HomeMy WebLinkAboutCAFR2008VILLAGE OF MORTON GROVE, ILLINOIS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Year Ended
December 31, 2008
Prepared by Finance Department
Ryan Horne
Finance Director/Treasurer
Remy Navarrete
Assistant Finance Director
VILLAGE OF MORTON GROVE, ILLINOIS
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Principal Officials and Officers ..................................................................................i
Organization Chart....................................................................................................ii
Certificat e of Achievement for Excellence in Financial Reporting ..............................iii
Letter of Transmittal .................................................................................................iv-vii
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT.................................................................1-2
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
Management’s Discussion and Analysis ................................................................MD&A 1-10
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets ..............................................................................3
Statement of Activities ................................................................................4-5
Fund Financial Statements
Governmental Funds
Balance Sheet .........................................................................................6
Reconciliation of Fund Balances of Governmental Funds to
the Governmental Activities in the Statement of Net Assets ..................7
Statement of Revenues, Expendit ures and Changes in Fund Balances......8
Reconciliation of Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Governmental
Activities in the Statement of Activities ................................................9
Proprietary Fund
Statement of Net Assets .........................................................................10
Statement of Revenues, Expenses and Changes in Fund Net Assets ........11
Statement of Cash Flows ........................................................................12-13
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
Statement of Fiduciary Net Assets ..........................................................14
Statement of Changes in Fiduciary Net Assets ........................................15
Notes to Financial Statements ..........................................................................16-70
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual -
General Fund ..............................................................................................71
Lehigh/Ferris Tax Increment Financing Fund ...............................................72
Waukegan Road Tax Increment Financing Fund ..........................................73
Schedule of Funding Progress
Illino is Municipal Retirement Fund ..............................................................74
Sherriff’s Law Enfo rcement Personnel Plan .................................................75
Municipal Employees’ Retirement Fund ......................................................76
Police Pension Fund ....................................................................................77
Firefighters’Pension Fund...........................................................................78
Other Postemplo yment Benefit Plans ...........................................................79
Schedule of Employer Contributions
Illino is Municipal Retirement Fund ..............................................................80
Sherriff’s Law Enfo rcement Personnel Plan .................................................81
Municipal Employees’ Retirement Fund ......................................................82
Police Pension Fund ....................................................................................83
Firefighters’Pension Fund...........................................................................84
Other Postemployment Benefit Plans ...........................................................85
Notes to Required Supplementary Information.................................................86-87
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.........................88-91
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Debt Service Fund ......................................................................................92
NONMAJOR GOVERNMENTAL FUNDS
Combining Balance Sheet ................................................................................93
Combining St atement of Revenues, Expenditures
and Changes in Fund Balances .......................................................................94
Schedule of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual
Motor Fuel Tax Fund ..................................................................................95
Commu ter Parking Facilit y Fund .................................................................96
9-1-1 Emergency Telephone System Fund...................................................97
Economic Development Fund .....................................................................98
Capital Projects Fund ..................................................................................99
FIDUCIARY FUNDS
Pension Trust Funds
Combining St atement of Plan Net Assets.....................................................100
Combining St atement of Changes in Plan Net Assets ...................................101
COMPONENT UNIT -PUBLIC LIBRARY
Statement of Net Assets and Balance Sheet .....................................................102
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual.................................................................103
VILLAGE OF MORTON GROVE, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Assets by Component -Last Five Fiscal Years ...............................................104
Change in Net Assets -Last Five Fiscal Years ......................................................105-106
Fund Balances of Governmental Funds -Last Ten Fiscal Years ............................107
Change in Fund Balances of Governmental Funds -
Last Ten Fiscal Years .........................................................................................108-109
Revenue Capacity
Assessed and Actual Value of Taxable Property -
Last Ten Levy Years ..........................................................................................110
Property Tax Rates -Direct and Overlapping Governments -
Last Ten Levy Years ..........................................................................................111
Principal Property Taxpayers -Current Year and Nine Years Ago ........................112
Property Tax Levies and Collections -Last Ten Levy Years .................................113
Debt Capacity
Ratios of Outstanding Debt by Type -Last Ten Fiscal Years ................................114
Ratios of General Bonded Debt Outstanding -
Last Ten Fiscal Years .........................................................................................115
Schedule of Direct and Overlapping Bonded Debt ................................................116
Schedule of Legal Debt Margin ............................................................................117
Demographic and Economic Information
Demographic and Economic Information -
Last Ten Fiscal Years .........................................................................................118
Principal Employers -Current Year and Nine Years Ago ......................................119
Operating Information
Full-Time Equivalent Employees -Last Ten Fiscal Years......................................120
Operating Indicators -Last Ten Fiscal Years ........................................................121
Capital Asset Statistics -Last Ten Fiscal Years.....................................................122
INTRODUCTORY SECTION
i
VILLAGE OF MORTON GROVE, ILLINOIS
PRINCIPAL OFFICIALS AND OFFICERS
December 31, 2008
ELECTED TITLE/POSITION TERM/APPOINTMENT ENDS
Richard Krier Mayor April 2009
Georgianne Brunner Trustee April 2009
Sheldon Marcus Trustee April 2011
Roy Ko gstad Trustee April 2009
Rita Minx Trustee April 2009
John Thill Trustee April 2011
Dan Staackmann Trustee April 2011
Carol A. Fr it zshall Village Clerk April 2009
APPOINTED
Joseph Wade Village Administrator December 31, 2009
William Neuendorf Economic Development Director December 31, 2009
Teresa Hoffman Liston Corporation Counsel December 31, 2009
Thomas Friel Fire Chief December 31, 2009
Edward Hildebrandt Building Co mmissio ner December 31, 2009
Paul L. Tasch, Jr.Police Chief December 31, 2009
John Hill EMA Director December 31, 2009
Jackie Walker-O’Keefe Family and Senior Services Director December 31, 2009
Andrew DeMonte Public Works Director December 31, 2009
Elizabeth M. Rochford Ad judicat io n Hearing Officer December 31, 2009
Frank Tennant Village Prosecutor December 31, 2009
Nate Brenner Village Prosecutor December 31, 2009
Board of Trustees and
Citizens of the Village of Morton Grove
v
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 a six
member Board of Trustees are elected at large for four-year terms. The President, with
concurrence from the Board, appoints the Village Administrator and all Department Directors.
The Village Administrator is the Chief Administrative Officer who oversees the day to day
operations of the Village. The Village has eight departments: police, fire, public works,
community and economic development, health and human services, code enforcement, finance,
and administration.
The Comprehensive Annual Financial Report (CAFR) contains all funds of the Village’s
operations, including its pension trust funds (the Morton Grove Police Pension Fund, Morton
Grove Firefighters’ Pension Fund and the General Pension Fund) and component unit (the Morton
Grove Public Library). The accompanying financial statements include only those funds of the
Village, as there are no other organizations 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. The sole purpose of these funds is to provide retirement benefits to the Village’s sworn
police officers, firefighters and other participating employees. The Public Library is included as a
discretely presented component unit since a separately elected board of trustees governs it.
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 to 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 increased 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 had stabilized several years ago, it remains a vibrant economic
community and is a desirable place to live. The low unemployment rate is similar to that of
surrounding cities, and although real estate prices have outpaced inflation in recent years,
residential property in the area remains reasonable compared to those located in many north shore
communities. Residents in Morton Grove enjoy a pleasant suburban environment with an easy
commute into the City of Chicago for work or entertainment.
Board of Trustees and
Citizens of the Village of Morton Grove
vi
Median family income figures from the 2000 Census demonstrate that the average income of
Morton Grove residents is above the county and state averages. According to the Census Bureau,
the Village’s 2000 median family income was $72,778, compared to $53,784 for Cook County,
$55,545 for the State of Illinois, and $50,046 for the United States.
A number of infrastructure improvements have been completed throughout the Village in recent
years. These improvements are most prominent in the Village’s two tax increment financing
districts. The Lehigh/Ferris tax increment district has been designated for transit-oriented
development which has fostered new condominium and townhome 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 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
Grant funds have been awarded to the Village to assist in the Dempster Street revitalization project.
Additional parking will be constructed and the general appearance of this main arterial street will
be improved.
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 townhomes. In November, 2007, the Village
issued $9.2Million General Obligation Bonds to finance infrastructure improvements for the
district.
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, 2007. This was the twentieth consecutive year
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
MD&A 1
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2008
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, 2008. 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-vii of this report.
Financial Highlights
• Total assets of the Village exceeded total liabilities by $38,000,577.
• The Village’s total net assets decreased by $85,285.
• As of the close of the current fiscal year, the Village’s governmental funds reported combined
ending fund balances of $23,643,596.
• For the year ended December 31, 2008, the Village’s General Fund reported deficiency of
revenues over expenditures by $1,299,268, and deficiency of other financing sources (uses)
of $49,324, resulting in a net decrease in fund balance of $1,348,592.
• The Village’s Water and Sewer Fund reported net assets increased by $254,305. Operating
Income before depreciation and amortization expense was $448,674.
• The Village’s bonds, installment notes, and revolving loan payable decreased by $2,054,916
during the year through the normal course of principal payments throughout the year.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village of Morton Grove’s
basic financial statements. The Village’s basic financial statement comprises three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary and statistical information in addition to the
basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements 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 assets presents information on all of the Village’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the Village’s financial position is improving or deteriorating.
The statement of activities presents information showing how the Village’s net assets changed during
the most recent calendar year. All changes in net assets are reported as soon as the underlying event
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 2
giving rise to the change occurs, regardless of the timing 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).
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, 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 only.
The government-wide financial statements include only the financial activities of the Village. The
only component unit of the Village is the public library which is reported in the Village’s financial
statements in a separate column.
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 state and 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.
o Governmental Funds
Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of liquid resources, as well as on balances of liquid 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 that 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 fund statement of revenues, expenditures and changes in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and
government activities.
The Village maintains nine individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund 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, all of which are
considered to be Major Funds. Data from the other governmental funds are combined into a
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 3
single, aggregated presentation. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements beginning on page 93 of
this report.
The Village adopts an Annual Appropriated Budget for all funds. A budgetary comparison
statement has been provided where appropriate to demonstrate compliance with these
budgets.
o 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.
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.
o Fiduciary Funds
Fiduciary Funds are used to account for resources held for the benefit of parties outside the
government, such as the Municipal Employees’ Retirement Fund, Police Pension Fund and
Fire Pension Fund. Fiduciary Funds, and their resources, are not reflected in the Government-
Wide Financial Statements. The resources of the Fiduciary Funds are not available to support
the Village’s own programs. The accounting 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 16 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 progress in funding its
obligation to provide pension benefits to its employees. Required supplementary information can
be found beginning with page 71 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 can be found on pages beginning with page 88 of this
report.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 4
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial
position. In the case of Morton Grove, assets exceeded liabilities by $38,000,577 at December 31,
2008.
Village of Morton Grove Net Assets (in thousands)
Primary Government 12/31/2006 12/31/2007 12/31/2008
Governmental Activities $ 34,758 $ 35,975 $ 35,409
Business-Type Activities 1,950 2,337 2,591
Total Village Net Assets $ 36,708 $ 38,312 $ 38,000
Following is a table that summarizes the Statement of Net Assets of the Village at the close of the
fiscal year by governmental activities, business-type activities and village-wide. A comparison to the
preceding fiscal year is presented for all three categories.
Village of Morton Grove's Statement of Net Assets (in thousands)
Governmental Business-Type
Activities Activities Total
Category 12/31/08 12/31/07 12/31/08 12/31/07 12/31/08 12/31/07
Current and other assets $36,234 $36,916 $ 2,025 $ 1,933 $38,259 $38,849
Capital assets 57,559 57,919 3,206 3,478 60,765 61,397
Total assets 93,793 94,835 5,231 5,411 99,024 100,246
Current and other liabilities 12,804 12,340 296 376 13,100 12,716
Long-term liabilities 45,580 46,520 2,344 2,698 47,924 49,218
Total liabilities 58,384 58,860 2,639 3,074 61,024 61,934
Net assets:
Invested in capital assets,
net of related debt 46,370 50,520 1,195 780 47,565 51,300
Restricted 1,490 1,321 - - 1,490 1,321
Unrestricted
(12,451)
(15,865) 1,396 1,557
(11,055)
(14,308)
Total net assets $35,409 $35,975 $ 2,591 $ 2,337 $38,000 $38,312
As detailed above, the largest portion of the Village’s net assets reflects an investment in capital
assets (i.e. land, buildings, machinery and equipment, and infrastructure), less any related debt used to
acquire such assets still outstanding. As of December 31, 2008, capital assets net of related debt
totaled $47,564,959 of 125.17% of total net assets. Although the Village’s investment in capital assets
is reported net of related debt, it should be noted that the debt must be paid from sources other than
the related capital asset as they will not be liquidated to meet these obligations.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 5
Following is a table that summarizes the change in net assets of the Village at the close of the fiscal
year, with a comparison to the preceding fiscal year.
Village of Morton Grove's Statement of Net Assets (in thousands)
Governmental Business-Type
Activities Activities Total
Category 12/31/08 12/31/07 12/31/08 12/31/07 12/31/08 12/31/07
Revenues
Program revenues
Charges for services $ 2,675 $ 2,847 $ 4,596 $ 4,239 $ 7,271 $ 7,086
Operating Grants 700 827 - - 700 827
Capital Grants 56 339 - - 56 339
General revenues
Taxes 25,609 25,176 - - 25,609 25,176
Investment income 394 630 12 4 406 634
Gain on sale of capital
assets 351 - - - 351 -
Miscellaneous 223 139 196 192 419 331
Total revenues 30,008 29,958 4,804 4,435 34,812 34,393
Expenses
General government 4,587 4,391 - - 4,587 4,391
Public safety 15,325 14,558 - - 15,325 14,558
Streets and sidewalks 4,197 3,187 - - 4,197 3,187
Sanitation 633 627 - - 633 627
Vehicle maintenance 933 873 - - 933 873
Health and human services 679 670 - - 679 670
Community development 2,047 2,433 - - 2,047 2,433
Building and inspectional
services 693 719 - - 693 719
Interest 1,254 1,180 - - 1,254 1,180
Water and sewer - - 4,550 4,048 4,550 4,048
Total expenses 30,348 28,639 4,550 4,048 34,898 32,687
Change in net assets (340) 1,319 254 387 (86) 1,706
Net assets – January 1 as
previously reported 35,975 34,757 2,337 1,950 38,312 36,707
Prior period adjustment (226) (101) - - (226) (101)
Net assets - January 1, restated 35,749 34,656 2,337 1,950 38,086 36,606
Net assets - December 31 $35,409 $35,975 $ 2,591 $ 2,337 $38,000 $38,312
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 6
Financial Analysis of the Government’s Funds
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 available resources. Such information is useful in assessing the Village’s
financing requirement. In particular, unreserved fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
As of December 31, 2008, the Village’s governmental funds reported combined ending fund balances
of $23,643,596, representing a decrease of $955,813 from the preceding year. Approximately 62%
($14,719,835) constitutes unreserved, undesignated fund balance. This amount is available for
spending at the Village’s discretion. The remainder of fund balance is not available for spending as it
has already been committed: 1) to liquidate contracts and purchase orders from the previous year, 2)
pay debt service, or 3) for a variety of other restricted purposes.
General Fund: The General Fund is the primary operating fund of the Village. At the end of the
fiscal year, the total fund balance in the General Fund was $10,161,854 of which the unreserved fund
balance was $8,477,050 or approximately 83%. As a measure of the General Fund’s liquidity, it may
be useful to compare both unreserved fund balance and total fund balance to total fund expenditures.
Unreserved fund balance represents 35% of total expenditures, while total fund balance represents
42%.
The total fund balance in the General Fund decreased by $1,348,592. Some revenues that came in
better than budget were state income tax, telecommunication tax, natural gas and charges for
services. Departments in which expenditures materially exceeded budget included Police, Fire, Street
and Maintenance Services. The following table summarizes General Fund revenues and
expenditures, with a comparison to budget, for the fiscal year ended December 31, 2008.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 7
General Fund
Fiscal Year Ended December 31, 2008 (in thousands)
Final Budget Actual
Variance in
Dollars
Variance in
Percent
Revenues
Taxes $ 19,864 $ 19,669 $ (195) -1.0%
Licenses & permits 1,147 1,115 (32) -2.8%
Intergovernmental 95 110 15 16.3%
Charges for services 541 841 300 55.5%
Other revenue 708 877 169 24.0%
Total 22,355 22,612 257 1.1%
Expenses
General government 3,864 3,830 (34) -0.9%
Public safety 14,477 14,640 163 1.1%
Streets and sidewalks 2,045 2,394 349 17.1%
Sanitation 653 633 (20) -3.1%
Vehicle maintenance 785 933 148 18.8%
Health and human
services 683 679 (4) -0.6%
Community development 121 114 (7) -5.8%
Buildings and inspection
services 695 688 (7) -1.0%
Other uses
Total 23,323 23,911 588 2.5%
Excess (Deficiency) of
revenues over (under)
expenditures (968) (1,299) (331) -34.2%
Other financing sources
(uses) (27) (50) (23) -81.6%
Net Change in Fund Balance $ (995) $ (1,349) $ (354) -35.5%
Tax Revenue: The Tax Revenue for the General Fund shows a negative variance of 1.0%; Real Estate
Transfer Tax revenues met 45% of the expected budget, sales and home rule sales tax met 91% of the
expected budget due to the strained economic environment and its expected to continue in 2009 as well.
The State Income Tax exceeded projection by 15%.
License and Permit Revenue: Revenue from licenses and permits totaled $1,115,215, falling short of
projections by 2.8%. This is largely due to decrease in building permit fees and mirrors current economic
trends as some planned development in the Village was scaled back by the developers.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 8
Intergovernmental Revenue: Intergovernmental revenue for fiscal year ended December 31, 2008, shows
a positive variance of 16.3% and is due to a reimbursement from the Federal Emergency Management
Agency (FEMA) for expenses incurred during the September 13, 2008 storm.
Charges for Services: Charges for services totaled $841,040, resulting in a positive budget variance of
$300,340. The revenue sources contributing most to this variance are ambulance user fees and Civic
Center Rentals.
Other Revenue: Other revenue is comprised of Fines, Cable Franchise Fees, Investment Income, and
Miscellaneous Revenue. Cable Franchise fees exceeded budget by $34,026; investment income exceeded
budget by $28,816. The Village’s Moving Violation, False Alarm and Adjudication revenue exceeded
budget by 30% with a more consistent fine assessment process.
Expenditures and Other Financing Uses: Expenditures totaled $23,910,757 which was 2.5% over
budget.
Police, Fire, Streets and Sidewalks and Vehicle Maintenance were over budget. The largest budget
variances occurred in personal services for Police, and Fire. The Vehicle Maintenance department within
Public Works shows increases in commodity purchases-largely due to increase fuel costs and vehicle
repair costs.
To see more actual to budget expenditure comparisons, please refer to page 88 of this CAFR.
Lehigh Ferris TIF Fund: Reported revenues exceeding expenditures by $110,762 due primarily to an
increase in incremental property tax and investment income.
Waukegan Road TIF Fund: The Waukegan Road TIF Fund is meeting its entire obligation.
Proprietary Funds
The Village reports the Water Fund as its only proprietary fund. This Fund accounts for all of the
operations of the municipal water system. Water is purchased from the City of Chicago at a rate of $1.53
per thousand gallons. Water is then sold to all residential municipal customers at a rate of $5.49 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 and infrastructure maintenance.
During 2008, the Fund’s net asset balance increased by approximately $254,305 by carefully monitoring
expenses throughout the year. The increased fund balance will allow for future projects such as replacing
old, existing water meters, water tower improvements as well as provide funding on necessary repairs and
maintenance for the water and sewer infrastructure. The increase is primarily attributed to the acquisition
of capital assets in the amount of approximately $273,000.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 9
Capital Assets
The Village’s investment in net capital assets for its governmental and business type activities as of
December 31, 2008 amounts to $61,097,427. The 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 5 of
this CAFR.
Debt Administration
Long-Term Debt
At the end of the year, Morton Grove had total bonded debt outstanding of $29,840,948, which is
backed by the full-faith and credit of the Village. The Village has both fixed rate and variable rate
debt outstanding as well as some fixed rate revolving loans. Payment of general obligation debt is
funded primarily from sales and property tax revenues received during the course of the year. Village
debt is currently rated “Aa3” by Moody’s Investor Services, Inc. (See note 7 of this report.) Of the
total bonded debt as noted on the table below in the amount of $29,840,948, 34.2% is attributable to
both of the Village’s tax increment financing districts (TIF). The Waukegan Road and the
Lehigh/Ferris TIFs collectively have debt in the amount of $10,193,477 for fiscal year ended
December 31, 2008. See additional detailed information on long-term debt activity in Note 8 to the
financial statements.
Total Bonded Debt
(in thousands)
Governmental Business-Type
Activities Activities Total
Type of Debt 12/31/08 12/31/07 12/31/08 12/31/07 12/31/08 12/31/07
Bonds
Variable Rate
Bonds $ 6,281 $ 6,983 $ 2,094 $ 2,328 $ 8,375 $ 9,310
Fixed Rate Bonds 9,200 9,200 9,200 9,200
Total Bonds 15,481 16,183 2,094 2,328 17,575 18,510
Installment Notes
Variable
Installment Notes 618 870 100 148 718 1,017
Fixed Installment
Notes 9,765 10,107 9,765 10,107
Total Installment Notes 10,383 10,976 100 148 10,483 11,124
Fixed Rate Revolving
Loans 1,633 2,039 150 222 1,783 2,262
Total Long Term Debt $ 27,497 $ 29,198 $ 2,344 $ 2,698 $ 29,841 $ 31,896
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 10
Economic Factors and Future Prospects
The Village’s elected and appointed officials considered many factors when setting the Calendar year
2009 budget, tax rates, and fees that will charged for its governmental and business-type activities. One of
those factors is the economy. Unemployment rate for the Village were 6.5 percent for 2008. Rising
unemployment slumping interest rates, and downturn in the stock market have created a tough economic
environment which has not left the Village unscathed. All of these indicators were taken into account
when adopting the 2009 budget. At the time of preparing the 2009 budget, it was projected that decreases
in revenues would be experienced. Expenditures in all areas were also trimmed to the fullest extent
possible without impacting core services provided. Plans for beyond 2009 are also being laid to ensure the
Village’s long-term economic sustainability.
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.
Component
Unit
Governmental Business-Type Morton Grove
Activities Activities Total Public Library
ASSETS
Cash and cash equivalents 8,743,954$ 1,053,903$ 9,797,857$ 2,029,129$
Investments 7,455,525 - 7,455,525 -
Receivables (net, where applicable,
of allowances for uncollectibles)
Property taxes 9,805,023 - 9,805,023 2,747,775
Sales tax 1,547,235 - 1,547,235 -
State income tax 98,138 - 98,138 -
Accounts and allotments 923,089 638,454 1,561,543 -
Due from other governments - - - 27,400
Due from other funds 428 (428) - -
Due from fiduciary funds 1,271,985 - 1,271,985 -
IRMA excess surplus reserve 520,419 - 520,419 -
Prepaid expenses 25,874 - 25,874 40,644
Deferred bond costs 94,907 - 94,907 -
Land held for resale 5,748,415 - 5,748,415 -
Capital assets not being depreciated 42,912,581 166,598 43,079,179 79,000
Capital assets (net of
accumulated depreciation)14,646,048 3,372,200 18,018,248 617,948
Total assets 93,793,621 5,230,727 99,024,348 5,541,896
LIABILITIES
Accounts payable 2,079,930 260,118 2,340,048 15,446
Accrued salaries and wages 376,232 - 376,232 47,394
Claims payable 33,009 - 33,009 -
Other payables 24,961 - 24,961 -
Accrued interest payable 307,651 10,861 318,512 -
Unearned property tax revenue 9,601,006 - 9,601,006 2,714,843
Deposits refundable 224,620 24,575 249,195 -
Due to fiduciary funds 156,731 - 156,731 -
Noncurrent liabilities
Due within one year 2,847,611 367,161 3,214,772 4,200
Due in more than one year 42,732,635 1,976,670 44,709,305 23,798
Total liabilities 58,384,386 2,639,385 61,023,771 2,805,681
NET ASSETS
Invested in capital assets,
ne t of related debt 46,369,992 1,194,967 47,564,959 696,948
Restricted for
Debt service 468,461 - 468,461 -
Capital projects 550,497 - 550,497 -
Public safety 180,400 - 180,400 -
Highways and streets 35,727 - 35,727 -
Community development 255,457 - 255,457 -
Culture and recreation - - - 2,039,267
Unrestricted (12,451,299) 1,396,375 (11,054,924) -
TOTAL NET ASSETS 35,409,235$ 2,591,342$ 38,000,577$ 2,736,215$
Primary Government
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF NET ASSETS
December 31, 2008
See accompanying notes to financial statements.
- 3 -
Operating Capital
Charges Grants and Grants and
FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions
PRIMARY GOVERNMENT
Governmental Activities
General government 4,587,340$ 2,151,555$ -$ -$
Public safety 15,324,442 439,602 5,615 -
Streets and sidewalks 4,196,379 9,875 694,247 -
Sanitation 632,928 69,140 - -
Vehicle maintenance 932,625 - - -
Health and human services 679,218 4,462 - -
Community development 2,047,185 - - 55,729
Building and inspectional services 693,218 - - -
Interest 1,254,168 - - -
Total governmental activities 30,347,503 2,674,634 699,862 55,729
Business-Type Activities
Water and sewer 4,550,240 4,596,060 - -
Total business-type activities 4,550,240 4,596,060 - -
TOTAL PRIMARY GOVERNMENT 34,897,743$ 7,270,694$ 699,862$ 55,729$
COMPONENT UNIT
Morton Grove Public Library
Culture and recreation 2,584,050$ 41,824$ 38,450$ -$
TOTAL COMPONENT UNIT 2,584,050$ 41,824$ 38,450$ -$
Program Revenues
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2008
- 4 -
Component
Unit
Morton Grove
Governmental Business-Type Public
Activities Activities Total Library
(2,435,785)$ -$ (2,435,785)$ -$
(14,879,225) - (14,879,225) -
(3,492,257) - (3,492,257) -
(563,788) - (563,788) -
(932,625) - (932,625) -
(674,756) - (674,756) -
(1,991,456) - (1,991,456) -
(693,218) - (693,218) -
(1,254,168) - (1,254,168) -
(26,917,278) - (26,917,278) -
- 45,820 45,820 -
- 45,820 45,820 -
(26,917,278) 45,820 (26,871,458) -
- - - (2,503,776)
- - - (2,503,776)
General Revenues
Taxes
Property 12,737,951 - 12,737,951 2,530,539
Personal property replacement 434,614 - 434,614 30,979
Sales 6,370,839 - 6,370,839 -
Utility 1,206,890 - 1,206,890 -
Local use 331,713 - 331,713 -
Telecommunications 1,404,782 - 1,404,782 -
Income 2,125,301 - 2,125,301 -
Real estate transfer 293,919 - 293,919 -
Hotel/motel 63,362 - 63,362 -
Food and beverage 320,904 - 320,904 -
Gasoline 269,106 - 269,106 -
Other 29,366 - 29,366 -
Foreign fire insurance 20,482 - 20,482 -
Investment income 394,088 12,188 406,276 31,894
Gain on sale of capital assets 351,023 9,690 360,713 -
Miscellaneous 223,348 186,607 409,955 3,359
Total 26,577,688 208,485 26,786,173 2,596,771
CHANGE IN NET ASSETS (339,590) 254,305 (85,285) 92,995
NET ASSETS, JANUARY 1 35,975,302 2,337,037 38,312,339 2,643,220
Prior period adjustment (226,477) - (226,477) -
NET ASSETS, JANUARY 1, AS RESTATED 35,748,825 2,337,037 38,085,862 2,643,220
NET ASSETS, DECEMBER 31 35,409,235$ 2,591,342$ 38,000,577$ 2,736,215$
Primary Government
Net (Expense) Revenue and Change in Net Assets
See accompanying notes to financial statements.
- 5 -
Debt Waukegan Nonmajor Total
General Service Lehigh/Ferris Road Governmental Governmental
Fund Fund TIF Fund TIF Fund Funds Funds
Cash and cash equivalents 3,498,713$ 1,179,815$ 1,983,331$ 477,891$ 1,604,204$ 8,743,954$
Investments - 161,663 7,203,129 - 90,733 7,455,525
Receivables
Property taxes 8,309,670 1,102,889 68,285 11,865 312,314 9,805,023
Sales tax 1,324,730 110,000 - - 112,505 1,547,235
State income tax 98,138 - - - - 98,138
Accounts and allotments 757,070 - - - 166,019 923,089
Due from other funds 1,985,286 - - - 2,252 1,987,538
Due from fiduciary funds 1,271,985 - - - - 1,271,985
Advances to other funds 1,588,930 - - - - 1,588,930
IRMA excess surplus reserve 520,419 - - - - 520,419
Prepaid items 25,874 - - - - 25,874
Land held for resale - - 5,748,415 - - 5,748,415
TOTAL ASSETS 19,380,815$ 2,554,367$ 15,003,160$ 489,756$ 2,288,027$ 39,716,125$
LIABILITIES
Accounts payable and retainage payable 271,101$ 200$ 1,399,873$ -$ 408,756$ 2,079,930$
Accrued salaries and wages 376,232 - - - - 376,232
Claims payable 33,009 - - - - 33,009
Other payables 24,961 - - - - 24,961
Deferred property tax revenue 8,204,307 1,089,244 - - 307,455 9,601,006
Deposits - refundable 222,620 - 2,000 - - 224,620
Unearned revenue - - - - - -
Due to other funds - 996,462 569,922 4,245 416,481 1,987,110
Due to fiduciary funds 156,731 - - - - 156,731
Advances from other funds - - - 1,588,930 - 1,588,930
Total liabilities 9,288,961 2,085,906 1,971,795 1,593,175 1,132,692 16,072,529
FUND BALANCES
Reserved for public safety - - - - 180,400 180,400
Reserved for land held for resale - - 5,748,415 - - 5,748,415
Reserved for community development - - - - 255,457 255,457
Reserved for capital projects - - - - 550,497 550,497
Reserved for highways and streets - - - - 35,727 35,727
Reserved for debt service - 468,461 - - - 468,461
Reserved for prepaid items 25,874 - - - - 25,874
Reserved for advances 1,588,930 - - - - 1,588,930
Unreserved - undesignated
Undesignated - General Fund 8,477,050 - - - - 8,477,050
Undesignated - Special Revenue Funds - - 7,282,950 (1,103,419) 133,254 6,312,785
Total fund balances 10,091,854 468,461 13,031,365 (1,103,419) 1,155,335 23,643,596
TOTAL LIABILITIES AND
FUND BALANCES 19,380,815$ 2,554,367$ 15,003,160$ 489,756$ 2,288,027$ 39,716,125$
ASSETS
LIABILITIES AND FUND BALANCES
VILLAGE OF MORTON GROVE, ILLINOIS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2008
See accompanying notes to financial statements.
- 6 -
Primary
Government
FUND BALANCES OF GOVERNMENTAL FUNDS 23,643,596$
Amounts reported for governmental activities in the
statement of net assets are different because:
Capital assets used in governmental activities are
not financial resources and, therefore, are not
reported in the governmental funds 57,558,629
Interest payable is not due and payable in the current period
and, therefore, not reported in the governmental funds (307,651)
Long-term liabilities, including bonds payable, net pension
obligations and net other post employment benefits
payable are not due and payable in the current period and,
therefore, are not reported in the governmental funds (45,484,035)
The unamortized bond premium is not a current financial
resource and, therefore, is not reported in the
governmental funds (96,211)
The unamortized bond issuance costs are not a current financial
resource and, therefore, are not reported in the
governmental funds 94,907
NET ASSETS OF GOVERNMENTAL ACTIVITIES 35,409,235$
VILLAGE OF MORTON GROVE, ILLINOIS
RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS
December 31, 2008
See accompanying notes to financial statements.
- 7 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2008
Debt Waukegan Nonmajor Total
General Service Lehigh/Ferris Road Governmental Governmental
Fund Fund TIF Fund TIF Fund Funds Funds
REVENUES
Taxes 19,667,782$ 1,509,980$ 2,457,263$ 783,827$ 897,104$ 25,315,956$
Licenses and permits 1,115,215 - - - - 1,115,215
Intergovernmental 110,463 - 20,764 - 624,583 755,810
Surcharges - - - - 293,273 293,273
Charges for services 841,040 - - - 141,002 982,042
Fines 281,457 - - - - 281,457
Investment income 108,816 23,002 213,507 16,033 32,511 393,869
Cable TV and infrastructure
maintenance fees 224,026 - - - - 224,026
Miscellaneous 262,690 - - - 365,737 628,427
Total revenues 22,611,489 1,532,982 2,691,534 799,860 2,354,210 29,990,075
EXPENDITURES
Current
General government 3,829,837 - - - - 3,829,837
Public safety 14,639,757 - - - 238,384 14,878,141
Streets and sidewalks 2,394,391 - - - 841,933 3,236,324
Sanitation 632,928 - - - - 632,928
Vehicle maintenance 932,625 - - - - 932,625
Health and human services 679,218 - - - - 679,218
Community development 114,083 - 1,661,848 - 271,254 2,047,185
Building and inspectional services 687,918 - - - - 687,918
Debt service
Principal retirement - 1,232,416 195,000 273,670 - 1,701,086
Interest and fiscal charges - 386,792 593,937 323,630 - 1,304,359
Capital outlay
Capital projects - - 129,987 4,245 899,873 1,034,105
Total expenditures 23,910,757 1,619,208 2,580,772 601,545 2,251,444 30,963,726
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,299,268) (86,226) 110,762 198,315 102,766 (973,651)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 17,838 - - - - 17,838
Transfers in - 137,162 - - - 137,162
Transfers (out)(137,162) - - - - (137,162)
Total other financing sources (uses)(119,324) 137,162 - - - 17,838
NET CHANGE IN FUND BALANCES (1,418,592) 50,936 110,762 198,315 102,766 (955,813)
FUND BALANCES, JANUARY 1 10,557,567 417,525 14,099,959 (1,301,734) 1,052,569 24,825,886
Prior period adjustment 952,879 - (1,179,356) - - (226,477)
FUND BALANCES, JANUARY 1
AS RESTATED 11,510,446 417,525 12,920,603 (1,301,734) 1,052,569 24,599,409
FUND BALANCES, DECEMBER 31 10,091,854$ 468,461$ 13,031,365$ (1,103,419)$ 1,155,335$ 23,643,596$
AND CHANGES IN FUND BALANCES
See accompanying notes to financial statements.
- 8 -
Primary
Government
NET CHANGE IN FUND BALANCES -
TOTAL GOVERNMENTAL FUNDS (955,813)$
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 801,929
Depreciation expense does not require the use of current financial
statement resources, and is therefore, not reported as in
expenditure in the governmental funds (1,153,868)
Governmental funds do not report compensated absences, however, they
are recognized as an addition to expenses on the statement of activities 45,222
The repayment of the principal portion long-term debt is reported
as an expenditure when due in governmental funds but as a reduction
of principal outstanding in the statement of activities 1,922,726
The amortization of bond issuance costs is not reported in
governmental funds, but is reported in the statement of activities (6,363)
The amortization of the bond premium is not reported in governmental
funds, but is reported in the statement of activities 6,450
The change in net pension obligation and asset is not reported in
governmental funds, but is reported in the statement of activities (348,448)
The change in net other post employment benefits obligations are reported
only in the statement of activities (686,282)
Loss on disposal of capital assets (public safety expenses)(8,884)
The change in the accrued interest payable on long-term debt is reported
as interest expense on the statement of activities 43,741
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES (339,590)$
For the Year Ended December 31, 2008
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.
- 9 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF NET ASSETS
PROPRIETARY FUND
December 31, 2008
Water
and Sewer
CURRENT ASSETS
Cash and cash equivalents 1,053,903$
Accounts receivable 638,454
Total current assets 1,692,357
NONCURRENT ASSETS
Capital assets - not being depreciated 166,598
Capital assets - net of accumulated depreciation 3,372,200
Total noncurrent assets 3,538,798
Total assets 5,231,155
CURRENT LIABILITIES
Accounts payable 260,118
Accrued interest payable 10,861
Refundable deposits 24,575
Due to other funds 428
Installment purchase contract -
current installments 49,333
Notes payable - current maturities 74,078
Bonds payable - current maturities 243,750
Total current liabilities 663,143
LONG-TERM LIABILITIES
Installment purchase contract 50,728
Notes payable 75,942
Bonds payable 1,850,000
Total long-term liabilities 1,976,670
Total liabilities 2,639,813
NET ASSETS
Invested in capital assets, net of related debt 1,194,967
Unrestricted 1,396,375
TOTAL NET ASSETS 2,591,342$
See accompanying notes to financial statements.
- 10 -
Water and
Sewer
OPERATING REVENUES
Water sales 3,726,723$
Sewer charges 805,123
Meter and connection fees 64,214
Miscellaneous 73,091
Total operating revenues 4,669,151
OPERATING EXPENSES
Personal services 1,356,487
Contractual services and other charges 833,878
Water purchases 1,588,159
Commodities 283,968
Utilities 129,975
Miscellaneous 28,010
Total operating expenses 4,220,477
OPERATING INCOME BEFORE DEPRECIATION 448,674
DEPRECIATION 212,213
OPERATING INCOME 236,461
NONOPERATING REVENUES (EXPENSES)
Rental income 113,516
Investment income 12,188
Gain on disposal of capital assets 9,690
Interest expense and fiscal agent fees (117,550)
Total nonoperating revenues (expenses)17,844
CHANGE IN NET ASSETS 254,305
NET ASSETS, JANUARY 1 2,337,037
NET ASSETS, DECEMBER 31 2,591,342$
For the Year Ended December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUND
See accompanying notes to financial statements.
- 11 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
For the Year Ended December 31, 2008
Water and
Sewer
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 4,609,418$
Receipts from other funds 428
Receipts from miscellaneous revenues 113,516
Payments to suppliers (2,792,642)
Payments to employees (1,510,244)
Net cash from operating activities 420,476
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
None -
Net cash from noncapital
financing activities -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Proceeds from sale of capital assets 9,690
Capital additions (273,498)
Installment purchase contract payments (47,818)
Note payments (72,262)
Bond principal payments (233,750)
Bond and notes interest payments (115,747)
Net cash from capital and
related financing activities (733,385)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 12,188
Net cash from investing activities 12,188
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (300,721)
CASH AND CASH EQUIVALENTS, JANUARY 1 1,354,624
CASH AND CASH EQUIVALENTS, DECEMBER 31 1,053,903$
(This statement is continued on the following page.)
- 12 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUND
For the Year Ended December 31, 2008
Water and
Sewer
RECONCILIATION OF OPERATING INCOME TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income 236,461$
Adjustments to reconcile operating income to net
cash from operating activities
Rental income 113,516
Depreciation 212,213
Changes in operating assets and liabilities
Receivables (59,733)
Refundable deposits (2,850)
Due from other funds 428
Accounts payable and accrued expenses 26,439
Due to other funds (105,998)
NET CASH FROM OPERATING ACTIVITIES 420,476$
See accompanying notes to financial statements.
- 13 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF FIDUCIARY NET ASSETS
PENSION TRUST FUNDS
December 31, 2008
Cash and cash equivalents 2,262,501$
Investments, at fair value
Equity mut ual funds 18,711,741
Bond index fund 21,187,288
Annuit y co nt racts 8,874,852
Receivables
Accrued interest 1,008
Due from primary government 156,731
Total assets 51,194,121
LIABILITIES
Accounts payable 4,824
Due to primary government 1,271,985
Total liabilit ies 1,276,809
NET ASSETS HELD IN TRUST FOR
PENSION BENEFITS 49,917,312$
ASSETS
See accompanying notes to financial statements.
- 14 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PENSION TRUST FUNDS
For the Year Ended December 31, 2008
ADDITIONS
Contributions
Employer 3,451,982$
Employee 740,582
Total contributions 4,192,564
Investment income
Net appreciation (depreciation) in
fair value of investments (6,147,606)
Interest 1,077,630
Total investment income (5,069,976)
Less investment expense (86,782)
Net investment income (5,156,758)
Total additions (964,194)
DEDUCTIONS
Retirement benefits 3,483,598
Duty/nonduty disability benefits 550,339
Surviving spouse benefits 296,846
Refunds 28,109
Administrative expenses 70,989
Total deductions 4,429,881
NET INCREASE (DECREASE)(5,394,075)
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS
January 1 55,311,387
December 31 49,917,312$
See accompanying notes to financial statements.
- 15 -
-16 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Village of Morton Grove, Illino is (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 and the Morton Grove Public
Library’s (the Library)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.
The Village’s financial st atements 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 emplo yees 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 State of
Illino is is authorized to establish benefit levels and the Village is authorized to
approve the actuarial assumptions used in the determination of contribution levels.
Alt hough it possesses many of the characteristics of a legally separate government,
the 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. Library employees are allowed to participate in the MERF
that the Village sponsors. The MERF is reported as a pension trust fund.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-17 -
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 Illino is is
authorized to establish benefit levels and the Village is authorized to approve the
actuarial assumptions used in the determination of contribution levels. Although it
possesses many of the characteristics of a legally separate government,the PPERS is
reported as if it were part of the primary government because its sole purpose is to
finance and administer the pensions of the Village’s police employees, and because of
the fiduciary nature of such activities. The PPERS is reported as a pensio n t rust 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 fir e employees
constitute the pension board.The Village and FPERS participants are obligated to
fund all FPERS costs based upon actuarial valuations. The State of Illino is is
authorized to establish benefit levels and the Village is authorized to approve the
actuarial assumptions used in the determination of contribution levels. Alt hough it
possesses many of the characteristics of a legally separate government, the FPERS is
reported as if it were part of the primary government because its sole purpose is to
finance and administer the pensions of the Village’s firefighters and because of the
fiduciary nature of such activities. The FPERS is reported as a pension trust fund.
Discretely Presented Component Unit
Morton Grove Public Library (the Library)
The Library’s board consists of seven elected individuals,none of which are members
of the Village’s governing body. The Library’s budget is subject to the acceptance of
the Village’s governing body. In addition, the taxing authority and issuance of debt is
also subject to the acceptance of the Village’s governing body. Additionally, the
activit ies of the Library are open to all cit izens and benefit the citizens of the Village.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-18 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
Governmental funds are used to account for all or most of a government’s general
activit ies, including the collection and disbursement of earmarked monies (special
revenue funds), the acquisition or construction of capital assets (capital projects
funds) and the servicing of governmental lo ng-term debt (debt service funds).
Proprietary funds are used to account for activities similar to those found in t he
private sector, where the determination of net income is necessary or useful to sound
financial administ ration. Goods or services from such activities can be provided either
to outside parties (enterprise funds) or to other departments or agencies primarily
wit hin t he 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 S tatements
The government-wide financial statements (i.e.,the statement of net assets and the
statement of activit ies) report info rmation 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
eliminat ed 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. Dir ect 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-19 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c.Government-Wide and Fund Financial Statements (Continued)
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported as separate columns in t he fund financial statements.
The Village reports the follo wing major governmental funds:
The General Fund is the Village’s primary operating fund. It accounts for all
financial resources of the Village, except those required to be accounted for in
another fund.
The Debt Service Fund is used to account for the payment of governmental
lo ng-term debt.
Lehigh/Ferris Tax Increment Financing Fund -accounts for tax increment
revenue and other financial resources received along with the costs related to
the Village’s Tax Increment Financing (TIF) Projects. The fund entails the TIF
District alo ng Lehigh and Ferris Avenues. The TIF District is authorized by
State law and is created to promote redevelopment of certain parcels declared
as “blight ed”int o 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) Projects. The fund
entails the TIF District alo ng Waukegan Road. The TIF District is authorized
by State law and is created to promote redevelopment of certain parcels
declared as “blight ed”int o a higher and more productive land use.
The Village reports the follo wing major proprietary fund:
The Water and Sewer Fund accounts for the provision of water 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 Firefighter’s Pension Fund, and the
Police Pension Fund.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-20 -
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. Nonoperating 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 mo dified accrual basis of account ing, 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
wit hin t he current period or soon enough t hereafter to be used to pay liabilit ies of the
current period, usually 60 days. 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 liabilit y 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 t axes 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 permits 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.
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
(Continued)
The Village reports unearned/deferred revenue on its financial statements.
Unearned/deferred revenues arise when a potential revenue does not meet both the
“measurable”and “available”or “earned”criteria for recognition in the current
period. Unearned/deferred revenues also arise when resources are received by the
government 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 government has a legal claim to the
resources, the liability for unearned/deferred 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
liabilit ies associated with the operation of these funds are included on the balance
sheet. Proprietary fund operating statements present increases (i.e., revenues) and
decreases (i.e., expenses) in net total assets.
e.Cash and Investments
For purposes of the statement of cash flows, the Village’s proprietary fund considers
all highly liquid invest ment s with an original maturity of three months or less when
purchased to be cash equivalent s.
f.Investments
Investments with a maturity of less than one year when purchased and nonnegotiable
certificat es of deposit are stated at cost or amortized cost. Investments with a
mat urity greater than one year when purchased and all investments of the pension
trust funds are stated at fair value. Fair value is based on prices listed on national
exchanges as of December 31, 2008 fo r debt and equity securities. Mutual funds,
investment funds and insurance separate accounts are valued at contract value as of
December 31, 2008.
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 int erfund loans, if any, are classified as “int erfund receivables/payables.”
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-22 -
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
init ially 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 o ther interfund transactions, except fo r int erfund services provided and used are
reported as transfers.
Advances between funds, if any, are offset by a fund balance reserve account in
applicable governmental funds to indicate they are not available for appropriation and
are not expendable available financial resources.
h.Prepaid Items/Expenses
Payments made to vendors for services that will benefit periods beyond the date of
this report are recorded as prepaid items/expenses.
i.Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g.,
roads, bridges, storm sewers and similar it ems), are reported in t he applicable
governmental or business-type activities columns in the government-wide financial
statements and include capital assets acquired prior to 1980. Capital assets are defined by
the Village as assets with an initial, individual cost of mo re than $10,000 and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or estimated
hist orical cost if purchased or constructed. Donated capital assets are recorded at
estimat ed 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 fo r 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 met hod over the
fo llo wing estimated useful lives:
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-23 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
i.Capital Assets (Continued)
Buildings, reservoirs, pump house,water mains and improvements 50 years
Garage and fence 50 years
Office building, remodeling and improvements 10 -50 years
Improvements to water system 20 years
Vehicles 3 -10 years
Equipment 3 -10 years
Water meters 10 -15 years
Infrastructure
Streets 50 years
Alleys 10 years
Signals 25 years
Infrastructure acquired prior to fiscal years ended June 30, 1980 is reported.
j.Compensated Absences
Vested or accumulated vacation leave that is owed to retirees or terminat ed
employees at year end is reported as an expenditure and a fund liabilit y o f t he
governmental fund that will pay it in t he governmental fund financial statements and
in t he governmental activities column in the government-wide financial statements.
Vested or accumulated vacation leave of proprietary funds is recorded as an expense
and liabilit y o f t hose 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 portio n 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 liabilit y fo r compensated absences.
In addition, the Village has recorded $550,729 fo r sick time payments to be made in
the future to all civilian emplo yees 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 as a liabilit y and expense in the governmental
activit ies column in the government-wide financial statements.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-24 -
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, as well as issuance costs, are deferred and
amo rtized over the life of the bonds. Bonds payable are reported net of the applicable
bond premium or discount. Bond issuance costs are reported as deferred charges and
amo rtized over the term of the related debt.
In the fund financial st atements, 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 Assets
In the fund financial statements, governmental funds report reservations of fund balance
fo r amounts that are not available for appropriation or are legally restricted by outside
parties fo r use for a specific purpose. Designations of fund balance represent tentative
management plans that are subject to change. In the government-wide financial
statements, restricted net assets are legally restricted by outside parties for a specific
purpose. None of the Village’s net assets are restricted as a result of enabling legislation
adopted by the Village. Invested in capital assets, net of related debt, represents the book
value of capital assets less any long-term debt principal outstanding issued to construct
capital assets.
n.GASB Pronouncements
The Village has elected, under the provisions of GASB Statement No.20, titled
“Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting,”to apply all
applicable GASB pronouncements and all FASB Statements and Interpretations,
Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins
(ARB) issued on or before November 30, 1989, unless they conflict with or
contradict GASB pronouncements.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-25 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
o.Accounting Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimat es and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilit ies at the date of the financial statements and the reported amounts of
revenues and expenditures/expenses during the reporting period. Actual results could
differ from those estimates.
2.LEGAL COMPLIANCE AND ACCOUNTABILITY
Deficit Fund Balances/Net Assets of Individual Funds
The following fund had a deficit in fund balance as of the date of this report:
Fund
Deficit
Balance
Major Governmental Funds
Waukegan Road TIF $1,173,419
3.DEPOSITS AND INVESTMENTS
Permit ted Deposits and Investments -The Village’s investment policy 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
or agreements to repurchase these same obligations, repurchase agreements, short-term
commercial paper rated within the three highest classifications by at least two standard
rating services and Illinois Funds. Pension funds may also invest in certain non U.S.
obligations, Illinois municipal corporations tax anticipation warrants, veteran’s lo ans,
obligations of the State of Illinois and its political subdivisions, and Illinois insurance
company general and separate accounts, mutual funds and equity securities.
Illino is Funds is an investment pool managed by t he 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 fo r which
the investment could be sold.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-26 -
3.DEPOSITS AND INVESTMENTS (Continued)
Illino is Metropolitan Investment Fund (IMET) is a non-fo r-profit investment trust formed
pursuant to the Illino is 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 fo r which the investment
could be sold.
It is the investment credit risk policy o f t he 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
banks 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, 2008, the Village had the following debt security investment s and
mat urities.
Investment Maturities (in Years)
More
Fair Value Less than 1 1-5 6-10 than 10
U. S. agency obligations $1,831,049 $1,219,714 $611,335 $-$-
Negotiable CD’s 4,350,000 3,700,000 650,000 --
Illinois Funds 7,303,985 7,303,985 ---
Illinois Metropolitan Investment
Fund 252,396 252,396 ---
TOTAL $13,737,430 $12,476,095 $1,261,335 $-$-
In accordance with its investment policy, the Village limit s it s exposure to interest rate risk
by st ructuring 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. The investment policy
limit s the maximum maturity length of investments in the operating funds to five years from
date of purchase, unless matched to a specific cash flow. Investments reserve funds may be
purchased with maturities to match future projects or liability requirements.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-27 -
3.DEPOSITS AND INVESTMENTS (Continued)
Village Investments (Continued)
The Village limits it s exposure to credit risk, the risk that the issuer of a debt security will
not pay it s par value upon maturity, by primarily investing in o bligat io ns guaranteed by the
Unit ed States Government or securities issued by agencies of the United States Government
that are explicitly o r implicit ly guaranteed by the United States Government or in pools.
The U.S. agency obligations, Illino is Funds and IMET are 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
investment s 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.
Illino is Funds and IMET are not subject to custodial credit risk.
At December 31, 2008, the Village had investment s in Illino is Funds and an investment in a
5.25 % Federal Farm Credit Bank Note maturing August 3, 2009 with fair value greater
than 5% of it s overall portfolio.
Municipal Employee’s Retirement Fund Investments
The Village’s municipal employees participate in the Municipal Employee’s Retirement
Fund (MERF). Continental Insurance Company (CNA) manages and maintains the
activit ies of MERF.
As of December 31, 2008, MERF had the following investments and maturities.
Investment Maturities (in Years)
More
Fair Value Less than 1 1-5 6-10 than 10
Annuity contracts $8,874,852 $8,874,852 $-$-$-
Police Pensio n Fund Deposits
Custodial credit risk for deposits with financial institutions is the risk that in the event of a
banks failure, the Police Pension Funds’deposits may not be returned to them. The Police
Pension Funds’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 Fund in the Fund’s name.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-28 -
3.DEPOSITS AND INVESTMENTS (Continued)
Police Pension Fund Investments
As of December 31, 2008, the Police Pension Fund had the following debt security
investment s and maturities.
Investment Maturities (in Years)
More
Fair Value Less than 1 1-5 6-10 than 10
Government bond index fund $11,411,175 $11,411,175 $-$-$-
Illinois Funds 1,266,945 1,266,945 ---
Money market mutual funds 430,981 430,981 ---
TOTAL $13,109,101 $13,109,101 $-$-$-
In accordance with its investment policy, the Police Pension Fund limits its exposure to
int erest rate risk by structuring the portfolio to provide liquidity for operating funds and
maximizing yields fo r funds not needed within a one year period. The investment policy
does not limit the maximum mat urity 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 and the equity mutual funds are rated all
rated AAA, the money market mutual funds are rated AAA. Illinois Funds 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 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
mut ual funds are not subject to custodial credit risk.
Concentration of credit risk -the Police Pension Fund’s investment policy states that no
mo re than 10% 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 Police
Pension Fund’s investment portfolio may be invested in a single security type. At December
31, 2008, 49.40% of the Police Pension Fund investments were invested in the Northern
Trust government bond index fund. 24.04% of the Police Pension Fund investments in
equity mutual funds were invested in the Northern Trust S&P 500 Equity Fund.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-29 -
3.DEPOSITS AND INVESTMENTS (Continued)
Firefight ers’Pension Fund Deposits
Custodial credit risk for deposits with financial institutions is the risk that in the event of a
bank’s failure, the Firefight ers’Pension Funds’deposits may not be returned to them. The
Firefight ers’Pension Funds’investment policies require pledging of collateral with a fair
value of 110% of all bank balances in excess of federal depository insurance with the
collat eral held by an agent of the Firefighters’ Pension Fund in the Firefighters’ Pension
Fund’s name.
Firefight ers’Pension Fund Investments
As of December 31, 2008, the Firefight ers’Pension Fund had the following investments and
mat urities.
Investment Maturities (in Years)
More
Fair Value Less than 1 1-5 6-10 than 10
Government bond index fund $9,776,113 $9,776,113 $-$-$-
Money market mutual funds 564,576 564,576 ---
TOTAL $10,340,689 $10,340,689 $-$-$-
In accordance with its investment policy, the Firefight ers’ Pension Fund limits its exposure
to int erest rate risk by structuring the portfolio to provide liquidity fo r operating funds and
maximizing yields fo r funds not needed within a one year period. The investment policy
does not limit the maximum mat urity length of investments in the Firefight ers’Pension
Fund.
The Firefight ers’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 and the equity mutual funds are rated all
rated AAA, the money market mutual funds are rated AAA.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-30 -
3.DEPOSITS AND INVESTMENTS (Continued)
Firefight ers’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 Firefight ers’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 Firefight ers’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
wit h 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 mo ney market mutual funds are not subject to custodial credit risk.
Concentration of credit risk -the Firefight ers’Pension Fund’s investment policy states that
no more than 5% of the total portfolio may be invest ed in one individual security o r in cash.
Also , with the exception of U.S. Treasury securities, no more than 40% of the total fund’s
investment portfolio may be invest ed in a single security type. At December 31, 2008,
45.16% of the Firefighters’ Pension Fund investments were invested in equity mutual funds;
5.15% in t he Northern Trust Structured Small Cap Fund, 10.07% in the Northern Trust
Collective Daily All Country Fund, and 30.54% in the Northern Trust S&P 500 Equity
Fund. 51.28% of the Firefighters’ Pension Fund investments were invested in the Northern
Trust government bond index fund.
4.RECEIVABLES
Property taxes for 2008 attach as an enforceable lien on January 1, 2008 on property values
assessed as of the same date. Taxes are levied by December of the fiscal year (by passage
of a Tax Levy Ordinance). Tax bills are prepared by the County and issued on or about
February 1, 2008 and August 1, 2008 and are payable in two installments, on or about
March 1, 2008 and September 1, 2008. The County collects such taxes and remit s them
periodically. The allowance for uncollectible taxes has been stated at 3% of the tax levy, to
reflect actual collection experience. Since the 2008 levy is int ended to fund the 2009 fiscal
year, the levy has been recorded as a receivable and deferred revenue.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-31 -
5.CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2008 was as follows:
Primary Government
Beginning
Balances
January 1 Additions Retirements
Ending
Balances
December 31
GOVERNMENTAL ACTIVITIES
Capital assets not being depreciated
Land (including right of ways)$42,912,581 $-$-$42,912,581
Total capital assets not being
depreciated 42,912,581 --42,912,581
Capital assets being depreciated
Buildings and improvements 18,037,722 --18,037,722
Vehicles and equipment 5,564,900 391,587 290,153 5,666,334
Infrastructure 26,054,600 410,342 -26,464,942
Total capital assets being depreciated 49,657,222 801,929 290,153 50,168,998
Less accumulated depreciation for
Buildings and improvements 8,349,620 589,801 -8,939,421
Vehicles and equipment 4,285,431 305,253 281,269 4,309,415
Infrastructure 22,015,300 258,814 -22,274,114
Total accumulated depreciation 34,650,351 1,153,868 281,269 35,522,950
Total capital assets being
depreciated, net 15,006,871 (351,939)8,884 14,646,048
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $57,919,452 $(351,939)$8,884 $57,558,629
Depreciation expense was charged to functions/programs of the governmental activities as
fo llo ws:
GOVERNMENTAL ACTIVITIES
General government $447,338
Public safety 292,866
Streets, sidewalks and sewers 413,664
TOTAL DEPRECIATION EXPENSE -GOVERNMENTAL ACTIVITIES $1,153,868
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-32 -
5.CAPITAL ASSETS (Continued)
Primary Government (Continued)
Beginning
Balances
January 1 Additions Retirements
Ending
Balances
December 31
BUSINESS-TYPE ACTIVITIES
Capital assets not being depreciated
Construction in progress $-$166,598 $-$166,598
Total capital assets not being
Depreciated -166,598 -166,598
Capital assets being depreciated
Buildings and improvements 9,524,443 --9,524,443
Equipment 1,336,887 106,901 -1,443,788
Total capital assets being
depreciated 10,861,330 106,901 -10,968,231
Less accumulated depreciation for
Buildings and improvements 6,341,186 133,355 -6,474,541
Equipment 1,042,631 78,859 -1,121,490
Total accumulated depreciation 7,383,817 212,214 -7,596,031
Total capital assets being
depreciated, net 3,477,513 (105,313)-3,372,200
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $3,477,513 $61,285 $-$3,538,798
6.RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissio ns; injuries to employees and natural disasters.
These risks 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 it s risk management needs. The agency administers a mix of
self-insurance and commercial insurance coverages; property/casualty and workers’
compensation claim administ ration/litigation management services; unemployment claim
administ ration/litigation management services; unemployment claim administration;
extensive risk management/loss control consulting and training programs and a risk
info rmation system and financial reporting service for its members.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-33 -
6.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
amo unts 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 beyo nd it s representation on the Board of
Directors. The Village paid an original contribution that was based on the Village’s eligible
revenue as defined in the by-laws of IRMA and experience modification factors based on
past member loss experience.
The Village has a contractual obligation to fund any deficit or IRMA attributable to a
membership year during which the Village was a member. Supplemental contributions may
be required to fund these deficits. No supplemental contributions were due at
December 31, 2008.
On January 1, 1990, the Village became self-insured for health insurance for all employees.
The plan requires the employees to pay 10% of the premium cost with the Village paying
the other 90%. The premium is based on projected claims by all employees for the calendar
year. The Village is solely responsible to pay the claims for the corridor from the projected
claim amo unt to the aggregate stop loss which is equal to 140% of the total projected
claims. On January 1, 2008, the Village discontinued its self-insurance program. For the
year ended December 31, 2008 the Village did not have claims in excess of projected
claims. Settlement amounts have not exceeded commercial insurance coverage for the
current year or the five prior years.
A reconciliation of claims payable for the fiscal years ended December 31, 2008 and 2007 is
as follows:
Total
Fiscal Year Ended
December 31
2008 2007
UNPAID CLAIMS, BEGINNING OF YEAR $48,862 $200,197
Incurred claims (including IBNR)--
Claim payment s (15,853)(151,335)
UNPAID CLAIMS, END OF YEAR $33,009 $48,862
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-34 -
6.RISK MANAGEMENT (Continued)
Intergovernmental Personnel Benefit Cooperative (IPBC)
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 administ er some or all o f t he 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, quasi-governmental and nonprofit
public service entities. Risk of loss is retained by the Village, except that IPBC purchases
excess coverage policies.
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 activit ies of IPBC beyond its
representation on the Board of Directors.
7.LEASES
The Village is a lessor in an operating lease for two properties.
Property adjacent to 6451 Dempster No cost allo cated
Adjacent to PW building 7828 Nagle No cost allo cated
Future minimum rentals are as follows:
6451 Dempster 7828 Nagle
2009 $28,411 $78,956
2010 -82,114
8.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 t he 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-35 -
8.LONG-TERM DEBT (Continued)
a.General Obligation Bonds (Continued)
General obligation bonds are direct obligations and pledge the full fait h 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
Current
Portion
$15,495,000
Corporate Purpose
Serial Bonds dated
February 1, 1999, due
in annual installments
of $635,000 to
$1,765,000 plus
interest at 4.0% to
6.0%, due on June 1
and December 1 of
each year.
Water
and
Sewer
Debt
Service
$2,327,500
6,982,500
$-
-
$233,750
701,250
$2,093,750
6,281,250
$243,750
731,250
$9,200,000 General
Obligation Bonds
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
ye ar.
Debt
Service 9,200,000 --9,200,000 405,000
TOTAL $18,510,000 $-$935,000 $17,575,000 $1,380,000
b.Revolving Loans Payable
The Village entered into several installment contracts with the Illino is Environmental
Protection Agency (IEPA) to provide funds for the construction of flood control
projects. The contracts are for a 20 year period with equal semi-annual installments.
Installment contracts currently outstanding are as follows:
Fund Debt
Retired By
Balances
January 1 Additions Reductions
Balances
December 31
Current
Portion
IEPA revolving line
of credit for Parkview
and South Central
sewer rehabilitation
projects, payable
semi-annually over 20
ye ars upon
presentation of
invoice by IEPA with
interest at 3.58%.
Debt
Service
Water
and
Sewer
$2,039,279
222,283
$-
-
$405,947
72,262
$1,633,332
150,021
$420,611
74,078
TOTAL $2,261,562 $-$478,209 $1,783,353 $494,689
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-36 -
8.LONG-TERM DEBT (Continued)
c.Installment Notes Payable
The Village issues inst allment 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
activit ies.
Fund Debt
Retired By
Balances
January 1 Additions Reductions
Balances
December 31
Current
Portion
Installment notes
payable, secured by
equipment, due in
annual installments at
various amounts over
the next three years,
plus interest ranging
from 3.5% to 5.0%.
Debt
Service
Water
and
Sewer
$174,597
147,879
$-
-
$56,605
47,819
$117,992
100,060
$57,393
49,333
Installment notes
payable, secured by
equipment, due in
annual installments at
various amounts over
the next three years,
plus interest at 4.00%.
Debt
Service 139,925 -68,859 71,066 71,066
Installment notes
payable, secured by
equipment, due in
annual installments at
various amounts over
the next five years,
plus interest at 6.37%.
Lehigh/
Ferris
TIF 2,625,000 --2,625,000 -
$3,165,000 General
Obligation Bank
Promissory Note for
projects related to the
Tax Increment
Financing Fund and
the Economic
Development Fund,
principal due semi-
annually through 2018
with interest at 5.32%.
Waukegan
Road
TIF 2,266,834 -178,357 2,088,477 186,001
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-37 -
8.LONG-TERM DEBT (Continued)
c.Installment Notes Payable (Continued)
Fund Debt
Retired By
Balances
January 1 Additions Reductions
Balances
December 31
Current
Portion
$475,000 taxable bank
note for the acquisition
of properties within
Lehigh/Ferris Tax
Increment Financing
Village, due in annual
payments of $95,000
from 2006 through
2008 with interest at
4.725% for payment
due at September 10,
2002 and at 70% of the
Wall Street Journal’s
published prime rate
for subsequent
payments. The prime
rate at September 10,
2002 was 4.75%.
Lehigh/
Ferris
TIF $95,000 $-$95,000 $-$-
$800,000 taxable bank
note for the acquisition
and redevelopment of
properties within
Lehigh/Ferris Tax
Increment Financing
Village, due in annual
payments of $100,000
beginning December 1,
2007 to 2008 with a
balloon payment of
$500,000 due
December 1, 2009.
Interest is variable at
LIBOR plus 70 basis
points and is due
beginning December 1,
2004.
Lehigh/
Ferris TIF 600,000 -100,000 500,000 500,000
$5,300,000 General
Obligation Promissory
Note, Series 2002,
dated July 22, 2002,
due in annual
installments of
$10,000 to $515,000
beginning December 1,
2002, plus interest at
4.620% through
June 1, 2022.
Waukegan
Road TIF 5,075,000 -95,000 4,980,000 195,000
TOTAL $11,124,235 $-$641,640 $10,482,595 $1,058,793
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-38 -
8.LONG-TERM DEBT (Continued)
d.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 fo r
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, 2008, the Village made
total int ergovernmental payments of $132,913. The tax revenue is determined on an
annual basis and the estimated future liability is shown below.
e.Intergovernmental Agreement with School District 70
In 2000, the Village entered into a second intergovernmental agreement, this time
wit h Morton Grove School District 70. The agreement calls fo r the Village to remit
to the school district a portion of the proposed tax revenue due to projected growth
in t he equalized assessed valuation for existing properties located in the Lehigh/Ferris
TIF and existing on the date when the TIF was formed. As with the agreement with
District 67, payment s 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, 2008, the Village made
total int ergovernmental payment s of $199,558. 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
2009 $146,018 $76,239 $222,257
2010 159,613 86,146 245,759
2011 173,720 96,374 270,094
2012 188,354 106,934 295,288
2013 203,538 117,838 321,376
Thereafter 1,266,140 1,862,060 3,128,200
TOTAL $2,137,383 $2,345,591 $4,482,974
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-39 -
8.LONG-TERM DEBT (Continued)
f.Debt Service Requirements to Maturity
Year General Obligation Bonds
Ending Governmental Activities Business-Type Activities
December 31,Principal Interest Total Principal Interest Total
2009 $1,136,250 $644,709 $1,780,959 $243,750 $92,236 $335,986
2010 1,186,250 598,528 1,784,778 253,750 82,243 335,993
2011 1,427,500 549,174 1,976,674 327,500 71,458 398,958
2012 1,485,000 488,390 1,973,390 405,000 57,130 462,130
2013 1,757,500 424,130 2,181,630 422,500 39,310 461,810
2014 1,833,750 347,493 2,181,243 441,250 20,297 461,547
2015 535,000 266,200 801,200 ---
2016 560,000 244,800 804,800 ---
2017 585,000 222,400 807,400 ---
2018 620,000 199,000 819,000 ---
2019 645,000 174,200 819,200 ---
2020 675,000 148,400 823,400 ---
2021 710,000 121,400 831,400 ---
2022 740,000 93,000 833,000 ---
2023 775,000 63,400 838,400 ---
2024 810,000 32,400 842,400 ---
TOTAL $15,481,250 $4,617,624 $20,098,874 $2,093,750 $362,674 $2,456,424
Year Total Outstanding Loans
Ending Governmental Activities Business-Type Activities
December 31,Principal Interest Total Principal Interest Total
2009 $420,611 $54,742 $475,353 $74,078 $3,291 $77,369
2010 435,803 39,550 475,353 75,944 1,427 77,371
2011 451,544 23,807 475,351 ---
2012 325,374 7,498 332,872 ---
TOTAL $1,633,332 $125,597 $1,758,929 $150,022 $4,718 $154,740
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-40 -
8.LONG-TERM DEBT (Continued)
f.Debt Service Requirements to Maturity (Continued)
Year Total Installment Notes Payable
Ending Governmental Activities Business-Type Activities
December 31,Principal Interest Total Principal Interest Total
2009 $1,009,460 $495,186 $1,504,646 $49,333 $3,616 $52,949
2010 474,317 461,425 935,742 50,727 1,838 52,565
2011 3,066,754 3,065,698 6,132,452 ---
2012 474,965 253,670 728,635 ---
2013 513,833 231,757 745,590 ---
2014 547,912 208,515 756,427 ---
2015 587,366 183,581 770,947 ---
2016 632,158 156,864 789,022 ---
2017 672,466 127,990 800,456 ---
2018 558,304 98,134 656,438 ---
2019 410,000 76,742 486,742 ---
2020 440,000 56,148 496,148 ---
2021 480,000 34,840 514,840 ---
2022 515,000 12,902 527,902 ---
TOTAL $10,382,535 $5,463,452 $15,845,987 $100,060 $5,454 $105,514
g.Changes in Long-Term Liabilit ies
During the fiscal year, the following changes occurred in liabilit ies reported on the
schedule of long-term liabilit ies payable by governmental funds:
Primary Government
Balances
January 1 Additions Reductions
Balances
December 31
Due Within
One Year
GOVERNMENTAL ACTIVITIES
General obligation bonds
payable $16,182,500 $-$701,250 $15,481,250 $1,136,250
Unamortized premium on bonds 102,661 -6,450 96,211 -
Revolving loans payable 2,039,279 -405,947 1,633,332 420,611
Installment notes payable 10,976,423 -593,889 10,382,534 1,009,460
Intergovernmental agreement
payable 4,682,532 -199,558 4,482,974 222,257
Economic development
agreement 22,082 -22,082 --
Net pension obligation 11,878,890 348,448 -12,227,338 -
*Compensated absences payable 635,547 590,325 635,547 590,325 59,033
TOTAL GOVERNMENTAL
ACTIVITIES DEBT $46,519,914 $938,773 $2,564,723 $44,893,964 $2,847,611
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-41 -
8.LONG-TERM DEBT (Continued)
g.Changes in Long-Term Liabilit ies (Continued)
Primary Government (Continued)
Balances
January 1 Additions Reductions
Balances
December 31
Due Within
One Year
BUSINESS-TYPE ACTIVITIES
General obligation bonds
payable $2,327,500 $-$233,750 $2,093,750 $243,750
Revolving loans payable 222,283 -72,262 150,021 74,078
Installment notes payable 147,878 -47,818 100,060 49,333
TOTAL BUSINESS-TYPE DEBT $2,697,661 $-$353,830 $2,343,831 $367,161
* Governmental activities’compensated absences are liquidated by the General Fund,
the fund in which the related salary has been charged.
h.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 t he amount and require referendum approval
of debt to be incurred by home rule municipalit ies, 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 no t be included in the foregoing percentage amounts.”
To date the General Assembly has set no limits for home rule municipalities.
i.Economic Development and Redevelopment Agreements
1)CVS, Inc.
During June 2006, CVS, Inc. purchased the Osco Drug store with which the
Village had previously entered into an economic development agreement. 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. No payment s were made to CVS in 2007
or 2008.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-42 -
8.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”wit h 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”fo r
$1,799,412 and for the Village to remit to him a portion of the sales tax receipts
collected on sales made by the new auto dealership, McGrath Acura, which is
planned to be located on the purchased properties. Maximum amount to be
remitted by the Village is $500,000, provided that the Village does not require
sit e improvements costing in excess of that amount. Amo unts due to Gary D.
McGrath under the terms of the agreement were $71,696 at December 31,
2008.
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 wit h t he Village’s
requirements for infrastructure improvement the Village has agreed to enter
int o a sales tax revenue sharing program upon the commencement of retail
operations to be public. The first $110,000 of sales tax revenue shall be
retained by the Village. The program will continue until the Developer’s receipt
of $253,320 or ten years following the opening of the store, whichever comes
fir st. 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. No payment s were made to Walgreens and MRD in 2008.
j.Noncommit ment Debt
Industrial Revenue Bonds
On December 14, 2007, the Village approved the sale of $30,000,000 Cultural
Facilit y Variable Rate Demand Revenue Bonds, Series 2007 to be used for the
construction of a Holocaust Museum in Skokie, Illinois by a not-fo r-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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-43 -
9.INTERFUND ASSETS/LIABILITIES
a.Due From/To Other Funds
Receivable Fund Payable Fund Amo unt
GOVERNMENTAL FUNDS
Major Funds
General Motor Fuel Tax $39,004
General Debt Service 996,462
General Lehigh/Ferris TIF 569,922
General Waukegan Road TIF 4,245
General Capital Projects 375,224
General Water and Sewer 428
Nonmajor Funds
Motor Fuel Tax Capital Projects 2,252
TOTAL GOVERNMENTAL FUNDS $1,987,537
Significant amo unts due from/to other funds at December 31, 2008 are as fo llo ws:
·$39,004 due from the Motor Fuel Tax Fund to the General Fund. This balance
consists of short-term lo ans due from the Motor Fuel Tax Fund to the General
Fund. Repayment is expected within one year.
·$996,462 due from the Debt Service Fund to the General Fund. This balance
consists of short-term lo ans due from the Debt Service Fund to the General
Fund. Repayment is expected within one year.
·$569,922 due from the Lehigh/Ferris TIF Fund to the General Fund. This
balance consists of short-term lo ans due from the Lehigh/Ferris TIF Fund to the
General Fund. Repayment is expected within one year.
·$375,224 due from the Capital Projects Fund to the General Fund. This
balance consists of short-term lo ans due from the Capital Projects Fund to the
General Fund. Repayment is expected within one year.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-44 -
9.INTERFUND ASSETS/LIABILITIES (Continued)
b.Due From/To Fiduciary Funds
Receivable Fund Payable Fund Amo unt
GOVERNMENTAL FUNDS
Major Funds
General Police Pension $1,184,954
General Firefighters’ Pension 87,031
PENSION TRUST FUNDS
Municipal Employees Retirement General 156,731
TOTAL $1,428,716
Significant amo unts due from/to fiduciary funds at December 31, 2008 are as follows:
·$1,184,994 due from the Police Pension Trust Fund to the General Fund for
contributions due at year end.
·$156,731 due from General Fund to the Municipal Employees Retirement
Pension Trust Fund for contributions due at year end.
c.Advances
The General Fund advanced funds to the Waukegan Road TIF for prior years’ debt
payments in the amount of $1,588,930. The advance will be paid back as funds
become available.
d.Interfund Transfers
Transfers
In
Transfers
Out
GOVERNMENTAL ACTIVITIES
Major Funds
General $-$137,162
Debt Service 137,162 -
TOTAL GOVERNMENTAL ACTIVITIES $137,162 $137,162
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-45 -
9.INTERFUND ASSETS/LIABILITIES (Continued)
d.Interfund Transfers (Continued)
The purposes of the significant int erfund transfers are as follows:
·$137,162 transferred from the General Fund to the Debt Service Fund. The
transfers from the General Fund are to reimburse the Debt Service Fund to
cover the cost of various equipment installment loan payments.
10.CONTINGENT LIABILITIES
a.Lit igation
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 Community Develo pment Block Grants.
In connection with these grants, the Village is required to comply with specific terms
and agreements, as well as applicable federal and State laws and regulations. Such
compliance is subject to review and audit by the grantors and their representatives.
In the opinion of management, the Village has complied with all requirements.
However, since such programs are subject to future audit or review, the possibility of
disallo wed expenditures exists. In the event of any disallowance of claimed
expenditures, the Village expects the resulting liability to be immaterial.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-46 -
11.JOINT VENTURES
Solid Waste Agency of Northern Cook County (SWANCC)
The Village is a member of the Solid Waste Agency of Northern Cook County (SWANCC)
which consists of twenty-three municipalities. SWANCC is a municipal corporation and
public body politic and corporate established pursuant to the Intergovernmental
Cooperation Act of the State of Illinois. SWANCC is empowered to plan, construct,
finance, operate and maintain a solid waste disposal system to serve its members.
SWANCC is governed by a board of directors which consists of the mayor or president
from each member municipality. Each director has an equal vote. The officers of
SWANCC are appointed by the board of directors. The board of directors determines the
general policy of SWANCC, makes all appropriations, approves contracts, provides for the
issuance of debt, adopts by-laws, rules and regulations and exercises such powers and
performs such duties as may be prescribed in the agency agreement or the by-laws.
Complete financial statements for SWANCC can be obtained from the SWANCC’s
administ rative office at 2700 Patriot Boulevard, Suite 110, Glenview, Illino is 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 mo nies and 3) all income, fees, service charges and all grants, rents and receipts derived
by SWANCC from the ownership and operation of the system. SWANCC covenants to
establish fees and charges sufficient to provide revenues to meet all its requirements.
SWANCC has entered into solid waste disposal contracts with the member municipalities.
The contracts are irrevocable and may not be terminated or amended except as provided for
in t he contract. Each member is obligated, on a “take or pay”basis, to deliver a minimum
amo unt 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 it s 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 $449,419 to
SWANCC in 2008, which includes payment fo r debt contribution. The Village does not
have an equity interest in SWANCC at December 31, 2008.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-47 -
11.JOINT VENTURES (Continued)
Solid Waste Agency of Northern Cook County (SWANCC) (Continued)
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 $35,000 a month or $420,000 a year.
12.RELATED PARTIES
Regional Emergency Dispatch Center
The Regional Emergency Dispatch Center (the Center)is a governmental jo int venture of
Illino is municipalit ies which is used to account for the resources involved in dispatching fire
and medical emergency services to a seven communit y 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
fo r 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
lo cated at 1842 Shermer Road, Northbrook, Illino is 60062.
13.POSTEMPLOYMENT BENEFITS
a.Plan Description
In addition to providing the pension benefits described, the Village provides
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 no t 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-48 -
13.OTHER POSTEMPLOYMENT BENEFITS (Continued)
b.Benefits Provided
The Village provides pre and post Medicare post-retirement health insurance to
retirees, their spouses and dependents (enrolled at time of employee’s retirement). To
be eligible fo r benefits, the employee must qualify for retirement under one of the
Village’s three retirement plans. The retirees pay the blended premium. 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, 2008, membership consisted of:
Retirees and beneficiaries currently receiving
benefit s 78
Terminat ed employees entitled
to benefit s but not yet receiving t hem -
Active emplo yees 155
TOTAL 233
Participating emplo yers 1
d.Funding Policy
The Village is no t 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.
e.Annual OPEB Costs and Net OPEB Obligation
The Village fir st had an actuarial valuation performed for the plan as of January 1,
2007 to determine t he funded status of the plan as of that date as well as the
employer’s annual required contribution (ARC) for the fiscal year ended
December 31, 2007.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-49 -
13.OTHER POSTEMPLOYMENT BENEFITS (Continued)
e.Annual OPEB Costs and Net OPEB Obligation (Continued)
The Village’s annual OPEB cost (expense) of $978,885 was equal to the ARC for the
fiscal year, as the transition liability was set at zero as of January 1, 2007. The
Village’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for 2008 was as follows (information for the two
preceding years is not available as an actuarial valuation was performed for the first
time as of January 1, 2008):
Fiscal
Year
Ended
Annual
OPEB
Cost
Employer
Contributions
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
December 31, 2007 $978,885 $292,603 29.9%$686,282
The net OPEB obligation as of December 31, 2007 was calculated as follows:
Annual required contribution $978,885
Interest on net OPEB obligation -
Adjustment to annual required contribution -
Annual OPEB cost 978,885
Contributions made 292,603
Increase in net OPEB obligation 686,282
Net OPEB obligation beginning of year -
NET OPEB OBLIGATION END OF YEAR $686,282
Funded Status and Funding Progress: The funded status and funding progress of the
plan as of December 31, 2007, was as follows:
Actuarial accrued liability (AAL)$10,483,403
Actuarial value of plan assets -
Unfunded actuarial accrued liability (UAAL)10,483,403
Funded ratio (actuarial value of plan assets/AAL)0.000%
Covered payroll (active plan members)$10,113,914
UAAL as a percentage of covered payroll 1.036%
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-50 -
13.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
amo unts 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 liabilit ies fo r
benefit s.
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 o f 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
liabilit ies and the actuarial value of assets, consistent with the long-term perspective
of the calculations.
In the December 31, 2008, actuarial valuation, the entry-age normal actuarial cost
met hod was used. The actuarial assumptions included no investment rate of return
and an initial healt hcare cost trend rate of 10.0% with an ultimate healthcare inflation
rate of 5.0%. Both rates include a 4.5% inflat io n assumption and 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
amo rtized as a level percentage of projected payroll on an open basis. The remaining
amo rtization period at December 31, 2008, was twenty-nine years.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-51 -
14.EMPLOYEE RETIREMENT SYSTEMS
a.Plan Descriptions
The Village contributes to five defined benefit pension plans,the Illino is 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 Firefighters’Pension Plan which
is also a single-employer pension plan. The benefit s, benefit levels, employee
contributions and employer contributions for the Police and Fir efight ers’Pension
Plans are governed by Illino is Compiled Statutes and can only be amended by the
Illino is General Assembly. None of the pension plans issue separate reports on the
pension plans.
Illino is Municipal Retirement Fund (IMRF)
IMRF provides retirement, disability, annual cost of living adjust ment s and death
benefit s to plan members and beneficiaries. IMRF acts as a common investment and
administ rative agent for local governments and school Villages in Illino is. The Illinois
Pension Code establishes the benefit provisions of the plan that can only be amended
by t he Illino is 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 Illino is Municipal
Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
Employees participating in IMRF are required to contribute 4.50% of their annual
covered salary. The member rate is established by state statute. The Village is
required to contribute at an actuarially determined rate. The employer rate for
calendar year 2008 was 9.22% of payroll.The employer contribution requirements
are established and may be amended by the IMRF Board of Trustees. IMRF’s
unfunded actuarial accrued liability is being amortized as a level percentage of
projected payroll o n a closed basis (overfunded liability amortized on open basis). The
amo rtization period at December 31, 2008 was 28 years.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-52 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
a.Plan Descriptions (Continued)
Illino is Municipal Retirement Fund (IMRF)(Continued)
For December 31, 2008, the Village’s annual pension cost of $215,881 was equal to
the Village’s required and actual contributions. The required contribution was
determined as part of the December 31, 2005 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 inflat io n;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) post-retirement benefit increases of 3% annually. The actuarial value of IMRF
assets was determined using techniques that smooth the effects of short-term volatility
in t he market value of investments over a five-year period with a 15% corridor. The
assumptions used for the 2008 annual pension cost were based on the 2002-2004
experience study. However, the actuarial valuation info rmation was based on the
2005-2007 experience study.
Sheriff’s Law Enforcement Personnel
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
mo nt hly fo r life, in an amo unt 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 10 years
of credited service and 1.00% for each year thereafter. For those SLEP members retiring
wit h 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 the IMRF as specified by statute. The employer
contribution rate for the calendar year ended 2008 was 12.36% of covered payroll.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-53 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
a.Plan Descriptions (Continued)
Municipal Employee Retirement Fund (MERF)
All emplo yees, including the Library 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) must be enrolled in MERF as participating
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 of service in excess of 15
years. Average compensation is defined as the average of the four calendar years
(within t he preceding 10 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
amo unts necessary to fund the MERF as specified by the plan. The employer
contribution for the year ended December 31, 2008 was 19.06% of covered payroll.
At December 31, 2008, the MERF membership consisted of:
Retirees and beneficiaries currently receiving benefits 14
Terminat ed employees entitled to benefits but not
yet receiving them -
Current employees
Vested and nonvested 66
TOTAL 80
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 plan as a
pension trust fund. At December 31, 2008, the Police Pension Plan membership
consisted of:
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-54 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
a.Plan Descriptions (Continued)
Police Pension Plan (Continued)
Retirees and beneficiaries currently receiving benefits 43
Terminated employees entitled to benefits but not
yet receiving them -
Inactive members 8
Current employees
Vested 26
Nonvested 16
TOTAL 93
The Police Pension Plan provides retirement benefits as well as death and disability
benefit s. Employees attaining the age of 50 or more with 20 or more years of
creditable service are entitled to receive an annual retirement benefit of one-half o f t he
salary attached to the rank held on the last day of service or for one year prior to the
last day, whichever is greater. The annual benefit shall be increased by 2.50% of such
salary for each additional year of service over 20 years up to 30 years to a maximum
of 75% of such salary. Employees with at least eight years but less than 20 years of
credited service may retire at or after age 60 and receive a reduced benefit.
The monthly pension of a police officer who retired with 20 or more years of service
aft er January 1, 1977 shall be increased annually, following the first anniversary date
of retirement and be paid upon reaching the age of at least 55 years, by 3.00% of the
original pension and 3.00% simple interest annually thereafter.
Covered employees are required to contribute 9.91% of their base salary to the Police
Pension Plan. If an employee leaves covered employment with less than 20 years of
service, accumulated employee contributions may be refunded without accumulated
int erest. The Village is required to contribute the remaining amounts necessary to
finance the plan as actuarially determined by an enrolled actuary. Effective July 1,
1993, the Village has until 2033 to fully fund the past service cost for the Police
Pension Plan. For the year ended December 31, 2008, the Village’s contribution was
17.26% of covered payroll.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-55 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
a.Plan Descriptions (Continued)
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 plan as a
pension trust fund. At December 31, 2008, the Firefighters’Pension Plan
membership consisted of:
Retirees and beneficiaries currently receiving benefits 40
Terminated employees entitled to benefits but not
yet receiving them -
Inactive members 2
Current employees
Vested 22
Nonvested 19
TOTAL 83
The Firefighters’Pension Plan provides retirement benefits as well as death and
disabilit y benefit s. Employees attaining the age of 50 or more with 20 or more years
of creditable service are entitled to receive a mo nt hly ret ir ement benefit of one-half o f
the mo nt hly salary at tached to the rank held in the fire service at the date of
retirement. The monthly pension shall be increased by 1/12 of 2.50% of such monthly
salary for each additional month over 20 years of service through 30 years of service
to a maximum o f 75% of such monthly salary. Employees with at least ten years but
less than 20 years of credited service may retire at or after age 60 and receive a
reduced retirement benefit. The monthly pension of a firefighter who retired with 20
or more years of service after January 1, 1977 shall be increased annually, following
the first anniversary date of retirement and paid upon reaching at least the age 55, by
3% of the original pension and 3% annually thereaft er.
Covered employees are required to contribute 9.455% of their salary to the
Firefighters’Pension Plan. If an employee leaves covered employment with less than
20 years of service, accumulated employee contributions may be refunded without
accumulat ed interest. The Village is required to contribute the remaining amounts
necessary to finance the plan as actuarially determined by an enrolled actuary.
Effective July 1, 1993, the Village has until the year 2033 to fully fund the past
services costs fo r the Firefighters’Pension Plan. For the year ended December 31,
2008, the Village’s contribution was 21.40% of covered payroll.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-56 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
b.Summary of Significant Accounting Policies and Plan Asset Matters
The financial st atements 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-inco me securities are recognized on
the transaction date.
There are no significant investments (other than U.S.Government guaranteed
obligations) in any one organization that represent 5.00% or more of plan net assets
fo r eit her 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,
2006
December 31,
2006
Actuarial cost method Entry-age
Normal
Entry-age
Normal
Asset valuation method 5 Year
Smoothed
Market
5 Year
Smoothed
Market
Amor tization method Level
Percentage of
Payroll
Level
Percentage of
Payroll
Amor tization period 24 Years,
Closed
28 Years,
Closed
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-57 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
c.Annual Pension Costs (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%
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Actuarial valuation date December 31,
2008
December 31,
2008
December 31,
2008
Actuarial cost method Projected
Unit Credit
Entry-age
Normal
Entry-age
Normal
Asset valuation method Market Smoothed
Market
Smoothed
Market
Amor tization method Level
Percentage of
Payroll
Level
Percentage of
Payroll
Level
Percentage of
Payroll
Amor tization period 29 Years,
Closed
30 Years,
Closed
30 Years,
Closed
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-58 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
c.Annual Pension Cost (Continued)
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Significant actuarial assumptions
a)Rate of return on 7.50%7.50%7.50%
present and future assets Compounded Compounded Compounded
Annually Annually Annually
b)Projected salary increase -4.00%4.00%4.00%
attributable to inflation Compounded Compounded Compounded
Annually Annually Annually
c)Additional projected salary 1.00%1.00%1.00%
increases -seniority/merit
d)Postretirement benefit
increases
None 3.00%3.00%
d.Net Pension Obligation (Asset)
Employer annual pension costs (APC), actual contributions and the net pension
obligation (asset) (NPO) are as follows. The NPO is the cumulative difference
between the APC and the contributions actually made.
For
Calendar
Year
Illinois
Municipal
Retirement
Sheriff’s Law
Enforcement
Personnel
Annual pension cost (APC)2006 $163,023 $-
2007 198,251 14,940
2008 215,881 15,033
Actual contribution 2006 $163,023 $-
2007 198,251 14,940
2008 215,881 15,033
Percentage of APC contributed 2006 100.00%100.00%
2007 100.00%100.00%
2008 100.00%100.00%
NPO (asset)2006 $-$-
2007 --
2008 --
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-59 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
d.Net Pension Obligation (Asset)(Continued)
The Village’s annual pension cost and net pension obligation (asset) fo r the current
year were as follows:
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Annual required contributions $591,185 $1,411,984 $1,611,299
Interest on net pension obligation 15,872 408,620 465,291
Adjustment to annual required contribution (12,546)(321,636)(366,242)
Annual pension cost 594,511 1,498,968 1,710,348
Contributions made 541,636 1,344,344 1,569,399
Increase (decrease) in net pension
obligation (asset)52,875 154,624 140,949
Net pension obligation (asset),
beginning of year 226,743 5,448,271 6,203,876
NET PENSION OBLIGATION (ASSET),
END OF YEAR $279,618 $5,602,895 $6,344,825
e.Trend Information
Trend information gives an indication of the progress made in accumulating sufficient
assets to pay benefit s when due.
Fiscal
Year
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Annual pension cost 2006 $490,051 $1,203,253 $1,476,513
(APC)2007 475,787 1,286,241 1,600,074
2008 594,511 1,498,968 1,710,348
Actual contribution 2006 $479,639 $657,032 $864,467
2007 324,483 1,030,738 1,262,030
2008 541,636 1,344,344 1,569,399
Percentage of APC 2006 97.88%54.60%58.55%
contributed 2007 68.20%80.14%78.87%
2008 91.11%89.68%91.76%
Net pension obligation 2006 $75,439 $5,192,768 $5,865,832
(asset)2007 226,743 5,448,271 6,203,876
2008 279,618 5,602,895 6,344,825
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-60 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
f.Funded Status and Funding Progress
The funded status and funding progress of the plans as of December 31, 2008 were as
fo llo ws:
Illinois
Municipal
Retirement
Sheriff’s
Law
Enforcement
Personnel
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Actuarial accrued liability (AAL)$1,210,009 $51,219 $12,950,501 $42,602,902 $40,983,075
Actuarial value of plan assets 1,024,049 69,127 8,227,160 24,888,311 22,131,755
Un funded actuarial accrued
liability (UAAL)185,960 (17,098)4,723,341 17,714,591 18,851,320
Funded ratio (actuarial value of
plan assets/AAL)84.63%134.96%63.53%58.42%54.00%
Covered payroll (active plan
members)$2,341,444 $121,625 $3,296,093 $3,420,380 $3,284,077
UAAL as a percentage of covered
payroll 7.94%(14.05%)143.30%517.91/%574.02%
g.Summary Financial Information
The following is summary financial information for the Municipal Employees’
Retirement, Police and Firefighters’pension plans.
Statement of Net Assets
Pension Trust Funds
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension Total
ASSETS
Cash and cash equivalents $-$1,697,925 $564,576 $2,262,501
Investments
Equity mutual funds -9,988,222 8,723,519 18,711,741
Government bond index fund -11,411,175 9,776,113 21,187,288
Annuity contracts 8,874,852 --8,874,852
Receivables
Accrued interest -89 919 1,008
Due from primary government 156,731 --156,731
Total assets 9,031,583 23,097,411 19,065,127 51,194,121
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-61 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
g.Summary Financial Information (Continued)
Statement of Net Assets (Continued)
Pension Trust Funds
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension Total
LIABILITIES
Accounts payable $-$2,825 $1,999 $4,824
Due to primary government -1,184,954 87,031 1,271,985
Total liabilities -1,187,779 89,030 1,276,809
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS $9,031,583 $21,909,632 $18,976,097 $49,917,312
Changes in Plan Net Assets
Pension Trust Funds
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension Total
ADDITIONS
Contributions
Employer $538,239 $1,344,344 $1,569,399 $3,451,982
Employee 56,512 349,279 334,791 740,582
Total contributions 594,751 1,693,623 1,904,190 4,192,564
Investment income
Net appreciation (depreciation) in
fair value of investments -(2,869,623)(3,277,983)(6,147,606)
Interest 433,357 401,731 242,542 1,077,630
Total investment income (loss)433,357 (2,467,892)(3,035,441)(5,069,976)
Less investment expense (30,804)(26,897)(29,081)(86,782)
Net investment income (loss)402,553 (2,494,789)(3,064,522)(5,156,758)
Total additions 997,304 (801,166)(1,160,332)(964,194)
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-62 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
g.Summary Financial Information (Continued)
Changes in Plan Net Assets (Continued)
Pension Trust Funds
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension Total
DEDUCTIONS
Retirement benefits $363,662 $1,835,236 $1,284,700 $3,483,598
Duty/nonduty disability benefits -69,158 481,181 550,339
Surviving spouse benefits -164,530 132,316 296,846
Refunds -28,109 -28,109
Administrative expenses -20,942 50,047 70,989
Total deductions 363,662 2,117,975 1,948,244 4,429,881
NET INCREASE (DECREASE)633,642 (2,919,141)(3,108,576)(5,394,075)
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS
January 1 8,397,941 24,828,773 22,084,673 55,311,387
December 31 $9,031,583 $21,909,632 $18,976,097 $49,917,312
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-63 -
15.PRIOR PERIOD ADJUSTMENTS
The Village has restated net assets as of January 1, 2008 as follows:
Governmental Funds
Government-
Wide
Major
Governmental
Funds -
General Fund
Major
Governmental
Funds -
Lehigh/Ferris
TIF Fund
Nonmajor
Governmental
Funds
Governmental
Activities
FUND BALANCES/NET ASSETS,
JANUARY 1 (as previously reported)$10,557,567 $14,099,959 $1,052,569 $35,975,302
Restated for:
To record IRMA excess surplus reserve at
December 31, 2007 642,879 --642,879
Accounting correction for underaccrual of
IDOT grant revenue 310,000 --310,000
Accounting correction for underaccrual of
economic development fees -(1,179,356)-(1,179,356)
Subtotal restatements 952,879 (1,179,356)-(226,477)
FUND BALANCES/NET ASSETS,
JANUARY 1, RESTATED $11,510,446 $12,920,603 $1,052,569 $35,748,825
16.SUBSEQUENT EVENT
The Village issued $7,650,000 of General Obligation Refunding Bonds, Series 2009 on
March 23, 2009 for the purpose of refunding the General Obligation Bonds, Series 1999
mat uring December 1, 2009 through December 1, 2014 and to pay the costs of issuing the
bonds. The bonds will mature in the amounts of $225,000 to $1,690,000 bearing interest of
1.00% to 2.60%.
17.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY
The financial statements of the Morton Grove Public Library (the Library) have been
prepared in conformity with accounting principles generally accepted in the United States of
America, as applied to government units (hereinafter referred to as generally accepted
accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB)
is t he accepted standard-setting body for establishing governmental accounting and financial
reporting principles. The more significant of the Library’s accounting policies are described
belo w.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-64 -
17.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
a.Fund Accounting
The Library uses funds to report on its financial position and the changes in its
financial position. 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. The
Library’s general fund is classified as a governmental fund.
b.Government-Wide Financial Statements
Governmental funds are used to account for all or most of a government’s general
activit ies, including the collection and disbursement of earmarked monies (special
revenue funds), the acquisition or construction of capital assets (capit al projects
funds) and the servicing of general long-term debt (debt service funds). The general
fund is the general operating fund of the Library and accounts for all of the Library’s
operating activities.
The government-wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the nonfiduciary activities of the
Library. The effect of material interfund activity has been eliminated from these
statements. Governmental activities, which normally are supported by taxes and
int ergovernmental 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 not properly included
amo ng program revenues are reported instead as general revenues.
c.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. Revenues are recorded when
earned and expenses are recorded when a liability is incurred. Property taxes are
recognized as revenues in the year for which they are levied (i.e., intended to finance).
Grants and similar it ems are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-65 -
17.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
c.Measurement Focus, Basis of Accounting and Financial Statement Presentation
(Continued)
The Library reports deferred and/or unearned revenue on its financial statements.
Deferred/unearned revenues arise when potential revenue does not meet both the
“measurable”and “available”or “earned”criteria for recognition in t he current
period. Deferred/unearned revenues also arise when resources are received by the
Library 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 Library has a legal claim to the resources,
the liabilit y fo r deferred/unearned revenue is removed and revenue is recognized.
d.Investments
Investments with a maturity greater than one year when purchased are stated at fair
value at December 31, 2008. Securities traded on national exchanges are at the last
reported sale price. Investments with a maturity of one year or less when purchased
are reported at cost or amortized cost.
e.Prepaid Items/Expenses
Payments made to vendors for services that will benefit periods beyond the date of
this report are recorded as prepaid items.
f.Capital Assets
Capital assets, which include property, plant, equipment and infrastructure, are
reported in t he applicable governmental activities columns in the government-wide
financial st atements. Capital assets are defined by the Library as assets with an initial,
individual cost of more than $5,000 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.
Major outlays fo r capital assets and improvements are capitalized as projects are
constructed. Property, plant and equipment is depreciated using the straight-line
met hod over the following estimated useful lives:
Assets Years
Buildings 5-50
Machinery and equipment 5-20
Artwork 10
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-66 -
17.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
g.Vacation Benefits
Vested or accumulated vacation and sick leave of governmental activities at the
entity-wide level is recorded as an expense and liability as the benefits accrue to
employees.
h.Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term
obligations are reported as liabilities in the governmental activities column. Bond
premiums and discounts, as well as issuance costs, are deferred and amortized over
the life o f t he bonds. Bonds payable are reported net of the applicable bond premium
or discount. Bond issuance costs are reported as deferred charges and amortized
over the term of the related debt.
i.Fund Balances/Net Assets
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted by
outside parties for use for a specific purpose. Designations of fund balance represent
tentative management plans that are subject to change. In the government-wide
financial st atements, restricted net assets are legally restricted by outside parties for a
specific purpose. None of the Library’s restricted net assets are restricted as a result
of enabling legislatio n adopted by the Village. Invested in capital assets, net of
related debt is the book value of the Library’s capital assets, net of any debt
outstanding that was issued to construct or acquire the capital assets.
j.Deposits and Investments
Permit ted Deposits and Investments -The Library’s investment policy authorizes the
Village to make deposits/invest in insured commercial banks, savings and loan
inst it utions, 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 t he 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 and Illinois Funds.
Illino is 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. Illino is Funds is not registered with the SEC as an investment
company, but does operate in a manner consistent with Rule 2a7 of the Investment
Company Act of 1940. Investments in Illinois Funds are valued at Illino is Fund’s
share price, the price for which the investment could be sold.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-67 -
17.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
j.Deposits and Investments (Continued)
It is the investment credit risk policy of the Library 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 Library and conforming to all state and
lo cal statutes governing the investment of public funds, using the “prudent person”
standard for managing the overall portfolio . The primary objective of the policy is
legalit y,safety (preservation of capital and protection of investment principal),
liquidit y and yield.
1.Deposits
Custodial credit risk for deposits with financial institutions is the risk that in the
event of a banks failure, the Library’s deposits may not be returned to it. The
Library’s investment policy requires pledging of collat eral with a fair value of
110% of all bank balances in excess of federal depository insurance. At
December 31, 2008, the Library had bank balances of $56,049 that were
uninsured and uncollateralized out of total bank balances of $372,793.
2.Investments
The following table presents the debt security investment s and maturities of the
Library’s investments as of December 31, 2008:
Investment Maturities (in Years)
Investment Type Fair Value Less than 1 1-5 6-10
Greater
than 10
Illinois Funds $1,734,250 $1,734,250 $-$-$-
TOTAL $1,734,250 $1,734,250 $-$-$-
In accordance with its investment policy, the Library limits its exposure to
int erest rate risk by structuring the portfolio so that securities mature
concurrent with cash needs. The investment policy limits the maximum
mat urity length of investments to five years from date of purchase, unless
specific authority is given to exceed. Investments in reserve funds other funds
may be purchased with maturities to match future projects or liability
requirements. In addition, the policy requires the Library to structure the
investment 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-68 -
17.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
j.Deposits and Investments (Continued)
2.Investments (Continued)
The Library limits it s exposure to credit risk, the risk that the issuer of a debt
security will not pay its par value upon maturity, by investing in Illino is Funds
or 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. Illinois Funds are rated AAA by
Standard and Poor’s.
Custodial credit risk for investments is t he risk that, in the event of the failure of
the counterparty to the investment, the Library will not be able to recover the
value of its investments that are in possession of an outside party. To limit its
exposure, the Library’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 Library’s agent separate from where the investment was purchased
or by the trust department of the bank where purchased, in the Library’s name.
Illino is Funds are not subject to custodial credit risk.
At December 31, 2008, the Library had greater than 5% of its overall portfolio
invested in Illinois Funds (100%) The investment policy does not include any
limit ations on individual investment types.
k.Property Taxes
Property taxes for 2008 attach as an enforceable lien on January 1, 2008, on property
values assessed as of the same date. Taxes are levied by December of the same fiscal
year (by passage of a tax levy ordinance). Taxes levied in one year become due and
payable in two installments, on or about March 1 or June 1 and September 1 of the
fo llo wing year.
Property taxes collected which are used to finance the current year’s operations are
recognized as revenue. Property taxes collected which are used to finance the
subsequent year’s operations, and net taxes receivable are reported as deferred
revenue.
Based upon collection histories, t he Library has provided an allowance for
uncollectible property taxes equivalent to 1% of the current year’s levy. All
uncollected taxes related to prior years’levies have been written off.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-69 -
17.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
l.Capital Assets
The following is a summary of capital asset activity during the fiscal year:
Beginning
Balances
January 1 Additions Retirements
Ending
Balances
December 31
GOVERNMENTAL ACTIVITIES
Capital assets not being depreciated
Land $79,000 $-$-$79,000
Total capital assets not being
depreciated 79,000 --79,000
Capital assets being depreciated
Buildings and improvements 1,589,209 --1,589,209
Equipment and vehicles 119,587 --119,587
Total capital assets being
depreciated 1,708,796 --1,708,796
Less accumulated depreciation for
Buildings and improvements 988,852 28,356 -1,017,208
Equipment and vehicles 64,320 9,320 -73,640
Total accumulated depreciation 1,053,172 37,676 -1,090,848
Total capital assets being
depreciated, net 655,624 (37,676)-617,948
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $734,624 $(37,676)$-$696,948
Depreciation expense was charged to functions/programs of the governmental activities as
fo llo ws:
GOVERNMENTAL ACTIVITIES
Culture and recreation $37,676
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-70 -
17.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
m.Long-Term Financing from Primary Government
1.Changes in Long-Term Debt
During the year ended December 31, 2008, the following changes occurred in
lo ng-term liabilit ies reported in the governmental activities:
Balances
January 1 Additions Reductions
Balances
December 31
Due Within
One Year
GOVERNMENTAL ACTIVITIES
Compensated absences payable $23,517 $27,999 $23,517 $27,999 $4,200
TOTAL GOVERNMENTAL
ACTIVITIES $23,517 $27,999 $23,517 $27,999 $4,200
REQUIRED SUPPLEMENTARY INFORMATION
Original Final 2007
Budget Budget Actual Actual
REVENUES
Sales taxes 6,000,000$ 6,000,000$ 5,453,839$ 6,065,498$
Property taxes 7,928,647 7,928,647 8,045,386 7,727,572
Personal property replacement tax 342,500 342,500 396,005 402,499
State income taxes 1,849,100 1,849,100 2,125,301 1,987,153
Telecommunications taxes 1,000,000 1,000,000 1,111,509 1,057,291
Utility taxes 1,197,000 1,197,000 1,206,890 1,213,165
Other taxes 1,547,400 1,547,400 1,328,852 1,497,351
Licenses and permits 1,147,050 1,147,050 1,115,215 1,194,285
Intergovernmental 95,000 95,000 110,463 239,227
Charges for services 540,700 540,700 841,040 848,564
Fines 304,500 304,500 281,457 327,835
Investment income 80,000 80,000 108,816 152,062
Cable TV franchise fees 190,000 190,000 224,026 215,606
Miscellaneous 133,000 133,000 262,690 264,832
Total revenues 22,354,897 22,354,897 22,611,489 23,192,940
EXPENDITURES
General government 3,864,334 3,864,334 3,829,837 3,176,009
Public safety 14,476,484 14,476,484 14,639,757 14,579,428
Streets and sidewalks 2,045,471 2,045,471 2,394,391 2,086,094
Sanitation 653,000 653,000 632,928 627,214
Vehicle maintenance 784,712 784,712 932,625 872,991
Health and human services 683,097 683,097 679,218 669,564
Community development 121,158 121,158 114,083 124,214
Buildings and inspection services 694,840 694,840 687,918 718,083
Total expenditures 23,323,096 23,323,096 23,910,757 22,853,597
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (968,199) (968,199) (1,299,268) 339,343
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 10,000 10,000 17,838 -
Transfers in
Waukegan Road TIF Fund 100,000 100,000 - 1,658,930
Transfers (out)
Debt Service Fund (137,162) (137,162) (137,162) (137,162)
Capital Projects Fund - - - (700,000)
Total other financing sources (uses)(27,162) (27,162) (119,324) 821,768
NET CHANGE IN FUND BALANCE (995,361)$ (995,361)$ (1,418,592) 1,161,111
FUND BALANCE, JANUARY 1 10,557,567 9,547,605
Prior period adjustment 952,879 (151,149)
FUND BALANCES, JANUARY 1, AS RESTATED 11,510,446 9,396,456
FUND BALANCE, DECEMBER 31 10,091,854$ 10,557,567$
2008
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, 2008
(with comparative actual for 2007)
(See independent auditor's report.)
- 71 -
Original
and Final 2007
Budget Actual Actual
REVENUES
Property taxes 1,900,000$ 2,457,263$ 1,836,582$
Intergovernmental 20,000 20,764 -
Investment income 25,000 213,507 209,740
Total revenues 1,945,000 2,691,534 2,046,322
EXPENDITURES
Current
Economic development
Commodities 1,000 760 375
Contractual services 2,815,750 1,661,088 149,140
Debt service
Principal retirement 195,000 195,000 195,000
Interest and fiscal charges 1,006,739 593,937 220,112
Issuance costs - - 101,800
Capital outlay 2,854,133 129,987 86,100
Total expenditures 6,872,622 2,580,772 752,527
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (4,927,622) 110,762 1,293,795
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 2,000,000 - 9,200,000
Premium on debt issuance - - 103,198
Total other financing sources (uses)2,000,000 - 9,303,198
NET CHANGE IN FUND BALANCE (2,927,622)$ 110,762 10,596,993
FUND BALANCE, JANUARY 1 14,099,959 3,502,966
PRIOR PERIOD ADJUSTMENT (1,179,356) -
FUND BALANCE, JANUARY 1, AS RESTATED 12,920,603 3,502,966
FUND BALANCE, DECEMBER 31 13,031,365$ 14,099,959$
2008
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, 2008
(with comparative actual for 2007)
(See independent auditor's report.)
- 72 -
Original
and Final 2007
Budget Actual Actual
REVENUES
Property taxes 640,000$ 783,827$ 680,779$
Investment income 20,000 16,033 89,662
Total revenues 660,000 799,860 770,441
EXPENDITURES
Capital outlay 30,000 4,245 -
Debt service
Principal 273,357 273,670 246,540
Interest and fiscal charges 323,863 323,630 334,482
Total expenditures 597,220 601,545 581,022
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 62,780 198,315 189,419
OTHER FINANCING SOURCES (USES)
Transfers (out)
General Fund (70,000) - (1,658,930)
Total other financing sources (uses)(70,000) - (1,658,930)
NET CHANGE IN FUND BALANCE (7,220)$ 198,315 (1,469,511)
FUND BALANCE (DEFICIT), JANUARY 1 (1,301,734) 167,777
FUND BALANCE (DEFICIT), DECEMBER 31 (1,103,419)$ (1,301,734)$
2008
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, 2008
(with comparative actual for 2007)
(See independent auditor's report.)
- 73 -
(2)
Actuarial (4)UAAL
Accrued Unfunded As a
(1)Liability (3)AAL Percentage
Actuarial Actuarial (AAL)Funded (UAAL)(5)of Covered
Valuation Value of - Projected Ratio (OAAL)Covered Payroll
Date Assets Union Credit (1) / (2) (2) - (1)Payroll (4) / (5)
December 31, 2005 169,617$ 367,161$ 46.20%197,544$ 1,413,984$ 13.97%
December 31, 2006 392,234 658,337 59.58%266,103 1,893,420 14.05%
December 31, 2007 686,404 1,089,570 63.00%403,166 2,152,563 18.73%
December 31, 2008 1,024,049 1,210,009 84.63%185,960 2,341,444 7.94%
Note: The Village became a member of the Illinois Municipal Retirement Fund as of January 1, 2005.
December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
ILLINOIS MUNICIPAL RETIREMENT FUND
(See independent auditor's report.)
- 74 -
(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
January 1 Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
2007 43,027$ 19,143$ 224.77%(23,884)$ 118,013$ (20.24%)
2008 69,127 51,219 134.96%(17,908) 121,625 (14.72%)
Information for prior years is not available as the Village's first actuarial valuation was performed January 1, 2007.
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
SHERRIFF'S LAW ENFORCEMENT PERSONNEL PLAN
December 31, 2008
(See independent auditor's report.)
- 75 -
(2)
Actuarial (4)UAAL
Accrued Unfunded As a
(1)Liability (3)AAL Percentage
Actuarial Actuarial (AAL)Funded (UAAL)(5)of Covered
Valuation Value of Projected Ratio (OAAL)Covered Payroll
Date Assets Union Credit (1) / (2) (2) - (1)Payroll (4) / (5)
December 31, 2003 6,432,775$ 8,875,271$ 72.48%2,442,496$ 4,172,285$ 58.54%
December 31, 2004 7,034,296 10,820,213 65.01%3,785,917 4,134,234 91.57%
December 31, 2005 7,453,815 11,557,380 64.49%4,103,565 3,445,280 119.11%
December 31, 2006 7,980,202 12,316,905 64.79%4,336,703 3,338,593 129.90%
December 31, 2007 8,227,160 12,950,501 63.53%4,723,341 3,296,093 143.30%
December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
MUNICIPAL EMPLOYEES' RETIREMENT FUND
(See independent auditor's report.)
- 76 -
(2)(4)UAAL
Actuarial Unfunded As a
(1)Accrued (3)AAL Percentage
Actuarial Actuarial Liability Funded (UAAL)(5)of Covered
Valuation Value of (AAL)Ratio (OAAL)Covered Payroll
Date Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
December 31, 2003 23,989,319$ 32,307,130$ 74.25%8,317,811$ 2,942,769$ 282.65%
December 31, 2004 24,408,665 33,877,037 72.05%9,468,372 3,060,569 309.37%
December 31, 2005 24,537,149 35,387,217 69.34%10,850,068 3,073,724 352.99%
December 31, 2006 24,738,180 37,039,032 66.79%12,300,852 3,003,614 409.54%
December 31, 2007 25,244,202 39,185,747 64.42%13,941,545 3,411,419 408.67%
December 31, 2008 24,888,311 42,602,902 58.42%17,714,591 3,420,380 517.91%
December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
POLICE PENSION FUND
(See independent auditor's report.)
- 77 -
(2)UAAL
Actuarial (4)As a
(1)Accrued (3)Unfunded Percentage
Actuarial Actuarial Liability Funded AAL (5)of Covered
Valuation Value of (AAL)Ratio (UAAL)Covered Payroll
Date Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
December 31, 2003 18,053,798$26,887,698$67.15%8,833,900$ 2,878,649$ 306.88%
December 31, 2004 18,741,709 31,724,170 59.08%12,982,461 3,132,444 414.45%
December 31, 2005 19,775,596 33,208,365 59.55%13,432,769 3,067,613 437.89%
December 31, 2006 20,846,032 35,305,400 59.04%14,459,368 3,213,432 449.97%
December 31, 2007 22,065,783 37,994,154 58.08%15,928,371 3,135,530 508.00%
December 31, 2008 22,131,755 40,983,075 54.00%18,851,320 3,284,077 574.02%
December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
FIREFIGHTERS' PENSION FUND
(See independent auditor's report.)
- 78 -
(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
January 1 Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5)
2007 -$ 10,483,403$ 0.00%10,483,403$ 10,113,914$ 1.04%
2008 - 11,154,462 0.00%11,154,462 10,518,471 1.06%
Information for prior years is not available as the Village's first actuarial valuation was performed January 1, 2007.
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
OTHER POSTEMPLOYMENT BENEFITS PLAN
December 31, 2008
(See independent auditor's report.)
- 79 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
2005 121,744$ 121,744$ 100.00%
2006 163,023 163,023 100.00%
2007 198,251 198,251 100.00%
2008 215,881 215,881 100.00%
Note: The Village became a member of the Illinois Municipal Retirement Fund as of January 1,
2005.
December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
ILLINOIS MUNICIPAL RETIREMENT FUND
(See independent auditor's report.)
- 80 -
Annual
Required
Fiscal Employer Contribution Percentage
Year Contributions (ARC)Contributed
2007 14,940$ 14,940$ 100.00%
2008 15,033 15,033 100.00%
Information for prior years is not available as the Village's first actuarial valuation was
performed January 1, 2008.
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
SHERRIFF'S LAW ENFORCMENT PERSONNEL PLAN
December 31, 2008
(See independent auditor's report.)
- 81 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
2003 400,369$ 395,237$ 101.30%
2004 395,036 379,964 103.97%
2005 390,098 497,107 78.47%
2006 479,639 488,924 98.10%
2007 324,483 474,576 68.37%
2008 541,636 591,185 91.62%
December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
MUNICIPAL EMPLOYEES' RETIREMENT FUND
(See independent auditor's report.)
- 82 -
Annual
Required
Calendar Employer Contribution Percentage
Periods Contributions (ARC)Contributed
December 31, 2003 251,356$ 840,319$ 29.91%
December 31, 2004 376,618 912,292 41.28%
December 31, 2005 456,146 1,011,720 45.09%
December 31, 2006 657,032 1,116,423 58.85%
December 31, 2007 1,030,738 1,195,986 86.18%
December 31, 2008 1,344,344 1,411,984 95.21%
December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
POLICE PENSION FUND
(See independent auditor's report.)
- 83 -
Annual
Required
Calendar Employer Contribution Percentage
Periods Contributions (ARC)Contributed
December 31, 2003 326,853$ 869,807$ 37.58%
December 31, 2004 400,775 987,469 40.59%
December 31, 2005 501,787 1,341,737 37.40%
December 31, 2006 864,467 1,378,335 62.72%
December 31, 2007 1,262,030 1,498,121 84.24%
December 31, 2008 1,569,399 1,611,299 97.40%
December 31, 2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FIREFIGHTERS' PENSION FUND
(See independent auditor's report.)
- 84 -
Annual
Required
Fiscal Employer Contribution Percentage
Year Contributions (ARC)Contributed
2007 363,335$ 932,595$ 39.00%
2008 292,603 978,885 29.90%
Information for prior years is not available as the Village's first actuarial valuation was
performed January 1, 2007.
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
OTHER POSTEMPLOYMENT BENEFITS PLAN
December 31, 2008
(See independent auditor's report.)
- 85 -
-86 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2008
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 le vel) for the General, Special
Revenue, Debt Service, Capital Projects Funds on the modified accrual basis and for the
Enterprise and Pensio n Trust Funds on the accrual basis. The annual appropriated budget
is legally enacted and provides for a legal level of control at the department level for the
General Fund and at the fund level for all other funds. All annual appropriations lapse at
fiscal year end.
All departments of the Village submit requests for appropriation to the Village’s
administrator so that a budget may be prepared. The budget is prepared by fund and
includes informat io n on the past year, current year estimates, and requested appropriat io ns
fo r the next fiscal year. All annual appropriat io ns lapse at fiscal year end.
The proposed budget is presented to the governing body for review. The governing body
ho lds public hearings and may add to, subtract from or change appropriatio ns, 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 appropriat io ns at the fund level. There were no budget
amendments made during the year.
b.Excess of Actual Expenditures/Expenses over Budget in Individual Funds
The fo llo wing funds had an excess of actual expenditures/expenses (exclusive of
depreciat io n and amortizat io n) over budget for the fiscal year:
Fund Excess
General $587,661
Waukegan Road Tax Increment Financing Fund 4,325
9-1-1 Emergency Telephone System Fund 6,384
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (Continued)
-87 -
LEGAL COMPLIANCE AND ACCOUNTABILITY (Continued)
b.Excess of Actual Expenditures/Expenses over Budget in Individual Funds (Continued)
The fo llo wing departments in the General Fund had an excess of actual expenditures over
budget for the fiscal year:
Department Excess
Finance $179,646
Management Informat io n S ystems 65,562
Police 136,484
Fire 31,335
Streets and Sidewalks 342,538
Engineering 6,392
Vehicle Maintenance 147,913
Municipal Buildings 4,362
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
GENERAL FUND
The General Fund is used to account for resources traditionally associated with governments
which are not required to be accounted for in another fund. It receives a greater variety and
amount of revenues and finances a wider range of governmental act ivit ie s than any other fund.
Major functions financed by the General Fund include:
Legislat ive Ad ministrative
Legal Finance
Management Informat io n S ystems Police
Fire/ESDA Public Works
Vehicle Maintenance Solid Waste Disposal
Health and Human Services Communit y D evelopment
Building and Inspectional Services
DEBT SERVICE FUND
The Debt Service Fund accounts for monies accumulated to pay for the payment of general long -
term debt principal, interest and related costs. The Debt Service Fund accounts for the payments
of all long-term debt incurred by the Village, except for the Water Revenue Bonds and various
installment notes, which are accounted for in the Proprietary Fund. A descript io n of the Debt
Service Fund is as fo llo ws:
Includes the 1999 Corporate Purpose General Obligation Bond Issue, the Illinois
Environmental Protection Agency revo lving line of credit for the Capulina and Parkview
sewer relief pro jects, the General Obligation Bank Promissory Note, the tax-exempt and
taxable bank notes and various installment notes on major pieces of equipment.
Original Final 2007
Budget Budget Actual Actual
GENERAL GOVERNMENT
Legislative
Personal services 75,500$ 75,500$ 82,732$ 74,403$
Contractual services 36,325 36,325 21,775 28,107
Commodities 2,500 2,500 1,129 2,487
Total legislative 114,325 114,325 105,636 104,997
Administrative
Personal services 583,448 583,448 529,073 556,424
Contractual services 39,375 39,375 20,859 25,680
Commodities 3,000 3,000 2,303 2,851
Total administrative 625,823 625,823 552,235 584,955
Finance
Personal services 1,044,641 1,044,641 1,157,962 808,083
Contractual services 1,165,400 1,165,400 1,239,560 1,047,264
Commodities 20,000 20,000 12,165 11,602
Total finance 2,230,041 2,230,041 2,409,687 1,866,949
Management information services
Professional services 114,061 114,061 114,092 96,859
Contractual services 280,884 280,884 273,463 225,036
Capital outlay 68,700 68,700 141,652 105,651
Total management information services 463,645 463,645 529,207 427,546
Legal
Contractual services 272,500 272,500 113,639 221,543
Other expenditures
Health insurance assessment - - - 58,089
Other 158,000 158,000 119,433 (88,070)
Total other expenditures 158,000 158,000 119,433 (29,981)
Total general government 3,864,334 3,864,334 3,829,837 3,176,009
2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended December 31, 2008
(with comparative actual for 2007)
(This schedule is continued on the following pages.)
- 88 -
Original Final 2007
Budget Budget Actual Actual
PUBLIC SAFETY
Police
Personal services 6,608,059$ 6,608,059$ 6,907,445$ 6,637,157$
Contractual services 906,434 906,434 824,623 804,518
Commodities 111,898 111,898 56,825 116,476
Capital outlay 161,800 161,800 135,782 120,200
Total police 7,788,191 7,788,191 7,924,675 7,678,351
Fire
Personal services 6,308,165 6,308,165 6,355,312 6,425,059
Contractual services 266,903 266,903 261,029 273,824
Commodities 100,064 100,064 90,126 88,719
Capital outlay - - - 55,578
Total fire 6,675,132 6,675,132 6,706,467 6,843,180
Civil preparedness
Personal services 1,292 1,292 1,292 1,392
Contractual services 6,019 6,019 3,123 4,003
Commodities 3,350 3,350 4,200 3,006
Capital outlay 2,500 2,500 - 49,496
Total civil preparedness 13,161 13,161 8,615 57,897
Total public safety 14,476,484 14,476,484 14,639,757 14,579,428
STREETS AND SIDEWALKS
Streets and sidewalks
Personal services 1,583,625 1,583,625 1,629,127 1,569,384
Contractual services 271,300 271,300 281,467 265,891
Commodities 101,850 101,850 401,259 124,878
Capital outlay 139,200 139,200 126,650 196,448
Less administrative fees
Motor Fuel Tax Fund (295,000) (295,000) (295,000) (295,000)
Commuter Parking Facility Fund (80,000) (80,000) (80,000) (83,895)
Total streets and sidewalks 1,720,975 1,720,975 2,063,503 1,777,706
Engineering
Personal services 304,646 304,646 303,141 290,175
Contractual services 17,150 17,150 25,283 15,991
Commodities 2,700 2,700 2,464 2,222
Total engineering 324,496 324,496 330,888 308,388
Total streets and sidewalks 2,045,471 2,045,471 2,394,391 2,086,094
2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended December 31, 2008
(with comparative actual for 2007)
(This schedule is continued on the following pages.)
- 89 -
Original Final 2007
Budget Budget Actual Actual
2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended December 31, 2008
(with comparative actual for 2007)
SANITATION
Services and charges 773,000$ 773,000$ 752,928$ 746,328$
Commodities - - - 886
Less administrative fees
Water and Sewer Fund (120,000) (120,000) (120,000) (120,000)
Total sanitation 653,000 653,000 632,928 627,214
VEHICLE MAINTENANCE
Personal services 333,212 333,212 365,098 343,676
Contractual services 65,200 65,200 46,677 81,906
Commodities 386,300 386,300 520,850 447,409
Total vehicle maintenance 784,712 784,712 932,625 872,991
HEALTH AND HUMAN SERVICES
Family and Senior Services
Personal services 530,800 530,800 532,351 525,993
Contractual services 128,647 128,647 128,592 123,849
Commodities 23,650 23,650 18,275 19,722
Total health and human services 683,097 683,097 679,218 669,564
COMMUNITY DEVELOPMENT
Personal services 107,133 107,133 108,382 114,578
Contractual services 13,025 13,025 4,841 9,208
Commodities 1,000 1,000 860 428
Total community development 121,158 121,158 114,083 124,214
BUILDING AND INSPECTION SERVICES
Building and Inspectional Services
Personal services 483,500 483,500 472,384 507,167
Contractual services 10,985 10,985 12,023 15,403
Commodities 2,450 2,450 1,244 3,511
Total building and inspectional services 496,935 496,935 485,651 526,081
(This schedule is continued on the following page.)
- 90 -
Original Final 2007
Budget Budget Actual Actual
2008
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended December 31, 2008
(with comparative actual for 2007)
BUILDING AND INSPECTION SERVICES (Continued)
Municipal Buildings
Personal services 16,150$ 16,150$ 10,176$ 12,232$
Contractual services 141,530 141,530 160,838 169,403
Commodities 5,125 5,125 6,077 4,098
Capital outlay 35,100 35,100 25,176 6,269
Total municipal buildings 197,905 197,905 202,267 192,002
Total building and inspection services 694,840 694,840 687,918 718,083
TOTAL EXPENDITURES 23,323,096$ 23,323,096$ 23,910,757$ 22,853,597$
(See independent auditor's report.)
- 91 -
Final 2007
Budget Actual Actual
REVENUES
Property taxes 1,007,063$ 1,069,980$ 1,060,747$
Sales taxes 440,000 440,000 474,996
Investment income 35,000 23,002 90,349
Total revenues 1,482,063 1,532,982 1,626,092
EXPENDITURES
Principal retirement 1,232,374 1,232,416 1,498,663
Interest and fiscal charges 387,449 386,792 444,746
Total expenditures 1,619,823 1,619,208 1,943,409
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (137,760) (86,226) (317,317)
OTHER FINANCING SOURCES (USES)
Transfers in 137,162 137,162 137,162
NET CHANGE IN FUND BALANCE (598)$ 50,936 (180,155)
FUND BALANCE, JANUARY 1 417,525 597,680
FUND BALANCE, DECEMBER 31 468,461$ 417,525$
2008
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, 2008
(with comparative actual for 2007)
(See independent auditor's report.)
- 92 -
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other
than expendable trusts or for major capital projects) that are legally restricted to expenditures for
specific purposes. Seven individual funds are reported within the Special Revenue Funds as
fo llo ws:
Motor Fuel Tax Fund -accounts for monies received fro m t he State levied tax on the sale of
fuels and the expenditures for capitalized construction, improvements or general ma int enance
to the Village roadway system.
Commuter Parking Facilit y Fund -accounts for the cost of major improvements and general
maintenance to the commuter parking facility on Lehigh Avenue. Revenues are primarily
received fro m t he daily parking fee imposed on the users of the facilit y.
9-1-1 Emergency Telephone System Fund -accounts for telephone surcharge fees collected
fo r the 9-1-1 emergency telephone system. The funds are to be disbursed for the purchase
and subsequent maintenance of t hat 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 exist ing TIF but whose redevelopment is not direct ly
within a TIF established district.
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. When there is a bond issue used to finance a specific capital project,
the proceeds accounting for the expenditures of that project will be separately accounted for in
this section. The descript io n of the Capital Pro jects Fund is as fo llo ws:
Capital Projects Fund -accounts for property taxes levied and other resources accumulated
primarily for major infrastructure and other capital improvements. During calendar year
2001, major expenditures included the local street resurfacing projects, which included both
Dempster Road and Beckwith Street, a neighborhood street lighting project, and an alley
paving program.
9-1-1
Commuter Emergency Total
Motor Parking Telephone Economic Capital Nonmajor
Fuel Tax Facility System Development Projects Governmental
Fund Fund Fund Fund Fund Funds
Cash and cash equivalents 40,768$ 133,928$ 74,919$ 375,385$ 979,204$ 1,604,204$
Investments - - - 90,733 - 90,733
Property taxes receivable - net - - - - 312,314 312,314
Sales tax receivable - - - 80,593 31,912 112,505
Accounts, miscellaneous and
allotments receivable 53,195 - 105,481 - 7,343 166,019
Due from other funds 2,252 - - - - 2,252
TOTAL ASSETS 96,215$ 133,928$ 180,400$ 546,711$ 1,330,773$ 2,288,027$
LIABILITIES
Accounts payable and retainage payable 21,484$ 674$ -$ 291,254$ 95,344$ 408,756$
Deferred property tax revenue - - - - 307,455 307,455
Due to other funds 39,004 - - - 377,477 416,481
Total liabilities 60,488 674 - 291,254.00 780,276 1,132,692
FUND BALANCES
Reserved for public safety - - 180,400 - - 180,400
Reserved for community development - - - 255,457 - 255,457
Reserved for capital projects - - - - 550,497 550,497
Reserved for highways and streets 35,727 - - - - 35,727
Unreserved, undesignated - 133,254 - - - 133,254
Total fund balances (deficit)35,727 133,254 180,400 255,457 550,497 1,155,335
TOTAL LIABILITIES AND
FUND BALANCES 96,215$ 133,928$ 180,400$ 546,711$ 1,330,773$ 2,288,027$
ASSETS
LIABILITIES AND FUND BALANCES
Special Revenue Funds
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2008
See accompanying notes to financial statements.
- 93 -
9-1-1
Commuter Emergency Total
Motor Parking Telephone Economic Capital Nonmajor
Fu el Tax Facility System Development Projects Governmental
Fu nd Fu nd Fu nd Fu nd Fu nd Fu nds
REVENUES
Property taxes -$ -$ -$ -$ 381,495$ 381,495$
Personal property replacement tax - - - - 38,609 38,609
Sales taxes - - - 312,000 165,000 477,000
Intergovernmental 589,619 - - - 34,964 624,583
Surcharge fees - - 293,273 - - 293,273
Charges for services - 141,002 - - - 141,002
Investment income 5,160 2,662 1,437 9,372 13,880 32,511
Miscellaneous revenue 9,555 - - - 356,182 365,737
Total revenues 604,334 143,664 294,710 321,372 990,130 2,354,210
EXPENDITURES
Current
Public safety - - 238,384 - - 238,384
Streets and sidewalks 682,385 159,548 - - - 841,933
Community development - - - 271,254 - 271,254
Capital outlay - - - - 899,873 899,873
Total expenditures 682,385 159,548 238,384 271,254 899,873 2,251,444
NET CHANGE IN FUND BALANCES (78,051) (15,884) 56,326 50,118 90,257 102,766
FUND BALANCES, JANUARY 1 113,778 149,138 124,074 205,339 460,240 1,052,569
FUND BALANCES, DECEMBER 31 35,727$ 133,254$ 180,400$ 255,457$ 550,497$ 1,155,335$
For the Year Ended December 31, 2008
Special Revenue Funds
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
See accompanying notes to financial statements.
- 94 -
Final 2007
Budget Actual Actual
REVENUES
Intergovernmental
Motor fuel taxes 648,032$ 589,619$ 641,326$
Investment income 10,000 5,160 19,583
Miscellaneous revenue - 9,555 -
Total revenues 658,032 604,334 660,909
EXPENDITURES
Streets and sidewalks
Materials 533,200 324,646 472,690
Lighting 70,000 62,739 68,631
Administ rative fees
General Fund 295,000 295,000 295,000
Total expenditures 898,200 682,385 836,321
NET CHANGE IN FUND BALANCE (240,168)$ (78,051) (175,412)
FUND BALANCE, JANUARY 1 113,778 289,190
FUND BALANCE, DECEMBER 31 35,727$ 113,778$
2008
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, 2008
(with comparative actual for 2007)
(See independent auditor's report.)
- 95 -
Final 2007
Budget Actual Actual
REVENUES
Charges for services 115,000$ 141,002$ 134,794$
Investment income 5,000 2,662 5,381
Total revenues 120,000 143,664 140,175
EXPENDITURES
Streets and sidewalks
Utilit ies and maintenance
of street light ing 55,000 56,856 2,063
Commo dit ies 16,700 14,692 9,502
Administ rative fees
General Fund 80,000 80,000 83,895
Water and Sewer Fund 8,000 8,000 10,000
Total expenditures 159,700 159,548 105,460
NET CHANGE IN FUND BALANCE (39,700)$ (15,884) 34,715
FUND BALANCE, JANUARY 1 149,138 114,423
FUND BALANCE, DECEMBER 31 133,254$ 149,138$
2008
(with comparative actual for 2007)
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, 2008
(See independent auditor's report.)
- 96 -
Final 2007
Budget Actual Actual
REVENUES
Telecommunications taxes 231,000$ 293,273$ 239,671$
Investment income 300 1,437 352
Total revenues 231,300 294,710 240,023
EXPENDITURES
Public safety
Contractual services 232,000 238,384 230,452
Total expenditures 232,000 238,384 230,452
NET CHANGE IN FUND BALANCE (700)$ 56,326 9,571
FUND BALANCE, JANUARY 1 124,074 89,781
Prior period adjustment - 24,722
FUND BALANCE, JANUARY 1,
AS RESTATED 124,074 114,503
FUND BALANCE, DECEMBER 31 180,400$ 124,074$
2008
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, 2008
(with comparative actual for 2007)
(See independent auditor's report.)
- 97 -
Final 2007
Budget Actual Actual
REVENUES
Sales taxes 312,000$ 312,000$ 323,556$
Investment income 5,000 9,372 14,260
Total revenues 317,000 321,372 337,816
EXPENDITURES
Community development
Contractual services 291,253 271,254 331,557
Capital outlay 25,000 - -
Total expenditures 316,253 271,254 331,557
NET CHANGE IN FUND BALANCE 747$ 50,118 6,259
FUND BALANCE, JANUARY 1 205,339 174,080
Prior period adjustment - 25,000
FUND BALANCE, JANUARY 1,
AS RESTATED 205,339 199,080
FUND BALANCE, DECEMBER 31 255,457$ 205,339$
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
2008
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT FUND
For the Year Ended December 31, 2008
(with comparative actual for 2007)
(See independent auditor's report.)
- 98 -
Original
and Final 2007
Budget Actual Actual
REVENUES
Property taxes 378,000$ 381,495$ 371,807$
Personal property replacement tax 30,000 38,609 39,193
Sales taxes 165,000 165,000 197,570
Intergovernmental - 34,964 295,876
Investment income - 13,880 38,657
Miscellaneous revenue - 356,182 -
Total revenues 573,000 990,130 943,103
EXPENDITURES
Capital outlay
Local street resurfacing
Construction 982,709 562,818 1,545,100
Engineering - - 31,421
Dempster Street corridor improvements
Construction 548,687 337,055 362,950
Total expenditures 1,531,396 899,873 1,939,471
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (958,396) 90,257 (996,368)
OTHER FINANCING SOURCES (USES)
Transfers in - - 700,000
NET CHANGE IN FUND BALANCE (958,396)$ 90,257 (296,368)
FUND BALANCE, JANUARY 1 460,240 756,608
FUND BALANCE, DECEMBER 31 550,497$ 460,240$
2008
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, 2008
(with comparative actual for 2007)
(See independent auditor's report.)
- 99 -
FIDUCIARY FUNDS
PENSION TRUST FUNDS
Municipal Emplo yees’ Ret ir ement Fund -accounts for the accumulat io n of resources to be used
fo r retirement and disabilit y pensions for the Village’s municipal employees.
Police Pensio n Fund -accounts for the accumulat ion of resources to be used for retirement and
disability pensio ns for the Village’s sworn police personnel. Most rules and regulat io ns of the
fund are established by the pensio n divisio n o f t he Illino is Department of Insurance.
Firefighters’ Pension Fund -accounts fo r the accumulat io n of resources to be used for retirement
and disabilit y pensio ns fo r the Village’s sworn fire personnel. Most rules and regulat io ns of the
fund are established by the pensio n divisio n o f t he Illino is Department of Insurance.
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF PLAN NET ASSETS
PENSION TRUST FUNDS
December 31, 2008
Municipal
Employees' Police Firefighters'
Retirement Pension Pension Total
Cash and cash equivalents -$ 1,697,925$ 564,576$ 2,262,501$
Investments, at fair value
Equity mutual funds - 9,988,222 8,723,519 18,711,741
Bond index fund - 11,411,175 9,776,113 21,187,288
Annuity contracts 8,874,852 - - 8,874,852
Receivables
Accrued interest - 89 919 1,008
Due from primary government 156,731 - - 156,731
Total assets 9,031,583 23,097,411 19,065,127 51,194,121
LIABILITIES
Accounts payable - 2,825 1,999 4,824
Due to primary government - 1,184,954 87,031 1,271,985
Total liabilities - 1,187,779 89,030 1,276,809
NET ASSETS HELD IN TRUST FOR
PENSION BENEFITS 9,031,583$ 21,909,632$ 18,976,097$ 49,917,312$
ASSETS
See accompanying notes to financial statements.
- 100 -
Municipal
Employees' Police Firefighters'2007
Retirement Pension Pension Total Actual
ADDITIONS
Contributions
Employer 538,239$ 1,344,344$ 1,569,399$ 3,451,982$ 2,915,271$
Employee 56,512 349,279 334,791 740,582 712,304
Total contributions 594,751 1,693,623 1,904,190 4,192,564 3,627,575
Investment income
Net appreciation (depreciation) in
fair value of investments - (2,869,623) (3,277,983) (6,147,606) 1,301,696
Interest 433,357 401,731 242,542 1,077,630 1,837,376
Total investment income 433,357 (2,467,892) (3,035,441) (5,069,976) 3,139,072
Less investment expense (30,804) (26,897) (29,081) (86,782) (86,526)
Net investment income 402,553 (2,494,789) (3,064,522) (5,156,758) 3,052,546
Miscellaneous - - - - 100
Total additions 997,304 (801,166) (1,160,332) (964,194) 6,680,221
DEDUCTIONS
Retirement benefits 363,662 1,835,236 1,284,700 3,483,598 3,346,318
Duty/nonduty disability benefits - 69,158 481,181 550,339 462,855
Surviving spouse benefits - 164,530 132,316 296,846 254,836
Refunds - 28,109 - 28,109 55,614.00
Administrative expenses - 20,942 50,047 70,989 104,998
Total deductions 363,662 2,117,975 1,948,244 4,429,881 4,224,621
NET INCREASE (DECREASE)633,642 (2,919,141) (3,108,576) (5,394,075) 2,455,600
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS
January 1 8,397,941 24,828,773 22,084,673 55,311,387 52,855,787
December 31 9,031,583$ 21,909,632$ 18,976,097$ 49,917,312$ 55,311,387$
2008
(with comparative actual for 2007)
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUNDS
For the Year Ended December 31, 2008
See accompanying notes to financial statements.
- 101 -
COMPONENT UNIT -PUBLIC LIBRARY
COMPONENT UNIT
Refer to Note 1 for descript io n of the component unit and the criteria for component unit
classificiat io n.
VILLAGE OF MORTON GROVE, ILLINOIS
COMPONENT UNIT - PUBLIC LIBRARY
STATEMENT OF NET ASSETS AND BALANCE SHEET
December 31, 2008
Balance Statement of
Sheet Adjustments Net Assets
Cash and cash equivalents 2,029,129$ -$ 2,029,129$
Investments - - -
Receivables
Property taxes receivable - net 2,747,775 - 2,747,775
Grants 27,400 - 27,400
Prepaids 40,644 - 40,644
Capital assets, not being depreciated - 79,000 79,000
Capital assets, net of depreciation - 617,948 617,948
TOTAL ASSETS 4,844,948$ 696,948$ 5,541,896$
LIABILITIES
Accounts payable 15,446$ -$ 15,446$
Salaries and wages payable 47,394 - 47,394
Unearned/deferred property tax revenue 2,714,843 - 2,714,843
Noncurrent liabilities
Due with in one year - 3,570 3,570
Due in more than one year - 20,228 20,228
Total liabilities 2,777,683 23,798 2,801,481
FUND BALANCE/NET ASSETS
Net assets invested in capital assets - 696,948 696,948
Reserved for prepaids 40,644 (40,644) -
Reserved for culture and recreation 2,026,621 16,846 2,043,467
Total fund balance 2,067,265 673,150 2,740,415
TOTAL LIABILITIES AND
FUND BALANCE 4,844,948$ 696,948$ 5,541,896$
ASSETS
LIABILITIES AND FUND BALANCE
See accompanying notes to financial statements.
- 102 -
Original and Statement
Final of
Budget Actual Adjustments Activities
REVENUES
Taxes 2,518,364$ 2,561,518$ -$ 2,561,518$
Intergovernmental 27,500 38,450 - 38,450
Charges for services 9,700 8,255 - 8,255
Fines 26,800 33,569 - 33,569
Investment income 60,000 31,894 - 31,894
Miscellaneous - 3,359 - 3,359
Total revenues 2,642,364 2,677,045 - 2,677,045
EXPENDITURES
Current
Culture and recreation 2,732,364 2,541,893 42,157 2,584,050
Total expenditures 2,732,364 2,541,893 42,157 2,584,050
NET CHANGE IN FUND BALANCE (90,000)$ 135,152 (42,157) 92,995
FUND BALANCE/NET ASSETS, JANUARY 1 1,932,113 711,107 2,643,220
FUND BALANCE/NET ASSETS, DECEMBER 31 2,067,265$ 668,950$ 2,736,215$
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
2008
VILLAGE OF MORTON GROVE, ILLINOIS
COMPONENT UNIT - PUBLIC LIBRARY
SCHEDULE OF REVENUES, EXPENDITURES
(See independent auditor's report.)
- 103 -
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.104-109
Revenue Capacity
These schedules contain information to help the reader assess the Village’s
mo st 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 abilit y
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
activit ies 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 fo r the relevant year. The Village implement ed GASB
Statement No. 34 in 2004; schedules presenting government-wide information include information
beginning in t hat year.
Fiscal Year 2004 2005 2006 2007 2008
GOVERNMENTAL ACTIVITIES
Invested in capital assets
ne t of related debt 46,999,596$ 46,920,287$ 49,824,312$ 50,519,769$ 46,369,992$
Restricted 1,886,226 2,758,495 1,618,149 1,320,956 1,490,542
Unrestricted (19,709,344) (18,915,303) (16,684,584) (15,865,423) (12,451,299)
TOTAL GOVERNMENTAL ACTIVITIES 29,176,478$ 30,763,479$ 34,757,877$ 35,975,302$ 35,409,235$
BUSINESS-TYPE ACTIVITIES
Invested in capital assets
ne t of related debt 213,526$ 291,090$ 431,305$ 779,852$ 1,194,967$
Restricted - - - - -
Unrestricted 526,266 1,298,434 1,518,474 1,557,185 1,396,375
TOTAL BUSINESS-TYPE ACTIVITIES 739,792$ 1,589,524$ 1,949,779$ 2,337,037$ 2,591,342$
PRIMARY GOVERNMENT
Invested in capital assets
ne t of related debt 47,213,122$ 47,211,377$ 50,255,617$ 51,299,621$ 47,564,959$
Restricted 1,886,226 2,758,495 1,618,149 1,320,956 1,490,542
Unrestricted (19,183,078) (17,616,869) (15,166,110) (14,308,238) (11,054,924)
TOTAL PRIMARY GOVERNMENT 29,916,270$ 32,353,003$ 36,707,656$ 38,312,339$ 38,000,577$
Data Source
Audited Financial Statements
Last Five Fiscal Years
NET ASSETS BY COMPONENT
VILLAGE OF MORTON GROVE, ILLINOIS
- 104 -
Fiscal Year 2004 2005 2006 2007 2008
EXPENSES
Governmental activities
General government 4,343,440$ 3,246,565$ 3,556,886$ 4,390,997$ 4,587,340$
Public safety 13,554,378 13,301,334 13,752,166 14,558,399 15,324,442
Streets and highways 2,858,425 3,349,491 3,205,566 3,187,348 4,196,379
Sanitation 718,894 455,792 411,845 627,214 632,928
Vehicle maintenance 692,770 700,854 752,462 872,991 932,625
Health and human services 542,572 525,788 557,683 669,564 679,218
Community development 165,062 1,278,214 2,023,898 2,433,222 2,047,185
Building and inspectional services 696,468 683,868 710,282 718,784 693,218
Interest 991,526 905,773 745,013 1,180,450 1,254,168
Total governmental activities expenses 24,563,535 24,447,679 25,715,801 28,638,969 30,347,503
Business-type activities
Water and sewer 3,537,103 3,779,714 4,026,028 4,047,889 4,550,240
Total business-type activities expenses 3,537,103 3,779,714 4,026,028 4,047,889 4,550,240
TOTAL PRIMARY GOVERNMENT
EXPENSES 28,100,638$ 28,227,393$ 29,741,829$ 32,686,858$ 34,897,743$
PROGRAM REVENUES
Governmental activities
Charges for services
General government 1,594,783$ 2,255,978$ 2,202,037$ 2,289,270$ 2,151,555$
Public safety 297,149 309,786 314,940 469,729 439,602
Other activities 411,122 270,090 135,589 88,338 83,477
Operating grants and contributions 1,069,545 747,462 1,099,295 826,813 699,862
Capital grants and contributions 122,633 109,983 216,256 339,372 55,729
Total governmental activities
program revenues 3,495,232 3,693,299 3,968,117 4,013,522 3,430,225
Business-type activities
Charges for services
Water and sewer 4,120,267 4,580,331 4,174,016 4,239,458 4,596,060
Total business-type activities
program revenues 4,120,267 4,580,331 4,174,016 4,239,458 4,596,060
TOTAL PRIMARY GOVERNMENT
PROGRAM REVENUE 7,615,499$ 8,273,630$ 8,142,133$ 8,252,980$ 8,026,285$
NET (EXPENSE) REVENUE
Governmental activities (21,068,303)$ (20,754,380)$ (21,747,684)$ (24,625,447)$ (26,917,278)$
Business-type activities 583,164 800,617 147,988 191,569 45,820
TOTAL PRIMARY GOVERNMENT
NET (EXPENSE) REVENUE (20,485,139)$ (19,953,763)$ (21,599,696)$ (24,433,878)$ (26,871,458)$
VILLAGE OF MORTON GROVE, ILLINOIS
CHANGE IN NET ASSETS
Last Five Fiscal Years
- 105 -
Fiscal Year 2004 2005 2006 2007 2008
GENERAL REVENUES AND OTHER
CHANGES IN NET ASSETS
Governmental activities
Taxes
Property 7,993,211$ 9,358,810$ 11,485,489$ 11,677,488$ 12,737,951$
Sales 6,684,899 6,798,236 7,788,874 7,061,621 6,370,839
Utility 1,177,974 1,267,383 1,185,594 1,213,165 1,206,890
Other 3,832,556 4,627,121 4,719,673 5,223,159 5,293,549
Investment earnings 38,182 147,518 467,427 630,288 394,088
Miscellaneous 32,090 35,713 95,025 138,578 574,371
Transfers 106,600 106,600 - - -
Total governmental activities 19,865,512 22,341,381 25,742,082 25,944,299 26,577,688
Business-type activities
Investment earnings 3,044 9,286 11,993 3,652 12,188
Miscellaneous 29,747 146,429 200,274 192,037 196,297
Transfers (106,600) (106,600) - - -
Total business-type activities (73,809) 49,115 212,267 195,689 208,485
TOTAL PRIMARY GOVERNMENT 19,791,703$ 22,390,496$ 25,954,349$ 26,139,988$ 26,786,173$
CHANGE IN NET ASSETS
Governmental activities (1,202,791)$ 1,587,001$ 3,994,398$ 1,318,852$ (339,590)$
Business-type activities 509,355 849,732 360,255 387,258 254,305
TOTAL PRIMARY GOVERNMENT
CHANGE IN NET ASSETS (693,436)$ 2,436,733$ 4,354,653$ 1,706,110$ (85,285)$
Data Source
Audited Financial Statements
Last Five Fiscal Years
CHANGE IN NET ASSETS (Continued)
VILLAGE OF MORTON GROVE, ILLINOIS
- 106 -
Fiscal Year 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08
GENERAL FUND
Reserved -$ 43,982$ 44,686$ 82,719$ -$ 19,629$ 72,073$ 55,457$ 1,667,406$ 1,614,804$
Unreserved 3,249,951 3,764,706 4,084,796 4,355,971 3,512,883 3,820,401 6,399,102 9,492,148 8,890,161 8,477,050
TOTAL GENERAL FUND 3,249,951$ 3,808,688$ 4,129,482$ 4,438,690$ 3,512,883$ 3,840,030$ 6,471,175$ 9,547,605$ 10,557,567$ 10,091,854$
ALL OTHER GOVERNMENTAL FUNDS
Reserved 880,188$ 1,004,415$ 998,953$ 1,171,210$ 3,036,212$ 3,359,923$ 2,961,673$ 5,495,470$ 5,003,627$ 7,238,957$
Unreserved, reported in
Special Revenue Funds 2,554,246 296,186 (367,848) 321,003 (280,448) - - 197,035 9,264,692 6,312,785
Capital Project Funds 3,794,804 1,701,626 844,149 992,769 - (1,245,882) (1,011,770) - - -
TOTAL ALL OTHER
GOVERNMENTAL FUNDS 7,229,238$ 3,002,227$ 1,475,254$ 2,484,982$ 2,755,764$ 2,114,041$ 1,949,903$ 5,692,505$ 14,268,319$ 13,551,742$
Data Source
Audited Financial Statements
VILLAGE OF MORTON GROVE, ILLINOIS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
- 107 -
Fiscal Year 12/31/98 12/31/99 12/31/00 12/31/01
REVENUES
Taxes 10,178,661$ 17,669,041$ 18,840,254$ 18,954,975$
Licenses and permits 234,726 832,384 734,180 830,866
Intergovernmental 125,942 148,651 284,023 2,006,770
Surcharge fees 89,206 135,134 136,772 183,147
Charges for services 232,445 318,858 336,675 360,762
Fines and forfeitures 187,757 312,094 297,925 240,989
Lease and rental income - - - -
Investment income 192,812 470,250 753,878 483,120
Cable TV 108,164 141,414 324,649 257,236
Miscellaneous 429,663 264,900 98,646 128,852
Total revenues 11,779,376 20,292,726 21,807,002 23,446,717
EXPENDITURES
General government 1,007,294 1,755,119 1,682,721 2,444,579
Public safety 5,268,669 8,443,305 8,698,551 8,796,255
Streets and sidewalks 1,324,842 2,525,700 2,288,057 2,427,778
Sanitation 896,496 1,348,492 1,374,568 1,400,012
Vehicle maintenance 485,204 575,463 692,561 694,404
Health and human services 259,782 470,710 296,165 311,790
Community development 8,137,405 2,082,811 3,228,754 846,217
Building and inspection services 310,493 456,851 1,450,987 727,652
Debt service
Principal 1,028,904 1,074,779 1,203,819 1,163,028
Interest 725,340 2,260,434 1,225,656 1,236,853
Other charges 101,927 225,448 260,279 276,717
Capital outlay 997,689 2,165,524 4,581,234 6,741,370
Total expenditures 20,544,045 23,384,636 26,983,352 27,066,655
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (8,764,669) (3,091,910) (5,176,350) (3,619,938)
OTHER FINANCING SOURCES (USES)
Transfers in 715,159 9,361,380 1,344,481 1,277,810
Transfers (out)(722,259) (9,279,180) (1,255,681) (1,184,460)
Bonds issued 10,165,000 4,806,467 1,354,073 475,000
Other - - - -
Sale of capital assets 1,466,939 1,026,510 65,203 31,915
Total other financing sources (uses)11,624,839 5,915,177 1,508,076 600,265
NET CHANGE IN FUND BALANCES 2,860,170$ 2,823,267$ (3,668,274)$ (3,019,673)$
DEBT SERVICE AS A PERCENTAGE OF
NONCAPITAL EXPENDITURES 8.97%15.72%10.84%11.81%
Data Source
Audited Financial Statements
VILLAGE OF MORTON GROVE, ILLINOIS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
- 108 -
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08
16,846,935$ 17,425,699$ 19,443,960$ 21,830,916$ 24,952,449$ 24,935,759$ 25,315,956$
1,143,947 1,204,324 1,157,687 1,473,641 1,375,358 1,194,285 1,115,215
675,725 1,027,777 1,057,227 857,445 1,315,550 1,176,429 755,810
221,018 84,724 76,932 220,634 227,181 239,671 293,273
359,990 399,639 746,743 683,943 700,674 983,358 982,042
239,202 248,919 253,663 282,892 273,543 327,835 281,457
27,822 40,560 45,030 30,832 - - -
123,427 180,263 87,412 147,520 467,426 620,046 393,869
293,901 166,471 178,520 184,424 197,272 215,606 224,026
2,287,808 185,050 217,741 222,516 200,746 264,832 628,427
22,219,775 20,963,426 23,264,915 25,934,763 29,710,199 29,957,821 29,990,075
2,711,127 2,600,514 3,609,971 2,807,443 3,099,624 3,176,009 3,829,837
9,378,760 10,149,026 10,611,336 11,627,607 12,918,063 14,809,880 14,878,141
2,122,891 2,190,002 2,116,517 2,322,281 2,268,649 3,027,875 3,236,324
1,370,045 1,345,668 617,465 455,792 405,715 627,214 632,928
544,969 587,369 614,449 700,854 752,462 872,991 932,625
465,655 443,960 481,236 503,762 560,598 669,564 679,218
1,471,096 146,048 146,426 943,973 1,582,343 605,286 2,047,185
606,281 580,748 617,675 682,764 719,296 718,083 687,918
1,240,479 1,412,278 1,517,631 1,986,557 1,766,127 1,940,203 1,701,086
1,264,852 1,098,517 993,538 943,342 690,343 999,340 1,304,359
443,610 - - - - 101,800 -
1,241,540 2,222,756 2,511,099 906,404 958,947 2,025,571 1,034,105
22,861,305 22,776,886 23,837,343 23,880,779 25,722,167 29,573,816 30,963,726
(641,530) (1,813,460) (572,428) 2,053,984 3,988,032 384,005 (973,651)
2,408,826 722,773 1,049,293 714,669 83,829 2,496,092 137,162
(2,311,576) (621,173) (942,693) (608,069) (83,829) (2,496,092) (137,162)
425,000 59,405 - 283,198 2,831,000 9,200,000 -
- - - - - 103,198 -
1,809,575 23,228 18,905 23,225 - - 17,838
2,331,825 184,233 125,505 413,023 2,831,000 9,303,198 17,838
1,690,295$ (1,629,227)$ (446,923)$ 2,467,007$ 6,819,032$ 9,687,203$ (955,813)$
11.59%12.22%11.78%12.75%9.92%10.47%9.96%
- 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 Commercial Industrial Tax-Exempt Assessed Tax Taxable Taxable
Year Property Property Property Property Value Rate Value Value
1997 266,809,881$ 93,035,974$ 119,082,795$ -$ 478,928,650$ -$ 1,436,785,950$ 33.333%
1998 298,097,249 95,154,486 123,810,889 - 517,062,624 - 1,551,187,872 33.333%
1999 310,005,671 98,381,197 128,053,746 - 536,440,614 - 1,609,321,842 33.333%
2000 308,390,491 96,486,843 126,919,007 - 531,796,341 - 1,595,389,023 33.333%
2001 371,879,611 101,810,020 137,096,813 - 610,786,444 - 1,832,359,332 33.333%
2002 404,306,538 108,778,578 142,076,909 - 655,162,025 - 1,965,486,075 33.333%
2003 403,983,918 107,263,051 141,543,205 - 652,790,174 - 1,958,370,522 33.333%
2004 488,573,518 102,814,670 157,782,189 - 749,170,377 - 2,247,511,131 33.333%
2005 534,079,256 102,275,899 164,166,151 - 800,521,306 - 2,401,563,918 33.333%
2006 545,691,470 107,797,552 154,382,871 - 807,871,893 - 2,423,615,679 33.333%
2007 690,027,687 110,013,043 168,985,460 - 969,026,190 - 2,907,078,570 33.333%
Data Source
Office of the County Clerk; information for 2005 and 2006 not yet available.
Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value.
- 110 -
Tax Levy Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
VILLAGE DIRECT RATES
General 0.777 0.749 0.755 0.690 0.644 0.705 0.778 0.940 0.660 0.559
Police pension - - 0.019 0.021 0.038 0.058 - - 0.142 0.132
Fire pension 0.008 0.008 0.019 0.021 0.048 0.061 - - 0.176 0.151
Bonds and interest 0.108 0.104 0.105 0.092 0.086 0.086 0.075 0.070 0.068 0.058
IMRF 0.039 0.038 0.037 0.040 0.039 0.044 0.024 - - -
Purchase agreement - - 0.097 - - 0.003 0.071 0.002 0.002 0.002
IEPA agreement 0.100 0.097 - 0.085 0.079 0.079 - 0.065 0.064 0.053
Capital improvement 0.119 0.114 0.115 0.100 0.094 0.049 0.046 0.045 0.047 0.040
Total direct rates 1.151 1.110 1.147 1.049 1.027 1.084 0.995 1.122 1.159 0.995
OVERLAPPING RATES
Morton Grove Library 0.287 0.315 0.372 0.336 0.329 0.333 0.299 0.288 0.307 0.266
School District #68 2.693 2.622 2.721 2.350 2.334 2.464 2.178 2.149 2.258 1.931
School District #69 3.125 3.237 3.344 2.920 2.995 3.155 2.794 3.335 3.527 3.124
School District #67 2.484 2.430 2.512 2.272 2.213 2.338 2.129 2.041 2.094 1.859
School District #63 3.078 3.027 3.129 2.694 2.753 2.609 2.624 2.542 2.617 2.276
School District #70 2.320 2.281 2.377 2.167 2.056 2.906 2.792 2.729 2.846 2.506
High School District #207 2.234 2.198 2.298 2.026 1.936 2.012 1.795 1.757 1.826 1.602
High School District #219 1.925 1.903 2.068 1.860 1.776 2.090 2.013 2.007 2.374 2.114
Community College District #535 0.205 0.203 0.213 0.186 0.179 0.186 0.161 0.158 0.166 0.141
Cook County 0.911 0.877 0.824 0.746 0.690 0.630 0.593 0.533 0.500 0.446
Cook County Forest Preserve 0.072 0.070 0.069 0.067 0.061 0.059 0.060 0.060 0.057 0.053
Consolidated Elections - - - - - - - - - 0.012
Metro Water Reclamation District 0.444 0.419 0.415 0.401 0.371 0.361 0.347 0.315 0.028 0.263
Morton Grove Park District 0.440 0.429 0.443 0.397 0.377 0.380 0.337 0.325 0.328 0.289
Skokie Park District 0.455 0.402 0.486 0.446 0.419 0.456 0.437 0.407 0.436 0.375
Glenview Park District 0.472 0.577 0.612 0.511 0.492 0.516 0.505 0.490 0.511 0.429
Maine Township (1)0.127 0.126 0.149 0.133 0.129 0.135 0.122 0.121 0.127 0.114
Niles Township (1)0.039 0.040 0.040 0.036 0.036 0.036 0.033 0.031 0.034 0.030
Suburban T.B. Sanitary District 0.008 0.008 0.008 0.007 0.006 0.004 0.001 0.005 0.005 -
North Shore Mosquito Abatement 0.011 0.011 0.011 0.010 0.009 0.009 0.008 0.008 0.009 0.008
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
Rose Real Estate 24,901,456$ 1 2.57%16,703,934$ 2 3.23%
Federal Center, Inc.19,709,822 2 2.03%16,567,212 1 3.20%
Menards 13,650,714 3 1.41%- 0.00%
Bell & Gossett 13,013,203 4 1.34%9,181,731 4 1.78%
Schwinge Family Ltd.13,791,493 5 1.42%5,131,258 0.99%
Avon 11,888,375 6 1.23%8,745,894 3 1.69%
John Crane 11,826,807 7 1.22%8,240,018 5 1.59%
Kraft 6,475,026 8 0.67%5,900,707 7 1.14%
Lawncare Products - 9 0.00%6,125,443 8 1.18%
Capital Prop Mgmt 5,858,787 10 0.60%- 0.00%
Schwartz Paper Co - 0.00%6,875,465 6 1.33%
Public Storage IL27006 5,239,658 0.54%- 9 0.00%
ABT Appliance - 0.00%5,320,768 10 1.03%
126,355,341$13.03%88,792,430$ 17.16%
Data Source
Office of the County Clerk
2008 1999
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
1998 5,947,116$ 5,850,695$ 98.38%-$ 5,850,695$ 98.38%
1999 5,947,184 5,879,762 98.87%- 5,879,762 98.87%
2000 6,108,384 5,871,866 96.13%- 5,871,866 96.13%
2001 6,406,587 6,284,352 98.09%- 6,284,352 98.09%
2002 6,726,426 6,819,392 101.38%- 6,819,392 101.38%
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%
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 Installment Special General Installment Total Percentage of
Year Obligation Notes Assessment Obligation Notes Capital Primary Personal Per
Ended Bonds Payable Payable Bonds Payable Leases Government Income*Capita*
12/31/1999 11,621,250$ 15,418,000$ -$ 3,873,750$ 740,000$ -$ 31,653,000$ 6.99%1,412.58$
12/31/2000 11,145,000 15,772,000 - 3,715,000 681,000 - 31,313,000 6.02%1,397.40
12/31/2001 10,638,750 15,537,000 - 3,546,250 620,000 - 30,342,000 5.82%1,351.48
12/31/2002 10,102,500 15,153,444 - 3,367,500 626,989 - 29,250,433 5.61%1,302.86
12/31/2003 9,532,500 14,370,574 - 3,177,500 556,079 - 27,636,653 5.30%1,230.98
12/31/2004 8,932,500 13,452,935 - 2,977,500 470,567 - 25,833,502 4.27%1,150.66
12/31/2005 8,306,250 12,375,858 - 2,768,750 621,191 - 24,072,049 3.84%1,072.20
12/31/2006 7,657,500 14,280,939 - 2,552,500 486,778 - 24,977,717 3.99%1,112.54
12/31/2007 16,182,500 13,015,702 - 2,327,500 370,161 - 31,895,863 5.09%1,420.69
12/31/2008 15,481,250 12,015,866 - 2,093,750 250,081 - 29,840,947 4.76%1,329.16
Note: Details of the Village's outstanding debt can be found in the notes to the financial statements.
* See the Schedule of Demographic and Economic Statistics 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 -
VILLAGE OF MORTON GROVE, ILLINOIS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Percentage of
General Less: Amounts Estimat ed
Obligation Available Actual Taxable
Fiscal Bonds In Debt Value of Per
Year and Notes Service Fund Total Property*Capita
12/31/1999 30,893,436$ 880,188$ 30,013,248$ 5.80%1,339.40$
12/31/2000 30,632,000 1,004,415 29,627,585 5.52%1,322.19
12/31/2001 29,722,000 998,953 28,723,047 5.40%1,279.37
12/31/2002 25,255,944 1,031,210 24,224,734 3.97%1,079.00
12/31/2003 23,635,931 938,338 22,697,593 3.46%1,010.98
12/31/2004 22,385,433 997,666 21,387,767 3.28%952.64
12/31/2005 20,682,108 574,321 20,107,787 2.68%895.63
12/31/2006 21,938,439 597,680 21,340,759 2.67%950.55
12/31/2007 29,196,301 417,525 28,778,776 3.56%1,281.85
12/31/2008 27,497,116 468,461 27,028,655 2.79%1,203.90
Note: Details o f t he Village's outstanding debt can be found in the notes to the financial statements.
* See the Schedule of Assessed and Actual Value of Taxable Property on page 110 for
property value data.
- 115 -
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
December 31, 2008
(1)
Percentage
of Debt
Gross Applicable to Government's
Governmental Unit Bonded Debt Government Share of Debt
Village of Morton Grove 17,575,000$ 100%17,575,000$
SCHOOLS
School District #63 19,665,000 14.15%2,782,598$
School District #67 5,225,470 72.46%3,786,376
School District #68 6,225,000 0.56%34,860
School District #69 13,580,000 16.84%2,286,872
School District #70 5,640,000 98.41%5,550,324
School District #71 2,260,000 7.03%158,878
High School District #207 13,800,000 3.39%467,820
High School District #219 71,675,429 15.29%10,959,173
Total schools 138,070,899 26,026,901
OTHERS
Cook County 3,013,080,000 0.61%18,379,788
Cook County Forest Preserve 117,720,000 0.61%718,092
Metropolitan Metro Water Reclamation
District of Greater Chicago 1,392,699,076 0.62%8,634,734
Glenview Park District 45,960,000 0.18%82,728
Morton Grove Park District 725,000 99.34%720,215
Skokie Park District 18,715,997 0.48%89,837
Total others 4,588,900,073 28,625,394
TOTAL 4,744,545,972$ 72,227,295$
Overlapping debt percentages based on 2007 EAV, the most recent available.(1)
Date Source
Cook County Clerk
- 116 -
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF LEGAL DEBT MARGIN
December 31, 2008
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
12/31/1999 22,408 452,776,048$ 20,206$ 2.4%
12/31/2000 22,408 520,470,616 23,227 2.4%
12/31/2001 22,451 521,469,377 23,227 4.5%
12/31/2002 22,451 521,469,377 23,227 4.7%
12/31/2003 22,451 521,469,377 23,227 4.7%
12/31/2004 22,451 605,570,823 26,973 3.5%
12/31/2005 22,451 626,360,449 27,899 3.8%
12/31/2006 22,451 626,360,449 27,899 3.8%
12/31/2007 22,451 626,360,449 27,899 3.9%
12/31/2008 22,451 626,360,449 27,899 6.5%
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 City Total City
Employer Rank Employees Population Employer Rank Population
John Crane Inc 1 1,350 6.0%John Crane Inc 1 5.6%
Avon Products Inc 2 1,100 4.9%Avon Products Inc 2 4.4%
ITT Bell & Gossett 3 750 3.3%ITT Bell & Gossett 3 3.4%
Schwartz Paper Co 4 445 2.0%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 = 22,451 Village Population = 22,408
Note: 1999 number of employees is unavailable.
Data Source
Village business licences
2008 1999
VILLAGE OF MORTON GROVE, ILLINOIS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
- 119 -
Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
GENERAL GOVERNMENT
Administrative 4.0 4.0 4.5 4.5 4.5 4.5 4.5 5.0 4.5 4.5
Community development 4.5 4.5 3.0 2.0 2.0 1.5 1.5 1.5 1.5 1.5
Legal - - - - - - 0.5 0.5 0.5 0.5
Management information - - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance 5.5 5.5 6.5 6.5 7.0 7.0 7.0 7.5 6.5 6.0
Health and human services 11.0 11.0 - - - - - - - -
Family services - - 9.0 10.5 11.5 11.0 12.0 12.0 12.0 9.5
Building/code enforcement 7.5 7.5 9.5 9.5 8.5 8.0 10.0 9.0 8.5 8.0
PUBLIC SAFETY
Police
Officers 46.0 46.0 46.0 46.0 46.0 46.0 46.0 46.0 46.0 46.0
Civilians 29.0 29.0 28.5 33.0 25.5 26.5 25.5 23.5 23.5 23.0
Fire
Firefighters and officers 43.0 43.0 44.0 43.0 43.0 43.0 43.0 44.0 44.0 42.0
Civilians 2.0 2.0 2.0 3.0 3.0 3.5 3.5 3.0 3.0 3.0
PUBLIC WORKS
Street maintenance 19.4 19.4 18.5 18.5 18.5 16.5 16.5 16.5 16.5 16.5
Engineering 2.4 2.4 2.0 2.0 2.0 2.7 3.2 3.2 3.2 3.2
Vehicle maintenance 4.6 4.6 4.5 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Water/sewer 13.6 13.6 14.0 14.0 14.0 13.8 13.3 13.3 13.3 13.3
Data Source 192.5 192.5 192.0 197.5 190.5 189.0 191.5 190.0 188.0 182.0
Village budget office
VILLAGE OF MORTON GROVE, ILLINOIS
FULL-TIME EQUIVALENT EMPLOYEES
Last Ten Fiscal Years
- 120 -
Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
PUBLIC SAFETY
Police
Physical arrests 489 593 481 463 546 580 596 710 635 550
Parking violations No data 4,703 4,290 4,156 4,730 4,328 4,164 3,866 5,210 5,171
Traffic violations 7,722 9,588 8,549 7,811 7,556 7,428 6,215 7,681 4,598 4,367
Fire
Emergency responses 2,850 2,839 2,922 2,799 3,004 3,072 3,255 3,246 3,384 3,594
Fires extinguished 50 34 46 43 66 58 45 36 38 22
PUBLIC WORKS
Street resurfacing (miles)1.30 1.60 2.00 1.90 1.50 0.49 0.66 1.41 1.81 0.63
Pothole repairs (in tons)98.96 67.15 78.57 95.48 81.25 80.85 93.74 71.50 121.50 120.00
WATER
New connections - - - 24 - - 5 27 70 23
Water main breaks 71 53 65 81 98 77 117 55 85 67
Average daily consumption 3,573,000 3,396,000 3,532,000 3,548,000 3,453,000 3,306,000 3,416,000 3,050,000 3,180,000 3,500,000
Peak daily consumption 6,203,000 5,711,000 5,715,000 5,955,000 5,713,000 4,428,000 6,736,000 4,964,000 4,955,000 6,200,000
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 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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 223 223 223 357 357 357 372 372 372 357
Traffic signals 12 13 13 13 13 13 13 13 13 13
WATER
Water mains (miles)95.7 97.0 97.2 97.2 97.4 97.4 98.9 98.9 98.9 98.9
Fire hydrants 1,060 1,072 1,074 1,080 1,083 1,083 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)64.9 65.0 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
- 122 -