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Village of alsip- SAS114-2019VILLAGE OF ALSIP, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended April 30, 2019 Prepared by the Finance Department of the Village of Alsip Village of Alsip, Illinois Comprehensive Annual Financial Report For the Fiscal Year Ended April 30, 2019 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................... i Organizational Chart and List of Principal Officials ................................................................ xix FINANCIAL SECTION Independent Auditors’ Report ................................................................................................... 1 Management’s Discussion and Analysis .................................................................................. 4 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position .............................................................................................. 20 Statement of Activities ................................................................................................... 21 Fund Financial Statements: Balance Sheet - Governmental Funds .......................................................................... 22 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ................................................................................................... 23 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................... 24 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual – General and Road and Bridge Funds (Budgetary Basis) ........................................................................................................ 25 Statement of Net Position - Proprietary Funds .............................................................. 26 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds ........................................................................................................ 28 Statement of Cash Flows - Proprietary Funds .............................................................. 29 Statement of Fiduciary Net Position - Fiduciary Funds ................................................. 31 Statement of Changes in Fiduciary Net Position - Fiduciary Funds ............................. 32 Notes to Basic Financial Statements ............................................................................. 33 Required Supplementary Information: Schedule of Employer Contributions - Pension Plans ......................................................... 80 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios ........... 83 Schedule of Changes in the Employer’s Net OPEB Liability and Related Ratios .............. 86 Schedule of Investment Returns .......................................................................................... 87 Notes to Required Supplementary Information ................................................................... 89 Supplementary Information: Combining and Individual Fund Statements and Supporting Schedules: General Fund: Comparative Balance Sheet .......................................................................................... 94 Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance ........................................................................................................... 95 Comparative Statement of Expenditures ....................................................................... 97 Non-Major Governmental Funds: Combining Balance Sheet ........................................................................................... 103 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit) ......................................................................................... 104 Special Revenue Funds: Road and Bridge Fund: Comparative Balance Sheet .................................................................................. 105 Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance (Deficit) ..................................................................................... 106 Special Tax Allocation Fund: Comparative Balance Sheet .................................................................................. 108 Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................... 109 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – Special Tax Allocation Fund .......................................... 110 Motor Fuel Tax Fund: Comparative Balance Sheet .................................................................................. 111 Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................... 112 Foreign Fire Insurance Tax Fund: Comparative Balance Sheet .................................................................................. 113 Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................................................................... 114 Debt Service Fund: Comparative Balance Sheet ........................................................................................ 115 Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance ......................................................................................................... 116 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – Debt Service Fund ............................................................... 117 Enterprise Funds: Waterworks and Sewerage Fund: Comparative Statement of Net Position ................................................................ 118 Comparative Statement of Revenues, Expenses, and Changes in Net Position ...................................................................................................... 120 Comparative Statement of Cash Flows ................................................................. 121 Comparative Statement of Operating Expenses ................................................... 123 Senior Citizen Complex Fund Combining Statement of Net Position ................................................................... 124 Combining Statement of Revenues, Expenses, and Changes in Net Position ...................................................................................................... 125 Combining Statement of Cash Flows .................................................................... 126 Combining Statement of Operating Expenses ...................................................... 127 Trust Funds: Pension Trust Funds: Combining Statement of Plan Net Position ........................................................... 128 Combining Statement of Changes in Plan Net Position ....................................... 129 Supporting Schedules: Schedule of Insurance Coverage (Unaudited) ............................................................ 130 Property Tax Levies and Collections Extended by Funds and Assessed Valuation (Unaudited) ........................................................................... 131 STATISTICA/ SECTI2N 8NA8DITED Financial Trends Net Position by Component ............................................................................................... 132 Changes in Net Position .................................................................................................... 133 Fund Balances *overnmental Funds .............................................................................. 135 Changes in Fund Balances *overnmental Funds .......................................................... 136 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property .................................. 137 Property Tax Rates – Direct and Overlapping *overnments ............................................ 138 Principal Property Taxpayers ............................................................................................. 139 Property Tax Levies and Collections ................................................................................. 140 Debt Capacity Ratios of Outstanding Debt by Type .................................................................................. 141 Ratios of *eneral Bonded Debt Outstanding .................................................................... 142 Direct and Overlapping *overnmental Activities Debt ...................................................... 143 Legal Debt 0argin Information .......................................................................................... 144 PledgedRevenue Coverage ............................................................................................. 145 Demographic and Economic Information Demographic and Economic Statistics .............................................................................. 146 0ost Recent Educational Demographics .......................................................................... 147 Principal Employers ........................................................................................................... 148 Operating Information FullTime ETuivalent Employees by Function ................................................................... 149 Operating Indicators by Function ....................................................................................... 150 Capital Asset Statistics by Function ................................................................................... 151 INTRODUCTORY SECTION John D. Ryan Mayor Susan M. PetzelClerk and Collector Trustees Richard S. Dalzell Michael Zielinski Monica M. Juarez Christine L. McLawhorn Christopher W. Murphy Catalina Nava-Esparza October 25, 2019 To the Village Board and Citizens of the Village of Alsip: Formal Transmittal State law (50 ILCS 310/2 and 50 ILCS 310/4) requires that every general-purpose local government publish, within either one hundred eighty days or two hundred forty days of the close of each fiscal year, a complete set of audited financial statements. This Comprehensive Annual Financial Report, or CAFR, is published to fulfill that requirement for the fiscal year ended April 30, 2019, hereinafter referred to as FY19. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. CliftonLarsonAllen LLP, have issued an unmodified (“clean”) opinion on the Village of Alsip’s financial statements for the year ended April 30, 2019. The independent auditor’s report is located at the front of the financial section of this report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Village x Population The Village of Alsip is a home rule unit of local government under the Constitution of Illinois of 1970 and was incorporated in 1927. The municipality has a 2018 population of 18,880 as of a July 1, 2019 United States Census Bureau estimate, and an official population of 19,277 according to the 2010 census. 4500 West 123rd Street• Alsip, Illinois 60803-2599 • Phone 708-385-6902• Fax 708-385-9561 ii The Great Recession had a large impact on the Village’s economy, which saw an estimated rise in Alsip’s unemployment rate from 5.3% (2007) to a decade high of 12.7% (2010). This estimated unemployment rate has receded to 4.3% (2018), a rate below the rate before the Great Recession started. This Village unemployment rate is comparable to the 2018 Cook County rate of 4.0%, the State of Illinois rate of 4.3%, and the nationwide rate of 3.9%. Median household incomes within the Village of Alsip are in line with both Cook County (the county in which Alsip is located) and the State of Illinois; According to the United States Census Bureau’s 2013-2017 American Community Survey 5-Year Estimates, Alsip’s 2013-2017 median household income (in 2017 inflation-adjusted dollars) was $52,432, Cook County’s was $59,426, and the State of Illinois’ was $61,229. As a landlocked community, the Village of Alsip’s population has remained relatively stable for the last thirty years. Despite the consistency of the population, the housing values have declined during the softening of the housing market nationwide and have not rebounded. The same Census data shows a 21.2% decline in the median value of an owner-occupied unit from 2010 ($213,300) to 2017 ($167,900). The median price of an owner-occupied unit in 2017 in Illinois was $195,300, which reflects that in Alsip 48.8% of housing units are 1-unit detached, while in the State of Illinois 58.9% of such units are 1-unit detached. x Governmental Structure The Village of Alsip operates under the Trustee-Village form of government pursuant to the Illinois Municipal Code, 65 ILCS 5/3.1-25 et. seq. Policy-making and legislative authority are vested in the governing Village Board consisting of the Village President, often referred to as the Mayor, and six Trustees, and a Village Clerk. The Village Clerk is an ex officio member of the Board and does not vote. All Board members are elected at large. All Board members serve four-year terms, with the Village President, the Village Clerk, and three Trustees elected usually on the first Tuesday in April following Presidential election year, while the other three Trustees are usually elected on the first Tuesday in April two years later. Beginning with those elected in the April 4, 2017 election, no person may hold the office of Village President, Village Clerk, or Village Trustee for more than three consecutive four-year terms. x Types and Levels of Services Provided The Village of Alsip provides a full range of services, including police and fire protection; water distribution; sanitary and storm sewer collection services; snow removal; traffic control; building inspections; health inspections; licenses and permits; a website; a cable television station; and the construction and maintenance of Village owned highways, streets, streetlights, iii water lines, sanitary sewer lines, storm sewer lines, and other infrastructure. The Village bills for and contracts out refuse (garbage) collection. The Village owns 512 senior housing units in 29 housing buildings spread over two distinct complexes within the Village. Each complex has a swimming pool, a clubhouse, storage facilities, laundry facilities, and parking spaces. The Village contracts out the management of those senior housing complexes. The Village is responsible for the operation and maintenance of its water pumping facilities and transmission and distribution mains within the Village only. The Village provides water and sewer service to its property owners and contracts to provide water service to the City of Palos Heights and the Village of Crestwood (the Village does not have any responsibility for the distribution of water within Palos Heights or Crestwood); Lake Michigan water is directly obtained from the City of Chicago via contract. Sewage treatment is provided to the Village by the Metropolitan Water Reclamation District (MWRD) of Greater Chicago. The Village is responsible for the operation and maintenance of its storm and sanitary lift stations and transmission lines. To pay for services and other costs not directly covered by service fees, the Village of Alsip is empowered to levy a property tax on real property located within its boundaries. As a home- rule community, the Village is also authorized to issue general obligation (G.O.) debt without a referendum. Under State of Illinois Statutes, the Village of Alsip was required to establish a Police Pension Fund to provide disability and retirement benefits to its full-time sworn officers and a separate Firefighters Pension Fund to provide disability and retirement benefits to its full-time firefighters. These two public safety pension funds are each managed by a separate five (5) person Board of Trustees which is comprised of two (2) members elected from active membership, one (1) member elected from beneficiaries, and two (2) appointed directly by the Village President. While the Village is required to provide minimum annual contributions toward funding each defined benefit plan and levies property taxes in excess of that minimum contribution, the Village Board does not otherwise exercise financial control over either pension fund. The financial data for each public safety pension fund is separately presented in the financial statements. No separate financial statements are issued for either public safety pension fund. Recreation facilities are mainly provided by the Alsip Park District, a separate unit of local government, while parts of the Village are served by the Worth Park District. The Village maintains a small non-recreational park honoring veterans and a separate boat launch facility iv into the Calumet Sag Channel. Approximately sixteen (16) different park facilities located throughout the Village offer a variety of recreational services. The Village's public education needs are met by School Districts No. 125, 126, 128, or 130, as well as Community High School District No. 218. The Village is located within Moraine Valley Community College District No. 524. Library services are provided by the Alsip-Merrionette Park Library District, a completely separate unit of government from the Village. The Village Board does not exercise financial control or accountability for any school district, park district, library district, or other governmental agency that is located with the Village limits or provides services to Village residents, and accordingly, they are not included in the Village’s basic financial statements. x Brief Summary of the Budget Process Under Illinois statutes, the Village can either elect to operate under a budget ordinance or an appropriation ordinance. The Village operates under an appropriation ordinance, which does not require a municipality to prepare a budget, but does require that the Board adopt an appropriation ordinance within the first quarter of each fiscal year. The fiscal year runs from May 1st to April 30th of every year, so the appropriation ordinance must be adopted by the Village Board before August 1st. In FY19 the appropriation ordinance was adopted before the start of the fiscal year. The appropriation ordinance is double the size of the de facto budget. This annual budget serves as the foundation for the Village of Alsip’s financial planning and control. The budget is prepared by fund and department (e.g., police). x Governmental Funds with an Annual Appropriated Budget The Village Board budgets for and has legal control over the General Fund, the Debt Service Fund and the following six special revenue funds: Road & Bridge, TIF 1, NW Corner of Cicero Avenue and I-294 TIF, 123rd Place and Cicero Avenue TIF, Pulaski Road Corridor TIF, and Motor Fuel Tax Fund. x Legal Level of Budgetary Control The legal level of budgetary control (that is, the level at which expenditures may not legally exceed the established appropriated amount) is set at the fund level. v Information Useful in Assessing the Village’s Economic Condition x Local Economy The Village is home to approximately 900 businesses, encompassing various segments of commerce, including retail, service, and manufacturing. These businesses are promoted and represented by the Chicago Southland Convention and Visitors Bureau (CSCVB), the Alsip Chamber of Commerce, and the Alsip Industrial Association. This diversity of business and industry provides a stable economic base, which in turn creates regional employment opportunities, outstanding municipal services, educational systems, health and human care agencies, and recreational facilities. There are many reasons for the strong business environment in the Village, including that the Village borders the City of Chicago, the Village’s workforce population has the experience for the types of businesses located in Alsip, the Village offers various economic incentives to industrial and retail businesses when needed, and there exists strong area transportation systems for both business and their employees. Both these economic incentives, as well as the transportation systems that make Alsip a transportation center, are examined in further detail below. A. Economic Development The Village attempts to maintain its existing business while expanding its overall commercial and industrial base through economic incentives, when deemed necessary and appropriate. The Village has designated, and the Illinois Department of Commerce and Economic Opportunity (DCEO) has certified, the Cal-Sag Enterprise Zone, a portion of which is located in the Village along the Calumet-Saganashkee Channel. This enterprise zone was established in 1983, initially certified in July of 1985, was expanded in 2005, was renewed and expanded on January 1, 2016, was amended July 27, 2018 (based upon a Village Board change approved in July 2016), and will now remain active through December 31, 2030. The Village shares the renewed and expanded enterprise zone with many municipalities and unincorporated portions of southern Cook County. Within Alsip the 2016 renewal expanded the enterprise zone to 3.38 square miles and extended it up both Pulaski Road and Cicero Avenue to the northern boundaries of the Village. Through the enterprise zone program, businesses choosing to locate in the enterprise zone are entitled to certain tax incentives and targeted assistance. Some of the incentives that are available, depending upon the nature of the business are: sales tax exemption for construction materials, investment tax credit, interest benefits, job training funds, local building permit discounts, and property tax abatement. Industrial properties in the Enterprise Zone are now included in the new Cook County Growth Zone Program to provide additional County assistance to develop these sites. vi The Village uses tax increment financing (“TIF”) as a tool in attracting business development. TIFs provide a means for municipalities, after the approval of a "Redevelopment Plan and Project," to redevelop blighted, conservation or industrial park conservation areas by pledging the anticipated increase in tax revenues resulting from using new tax revenues generated by private redevelopment to pay for the public costs incurred to stimulate such private investment in new development and rehabilitation. Tax Increment Financing is authorized in Illinois by the Tax Increment Allocation Redevelopment Act, as amended. The Village currently has three active TIF districts, the Pulaski Road Corridor TIF, which essentially covers most of Pulaski Road between 115th St. and 123rd St., and two smaller TIFs located on the west side of Cicero Avenue between 123rd Place and I-294. A fourth TIF, TIF 1, expired at the end of 2016. The Village has at various times utilized other financial tools at its disposal such as property tax incentives or sales tax rebates to promote economic development when warranted. The Village is dedicated to responsible economic development that broadens the tax base while expanding job or retail opportunities to the community. Below lists some of the recent and potential future actions taken to further those goals: o As mentioned in the Local Economy section above, with participation from the Village, the Cal-Sag Enterprise Zone was extended by the State of Illinois in both geographic area and in the length until expiration. Businesses have already been taking advantage of the provisions of this enterprise zone. o On December 31, 2016 TIF 1, which covers part of the area bounded by Kedzie Avenue, Pulaski Road, 123rd Street and 127th Street, finished its 23 years of operation as defined in TIF statutes and, thus, terminated. The Village Board on December 19, 2016 adopted a plan incorporating an anticipated $1 million dollar surplus, to be distributed over time; the previously approved road resurfacing project within TIF 1; and a transfer of the remaining $3.9 million to the contiguous Pulaski Road Corridor TIF for development efforts in that area. To date, the transfer to the Pulaski Road Corridor TIF has happened, the road resurfacing project finished and came in under budget, and the Village declared an initial $603,054.29 TIF 1 surplus leaving a balance of $600,000 for property tax refunds and surplus declarations. o 2017 saw the remodeling and expansion of the ALDI supermarket on Cicero Avenue. 2018 saw the remodeling and expansion of the ALDI supermarket on Pulaski Road. o In 2017 and 2018 the Village purchased shuttered business, vacant land, and a business that will be shutting down within the Pulaski Road Corridor TIF with the intent of demolishing any existing buildings and combining parcels, performing any necessary environmental vii remediation, and preparing the sites for future development. One such demolition has already occurred. o In 2016 the Village Board created a Pulaski Road Corridor TIF Façade and Small Business Grant Program to standardize the application process and to help promote not only new developments, but to help existing property owning businesses improve their businesses using TIF eligible expenses. Interest in the program was strong and businesses started working with the TIF district’s consulting firm to help make redevelopment agreement (RDA) applications to the Village Board. There were a number of such RDAs approved. The following is the list of RDAs executed after the start of FY18 or were executed prior to the start of FY18 but were completed after that date: o On June 13, 2017 the Village approved a TIF eligible cost sharing RDA for a new Checkers restaurant within the Pulaski Road Corridor TIF. The restaurant opened on October 10, 2017. o On July 10, 2017 the Village approved a TIF eligible cost sharing RDA for a strip mall to rehabilitate the roof. The project was completed in October 2017. o On July 24, 2017 the Village approved a TIF eligible cost sharing RDA for rehabilitate the roof and HVAC systems of a commercial condominium building. The project was completed November 2017. o In August 2017 a business completed a parking lot resurfacing from an RDA executed in FY17. o On February 5, 2018 the Village entered into an RDA for the development of a $1.3 million retail strip mall anchored by a restaurant tenant on three adjacent parcels that had been purchased by the TIF. The parcels have not been sold to the developers as of the writing of this letter. o On February 19, 2018 the Village approved a TIF eligible cost sharing RDA to rehabilitate the façade and parking areas of a strip mall. o On the same date, February 19, 2018, the Village also approved a different RDA to rehabilitee the façade, the roof, and the parking areas of another strip mall through a $250,000 TIF reimbursement. o On August 20, 2018 the Village approved a TIF eligible cost sharing RDA to improve the parking lot and façade of a local business. viii o Currently owners of numerous industrial properties are putting forth multi-million dollar expansions of existing buildings, refurbishing existing buildings, and/or investing in newer equipment. Some of these have stated that subsequent to the projects that additional people will be hired. B. Transportation Center The Village, which borders Chicago, has close accessibility to Chicago, the Chicagoland region, and Indiana via highway, air, rail, water, bicycle, and commuter bus. Highway Accessibility: Within the Village Interstate 294 (the “Tri-State Tollway”) diagonally intersects and connects to a full four-way arterial road interchange. Additionally, the borders of the Village are within ten (10) miles of I-57, I-80, and I-55 and within twenty (20) miles of I-355, I-88, and I-290. Air: The Village is centrally located to both O'Hare Airport, approximately eighteen (18) miles northwest of the Village, via I-294, and Midway Airport, approximately seven (7) miles north of the Village along Cicero Avenue which runs through the Village. Rail: Commuter rail service is provided by Metra, a division of the Regional Transportation Authority (RTA). Within two (2) miles of the Village borders there are seven (7) train stations in four (4) municipalities, covering three (3) different train lines, each terminating at a different downtown Chicago station. These train lines are the Metra Electric District line terminating at the Millennium Station, the Rock Island District line terminating at the LaSalle Street Station, and the Southwest Service line terminating at Union Station. Rail freight service is supplied by the Indiana Harbor Belt, Baltimore & Ohio, Grand Trunk Western, Illinois Central, and the CSX lines and is accessible through numerous rail spurs throughout the Village. Water, Bicycle, and Bus: The Calumet Sag Channel, which runs through the Village, allows the barge and recreational boating access to the Port of Chicago which includes major docks on Lake Calumet. Alongside the Calumet Sag Channel a bike path starts in Alsip and continues west through Palos Heights, Palos Park, ending in Lemont. Sections of an eastern section of the trail, which will continue the trail from Alsip, through Blue Island, Riverdale, and Dolton to Burnham, has begun and, when completed, is expected to link more than 185,000 people in 14 communities. The Village is also serviced by the Pace commuter bus service. Additionally, across the street from the Village on 127th St. there is a private commuter shuttle bus service to both regional airports. ix x Long-Term Financial Planning A. Planning Policies and Practices The Village of Alsip adopted a Comprehensive Plan on April 1, 2013. This concluded a multi- year process that first produced a July 17, 2012 Existing Conditions Report, which examined Village-wide issues and opportunities related to land use, economic development, housing, parks and open space, and community infrastructure. The second phase of planning involved the public in creating a shared vision for the future of Alsip with specific goals and strategies to help achieve the desired vision. The Alsip Comprehensive Plan contains several policies and action steps to help elected and appointed officials plan for the sustainable growth of the community. The plan addresses a range of topics including but not limited to land use and development, economic growth, open space programming, infrastructure improvements, and image and identity. Such planning is a continuous process and in September 2013 the Village’s Pulaski Road Action Plan was finished and in June of 2014 a Zoning Recommendations Summary was completed. The Village has traditionally made both a multi-year capital improvement plan (CIP) and a multi-year budget. Starting with the FY18 budget, both were expanded to cover five full fiscal years subsequent to the appropriated fiscal year on a line item basis. On May 21, 2018 the Village Board passed the Sustainable Retiree Defined Benefit Funding Plan. This plan not only established the financial policies necessary to fully fund by the end of April 2040 all three Village pension plans and retiree healthcare promises, but dedicated the specific funding sources necessary to meet that self-imposed mandate. See the Major Initiatives > A. Debt Management section below for details. B. Long-Term Financial Goals The Village has two long-term goals: the reduction of debt and the replacement of aging infrastructure. Both goals are detailed in the Major Initiatives section below. x Relevant Financial Policies The Village has put into place several key written policies such as a purchasing policy and an investment policy. These policies have been passed by the Village Board and, in conjunction with financial procedures instituted by management, have formalized the long-standing practices and principles that have guided the Village for decades. x x Major Initiatives A. Debt Management Since early 2015 the Village has worked to reduce and ultimately eliminate its long-term general obligation (G.O.) and retiree benefit related debts. Some of these efforts include: o The paying down, refunding, or advance refunding of almost all G.O. debt. In the four (4) subsequent tax year levies since early 2015 the annual G.O. payments: On bonds have decreased 51.4%, or $1,511,360, and the portion that was not abated (i.e. that a levy was needed to pay) decreased 86.7%, or $945,702; and On installment contract payments for vehicles, equipment, and LED lighting have decreased 69.4%, or $217,639. o The tightening of the eligibility requirements of who qualifies for the Illinois Municipal Retirement Fund (IMRF) and the Village’s other postemployment benefit (OPEB) plan; o The launch a wellness program, a workplace injury reduction program, a transitional light-duty work program, and a high-deductible healthcare plan, all in an effort to keep employees and retirees healthy, thus reducing potential sick and FMLA leave, worker’s compensation payments, duty disability payments, PSEBA payments, and future OPEB liabilities; o The transition of 100% of OPEB eligible and Medicare eligible retirees and retiree spouses to a Medicare wrap program, thus lowering OPEB costs and liabilities; and o The initiation of various efforts to temper the rise in healthcare costs. o In December 2017 the Village Board approved an increase of 30.00% in the Village’s 2017 tax year (TY17) aggregate property tax levy, with operations receiving none of the increase and almost all of the increase dedicated to meeting the public safety pensions’ actuarially determined contributions (ADCs) and reducing the OPEB’s deficit. The fire pension specific levy was increased by 26.21% ($452,649), the police pension specific levy was increased by 36.31% ($950,979), and the indirect OPEB levy was increased by 605.53% ($1,705,738) from TY16’s original OPEB indirect levy. This TY17 levy increase was in addition to increases in the public safety pension levies of 6.91% in TY16 and 5.00% in TY15. The TY17 levy was not only the second year in which no additional levy increase went to operations, but also marks the first time that the direct (public safety pension) and indirect (OPEB) retiree benefit levies exceeded the combined operations and xi general obligation bond levies. While TY18 did see operational increases to the levy, again the retiree benefit levies exceeded the combined operations and general bond levies. o As mentioned in the Long-Term Financial Planning > A. Planning Policies and Practices section above, on May 21, 2018 the Village Board passed the Sustainable Retiree Defined Benefit Funding Plan (“the Plan”), which created policy designed to meet the standards of The Center for State and Local Government Excellence’s July 2013 Pension Task Force. The five sub-bullet points below detail the Pension Task Forces’ five general policy directives and how the Plan met those directives. Actuarially Determined Contributions: All sustainable retiree defined benefit policies should be based upon an appropriate actuarially determined contribution (ADC). The Plan requires the Village and the public safety boards to annually commission from an actuary one report that meets GAAP standards for municipal government reporting and a second one that creates an ADC which is based upon the best actuarial practices for funding. The Plan requires that a similar pair of actuarial reports is made for OPEB on either a biennial fiscal year basis (GAAP minimum period) or annually. The Plan then goes on to detail the specific actuarial assumptions, most notably that all three plans will now have the same amortization period (April 30, 2040) and a reduction in the long-term rate of return on assets to 6.50%. Funding Discipline: All sustainable retiree defined benefit policies should contain both the commitment to fund the collective ADCs as well as build in sufficient fiscal commitments necessary to meet that ADC funding commitment. The Plan met this directive through: making a specific commitment to fund the collective ADCs of all four plans (including IMRF) in an efficient manner; a commitment to manage any potential growth in retiree liabilities; and to direct a level of duties, ethical, and investing standards from the independent boards managing the retiree assets. The Plan then went further than most by specifically identifying, in detail, specific funding sources, as well as possible alternative sources if necessary, to meet the collective ADCs. Intergenerational Equity: All sustainable retiree defined benefit policies should maintain intergeneration equity by having the cost of employee benefits be paid for by the generation of taxpayers who received the services of those employees. Liabilities had been allowed to accumulate over time, partially from unfunded state mandates of retroactive new benefits. While intergenerational equity is not possible xii with such large prior liabilities, the Plan moved strongly in the direction of intergenerational equity by standardizing the amortization periods of the retiree benefit plans, adding layers each year that had separate fifteen (15) year layers starting in FY18, and by providing the funding to meet the ADCs on an annual basis. Contributions as a Level Percentage of Payroll: All sustainable retiree defined benefit policies should make employer costs a consistent percentage of payroll over time. The Plan mandates that for both the GASB/GAAP compliant reports and the funding reports determining the ADCs, the Entry Age Normal with level percentage of payroll, actuarial cost method be used. Accountability and Transparency: All sustainable retiree defined benefit policies should require clear reporting to show how and when retiree defined benefit plans will be fully funded. The Plan commits the Village to: open meetings when discussing retirement benefit funding policy changes; posting relevant materials of the Village website; and reviewing the actuarial assumptions in the Plan at least every five years and allowing the Finance Director to make necessary changes between such reviews. The Village maintains a Standard and Poor’s Ratings Services, a part of McGraw-Hill Financial, Inc., (“S&P”) rating of AA (Stable Outlook), a rating higher than the national average. As there are no outstanding general obligation (G.O.) bonds rated by any other rating agency, there are no current ratings from any other rating agency. B. Infrastructure Replacement and Improvement The Village of Alsip residents and businesses can best be provided water and sanitary sewer services by a self-sustaining water enterprise that is adequately financed with rates and charges based on sound accounting, engineering, financial, and economic principles. Revenues from water and sewer rates and user fees should be sufficient to enable the water and sewer departments to provide for the full cost of service including: o Annual operation and maintenance expenses o Capital costs (e.g., debt service and other capital outlays) o Adequate working capital and required reserves Full-cost pricing, i.e., charging rates and fees that reflect the full cost of providing water and wastewater services, should include renewal and replacement costs for treatment, storage, distribution, and collection (sewer) systems. For some time now, the Village has kept water rates low by minimizing or ignoring these costs; however, as the useful lives of system assets xiii draw to a close, we have recently addressed the current and future financial needs of the water system by increasing rates to cover replacement costs. Similarly, other Village infrastructure assets, specifically roads, storm sewers, and ditches were not been properly maintained for many years and the Village Board has started to address that deficiency. The main sources for such funding come from user fees and taxes that go into two separate special revenue funds: the Motor Fuel Tax (MFT) Fund and the Road & Bridge Fund. The MFT Fund is entirely funded from a state-wide gasoline tax that is distributed to municipalities on a per capita basis. The Road & Bridge Fund composes of three departments (Streets, Drainage, and Forestry) and is primarily funded by an annual vehicle license sticker, a locally imposed and collected fuel tax, and a specific property tax levy. Revenues: Rather than rising with inflation or allowing for increasing revenue to offset these mandates, tax dollars to the Village from the State’s traditional motor fuel tax (MFT), which can be used for street maintenance, declined 14.1%, or $80,170 per year, over the dozen years through FY19. Due to population that is declining only slightly, but at a larger rate than the State of Illinois as a whole, and due to increasing fuel efficiency standards and technological innovations (electric and hybrid vehicles, for example), this decline in traditional MFT payments is likely to continue over the following decades. Subsequent to the end of the fiscal year (FY19) audited in this report, the State of Illinois reversed the decreasing state shared revenue for road work when it passed Senate Bill 1938. From the section that impacts municipalities, this bill doubled the tax on gasoline from nineteen (19) cents to thirty-eight (38) cents per gallon, effective July 1, 2019. Of this new tax 15.71%, or almost three (3) cents per gallon is to be distributed through a new Transportation Renewal Fund to municipalities’ MFT funds on a per capita basis. On September 10, 2019 the Village MFT fund received its first monthly payment in the amount of $28,725 from this new Transportation Renewal Fund. Starting in late 2015 the Village Board began implementing the following rate and fee structures which were designed to increase the pace of maintaining the Village’s infrastructure assets: o On October 19, 2015 the Village Board raised the locally collected fuel tax from $0.04 to $0.05 per gallon. In FY19 this tax collected over $1.4 million for the Village’s Road & Bridge (R&B) fund. o On February 15, 2016 the Village Board raised the locally collected vehicle sticker fee for the first time in eight years. Additionally, the ordinance indexed the fees so that there xiv would not be any future gap between cost increases and fee adjustments. The R&B fund collected just over $425,000 in FY19 from these fees. o In February 2016 the water department completed a water rate analysis that determined it was necessary to increase water rates to facilitate needed capital improvements to the water distribution system. The Village Board subsequently passed an 18.3% water rate increase, effective May 1, 2016. The same Village ordinance for the four (4) subsequent years built in the anticipated City of Chicago wholesale rate increases plus a modest $0.25/1000 gallons per year increase for maintenance of the Village’s system. Larger industrial businesses also saw an increase. The two wholesale customers, the Village of Crestwood and the City of Palos Heights, were not covered under this ordinance. o The Village approved the new water supply contracts with the Village of Crestwood and City of Palos Heights the on January 9, 2017 and May 15, 2017, respectively. The Village of Alsip had not been making the required “costs of operation” adjustments as described in the proceeding contracts, effectively not recouping the total associated costs of providing the water supply to those municipalities. These new contracts simplified those calculations and, during a four-year phase-in, brought the rates up (respectively 8.4%, 4.7%, 4.5%, and the final year to be determined) to the rate necessary to cover those costs starting on June 1, 2020. In FY19 the Village sold $5,248,840 in total water to these municipalities. o In December 2017 the Village Board levied a tax year 2017 (TY17) Road & Bridge property tax increase of 30.9% or $165,431, some for OPEB obligations and some for capital expenditures. o There have been preliminary open meeting discussions with the Village Board about raising sewer rates to keep pace with sewer system maintenance. To date the Village Board has not changed those rates since April 1, 2007. o There have been no discussions with the Village Board to date about establishing a storm sewer utility to fund drainage projects through fees rather than tax dollars. Projects and Other Expenses: Below are some of the capital improvement projects that have been planned and/or completed due to the increased rates, fees, and taxes listed above. o IEPA loan (Keeler/Tripp) – Started September 2017, completed April 2018. Replaced 5380 feet of water main of various sizes ranging from 6 inch to 12 inch. This project was completed to eliminate old sections of water main that routinely failed and had poor fire xv protection performance. Construction cost - $1,386,229 Engineering cost - $234,000 Total - $1,620,229 o Rte. 83 (Tinley Creek) water main relocation – January 2018. The Illinois Department of Transportation has directed the Village to relocate this water main to facilitate the widening of the intersection at 127th St. and Rte. 83. Initially planned for spring of 2018, IDOT has postponed this project multiple times. It is now scheduled for the spring of 2020. The Village has entered into an Intergovernmental Agreement (IGA) with the City of Palos Heights to share the costs of relocating this water main. Construction cost - $1,168,978 Engineering cost - $184,795 Total - $1,353,773 o Pulaski TIF water main (117th St. – 120th St.) - June 2018, completed May 2019. Replaced 2240 feet of 8-inch water main. Note that 75% of the expense was from the Pulaski Road Corridor TIF and 25% was from the Water & Sewer Fund. Construction cost - $524,741 Engineering cost - $90,300 Total - $615,041 o Pulaski TIF water main (119th St. – 120th St.) – Approved Sep 2019. 840-foot extension of 8-inch water main to facilitate fire protection needs and water quality improvements. Note that 75% of the expense was from the Pulaski Road Corridor TIF and 25% was from the Water & Sewer Fund. Construction cost - $402,541 Engineering cost - $48,305 Total - $450,846 o Water Tower Rehabilitation – Approved Oct 2019. The repainting of two 1-million gallon water storage tanks has been approved. This maintenance work will ensure the continued long service life of this asset. Construction cost - $1,639,800 Engineering cost - $82,850 Total - $1,722,650 Water main replacement will continue to be an ongoing capital need as fully 25% of the distribution system has reached the end of its design lifecycle. Future projects may include xvi those designed to extend the useful life of water main through water main rehabilitation and lining and/or the installation of cathodic protection systems where appropriate. Below are the costs for road resurfacing and the sanitary inflow/infiltration control sewer inspections (MWRD unfunded mandate). The Village of Alsip is one of four out of all municipalities in Cook County that is compliant with this mandate at this time. Both resurfacing & MWRD IICP are annual costs that need to be appropriated, for which based on current figures would be estimated at minimum $600,000 each year for each program. o Resurfacing: FY18: Construction - $491,977.62 Engineering - $59,133.26 Total - $551,110.88 FY19: Construction - $234,207.77 Engineering - $31,340.47 Total - $265,548.24 FY20: Construction - $574,496.30 (Estimated) Engineering - $61,900.00 (Estimated) Total - $636,396.30 (Estimated) o I&I Program (FY18 & FY19): Cleaning and Televising Contractor - $84,736.51 Engineering - $16,000.00 Total - $100,736.51 Manhole Inspections Engineering - $43,000.00 Smoke Testing Engineering - $49,000.00 External Home Inspections Engineering - $39,000.00 Lift Station Inspections xvii Engineering - $5,000.00 o MWRD High Priority CIPP (Inversion lining) (2019 - 20) (Costs Estimated) Construction - $373,000.00 Engineering - $52,220.00 Total - $425,220.00 Storm sewer drainage project costs for future years have not yet been determined but will be looking to appropriate for future budget appropriations approximately $350,000 each year for improvements. Infrastructure Replacement and Improvement Summary: The Village possesses ninety (90) miles of water mains, over thirteen hundred (1,300+) fire hydrants, two (2) pumping stations, two (2) water towers that can contain six million two hundred thousand (6,200,000) gallons of water, fifty-nine (59) miles of sanitary sewers, three (3) lift stations, fifty-one (51 miles) of storm sewers, fifty-five (55) miles of streets, and twelve hundred fifty-five (1,255) street lights. The Village will continue to look for ways to replace and, in some instances, improve these aging infrastructure assets. Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Alsip for its comprehensive annual financial report (CAFR) for the fiscal year ended April 30, 2018. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current CAFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Before thanking those at the Village of Alsip, a special acknowledgement is being made for CliftonLarsonAllen LLP (CLA), the Village’s consistent audit firm for a generation. CLA has been a good partner with the Village in reducing potential internal control issues and in improving the audit though both in helping to implement accounting standard changes over the years and in helping the Finance Department in the process of turning that audit into a Certificate of Achievement for Excellence in Financial Reporting awarded CAFR. Nevertheless, the Village strives to keep up with best practices. Therefore, in September 2019, by issuing an audit services request for xviii proposals and qualifications, the Village Board adopted the GFOA’s 2019 Best Practice: Audit Procurement document’s recommendation which states, “Governmental entities should undertake a full- scale competitive process for the selection of independent auditors at the end of the term of each audit contract, consistent with applicable legal requirements.” Through this process the Village will switch to BKD, LLP for audit years beginning FY20. Again, all of the hard work of CliftonLarsonAllen LLP audit staff over the many years working with the Village has been much appreciated. The preparation of this report would not have been possible without the skill, effort, and dedication of the entire staff of the Finance Department, including those in the Information Technologies area. We wish to thank all government departments for their assistance in providing the data necessary to prepare this report. Credit also is due to the Board of Trustees for their unfailing support for maintaining the highest standards of professionalism in the management of the Village of Alsip’s finances. Respectfully submitted, John D. Ryan Kenneth “Kent” N. Oliven, CPA, CGMA, CIMT, CPFA, CPFO Village President Village Finance Director & Treasurer Citizens Of Alsip Trustee Michael Zielinski Building & Public Health Committee Building Department Building Commissioner Rodger Early Permits Licensing Village Properties Trustee Monica M. Juarez Planning & Zoning & License Committee Public Works Committee Public Works Department Superintendent Of Streets Mike Fraider Streets Sanitary Sewers Storm Sewers Boat Launch Trustee Catalina Nava-Esparza Water Department Water Commissioner Dan Tryban Information Technology Committee Utility Billing Water Operations Mayor John D. Ryan Village Engineer Robinson Engineering Village Attorney Louis F. Cainkar, Ltd. Mayor’s Office Village Prosecutor Odelson & Sterk, Ltd. Trustee Christine L. McLawhorn Fire Committee Finance Committee Village Properties Committee Fire Department Fire Chief Tom Styczynski Fire Prevention Operations Training Finance Department Finance Director Kent Oliven Risk Management Finance & Accounting Information Technology Trustee Christopher W. Murphy Human Resources & Insurance Committee Police Committee Trustee Richard S. Dalzell Ordinance & Legislation Committee Police Department Police Chief Jerald Miller Services Investigations Patrol Village Clerk/ Collector Susan M. Petzel Clerk’s Office Records Collections Water & Sewer Committee Economic Development Committee Economic Development Human Resources Public Health Planning & Zoning Department of Emergency Planning Forestry xix Certificate of Presented to Village of Alsip For its Comprehensive Annual April 30, 2018 Executive Director/CEO Financial Report for the Fiscal Year Ended Reporting in Financial for Excellence Achievement Text38:Illinois Government Finance Officers Association FINANCIAL SECTION 1 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Trustees Village of Alsip, Illinois Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the Village of Alsip, Illinois (the “Village”),as of and for the year ended April 30, 2019, and the related notes to the financial statements,which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The Honorable Mayor and Trustees Village of Alsip, Illinois 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village as of April 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, and the Road and Bridge Fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of employer contributions –pension plans, and schedule of changes in the employer’s net pension liability and related ratios, schedule of changes in the employer’s net OPEB liability and related ratios, schedule of investment returns, notes to required supplementary information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The introductory section, combining and individual fund financial statements, schedule of insurance coverage, property tax levies and collections extended by funds and assessed valuation, and statistical section as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The consolidated year-end financial report and the combining and individual fund financial statements are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Honorable Mayor and Trustees Village of Alsip, Illinois 3 The introductory section, schedule of insurance coverage, property tax levies and collections extended by funds and assessed valuation, and statistical section,have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. We have also previously audited, in accordance with auditing standards generally accepted in the United States of America, the Village’s basic financial statements for the year ended April 30, 2018, which are not presented with the accompanying financial statements and we expressed unmodified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated December 18, 2018. The audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements as a whole. The combining and individual fund financial statements, related to the 2018 financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2018 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of those basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements information related to the April 30, 2018 financial statements is fairly stated in all material respects in relation to the basic financial statements from which they have been derived. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 25, 2019,on our consideration of the Village's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Oak Brook, Illinois October 25, 2019 VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 4 As the management of the Village of Alsip, Illinois (the “Village”), we offer readers of the Village’s financial statements this narrative overview and analysis of the Village’s financial activities for the fiscal year ended April 30, 2019 (FY19). This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village’s financial activities, (3) identify changes in the Village’s financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. We encourage readers to consider information presented here in conjunction with the Village’s financial statements which begin on page 20. FINANCIAL HIGHLIGHTS !The assets and deferred outflows of resources of the Village of Alsip did not exceed its liabilities at the close of the most recent fiscal year. Specifically, there was a (negative) net position of $(29,984,880). Of this amount, $(65,155,356) represents unrestricted net position. !The Village’s (negative) total net position was $(29,984,880) an increase of $5,741,307, or 16%, over the end of FY18 (negative) net position of $(35,726,187). The (negative) governmental activities net position was $(61,470,246), an increase from the net position of $(62,189,489) at the end of FY18; This entire increase, was due to a $5,466,708 increase in cash held for insurance and related expenditures, mainly related to other postemployment benefits (OPEB), or deferred outflow of resources on OPEB. The positive business-type activities net position was $31,485,366, a increase from the net position of $26,463,302 at the end of FY18; This increase is a mainly a result of (1) the write-off of a liability, and (2) timing differences between collection of business-type fees for services (i.e. water billing and Heritage senior housing rents) and capital projects. !As of the close of the current fiscal year, the Village’s governmental funds reported combined ending fund balances of positive $29,259,446, an increase of $4,912,283, or 20.0%, in comparison with the prior year. Approximately 46% of this amount, or $13,380,093, is available for spending at the government’s discretion (unassigned fund balance)and, as such, may be used to meet the government’s ongoing obligations to citizens and creditors. !At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) for the general fund was $22,457,752, or approximately 94.0% of total general fund expenditures. OVERVIEW OF THE FINANCIAL STATMENTS The focus of the financial statements is on both the Village as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government-to-government), and enhance the Village’s accountability. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 5 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 Position presents information on all of the Village’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two reported as net position. This statement combines and consolidates governmental fund’s current financial resources (short-term, spendable resources) with capital assets and long-term obligations using the accrual basis of accounting which maintains its measurement focus on economic resources rather than spendable financial resources. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. The Statement of Activities presents information on how the Village’s net positions have changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g. earned but unused employee leave time). The Statement of Activities also reports the extent to which various expenses for governmental or business-type functions are dependent upon user-charges, grant sources, or general tax and other revenues. Both of the government-wide financial statements distinguish functions of the Village which are principally supported by taxes and intergovernmental revenues (governmental activities) from those functions which 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, finance, police, fire, civil defense, road and bridge, health and welfare, and economic development. Shared state sales tax, property taxes, real estate taxes, and shared state income taxes finance the majority of these services. The business-type activities reflect private sector type operations water, sewer, storm water management and senior housing where the charges for service typically cover all or most of the cost of operation, including depreciation. Fund Financial Statements Traditional users of governmental financial statements will find the fund financial statements presentation more familiar. A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Village uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the Village’s most significant funds rather than the Village as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for non-major funds is provided in the form of combining statements in a later section of this report. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 6 Governmental Funds. The governmental major funds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, governmental fund statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near-term. The government-wide financial statements provide a long-term view. These two perspectives can provide insight into the long-term impact of short-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances reconcile the differences between these two perspectives. The Village adopts an annual appropriated budget for and has control over the following governmental funds: the General Fund, the Debt Service Fund and the following three special revenue funds: Road and Bridge Fund, Motor Fuel Tax (MFT), and the Special Tax allocation (which contains the following four TIFs: TIF 1 (no longer active, but with fund balance), NW Corner of Cicero Avenue and I-294 TIF, 123rd Place and Cicero Avenue TIF, and the Pulaski Road Corridor TIF). Budgetary comparison statements have been provided for these funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 22 and 23 of this report. Proprietary Funds. The Village maintains no internal service funds. As for the other type of proprietary funds, the Village maintains enterprise funds to account for its water, sewer, and senior housing activities. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements and use the economic resources measurement focus and accrual basis of accounting, similar to private-sector businesses. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, sewer, and senior housing funds. The basic proprietary fund financial statements can be found on pages 26 through 30 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains two fiduciary funds which account for the resources of the Alsip Police and Fire Pension Funds. The fiduciary funds financial statements can be found on pages 31 and 32 of this report. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 7 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. The notes to the financial statements can be found on pages 33 through 79 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 employee retirement and other postemployment benefit plans. Required supplementary information can be found on pages 80 through 93 of this report. Combining and individual fund statements and schedules can be found on pages 94 through 129 of this report. GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS Village of Alsip’s Net Position Table 1 presents a condensed Statement of Net Position as of April 30, 2019 (FY19) compared to the prior year ended April 30, 2018 (FY18). FY19 FY18 FY19 FY18 FY19 FY18 Assets Current and other assets 38,066,147$ 34,314,704$ 17,707,758$ 14,803,215$ 55,773,905$ 49,117,919$ Capital assets 15,001,997 15,372,143 29,947,038 30,662,432 44,949,035 46,034,575 Total assets 53,068,144 49,686,847 47,654,796 45,465,647 100,722,940 95,152,494 Deferred outflows 12,097,857 11,784,290 503,871 180,390 12,601,728 11,964,680 Liabilities Other liabilities 2,165,458 2,158,236 1,388,532 3,275,849 3,553,990 5,434,085 Long-term liabilities 122,931,397 117,673,108 15,102,649 15,255,875 138,034,046 132,928,983 Total liabilities 125,096,855 119,831,344 16,491,181 18,531,724 141,588,036 138,363,068 Deferred inflows 1,539,392 3,829,282 182,120 651,011 1,721,512 4,480,293 Net position Net investment in capital assets 10,907,838$ 11,131,638$ 17,716,403$ 17,645,110$ 28,624,241$ 28,776,748$ Restricted 6,546,235 7,468,192 - - 6,546,235 7,468,192 Unrestricted (78,924,319) (80,789,319) 13,768,963 8,818,192 (65,155,356) (71,971,127) Total net position (61,470,246)$ (62,189,489)$31,485,366$ 26,463,302$ (29,984,880)$ (35,726,187)$ Table 1 Statement of Net Position April 30, 2019 Governmental Activities Business-type Activities Total Primary Government VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 8 Net position may serve over time as one useful indicator of a government’s financial condition. The Village’s net position for both the governmental activities and the total primary government overall became negative with the implementation of GASB Statements No. 68 (pension debt) and No. 75 (OPEB debt). The liabilities and deferred inflows of resources of the Village exceeded assets and deferred outflows of resources, or net position, at the close of the fiscal year by a negative $29,984,880, an increase of $5,741,307 from the negative $35,726,187 net position in the prior fiscal year. A large portion of total assets reflects the Village’s investment in capital assets (land, streets, water mains, sewers, building, machinery, and equipment), less any related debt that was used to acquire those assets. The Village uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Village’s investment in its capital assets is reported net of debt, it should be noted that the resources needed to repay that debt must be provided from other sources, since the capital assets cannot be used to liquidate these liabilities. Restricted net position represents resources that are subject to external restrictions on how they may be used. Governmental restricted assets include debt service, motor fuel tax funds for the maintenance of roadways, asset forfeiture funds, and drug prevention funds used for public safety/education. The increase in restricted assets for governmental activities was primarily due to an increase in monies restricted for special purposes. Unrestricted net position for governmental activities, the part of net position that can be used to finance day to day operations had a balance of $(78,924,319) compared with a balance of $(80,789,319), in the previous year. The increase is attributed to the current assets that have been assigned under GASB Statement No. 54 for “insurance premiums, claims, and related expenditures”, mainly for retiree healthcare (OPEB). Changes in Net Position (from the Statement of Activities) For the fiscal year ended April 30, 2019, revenue from all sources totaled $51,099,627. Governmental revenue accounted for $31,833,071 of that total, while business-type activities accounted for $19,266,556. Expenses for all functions totaled $45,358,320 with $30,679,678 for governmental activities, and $14,678,642 for business-type activities. The Village of Alsip’s overall net position increased $5,741,307 from prior fiscal year. Reasons for the changes in the overall financial position are discussed in the following sections for governmental activities and business-type activities. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 9 Table 2 summarizes the revenue and expenses of the Village’s activities for FY19 compared to FY18. Table 2 FY19 FY18 FY19 FY18 FY19 FY18 Revenue Program revenues: Charges for service $ 5,866,914 $ 4,759,326 $ 17,518,661 $ 17,747,955 $ 23,385,575 $ 22,507,281 Operating and capital grants 1,894,061 71,120 - - 1,894,061 71,120 General revenue: Property taxes 12,655,355 12,961,593 - - 12,655,355 12,961,593 Other taxes 10,883,351 12,389,003 - - 10,883,351 12,389,003 Other 533,390 653,141 1,747,895 97,897 2,281,285 751,038 Total revenue 31,833,071 30,834,183 19,266,556 17,845,852 51,099,627 48,680,035 Expenses Governmental activities: General government 3,032,325 4,900,132 - - 3,032,325 4,900,132 Public safety 23,345,417 21,810,737 - - 23,345,417 21,810,737 Road and bridge 2,500,713 2,775,496 - - 2,500,713 2,775,496 Building 503,373 511,977 - - 503,373 511,977 Health and welfare 1,106,690 1,194,552 - - 1,106,690 1,194,552 Other 93,283 191,744 - - 93,283 191,744 Interest 97,877 178,467 - - 97,877 178,467 Business-type: Water - - 10,531,098 10,864,515 10,531,098 10,864,515 Sewer - - 519,977 617,672 519,977 617,672 Senior Citizen Complex - - 3,627,567 3,680,207 3,627,567 3,680,207 Total expenses 30,679,678 31,563,105 14,678,642 15,162,394 45,358,320 46,725,499 Excess (deficiency) before transfers 1,153,393 (728,922) 4,587,914 2,683,458 5,741,307 1,954,536 Transfers (434,150)756,770 434,150 (756,770)- - Change in net position 719,243 27,848 5,022,064 1,926,688 5,741,307 1,954,536 Net Position - Beginning (62,189,489)(62,217,337) 26,463,302 24,536,614 (35,726,187) (37,680,723) Net Position - Ending $ (61,470,246) $(62,189,489) $ 31,485,366 $ 26,463,302 $ (29,984,880) $(35,726,187) Changes in Net Position Fiscal Year Ending April 30, 2019 Governmental Activities Business-type Activities Total Primary Government VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 10 Governmental Activities Revenues: For the fiscal year ended April 30, 2019, governmental revenues totaled$31,833,071, signifying an increase in revenues of $998,888, primarily as a result of an increase in Charges for services. Property taxes totaled $12,655,355 or 40.0% of governmental revenues; a decrease of 2.0% from the from the prior year’s property tax revenue of $12,961,593. Other taxes, at $10,883,351 realized an increase of $388,409, or 3.1%, over FY18, and are primarily attributable to the Village’s sales taxes, state income tax, locally collected fuel tax, and the locally collected real estate transfer taxes. In the FY19 presentation the State of Illinois levied and collected motor fuel tax (MFT) is reclassified under Operating and capital grants to be in consistent with the new State’s classification under the Grant Accountability and Transparency Act (GATA). Charges for services, at $5,866,914 represent 18% of total governmental revenues. Charges for Services which include fees, licenses, and refuse removal were up from FY18 by $1,107,588 or 23.3%. Charges for service 18% Operating and capital grants 6% Property taxes 40% Other taxes 34% Other 2% Governmental Activities - Revenue Expenses: For the fiscal year ended April 30, 2019, governmental expenses totaled$30,679,678, signifying a decrease of $883,427, or 2.8%, which includes general government, public safety, road & bridge, building, health & welfare, capital projects, and interest. Public safety expenses are mainly accounted for in the General Fund in the departments of Police and Fire and Ambulance Service (a department that was merged with the Fire Department in FY20) and totaled $23,345,417, a $1,534,680 or 7.0% increase over FY18. The increase is entirely due to a $578,875 increase in a firefighter pension contribution and a $1,282,332 increase in a police pension contribution over the prior year’s contribution to those pension funds. The Road & Bridge Fund made up 8.2% of all governmental expenses in FY19with $2,500,713. Health & Welfare amounted to $1,106,690, or 3.6%, of governmental activities, and included the refuse contract expense of $1,127,590 and a credit balance of $98,239 related to capitalization of expense. Interest expense of $97,877 was accounted for mainly in the Debt Service Fund and is the interest paid on outstanding debt along with the costs of issuing and maintaining debt during the current year. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 11 General government expenses are also accounted for in the General Fund and include the Administration, Finance, Village Clerk, and Boat Launch departments, as well as the Planning Commission, the Police & Fire Commission, insurances coverages, Social Security, and the Illinois Municipal Retirement Fund (IMRF) pension plan. Total general government expenses were $3,032,325, or 9.9%, of all governmental expenses in FY19. Business-type Activities For the Village of Alsip’s business-type activities (water, sewer, and senior housing), the results for FY19 were an increase in net position of $5,022,064, or 20.5%, to an overall ending net position of $29,558,678. $1,530,434 of that difference was due to a Village Board resolution derecognizing a water liability posted over a decade before for which there were a lack of records supporting the liability. In FY19 the Village Board also authorized that the Pulaski Road Corridor TIF pay a portion of a water line replacement, which necessitated a $434,150 transfer to the Water & Sewer Fund from the Tax Allocation Fund. FY19 saw an annual water rate increase, which was the major influence in the $405,165 increase in water charges for service. FY18, and not FY19, had final payments for the Series 2007 bond and the Series 2009A BAB bond, both which had both been partially defeased by the Series 2017 bond; Similarly, FY18 saw additional costs associated with those transactions. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 12 FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS As noted earlier, the Village of Alsip uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the Village of Alsip’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Village of Alsip’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the Village of Alsip itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the Village of Alsip’s Board of Trustees. At April 30, 2019, the Village of Alsip’s governmental funds reported combined fund balances of $29,259,446, an increase of $4,912,283 in comparison with the prior year. Approximately 45.7% of this amount ($13,380,093) constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either nonspendable, restricted, committed, or assigned to indicate that it is 1) not in spendable form ($255,459), 2) legally required to be maintained intact or restricted for particular purposes through creditor imposed requirements, constitutional provisions, or enabling legislation ($6,546,235), 3) committed for particular purposes ($0), or 4) assigned for particular purposes ($9,077,659). General Fund - The General Fund is the Village’s primary operating fund and the largest source of day-to-day service delivery. Table 3 presents a summary of General Fund revenues and other financing sources for the year ended April 30, 2019. Table 3 % IncreaseFY19FY18Difference(Decrease) Property taxes 12,572,975$ 8,721,147$ 3,851,828$ 44.2% Other taxes 7,881,452 7,844,676 36,776 0.5% Licenses and permits 557,699 488,051 69,648 14.3% Franchise fees 311,123 312,161 (1,038) -0.3% Other fees 1,596,577 1,374,076 222,501 16.2% Intergovernmental 3,457,400 2,655,136 802,264 30.2% Charges for services 833,052 751,617 81,435 10.8% Police and court fines 1,102,493 878,560 223,933 25.5% Investment income 247,213 110,369 136,844 124.0% Miscellaneous 530,444 508,415 22,029 4.3% Total revenue 29,090,428$ 23,644,208$ 5,446,220$ 23.0% GENERAL FUND REVENUES AND OTHER FINANCING SOURCES VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 13 The Village of Alsip’s 2018 Tax Year (TY18) Equalized Assessed Valuation (EAV) for property taxes payable in 2019 was $563,629,340, a decrease of 3.0% from the TY17 EAV of $580,856,755. Despite the second year in a row of an EAV increases, due a nationwide decrease in property values and an EAV lag in reporting of those values, the Village’s EAV is still below the 2008 Tax Year EAV high of $801,937,100, cumulatively declining 29.7% during that decade. The average Village property tax rate has increased in TY18 to 2.347 from the prior tax year rate of 2.222. Through FY19 collections from TY18 were $6,452,629, or 48.8%, of the $13,229,381 levied and collections from the prior tax year were $11,957,435, or 92.6% of the $12,907,318 levied in TY17. Real estate taxes contribute approximately 43.2% of the General Fund revenue. Sales tax revenue of $6,590,111, which accounts for 83.6% of “Other taxes”, continues to be the second largest source of revenue for the General Fund. Other taxes accounted for $7,881,452, or 27.1%, of General Fund revenue, which was an increase of 0.5% from prior year. The Village continues to try to diversify its tax base and encourage reinvestment by utilizing economic development tools available to it, such as Tax Increment Financing (TIF) districts, an enterprise zone, and tax rebates when financially appropriate and applicable. Income Tax Revenue (part of Intergovernmental), the General Fund’s third largest source of revenue at 11.9%, came in at $3,457,400, showing an increase of $802,264, or 30.2%, from the prior year. Police and court fines increased $223,933, or 25.5%, as a result increased police activity in the community. The Village of Alsip charges residents for refuse on their monthly utility bill. Revenue for this service is recorded in the General Fund as Charges for Service. The Village traditionally has subsidized this service (i.e. charges for service was lower than the cost of the independent waste hauler). In FY17, the Village passed an ordinance that gradually increased the charges for service from September 5, 2016 until January 1, 2023 at which point revenues would cover costs. Charges for services was $833,052 an increase of $81,435, or 10.8%, over the prior year. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 14 Table 4 presents a summary of General Fund expenditures for FY19. Table 4 General Fund Expenditures % IncreaseFY19FY18Difference(Decrease) General government 2,018,950$ 2,710,347$ (691,397)$ -25.5% Public safety 16,768,330 13,288,713 3,479,617 26.2% Building 259,252 191,606 67,646 35.3% Health and environment 1,195,205 1,157,584 37,621 3.2% Insurance 3,554,597 4,207,348 (652,751) -15.5% Boat launch 14,879 19,620 (4,741) -24.2% Debt service 72,915 107,652 (34,737) -32.3% Total expenditures 23,884,128$ 21,682,870$ 2,201,258$ 10.2% Overall General Fund general government expenditures in FY19 decreased $691,397, or 25.5%, from FY18. The decrease is a result of a legal settlement that occurred at the end of the prior year. Public Safety accounted for 70.2% of General Fund expenditures. The primary increase in public safety expenditures was for salaries and personnel benefits, most notably pension contributions. Healthcare costs are currently reflected in the insurance category. The Village provides health insurance to its employees and their families. In addition, the Village provides explicit health insurance promises of coverage to many of its retirees, doing so entirely on a pay-as-you go basis, although the Village is looking to set up an OPEB Trust. Insurance costs, the second largest category of General Fund costs at 14.9%, decreased $652,751, or 15.5%, due to decreased claim activity. General Fund Debt Service decreased $34,737, or 32.3%, from the prior fiscal year. Table 5 General Fund Budgetary Highlights Original FinalBudgetBudget Actual Revenue 23,015,604$ 23,015,604$ 28,695,152$ Expenditures 24,670,582 25,169,182 24,589,485 Net changes in fund balance (1,654,978)$ (2,153,578)$ 4,105,667$ VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 15 The Village General Fund in the Comprehensive Annual Financial Report is shown in comparison to the original and final budget. The revenues were conservatively budgeted and actual was $5,679,548 or 24.7% higher. The expenditures were $579,697, or 2.3%, lower than the final budget. Other Major Governmental Fund: Road & Bridge Fund Once again, the Road and Bridge Fund does not meet the two quantitative criteria in one of four categories for inclusion as a major fund. GASB Statement #34, paragraph 76 provides a qualitative criterion for inclusion, specifically a fund can be included as a major fund if “…the government’s official believe [the fund] is particularly important to financial statement users (for example, because of public interest or consistency).” Management has elected to include this fund as a major fund under this criterion for consistency, as it meets both 5% criteria for revenues and expenditures and in future years could meet either category’s 10% criteria. Table 6 % IncreaseFY19FY18Difference(Decrease) Property taxes 823,805$ 620,586$ 203,219$ 32.7% Replacement tax 19,266 16,628 2,638 15.9% Fuel Use tax 1,404,722 1,451,468 (46,746) -3.2% Vehicle License 425,193 394,458 30,735 7.8% Miscellaneous 192,333 309,661 (117,328) -37.9% Total revenue 2,865,319$ 2,792,801$ 72,518$ 2.6% Road & Bridge Fund Revenues and Other Financing Sources Road & Bridge revenues for replacement tax, locally collected fuel use tax and vehicle licenses (stickers) were fairly consistent between FY18 and FY19 as those rates did not change during that period. The Road & Bridge property tax levy receipts went up $203,219 as the 2017 Tax Year (TY17) was increased by $165,431 and the TY18 levy was increased $17,500, both to account for increased actuarial contributions to retiree healthcare (OPEB) and for capital. Miscellaneous revenue contained county reimbursements, $115,751 in FY18 and $32,473 in FY19, for a multi-year resurfacing project on 131st Street, which consisted mainly of engineering. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 16 Table 7 Road & Bridge Fund Expenditures % Increase FY19 FY18 Difference (Decrease) Highways and Streets 1,901,344 1,578,153$ 323,191$ 20.5% Drainage and Storm Sewers 12,504 120,237 (107,733) -89.6% Foresty Maintenance 125,779 71,507 54,272 75.9% Debt service 176,376 183,876 (7,500) -4.1% Total expenditures 2,216,003$ 1,953,773$ 262,230$ 13.4% As for expenditures in the Road & Bridge Fund, there are three separate departments: Streets, Drainage, and Forestry. Within the Streets Department, the delay of delivery of a dump truck ordered in FY18, but delivered in FY19 meant that FY19 saw the purchase of two (2) dump trucks, at a total cost of $233,546, to begin replacing five (5) dump trucks and a utility truck in the Road & Bridge fund over what had originally been scheduled to be a six (6) year process. The Streets Department saw an OPEB contribution beginning in FY18 at $34,569, which increased to $96,200 in FY19. Within the Drainage Department, which includes storm sewers and ditches, FY18 saw large projects replacing storm sewer at 119th Street ($104,476), but FY19 saw no such large projects. Within the Forestry Department, FY19 saw the purchase of a new Flair mower tractor attachment ($45,000), a continuation of the pruning program, and the continuation of removal of stumps and replacement of trees due to the elimination of Village Ash trees due to the Ash Borer infestation from prior years. Additional information about the Road & Bridge fund infrastructure projects can be found in the Letter of Transmittal under the Major Initiatives > B. Infrastructure Replacement and Improvement section. The Village Road and Bridge Fund in the Comprehensive Annual Financial Report is shown in comparison to the original and final budget. The revenues were conservatively budgeted and actual was $52,208 or 1.7% lower. The expenditures were $518,137, or 18.3%, lower than the final budget. Business-type Activities The Enterprise Funds include Water/Sewer Fund and Senior Citizen Complex Funds. Business- type activities posted total operating revenues of $19,174,690, while the cost and net transfers in of all business-type activities totaled $14,152,627. For the fiscal year ended April 30, 2019, operating revenues for the business-type activities totaled $19,174,690, an increase of $1,415,669, or 8.0%, mainly due to a write off of a $1,530,434 liability that had been on the books for many years without documented proof of the liability (see Village Resolution No. 2019-02-R-1). VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 17 The audited statements of the business-type funds include depreciation, as well as transfers to/from other funds, and non-operating costs such as loss on disposal of property, building, and equipment, bond issuance costs, the amortization of any bond premium and/or discount, and interest income. Without these transfers and expenses, the water and sewer and senior citizen complex funds had operating income of $6,377,705. However, with depreciation of $1,568,169 and non-operating expenses and transfers in of negative $212,527, the increase in net position totaled $5,022,063. In FY18 and FY19 the senior housing complexes saw the usual upgrades to the kitchens and baths of apartments after residents moved out before they were rented again, as well as annual capital maintenance such as sealcoating the parking lots. Water rate increases and Water & Sewer fund projects can be found in the Letter of Transmittal under the Major Initiatives > B. Infrastructure Replacement and Improvement section. Waterworks Senior and Citizen % Increase Sewerage Complex FY19 FY18 Difference (Decrease) Operating revenues Charges for services 12,699,905$ -$ 12,699,905$ 12,441,660$ 258,245$ 2.1% Rental income - 4,724,217 4,724,217 4,634,440 89,777 1.9% Other income 1,681,289 69,279 1,750,568 682,921 1,067,647 156.3% Total operating revenues 14,381,194 4,793,496 19,174,690 17,759,021 1,415,669 8.0% Operating expenses Water department 9,778,077 - 9,778,077 9,734,141 43,936 0.5% Sewer department 267,557 - 267,557 365,251 (97,694) -26.7% Senior citizen complex - 2,751,351 2,751,351 2,709,190 42,161 1.6% Depreciation and amortization 791,215 776,954 1,568,169 1,552,549 15,620 1.0% Total operating expenses 10,836,849 3,528,305 14,365,154 14,361,131 4,023 0.0% Nonoperating expenses and transfers (in) out Amortization bond costs (34,527) (9,556) (44,083) 387,347 (431,430) -111.4% Net interest expense 166,444 99,262 265,706 327,085 (61,379) -18.8% Loss on disposal - - - - - 0.0% Transfers in (434,150) - (434,150) (418,811) (15,339) 3.7% Transfers out - - - 1,175,581 (1,175,581) -100.0% Total nonoperating expenses and transfers (in) out (302,233) 89,706 (212,527) 1,471,202 (1,683,729) -114.4% Total expenses and transfers (in) out 10,534,616 3,618,011 14,152,627 15,832,333 (1,679,706) -10.6% Change in net position 3,846,578$ 1,175,485$ 5,022,063$ 1,926,688$ 3,095,375$ 160.7% Table 8 Enterprise Funds For fiscal year ended April 30, 2019 Totals VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 18 Capital Assets The Village’s Capital Assets are summarized in Table 9. FY19 FY18 FY19 FY18 FY19 FY18 Non-depreciable assets: Land 1,160,500$ 1,160,500$ 1,886,953$ 1,886,953$ 3,047,453$ 3,047,453$ Construction-in-progress - - - 1,401,836 - 1,401,836 Capital assets being depreciated: Buildings and improvements 10,570,112 11,380,612 34,539,414 34,539,414 45,109,526 45,920,026 Vehicles, machinery, and equipment 8,884,715 8,425,318 3,707,751 3,612,110 12,592,466 12,037,428 Infrastructure 42,338,759 42,338,759 24,801,267 22,642,297 67,140,026 64,981,056 Less accumulated depreciation (47,952,090) (47,122,546) (34,988,347) (33,420,178) (82,940,437) (80,542,724) Capital assets 15,001,996$ 16,182,643$ 29,947,038$ 30,662,432$ 44,949,034$ 46,845,075$ Total Business-type ActivitiesGovernmental Activities Table 9 VILLAGE OF ALSIP'S CAPITAL ASSETS The Village’s governmental capital assets and business-type capital assets decreased $351,103 and $2,254,611, respectively, for a net increase of $1,903,508 before depreciation during FY19. Additional detail regarding capital assets may be seen in the notes to the financial statements- Note 4C. Capital assets. Long-term debt At the end of the fiscal year, the Village had total bonded debt outstanding of $12.2 million. $232,239 of the 2018 tax year (TY18) property tax levy was for debt payments. The other funding for outstanding debt is from revenues from the following funds: the senior citizen housing complexes (housing rents), Water and Sewer (water rates and sewer rates), and Road & Bridge (fuel taxes and vehicle fees) and to the extent that these payments are from G.O. bonds the bonds are abated to reflect these other funding sources. As a home rule government, under Illinois law, the Village does not have a legal debt limit, except that any debt issue may not exceed a 40-year payment period. Additional information involving long-term debt can be found in the notes to the financial statements-Note 4E. Long-term debt. VILLAGE OF ALSIP, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS April 30, 2019 19 Table 10 summarizes the Village’s debt structure. 2019 2018 2019 2018 2019 2018 General obligation bonds 3.6$ 3.9$ 8.6$ 9.4$ 12.2$ 13.3$ Total Primary Government Outstanding General Obligation Debt (In Millions) Table 10 Governmental Activities Business-Type Activities Discussion of Currently Known Facts, Decisions, or Conditions of Future Significance On July 29, 2019 the Village Board replaced its red light camera vendor. The prior red light camera vendor removed their cameras in August 2019. As of the date of this audit, a contract with the replacement vendor has not been signed. It is anticipated that replacing new cameras will take one to two years. In FY19 the Village General Fund received $753,552 from red light cameras. Additional facts, decisions, or conditions that are both currently known as of the date of the independent auditors’ report, including efforts in recent years to fund operations, encourage economic development, replace infrastructure, reduce general obligation or retiree benefit debt, or contain healthcare costs can be found within the Letter of Transmittal in the Introductory Section of this Comprehensive Annual Financial Report. For FY19 and FY20 through the date of the independent auditor’s report, there are no additional facts, decisions, or conditions which are expected to have significant effect on financial position or results of operations not contained in that letter. Requests for Information This financial report is designed to provide a general overview of the Village's finances, comply with finance-related laws and regulations and demonstrate the Village's commitment to public accountability. If you have questions about this report or would like to request additional information, access the Village website at www.villageofalsip.org or contact: Kenneth “Kent” Oliven, CPA Finance Director & Treasurer Village of Alsip 4500 West 123rd Street Alsip, Illinois 60803 KOliven@VillageOfAlsip.org Basic Financial Statements Governmental Businesstype Activities Activities Total ASSETS Cash 615,463 - 615,463 Temporary cash investments 18,605,105 13,140,043 31,745,148 Cash held for insurance and related expenditures 9,077,659 9,077,659 Receivables (net of allowance for uncollectibles) 9,816,333 1,566,713 11,383,046 Internal balances (426,611) 426,612 1 Deposits 199,184 199,184 Prepaid expenses 255,459 - 255,459 Restricted assets: Temporary cash investments 122,739 2,375,206 2,497,945 Capital assets (net of accumulated depreciation): Buildings 3,394,930 10,210,389 13,605,319 Improvements 631,211 4,418,537 5,049,748 System infrastructure 7,622,345 12,760,094 20,382,439 Machinery and equipment 787,068 592,583 1,379,651 9ehicles 1,405,943 78,482 1,484,425 Capital assets not being depreciated: Land 1,160,500 1,886,953 3,047,453 Total capital assets (net of accumulated depreciation)15,001,997 29,947,038 44,949,035 Total assets 53,068,144 47,654,796 100,722,940 DEFERRED OUTFLO:S OF RESOURCES Deferred outflows - pension related 10,259,825 418,684 10,678,509 Deferred outflows - OPEB related 1,838,032 85,187 1,923,219 Total deferred outflows of resources 12,097,857 503,871 12,601,728 Total assets and deferred outflows of resources 65,166,001 48,158,667 113,324,668 LIABILITIES Accounts payable and other current liabilities 2,140,225 879,085 3,019,310 Accrued interest payable 25,233 65,107 90,340 Deposits 411,009 411,009 Payable from restricted accounts: Customer deposits 33,331 33,331 Noncurrent liabilities: Due within one year 537,394 1,638,352 2,175,746 Due in more than one year 122,394,003 13,464,297 135,858,300 Total liabilities 125,096,855 16,491,181 141,588,036 DEFERRED INFLO:S OF RESOURCES Deferred inflows - pension related 1,539,392 182,120 1,721,512 Total deferred inflows of resources 1,539,392 182,120 1,721,512 Total liabilities and deferred inflows of resources 126,636,247 16,673,301 143,309,548 NET POSITION Net investment in capital assets 10,907,838 17,716,403 28,624,241 Restricted for: Debt service 400,971 400,971 Police department programs 122,739 122,739 Tax Increment Financing allocation for proMect areas 2,236,139 2,236,139 Street maintenance and improvement programs 3,762,700 3,762,700 Fire department programs 23,686 23,686 8nrestricted (78,924,319) 13,768,963 (65,155,356) TOTAL NET POSITION (61,470,246) 31,485,366 (29,984,880) VILLAGE OF ALSIP, ILLINOIS STATE0ENT OF NET POSITION April 30, 2019 The accompanying notes are an integral part of the financial statements. 20 VILLAGE OF ALSIP, ILLINOISSTATE0ENT OF ACTIVITIESFor the Year Ended April 30, 2019Charges for Operating Grants Governmental BusinesstypeE[pensesServicesActivitiesActivitiesTotalFUNCTIONSPROGRA0SPrimary government:Governmental activities:General government 3,032,325 1,479,346 - (1,552,979) - (1,552,979) Public safety 23,345,417 2,805,254 - (20,540,163) - (20,540,163) +ighway and streets 2,500,713 569,155 1,894,061 (37,497) - (37,497) Building 503,373 180,107 - (323,266) - (323,266) +ealth and environmental control 1,106,690 833,052 - (273,638) - (273,638) Drainage and storm sewers12,504 - - (12,504) - (12,504) Forestry maintenance 80,779 - - (80,779) - (80,779) Interest on long-term debt97,877 - - (97,877) - (97,877) Total governmental activities30,679,678 5,866,914 1,894,061 (22,918,703) - (22,918,703) Business-type activities:Water 10,531,098 12,134,444 - - 1,603,346 1,603,346 Sewer 519,977 660,000 - - 140,023 140,023 Senior Citizen Complex3,627,567 4,724,217 - - 1,096,650 1,096,650 Total business-type activities14,678,642 17,518,661 - - 2,840,019 2,840,019 TOTAL PRI0ARY GOVERN0ENT45,358,320 23,385,575 1,894,061 (22,918,703) 2,840,019 (20,078,684) General revenues:Property taxes12,655,355 - 12,655,355 Sales taxes6,590,111 - 6,590,111 State income taxes2,590,248 - 2,590,248 Replacement taxes367,795 - 367,795 Real estate transfer taxes425,711 - 425,711 Other taxes909,486 - 909,486 Insurance proceeds27,383 - 27,383 8nrestricted interestinvestment earnings274,796 47,783 322,579 Other231,211 1,700,112 1,931,323 Transfers(434,150) 434,150 - Total general revenues and transfers23,637,946 2,182,045 25,819,991 C+ANGE IN NET POSITION719,243 5,022,064 5,741,307 NET POSITION BEGINNING(62,189,489) 26,463,302 (35,726,187) NET POSITION ENDING(61,470,246) 31,485,366 (29,984,880) The accompanying notes are an integral part of the financial statements.Program Revenues Net E[pense Revenue and Changes in Net Positionand Contributions21 VILLAGE OF ALSIP, ILLINOISBALANCE S+EET GOVERN0ENTAL FUNDSApril 30, 2019Other TotalRoad and Governmental GovernmentalGeneralBridgeFundsFundsASSETSCash615,463 - - 615,463 Temporary cash investments12,086,188 3,224,417 3,294,500 18,605,105 Cash held for insurance and related expenditures 9,077,659 - - 9,077,659 Receivables (net of allowance for uncollectibles)9,002,046 397,844 416,443 9,816,333 Due from other funds2,064 - - 2,064 Prepaids255,459 - - 255,459 Restricted assets:Temporary cash investments122,739 - - 122,739 TOTAL ASSETS31,161,618 3,622,261 3,710,943 38,494,822 LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCESLIABILITIESAccounts payable and other current liabilities 2,002,655 116,435 21,135 2,140,225 Due to other funds426,612 - 2,064 428,676 Total liabilities2,429,267 116,435 23,199 2,568,901 DEFERRED INFLO:S OF RESOURCES8navailable revenue - property taxes5,896,401 396,299 373,775 6,666,475 FUND BALANCESNonspendable255,459 - - 255,459 Restricted for:Police department programs122,739 - - 122,739 Tax Increment Financing allocation for proMect areas - - 2,236,139 2,236,139 Street maintenance and improvement programs - 3,109,527 653,173 3,762,700 Fire department programs - - 23,686 23,686 Debt service- - 400,971 400,971 Total restricted fund balance122,739 3,109,527 3,313,969 6,546,235 Assigned for insurance premiums, claims, and related expenditures9,077,659 - - 9,077,659 8nassigned13,380,093 - - 13,380,093 Total fund balances22,835,950 3,109,527 3,313,969 29,259,446 TOTAL LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCES31,161,618 3,622,261 3,710,943 Amounts reported for governmental activities in the Statement of Net Position are different because:Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 15,001,997 Receivables are not available to pay for current period expenditures and, therefore, are deferred in the funds. 6,666,476 Accrued Interest Payable are not due and payable in the curent period and therefore, are not reported in the funds.(25,233) Charges on bond refundings are not financial resources and, therefore, are not reported in the funds.- Deferred outflows and inflows related to pension are not financial resources and, therefore, are not reported in the funds. 10,558,465 Long-term liabilities, including bonds payable, and OPEB are not due and payable in the current period and, therefore, are not reported in the funds.(122,931,397) (61,470,246) The accompanying notes are an integral part of the financial statements.22 VILLAGE OF ALSIP, ILLINOISSTATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCESGOVERN0ENTAL FUNDSFor the Year Ended April 30, 2019Other TotalsRoad and Governmental GovernmentalGeneralBridgeFundsFundsREVENUESTaxes 23,393,204 2,247,793 993,351 26,634,348 Fines 1,102,493 - - 1,102,493 Licenses and permits 557,699 425,193 - 982,892 Grants 518,623 - - 518,623 Charges for services 833,052 - - 833,052 Investment income 247,213 - 27,583 274,796 Miscellaneous2,438,144 192,333 - 2,630,477 Total revenues29,090,428 2,865,319 1,020,934 32,976,681 E;PENDITURESCurrent: General government 2,018,950 - - 2,018,950 Public safety16,768,330 - 75,383 16,843,713 +ighways and streets - 1,901,344 382,579 2,283,923 Building259,252 - - 259,252 +ealth and environmental control 1,195,205 - - 1,195,205 Insurance 3,554,597 - - 3,554,597 Drainage and storm sewers - 12,504 - 12,504 Forestry maintenance - 125,779 - 125,779 Miscellaneous 14,879 - 634,528 649,407 Debt service: Principal retirement 71,515 149,309 379,940 600,764 Interest and fiscal charges1,400 27,067 83,724 112,191 Total expenditures23,884,128 2,216,003 1,556,154 27,656,285 Excess (deficiency) of revenues over expenditures5,206,300 649,316 (535,220) 5,320,396 OT+ER FINANCING SOURCES USESTransfer in 534,648 - - 534,648 Transfer out - - (968,798) (968,798) Sale of 9illage property- 26,037 - 26,037 Total other financing sources (uses)534,648 26,037 (968,798) (408,113) Net change in funds balances 5,740,948 675,353 (1,504,018) 4,912,283 FUND BALANCES, BEGINNING OF YEAR17,095,002 2,434,174 4,817,987 24,347,163 FUND BALANCES, END OF YEAR22,835,950 3,109,527 3,313,969 29,259,446 The accompanying notes are an integral part of the financial statements.23 VILLAGE OF ALSIP, ILLINOIS RECONCILIATION OF T+E STATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCES OF GOVERN0ENTAL FUNDS TO T+E STATE0ENT OF ACTIVITIES For the Year Ended April 30, 2019 Amounts reported for governmental activities in the Statement of Activities (page 22) are different because: Net change in fund balances - total governmental funds (page 22)4,912,283 Governmental funds report capital outlays as expenditures. +owever, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays, 776,290 were exceeded by depreciation, 1,146,436, in the current period. (370,147) The effect of miscellaneous transactions involving capital assets (i.e. sales and trade-ins) is to decrease net position by the undepreciated balance of the capital assets. 26,037 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. This amount represents the current year effect of these timing differences.(1,201,581) The issuance of long-term debt (e.g. bonds, loans) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. This amount is the net effect of these differences in the treatment of long-term and related items. 613,458 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.(3,260,808) C+ANGE IN NET POSITION OF GOVERN0ENTAL ACTIVITIES PAGE 20719,242 The accompanying notes are an integral part of the financial statements. 24 9ariance9ariance2riginal Final Positive 2riginal Final PositiveBudgetBudgetActualNegativeBudgetBudgetActualNegativeRE9EN8ESTaxes 18,017,007 18,017,007 23,260,254 5,243,247 2,267,106 2,267,106 2,246,248 (20,858) Fines 1,091,500 1,091,500 1,102,493 10,993 Licenses and permits 461,750 461,750 557,699 95,949 404,000 404,000 425,193 21,193 *rants 528,239 528,239 518,623 (9,616) Charges for services 823,808 823,808 570,726 (253,082) Investment income 179,000 179,000 247,213 68,213 0iscellaneous 1,914,300 1,914,300 2,438,144 523,844 244,876 244,876 192,333 (52,543) Total revenues 23,015,604 23,015,604 28,695,152 5,679,548 2,915,982 2,915,982 2,863,774 (52,208) E;PENDIT8RESCurrent *eneral government 1,993,215 1,993,215 2,111,297 (118,082) Public safety16,640,616 17,139,216 17,142,033 (2,817) +ighway and streets 2,264,213 2,268,713 1,997,555 271,158 Building 299,928 299,928 261,157 38,771 +ealth and environmental control 1,194,532 1,194,532 1,254,197 (59,665) Drainage and storm sewers 202,200 217,687 12,504 205,183 Forestry maintenance 167,575 167,575 125,779 41,796 Insurance 4,429,716 4,429,716 3,732,170 697,546 Capital proMects 0iscellaneous 23,420 23,420 15,716 7,704 Debt service Principal retirement81,061 81,061 71,515 9,546 149,309 149,309 149,309 Interest and fiscal charges 8,094 8,094 1,400 6,694 27,067 27,067 27,067 Total expenditures 24,670,582 25,169,182 24,589,485 579,697 2,810,364 2,830,351 2,312,214 518,137 2T+ER FINANCING S28RCES 8SESTransfers in 534,648 534,648 534,648 220,713 220,713 (220,713) Transfers out Proceeds from bond issuance, net of escrow Proceeds from sale of assets 26,037 26,037 Total other financingsources (uses) 534,648 534,648 534,648 220,713 220,713 26,037 (194,676) NET C+ANGE IN F8ND BA/ANCE(1,120,330) (1,618,930) 4,640,315 6,259,245 326,331 306,344 577,597 271,253 F8ND BA/ANCE BEGINNING 2F <EAR17,095,002 2,434,174 REC2NCI/ING ITEMS F2R DIFFERENCES IN B8DGETAR< AND ACCR8A/ BASIS NET1,100,633 97,756 F8ND BA/ANCE END 2F <EAR22,835,950 3,109,527 The accompanying notes are an integral part of the financial statements.For the <ear Ended April B8DGET AND ACT8A/ - GENERA/ AND R2AD AND BRIDGE F8NDS B8DGETAR< BASISSTATEMENT 2F RE9EN8ES E;PENDIT8RES AND C+ANGES IN F8ND BA/ANCES - 9I//AGE 2F A/SIP I//IN2ISGeneral Road and Bridge25 VILLAGE OF ALSIP, ILLINOIS STATE0ENT OF NET POSITION PROPRIETARY FUNDS April 30, 2019 Businesstype Activities Enterprise Funds :aterZorNs Senior and Citi]en SeZerage Comple[Totals ASSETS Current assets: Temporary cash investments 7,023,996 6,116,047 13,140,043 Receivables (net of allowance for uncollectibles) 1,566,713 - 1,566,713 Due from other funds 426,612 - 426,612 Total current assets 9,017,321 6,116,047 15,133,368 Noncurrent assets: Restricted temporary cash investments 62,683 2,312,523 2,375,206 Deposits - 199,184 199,184 Capital assets: Land - 1,886,953 1,886,953 Buildings 9,778,685 14,698,198 24,476,883 Building improvements 10,066 8,803,069 8,813,135 Improvements other than building - 1,249,396 1,249,396 System infrastructure 24,801,267 - 24,801,267 Machinery and equipment 2,477,467 962,609 3,440,076 9ehicles 267,675 - 267,675 Construction in progress - - - Less accumulated depreciation (18,677,969) (16,310,378) (34,988,347) Total capital assets, net of accumulated depreciation 18,657,191 11,289,847 29,947,038 Total noncurrent assets 18,719,874 13,801,554 32,521,428 DEFERRED OUTFLO:S OF RESOURCES Related to pension liability 503,871 - 503,871 Total deferred outflows of resources 503,871 - 503,871 TOTAL ASSETS AND DEFERRED OUTFLO:S OF RESOURCES 28,241,066 19,917,601 48,158,667 The accompanying notes are an integral part of the financial statements. 26 April 30, 2019 Businesstype Activities Enterprise Funds :aterZorNs Senior and Citi]en SeZerage Comple[Totals LIABILITIES Current liabilities: Accounts payable and other current liabilities 798,602 80,483 879,085 Accrued interest payable 36,173 28,934 65,107 Security deposits - 411,009 411,009 Customer deposits payable - restricted assets 33,331 - 33,331 Current portion of notes payable 878,792 - 878,792 Current portion of general obligation bonds 428,000 331,560 759,560 Total current liabilities 2,174,898 851,986 3,026,884 Noncurrent liabilities: Post employment benefit obligation 2,227,074 - 2,227,074 IMRF net pension liability 644,940 - 644,940 Notes payable 2,120,541 - 2,120,541 Long-term portion of general obligation bonds (net of unamortized discount, premium)4,647,856 3,823,886 8,471,742 Total noncurrent liabilities 9,640,411 3,823,886 13,464,297 Total liabilities 11,815,309 4,675,872 16,491,181 DEFERRED INFLO:S OF RESOURCES Related to pension liability 182,120 - 182,120 NET POSITION Net investment in capital assets 10,582,002 7,134,401 17,716,403 8nrestricted 5,661,635 8,107,328 13,768,963 Total net position 16,243,637 15,241,729 31,485,366 TOTAL LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND NET POSITION 28,241,066 19,917,601 48,158,667 The accompanying notes are an integral part of the financial statements. VILLAGE OF ALSIP, ILLINOIS STATE0ENT OF NET POSITION PROPRIETARY FUNDS Continued 27 VILLAGE OF ALSIP, ILLINOIS STATE0ENT OF REVENUES, E;PENSES, AND C+ANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended April 30, 2019 Businesstype Activities Enterprise Funds :aterZorNs Senior and Citi]en SeZerage Comple[Totals OPERATING REVENUES Charges for sales and services: Water and sewer sales 12,699,905 - 12,699,905 Rental income - 4,724,217 4,724,217 Other sales and services 1,681,289 69,279 1,750,568 Total operating revenues 14,381,194 4,793,496 19,174,690 OPERATING E;PENSES Cost of sales and services 10,045,634 2,751,351 12,796,985 Depreciation 791,215 776,954 1,568,169 Total operating expenses 10,836,849 3,528,305 14,365,154 Operating income 3,544,345 1,265,191 4,809,536 NONOPERATING REVENUES E;PENSES Amortization of bond premium 34,527 9,556 44,083 Note and bond interest and fiscal charges (214,226) (99,262) (313,488) Investment earnings 47,782 - 47,782 Total non-operating expenses (131,917) (89,706) (221,623) Income before transfers 3,412,428 1,175,485 4,587,913 Transfer in 434,150 - 434,150 Transfer out - - - Total transfers 434,150 - 434,150 Change in net position 3,846,578 1,175,485 5,022,063 NET POSITION, BEGINNING OF YEAR 12,397,059 14,066,243 26,463,302 NET POSITION, END OF YEAR 16,243,637 15,241,728 31,485,365 The accompanying notes are an integral part of the financial statements. 28 VILLAGE OF ALSIP, ILLINOIS STATE0ENT OF CAS+ FLO:S PROPRIETARY FUNDS For the Year Ended April 30, 2019 :aterZorNs Senior and Citi]en SeZerage Comple[Totals CAS+ FLO:S FRO0 OPERATING ACTIVITIES Receipts from customers and users 14,730,097 4,809,265 19,539,362 Payments to suppliers (11,529,038) (2,136,286) (13,665,324) Payments to employees (630,275) (627,273) (1,257,548) Net cash provided (used) by operating activities 2,570,784 2,045,706 4,616,490 CAS+ FLO:S FRO0 NONCAPITAL FINANCING ACTIVITIES Transfers in 434,150 - 434,150 Net cash used by non-capital financing activities 434,150 - 434,150 CAS+ FLO:S FRO0 CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of property, building, and equipment (852,775) - (852,775) Principal payments on bonds payable (413,500) (331,559) (745,059) Proceeds from issuance of notes payable 162,170 - 162,170 Principal payments on notes payable (159,714) - (159,714) Interest paid on notes and bonds (215,949) (100,673) (316,622) Net cash provided by capital and related financing activities (1,479,768) (432,232) (1,912,000) CAS+ FLO:S FRO0 INVESTING ACTIVITIES Earnings on investments 47,782 - 47,782 NET INCREASE IN CAS+ AND TE0PORARY CAS+ INVEST0ENTS 1,572,948 1,613,474 3,186,422 CAS+ AND TE0PORARY CAS+ INVEST0ENTS, BEGINNING OF YEAR 5,513,731 6,815,096 12,328,827 CAS+ AND TE0PORARY CAS+ INVEST0ENTS, END OF YEAR 7,086,679 8,428,570 15,515,249 Businesstype Activities Enterprise Funds (This statement is continued on the following page.) 29 VILLAGE OF ALSIP, ILLINOIS STATE0ENT OF CAS+ FLO:S PROPRIETARY FUNDS Continued For the Year Ended April 30, 2019 :aterZorNs Senior and Citi]en SeZerage Comple[Totals RECONCILIATION OF OPERATING INCO0E TO NET CAS+ PROVIDED BY OPERATING ACTIVITIES: Operating income 3,544,345 1,265,191 4,809,536 AdMustments to reconcile operating income to net cash provided by operating activities: Depreciation 791,215 776,954 1,568,169 Effects of changes in operating assets and liabilities: Receivables - account customers (70,448) - (70,448) Receivables - unbilled charges (9,818) - (9,818) Receivables - other 429,169 - 429,169 Due from other funds (67,358) - (67,358) Prepaid insuranceexpense - 2,481 2,481 8tility overpayment 1,589 - 1,589 Deposits - (2,147) (2,147) Accounts payable (375,112) (14,692) (389,804) Other accrued expenses (1,512,197) - (1,512,197) Security deposits - 17,919 17,919 Postemployment benefit obligation (82,623) - (82,623) Deferred outflow - IMRF (238,294) - (238,294) Deferred inflow - IMRF (468,891) - (468,891) IMRF net pension liability 630,897 - 630,897 Restricted liabilities (1,690) - (1,690) NET CAS+ PROVIDED BY OPERATING ACTIVITIES 2,570,784 2,045,706 4,616,490 Businesstype Activities Enterprise Funds The accompanying notes are an integral part of the financial statements. 30 VILLAGE OF ALSIP, ILLINOIS STATE0ENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS April 30, 2019 Pension Trust Fund Totals ASSETS Cash and cash equivalents 3,954,712 Receivables: Contributions 17,446 Accrued interest 111,755 Investments, at fair value: 8.S. Government securities 12,285,306 Corporate and other bonds 7,453,071 Mutual funds 28,356,295 Total assets 52,178,585 LIABILITIES Accrued liabilities 13,282 NET POSITION Net position restricted for pensions 52,165,303 The accompanying notes are an integral part of the financial statements. 31 VILLAGE OF ALSIP, ILLINOIS STATE0ENT OF C+ANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Year Ended April 30, 2019 Pension Trust Fund Totals ADDITIONS Contributions: Employer 6,290,864 Employee 663,819 Total contributions 6,954,683 Investment earnings: Net depreciation in fair value of investments 1,844,195 Dividends 378,245 Interest 572,431 Miscellaneous income 87 Total investment earnings 2,794,958 Less investment expense 240,178 Net investment loss 2,554,780 Total additions 9,509,463 DEDUCTIONS Retirement benefits 4,101,016 Duty disability benefits 813,217 Surviving spouse benefits 501,556 Miscellaneous 51,403 Total deductions 5,467,192 NET INCREASE 4,042,271 NET POSITION RESTRICTED FOR PENSIONS, BEGINNING OF YEAR 48,123,032 NET POSITION RESTRICTED FOR PENSIONS, END OF YEAR 52,165,303 The accompanying notes are an integral part of the financial statements. 32 VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 33 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Alsip (the “Village”) was incorporated in 1927 and operates under a Mayor- Trustee form of government. The Village provides the following services as authorized by its Charter: public safety (police and fire), highways and streets, sanitation, health and social services, culture recreation, education, public improvements, planning and zoning, and general administrative services. The Village has an April 30 fiscal year-end. The following is a summary of the more significant policies: A.Principles used to determine the scope of the reporting entity The Village has adopted the provisions of GASB Statement No. 14, The Financial Reporting Entity, and GASB Statement No. 61, The Financial Reporting Entity; Omnibus. Under these pronouncements, the definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations,if its officials appoint a voting majority of an organization’s governing body and,either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. The Village’s reporting entity includes the Village’s governing board. There are no related organizations for which the Village is financially accountable. B.Government-wide and fund financial statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. 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 or segment 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 or segment,and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 34 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B.Government-wide and fund financial statements (continued) Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major enterprise funds are reported as separate columns in the fund financial statements. C.Measurement focus, basis of accounting, and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are budgeted. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period. For this purpose, the Village considers revenues to be available if they are collected within 120 days of the end of the current fiscal period. The policy for recognizing property tax collections as revenues of the current fiscal year is 60 days. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Village. Property taxes are recognized as a receivable and deferred inflows of resources at the time they are levied and the current taxes receivable represent the 2018 levy. The Village reports the following major governmental funds: The General Fund is the Village’s primary operating fund. It accounts for all financial resources of the Village, except those required to be accounted for in another fund. The Road and Bridge Fund accounts for the Village’s share of fuel use tax, vehicle license,and road and bridge property tax revenue that are utilized for the maintenance of the Village’s roads and bridges, drainage and storm sewers,and forests. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 35 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C.Measurement focus, basis of accounting, and financial statement presentation (continued) The Village reports the following major proprietary funds: The Waterworks and Sewerage Fund accounts for the activities of the Village’s water distribution system, sewage pumping stations and collection systems and sewage treatment plant. The Senior Citizen Complex Fund accounts for the activities of the Village’s two senior citizen living facilities. Additionally, the Village reports the following fund type: The Pension Trust Funds account for the activities of the Police Pension and Firemen’s Pension plans, which accumulate resources for pension benefit payments to qualified employees. The financial statements of the Village are prepared in accordance with accounting principles generally accepted in the United States of America.The Government Accounting Standards Board (GASB)is responsible for establishing accounting principles generally accepted in the United States of America for state and local governments. Accounting principles generally accepted in the United States of America includes all relevant GASB pronouncements plus other sources of accounting and financial reporting guidance noted in GASB Statement No. 76, The Hierarchy of GAAP for State and Local Governments. As a general rule, the effect of interfund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the Village’s water and sewer function and various other functions of the Village. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 36 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C.Measurement focus, basis of accounting, and financial statement presentation (continued) Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the waterworks and sewerage enterprise fund are charges to customers for sales and services. The principal operating revenues of the Senior Citizen Complex Enterprise Fund are charges to customers for rental of living facilities. The Waterworks and Sewerage Enterprise Fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for the enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Village’s policy to use restricted resources first, then unrestricted resources as they are needed. D.Assets, liabilities,deferred outflows of resources, deferred inflows of resources, and net position 1.Deposits and investments The Village’s cash and cash equivalents are considered to be cash on hand and demand deposits. The Village’s temporary cash investments are saving and money market accounts and certificates of deposit. State statutes authorize the Village and the pension trusts to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements, mutual funds, stocks,and the State Treasurer’s Investment Pool. Investments for the Village, as well as for its pension trusts, are reported at fair value, which are based on quoted market prices. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 37 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D.Assets, liabilities,deferred outflows of resources, deferred inflows of resources, and net position (continued) 2.Receivables and payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non- current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”. All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts receivables in excess of 180 days comprise the trade accounts receivable allowance for uncollectibles. The property tax receivable allowance is equal to 3% of the original levy amount, with the exception of the property tax receivable applicable to the bond and interest levies which is equal to 5%. Property taxes are levied as of January 1 on property values assessed as of the same date. The tax levy is divided into two billings: the first billing (due March 1) is an estimate of the current year’s levy based on the prior year’s taxes: the second billing (due August 1) reflects adjustments to the current year’s actual levy. The billings are considered past due 60 days after the respective tax billing date, at which time the applicable property is subject to lien, and penalties and interest are assessed. 3.Inventories and prepaid items Inventories of governmental funds are recorded as expenditures when purchased rather than when consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are recorded as expenditures when consumed rather than when purchased. 4.Restricted assets Certain assets of the Village are classified as restricted assets because their use is restricted for insurance requirements, waterworks and sewerage consumer deposits and federal and state seizure requirements. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 38 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D.Assets, liabilities,deferred outflows of resources, deferred inflows of resources, and net position (continued) 5.Capital assets Capital assets, which include property, plant,and equipment,are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $10,000 with an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’lives are not capitalized. Infrastructure assets are long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples include roads, bridges, drainage systems, water and sewer systems and lighting systems. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business- type activities is included as part of the capitalized value of the assets constructed. Property, plant,and equipment of the Village are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings 30 -40 Improvements 10 -40 System infrastructure 20 Vehicles 8 Machinery and equipment 5 -15 Furniture and fixtures 10 -15 6.Compensated absences It is the Village’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated vacation time since the Village does not have a policy to pay any amounts when employees separate from service with the Village. Sick pay is accrued based on the Village employee’s area of employment, an employee’s years of service, the number of days accumulated, and a set maximum percentage of the total time accumulated. A liability is recognized in the government-wide and proprietary fund’s financial statements for that portion of accumulated sick pay benefits that it is estimated will be taken as “terminal leave” prior to retirement. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 39 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D.Assets, liabilities,deferred outflows of resources, deferred inflows of resources, and net position (continued) 7.Long-term obligations In the government-wide financial statements and proprietary fund types 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 type Statement of Net Position. Bond premium and discounts are deferred and amortized over the life of the bonds using the straight-line method. Losses on extinguishment of debt are deferred and amortized over the shorter of the life of the new or old bonds using the straight-line method. Using the straight-line method is not materially different than the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred. In the fund financial statements, governmental fund types 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 in debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8.Deferred Outflows of Resources The Village reports decreases in net position or fund equity that relate to future periods as deferred outflows of resources in a separate section of its government-wide and proprietary funds statement of net position or governmental fund balance sheet. The Village has two types of deferred outflows of resources which occur related to charges on bond refunding and to its pension plans. 9.Deferred Inflows of Resources The Village reports increases in net position or fund equity that applies to a future periods as deferred inflows of resources in a separate section of its government-wide and proprietary funds statement of net position or governmental fund balance sheet. The Village will not recognize the related revenue until a future event occurs. The Village has two types of items which occur. One type occurs within the governmental funds related to revenue recognition, which occurs because property tax receivables are recorded in the current year, but the revenue is considered unavailable in the current year due to the timing of the receipt of the property tax revenue.The other type occurs within the government-wide and propriety funds statements which relate to its pension plans. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 40 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D.Assets, liabilities,deferred outflows of resources, deferred inflows of resources, and net position (continued) 10.Fund balances Fund balance is divided into five classifications based primarily on the extent to which the Village is bound to observe constraints imposed upon the use of the resources in the governmental funds. It is the Village’s policy to consider restricted resources to have been spent first when an expenditure is incurred for which both restricted and unrestricted fund balances are available, followed by committed and then assigned resources. Unassigned amounts are used only after the other categories of fund balance have been fully utilized. Within the governmental fund types, the Village’s fund balances are reported in one of the following classifications: Nonspendable -includes amounts that cannot be spent because they are either: a)not in spendable form; or b) legally or contractually required to be maintained intact. Restricted -includes amounts that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation. Committed -includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the Village’s board of trustees. Committed amounts cannot be used for any other purpose unless the Village removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The Village does not have any committed fund balances. Assigned -includes amounts that are constrained by the Village’s intent to be used for specific purposes, but that are neither restricted nor committed. Intent is expressed by: a) the Village board of trustees itself; or b) a body or official to which the Village board of trustees has delegated the authority to assign amounts to be used for specific purposes. The finance director may assign resources and amounts of fund balance to a specific purpose. These assignments will follow Village policy. Unassigned -includes the residual fund balance that has not been restricted, committed, or assigned with the General Fund and deficit balances of other governmental funds. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 41 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D.Assets, liabilities,deferred outflows of resources, deferred inflows of resources, and net position (continued) 10.Fund balances (continued) Net Position:Beginning with fiscal year 2013, the Village implemented GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.The objective of this statement is to provide financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Net position represents the difference between assets, deferred outflows, liabilities, and deferred inflows. Net position invested in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net positions are reported as restricted when there are limitations imposed on their use through enabling legislation or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Use of Estimates: The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. E.Governmental Accounting Standards In November 2016, the GASB issued Statement 83, Certain Asset Retirement Obligations. This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs) and establishes criteria for determining the timing and pattern of recognition of a liability and a corresponding deferred outflow of resources for AROs. This Statement is effective for the Village’s fiscal year ended April 30, 2019, with no material impact on the Village. In April 2018, the GASB issued Statement 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. The primary objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. This Statement defines debt for purposes of disclosure in notes to financial statements as a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation is established. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses. This Statement is effective for the Village’s fiscal year ended April 30, 2019, with no material impact on the Village. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 42 NOTE 2 -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A.Explanation of certain differences between the governmental fund Balance Sheet and the government-wide Statement of Net Position The Governmental Fund Balance Sheet includes reconciliation between fund balance - total governmental funds and net position -governmental activities as reported in the government-wide Statement of Net Position. One element of that reconciliation explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore,are not reported in the funds.” The details of this difference are as follows: Bonds and notes payable $4,329,645 Less net issuance (discount) premium (to be amortized over life of debt)159,949 Compensated absences 380,199 Net pension obligation 67,660,521 Postretirement benefit obligation 50,401,083 Net adjustment to reduce fund balance -total governmental funds to arrive at net position -governmental activities $122,931,397 B.Explanation of certain differences between the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities The governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances includes reconciliation between net changes in fund balances -total governmental funds and changes in net position of governmental activities as reported in the government-wide Statement of Activities. One element of that reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the Statement of Activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The detail of this difference is as follows: Capital outlay $776,290 Depreciation expense (1,146,436) Net adjustment to decrease net changes in fund balances -total governmental funds to arrive at changes in net position of governmental activities $(370,146) VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 43 NOTE 2 -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (continued) B.Explanation of certain differences between the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities (continued) Another element of that reconciliation states that “the issuance of long-term debt (e.g., bonds, loans) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.” The details of this difference are as follows: Principal repayments: Note payable debt $220,824 General obligation debt 379,940 Amortization of bond premiums _____12,694 Net adjustment to increase net changes in fund balances -total governmental funds to arrive at changes in net position of governmental activities $613,458 Another element of that reconciliation states that “some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.” The details of this difference are as follows: Net pension liability and deferred outflows and deferred inflows $(1,034,152) Postretirement benefit obligation (2,071,250) Accrued interest 1,584 Other liabilities (156,990) Net adjustment to decrease net changes in fund balances -total governmental funds to arrive at changes in net position of governmental activities $(3,260,808) VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 44 NOTE 3 -STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Budgetary information The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1.The Village Mayor and Finance Director propose an operating budget based upon requests submitted by individual departments for the following fiscal year. The operating budget includes proposed expenditures and the means of financing them. 2.Budget hearings are conducted within the Finance Committee of the Village Board. 3.Expenditure budgets for the General Fund, special revenue funds (Road & Bridge, Motor Fuel Tax, and TIFs), and the Debt Service Fund are legally adopted on the cash basis through passage of an appropriation ordinance. 4.The level of budgetary control is at the fund level. The Village Mayor is authorized to transfer budgeted amounts within a fund (i.e. intrafund transfers) during the fiscal year. The Village Board, through passage of a supplemental appropriation ordinance, amends the appropriation ordinance to increase expenditures or expenses within a fund or to make transfers across funds (interfund transfers). Appropriations lapse at year- end. NOTE 4 -DETAILED NOTES ON ALL FUNDS A.Deposits and investments Deposits Custodial Credit Risk. Custodial credit risk is the risk that in the event of a bank or other financial institution failure, the government’s deposits may not be returned to it. The Village does not have a deposit policy for custodial credit risk. As of April 30, 2019, none of the Village’s bank balance of $20,391,084 was exposed to custodial credit risk. Deposits in the Illinois Funds. The State Treasurer maintains the Illinois Funds Money Market Fund (Pool). Its primary purpose is to provide custodians of public funds with an alternative investment vehicle which enables them to earn a competitive rate on return or fully collateralized investments, while maintaining immediate access to those funds. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 45 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) A.Deposits and investments (continued) Deposits (continued) The monies invested by the individual participants are pooled together and invested in U.S. Treasury bills and notes backed by full faith and credit of the U.S. Treasury. In addition, monies are invested in fully collateralized time deposits in Illinois financial institutions, in collateralized repurchase agreements, and in treasury mutual funds that invest in U.S. Treasury obligations and collateralized repurchase agreements. The Pool maintains a Standard and Poor’s AAAm rating. The time deposits are collateralized 110% over the FDIC $250,000 insurance limit with U.S. Treasury obligations and marked to market on a weekly basis to maintain sufficiency. The repurchase agreements are collateralized at 102% with U.S. Treasury obligations and the collateral is checked daily to determine sufficiency. Deposits in the Illinois Funds, valued at amortized cost, totaled $23,623,709 for the Village at April 30, 2019. All funds deposited in the Pool are classified as investments even though some could be withdrawn on a day’s notice. Although not subject to direct regulatory oversight, the fund is administered in accordance with the provisions of the Illinois Public Funds Investment Act, 30 ILCS 235. Investments As of April 30, 2019,the Police and Firemen’s Pension trust funds held investments, which are comprised of the following: Investment Type Fair Value Cash and cash equivalents $3,954,712 U.S. Government securities 12,285,305 Corporate bonds 7,453,072 Mutual funds 28,356,295 Total $52,049,384 Interest Rate Risk. The pension funds have adopted investment policies to limit exposure to fair value losses arising from increasing interest rates. The Firemen’s Pension fund has adopted a policy whereby investing in securities that would give the fixed-income portfolio a duration within 0.25 of the Lehman Intermediate Government Bond index. The Police Pension fund developed a strategy which maintains the average maturity of fixed-income securities at approximately five years, ranging from two to seven years. This strategy also increases the duration when interest rates are rising and decreases the duration when interest rates are declining. 9I//AGE 2F A/SIP I//IN2IS N2TES T2 BASIC FINANCIA/ STATEMENTS April 46 N2TE - DETAI/ED N2TES 2N A// F8NDS (continued) A Deposits and investments (continued) Investments (continued) The Village¶s Firemen¶s Pension and Police Pension funds had the following investments as of April 30, 2019 Fair 9alue --! U.S. *overnment Securities 12,285,305 4,351,178 2,435,782 4,673,294 825,051 Corporate and other bonds 7,453,072 351,194 5,690,812 1,000,497 410,570 Cash and cash eTuivalents (CDs ) 3,099,213 301,565 649,885 1,857,588 290,175 0utual funds 28,356,295 NA NA NA NA Common stocNs NA NA NA NA Cash and cash eTuivalents (money marNet ) 855,499 NA NA NA NA Total investments 52,049,384 5,003,937 8,776,479 7,531,379 1,525,796 Negotiable certificates of deposit. Valued at amorti]ed cost, which approximates fair value. Investment Maturit\ <ears Credit Risk. State law limits the type of investments pension funds may choose. The Firemen¶s Pension fund has adopted a policy which restricts the amount that may be invested in any one debt issuer to 20, excluding U.S. Treasury securities and issues of FN0A, F+L0C, F+LB, and *N0A. The Police Pension fund has set allocation guidelines by asset class in order to diversify its investment holding and limit credit risN. As of April 30, 2019, the Village¶s Firemen¶s Pension and Police Pension funds were rated as follows Standard Poor s Rating Fair 9alue AAA 203,192 AA 6,091,240 AA 1,241,845 AA 1,328,413 A 417,576 A 1,262,252 A 1,675,296 BBB 826,995 Not Rated 6,691,568 VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 47 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) A.Deposits and investments (continued) Investments (continued) Custodial Credit Risk and Concentration of Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the pension funds will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All of the pension fund investments are insured, registered, or held by the pension fund or its agent in the pension fund’s name.The pension funds do limit the amount of funds that may be invested in any one issuer, except as noted previously above. The Firemen’s Pension had investments greater than 5% of the fund’s total investments in FNMA, 9.60%,and U.S. Treasury Notes, 16.50%. The Police Pension Fund had one investment greater than 5% of the fund’s total investments in Federal Home Loan Bank, 6.71%. Fair Value. The Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant and observable inputs; Level 3 inputs are significant unobservable inputs. The Village has the following recurring fair value measurements as of April 30, 2019: Mutual funds of $28,356,294 are quoted prices in active markets for identical assets (Level 1),and U.S. Government securities of $12,285,305, corporate and other bonds of $7,453,071 and certificates of deposit of $3,099,213 are significant and observable inputs (Level 2 inputs). The investments values are measured using trading platform fees, quoted matrix pricing models, and multi-dimensional relational models. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 48 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) B.Receivables Receivables as of year-end for the Village’s individual major funds, non-major,and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Non-major Waterworks and Road and and Fiduciary General Bridge Sewerage Funds Total Receivables: Interest $ - $ - $ - $ 63,947 $ 63,947 Taxes 8,394,908 419,369 - 493,311 9,307,588 Accounts 1,202,243 - 1,566,712 - 2,768,955 Gross receivables 9,597,151 419,369 1,566,712 557,258 12,140,490 Less allowance for uncollectibles (595,105) (21,525) - (11,612) (628,242) Net total receivables $ 9,002,046 $ 397,844 $ 1,566,712 $ 545,646 $ 11,512,248 Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of deferred inflows of resources in the governmental funds were as follows: Property taxes receivable (general fund)$5,896,401 Property taxes receivable (road and bridge fund)396,299 Property taxes receivable (special tax allocation fund)255,468 Property taxes receivable (debt service fund)118,307 Total deferred inflows of resources for major funds $6,666,475 VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 49 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) C.Capital assets Capital asset activity for the year ended April 30, 2019 was as follows: Beginning Ending Balance Balance Government activities: Capital assets, not being depreciated: Land $ 1,160,500 $ - $ - $ 1,160,500 Capital assets being depreciated: Buildings 9,375,371 - - 9,375,371 Improvements 1,194,742 - - 1,194,742 System infrastructure 42,338,759 - - 42,338,759 Machinery and equipment 3,144,420 143,239 - 3,287,659 Vehicles 5,280,898 633,051 (316,893) 5,597,056 Total capital assets being depreciated 61,334,190 776,290 (316,893) 61,793,587 Less accumulated depreciation for: Buildings (5,765,334) (215,106) - (5,980,440) Improvements (556,120) (7,411) - (563,531) System infrastructure (34,277,447) (438,968) - (34,716,415) Machinery and equipment (2,295,592) (204,999) 316,893 (2,183,698) Vehicles (4,228,053) (279,953) - (4,508,006) Total accumulated depreciation (47,122,546) (1,146,437) 316,893 (47,952,090) Total capital assets being depreciated, net 14,211,644 (370,147) - 13,841,497 Government activities capital assets, net $ 15,372,144 $ (370,147) $ - $ 15,001,997 Increases Decreases VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 50 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) C.Capital assets (continued) Beginning Ending Balance Balance Business-type activities: Capital assets, not being depreciated: Land $ 1,886,953 $ - $ - $ 1,886,953 Construction in progress 1,401,836 - (1,401,836) - Total capital assets, not being depreciated 3,288,789 - (1,401,836) 1,886,953 Capital assets being depreciated: Buildings 24,476,883 - - 24,476,883 Improvements 10,062,531 - - 10,062,531 System infrastructure 22,642,297 2,158,970 - 24,801,267 Machinery and equipment 3,422,053 18,023 - 3,440,076 Vehicles 190,057 77,618 - 267,675 Total capital assets being depreciated 60,793,821 2,254,611 - 63,048,432 Less accumulated depreciation for: Buildings (13,653,525) (612,969) - (14,266,494) Improvements (5,273,338) (370,655) - (5,643,993) System infrastructure (11,538,057) (503,116) - (12,041,173) Machinery and equipment (2,774,110) (73,383) - (2,847,493) Vehicles (181,148) (8,045) - (189,193) Total accumulated depreciation (33,420,178) (1,568,168) - (34,988,346) Total capital assets being depreciated, net 27,373,643 686,443 - 28,060,086 Business-type activities capital assets, net $ 30,662,432 $ 686,443 $ (1,401,836) $ 29,947,039 Increases Decreases Depreciation expense was charged to functions/programs of the Village as follows: Government activities: General government $446,378 Public safety 279,953 Highways and streets 204,999 Building 215,106 Total $1,146,436 VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 51 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) D.Interfund receivables, payables, and transfers Interfund balances are the result of reimbursements due for expenditures paid on behalf of one fund for another fund and for corrections of allocations and deposits. The composition of interfund balances as of April 30, 2019, is as follows: Receivables Payables General Fund: Debt Service Fund 2,064$ -$ Water and Sewer Fund - 426,612 Total 2,064 426,612 Debt Service Fund General Fund - 2,064 Water and Sewer Fund: General Fund 426,612 - Total 428,676$ 428,676$ The composition of interfund transfers as of April 30, 2019, is as follows: Road Senior and Debt Waterworks Citizen General Bridge Service and Sewerage Complex Transfer out:Fund Fund Fund Fund Fund Total General Fund -$ -$ -$ -$ -$ -$ Special Tax Allocation Fund - - - 434,150 - 434,150 Motor Fuel Tax Fund - - - - - - Debt Service Fund 534,648 - - - - 534,648 Waterworks and Sewerage Fund - - - - - - Senior Citizen Complex Fund - - - - - - Total 534,648$ -$ -$ 434,150$ -$ 968,798$ Transfer In The purpose of the interfund transfers during the year was to provide assistance to funds for operating purposes in accordance with budgetary authorizations. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 52 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) E.Long-term debt General obligation bonds The Village issues general obligation bonds to provide for the acquisition, construction,and rehabilitation of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. These bonds generally are issued as 15 to 20-year serial bonds with various amounts of principal maturing each year. General obligation bonds currently outstanding are as follows: Purpose Interest Rates Amount Governmental activities -refunding 2.00 -4.00%$3,606,826 Business-type activities 2.00 -6.50%8,683,174 Total general obligation bonds $12,290,000 Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending April 30, Principal Interest Total 2020 $ 1,155,000 $ 433,800 $ 1,588,800 2021 1,020,000 408,325 1,428,325 2022 870,000 380,150 1,250,150 2023 915,000 349,050 1,264,050 2024 945,000 316,350 1,261,350 2025-2027 3,115,000 975,100 4,090,100 2028-2032 3,690,000 470,200 4,160,200 2033-2037 580,000 23,200 603,200 Total $ 12,290,000 $ 3,356,175 $ 15,646,175 Notes payable The Village has entered into loan arrangements for the financing of the purchase of vehicles and radio equipment. Notes payable that are currently outstanding are as follows: Purpose Interest Rates Amount Governmental activities 2.39 -4.72%$722,819 Business-type activities 1.25%2,999,262 Total notes payable $3,722,081 VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 53 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) E.Long-term debt (continued) Annual debt service requirements for the notes payable are as follows: Year Ending April 30, Principal Interest Total 2020 $ 1,147,540 $ 48,908 $ 1,196,448 2021 220,091 43,576 263,667 2022 224,374 39,294 263,668 2023 228,759 34,908 263,667 2024 233,250 30,417 263,667 2025-2027 727,805 63,197 791,002 2028-2032 802,332 36,783 839,115 2033-2037 143,116 1,270 144,386 Total $ 3,727,267 $ 298,353 $ 4,025,620 Changes in long-term liabilities Long-term liabilities activity for the year ended April 30, 2019,was as follows: Beginning Ending Due Within Balance Balance One Year Government activities: Bonds payable: General obligation bonds $ 3,986,766 $ - $ (379,940) $ 3,606,826 $ 390,440 Net deferred amounts: For discounts and premiums 172,643 - (12,694) 159,949 - Total bonds payable 4,159,409 - (392,634) 3,766,775 390,440 Notes payable* 949,179 - (226,360) 722,819 108,934 Compensated absences* 211,775 336,848 (168,424) 380,199 38,020 Other long-term liabilities - - - - - Net pension liability* 65,860,944 2,153,764 (354,187) 67,660,521 - Post retirement benefit obligation* 46,491,801 3,909,282 - 50,401,083 - Governmental activities long-term liabilities $117,673,108 $ 6,399,894 $ (1,141,605) $ 122,931,397 $ 537,394 Increases Decreases *These liabilities are primarily retired by the General Fund. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 54 NOTE 4 -DETAILED NOTES ON ALL FUNDS (continued) E.Long-term debt (continued) Changes in long-term liabilities (continued) Beginning Ending Due Within Balance Balance One Year Business-type activities: Bonds payable: General obligation bonds $ 9,428,234 $ - $ (745,059) $ 8,683,175 $ 759,560 Net deferred amounts: For discounts and premiums 592,281 - (44,085) 548,196 - Total bonds payable 10,020,515 - (789,144) 9,231,371 759,560 Notes payable 2,996,807 162,170 (159,714) 2,999,263 878,792 Net pension liability (71,144) 716,084 - 644,940 - Post retirement benefit obligation 2,309,697 - (82,622) 2,227,075 - Business-type activities long-term liabilities $ 15,255,875 $ 878,254 $ (1,031,480) $ 15,102,649 $ 1,638,352 Increases Decreases NOTE 5 -OTHER INFORMATION A.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. In February 1986, the Village joined together with other municipal units in the state to form the Illinois Public Risk Fund (IPRF), a public entity risk pool currently operating as a common provider for the defense and payment of members’ workers’ compensation claims for approximately 465 member municipal units. The Village pays an annual premium to IPRF for its workers’ compensation insurance coverage. Village costs are proportional, based on contributions developed by a payroll audit of all members. The Village has adopted a risk management program to provide group health insurance to its employees. Payments are made monthly and deposited into a savings account to be used to pay claims. The program has a stop-loss clause in effect which limits the Village’s liability to $70,000 per individual. After $70,000, the underwriter reimburses the Village for paid claims. At April 30, 2019, the Village owes $68,418 for medical claims; this liability is accrued in the General Fund. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 55 NOTE 5 -OTHER INFORMATION (continued) A.Risk management (continued) Changes in the fund’s claims liability account for the years ended April 30, 2019 and 2018 were: ___2019___ ___2018___ Beginning of fiscal year liability $265,486 $100,666 Current year claims and changes in estimates 2,160,089 2,723,723 Claims payments (2,357,158)(2,558,903) Total $68,418 $265,486 B.Contingent liabilities Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. Subsequent to April 30, 2019, the Village had committed to or approved approximately $3,180,600 of contracts related to water/sewer projects; and infrastructure improvements and maintenance. C.Tax Abatements Pulaski Road Corridor TIF In 2016,the Village Board created a Pulaski Road Corridor TIF Façade and Small Business Grant Program to standardize the application process and to help promote not only new developments, but to help existing property owning businesses improve their businesses using TIF eligible expenses. Interest in the program was strong and businesses started working with the TIF district’s consulting firm to help make redevelopment agreement (RDA) applications to the Village Board. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 56 NOTE 5 -OTHER INFORMATION (continued) C.Tax Abatements (continued) The Village can enter into property tax abatement agreements with businesses in order to spur economic development. The Village currently has one agreement which expired in FY19, described below: The developer of a retail store within a TIF district will receive the following reimbursements of TIF eligible expenses: (a) $100,000, which was paid at completion of the project, and (b) a subsequent payment. The subsequent payment ends after the sooner of $200,000 of net incremental property taxes from that property is abated or the end of the TIF district. For the fiscal year ended April 30, 2019 the Village made $19,743 in payments under the agreement. Subsequent to the fiscal year ended April 30, 2018 the Village made the final $127,746 in payments, ending all obligations under the agreement. Other Agreements The Village can enter into sales tax agreements either with developers in order to foster further development or with local businesses in order to draw and retain businesses that generate sales taxes within the Village. The Village has one such agreement, which expires in FY20, described below: The developer of a home improvement store and outlet will receive a 50% sales tax abatement resulting from sales generated by businesses within that development to reimburse for certain development costs. Payments were to conclude at the sooner of the repayment of the reimbursable principal, plus interest, 50% of all sales tax receipts or known about and received by September 4, 2019 The payment during the fiscal year ended April 30, 2019 totaled $236,109.70. Subsequent to the fiscal year that ended April 30, 2019, the Village made the final $120,810.16 in payments, ending all obligations under the agreement. D.Intergovernmental Agreements In 2007,Village of Alsip (VOA) entered into two separate intergovernmental agreements between Village of Crestwood and Palos for the Village of Alsip to build water infrastructure and supply water to Crestwood and Palos Heights. To cover the costs associated with the project,Village of Alsip financed the cost of the projects through general obligation debt. The Village of Crestwood and Palos have agreed to pay an additional fees to cover their portion of the debt and the operational costs till the termination of the bonds related to the financing of the debt. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 57 NOTE 6 -DEFINED BENEFIT PENSION PLANS Illinois Municipal Retirement Fund Plan Description The Village’s defined benefit pension plan for regular employees provides retirement and disability benefits, postretirement increases, and death benefits to plan members and beneficiaries. The Village’s plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multi- employer plan. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information (RSI). That report may be obtained on-line at www.imrf.org. Funding Policy As set by statute, the Village’s regular plan members are required to contribute 4.50%of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance retirement coverage of its own employees. The employer annual required contribution rate for calendar year 2018 was 11.20%.The Village also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Benefits Provided IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date). All three IMRF benefit plans have two tiers. Employees hired before January 1, 2011, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 58 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Illinois Municipal Retirement Fund (continued) Benefits Provided (continued) Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: 3% of the original pension amount, or 1/2 of the increase in the Consumer Price Index of the original pension amount Employees Covered by Benefit Terms As of December 31,2018,the following employees were covered by the benefit terms: Retirees and Beneficiaries currently receiving benefits 69 Inactive Plan Members entitled to but not yet receiving benefits 40 Active Plan Members 53 Total 162 Contributions As set by statute,the Village’s Regular Plan Members are required to contribute 4.5% of their annual covered salary.The statute requires employers to contribute the amount necessary,in addition to member contributions,to finance the retirement coverage of its own employees.The Village’s annual contribution rate for fiscal year 2018 was 11.24%.For the fiscal year 2018,the Village contributed $344,230 to the plan.The Village also contributes for disability benefits, death benefits,and supplemental retirement benefits,all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by IMRF’s Board of Trustees,while the supplemental retirement benefits rate is set by statute. Net Pension Liability The Village’s net pension liability was measured as of December 31, 2018. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 59 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Illinois Municipal Retirement Fund (continued) Actuarial Assumptions The following are the methods and assumptions used to determine total pension liability at December 31, 2018: The Actuarial Cost Method used was Entry Age Normal. The Asset Valuation Method used was Market Value of Assets. The Inflation Rate was assumed to be 2.50%. Salary Increases were expected to be 3.39% to 14.25%, including inflation. The Investment Rate of Return was assumed to be 7.25%. Projected Retirement Age was from the Experience-based Table of Rates,specific to the type of eligibility condition,last updated for the 2017 valuation according to an experience study from years 2014 to 2016. The IMRF-specific rates for Mortality (for non-disabled retirees) with fully generational projection scale MP-2017 (base year 2015). For Disabled Retirees,an IMRF-specific mortality table was used with fully generational projection scale MP-2017 (base year 2015).The IMRF-specific rates were developed from the RP-2014 Disabled Retirees Mortality Table, applying the same adjustments that were applied for non-disabled lives. For Active Members,an IMRF-specific mortality table was used with fully generational projection scale MP-2017 (base year 2015).The IMRF-specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-Term Portfolio Expected Target Real Rate Asset Class Percentage of Return Domestic Equity 38.0%6.85% International Equity 17.0%6.75% Fixed Income 27.0%3.00% Real Estate 8.0%5.75% Alternative Investments 9.0%2.65-7.35% Cash Equivalents 1.0%2.25% Total 100% VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 60 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Illinois Municipal Retirement Fund (continued) Single Discount Rate A Single Discount Rate of 7.50% was used to measure the total pension liability.The projection of cash flow used to determine this Single Discount Rate assumed that the plan members’contributions will be made at the current contribution rate,and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The Single Discount Rate reflects: 1.The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits),and 2.The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve)as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of the most recent valuation,the expected rate of return on plan investments is 7.25%,the municipal bond rate is 3.71%,and the resulting single discount rate is 7.50%. Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability (A)Net Position (B)Liability (A) - (B) Balance at April 30, 2018 18,342,997$ 18,527,354$ (184,357)$ Changes for the year: Service Cost 298,594 - 298,594 Interest 1,350,147 - 1,350,147 Actuarial Experience (44,804) - (44,804) Assumptions Changes 521,012 - 521,012 Contributions - Employer - 344,230 (344,230) Contributions - Employees - 152,794 (152,794) Other Income - (1,071,695) 1,071,695 Net Investment Income - - - Benefit Payments, including refunds (980,672) (980,672) - Administrative Expenses - (170,228) 170,228 Net Changes 1,144,277 (1,725,571) 2,869,848 Balance at April 30, 2019 19,487,274$ 16,801,783$ 2,685,491$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 61 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Illinois Municipal Retirement Fund (continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the plan’s net pension liability (asset),calculated using a Single Discount Rate of 7.25%,as well as what the plan’s net pension liability (asset)would be if it were calculated using a Single Discount Rate that is 1%lower or 1%higher: 1%Current 1% Decrease Discount Increase Discount Rate 6.25%7.25%8.25% Net Pension Liability 5,049,176$ 2,685,491$ 741,614$ Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended April 30, 2019,the Village recognized pension expense of $168,502. At April 30, 2019, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience 99,884$ 479,329$ Changes of Assumptions 391,348 322,985 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 1,182,746 - Total deferred amounts to be recognized in pension expense in future periods 1,673,978 802,314 Pension Contributions made Subsequent to the Measurement Date 82,266 - Total 1,756,244$ 802,314$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 62 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Illinois Municipal Retirement Fund (continued) Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions (continued) $82,266 reported as deferred outflows of resources related to pensions resulting from the Village’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense in the future periods as follows: Year Ending April 30,Amount 2020 191,527$ 2021 41,352 2022 151,439 2023 487,346 2024 - Thereafter - Total 871,664$ Police Pension Police sworn personnel are covered by the Police Pension Plan, which is a defined benefit single employer pension plan. The plan does not issue a stand alone financial report; it is included as a Pension Trust Fund in the Annual Financial Report. Although this is a single employer pension plan, the defined benefits, as well as the employee and employer contribution levels, are mandated by the Illinois Compiled Statutes and may be amended only by the Illinois legislature. The Village accounts for the plan as a Pension Trust Fund. Plan members’ contributions are recognized in the period in which the contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. The Board for the Police Pension Plan consists of five voting Trustees, two of whom are appointed by the Village President, two of whom are members of the system who are elected by a majority of the Police Officers who are active members of the system and one whom is elected by the retirees of the Police Pension Fund. Each Trustee serves a two-year term. Each person employed by the Village Police Department as a full-time Police Officer becomes a member of the Plan as a condition of his or her employment. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 63 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Police Pension (continued) As of April 30, 2019,the Police Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not receiving them.42 Current employees, vested and nonvested.40 Total 82 The plan provides retirement benefits, as well as death and disability benefits. Employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of 2.5%of final salary for each year of service 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 of 2.5%of final salary for each year of service. Surviving spouses receive 100%of final salary for fatalities resulting from an act of duty, or otherwise the greater of 50%of final salary or the employee’s retirement benefit. Employees disabled in the line of duty receive 65%of final salary. The monthly pension of a covered employee who retired with 20 or more years of service after January 1, 1977, shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3%of the originally granted pension. Beginning with increases granted on or after July 1, 1993, the second and subsequent automatic annual increases shall be calculated as 3%of the amount of the pension payable at the time of increase. Covered employees are required to contribute 9.91%of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village’s annual contribution to the plan is provided by a property tax levy. These tax levies are required to be of an amount necessary to finance the plan as actuarially determined by an enrolled actuary. For employees hired after January 1, 2011, the normal retirement age is attainment of age 55 and completion of 10 years of service.Early retirement age is attainment of age 50, completion of 10 years of service and the early retirement factor is 6%per year; the employee’s accrued benefit is based on the employee’s final 8-year average salary not to exceed $106,800 (as indexed). Cost- of-living adjustments are simple increases (not compounded) of the lesser of 3%or 50%of CPI beginning the later of the anniversary date and age 60; surviving spouse’s benefits are 66 2/3%of the employees benefit at the time of death. Administrative costs are financed with revenues of the Police Pension Fund. Under Public Act 96-1495, the annual requirements of the pension fund are to be determined as a level percent of payroll sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities by the year 2040. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 64 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Police Pension (continued) Net Pension Liability The components of the net pension liability of the Police Pension Fund as of April 30, 2019 are as follows: Total Pension Liability 65,044,938$ Plan Fiduciary Net Position 23,496,695 Net Pension Liability 41,548,243$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 36.12% Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of May 1, 2018 using the following actuarial assumptions applied to all measurement periods: Valuation Date 5/1/2018 Inflation 2.50% Projected Salary Increases 4.00% - 32.48% Investment Rate of Return 6.50% Mortality Rate L&A 2016 Illinois Police Mortality Rates The Police Pension Board (Board) is responsible for administering the investment policies of the Plans and providing oversight for the management of the Plans’ assets. The investment strategy of each Plan is to emphasize total return (defined as the aggregate return from capital appreciation and dividend and interest income). The investment policy for each plan requires that all Plan assets be invested in liquid securities, defined as securities that can be transacted quickly and efficiently for the Plan, with minimal impact on market price.The Village Board passed a funding plan, subsequent to year end, which changed the investment rate of return on assets from 7.0% to 6.5% resulting from moving from gross to net of administration fees. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 65 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Police Pension (continued) Actuarial Assumptions (continued) These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rate of return for each major asset class included in the pension plans’ target asset allocations as of April 30, 2019 are summarized in the following table: Long-Term Target Expected Real Asset Class Allocation Rate of Return Fixed Income, Government and Corporate 40.00%0.70% - 1.70% Domestic Equities 49.50%5.80% - 6.80% International Equities 5.50%8.00% Cash 5.00%0.50% 100.00%3.62% - 4.51% Discount Rate The discount rate used to measure the total pension liability was 6.50% for the Police Pension Plan. The projection of cash flow used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the pension plans calculated using the discount rates listed above, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower, or 1-percentage-point higher than the current rate: 1%Current 1% Decrease Discount Increase Discount Rate 5.5%6.5%7.5% Net Pension Liability 51,035,921$ 41,548,243$ 33,857,624$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 66 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Police Pension (continued) Money-Weighted Rate of Return on Investments For the year ended April 30, 2019, the annual money-weighted rate of return on pension plan investments, net of plan investments expenses was 6.5%. The money-weighted rate of return expresses investment performance, net of expenses, adjusted for the changing amounts actually invested. Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability (A)Net Position (B)Liability (A) - (B) Balance at April 30, 2018 63,166,419$ 21,025,976$ 42,140,443$ Changes for the year: Service Cost 861,606 - 861,606 Interest 4,003,122 - 4,003,122 Actuarial Experience 173,658 - 173,658 Assumptions Changes - - - Contributions - Employer - 3,950,636 (3,950,636) Contributions - Employees - 352,823 (352,823) Contributions - Other - - - Net Investment Income - 1,338,130 (1,338,130) Benefit Payments, including refunds (3,159,867) (3,159,867) - Administrative Expenses - (11,003) 11,003 Net Changes 1,878,519 2,470,719 (592,200) Balance at April 30, 2019 65,044,938$ 23,496,695$ 41,548,243$ Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions For the year ended April 30, 2019, the Village will recognize a pension expense of $4,424,734. On April 30, 2019, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience 1,348,720$ 231,013$ Changes of Assumptions 4,090,159 176,314 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 182,310 - Total 5,621,189$ 407,327$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 67 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Police Pension (continued) Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions (continued) The net amount reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Year Ending April 30:Amount 2020 1,305,326$ 2021 1,035,086 2022 1,112,089 2023 1,070,522 2024 624,733 Thereafter 66,106 Total 5,213,862$ Firemen’s Pension Fire sworn personnel are covered by the Firemen’s Pension Plan, which is a defined benefit single employer pension plan. The plan does not issue a stand alone financial report; it is included as a Pension Trust Fund in the Annual Financial Report. Although this is a single employer pension plan, the defined benefits, as well as the employee and employer contribution levels, are mandated by the Illinois Compiled Statutes and may be amended only by the Illinois legislature. The Village accounts for the plan as a Pension Trust Fund. Plan members’ contributions are recognized in the period in which the contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. The Board for the Firemen’s Pension Plan consists of five voting Trustees, two of whom are appointed by the Village President, two of whom are members of the system who are elected by a majority of the Firefighters who are active members of the system and one whom is elected by the retirees of the Firemen’s Pension Fund. Each Trustee serves a three-year term. Each person employed by the Village Fire Department as a full-time Firefighter becomes a member of the Plan as a condition of his or her employment. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 68 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Firemen’s Pension (continued) As of April 30, 2019, the Firefighter’s Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not receiving them.39 Current employees, vested and nonvested.35 Total 74 Under Public Act 96-1495, the annual requirements of the pension fund are to be determined as a level percent of payroll sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities by the year 2040. The plan provides retirement benefits, as well as death and disability benefits. Employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one-half the salary attached to the rank held on the last day of service. The pension shall be increased by 1/12 of 2.5%of such monthly salary for each additional month of service over 20 years up to 30 years, to a maximum of 75%of such monthly salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit ranging from 15%of final salary for 10 years of service to 45.6%for 19 years of service. Surviving spouses receive 100%of final salary for fatalities resulting from an act of duty, or otherwise the greater of 54%of final salary or the monthly retirement pension that the deceased fireman was receiving at the time of death. Surviving children receive 12%of final salary. The maximum family survivor benefit is 75%of final salary. Employees disabled in the line of duty receive 65%of final salary. The monthly pension of a covered employee who retired with 20 or more years of service after January 1, 1977, shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3%of the originally granted pension. Covered employees are required to contribute 9.455%of their base salary to the Firemen’s 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’s annual contribution to the plan is provided by a property tax levy. These tax levies are required to be of an amount necessary to finance the plan as actuarially determined by an enrolled actuary. For employees hired after January 1, 2011, the normal retirement age is attainment of age 55 and completion of 10 years of service; early retirement age is attainment of age 50, completion of 10 years of service and the early retirement factor is 6%per year; the employee’s accrued benefit is based on the employee’s final 8-year average salary not to exceed $106,800 (as indexed). Cost- of-living adjustments are simple increases (not compounded) of the lesser of 3%or 50%of CPI beginning the later of the anniversary date and age 60; surviving spouse’s benefits are 66 2/3%of the employees benefit at the time of death. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 69 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Firemen’s Pension (continued) Administrative costs are financed with revenues of the Firemen’s Pension Fund. Net Pension Liability The components of the net pension liability of the Firemen’s Pension Fund as of April 30, 2019 are as follows: Total Pension Liability 52,740,336$ Plan Fiduciary Net Position 28,668,608 Net Pension Liability 24,071,728$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 54.36% Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of May 1, 2018 using the following actuarial assumptions applied to all measurement periods: Valuation Date 5/1/2018 Inflation 2.50% Projected Salary Increases 4.00% - 32.48% Investment Rate of Return 6.50% Mortality Rate L&A 2016 Illinois Firefighters Morality Rates The Fireman Police Pension Board (Board) is responsible for administering the investment policies of the Plans and providing oversight for the management of the Plans’ assets. The investment strategy of each Plan is to emphasize total return (defined as the aggregate return from capital appreciation and dividend and interest income). The investment policy for each plan requires that all Plan assets be invested in liquid securities, defined as securities that can be transacted quickly and efficiently for the Plan, with minimal impact on market price.The Village Board passed a funding plan, subsequent to year end, which changed the investment rate of return on assets from 7.0% to 6.5% resulting from moving from gross to net of administration fees. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 70 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Firemen’s Pension (continued) These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rate of return for each major asset class included in the pension plans’ target asset allocations as of April 30, 2019 are summarized in the following table: Long-Term Target Expected Real Asset Class Allocation Rate of Return Fixed Income, Government and Corporate 40.00%0.70% - 1.70% Domestic Equities 38.50%5.80% - 6.80% International Equities 16.50%8.00% Cash 5.00%0.50% 100.00%3.68% - 4.64% Discount Rate The discount rate used to measure the total pension liability was 6.50% for the Firemen’s Pension Plan. The projection of cash flow used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the pension plans calculated using the discount rates listed above, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower, or 1-percentage-point higher than the current rate: 1%Current 1% Decrease Discount Increase Discount Rate 5.5%6.5%7.5% Net Pension Liability 31,384,675$ 24,071,728$ 17,655,731$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 71 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Firemen’s Pension (continued) Money-Weighted Rate of Return on Investments For the year ended April 30, 2019, the annual money-weighted rate of return on pension plan investments, net of plan investments expenses was 7.0%. The money-weighted rate of return expresses investment performance, net of expenses, adjusted for the changing amounts actually invested. Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability (A)Net Position (B)Liability (A) - (B) Balance at April 30, 2018 50,902,577$ 27,097,058$ 23,805,519$ Changes for the year: Service Cost 878,753 - 878,753 Interest 3,235,350 - 3,235,350 Actuarial Experience (20,423) - (20,423) Assumptions Changes - - - Contributions - Employer - 2,340,228 (2,340,228) Contributions - Employees - 310,996 (310,996) Other Income - - - Net Investment Income - 1,216,647 (1,216,647) Other Income - - - Benefit Payments, including refunds (2,255,921) (2,255,921) - Administrative Expenses - (40,399) 40,399 Net Changes 1,837,759 1,571,551 266,208 Balance at April 30, 2019 52,740,336$ 28,668,609$ 24,071,727$ Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions For the year ended April 30, 2019, the Village will recognize a pension expense of $2,901,710. On April 30, 2019, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience 82,496$ 323,512$ Changes of Assumptions 2,735,436 188,397 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 483,182 - Total 3,301,114$ 511,909$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 72 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Firemen’s Pension (continued) Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions (continued) The net amount reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Year Ending April 30,Amount 2020 831,048$ 2021 485,585 2022 571,220 2023 461,325 2024 441,872 Thereafter (1,845) Total 2,789,205$ The aggregate pension expense for the Village’s pensions during the year was $7,326,444. The next two pages of the report represent the Police and Firemen’s Pension Trust Fund Statements related to Note 6. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 73 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Firemen’s Pension (continued) Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions (continued) Pension Trust Police Firemen's Pension Pension ASSETS Cash and cash equivalents 3,436,105$ 518,607$ Receivables: Contributions - 17,446 Accrued interest 46,501 65,254 Investments, at fair value: U.S. Government securities 4,421,670 7,863,636 Corporate bonds and other 2,282,184 5,170,887 Mutual funds 13,323,517 15,032,778 Total assets 23,509,977 28,668,608 LIABILITIES Accrued liabilities 13,282 - Total liabilities 13,282 - NET POSITION Net position restricted for pensions 23,496,695$ 28,668,608$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 74 NOTE 6 -DEFINED BENEFIT PENSION PLANS (continued) Firemen’s Pension (continued) Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions (continued) Police Firemen's Pension Pension ADDITIONS Contributions: Employer 3,950,636$ 2,340,228$ Employee 352,823 310,996 Total contributions 4,303,459 2,651,224 Investment income: Net appreciation (depreciation) in fair value of investments 997,405 846,790 Dividends 216,679 161,566 Interest 250,395 322,036 Miscellaneous income - 87 Total investment income 1,464,479 1,330,479 Less investment expense 126,347 113,831 Net investment income 1,338,132 1,216,648 Total additions 5,641,591 3,867,872 DEDUCTIONS Retirement benefits 2,743,620 1,357,396 Duty disability benefits 171,281 641,936 Surviving spouse benefits 244,967 256,589 Miscellaneous 11,003 40,400 Total deductions 3,170,871 2,296,321 NET INCREASE 2,470,720 1,571,551 NET POSITION RESTRICTED FOR PENSION, BEGINNING OF YEAR 21,025,975 27,097,057 NET POSITION RESTRICTED FOR PENSION, END OF YEAR 23,496,695$ 28,668,608$ Pension Trust VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 75 NOTE 7 -OTHER POSTEMPLOYMENT BENEFITS Plan Description The Village sponsors a single-employer health care plan that provides medical and prescription drug coverage to all eligible retirees, their spouses, and their eligible dependents. The other postemployment benefit plan (OPEB) is considered part of the Village’s reporting entity and is presented as part of the governmental activities and business-type activities in the basic financial statements. A separate audit report is not prepared. As of May 1, 2017, the date of the latest actuarial valuation, the plan membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits, but not receiving them.83 Current employees, vested and nonvested.122 Total 205 In order to receive the OPEB benefit from the Village, full time employees must meet the applicable pension requirements of IMRF, Police, and Fire as well as have at least 20 years of service. Funding Policy The Village Board passed a funding policy on May 21, 2018, which has dedicated future revenues to the OPEB liability. However, the Village does not have an OPEB trust set up. Net OPEB Liability The components of the net OPEB liability as of April 30, 2019 are as follows: Total OPEB Liability 52,628,157$ Plan Fiduciary Net Position - Net OPEB Liability 52,628,157$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 0.00% VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 76 NOTE 7 -OTHER POSTEMPLOYMENT BENEFITS (continued) Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation as of May 1, 2017 using the following actuarial assumptions applied to all measurement periods: Valuation Date 5/1/2017 Measurement Date 4/30/2019 Actuarial Cost Method Early Age Normal (Level %) Inflation N/A Investment Rate of Return*3.79% Healthcare Cost Trend Rates 8.00% in Fiscal 2018, trending to 5.50% in Fiscal 2027, and an ultimate trend rate of 5.00%. *The rate is based on the 20-Bond Index consists of 20 general obligation bonds that mature in 20 years and having an average rating equivalent of Moody’s Aa2 and Standard & Poor’s AA. Mortality Rates IMRF Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study, with Blue Collar Adjustment. These Rates are Improved Generationally using MP-2016 Improvement Rates. Active Firefighter Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study, with Blue Collar Adjustment. These Rates are Improved Generationally using MP-2016 improvement Rates. Retiree Firefighter Mortality follows the L&A Assumption Study for Firefighters 2016. These Rates are Experience Weighted with the Raw Rates as Developed in the RP-2014 Study, with Blue Collar Adjustment and Improved Generationally using MP-2016 Improvement Rates. Active Police Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study, with Blue Collar Adjustment. These Rates are Improved Generationally using MP-2016 Improvement Rates. VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 77 NOTE 7 -OTHER POSTEMPLOYMENT BENEFITS (continued) Mortality Rates (continued) Retiree Police Mortality follows the L&A Assumption Study for Police 2016. These Rates are Experience Weighted with the Raw Rates as Developed in the RP-2014 Study, with Blue Collar Adjustment and Improved Generationally using MP-2016 Improvement Rates. Disabled Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study for Disabled Participants, with Blue Collar Adjustment. These Rates are Improved Generationally using MP-2016 Improvement Rates. Spouse Mortality follows the Sex Distinct Raw Rates as developed in the RP-2014 Study. These rates are improved generationally using MP-2016 Improvement Rates. Discount Rate The discount rate used to measure the total OPEB liability was 3.79%. The projection of cash flow used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability calculated using the discount rates listed above, as well as what the Plan’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower, or 1-percentage-point higher than the current rate: 1%Current 1% Decrease Discount Increase Discount Rate 2.79%3.79%4.79% Net OPEB Liability 62,795,575$ 52,628,157$ 44,843,484$ The table below presents the net OPEB liability of the City calculated using the healthcare rate of 6.00% to 7.00% as well as what the City’s net OPEB liability would be if it were calculated using a healthcare rate that is 1 percentage point lower (5.00% to 6.00%) or 1 percentage point higher (7.00% to 8.00%) than the current rate: 1%Current 1% Decrease Healthcare Increase Discount Rate (Varies)(Varies)(Varies) Net OPEB Liability 42,305,031$ 52,628,157$ 67,927,102$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 78 NOTE 7 -OTHER POSTEMPLOYMENT BENEFITS (continued) Changes in the Net OPEB Liability Total OPEB OPEB Plan Net OPEB Liability (A)Net Position (B)Liability (A) - (B) Balance at April 30, 2018 48,801,497$ -$ 48,801,497$ Changes for the year: Service Cost 1,323,073 - 1,323,073 Interest 1,907,572 - 1,907,572 Actuarial Experience 634,293 - 634,293 Assumptions Changes 1,554,199 - 1,554,199 Contributions - Employer - 1,592,477 (1,592,477) Contributions - Employees - - - Contributions - Other - - - Net Investment Income - - - Benefit Payments, From Trust (1,592,477) (1,592,477) - Administrative Expenses - - - Net Changes 3,826,660 - 3,826,660 Balance at April 30, 2019 52,628,157$ -$ 52,628,157$ OPEB Expense and Deferred Inflows/Outflows of Resources Related to OPEB For the year ended April 30, 2019, the Village recognized OPEB expense of $3,495,917. On April 30, 2019, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience 557,409$ -$ Changes of Assumptions 1,365,810 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments - - Total 1,923,219$ -$ VILLAGE OF ALSIP, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS April 30, 2019 79 NOTE 7 -OTHER POSTEMPLOYMENT BENEFITS (continued) OPEB Expense and Deferred Inflows/Outflows of Resources Related to OPEB (continued) The net amount reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Year Ending April 30:Amount 2020 265,272$ 2021 265,272 2022 265,272 2023 265,272 2024 265,272 Thereafter 596,859 Total 1,923,219$ This information is an integral part of the accompanying financial statements. Required Supplementary Information FISCAL YEAR ENDED APRIL 30, 2019 201 201 201 Actuarially Determined Contribution (ADC) 343,092 341,590 576,228 571,163 Contributions in Relation to the ADC 344,230 340,719 576,228 571,163 Contribution Deficiency (Excess) (1,138) 871 - - Covered Payroll 3,333,437 3,244,993 3,321,409 3,450,480 Contributions as a Percentage of Covered Payroll 10.33 10.50 17.35 16.55 Additional years will be added to this schedule annually until 10 years of data is presented. Last Ten Fiscal Years ILLINOIS 0UNICIPAL RETIRE0ENT FUND VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION April 30, 2019 SC+EDULE OF CONTRIBUTIONS 80 FISCAL YEAR ENDED APRIL 30, 2019 201 201 201 201 Actuarially Determined Contribution (ADC) 3,570,367 3,299,096 2,990,818 2,333,349 2,148,485 Contributions in Relation to the ADC 3,950,636 2,677,598 2,572,942 2,439,154 2,214,723 Contribution Deficiency (Excess) (380,269) 621,498 417,876 (105,805) (66,238) Covered Payroll 3,103,268 3,560,945 3,724,025 3,438,864 3,376,153 Contributions as a Percentage of Covered Payroll 127.31 75.19 69.09 70.93 65.60 Additional years will be added to this schedule annually until 10 years of data is presented. Last Ten Fiscal Years VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION April 30, 2019 POLICE PENSION SC+EDULE OF CONTRIBUTIONS 81 FISCAL YEAR ENDED APRIL 30, 2019 201 201 201 201 Actuarially Determined Contribution (ADC) 2,179,521 2,119,572 1,964,649 1,538,355 1,480,436 Contributions in Relation to the ADC 2,340,228 1,765,714 1,694,818 1,541,749 1,538,881 Contribution Deficiency (Excess) (160,707) 353,858 269,831 (3,394) (58,445) Covered Payroll 3,538,768 3,580,058 3,475,471 2,971,004 3,011,302 Contributions as a Percentage of Covered Payroll 66.13 49.32 48.77 51.89 51.10 Additional years will be added to this schedule annually until 10 years of data is presented. VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION April 30, 2019 FIRE PENSION SC+EDULE OF CONTRIBUTIONS Last Ten Fiscal Years 82 Year Ended December 31,201201201201 Total Pension Liability Service Cost 298,594 348,838 350,949 338,319 Interest 1,350,147 1,382,356 1,310,052 1,342,439 Differences Between Expected and Actual Experience (44,804) (629,401) 304,721 (1,141,983) Changes in Assumptions 521,012 (565,439) (44,517) 21,342 Benefit Payments and Refunds (980,672) (900,714) (1,104,864) (846,048) Net Change in Total Pension Liability 1,144,277 (364,360) 816,341 (285,931) Total Pension Liability - Beginning 18,342,997 18,707,357 17,891,016 18,176,947 Total Pension Liability - Ending (A)19,487,274 18,342,997 18,707,357 17,891,016 Plan Fiduciary Net Position Contributions - Employer 344,230 340,719 589,469 628,890 Contributions - Employee 152,794 147,870 153,572 146,561 Net Investment Income (1,071,695) 2,911,791 1,046,264 80,013 Benefit Payments (980,672) (900,714) (1,104,864) (846,048) Administrative Expenses (170,228) (296,330) 197,015 (604,709) Net Change in Plan Fiduciary Net Position (1,725,571) 2,203,336 881,456 (595,293) Plan Fiduciary Net Position - Beginning 18,527,354 16,324,018 15,442,562 16,037,855 Plan Fiduciary Net Position - Ending (B)16,801,783 18,527,354 16,324,018 15,442,562 Net Pension Liability - Ending (A) - (B)2,685,491 (184,357) 2,383,339 2,448,454 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 86.22 101.01 87.26 86.31 Covered Payroll 3,063,320 3,164,658 3,409,309 3,256,920 Net Pension Liability as a Percentage of Covered Payroll 88 -6 70 75 Additional years will be added to this schedule annually until 10 years of data is presented VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION April 30, 2019 SC+EDULE OF C+ANGES IN T+E E0PLOYER S NET PENSION LIABLITY AND RELATED RATIOS Last Ten Fiscal Years ILLINOIS 0UNICIPAL RETIRE0ENT FUND 83 Year Ended April 30,2019 201201201201 Total Pension Liability Service Cost 861,606 693,529 648,158 689,917 734,284 Interest 4,003,122 3,917,662 3,714,215 3,471,181 3,368,025 Differences Between Expected and Actual Experience 173,658 202,242 1,833,077 (470,405) - Changes in Assumptions - 3,964,677 (306,922) 2,545,778 - Benefit Payments and Refunds (3,159,867) (3,156,598) (2,807,670) (2,721,440) (2,535,879) Net Change in Total Pension Liability 1,878,519 5,621,512 3,080,857 3,515,031 1,566,430 Total Pension Liability - Beginning 63,166,418 57,544,906 54,464,049 50,949,018 49,382,588 Total Pension Liability - Ending (A)65,044,937 63,166,418 57,544,906 54,464,049 50,949,018 Plan Fiduciary Net Position Contributions - Employer 3,950,636 2,677,597 2,572,942 2,439,154 2,214,723 Contributions - Employee 352,823 339,682 352,928 351,042 334,901 Contributions - Other - - 49,537 - - Net Investment Income 1,338,130 1,270,037 1,669,246 (68,814) 1,196,897 Benefit Payments (3,159,867) (3,156,598) (2,807,670) (2,721,440) (2,535,879) Administrative Expenses (11,003) (24,529) (37,965) (8,720) (21,288) Prior Period Audit AdMustment - (109,595) (50,630) - 77,450 Net Change in Plan Fiduciary Net Position 2,470,719 996,594 1,748,389 (8,778) 1,266,804 Plan Fiduciary Net Position - Beginning 21,025,976 20,029,382 18,280,993 18,289,771 17,022,967 Plan Fiduciary Net Position - Ending (B)23,496,695 21,025,976 20,029,382 18,230,993 18,289,771 Net Pension Liability - Ending (A) - (B)41,548,242 42,140,442 37,515,524 36,183,056 32,659,247 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 36.12 33.29 34.81 33.57 35.90 Covered Payroll 3,103,268 3,560,945 3,724,025 3,438,864 3,376,153 Net Pension Liability as a Percentage of Covered Payroll 1339 1183 1007 1052 967 Additional years will be added to this schedule annually until 10 years of data is presented. SC+EDULE OF C+ANGES IN T+E E0PLOYER S NET PENSION LIABLITY AND RELATED RATIOS POLICE PENSION FUND Last Ten Fiscal Years VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION April 30, 2019 84 Year Ended April 30,2019 201201201201 Total Pension Liability Service Cost 878,753 759,133 709,470 659,594 725,003 Interest 3,235,350 3,137,406 3,075,843 2,882,499 2,763,171 Differences Between Expected and Actual Experience (20,423) (16,832) (517,055) 191,044 - Changes in Assumptions - 3,242,788 (331,122) 983,020 - Benefit Payments and Refunds (2,255,921) (2,080,017) (2,035,303) (1,872,896) (1,694,070) Net Change in Total Pension Liability 1,837,759 5,042,478 901,833 2,843,261 1,794,104 Total Pension Liability - Beginning 50,902,577 45,860,099 44,958,266 42,115,005 40,320,901 Total Pension Liability - Ending (A)52,740,336 50,902,577 45,860,099 44,958,266 42,115,005 Plan Fiduciary Net Position Contributions - Employer 2,340,228 1,765,714 1,694,818 1,541,749 1,538,881 Contributions - Employee 310,996 307,846 294,101 313,228 286,786 Contributions - Other - - 81,445 15 - Net Investment Income 1,216,647 1,862,812 2,051,089 (93,196) 1,654,617 Benefit Payments (2,255,921) (2,080,017) (2,035,303) (1,872,896) (1,694,070) Administrative Expenses (40,399) (30,298) (45,473) (24,740) (16,982) Prior Period Audit AdMustment - 81,401 - - - Net Change in Plan Fiduciary Net Position 1,571,551 1,907,457 2,040,677 (135,840) 1,769,232 Plan Fiduciary Net Position - Beginning 27,097,058 25,189,601 23,230,324 23,366,164 21,596,932 Plan Fiduciary Net Position - Ending (B)28,668,609 27,097,058 25,271,001 23,230,324 23,366,164 Net Pension Liability - Ending (A) - (B)24,071,727 23,805,519 20,589,098 21,727,942 18,748,841 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 54.36 53.23 55.10 51.67 55.48 Covered Payroll 3,538,768 3,580,058 3,475,471 2,971,004 3,011,302 Net Pension Liability as a Percentage of Covered Payroll 680 665 592 731 623 Additional years will be added to this schedule annually until 10 years of data is presented. VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION April 30, 2019 SC+EDULE OF C+ANGES IN T+E E0PLOYER S NET PENSION LIABLITY AND RELATED RATIOS FIRE0EN S PENSION FUND Last Ten Fiscal Years 85 Year Ended April 30,2019 201 Total Pension Liability Service Cost 1,323,073 1,272,553 Interest 1,907,572 1,842,087 Changes in Benefit Terms - - Differences Between Expected and Actual Experience 634,293 - Changes in Assumptions 1,554,199 - Benefit Payments and Refunds (1,592,477) (1,426,679) Net Change in Total Pension Liability 3,826,660 1,687,961 Total Pension Liability - Beginning 48,801,497 47,113,536 Total Pension Liability - Ending (A)52,628,157 48,801,497 Plan Fiduciary Net Position Contributions - Employer 1,592,477 1,426,679 Contributions - Employee - - Contributions - Other - - Net Investment Income - - Benefit Payments (1,592,477) (1,426,679) Administrative Expenses - - Prior Period Audit AdMustment - - Net Change in Plan Fiduciary Net Position - - Plan Fiduciary Net Position - Beginning - - Plan Fiduciary Net Position - Ending (B)- - Net Pension Liability - Ending (A) - (B)52,628,157 48,801,497 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 0.00 0.00 Covered Employee Payroll 8,839,089 8,573,319 Net Pension Liability as a Percentage of Covered Employee Payroll 595 569 Additional years will be added to this schedule annually until 10 years of data is presented VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION SC+EDULE OF C+ANGES IN T+E E0PLOYER S April 30, 2019 Last Ten Fiscal Years NET OPEB LIABLITY AND RELATED RATIOS RETIREE +EALT+ INSURANCE TRUST FUND 86 FISCAL YEAR ENDED APRIL 30, 2019 201 201 201 201 Annual Money-Weighted Rate of Return 6.0 6.5 8.7 -0.4 6.8 Net of Investment Expense VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION April 30, 2019 SC+EDULE OF INVEST0ENT RETURNS POLICE PENSION FUND Last Ten Fiscal Years 8ltimately, this schedule should present information for the last 10 years. +owever, until 10 years of information can be compiled, information will be presented for as many years as is available. 87 FISCAL YEAR ENDED APRIL 30, 2019 201 201 201 201 Annual Money-Weighted Rate of Return 4.4 7.4 8.8 -0.4 7.5 Net of Investment Expense VILLAGE OF ALSIP, ILLINOIS RE4UIRED SUPPLE0ENTARY INFOR0ATION April 30, 2019 SC+EDULE OF INVEST0ENT RETURNS 8ltimately, this schedule should present information for the last 10 years. +owever, until 10 years of information can be compiled, information will be presented for as many years as is available. FIRE0EN PENSION FUND Last Ten Fiscal Years 88 VILLAGE OF ALSIP, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION April 30, 2019 89 NOTE 1 -BUDGET INFORMATION The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1.The Village Mayor and Finance Director propose an operating budget based upon requests submitted by individual departments for the following fiscal year. The operating budget includes proposed expenditures and the means of financing them. 2.Budget hearings are conducted within the Finance Committee of the Village Board. 3.Expenditure budgets for the General Fund, special revenue funds (Road & Bridge, Motor Fuel Tax, and TIFs), and the Debt Service Fund are legally adopted on the cash basis through passage of an appropriation ordinance. 4.The level of budgetary control is at the fund level. The Village Mayor is authorized to transfer budgeted amounts within a fund (i.e. intrafund transfers) during the fiscal year. The Village Board, through passage of a supplemental appropriation ordinance, amends the appropriation ordinance to increase expenditures or expenses within a fund or to make transfers across funds (interfund transfers). Appropriations lapse at year-end. VILLAGE OF ALSIP, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION April 30, 2019 90 NOTE 2 -SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATIONS OF THE 2018 CONTRIBUTION RATE -IMRF Valuation Date: Notes:Actuarially determined contribution rates are calculated as of December 31 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine 2018 Contribution Rates: Actuarial Cost Method:Aggregate Entry Age Normal Amortization Method:Level percentage of payroll, closed Remaining Amortization Period:Non-Taxing bodies: 10-year rolling period. Taxing bodies (Regular, SLEP, and ECO groups): 25 year closed period early retirement incentive plan liabilities: a period up to 10 years selected by the Employer upon adoption of ERI. SLEP supplemental liabilities attributable to Public Act 94- 712 were financed over 20 years for most employers (three employers were financed over 29 years). Asset Valuation Method:5-year smoothed market; 20% corridor Wage Growth:3.50% Price Inflation:2.75%, approximate; No explicit price inflation assumption is used in this valuation. Salary Increases:3.39% to 14.25%, including inflation Investment Rate of Return:7.50% Retirement Age:Experience-based table of rates that are specific to the type of eligibility condition; last updated for the 2014 valuation pursuant to an experience study of the period 2011 to 2013. Mortality:For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non- disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. Other Information: Notes:There were no benefit changes during the year. VILLAGE OF ALSIP, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION April 30, 2019 91 NOTE 3 -SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATIONS OF THE 2019 CONTRIBUTION RATE -POLICE PENSION Valuation Date: Notes:Actuarially determined contribution rates are calculated as of April 30 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine 2018 Contribution Rates: Discount for NPL 6.50% Highly Quality 20 year Tax Exempt G.O. Bond Rate:3.79% Remaining Amortization Period:25-year closed period Asset Valuation Method:Market Wage Growth:3.25% Price Inflation:2.5%,approximate; No explicit price inflation assumption is used in this valuation. Salary Increases:4.0% –32.48% Investment Rate of Return:6.50% Retirement Age:50-70 Mortality:L&A 2016 Illinois Police Mortality Rates Other Information: Notes:There were no benefit changes during the year. VILLAGE OF ALSIP, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION April 30, 2019 92 NOTE 4 -SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATIONS OF THE 2019 CONTRIBUTION RATE -FIREMEN’S PENSION Valuation Date: Notes:Actuarially determined contribution rates are calculated as of April 30 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine 2018 Contribution Rates: Actuarial Cost Method:Aggregate entry age = normal Amortization Method:Level percentage of payroll, closed Remaining Amortization Period:25-year closed period Asset Valuation Method:Market Wage Growth:3.25% Price Inflation:2.5%, approximate; No explicit price inflation assumption is used in this valuation. Salary Increases:4.00% -35.82% Investment Rate of Return:6.50% Retirement Age:50-70. Mortality:L&A 2016 Illinois Firefighters Morality Rates Other Information: Notes:There were no benefit changes during the year. VILLAGE OF ALSIP, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION April 30, 2019 93 NOTE 5 -SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS USED IN THE CALCULATIONS OF THE 2018 CONTRIBUTION RATE -POSTRETIREMENT HEALTH PLAN (OPEB) Methods and Assumptions Used to Determine 2018 Contribution Rates: Discount rate:3.79% Long-Term Expected Rate of Return:N/A Remaining Amortization Period:25-year closed period Wage Growth:3.0% Price Inflation:2.5%, approximate; No explicit price inflation assumption is used in this valuation. Salary Increases:4.00% -35.82% Investment Rate of Return:N/A –unfunded. Retirement Age:50-70. Health Care Trend rates:5.00% -8.00% Mortality:IMRF Mortality follows the sex distinct Raw Rates as developed in the RP-2014 Study, with Blue Collar Adjustment. These Rates are Improved Generationally using MP-2016 improvement rates. Other Information: Notes:There were no benefit changes during the year. Supplementary Information Governmental Funds –Major Funds VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE BALANCE S+EET April 30, 2019 and 201 ASSETS 2019 201 Cash 615,463 613,581 Temporary cash investment 12,086,188 10,082,942 Cash held for insurance and related expenditures 9,077,659 5,448,983 Restricted assets: Temporary cash investment 122,739 216,031 Receivables (net of allowance for uncollectibles): Taxes 8,038,214 9,160,525 Accounts 963,832 701,506 Due from other funds 2,064 2,064 Prepaid expense 255,459 81,337 TOTAL ASSETS 31,161,618 26,306,969 LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts payable 750,546 577,677 Accrued medical claims 462,555 265,487 Other accrued expenses 789,554 857,886 Due to other funds 426,612 359,255 Total liabilities 2,429,267 2,060,305 DEFERRED INFLO:S OF RESOURCES 8navailable revenue - property taxes 5,896,401 7,151,662 FUND BALANCES Nonspendable 255,459 81,337 Restricted for police department programs 122,739 216,031 Assigned for insurance premiums, claims, and related expenditures 9,077,659 5,448,983 8nassigned 13,380,093 11,348,651 Total fund balances 22,835,950 17,095,002 TOTAL LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCES 31,161,618 26,306,969 94 VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCE For the Years Ended April 30, 2019 and 201 2019 201 REVENUES Taxes: Property tax 12,572,975 8,721,147 Sales tax 6,590,111 6,421,934 State income tax 2,590,248 2,266,790 Mini-warehouse tax 244,817 248,772 +otelmotel tax 620,813 583,314 Replacement tax 348,529 317,226 Transfer tax 425,711 590,656 Total taxes 23,393,204 19,149,839 Miscellaneous revenue: Flea marNet fees 131,589 146,243 Miscellaneous income 503,061 204,082 Damage to 9illage property - insurance reimbursements 27,383 304,333 Miscellaneous fees 1,456,371 1,217,456 Cable T9 franchise fees 311,123 312,161 Boat launch fee 8,617 10,377 Total miscellaneous revenue 2,438,144 2,194,652 Police and court fines 1,102,493 878,560 Licenses and permits 557,699 488,051 Grants 518,623 71,120 Charges for services 833,052 751,617 Interest 247,213 110,369 Total 3,259,080 2,299,717 Total revenues 29,090,428 23,644,208 E;PENDITURES General government: Administrative department 664,476 1,003,170 Planning commission 1,185 1,259 Police and fire commission 21,579 16,166 Social Security and IMRF 396,154 463,358 Finance department 530,393 520,502 9illage clerN department 255,438 247,698 9illage hall department 149,725 458,194 Total general government 2,018,950 2,710,347 (This statement is continued on the following page.) 95 VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCE Continued For the Years Ended April 30, 2019 and 201 2019 201 E;PENDITURES (continued) Public safety: Civil defense 30,717 18,093 Fire department 5,338,322 4,074,491 Fire department ambulance service 1,772,570 1,833,197 Police department 9,626,721 7,362,932 Total public safety 16,768,330 13,288,713 Building department 259,252 191,606 +ealth and environmental control department 1,195,205 1,157,584 Insurance department 3,554,597 4,207,348 Boat launch 14,879 19,620 Capital improvements - - Debt service 72,915 107,652 Total 5,096,848 5,683,810 Total expenditures 23,884,128 21,682,870 Excess of revenues over expenditures 5,206,300 1,961,338 OT+ER FINANCING SOURCES USES Operating transfers in 534,648 356,026 Operating transfers out - - Sale of 9illage property - 10,550 Total other financing sources 534,648 366,576 Excess of revenues and other financing sources over expenditures and other financing uses 5,740,948 2,327,914 FUND BALANCE, BEGINNING OF YEAR 17,095,002 14,767,088 FUND BALANCE, END OF YEAR 22,835,950 17,095,002 96 VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE STATE0ENT OF E;PENDITURES For the Years Ended April 30, 2019 and 201 2019 201 GENERAL GOVERN0ENT Administrative Department: Salary - mayor 75,289 75,289 Salary - admin assistant 24,435 21,990 Compensation - trustees 59,791 63,782 +otelmotel tax 100,592 89,355 Membership and dues 32,628 33,542 Legal retainer 12,100 13,000 Legal fees - other 222,588 612,594 Engineer fees 5,112 - Contingent expenses 15,439 19,920 Newsletter expense 14,430 325 Employee travel 1,173 1,260 Office expense 3,556 2,287 Beautification 3,613 5,197 Street fair 1,745 - Other expense 256,923 233,425 Reimbursements from other funds (164,938) (168,796) Total administrative department 664,476 1,003,170 Planning Commission: Staff expense 1,185 1,259 Total planning commission 1,185 1,259 Police and Fire Commission: Secretarial service 1,525 1,555 Examinations 18,694 12,624 Staff expense 1,360 1,870 Printing and publications - 117 Total police and fire commission 21,579 16,166 (This statement is continued on the following page.) 97 VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE STATE0ENT OF E;PENDITURES Continued For the Years Ended April 30, 2019 and 201 2019 201 GENERAL GOVERN0ENT (continued) Social Security and I0RF: Social Security and IMRF 381,702 446,882 8nemployment insurance 14,452 16,476 Total Social Security and IMRF 396,154 463,358 Finance Department: Salary - finance director and staff 310,149 303,935 Salary - computer operator 115,090 110,473 Payroll service and administrator 16,217 17,210 Purchase computer equipment 36,609 24,661 Computer forms and supplies 1,005 2,652 Computer maintenance 102,743 100,383 Office supplies 2,498 5,786 Accounting service 71,238 77,434 Contingent expense 6,500 7,520 Reimbursements from other funds (131,656) (129,552) Total finance department 530,393 520,502 Village ClerN Department: Salary - village clerN 12,500 12,500 Salaries - clerical 195,822 189,236 Telephone expense 58,380 54,203 Postage expense 21,500 26,958 Contingent expense 3,595 3,491 Legal advertising 3,391 3,129 Codification 7,693 1,300 Decals and tags - 944 Repair - office equipment - 65 Equipment purchase 230 371 Equipment rental 10,451 11,255 Office supplies 2,997 4,398 Printing 2,285 1,500 Reimbursements from other funds (63,406) (61,652) Total village clerN department 255,438 247,698 (This statement is continued on the following page.) 98 VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE STATE0ENT OF E;PENDITURES Continued For the Years Ended April 30, 2019 and 201 2019 201 GENERAL GOVERN0ENT (continued) Village +all Department: Salary - wages 29,774 46,304 Salary - custodian 10,083 9,768 Maintain village hall 97,123 107,034 Contract repair and utilities 7,085 290,843 Purchase new equipment 3,945 - Cleaning supplies 855 3,842 Contingencies 860 403 Total village hall department 149,725 458,194 Total General Government 2,018,950 2,710,347 PUBLIC SAFETY Civil Defense: Salary - director 10,000 8,487 Repair - warning systems 7,830 1,130 Contingencies 3,191 5,220 Contingencies 9,696 3,256 Total civil defense 30,717 18,093 Fire Department: Salaries - all firemen 2,167,300 1,798,732 9olunteers, paid calls, and overtime 219,645 154,895 +oliday pay 44,484 30,464 Salaries - incentive pay 40,125 33,570 Retirement buyout 126,124 - Publications and membership 4,359 6,526 Repair - fire trucNs 80,543 63,638 Repair - radio equipment 5,289 6,299 Maintenance - fire stations 28,716 40,246 8tilities - fire stations 2,113 1,020 Fire prevention expense 3,544 5,329 Contingent expense 2,263 2,317 Purchase fire equipment 30,168 30,332 Purchase radio equipment 4,345 7,454 Education reimbursement 4,884 6,757 Gasoline and oil 33,173 20,225 Clothing allowance 37,968 24,321 Training materials 1,137 2,270 Physical examinations 11,807 15,446 Copy machine rental 55,177 23,915 (This statement is continued on the following page.) 99 VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE STATE0ENT OF E;PENDITURES Continued For the Years Ended April 30, 2019 and 201 2019 201 PUBLIC SAFETY (continued) Fire Department: (continued) Office supplies 81,990 29,635 FEMA grant expenditures 29 - State grant expenses 5,664 2,500 Firemen s pension contribution 2,347,475 1,768,600 Total fire department 5,338,322 4,074,491 Fire Department Ambulance Service: Salaries - ambulance personnel 1,275,282 1,600,030 +oliday pay 39,920 38,654 Repairs and equipment 21,782 38,694 Maintenance - stations 27,103 53,551 Contingent expense 2,084 713 Purchase ambulance 216,809 - Ambulance supplies 127,806 31,590 Gasoline and oil - 8,233 Clothing allowance 15,567 13,736 Office supplies 803 2,329 Collection fees 45,414 45,667 Total fire department ambulance service 1,772,570 1,833,197 Police Department: Salaries - policemen 3,476,184 3,429,439 Salaries - clerical 164,971 163,329 Salaries - communications 112,632 57,142 Salaries - overtime 137,780 161,541 Salaries - crossing guards 24,890 26,396 Salaries - municipal court 30,250 34,768 +oliday pay 77,799 75,512 Impoundments 2,629 3,128 Clothing allowance 37,359 53,714 Miscellaneous vehicle equipment 145,684 138,545 Equipment poundmasters and traffic safety 65,549 16,932 Computer purchase 20,365 18,997 Purchase office furniture 1,549 361 Photo supplies and rental 223,265 122,318 Gasoline and oil 82,709 75,958 Firearms and ammunition 19,871 16,709 Investigative aids 137,689 26,779 (This statement is continued on the following page.) 100 VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE STATE0ENT OF E;PENDITURES Continued For the Years Ended April 30, 2019 and 201 2019 201 PUBLIC SAFETY (continued) Police Department: (continued) Training 35,871 40,713 Crime prevention 4,212 4,516 9ehicle maintenance 55,004 39,333 Radio equipment repair and maintenance contract 113,196 147,154 Repair - office equipment 140 283 Contingent expense 635,854 11,258 Publications, membership, and dues 2,005 1,415 Prisoner foodcare 20,326 1,216 Physical examination fee 4,371 6,381 Office supplies 30,591 7,451 Building security - - Police pension contribution 3,963,976 2,681,644 Total police department 9,626,721 7,362,932 Total Public Safety 16,768,330 13,288,713 BUILDING DEPART0ENT Salary - commissioner 42,747 44,090 Salaries - clerical 121,197 100,089 Salaries - building inspectors 7,866 9,684 Salaries - electrical inspectors 3,042 2,790 Salaries - plumbing inspectors 9,931 1,404 Outside inspection fee 4,576 672 Equipment 21,000 1,955 Contingent expense 1,882 1,578 Research, testing, and plan review 40,860 21,662 Office equipment and supplies 6,151 7,682 Total Building Department 259,252 191,606 +EALT+ AND ENVIRON0ENTAL CONTROL DEPART0ENT Salary - commissioner 17,500 17,500 Part-time inspectoroffice assistant 44,434 42,909 Dues and memberships 430 235 Refuse contract 1,127,590 1,093,174 Rodent control contract 2,580 2,340 Equipment maintenance 1,192 - Contingent expense 1,479 1,426 Total +ealth and Environmental Control Department 1,195,205 1,157,584 (This statement is continued on the following page.) 101 VILLAGE OF ALSIP, ILLINOIS GENERAL FUND CO0PARATIVE STATE0ENT OF E;PENDITURES Continued For the Years Ended April 30, 2019 and 201 2019 201 INSURANCE DEPART0ENT Comprehensive general, automobile, umbrella, liability, and worNmen s compensation 1,053,533 903,484 Group health and life 2,746,064 3,548,864 Reimbursements from other funds (245,000) (245,000) Total Insurance Department 3,554,597 4,207,348 BOAT LAUNC+ Salary - wages 8,548 12,234 8tilities 531 651 Grounds and maintenance 4,924 5,989 Telephone expense 117 103 Contingencies 558 453 Physicals - boat 201 190 Total Boat Launch 14,879 19,620 CAPITAL I0PROVE0ENTS - - DEBT SERVICE 72,915 107,652 TOTAL GENERAL FUND E;PENDITURES 23,884,128 21,682,870 102 Governmental Funds –Nonmajor Funds VILLAGE OF ALSIP, ILLINOISCO0BINING BALANCE S+EETNON0A-OR GOVERN0ENTAL FUNDSApril 30, 2019Zith Comparative Totals at April 30, 201Foreign0otor Fire SpecialFuel Insurance Ta[ Debt TotalsTa[Ta[AllocationService2019201ASSETSTemporary cash investments 617,748 23,686 2,250,030 403,036 3,294,500 4,993,640 Receivables (net of allowance for uncollectibles):Other42,669 - 255,468 118,306 416,443 301,570 Prepaid expense - - - - - - Due from other funds - - - - - - Restricted assets:Escrow deposits restricted for bond refunding- - - - - - TOTAL ASSETS660,417 23,686 2,505,498 521,342 3,710,943 5,295,210 LIABILITIES, DEFERRED INFLO:S OF RESOURCES, ANDFUND BALANCESLiabilities:Accounts payable 7,244 - 13,891 - 21,135 217,722 Intergovernmental liability - - - - - - Due to other funds- - - 2,064 2,064 2,064 Total liabilities7,244 - 13,891 2,064 23,199 219,786 Deferred inflows of resources:8navailable revenue - property taxes- - 255,468 118,307 373,775 257,437 Fund balances (deficit):Nonspendable- - - - - - Restricted for:Maintenance of 9-1-1 Emergency Telephone System - - - - - - Tax Increment Financing allocation for proMect areas - - 2,236,139 - 2,236,139 3,078,933 Street maintenance and improvement programs 653,173 - - - 653,173 533,396 Fire department programs - 23,686 - - 23,686 55,163 Debt service- - - 400,971 400,971 1,150,495 Total restricted fund balance653,173 23,686 2,236,139 400,971 3,313,969 4,817,987 Total fund balances653,173 23,686 2,236,139 400,971 3,313,969 4,817,987 TOTAL LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCES660,417 23,686 2,505,498 521,342 3,710,943 5,295,210 103 VILLAGE OF ALSIP, ILLINOISCO0BINING STATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCES DEFICITNON0A-OR GOVERN0ENTAL FUNDSFor the Year Ended April 30, 2019Zith Comparative Totals for the Year Ended April 30, 201Foreign0otor Fire SpecialFuel Insurance Ta[ Debt TotalsTa[Ta[AllocationService2019201REVENUESTaxes 489,339 43,856 212,867 247,289 993,351 1,326,918 Licenses and permits - - - - - 243,083 Interest 13,017 50 13,017 1,499 27,583 61,267 Miscellaneous- - - - - 5,837 Total revenues502,356 43,906 225,884 248,788 1,020,934 1,637,105 E;PENDITURESPublic safety - 75,383 - - 75,383 757,458 +ighways and streets 382,579 - - - 382,579 681,206 Miscellaneous - - 634,528 - 634,528 2,476,017 Debt service: - - - - - - Principal retirement - - - 379,940 379,940 1,793,161 Interest and fiscal charges- - - 83,724 83,724 166,511 Total expenditures382,579 75,383 634,528 463,664 1,556,154 5,874,353 Excess (deficiency) of revenues over expenditures119,777 (31,477) (408,644) (214,876) (535,220) (4,237,248) OT+ER FINANCING SOURCES USESLoan proceeds - - - - - - Refunding and advance refunding bonds issued - - - - - - Bond premium - - - - - - Payment to bond escrow agent - - - - - (3,482,598) Transfers in - - - - - 1,710,994 Transfers out- - (434,150) (534,648) (968,798) (1,217,750) Total other financing sources (uses)- - (434,150) (534,648) (968,798) (2,989,354) Excess (deficiency) of revenues and otherfinancing sources over expenditures and other financing uses 119,777 (31,477) (842,794) (749,524) (1,504,018) (7,226,602) FUND BALANCES, BEGINNING OF YEAR533,396 55,163 3,078,933 1,150,495 4,817,987 12,044,589 FUND BALANCES, END OF YEAR653,173 23,686 2,236,139 400,971 3,313,969 4,817,987 104 VILLAGE OF ALSIP, ILLINOIS SPECIAL REVENUE FUNDS ROAD AND BRIDGE FUND CO0PARATIVE BALANCE S+EET April 30, 2019 and 201 ASSETS 2019 201 Temporary cash investment 3,224,417 2,552,776 Receivable (net of allowance for uncollectibles): Taxes 397,844 427,023 Due from other funds - - Other assets - 94,045 TOTAL ASSETS 3,622,261 3,073,844 LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCE LIABILITIES Accounts payable 71,150 197,122 Other accrued expenses 45,285 15,524 Total liabilities 116,435 212,646 DEFERRED INFLO:S OF RESOURCES 8navailable revenue - property taxes 396,299 427,023 FUND BALANCE Restricted for street maintenance and improvement programs 3,109,527 2,434,174 TOTAL LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCE 3,622,261 3,073,843 105 VILLAGE OF ALSIP, ILLINOIS SPECIAL REVENUE FUNDS ROAD AND BRIDGE FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCE DEFICIT For the Years Ended April 30, 2019 and 201 2019 201 REVENUES Property taxes 823,805 620,586 Replacement tax 19,266 16,628 Fuel use tax 1,404,722 1,451,468 9ehicle license 425,193 394,458 Garage fees 118,350 118,350 Waste transfer fee 9,768 11,622 Property rental 15,844 14,920 Miscellaneous income 48,371 164,769 Total revenues 2,865,319 2,792,801 E;PENDITURES Street department: Salary - superintendent 100,827 95,758 Wages 706,655 693,873 Engineering fees 23,882 5,955 Purchase new equipment and vehicles 250,737 9,327 8niforms 6,409 5,583 Purchase street signs 9,431 6,621 Resurface and repair streets 94,918 190,931 SidewalN repair and maintenance 75,563 - Purchase salt 99,524 85,872 9illage vehicle sticNers 9,988 8,660 Gasoline and oil 24,049 27,340 Equipment and repair 30,563 33,719 Equipment maintenance 16,424 17,088 Radio Communication 5,495 - Garage maintenance and supplies 19,273 37,173 8tilities 6,452 4,683 Energy charge - street lights 21,453 23,236 Insurance and administrative 211,200 149,569 Social Security and IMRF 141,670 145,212 8nemployment insurance 1,792 1,958 Contingent expense 2,828 2,378 Dumping charges 19,007 9,388 Office supplies 1,614 2,078 Training 19 1,050 Refunds - - Equipment rental - pagers 2,683 2,281 Cleaning supplies 17,379 17,148 Physicals 1,320 1,272 Chemicals 189 - Total street department 1,901,344 1,578,153 (This statement is continued on the following page.) 106 VILLAGE OF ALSIP, ILLINOIS SPECIAL REVENUE FUNDS ROAD AND BRIDGE FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCE DEFICIT Continued For the Years Ended April 30, 2019 and 201 2019 201 E;PENDITURES (continued) Drainage and storm sewers: Engineering fees - 11,166 Maintenance - storm sewers 9,521 1,410 Supplies 1,983 2,079 Drainage proMect - 104,476 Contingent expense 1,000 1,106 Total drainage and storm sewers 12,504 120,237 Forestry maintenance: Equipment purchase 48,689 850 Equipment maintenance 2,548 2,354 Forestry maintenance 71,482 67,502 Equipment repairs 2,940 801 Training 120 - Total forestry maintenance 125,779 71,507 Debt service 176,376 183,876 Total expenditures 2,216,003 1,953,773 Excess of revenues over expenditures 649,316 839,028 OT+ER FINANCING SOURCES USES Loan proceeds - - Sale of property 26,037 - Transfers in - 7,500 Transfers out - (100,000) Excess of revenues and other financing sources over expenditures and other financing uses 675,353 746,528 FUND BALANCE, BEGINNING OF YEAR 2,434,174 1,687,646 FUND BALANCE, END OF YEAR 3,109,527 2,434,174 107 VILLAGE OF ALSIP, ILLINOIS SPECIAL REVENUE FUNDS SPECIAL TA; ALLOCATION FUND CO0PARATIVE BALANCE S+EET April 30, 2019 and 201 ASSETS 123rd Place N: Cicero TIF 1 123rd St Cicero PulasNi Road Ave I29Totals to 12th StAve TIF Corridor TIF TIF 2019 201 Temporary cash investment 500,000 398,614 1,340,034 11,382 2,250,030 3,102,599 Receivable (net of allowance for uncollectibles): Taxes - 161,220 62,315 31,933 255,468 122,232 Due from other funds - - - - - - TOTAL ASSETS 500,000 559,834 1,402,349 43,315 2,505,498 3,224,831 LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCE LIABILITIES Accounts payable - - 13,891 - 13,891 23,666 Due to other funds - - - - - - Total liabilities - - 13,891 - 13,891 23,666 DEFERRED INFLO:S OF RESOURCES 8navailable revenue - property taxes - 161,219 62,315 31,934 255,468 122,232 FUND BALANCE Restricted for Tax Increment Financing allocation for proMect areas 500,000 398,615 1,326,143 11,381 2,236,139 3,078,933 TOTAL LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND FUND BALANCE 500,000 559,834 1,402,349 43,315 2,505,498 3,224,831 108 VILLAGE OF ALSIP, ILLINOISSPECIAL REVENUE FUNDSSPECIAL TA; ALLOCATION FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCE For the Years Ended April 30, 2019 and 201 123rd Place N: Cicero TIF 1 123rd St Cicero PulasNi Road Ave I29Totals to 12th StAve TIF Corridor TIF TIF Eliminations 2019 201 REVENUES Property taxes - 4,783 200,968 7,116 - 212,867 428,597 Interest income - 1,897 6,855 4,265 - 13,017 3,496 Total revenues - 6,680 207,823 11,381 - 225,884 432,093 E;PENDITURES Construction costs - - 429,484 - - 429,484 1,749,518 Administrative, legal fees, and other - - 106,030 - - 106,030 123,445 Surplus distribution 99,014 - - - - 99,014 603,054 Total expenditures 99,014 - 535,514 - - 634,528 2,476,017 Excess (deficiency) of revenues over expenditures (99,014) 6,680 (327,691) 11,381 - (408,644) (2,043,924) OT+ER FINANCING USES Transfers in - - - - - - - Transfers out - - (434,150) - - (434,150) - Total other financing uses - - (434,150) - - (434,150) - Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (99,014) 6,680 (761,841) 11,381 - (842,794) (2,043,924) FUND BALANCE, BEGINNING OF YEAR 599,014 391,935 2,087,984 - - 3,078,933 5,122,857 FUND BALANCE, END OF YEAR 500,000 398,615 1,326,143 11,381 - 2,236,139 3,078,933 109 VILLAGE OF ALSIP, ILLINOIS SPECIAL REVENUE FUNDS SPECIAL TA; ALLOCATION SC+EDULE OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCE BUDGET AND ACTUAL For the Years Ended April 30, 2019 Variance Original Final Positive Budget Budget Actual Negative REVENUES Taxes 105,750 105,750 (53,605) (159,355) Investment income 3,600 3,600 13,017 9,417 Total revenues 109,350 109,350 (40,588) (149,938) E;PENDITURES Capital proMects 1,895,495 1,895,495 644,303 1,251,192 Total expenditures 1,895,495 1,895,495 644,303 1,251,192 NET C+ANGE IN FUND BALANCE (1,786,145) (1,786,145) (1,119,041) 667,104 FUND BALANCE, BEGINNING OF YEAR 3,078,933 RECONCILING ITE0S FOR DIFFERENCES IN BUDGETARY AND ACCRUAL BASIS, NET 276,247 FUND BALANCE, END OF YEAR 2,236,139 110 9I//AGE 2F A/SIP I//IN2IS April and ASSETS ASSETS Temporary cash investment 617,748 683,319 Receivables Allotments from the State of Illinois 42,669 44,131 Due from other funds T2TA/ ASSETS 660,417 727,450 /IABI/ITIES AND F8ND BA/ANCE /IABI/ITIES Accounts payable 7,244 194,054 F8ND BA/ANCE Restricted for street maintenance and improvement programs 653,173 533,396 T2TA/ /IABI/ITIES AND F8ND BA/ANCE 660,417 727,450 SPECIA/ RE9EN8E F8NDS M2T2R F8E/ TA; F8ND C2MPARATI9E BA/ANCE S+EET 111 VILLAGE OF ALSIP, ILLINOIS SPECIAL REVENUE FUNDS 0OTOR FUEL TA; FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENDITURES, AND C+ANGES IN FUND BALANCE For the Years Ended April 30, 2019 and 201 2019 Actual 2019 Budget 201 Actual REVENUES State allotments 489,339 492,528 492,201 Interest income 13,017 10,000 8,914 Miscellaneous income - - 5,837 Total revenues 502,356 502,528 506,952 E;PENDITURES General maintenance 94,533 107,087 95,666 Road maintenance 288,046 343,516 585,540 Total expenditures 382,579 450,603 681,206 Excess (deficiency) of revenues over expenditures 119,777 51,925 (174,254) FUND BALANCE, BEGINNING OF YEAR 533,396 - 707,650 FUND BALANCE, END OF YEAR 653,173 51,925 533,396 112 9I//AGE 2F A/SIP I//IN2IS April and ASSETS ASSETS Temporary cash investment 23,686 55,163 T2TA/ ASSETS 23,686 55,163 F8ND BA/ANCE F8ND BA/ANCE Restricted for fire department programs 23,686 55,163 T2TA/ F8ND BA/ANCE 23,686 55,163 SPECIA/ RE9EN8E F8NDS F2REIGN FIRE INS8RANCE TA; F8ND C2MPARATI9E BA/ANCE S+EET 113 VILLAGE OF ALSIP, ILLINOIS SPECIAL REVENUE FUNDS FOREIGN FIRE INSURANCE TA; FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENDITURES AND C+ANGES IN FUND BALANCE For the Years Ended April 30, 2019 and 201 2019 201 REVENUES Foreign fire insurance tax 43,856 14 Interest income 50 47,503 Total revenues 43,906 47,517 E;PENDITURES Clothing allowance 4,755 3,602 Ambulance supplies - 1,584 Furniture and fixtures 19,319 4,768 Equipment and supplies 38,657 12,230 Training 897 440 Contingent expense 11,755 3,896 Total expenditures 75,383 26,520 Excess (deficiency) of revenues over expenditures (31,477) 20,997 FUND BALANCE, BEGINNING OF YEAR 55,163 34,166 FUND BALANCE, END OF YEAR 23,686 55,163 114 April and ASSETS Temporary cash investment 403,036 1,152,559 Receivable (net of allowance for uncollectibles) Taxes 118,306 135,205 Due from other funds Restricted assets Escrow deposits restricted for bond refunding T2TA/ ASSETS 521,342 1,287,764 /IABI/ITIES Due to other funds 2,064 2,064 Total liabilities 2,064 2,064 DEFERRED INF/2WS 2F RES28RCES Unavailable revenue property taxes 118,307 135,205 F8ND BA/ANCE Restricted for debt service 400,971 1,150,495 T2TA/ /IABI/ITIES AND F8ND BA/ANCE 521,342 1,287,764 /IABI/ITIES DEFERRED INF/2WS 2F RES28RCES AND F8ND BA/ANCE 9I//AGE 2F A/SIP I//IN2IS DEBT SER9ICE F8ND C2MPARATI9E BA/ANCE S+EET 115 VILLAGE OF ALSIP, ILLINOIS DEBT SERVICE FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENDITURES AND C+ANGES IN FUND BALANCE For the Years Ended April 30, 2019 and 201 2019 201 REVENUES Taxes 247,289 406,106 Interest income 1,499 1,354 Total revenues 248,788 407,460 E;PENDITURES Debt service: Principal retirement 379,940 1,793,161 Interest and fiscal charges 6,876 166,511 Contingencies 76,848 - Total expenditures 463,664 1,959,672 Deficiency of revenues over expenditures (214,876) (1,552,212) OT+ER FINANCING SOURCES USES Payment to bond escrow agent - (3,482,598) Transfers in - 1,710,994 Transfers out (534,648) (1,217,750) Total other financing sources (uses)(534,648) (2,989,354) Deficiency of revenues and other financing sources over expenditures and other financing uses (749,524) (4,541,566) FUND BALANCE, BEGINNING OF YEAR 1,150,495 5,692,061 FUND BALANCE, END OF YEAR 400,971 1,150,495 116 VILLAGE OF ALSIP, ILLINOIS DEBT SERVICE FUNDS SC+EDULE OF REVENUES, E;PENDITURES AND C+ANGES IN FUND BALANCE BUDGET AND ACTUAL For the Years Ended April 30, 2019 Variance Original Final Positive Budget Budget Actual Negative REVENUES Taxes 232,240 232,240 247,289 15,049 Investment income 70,000 70,000 1,499 (68,501) Total revenues 302,240 302,240 248,788 (53,452) E;PENDITURES Debt Service: Principal retirement 214,940 379,940 379,940 - Interest and fiscal charges 17,300 128,725 6,876 121,849 Total expenditures 232,240 508,665 463,664 45,001 OT+ER FINANCING SOURCES USES Transfers in - - - - Transfers out - - (534,648) (534,648) Proceeds from bond issuance, net of escrow - - - - Total other financing sources (uses)- - (534,648) (534,648) NET C+ANGE IN FUND BALANCE 70,000 (206,425) (749,524) (543,099) FUND BALANCE, BEGINNING OF YEAR 1,150,495 RECONCILING ITE0S FOR DIFFERENCES IN BUDGETARY AND ACCRUAL BASIS, NET - FUND BALANCE, END OF YEAR 400,971 117 Enterprise Funds VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS :ATER:OR.S AND SE:ERAGE FUND CO0PARATIVE STATE0ENT OF NET POSITION April 30, 2019 and 201 ASSETS AND DEFERRED OUTFLO:S OF RESOURCES 2019 201 CURRENT ASSETS Cash - - Temporary cash investments 7,023,996 5,011,635 Receivables (net of allowance for uncollectibles): Account customers 979,373 908,925 Estimated unbilled water and sewer charges 587,340 577,522 Due from State - 429,169 Due from other funds 426,612 359,254 Total current assets 9,017,321 7,286,505 RESTRICTED ASSETS Temporary cash investments 62,683 502,096 PROPERTY, BUILDING, AND E4UIP0ENT, NET 18,657,191 18,595,631 DEFERRED OUTFLO:S OF RESOURCES Related to pension liability 503,871 180,390 Total deferred outflows of resources 503,871 180,390 TOTAL ASSETS AND DEFERRED OUTFLO:S OF RESOURCES 28,241,066 26,564,622 (This statement is continued on the following page.) 118 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS :ATER:OR.S AND SE:ERAGE FUND CO0PARATIVE STATE0ENT OF NET POSITION Continued April 30, 2019 and 201 LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND NET POSITION 2019 201 CURRENT LIABILITIES PAYABLE FRO0 CURRENT ASSETS Accounts payable 747,738 1,122,850 Accrued interest payable 36,173 37,896 Customer deposits payable - restricted assets 33,331 35,021 Other accrued expenses 28,875 1,541,072 8tility overpayments 21,989 20,400 Current portion of notes payable 878,792 139,890 Current portion of general obligation bonds 428,000 413,500 Total current liabilities (payable from current assets)2,174,898 3,310,629 LONGTER0 LIABILITIES Postemployment benefit obligation 2,227,074 2,309,696 IMRF net pension liability 644,940 (71,144) Notes payable 2,120,541 2,856,988 General obligation bonds (net of unamortized discount and premium)4,647,856 5,110,383 Total long-term liabilities 9,640,411 10,205,923 Total liabilities 11,815,309 13,516,552 DEFERRED INFLO:S OF RESOURCES Related to pension liability 182,120 651,011 NET POSITION Net investment in capital assets 10,582,002 10,074,871 8nrestricted 5,661,635 2,322,188 Total net position 16,243,637 12,397,059 TOTAL LIABILITIES, DEFERRED INFLO:S OF RESOURCES, AND NET POSITION 28,241,066 26,564,622 119 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS :ATER:OR.S AND SE:ERAGE FUND CO0PARATIVE STATE0ENT OF REVENUES, E;PENSES, AND C+ANGES IN NET POSITION For the Years Ended April 30, 2019 and 201 2019 201 OPERATING REVENUES Charges for services: Water 11,877,132 11,471,967 Sewer 659,825 758,195 Tapping fees 40,482 71,453 Fines and penalties 122,466 140,045 Other income 1,681,289 620,259 Total operating revenues 14,381,194 13,061,919 OPERATING E;PENSES Water department 9,778,077 9,734,141 Sewer department 267,557 365,251 Total operating expenses 10,045,634 10,099,392 Operating income before depreciation 4,335,560 2,962,527 DEPRECIATION Water department 538,795 523,174 Sewer department 252,420 252,421 Total depreciation 791,215 775,595 Operating income 3,544,345 2,186,932 NONOPERATING REVENUES E;PENSES AND TRANSFERS Amortization of bond premium 34,527 37,244 Amortization of charge on bond refunding - (407,023) Note and bond interest and fiscal charges (214,226) (200,177) Transfers out - (514,650) Transfers in 434,150 401,984 Interest income 47,782 5,680 Total non-operating revenues (expenses) and transfers 302,233 (676,942) NET INCO0E 3,846,578 1,509,990 NET POSITION, BEGINNING OF YEAR 12,397,059 10,887,069 NET POSITION, END OF YEAR 16,243,637 12,397,059 120 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS :ATER:OR.S AND SE:ERAGE FUND CO0PARATIVE STATE0ENT OF CAS+ FLO:S For the Years Ended April 30, 2019 and 201 2019 201 CAS+ FLO:S FRO0 OPERATING ACTIVITIES Operating income 3,544,345 2,186,932 AdMustments to reconcile operating income to net cash provided by operating activities: Depreciation 791,215 775,595 Effects of changes in operating assets and liabilities: Receivables - account customers (70,448) (116,415) Receivables - unbilled charges (9,818) 12,183 Receivables - other 429,169 (429,169) Due from other funds (67,358) 67,358 Accounts payable (375,112) (342,670) Other accrued expenses (1,512,197) 2,259 8tility overpayments 1,589 150 Postemployment benefit obligation (82,623) 1,611,009 Deferred outflow - IMRF (238,294) 161,756 Deferred inflow - IMRF (468,891) 496,166 IMRF net pension liability 630,897 (2,180,742) Compensated absences payable - - Restricted liabilities (1,690) 1,295 Net cash provided (used) by operating activities 2,570,784 2,245,707 CAS+ FLO:S FRO0 NONCAPITAL FINANCING ACTIVITIES Transfers in 434,150 401,984 Transfers out - (514,650) Net cash provided (used) by non-capital financing activities 434,150 (112,666) CAS+ FLO:S FRO0 CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of property, building, and equipment (852,775) (1,401,834) Bond reimbursement - 511,216 Proceeds from issuance of notes payable 162,170 1,227,146 Principal payments on bonds payable (413,500) (255,000) Principal payments on notes payable (159,714) (637,917) Interest paid on notes and bonds (215,949) (215,757) Net cash provided (used) by capital and related financing activities (1,479,768) (772,146) (This statement is continued on the following page.) 121 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS :ATER:OR.S AND SE:ERAGE FUND CO0PARATIVE STATE0ENT OF CAS+ FLO:S Continued For the Years Ended April 30, 2019 and 201 2019 201 CAS+ FLO:S FRO0 INVESTING ACTIVITIES Earnings on investments 47,782 5,680 NET INCREASE DECREASE IN CAS+ AND TE0PORARY CAS+ INVEST0ENTS 1,572,948 1,366,575 CAS+ AND TE0PORARY CAS+ INVEST0ENTS, BEGINNING OF YEAR 5,513,731 4,147,156 CAS+ AND TE0PORARY CAS+ INVEST0ENTS, END OF YEAR 7,086,679 5,513,731 122 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS :ATER:OR.S AND SE:ERAGE FUND CO0PARATIVE STATE0ENT OF OPERATING E;PENSES For the Years Ended April 30, 2019 and 201 2019 201 :ATER DEPART0ENT Salary - commissioner 100,827 93,799 Salary - clerical 56,808 50,115 Wages - general labor 327,817 328,835 8niforms 2,998 2,975 Engineering fees 67,302 32,681 Audit fees 15,000 13,754 Bad debt expense - 342 Tools and equipment 24,665 75,607 Purchase - office equipment 2,717 2,659 Purchase - new equipment 7,441 9,464 Purchase - meters 93,369 60,354 Radio equipment - 8 Purchase - computer 927 8,502 Repairs - equipment 17,591 9,998 Restoration (main breaNs)90,184 101,380 Maintenance water system 126,208 309,200 8tilities 152,507 135,605 Water tap-ons 19,870 54,305 Purchase - water 7,969,587 7,720,802 Social Security and IMRF 98,269 99,365 Insurance and administrative expense 420,226 352,971 Contingent expense 4,844 8,098 Water system expense 12,841 32,901 Building and grounds maintenance 240,980 115,438 Pager service 1,233 558 Office supplies 3,288 4,573 Water sampling fees 6,643 6,033 Purchase chlorine 6,412 4,425 Gasoline and oil 8,755 8,985 Water billing charges 18,433 17,985 Dues and memberships 2,728 3,142 Postemployment benefit obligation (122,393) 69,282 Total water department 9,778,077 9,734,141 SE:ER DEPART0ENT Salary - clerical 50,864 46,427 Wages - general labor 93,959 82,518 Purchase - new equipment 77,618 - Material and supplies 11,544 14,805 Repair - equipment 8,666 20,666 Maintenance - sanitary sewers 32,073 153,585 Contingent expenses 1,000 - Garage rentals 28,350 28,350 Postemployment benefit obligation (36,517) 18,900 Total sewer department 267,557 365,251 TOTAL OPERATING E;PENSES 10,045,634 10,099,392 123 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS SENIOR CITI=EN CO0PLE; FUND CO0BINING STATE0ENT OF NET POSITION April 30, 2019 and 201 ASSETS Totals+eritage I +eritage II Eliminations 2019 201 CURRENT ASSETS Temporary cash investments 1,066,874 5,049,173 - 6,116,047 4,344,735 Prepaid insurance - - - - 2,481 Total current assets 1,066,874 5,049,173 - 6,116,047 4,347,216 RESTRICTED ASSETS Escrow deposits restricted for bond refunding - - - - - Temporary cash investments 226,402 2,086,121 - 2,312,523 2,470,361 Total restricted assets 226,402 2,086,121 - 2,312,523 2,470,361 PROPERTY, BUILDING, AND E4UIP0ENT, NET 5,310,521 5,979,326 - 11,289,847 12,066,801 OT+ER ASSETS Deposits 198,184 1,000 - 199,184 197,037 TOTAL ASSETS 6,801,981 13,115,620 - 19,917,601 19,081,415 LIABILITIES AND NET POSITION CURRENT LIABILITIES Accrued interest payable 5,102 23,832 - 28,934 30,345 Accounts payable - 80,483 - 80,483 95,175 Current portion of general obligation bonds 132,800 198,760 331,560 331,560 Due to other funds - - - - - Security deposits 129,950 281,059 - 411,009 393,090 Total current liabilities 267,852 584,134 - 851,986 850,170 LONGTER0 LIABILITIES General obligation bonds (net of unamortized discount, premium, and loss from extinguishment of debt)667,440 3,156,446 - 3,823,886 4,165,002 Total liabilities 935,292 3,740,580 - 4,675,872 5,015,172 NET POSITION Net investment in capital assets 4,510,281 2,624,120 - 7,134,401 7,570,239 8nrestricted 1,356,408 6,750,920 - 8,107,328 6,496,004 Total net position 5,866,689 9,375,040 - 15,241,729 14,066,243 TOTAL LIABILITIES AND NET POSITION 6,801,981 13,115,620 - 19,917,601 19,081,415 124 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS SENIOR CITI=EN CO0PLE; FUND CO0BINING STATE0ENT OF REVENUES, E;PENSES, AND C+ANGES IN NET POSITION For the Year Ended April 30, 2019 Zith Comparative Totals for the Year Ended April 30, 201 Totals +eritage I +eritage II Eliminations 2019 201 OPERATING REVENUES Rental income 1,543,072 3,181,145 - 4,724,217 4,634,440 Other income 15,294 53,985 - 69,279 62,662 Total operating revenues 1,558,366 3,235,130 - 4,793,496 4,697,102 OPERATING E;PENSES 997,503 1,753,848 - 2,751,351 2,709,190 Operating income before depreciation 560,863 1,481,282 - 2,042,145 1,987,912 DEPRECIATION 292,818 484,136 - 776,954 776,954 Operating income 268,045 997,146 - 1,265,191 1,210,958 NONOPERATING REVENUES E;PENSES AND TRANSFERS Bond issuance costs - - - - 43,872 Amortization of bond premium 6,717 2,839 - 9,556 (61,440) Transfers out - - - - (660,931) Transfers in - - - - 16,827 Bond interest (26,754) (72,508) - (99,262) (132,588) Total non-operating revenues (expenses) and transfers (20,037) (69,669) - (89,706) (794,260) NET INCO0E LOSS248,008 927,477 - 1,175,485 416,698 NET POSITION, BEGINNING OF YEAR 5,618,681 8,447,562 - 14,066,243 13,649,545 NET POSITION, END OF YEAR 5,866,689 9,375,040 - 15,241,728 14,066,243 125 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS SENIOR CITI=EN CO0PLE; FUND CO0BINING STATE0ENT OF CAS+ FLO:S For the Year Ended April 30, 2019 Zith Comparative Totals for the Year Ended April 30, 201 Totals+eritage I +eritage II Eliminations 2019 201 CAS+ FLO:S FRO0 OPERATING ACTIVITIES Operating income 268,045 997,146 - 1,265,191 1,210,958 AdMustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation 292,818 484,136 - 776,954 776,953 Effects of changes in operating assets and liabilities: Due to other funds - - - - 1 Prepaid insurance 831 1,650 - 2,481 277 Deposits (2,147) - - (2,147) 3,401,004 Accounts payable - (14,692) - (14,692) 33,231 Security deposits 2,470 15,449 - 17,919 (3,940) Net cash provided by operating activities 562,017 1,483,689 - 2,045,706 5,418,484 CAS+ FLO:S FRO0 NONCAPITAL FINANCING ACTIVITIES Operating transfers in - - - - 1,719,324 Operating transfers out - - - - (2,363,429) Net cash provided (used) by non-capital financing activities - - - - (644,105) CAS+ FLO:S FRO0 CAPITAL AND RELATED FINANCING ACTIVITIES Bond reimbursement - - - - 660,931 Payment to Bond Trustee - - - - (3,402,497) Principal payments on bonds payable (132,800) (198,759) - (331,559) (317,396) Interest paid on bonds (27,306) (73,367) - (100,673) (223,074) Net cash provided (used) by capital and related financing activities (160,106) (272,126) - (432,232) (3,282,036) NET INCREASE IN TE0PORARY CAS+ INVEST0ENTS 401,911 1,211,563 - 1,613,474 1,492,343 TE0PORARY CAS+ INVEST0ENTS, BEGINNING OF YEAR 891,365 5,923,731 - 6,815,096 5,322,753 TE0PORARY CAS+ INVEST0ENTS, END OF YEAR 1,293,276 7,135,294 - 8,428,570 6,815,096 126 VILLAGE OF ALSIP, ILLINOIS ENTERPRISE FUNDS SENIOR CITI=EN CO0PLE; FUND CO0BINING STATE0ENT OF OPERATING E;PENSES For the Year Ended April 30, 2019 Zith Comparative Totals for the Year Ended April 30, 201 Totals +eritage I +eritage II 2019 201 Salaries 280,064 347,209 627,273 622,051 Repairs and maintenance 200,691 563,129 763,820 727,220 Management fee 92,584 190,869 283,453 277,971 Administrative fee 60,000 100,000 160,000 160,000 Decorating 8,238 82,105 90,343 143,073 Office supplies 8,259 129 8,388 10,692 Telephone 22,791 - 22,791 31,974 8tilities 138,197 238,742 376,939 377,487 Insurance 33,000 71,878 104,878 102,000 Scavenger 35,098 40,786 75,884 57,275 Pest control 13,986 15,264 29,250 23,240 Contingent expense 13,357 1,996 15,353 16,560 Payroll taxes 22,137 21,538 43,675 44,769 8niforms - 1,248 1,248 1,185 8nion healthpension 69,101 78,955 148,056 113,693 TOTAL OPERATING E;PENSES 997,503 1,753,848 2,751,351 2,709,190 127 VILLAGE OF ALSIP, ILLINOIS TRUST FUNDS PENSION TRUST FUNDS CO0BINING STATE0ENT OF PLAN NET POSITION April 30, 2019 Zith Comparative Totals at April 30, 201 Pension Trust Police Firemen s Totals Pension Pension 2019 201 ASSETS Cash and cash equivalents 3,436,105 518,607 3,954,712 3,847,344 Receivables: Contributions - 17,446 17,446 16,144 Accrued interest 46,501 65,254 111,755 105,782 Investments, at fair value: 8.S. Government securities 4,421,670 7,863,636 12,285,306 9,067,717 Corporate bonds and other 2,282,184 5,170,887 7,453,071 7,924,371 Mutual funds 13,323,517 15,032,778 28,356,295 27,176,295 Total assets 23,509,977 28,668,608 52,178,585 48,137,653 LIABILITIES Accrued liabilities 13,282 - 13,282 14,621 Total liabilities 13,282 - 13,282 14,621 NET POSITION Net position restricted for pensions 23,496,695 28,668,608 52,165,303 48,123,032 128 VILLAGE OF ALSIP, ILLINOIS TRUST FUNDS PENSION TRUST FUNDS CO0BINING STATE0ENT OF C+ANGES IN PLAN NET POSITION For the Year Ended April, 30, 2019 Zith Comparative Totals for the Year Ended April, 30, 201 Police Firemen s Total Pension Pension 2019 201 ADDITIONS Contributions: Employer 3,950,636 2,340,228 6,290,864 4,443,311 Employee 352,823 310,996 663,819 647,528 Total contributions 4,303,459 2,651,224 6,954,683 5,090,839 Investment income: Net appreciation (depreciation) in fair value of investments 997,405 846,790 1,844,195 2,496,642 Dividends 216,679 161,566 378,245 383,359 Interest 250,395 322,036 572,431 484,242 Miscellaneous income - 87 87 69 Total investment income 1,464,479 1,330,479 2,794,958 3,364,312 Less investment expense 126,347 113,831 240,178 231,464 Net investment income 1,338,132 1,216,648 2,554,780 3,132,848 Total additions 5,641,591 3,867,872 9,509,463 8,223,687 DEDUCTIONS Retirement benefits 2,743,620 1,357,396 4,101,016 4,003,940 Duty disability benefits 171,281 641,936 813,217 884,983 Surviving spouse benefits 244,967 256,589 501,556 347,692 Miscellaneous 11,003 40,400 51,403 54,827 Total deductions 3,170,871 2,296,321 5,467,192 5,291,442 NET INCREASE 2,470,720 1,571,551 4,042,271 2,932,245 NET POSITION RESTRICTED FOR PENSION, BEGINNING OF YEAR 21,025,975 27,097,057 48,123,032 45,190,787 NET POSITION RESTRICTED FOR PENSION, END OF YEAR 23,496,695 28,668,608 52,165,303 48,123,032 Pension Trust 129 Other Supplemental Information (Unaudited) Insurance Policy Coverage Company Number Dates Type of Coverage and Description Limit Travelers 106098013 08-03-1720 Firefighters Pension 1,000,000 Travelers 106098016 08-03-1720 Police Pension 1,000,000 Travelers 105536704 02-20-1920 BlanNet Employee Crime Bond 250,000 Safeco 32S491955 04-21-1620 Notary Public Bond 9iolet M. Regan 5,000 Safeco 32S492379 03-28-1620 Notary Public Bond Sharon SzynalsNi 5,000 Liberty Mutual 404019882 12-16-1819 Public Official Bond .ent Oliven 150,000 Ohio Casualty 32S533138 41117-21 Notary Public Bond 5,000 BecNy L. Smith Ohio Casualty 32S533141 41117-21 Notary Public Bond 5,000 Tiffany M LitoborsNi Ohio Casualty 32S598561 12-10-1822 Notary Public Bond 5,000 Susan Petzel Ohio Casualty 32S598559 12-10-1822 Notary Public Bond 5,000 Erica O Donnell Ohio Casualty 32S598558 12-10-1818 Notary Public Bond 5,000 Alisa C. Geiss I.P.R.F. 121 5-1-1920 WorNers Compensation 3,000,000 +udson Insurance PEP00005004-02 05-01-1920 Property (9illage Sr. +ousing) General Liability Multiple Coverages Public Official LiabilityLaw Liability +udson Insurance PEA0005004-02 05-01-1920 Automobile 1,000,000 Allied World 5111-0150-01 05-01-1920 Primary Excess Liability 10,000,000 Westchester N11037203001 05-01-1920 Excess Liability 5,000,000 Lexington Ins. Co. 1747158905 7-1-1819 Property 97,121,799 EDPMobile EquipmentBoilerMachineryCyber Pollution Lexington Ins. Co. 1747158904 7-1-1920 Property 101,574,595 EDPMobile EquipmentBoilerMachineryCyber Pollution VILLAGE OF ALSIP, ILLIONIS SC+EDULE OF INSURANCE COVERAGE April 30, 2019 Unaudited 130 April Assessed valuation tax \ear510,949,666 491,782,726 470,501,161 493,231,381 580,856,755 563,629,340 Tax rates: *eneral .7210 .7905 .8300 .8465 1.0362 1.1492 Police pension .4205 .4745 .5363 .5470 .6331 .6195 Fire pension .2897 .3128 .3536 .3606 .3865 .4041 Road and bridge .1008 .1079 .1127 .1116 .1241 .1311 Debt service .1770 .1779 .1771 .1448 .0422 .0433 Total All Funds 1.7090 1.8635 2.0098 2.0105 2.2221 2.3472 Tax levies: *eneral 3,683,869 3,887,302 3,905,029 4,175,015 6,019,032 6,476,955 Police pension 2,148,485 2,333,349 2,523,500 2,697,970 3,677,478 3,491,761 Fire pension 1,480,436 1,538,355 1,663,655 1,778,678 2,244,907 2,277,789 Road and bridge 515,000 530,450 530,450 550,606 721,000 739,025 Debt service 904,156 874,884 833,407 714,015 244,901 243,851 Total All Funds 8,731,946 9,164,340 9,456,041 9,916,284 12,907,318 13,229,381 Collections:*eneral 3,529,671 3,600,282 3,712,576 4,007,161 5,656,784 3,026,161 Police pension 2,076,957 2,266,660 2,428,915 2,881,993 3,251,009 1,844,267 Fire pension 1,430,655 1,493,289 1,599,459 1,731,124 2,139,815 1,122,983 Road and bridge 505,035 506,485 504,305 528,470 680,608 345,287 Debt service 873,093 835,226 792,334 680,886 229,219 113,931 Total All Funds 8,415,411 8,701,942 9,037,589 9,829,634 11,957,435 6,452,629 Percentage of levies collected 96.4 95.0 95.6 99.1 92.6 48.8 Township levies 65,847 85,000 85,000 88,261 59,188 69,703 Collections 65,847 84,693 84,555 85,691 87,458 45,617 Percentage of collections 100.0 99.6 99.5 97.1 147.8 65.4 Special service areas levies 24,760 24,760 Collections 24,760 6,255 Percentage of collections 100.0 25.3 0.0 0.0 0.0 0.0 Tax increment levies 944,000 1,200,000 1,200,000 1,031,241 178,224 344,509 Collections 944,000 1,187,463 1,195,785 1,000,781 151,033 89,041 Percentage of collections 100.0 99.0 99.6 97.0 84.7 25.8 9I//AGE 2F A/SIP I//IN2IS PR2PERT< TA; /E9IES AND C2//ECTI2NS E;TENDED B< F8NDS AND ASSESSED 9A/8ATI2N 8NA8DITED 131 STATISTICAL SECTION (UNAUDITED) 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 says about the Village’s overall financial health Financial Trends: These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time ..............................................132-136 Revenue Capacity: These schedules contain information to help the reader assess the government’s most significant local revenue source, property tax ..................................................................................................137-140 Debt Capacity: These schedules present information to help assess the affordability of the government’s current level of outstanding debt and the government’s ability to issue additional debt in the future.......................................................................................141-145 Demographic and Economic Information: These schedules help the reader understand the environment within which the government’s financial activities take place...................................................................................................146-148 Operating Information: These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs.............................................................................................149-151 9LOODJHRI$OVLS1HW3RVLWLRQE\&RPSRQHQW/DVW7HQ)LVFDO<HDUV8QDXGLWHGDFFUXDOEDVLVRIDFFRXQWLQJ)LVFDO<HDU)< )< )< )< )< )< )< )< )< 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illage of Alsip Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) Total Taxable Total Estimated Ratio of Total Tax Equalized Direct Actual Assess Value to Levy Residential Farm Commercial Industrial Railroad Assessed Tax Taxable Total Estimated Year Property Valuation Property Property Valuation Value Rate (1)Value Actual Value 2018 $ 222,488,290 $ 5,797 $ 111,913,989 $ 228,475,378 $ 745,886 $ 563,629,340 2.3479 $ 1,690,888,020 33.33% 2017 232,869,609 5,866 113,301,299 234,052,018 627,963 580,856,755 2.2221 1,742,570,265 33.33% 2016 189,073,871 5,002 97,500,051 206,070,068 582,389 493,231,381 2.0105 1,479,694,143 33.33% 2015 182,379,631 4,852 91,773,307 195,750,079 593,292 470,501,161 2.0097 1,411,503,483 33.33% 2014 188,032,931 4,915 96,490,972 206,717,346 536,562 491,782,726 1.8282 1,475,348,178 33.33% 2013 194,134,661 5,130 93,158,534 223,122,716 528,636 510,949,677 1.7090 1,532,849,031 33.33% 2012 208,598,310 5,130 99,063,666 240,491,245 567,632 548,725,983 1.5157 1,646,177,949 33.33% 2011 228,931,604 5,130 106,227,344 263,068,560 592,229 598,824,867 1.3279 1,796,474,601 33.33% 2010 282,126,493 5,130 127,115,067 312,466,448 450,612 722,163,750 1.1011 2,166,491,250 33.33% 2009 272,370,975 5,130 137,556,491 339,553,971 449,827 749,936,394 0.9853 2,249,809,182 33.33% Source: Office of the County Clerk, Tax Extension Division Note:Property in the county is reassessed every three years. In general, property is assessed at 33% of actual value, but some other temporary tax incentives exist. In general, property is assessed at 33% of actual value, but some other temporary tax incentives exist. EAVs shown are less exemptions. (1) Total Direct Tax Rate reflects is the Village only rate. 137 Village of Alsip Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (Unaudited) Village of Alsip (1)Overlapping Rates Tax Levy Year Operating Public Safety Pensions Debt Service Total Village Direct Rate School Districts Cook County Cook County Forest Preserve Worth Township Alsip Park District(6) Alsip-Merrionette Park Public Library District(7)MWRD Total Other Levies(8) Total Direct and Overlapping 2018 1.280 1.024 0.044 2.348 8.500 (2)0.489 0.060 0.070 0.547 0.477 0.396 0.068 12.955 (2) 8.745 (3)13.200 (3) 9.332 (4)13.787 (4) 6.791 (5)11.246 (5) 2017 1.160 1.020 0.042 2.222 8.497 (2)0.496 0.062 0.067 0.518 0.458 0.402 0.097 12.819 (2) 8.703 (3)13.025 (3) 9.485 (4)13.807 (4) 6.887 (5)11.209 (5) 2016 0.958 0.908 0.145 2.011 9.536 (2)0.533 0.063 0.078 0.591 0.539 0.406 0.073 13.830 (2) 9.952 (3)14.246 (3) 10.561 (4)14.855 (4) 7.716 (5)12.010 (5) 2015 0.943 0.890 0.177 2.010 9.990 (2)0.552 0.069 0.078 0.615 0.563 0.426 0.110 14.413 (2) 10.171 (3)14.594 (3) 10.877 (4)15.300 (4) 7.950 (5)12.373 (5) 2014 0.872 0.787 0.169 1.828 9.462 (2)0.568 0.069 0.076 0.585 0.531 0.430 0.074 13.623 (2) 9.753 (3)13.914 (3) 10.387 (4)14.548 (4) 7.588 (5)11.749 (5) 2013 0.822 0.710 0.177 1.709 8.919 (2)0.560 0.069 0.073 0.552 0.499 0.417 0.100 12.898 (2) 8.975 (3)12.954 (3) 9.665 (4)13.644 (4) 7.151 (5)11.130 (5) 2012 0.755 0.597 0.164 1.516 8.158 (2)0.531 0.063 0.068 0.495 0.455 0.370 0.064 11.720 (2) 8.264 (3)11.826 (3) 8.805 (4)12.367 (4) 6.543 (5)10.105 (5) 2011 0.681 0.508 0.138 1.328 7.158 (2)0.462 0.058 0.060 0.453 0.404 0.320 0.082 10.325 (2) 7.310 (3)10.477 (3) 7.840 (4)11.007 (4) 5.808 (5)8.975 (5) 2010 0.496 0.413 0.192 1.101 5.867 (2)0.423 0.051 0.050 0.377 0.330 0.274 0.048 8.521 (2) 6.018 (3)8.672 (3) 6.422 (4)9.076 (4) 4.705 (5)7.359 (5) 2009 0.438 0.385 0.162 0.985 5.569 (2)0.394 0.049 0.048 0.357 0.308 0.261 0.066 8.037 (2) 5.786 (3)8.254 (3) 6.134 (4)8.602 (4) 4.525 (5)6.993 (5) (1) Operating consists of Corporate and Street & Bridge levies. Public Safety Pensions consists of Police and Fire pensions. (2) Community College District #524, Community High School District 218, & School District 126. (3) Community College District #524, Community High School District 218, & School District 125. (4) Community College District #524, Community High School District 218, & School District 130. (5) Community College District #524, Community High School District 218, & School District 128. (6) A small portion of the Village is represented by the Blue Island Park District or the Worth Park District instead of the Alsip Park District. (5) A small portion of the Village is represented by the William Leonard Public Library District or no library district instead of the Alsip-Merrionette Park Public Library District. (8) Includes the levies for South Cook County Mosquito Abatement District, General Assistance, Road and Bridge, and for the 2006 levy, the TB Sanitarium District. Does not include the small portion of the Village covered by the Garden Homes Sanitary District. Source: Cook County Clerk's Office 138 Village of Alsip Principal Property Taxpayers Most Recent Tax Year and Nine Years Ago (Unaudited) 2018 2009 Percentage Percentage of Total of Total Taxable Village Taxable Village Equalized Equalized Equalized Equalized Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Plymouth MWG $15,856,581 1 2.82% BRE Alpha Industrial 11,197,202 2 1.99% Cabot Industrial 11,178,691 3 1.99% Patriot Alsip 9,676,050 4 1.72%$43,315,312 2 5.78% Public Storage 9,466,229 5 1.68% WMI CP LLC 6,387,807 6 1.13% VIP Alsip/Alsip Partners 6,282,491 7 1.12% Gregory M Layer 6,105,063 8 1.08% 12161 S Central NZT 5,805,857 9 1.03% Griffith Foods 4,884,557 10 0.87% 20,873,395 10 2.78% NAI Hiffman 64,433,714 1 8.59% Manheim Services Corp 34,934,126 3 4.66% Crane & Norcross 32,815,641 5 4.38% Coca Cola 33,573,078 4 4.48% Home Depot 23,285,945 7 3.11% CBRE Investors 24,297,781 6 3.24% First Industrial LP 22,922,561 8 3.06% Greif, Inc. 22,766,212 9 3.04% $86,840,527 15.43%$323,217,765 43.10% Source: Office of the County Clerk, Tax Extension Division Every effort has been made to seek out and report the largest taxpayers. Many taxpayers own or maintain multiple parcels under various names and it is possible that some parcels and their valuations may have been omitted or that properties with similar names were incorrectly aggregated. 139 Village of Alsip Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Collected within the Total Collections to Date Fiscal Year of the Levy Collections in Through 4/30/19 Levy Year Tax Levied Amount Collected Percentage of Levy Subsequent Years Amount Collected Percentage of Levy 2018 $ 13,229,381 $ 6,452,629 48.77%n/a $ 6,452,629 48.77% 2017 12,907,318 7,128,474 55.23%n/a 11,957,435 92.64% 2016 9,916,284 n/a n/a n/a 9,829,634 99.13% 2015 9,425,226 n/a n/a n/a 9,336,514 99.06% 2014 8,973,796 n/a n/a n/a 8,819,731 98.28% 2013 8,715,535 n/a n/a n/a 8,567,144 98.30% 2012 8,303,734 n/a n/a n/a 8,079,220 97.30% 2011 7,935,015 n/a n/a n/a 7,698,382 97.02% 2010 7,946,440 n/a n/a n/a 7,606,051 95.72% 2009 7,377,759 n/a n/a n/a 6,955,498 94.28% Source: Cook County Clerk's Tax Extension Office and the Cook County Treasurer Property is assessed at 33 1/3 % of actual value by State Statute. Includes levies for general government (Corporate), debt service, police pension, fire pension, and street & bridge. Excludes municipal share of township road and bridge levy, which is not under the levy authority or control of the Village. Excludes tax increment financing (TIF) receipts, which are not levied for. Cook County Treasurer's Office does not have a report which shows levies collected within the fiscal year of the levies. Therefore, this information is not available (n/a) for tax levy years 2014 and prior, but will be on a going forward basis. 140 Village of Alsip Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) Fiscal Year General Obligation Bonds (1)Installment Notes Other Long-Term Liabilities General Obligation Bonds Installment Notes Total Outstanding Debt Total Outstanding Debt as a Percentage of Personal Income (2)Population(2)Debt per Capita Governmental Activities Business-Type Activities FY19 $3,766,775 $ 728,355 $ - $ 9,231,302 $ 2,999,262 $ 16,725,694 n/a 18,880 886 FY18 4,159,409 949,176 - 10,020,515 2,996,879 18,125,979 n/a 19,079 950 FY17 9,468,674 1,193,631 244,408 12,853,120 2,407,648 26,167,481 5.76%19,158 1,366 FY16 6,847,209 1,482,771 244,408 12,701,487 2,543,857 23,819,732 5.24%19,346 1,231 FY15 8,316,460 1,583,294 244,408 12,191,610 2,678,379 25,014,151 5.45%19,427 1,288 FY14 8,036,624 583,544 244,408 11,555,665 2,802,592 23,222,833 5.04%19,452 1,194 FY13 8,996,541 669,470 244,408 11,912,777 2,690,581 24,513,777 5.18%19,411 1,263 FY12 10,748,789 322,365 244,408 12,260,725 - 23,576,287 4.82%19,346 1,219 FY11 12,510,689 166,301 244,410 13,652,938 - 26,574,338 5.74%19,289 1,378 FY10 14,524,508 312,558 244,410 15,035,617 - 30,117,093 n/a 19,301 1,560 The Village has had no redevelopment bonds, sales tax increment bonds, revenue bonds, TIF Bonds, TANs, COPs, special assessment bonds, term loans, or capital leases in any of the last 10 years. (1) Presented net of original issuance discounts and premiums. (2) Personal Income and Population are disclosed in the subsequent Demographic and Economic Statistics table. Source: The Village's audited financial statements and the U.S. Census * Between FY18 and FY17 the Village of Alsip noted a decrease of $8 million of total Outstanding Debt, as a result of repayment of bonds refunded based on 2017 issuance within FY18 instead of FY17. 141 Village of Alsip Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) Fiscal Year Ended April 30 General Obligation Bonds (1) Less: Amounts Available in Debt Service Fund (2)Total Percentage of Estimated Actual Taxable Value of Property (3) Per Capita (4) FY19 $ 12,998,077 $ 400,971 $ 12,597,106 0.74%n/a FY18 14,179,924 1,150,495 13,029,429 0.75%n/a FY17 21,360,000 5,692,061 15,667,939 1.06%818 FY16 16,150,000 3,198,770 12,951,230 0.92%669 FY15 19,830,000 4,490,883 15,339,117 1.04%790 FY14 19,494,994 3,048,915 16,446,079 1.07%845 FY13 21,206,019 3,141,831 18,064,188 1.10%931 FY12 23,367,427 4,691,565 18,675,862 1.04%965 FY11 26,632,798 7,179,964 19,452,834 0.90%1,008 FY10 29,872,198 8,893,389 20,978,809 0.93%1,087 Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements (1) This is the general bonded debt of both governmental and business-type activities, net of original issuance discounts and premiums. (2) This is the amount restricted for debt service principal payments. (3) See the Schedule of Assessed Value and the Estimated Actual Value of Taxable Property for property value data. (4) Population data can be found in the Schedule of Demographic and Economic Statistics. 142 Village of Alsip Direct and Overlapping Governmental Activities Debt (Unaudited) As of April 30, 2019 Government Unit: Debt Outstanding 2018 Tax Year EAV of Taxing Body Percentage of Village's EAV within Taxing Body's EAV(1) Estimated Percentage Applicable(1) Amount Applicable to Primary Government Alsip Park District $ 2,810,000 $ 571,564,931 98.21%96.85% $ 2,721,508 Worth Park District 149,265 174,782,095 1.79%5.76%8,595 Alsip-Merrionette Park Public Library District(2) 1,645,000 614,143,657 99.48%91.30%1,501,906 William Leonard Public Library District(2) - 43,405,033 0.40%5.24% - Community High School District 218 51,423,317 2,299,807,846 100.00%24.51%12,602,657 Cook County 3,085,186,750 158,584,064,770 100.00%0.36%10,965,173 Cook County Forest Preserve 101,200,000 158,584,064,770 100.00%0.36%359,679 Garden Homes Sanitary District - 13,891,438 0.45%18.17% - Metropolitan Water Reclamation District of Greater Chicago (MWRD) 2,560,241,000 155,788,046,903 100.00%0.36%9,262,758 Moraine Valley Community College District 524 134,410,000 10,129,709,671 100.00%5.56%7,478,736 School District 125 3,943,492 119,430,543 6.60%31.13%1,227,632 School District 126 - 495,354,638 66.79%75.99% - School District 128 3,400,000 308,366,909 5.07%9.26%314,931 School District 130 5,667,712 525,550,317 21.55%23.11%1,309,879 South Cook County Mosquito Abatement District - 18,206,913,581 100.00%3.10% - Worth Township - 3,238,899,539 100.00%17.40% - Subtotal, overlapping debt $ 509,697,996,641 47,753,454 Village of Alsip direct debt $ 16,725,694 563,629,340 100.00%100.00%16,725,694 Total direct and overlapping debt $ 510,261,625,981 $ 64,479,148 (1) The Estimated Percentage Applicable is determined by the ratio of equalized assessed valuation (EAV) subject to taxation in the Village to the EAV of property subject to taxation in the overlapping unit. The ratio of EAV subject to taxation in the Village is the product of the Village's EAV and the percentage of the Village's EAV within the overlapping unit's EAV. (2) Adding library districts do not equal all of the Village's EAV, as part of the Village is not covered by a library district. Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the Village. This schedule estimates the outstanding debt of those overlapping governments that is borne by the property taxpayers of the Village of Alsip. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Sources: Cook County Clerk's Office, Municipal Securities Rulemaking Board's Electronic Municipal Market Access (EMMA) System, and Bloomberg Financial. 143 Village of Alsip Legal Debt Margin Information Last Ten Fiscal Years (Unaudited) The Village passed a home rule referendum on November 6, 1990. Under the provisions of the Illinois Constitution passed in 1970, there is no legal limit for home rule municipalities, except as set by the General Assembly. 144 Village of Alsip Pledged-Revenue Coverage (Unaudited) April 30, 2019 The Village of Alsip has no revenue bonds and has not had any within the last 10 years. 145 Village of Alsip Demographic and Economic Statistics Last Ten Years (Unaudited) Calendar Year Population (1) Median Age (1) Per Capita Income (1)Personal Income Total School Enrollment (1) Unemployment Rate (2) 2018 18,880 n/a n/a n/a n/a 4.3% 2017 19,079 n/a n/a n/a n/a 6.0% 2016 19,158 33.4 $ 23,696 $ 453,967,968 5,212 6.8% 2015 19,346 33.8 23,486 454,360,156 5,253 6.9% 2014 19,427 34.0 23,643 459,312,561 5,297 8.3% 2013 19,452 35.9 23,671 460,448,292 5,176 10.3% 2012 19,411 34.5 24,393 473,492,523 4,988 10.7% 2011 19,346 36.4 25,286 489,182,956 4,934 12.0% 2010 19,289 35.4 24,008 463,090,312 5,299 12.7% 2009 19,301 34.3 n/a n/a 5,228 n/a Sources: (1) U.S. Census Bureau. The population estimates are as of July 1. Note: the official 2010 census number is 19,277. See subsequent tables for more detailed educational information from the U.S. Census. (2) IL Dept. of Employment Security does not officially estimate and publish rates for communities under 25,000 population. What is shown is IDES' unofficial, unpublished estimates, which come out in early April for the prior calendar year. 146 Village of Alsip Most Recent Educational Demographics and Five Years Prior (Unaudited) 2017 2012 Total Male Female Total Male Female Population 18 to 24 years 1,916 1,034 882 1,968 774 1,194 Less than high school graduate 11.0% 13.9% 7.5% 7.4% 11.6% 4.6% High school graduate (includes equivalency) 18.4% 27.2% 8.2% 29.8% 28.4% 30.7% Some college or associate's degree 58.7% 45.8% 73.7% 52.5% 54.5% 51.2% Bachelor's degree or higher 12.0% 13.1% 10.7% 10.4% 5.4% 13.6% Population 25 years and over 13,104 6,233 6,871 12,412 5,961 6,451 Less than 9th grade 4.4% 4.5% 4.3% 4.2% 5.0% 3.4% 9th to 12th grade, no diploma 8.8% 8.0% 9.5% 8.3% 8.9% 7.7% High school graduate (includes equivalency) 34.8% 32.3% 37.0% 35.0%34.7% 35.3% Some college, no degree 28.6% 33.0% 24.6% 28.6% 29.5% 27.8% Associate's degree 6.4% 6.7% 6.1% 7.8% 6.9% 8.7% Bachelor's degree 12.3% 12.5% 12.2% 11.9% 12.5% 11.3% Graduate or professional degree 4.7% 2.9% 6.3% 4.2% 2.4% 5.8% Percent high school graduate or higher 86.8% 87.5% 86.2% 87.5% 86.0%88.9% Percent bachelor's degree or higher 17.0% 15.5% 18.4% 16.1% 14.9% 17.1% Population 25 to 34 years 2,944 1,514 1,430 2,839 1,567 1,272 High school graduate or higher 93.9% 93.9% 93.9% 89.1% 89.6% 88.5% Bachelor's degree or higher 27.5% 25.6% 29.5% 26.8% 16.3% 39.6% Population 35 to 44 years 2,198 1,040 1,158 2,577 1,323 1,254 High school graduate or higher 87.8% 84.0% 91.2% 93.8% 93.8% 93.9% Bachelor's degree or higher 17.2% 14.9% 19.3% 19.6% 24.0% 15.0% Population 45 to 64 years 5,052 2,339 2,713 4,464 1,975 2,489 High school graduate or higher 90.0% 91.5% 88.7% 89.6% 85.8% 92.6% Bachelor's degree or higher 14.3% 10.9% 17.2% 11.5% 13.2% 10.2% Population 65 years and over 2,910 1,340 1,570 2,532 1,096 1,436 High school graduate or higher 73.3% 75.7% 71.2% 75.8% 72.1% 78.6% Bachelor's degree or higher 11.1% 12.4% 9.9% 8.5% 5.2% 11.0% Poverty Rate Less than high school graduate 16.5% 16.1% 16.8% 14.7% 10.5% 19.7% High school graduate (includes equivalency) 10.0% 8.4% 11.2% 6.1% 4.4% 7.6% Some college or associate's degree 9.0% 7.6% 10.6% 9.8% 15.0% 5.0% Bachelor's degree or higher 6.8% 11.4% 3.2% 2.4% 1.3% 3.3% Median Earnings Population 25 years and over with earnings 36,759 41,833 34,304 37,984 45,709 31,774 Less than high school graduate 28,021 31,882 18,345 24,107 40,000 14,531 High school graduate (includes equivalency) 31,563 35,357 26,222 33,248 41,074 28,601 Some college or associate's degree 41,404 44,938 36,458 35,021 45,445 30,261 Bachelor's degree 43,947 47,780 42,102 55,265 56,629 54,477 Graduate or professional degree 55,500 65,818 51,510 61,639 62,750 61,121 Source: US Census Estimates Note: Median earnings are in the inflation adjusted year listed above 147 Village of Alsip Principal Employers Current Audited Fiscal Year and Nine Years Prior (Unaudited) FY19 FY10 Percentage Percentage of Total of Total Village Village Employer Product/Business Employees Rank Employment(3)Employees Rank Employment(3) Anixter, Inc Electric Cable & Wire, Components& Assemblies & Distribution 800 1 8.53%264 4 N/A American Heritage Protective Services Security Guard Services 500 2 5.33%500 1 N/A Griffith Foods, Inc.Food Seasonings 400 3 4.26%400 2 N/A Coca-Cola Refreshments USA, Inc.Soft Drinks 370 4 3.94%350 3 N/A Morrison Security Corp.Security Guard Services 200 5 2.13% Sertoma Centre, Inc.Contract Packaging & Assembly 200 5 2.13%200 5 N/A GC America, Inc.Dental Resins 180 6 1.92%180 6 N/A Accord Carton Co.Folding Cartons 175 7 1.87% Kocsis Bros. Machine & Kocsis Technologies Machine Shop and Hydraulic Starters, Accumulators, & Cylinders 170 8 1.81%155 8 N/A Donson Machine Co Precision Machining Job Shop 160 9 1.71% Doubletree Hotel Chicago - Alsip Commercial Hotel 150 N/A Labriola Baking Co., LLC Bakery Products 150 N/A Polmax, LLC Transportation & Logistics 150 10 1.60% J & J Snack Foods Fresh & Frozen Breads & Pastries 150 10 1.60% M & K Truck Centers Trucks & Parts Sales, Service & Leasing 125 1.33% Hayes Beer Distributing Co Beer Distribution 120 1.28% Futuremark Alsip Recycled Content Coated Papers Berry Plastics Corp.Plastic injection molded & termoformed lids, containers, and tamper resistant packaging 500 1 N/A Van's, Inc.Wholesaler of fresh flowers, foliage, floral supplies 210 7 N/A Madison Paper Paper 171 7 N/A 3,700 38.17%3,230 N/A (1) FY07 Is Approximate as of July 30, 2007. (2) FY07 combined the two Coca-Cola locations. (3) IL Dept. of Employment Security does not officially estimate and publish rates for communities under 25,000 population. The divisor uses IDES' unofficial, unpublished estimates, which start in 2010 and come out in early April for the prior calendar year. Sources: The 20XX Illinois Manufacturers Directory, the 20XX Illinois Services Directory, the IL Dept. of Employment Security, and the Village. ("XX" above is the same year as the fiscal year. Example, data from the 2017 directories is used in the FY17 column.) 148 Village of Alsip Full-time Equivalent Employees by Function Last Ten Fiscal Years (Unaudited) Full-time Equivalent Employees as of April 30 FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 Function General Government Administrative 1.50 1.50 1.00 2.0 ------ Building Administrative 0.40 0.40 1.00 1.0 ------ Clerical 2.00 2.00 0.00 0.0 ------ Health 1.00 1.00 0.00 0.0 ------ Clerk's Office Administrative 1.00 1.00 0.00 0.0 ------ Clerical 2.00 3.00 3.00 3.0 ------ Finance, I/T, and H/R 5.00 5.00 5.75 5.5 ------ Village Properties & Senior Housing Administrative 0.60 0.60 1.00 1.0 ------ Clerical 0.50 0.50 0.50 0.5 ------ Maintenance 1.00 1.00 1.00 1.0 ------ Public Safety Civil Defense 0.20 0.20 0.20 0.2 ------ Police Non-Represented Officers 4.00 4.00 4.00 4.0 ------ Sgts. & Patrol Officers 38.00 35.00 34.00 37.0 ------ Community Service Officers (CSOs) 2.00 1.00 1.00 1.5 ------ Radio Communications Officers 0.00 0.00 8.25 8.0 ------ Crossing Guards 4.00 4.00 4.00 4.0 ------ Clerical 3.00 3.00 3.00 3.0 ------ Fire/EMA Non-Represented Officers 2.00 2.00 2.00 2.0 ------ Represented Firefighters 37.00 33.00 33.00 33.0 ------ Other Non-Represented 2.50 2.00 1.75 1.8 ------ Public Works Administrative 1.00 1.00 1.00 1.0 ------ Clerical 1.00 1.00 1.00 1.0 ------ Operators, Foremen, and Mechanics 11.50 11.00 11.50 12.0 ------ Water Administrative 1.00 1.00 1.00 1.0 ------ Clerical 2.00 2.00 2.00 2.0 ------ Operators and Foremen 5.00 5.00 5.00 5.0 ------ Total 129.20 121.20 125.95 130.5 ------ 149 Village of Alsip Operating Indicators by Function Last Ten Years (Unaudited) Fiscal Year FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 General Government: Number of Building Permits Issued 1,168 1,152 1,110 2,915 3,063 2,835 3,083 2,627 2,330 2,470 Cost of Construction of All Permits $ 96,995,133 $ 48,914,871 $ 20,634,520 $ 13,464,234 $ 31,489,896 $ 32,882,645 $ 40,490,328 $ 31,385,214 $ 13,296,385 $ 25,180,465 Public Safety: Police (1): 911 Calls Police Incidents 33,706 31,865 34,204 12,080 17,645 20,093 17,808 15,202 14,032 15,885 Number of State Charges Filed 784 1,227 1,126 523 852 1,128 1,125 899 945 1,517 Number of Traffic Violations 2,189 3,009 2,515 1,138 1,689 2,961 3,005 2,078 1,829 3,076 Number of Parking Violations 3,746 4,007 2,605 1,006 2,532 2,876 3,454 3,109 2,677 4,108 Number of School Crossing Guards 6 6 6 5 5 5 5 5 5 5 Number of Code Violations 983 1,007 669 348 664 558 811 533 576 664 Fire: 911 Calls Fire/Emergency Incidents 3,676 3,329 3,244 3,216 3,206 3,378 3,021 3,129 3,269 3,001 Number of Fire Emergency Responses 1,255 1,149 55 63 42 57 42 51 n/a n/a Number of Ambulance Responses 2,421 2,180 2,091 2,123 2,015 1,984 1,916 1,872 1,420 1,675 Number of Ambulance Transports 1,890 1,822 1,654 1,663 1,688 1,782 1,697 1,629 n/a n/a Number of Fires Extinguished 72 53 55 63 42 57 42 51 n/a n/a Number of Fire Inspections(3)2,475 2,635 1,603 1,603 928 1,250 478 n/a n/a n/a Number of Mutual Aid Calls To Other Areas 248 287 292 306 359 401 271 363 n/a n/a Public Works & Water: Forestry: Shade Trees Planted(2)35 51 11 139 391 Shade Trees Removed 56 21 56 37 534 323 45 47 39 12 Shade Trees Trimmed 809 69 9 28 37 2 8 106 30 Stumps removed 6 49 60 76 523 323 42 47 27 53 Wastewater: Sewer Lines Blocked/Cleaned 23 27 36 110 333 419 274 125 361 147 Emergency calls 11 13 25 16 32 41 35 44 40 27 Water: Total Gallons Purchased/Pumped Master Meter (million gallons) 2,024.74 1,979.72 2,047.56 1,954.58 2,101.31 2,341.39 2,423.87 2,331.85 2,410.60 2,329.28 Total Gallons Sold To Other Municipalities (million gallons) 928.72 952.89 958.28 1,002.25 1,025.02 1,080.44 1,115.49 1,027.40 1,061.46 1,124.71 Total Gallons Sold To Top 3 Industrial Customers (million gallons) 244.49 244.49 296.10 Average Daily Consumption (thousand gallons) 5,111.00 5,103 5,158 5,355 5,757 6,415 6,641 6,389 6,604 6,382 Peak Daily Consumption (thousand gallons) 6,568.00 7,336 7,452 8,140 7,252 11,754 10,119 10,053 Number of metered accounts 5,516.00 5,580 5,533 5,493 5,480 5,470 5,458 5,448 5,435 5,433 New Connections (tap-ons) 2.00 5 3 13 10 12 10 13 3 8 Number of Fire Lines 203.00 201 198 195 191 185 178 168 165 160 Number of Water Main Breaks 27.00 41 43 39 36 49 n/a n/a n/a n/a Senior Housing Units % Occupation Rate 94.7%97.1%98.6%74.6%61.0%8.5%25.4%30.5%-30.5%40.7% Sources: Various Village Departments (1) Police records through FY16 are on calendar year. The FY16 column, is calendar year 2016 through June 30. The FYXX column is calendar year 20XX. Starting with FY17 they are on a fiscal year. (2) Shade trees were to be planted April 2017 but due to weather they were not planted until May 2017. (3) Number of Fire Inspections is from Jan. to Dec. 2016; Not on a fiscal year basis. 150 Village of Alsip Capital Asset Statistics by Function Last Ten Fiscal Years (Unaudited) Fiscal Year FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 General Government: Number of General Government Buildings(1)1 1 1 1 1 1 1 1 1 1 Public Safety: Number of Police Stations(1)1 1 1 1 1 1 1 1 1 1 Number of Police Vehicles 35 32 32 33 34 30 28 26 26 26 Number of Fire Stations 2 2 2 2 2 2 2 2 2 2 Number of Aerial Ladder Trucks 1 1 1 1 1 1 1 1 1 1 Number of Engines (Pumper)3 3 3 3 3 4 4 4 4 4 Number of Ambulances 3 3 3 3 3 3 3 3 3 3 Number of Other Fire Vehicles 6 6 6 6 6 6 6 5 5 5 Public Works & Water: Streets Number of Public Works Buildings 1 1 1 1 1 1 1 1 1 1 Miles of Streets 55 55 55 55 55 55 55 55 55 55 Number of Street Lights 1,255 1,255 1,255 1,255 1,255 1,255 1,255 1,255 1,255 1,255 Water Miles of Water Mains 90 90 90 90 90 90 90 90 90 90 Number of Fire Hydrants 1,318 1,318 1,315 1,315 1,315 1,315 1,315 1,315 1,313 1,313 Number of Pumping Stations 2 2 2 2 2 2 2 1 1 1 Number of Water Towers 2 2 2 2 2 2 2 2 2 2 Storage Capacity (Thousands of Gallons)6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 Wastewater Miles of Sanitary Sewers 59 59 59 59 59 59 59 59 59 59 Number of Lift Stations 3 3 3 3 3 3 3 3 3 3 Miles of Storm Sewers 51 51 51 51 51 51 51 51 51 Senior Housing Number of Housing Buildings 29 29 29 29 29 29 29 29 29 29 Number of Housing Units 512 512 512 512 512 512 512 512 512 512 Number of Senior Complex Non-Housing Buildings 4 4 4 4 4 4 4 4 4 4 (1) General Government and the Police share the same building. Sources: Various Village Departments 151