174$ 1.084 1,958,370,522$ 33.333%
2004 488,573,518 - 102,814,670 157,782,189 - 749,170,377 0.995 2,247,511,131 33.333%
2005 534,079,256 - 102,275,899 164,166,151 - 800,521,306 1.122 2,401,563,918 33.333%
2006 545,691,470 - 107,797,552 154,382,871 - 807,871,893 1.159 2,423,615,679 33.333%
2007 690,027,687 - 110,013,043 168,985,460 - 969,026,190 0.996 2,907,078,570 33.333%
2008 758,998,259 - 109,264,039 187,025,722 - 1,055,288,020 0.915 3,165,864,060 33.333%
2009 784,203,243 115,060 98,422,952 147,319,741 - 1,030,060,996 0.937 3,090,182,988 33.333%
2010 701,075,231 103,019 105,399,747 146,339,223 - 952,917,220 1.021 2,858,751,660 33.333%
2011 660,244,991 103,019 89,873,325 127,153,891 - 877,375,226 1.139 2,632,125,678 33.333%
2012 N/A N/A N/A N/A N/A 811,117,483 1.231 2,433,352,449 33.333%
Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value.
N/A - Information is not available.
Data Source
Office of the County Clerk
- 110 -
Tax Levy Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
VILLAGE DIRECT RATES
General 0.705 0.778 0.940 0.660 0.559 0.486 0.465 0.528 0.597 0.658
Police pension 0.058 - - 0.142 0.132 0.138 0.162 0.179 0.182 0.191
Fire pension 0.061 - - 0.176 0.151 0.157 0.179 0.199 0.205 0.216
Bonds and interest 0.086 0.075 0.070 0.068 0.058 0.053 0.049 0.075 0.126 0.136
IMRF 0.044 0.024 - - - - - - 0.021 0.022
Purchase agreement 0.003 0.071 0.002 0.002 0.002 0.002 0.052 0.002 0.002 0.002
IEPA agreement 0.079 - 0.065 0.064 0.053 0.049 - 0.027 - -
Capital improvement 0.049 0.046 0.045 0.047 0.040 0.029 0.030 0.011 0.006 0.006
Total direct rates 1.084 0.995 1.122 1.159 0.995 0.914 0.937 1.021 1.139 1.231
OVERLAPPING RATES
Morton Grove Library 0.333 0.299 0.288 0.307 0.266 0.259 0.269 0.335 0.349 0.377
School District #68 2.464 2.178 2.149 2.258 1.931 1.882 1.999 2.133 2.452 2.723
School District #69 3.155 2.794 3.335 3.527 3.124 3.247 3.768 4.357 4.866 5.481
School District #67 2.338 2.129 2.041 2.094 1.859 1.807 1.943 2.203 2.449 2.961
School District #63 2.609 2.624 2.542 2.617 2.276 2.233 2.235 2.499 2.775 3.100
School District #70 2.906 2.792 2.729 2.846 2.506 2.484 2.574 2.890 3.261 3.669
High School District #207 2.012 1.795 1.757 1.826 1.602 1.577 1.617 1.782 1.995 2.215
High School District #219 2.090 2.013 2.007 2.374 2.114 2.120 2.267 2.538 2.904 3.256
Community College District #535 0.186 0.161 0.158 0.166 0.141 0.140 0.140 0.160 0.196 0.219
Cook County 0.630 0.593 0.533 0.500 0.446 0.415 0.394 0.423 0.462 0.531
Cook County Forest Preserve 0.059 0.060 0.060 0.057 0.053 0.051 0.049 0.051 0.058 0.063
Consolidated Elections - - - - 0.012 - 0.021 - 0.025 0.531
Metro Water Reclamation District 0.361 0.347 0.315 0.028 0.263 0.252 0.261 0.274 0.320 0.370
Morton Grove Park District 0.380 0.337 0.325 0.328 0.289 0.272 0.284 0.311 0.365 0.382
Skokie Park District 0.456 0.437 0.407 0.436 0.375 0.386 0.383 0.423 0.476 0.518
Glenview Park District 0.516 0.505 0.490 0.511 0.429 0.429 0.422 0.483 0.538 0.579
Maine Township 0.135 0.122 0.121 0.127 0.114 0.112 0.117 0.131 0.149 0.168
Niles Township 0.036 0.033 0.031 0.034 0.030 0.030 0.032 0.036 0.042 0.048
Suburban T.B. Sanitary District 0.004 0.001 0.005 0.005 - - - - - -
North Shore Mosquito Abatement 0.009 0.008 0.008 0.009 0.008 0.008 0.008 0.009 0.010 0.010
Data Source
Office of the County Clerk
VILLAGE OF MORTON GROVE, ILLINOIS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Levy Years
- 111 -
VILLAGE OF MORTON GROVE, ILLINOIS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Village Village
EAV Taxable EAV Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
CRP Holdings CLP 14,172,477$ 1 1.75%19,124,549$ 2 2.55%
Schwinge Family Ltd.12,041,237 2 1.48%11,565,995 5 1.54%
Tower Real Estate 11,748,543 3 1.45%20,572,986 1 2.75%
Menards 8,880,602 4 1.09%12,402,547 3 1.66%
Bell & Gossett (Fluid Handling LLC)7,884,962 5 0.97%12,300,304 4 1.64%
Avon 7,553,741 6 0.93%10,142,254 6 1.35%
John Crane 7,308,091 7 0.90%10,109,600 7 1.35%
Schwartz Paper Co - 0.00%8,701,678 8 1.16%
Lawnware Products - 0.00%6,204,875 10 0.83%
Public Storage 5,198,395 8 0.64%- 0.00%
Kraft 4,899,147 9 0.60%8,008,438 9 1.07%
Capital Property Mgmt 4,360,051 10 0.54%- 0.00%
84,047,246$ 10.35%119,133,226$ 15.90%
Data Source
Office of the County Clerk
2013 2004
Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers contain multiple
parcels and it is possible that some parcels and their valuations have been overlooked.
- 112 -
VILLAGE OF MORTON GROVE, ILLINOIS
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Levy Years
Collections
Levy Percentage in Subsequent Percentage
Year Tax Levied Amount of Levy Years Amount of Levy
2003 7,079,618$ 6,995,656$ 98.81%-$ 6,995,656$ 98.81%
2004 7,450,559 7,257,511 97.41%- 7,257,511 97.41%
2005 8,983,978 8,861,648 98.64%- 8,861,648 98.64%
2006 9,368,298 9,160,127 97.78%- 9,160,127 97.78%
2007 9,649,253 9,455,259 97.99%- 9,455,259 97.99%
2008 9,649,253 9,312,628 96.51%- 9,312,628 96.51%
2009 9,649,253 9,346,622 96.86%- 9,346,622 96.86%
2010 9,986,977 9,544,078 95.57%- 9,544,078 95.57%
2011 9,986,977 9,756,941 97.70%- 9,756,941 97.70%
2012 9,986,976 9,784,931 97.98%- 9,784,931 97.98%
Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value.
Data Source
Office of the County Clerk
Collected within the
Fiscal Year of the Levy Total Collections to Date
- 113 -
Governmental Activities Business-Type Activities
Fiscal General Revolving Installment Intergovernmental General Revolving Installment Total Percentage of
Year Obligation Loans Notes Agreements Obligation Loans Notes Primary Personal Per
Ended Bonds Payable Payable Payable Bonds Payable Payable Government Income*Capita*
2004 8,932,500$ 3,174,167$ 13,452,935$ 5,030,605$ 2,977,500$ 428,602$ 470,567$ 34,466,876$ 5.69%1,535.20$
2005 8,306,250 2,809,212 12,375,858 5,016,627 2,768,750 361,529 621,191 32,259,417 5.15%1,436.88
2006 7,657,500 2,431,075 14,280,939 4,867,208 2,552,500 292,771 486,778 32,568,771 5.20%1,450.66
2007 16,182,500 2,039,279 13,015,702 4,682,533 2,327,500 222,283 370,161 38,839,958 6.20%1,729.99
2008 15,481,250 1,633,332 12,015,866 4,482,974 2,093,750 150,021 250,081 36,107,274 5.76%1,608.27
2009 19,283,750 1,212,720 4,648,818 4,260,718 1,856,250 75,943 51,148 31,389,347 5.01%1,398.13
2010 23,124,800 776,917 4,394,673 4,014,958 5,855,200 - - 38,166,548 6.09%1,640.16
2011 21,072,950 325,372 1,507,919 3,753,704 5,347,050 - - 32,006,995 5.10%1,375.46
2012 18,958,300 - 1,297,954 3,457,411 4,766,700 - - 28,480,365 4.54%1,223.91
2013 16,549,300 - 2,139,121 3,134,950 4,175,700 - - 25,999,071 4.14%1,117.28
Note: Details of the Village's outstanding debt can be found in the notes to financial statements.
* See the schedule of Demographic and Economic Information on page 118 for personal income and population data.
VILLAGE OF MORTON GROVE, ILLINOIS
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
- 114 -
Percentage of
Less: Amounts Estimated
General Business Type Available Actual Taxable
Fiscal Obligation General Obligation In Debt Value of Per
Year Bonds Bonds Service Fund Total Property*Capita
2004 8,932,500$ 2,977,500$ 997,666$ 10,912,334$ 1.67%486.05$
2005 8,306,250 2,768,750 574,321 10,500,679 1.40%467.72
2006 7,657,500 2,552,500 597,680 9,612,320 1.20%428.15
2007 16,182,500 2,327,500 417,525 18,092,475 2.24%805.86
2008 15,481,250 2,093,750 468,461 17,106,539 1.77%761.95
2009 19,283,750 1,856,250 492,269 20,647,731 1.96%919.68
2010 23,124,800 5,855,200 232,978 28,747,022 2.79%1,235.37
2011 21,072,950 5,347,050 - 26,420,000 2.77%1,135.37
2012 18,958,300 4,766,700 - 23,725,000 2.70%1,019.55
2013 16,549,300 4,175,700 - 20,725,000 2.56%890.63
User fees/charges are the main source in repayment of the General Obligation Bonds - Business-type
* See the schedule of Assessed and Actual Value of Taxable Property on page 110 for property value data.
VILLAGE OF MORTON GROVE, ILLINOIS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Notes: Details of the Village's outstanding debt can be found in the notes to financial statements.
- 115 -
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
December 31, 2013
(1) (2)
Percentage
of Debt
Gross Applicable to Government's
Governmental Unit Bonded Debt Government Share of Debt
Village of Morton Grove 21,823,371$ 100%21,823,371$
TOTAL DIRECT DEBT 21,823,371 21,823,371
SCHOOLS
School District #63 13,770,000 16.05%2,210,699
School District #67 11,000,470 75.45%8,300,188
School District #68 6,250,000 0.55%34,584
School District #69 20,605,000 18.21%3,751,698
School District #70 4,350,000 98.79%4,297,153
Community College District #535 25,540,000 3.76%959,083
High School District #207 15,185,000 2.37%359,679
High School District #219 156,868,952 15.86%24,884,361
Total schools 253,569,422 44,797,445
OTHERS
Cook County 3,719,535,000 0.60%22,155,000
Cook County Forest Preserve 131,500,000 0.60%783,265
Metropolitan Metro Water Reclamation
District of Greater Chicago 2,296,170,090 0.60%13,676,884
Glenview Park District 10,935,000 0.13%14,322
Morton Grove Park District - 0.00%-
Skokie Park District 7,960,000 0.54%42,954
Total others 6,166,100,090 36,672,425
TOTAL OVERLAPPING DEBT 6,419,669,512 81,469,870
GRAND TOTAL DIRECT AND OVERLAPPING DEBT 6,441,492,883$ 103,293,241$
Overlapping debt percentages based on 2012 EAV, the most recent available.
(2)
(1)
Date Source
Cook County Clerk
Percentages are calculated by comparing the equalized assessed value (EAV) of the overlapping entity that falls
within the boundaries of the Village to its total EAV.
- 116 -
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF LEGAL DEBT MARGIN
December 31, 2013
Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except
as set by the General Assembly.
- 117 -
Per
Capita
Fiscal Personal Personal Unemployment
Year Population Income Income Rate
2004 22,451 605,570,823$ 26,973$ 3.5%
2005 22,451 626,360,449 27,899 3.8%
2006 22,451 626,360,449 27,899 3.8%
2007 22,451 626,360,449 27,899 3.9%
2008 22,451 626,360,449 27,899 6.5%
2009 22,451 626,360,449 27,899 8.1%
2010 23,270 626,358,590 26,917 8.9%
2011 23,270 627,661,710 26,973 8.9%
2012 23,270 627,661,710 26,973 8.9%
2013 23,270 627,661,710 26,973 8.7%
Data Source
U.S. Bureau of Census
Department of Labor
Village records
VILLAGE OF MORTON GROVE, ILLINOIS
DEMOGRAPHIC AND ECONOMIC INFORMATION
Last Ten Fiscal Years
- 118 -
% of % of
Total Village Total Village
Employer Rank Employees Population Employer Rank Population
John Crane Inc 1 1,350 5.8%John Crane Inc 1 5.6%
Avon Products Inc 2 1,100 4.7%Avon Products Inc 2 4.4%
ITT Bell & Gossett 3 750 3.2%ITT Bell & Gossett 3 3.4%
Schwartz Paper Co 4 445 1.9%Schwartz Paper Co 4 1.9%
Sunstone 5 412 1.8%Revell Monogram Models 5 1.0%
Morton Grove Pharmaceuticals Inc6 250 1.1%Tommy Armour Golf 6 1.0%
Shore Koenig Training Center 7 210 0.9%Shore Koenig Training Center 7 0.9%
Malko Electric 8 180 0.8%Paul J Krez Group 8 0.8%
Paul J Krez Group 9 180 0.8%Morton Grove Pharmaceuticals Inc9 0.8%
Quantum Group 10 135 0.6%Lawnware Products 10 0.8%
Village Population = 23,270 Village Population = 22,451
Note: 2010 is most recent information available.
Data Source
Village business licences
2010 2001
VILLAGE OF MORTON GROVE, ILLINOIS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
- 119 -
Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GENERAL GOVERNMENT
Administrative 4.5 4.5 5.0 4.5 4.5 3.5 3.0 3.0 4.0 4.0
Community development 1.5 1.5 1.5 1.5 1.5 1.5 1.0 1.0 1.0 1.0
Legal - 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Management information 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance 7.0 7.0 7.5 6.5 6.0 5.5 5.5 5.5 5.0 6.0
Health and human services - - - - - - - -
Family services 11.0 12.0 12.0 12.0 9.5 11.5 4.5 4.5 4.5 3.5
Building/code enforcement 8.0 10.0 9.0 8.5 8.0 7.0 4.0 4.0 2.5 4.0
PUBLIC SAFETY
Police
Officers 46.0 46.0 46.0 46.0 46.0 45.0 45.0 46.0 45.0 45.0
Civilians 26.5 25.5 23.5 23.5 23.0 22.0 20.0 18.5 18.5 21.0
Fire
Firefighters and officers 43.0 43.0 44.0 44.0 42.0 40.0 41.0 41.0 40.0 42.0
Civilians 3.5 3.5 3.0 3.0 3.0 30.0 2.5 2.5 1.5 3.5
PUBLIC WORKS
Street maintenance 16.5 16.5 16.5 16.5 16.5 17.5 17.5 17.5 17.5 17.5
Engineering 2.7 3.2 3.2 3.2 3.2 3.0 3.0 3.0 3.0 3.0
Vehicle maintenance 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Water/sewer 13.8 13.3 13.3 13.3 13.3 12.0 12.0 12.0 12.0 12.0
TOTAL 189.0 191.5 190.0 188.0 182.0 177.0 164.5 164.0 160.0 168.0
Data Source
Village budget office
VILLAGE OF MORTON GROVE, ILLINOIS
FULL-TIME EQUIVALENT EMPLOYEES
Last Ten Fiscal Years
- 120 -
Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
PUBLIC SAFETY
Police
Physical arrests 580 596 710 635 550 651 647 574 580 513
Parking violations 4,328 4,164 3,866 5,210 5,171 6,075 8,331 8,933 6,751 6,465
Traffic violations 7,428 6,215 7,681 4,598 4,367 5,092 4,587 4,440 3,686 3,849
Fire
Emergency responses 3,072 3,255 3,246 3,384 3,594 3,249 3,265 3,419 3,360 3,470
Fires extinguished 58 45 36 38 22 70 59 60 48 63
PUBLIC WORKS
Street resurfacing (miles)0.49 0.66 1.41 1.81 0.63 1.33 3.03 4.90 6.65 5.70
Pothole repairs (in tons)80.85 93.74 71.50 121.50 120.00 180.00 189.00 170.75 12.50 132.00
WATER
New connections - 5 27 70 23 1 27 8 9 7
Water main breaks 77 117 55 85 67 91 81 64 70 122
Average daily consumption 3,306,000 3,416,000 3,050,000 3,180,000 3,500,000 2,999,484 2,969,923 2,670,613 2,745,553 2,601,227
Peak daily consumption 4,428,000 6,736,000 4,964,000 4,955,000 6,200,000 4,374,000 4,167,000 4,498,000 4,412,000 4,238,000
WASTEWATER
Average daily treatment N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Data Source
Various Village departments
VILLAGE OF MORTON GROVE, ILLINOIS
OPERATING INDICATORS
Last Ten Fiscal Years
- 121 -
Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
PUBLIC SAFETY
Police
Stations 1 1 1 1 1 1 1 1 1 1
Area patrols 3 3 3 3 3 3 3 3 3 3
Patrol units 15 15 15 15 15 15 15 15 15 15
Fire
Fire stations 2 2 2 2 2 2 2 2 2 2
Fire engines 2 2 2 2 2 2 2 2 2 2
PUBLIC WORKS
Arterial streets (miles)19 19 19 19 19 19 19 19 19 19
Residential streets (miles)86 86 86 86 86 86 86 86 86 86
Streetlights 357 372 372 372 357 357 357 357 357 357
Traffic signals 13 13 13 13 13 13 13 13 13 13
WATER
Water mains (miles)97.4 98.9 98.9 98.9 98.9 98.9 98.9 98.9 98.9 98.9
Fire hydrants 1,083 1,093 1,093 1,093 1,093 1,093 1,093 1,093 1,093 1,093
Storage capacity (gallons)8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000
WASTEWATER
Sanitary sewers (miles)47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9
Storm sewers (miles)70.6 70.6 70.6 70.6 70.6 70.6 70.6 70.6 70.6 70.6
Combined sewers (miles)23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6
Treatment capacity (gallons)N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Data Source
Various Village departments
VILLAGE OF MORTON GROVE, ILLINOIS
CAPITAL ASSET STATISTICS
Last Ten Fiscal Years
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COMPLIANCE SECTION