HomeMy WebLinkAboutCAFR2009VILLAGE OF MORTON GROVE, ILLINOIS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Year Ended
December 31, 2009
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 1-11
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 ................................................9-10
Proprietary Fund
Statement of Net Assets .........................................................................11
Statement of Revenues, Expenses and Changes in Fund Net Assets ........12
Statement of Cash Flows ........................................................................13-14
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 ..........................................................15
Statement of Changes in Fiduciary Net Assets ........................................16
Notes to Financial Statements ..........................................................................17-74
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual -
General Fund ..............................................................................................75
Lehigh/Ferris Tax Increment Financing Fund ...............................................76
Waukegan Road Tax Increment Financing Fund ..........................................77
Schedule of Funding Progress
Illino is Municipal Retirement Fund ..............................................................78
Sherriff’s Law Enfo rcement Personnel Plan .................................................79
Municipal Employees’ Retirement Fund ......................................................80
Police Pension Fund ....................................................................................81
Firefighters’Pension Fund...........................................................................82
Other Postemployment Benefit Plan ............................................................83
Schedule of Employer Contributions
Illino is Municipal Retirement Fund ..............................................................84
Sherriff’s Law Enfo rcement Personnel Plan .................................................85
Municipal Employees’ Retirement Fund ......................................................86
Police Pension Fund ....................................................................................87
Firefighters’Pension Fund...........................................................................88
Other Postemployment Benefit Plan ............................................................89
Notes to Required Supplementary Information.................................................90-91
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.........................92-94
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual
Debt Service Fund ......................................................................................95
NONMAJOR GOVERNMENTAL FUNDS
Combining Balance Sheet ................................................................................96
Combining St atement of Revenues, Expenditures
and Changes in Fund Balances .......................................................................97
Schedule of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual
Motor Fuel Tax Fund ..................................................................................98
Commu ter Parking Facilit y Fund .................................................................99
9-1-1 Emergency Telephone System Fund...................................................100
Economic Development Fund .....................................................................101
Capital Projects Fund ..................................................................................102
FIDUCIARY FUNDS
Pension Trust Funds
Combining St atement of Plan Net Assets.....................................................103
Combining St atement of Changes in Plan Net Assets ...................................104
COMPONENT UNIT -PUBLIC LIBRARY
Statement of Net Assets and Balance Sheet .....................................................105
Schedule of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual.................................................................106
VILLAGE OF MORTON GROVE, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Assets by Component -Last Six Fiscal Years .................................................107
Change in Net Assets -Last Six Fiscal Years ........................................................108-109
Fund Balances of Governmental Funds -Last Ten Fiscal Years ............................110
Change in Fund Balances of Governmental Funds -
Last Ten Fiscal Years .........................................................................................111-112
Revenue Capacity
Assessed and Actual Value of Taxable Property -
Last Ten Levy Years ..........................................................................................113
Property Tax Rates -Direct and Overlapping Governments -
Last Ten Levy Years ..........................................................................................114
Principal Property Taxpayers -Current Year and Nine Years Ago ........................115
Property Tax Levies and Collections -Last Ten Levy Years .................................116
Debt Capacity
Ratios of Outstanding Debt by Type -Last Ten Fiscal Years ................................117
Ratios of General Bonded Debt Outstanding -
Last Ten Fiscal Years .........................................................................................118
Schedule of Direct and Overlapping Bonded Debt ................................................119
Schedule of Legal Debt Margin ............................................................................120
Demographic and Economic Information
Demographic and Economic Information -
Last Ten Fiscal Years .........................................................................................121
Principal Employers -Current Year and Nine Years Ago ......................................122
Operating Information
Full-Time Equivalent Employees -Last Ten Fiscal Years......................................123
Operating Indicators -Last Ten Fiscal Years ........................................................124
Capital Asset Statistics -Last Ten Fiscal Years.....................................................125
INTRODUCTORY SECTION
i
VILLAGE OF MORTON GROVE, ILLINOIS
PRINCIPAL OFFICIALS AND OFFICERS
December 31, 2009
ELECTED TITLE/POSITION TERM/APPOINTMENT ENDS
Dan Staackmann Mayor April 2013
Daniel DiMaria Trustee April 2013
Larry Go mberg Trustee April 2013
Bill Grear Trustee April 2013
Shel Marcus Trustee April 2011
John Thill Trustee April 2011
Maria Toth Trustee April 2011
Tony Kalogerakos Village Clerk April 2013
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
Mark Erickson 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
The Village of Morton Grove is governed as a home rule community under Illinois law and
operates under a President/Trustee form of government with a full time Administrator. The home
rule status was confirmed by a special referendum held on March 18, 1980.
As a home rule municipality, the Village is permitted to carry out its own governing procedures,
except where specifically prohibited by the State Legislature. The Village President and six
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 Village of Morton Grove Comprehensive Annual Financial Report (CAFR) includes all of its
governmental operation funds, pension trust funds (the Morton Grove Firefighters’ Pension Fund,
Morton Grove Police Pension Fund and the General Pension Fund) and component unit (the
Morton Grove Public Library). The accompanying financial statements include only those funds
of the Village, as there are no other organization for which it has financial accountability. The
pension funds are determined to be pension trust funds due to their fiduciary and fiscal
relationships with the Village as their sole purpose is to provide retirement benefits to the Village’s
sworn firefighters and police officers. 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 allow the budget preparation process to begin when
municipal operations are generally at a more manageable level.
Local Economy
The Village of Morton Grove’s principal growth took place during the late 50’s and early 60’s
when the population increase from 7,427 to 20,533 residents. The Village primarily consists of
residential land uses. Significant industrial, office and commercial land uses are also located in the
community. Little vacant land remains for commercial and office development or light
manufacturing. Approximately twenty percent (20%) of the Village’s land area is Cook County
Forest Preserve property.
Although the Village’s population has stabilized several years ago, it remains a vibrant economic
community and is a desirable place to live. The unemployment rate remained relatively stable
over the years: however, it has risen to 8.1% in 2009 due to economic recession. 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
The Village of Morton Grove, however, has not been immune to the dramatic downturn in the
economy in 2008 and 2009. Economist have declared this downturn to be a recession as there has
been a deterioration of the labor market, and declines in consumer spending, business investments
and industrial production. Additionally, the Federal Reserve has lowered interest rates to a current
rate between 0-.25% in order to attempt to promote the resumption of sustainable economic
growth. The Village of Morton Grove has weathered this recession well. By re-evaluating every
aspect of the Village’s operations, the Village Board, Management and staff have been successful
in maintaining service levels while taking measures to reduce their expenditures.
In 2009 the Village experienced a decline in several of their revenues due to the recession. For
instance the annual sales tax revenue received in the Village in 2009 of $5,604,221 was 12% lower
than the sales tax received in 2008 and state shared income tax was $300,507 or 14% lower in
2009 than in 2008
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 (2) tax increment financing
districts (TIF). The Lehigh/Ferris tax increment district has been designated for transit-oriented
development which has fostered new condominium and town home development. A main Village
arterial street is also scheduled for improvements in the upcoming years which will allow for
needed infrastructure upgrades and an improved streetscape.
Long-Term Financial Planning
An analysis of long range issues invariably focuses on the Village’s infrastructure. Approximately
$30 million of streets, alleys, bridges, water mains, and storm sewers are deployed throughout the
Village. Routine maintenance and restoration is a significant expense each year. The continued
viability of this infrastructure network is a priority for the Village Board.
In response to the long-range need to finance infrastructure work, the Village is very active in the
area of economic development. The Village works to attract new businesses to the community
while retaining and strengthening existing establishments. The Village has been active in its use of
tax increment financing (TIF) and private activity bonds assistance to promote economic
development. The ultimate goal is for the resulting economic growth to provide additional sales
tax and other resources to help support the existing tax base of the Village.
Major Initiatives and Accomplishments
Grant funds have been awarded to the Village to assist in the Dempster Street revitalization
project. This work includes replacement of a 100 year old watermain, and street reconstruction.
Additional parking will be constructed and the appearance of this main arterial street will be
improved.
Board of Trustees and
Citizens of the Village of Morton Grove
vii
The Waukegan Road tax increment financing district has been successful in removing unsightly
properties and promoting a feeling of increased safety and pride in the community.
The Lehigh/Ferris tax increment financing district has made significant progress with the
development of several new condominiums and town homes. In November, 2007, the Village
issued $9.2Million General Obligation Bonds to finance infrastructure improvements for the
district.
The Finance Department completed bond refinancing to ensure the Village’s debt service costs are
maintained at the lowest possible levels and reaffirmed the Village’s Moody’s Investment Services
credit rating.
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, 2008. This was the twenty-first consecutive year
that the government has received this prestigious award. In order to be awarded a Certificate of
Achievement, the government must publish an easily readable and efficiently organized CAFR.
This report satisfied both generally accepted accounting principles (GAAP) and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility certification.
The preparation of this report on a timely basis could not be accomplished without the efficient
and dedicated services of the entire staff of the Finance Department, and the cooperation and
assistance rendered by the staffs of other operating departments of the Village. I would like to
express my appreciation to all of those employees who assisted and contributed to its preparation.
In particular, I would like to acknowledge the effort of Remy Navarrete, Assistant Finance
Director.
Finally, appreciation is expressed to the Village President and Board of Trustees and the Village
Administrator for their leadership and support in planning and conducting the fiscal affairs of the
Village in a responsible manner.
Respectfully submitted,
Ryan J. Horne
Finance Director/Treasurer
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, 2009
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, 2009. 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
• The Village’s net assets decreased as a result of this year’s operations. Net assets of
governmental activities decreased by $492,686, while net assets of the business-type
activities increased by $356,948 resulting in total ending net assets for the year of
$37,268,751.
• During the year, government-wide revenues before transfers for the governmental and
business-type activities total $33,703,763, while expenses totaled $33,839,501, resulting in
the decrease in net assets of $135,738.
• The General Fund reported a deficiency for the year of $2,702,238, a reflection of the larger
economic condition at the present time.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Assets and the
Statement of Activities provided information about the activities of the Village as a whole and present
a longer-term view of the Village’s finances. For governmental activities, these statements tell how
these services were financed in the short term as well as what is available for future spending. Fund
financial statements also report the Village’s operations in more detail than the government-wide
statements by providing information about the Village’s most significant funds. The remaining
statements provide financial information about fiduciary activities for which the Village acts solely as
a trustee or agent for the benefit of those outside of the government.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial 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 reports 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.
Consideration of other nonfinancial factors, such as changes in the Village’s property tax base and the
condition of the Village’s infrastructure, is needed to assess the overall health of the Village.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 2
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
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 Village includes one separate legal entity in its report. The Morton Grove Public Library is
presented as a discretely component unit. Financial information for the component unit is reported
separately from the financial information presented for the primary government itself.
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.
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
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 3
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 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 96 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.
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.
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 17 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 on
pages 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 92 of this report.
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 $37,268,751 at December 31,
2009, compared to $38,000,577 at December 31, 2008:
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 4
Village of Morton Grove Statement of Net Assets (in thousands)
Governmental Business-Type
Activities Activities Total
Category 12/31/09 12/31/08 12/31/09 12/31/08 12/31/09 12/31/08
Current and other assets $34,368 $36,235 $ 1,342 $ 1,692 $35,710 $37,927
Capital assets 56,733 57,559 3,868 3,539 60,601 61,097
Total assets 91,102 93,794 5,210 5,231 96,312 99,024
Current and other Liabilities 12,020 12,804 271 296 12,291 13,100
Long-Term liabilities 44,660 45,580 2,092 2,344 46,752 47,924
Total liabilities 56,680 58,384 2,363 2,639 59,043 61,024
Net assets:
Invested in capital
assets,
net of related debt 43,661 46,370 1,918 1,195 45,579 47,565
Restricted 15,698 1,491 - - 15,698 1,491
Unrestricted
(24,936)
(12,451) 928 1,396
(24,008)
(11,055)
Total net assets $34,422 $35,409 $ 2,847 $ 2,591 $37,269 $38,001
As detailed above, the largest portion of the Village’s net assets reflects an investment in capital
assets (for example, infrastructure, land, buildings and improvements, machinery, and equipment),
less any related debt used to acquire such assets that is still outstanding. The Village uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. As of December 31, 2009, capital assets net of related debt totaled $45,579,234 of 122.0 %
of total net assets. Although the Village’s investment in capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
An additional portion, $15,697,500 or 42.0%, of the Village’s net assets represents resources that are
subject to external restrictions on how they may be used, including restrictions for future street
improvements, debt service payments, public safety, and future capital development.
NORMAL IMPACTS
There are six basic (normal) transactions that will affect the comparability of the Statement of Net
Assets summary presentation:
• 1) Net Results of Activities – which will impact (increase/decrease) current assets and
unrestricted net assets
• 2) Borrowing for Capital – which will increase current assets and long-term debt outstanding.
• 3) Spending Borrowed Proceeds on New Capital – which will reduce current assets and
increase capital assets. There is a second impact, an increase in invested in capital assets and
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 5
an increase in related net debt, which will not change the investment in capital assets, net of
related debt total.
• 4) Spending Nonborrowed Current Assets on New Capital – which will (a) reduce current
assets and increase capital assets and (b) will reduce unrestricted net assets and increase
investment in capital assets, net of related debt.
• 5) Principal Payment on Debt – which will (a) reduce current assets and reduce long-term
debt and (b) reduce unrestricted net assets and increase investment in capital assets, net of
related debt.
• 6) Reduction of Capital Assets through Depreciation – which will reduce capital assets and
reduce investment in capital assets, net of related debt.
Following is a table that summarizes the change in net assets of the Village at the close of the fiscal
year, with a comparison to the preceding fiscal year.
Village of Morton Grove Changes in Net Assets (in thousands)
GovernmentalBusiness-Type
Activities ActivitiesTotal
Category 12/31/0912/31/0812/31/0912/31/0812/31/0912/31/08
Revenues
Program revenues
Charges for services2,624$ 2,675$ 4,990$ 4,596$ 7,615$ 7,271$
Operating Grants804 700 804 700
Capital Grants1 56 108 109 56
General revenues
Taxes24,322 25,960 24,322 25,960
Investment income304 394 3 12 308 406
Miscellaneous295 223 251 196 546 420
Total revenues 28,351 30,008 5,353 4,805 33,704 34,812
Expenses
General government3,988 4,587 3,988 4,587
Public safety16,453 15,324 16,453 15,324
Streets and sidewalks3,816 4,196 3,816 4,196
Sanitation647 633 647 633
Vehicle maintenance752 933 752 933
Health and human services718 679 718 679
Community development778 2,047 778 2,047
Building and inspectional services813 693 813 693
Interest880 1,254 880 1,254
Water and sewer4,996 4,550 4,996 4,550
Total expenses 28,844 30,348 4,996 4,550 33,840 34,898
Change in net assets(493) (340) 357 254 (136) (85)
Prior period adjustment(495) (226) (102) (596) (226)
Net assets - January 135,409 35,975 2,591 2,337 38,001 38,312
Net assets - December 31 34,423$35,409$2,847$ 2,591$ 37,269$ 38,001$
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 6
NORMAL IMPACTS
There are eight basic (normal) impacts on revenues and expenses are reflected below:
Revenues:
• 1) Economic Condition – which can reflect a declining, stable, or growing economic
environment and has a substantial impact on state income, sales and utility tax revenue as
well as public spending habits for building permits, elective user fees, and level of
consumption.
• 2) Increase/Decrease in Village-Approved Rates – while certain tax rates are set by statute,
the Village Board has significant authority to impose and periodically increase/decrease rates
(property taxes, water, sewer, impact fees, building fees, home rule sales tax, etc.)
• 3) Changing Patterns in Intergovernmental and Grant Revenue (both Recurring and
Nonrecurring) – certain recurring revenues (state-shared revenues, etc.) may experience
significant changes periodically, while nonrecurring (or one-time) grants are less predictable
and often distorting on their impact on year-to-year comparisons.
• 4) Market Impacts on Investment Income – the Village’s investment policy is managed using
similar average maturity to most governments. Market conditions may cause investment
income to fluctuate.
Expenses:
• 5) Introduction of New Programs – within the functional expense categories (general
government, public works, public safety, etc.), individual programs may be added or deleted
to meet changing community needs.
• 6) Change in Authorized Personnel – changes in service demand may cause the Village
Board to increase/decrease authorized staffing. Personnel costs (salary and related benefits).
• 7) Salary Increases (Annual Adjustments and Merit) – the ability to attract and retain human
and intellectual resources requires the Village to strive to approach a competitive salary range
position in the marketplace.
• 8) Inflation – while overall inflation appears to be reasonably modest, the Village is a major
consumer of certain commodities such as supplies, fuels, and parts. Some functions may
experience unusual commodity-specific increases.
GOVERNMENTAL ACTIVITIES
Revenues:
Revenues for governmental activities totaled $28,350,954 at December 31, 2009 and $30,007,913 at
December 31, 2008, a decrease $1,656,959. General Sales and Home Rule Sales Tax decreased
$857,618, or 15.73% from 2008 due in large part of declining economic environment. Another
significant decrease in revenues for the governmental activities occurred in the Investment Income
category. Investment earnings for the governmental activities totaled $394,088 at December 31, 2008,
while this total was only $304,129 at December 31, 2009, a decrease of $89,959, or 22.83%. The
declining economic environment and drastically lower interest rates have greatly affected investment
returns on the Village’s holding. The Village has been working with an investment management firm
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 7
to address cash flow needs and long-term, investment returns in the hopes of improving investment
returns and to position the Village to take advantage of higher interest rates when they do start to
rebound.
The following table graphically depicts the major revenue sources of the Village. It depicts very
clearly the reliance of Property Taxes and Sales Taxes to fund governmental activities. It also clearly
identifies the less significant percentage the Village receives from Income Taxes, Telecommunication
Taxes, and Utility Taxes.
Revenues by Source - Governmental Activities
December 31, 2009
Misc.
1%
Operating
Grants
3%
Income Taxes
7%
Misc. Taxes
5%
Telecomm
Taxes
4%
Property Taxes
53%
Investment
Income
1%
Utility Taxes
4%
Cap. Grants
0%
Sales Taxes
22%
Expenditures
For the year ended December 31, 2009, governmental activities expenses totaled $28,843,640 at
December 31, 2009 and $30,347,503 at December 31, 2008, a decrease of $1,503,863 due in large
part to the Village management’s approach to closely managing expenditures in response to the
projected decrease in several sources of revenues. The Village wide cost cutting initiatives included a
hiring freeze and lower spending in the contractual services and commodities categories.
The ‘Expense and Program Revenues’ Table identifies those governmental functions where program
expenses exceed revenues. These deficits are expected due to the fact that the governmental
functions are primarily support by General Revenues (for instance Property Taxes and Sales Taxes)
rather than the Program Revenues.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 8
Expense and Program Revenues - Governmental Activities
December 31, 2009
-
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Revenues
Expenses
BUSINESS-TYPE ACTIVITIES
Business-Type activities posted total revenues of $5,244,675, while the cost total $4,995,861. This
results in a surplus of $248,814 prior to net contribution of $108,134. In 2008, revenues of
$4,804,545 exceed expenses of $4,550,240, resulting in a surplus of $254,305.
Revenues
For the Calendar year ended December 31, 2009, revenues for the business-type activities totaled
$5,244,675, an increase of $440,130, or 9.20%, due primarily to increased charges for services
($4,990,281 in 2009 compared to $4,596,063 in 2008).
Expenses
For the Calendar year ended December 31, 2009, expenses for the business-type activities totaled
$4,995,861, an increase of $445,621, or 9.80%, due primarily to rate increased imposed by the City of
Chicago where the Village purchases its water, and cost of commodities.
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUND
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 9
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.
The Village’s governmental funds reported combining ending fund balances of $22,275,844, which is
$1,367,752, or 5.8% lower than last year’s total of $23,643,596. Of the $22,275,844 total $4,982,788,
or approximately 22.0% of the fund balance constitutes unreserved fund balance.
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 $7,389,616 of which the unreserved fund
balance was $5,794,060 or approximately 78%. 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 26% of total expenditures, while total fund balance represents
33%.
The total fund balance in the General Fund decreased by $2,702,238. The decrease is a reflection of
economic condition our country dealing at the present time. In order to maintain the customary level
of Village services, the 2009 budget includes a planned drawdown of reserves of $3M’s.
Lehigh Ferris TIF Fund: Reported revenues exceeding expenditures by $1,217,002 due to an increase in
incremental property tax, and refinancing the 2006 Installment Notes for lower interest rates.
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 $1.76
per thousand gallons. Water is then sold to all residential municipal customers at a rate of $6.16 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.
CAPITAL ASSETS
The Village’s investment in net capital assets for its governmental and business type activities as of
December 31, 2009 was $60,601,289 (net of accumulated depreciation). This investment in capital assets
includes land (right of way), buildings, improvements, machinery & equipment, and infrastructure. The
minimum capital threshold remained at $10,000. For more information regarding the Village’s capital
assets, please refer to Note 5 of this CAFR.
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 10
12/31/0912/31/0812/31/0912/31/0812/31/0912/31/08
Construction in Progress55$ -$ 12$ 167$ 67$ 167$
Right of Ways42,913 42,913 - - 42,913 42,913
Infrastructure3,932 4,191 - - 3,932 4,191
Buildings and Improvements8,640 9,098 3,025 3,050 11,665 12,148
Machinery, Equipment and Vehicles1,194 1,357 831 322 2,025 1,679
56,733$ 57,559$ 3,868$ 3,539$ 60,601$ 61,097$ Total
ActivitiesActivitiesTotal
Type of Debt
Capital Assets - Net of Depreciation (in thousands)
GovernmentalBusiness-Type
Debt Administration
Long-Term Debt
At the end of the year, Morton Grove had total bonded debt outstanding of $27,128,630, as compared
to $29,840,948 the previous year, a decrease of $2.7 million, or 9.10% which included bond refunding
during the year, principal retirements that reduced the outstanding liability on the bonds. The
following is a comparative statement of outstanding debt.
Village debt 2009 rated “Aa3” by Moody’s Investor Services, Inc. In 2010 Standard and Poor
assigned its “AA” long-term rating to the Village. As the Village is a home rule community, there is
not legal limit for outstanding debt. Additional information on the Village’s long-term debt can be
found in Note 8 on pages 35-42 of this report
12/31/0912/31/08 12/31/0912/31/08 12/31/0912/31/08
General Obligation Bonds19,284$ 15,481$ 1,856$ 2,094$ 21,140$ 17,575$
Revolving loans1,213 1,633 76 150 1,289 1,783
Installment Notes4,649 10,383 51 100 4,700 10,483
25,145$ 27,497$ 1,983$ 2,344$ 27,129$ 29,841$
Long Term Debt (in thousands)
Governmental
Activities
Business-Type
ActivitiesTotal
Total Long Term Debt
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 8.1% for 2009, an increase of 1.6%
VILLAGE OF MORTON GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
MD&A 11
from 2008. Rising unemployment, declining 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 2010 budget. At the time of preparing the 2010 budget, it was
projected that the Village would continue to experience decreases in revenues. Expenditures in most areas
were also trimmed to the fullest extent possible without impacting core services provided. Plans for
beyond 2010 are also being developed 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 6,443,392$ 658,993$ 7,102,385$ 1,956,923$
Investments 7,380,570 - 7,380,570 -
Receivables (net, where applicable,
of allowances for uncollectibles)
Property taxes 9,973,179 - 9,973,179 2,807,433
Sales tax 1,416,889 - 1,416,889 -
State income tax 373,479 - 373,479 -
Accrued interest 9,976 - 9,976 -
Accounts and allotments 914,932 675,426 1,590,358 -
Due from other governments 1,038,466 - 1,038,466 25,000
IRMA excess surplus 320,419 - 320,419 -
IPBC terminal reserve 109,060 - 109,060 -
Prepaid expenses 28,962 - 28,962 43,688
Deferred charges 175,662 7,513 183,175 -
Land held for resale 6,183,415 - 6,183,415 -
Net pension asset - - - 71,144
Capital assets not being depreciated 42,967,389 11,805 42,979,194 79,000
Capital assets (net of
accumulated depreciation)13,766,099 3,855,996 17,622,095 582,211
Total assets 91,101,889 5,209,733 96,311,622 5,565,399
LIABILITIES
Accounts payable 355,105 251,768 606,873 11,967
Accrued salaries and wages 629,239 15,365 644,604 23,386
Claims payable 34,538 - 34,538 -
Other payables 17,825 - 17,825 -
Accrued interest payable 102,768 3,296 106,064 -
Unearned property tax revenue 9,601,007 - 9,601,007 2,747,232
Other unearned revenue 1,004,864 - 1,004,864 -
Deposits refundable 271,787 1,000 272,787 -
Due to fiduciary funds 2,530 - 2,530 -
Noncurrent liabilities
Due within one year 2,574,755 398,341 2,973,096 4,040
Due in more than one year 42,085,495 1,693,188 43,778,683 25,024
Total liabilities 56,679,913 2,362,958 59,042,871 2,811,649
NET ASSETS
Invested in capital assets,
net of related debt 43,660,888 1,918,346 45,579,234 661,211
Restricted for
Debt service 492,270 - 492,270 -
Capital projects 510,449 - 510,449 -
Public safety 196,590 - 196,590 -
Highways and streets 46,069 - 46,069 -
Community development 14,452,122 - 14,452,122 -
Culture and recreation - - - 2,092,539
Unrestricted (24,936,412) 928,429 (24,007,983) -
TOTAL NET ASSETS 34,421,976$ 2,846,775$ 37,268,751$ 2,753,750$
Primary Government
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF NET ASSETS
December 31, 2009
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 3,987,630$ 2,068,374$ -$ -$
Public safety 16,452,967 478,189 142,260 -
Streets and sidewalks 3,815,984 8,952 661,834 -
Sanitation 646,686 64,742 - -
Vehicle maintenance 752,089 - - -
Health and human services 717,693 4,141 - -
Community development 778,130 - - 1,244
Building and inspectional services 812,585 - - -
Interest 879,876 - - -
Total governmental activities 28,843,640 2,624,398 804,094 1,244
Business-Type Activities
Water and sewer 4,995,861 4,990,281 - 108,134
Total business-type activities 4,995,861 4,990,281 - 108,134
TOTAL PRIMARY GOVERNMENT 33,839,501$ 7,614,679$ 804,094$ 109,378$
COMPONENT UNIT
Morton Grove Public Library
Culture and recreation 2,754,008$ 39,020$ 26,161$ -$
TOTAL COMPONENT UNIT 2,754,008$ 39,020$ 26,161$ -$
Program Revenues
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2009
- 4 -
Component
Unit
Morton Grove
Governmental Business-Type Public
Activities Activities Total Library
(1,919,256)$ -$ (1,919,256)$ -$
(15,832,518) - (15,832,518) -
(3,145,198) - (3,145,198) -
(581,944) - (581,944) -
(752,089) - (752,089) -
(713,552) - (713,552) -
(776,886) - (776,886) -
(812,585) - (812,585) -
(879,876) - (879,876) -
(25,413,904) - (25,413,904) -
- 102,554 102,554 -
- 102,554 102,554 -
(25,413,904) 102,554 (25,311,350) -
- - - (2,688,827)
- - - (2,688,827)
General Revenues
Taxes
Property 12,799,051 - 12,799,051 2,602,139
Personal property replacement 368,208 - 368,208 25,581
Sales 5,604,221 - 5,604,221 -
Utility 1,144,676 - 1,144,676 -
Local use 272,041 - 272,041 -
Telecommunications 1,315,498 - 1,315,498 -
Income 1,824,794 - 1,824,794 -
Real estate transfer 234,233 - 234,233 -
Hotel/motel 56,495 - 56,495 -
Food and beverage 289,794 - 289,794 -
Gasoline 309,270 - 309,270 -
Other 78,361 - 78,361 -
Foreign fire insurance 25,099 - 25,099 -
Investment income 304,129 3,469 307,598 5,160
Miscellaneous 295,348 250,925 546,273 2,299
Total 24,921,218 254,394 25,175,612 2,635,179
CHANGE IN NET ASSETS (492,686) 356,948 (135,738) (53,648)
NET ASSETS, JANUARY 1, AS PREVIOUSLY REPORTED 35,409,235 2,591,342 38,000,577 2,736,215
Prior period adjustment (494,573) (101,515) (596,088) 71,183
NET ASSETS, JANUARY 1, AS RESTATED 34,914,662 2,489,827 37,404,489 2,807,398
NET ASSETS, DECEMBER 31 34,421,976$ 2,846,775$ 37,268,751$ 2,753,750$
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 3,795,950$ 194,596$ 972,462$ 599,441$ 880,943$ 6,443,392$
Investments - 163,717 7,124,967 - 91,886 7,380,570
Receivables
Property taxes 8,441,823 1,059,267 146,410 11,459 314,220 9,973,179
Sales tax 1,189,889 110,000 - - 117,000 1,416,889
State income tax 373,479 - - - - 373,479
Accrued interest - - 9,976 - - 9,976
Accounts and allotments 778,037 - - 7,200 129,695 914,932
Due from other governments 109,404 - - - 929,062 1,038,466
Due from other funds 86,429 - - - - 86,429
Advances to other funds 1,588,930 - - - - 1,588,930
IRMA excess surplus reserve 320,419 - - - - 320,419
IPBC terminal reserve 109,060 - - - - 109,060
Prepaid items 6,626 - - - 22,336 28,962
Land held for resale - - 6,183,415 - - 6,183,415
TOTAL ASSETS 16,800,046$ 1,527,580$ 14,437,230$ 618,100$ 2,485,142$ 35,868,098$
LIABILITIES
Accounts payable and retainage payable 139,377$ -$ 102,434$ 4,675$ 108,619$ 355,105$
Accrued salaries and wages 629,239 - - - - 629,239
Claims payable 34,538 - - - - 34,538
Other payables 17,825 - - - - 17,825
Unearned property tax revenue 8,258,242 1,035,310 - - 307,455 9,601,007
Deposits - refundable 271,787 - - - - 271,787
Other unearned revenue 56,892 - - - 947,972 1,004,864
Due to other funds - - 86,429 - - 86,429
Due to fiduciary funds 2,530 - - - - 2,530
Advances from other funds - - - 1,588,930 - 1,588,930
Total liabilities 9,410,430 1,035,310 188,863 1,593,605 1,364,046 13,592,254
FUND BALANCES
Reserved for prepaid items - - - - 22,336 22,336
Reserved for public safety - - - - 196,590 196,590
Reserved for land held for resale - - 6,183,415 - - 6,183,415
Reserved for community development - - 8,064,952 - 203,755 8,268,707
Reserved for capital projects - - - - 488,113 488,113
Reserved for highways and streets - - - - 46,069 46,069
Reserved for debt service - 492,270 - - - 492,270
Reserved for prepaid items 6,626 - - - - 6,626
Reserved for advances 1,588,930 - - - - 1,588,930
Unreserved - undesignated
Undesignated - General Fund 5,794,060 - - - - 5,794,060
Undesignated - Special Revenue Funds - - - (975,505) 164,233 (811,272)
Total fund balances 7,389,616 492,270 14,248,367 (975,505) 1,121,096 22,275,844
TOTAL LIABILITIES AND
FUND BALANCES 16,800,046$ 1,527,580$ 14,437,230$ 618,100$ 2,485,142$ 35,868,098$
ASSETS
LIABILITIES AND FUND BALANCES
VILLAGE OF MORTON GROVE, ILLINOIS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2009
See accompanying notes to financial statements.
- 6 -
Primary
Government
FUND BALANCES OF GOVERNMENTAL FUNDS 22,275,844$
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 56,733,488
Interest payable is not due and payable in the current period
and, therefore, not reported in the governmental funds (102,768)
Long-term liabilities are not due and payable in the current
period and, therefore, are not reported in the governmental funds:
General obligation bonds payable (19,283,750)
Revolving loans payable (1,212,720)
Installment notes payable (4,648,818)
Intergovernmental agreement payable (4,260,718)
Net pension obligation (13,175,981)
Net other postemployment benefits obligation (1,652,645)
Compensated absences (453,339)
The unamortized bond premium is not a current financial
resource and, therefore, is not reported in the
governmental funds (89,761)
The unamortized bond discount is not a current financial
resource and, therefore, is not reported in the
governmental funds 11,864
The unamortized loss on bond refunding is shown as a reduction of
long-term liabilities on the statement of net assets 105,618
The unamortized bond issuance costs are not a current financial
resource and, therefore, are not reported in the
governmental funds 175,662
NET ASSETS OF GOVERNMENTAL ACTIVITIES 34,421,976$
VILLAGE OF MORTON GROVE, ILLINOIS
RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS
December 31, 2009
See accompanying notes to financial statements.
- 7 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Debt Waukegan Nonmajor Total
General Service Lehigh/Ferris Road Governmental Governmental
Fund Fund TIF Fund TIF Fund Funds Funds
REVENUES
Taxes 18,190,421$ 1,478,514$ 2,760,550$ 830,568$ 791,080$ 24,051,133$
Licenses and permits 1,029,669 - - - - 1,029,669
Intergovernmental 229,118 - 20,154 - 556,065 805,337
Surcharges - - - - 270,610 270,610
Charges for services 739,573 - - - 133,688 873,261
Fines 346,754 - - - - 346,754
Investment income 7,826 3,574 285,596 1,645 5,488 304,129
Cable TV franchise fees 233,278 - - - - 233,278
Miscellaneous 402,560 3,999 2,000 - 28,224 436,783
Total revenues 21,179,199 1,486,087 3,068,300 832,213 1,785,155 28,350,954
EXPENDITURES
Current
General government 3,235,134 - - - - 3,235,134
Public safety 15,138,798 - - - 254,677 15,393,475
Streets and sidewalks 2,353,029 - - - 676,425 3,029,454
Sanitation 644,771 - - - - 644,771
Vehicle maintenance 752,089 - - - - 752,089
Health and human services 718,045 - - - - 718,045
Community development 116,950 - 30,901 - 381,556 529,407
Building and inspectional services 807,146 - - - - 807,146
Debt service
Principal retirement - 1,449,279 3,530,000 5,165,048 - 10,144,327
Interest and fiscal charges - 168,594 614,476 301,822 - 1,084,892
Bond issuance costs - 57,026 - 37,320 - 94,346
Capital outlay
Capital projects - - 360,921 108,134 506,736 975,791
Total expenditures 23,765,962 1,674,899 4,536,298 5,612,324 1,819,394 37,408,877
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,586,763) (188,812) (1,467,998) (4,780,111) (34,239) (9,057,923)
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds - 5,737,500 - 4,920,000 - 10,657,500
Discount on debt issuance - - - (11,975) - (11,975)
Issuance of refunding installment note - - 2,685,000 - - 2,685,000
Payment to refunded bonds escrow agent - (5,661,824) - - - (5,661,824)
Proceeds from sale of capital assets 21,470 - - - - 21,470
Transfers in - 136,945 - - - 136,945
Transfers (out)(136,945) - - - - (136,945)
Total other financing sources (uses)(115,475) 212,621 2,685,000 4,908,025 - 7,690,171
NET CHANGE IN FUND BALANCES (2,702,238) 23,809 1,217,002 127,914 (34,239) (1,367,752)
FUND BALANCES (DEFICIT), JANUARY 1 10,091,854 468,461 13,031,365 (1,103,419) 1,155,335 23,643,596
FUND BALANCES (DEFICIT), DECEMBER 31 7,389,616$ 492,270$ 14,248,367$ (975,505)$ 1,121,096$ 22,275,844$
AND CHANGES IN FUND BALANCES
See accompanying notes to financial statements.
- 8 -
Primary
Government
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (1,367,752)$
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 308,453
Depreciation expense does not require the use of current financial statement resources,
and therefore, is not reported as in expenditure in the governmental funds (1,111,003)
Governmental funds do not report compensated absences; however, they are
recognized as an addition to expenses on the statement of activities 136,986
Proceeds from the issuance of long-term debt are recorded as an other financing
source in governmental funds but as an increase in long-term debt in the
statement of activities (10,657,500)
Proceeds from the issuance of installment contracts are recorded as an other
financing source in governmental funds but as an increase in long-term debt
in the statement of activities (2,685,000)
The payment to the refunded bond escrow agent is reported as an other financing
use in the governmental funds 5,661,824
The repayment of the principal portion of general obligation bonds payable, revolving notes
payable and installment notes payable are reported as debt service expenditures when
due in governmental funds but as a reduction of principal outstanding in the statement
of activities 10,144,327
The repayment of the principal portion of the intergovernmental agreement payable
is reported as an expenditure when due in governmental funds but as a reduction of
principal outstanding in the statement of activities 222,257
The amortization of the refunding loss is not reported in governmental funds,
but is reported in the statement of activities (6,206)
The amortization of the bond premium is not reported in governmental funds,
but is reported in the statement of activities 6,450
Discounts on the issuance of long-term debt are recorded as an other financing
use in governmental funds but as a deferred charge in the statement of activities 11,975
The amortization of the bond discount is not reported in governmental funds,
but is reported in the statement of activities (111)
For the Year Ended December 31, 2009
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
(This statement is continued on the following page.)
- 9 -
Primary
Government
Bond issuance costs are reported as an expenditure in governmental funds, but
are reported as a deferred charge in the statement of activities 94,346$
The amortization of bond issuance costs is not reported in governmental funds,
but is reported in the statement of activities (13,591)
The change in net pension obligation and asset is not reported in governmental
funds, but is reported in the statement of activities (948,643)
The change in net other postemployment benefits obligations are reported
only in the statement of activities (471,790)
Loss on disposal of capital assets (public safety expenses)(22,591)
The change in the accrued interest payable on long-term debt is reported
as interest expense on the statement of activities 204,883
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES (492,686)$
RECONCILIATION OF GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES (Continued)
For the Year Ended December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
See accompanying notes to financial statements.
- 10 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF NET ASSETS
PROPRIETARY FUND
December 31, 2009
Water
and Sewer
CURRENT ASSETS
Cash and cash equivalents 658,993$
Accounts receivable 675,426
Total current assets 1,334,419
NONCURRENT ASSETS
Deferred charges 7,513
Capital assets - not being depreciated 11,805
Capital assets - net of accumulated depreciation 3,855,996
Total noncurrent assets 3,875,314
Total assets 5,209,733
CURRENT LIABILITIES
Accounts payable 251,768
Accrued salaries and wages 15,365
Accrued interest payable 3,296
Refundable deposits 1,000
Installment purchase contract -
current installments 51,148
Notes payable - current maturities 75,943
Bonds payable - current maturities 271,250
Total current liabilities 669,770
LONG-TERM LIABILITIES
Bonds payable 1,551,114
Net other postemployment benefit obligation 142,074
Total long-term liabilities 1,693,188
Total liabilities 2,362,958
NET ASSETS
Invested in capital assets, net of related debt 1,918,346
Unrestricted 928,429
TOTAL NET ASSETS 2,846,775$
See accompanying notes to financial statements.
- 11 -
Water and
Sewer
OPERATING REVENUES
Water sales 4,180,807$
Sewer charges 775,300
Meter and connection fees 34,174
Miscellaneous 104,684
Total operating revenues 5,094,965
OPERATING EXPENSES
Personal services 1,432,619
Contractual services and other charges 822,227
Water purchases 2,011,675
Commodities 321,862
Utilities 107,332
Total operating expenses 4,695,715
OPERATING INCOME BEFORE DEPRECIATION 399,250
DEPRECIATION 252,631
OPERATING INCOME 146,619
NONOPERATING REVENUES (EXPENSES)
Rental income 146,241
Investment income 3,469
Interest expense and fiscal agent fees (47,515)
Total nonoperating revenues (expenses)102,195
INCOME BEFORE CONTRIBUTIONS 248,814
CONTRIBUTIONS 108,134
CHANGE IN NET ASSETS 356,948
NET ASSETS, JANUARY 1, AS 2,591,342
PREVIOUSLY REPORTED
Prior period adjustment (101,515)
NET ASSETS, JANUARY 1, AS RESTATED 2,489,827
NET ASSETS, DECEMBER 31 2,846,775$
For the Year Ended December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUND
See accompanying notes to financial statements.
- 12 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
For the Year Ended December 31, 2009
Water and
Sewer
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 5,057,993$
Receipts from other funds (428)
Receipts from miscellaneous revenues 146,241
Payments to suppliers (3,295,021)
Payments to employees (1,376,695)
Net cash from operating activities 532,090
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
None -
Net cash from noncapital
financing activities -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Capital additions (473,500)
Installment purchase contract payments (48,913)
Note payments (74,077)
Bond principal payments (300,000)
Bond and notes interest payments (50,940)
Bond issuance costs paid 16,961
Net cash from capital and
related financing activities (930,469)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 3,469
Net cash from investing activities 3,469
NET DECREASE IN CASH AND
CASH EQUIVALENTS (394,910)
CASH AND CASH EQUIVALENTS, JANUARY 1 1,053,903
CASH AND CASH EQUIVALENTS, DECEMBER 31 658,993$
(This statement is continued on the following page.)
- 13 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUND
For the Year Ended December 31, 2009
Water and
Sewer
RECONCILIATION OF OPERATING INCOME TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income 146,619$
Adjustments to reconcile operating income to net
cash from operating activities
Rental income 146,241
Depreciation 252,631
Increase in other postemployment benefit obligation 40,559
Changes in operating assets and liabilities
Receivables (36,972)
Refundable deposits (23,575)
Due from other funds (428)
Accounts payable and accrued expenses 7,015
NET CASH FROM OPERATING ACTIVITIES 532,090$
SCHEDULE OF NONCASH TRANSACTIONS
Capital contribution from developer 108,134$
See accompanying notes to financial statements.
- 14 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF FIDUCIARY NET ASSETS
PENSION TRUST FUNDS
December 31, 2009
Cash and cash equivalents 1,129,262$
Investments, at fair value
Equity mut ual funds 20,316,006
Bond index fund 23,901,391
Money market mutual funds 950,660
Annuit y co nt racts 9,545,915
Receivables
Accrued interest 172
Other 20,457
Due from primary government 2,530
Total assets 55,866,393
LIABILITIES
Accounts payable 9,610
Total liabilit ies 9,610
NET ASSETS HELD IN TRUST FOR
PENSION BENEFITS 55,856,783$
ASSETS
See accompanying notes to financial statements.
- 15 -
VILLAGE OF MORTON GROVE, ILLINOIS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PENSION TRUST FUNDS
For the Year Ended December 31, 2009
ADDITIONS
Contributions
Employer 3,462,418$
Employee 760,097
Total contributions 4,222,515
Investment income
Net appreciation in fair value
of investment s 6,056,206
Interest 447,434
Total investment inco me 6,503,640
Less investment expense (82,256)
Net investment income 6,421,384
Total additions 10,643,899
DEDUCTIONS
Retirement benefits 3,735,134
Duty/nonduty disabilit y benefit s 531,138
Surviving spouse benefits 349,998
Administ rative expenses 88,158
Total deductions 4,704,428
NET INCREASE 5,939,471
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS
January 1 49,917,312
December 31 55,856,783$
See accompanying notes to financial statements.
- 16 -
-17 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
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)
-18 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
a.Reporting Entity (Continued)
Police Pension Employees Retirement System (PPERS)
The Village’s police employees participate in the Police Pension Employees
Retirement System (PPERS). PPERS functions for the benefit of these employees
and is governed by a five member pension board. Two members appointed by the
Village’s President, one elected pension beneficiary and two elected police employees
constitute the pension board. The Village and PPERS participants are obligated to
fund all PPERS costs based upon actuarial valuations. The State of 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)
-19 -
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)
-20 -
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)
-21 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d.Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues and additions are recorded when earned and
expenses and deductions are recorded when a liability is incurred. Grants and similar items
are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met. Operating revenues and expenses are directly attributable to the operation
of the proprietary funds. 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 accounting, revenues are recognized when susceptible to
accrual (i.e., when they become both measurable and available). Measurable means
the amount of the transaction can be determined and available means collectible
wit hin t he current period or soon enough thereafter 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 liability is incurred. Principal and interest on
general long-term debt are recorded as expenditures when due.
Sales taxes owed to the state at year end, franchise taxes, licenses, charges for services
and interest associated with the current fiscal period are all considered to be susceptible to
accrual and are recognized as revenues of the current fiscal period. Income and motor
fuel 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 permit revenues are not
susceptible-to-accrual because generally they are not measurable until received in
cash.
In applying the susceptible-to-accrual concept to intergovernmental revenues, the
legal and contractual requirements of the numerous individual programs are used as
guidelines. Monies that are virtually unrestricted as to purpose of expenditure, which
are usually revocable only for failure to comply with prescribed compliance
requirements, are reflected as revenues at the time of receipt or earlier if t he
susceptible-to-accrual criteria are met.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-22 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d.Measurement Focus, Basis of Accounting and Financial Statement Presentation
(Continued)
The Village reports unearned/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 t o 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 equivalents.
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 pensio n
trust funds are stated at fair value. Fair value is based on prices listed on national
exchanges as of December 31, 2009 fo r debt and equity securities. Mutual funds,
investment funds and insurance separate accounts are valued at contract value as of
December 31, 2009.
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)
-23 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
g.Interfund Transactions (Continued)
Internal service transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses
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 more 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 donatio n.
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)
-24 -
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 liability of the
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 portion of
accumulating sick leave benefits that it is estimated will be taken as “terminal leave”
at retirement.
In prior years, the General and Water and Sewer Funds have been used to liquidate
the liabilit y fo r compensated absences.
In addition, the Village has recorded $398,509 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)
-25 -
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
l.Long-Term Obligations
In the government-wide financial statements, and proprietary fund in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities or proprietary fund financial
statements. Bond premiums and discounts, 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 for use fo r 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)
-26 -
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 estimates and assumpt io ns 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 $975,505
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 agreement s, short-term
commercial paper rated within the three highest classifications by at least two standard
rating services,Illino is Funds and derivatives consistent with the GFOA Recommended
Practice on Use of Derivatives by state and local governments. Pensio n 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 the State of Illinois, Office of the
Treasurer, which allows governments within the state to pool their funds for investment
purposes. Illinois Funds is not registered with the SEC as an investment company, but does
operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940.
Investments in Illinois Funds are valued at Illinois Fund’s share price, the price fo r which
the investment could be sold.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-27 -
3.DEPOSITS AND INVESTMENTS (Continued)
Illino is Metropolitan Investment Fund (IMET) is a not-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 inst it utions is the risk that in the event of a
bank’s failure, the Village’s deposits may not be returned to it. The Village’s investment
policy requires pledging of collateral with a fair value of 110% of all bank balances in
excess of federal depository insurance with the collateral held by an agent of the Village in
the Village’s name.
As of December 31, 2009, the Village had $2,834,134 in uninsured/uncollateralized
deposits out of $5,171,452 at one financial institution.
Village Investments
As of December 31, 2009, the Village had the following debt security investment s and
mat urities.
Investment Maturities (in Years)
Less More
Fair Value than 1 1-5 6-10 than 10
U. S. agency obligations $594,762 $594,762 $-$-$-
Illinois Funds 2,954,563 2,954,563 ---
Illinois Metropolitan Investment
Fund 255,603 255,603 ---
TOTAL $3,804,928 $3,804,928 $-$-$-
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-28 -
3.DEPOSITS AND INVESTMENTS (Continued)
Village Investments (Continued)
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. However, securities
may be sold prior to maturity if the sale minimizes the loss of principal in a declining credit
market, a security swap would improve the quality,yield o r target duration of the portfolio
or for liquidity needs of the portfolio. Investments reserve funds may be purchased with
mat urities to match future projects or liability requirements.
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 or implicitly 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 no t 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.
Concentration of credit risk -The Village’s investment policy does not contain any specific
guidelines on the diversification of the investment portfolio. At December 31, 2009, the
Village had 45.86% of its investments in Illino is Funds and 40.94% in negotiable CD’s.
Municipal Employee’s Retirement Fund Investments
The Village’s municipal employees participate in MERF. Continental Insurance Company
(CNA) manages and maintains the activities of MERF.
As of December 31, 2009, MERF had the following investments and maturities.
Investment Maturities (in Years)
Less More
Fair Value than 1 1-5 6-10 than 10
Annuity contracts $9,545,915 $9,545,915 $-$-$-
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-29 -
3.DEPOSITS AND INVESTMENTS (Continued)
Police Pension Fund Deposits
Custodial credit risk for deposits with financial institutions is the risk that in the event of a
bank’s failure, the Police Pension 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 Police Pension Fund in the Police Pension Fund’s name.
Police Pensio n Fund Investments
As of December 31, 2009, the Police Pension Fund had the following debt security
investment s and maturities.
Investment Maturities (in Years)
Less More
Fair Value than 1 1-5 6-10 than 10
Government bond index fund $12,622,134 $12,622,134 $-$-$-
Illinois Funds 773,553 773,553 ---
Money market mutual funds 477,468 477,468 ---
TOTAL $13,873,155 $13,873,155 $-$-$-
In accordance with its investment policy, the Police Pension Fund limits it s 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 invest ment s in t he Police Pension Fund.
The Police Pension Fund limits its exposure to credit risk, the risk that the issuer of a debt
security will no t pay it s 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, the money market mutual funds and the
Illino is Funds are all 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 it s 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-30 -
3.DEPOSITS AND INVESTMENTS (Continued)
Police Pension Fund Investments (Continued)
Concentration of credit risk -the Police Pension Fund’s investment policy states investment
parameters for each asset class. Percentage allocations are int ended to serve as guidelines:
Minimum Maximum
Equities 10%45%
International Equities 0%10%
Fixed Income & Cash 5%90%
In addition, the Police Pension Fund’s investments of common, preferred or convertible
preferred stock, separate accounts managed by life insurance companies and mutual funds
shall no t exceed 35% of the market value of the Police Pension Fund’s net present assets
and an additional 10% allowed to be invested in equities through a mutual fund or separate
account of a life insurance company. At December 31, 2009, 51.52% of the Police Pension
Fund investments were invested in the Northern Trust government bond index fund.
55.48% of the Police Pension Fund investments in equity mutual funds were invested in the
Northern Trust S&P 500 Equity Fund.
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 Fund’s deposits may not be returned to them. The
Firefighters’Pension Fund’s investment policies require pledging of collateral with a fair
value of 110% of all bank balances in excess of federal depository insurance with the
collat eral held by an agent of the Firefighters’ Pension Fund in the Firefighters’ Pensio n
Fund’s name.
Firefight ers’Pension Fund Investments
As of December 31, 2009, the Firefight ers’Pension Fund had the following investments and
mat urities.
Investment Maturities (in Years)
Less More
Fair Value than 1 1-5 6-10 than 10
Government bond index fund $11,279,257 $11,279,257 $-$-$-
Money market mutual funds 473,192 473,192 ---
TOTAL $11,752,449 $11,752,449 $-$-$-
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-31 -
3.DEPOSITS AND INVESTMENTS (Continued)
Firefight ers’Pension Fund Investments (Continued)
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 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 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 mo ney market mutual funds are all
rated AAA.
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 t he 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 invested in one individual security or in cash.
Also , with the exception of U.S. Treasury securities, no more than 40% of the total fund’s
investment portfolio may be invest ed in a single security type. At December 31, 2009,
45,19% of the Firefighters’ Pension Fund investments were invested in equity mutual funds;
5.00% in t he Northern Trust Structured Small Cap Fund, 30.05% in t he Northern Trust
Collective Daily All Country Fund and 10.13% in t he Northern Trust S&P 500 Equity
Fund. 52.60% of the Fir efight ers’ Pension Fund investments were invested in the Northern
Trust government bond index fund.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-32 -
4.RECEIVABLES
Property taxes for 2009 attach as an enforceable lien on January 1, 2009 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, 2009 and August 1, 2009 and are payable in two installments, on or about
March 1, 2009 and September 1, 2009. The County collects such taxes and remits them
periodically. The allowance for uncollectible taxes has been stated at 3% of the tax levy, to
reflect actual collection experience. Since the 2009 levy is int ended to fund the 2010 fiscal
year, the levy has been recorded as a receivable and deferred revenue.
5.CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2009 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
Construction in Progress -54,808 -54,808
Total capital assets not being
depreciated 42,912,581 54,808 -42,967,389
Capital assets being depreciated
Buildings and improvements 18,037,722 138,150 -18,175,872
Vehicles and equipment 5,666,334 115,495 255,789 5,526,040
Infrastructure 26,464,942 --26,464,942
Total capital assets being depreciated 50,168,998 253,645 255,789 50,166,854
Less accumulated depreciation for
Buildings and improvements 8,939,421 596,710 -9,536,131
Vehicles and equipment 4,309,415 255,478 233,198 4,331,695
Infrastructure 22,274,114 258,815 -22,532,929
Total accumulated depreciation 35,522,950 1,111,003 233,198 36,400,755
Total capital assets being
depreciated, net 14,646,048 (857,358)22,591 13,766,099
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $57,558,629 $(802,550)$22,591 $56,733,488
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-33 -
5.CAPITAL ASSETS (Continued)
Primary Government (Continued)
Depreciation expense was charged to functions/programs o f t he governmental activities as
fo llo ws:
GOVERNMENTAL ACTIVITIES
General government $452,143
Public safety 277,392
Streets, sidewalks and sewers 381,468
TOTAL DEPRECIATION EXPENSE -GOVERNMENTAL ACTIVITIES $1,111,003
Beginning
Balances
January 1 Additions Retirements
Ending
Balances
December 31
BUSINESS-TYPE ACTIVITIES
Capital assets not being depreciated
Construction in progress $166,598 $11,805 $166,598 $11,805
Total capital assets not being
depreciated 166,598 11,805 166,598 11,805
Capital assets being depreciated
Buildings and improvements 9,524,443 108,134 -9,632,577
Equipment 1,443,788 628,293 -2,072,081
Total capital assets being
depreciated 10,968,231 736,427 -11,704,658
Less accumulated depreciation for
Buildings and improvements 6,474,541 132,575 -6,607,116
Equipment 1,121,490 120,056 -1,241,546
Total accumulated depreciation 7,596,031 252,631 -7,848,662
Total capital assets being
depreciated, net 3,372,200 483,796 -3,855,996
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $3,538,798 $495,601 $166,598 $3,867,801
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-34 -
6.RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; injuries to employees and natural disasters.
These risks are covered by the Village’s participation in Intergovernmental Risk
Management Association (IRMA), an organization of 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 administration/litigation management services; unemployment claim
administ ration/litigation management services; unemployment claim administ ration;
extensive risk management/loss control consulting and training programs and a risk
info rmation system and financial reporting service for its members.
The Village’s payments to IRMA are displayed on the financial statements as
expenditures/expenses in appropriate funds. Each member assumes the first $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, 2009.
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, 2009,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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-35 -
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 co nt rol 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 the following property:
Adjacent to PW building 7828 Nagle No cost allo cated
Future minimum rentals are as fo llo ws:
7828 Nagle
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)
-36 -
8.LONG-TERM DEBT (Continued)
a.General Obligation Bonds (Continued)
General obligation bonds are direct obligations and pledge the full faith and credit of
the Village. General obligation bonds currently outstanding are as follows:
Fund Debt
Retired By
Balances
January 1 Additions Reductions
Balances
December 31
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
$2,093,750
6,281,250
$-
-
$2,093,750
6,281,250
$-
-
$-
-
$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 -405,000 8,795,000 425,000
$7,650,000 General
Obligation Refunding
Bonds dated April 1,
2009, due in annual
installments of
$225,000 to
$1,690,000 plus
interest at 1.0% to
2.6%, due on June 1
and December 1 of
each year.
Water
and
Sewer
Debt
Service
-
-
1,912,500
5,737,500
56,250
168,750
1,856,250
5,568,750
271,250
813,750
$4,920,000 General
Obligation Bonds
dated October 1, 2009,
due in annual
installments of
$355,000 to $600,000
plus interest at 3.0%
to 4.125%, due on
June 1 and
December 1 of each
ye ar.
Waukegan
Road
TIF -4,920,000 -4,920,000 355,000
TOTAL $17,575,000 $12,570,000 $9,005,000 $21,140,000 $1,865,000
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-37 -
8.LONG-TERM DEBT (Continued)
b.Revolving Loans Payable
The Village entered into several installment contracts with the Illinois 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
$1,633,332
150,021
$-
-
$420,612
74,078
$1,212,720
75,943
$435,803
75,943
TOTAL $1,783,353 $-$494,690 $1,288,663 $511,746
c.Installment Notes Payable
The Village issues inst allment notes payable to provide funds for the acquisitio n 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
$117,992
100,060
$-
-
$57,602
48,912
$60,390
51,148
$60,390
51,148
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 71,066 -71,066 --
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-38 -
8.LONG-TERM DEBT (Continued)
c.Installment Notes Payable (Continued)
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 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 2,088,477 -185,048 1,903,429 193,718
$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 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 4,980,000 -4,980,000 --
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-39 -
8.LONG-TERM DEBT (Continued)
c.Installment Notes Payable (Continued)
Fund Debt
Retired By
Balances
January 1 Additions Reductions
Balances
December 31
Current
Portion
$2,685,000 General
Obligation Promissory
Note, Series 2009,
dated December 1,
2009, due in one
installment of
$2,685,000 on
December 15, 2011,
plus interest at 3.45%
through December 15,
2011.
Lehigh/
Ferris TIF $-$2,685,000 $-$2,685,000 $-
TOTAL $10,482,595 $2,685,000 $8,467,628 $4,699,967 $305,256
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 for
existing properties located on Waukegan Road and existing on the date when the TIF
was formed. Payments are made December 31 of each year and shall continue until
the conclusion of the TIF at which time all future growth in the equalized assessed
valuation will be released for distribution of property tax revenues to the overlapping
taxing jurisdictions. During the year ended December 31, 2009, the Village made
total int ergovernmental payments of $146,018. The tax revenue is determined on an
annual basis and the estimat ed 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 for 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, 2009, the Village made
total int ergovernmental payment s of $76,239. The tax revenue is determined on an
annual basis and the estimated future liability is shown below.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-40 -
8.LONG-TERM DEBT (Continued)
e.Intergovernmental Agreement with School District 70 (Continued)
Year
Ending
School
District 67
School
District 70 Total
2010 $159,614 $86,146 $245,760
2011 173,720 96,374 270,094
2012 188,354 106,934 295,288
2013 203,538 117,838 321,376
2014 219,291 129,096 348,387
2015 -2019 1,046,849 827,584 1,874,433
2020 -2023 -905,380 905,380
TOTAL $1,991,366 $2,269,352 $4,260,718
f.Debt Service Requirements to Maturity
Year General Obligation Bonds
Ending Governmental Activities Business-Type Activities
December 31,Principal Interest Total Principal Interest Total
2010 $1,593,750 $677,048 $2,270,798 $271,250 $36,695 $307,945
2011 1,836,250 588,926 2,425,176 338,750 33,304 372,054
2012 1,896,250 543,241 2,439,491 408,750 27,884 436,634
2013 2,185,000 497,005 2,682,005 415,000 20,323 435,323
2014 2,252,500 435,518 2,688,018 422,500 10,985 433,485
2015 1,050,000 366,669 1,416,669 ---
2016 1,100,000 327,113 1,427,113 ---
2017 1,155,000 284,238 1,439,238 ---
2018 1,860,000 237,775 2,097,775 ---
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 $19,283,750 $4,590,333 $23,874,083 $1,856,250 $129,191 $1,985,441
Year Total Outstanding Loans
Ending Governmental Activities Business-Type Activities
December 31,Principal Interest Total Principal Interest Total
2010 $435,803 $39,550 $475,353 $75,943 $1,427 $77,370
2011 451,544 23,808 475,352 ---
2012 325,373 7,499 332,872 ---
TOTAL $1,212,720 $70,857 $1,283,577 $75,943 $1,427 $77,370
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-41 -
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
2010 $254,108 $174,646 $428,754 $51,148 $2,016 $53,164
2011 2,886,754 160,774 3,047,528 ---
2012 209,965 59,930 269,895 ---
2013 218,833 51,062 269,895 ---
2014 227,912 41,984 269,896 ---
2015 237,366 32,529 269,895 ---
2016 247,158 22,738 269,896 ---
2017 257,466 12,429 269,895 ---
2018 109,257 2,244 111,501 ---
TOTAL $4,648,819 $558,336 $5,207,155 $51,148 $2,016 $53,164
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,
Restated Additions Reductions
Balances
December 31
Due Within
One Year
GOVERNMENTAL ACTIVITIES
General obligation bonds
payable $15,481,250 $10,657,500 $6,855,000 $19,283,750 $1,593,750
Unamortized premium on bonds 96,211 -6,450 89,761 -
Unamortized discount on bonds -(11,975)(111)(11,864)-
Unamortized refunding loss -(111,824)(6,206)(105,618)-
Revolving loans payable 1,633,332 -420,612 1,212,720 435,803
Installment notes payable 10,382,534 2,685,000 8,418,715 4,648,819 254,108
Intergovernmental agreement
payable 4,482,974 -222,256 4,260,718 245,760
Net pension obligation 12,227,338 948,643 -13,175,981 -
Net other postemployment
benefit obligation 1,180,855 471,790 -1,652,645 -
*Compensated absences payable 590,325 453,339 590,325 453,339 45,334
TOTAL GOVERNMENTAL
ACTIVITIES DEBT $46,074,819 $15,092,473 $16,507,041 $44,660,251 $2,574,755
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-42 -
8.LONG-TERM DEBT (Continued)
g.Changes in Long-Term Liabilit ies (Continued)
Primary Government (Continued)
Balances
January 1,
Restated Additions Reductions
Balances
December 31
Due Within
One Year
BUSINESS-TYPE ACTIVITIES
General obligation bonds
payable $2,093,750 $1,912,500 $2,150,000 $1,856,250 $271,250
Unamortized refunding loss -(37,275)(3,389)(33,886)-
Revolving loans payable 150,021 -74,078 75,943 75,943
Installment notes payable 100,060 -48,912 51,148 51,148
Net other postemployment
benefit obligation 101,515 40,559 -142,074 -
TOTAL BUSINESS-TYPE DEBT $2,445,346 $1,915,784 $2,269,601 $1,091,529 $398,341
* 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 municipalities, payable from ad valorem property
tax receipts, only in excess of the following percentages of the assessed value of its
taxable property . . .(2) if it s 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-43 -
8.LONG-TERM DEBT (Continued)
i.Refunding Bonds
On April 1, 2009, the Village issued $7,650,000 Series 2009 General Obligation
Refunding Bonds, to advance refund, $5,550,000 of the General Obligation Bonds,
Series 1999. The proceeds of the 2009 issuance were placed in an irrevocable trust
to provide all future debt service payments on the old bonds. Accordingly, the trust
account assets and the liability for the defeased bonds are not included in the financial
statements. The defeased bonds were called and retired on May 15, 2009. As a
result of the refunding, the Village achieved a cash flow savings and an economic gain
on the refunding of $511,231.
On October 1, 2009, the Village issued $4,920,000 Series 2009A General Obligation
Refunding Bonds, to advance refund, $4,785,000 of the General Obligation
Promissory Note, Series 2002. The proceeds of the 2009 issuance were placed in an
ir revocable trust to provide all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not
included in the financial statements. The defeased bonds are due annually on June 1
through June 1, 2022. At December 31, 2009, $4,785,000 of the refunded bonds was
outstanding. As a result of the refunding, the Village achieved a cash flow savings
and an economic gain on the refunding of $539,500.
On December 1, 2009, the Village issued $2,685,000 Series 2009B General
Obligation Refunding Installment Notes, to advance refund, $2,625,000 of the
Lehigh/Ferris TIF Installment Note, Series 2006. The proceeds of the 2009 issuance
were placed in an irrevocable trust to provide all fut ure debt service payments on the
old bonds. Accordingly, the trust account assets and the liability for the defeased
bonds are not included in the financial statements. The defeased bonds were called
and retired on December 1, 2009. As a result of the refunding, the Village achieved a
cash flow savings and an economic gain on the refunding of $137,265.
j.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. Amo unts due to CVS under the terms of
the agreement were $70,716 fo r fiscal year 2009.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-44 -
8.LONG-TERM DEBT (Continued)
j.Economic Development and Redevelopment Agreements (Continued)
2.Gary D. McGrath
On January 14, 2002, the Village entered int o 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 fo r fiscal year 2009.
3.Bond Drug Company of Illinois, dba Walgreens and MRD -Morton Grove, LP
On June 1, 1999, the Village entered into a redevelopment agreement with
Bond Drug Company of Illinois (Walgreens) and MRD -Morton Grove, LP to
develop a site for a Walgreens Drug Store in the Village. The Village has
required, as part of the redevelopment agreement, that certain infrastructure
improvements be constructed. In order to comply with the Village’s
requirements for infrastructure improvement,the Village has agreed to enter
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. Amo unts due to Walgreens under the terms of the agreement were
$16,888 fo r fiscal year 2009.
k.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)
-45 -
9.INTERFUND ASSETS/LIABILITIES
a.Due From/To Other Funds
Receivable Fund Payable Fund Amo unt
GOVERNMENTAL FUNDS
Major Funds
General Lehigh/Ferris TIF $86,429
TOTAL GOVERNMENTAL FUNDS $86,429
Significant amo unts due from/to other funds at December 31, 2009 are as follows:
·$86,429 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.
b.Due From/To Fiduciary Funds
Receivable Fund Payable Fund Amo unt
PENSION TRUST FUNDS
Municipal Employees Retirement General $2,530
TOTAL $2,530
Significant amo unts due from/to fiduciary funds at December 31, 2009 are as follows:
·$2,530 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 Fund fo r prior years’
debt payments in the amount of $1,588,930. The advance will be paid back as funds
become available.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-46 -
9.INTERFUND ASSETS/LIABILITIES (Continued)
d.Interfund Transfers
Transfers
In
Transfers
Out
GOVERNMENTAL ACTIVITIES
Major Funds
General $-$136,945
Debt Service 136,945 -
TOTAL GOVERNMENTAL ACTIVITIES $136,945 $136,945
The purposes of the significant interfund transfers are as follows:
·$136,945 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 Communit y Development Block Grants.
In connection with these grants, the Village is required to comply with specific terms
and agreements, as well as applicable federal and state laws and regulations. Such
compliance is subject to review and audit by the grantors and their representatives.
In the opinion of management, the Village has complied with all requirements.
However, since such programs are subject to future audit or review, the possibility of
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)
-47 -
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 23 municipalit ies. SWANCC is a municipal corporation and public body
polit ic and corporate established pursuant to the Intergovernmental Cooperation Act of the
State of Illino is. 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 appoint ed 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 monies and 3) all income, fees, service charges and all grants, rents and receipts derived
by SWANCC from the ownership and operation of the system. SWANCC covenants to
establish fees and charges sufficient to provide revenues to meet all its requirements.
SWANCC has entered into solid waste disposal contracts with the member municipalities.
The contracts are irrevocable and may not be terminated or amended except as provided for
in 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 $466,793 to
SWANCC in 2009, which includes payment fo r debt contribution. The Village does not
have an equity interest in SWANCC at December 31, 2009.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-48 -
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)
-49 -
13.OTHER POSTEMPLOYMENT BENEFITS (Continued)
b.Benefits Provided
The Village provides pre and post-Medicare postretirement health insurance to
retirees, their spouses and dependents (enrolled at time of employee’s retirement). To
be eligible 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, 2009, membership consisted of:
Retirees and beneficiaries currently receiving
benefit s 38
Terminat ed employees entitled
to benefit s but not yet receiving t hem -
Active employees 154
TOTAL 192
Participating employers 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)
-50 -
13.OTHER POSTEMPLOYMENT BENEFITS (Continued)
e.Annual OPEB Costs and Net OPEB Obligation (Continued)
The Village’s annual OPEB cost, the percentage of annual OPEB cost contributed to
the plan, and the net OPEB obligation was as follows:
Fiscal
Year
Ended
Annual
OPEB
Cost
Employer
Contributions
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
December 31, 2007 $978,885 $292,603 29.9%$686,282
December 31, 2008 1,019,875 423,787 41.5%1,282,370
December 31, 2009 1,075,812 560,463 52.1%1,794,719
The net OPEB obligation as of December 31, 2008 was calculated as follows:
Annual required contribution $1,060,889
Interest on net OPEB obligation 57,707
Adjustment to annual required contribution (45,784)
Annual OPEB cost 1,072,812
Contributions made 560,463
Increase in net OPEB obligation 512,349
Net OPEB obligation,beginning of year, restated 1,282,370
NET OPEB OBLIGATION,END OF YEAR $1,794,719
Funded Status and Funding Progress: The funded status and funding progress of the
plan as of December 31, 2009, was as follows:
Actuarial accrued liability (AAL)$13,755,977
Actuarial value of plan assets -
Unfunded actuarial accrued liability (UAAL)13,755,977
Funded ratio (actuarial value of plan assets/AAL)0.0%
Covered payroll (active plan members)$11,478,161
UAAL as a percentage of covered payroll 119.8%
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-51 -
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 liabilities for
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 of each
valuation and the historical pattern of sharing of benefit costs between the employer
and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce short-term volatility in actuarial accrued
liabilit ies and the actuarial value of assets, consistent with the long-term perspective
of the calculations.
In the December 31, 2009, 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, 2009 was 29 years.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-52 -
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
administ ered by IMRF, an agent mult iple-employer public employee retirement
syst em, the Municipal Employees’Retirement Fund (MERF), a single employer plan;
the Police Pension Plan which is a single-employer pension plan and the Firefighters’
Pension Plan which is also a single-employer pension plan. The benefits, benefit
levels, employee contributions and employer contributions for the Police and
Fir efight ers’Pension Plans are governed by Illinois Compiled Statutes and can only be
amended by the Illinois General Assembly. None of the pension plans issue separate
reports on the pension plans.
Illinois Municipal Retirement Fund (IMRF)
IMRF provides retirement, disability, annual cost of living adjustments 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 info rmation. The report may be obtained at
www.imrf.org/pubs/pubs_homepage.htm or by writing to the Illinois Municipal
Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
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 2009 was 9.43% 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, 2009 was 27 years.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-53 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
a.Plan Descriptions (Continued)
Illino is Municipal Retirement Fund (IMRF)(Continued)
For December 31, 2009, the Village’s annual pension cost of $239,238 was equal to
the Village’s required and actual contributions. The required contribution was
determined as part of the December 31, 2007 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) postretirement benefit increases of 3% annually. The actuarial value of IMRF
assets was determined using techniques that smooth the effects of short-term volatility
in t he market value of investments over a five-year period with a 20% corridor. In
2010, the unfunded actuarial accrued liability is being amortized on a level percentage
of projected payroll o n an open 30 year basis.
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 amount equal to 2.50% of their final rate of earnings, for each year
of credited service up to 20 years, 2.00% of their final earnings rate for the next ten years
of credited service and 1.00% for each year thereafter. For those SLEP members retiring
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 2009 was 12.49% of covered payroll.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-54 -
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 Firefight ers’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, 2009 was 13.39% of covered payroll.
At December 31, 2009, the MERF membership consisted of:
Retirees and beneficiaries currently receiving benefits 6
Terminat ed employees entitled to benefits but not
yet receiving them -
Active employees 31
Inactive employees 17
TOTAL 54
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, 2009, the Police Pension Plan membership
consisted of:
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-55 -
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 20
TOTAL 97
The Police Pension Plan provides retirement benefits as well as death and disability
benefit s. Employees attaining t he 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, 2009, the Village’s contribution was
37.76% of covered payroll.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-56 -
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, 2009, 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 1
Current employees
Vested 24
Nonvested 18
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 monthly retirement 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 thereafter.
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
accumulated interest. The Village is required to contribute the remaining amounts
necessary to finance the plan as actuarially determined by an enrolled actuary.
Effective July 1, 1993, the Village has until the year 2033 to fully fund t he past
services costs for the Firefighters’Pension Plan. For the year ended December 31,
2009, the Village’s contribution was 46.69% of covered payroll.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-57 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
b.Summary of Significant Accounting Policies and Plan Asset Matters
The financial statements are prepared using the accrual basis of accounting.
Employee and employer contributions are recognized as revenues in the period in
which employee services are performed.
Investments are reported at fair value. Investment income is recognized as earned.
Gains and losses on sales and exchanges of fixed-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,
2007
December 31,
2007
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 27 Years,
Closed
27 Years,
Closed
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-58 -
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 January 1,
2009
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)
-59 -
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%5.00%5.00%
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%
The Village’s annual pension cost and net pension obligation (asset) fo r the current
year ended December 31, 2009 were as follows:
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Annual required contributions $461,300 $1,644,689 $1,794,274
Interest on net pension obligation 29,539 420,217 475,862
Adjustment to annual required contribution 118,386 (339,381)(384,321)
Annual pension cost 609,225 1,725,525 1,885,815
Contributions made 298,658 1,390,415 1,582,849
Increase in net pension
obligation (asset)310,567 335,110 302,966
Net pension obligation (asset),
beginning of year 279,618 5,602,895 6,344,825
NET PENSION OBLIGATION (ASSET),
END OF YEAR $590,185 $5,938,005 $6,647,791
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-60 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
e.Trend Information
Trend information gives an indication of the progress made in accumulating sufficient
assets to pay benefit s when due.
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Actuarial valuation date January 1,
2009
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
Fiscal
Year
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Annual pension cost 2007 $475,787 $1,286,241 $1,600,074
(APC)2008 594,511 1,498,968 1,710,348
2009 609,225 1,725,525 1,885,815
Actual contribution 2007 $324,483 $1,030,738 $1,262,030
2008 541,636 1,344,344 1,569,399
2009 298,658 1,390,415 1,582,849
Percentage of APC 2007 68.20%80.14%78.87%
contributed 2008 91.11%89.68%91.76%
2009 49.02%80.58%83.93%
Net pension obligation 2007 $226,743 $5,448,271 $6,203,876
(asset)2008 279,618 5,602,895 6,344,825
2009 590,185 5,938,005 6,647,791
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-61 -
14.EMPLOYEE RETIREMENT SYSTEMS (Continued)
f.Funded Status and Funding Progress
The funded status and funding progress of the plans as of December 31, 2009 were as
fo llo ws:
Illinois
Municipal
Retirement
Sheriff’s
Law
Enforcement
Personnel
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension
Actuarial accrued liability (AAL)$1,928,193 $-$9,813,527 $44,566,626 $42,331,261
Actuarial value of plan assets 1,263,960 (21,320)5,865,716 25,154,010 22,359,358
Un funded actuarial accrued
liability (UAAL)664,233 21,320 3,947,811 19,412,616 19,971,903
Funded ratio (actuarial value of
plan assets/AAL)65.55%0.00%59.77%56.4%52.8%
Covered payroll (active plan
members)$2,536,985 $69,944 $2,230,466 $3,682,297 $3,390,072
UAAL as a percentage of covered
payroll 26.18%30.48%176.99%527.19%589.13%
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 $-$1,439,409 $640,513 $2,079,922
Investments
Equity mutual funds -10,626,009 9,689,997 20,316,006
Government bond index fund -12,622,134 11,279,257 23,901,391
Annuity contracts 9,545,915 --9,545,915
Receivables
Accrued interest -24 148 172
Other -20,457 -20,457
Due from primary government 2,530 --2,530
Total assets 9,548,445 24,708,033 21,609,915 55,866,393
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-62 -
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 $-$6,990 $2,620 $9,610
Total liabilities -6,990 2,620 9,610
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS $9,548,445 $24,701,043 $21,607,295 $55,856,783
Changes in Plan Net Assets
Pension Trust Funds
Municipal
Employees’
Retirement
Police
Pension
Firefighters’
Pension Total
ADDITIONS
Contributions
Employer $489,154 $1,390,415 $1,582,849 $3,462,418
Employee 56,079 365,782 338,236 760,097
Total contributions 545,233 1,756,197 1,921,085 4,222,515
Investment income
Net appreciation in fair
value of investments -3,301,694 2,754,512 6,056,206
Interest 440,754 4,133 2,547 447,434
Total investment income 440,754 3,305,827 2,757,059 6,503,640
Less investment expense (28,335)(24,787)(29,134)(82,256)
Net investment income 412,419 3,281,040 2,727,925 6,421,384
Total additions 957,652 5,037,237 4,649,010 10,643,899
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-63 -
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 $440,790 $1,987,390 $1,306,954 $3,735,134
Duty/nonduty disability benefits -69,158 461,980 531,138
Surviving spouse benefits -164,530 185,468 349,998
Administrative expenses -24,748 63,410 88,158
Total deductions 440,790 2,245,826 2,017,812 4,704,428
NET INCREASE 516,862 2,791,411 2,631,198 5,939,471
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS
January 1 9,031,583 21,909,632 18,976,097 49,917,312
December 31 $9,548,445 $24,701,043 $21,607,295 $55,856,783
15.PRIOR PERIOD ADJUSTMENTS
The Village has restated net assets as of January 1, 2009 as fo llo ws:
Government-
Wide
Business-Type
Activities/
Enterprise Fund
FUND BALANCES/NET ASSETS,
JANUARY 1 (as previously reported)$35,409,235 $2,591,342
Restated for:
Accounting correction of net other
postemployment benefit obligation (494,573)(101,515)
FUND BALANCES/NET ASSETS,
JANUARY 1, RESTATED $34,914,662 $2,489,827
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-64 -
16.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.
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 S tatements
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 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-65 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
c.Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statement s 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 items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
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 the 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, 2009. 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-66 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
f.Capital Assets (Continued)
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
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 fo r 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-67 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
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. 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 Illino is Fund’s
share price, the price for which the investment could be sold.
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 st ate 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 bank’s 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-68 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
j.Deposits and Investments (Continued)
2.Investments
The following table presents the debt security investment s and maturities of the
Library’s investments as of December 31, 2009:
Investment Maturities (in Years)
Investment Type Fair Value
Less
than 1 1-5 6-10
Greater
than 10
Illinois Funds $1,502,001 $1,502,001 $-$-$-
TOTAL $1,502,001 $1,502,001 $-$-$-
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 liabilit y
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.
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 the 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.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-69 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
j.Deposits and Investments (Continued)
2.Investments (Continued)
At December 31, 2009, 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 2009 attach as an enfo rceable lien on January 1, 2009, 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, the 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.
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
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-70 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
l.Capital Assets (Continued)
Beginning
Balances
January 1 Additions Retirements
Ending
Balances
December 31
GOVERNMENTAL ACTIVITIES
(Continued)
Less accumulated depreciation for
Buildings and improvements $1,017,208 $28,356 $-$1,045,564
Equipment and vehicles 73,640 7,381 -81,021
Total accumulated depreciation 1,090,848 35,737 -1,126,585
Total capital assets being
depreciated, net 617,948 (35,737)-582,211
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $696,948 $(35,737)$-$661,211
Depreciation expense was charged to functions/programs of the governmental activities as
fo llo ws:
GOVERNMENTAL ACTIVITIES
Culture and recreation $35,737
m.Long-Term Financing from Primary Government
1.Changes in Long-Term Debt
During the year ended December 31, 2009, 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 $27,999 $29,064 $27,999 $29,064 $4,040
TOTAL GOVERNMENTAL
ACTIVITIES $27,999 $29,064 $27,999 $29,064 $4,040
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-71 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
n.Employee Retirement System
1.Plan Description
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
aft er 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 the
preceding ten years of participation) during which the participant received the
highest compensation. Participating members are required to contribute 2.0%
of their annual salary to MERF. The Village is required to contribute the
remaining amounts necessary to fund the MERF as specified by the plan. The
employer contribution for the year ended December 31, 2009 was 15.25% of
covered payroll.
At December 31, 2009, the MERF membership consisted of:
Retirees and beneficiaries currently receiving benefits 8
Terminated employees entitled to benefits but not
yet receiving them -
Active employees 10
Inactive employees 7
TOTAL 25
2.Summary of Significant Accounting Policies and Plan Asset Matters
The financial statements are prepared using the accrual basis of accounting.
Employee and employer contributions are recognized as revenues in the period
in which employee services are performed.
Investments are reported at fair value. Investment income is recognized as
earned. Gains and losses on sales and exchanges of fixed-inco me securities are
recognized on the transaction date.
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-72 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
n.Employee Retirement System (Continued)
3.Annual Pension Cost
Employer contributions have been determined as follows:
Municipal
Employees’
Retirement
Actuarial valuation date January 1, 2009
Actuarial cost method Projected
Unit Credit
Asset valuation method Market
Amor tization method Level Percentage
of Payroll
Amor tization period 29 Years,
Closed
Significant actuarial assumptions
a)Rate of return on 7.50%
present and future assets Compounded
Annually
b)Projected salary increase -4.00%
attributable to inflation Compounded
Annually
c)Additional projected salary 1.00%
increases -seniority/merit
d)Postretirement benefit
increases
None
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-73 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
n.Employee Retirement System (Continued)
4.Net Pension (Asset)
The Library’s annual pension cost and net pension (asset) for the current year
were as follows:
Municipal
Employees’
Retirement
Annual required contributions $78,162
Interest on net pension obligation (4,983)
Adjustment to annual required contribution 4,045
Annual pension cost 77,224
Contributions made 77,185
Increase (decrease) in net pension obligation (asset)39
Net pension obligation (asset),beginning of year, restated (71,183)
NET PENSION (ASSET), END OF YEAR $(71,144)
5.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
Annual pension cost 2007 $63,345
(APC)2008 68,590
2009 77,224
Actual contribution 2007 $64,187
2008 69,125
2009 77,185
Percentage of APC 2007 101.33%
contributed 2008 100.78%
2009 99.95%
Net pension obligation 2007 $(70,648)
(asset)2008 (71,183)
2009 (71,144)
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-74 -
16.COMPONENT UNIT -MORTON GROVE PUBLIC LIBRARY (Continued)
n.Employee Retirement System (Continued)
6.Funded Status and Funding Progress
The funded status and funding progress of the plans as of December 31, 2009
were as follows:
Municipal
Employees’
Retirement
Actuarial accrued liability (AAL)$2,505,729
Actuarial value of plan assets 1,748,853
Unfunded actuarial accrued liability (UAAL)756,876
Funded ratio (actuarial value of plan assets/AAL)69.8%
Covered payroll (active plan members)$506,199
UAAL as a percentage of covered payroll 149.5%
o.Prior Period Adjustment
The Library has restated net assets as of January 1, 2009 as follows:
FUND BALANCES/NET ASSETS,
JANUARY 1 (as previously reported)$2,736,215
Restated for:
Accounting correction of net pension asset 71,183
FUND BALANCES/NET ASSETS,
JANUARY 1, RESTATED $2,807,398
REQUIRED SUPPLEMENTARY INFORMATION
Original
and Final 2008
Budget Actual Actual
REVENUES
Sales taxes 5,475,000$ 4,696,221$ 5,453,839$
Property taxes 8,005,374 7,875,409 8,045,386
Personal property replacement tax 350,000 339,139 396,005
State income taxes 2,010,000 1,824,794 2,125,301
Telecommunications taxes 1,015,000 1,044,888 1,111,509
Utility taxes 1,202,000 1,144,676 1,206,890
Other taxes 1,255,000 1,265,294 1,328,852
Licenses and permits 1,049,600 1,029,669 1,115,215
Intergovernmental 82,000 229,118 110,463
Charges for services 586,200 739,573 841,040
Fines 294,500 346,754 281,457
Investment income 80,000 7,826 108,816
Cable TV franchise fees 200,000 233,278 224,026
Miscellaneous 151,000 402,560 262,690
Total revenues 21,755,674 21,179,199 22,611,489
EXPENDITURES
General government 4,067,715 3,235,134 3,829,837
Public safety 15,320,045 15,138,798 14,639,757
Streets and sidewalks 2,274,644 2,353,029 2,394,391
Sanitation 682,808 644,771 632,928
Vehicle maintenance 736,788 752,089 932,625
Health and human services 682,972 718,045 679,218
Community development 123,255 116,950 114,083
Buildings and inspection services 824,703 807,146 687,918
Total expenditures 24,712,930 23,765,962 23,910,757
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,957,256) (2,586,763) (1,299,268)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 10,000 21,470 17,838
Transfers (out)
Debt service fund (136,945) (136,945) (137,162)
Total other financing sources (uses)(126,945) (115,475) (119,324)
NET CHANGE IN FUND BALANCE (3,084,201)$ (2,702,238) (1,418,592)
FUND BALANCE, JANUARY 1 10,091,854 10,557,567
Prior period adjustment - 952,879
FUND BALANCES, JANUARY 1, AS RESTATED 10,091,854 11,510,446
FUND BALANCE, DECEMBER 31 7,389,616$ 10,091,854$
2009
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, 2009
(with comparative actual for 2008)
(See independent auditor's report.)
- 75 -
Original
and Final 2008
Budget Actual Actual
REVENUES
Property taxes 1,900,000$ 2,760,550$ 2,457,263$
Intergovernmental 10,500 20,154 20,764
Investment income 100,000 285,596 213,507
Miscellaneous - 2,000 -
Total revenues 2,010,500 3,068,300 2,691,534
EXPENDITURES
Current
Economic development
Commodities 1,000 519 760
Contractual services 1,443,029 30,382 1,661,088
Debt service
Principal retirement 905,000 3,530,000 195,000
Interest and fiscal charges 547,993 614,476 593,937
Capital outlay 8,008,320 360,921 129,987
Total expenditures 10,905,342 4,536,298 2,580,772
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (8,894,842) (1,467,998) 110,762
OTHER FINANCING SOURCES (USES)
Issuance of refunding installment note - 2,685,000 -
Proceeds from sale of capital assets 2,000,000 - -
Total other financing sources (uses)2,000,000 2,685,000 -
NET CHANGE IN FUND BALANCE (6,894,842)$ 1,217,002 110,762
FUND BALANCE, JANUARY 1 13,031,365 14,099,959
Prior period adjustment - (1,179,356)
FUND BALANCE, JANUARY 1, AS RESTATED 13,031,365 12,920,603
FUND BALANCE, DECEMBER 31 14,248,367$ 13,031,365$
2009
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, 2009
(with comparative actual for 2008)
(See independent auditor's report.)
- 76 -
Original
and Final 2008
Budget Actual Actual
REVENUES
Property taxes 660,000$ 830,568$ 783,827$
Investment income 15,000 1,645 16,033
Total revenues 675,000 832,213 799,860
EXPENDITURES
Capital outlay 350,000 108,134 4,245
Debt service
Principal 381,001 5,165,048 273,670
Interest and fiscal charges 309,400 301,822 323,630
Bond issuance costs 5,000 37,320 -
Total expenditures 1,045,401 5,612,324 601,545
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (370,401) (4,780,111) 198,315
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds - 4,920,000 -
Discount on debt issuance - (11,975) -
Total other financing sources (uses)- 4,908,025 -
NET CHANGE IN FUND BALANCE (370,401)$ 127,914 198,315
FUND BALANCE (DEFICIT), JANUARY 1 (1,103,419) (1,301,734)
FUND BALANCE (DEFICIT), DECEMBER 31 (975,505)$ (1,103,419)$
2009
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, 2009
(with comparative actual for 2008)
(See independent auditor's report.)
- 77 -
(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, 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%
December 31, 2009 1,263,960 1,928,193 65.55%664,233 2,536,985 26.18%
Note: The Village became a member of the Illinois Municipal Retirement Fund as of January 1, 2005.
December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
ILLINOIS MUNICIPAL RETIREMENT 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 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%)
2009 (21,320) - 0.00%21,320 69,944 30.48%
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, 2009
(See independent auditor's report.)
- 79 -
(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, 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 7,189,731 11,644,312 61.74%4,454,581 2,766,617 161.01%
December 31, 2009 5,865,716 9,813,527 59.77%3,947,811 2,230,466 176.99%
December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
MUNICIPAL EMPLOYEES' RETIREMENT FUND
(See independent auditor's report.)
- 80 -
(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, 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, 2009 25,154,010 44,566,626 56.44%19,412,616 3,682,297 527.19%
December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
POLICE PENSION FUND
(See independent auditor's report.)
- 81 -
(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, 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, 2009 22,359,358 42,331,261 52.82%19,971,903 3,390,072 589.13%
December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF FUNDING PROGRESS
FIREFIGHTERS' PENSION FUND
(See independent auditor's report.)
- 82 -
(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$ 103.65%
2008 - 11,154,462 0.00%11,154,462 10,518,471 106.05%
2009 - 13,042,259 0.00%13,042,259 11,036,693 118.17%
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, 2009
(See independent auditor's report.)
- 83 -
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%
2009 239,238 239,238 100.00%
Note: The Village became a member of the Illinois Municipal Retirement Fund as of January 1,
2005.
December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
ILLINOIS MUNICIPAL RETIREMENT FUND
(See independent auditor's report.)
- 84 -
Annual
Required
Fiscal Employer Contribution Percentage
Year Contributions (ARC)Contributed
2007 14,940$ 14,940$ 100.00%
2008 15,033 15,033 100.00%
2009 8,736 8,736 100.00%
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, 2009
(See independent auditor's report.)
- 85 -
Annual
Required
Calendar Employer Contribution Percentage
Year Contributions (ARC)Contributed
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%
2009 298,658 461,300 64.74%
December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
MUNICIPAL EMPLOYEES' RETIREMENT FUND
(See independent auditor's report.)
- 86 -
Annual
Required
Calendar Employer Contribution Percentage
Periods Contributions (ARC)Contributed
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, 2009 1,390,415 1,644,689 84.54%
December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
POLICE PENSION FUND
(See independent auditor's report.)
- 87 -
Annual
Required
Calendar Employer Contribution Percentage
Periods Contributions (ARC)Contributed
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, 2009 1,582,849 1,794,274 88.22%
December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FIREFIGHTERS' PENSION FUND
(See independent auditor's report.)
- 88 -
Annual
Required
Fiscal Employer Contribution Percentage
Year Contributions (ARC)Contributed
2007 292,603$ 978,885$ 29.89%
2008 423,787 1,013,494 41.81%
2009 560,463 1,060,889 52.83%
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, 2009
(See independent auditor's report.)
- 89 -
-90 -
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2009
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
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 appropriatio 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
Waukegan Road TIF Fund $4,566,923
Debt Service Fund 26,809
Commuter Parking Facilit y Fund 285
9-1-1 Emergency Telephone System Fund 16,377
Economic Development Fund 47,783
VILLAGE OF MORTON GROVE, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (Continued)
-91 -
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
Streets and Sidewalks $97,670
Vehicle Maintenance 15,301
Health and Human Services 35,073
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
GENERAL FUND
The General Fund is used to account for resources traditionally associated with governments
which are not required to be accounted for in another fund. It receives a greater variety and
amount of revenues and finances a wider range of governmental act ivit ie s than any other fund.
Major functions financed by the General Fund include:
Legislat ive Ad ministrative
Legal Finance
Management Informat io n S ystems Police
Fire/ESDA Public Works
Vehicle Maintenance Solid Waste Disposal
Health and Human Services Communit y D evelopment
Building and Inspectional Services
DEBT SERVICE FUND
The Debt Service Fund is used to account for the payment of governmental lo ng-term debt. The
Debt Service Fund accounts for the principal and interest payments of all lo ng-term debt incurred
by t he Village, except for the Water Revenue Bonds and various installment notes, which are
accounted for in the Proprietary Fund.
Original
and Final 2008
Budget Actual Actual
GENERAL GOVERNMENT
Legislative
Personal services 69,680$ 63,476$ 82,732$
Contractual services 65,900 26,079 21,775
Commodities 2,500 4,014 1,129
Total legislative 138,080 93,569 105,636
Administrative
Personal services 481,272 484,956 529,073
Contractual services 38,675 24,332 20,859
Commodities 3,000 874 2,303
Total administrative 522,947 510,162 552,235
Finance
Personal services 1,063,534 1,008,526 1,157,962
Contractual services 1,227,100 1,109,410 1,239,560
Commodities 18,000 9,289 12,165
Total finance 2,308,634 2,127,225 2,409,687
Management information services
Professional services 118,881 126,963 114,092
Contractual services 285,073 234,292 273,463
Capital outlay 63,100 57,934 141,652
Total management information services 467,054 419,189 529,207
Legal
Contractual services 288,000 168,788 113,639
Other expenditures
Other 343,000 (83,799) 119,433
Total other expenditures 343,000 (83,799) 119,433
Total general government 4,067,715 3,235,134 3,829,837
PUBLIC SAFETY
Police
Personal services 7,055,827 7,127,301 6,907,445
Contractual services 992,923 942,037 824,623
Commodities 121,021 69,168 56,825
Capital outlay 194,650 151,654 135,782
Total police 8,364,421 8,290,160 7,924,675
2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended December 31, 2009
(with comparative actual for 2008)
(This schedule is continued on the following pages.)
- 92 -
Original
and Final 2008
Budget Actual Actual
PUBLIC SAFETY (Continued)
Fire
Personal services 6,414,507$ 6,468,712$ 6,355,312$
Contractual services 307,016 291,146 261,029
Commodities 97,159 79,189 90,126
Capital outlay 125,000 - -
Total fire 6,943,682 6,839,047 6,706,467
Civil preparedness
Personal services 1,292 1,292 1,292
Contractual services 4,900 2,984 3,123
Commodities 3,250 3,865 4,200
Capital outlay 2,500 1,450 -
Total civil preparedness 11,942 9,591 8,615
Total public safety 15,320,045 15,138,798 14,639,757
STREETS AND SIDEWALKS
Streets and sidewalks
Personal services 1,626,442 1,624,652 1,629,127
Contractual services 275,800 305,973 281,467
Commodities 272,300 132,897 401,259
Capital outlay 58,200 59,890 126,650
Less administrative fees
Motor Fuel Tax Fund (207,000) - (295,000)
Commuter Parking Facility Fund (80,000) (80,000) (80,000)
Total streets and sidewalks 1,945,742 2,043,412 2,063,503
Engineering
Personal services 307,302 300,977 303,141
Contractual services 18,600 7,407 25,283
Commodities 3,000 1,233 2,464
Total engineering 328,902 309,617 330,888
Total streets and sidewalks 2,274,644 2,353,029 2,394,391
SANITATION
Services and charges 802,808 764,771 752,928
Less administrative fees
Water and Sewer Fund (120,000) (120,000) (120,000)
Total sanitation 682,808 644,771 632,928
2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended December 31, 2009
(with comparative actual for 2008)
(This schedule is continued on the following page.)
- 93 -
Original
and Final 2008
Budget Actual Actual
2009
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)
GENERAL FUND
For the Year Ended December 31, 2009
(with comparative actual for 2008)
VEHICLE MAINTENANCE
Personal services 345,185$ 356,931$ 365,098$
Contractual services 48,400 35,787 46,677
Commodities 343,203 359,371 520,850
Total vehicle maintenance 736,788 752,089 932,625
HEALTH AND HUMAN SERVICES
Family and Senior Services
Personal services 500,444 536,578 532,351
Contractual services 159,153 160,077 128,592
Commodities 23,375 21,390 18,275
Total health and human services 682,972 718,045 679,218
COMMUNITY DEVELOPMENT
Personal services 110,430 111,379 108,382
Contractual services 11,825 5,464 4,841
Commodities 1,000 107 860
Total community development 123,255 116,950 114,083
BUILDING AND INSPECTION SERVICES
Building and Inspectional Services
Personal services 501,520 500,800 472,384
Contractual services 15,008 12,757 12,023
Commodities 2,150 1,283 1,244
Total building and inspectional services 518,678 514,840 485,651
Municipal Buildings
Personal services 12,750 9,728 10,176
Contractual services 157,000 157,277 160,838
Commodities 5,275 4,951 6,077
Capital outlay 131,000 120,350 25,176
Total municipal buildings 306,025 292,306 202,267
Total building and inspection services 824,703 807,146 687,918
TOTAL EXPENDITURES 24,712,930$ 23,765,962$ 23,910,757$
(See independent auditor's report.)
- 94 -
Final 2008
Budget Actual Actual
REVENUES
Property taxes 1,007,606$ 1,038,514$ 1,069,980$
Sales taxes 440,000 440,000 440,000
Investment income 35,000 3,574 23,002
Miscellaneous - 3,999 -
Total revenues 1,482,606 1,486,087 1,532,982
EXPENDITURES
Debt service
Principal retirement 1,316,460 1,449,279 1,232,416
Interest and fiscal charges 331,630 168,594 386,792
Bond issuance costs - 57,026 -
Total expenditures 1,648,090 1,674,899 1,619,208
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (165,484) (188,812) (86,226)
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds - 5,737,500 -
Payment to refunded bonds escrow agent - (5,661,824) -
Transfers in 136,945 136,945 137,162
Total other financing sources (uses)136,945 212,621 137,162
NET CHANGE IN FUND BALANCE (28,539)$ 23,809 50,936
FUND BALANCE, JANUARY 1 468,461 417,525
FUND BALANCE, DECEMBER 31 492,270$ 468,461$
2009
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, 2009
(with comparative actual for 2008)
(See independent auditor's report.)
- 95 -
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other
than for major capital pro jects) that are legally restricted to expenditures for specific purposes.
Four 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 maintenance
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 that system.
Economic Development Fund -accounts for expenditures related to promoting economic
development throughout the Village. The fund also accounts for non-TIF redevelopment
costs including those that support an exist ing TIF but whose redevelopment is not direct ly
wit hin 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.
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 46,707$ 164,613$ 140,842$ 51,996$ 476,785$ 880,943$
Investments - - - 91,886 - 91,886
Property taxes receivable - net - - - - 314,220 314,220
Sales tax receivable - - - 82,000 35,000 117,000
Accounts, miscellaneous and
allotments receivable 46,843 - 55,748 - 27,104 129,695
Due from other governments - - - - 929,062 929,062
Prepaid items - - - - 22,336 22,336
TOTAL ASSETS 93,550$ 164,613$ 196,590$ 225,882$ 1,804,507$ 2,485,142$
LIABILITIES
Accounts payable and retainage payable 47,481$ 380$ -$ 22,127$ 38,631$ 108,619$
Unearned property tax revenue - - - - 307,455 307,455
Other unearned revenue - - - - 947,972 947,972
Total liabilities 47,481 380 - 22,127.00 1,294,058 1,364,046
FUND BALANCES
Reserved for prepaid items - - - - 22,336 22,336
Reserved for public safety - - 196,590 - - 196,590
Reserved for community development - - - 203,755 - 203,755
Reserved for capital projects - - - - 488,113 488,113
Reserved for highways and streets 46,069 - - - - 46,069
Unreserved, undesignated - 164,233 - - - 164,233
Total fund balances 46,069 164,233 196,590 203,755 510,449 1,121,096
TOTAL LIABILITIES AND
FUND BALANCES 93,550$ 164,613$ 196,590$ 225,882$ 1,804,507$ 2,485,142$
ASSETS
LIABILITIES AND FUND BALANCES
Special Revenue Funds
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2009
See accompanying notes to financial statements.
- 96 -
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 -$ -$ -$ -$ 294,011$ 294,011$
Personal property replacement tax - - - - 29,069 29,069
Sales taxes - - - 328,000 140,000 468,000
Intergovernmental 574,975 - - - (18,910) 556,065
Surcharge fees - - 270,610 - - 270,610
Charges for services - 133,688 - - - 133,688
Investment income 143 476 257 1,854 2,758 5,488
Miscellaneous revenue 8,464 - - - 19,760 28,224
Total revenues 583,582 134,164 270,867 329,854 466,688 1,785,155
EXPENDITURES
Current
Public safety - - 254,677 - - 254,677
Streets and sidewalks 573,240 103,185 - - - 676,425
Community development - - - 381,556 - 381,556
Capital outlay - - - - 506,736 506,736
Total expenditures 573,240 103,185 254,677 381,556 506,736 1,819,394
NET CHANGE IN FUND BALANCES 10,342 30,979 16,190 (51,702) (40,048) (34,239)
FUND BALANCES, JANUARY 1 35,727 133,254 180,400 255,457 550,497 1,155,335
FUND BALANCES, DECEMBER 31 46,069$ 164,233$ 196,590$ 203,755$ 510,449$ 1,121,096$
For the Year Ended December 31, 2009
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.
- 97 -
Final 2008
Budget Actual Actual
REVENUES
Intergovernmental
Motor fuel taxes 635,000$ 574,975$ 589,619$
Investment income 10,000 143 5,160
Miscellaneous revenue - 8,464 9,555
Total revenues 645,000 583,582 604,334
EXPENDITURES
Streets and sidewalks
Materials 367,000 496,839 324,646
Lighting 71,000 76,401 62,739
Administ rative fees
General Fund 207,000 - 295,000
Total expenditures 645,000 573,240 682,385
NET CHANGE IN FUND BALANCE -$ 10,342 (78,051)
FUND BALANCE, JANUARY 1 35,727 113,778
FUND BALANCE, DECEMBER 31 46,069$ 35,727$
2009
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, 2009
(with comparative actual for 2008)
(See independent auditor's report.)
- 98 -
Final 2008
Budget Actual Actual
REVENUES
Charges for services 117,000$ 133,688$ 141,002$
Investment income 5,000 476 2,662
Total revenues 122,000 134,164 143,664
EXPENDITURES
Streets and sidewalks
Utilit ies and maintenance
of street light ing 1,900 1,781 56,856
Commo dit ies 13,000 13,404 14,692
Administ rative fees
General Fund 80,000 80,000 80,000
Water and Sewer Fund 8,000 8,000 8,000
Total expenditures 102,900 103,185 159,548
NET CHANGE IN FUND BALANCE 19,100$ 30,979 (15,884)
FUND BALANCE, JANUARY 1 133,254 149,138
FUND BALANCE, DECEMBER 31 164,233$ 133,254$
2009
(with comparative actual for 2008)
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, 2009
(See independent auditor's report.)
- 99 -
Final 2008
Budget Actual Actual
REVENUES
Telecommunications taxes 231,000$ 270,610$ 293,273$
Investment income 300 257 1,437
Total revenues 231,300 270,867 294,710
EXPENDITURES
Public safety
Contractual services 238,300 254,677 238,384
Total expenditures 238,300 254,677 238,384
NET CHANGE IN FUND BALANCE (7,000)$ 16,190 56,326
FUND BALANCE, JANUARY 1 180,400 124,074
FUND BALANCE, DECEMBER 31 196,590$ 180,400$
2009
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, 2009
(with comparative actual for 2008)
(See independent auditor's report.)
- 100 -
Final 2008
Budget Actual Actual
REVENUES
Sales taxes 328,000$ 328,000$ 312,000$
Investment income 5,000 1,854 9,372
Total revenues 333,000 329,854 321,372
EXPENDITURES
Community development
Contractual services 308,773 381,556 271,254
Capital outlay 25,000 - -
Total expenditures 333,773 381,556 271,254
NET CHANGE IN FUND BALANCE (773)$ (51,702) 50,118
FUND BALANCE, JANUARY 1 255,457 205,339
FUND BALANCE, DECEMBER 31 203,755$ 255,457$
VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF REVENUES, EXPENDITURES AND
2009
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT FUND
For the Year Ended December 31, 2009
(with comparative actual for 2008)
(See independent auditor's report.)
- 101 -
Original
and Final 2008
Budget Actual Actual
REVENUES
Property taxes 300,000$ 294,011$ 381,495$
Personal property replacement tax 30,000 29,069 38,609
Sales taxes 140,000 140,000 165,000
Intergovernmental - (18,910) 34,964
Investment income 10,000 2,758 13,880
Miscellaneous revenue - 19,760 356,182
Total revenues 480,000 466,688 990,130
EXPENDITURES
Capital outlay
Local street resurfacing
Construction 766,512 499,663 562,818
Engineering - 4,743 -
Dempster Street corridor improvements
Construction - 2,330 337,055
Total expenditures 766,512 506,736 899,873
NET CHANGE IN FUND BALANCE (286,512)$ (40,048) 90,257
FUND BALANCES, JANUARY 1 550,497 460,240
FUND BALANCE, DECEMBER 31 510,449$ 550,497$
2009
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, 2009
(with comparative actual for 2008)
(See independent auditor's report.)
- 102 -
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, 2009
Municipal
Employees' Police Firefighters'
Retirement Pension Pension Total
Cash and cash equivalents -$ 961,941$ 167,321$ 1,129,262$
Investments, at fair value
Equity mutual funds - 10,626,009 9,689,997 20,316,006
Bond index fund - 12,622,134 11,279,257 23,901,391
Money market mutual funds - 477,468 473,192 950,660
Annuity contracts 9,545,915 - - 9,545,915
Receivables
Accrued interest - 24 148 172
Other 20,457 - 20,457
Due from primary government 2,530 - - 2,530
Total assets 9,548,445 24,708,033 21,609,915 55,866,393
LIABILITIES
Accounts payable - 6,990 2,620 9,610
Total liabilities - 6,990 2,620 9,610
NET ASSETS HELD IN TRUST FOR
PENSION BENEFITS 9,548,445$ 24,701,043$ 21,607,295$ 55,856,783$
ASSETS
See accompanying notes to financial statements.
- 103 -
Municipal
Employees' Police Firefighters'2008
Retirement Pension Pension Total Actual
ADDITIONS
Contributions
Employer 489,154$ 1,390,415$ 1,582,849$ 3,462,418$ 3,451,982$
Employee 56,079 365,782 338,236 760,097 740,582
Total contributions 545,233 1,756,197 1,921,085 4,222,515 4,192,564
Investment income
Net appreciation (depreciation) in
fair value of investments - 3,301,694 2,754,512 6,056,206 (6,147,606)
Interest 440,754 4,133 2,547 447,434 1,077,630
Total investment income 440,754 3,305,827 2,757,059 6,503,640 (5,069,976)
Less investment expense (28,335) (24,787) (29,134) (82,256) (86,782)
Net investment income 412,419 3,281,040 2,727,925 6,421,384 (5,156,758)
Total additions 957,652 5,037,237 4,649,010 10,643,899 (964,194)
DEDUCTIONS
Retirement benefits 440,790 1,987,390 1,306,954 3,735,134 3,483,598
Duty/nonduty disability benefits - 69,158 461,980 531,138 550,339
Surviving spouse benefits - 164,530 185,468 349,998 296,846
Refunds - - - - 28,109.00
Administrative expenses - 24,748 63,410 88,158 70,989
Total deductions 440,790 2,245,826 2,017,812 4,704,428 4,429,881
NET INCREASE (DECREASE)516,862 2,791,411 2,631,198 5,939,471 (5,394,075)
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS
January 1 9,031,583 21,909,632 18,976,097 49,917,312 55,311,387
December 31 9,548,445$ 24,701,043$ 21,607,295$ 55,856,783$ 49,917,312$
2009
(with comparative actual for 2008)
VILLAGE OF MORTON GROVE, ILLINOIS
COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUNDS
For the Year Ended December 31, 2009
See accompanying notes to financial statements.
- 104 -
COMPONENT UNIT -PUBLIC LIBRARY
COMPONENT UNIT
Refer to Note 1 for descript io n of the component unit and the criteria for component unit
classificat io n.
VILLAGE OF MORTON GROVE, ILLINOIS
COMPONENT UNIT - PUBLIC LIBRARY
STATEMENT OF NET ASSETS AND BALANCE SHEET
December 31, 2009
Balance Statement of
Sheet Adjustments Net Assets
Cash and cash equivalents 1,956,923$ -$ 1,956,923$
Receivables
Property taxes receivable - net 2,807,433 - 2,807,433
Grants 25,000 - 25,000
Prepaids 43,688 - 43,688
Net pension asset - 71,144 71,144
Capital assets, not being depreciated - 79,000 79,000
Capital assets, net of depreciation - 582,211 582,211
TOTAL ASSETS 4,833,044$ 732,355$ 5,565,399$
LIABILITIES
Accounts payable 11,967$ -$ 11,967$
Salaries and wages payable 23,386 - 23,386
Unearned/deferred property tax revenue 2,747,232 - 2,747,232
Noncurrent liabilities
Due with in one year - 4,040 4,040
Due in more than one year - 25,024 25,024
Total liabilities 2,782,585 29,064 2,811,649
FUND BALANCE/NET ASSETS
Invested in capital assets - 661,211 661,211
Reserved for prepaids 43,688 (43,688) -
Reserved/restricted for culture and recreation 2,006,771 85,768 2,092,539
Total fund balance/net assets 2,050,459 703,291 2,753,750
TOTAL LIABILITIES AND
FUND BALANCE 4,833,044$ 732,355$ 5,565,399$
ASSETS
LIABILITIES AND FUND BALANCE
See accompanying notes to financial statements.
- 105 -
Statement
Original Final of
Budget Budget Actual Adjustments Activities
REVENUES
Taxes 2,676,015$ 2,676,015$ 2,627,720$ -$ 2,627,720$
Intergovernmental 27,500 27,500 26,161 - 26,161
Charges for services 7,000 5,000 4,056 - 4,056
Fines 26,800 26,800 34,964 - 34,964
Investment income 30,000 30,000 5,160 - 5,160
Miscellaneous - - 2,299 - 2,299
Total revenues 2,767,315 2,765,315 2,700,360 - 2,700,360
EXPENDITURES
Current
Culture and recreation 2,857,315 2,905,418 2,717,166 36,842 2,754,008
Total expenditures 2,857,315 2,905,418 2,717,166 36,842 2,754,008
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (90,000) (140,103) (16,806) (36,842) (53,648)
OTHER FINANCING SOURCES (USES)
Transfers in - - 80,000 (80,000) -
Transfers (out)- - (80,000) 80,000 -
Total other financing sources (uses)- - - - -
NET CHANGE IN FUND BALANCE (90,000)$ (140,103)$ (16,806) (36,842) (53,648)
FUND BALANCE/NET ASSETS, JANUARY 1
AS PREVIOUSLY REPORTED 2,067,265 668,950 2,736,215
PRIOR PERIOD ADJUSTMENT - 71,183 71,183
FUND BALANCE/NET ASSETS, JANUARY 1
AS RESTATED 2,067,265 740,133 2,807,398
FUND BALANCE/NET ASSETS, DECEMBER 31 2,050,459$ 703,291$ 2,753,750$
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
VILLAGE OF MORTON GROVE, ILLINOIS
COMPONENT UNIT - PUBLIC LIBRARY
SCHEDULE OF REVENUES, EXPENDITURES
2009
(See independent auditor's report.)
- 106 -
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.107-112
Revenue Capacity
These schedules contain information to help the reader assess the Village’s
mo st significant local revenue source, the property tax.113-116
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.117-120
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.121-122
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.123-125
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 2009
GOVERNMENTAL ACTIVITIES
Invested in capital assets
net of related debt 46,999,596$ 46,920,287$ 49,824,312$ 50,519,769$ 46,369,992$ 43,660,888$
Restricted 1,886,226 2,758,495 1,618,149 1,320,956 1,490,542 15,697,500
Unrestricted (19,709,344) (18,915,303) (16,684,584) (15,865,423) (12,451,299) (24,936,412)
TOTAL GOVERNMENTAL ACTIVITIES 29,176,478$ 30,763,479$ 34,757,877$ 35,975,302$ 35,409,235$ 34,421,976$
BUSINESS-TYPE ACTIVITIES
Invested in capital assets
net of related debt 213,526$ 291,090$ 431,305$ 779,852$ 1,194,967$ 1,918,346$
Restricted - - - - - -
Unrestricted 526,266 1,298,434 1,518,474 1,557,185 1,396,375 928,429
TOTAL BUSINESS-TYPE ACTIVITIES 739,792$ 1,589,524$ 1,949,779$ 2,337,037$ 2,591,342$ 2,846,775$
PRIMARY GOVERNMENT
Invested in capital assets
net of related debt 47,213,122$ 47,211,377$ 50,255,617$ 51,299,621$ 47,564,959$ 45,579,234$
Restricted 1,886,226 2,758,495 1,618,149 1,320,956 1,490,542 15,697,500
Unrestricted (19,183,078) (17,616,869) (15,166,110) (14,308,238) (11,054,924) (24,007,983)
TOTAL PRIMARY GOVERNMENT 29,916,270$ 32,353,003$ 36,707,656$ 38,312,339$ 38,000,577$ 37,268,751$
Data Source
Audited Financial Statements
Last Six Fiscal Years
NET ASSETS BY COMPONENT
VILLAGE OF MORTON GROVE, ILLINOIS
- 107 -
Fiscal Year 2004 2005 2006 2007 2008 2009
EXPENSES
Governmental activities
General government 4,343,440$ 3,246,565$ 3,556,886$ 4,390,997$ 4,587,340$ 3,987,630$
Public safety 13,554,378 13,301,334 13,752,166 14,558,399 15,324,442 16,452,967
Streets and highways 2,858,425 3,349,491 3,205,566 3,187,348 4,196,379 3,815,984
Sanitation 718,894 455,792 411,845 627,214 632,928 646,686
Vehicle maintenance 692,770 700,854 752,462 872,991 932,625 752,089
Health and human services 542,572 525,788 557,683 669,564 679,218 717,693
Community development 165,062 1,278,214 2,023,898 2,433,222 2,047,185 778,130
Building and inspectional services 696,468 683,868 710,282 718,784 693,218 812,585
Interest 991,526 905,773 745,013 1,180,450 1,254,168 879,876
Total governmental activities expenses 24,563,535 24,447,679 25,715,801 28,638,969 30,347,503 28,843,640
Business-type activities
Water and sewer 3,537,103 3,779,714 4,026,028 4,047,889 4,550,240 4,995,861
Total business-type activities expenses 3,537,103 3,779,714 4,026,028 4,047,889 4,550,240 4,995,861
TOTAL PRIMARY GOVERNMENT
EXPENSES 28,100,638$ 28,227,393$ 29,741,829$ 32,686,858$ 34,897,743$ 33,839,501$
PROGRAM REVENUES
Governmental activities
Charges for services
General government 1,594,783$ 2,255,978$ 2,202,037$ 2,289,270$ 2,151,555$ 2,068,374$
Public safety 297,149 309,786 314,940 469,729 439,602 478,189
Other activities 411,122 270,090 135,589 88,338 83,477 77,835
Operating grants and contributions 1,069,545 747,462 1,099,295 826,813 699,862 804,094
Capital grants and contributions 122,633 109,983 216,256 339,372 55,729 1,244
Total governmental activities
program revenues 3,495,232 3,693,299 3,968,117 4,013,522 3,430,225 3,429,736
Business-type activities
Charges for services
Water and sewer 4,120,267 4,580,331 4,174,016 4,239,458 4,596,060 4,990,281
Total business-type activities
program revenues 4,120,267 4,580,331 4,174,016 4,239,458 4,596,060 4,990,281
TOTAL PRIMARY GOVERNMENT
PROGRAM REVENUE 7,615,499$ 8,273,630$ 8,142,133$ 8,252,980$ 8,026,285$ 8,420,017$
NET (EXPENSE) REVENUE
Governmental activities (21,068,303)$ (20,754,380)$ (21,747,684)$ (24,625,447)$ (26,917,278)$ (25,413,904)$
Business-type activities 583,164 800,617 147,988 191,569 45,820 (5,580)
TOTAL PRIMARY GOVERNMENT
NET (EXPENSE) REVENUE (20,485,139)$ (19,953,763)$ (21,599,696)$ (24,433,878)$ (26,871,458)$ (25,419,484)$
VILLAGE OF MORTON GROVE, ILLINOIS
CHANGE IN NET ASSETS
Last Six Fiscal Years
- 108 -
Fiscal Year 2004 2005 2006 2007 2008 2009
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$ 12,799,051$
Sales 6,684,899 6,798,236 7,788,874 7,061,621 6,370,839 5,604,221
Utility 1,177,974 1,267,383 1,185,594 1,213,165 1,206,890 1,144,676
Other 3,832,556 4,627,121 4,719,673 5,223,159 5,293,549 4,773,793
Investment earnings 38,182 147,518 467,427 630,288 394,088 304,129
Miscellaneous 32,090 35,713 95,025 138,578 574,371 295,348
Transfers 106,600 106,600 - - - -
Total governmental activities 19,865,512 22,341,381 25,742,082 25,944,299 26,577,688 24,921,218
Business-type activities
Investment earnings 3,044 9,286 11,993 3,652 12,188 3,469
Contributions - - - - - 108,134
Miscellaneous 29,747 146,429 200,274 192,037 196,297 250,925
Transfers (106,600) (106,600) - - - -
Total business-type activities (73,809) 49,115 212,267 195,689 208,485 362,528
TOTAL PRIMARY GOVERNMENT 19,791,703$ 22,390,496$ 25,954,349$ 26,139,988$ 26,786,173$ 25,283,746$
CHANGE IN NET ASSETS
Governmental activities (1,202,791)$ 1,587,001$ 3,994,398$ 1,318,852$ (339,590)$ (492,686)$
Business-type activities 509,355 849,732 360,255 387,258 254,305 356,948
TOTAL PRIMARY GOVERNMENT
CHANGE IN NET ASSETS (693,436)$ 2,436,733$ 4,354,653$ 1,706,110$ (85,285)$ (135,738)$
Data Source
Audited Financial Statements
Last Six Fiscal Years
CHANGE IN NET ASSETS (Continued)
VILLAGE OF MORTON GROVE, ILLINOIS
- 109 -
Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
GENERAL FUND
Reserved 43,982$ 44,686$ 82,719$ -$ 19,629$ 72,073$ 55,457$ 1,667,406$ 1,614,804$ 1,595,556$
Unreserved 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 5,794,060
TOTAL GENERAL FUND 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$ 7,389,616$
ALL OTHER GOVERNMENTAL FUNDS
Reserved 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$ 15,675,164$
Unreserved, reported in
Special Revenue Funds 296,186 (367,848) 321,003 (280,448) - - 197,035 9,264,692 6,312,785 (811,272)
Capital Project Funds 1,701,626 844,149 992,769 - (1,245,882) (1,011,770) - - - -
TOTAL ALL OTHER
GOVERNMENTAL FUNDS 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$ 14,863,892$
Data Source
Audited Financial Statements
VILLAGE OF MORTON GROVE, ILLINOIS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
- 110 -
Fiscal Year 2000 2001 2002 2003
REVENUES
Taxes 18,840,254$ 18,954,975$ 16,846,935$ 17,425,699$
Licenses and permits 734,180 830,866 1,143,947 1,204,324
Intergovernmental 284,023 2,006,770 675,725 1,027,777
Surcharge fees 136,772 183,147 221,018 84,724
Charges for services 336,675 360,762 359,990 399,639
Fines and forfeitures 297,925 240,989 239,202 248,919
Lease and rental income - - 27,822 40,560
Investment income 753,878 483,120 123,427 180,263
Cable TV 324,649 257,236 293,901 166,471
Miscellaneous 98,646 128,852 2,287,808 185,050
Total revenues 21,807,002 23,446,717 22,219,775 20,963,426
EXPENDITURES
General government 1,682,721 2,444,579 2,711,127 2,600,514
Public safety 8,698,551 8,796,255 9,378,760 10,149,026
Streets and sidewalks 2,288,057 2,427,778 2,122,891 2,190,002
Sanitation 1,374,568 1,400,012 1,370,045 1,345,668
Vehicle maintenance 692,561 694,404 544,969 587,369
Health and human services 296,165 311,790 465,655 443,960
Community development 3,228,754 846,217 1,471,096 146,048
Building and inspection services 1,450,987 727,652 606,281 580,748
Debt service
Principal 1,203,819 1,163,028 1,240,479 1,412,278
Interest 1,225,656 1,236,853 1,264,852 1,098,517
Other charges 260,279 276,717 443,610 -
Capital outlay 4,581,234 6,741,370 1,241,540 2,222,756
Total expenditures 26,983,352 27,066,655 22,861,305 22,776,886
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (5,176,350) (3,619,938) (641,530) (1,813,460)
OTHER FINANCING SOURCES (USES)
Transfers in 1,344,481 1,277,810 2,408,826 722,773
Transfers (out)(1,255,681) (1,184,460) (2,311,576) (621,173)
Issuance of bonds 1,354,073 475,000 425,000 59,405
Issuance of refunding bonds - - - -
Discount on debt issuance - - - -
Issuance of refunding installment note - - - -
Payment to bond escrow - - - -
Other - - - -
Sale of capital assets 65,203 31,915 1,809,575 23,228
Total other financing sources (uses)1,508,076 600,265 2,331,825 184,233
NET CHANGE IN FUND BALANCES (3,668,274)$ (3,019,673)$ 1,690,295$ (1,629,227)$
DEBT SERVICE AS A PERCENTAGE OF
NONCAPITAL EXPENDITURES 10.84%11.81%11.59%12.22%
Data Source
Audited Financial Statements
Last Ten Fiscal Years
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
VILLAGE OF MORTON GROVE, ILLINOIS
- 111 -
2004 2005 2006 2007 2008 2009
19,443,960$ 21,830,916$ 24,952,449$ 24,935,759$ 25,315,956$ 24,051,133$
1,157,687 1,473,641 1,375,358 1,194,285 1,115,215 1,029,669
1,057,227 857,445 1,315,550 1,176,429 755,810 805,337
76,932 220,634 227,181 239,671 293,273 270,610
746,743 683,943 700,674 983,358 982,042 873,261
253,663 282,892 273,543 327,835 281,457 346,754
45,030 30,832 - - - -
87,412 147,520 467,426 620,046 393,869 304,129
178,520 184,424 197,272 215,606 224,026 233,278
217,741 222,516 200,746 264,832 628,427 436,783
23,264,915 25,934,763 29,710,199 29,957,821 29,990,075 28,350,954
3,609,971 2,807,443 3,099,624 3,176,009 3,829,837 3,235,134
10,611,336 11,627,607 12,918,063 14,809,880 14,878,141 15,393,475
2,116,517 2,322,281 2,268,649 3,027,875 3,236,324 3,029,454
617,465 455,792 405,715 627,214 632,928 644,771
614,449 700,854 752,462 872,991 932,625 752,089
481,236 503,762 560,598 669,564 679,218 718,045
146,426 943,973 1,582,343 605,286 2,047,185 529,407
617,675 682,764 719,296 718,083 687,918 807,146
1,517,631 1,986,557 1,766,127 1,940,203 1,701,086 10,144,327
993,538 943,342 690,343 999,340 1,304,359 1,084,892
- - - 101,800 - 94,346
2,511,099 906,404 958,947 2,025,571 1,034,105 975,791
23,837,343 23,880,779 25,722,167 29,573,816 30,963,726 37,408,877
(572,428) 2,053,984 3,988,032 384,005 (973,651) (9,057,923)
1,049,293 714,669 83,829 2,496,092 137,162 136,945
(942,693) (608,069) (83,829) (2,496,092) (137,162) (136,945)
- 283,198 2,831,000 9,200,000 - -
- - - - - 10,657,500
- - - - - (11,975)
- - - - - 2,685,000
- - - - - (5,661,824)
- - - 103,198 - -
18,905 23,225 - - 17,838 21,470
125,505 413,023 2,831,000 9,303,198 17,838 7,690,171
(446,923)$ 2,467,007$ 6,819,032$ 9,687,203$ (955,813)$ (1,367,752)$
11.78%12.75%9.92%10.47%9.96%30.68%
- 112 -
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
1999 310,005,671$ 98,381,197$ 128,053,746$ -$ 536,440,614$ 1.110 1,609,321,842$ 33.333%
2000 308,390,491 96,486,843 126,919,007 - 531,796,341 1.147 1,595,389,023 33.333%
2001 371,879,611 101,810,020 137,096,813 - 610,786,444 1.049 1,832,359,332 33.333%
2002 404,306,538 108,778,578 142,076,909 - 655,162,025 1.027 1,965,486,075 33.333%
2003 403,983,918 107,263,051 141,543,205 - 652,790,174 1.084 1,958,370,522 33.333%
2004 488,573,518 102,814,670 157,782,189 - 749,170,377 0.995 2,247,511,131 33.333%
2005 534,079,256 102,275,899 164,166,151 - 800,521,306 1.122 2,401,563,918 33.333%
2006 545,691,470 107,797,552 154,382,871 - 807,871,893 1.159 2,423,615,679 33.333%
2007 690,027,687 110,013,043 168,985,460 - 969,026,190 0.996 2,907,078,570 33.333%
2008 N/A N/A N/A - 1,055,288,020 0.915 3,165,864,060 33.333%
Data Source
Office of the County Clerk
Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value.
N/A - Information is not available.
- 113 -
Tax Levy Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
VILLAGE DIRECT RATES
General 0.749 0.755 0.690 0.644 0.705 0.778 0.940 0.660 0.559 0.486
Police pension - 0.019 0.021 0.038 0.058 - - 0.142 0.132 0.138
Fire pension 0.008 0.019 0.021 0.048 0.061 - - 0.176 0.151 0.157
Bonds and interest 0.104 0.105 0.092 0.086 0.086 0.075 0.070 0.068 0.058 0.053
IMRF 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 0.002
IEPA agreement 0.097 - 0.085 0.079 0.079 - 0.065 0.064 0.053 0.049
Capital improvement 0.114 0.115 0.100 0.094 0.049 0.046 0.045 0.047 0.040 0.029
Total direct rates 1.110 1.147 1.049 1.027 1.084 0.995 1.122 1.159 0.995 0.914
OVERLAPPING RATES
Morton Grove Library 0.315 0.372 0.336 0.329 0.333 0.299 0.288 0.307 0.266 0.259
School District #68 2.622 2.721 2.350 2.334 2.464 2.178 2.149 2.258 1.931 1.882
School District #69 3.237 3.344 2.920 2.995 3.155 2.794 3.335 3.527 3.124 3.247
School District #67 2.430 2.512 2.272 2.213 2.338 2.129 2.041 2.094 1.859 1.807
School District #63 3.027 3.129 2.694 2.753 2.609 2.624 2.542 2.617 2.276 2.233
School District #70 2.281 2.377 2.167 2.056 2.906 2.792 2.729 2.846 2.506 2.484
High School District #207 2.198 2.298 2.026 1.936 2.012 1.795 1.757 1.826 1.602 1.577
High School District #219 1.903 2.068 1.860 1.776 2.090 2.013 2.007 2.374 2.114 2.120
Community College District #535 0.203 0.213 0.186 0.179 0.186 0.161 0.158 0.166 0.141 0.140
Cook County 0.877 0.824 0.746 0.690 0.630 0.593 0.533 0.500 0.446 0.415
Cook County Forest Preserve 0.070 0.069 0.067 0.061 0.059 0.060 0.060 0.057 0.053 0.051
Consolidated Elections - - - - - - - - 0.012 -
Metro Water Reclamation District 0.419 0.415 0.401 0.371 0.361 0.347 0.315 0.028 0.263 0.252
Morton Grove Park District 0.429 0.443 0.397 0.377 0.380 0.337 0.325 0.328 0.289 0.272
Skokie Park District 0.402 0.486 0.446 0.419 0.456 0.437 0.407 0.436 0.375 0.386
Glenview Park District 0.577 0.612 0.511 0.492 0.516 0.505 0.490 0.511 0.429 0.429
Maine Township 0.126 0.149 0.133 0.129 0.135 0.122 0.121 0.127 0.114 0.112
Niles Township 0.040 0.040 0.036 0.036 0.036 0.033 0.031 0.034 0.030 0.030
Suburban T.B. Sanitary District 0.008 0.008 0.007 0.006 0.004 0.001 0.005 0.005 - -
North Shore Mosquito Abatement 0.011 0.011 0.010 0.009 0.009 0.008 0.008 0.009 0.008 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
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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
Tower Real Estate 20,643,366$ 1 1.96%15,633,488$ 2 2.91%
CRP Holdings CLP 20,282,863 2 1.92%16,898,571 1 3.15%
Menards 14,297,274 3 1.35%- 0.00%
Bell & Gossett 13,629,567 4 1.29%10,024,061 3 1.87%
Schwinge Family Ltd.13,545,600 5 1.28%5,659,010 10 1.05%
Avon 12,451,462 6 1.18%8,920,820 4 1.66%
John Crane 12,386,979 7 1.17%8,404,826 5 1.57%
Kraft - 0.00%6,545,280 9 1.22%
Lawncare Products - 0.00%6,439,418 7 1.20%
Capital Prop Mgmt 6,136,285 9 0.58%- 0.00%
Schwartz Paper Co - 0.00%7,056,159 6 1.32%
Bethany Terrace Nursing Home 11,518,115 8 1.09%- 0.00%
Richard Edler 5,551,452 10 0.53%- 0.00%
ABT Appliance 0 0.53%6,430,032 8 1.20%
130,442,963$12.88%92,011,665$ 17.15%
Data Source
Office of the County Clerk
2009 2000
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.
- 115 -
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
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%
2008 9,649,253 9,312,628 96.51%- 9,312,628 96.51%
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
- 116 -
Governmental Activities Business-Type Activities
Fiscal General Revolving Installment Intergovernmental General Revolving Installment Total Percentage of
Year Obligation Loans Notes Agreements Obligation Loans Notes Primary Personal Per
Ended Bonds Payable Payable Payable Bonds Payable Payable Government Income*Capita*
2000 11,145,000$ 4,511,117$ 15,772,000$ 5,314,319$ 3,715,000$ 680,827$ 681,000$ 41,819,263$ 8.03%1,866.26$
2001 10,638,750 4,194,454 15,537,000 5,269,433 3,546,250 620,100 620,000 40,425,987 7.75%1,800.63
2002 10,102,500 3,866,351 15,153,444 5,214,535 3,367,500 557,847 626,989 38,889,166 7.46%1,732.18
2003 9,532,500 3,526,399 14,370,574 5,134,015 3,177,500 494,023 556,079 36,791,090 7.06%1,638.73
2004 8,932,500 3,174,167 13,452,935 5,030,605 2,977,500 428,602 470,567 34,466,876 5.69%1,535.20
2005 8,306,250 2,809,212 12,375,858 5,016,627 2,768,750 361,529 621,191 32,259,417 5.15%1,436.88
2006 7,657,500 2,431,075 14,280,939 4,867,208 2,552,500 292,771 486,778 32,568,771 5.20%1,450.66
2007 16,182,500 2,039,279 13,015,702 4,682,533 2,327,500 222,283 370,161 38,839,958 6.20%1,729.99
2008 15,481,250 1,633,332 12,015,866 4,482,974 2,093,750 150,021 250,081 36,107,274 5.76%1,608.27
2009 19,283,750 1,212,720 4,648,818 4,260,718 1,856,250 75,943 51,148 31,389,347 5.01%1,398.13
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 121 for personal income and population data.
VILLAGE OF MORTON GROVE, ILLINOIS
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
- 117 -
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
2000 30,632,000$ 1,004,415$ 29,627,585$ 5.52%1,322.19$
2001 29,722,000 998,953 28,723,047 5.40%1,279.37
2002 25,255,944 1,031,210 24,224,734 3.97%1,079.00
2003 23,635,931 938,338 22,697,593 3.46%1,010.98
2004 22,385,433 997,666 21,387,767 3.28%952.64
2005 20,682,108 574,321 20,107,787 2.68%895.63
2006 21,938,439 597,680 21,340,759 2.67%950.55
2007 29,196,301 417,525 28,778,776 3.56%1,281.85
2008 27,497,116 468,461 27,028,655 2.79%1,203.90
2009 25,145,288 492,269 24,653,019 2.34%1,098.08
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 113 for
property value data.
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VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
December 31, 2009
(1)
Percentage
of Debt
Gross Applicable to Government's
Governmental Unit Bonded Debt Government Share of Debt
Village of Morton Grove 21,140,000$ 100%21,140,000$
SCHOOLS
School District #63 14,445,000 14.50%2,094,654$
School District #67 6,020,470 73.23%4,408,648
School District #68 4,190,000 0.58%24,278
School District #69 18,725,000 17.32%3,242,883
School District #70 5,335,000 98.47%5,253,150
School District #71 1,410,000 7.04%99,243
High School District #207 13,020,000 3.45%449,709
High School District #219 133,928,952 15.61%20,906,783
Total schools 197,074,422 36,479,348
OTHERS
Cook County 2,642,235,000 0.61%16,057,865
Cook County Forest Preserve 108,665,000 0.61%660,398
Metropolitan Metro Water Reclamation
District of Greater Chicago 2,258,150,090 0.62%14,009,614
Glenview Park District 13,295,000 0.18%23,343
Morton Grove Park District 1,500,000 99.38%1,490,744
Skokie Park District 5,670,000 0.49%27,677
Total others 5,029,515,090 32,269,641
TOTAL 5,247,729,512$ 89,888,989$
Overlapping debt percentages based on 2008 EAV, the most recent available.(1)
Date Source
Cook County Clerk
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VILLAGE OF MORTON GROVE, ILLINOIS
SCHEDULE OF LEGAL DEBT MARGIN
December 31, 2009
Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except
as set by the General Assembly.
- 120 -
Per
Capita
Fiscal Personal Personal Unemployment
Year Population Income Income Rate
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%
12/31/2009 22,451 626,360,449 27,899 8.1%
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
- 121 -
% 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: 2000 number of employees is unavailable.
Data Source
Village business licences
2009 2000
VILLAGE OF MORTON GROVE, ILLINOIS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
- 122 -
Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
GENERAL GOVERNMENT
Administrative 4.0 4.5 4.5 4.5 4.5 4.5 5.0 4.5 4.5 3.5
Community development 4.5 3.0 2.0 2.0 1.5 1.5 1.5 1.5 1.5 1.5
Legal - - - - - 0.5 0.5 0.5 0.5 0.5
Management information - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance 5.5 6.5 6.5 7.0 7.0 7.0 7.5 6.5 6.0 5.5
Health and human services 11.0 - - - - - - - - -
Family services - 9.0 10.5 11.5 11.0 12.0 12.0 12.0 9.5 11.5
Building/code enforcement 7.5 9.5 9.5 8.5 8.0 10.0 9.0 8.5 8.0 7.0
PUBLIC SAFETY
Police
Officers 46.0 46.0 46.0 46.0 46.0 46.0 46.0 46.0 46.0 45.0
Civilians 29.0 28.5 33.0 25.5 26.5 25.5 23.5 23.5 23.0 22.0
Fire
Firefighters and officers 43.0 44.0 43.0 43.0 43.0 43.0 44.0 44.0 42.0 40.0
Civilians 2.0 2.0 3.0 3.0 3.5 3.5 3.0 3.0 3.0 30.0
PUBLIC WORKS
Street maintenance 19.4 18.5 18.5 18.5 16.5 16.5 16.5 16.5 16.5 17.5
Engineering 2.4 2.0 2.0 2.0 2.7 3.2 3.2 3.2 3.2 3.0
Vehicle maintenance 4.6 4.5 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Water/sewer 13.6 14.0 14.0 14.0 13.8 13.3 13.3 13.3 13.3 12.0
Data Source 192.5 192.0 197.5 190.5 189.0 191.5 190.0 188.0 182.0 177.0
Village budget office
VILLAGE OF MORTON GROVE, ILLINOIS
FULL-TIME EQUIVALENT EMPLOYEES
Last Ten Fiscal Years
- 123 -
Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
PUBLIC SAFETY
Police
Physical arrests 593 481 463 546 580 596 710 635 550 651
Parking violations 4,703 4,290 4,156 4,730 4,328 4,164 3,866 5,210 5,171 6,075
Traffic violations 9,588 8,549 7,811 7,556 7,428 6,215 7,681 4,598 4,367 5,092
Fire
Emergency responses 2,839 2,922 2,799 3,004 3,072 3,255 3,246 3,384 3,594 3,249
Fires extinguished 34 46 43 66 58 45 36 38 22 70
PUBLIC WORKS
Street resurfacing (miles)1.60 2.00 1.90 1.50 0.49 0.66 1.41 1.81 0.63 1.33
Pothole repairs (in tons)67.15 78.57 95.48 81.25 80.85 93.74 71.50 121.50 120.00 180.00
WATER
New connections - - 24 - - 5 27 70 23 1
Water main breaks 53 65 81 98 77 117 55 85 67 91
Average daily consumption 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 2,999,484
Peak daily consumption 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 4,374,000
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
- 124 -
Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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 223 223 357 357 357 372 372 372 357 357
Traffic signals 13 13 13 13 13 13 13 13 13 13
WATER
Water mains (miles)97.0 97.2 97.2 97.4 97.4 98.9 98.9 98.9 98.9 98.9
Fire hydrants 1,072 1,074 1,080 1,083 1,083 1,093 1,093 1,093 1,093 1,093
Storage capacity (gallons)8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000
WASTEWATER
Sanitary sewers (miles)47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9 47.9
Storm sewers (miles)65.0 70.6 70.6 70.6 70.6 70.6 70.6 70.6 70.6 70.6
Combined sewers (miles)23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6
Treatment capacity (gallons)N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Data Source
Various Village departments
VILLAGE OF MORTON GROVE, ILLINOIS
CAPITAL ASSET STATISTICS
Last Ten Fiscal Years
- 125 -