===== PDF PAGE 1 ===== [Extraction: OCR (rendered-page OCR)] 9. City I WEST CHICAGO WHERE HISTORY & PROGRESS MEET FINANCE COMMITTEE WEDNESDAY, JUNE 9, 2021! 6:00 P.M. - COMMITTEE ROOM A AGENDA . Call to Order, Roll Call, and Establishment of a Quorum Approval of Minutes A. Finance Committee Meeting Minutes of September 22, 2020 B. Finance Committee Meeting Minutes of December 10, 2020 Public Participation / Presentations A. 2019 Audit Selection of Committee Chairman and Vice Chairman Items for Consent A. Resolution No. 21-R-0046 — First Amendment to the IGA with Crest Hill Investment LLC B. Resolution No. 21-R-0047 — Updated EIA with OSI Industries, LLC Items for Discussion Unfinished Business New Business Reports from Staff 10. Executive Session (if needed) 11. Adjournment 1 Rescheduled from June 24, 2021 475 Main Street T (630) 293-2200 Ruben Pineda West Chicago, Illinois F (630) 293-3028 60185 www.westchicago.org MAYOR Nancy M. Smith CITY CLERK Michael L. Guttman CITY ADMINISTRATOR ===== PDF PAGE 2 ===== [Extraction: OCR (rendered-page OCR)] DRAFT MINUTES- Pending Approval MINUTES FINANCE COMMITTEE September 22, 2020 1. Call to Order, Roll Call, and Establishment of a Quorum — Mayor Pineda has determined that in-person meetings are not practical and prudent. The meeting was called to order at 6:00 P.M. Roll call found Aldermen Chassee, Ferguson, Ligino-Kubinski, Sheahan, Stout and Swiatek present remotely. Alderman Dimas was absent. Staff in attendance: City Administrator Michael Guttman, Administrative Services Director Linda Martin, and Assistant Administrative Services Director Nikki Giles. 2. Approval of Minutes A. Finance Committee Meeting of December 12, 2019. Alderman Swiatek moved and Alderman Ferguson seconded a motion to approve the minutes. Voting Aye: Aldermen Chassee, Ferguson, Ligino-Kubinski, Sheahan, Stout and Swiatek. Voting Nay: 0. Absent: Alderman Dimas. Motion Carried 3. Items for Consent A. Ordinance No. 20-O-0020-Third Quarter Budget Amendment B. Ordinance No. 20-O-0021-Updating the Fair Market Value of Residential, Commercial and Industrial Land — Subdivision Regulation C. Resolution No. 20-R-0052-Partial Property Tax Abatement — Greco/DeRosa Investment Group Dz. E. Resolution No. 20-R-0053-Economic Incentives — Greco/DeRosa Investment Group Resolution No 20-R-0023-Amending the City’s Loss Prevention Policy Alderman Swiatek moved and Alderman Stout seconded a motion to approve the Consent Agenda. Voting Aye: Aldermen Chassee, Ferguson, Ligino-Kubinski, Sheahan, Stout and Swiatek. Voting Nay: 0. Absent: Alderman Dimas. Motion Carried 4. Items for Discussion - None 5. Unfinished Business - None 6. New Business - None 7. Reports from Staff — None 8. Executive Session (if needed) — None Page | ===== PDF PAGE 3 ===== [Extraction: OCR (rendered-page OCR)] DRAFT MINUTES- Pending Approval 9. Adjournment Alderman Stout moved and Alderman Ferguson seconded a motion to adjourn at 6:05 p.m. Voting Aye: Aldermen Chassee, Ferguson, Sheahan, Stout and Swiatek, Voting Nay: 0. Absent: Alderman Dimas. Respectfully submitted, Jacki Sterw Page 2 ===== PDF PAGE 4 ===== [Extraction: OCR (rendered-page OCR)] DRAFT MINUTES- Pending Approval MINUTES FINANCE COMMITTEE December 10, 2020 1. Call to Order, Roll Call, and Establishment of a Quorum — Mayor Pineda has determined that in-person meetings are not practical and prudent. The meeting was called to order at 6:00 P.M. via Zoom. Roll call found Aldermen Dimas, Ferguson, Ligino-Kubinski and Stout present remotely. Alderman Chasee, Sheahan, and Swiatek were absent. Staff in attendance: City Administrator Michael Guttman, Administrative Services Director Linda Martin, and Assistant Administrative Services Director Nikki Giles. 2. Items for Consent A. Ordinance No. 20-0-0026-Fourth Quarter Budget Amendment B. Ordinance No. 20-O-0027-2021 Draft Budget Alderman Stout moved and Alderman Ligino-Kubinski seconded a motion to approve the Consent Agenda. Voting Aye: Aldermen Stout, Ligino-Kubinski, Dimas, Ferguson. Voting Nay: 0. Absent: Alderman Chassee, Sheahan, and Swiatek. Motion Carried 3. Items for Discussion - None 4. Unfinished Business - None 5. New Business - None 6. Reports from Staff — None 7. Executive Session (if needed) — None 8. Adjournment Alderman Stout moved and Alderman Dimas seconded a motion to adjourn at 6:05 p.m. Voting Aye: Aldermen Stout, Dimas, Ferguson, Lugino-Kubinski, Voting Nay: 0. Absent: Alderman Chassee, Sheahan, and Swiatek. Respectfully submitted, Jacki Sterw Page | ===== PDF PAGE 5 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 ===== PDF PAGE 6 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 Prepared by Linda Martin Director of Administrative Services ===== PDF PAGE 7 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Principal Officials 1 Organization Chart 2 Letter of Transmittal 3 - 7 Certificate of Achievement for Excellence in Financial Reporting 8 FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 9 - 10 MANAGEMENT’S DISCUSSION AND ANALYSIS 11 - 22 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 23 - 24 Statement of Activities 25 - 26 Fund Financial Statements Balance Sheet – Governmental Funds 27 - 28 Reconciliation of Total Governmental Fund Balance to the Statement of Net Position – Governmental Activities 29 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 30 - 31 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities – Governmental Activities 32 Statement of Net Position – Proprietary Funds 33 - 34 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 35 Statement of Cash Flows – Proprietary 36 Statement of Fiduciary Net Position 37 Statement of Changes in Fiduciary Net Position 38 Notes to Financial Statements 39 - 78 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions Illinois Municipal Retirement Fund 79 Police Pension Fund 80 Schedule of Changes in the Employer’s Net Pension Liability Illinois Municipal Retirement Fund 81 - 82 Police Pension Fund 83 - 84 Schedule of Investment Returns Police Pension Fund 85 ===== PDF PAGE 8 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TABLE OF CONTENTS PAGE FINANCIAL SECTION - Continued REQUIRED SUPPLEMENTARY INFORMATION - Continued Schedule of Changes in the Employer’s Total OPEB Liability Retiree Benefits Plan 86 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual General Fund 87 Public Benefit – Special Revenue Fund 88 TIF Special Tax Allocation #1 – Special Revenue Fund 89 OTHER SUPPLEMENTARY INFORMATION Schedule of Revenues – Budget and Actual General Fund 90 - 91 Schedule of Expenditures – Budget and Actual General Fund 92 Schedule of Detailed Expenditures – Budget and Actual General Fund 93 - 100 Schedule of Expenditures – Budget and Actual TIF Special Tax Allocation #1 – Special Revenue Fund 101 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Capital Improvement - Capital Projects Fund 102 Schedule of Expenditures – Budget and Actual Capital Improvement - Capital Projects Fund 103 Combining Balance Sheet – Nonmajor Governmental Funds 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds 105 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual TIF Special Tax Allocation #2 – Special Revenue Fund 106 Capital Equipment Replacement – Capital Projects Fund 107 Waterworks – Enterprise Fund 108 Schedule of Operating Expenses – Budget and Actual Waterworks – Enterprise Fund 109 - 111 Schedule of Revenues, Expenses and Changes in Net Position – Budget and Actual Sewerage – Enterprise Fund 112 Schedule of Operating Expenses – Budget and Actual Sewerage – Enterprise Fund 113 - 115 Schedule of Revenues, Expenses and Changes in Net Position – Budget and Actual Commuter Parking – Enterprise Fund 116 Schedule of Operating Expenses – Budget and Actual Commuter Parking – Enterprise Fund 117 ===== PDF PAGE 9 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TABLE OF CONTENTS PAGE OTHER SUPPLEMENTARY INFORMATION - Continued Consolidated Year-End Financial Report 118 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards 119 - 120 SUPPLEMENTAL SCHEDULES Long-Term Debt Requirements IEPA Waterworks Revolving Loan 121 STATISTICAL SECTION (Unaudited) Net Position by Component – Last Ten Fiscal Years 122 - 123 Changes in Net Position – Last Ten Fiscal Years 124 - 125 Fund Balances of Governmental Funds – Last Ten Fiscal Years 126 - 127 General Governmental Revenues by Sources – Last Ten Fiscal Years 128 - 129 General Governmental Expenditures by Function – Last Ten Fiscal Years 130 - 131 Changes in Fund Balances for Governmental Funds – Last Ten Fiscal Years 132 - 133 Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years 134 - 135 Direct and Overlapping Property Tax Rates – Last Ten Tax Levy Years 136 - 137 Principal Property Tax Payers – Current Fiscal Year and Nine Fiscal Years Ago 138 Property Tax Levies and Collections – Last Ten Fiscal Years 139 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 140 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years 141 Schedule of Direct and Overlapping Governmental Activities Debt 142 Schedule of Legal Debt Margin 143 Pledged Revenue Coverage – Last Ten Fiscal Years 144 Demographic and Economic Statistics – Last Ten Fiscal Years 145 Principal Employers – Current Fiscal Year and Nine Fiscal Years Ago 146 Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years 147 - 148 Operating Indicators by Function/Program – Last Ten Fiscal Years 149 - 150 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 151 - 152 ===== PDF PAGE 10 ===== [Extraction: embedded PDF text] INTRODUCTORY SECTION This section includes miscellaneous data regarding the City of West Chicago including: • List of Principal Officials • Organizational Chart • Letter of Transmittal • GFOA Certificate of Achievement for Excellence in Financial Reporting ===== PDF PAGE 11 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS List of Principal Officials December 31, 2019 LEGISLATIVE City Mayor: Ruben Pineda City Clerk: Nancy M. Smith ALDERMEN James Beifuss Jayme Sheahan Heather Brown Jeanne Short Lori Chassee Melissa Ferguson Matthew Garling Alton Hallett Sandra Dimas Rebecca Stout Michael Ferguson Christopher Swiatek Noreen Ligino-Kubinski ADMINISTRATIVE City Administrator: Michael L. Guttman ADMINISTRATIVE SERVICES Director of Administrative Services: Linda M. Martin Assistant Director of Administrative Services: Nikki Giles 1 ===== PDF PAGE 12 ===== [Extraction: embedded PDF text] Services Director) SERVICES DEPARTMENT ADMINISTRATIVE (Administrative Development Director) CHART COMMUNITY DEPARTMENT DEVELOPMENT (CommunityCHICAGO CITY CITY CLERK OF ADMINISTRATOR WORKS Works 2WEST CHICAGO Director) (Public DEPARTMENT CITIZENS PUBLICOF WEST AND COUNCIL CITY ATTORNEY MAYORCITY CITY ORGANIZATIONAL Police) of POLICE (Chief DEPARTMENT AND BOARDS COMMISSIONS ===== PDF PAGE 13 ===== [Extraction: OCR (rendered-page OCR)] CiTY OF WEST CH ICAGO WHERE HISTORY & PROGRESS MEET January 22, 2021 The Honorable Mayor Ruben Pineda Members of the West Chicago City Council City Administrator Michael Guttman Citizens of the City of West Chicago The Comprehensive Annual Financial Report of the City of West Chicago (City) for the fiscal year ended December 31, 2019, is hereby submitted as mandated by local ordinances and state statutes. These ordinances and statutes require that the City issue a report on its financial position and activity following the end of a fiscal period, and that this report be audited by an independent accounting firm of certified public accountants. Responsibility for both the accuracy of the data, and the completeness and reliability of the information presented in this report, including all disclosures, rests with management. The City is also responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected from loss, theft or misuse, and to ensure adequate accounting of data is compiled to allow for the preparation of the City of West Chicago’s financial statements in accordance with generally accepted accounting principles (GAAP). Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and that the valuation of the costs and benefits requires estimates and judgments by management. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City’s financial statements have been audited by Lauterbach & Amen, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of West Chicago for the fiscal period ended December 31, 2019, are free of material misstatement. The auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide an introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. 475 Main Street T (630) 293-2200 Ruben Pineda West Chicago, Illinois F (630) 293-3028 ; | i M. Smith Michael L. Guttman 60185 | www.westchicago.org Naren CITY ADMINISTRATOR 3 ===== PDF PAGE 14 ===== [Extraction: embedded PDF text] PROFILE OF THE CITY OF WEST CHICAGO The City of West Chicago is a diverse, family-oriented community with a rich cultural mix and a proud heritage, located in northeastern Illinois, approximately 30 miles west of Chicago. West Chicago is the first Illinois community established by the railroads and continues to be a convenient transportation hub served by three major rail lines, Illinois' third-busiest airport and three State highways. The population has nearly tripled since the 1970s, with an official population of 27,086, based upon the results of the census conducted in 2010. West Chicago became a home rule unit of government on March 3, 2004. The equalized assessed valuation of the City reflects its strong economic condition. The City’s assessed valuation has more than doubled since 1996, and one of the City’s primary goals continues to be the active pursuit of commercial and industrial development that will aid in alleviating the tax burden on residents, while diversifying the long-term tax base. The City operates under the Mayor-Council form of government. Policymaking and legislative authority are vested in the City Council, which is comprised of a Mayor and two Aldermen from each of seven wards. The City Council is responsible for, among many responsibilities, passing ordinances, adopting an annual budget, appointing committees and hiring the City Administrator. The Council members are elected to four-year staggered terms with seven Council members being elected every two years. The Mayor is elected to a four-year term, as is the City Clerk. The City Administrator is responsible for carrying out the policies of and ordinances adopted by the City Council, for overseeing the day-to-day operations of the City, and for appointing all City staff except the Chief of Police. The City provides a full range of services, including: police protection, the construction and maintenance of streets and other infrastructure, water and wastewater treatment, the distribution of potable water, the collection of wastewater and stormwater, cultural events, as well as community and economic development. The annual budget serves as the foundation for the City’s financial planning and control. It further prioritizes our core services and administrative functions and reflects the policy direction established by the City Council. All department directors of the City are required to submit their budget requests to the City Administrator, who then uses these requests as the starting point for developing a proposed budget. The City Administrator presents the proposed budget to the City Council, and budget workshops with the Finance Committee begin shortly thereafter. The City targets budget adoption at a Council meeting approximately one month prior to the beginning of the fiscal year. Once approved, the City Administrator is given the flexibility to transfer amounts between departments and line items within a fund, but City Council action is necessary to transfer money between funds. The following are some of the major components of the Budget Policy that the City Council has used as a continuing foundation for fiscal discipline: • Revenues are conservatively projected using historical trends, reasonably expected changes in the coming year, and an analysis of anticipated economic conditions in the region, the state and the nation. 4 ===== PDF PAGE 15 ===== [Extraction: embedded PDF text] • Expenditures reflect realistic projections of anticipated expenses. Efforts are made to ensure that programs and services are realistically funded. Expenditures will be paid with current revenues. • Fund balances/unrestricted net position shall be at least 25% of revenues in the General, Water and Sewer Funds. • User fees, such as water and sewer charges, will be reviewed annually. This is done to ensure that fees cover costs, meet debt service requirements, and are affordable. MAJOR INITIATIVES The City has been involved in a variety of projects throughout the year, which reflect its commitment to ensuring that its citizens are able to experience a high quality of life in an enviable environment. The most significant of these projects are outlined below: • Commemorated the historically meaningful and relevant visit of the Union Pacific’s Big Boy, the world’s largest steam locomotive, over a three day period which bought more than 45,000 people from around the world to the City to share in this unique event. • Welcomed several new businesses to the DuPage Business Center and witnessed the twenty million dollar expansion project of the headquarters of a global leader in the horticulture field. • Celebrated a milestone event with the win of the IHSA Class 3A Boys State Soccer Championship by the West Chicago Wildcats Boys’ Soccer Team. • Partnered with the City of Warrenville and Winfield Township to begin a one year pilot transportation program that provides 24/7 paratransit bus and taxi services for seniors and disabled residents, joining a number of other DuPage County municipalities as part of a larger program. FACTORS AFFECTING LOCAL FINANCIAL CONDITION Local Economy As West Chicago has persistently transitioned itself into a center for commerce and industry, the diversity of its retail and industrial bases has helped to reduce dependency on outside revenues. The City continues to aggressively pursue economic development opportunities and partnerships with commercial and corporate developers and business owners, while supporting existing relationships, despite the current state of the economy. Long-term Financial Planning The City performs an annual review of its strategy designed to address the structural and cyclical financial challenges that continue to face the City. This strategy includes five major components: Reduction in Operating Expenditures – To address the structural problem of rising operating costs, the City annually undergoes a target budgeting process to manage the organization’s expenditure and revenue patterns. Additionally, a comprehensive multi- 5 ===== PDF PAGE 16 ===== [Extraction: embedded PDF text] phased review of both the budget and cost for services continued to determine alternative ways of providing existing services, with any cost savings that result from such adjustments being reallocated to other operational and maintenance needs. Systematic Use of Fund Reserves – As part of its policy, the City met its reserve target for the fiscal period ending December 31, 2019. The City maintains operating reserves that may be utilized during economic downturns and other unexpected circumstances. The systematic use of reserves helps to smooth the City’s expenditure patterns and minimize fluctuations in the level of services provided and maintained. Identification and Implementation of New Revenues – The City annually assesses new sources of revenue to ensure the continued delivery of core services to our customers. New revenue sources that are adopted adhere to the City Council’s direction that users should pay for certain services from which only they benefit and/or require. Increased Economic Development Focus – The City’s Economic Development Program is designed to increase and diversify the City’s sales tax, utility tax and real estate tax bases. By doing so, the City has become more self-sufficient, generating revenues and reducing dependency on outside revenue sources. Maintain and Improve City Services – The City has a proud history of providing exceptional services. During the implementation of this strategy, it was imperative that the residents and businesses not experience a reduction in service levels unless absolutely necessary. With few exceptions, the City has been able to provide excellent service with fewer employees and leaner budgets. In addition to this financial strategy, the City continues to have a five-year Capital Improvement Plan (CIP) and a process that projects future operating budgets. The CIP lends guidance and continuity in the planning and development of budgets, but more importantly, it identifies and prioritizes infrastructure maintenance and replacement needs, and plans for projects several years in advance. The Capital Projects Fund, Water Fund and Sewer Fund each have their respective five-year plans. Financial Policies The following policies had significant impact on the City’s financial statements: The City Council has continued its policy to participate in local agency and other agreements to maximize infrastructure improvements by way of federal funding, and to seek out various intergovernmental partnerships to further subsidize the cost of such improvements. These proactive measures have allowed the City to continue its aggressive street reconstruction, maintenance and resurfacing programs, along with other public infrastructure improvements. In 2019, the Forest Avenue Resurfacing Project and the Elm Road Resurfacing Project were completed. The City Council’s continued partnership with the Boards of the Fire Protection District, School District 33, School District 94, DuPage Airport Authority and the Library District allowed for a package of incentives to attract Alton Industry Ltd. Group and Midwest Industrial Funds (Skyjack Project) to the DuPage Business Center. The economic incentives included a partial property tax 6 ===== PDF PAGE 17 ===== [Extraction: embedded PDF text] abatement for both companies, as well as a partial rebate of utility taxes and a partial waiver of building permit fees for Alton Industry Ltd. Group. These development projects are expected to enhance the work force and have a meaningful impact on economic development in the area. Following the direction of the City Council, the transition to the newly-formed Joint Venture with the Village of Winfield, which was created to oversee the operation and maintenance of the Wastewater Treatment Plant, was completed, including all asset and liability transfers previously held and accounted for the by City. AWARDS AND ACHIEVEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of West Chicago for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2018. This was the twentieth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. This report can be viewed on the City’s website at www.westchicago.org. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another Certificate. The preparation of this report was made possible by the dedicated service of the entire staff of the Department of Administrative Services. Each member of the Department has our sincere appreciation for the contribution made in the preparation of this report. In closing, we would like to acknowledge and thank the Mayor and City Council for their leadership and support in planning and conducting the financial operations of the City in a progressive manner throughout the year, and for their support in maintaining high standards of professionalism in the management of the City’s finances. Respectfully submitted, Linda M. Martin Nikki T. Giles Director of Administrative Services Assistant Director of Administrative Services 7 ===== PDF PAGE 18 ===== [Extraction: OCR (rendered-page OCR)] @ Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of West Chicago Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2018 CRauloph.. P Mawik Executive Director/CEO ===== PDF PAGE 19 ===== [Extraction: embedded PDF text] FINANCIAL SECTION This section includes: • Independent Auditors’ Report • Management’s Discussion and Analysis • Basic Financial Statements • Required Supplementary Information • Other Supplementary Information • Supplemental Schedule ===== PDF PAGE 20 ===== [Extraction: OCR (rendered-page OCR)] INDEPENDENT AUDITORS’ REPORT ===== PDF PAGE 21 ===== [Extraction: embedded PDF text] INDEPENDENT AUDITORS' REPORT January 22, 2021 The Honorable City Mayor Members of the City Council City of West Chicago, Illinois 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 City of West Chicago, Illinois, as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City’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. Auditor’s 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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 auditor’s 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 City’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 City’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. 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 City of West Chicago, Illinois, as of December 31, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 9 ===== PDF PAGE 22 ===== [Extraction: embedded PDF text] City of West Chicago, Illinois January 22, 2021 Page 2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis as listed in the table of contents and budgetary information reported in the required supplementary information as listed in the table of contents, 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 City of West Chicago, Illinois’ basic financial statements. The introductory section, other supplementary information, supplemental schedule, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information and supplemental schedule are the responsibility of management and were derived from and relate 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 other supplementary information and supplemental schedule are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections 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. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 10 ===== PDF PAGE 23 ===== [Extraction: OCR (rendered-page OCR)] MANAGEMENT?’S DISCUSSION AND ANALYSIS ===== PDF PAGE 24 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 Our discussion and analysis of the City of West Chicago’s financial performance provides an overview of the City of West Chicago’s financial activities for the fiscal year ended December 31, 2019. Please read it in conjunction with the transmittal letter, which begins on page 3 and the City of West Chicago’s financial statements, which begin on page 23. FINANCIAL HIGHLIGHTS • The City’s net position decreased as a result of this year’s operations. Net position of business- type activities decreased by $13,758,682, or 14.5 percent, while net position of the governmental activities decreased by $569,691 or 1.4 percent. • During the year, government-wide revenues for the primary government totaled $25,201,949, while expenses totaled $39,530,322, resulting in a decrease to net position of $14,328,373. • The City of West Chicago’s net position totaled $122,269,264 at December 31, 2019, which includes $150,502,392 net investment in capital assets, $3,795,378 subject to external restrictions, and $32,028,506 unrestricted deficit net position that may be used to meet the ongoing obligations to citizens and creditors. • The General Fund reported an increase this year of $2,068,800, resulting in an ending fund balance of $15,486,324, an increase of 15.4 percent. USING THIS REPORT This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities (on pages 23 - 26) provide information about the activities of the City of West Chicago as a whole and present a longer-term view of the City’s finances. Fund financial statements begin on page 27. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City of West Chicago’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. 11 ===== PDF PAGE 25 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 USING THIS REPORT – Continued Government-Wide Financial Statements The government-wide financial statements provide readers with a broad overview of the City of West Chicago’s finances, in a manner similar to a private-sector business. The government wide financial statements can be found on pages 23 - 26 of this report. The Statement of Net Position reports information on all of the City of West Chicago’s assets/deferred outflows and liabilities/deferred inflows, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. Consideration of other non-financial factors, such as changes in the City’s property tax base and the condition of the City’s infrastructure, is needed to assess the overall health of the City of West Chicago. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal period. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of West Chicago that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of West Chicago include general government, public safety and culture and recreation. The business-type activities of the City of West Chicago include waterworks, sewerage and commuter parking operations. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of West Chicago, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 12 ===== PDF PAGE 26 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 USING THIS REPORT – Continued Fund Financial Statements – Continued Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal period. Such information may be useful in evaluating the City of West Chicago’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The City of West Chicago maintains seven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Public Benefit Fund, TIF Special Tax Allocation #1 Fund, and Capital Improvement Fund, all of which are considered major funds. Data from the other three governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of West Chicago adopts an annual budget for all of the governmental funds, except the Other Special Service Areas Fund. A budgetary comparison schedule for these funds has been provided to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 27 - 32 of this report. Proprietary Funds The City of West Chicago maintains one proprietary fund type: enterprise. Enterprise funds are used to report the same functions presented as business-type activities in the government–wide financial statements. The City of West Chicago utilizes enterprise funds to account for its water and sewer operations, water and sewer construction, water and sewer debt retirement, and commuter parking operations. 13 ===== PDF PAGE 27 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 USING THIS REPORT – Continued Fund Financial Statements – Continued Proprietary Funds – Continued Proprietary fund financial statements 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 Waterworks and Sewerage Funds, which are considered to be major funds of the City, and the Commuter Parking Fund, which is a non-major fund. The basic proprietary fund financial statements can be found on pages 33 - 36 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 City of West Chicago’s own programs. The accounting use for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 37 - 38 of this report. 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 39 - 78 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 City of West Chicago’s Illinois Municipal Retirement Fund (I.M.R.F.), Police Pension Fund, and retiree benefits plan, as well as budgetary comparison schedules for the General Fund and any major special revenue funds. Required supplementary information can be found on pages 79 - 89 of this report. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 90 - 120 of this report. 14 ===== PDF PAGE 28 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. The following tables show that in the case of the City of West Chicago, assets/deferred outflows exceeded liabilities/deferred inflows by $122,269,264. Net Position Governmental Business-type Activities Activities Total 2019 2018 2019 2018 2019 2018 Current Assets $ 31,284,965 28,050,930 (8,905,152) (2,972,086) 22,379,813 25,078,844 Capital Assets 54,970,284 54,014,124 98,828,924 109,261,535 153,799,208 163,275,659 Total Assets 86,255,249 82,065,054 89,923,772 106,289,449 176,179,021 188,354,503 Deferred Outlflows 10,656,094 8,189,233 276,575 1,585,681 10,932,669 9,774,914 Total Assets/Deferred Outflows 96,911,343 90,254,287 90,200,347 107,875,130 187,111,690 198,129,417 Current Liabilities 4,591,208 2,778,810 2,290,082 4,391,487 6,881,290 7,170,297 Noncurrent Liabilities 41,501,352 37,438,073 5,936,596 8,253,253 47,437,948 45,691,326 Total Liabilities 46,092,560 40,216,883 8,226,678 12,644,740 54,319,238 52,861,623 Deferred Inflows 9,486,259 8,135,189 1,036,929 534,968 10,523,188 8,670,157 Total Liabilities/Deferred Inflows 55,578,819 48,352,072 9,263,607 13,179,708 64,842,426 61,531,780 Net Position Net Investment in Capital Assets 54,970,284 54,014,124 95,532,108 105,354,380 150,502,392 159,368,504 Restricted 3,615,057 2,944,399 180,321 - 3,795,378 2,944,399 Unrestricted (17,252,817) (15,056,308) (14,775,689) (10,658,958) (32,028,506) (25,715,266) Total Net Position 41,332,524 41,902,215 80,936,740 94,695,422 122,269,264 136,597,637 A large portion of the City’s net position, $150,502,392, reflects its investment in capital assets (i.e., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion, $3,795,378, of the City of West Chicago’s net position represents resources that are subject to external restrictions on how they may be used. The remaining $32,028,506 represents unrestricted deficit net position and may be used to meet the government’s ongoing obligations to citizens and creditors. 15 ===== PDF PAGE 29 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Changes in Net Position Governmental Business-Type Activities Activities Totals 2019 2018 2019 2018 2019 2018 Revenues Program Revenues Charges for Services $ 6,489,489 5,119,650 8,764,421 4,429,049 15,253,910 9,548,699 Operating Grants/Contrib. 128,544 194,395 - - 128,544 194,395 Capital Grants/Contrib. 895,088 732,621 219,837 355,577 1,114,925 1,088,198 General Revenues Property Taxes 4,666,636 4,623,840 8,882 9,049 4,675,518 4,632,889 Other Taxes 641,440 764,365 - - 641,440 764,365 Sales and Use Taxes 7,470,171 6,871,960 - - 7,470,171 6,871,960 Income Taxes 2,883,008 2,593,920 - - 2,883,008 2,593,920 Replacement Taxes 198,860 152,578 - - 198,860 152,578 Utility Taxes 2,205,508 2,070,351 - - 2,205,508 2,070,351 Interest Income 25,729 12,224 7,598 8,095 33,327 20,319 Miscellaneous 732,686 637,785 428,265 584,062 1,160,951 1,221,847 Disposal of Capital Assets 22,171 - (10,586,384) (10,564,213) Total Revenues 26,359,330 23,773,689 (1,157,381) 5,385,832 25,201,949 29,159,521 Expenses General Government 9,256,029 13,667,469 - - 9,256,029 13,667,469 Public Safety 12,429,913 10,121,701 - - 12,429,913 10,121,701 Culture and Recreation 49,692 - - - 49,692 - Streets and Highways 5,193,137 - - - 5,193,137 - Interest on Long-Term Debt 250 339 - - 250 339 Waterworks - - 6,710,153 6,936,383 6,710,153 6,936,383 Sewerage - - 5,776,914 6,822,477 5,776,914 6,822,477 Commuter Parking - - 114,234 127,980 114,234 127,980 Total Expenses 26,929,021 23,789,509 12,601,301 13,886,840 39,530,322 37,676,349 Change in Net Position (569,691) (15,820) (13,758,682) (8,501,008) (14,328,373) (8,516,828) Net Position 41,902,215 41,918,035 94,695,422 103,196,430 136,597,637 145,114,465 Net Position-Ending 41,332,524 41,902,215 80,936,740 94,695,422 122,269,264 136,597,637 16 ===== PDF PAGE 30 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Net position of the City of West Chicago’s governmental activities decreased 1.4 percent ($41,332,524 at December 31, 2019, compared to $41,902,215 at December 31, 2018). Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints, totaled a deficit of $17,252,817 at December 31, 2019. Net position of business-type activities decreased 14.5 percent ($80,936,740 at December 31, 2019 compared to $94,695,422 at December 31, 2018). The City reported a deficit of $2,341,617 in the Waterworks Fund and a deficit of $11,463,632 in the Sewerage Fund and a surplus of $46,567 in the Commuter Parking Fund. The Sewerage Fund underwent a large transfer of capital assets to a newly- formed joint authority in 2019, resulting in the large decrease. Governmental Activities Revenues for governmental activities totaled $26,359,330 while the cost of all governmental functions totaled $26,929,021. This results in a net position draw down of $569,691 at December 31, 2019. At December 31, 2018, revenues for governmental activities totaled $23,773,689, while the cost of all governmental functions totaled $23,789,509, which resulted in a drawdown of $15,820. Revenues for charges for services and sales and use taxes increased $1,369,839 and $598,211, respectively. The following table graphically depicts the major revenue sources of the City of West Chicago. It depicts very clearly the reliance on property taxes, sales and use taxes, charges for services and other general revenues to fund governmental activities. It also clearly identifies the less significant percentage the City receives from replacement taxes. Revenues by Source - Governmental Activities Interest Income, Misc, 2.9% 0.1% Charges for Other, 8.4% Services, 24.6% Replacement Operating Taxes, 0.8% Grants/Contrib., 0.5% Income Taxes, 10.9% Capital Grants/Contrib., 3.4% Sales and Use Taxes, 28.3% Property Taxes, Other Taxes, 17.7% 2.4% 17 ===== PDF PAGE 31 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Governmental Activities – Continued The ‘Expenses and Program Revenues’ Chart identifies those governmental functions where program expenses greatly exceed revenues. These expenses and revenues do not include the major revenue sources, such as property taxes, sales and use taxes and income taxes, described earlier. The Statement of Activities on pages 25 - 26 further outlines those revenues and expenses considered program specific. Expenses and Program Revenues - Governmental Activities Revenues Expenses $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- General Public Safety Culture and Highway and Interest on Government Recreation Safety Long-Term Debt Business-Type Activities Business-Type activities posted total revenues of $9,429,003 before the $10,586,384 disposal of capital assets, while the cost of all business-type activities totaled $12,601,301. This results in a net position decrease of $13,758,682. At December 31, 2018, revenues of $5,385,832 were less than expenses of $13,886,840, resulting in a decrease of $8,501,008. The chart below compares program revenues to expenses for business-type activities. Expenses and Program Revenues - Business- Type Activities Revenues Expenses $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- Waterworks Sewerage Commuter Parking 18 ===== PDF PAGE 32 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted earlier, the City of West Chicago uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City of West Chicago’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At December 31, 2019, the City’s governmental funds reported combined ending fund balances of $22,314,181, which is an increase of $1,264,795 from last year’s total of $21,049,386. Of the $22,314,181 total, $13,844,971, or 62.0 percent, of the fund balance constitutes unassigned fund balance, while $108,429, or half of one percent, is designated as nonspendable, $3,615,057, or 16.2 percent, has been classified as restricted funds and $4,745,724, or 21.3 percent, has been classified as assigned funds. The General Fund is the chief operating fund of the City. The General Fund reported an increase change in fund balance for the fiscal year of $2,068,800, an increase of 15.4 percent. Overall, budgeted expenditures totaled $20,669,700 while actual expenditures totaled $18,040,728. These variances are further outlined on the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance. The Public Benefit Fund is used to account for the accumulation of funds from Kerr McGee to fund projects that meet the criteria established by the City Council and as detailed in the City Code. The Public Benefit Fund reported an increase change in fund balance for the fiscal year of $2,245, a result of no capital outlay expenditures. The TIF Special Tax Allocation #1 Fund reported an increase of $318,737 for the year, the majority of which resulted from actual revenues totaling $1,059,782 and actual expenditures totaling $741,045, which was $346,155 less than expenditures budgeted. The fund balance of $931,225 will be used for ongoing projects and prospective development. The Capital Improvement Fund reported a decrease in fund balance of $1,717,221 for the year, which resulted from actual expenditures of $5,950,999 being below actual revenues totaling $3,733,778, due to completion of resurfacing projects, the widening of Elm Road and construction of a salt storage facility. 19 ===== PDF PAGE 33 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS – Continued Proprietary Funds The City of West Chicago’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The City reports the Waterworks Fund and the Sewerage Funds as two major proprietary funds. The Waterworks Fund accounts for all of the operations of the municipal water plant and distribution system while the Sewerage Fund accounts for all of the operations of the municipal sewer plant and collection system. Water is sold to municipal customers at a rate of $3.88 per one thousand gallons of water ($2.90 per one hundred cubic feet for water) and a rate of $5.61 per one thousand gallons of sewer ($4.20 per one hundred cubic feet for sewer). The variance between the cost of operations and the rates charged to customers is intended to finance the debt and infrastructure of the utility system, including labor costs, supplies, infrastructure maintenance and future infrastructure improvements. The Commuter Parking Fund is recorded as a nonmajor fund. Each year, the City of West Chicago projects the user rates charged to be sufficient that the funds operate at a breakeven level, including amortization of future capital costs. Periodically, there will be an annual surplus or decrease due to the timing of capital projects. The decrease in net position in the Waterworks Fund during the fiscal year was $2,341,617, while the decrease in the previous fiscal year was $5,215,949. The Sewerage Fund experienced a decrease in net position of $11,463,632, due in large part to the disposal of capital assets, while the previous fiscal year reported a decrease of $3,315,784. The Commuter Parking Fund had an increase in net position for the fiscal year of $46,567 compared to the increase in the previous fiscal year of $30,725. Total net position in the Proprietary Funds was $80,936,740 (net investment in capital assets, restricted, and unrestricted) at December 31, 2019. GENERAL FUND BUDGETARY HIGHLIGHTS The City of West Chicago Council made two budget amendments to the General Fund during the fiscal year, to amend budgeted expenditures only. General Fund actual revenues for the year totaled $20,609,528 compared to budgeted revenues of $18,239,200. There was better than anticipated actual results within permit and license revenue categories. Original budgeted expenditures of $20,461,000 were increased $208,700 for software and uniform purchases, and the 2018 Sherman Street Resurfacing Project. The General Fund actual expenditures for the year were $2,628,972 lower than budgeted ($18,040,728 actual compared to $20,669,700 final budgeted). The general government’s actual expenditures were lower than budgeted expenditures by $1,733,745 due to overall coast controlling measures. 20 ===== PDF PAGE 34 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City of West Chicago’s investment in capital assets for its governmental and business type activities as of December 31, 2019 was $153,799,208, net of accumulated depreciation). This investment in capital assets includes land, construction on progress, buildings and improvements, vehicles and equipment and infrastructure. Capital Assets - Net of Depreciation Governmental Business-Type Activities Activities Totals 2019 2018 2019 2018 2019 2018 Land $ 20,218,128 20,218,128 28,040,111 28,649,611 48,258,239 48,867,739 Construction in Progress 2,756,726 174,895 2,268,665 2,163,591 5,025,391 2,338,486 Land Improvements 1,438,275 1,494,591 517,720 549,832 1,955,995 2,044,423 Buildings and Improvements 1,146,049 1,217,250 16,310,501 20,380,577 17,456,550 21,597,827 Machinery and Equipment 2,623,313 2,718,777 3,257,076 7,501,876 5,880,389 10,220,653 Infrastructure 26,787,793 28,190,483 48,434,851 50,016,048 75,222,644 78,206,531 Total 54,970,284 54,014,124 98,828,924 109,261,535 153,799,208 163,275,659 This year’s major additions included: Construction in Progress $ 3,900,707 Machinery and Equipment 412,818 Infrastructure 297,126 4,610,651 Additional information on the City of West Chicago’s capital assets can be found in note 3 of this report. 21 ===== PDF PAGE 35 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management’s Discussion and Analysis December 31, 2019 CAPITAL ASSETS AND DEBT ADMINISTRATION – Continued Debt Administration At December 31, 2019, the City of West Chicago had total outstanding debt of $3,296,816 as compared to $3,907,155 at December 31, 2018, a decrease of $610,339. The following is a comparative statement of outstanding debt: Long-Term Debt Outstanding Governmental Business-Type Activities Activities Totals 2019 2018 2019 2018 2019 2018 IEPA Revolving Loan $ - - 3,296,816 3,907,155 3,296,816 3,907,155 Chapter 65, Section 5/8-5-1 of the Illinois Compiled Statutes governs computation of the legal debt margin. The City is a home rule municipality and to date, the Illinois General Assembly has set no limits for home rule municipalities. Additional information on the City of West Chicago long-term debt can be found in Note 3 of this report. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The City of West Chicago’s elected and appointed officials considered many factors when setting the fiscal year 2020 budget, tax rates and fees that will be charged for its governmental and business-type activities. One of those factors is the economy. Unemployment rates for December 31, 2019, for DuPage County was 3.6 percent and the state and national unemployment rates were 3.7 and 3.5 percent, respectively. Amounts available for appropriation in the General Fund budget are $20,651,400 million, a decrease of 0.09 percent from the final 2019 budget of $20,669,700 million. The City of West Chicago has budgeted increases in sales and income tax of approximately 3 percent each. The City of West Chicago’s major initiatives in the 2020 budget include the continued West Washington Street environmental remediation and the replacement of Lift Station #5. The City of West Chicago maintains its strong commitment to fiscal accountability and pledges to continue to seek innovative strategies to maximize financial responsibility. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of West Chicago’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be directed to the Director of Administrative Services, City of West Chicago, 475 Main Street, West Chicago, IL. 60185. 22 ===== PDF PAGE 36 ===== [Extraction: embedded PDF text] BASIC FINANCIAL STATEMENTS The basic financial Statements include integrated sets of financial statements as required by the GASB. The sets of statements include: • Government-Wide Financial Statements • Fund Financial Statements Governmental Funds Proprietary Funds Fiduciary Funds In addition, the notes to the financial statements are included to provide information that is essential to a user’s understanding of the basic financial statements. ===== PDF PAGE 37 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position December 31, 2019 Business- Governmental Type Activities Activities Totals ASSETS Current Assets Cash and Investments $ 3,014,961 $ 442,293 $ 3,457,254 Receivables - Net of Allowances 9,582,199 9,209,725 18,791,924 Internal Balances 18,579,376 (18,579,376) - Prepaid Items/Inventories 108,429 22,206 130,635 Total Current Assets 31,284,965 (8,905,152) 22,379,813 Capital Assets Nondepreciable 22,974,854 30,308,776 53,283,630 Depreciable 74,609,119 108,377,663 182,986,782 Accumulated Depreciation (42,613,689) (39,857,515) (82,471,204) Total Capital Assets 54,970,284 98,828,924 153,799,208 Total Assets 86,255,249 89,923,772 176,179,021 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 269,476 276,575 546,051 Deferred Items - Police Pension 10,386,618 - 10,386,618 Total Deferred Outflows of Resources 10,656,094 276,575 10,932,669 Total Assets and Deferred Outflows of Resources 96,911,343 90,200,347 187,111,690 The notes to the financial statements are an integral part of this statement. 23 ===== PDF PAGE 38 ===== [Extraction: embedded PDF text] Business- Governmental Type Activities Activities Totals LIABILITIES Current Liabilities Accounts Payable $ 1,439,246 $ 956,450 $ 2,395,696 Accrued Payroll 361,198 105,192 466,390 Retainage Payable 167,775 344,441 512,216 Deposits Payable 1,968,416 179,840 2,148,256 Interest Payable - 28,243 28,243 Other Payables 300,416 17,850 318,266 Current Portion of Long-Term Debt 354,157 658,066 1,012,223 Total Current Liabilities 4,591,208 2,290,082 6,881,290 Noncurrent Liabilities Compensated Absences Payable 1,416,627 127,762 1,544,389 Net Pension Liability - IMRF 994,932 1,021,141 2,016,073 Net Pension Liability - Police Pension 34,374,981 - 34,374,981 Total OPEB Liability - RBP 4,714,812 2,117,002 6,831,814 IEPA Revolving Loan Payable - 2,670,691 2,670,691 Total Noncurrent Liabilities 41,501,352 5,936,596 47,437,948 Total Liabilities 46,092,560 8,226,678 54,319,238 DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF 1,010,315 1,036,929 2,047,244 Deferred Items - Police Pension 3,742,211 - 3,742,211 Property Taxes 4,733,733 - 4,733,733 Total Deferred Inflows of Resources 9,486,259 1,036,929 10,523,188 Total Liabilities and Deferred Inflows of Resources 55,578,819 9,263,607 64,842,426 NET POSITION Net Investment in Capital Assets 54,970,284 95,532,108 150,502,392 Restricted - MFT 981,483 - 981,483 Restricted - Public Safety 554,009 - 554,009 Restricted - TIF 1,135,403 - 1,135,403 Restricted - Public Benefit Projects 944,162 - 944,162 Restricted - Water - 180,321 180,321 Unrestricted (Deficit) (17,252,817) (14,775,689) (32,028,506) Total Net Position $ 41,332,524 $ 80,936,740 $ 122,269,264 The notes to the financial statements are an integral part of this statement. 24 ===== PDF PAGE 39 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2019 Program Revenues Charges Operating Capital for Grants/ Grants/ Expenses Services Contributions Contributions Governmental Activities General Government $ 9,256,029 $ 4,041,799 $ 5,718 $ - Public Safety 12,429,913 1,551,190 - - Culture and Recreation 49,692 896,500 122,826 895,088 Streets and Highways 5,193,137 - - - Interest and Fiscal Charges 250 - - - Total Governmental Activities 26,929,021 6,489,489 128,544 895,088 Business-Type Activities Waterworks 6,710,153 3,934,811 - 219,837 Sewerage 5,776,914 4,678,920 - - Commuter Parking 114,234 150,690 - - Total Business-Type Activities 12,601,301 8,764,421 - 219,837 Total Primary Government $ 39,530,322 $ 15,253,910 $ 128,544 $ 1,114,925 General Revenues Taxes Property Taxes Telecommunications Taxes Amusement Taxes Intergovernmental - Unrestricted Sales and Use Taxes Income Taxes Replacement Taxes Utility Taxes Interest Income Miscellaneous Disposal of Capital Assets Change in Net Position Net Position - Beginning Net Position - Ending The notes to the financial statements are an integral part of this statement. 25 ===== PDF PAGE 40 ===== [Extraction: embedded PDF text] Net (Expenses)/Revenues Primary Government Governmental Business-Type Activities Activities Totals $ (5,208,512) $ - $ (5,208,512) (10,878,723) - (10,878,723) 1,864,722 - 1,864,722 (5,193,137) (5,193,137) (250) - (250) (19,415,900) - (19,415,900) - (2,555,505) (2,555,505) - (1,097,994) (1,097,994) - 36,456 36,456 - (3,617,043) (3,617,043) (19,415,900) (3,617,043) (23,032,943) 4,666,636 8,882 4,675,518 562,050 - 562,050 79,390 - 79,390 7,470,171 - 7,470,171 2,883,008 - 2,883,008 198,860 - 198,860 2,205,508 - 2,205,508 25,729 7,598 33,327 732,686 428,265 1,160,951 22,171 (10,586,384) (10,564,213) 18,846,209 (10,141,639) 8,704,570 (569,691) (13,758,682) (14,328,373) 41,902,215 94,695,422 136,597,637 $ 41,332,524 $ 80,936,740 $ 122,269,264 The notes to the financial statements are an integral part of this statement. 26 ===== PDF PAGE 41 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Balance Sheet - Governmental Funds December 31, 2019 Special Public General Benefit ASSETS Cash and Investments $ 114,465 $ 784,381 Receivables - Net of Allowances Property Taxes 3,618,258 - Other 4,038,515 - Due From Other Funds 14,579,376 - Prepaids/Inventories 105,861 - Advances to Other Funds - 159,781 Total Assets 22,456,475 944,162 LIABILITIES Accounts Payable 1,045,941 - Accrued Payroll 337,536 - Retainage Payable - - Deposits Payable 1,968,416 - Advances from Other Funds - - Other Payables - - Total Liabilities 3,351,893 - DEFERRED INFLOWS OF RESOURCES Property Taxes 3,618,258 - Total Liabilities and Deferred Inflows of Resources 6,970,151 - FUND BALANCES Nonspendable 105,861 - Restricted 1,535,492 944,162 Assigned - - Unassigned 13,844,971 - Total Fund Balances 15,486,324 944,162 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 22,456,475 $ 944,162 The notes to the financial statements are an integral part of this statement. 27 ===== PDF PAGE 42 ===== [Extraction: embedded PDF text] Revenue TIF Special Tax Capital Allocation #1 Improvement Nonmajor Totals $ 104,785 $ 20,956 $ 1,990,374 $ 3,014,961 1,080,095 - 35,092 4,733,445 - 810,239 - 4,848,754 1,000,000 3,000,000 - 18,579,376 1,605 963 - 108,429 - - - 159,781 2,186,485 3,832,158 2,025,466 31,444,746 3,758 283,252 106,295 1,439,246 11,626 12,036 - 361,198 - 167,775 - 167,775 - - - 1,968,416 159,781 - - 159,781 - 300,416 - 300,416 175,165 763,479 106,295 4,396,832 1,080,095 288 35,092 4,733,733 1,255,260 763,767 141,387 9,130,565 1,605 963 - 108,429 929,620 - 205,783 3,615,057 - 3,067,428 1,678,296 4,745,724 - - - 13,844,971 931,225 3,068,391 1,884,079 22,314,181 $ 2,186,485 $ 3,832,158 $ 2,025,466 $ 31,444,746 The notes to the financial statements are an integral part of this statement. 28 ===== PDF PAGE 43 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities December 31, 2019 Total Governmental Fund Balances $ 22,314,181 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. 54,970,284 Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF (740,839) Deferred Items - Police Pension 6,644,407 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated Absences Payable (1,770,784) Net Pension Liability - IMRF (994,932) Net Pension Liability - Police Pension (34,374,981) Total OPEB Liability - RBP (4,714,812) Net Position of Governmental Activities $ 41,332,524 The notes to the financial statements are an integral part of this statement. 29 ===== PDF PAGE 44 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2019 See Following Page ===== PDF PAGE 45 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2019 Special Public General Benefit Revenues Taxes $ 4,445,630 $ - Intergovernmental 9,864,117 - Charges for Services 3,469,173 - Licenses and Permits 1,108,091 - Fines and Forfeitures 1,015,725 - Interest Income 13,841 2,245 Miscellaneous 692,951 - Total Revenues 20,609,528 2,245 Expenditures Current General Government 8,153,755 - Public Safety 9,886,973 - Capital Outlay - - Debt Service Interest and Fiscal Charges - - Total Expenditures 18,040,728 - Excess (Deficiency) of Revenues Over (Under) Expenditures 2,568,800 2,245 Other Financing Sources (Uses) Disposal of Assets - - Transfer In - - Transfer Out (500,000) - (500,000) - Net Change in Fund Balances 2,068,800 2,245 Fund Balances - Beginning 13,417,524 941,917 Fund Balances - Ending $ 15,486,324 $ 944,162 The notes to the financial statements are an integral part of this statement. 30 ===== PDF PAGE 46 ===== [Extraction: embedded PDF text] Revenue TIF Special Tax Capital Allocation #1 Improvement Nonmajor Totals $ 1,035,146 $ 823,860 $ 26,160 $ 6,330,796 - 2,894,342 - 12,758,459 - - 896,500 4,365,673 - - - 1,108,091 - - - 1,015,725 2,761 5,502 1,380 25,729 21,875 10,074 7,786 732,686 1,059,782 3,733,778 931,826 26,337,159 740,795 - - 8,894,550 - - - 9,886,973 - 5,950,999 361,763 6,312,762 250 - - 250 741,045 5,950,999 361,763 25,094,535 318,737 (2,217,221) 570,063 1,242,624 - - 22,171 22,171 - 500,000 - 500,000 - - - (500,000) - 500,000 22,171 22,171 318,737 (1,717,221) 592,234 1,264,795 612,488 4,785,612 1,291,845 21,049,386 $ 931,225 $ 3,068,391 $ 1,884,079 $ 22,314,181 The notes to the financial statements are an integral part of this statement. 31 ===== PDF PAGE 47 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities For the Fiscal Year Ended December 31, 2019 Net Change in Fund Balances - Total Governmental Funds $ 1,264,795 Amounts reported for governmental activities in the Statement of Activities are different because: 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. Capital Outlays 2,879,919 Depreciation Expense (1,923,759) Disposals - Cost 67,274 Disposals - Accumulated Depreciation (67,274) Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF (1,885,765) Change in Deferred Items - Police Pension 2,880,419 Change in Deferred Items - RBP 311,297 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal on long-term debt consumes the current financial resources of the governmental funds. Change to Compensated Absences Payable (166,591) Change to Net Pension Liability - IMRF 1,805,264 Change to Net Pension Liability - Police Pension (5,334,316) Change to Total OPEB Liability - RBP (400,954) Changes in Net Position of Governmental Activities $ (569,691) The notes to the financial statements are an integral part of this statement. 32 ===== PDF PAGE 48 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2019 See Following Page ===== PDF PAGE 49 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2019 Business-Type Activities - Enterprise Nonmajor Commuter Waterworks Sewerage Parking Totals ASSETS Current Assets Cash and Investments $ - $ - $ 442,293 $ 442,293 Receivables - Net of Allowances Property Taxes - 8,849 - 8,849 Accounts 3,978,794 5,211,990 3,990 9,194,774 Other 6,102 - - 6,102 Advances to Other Funds - 1,850,000 - 1,850,000 Prepaids 11,103 11,103 - 22,206 Total Current Assets 3,995,999 7,081,942 446,283 11,524,224 Noncurrent Assets Capital Assets Nondepreciable 28,097,524 2,163,002 48,250 30,308,776 Depreciable 86,650,028 21,043,073 684,562 108,377,663 Accumulated Depreciation (30,951,755) (8,402,265) (503,495) (39,857,515) Total Noncurrent Assets 83,795,797 14,803,810 229,317 98,828,924 Total Assets 87,791,796 21,885,752 675,600 110,353,148 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 158,519 116,145 1,911 276,575 Total Assets and Deferred Outflows of Resources 87,950,315 22,001,897 677,511 110,629,723 The notes to the financial statements are an integral part of this statement. 33 ===== PDF PAGE 50 ===== [Extraction: embedded PDF text] Business-Type Activities - Enterprise Nonmajor Commuter Waterworks Sewerage Parking Totals LIABILITIES Current Liabilities Accounts Payable $ 278,987 $ 672,066 $ 5,397 $ 956,450 Accrued Payroll 60,156 44,252 784 105,192 Retainage Payable 284,317 60,124 - 344,441 Interest Payable 28,243 - - 28,243 Other Liabilities - 179,840 - 179,840 Due to Other Funds 11,069,570 7,509,806 - 18,579,376 Advances from Other Funds 1,850,000 - - 1,850,000 Other Payables - - 17,850 17,850 Compensated Absences 30,977 964 - 31,941 IEPA Revolving Loan 626,125 - - 626,125 Total Current Liabilities 14,228,375 8,467,052 24,031 22,719,458 Noncurrent Liabilities Compensated Absences 123,907 3,855 - 127,762 Net Pension Liability - IMRF 585,266 428,819 7,056 1,021,141 Total OPEB Liability - RBP 1,058,501 1,058,501 - 2,117,002 IEPA Revolving Loan 2,670,691 - - 2,670,691 Total Noncurrent Liabilities 4,438,365 1,491,175 7,056 5,936,596 Total Liabilities 18,666,740 9,958,227 31,087 28,656,054 DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF 594,315 435,449 7,165 1,036,929 Total Liabilities and Deferred Inflows of Resources 19,261,055 10,393,676 38,252 29,692,983 NET POSITION Net Investment in Capital Assets 80,498,981 14,803,810 229,317 95,532,108 Restricted - Water - 180,321 - 180,321 Unrestricted (Deficit) (11,809,721) (3,375,910) 409,942 (14,775,689) Total Net Position $ 68,689,260 $ 11,608,221 $ 639,259 $ 80,936,740 The notes to the financial statements are an integral part of this statement. 34 ===== PDF PAGE 51 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds For the Fiscal Year Ended December 31, 2019 Business-Type Activities - Enterprise Nonmajor Commuter Waterworks Sewerage Parking Totals Operating Revenues Charges for Services $ 3,890,786 $ 4,614,965 $ 81,845 $ 8,587,596 Licenses and Permits - - 68,845 68,845 Total Operating Revenues 3,890,786 4,614,965 150,690 8,656,441 Operating Expenses Operations 4,674,839 5,456,149 100,309 10,231,297 Depreciation 1,944,024 320,765 13,925 2,278,714 Total Operating Expenses 6,618,863 5,776,914 114,234 12,510,011 Operating Income (Loss) (2,728,077) (1,161,949) 36,456 (3,853,570) Nonoperating Revenues (Expenses) Water and Sewer Connection Fees 44,025 63,955 - 107,980 Property Taxes - 8,882 - 8,882 Interest Income 2,515 5,083 - 7,598 Other Income 211,373 206,781 10,111 428,265 Interest Expense and Fiscal Charges (91,290) - - (91,290) Disposal of Capital Assets - (10,586,384) - (10,586,384) 166,623 (10,301,683) 10,111 (10,124,949) Income (Loss) before Contributions and Capital Grants (2,561,454) (11,463,632) 46,567 (13,978,519) Capital Contributions 171,654 - - 171,654 Capital Grants 48,183 - - 48,183 Change in Net Position (2,341,617) (11,463,632) 46,567 (13,758,682) Net Position - Beginning 71,030,877 23,071,853 592,692 94,695,422 Net Position - Ending $ 68,689,260 $ 11,608,221 $ 639,259 $ 80,936,740 The notes to the financial statements are an integral part of this statement. 35 ===== PDF PAGE 52 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended December 31, 2019 Business-Type Activities - Enterprise Funds Nonmajor Enterprise Waterworks Sewerage Commuter Fund Fund Parking Totals Cash Flows from Operating Activities Receipts from Customers and Users $ 6,170,811 $ 6,795,269 $ 168,769 $ 13,134,849 Payments to Employees (1,764,924) (1,261,253) (20,918) (3,047,095) Payments to Suppliers (3,087,973) (4,402,809) (85,107) (7,575,889) 1,317,914 1,131,207 62,744 2,511,865 Cash Flows from Noncapital Financing Activities Property Taxes - 8,882 - 8,882 Cash Flows from Capital and Related Financing Activities Capital Grants 48,183 - - 48,183 Purchase of Capital Assets (666,983) (454,249) - (1,121,232) Disposal of Capital Assets - (1,311,255) (1,311,255) Interest on Capital Debt (91,290) - - (91,290) Principal on Capital Debt (610,339) - - (610,339) (1,320,429) (1,765,504) - (3,085,933) Cash Flows from Investing Activities Interest Received 2,515 5,083 - 7,598 Net Change in Cash and Cash Equivalents - (620,332) 62,744 (557,588) Cash and Cash Equivalents - Beginning - 620,332 379,549 999,881 Cash and Cash Equivalents - Ending - - 442,293 442,293 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) (2,728,077) (1,161,949) 36,456 (3,853,570) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation Expense 1,944,024 320,765 13,925 2,278,714 Other Income 427,052 270,736 10,111 707,899 (Increase) Decrease in Current Assets 1,852,973 1,909,568 7,968 3,770,509 Increase (Decrease) in Current Liabilities (178,058) (207,913) (5,716) (391,687) Net Cash Provided by Operating Activities $ 1,317,914 $ 1,131,207 $ 62,744 $ 2,511,865 Noncash Activity Capital Contributions $ 171,654 $ - $ - $ 171,654 The notes to the financial statements are an integral part of this statement. 36 ===== PDF PAGE 53 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Fiduciary Net Position December 31, 2019 Pension Trust Police Pension ASSETS Cash and Cash Equivalents $ 53,175 Investments Money Market Mutual Funds 711,927 U.S. Treasuries 1,289,027 U.S. Agencies 7,838,066 Coporate Bonds 1,954,557 Municipal Bonds 1,591,827 Mutual Funds 19,582,996 Insurance Contracts 1,633,693 Accrued Interest 82,799 Prepaids 6,415 Total Assets 34,744,482 LIABILITIES Accounts Payable 14,713 NET POSITION Net Position Restricted for Pensions $ 34,729,769 The notes to the financial statements are an integral part of this statement. 37 ===== PDF PAGE 54 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2019 Pension Trust Police Pension Additions Contributions - Employer $ 1,949,252 Contributions - Plan Members 441,291 Total Contributions 2,390,543 Investment Income Interest Earned 884,641 Net Change in Fair Value 4,383,269 5,267,910 Less Investment Expenses (46,959) Net Investment Income 5,220,951 Total Additions 7,611,494 Deductions Administration 61,544 Benefits and Refunds 2,405,200 Total Deductions 2,466,744 Change in Fiduciary Net Position 5,144,750 Net Position Restricted for Pensions Beginning 29,585,019 Ending $ 34,729,769 The notes to the financial statements are an integral part of this statement. 38 ===== PDF PAGE 55 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of West Chicago (City), Illinois, incorporated in 1849, is a municipal corporation governed by an elected Mayor and City Council. The City’s major operations include public safety, highway and street maintenance and reconstruction, forestry, building, code enforcement, public improvements, economic development, planning and zoning, water, sewer, commuter parking services, and general administrative services. The government-wide financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant of the City’s accounting policies established in GAAP and used by the City are described below. REPORTING ENTITY The City’s financial reporting entity comprises the following: Primary Government: City of West Chicago In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 61, “The Financial Reporting Omnibus – an Amendment of GASB Statements No. 14 and No. 34,” and includes all component units that have a significant operational or financial relationship with the City. Based upon the criteria set forth in the GASB Statement No. 61, there are no component units included in the reporting entity. Police Pension Employees Retirement System The City’s sworn police employees participate in the Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the City’s Mayor, one elected pension beneficiary and two elected police employees constitute the Pension Board. The participants are required to contribute a percentage of salary as established by state statute and the City is obligated to fund all remaining PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the City is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it is legally separate from the City, the PPERS is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the City’s police employees. The PPERS is reported as a fiduciary fund, and specifically a pension trust fund, due to the fiduciary responsibility exercised over the PPERS. 39 ===== PDF PAGE 56 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION Government-Wide Statements The City’s basic financial statements include both government-wide (reporting the City as a whole) and fund financial statements (reporting the City’s major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business-type. The City’s police, highway and street maintenance and reconstruction, forestry, building, code enforcement, public improvements, economic development, planning and zoning, and general administrative services are classified as governmental activities. The City’s water, sewer and parking services are classified as business-type activities. In the government-wide Statement of Net Position, both the governmental and business-type activities columns are: (a) presented on a consolidated basis by column; and (b) reported on a full accrual, economic resource basis, which recognizes all long-term assets/deferred outflows and receivables as well as long-term debt/deferred inflows and obligations. The City’s net position is reported in three parts: net investment in capital assets; restricted; and unrestricted. The City first utilizes restricted resources to finance qualifying activities. The government-wide Statement of Activities reports both the gross and net cost of each of the City’s functions and business-type activities (general government, public safety, water, sewer, etc.). The functions are supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, which 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. The net costs (by function or business-type activity) are normally covered by general revenue (property tax, sales tax, intergovernmental revenues, interest income, etc.). The City allocates indirect costs paid from the General Fund to other funds for personnel who perform administrative services for those funds, along with other indirect costs deemed necessary for their operations. This government-wide focus is more on the sustainability of the City as an entity and the change in the City’s net position resulting from the current year’s activities. 40 ===== PDF PAGE 57 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION – Continued Fund Financial Statements The financial transactions of the City are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets/deferred outflows, liabilities/deferred inflows, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. The emphasis in fund financial statements is on the major funds in either the governmental or business-type activities categories. GASB Statement No. 34 sets forth minimum criteria (percentage of the assets/deferred outflows, liabilities/deferred inflows, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The City can electively add funds, as major funds, which either have debt outstanding or specific community focus. The nonmajor funds are combined in a column in the fund financial statements. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type. Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. The various funds are reported by generic classification within the financial statements. The following fund types are used by the City: 41 ===== PDF PAGE 58 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION – Continued Fund Financial Statements – Continued Governmental Funds The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the City: General fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The General Fund is a major fund. Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City maintains two major and two nonmajor special revenue funds. The two major funds are the Public Benefit Fund, which accounts for the accumulation of restricted funds from Kerr McGee to fund projects that meet the criteria detailed in the City Code, and the TIF Special Tax Allocation #1 Fund, which accounts for the accumulation of funds from restricted incremental tax revenue generated within the TIF #1 area. Debt service funds are used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. The City does not currently utilize debt service funds. Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The City maintains one major and one nonmajor capital projects fund. The Capital Improvement Fund, the major fund, accounts for natural gas use taxes and a one percent home rule sales tax that are set aside for funding major capital improvements throughout the City. Proprietary Funds The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. The following is a description of the proprietary funds of the City: Enterprise funds are required to account for operations for which a fee is charged to external users for goods or services and the activity (a) is financed with debt that is solely secured by a pledge of the net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be recovered with fees and charges, or (c) establishes fees and charges based on a pricing policy designed to recover similar costs. 42 ===== PDF PAGE 59 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION – Continued Fund Financial Statements – Continued Proprietary Funds – Continued Enterprise funds – Continued. The City maintains two major and one nonmajor enterprise funds; the major funds are the Waterworks and the Sewerage Funds. The Waterworks Fund is used to account for the provision of potable water services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations and maintenance, financing and related debt service, billing and collection. The Sewerage Fund is used to account for the provision of wastewater treatment and collection services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations and maintenance, financing and related debt service, billing and collection. Fiduciary Funds Fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support City programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds. Pension trust funds are used to account for assets held in a trustee capacity for pension benefit payments. The Police Pension Fund accounts for the accumulation of resources to be used for disability and retirement annuity payments to employees covered by the plan. The City’s fiduciary funds are presented in the fiduciary fund financial statements by type (pension trust and agency). Since by definition these assets are being held for the benefit of a third party (other local governments, private parties, pension participants, etc.) and cannot be used to address activities or obligations of the City, these funds are not incorporated into the government-wide statements. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement Focus Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied. 43 ===== PDF PAGE 60 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued Measurement Focus – Continued On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined below. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets/deferred outflows and liabilities/deferred inflows are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. All proprietary and pension trust funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows and liabilities/deferred inflows (whether current or noncurrent) associated with their activities are reported. Proprietary and pension trust fund equity is classified as net position. Basis of Accounting In the government-wide Statement of Net Position and Statement of Activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability/deferred inflow is incurred or economic asset is used. Revenues, expenses, gains, losses, assets/deferred outflows, and liabilities/deferred inflows resulting from exchange and exchange-like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year-end. The City recognizes property taxes when they become both measurable and available in accordance with GASB Codification Section P70. 44 ===== PDF PAGE 61 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued Basis of Accounting – Continued A sixty-day availability period is used for revenue recognition for all other governmental fund revenues. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are recognized when due. In applying the susceptible to accrual concept under the modified accrual basis, those revenues susceptible to accrual are property taxes, sales and use taxes, franchise fees, interest revenue, and charges for services. All other revenues are not susceptible to accrual because generally they are not measurable until received in cash. All proprietary and pension trust utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used. Proprietary funds distinguish operating revenues and expenses from nonoperating 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 City’s enterprise funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap on fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY Cash and Investments Cash and cash equivalents on the Statement of Net Position are considered to be cash on hand, demand deposits, and cash with fiscal agent. For the purpose of the proprietary funds “Statement of Cash Flows,” cash and cash equivalents are considered to be cash on hand, demand deposits, cash with fiscal agent, and all highly liquid investments with an original maturity of three months or less. Investments are generally reported at fair value. Short-term investments are reported at cost, which approximates fair value. For investments, the City 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 other observable inputs, and Level 3 inputs are significant unobservable inputs. 45 ===== PDF PAGE 62 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued Receivables In the government-wide financial statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for governmental activities include property taxes, sales and use taxes, franchise fees, and grants. Business-type activities report utility charges as their major receivables. Interfund Receivables, Payables and Activity Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements. Prepaids/Inventories Prepaids/inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The costs of governmental fund-type prepaids/inventories are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both the government-wide and fund financial statements. Capital Assets Capital assets purchased or acquired with an original cost of $10,000 - $30,000 or more, depending on asset class, are reported at historical cost or estimated historical cost. Contributed assets are reported at acquisition value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. 46 ===== PDF PAGE 63 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued Capital Assets – Continued The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. General capital assets are long-lived assets of the City as a whole. Infrastructure such as streets and traffic signals are capitalized. The valuation basis for general capital assets are historical cost, or where historical cost is not available, estimated historical cost based on replacement costs. Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are capitalized at estimated fair market value on the date donated. Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives: Land Improvements 20 Years Buildings and Improvements 50 Years Machinery and Equipment 5 - 15 Years Infrastructure 65 Years Deferred Outflows/Inflows of Resources Deferred outflow/inflow of resources represents an acquisition/reduction of net position that applies to a future period and therefore will not be recognized as an outflow of resources (expense)/inflow of resources (revenue) until that future time. Compensated Absences The City accrues accumulated unpaid vacation and associated employee-related costs when earned (or estimated to be earned) by the employee. In accordance with GASB Statement No. 16, no liability is recorded for nonvesting accumulation rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave that is estimated to be taken as “terminal leave” prior to retirement. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 47 ===== PDF PAGE 64 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued Long-Term Obligations In the government-wide financial statements and for 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 premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenses at the time of issuance. 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 on 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. Net Position In the government-wide financial statements, equity is classified as net position and displayed in three components: Net Investment in Capital Assets – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted – Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislations. Unrestricted – All other net position balances that do not meet the definition of “restricted” or “net investment in capital assets”. 48 ===== PDF PAGE 65 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY BUDGETARY INFORMATION Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriations are adopted for the general, special revenue (except for the TIF Special Tax Allocation #3 Fund), capital projects, and enterprise funds. All annual appropriations lapse at fiscal year end. All departments of the City submit requests for appropriation to the City Administrator so that a budget may be prepared. The budget is prepared by fund, function, and activity, and includes information on the past year, current year estimates, and requested appropriations for the next fiscal year. The proposed budget is presented to the governing body for review. The governing body holds a public hearing and may add to, subtract from, or change appropriations, but may not change the form of the budget. The Budget Officer is authorized to transfer budgeted amounts between departments and line items within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, three supplementary appropriations were approved. NOTE 3 – DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds except the pension trust fund. Each fund type's portion of this pool is displayed on the financial statements as "cash and investments”. In addition, investments are separately held by several of the City's funds. The deposits and investments of the pension trust fund are held separately from those of other funds. Permitted Deposits and Investments – Statutes authorize the City to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, obligations of States and their political subdivisions, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating services, Illinois Funds and the Illinois Metropolitan Investment Fund. Illinois Funds is an investment pool managed by the Illinois Public Treasurer’s Office which allows governments within the State to pool their funds for investment purposes. The Illinois Funds is not registered with the SEC as an investment company. Investments in Illinois Funds are valued at the share price, the price for which the investment could be sold. 49 ===== PDF PAGE 66 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued The Illinois Metropolitan Investment Fund (IMET) is a non-for-profit investment trust formed pursuant to the Illinois Municipal Code. IMET is managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an Investment Company. Investments in IMET are valued at the share price, the price for which the investment could be sold. The deposits and investments of the Pension Fund are held separately from those of other City funds. Statutes authorize the Pension Fund to make deposits/invest in interest bearing direct obligations of the United States of America; obligations that are fully guaranteed or insured as to the payment of principal and interest by the United States of America; bonds, notes, debentures, or similar obligations of agencies of the United States of America; savings accounts or certificates of deposit issued by banks or savings and loan associations chartered by the United States of America or by the State of Illinois, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; credit unions, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; State of Illinois bonds; pooled accounts managed by the Illinois Funds Market Fund (formerly known as IPTIP, Illinois Public Treasurer’s Investment Pool), or by banks, their subsidiaries or holding companies, in accordance with the laws of the State of Illinois; bonds or tax anticipation warrants of any county, township, or municipal corporation of the State of Illinois; direct obligations of the State of Israel; money market mutual funds managed by investment companies that are registered under the Federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended management investment companies, provided the portfolio is limited to specified restrictions; general accounts of life insurance companies; and separate accounts of life insurance companies and mutual funds, the mutual funds must meet specific restrictions, provided the investment in separate accounts and mutual funds does not exceed ten percent of the Pension Fund’s plan net position; and corporate bonds managed through an investment advisor, rated as investment grade by one of the two largest rating services at the time of purchase. Pension Funds with plan net position of $2.5 million or more may invest up to forty-five percent of plan net position in separate accounts of life insurance companies and mutual funds. Pension Funds with plan net position of at least $5 million that have appointed an investment advisor, may through that investment advisor invest up to forty-five percent of the plan net position in common and preferred stocks that meet specific restrictions. In addition, Pension Funds with plan net position of at least $10 million that have appointed an investment advisor, may invest up to fifty percent of its net position in common and preferred stocks and mutual funds that meet specific restrictions effective July 1, 2011 and up to fifty-five percent effective July 1, 2012. City Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits and Investments. At year-end, the carrying amount of the City’s deposits for governmental and business-type activities totaled $2,842,830 and the bank balances totaled $2,961,621. Additionally, at year-end the City has $574,016 invested in the Illinois Funds and $40,408 invested in the Illinois Metropolitan Investment Fund, which are both measured at net asset value per share as determined by the pool. 50 ===== PDF PAGE 67 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued City Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy states that the investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements which may be reasonably anticipated in any City Fund. The average maturity for the Illinois Funds is less than one year and the Illinois Metropolitan Investment Fund is less than one year to three years. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Besides investing in instruments authorized under State Statute, the City’s investment policy does not further limit investment choices. The City limits its exposure to credit risk by primarily investing in Illinois Funds which were rated AAAm by Standard & Poor’s, in Illinois Metropolitan Investment Trust Convenience Fund which is not rated, and in the Illinois Metropolitan Investment Trust 1-3 Year Fund that is rated Aaa by Moody’s. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. To limit its exposure, the City’s investment policy states funds on deposit in excess of FDIC or Federal Savings and Loan Insurance Corporation limits must be secured by collateral. Acceptable collateral shall consist of any of the following: U.S. Government Securities, obligations of Federal Agencies, obligations of the State of Illinois, general obligations of Municipal Bonds rated “A” or better, and any other collateral identified by the Illinois State Statutes as acceptable for use by the Treasurer of the State of Illinois. At year-end, the entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance. In the case of investments, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral. The City’s investment policy does not specifically address custodial credit risk for investments. At year-end, the City’s investment in the Illinois Funds and the Illinois Metropolitan Investment Trust are not subject to custodial credit risk. Concentration of Credit Risk. This is the risk of loss attributed to the magnitude of the City’s investment in a single issuer. The City’s investment policy states that the investment portfolio of the City shall not exceed the following limits: • No financial institution shall hold more than 40% of the portfolio. This shall not include United States of America Securities held in safekeeping • The Illinois Investment Pool shall not exceed 80% of the portfolio At year-end, the City does not have any investments over 5 percent of cash and investments (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). 51 ===== PDF PAGE 68 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits. At year-end, the carrying amount of the Police Pension Fund’s deposits totaled $765,102 and the bank balances totaled $829,452. In addition, the Pension Fund has $19,582,996 invested in money market mutual funds at year end. Investments. The fair value and maturities of the Fund’s investments at year-end are as follows: Investment Maturities (in Years) Fair Less Than Greater Investment Type Value 1 1 to 5 6 to 10 Than 10 U.S. Treasuries $ 1,289,027 $ 299,770 $ 681,866 $ 307,391 $ - U.S. Agencies 7,838,066 140,198 1,419,444 6,171,405 107,019 Corporate Bonds 1,954,557 50,219 758,184 1,146,154 - Municipal Bonds 1,591,827 149,983 931,657 410,451 99,736 $ 12,673,477 $ 640,170 $ 3,791,151 $ 8,035,401 $ 206,755 The Fund has the following recurring fair value measurements as of December 31, 2019: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Indentical Observable Unobservable Assets Inputs Inputs Investments by Fair Value Level Total (Level 1) (Level 2) (Level 3) Debt Securities U.S. Treasuries $ 1,289,027 $ 1,289,027 $ - $ - U.S. Agencies 7,838,066 - 7,838,066 - Corporate Bonds 1,954,557 - 1,954,557 - Municipal Bonds 1,591,827 - 1,591,827 - Equity Securities Insurance Contracts 1,633,693 - 1,633,693 - Mutual Funds 19,582,996 19,582,996 - - Total Investments by Fair Value Level $ 33,890,166 $ 20,872,023 $ 13,018,143 $ - 52 ===== PDF PAGE 69 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued Investments – Continued. Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Interest Rate Risk. In accordance with the Fund’s investment policy, the Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity while at the same time matching investments with anticipated cash flow requirements. Credit Risk. The Fund helps limit its exposure to credit risk by primarily investing in securities issued by the United States Government and/or its agencies that are implicitly guaranteed by the United States Government. The Pension Fund’s investment policy establishes criteria for allowable investments; those criteria follow the requirements of the Illinois Pension Code. The investments in the securities of the U.S. Government agencies were not rated. Corporate bonds were rated A3 to Aaa by Moody’s Investor Services. Municipal bonds were rated AAA to Aaa by Standard & Poor’s and Moody’s Investor Services. Custodial Credit Risk. At December 31, 2019, all of the Pension Fund’s deposits were covered by federal depository or equivalent insurance. The Pension Fund’s investment policy states security shall be held with a third-party custodian and all securities purchased by, and all collateral obtained by, the Board should be properly designated as an asset of the Board. No withdrawal of securities, in whole or in part, shall be made from safekeeping except by an authorized member of the Board or the Board’s designee. The Pension Fund will accept any of the following assets as collateral: government securities, obligations of Federal Agencies, obligations of Federal Instrumentalities, and obligations of the State of Illinois. Securities transactions between a broker/dealer and the third-party custodian involving a purchase or sale of securities by transfer of money or securities must be made on a “delivery versus payment” basis, if applicable, to insure that the third party custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. Concentration Credit Risk. At December 31, 2019, the Pension Fund does not have any investments over 5 percent of net position available for benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). Agency investments represent a large portion of the portfolio; however, the investments are diversified by maturity date and as mentioned earlier are backed by the issuing organization. Although unlike Treasuries, agency securities do not have the “full faith and credit” backing of the U.S. Government, they are considered to have a moral obligation of implicit backing and are supported by Treasury lines of credit and increasingly stringent federal regulation. In order to reduce the risk of default, the investment portfolio of the Pension Fund shall not exceed the following diversification limits unless specifically authorized by the Board of Trustees: 53 ===== PDF PAGE 70 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued Concentration Credit Risk – Continued. • Exposure of the portfolio to any one corporate issuer, other than securities of the United States Government or agencies, shall not exceed 3% of the market value of the fixed income portfolio • Holdings in individual issuers shall be large enough for easy liquidation • The fixed income portfolio may be invested in securities with a maturity up to thirty (30) years, so long as the average effective duration of the portfolio will not exceed 125% of the duration of the Lehman Corporate Government Bond Index, A Rated and Above Bond Index duration • No more than 5% of the Fund assets shall be invested in the common stock or capital stock of any one issuing company nor shall the aggregate investment in any one issuing company exceed 5% of the outstanding capital stock of the company The Fund’s investment policy in accordance with Illinois Compiled Statutes (ILCS) establishes the following target allocation across asset classes: Long-Term Expected Real Asset Class Target Rate of Return Fixed Income 45.00% 1.40% Domestic Equities 11% - 38.50% 6.20% - 8.00% International Equities 5.50% 6.90% Cash and Cash Equivalents 0.00% 0.00% Illinois Compiled Statutes (ILCS) limit the Fund’s investments in equities, mutual funds and variable annuities to 65%. The long-term expected rate of return on the Fund’s investments was determined using an asset allocation study conducted by the Fund’s investment management consultant in April 2020 in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were 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 the expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation as of December 31, 2019 are listed in the table above. 54 ===== PDF PAGE 71 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued Concentration Credit Risk – Continued. At year-end, the Pension Fund has diversified its insurance contracts and equity mutual funds as follows: Equity Mutual Funds Fair Value AQR LG Cap Defensive $ 903,640 Cohen and Steers 432,209 First Eagle Overseas 279,671 Goldman Sachs Intl Eqty 379,610 Goldman Sachs Small Cap 1,350,641 LSV Value Equity 1,697,080 MFS Intl Growth CL I 473,628 Oppenheimer Developing 278,938 Pioneer Equity Income 2,171,064 T Rowe Price Growth Stock 4,415,090 T Rowe Price Small 1,436,640 TIAA CREF Small Cap 448,256 Vanguard 500 Index 4,715,213 Victory Sycamore 601,316 $ 19,582,996 Insurance Contracts Fair Value Protective Life Annuity $ 610,561 Hartford Annuity 791,375 Nationwide 231,757 $ 1,633,693 Rate of Return For the year ended December 31, 2019, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 17.79%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 55 ===== PDF PAGE 72 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued SALES TAX AGREEMENT The City of West Chicago entered into a tax rebate agreement with a corporation in 2015. Under this agreement, the City rebates a portion of sales taxes. For the fiscal year ended December 31, 2019, the City rebated a total of $94,955 in taxes under this agreement. CAPITAL ASSETS Governmental Activities Governmental capital asset activity for the year was as follows: Beginning Ending Balances Increases Decreases Balances Capital Assets - Not Being Depreciated Land $ 20,218,128 $ - $ - $ 20,218,128 Construction in Progress 174,895 2,581,831 - 2,756,726 20,393,023 2,581,831 - 22,974,854 Other Capital Assets Land Improvements 2,040,245 - - 2,040,245 Buildings and Improvements 3,184,512 - - 3,184,512 Machinery and Equipment 5,988,941 298,088 67,274 6,219,755 Infrastructure 63,164,607 - - 63,164,607 74,378,305 298,088 67,274 74,609,119 Less Accumulated Depreciation Land Improvements 545,654 56,316 - 601,970 Buildings and Improvements 1,967,262 71,201 - 2,038,463 Machinery and Equipment 3,270,164 393,552 67,274 3,596,442 Infrastructure 34,974,124 1,402,690 - 36,376,814 40,757,204 1,923,759 67,274 42,613,689 Total Other Capital Assets 33,621,101 (1,625,671) - 31,995,430 Total Capital Assets $ 54,014,124 $ 956,160 $ - $ 54,970,284 Depreciation expense was charged to governmental activities as follows: General Government $ 24,730 Public Safety 89,043 Culture and Recreation 49,692 Highways and Streets 1,760,294 $ 1,923,759 56 ===== PDF PAGE 73 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued CAPITAL ASSETS – Continued Business-Type Activities Business-type capital asset activity for the year was as follows: Beginning Ending Balances Increases Decreases Balances Capital Assets - Not Being Depreciated Land $ 28,649,611 $ - $ 609,500 $ 28,040,111 Construction in Progress 2,163,591 1,318,876 1,213,802 2,268,665 30,813,202 1,318,876 1,823,302 30,308,776 Other Capital Assets Land Improvements 1,426,823 - 173,485 1,253,338 Buildings and Improvements 34,409,354 884,042 9,314,666 25,978,730 Machinery and Equipment 18,068,324 114,730 9,224,236 8,958,818 Infrastructure 73,092,720 626,886 1,532,829 72,186,777 126,997,221 1,625,658 20,245,216 108,377,663 Less Accumulated Depreciation Land Improvements 876,991 32,112 173,485 735,618 Buildings and Improvements 14,028,777 675,997 5,036,545 9,668,229 Machinery and Equipment 10,566,448 194,920 5,059,626 5,701,742 Infrastructure 23,076,672 1,375,685 700,431 23,751,926 48,548,888 2,278,714 10,970,087 39,857,515 Total Other Capital Assets 78,448,333 (653,056) 9,275,129 68,520,148 Total Capital Assets $ 109,261,535 $ 665,820 $ 11,098,431 $ 98,828,924 Depreciation expense was charged to business-type as follows: Waterworks $ 1,944,024 Sewerage 320,765 Commuter Parking 13,925 $ 2,278,714 57 ===== PDF PAGE 74 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund Balances Interfund balances are advances to cover cash shortages. The composition of interfund balances as of the date of this report, is as follows: Receivable Fund Payable Fund Amount General Waterworks $ 11,069,570 General Sewerage 3,509,806 TIF Special Tax Allcoation #1 Sewerage 1,000,000 Capital Improvement Sewerage 3,000,000 $ 18,579,376 Interfund Advances Interfund advances as of the date of this report are as follows: Receivable Fund Payable Fund Amount Public Benefit TIF Special Tax Allocation #1 $ 159,781 Sewerage Waterworks 1,850,000 $ 2,009,781 The interfund advance from the Public Benefit Fund is for the purchase of properties within the TIF District as part of future land improvement programs. A total of up to $1.5 million dollars was approved by the City Council for lending to the TIF District for this purpose in lieu of selling additional bonds at a higher interest rate. The amounts will be repaid, with accrued interest, as part of the agreement over the remaining years of the TIF District. The interfund advance from the Sewerage Fund was for the payoff of the Waterworks General Obligation Alternate Revenue Source Bonds of 2002. The amounts will be repaid, with accrued interest. 58 ===== PDF PAGE 75 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS – Continued Interfund Transfers Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them. Transfer In Transfer Out Amount Capital Improvement General $ 500,000 PROPERTY TAXES Property taxes for 2018 attach as an enforceable lien on January 1, on property values assessed as of the same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy Ordinance). Tax bills are prepared by DuPage County and are payable in two installments, on or about June 1 and September 1. The County collects such taxes and remits them periodically. LONG-TERM DEBT IEPA Revolving Loan The City has entered into an agreement with the IEPA to provide low interest financing for waterworks improvements. The IEPA revolving loan currently outstanding is as follows: Fund Debt Beginning Ending Issue Retired By Balances Issuances Retirements Balances IEPA Waterworks Revolving Loan ($11,000,000), due in semi- annual installments of $353,428, including interest at 2.57% through September 9, 2024. Waterworks $ 3,907,155 $ - $ 610,339 $ 3,296,816 59 ===== PDF PAGE 76 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Long-Term Liability Activity Changes in long-term liabilities during the fiscal year were as follows: Amounts Beginning Ending Due within Type of Debt Balances Additions Deductions Balances One Year Governmental Activities Compensated Absences $ 1,604,193 $ 333,182 $ 166,591 $ 1,770,784 $ 354,157 Net Pension Liability IMRF 2,800,196 - 1,805,264 994,932 - Police Pension 29,040,665 5,334,316 - 34,374,981 - Total OPEB Liability - RBP 4,313,858 400,954 - 4,714,812 - 37,758,912 6,068,452 1,971,855 41,855,509 354,157 Business-type Activities Compensated Absences 140,084 39,238 19,619 159,703 31,941 Net Pension Liability IMRF 2,910,994 - 1,889,853 1,021,141 - Total OPEB Liability - RBP 1,933,376 183,626 - 2,117,002 - IEPA Revolving Loan 3,907,155 - 610,339 3,296,816 626,125 $ 8,891,609 $ 222,864 $ 2,519,811 $ 6,594,662 $ 658,066 For governmental activities, the General Fund and makes payments on the net pension liabilities, the total OPEB liability, and the compensated absences. For business-type activities, the Waterworks Fund makes payments on the IEPA revolving loan. The compensated absences, the net pension liability, and the total OPEB liability are liquidated from the Waterworks and Sewerage Funds. Line of Credit The City has a $3,500,000 line of credit with Fifth Third Bank maturing on November 1, 2020. Interest on the line of credit is payable at a floating rate of 30-day LIBOR + .75%. The line of credit is secured by a general obligation pledge. At December 31, 2019, the balance is $0 as the City has not drawn on the line of credit. 60 ===== PDF PAGE 77 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Noncommitment Debt Special Service Area Bonds Special service area bonds have been paid in full as of the date of this report. These bonds are not an obligation of the government and are secured by the levy of an annual tax on the real property within the special service area. The government is in no way liable for repayment but is only acting as agent for the property owners in levying and collecting the tax, and forwarding the collections to bondholders. Industrial Development Revenue Bonds The City has issued Industrial Development Revenue Bonds (IDRB) to provide financial assistance to private organizations for the construction and acquisition of industrial and commercial facilities deemed to be in the public interest and to provide financing for low interest mortgages to qualified applicants. The bonds are secured solely by the property or mortgages financed and are payable solely from the payments received on the underlying mortgage loans on the property. The City is not obligated in any manner for the repayment of the bonds. Accordingly, the bonds outstanding are not recorded as a liability in these financial statements. As of December 31, 2019, the IDRB bonds matured resulting in an outstanding balance of $0. Debt Service Requirements to Maturity The annual debt service requirements to maturity, including principal and interest, are as follows: Business-Type Activities IEPA Revolving Fiscal Loan Year Principal Interest Totals 2020 $ 626,125 $ 80,731 $ 706,856 2021 642,320 64,536 706,856 2022 658,933 47,923 706,856 2023 675,977 30,879 706,856 2024 693,461 13,395 706,856 Totals $ 3,296,816 $ 237,464 $ 3,534,280 61 ===== PDF PAGE 78 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Legal Debt Margin Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property…(2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent:…indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum…shall not be included in the foregoing percentage amounts.” To date the Illinois General Assembly has set no limits for home rule municipalities. The City is a home rule municipality. NET POSITION CLASSIFICATIONS Net investment in capital assets was comprised of the following as of December 31, 2019: Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 54,970,284 Business-Type Activities Capital Assets - Net of Accumulated Depreciation 98,828,924 Less Capital Related Debt: IEPA Revolving Loan (3,296,816) Net Investment in Capital Assets $ 95,532,108 FUND BALANCE CLASSIFICATIONS In the governmental funds financial statements, the City considers restricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. The City first utilizes committed, then assigned and then unassigned fund balance when an expenditure is incurred for purposes for which all three unrestricted fund balances are available. Minimum Fund Balance Policy. The City’s budget policy states that General Fund should maintain a minimum fund balance equal to 25% of current budget projected revenue, with a target goal to increase the amount to 35%. 62 ===== PDF PAGE 79 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued FUND BALANCE CLASSIFICATIONS – Continued The following is a schedule of fund balance classifications for the governmental funds as of the date of this report: TIF Public Special Tax Capital General Benefit Allocation #1 Improvement Nonmajor Totals Fund Balances Nonspendable Prepaids/Inventories $ 105,861 $ - $ 1,605 $ 963 $ - $ 108,429 Restricted Motor Fuel Tax 981,483 - - - - 981,483 Public Safety 554,009 - - - - 554,009 Property Taxes TIF - - 929,620 - 205,783 1,135,403 Public Benefit Projects - 944,162 - - - 944,162 1,535,492 944,162 929,620 - 205,783 3,615,057 Assigned Capital Projects - - - 3,067,428 1,678,296 4,745,724 Unassigned 13,844,971 - - - - 13,844,971 Total Fund Balances $ 15,486,324 $ 944,162 $ 931,225 $ 3,068,391 $ 1,884,079 $ 22,314,181 Nonspendable Fund Balance. Consists of resources that cannot be spent because they are either: a) not in a spendable form; or b) legally or contractually required to be maintained intact. Restricted Fund Balance. Consists of resources 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 Fund Balance. Consists of resources constrained (issuance of an ordinance) to specific purposes by the government itself, using its highest level of decision-making authority, the City Council; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint. Assigned Fund Balance. Consists of amounts that are constrained by the City Council’s intent to be used for specific purposes but are neither restricted nor committed. Intent is expressed by: a) the City Council itself; or b) a body or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. The City’s highest level of decision-making authority is the City Council, who is authorized to assign amounts to a specific purpose. 63 ===== PDF PAGE 80 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued FUND BALANCE CLASSIFICATIONS – Continued Unassigned Fund Balance. Consists of residual net resources of a fund that has not been restricted, committed, or assigned within the General Fund and deficit fund balances of other governmental funds. NOTE 4 – OTHER INFORMATION RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and injuries to the City’s employees. These risks are provided for through participation in the Intergovernmental Risk Management Agency (IRMA) and private insurance coverage. The City has purchased insurance from private insurance companies, covered risks included medical, dental, life, and other. Premiums have been displayed as expenditures/expenses in appropriate funds. There were no significant changes in insurance coverage from the prior year and settlements did not exceed insurance coverage in any of the past three fiscal years. IRMA is an organization of municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperation’s Statute to pool their risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers’ compensation claim administration/litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. The City’s payments to IRMA are displayed on the financial statements as expenditures/expenses in appropriate funds. The City assumes the first $2,500 of each occurrence, and IRMA has a mix of self- insurance and commercial insurance at various amounts above that level. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of Directors. The City does not exercise any control over the activities of the Agency beyond its representation on the Board of Directors. Initial contributions are determined each year based on the individual members’ eligible revenue as defined in the by-laws of IRMA and experience modification factors based on past member loss experience. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. Supplemental contributions may be required to fund these deficits. 64 ===== PDF PAGE 81 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued CONTINGENT LIABILITIES Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s attorneys, the resolution of these matters will not have a material adverse effect on the financial condition of the City. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. 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 City expects such amounts, if any, to be immaterial. EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS The City contributes to two defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), a defined benefit agent multiple-employer public employee retirement system; and the Police Pension Plan that is a single-employer pension plan. Separate, audited GAAP-basis financial statements for the Police Pension Plan can be obtained from the Treasurer of the Police Pension Plan at 475 Main Street, West Chicago, IL 60185. IMRF does issue a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole, but not by individual employer. That report may be obtained online at www.imrf.org. The benefit, benefit levels, employee contributions, and employer contributions are governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly. The aggregate amount of pension expense recognized for the two pension plans is: Expenses Net Pension Deferred Deferred (Revenues) Liabilities Outflows Inflows IMRF 695,801 2,016,073 546,051 2,047,244 Police Pension 4,403,149 34,374,981 10,386,618 3,742,211 5,098,950 56,346,067 10,295,793 (8,597,521) 65 ===== PDF PAGE 82 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) Plan Descriptions Plan Administration. All employees (other than those covered by the Police Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required; benefits and refunds are recognized as an expense and liability when due and payable. 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). IMRF provides two tiers of pension benefits. 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. 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. 66 ===== PDF PAGE 83 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) – Continued Plan Descriptions – Continued Plan Membership. As of December 31, 2019, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 102 Inactive Plan Members Entitled to but not yet Receiving Benefits 55 Active Plan Members 68 Total 225 Contributions. As set by statute, the City’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. For the year-ended December 31, 2019, the City’s contribution was 9.40% of covered payroll. Net Pension Liability. The City’s net pension liability was measured as of December 31, 2019. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed, as of December 31, 2019, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Market Actuarial Assumptions Interest Rate 7.25% Salary Increases 3.35% to 14.25% Cost of Living Adjustments 2.50% Inflation 2.50% 67 ===== PDF PAGE 84 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) – Continued Plan Descriptions – Continued Actuarial Assumptions – Continued. For non-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 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-2017 (base year 2015). 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-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 Expected Real Asset Class Target Rate of Return Fixed Income 28.00% 3.25% Domestic Equities 37.00% 5.75% International Equities 18.00% 6.50% Real Estate 9.00% 5.20% Blended 7.00% 3.60% - 7.60% Cash and Cash Equivalents 1.00% 1.85% Discount Rate The discount rate used to measure the total pension liability was 7.25%, the same as in prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’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 period of projected benefit payments to determine the total pension liability. 68 ===== PDF PAGE 85 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) – Continued Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the City calculated using the discount rate as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Net Pension Liability/(Asset) $ 6,917,798 $ 2,016,073 $ (1,993,659) Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) Balances at December 31, 2018 $ 37,789,801 $ 32,078,611 $ 5,711,190 Changes for the Year: Service Cost 602,034 - 602,034 Interest on the Total Pension Liability 2,692,802 - 2,692,802 Difference Between Expected and Actual Experience of the Total Pension Liability (172,461) - (172,461) Changes of Assumptions - - - Contributions - Employer - 554,570 (554,570) Contributions - Employees - 265,485 (265,485) Net Investment Income - 6,121,775 (6,121,775) Benefit Payments, including Refunds of Employee Contributions (1,897,435) (1,897,435) - Other (Net Transfer) - (124,338) 124,338 Net Changes 1,224,940 4,920,057 (3,695,117) Balances at December 31, 2019 $ 39,014,741 $ 36,998,668 $ 2,016,073 69 ===== PDF PAGE 86 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) – Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2019, the City recognized pension expense of $695,801. At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Totals Difference Between Expected and Actual Experience $ 42,073 $ (228,865) $ (186,792) Change in Assumptions 503,978 (223,427) 280,551 Net Difference Between Projected and Actual Earnings on Pension Plan Investments - (1,594,952) (1,594,952) Total Deferred Amounts Related to IMRF $ 546,051 $ (2,047,244) $ (1,501,193) Amounts 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: Net Deferred Outflows/ Fiscal (Inflows) Year of Resources 2020 $ (536,190) 2021 (302,003) 2022 104,926 2023 (767,926) 2024 - Thereafter - Total $ (1,501,193) 70 ===== PDF PAGE 87 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan Plan Descriptions Plan Administration. The Police Pension Plan is a single-employer defined benefit pension plan that covers all sworn police personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The City accounts for the Fund as a pension trust fund. The Fund is governed by a five-member pension board. Two members of the Board are appointed by the City Mayor, one member is elected by pension beneficiaries and two members are elected by active police members. Plan Membership. At December 31, 2019, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits 31 Inactive Plan Members Entitled to but not yet Receiving Benefits 4 Active Plan Members 43 Total 78 Benefits Provided. The following is a summary of the Police Pension Plan as provided for in Illinois State Statutes. The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of ½ of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually thereafter. 71 ===== PDF PAGE 88 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan – Continued Plan Descriptions – Continued Benefits Provided – Continued. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Police officer salary for the pension purposes is capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., ½ percent for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1st after the police officer retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 percent of ½ of the change in the Consumer Price Index for the proceeding calendar year. Contributions. 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 City is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the City to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past service cost by the year 2040. For the year-ended December 31, 2019, the City’s contribution was 43.77% of covered payroll. Concentrations. At December 31, 2019, the Pension Fund does not have any investments over 5 percent of net position available for benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). 72 ===== PDF PAGE 89 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan – Continued Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of December 31, 2019, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Market Actuarial Assumptions Interest Rate 6.50% Salary Increases 3.50% - 8.25% Cost of Living Adjustments 3.50% Inflation 2.50% Mortality rates were based on Pub-2010 adjusted for Plan Status, Demographics, and Illinois Public Pension Data. Discount Rate A Single Discount Rate of 5.60% was used to measure the total pension liability, while the prior year used 6.20%. 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 6.50%, the municipal bond rate is 2.74%, and the resulting Single Discount Rate is 5.60%. 73 ===== PDF PAGE 90 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan – Continued Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the City calculated using the discount rate as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Current 1% Decrease Discount Rate 1% Increase (4.60%) (5.60%) (6.60%) Net Pension Liability $ 46,867,578 $ 34,374,981 $ 24,564,162 Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) Balances at December 31, 2018 $ 58,625,684 $ 29,585,019 $ 29,040,665 Changes for the Year: Service Cost 1,296,222 - 1,296,222 Interest on the Total Pension Liability 3,560,231 - 3,560,231 Difference Between Expected and Actual 375,254 - 375,254 Experience of the Total Pension Liability 7,382,782 - 7,382,782 Changes of Assumptions 269,777 - 269,777 Contributions - Employer - 1,949,252 (1,949,252) Contributions - Employees - 441,291 (441,291) Net Investment Income - 5,220,951 (5,220,951) Benefit Payments, including Refunds of Employee Contributions (2,405,200) (2,405,200) - Administration Expense - (61,544) 61,544 Net Changes 10,479,066 5,144,750 5,334,316 Balances at December 31, 2019 $ 69,104,750 $ 34,729,769 $ 34,374,981 74 ===== PDF PAGE 91 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan – Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2019, the City recognized pension expense of $4,403,149. At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Totals Difference Between Expected and Actual Experience $ 1,642,329 $ (414,712) $ 1,227,617 Change in Assumptions 8,744,289 (1,951,950) 6,792,339 Net Difference Between Projected and Actual Earnings on Pension Plan Investments - (1,375,549) (1,375,549) Total Deferred Amounts Related to Police Pension $ 10,386,618 $ (3,742,211) $ 6,644,407 Amounts 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: Net Deferred Outflows/ Fiscal (Inflows) Year of Resources 2020 $ 1,507,335 2021 1,562,595 2022 1,294,423 2023 (31,293) 2024 773,546 Thereafter 1,537,801 Total $ 6,644,407 75 ===== PDF PAGE 92 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS General Information about the OPEB Plan Plan Description. The City’s defined benefit OPEB plan, Retiree Benefits Plan (RBP), provides OPEB for eligible permanent full-time general and public safety employees of the City. RBP is a single- employer defined benefit OPEB plan administered by the City. Article 11 of the State Compiled Statutes grants the authority to establish and amend the benefit terms and financing requirements to the City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits Provided. RBP provides healthcare insurance coverage and benefits for eligible retirees and their dependents. The premium cost terms provide for payment of 100 percent of health insurance premiums for non-Medicare-eligible retirees and 100 percent of health insurance premiums for Medicare-eligible retirees paid by retirees. Plan Membership. As of December 31, 2019, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 12 Inactive Plan Members Entitled to but not yet Receiving Benefits - Active Plan Members 73 Total 85 Total OPEB Liability The City’s total OPEB liability was measured as of December 31, 2019, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Other Inputs. The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: 76 ===== PDF PAGE 93 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS – Continued Total OPEB Liability – Continued Actuarial Assumptions and Other Inputs – Continued. Inflation 2.25% Salary Increases 3.00% Discount Rate 2.74% Healthcare Cost Trend Rates 6.60% - 7.70% for 2019, decreasing to an ultimate rate of 5.00% for 2028 and later years Retirees' Share of Benefit-Related Costs 100% of projected health insurance premiums for retirees The discount rate was based on the Bond Buyer 20-Bond GO Index. Mortality rates were based on the Sex Distinct Raw Rates as developed in the RP-2010(A) Study improved to 2017 using MP-2019 Improvement Rates. These rates are improved generationally using MP-2019 Improvement Rates. Change in the Total OPEB Liability Total OPEB Liability Balance at December 31, 2018 $ 6,247,234 Changes for the Year: Service Cost 46,336 Interest on the Total Pension Liability 251,531 Changes of Benefit Terms - Difference Between Expected and Actual Experience (1,247,848) Changes of Assumptions or Other Inputs 1,759,270 Benefit Payments (224,709) Net Changes 584,580 Balance at December 31, 2019 $ 6,831,814 77 ===== PDF PAGE 94 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2019 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS – Continued Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability, calculated using a Single Discount Rate of 2.74%, as well as what the total OPEB liability would be if it were calculated using a Single Discount Rate that is one percentage point lower or one percentage point higher: Current 1% Decrease Discount Rate 1% Increase (1.74%) (2.74%) (3.74%) Total OPEB Liability $ 8,035,353 $ 6,831,814 $ 5,881,530 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability, calculated using a varied Healthcare Trend Rate, as well as what the total OPEB liability would be if it were calculated using a Healthcare Trend Rate that is one percentage point lower or one percentage point higher: Healthcare Cost Trend 1% Decrease Rates 1% Increase (Varies) (Varies) (Varies) Total OPEB Liability $ 5,853,619 $ 6,831,814 $ 8,053,842 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2019, the City recognized OPEB expense of $358,475. Per GASB Statement No. 75, under the Alternative Measurement Method, changes in Total OPEB Liability are immediately recognized as expense, resulting in no deferred outflows of resources or deferred inflows of resources related to OPEB. SUBSEQUENT EVENT Subsequent to the date of the financial statements and prior to the audit opinion date, the World Health Organization declared the COVID-19 virus a public health emergency. As of the date of this report, the extent of the impact of COVID-19 on the City’s operations and financial position cannot be determined. 78 ===== PDF PAGE 95 ===== [Extraction: embedded PDF text] REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information includes financial information and disclosures that are required by the GASB but are not considered a part of the basic financial statements. Such information includes: • Schedule of Employer Contributions Illinois Municipal Retirement Fund Police Pension Fund • Schedule of Changes in the Employer’s Net Pension Liability Illinois Municipal Retirement Fund Police Pension Fund • Schedule of Investment Returns Police Pension Fund • Schedule of Changes in the Employer's Total OPEB Liability Retiree Benefits Plan • Budgetary Comparison Schedule General Fund Public Benefit – Special Revenue Fund TIF Special Tax Allocation #1 – Special Revenue Fund Notes to the Required Supplementary Information Budgetary Information – Budgets are adopted on a basis consistent with generally accepted accounting principles. ===== PDF PAGE 96 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Illinois Municipal Retirement Fund Required Supplementary Information Schedule of Employer Contributions December 31, 2019 Contributions in Relation to Contributions as Actuarially the Actuarially Contribution a Percentage of Fiscal Determined Determined Excess/ Covered Covered Year Contribution Contribution (Deficiency) Payroll Payroll 2015 $ 673,208 $ 673,208 $ - $ 5,107,796 13.18% 2016 760,973 760,973 - 5,666,218 13.43% 2017 725,095 725,095 - 5,722,922 12.67% 2018 748,485 748,485 - 6,031,302 12.41% 2019 554,570 554,570 - 5,899,672 9.40% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 24 Years Asset Valuation Method 5-Year Smoothed Market Inflation 2.50% Salary Increases 3.35% - 14.25% Investment Rate of Return 7.50% Retirement Age See the Notes to the Financial Statements Mortality IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 79 ===== PDF PAGE 97 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Required Supplementary Information Schedule of Employer Contributions December 31, 2019 Contributions in Relation to Contributions as Actuarially the Actuarially Contribution a Percentage of Fiscal Determined Determined Excess/ Covered Covered Year Contribution Contribution (Deficiency) Payroll Payroll 2015 $ 1,953,538 $ 1,800,000 $ (153,538) $ 4,092,955 43.98% 2016 2,496,300 2,174,000 (322,300) 4,279,402 50.80% 2017 2,357,486 2,358,000 514 4,429,181 53.24% 2018 2,499,282 2,500,000 718 4,352,534 57.44% 2019 2,563,133 1,949,252 (613,881) 4,452,989 43.77% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 18 Years Asset Valuation Method Market Value Inflation 2.50% Salary Increases 3.50% - 8.25% Investment Rate of Return 6.50% Retirement Age See the Notes to the Financial Statements Mortality Independent Actuary 2016 Illinois Police Mortality Rates Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 80 ===== PDF PAGE 98 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Illinois Municipal Retirement Fund Required Supplementary Information Schedule of Changes in the Employer's Net Pension Liability December 31, 2019 2015 Total Pension Liability Service Cost $ 571,996 Interest 2,352,359 Differences Between Expected and Actual Experience (9,382) Change of Assumptions 80,218 Benefit Payments, Including Refunds of Member Contributions (1,512,334) Net Change in Total Pension Liability 1,482,857 Total Pension Liability - Beginning 31,876,833 Total Pension Liability - Ending $ 33,359,690 Plan Fiduciary Net Position Contributions - Employer $ 673,208 Contributions - Members 230,043 Net Investment Income 140,645 Benefit Payments, Including Refunds of Member Contributions (1,512,334) Administrative Expense 398,615 Net Change in Plan Fiduciary Net Position (69,823) Plan Net Position - Beginning 28,433,476 Plan Net Position - Ending $ 28,363,653 Employer's Net Pension Liability $ 4,996,037 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 85.02% Covered Payroll $ 5,107,796 Employer's Net Pension Liability as a Percentage of Covered Payroll 97.81% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 81 ===== PDF PAGE 99 ===== [Extraction: embedded PDF text] 2016 2017 2018 2019 563,551 620,392 566,525 602,034 2,455,010 2,609,972 2,599,095 2,692,802 616,330 (516,181) 89,045 (172,461) (126,634) (1,103,990) 1,066,640 - (1,553,071) (1,650,895) (1,805,678) (1,897,435) 1,955,186 (40,702) 2,515,627 1,224,940 33,359,690 35,314,876 35,274,174 37,789,801 35,314,876 35,274,174 37,789,801 39,014,741 760,973 725,095 748,485 554,570 254,980 262,899 271,408 265,485 1,966,231 5,355,309 (1,942,525) 6,121,775 (1,553,071) (1,650,895) (1,805,678) (1,897,435) 259,549 (416,512) 478,710 (124,338) 1,688,662 4,275,896 (2,249,600) 4,920,057 28,363,653 30,052,315 34,328,211 32,078,611 30,052,315 34,328,211 32,078,611 36,998,668 5,262,561 945,963 5,711,190 2,016,073 85.10% 97.32% 84.89% 94.83% 5,666,218 5,722,922 6,031,032 5,899,672 92.88% 16.53% 94.70% 34.17% 82 ===== PDF PAGE 100 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Required Supplementary Information Schedule of Changes in the Employer's Net Pension Liability December 31, 2019 2015 Total Pension Liability Service Cost $ 1,339,124 Interest 2,354,602 Change of Benefit Terms - Differences Between Expected and Actual Experience 3,296,819 Change of Assumptions 6,855,504 Benefit Payments, Including Refunds of Member Contributions (1,595,484) Net Change in Total Pension Liability 12,250,565 Total Pension Liability - Beginning 41,676,250 Total Pension Liability - Ending $ 53,926,815 Plan Fiduciary Net Position Contributions - Employer $ 1,800,000 Contributions - Members 416,324 Net Investment Income 1,079,639 Benefit Payments, Including Refunds of Member Contributions (1,595,484) Administrative Expense (81,217) Net Change in Plan Fiduciary Net Position 1,619,262 Plan Net Position - Beginning 21,715,759 Plan Net Position - Ending $ 23,335,021 Employer's Net Pension Liability $ 30,591,794 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 43.27% Covered Payroll $ 4,092,955 Employer's Net Pension Liability as a Percentage of Covered Payroll 747.43% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 83 ===== PDF PAGE 101 ===== [Extraction: embedded PDF text] 2016 2017 2018 2019 1,346,476 1,426,187 1,349,278 1,296,222 3,142,264 3,240,378 3,419,420 3,560,231 - - - 269,777 (372,812) 324,349 (338,074) 375,254 (631,278) (1,417,146) (1,140,533) 7,382,782 (1,696,065) (1,958,572) (1,995,003) (2,405,200) 1,788,585 1,615,196 1,295,088 10,479,066 53,926,815 55,715,400 57,330,596 58,625,684 55,715,400 57,330,596 58,625,684 69,104,750 2,174,000 2,358,000 2,500,000 1,949,252 427,412 430,974 432,433 441,291 1,820,171 3,115,545 (1,163,991) 5,220,951 (1,696,065) (1,958,572) (1,995,003) (2,405,200) (71,463) (61,553) (61,890) (61,544) 2,654,055 3,884,394 (288,451) 5,144,750 23,335,021 25,989,076 29,873,470 29,585,019 25,989,076 29,873,470 29,585,019 34,729,769 29,726,324 27,457,126 29,040,665 34,374,981 46.65% 52.11% 50.46% 50.26% 4,279,402 4,429,181 4,352,534 4,452,989 694.64% 619.91% 667.21% 771.95% 84 ===== PDF PAGE 102 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Required Supplementary Information Schedule of Investment Returns December 31, 2019 Annual Money- Weighted Rate of Return, Net Fiscal of Investment Year Expense 2015 4.99% 2016 7.85% 2017 12.01% 2018 (3.89%) 2019 17.79% Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 85 ===== PDF PAGE 103 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Retiree Benefits Plan Required Supplementary Information Schedule of Changes in the Employer's Total OPEB Liability December 31, 2019 2017 2018 2019 Total OPEB Liability Service Cost $ 99,027 $ 102,436 $ 46,336 Interest 220,826 224,412 251,531 Changes in Benefit Terms - - - Differences Between Expected and Actual Experience - - (1,247,848) Change of Assumptions or Other Inputs - (485,359) 1,759,270 Benefit Payments (205,343) (226,720) (224,709) Net Change in Total OPEB Liability 114,510 (385,231) 584,580 Total OPEB Liability - Beginning 6,517,955 6,632,465 6,247,234 Total OPEB Liability - Ending 6,632,465 6,247,234 6,831,814 Covered Payroll $ 6,941,151 $ 7,149,386 $ 7,406,846 Total OPEB Liability as a Percentage of Covered Payroll 95.55% 87.38% 92.24% Notes: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. Changes of Benefit Terms. There was no change in the retirees' share of health insurance premiums. Changes of Assumptions. In 2019, amounts reflect adjustments to assumptions for inflation rates, mortality rates, mortality improvement rates, retirement rates, termination rates, disability rates, and coverage election splits to better reflect actual plan experience. The discount rate was also changed from 4.10% in 2018 to 2.74% in 2019. 86 ===== PDF PAGE 104 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Revenues Taxes $ 4,433,400 $ 4,433,400 $ 4,445,630 Intergovernmental 9,514,000 9,514,000 9,864,117 Charges for Services 2,249,800 2,249,800 3,469,173 Licenses and Permits 762,000 762,000 1,108,091 Fines and Forfeitures 825,000 825,000 1,015,725 Interest Income 5,000 5,000 13,841 Miscellaneous 450,000 450,000 692,951 Total Revenues 18,239,200 18,239,200 20,609,528 Expenditures General Government 9,678,800 9,887,500 8,153,755 Public Safety 10,782,200 10,782,200 9,886,973 Total Expenditures 20,461,000 20,669,700 18,040,728 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,221,800) (2,430,500) 2,568,800 Other Financing (Uses) Transfer Out - - (500,000) Net Change in Fund Balance $ (2,221,800) $ (2,430,500) 2,068,800 Fund Balance - Beginning 13,417,524 Fund Balance - Ending $ 15,486,324 87 ===== PDF PAGE 105 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Public Benefit - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Revenues Interest Income $ 800 $ 800 $ 2,245 Expenditures Capital Outlay Building and Grounds Improvement - - - Net Change in Fund Balance $ 800 $ 800 2,245 Fund Balance - Beginning 941,917 Fund Balance - Ending $ 944,162 88 ===== PDF PAGE 106 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TIF Special Tax Allocation #1 - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Revenues Taxes Property Taxes $ 950,000 $ 950,000 $ 1,035,146 Interest Income 500 500 2,761 Miscellaneous 5,300 5,300 21,875 Total Revenues 955,800 955,800 1,059,782 Expenditures General Government 1,086,500 1,086,500 740,795 Debt Service Interest and Fiscal Charges 700 700 250 Total Expenditures 1,087,200 1,087,200 741,045 Net Change in Fund Balance $ (131,400) $ (131,400) 318,737 Fund Balance - Beginning 612,488 Fund Balance - Ending $ 931,225 89 ===== PDF PAGE 107 ===== [Extraction: embedded PDF text] OTHER SUPPLEMENTARY INFORMATION Other supplementary information includes financial statements and schedules not required by the GASB, nor a part of the basic financial statements, but are presented for purposes of additional analysis. Such statements and schedules include: • Budgetary Comparison Schedules – Major Governmental Funds • Combining Statements – Nonmajor Governmental Funds • Budgetary Comparison Schedules – Nonmajor Governmental Funds • Budgetary Comparison Schedules – Enterprise Funds ===== PDF PAGE 108 ===== [Extraction: embedded PDF text] INDIVIDUAL FUND DESCRIPTIONS GENERAL FUND The General Fund, a major fund, accounts for all financial resources except those required to be accounted for in another fund. SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than fiduciary funds or capital projects funds) that are legally restricted to expenditure for specified purposes. Public Benefit Fund The Public Benefit Fund, a major fund, accounts for the accumulation of funds from Kerr McGee to fund the public portion of certain improvements. TIF Special Tax Allocation Fund #1 The TIF Special Tax Allocation #1 Fund, a major fund, accounts for the accumulation of funds from incremental revenue generated within the TIF #1 area. TIF Special Tax Allocation Fund #2 The TIF Special Tax Allocation #2 Fund, a nonmajor fund, accounts for the accumulation of funds from incremental revenue generated within the TIF #2 area. TIF Special Tax Allocation Fund #3 The TIF Special Tax Allocation #3 Fund, a nonmajor fund, accounts for the accumulation of funds from incremental revenue generated within the TIF #3 area. CAPITAL PROJECTS FUND Capital Projects Funds are created to account for all resources used for the acquisition of capital facilities by a governmental unit except those financed by Proprietary Funds. Capital Improvement Fund The Capital Improvement Fund, a major fund, accounts for property taxes, utility taxes and home rule sales taxes that are set aside for funding major capital improvements throughout the City. Capital Equipment Replacement Fund The Capital Equipment Replacement Fund, a nonmajor fund accounts for funds set aside be the City Council during the budget process and costs allocated to user departments for future capital fleet purchases. ===== PDF PAGE 109 ===== [Extraction: embedded PDF text] INDIVIDUAL FUND DESCRIPTIONS ENTERPRISE FUNDS Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where it has been decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purpose. Waterworks Fund The Waterworks Fund, a major fund, is used to account for the provision of potable water and water treatment services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations and maintenance, financing and related debt service, billing and collection. Sewerage Fund The Sewerage Fund, a major fund, is used to account for the provision of sewer repair, treatment, and improvement services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations and maintenance, financing and related debt service, billing and collection. Commuter Parking Fund The Commuter Parking Fund, a nonmajor fund, was established to account for commuter parking facilities operated be the City that are financed by user fees. PENSION TRUST FUNDS Police Pension Fund The Police Pension Fund is used to account for the accumulation of resources to be used for retirement annuity payments to employees on the police force at appropriate amounts and times in the future. Resources are contributed by employees at rates fixed by law and by the City at amounts determined by an annual actuarial study. ===== PDF PAGE 110 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Taxes Property Taxes $ 3,505,400 $ 3,505,400 $ 3,605,330 Telecommunications Tax 700,000 700,000 562,050 Amusement Tax 90,000 90,000 79,390 Personal Property Replacement Tax 138,000 138,000 198,860 4,433,400 4,433,400 4,445,630 Intergovernmental Sales Tax 3,960,000 3,960,000 3,784,136 Income Tax 2,500,000 2,500,000 2,883,008 Utility Tax 1,400,000 1,400,000 1,381,648 MFT Allotments 925,000 925,000 895,088 Use Tax 725,000 725,000 914,519 Grants 4,000 4,000 5,718 9,514,000 9,514,000 9,864,117 Charges for Services Weed Cutting Fees 2,500 2,500 6,221 Brush Collection Fees 100,000 100,000 106,680 Police Counter Service 10,000 10,000 - Police Contractual Services 448,700 448,700 446,160 Change of Occupancy Fees 90,000 90,000 131,213 Rental Inspections 200,000 200,000 244,605 Business Registration 30,000 30,000 29,164 Foreclosed or Vacant Registration 35,000 35,000 23,864 Relocate Fees 3,600 3,600 7,965 Police Towing 35,000 35,000 47,150 Plan Review Fees 20,000 20,000 13,735 Engineering Fees 350,000 350,000 1,252,000 Transfer Station Fees 550,000 550,000 678,303 Cable Franchise Fee 275,000 275,000 261,635 Arts Commission - - 2,845 Property Rental 100,000 100,000 180,916 Tower Rental Fees - - 36,717 2,249,800 2,249,800 3,469,173 90 ===== PDF PAGE 111 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Licenses and Permits Building Permits $ 500,000 $ 500,000 $ 809,550 Building Contractors Licenses 40,000 40,000 63,040 Oversize Truck Permits 20,000 20,000 42,155 Liquor Licenses 100,000 100,000 105,010 Vending Machine/Business Licenses 75,000 75,000 69,275 Other Licenses and Permits 27,000 27,000 19,061 762,000 762,000 1,108,091 Fines and Forfeits Circuit Court Fines 360,000 360,000 357,842 Local Fines 465,000 465,000 434,842 Seizures - - 223,041 825,000 825,000 1,015,725 Interest Interest Income 5,000 5,000 13,841 Miscellaneous Cemetery Lot Sales 45,000 45,000 9,350 Other Reimbursements 50,000 50,000 77,021 Health Insurance Reimbursements 155,000 155,000 155,180 IPBC and IRMA Revenue 100,000 100,000 327,963 Other Miscellaneous 100,000 100,000 123,437 450,000 450,000 692,951 Total Revenues $ 18,239,200 $ 18,239,200 $ 20,609,528 91 ===== PDF PAGE 112 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government Legislative $ 174,600 $ 174,600 $ 156,867 Administration 1,582,000 1,586,400 739,676 Administrative Services 3,105,600 3,105,600 2,769,717 Public Works 3,465,600 3,669,900 3,136,536 Community Development 1,351,000 1,351,000 1,350,959 9,678,800 9,887,500 8,153,755 Public Safety Police Department 10,782,200 10,782,200 9,886,973 Total Expenditures $ 20,461,000 $ 20,669,700 $ 18,040,728 92 ===== PDF PAGE 113 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government Legislative Personal Services Salary of Aldermen $ 33,600 $ 33,600 $ 24,760 Salary of Mayor 15,000 15,000 15,125 Salary of Corporate Counsel 3,000 3,000 3,000 Salary of City Clerk 4,500 4,500 4,538 FICA and Medicare 4,100 4,100 3,399 Contractual Services Legal Fees 40,000 40,000 49,204 Consultants 1,000 1,000 - Training and Tuition 3,000 3,000 30 Memberships/Dues/Subscriptions 45,000 45,000 36,326 Legal Notices 1,500 1,500 28 Printing and Binding 10,000 10,000 5,672 Legal Reporter Fees 600 600 551 Commodities Computer and Office Supplies 500 500 634 Postage 300 300 502 Miscellaneous Commodities 2,000 2,000 2,412 Grant Distribution 10,000 10,000 10,000 Other Charges 500 500 686 Total Legislative 174,600 174,600 156,867 93 ===== PDF PAGE 114 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government - Continued Administration Personal Services Administrative Salaries $ 211,400 $ 211,400 $ 195,657 FICA and Medicare 16,300 16,300 12,462 ICMA 9,300 9,300 9,540 IMRF 26,300 26,300 18,131 Contractual Services Legal Fees 5,500 5,500 780 Newsletter Preparation 25,000 25,000 18,464 Training and Tuition 6,500 6,500 2,435 Memberships/Dues/Subscriptions 4,500 4,500 4,291 Software Maintenance 7,300 11,700 10,678 Telephone and Alarms 21,000 21,000 56,812 Electric 1,000 1,000 999 Printing and Binding 5,000 5,000 - Advertising 25,000 25,000 10,167 Other Contractual Services 1,115,000 1,115,000 323,672 IRMA General Insurance 3,300 3,300 3,400 Commodities Sales Tax Rebate 70,000 70,000 54,958 Computer and Office Supplies 1,000 1,000 700 Gallery 200 6,000 6,000 6,000 Arts Programming Supplies 10,000 10,000 8,032 Special Events 500 500 - Gas and Oil 1,000 1,000 913 Postage 100 100 - Miscellaneous 10,000 10,000 1,531 Other Charges 1,000 1,000 54 Total Administration 1,582,000 1,586,400 739,676 94 ===== PDF PAGE 115 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government - Continued Administrative Services Personal Services Administrative Salaries $ 423,700 $ 423,700 $ 397,213 Administrative Salaries - Overtime 300 300 - FICA and Medicare 32,700 32,700 28,227 ICMA 6,900 6,900 6,691 Health/Dental/Life Insurance 1,790,000 1,790,000 1,695,437 IMRF 52,900 52,900 37,594 Contractual Services Legal Fees 46,500 46,500 15,567 Audit Fees 15,200 15,200 14,400 Consultants 4,000 4,000 149,328 Network Charges 16,500 16,500 14,331 Pre-employment Exams 20,000 20,000 18,274 Training and Tuition 12,500 12,500 2,432 Memberships/Dues/Subscriptions 4,000 4,000 2,603 Software Maintenance 111,300 111,300 83,403 Telephone and Alarms 34,000 34,000 29,577 Advertising 1,500 1,500 21 Other Contractual Services 40,200 40,200 29,475 IRMA General Insurance 3,300 3,300 3,400 Office Equipment Maintenance and Repair 59,000 59,000 18,523 Postage Meter Rental 1,700 1,700 1,613 Copier Fees 2,000 2,000 326 Commodities Computer and Office Supplies 16,500 16,500 10,114 Gas and Oil 100 100 88 Postage 6,000 6,000 4,402 Miscellaneous Commodities 600 600 219 Safety Program 5,500 5,500 5,057 Special Events 6,000 6,000 4,030 Bank Fees 13,500 13,500 11,516 Other Charges 200 200 11 95 ===== PDF PAGE 116 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government - Continued Administrative Services - Continued Capital Outlay Other Capital Outlay $ 228,500 $ 228,500 $ 63,631 MIS Replacement 150,500 150,500 122,214 Total Administrative Services 3,105,600 3,105,600 2,769,717 Public Works Personal Services Administrative Salaries 212,100 212,100 210,897 Operating Salaries 633,500 633,500 587,950 Administrative Salaries - Overtime 60,500 60,500 79,348 FICA and Medicare 69,500 69,500 66,395 IMRF 112,500 112,500 82,729 Contractual Services Legal Fees 1,000 1,000 2,948 Legal Notices 100 100 - Pre-employment Exams 500 500 545 Training and Tuition 3,500 3,500 5,223 Memberships/Dues/Subscriptions 1,300 1,300 1,541 Telephone and Alarms 50,000 50,000 60,878 Interments Program 20,000 20,000 21,100 Brush Pickup 87,900 87,900 87,850 Grounds Maintenance 53,600 53,600 47,900 Cemetery Maintenance 7,200 7,200 7,343 Janitor Contract 43,000 43,000 39,648 Heating Gas 5,000 5,000 10,051 Electric 135,000 135,000 60,354 Refuse Disposal 45,000 45,000 36,016 Other Contractual Services 135,000 135,000 36,586 96 ===== PDF PAGE 117 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government - Continued Public Works - Continued Contractual Services - Continued IRMA General Insurance $ 46,200 $ 46,200 $ 47,600 Other Insurance 11,000 11,000 17,902 Payment to Taxing Bodies 150,000 150,000 184,419 Vehicle Maintenance and Repair 40,000 40,000 50,569 Commodities Computer and Office Supplies 3,500 3,500 2,735 Parts for Vehicles 150,000 150,000 196,414 Tools and Equipment 73,500 73,500 28,735 Gas and Oil 56,500 56,500 63,642 Postage 100 100 - Uniforms and Safety Equipment 13,100 17,400 18,102 Miscellaneous 82,200 82,200 78,760 Capital Outlay Vehicles 436,300 436,300 436,300 Street Improvements 727,000 927,000 566,056 Total Public Works 3,465,600 3,669,900 3,136,536 97 ===== PDF PAGE 118 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government - Continued Community Development Personal Services Commissions Salary $ 1,000 $ 1,000 $ 465 Administrative Salaries 445,100 445,100 390,382 FICA and Medicare 34,200 34,200 28,963 IMRF 55,700 55,700 36,549 Contractual Services Legal Fees 55,000 55,000 83,881 Training and Tuition 6,600 6,600 645 Memberships/Dues/Subscriptions 3,400 3,400 2,053 Enforcement & Inspections 345,000 345,000 345,000 Plan Review 135,000 135,000 194,066 Software Maintenance 12,200 12,200 10,264 Legal Notices 4,200 4,200 2,661 Telephone and Alarms 61,200 61,200 81,495 Weed Cutting 4,000 4,000 5,171 Printing and Binding 4,200 4,200 2,692 Legal Reporter 8,500 8,500 6,104 Filing Fees 3,000 3,000 2,432 Microfiche Expenses 7,500 7,500 4,733 Other Contractual Services 69,100 69,100 70,659 IRMA General Insurance 4,500 4,500 7,455 Copier Fees 1,000 1,000 1,127 Commodities Computer and Office Supplies 5,000 5,000 2,159 Maps and Plats 800 800 282 Gas and Oil 1,800 1,800 645 Postage 800 800 - Uniforms and Safety Equipment 300 300 - Miscellaneous Commodities 500 500 448 Special Events 65,000 65,000 64,922 Prospect Development 5,000 5,000 400 Other Charges 1,500 1,500 - 98 ===== PDF PAGE 119 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government - Continued Community Development - Continued Capital Outlay Office Equipment $ 8,500 $ 8,500 $ 3,906 Vehicles 1,400 1,400 1,400 Total Community Development 1,351,000 1,351,000 1,350,959 Total General Government 9,678,800 9,887,500 8,153,755 Public Safety Police Department Personal Services Administrative Salaries 528,900 528,900 612,646 Patrolman Salaries 3,733,400 3,733,400 3,556,964 Sergeants Salaries 750,600 750,600 713,406 CSO Salaries 179,100 179,100 154,403 Contract Services Salaries 15,000 15,000 6,471 Administrative Services - Overtime 410,000 410,000 517,442 Patrolman Salaries - Overtime - - 463 CSO - Overtime 10,000 10,000 7,914 FICA and Medicare 430,500 430,500 412,775 Police Pension 2,630,000 2,630,000 1,949,252 IMRF 51,900 51,900 38,285 Contractual Services Legal Fees 113,700 113,700 119,247 Training and Tuition 44,300 44,300 31,600 Officer Training and Mileage 4,300 4,300 2,759 Memberships/Dues/Subscriptions 11,600 11,600 12,218 Software Maintenance 74,800 74,800 41,697 Telephone and Alarms 194,500 194,500 223,311 Printing and Binding 7,000 7,000 4,955 Grounds Maintenance 1,100 1,100 1,025 DuComm Quarterly Share 548,700 548,700 530,642 Other Contractual Services 117,000 117,000 123,993 Graffiti Removal 12,000 12,000 12,370 Reception Support 137,100 137,100 125,114 99 ===== PDF PAGE 120 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Public Safety - Continued Police Department - Continued Contractual Services - Continued Crossing Guard - Contractual $ 36,000 $ 36,000 $ 37,508 IRMA General Insurance 175,800 175,800 179,986 Other Insurance 15,000 15,000 4,435 Radio/Radar Equipment Maint. and Repair 18,600 18,600 14,075 Office Equipment and Repair 11,300 11,300 9,706 Postage Meter Rental 1,000 1,000 958 Copier Fees 10,000 10,000 7,072 Commodities Computer and Office Supplies 5,500 5,500 5,915 Field Equipment 28,900 28,900 29,525 Gas and Oil 80,600 80,600 67,389 Postage 6,100 6,100 5,274 Uniform and Safety Equipment 54,500 54,500 47,875 Vehicle License Fees 1,100 1,100 1,007 First Aid Supplies 1,500 1,500 1,109 Ammunition and Firearms 39,600 39,600 14,462 Educational Programming 11,000 11,000 9,324 Cert Supplies 5,000 5,000 3,272 Miscellaneous Commodities 15,300 15,300 17,452 Tools and Equipment 300 300 10 Capital Outlay Vehicles 259,600 259,600 231,667 Total Public Safety 10,782,200 10,782,200 9,886,973 Total Expenditures $ 20,461,000 $ 20,669,700 $ 18,040,728 100 ===== PDF PAGE 121 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TIF Special Tax Allocation #1 - Special Revenue Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual General Government Personal Services Administrative Salaries $ 304,700 $ 304,700 $ 280,610 Operational Salaries 46,900 46,900 54,546 Administrative Salaries - Overtime 9,000 9,000 5,902 FICA and Medicare 27,600 27,600 25,439 Health/Dental/Life Insurance 70,100 70,100 65,168 Unemployment Insurance - - 258 IMRF 44,800 44,800 31,272 Contractual Services Legal Fees 5,000 5,000 3,615 Memberships/Dues/Subscriptions 900 900 1,100 Legal Notices 1,000 1,000 - Telephone and Alarms 8,500 8,500 11,880 Grounds Maintenance 14,900 14,900 15,350 Other Contractual Services 79,100 79,100 47,250 Payment to Taxing Bodies 85,000 85,000 85,631 Commodities Postage 500 500 - Special Events 43,000 43,000 42,236 Prospect Development 2,000 2,000 Capital Outlay Building Grounds Improvement 250,000 250,000 2,815 Land 48,500 48,500 52,252 Façade Improvement 30,000 30,000 10,000 Streetscape Programs 5,000 5,000 5,471 Retail Grant Programs 10,000 10,000 - 1,086,500 1,086,500 740,795 Debt Service Interest and Fiscal Charges 700 700 250 Total Expenditures $ 1,087,200 $ 1,087,200 $ 741,045 101 ===== PDF PAGE 122 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Capital Improvement - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Revenues Taxes Utility Taxes $ 850,000 $ 850,000 $ 823,860 Intergovernmental Sales Taxes 2,650,000 2,650,000 2,771,516 Grants 400,000 400,000 122,826 Interest Income 2,000 2,000 5,502 Miscellaneous 4,100 4,100 10,074 Total Revenues 3,906,100 3,906,100 3,733,778 Expenditures Capital Outlay 8,212,700 8,743,700 5,950,999 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,306,600) (4,837,600) (2,217,221) Other Financing Sources Transfer In 500,000 500,000 500,000 Net Change in Fund Balance $ (3,806,600) $ (4,337,600) (1,717,221) Fund Balance - Beginning 4,785,612 Fund Balance - Ending $ 3,068,391 102 ===== PDF PAGE 123 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Capital Improvement - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Capital Outlay Administrative Salaries $ 139,500 $ 139,500 $ 148,356 Operational Salaries 178,500 178,500 173,328 Administrative Salaries - Overtime 10,000 10,000 20,255 FICA and Medicare 25,100 25,100 25,253 Health/Dental/Life Insurance 41,500 41,500 39,101 IMRF 40,800 40,800 31,980 Legal Fees - - 21,979 Auditing Fees 4,100 4,100 4,000 Legal Notices 1,000 1,000 412 Other Contractual Services 911,700 911,700 897,702 Traffic Signal Maintenance 25,000 25,000 38,175 Street Light Maintenance 30,000 30,000 33,758 IRMA General Insurance 4,400 4,400 4,600 Sales Tax Rebate 60,000 60,000 39,997 Materials 21,000 21,000 27,547 Street Patch Materials 1,000 1,000 456 Street Paint 2,000 2,000 1,987 Ice Control Materials 20,000 20,000 29,389 Storm Sewer Repair 25,000 25,000 9,216 Rock Salt 300,000 300,000 342,984 Bit Patch Cold 8,000 8,000 8,234 Bit Patch Hot 45,000 45,000 39,798 Building and Grounds Improvements 40,000 40,000 8,965 Street Improvements 1,136,200 1,667,200 532,678 Land 250,000 250,000 468 Street Division Lot Repair 400,000 400,000 - Other Capital Outlay 4,492,900 4,492,900 3,470,381 Total Expenditures $ 8,212,700 $ 8,743,700 $ 5,950,999 103 ===== PDF PAGE 124 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2019 Special Capital Revenue Projects TIF TIF Capital Special Tax Special Tax Equipment Allocation #2 Allocation #3 Replacement Totals ASSETS Cash and Investments $ 183,904 $ 21,879 $ 1,784,591 $ 1,990,374 Receivables - Net of Allowances Property Taxes 18,625 16,467 - 35,092 Total Assets 202,529 38,346 1,784,591 2,025,466 LIABILITIES Accounts Payable - - 106,295 106,295 DEFERRED INFLOWS OF RESOURCES Property Taxes 18,625 16,467 - 35,092 Total Liabilities and Deferred Inflows of Resources 18,625 16,467 106,295 141,387 FUND BALANCES Restricted 183,904 21,879 - 205,783 Assigned - - 1,678,296 1,678,296 Total Fund Balances 183,904 21,879 1,678,296 1,884,079 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 202,529 $ 38,346 $ 1,784,591 $ 2,025,466 104 ===== PDF PAGE 125 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2019 Special Capital Revenue Projects TIF TIF Capital Special Tax Special Tax Equipment Allocation #2 Allocation #3 Replacement Totals Revenues Taxes $ 13,522 $ 12,638 $ - $ 26,160 Charges for Services - - 896,500 896,500 Interest Income - - 1,380 1,380 Miscellaneous - - 7,786 7,786 Total Revenues 13,522 12,638 905,666 931,826 Expenditures Capital Outlay - - 361,763 361,763 Excess (Deficiency) of Revenues Over (Under) Expenditures 13,522 12,638 543,903 570,063 Other Financing Sources Disposal of Assets - - 22,171 22,171 Net Change in Fund Balances 13,522 12,638 566,074 592,234 Fund Balances - Beginning 170,382 9,241 1,112,222 1,291,845 Fund Balances - Ending $ 183,904 $ 21,879 $ 1,678,296 $ 1,884,079 105 ===== PDF PAGE 126 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TIF Special Tax Allocation #2 - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Revenues Taxes Property Taxes $ 13,000 $ 13,000 $ 13,522 Expenditures General Government Prospect Development - - - Net Change in Fund Balance $ 13,000 $ 13,000 13,522 Fund Balance - Beginning 170,382 Fund Balance - Ending $ 183,904 106 ===== PDF PAGE 127 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Capital Equipment Replacement - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Revenues Charges for Services $ 896,500 $ 896,500 $ 896,500 Interest Income 400 400 1,380 Miscellaneous - - 7,786 Total Revenues 896,900 896,900 905,666 Expenditures Capital Outlay Vehicles 1,618,300 1,671,300 361,763 Excess (Deficiency) of Revenues Over (Under) Expenditures (721,400) (774,400) 543,903 Other Financing Sources Disposal of Assets - - 22,171 Net Change in Fund Balance $ (721,400) $ (774,400) 566,074 Fund Balance - Beginning 1,112,222 Fund Balance - Ending $ 1,678,296 107 ===== PDF PAGE 128 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Waterworks - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Operating Revenues Charges for Services Water Service $ 4,500,000 $ 4,500,000 $ 3,890,786 Operating Expenses Operations Water Distribution 3,141,100 3,143,700 2,921,498 Water Treatment Plant 1,641,700 1,785,500 1,753,341 Depreciation - - 1,944,024 Total Operating Expenses 4,782,800 4,929,200 6,618,863 Operating Income (Loss) (282,800) (429,200) (2,728,077) Nonoperating Revenues (Expenses) Connection Fees 23,500 23,500 44,025 Interest Income 1,000 1,000 2,515 Other Income 91,000 91,000 211,373 Interest Expense (96,600) (96,600) (91,290) 18,900 18,900 166,623 Income (Loss) before Contributions and Capital Grants (263,900) (410,300) (2,561,454) Capital Contributions - - 171,654 Capital Grants - - 48,183 Change in Net Position $ (263,900) $ (410,300) (2,341,617) Net Position - Beginning 71,030,877 Net Position - Ending $ 68,689,260 108 ===== PDF PAGE 129 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Waterworks - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Water Distribution Personal Services Administrative Salaries $ 555,700 $ 555,700 $ 589,569 Operational Salaries 500,800 500,800 403,174 Administrative Salaries - Overtime 30,000 30,000 43,671 FICA and Medicare 83,200 83,200 74,455 ICMA 6,600 6,600 6,777 Health/Dental/Life Insurance 428,200 428,200 404,044 Unemployement Insurance - - 251 IMRF 134,900 134,900 94,718 OPEB Pension Expense - - 22,055 Contractual Services Legal Fees 35,000 35,000 112,194 Auditing Fees 14,200 14,200 13,600 JULIE System 2,500 2,500 1,740 Consultants 2,000 2,000 50,276 Pre-employment Exams 600 600 940 Training and Tuition 1,000 1,000 1,908 Memberships/Dues/Subscriptions 4,500 4,500 2,731 Software Maintenance 10,000 10,000 7,900 Legal Notices 500 500 - Telephone and Alarms 65,000 65,000 79,289 Heating and Gas 2,500 2,500 2,961 Electric 320,000 320,000 346,294 Lab Results 7,000 7,000 39,509 Refuse Disposal 1,000 1,000 - Printing and Binding 2,000 2,000 2,272 Grounds Maintenance 7,600 7,600 7,605 Other Contractual Services 350,000 350,000 37,409 IRMA General Insurance 83,600 83,600 85,900 Other Insurance - - 7,816 Vehicle Maintenance and Repair 1,500 1,500 6,263 Building Maintenance and Repair 74,000 74,000 590 Distribution System Maintenance and Repair 65,000 65,000 119,882 Pump Station Maintenance and Repair 50,000 61,900 59,402 Reservoir Maintenance and Repair 25,000 25,000 1,340 Office Equipment Maintenance and Repair 2,500 2,500 - Postage Meter Rental 1,400 1,400 1,613 109 ===== PDF PAGE 130 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Waterworks - Enterprise Fund Schedule of Operating Expenses - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Water Distribution - Continued Commodities Copier Rental $ 3,000 $ 3,000 $ 255 Computer and Office Supplies 6,500 6,500 5,742 Parts for Vehicles 12,000 12,000 22,601 Tools and Equipment 10,000 10,000 4,761 Gas and Oil 20,000 20,000 20,197 Postage 5,000 5,000 4,259 Uniforms and Safety Equipment 9,700 12,300 12,083 Parts and Equipment - Wells 13,000 13,000 2,704 Parts and Equipment - Distribution 30,000 30,000 29,507 Parts and Equipment - Pump Station 10,000 10,000 2,784 Lab Supplies 500 500 417 Water Meters 30,000 30,000 27,159 Miscellaneous Commodities 6,000 6,000 8,608 Bank Fees 15,000 15,000 13,517 Capital Outlay Vehicles 127,600 127,600 127,600 Other Capital Outlay 1,353,000 1,542,500 26,832 MIS Replacement 25,000 25,000 - 4,544,100 4,748,100 2,937,174 Less Nonoperating Items Capital Assets Capitalized (1,403,000) (1,604,400) (15,676) Total Water Distribution 3,141,100 3,143,700 2,921,498 Water Treatment Plant Personal Services Administrative Salaries 199,200 199,200 204,154 Operational Salaries 461,900 461,900 460,741 Administrative Salaries - Overtime 60,000 60,000 63,615 FICA and Medicare 55,200 55,200 54,673 IMRF 89,500 89,500 99,513 Contractual Services Training and Tuition 1,000 1,000 786 Memberships/Dues/Subscriptions 500 500 398 Telephone and Alarms 55,000 55,000 74,217 Heating and Gas 4,000 4,000 3,637 110 ===== PDF PAGE 131 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Waterworks - Enterprise Fund Schedule of Operating Expenses - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Water Treatment Plant - Continued Contractual Services - Continued Electric $ 160,000 $ 160,000 $ 160,629 Lab Results 2,500 2,500 - Grounds Maintenance 27,100 27,100 6,840 Janitorial Service 20,900 20,900 20,810 Other Contractual Services 19,000 19,000 19,888 IRMA General Insurance 30,800 30,800 31,700 Building Maintenance and Repair 10,000 152,600 160,153 WTP Operations Repair 20,000 20,000 15,959 Copier Rental 5,000 5,000 13,242 Equipment Rental 3,000 3,000 1,350 Commodities Computer and Office Supplies 1,000 1,000 601 Parts for Vehicles 2,000 2,000 1,023 Tools and Equipment 2,000 2,000 1,617 Gas and Oil 1,000 1,000 4,482 Uniforms and Safety Equipment 4,600 5,800 4,648 Parts for Building Repairs 5,000 5,000 7,839 Lab Supplies 15,000 15,000 13,388 Chemicals 375,000 375,000 426,912 Parts for WTP Operations 10,000 10,000 9,140 Miscellaneous Commodities 1,500 1,500 1,716 Capital Outlay Vehicles 4,400 4,400 4,400 Other Capital Outlay 310,000 310,000 536,577 1,956,100 2,099,900 2,404,648 Less Nonoperating Items Capital Assets Capitalized (314,400) (314,400) (651,307) Total Water Treatment Plant 1,641,700 1,785,500 1,753,341 Total Operating Expenses $ 4,782,800 $ 4,929,200 $ 4,674,839 111 ===== PDF PAGE 132 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Sewerage - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Operating Revenues Charges for Services Sewer Service $ 5,300,000 $ 5,300,000 $ 4,614,965 Operating Expenses Operations Wastewater Treatment - - 33,715 Sanitary Sewer Collection 6,163,800 9,272,900 5,408,273 Special Service Area #2 24,000 24,000 14,161 Depreciation - - 320,765 Total Operating Expenses 6,187,800 9,296,900 5,776,914 Operating Income (Loss) (887,800) (3,996,900) (1,161,949) Nonoperating Revenues Connection Fees 25,000 25,000 63,955 Property Taxes 9,000 9,000 8,882 Interest Income 1,000 1,000 5,083 Other Income 71,600 71,600 206,781 Disposal of Capital Assets - - (10,586,384) 106,600 106,600 (10,301,683) Change in Net Position $ (781,200) $ (3,890,300) (11,463,632) Net Position - Beginning 23,071,853 Net Position - Ending $ 11,608,221 112 ===== PDF PAGE 133 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Sewerage - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Wastewater Treatment Personal Services Administrative Services $ - $ - $ 29,144 FICA and Medicare - - 1,908 IMRF - - 2,663 Total Wastewater Treatment - - 33,715 Sanitary Sewer Collection Personal Services Administrative Salaries 579,400 579,400 613,084 Operational Salaries 666,900 666,900 552,002 Administrative Salaries - Overtime 40,000 40,000 62,165 FICA and Medicare 98,500 98,500 91,731 ICMA 7,000 7,000 6,777 Health/Dental/Life Insurance 428,200 428,200 404,044 Unemployement Insurance - - 251 IMRF 159,700 159,700 144,754 OPEB Pension Expense - - 22,055 Contractual Services Legal Fees 15,000 15,000 9,527 Auditing Fees 7,200 7,200 6,800 JULIE System 2,500 2,500 1,740 Consultants 2,000 2,000 50,276 Training and Tuition 6,000 6,000 6,237 Software Maintenance 12,000 12,000 11,139 Telephone and Alarms 50,000 50,000 55,720 Heating Gas 6,000 6,000 6,816 Electric 50,000 50,000 52,792 Grounds Maintenance 3,700 3,700 3,468 Other Contractual Services 2,797,900 5,518,700 2,535,459 IRMA General Insurance 87,900 87,900 91,359 Vehicle Maintenance and Repair 10,000 10,000 5,678 Lift Station Maintenance and Repair 140,000 156,200 137,312 Sewer Main Maintenance and Repair 875,000 1,247,100 258,978 Postage Meter Rental 1,400 1,400 1,613 113 ===== PDF PAGE 134 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Sewerage - Enterprise Fund Schedule of Operating Expenses - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Sanitary Sewer Collection - Continued Commodities Copier and Rental $ 2,500 $ 2,500 $ 255 Computer and Office Supplies 5,000 5,000 5,939 Parts for Vehicles 15,000 15,000 28,928 Tools and Equipment 20,000 20,000 9,712 Gas and Oil 15,000 15,000 10,807 Postage 3,000 3,000 1,812 Chemicals 2,500 2,500 3,099 Parts for Lift Stations 25,000 25,000 9,415 Material for Trench Backfill 5,000 5,000 1,940 Parts for Mains 3,000 3,000 3,030 Miscellaneous Commodities 8,000 8,000 10,342 Bank Fees 13,500 13,500 13,517 Capital Outlay Vehicles 177,700 177,700 177,700 Other Capital Outlay 2,419,000 2,909,500 - 8,760,500 12,360,100 5,408,273 Less Nonoperating Items Capital Assets Capitalized (2,596,700) (3,087,200) - Total Sanitary Sewer Collection 6,163,800 9,272,900 5,408,273 Treatment Plant Equipment Replacement Capital Outlay Other Contractual Services - - 446,629 Other Capital Outlay - - 617,120 - - 1,063,749 Less Nonoperating Items Capital Assets Capitalized - - (1,063,749) Total Treatment Plant Equipment Replacement - - - 114 ===== PDF PAGE 135 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Sewerage - Enterprise Fund Schedule of Operating Expenses - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Special Service Area #2 Personal Service Operational Salaries $ 5,200 $ 5,200 $ 4,755 Administrative Salaries - Overtime 200 200 103 FICA and Medicare 500 500 373 IMRF 700 700 459 Commodities Electric 5,000 5,000 6,216 Grounds Maintenance 2,400 2,400 2,255 Capital Outlay Other Capital Outlay 10,000 10,000 - Total Special Service Area #2 24,000 24,000 14,161 Total Operating Expenses $ 6,187,800 $ 9,296,900 $ 5,456,149 115 ===== PDF PAGE 136 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Commuter Parking - Enterprise Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Operating Revenues Charges for Services Parking Fees $ 80,500 $ 80,500 $ 81,845 Licenses and Permits Parking Permits 68,000 68,000 68,845 Total Operating Revenues 148,500 148,500 150,690 Operating Expenses Operations 194,700 194,700 100,309 Depreciation - - 13,925 Total Operating Expenses 194,700 194,700 114,234 Operating Income (Loss) (46,200) (46,200) 36,456 Nonoperating Revenues Other Income - - 10,111 Change in Net Position $ (46,200) $ (46,200) 46,567 Net Position - Beginning 592,692 Net Position - Ending $ 639,259 116 ===== PDF PAGE 137 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Commuter Parking - Enterprise Fund Schedule of Operating Expenses - Budget and Actual For the Fiscal Year Ended December 31, 2019 Budget Original Final Actual Operations Personal Services Administrative Salaries $ 7,900 $ 7,900 $ 9,942 Operational Salaries 12,700 12,700 10,066 Administrative Salaries Overtime 1,000 1,000 910 FICA and Medicare 1,700 1,700 1,597 IMRF 2,700 2,700 2,474 Contractual Services Auditing Fees 1,400 1,400 1,200 Telephone and Alarms 3,600 3,600 4,802 Electric 20,000 20,000 21,800 Printing and Binding 500 500 380 Grounds Maintenance 4,800 4,800 4,510 Janitorial Services 3,400 3,400 3,380 Contractual Services 25,000 25,000 13,738 Commodities Postage 1,000 1,000 871 Miscellaneous Commodities 3,000 3,000 3,392 Bank Fees 6,000 6,000 9,245 Capital Outlay Building and Ground Improvements 100,000 100,000 - Other Capital Outlay - - 12,002 Total Operations $ 194,700 $ 194,700 $ 100,309 117 ===== PDF PAGE 138 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Consolidated Year-End Financial Report December 31, 2019 CSFA # Program Name State Federal Other Total 494-00-0967 High-Growth Cities Program $ 6,507 - - 6,507 494-00-1488 Motor Fuel Tax Program 651,913 - - 651,913 494-10-0343 State and Community Highway Safety/ National Priority Safety Program - 1,687 - 1,687 494-42-0495 Local Surface Transportation Program - - 462,129 462,129 Other Grant Programs and Activities - 4,031 171,009 175,040 All Other Costs Not Allocated - - 38,233,046 38,233,046 Totals 658,420 5,718 38,866,184 39,530,322 118 ===== PDF PAGE 139 ===== [Extraction: embedded PDF text] REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS January 22, 2021 The Honorable City Mayor Members of the City Council City of West Chicago, Illinois We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of West Chicago, Illinois, as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 22, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. According, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 119 ===== PDF PAGE 140 ===== [Extraction: embedded PDF text] City of West Chicago, Illinois January 22, 2021 Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 120 ===== PDF PAGE 141 ===== [Extraction: OCR (rendered-page OCR)] SUPPLEMENTAL SCHEDULE ===== PDF PAGE 142 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Long-Term Debt Requirements IEPA Waterworks Revolving Loan December 31, 2019 Date of Issue October 8, 2002 Date of Maturity September 9, 2024 Authorized Issue $11,000,000 Interest Rate 2.57% Interest Dates March 9 and September 9 Principal Maturity Dates March 9 and September 9 Payable at Illinois Environmental Protection Agency CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Fiscal Requirements Year Principal Interest Totals 2020 $ 626,125 $ 80,731 $ 706,856 2021 642,320 64,536 706,856 2022 658,933 47,923 706,856 2023 675,977 30,879 706,856 2024 693,461 13,395 706,856 $ 3,296,816 $ 237,464 $ 3,534,280 121 ===== PDF PAGE 143 ===== [Extraction: embedded PDF text] STATISTICAL SECTION (Unaudited) This part of the 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 City’s overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue sources. Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. ===== PDF PAGE 144 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Net Position by Component - Last Ten Fiscal Years December 31, 2019 (Unaudited) Fiscal Fiscal Fiscal Fiscal Year Year Year Year Ended Ended Ended Ended 12/31/2010 12/31/2011 12/31/2012 12/31/2013 Governmental Activities Net Investment in Capital Assets $ 88,164,059 $ 89,692,289 $ 88,988,913 $ 87,923,548 Restricted - 1,708,723 2,340,095 2,335,435 Unrestricted 18,130,222 16,795,258 12,681,105 13,063,574 Total Governmental Activities Net Position 106,294,281 108,196,270 104,010,113 103,322,557 Business-Type Activities Net Investment in Capital Assets 36,356,211 52,523,108 53,326,830 56,991,020 Restricted 4,715,215 4,435,213 3,614,442 760,002 Unrestricted 19,199,292 4,383,915 3,913,218 3,062,891 Total Business-Type Activities Net Position 60,270,718 61,342,236 60,854,490 60,813,913 Primary Government Net Investment in Capital Assets 124,520,270 142,215,397 142,315,743 144,914,568 Restricted 4,715,215 6,143,936 5,954,537 3,095,437 Unrestricted 37,329,514 21,179,173 16,594,323 16,126,465 Total Primary Government Net Position $ 166,564,999 $ 169,538,506 $ 164,864,603 $ 164,136,470 Data Source: City Records 122 ===== PDF PAGE 145 ===== [Extraction: embedded PDF text] Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 $ 55,050,037 $ 55,619,533 $ 54,867,141 $ 49,943,090 $ 54,014,124 $ 54,970,284 3,218,725 3,305,503 2,636,828 2,216,378 2,944,399 3,615,057 12,673,884 (9,065,624) (10,545,812) (12,294,029) (15,056,308) (17,252,817) 70,942,646 49,859,412 46,958,157 39,865,439 41,902,215 41,332,524 102,204,573 103,770,812 104,429,071 105,803,874 105,354,380 95,532,108 1,040,810 1,088,552 2,409 - - 180,321 3,785,237 2,453,473 1,383,690 (554,848) (10,658,958) (14,775,689) 107,030,620 107,312,837 105,815,170 105,249,026 94,695,422 80,936,740 157,254,610 159,390,345 159,296,212 155,746,964 159,368,504 150,502,392 4,259,535 4,394,055 2,639,237 2,216,378 2,944,399 3,795,378 16,459,121 (6,612,151) (9,162,122) (12,848,877) (25,715,266) (32,028,506) $ 177,973,266 $ 157,172,249 $ 152,773,327 $ 145,114,465 $ 136,597,637 $ 122,269,264 123 ===== PDF PAGE 146 ===== [Extraction: embedded PDF text] - 128,544895,088 150,690219,837 49,692 250 114,234 896,500 FiscalYearEnded 9,256,02912,429,913 5,193,137 26,929,021 6,710,1535,776,914 12,601,301 39,530,322 4,041,7991,551,190 7,513,121 3,934,8114,678,920 8,984,258 16,497,379 12/31/2019 $ $ - 194,395732,621 158,493355,577 -- 339 127,980 278,100 FiscalYearEnded 13,667,469 10,121,701 23,789,509 6,936,3836,822,477 13,886,840 37,676,349 3,082,228 1,759,322 6,046,666 1,163,8073,106,749 4,784,626 10,831,292 12/31/2018 $ $ - -- 407 113,075 851,100 3,820704,074 141,988645,461 FiscalYearEnded 13,329,708 11,092,178 24,422,293 6,208,0866,061,776 12,382,937 36,805,230 2,365,076 1,257,271 5,181,341 4,423,8196,218,263 11,429,531 16,610,872 12/31/2017 $ $ - - -- 518 99,935 780,800 15,150716,433 139,977 FiscalYearEnded 13,704,876 11,555,771 25,261,165 6,923,6486,552,406 13,575,989 38,837,154 2,810,520 1,297,112 5,620,015 4,430,4556,070,820 10,641,252 16,261,267 12/31/2016 $ $ - -- 608 91,985 796,700 19,280688,950 139,635 FiscalYearEnded 13,280,738 12,524,954 25,806,300 6,211,3536,075,753 12,379,091 38,185,391 2,391,549 1,400,121 5,296,600 4,581,7985,768,370 1,051,704 11,541,507 16,838,107 12/31/2015 $ $ - - 12,592 1,195 140,431 788,000 51,746930,849 137,147 FiscalYearEnded 11,058,5161,955,626 9,701,162 22,729,091 5,812,5035,888,300 11,841,234 34,570,325 2,018,188 1,178,937 4,967,720 4,889,5596,022,231 11,048,937 16,016,657 12/31/2014 $ $ - - - 124 1,769 84,748 150,805806,014 131,813 FiscalYearEnded 8,912,7459,388,129 4,103,870 22,406,513 6,136,2476,073,613 12,294,608 34,701,121 2,007,4051,373,123 1,557,400 5,894,747 4,218,2525,328,023 9,678,088 15,572,835 12/31/2013 $ $ -- 83,232 38,097 112,319 181,074819,317 133,077 FiscalYearEnded 9,184,1086,730,139 8,851,135 24,886,711 6,816,8376,602,525 13,531,681 38,418,392 1,899,106 1,419,816 4,319,313 4,707,6165,492,604 1,317,363 11,650,660 15,969,973 12/31/2012 $ $ -- 193,879 40,332 127,748 78,140792,266 124,830 FiscalYearEnded 8,797,6751,591,915 8,399,317 19,023,118 5,999,1027,596,138 13,722,988 32,746,106 2,246,2021,448,786 4,565,394 4,720,3195,591,347 2,633,360 13,069,856 17,635,250 12/31/2011 $ $ -- - FiscalYearEnded Years 12/31/2010 10,307,1491,546,316135,3098,583,58063,505 20,635,859 6,441,1715,912,683220,345 12,574,199 33,210,058 1,816,6921,573,088 395,8434,832,786 8,618,409 4,829,3685,579,155116,169 10,524,692 19,143,101 $ $ ILLINOIS FiscalTen Activities Activities Activities Debt Last - Position Government Government (Unaudited) Revenues Expenses Net RecreationHighways Revenues ParkingCHICAGO, Revenues Activities ActivitiesServices Recreation Primary Primary ActivitiesServices Highways Government Parking Long-Term Position andandGrants/Contributions Safety Program Expenses 2019 Business-Type Governmental Business-Type for ActivitiesGovernment and onGovernmental for Grants/Contributions Grants/Contributions and Safety Net Total Program Total Program Activities Activities 31,WEST in Total Total Revenues GeneralPublicCultureStreets Total WaterworksSewerageCommuter TotalOF GeneralPublicCultureStreetsInterest WaterworksSewerageCommuter Charges OperatingCapital Charges Capital Governmental Business-Type Governmental Business-TypeCITY ChangesDecember Expenses Program ===== PDF PAGE 147 ===== [Extraction: embedded PDF text] - 641,440 198,860 25,729732,68622,171 8,882 7,598428,265 (569,691)FiscalYearEnded (19,415,900)(3,617,043) (23,032,943) 4,666,636 7,470,1712,883,008 2,205,508 18,846,209 (10,586,384) (10,141,639) 8,704,570 (13,758,682) (14,328,373) 12/31/2019 $ $ - - - 764,365 152,578 12,224637,785 9,049 8,095584,062 601,206 (15,820)FiscalYearEnded (17,742,843)(9,102,214) (26,845,057) 4,623,840 6,871,9602,593,920 2,070,351 17,727,023 18,328,229 (8,501,008) (8,516,828) 12/31/2018 $ $ - - - (953,406) 863,113 173,517 13,271560,955 8,907 6,878371,477 387,262 (566,144)FiscalYearEnded (19,240,952) (20,194,358) 4,489,622 6,178,8492,487,827 1,909,065 16,676,219 17,063,481 (2,564,733) (3,130,877) 12/31/2017 $ $ - - 914,909 160,396 6,983 8,894 2,660239,675FiscalYearEnded (19,641,150)(2,934,737) (22,575,887) 4,448,829 4,544,6092,636,660 1,994,900 2,032,609 16,739,895 1,185,841 1,437,070 18,176,965 (2,901,255)(1,497,667) (4,398,922) 12/31/2016 $ $ - - (837,584) 961,256 187,625 3,522 8,604 1,175266,782 640,896FiscalYearEnded (20,509,700) (21,347,284) 4,436,897 4,855,4542,882,037 2,029,538 1,102,056 16,458,385 1,201,919 1,478,480 17,936,865 (4,051,315) (3,410,419) 12/31/2015 $ $ - - (792,297) 170,517 (7,465) 8,888 4,654544,194 (283,591)919,432 635,841FiscalYearEnded (17,761,371) (18,553,668) 4,492,3711,033,012 5,476,9592,593,317 2,111,109 1,607,960 17,477,780 1,153,993 1,711,729 19,189,509 12/31/2014 $ $ - - 125 FiscalYearEnded (16,511,766)(2,616,520) (19,128,286) 4,534,9731,032,614 4,515,7292,580,764169,5682,051,70221,399917,461 15,824,210 8,8041,071,6556,1421,489,342 2,575,943 18,400,153 (687,556)(40,577) (728,133) 12/31/2013 $ $ - - FiscalYearEnded (20,567,398)(1,881,021) (22,448,419) 4,711,8901,176,228 4,405,8312,379,976144,9792,013,40179,1501,465,234 16,376,689 11,6711,103,8766,878270,850 1,393,275 17,769,964 (4,190,709)(487,746) (4,678,455) 12/31/2012 $ $ - - FiscalYearEnded (14,457,724)(653,132) (15,110,856) 4,701,2951,383,971 4,158,7092,117,490157,9852,098,719102,8201,638,724 16,359,713 11,5571,131,916121,733459,444 1,724,650 18,084,363 1,901,9891,071,518 2,973,507 12/31/2011 $ $ - - 171,227 212,808 15,172 137,988836,771 (36,309)FiscalYearEnded (12,017,450)(2,049,507) (14,066,957) Position 4,691,7811,200,551 3,832,7452,112,444 2,098,487 2,012,701 16,332,744 1,023,267 2,013,198 18,345,942 4,315,294 4,278,985 12/31/2010 $ Net $ in Changes Government (Expenses) Other Government Government Use Activities ActivitiesActivities Records ActivitiesActivities andActivities Use Position Revenues Income Business-Type Primary and Income Governmental City Revenues Primary Activities and Activities Net Primary Net Revenues PropertyOther SalesIncomeReplacementUtility Total Total Total in Total Taxes Intergovernmental InterestMiscellaneousTransfers PropertySalesInterestMiscellaneousTransfers Total Source: (Expenses) GovernmentalBusiness-Type Governmental Business-Type GovernmentalBusiness-Type Net General Changes Data ===== PDF PAGE 148 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years December 31, 2019 (Unaudited) Fiscal Fiscal Fiscal Fiscal Year Year Year Year Ended Ended Ended Ended 12/31/2010 12/31/2011 12/31/2012 12/31/2013 General Fund Reserved $ 985,505 $ - $ - $ - Unreserved 11,659,744 - - - Nonspendable - 1,134,891 1,145,514 1,028,304 Restricted - - 843,105 844,754 Unassigned - 12,616,731 11,309,771 10,931,741 Total General Fund 12,645,249 13,751,622 13,298,390 12,804,799 All Other Governmental Funds Reserved 986,267 - - - Unreserved, Reported in: Special Revenues Funds 2,270,787 - - - Capital Projects Funds 5,245,994 - - - Nonspendable - 938,215 886,413 797,991 Restricted - 1,708,723 1,496,990 1,490,681 Assigned - 5,318,609 2,698,343 3,943,537 Total All Other Governmental Funds 8,503,048 7,965,547 5,081,746 6,232,209 Total All Governmental Funds $ 21,148,297 $ 21,717,169 $ 18,380,136 $ 19,037,008 Data Source: City Records The City implemented GASB 54 in Fiscal Year 2011. 126 ===== PDF PAGE 149 ===== [Extraction: embedded PDF text] Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 $ - $ - $ - $ - $ - $ - - - - - - - 1,104,969 736,988 549,669 94,055 78,908 105,861 846,315 846,315 360,944 624,061 1,211,793 1,535,492 11,507,102 12,302,595 12,733,258 11,841,410 12,126,823 13,844,971 13,458,386 13,885,898 13,643,871 12,559,526 13,417,524 15,486,324 - - - - - - - - - - - - - - - - - - 2,029 12,815 2,056 2,176 2,275 2,568 2,372,410 2,459,188 2,275,884 1,592,317 1,732,606 2,079,565 4,636,090 4,006,583 4,190,745 5,109,310 5,896,981 4,745,724 7,010,529 6,478,586 6,468,685 6,703,803 7,631,862 6,827,857 $ 20,468,915 $ 20,364,484 $ 20,112,556 $ 19,263,329 $ 21,049,386 $ 22,314,181 127 ===== PDF PAGE 150 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Governmental Revenues By Source - Last Ten Fiscal Years December 31, 2019 (Unaudited) Fiscal Fiscal Fiscal Fiscal Year Year Year Year Ended Ended Ended Ended Source 12/31/2010 12/31/2011 12/31/2012 12/31/2013 Taxes $ 8,669,147 $ 8,907,926 $ 8,598,434 $ 8,324,682 Intergovernmental 6,542,723 6,580,649 7,234,262 7,517,487 Charges for Services 1,891,127 2,124,010 1,803,814 3,407,944 Licenses and Permits 456,361 634,929 481,698 530,638 Fines and Forfeits 1,042,292 936,049 1,033,410 999,346 Interest Income 210,470 102,148 78,908 21,307 Miscellaneous 2,012,701 1,638,724 1,465,234 917,461 Total $ 20,824,821 $ 20,924,435 $ 20,695,760 $ 21,718,865 Data Source: City Records 128 ===== PDF PAGE 151 ===== [Extraction: embedded PDF text] Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 $ 8,383,993 $ 8,216,205 $ 8,109,944 $ 9,308,149 $ 7,611,134 $ 6,330,796 8,475,887 7,844,832 7,321,942 7,501,738 10,392,896 12,758,459 2,718,832 2,982,446 3,193,936 2,987,175 2,951,250 4,365,673 484,106 608,401 843,502 653,852 887,198 1,108,091 782,187 997,523 850,994 832,420 1,281,202 1,015,725 (7,465) 3,522 6,983 13,271 12,224 25,729 1,607,960 1,102,056 2,032,609 560,955 637,785 732,686 $ 22,445,500 $ 21,754,985 $ 22,359,910 $ 21,857,560 $ 23,773,689 $ 26,337,159 129 ===== PDF PAGE 152 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Governmental Expenditures By Function - Last Ten Fiscal Years December 31, 2019 (Unaudited) Fiscal Fiscal Fiscal Fiscal Year Year Year Year Ended Ended Ended Ended Function 12/31/2010 12/31/2011 12/31/2012 12/31/2013 General Government $ 8,180,849 $ 7,720,982 $ 8,940,416 $ 8,676,885 Public Safety 8,524,634 8,468,368 8,825,728 9,248,035 Culture and Recreation 131,438 189,894 80,000 - Capital Outlay 7,818,703 3,935,987 6,148,552 3,154,948 Debt Service Principal 845,000 - - - Interest and Fiscal Charges 66,972 40,332 38,097 1,769 Total $ 25,567,596 $ 20,355,563 $ 24,032,793 $ 21,081,637 Data Source: City Records 130 ===== PDF PAGE 153 ===== [Extraction: embedded PDF text] Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 $ 8,128,303 $ 8,361,285 $ 7,893,627 $ 8,591,562 $ 8,150,224 $ 8,894,550 9,162,072 9,104,514 9,849,220 10,003,049 10,011,442 9,886,973 - - - - - - 3,722,023 4,393,009 4,924,842 4,176,432 3,825,627 6,312,762 - - - - - - 1,195 608 518 407 339 250 $ 21,013,593 $ 21,859,416 $ 22,668,207 $ 22,771,450 $ 21,987,632 $ 25,094,535 131 ===== PDF PAGE 154 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years December 31, 2019 (Unaudited) Fiscal Fiscal Fiscal Fiscal Year Year Year Year Ended Ended Ended Ended 12/31/2010 12/31/2011 12/31/2012 12/31/2013 Revenues Taxes $ 8,669,147 $ 8,907,926 $ 8,598,434 $ 8,324,682 Intergovernmental 6,542,723 6,580,649 7,234,262 7,517,487 Charges for Services 1,891,127 2,124,010 1,803,814 3,407,944 Licenses and Permits 456,361 634,929 481,698 530,638 Fines and Forfeits 1,042,292 936,049 1,033,410 999,346 Interest Income 210,470 102,148 78,908 21,307 Miscellaneous 2,012,701 1,638,724 1,465,234 917,461 Total Revenues 20,824,821 20,924,435 20,695,760 21,718,865 Expenditures General Government 8,180,849 7,720,982 8,940,416 8,676,885 Public Safety 8,524,634 8,468,368 8,825,728 9,248,035 Culture and Recreation 131,438 189,894 80,000 - Capital Outlay 7,818,703 3,935,987 6,148,552 3,154,948 Debt Service Principal 845,000 - - - Interest and Fiscal Charges 66,972 40,332 38,097 1,769 Total Expenditures 25,567,596 20,355,563 24,032,793 21,081,637 Excess of Revenues Over (Under) Expenditures (4,742,775) 568,872 (3,337,033) 637,228 Other Financing Sources (Uses) Disposal of Capital Assets - - - - Transfer In 441,777 - 50,000 19,644 Transfer Out (441,777) - (50,000) - - - - 19,644 Net Change in Fund Balances $ (4,742,775) $ 568,872 $ (3,337,033) $ 656,872 Debt Service as a Percentage of Noncapital Expenditures 5.86% 0.24% 0.16% 0.01% Data Source: City Records 132 ===== PDF PAGE 155 ===== [Extraction: embedded PDF text] Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 $ 8,383,993 $ 8,216,205 $ 8,109,944 $ 9,308,149 $ 7,611,134 $ 6,330,796 8,475,887 7,844,832 7,321,942 7,501,738 10,392,896 12,758,459 2,718,832 2,982,446 3,193,936 2,987,175 2,951,250 4,365,673 484,106 608,401 843,502 653,852 887,198 1,108,091 782,187 997,523 850,994 832,420 1,281,202 1,015,725 (7,465) 3,522 6,983 13,271 12,224 25,729 1,607,960 1,102,056 2,032,609 560,955 637,785 732,686 22,445,500 21,754,985 22,359,910 21,857,560 23,773,689 26,337,159 8,128,303 8,361,285 7,893,627 8,591,562 8,150,224 8,894,550 9,162,072 9,104,514 9,849,220 10,003,049 10,011,442 9,886,973 - - - - - - 3,722,023 4,393,009 4,924,842 4,176,432 3,825,627 6,312,762 - - - - - - 1,195 608 518 407 339 250 21,013,593 21,859,416 22,668,207 22,771,450 21,987,632 25,094,535 1,431,907 (104,431) (308,297) (913,890) 1,786,057 1,242,624 - - 56,369 64,663 - 22,171 7,776 - 25,643 - - 500,000 (7,776) - (25,643) - - (500,000) - - 56,369 64,663 - 22,171 $ 1,431,907 $ (104,431) $ (251,928) $ (849,227) $ 1,786,057 $ 1,264,795 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 133 ===== PDF PAGE 156 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years December 31, 2019 (Unaudited) Tax Fiscal Levy Year Residential Commercial Year End Property Farm Property 2010 12/31/2010 $ 477,222,120 $ 325,577 $ 104,342,370 2011 12/31/2011 439,560,682 341,675 100,671,895 2012 12/31/2012 395,571,348 370,108 92,055,282 2013 12/31/2013 367,424,630 392,261 82,237,691 2014 12/31/2014 354,736,670 426,235 79,649,467 2015 12/31/2015 363,843,948 462,209 81,068,291 2016 12/31/2016 390,758,862 487,626 89,670,605 2017 12/31/2017 409,838,459 537,746 95,961,612 2018 12/31/2018 427,634,113 512,185 95,314,124 2019 12/31/2019 445,466,549 498,632 97,014,387 Data Source: DuPage County Clerk's and Treasurer's Offices 134 ===== PDF PAGE 157 ===== [Extraction: embedded PDF text] Total Total Industrial Assessed Direct Property Railroad Value Tax Rate 154,574,460 $ - $ 736,464,527 0.4675 146,221,310 - 686,795,562 0.5011 132,161,380 - 620,158,118 0.5545 124,152,620 - 574,207,202 0.5973 119,236,720 - 554,049,092 0.6187 122,668,530 - 568,042,978 0.6031 133,199,600 - 614,116,693 0.5582 143,776,700 5,370,770 655,485,287 0.5441 159,831,453 5,545,256 688,837,131 0.5178 173,613,020 5,783,209 722,375,797 0.5034 135 ===== PDF PAGE 158 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years December 31, 2019 (Unaudited) Taxing Body 2010 2011 2012 Countywide DuPage County 0.1659 0.1773 0.1929 Forest Preserve District 0.1321 0.1414 0.1542 DuPage Airport Authority 0.0158 0.0169 0.0168 Local Wayne Township 0.0733 0.0804 0.0896 Wayne Township Road 0.0645 0.0675 0.0730 City of West Chicago - Wayne Township 0.4675 0.5011 0.5545 Winfield Township 0.0924 0.1021 0.1174 Winfield Township Road 0.1215 0.1342 0.1543 City of West Chicago - Winfield Township 0.4675 0.5011 0.5545 West Chicago Park District 0.2946 0.3177 0.4948 West Chicago Fire Protection District 0.7078 0.8027 0.9212 West Chicago Mosquito District 0.0111 0.0122 0.0139 West Chicago Library District 0.2307 0.2529 0.2903 Educational Grade School District 33 3.8244 4.1734 4.6430 High School District 94 1.8613 2.0351 2.3008 College of DuPage District 502 0.2349 0.2495 0.2681 Total Tax Rate - Winfield Township 8.1600 8.9165 10.1222 Share of Total Tax Rate Levied by the City of West Chicago 5.73% 5.62% 5.48% Total Tax Rate - Wayne Township 8.0839 8.8281 10.0131 Share of Total Tax Rate Levied by the City of West Chicago 5.78% 5.68% 5.54% Property tax rates are per $100 of assessed valuation. Data Source: DuPage County Clerk 136 ===== PDF PAGE 159 ===== [Extraction: embedded PDF text] 2013 2014 2015 2016 2017 2018 2019 0.2040 0.2057 0.1971 0.1848 0.1749 0.1673 0.1655 0.1657 0.1691 0.1622 0.1514 0.1306 0.1278 0.1242 0.0178 0.0196 0.0188 0.0176 0.0166 0.0146 0.0141 0.0979 0.1025 0.1007 0.0959 0.0940 0.0929 0.0911 0.0817 0.0855 0.0840 0.0800 0.0784 0.0775 0.0744 0.5973 0.6187 0.6031 0.5582 0.5441 0.5178 0.5034 0.1318 0.1396 0.1370 0.1275 0.1192 0.1008 0.0939 0.1732 0.1835 0.1801 0.1676 0.1587 0.1526 0.1483 0.5973 0.6187 0.6031 0.5582 0.5441 0.5178 0.5034 0.4917 0.4239 0.5054 0.4889 0.4744 0.4683 0.4603 1.0190 1.0652 1.0556 0.9971 0.9663 0.9448 0.9295 0.0153 0.0161 0.0160 0.0152 0.0148 0.0143 0.0135 0.3225 0.3400 0.3367 0.3153 0.3056 0.2968 0.2893 5.4481 5.5749 5.5167 5.1727 4.8967 4.7555 4.6806 2.5376 2.6731 2.6293 2.4677 2.3770 2.3136 2.2573 0.2956 0.2975 0.2786 0.2626 0.2431 0.2317 0.2112 11.4196 11.7269 11.6366 10.9266 10.4220 10.1059 9.8911 5.23% 5.28% 5.18% 5.11% 5.22% 5.12% 5.09% 11.2942 11.5918 11.5042 10.8074 10.3165 10.0229 9.8144 5.29% 5.34% 5.24% 5.16% 5.27% 5.17% 5.13% 137 ===== PDF PAGE 160 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2019 (Unaudited) 2019 2010 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Rank Value Value Rank Value DuPage Airport Authority $ 16,110,140 1 2.34% $ 16,697,070 1 2.27% DS Containers 12,661,520 2 1.84% Colfin Cobalt II 9,331,220 3 1.35% Cabot IV LLC 9,037,280 4 1.31% Northridge Holdings LTD 7,837,650 5 1.14% Mapei 6,054,170 6 0.88% Stag Industrial Holdings 5,971,020 7 0.87% La Grou Properties 4,730,000 8 0.69% 5,380,000 6 0.73% Simpson Manufacturing 3,944,170 9 0.57% 3,628,400 8 0.49% Aspen Ridge, LLC 3,836,290 10 0.56% International Truck & Engine 4,795,750 7 0.65% Blackhawk Center, LLC 11,265,800 2 1.53% Menards, Inc 3,623,800 9 0.49% Platinum Health Care 3,587,630 10 0.49% Cobalt Industrial REIT II 9,761,620 3 1.33% Timber Lake Apartments 6,222,500 4 0.84% St. Andrews Country Club 5,780,230 5 0.78% $ 79,513,460 11.55% $ 70,742,800 9.60% Data Source: Office of the DuPage County Clerk's 138 ===== PDF PAGE 161 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Property Tax Levies and Collections - Last Ten Tax Levy Years December 31, 2019 (Unaudited) Taxes Collected within the Collections Tax Levied Fiscal Year of the Levy in Total Collections to Date Levy for the Percentage Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2009 $ 3,403,867 $ 3,384,410 99.43% $ 19,000 $ 3,403,410 99.99% 2010 3,458,771 3,451,954 99.80% 6,809 3,458,763 100.00% 2011 3,458,693 3,453,662 99.85% N/A 3,453,662 99.85% 2012 3,458,498 3,453,081 99.84% N/A 3,453,081 99.84% 2013 3,458,756 3,452,708 99.83% N/A 3,452,708 99.83% 2014 3,458,444 3,453,211 99.85% N/A 3,453,211 99.85% 2015 3,458,315 3,450,239 99.77% N/A 3,450,239 99.77% 2016 3,460,067 3,455,985 99.88% N/A 3,455,985 99.88% 2017 3,568,729 3,563,021 99.84% N/A 3,563,021 99.84% 2018 3,569,845 3,560,169 99.73% N/A 3,560,169 99.73% Note: Levies for all Special Services Area have been excluded from this table. Data Source: Office of the DuPage County Clerk's N/A - Not Available 139 ===== PDF PAGE 162 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Ratios of Outstanding Debt By Type - Last Ten Fiscal Years December 31, 2019 (Unaudited) Business-Type Activities Fiscal IEPA General Total Percentage Year Revenue Obligation Primary of Personal Per Ended Bonds Bonds Government Income (1) Capita (1) 12/31/2010 $ 8,267,267 $ 15,295,000 $ 23,562,267 3.40% $ 870 12/31/2011 7,769,704 - 7,769,704 0.91% 287 12/31/2012 7,259,271 - 7,259,271 1.09% 268 12/31/2013 6,735,635 - 6,735,635 0.89% 249 12/31/2014 6,198,456 - 6,198,456 0.88% 229 12/31/2015 5,647,382 - 5,647,382 0.82% 208 12/31/2016 5,082,055 - 5,082,055 0.75% 188 12/31/2017 4,502,105 - 4,502,105 0.64% 166 12/31/2018 3,907,155 - 3,907,155 0.55% 144 12/31/2019 3,296,816 - 3,296,816 0.45% 122 Data Source: City's Records Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See the Schedule of Demographic and Economic Statistics for personal income and population data. 140 ===== PDF PAGE 163 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years December 31, 2019 (Unaudited) Gross Less: Amounts Percentage of Fiscal General Available in Equalized Year Obligation Debt Service Assessed Per Ended Bonds Funds Total Value (1) Capita (2) 12/31/2010 $ 15,295,000 $ 482,787 $ 14,812,213 2.01% $ 547 12/31/2011 - - - 0.00% - 12/31/2012 - - - 0.00% - 12/31/2013 - - - 0.00% - 12/31/2014 - - - 0.00% - 12/31/2015 - - - 0.00% - 12/31/2016 - - - 0.00% - 12/31/2017 - - - 0.00% - 12/31/2018 - - - 0.00% - 12/31/2019 - - - 0.00% - Data Source: City Records Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See the Ratios of Outstanding Debt by Type Schedule for Equalized Assessed Value data (Actual Taxable Value of Property). (2) See the Demographic and Economic Statistics Schedule for the Per Capita Income data. 141 ===== PDF PAGE 164 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Schedule of Direct and Overlapping Bonded Debt December 31, 2019 (Unaudited) Percentage to Debt City's Applicable Share of Governmental Unit Gross Debt to City (1) Debt City of West Chicago $ - 100.00% $ - DuPage County 162,504,806 1.72% 2,795,083 Forest Preserve District 102,861,129 1.72% 1,769,211 West Chicago Park District 25,895,000 72.69% 18,823,076 Winfield Park District 1,000,000 28.08% 280,800 School District #25 7,671,081 22.48% 1,724,459 School District #33 30,990,000 64.89% 20,109,411 School District #94 48,399,750 47.69% 23,081,841 U-46 School District 237,542,304 76.00% 180,532,151 U-303 School District 36,510,000 74.64% 27,251,064 Community College District #502 200,635,000 1.44% 2,889,144 Community College District #509 168,661,226 9.91% 16,714,327 Total Overlapping Debt 1,022,670,296 295,970,567 Total Direct and Overlapping Debt $ 1,022,670,296 $ 295,970,567 Data Source: DuPage County Clerks Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. Every resident is not responsible for paying the debt of each overlapping government. (1) Determined by the ratio of assessed value of property in the City subject to taxation by the Governmental Unit to the total assessed value of property of the Governmental Unit. 142 ===== PDF PAGE 165 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Schedule of Legal Debt Margin December 31, 2019 (Unaudited) The City is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois constitution governs computation of legal debt margin. The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by some home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property...(2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent: indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum...shall not be included in the foregoing percentage amounts. To date the General Assembly has set no limits for home rule municipalities. 143 ===== PDF PAGE 166 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Pledged-Revenue Coverage - Last Ten Fiscal Years December 31, 2019 (Unaudited) (3) Net Revenue Fiscal Available (4) Year (1) (2) for Debt Service (5) Ended Revenues Expenses Debt Service Principal Interest Coverage 12/31/2010 $ 12,418,238 $ 8,998,301 $ 3,419,937 $ 945,000 $ 953,990 1.80 12/31/2011 12,036,602 8,872,863 3,163,739 15,295,000 753,061 0.20 12/31/2012 11,593,493 11,405,371 188,122 - - - 12/31/2013 12,122,215 10,177,161 1,945,054 - - - 12/31/2014 12,623,517 9,052,942 3,570,575 - - - 12/31/2015 10,626,728 9,704,717 922,011 - - - 12/31/2016 11,938,343 11,023,837 914,506 - - - 12/31/2017 11,029,165 9,558,809 1,470,356 - - - 12/31/2018 4,871,550 10,834,817 (5,963,267) - - - 12/31/2019 9,048,365 10,130,988 (1,082,623) - - - (1) As defined in applicable bond indentures and governing laws. (2) Totaled expenses exclusive of depreciation and bond interest. (3) Gross revenue minus expenses. (4) Revenue bonds through April 30, 2003, alternate revenue bonds subsequent to that date. (5) Net revenue available for debt service divided by total debt requirements. Data Source: City Records Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 144 ===== PDF PAGE 167 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2019 (Unaudited) Per Fiscal (2) Capita (1) (2) Year (1) Personal Personal Median School Unemployment Ended Population Income Income Age Enrollment Rate 12/31/2010 27,086 $ 851,123,378 $ 31,423 35.2 6,947 11.0 12/31/2011 27,086 663,552,828 24,498 30.1 5,348 11.6 12/31/2012 27,086 755,157,680 27,880 33.0 7,765 8.6 12/31/2013 27,086 700,498,132 25,862 30.8 6,293 6.6 12/31/2014 27,086 751,636,500 27,750 33.2 7,552 5.5 12/31/2015 27,086 692,182,730 25,555 30.1 8,005 5.4 12/31/2016 27,086 681,104,556 25,146 31.6 8,390 6.4 12/31/2017 27,086 706,998,772 26,102 33.2 8,301 4.3 12/31/2018 27,086 706,782,084 26,094 33.0 8,350 3.0 12/31/2019 27,086 731,619,946 27,011 33.0 8,202 3.6 Data Sources (1) U.S. Census Bureau (2) Illinois Department of Employment Security (using annual averages) 145 ===== PDF PAGE 168 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2019 (Unaudited) 2019 2010 Percentage Percentage of Total of Total City City Employer Employees Rank Employment Employees Rank Employment Jel Sert 900 1 6.44% 1,000 1 7.76% West Chicago Elementary School District 600 2 4.36% 632 2 4.90% Aspen Marketing Services 543 3 3.89% Ball Horticultural 500 4 3.51% 425 4 3.30% Mapei Corporation 290 5 2.04% 215 8 1.67% Innocor Corporation 250 6 1.79% Community High School District 94 252 7 1.76% 250 6 1.94% WinCup 200 8 1.46% 175 12 1.36% OSI Industries LLC 200 9 1.43% Wise Plastics Technologies, Inc 150 10 1.07% In The Swim 150 11 1.07% St. Andrews Golf & Country Club 150 12 1.07% 190 10 1.47% Menards 150 13 1.07% General Mills 500 3 3.88% Siemans Energy 287 5 2.23% Otto & Sons 230 7 1.78% Turtle Splash 200 9 1.55% Express Packaging 175 11 1.36% Advanced Urethane Technologies 170 13 1.32% 4,335 30.97% 4,449 34.52% Data Sources: City Community Development Department Records and U.S. Census Bureau. 146 ===== PDF PAGE 169 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years December 31, 2019 (Unaudited) Fiscal Fiscal Fiscal Year Year Year Ended Ended Ended Function 12/31/2010 12/31/2011 12/31/2012 General Government Administration 2.25 1.13 1.13 Finance/Administrative Services 8.00 5.00 5.00 Museum/Marketing 1.75 0.50 0.50 Public Works 23.00 11.74 11.74 Police 48.00 47.00 49.00 Community Development 6.00 5.50 5.00 Water and Sewer 20.00 37.50 37.50 Commuter Parking Lot 1.00 0.38 0.38 Totals 110.00 108.75 110.25 Data Source: City Records 147 ===== PDF PAGE 170 ===== [Extraction: embedded PDF text] Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended Ended 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 1.00 1.00 1.00 1.00 1.50 1.50 1.50 4.76 4.13 4.13 4.13 4.13 4.13 4.13 0.50 0.50 0.50 0.25 0.25 0.25 0.25 10.57 11.51 11.51 11.19 11.19 11.19 11.94 49.00 49.00 49.00 52.50 53.00 51.00 51.00 3.50 3.50 3.50 3.75 4.75 4.75 4.75 34.47 35.00 35.43 33.65 39.34 38.12 38.72 0.25 0.25 0.25 0.25 0.25 0.25 0.25 104.05 104.89 105.32 106.72 114.41 111.19 112.54 148 ===== PDF PAGE 171 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2019 (Unaudited) Fiscal Fiscal Fiscal Year Year Year Ended Ended Ended Function/Program 12/31/2010 12/31/2011 12/31/2012 Public Works Number of Parkway Trees Planted 150 85 300 Number of Parkway Trees Trimmed 1,087 1,458 1,287 Brush Pickup Program (Days to Collect) 4.5 4.0 4.0 Building Safety Inspections 12 12 12 Tunnel - Paint and Light Lens Replacements 29 22 42 Special Events Handled 10 3 4 Public Safety Fire Number of Fire Calls 1,146 1,279 1,238 Number of EMS Calls 1,821 1,629 1,629 ISO Rating 3/3 3/3 3/3 Police Part I Crime 438 374 379 Part II Crime 2,342 2,402 1,393 Calls for Service 37,407 38,910 38,509 Parking Tickets Issued 3,728 3,376 2,888 Community Development Number of Building Permits Issued 1,097 954 1,199 Number of Building Inspections 753 1,116 1,049 Highways and Streets Sidewalk Replaced (Sq. Ft.) 10,935 9,849 10,000 Crack Sealing (Lbs. Installed) 14,983 37,320 36,429 Tons of Salt Used 3,577 3,000 2,800 Water and Sewer Number of metered accounts 6,437 6,430 6,432 Water Meters Read 38,700 38,580 35,000 Water Meter Service Requests 103 92 70 Water Meters Replaced 117 41 30 Average Daily Treated Water (Million Gallons) 3.28 3.00 3.45 Sanitary Sewer Repairs 3 2 1 Data Source: City Records Note: Indicators are not available for the general government function. 149 ===== PDF PAGE 172 ===== [Extraction: embedded PDF text] Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended Ended 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 373 130 170 135 106 110 160 2,336 1,944 2,459 2,430 2,958 2,566 800 4.0 4.8 6.0 5.5 4.8 4.7 4.9 12 12 12 12 12 12 12 12 - 10 6 5 6 10 6 4 3 4 22 19 15 1,015 1,122 1,130 1,095 1,113 1,238 1,250 1,804 1,778 1,934 2,073 2,134 2,339 2,350 3/3 3/3 3/3 4 2 2 2 424 373 383 329 342 265 258 1,066 1,521 1,315 1,427 1,456 1,589 1,596 33,867 31,053 34,028 44,087 42,780 40,713 33,516 2,771 3,413 3,049 3,780 3,026 3,094 2,301 899 790 990 1,155 1,044 1,352 1,264 1,134 899 962 882 1,056 1,211 1,251 18,207 8,742 12,500 11,142 1,884 12,545 920 21,480 35,518 42,240 32,000 35,360 27,330 - 3,250 3,180 3,210 2,500 2,050 2,270 2,540 6,435 6,428 6,471 6,452 6,450 6,455 6,455 34,000 2,500 9,911 152 29 - - 50 75 61 1,471 1,252 961 723 4,305 3,000 39 75 50 35 16 3.42 3.36 3.45 3.54 3.42 3.66 3.62 2 2 1 2 4 4 1 150 ===== PDF PAGE 173 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Capital Asset Statistics by Function/Program - Last Ten Fiscal Years December 31, 2019 (Unaudited) Fiscal Fiscal Fiscal Year Year Year Ended Ended Ended Function/Program 12/31/2010 12/31/2011 12/31/2012 Police Stations 1 1 1 Patrol Units 28 27 27 Fire Stations 3 4 4 Public Works Streets (Miles) 167.20 167.20 174.18 Sidewalks (Miles) 108.38 111.18 111.00 Streetlights 964 964 961 Water and Sewer Water Mains (Miles) 125.33 127.38 127.99 Fire Hydrants 1,483 1,518 1,528 Sanitary Sewers (Miles) 105.60 106.19 106.34 Manholes 2,186 2,202 2,211 Data Source: City Records 151 ===== PDF PAGE 174 ===== [Extraction: embedded PDF text] Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended Ended 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 1 1 1 1 1 1 1 27 27 26 26 26 26 26 4 4 4 4 4 4 4 174.18 174.18 174.06 174.06 174.06 174.21 175.02 111.00 111.00 111.00 111.03 111.03 111.38 111.38 961 961 1,046 1,168 1,168 1,168 1,169 127.99 127.99 128.87 128.87 129.64 129.90 130.05 1,528 1,528 1,537 1,537 1,551 1,555 1,557 106.34 106.34 106.43 106.43 106.43 106.60 106.60 2,211 2,211 2,213 2,213 2,213 2,217 2,217 152 ===== PDF PAGE 175 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO ___AGENDAITEMSUMMARY ITEM TITLE: AGENDA ITEM NUMBER: _2.4< ©. Resolution No. 21-R-0046 — First Amendment to the IGA with Crest Hill Investment LLC FILE NUMBER: Resolution No. 21-R-0047 — Updated EIA with OSI COMMITTEE AGENDA DATE: 6/9/2021 Industries, LLC COUNCIL AGENDA DATE: 6/21/2021 STAFF REVIEW: SIGNATURE APPROVED BY CITY ADMINISTRATOR: SIGNATURE ITEM SUMMARY: Regarding the First Amendment to the IGA, a minor change is needed in the legal description, and references to Greco and Sons need to be eliminated as that company is no longer in existence, All substantive terms approved in the original IGA remain. Regarding the Updated EIA, the initial version didn’t include any term limit for the clawback of the utility rebate, which wasn’t raised at any time prior to the original approval. It would be inappropriate for a company who has been operating for 100 years to repay 50% of the rebate provided from inception, so language has been added to limit the clawback provision to 15 years, which matches those included in the EIAs with Ball Horticultural, Norix and Discovery Drive Investors. STAFF RECOMMENDATION: Staff recommends approval of Resolution Nos. 21-R-0046 and 21-R-0047.. COMMITTEE RECOMMENDATION: ===== PDF PAGE 176 ===== [Extraction: OCR (rendered-page OCR)] RESOLUTION NO. 21-R-0046 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF WEST CHICAGO, DUPAGE AIRPORT AUTHORITY, WEST CHICAGO LIBRARY DISTRICT, WEST CHICAGO FIRE PROTECTION DISTRICT, WEST CHICAGO ELEMENTARY SCHOOL DISTRICT 33, COMMUNITY HIGH SCHOOL DISTRICT 94 AND CREST HILL INVESTMENT LLC IN REGARD TO A PROPERTY TAX ABATEMENT RELATIVE TO THE DEVELOPMENT OF THE GRECO/DEROSA PROPERTY BE IT RESOLVED by the City Council of the City of West Chicago, in regular session assembled, that the Mayor is hereby authorized to execute a certain First Amendment to the Intergovernmental Agreement by and between Crest Hill Investment LLC and the City of West Chicago, DuPage Airport Authority, West Chicago Library District, West Chicago Fire Protection District, West Chicago Elementary School District 33, and Community High School District 94, in substantially the form which is attached hereto and incorporated herein as Exhibit “A”. APPROVED this 21" day of June, 2021. AYES: NAYES: ABSTAIN: ABSENT: Mayor Ruben Pineda ATTEST: City Clerk Nancy M. Smith ===== PDF PAGE 177 ===== [Extraction: OCR (rendered-page OCR)] FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF WEST CHICAGO, DUPAGE AIRPORT AUTHORITY, WEST CHICAGO LIBRARY DISTRICT, WEST CHICAGO FIRE PROTECTION DISTRICT, WEST CHICAGO ELEMENTARY SCHOOL DISTRICT 33, COMMUNITY HIGH SCHOOL DISTRICT 94 AND CREST HILL INVESTMENT LLC IN REGARD TOA PROPERTY TAX ABATEMENT RELATIVE TO THE DEVELOPMENT OF THE GRECO/DEROSA PROPERTY This FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT (“Amendment”) is entered into this day of , 2021 (“Effective Date”), by and between the CITY OF WEST CHICAGO, an Illinois home rule municipal corporation (“CITY”), the DUPAGE AIRPORT AUTHORITY, an Illinois airport authority (“AIRPORT”), the WEST CHICAGO LIBRARY DISTRICT, an Illinois library district (‘LIBRARY’), the WEST CHICAGO FIRE PROTECTION DISTRICT, an Illinois fire protection district (‘FIRE PROTECTION DISTRICT’), the WEST CHICAGO ELEMENTARY SCHOOL DISTRICT 33, an Illinois school district (“ELEMENTARY SCHOOL DISTRICT”), the COMMUNITY HIGH SCHOOL DISTRICT 94, an Illinois school district (‘HIGH SCHOOL DISTRICT”), CREST HILL INVESTMENT LLC, an IHinois limited liability company (‘DEVELOPER’), and 280 WESTGATE DRIVE LIMITED PARTNERSHIP, an Illinois limited partnership. The CITY, the AIRPORT, the LIBRARY, the FIRE PROTECTION DISTRICT, the ELEMENTARY SCHOOL DISTRICT, the HIGH SCHOOL DISTRICT, and the DEVELOPER are sometimes individually referred to herein as a “Party” and collectively referred to as the “Parties.” WITNESSETH WHEREAS, the Parties entered into an “Intergovernmental Agreement” on February __, 2021, regarding the development of property owned by the DEVELOPER and certain economic development incentives related thereto (“Agreement”); and 470332_1 1 ===== PDF PAGE 178 ===== [Extraction: OCR (rendered-page OCR)] WHEREAS, since the execution of the Agreement, the Parties became aware that the Agreement required certain amendments, including with regard to the identity of the DEVELOPER, the legal description of the “Subject Property,” as defined in the Agreement, among other terms; and WHEREAS, the Parties desire to amend the Agreement on the terms and conditions set forth below; and WHEREAS, Section 5.K. of the Agreement, Article VII, Section 10 of the 1970 Illinois Constitution, 5 ILCS 220/1 et seq., and the CITY’S home rule powers provide the authority for this Amendment; and WHEREAS, it is in the best interests of the Parties to enter into this Amendment. NOW, THEREFORE, in consideration of the foregoing, and the mutual covenants and agreements contained herein, the Parties hereto agree as follows: 1. INCORPORATION OF PREAMBLES. The preambles hereto, as set forth above, are incorporated herein by reference and are made part hereof. 2. AMENDMENTS. The Agreement is amended as follows: Amendment One: 280 Westgate Drive Limited Partnership, an Illinois limited partnership, owns the “Subject Property,” as defined in the Agreement. The Agreement is assigned from Crest Hill Investment LLC, an Illinois limited liability company, to 280 Westgate Drive Limited Partnership and the DEVELOPER is substituted and changed from Crest Hill Investment LLC to 280 Westgate Drive Limited Partnership. Amendment Two: Section 2.C. of the Agreement is amended as follows, with deletions struck through: Have Cheese Merchants of America LLC (“Cheese Merchants”) or its successors and/erassigns,setong-as the successors-and--or 470332_1 2 ===== PDF PAGE 179 ===== [Extraction: OCR (rendered-page OCR)] tenant on the Subject Property, or else during the first ten (10) years following the Commencement Date, obtain the CITY’S prior written consent before any other user, licensee, tenant or occupant, takes possession, by license, lease or otherwise (“Occupant”), of any portion of the Subject Property. The CITY may withhold its consent if, in its sole discretion, the CITY determines that: (i) the contemplated use by such Occupant may have an adverse and harmful effect on the environment, (ii) the contemplated use by such Occupant may contribute to the CITY having a negative identity or image, (iii) the contemplated use by such Occupant, or the Occupant, is deemed undesirable, or (iv) the Occupant is a non-taxable entity. Prior to allowing any Occupant, other than Cheese Merchants or its permitted successors and / or assigns, to take possession, by license, lease or otherwise, of any portion of the Project, the DEVELOPER shall provide the CITY with a written request for the CITY’S consent. The CITY shall review the request and respond within thirty (30) calendar days from the date the request was received by the CITY. The DEVELOPER shall provide the CITY with information and documents reasonably requested by the CITY regarding the DEVELOPER’S request. Each calendar day between the time of the CITY’S request for information and documents, and the DEVELOPER providing the information and documents, shall extend the thirty (30) calendar day period for the CITY’S response by an equal number of calendar days. If the CITY does not respond within thirty (30) calendar days from the date the request was received by the CITY, or such greater number of calendar days as extended due to days passing before DEVELOPER has provided the CITY the requested information and documents, the CITY’S prior written consent shall not be needed with regard to the Occupant set forth in the DEVELOPER’S request. If the CITY does not consent to an Occupant, the DEVELOPER may terminate this Agreement, which termination shall serve as a “Termination” as defined in Section 3.B. below, and the DEVELOPER shall be required to make any payments to the UNITS OF GOVERNMENT as set forth in Sections 3.B.1. and 3.B.2.; Amendment Three: Section 8. of the Agreement is amended as follows, with deletions struck through: Upon prior written notice to the CITY, DEVELOPER shall have the right to assign all rights, duties and obligations under this Agreement to any entity that is-an-affiliate-or-subsidiary-of Greece and-Sensine—whiek takes title to the Subject Property Al-ether 470332_1 3 ===== PDF PAGE 180 ===== [Extraction: OCR (rendered-page OCR)] . £ this A DEVELOPER shal ire-th CHP¥s—censent,—whieh_may—be—withheld—in—_the—CITY’s sole rf ion. Amendment Four: EXHIBIT A-1 to the Agreement, the legal description of the “Subject Property,” as defined in the Agreement, is replaced in its entirety by EXHIBIT A-1 attached hereto and made a part hereof. 3. CONTINUING EFFECT. All parts of the Agreement not amended herein shall remain in full force and effect. 4. EFFECTIVE DATE. The Effective Date of this Amendment shall be the date the last of the Parties executes this Amendment as set forth below, which date shall be filled in on page 1 hereof. IN WITNESS WHEREOF, the CITY, pursuant to authority granted by the adoption of a Motion/Resolution by its City Council, has caused this Amendment to be executed by its Mayor and attested by its Clerk; the AIRPORT, pursuant to authority granted by the adoption of a Motion/Resolution by its Board of Commissioners, has caused this Amendment to be signed by its Chairman and attested by its Secretary; the LIBRARY, pursuant to the authority granted by the adoption of a Motion/Resolution by its Board of Trustees, has caused this Amendment to be signed by its President and attested by its Secretary; the FIRE PROTECTION DISTRICT, pursuant to the authority granted by the adoption of a Motion/Resolution by its Board of Trustees, has caused this Amendment to be signed by its President and attested by its Secretary; the ELEMENTARY SCHOOL DISTRICT, pursuant to the authority granted by the adoption of a Motion/Resoiution by its Board of Education, has caused this Amendment to be signed by its President and attested by its Secretary; the HIGH SCHOOL DISTRICT, pursuant to the authority granted by the adoption of a Motion/Resolution by its Board of Education, has caused this Amendment to be signed by its President and attested by its 470332_1 4 ===== PDF PAGE 181 ===== [Extraction: OCR (rendered-page OCR)] Secretary; DEVELOPER, pursuant to proper authority granted in accordance with its organizational documents, has caused this Amendment to be executed by its Manager; and 280 Westgate Drive Limited Partnership, pursuant to proper authority granted in accordance with its organizational documents, has caused this Amendment to be executed by an authorized Partner and properly attested. [THIS SPACE INTENTIONALLY LEFT BLANK] 470332_1 5 ===== PDF PAGE 182 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO WEST CHICAGO PUBLIC LIBRARY DISTRICT By: By: , Mayor , President ATTEST: ATTEST: , City Clerk , Secretary Dated: Dated: WEST CHICAGO ELEMENTARY WEST CHICAGO COMMUNITY HIGH SCHOOL DISTRICT 33 SCHOOL DISTRICT 94 By: By: , President , President ATTEST: ATTEST: , Secretary , Secretary Dated: Dated: DUPAGE AIRPORT AUTHORITY CREST HILL INVESTMENT LLC By: By: , Chairman , ATTEST: ATTEST: , Secretary ; Dated: Dated: 470332_1 ===== PDF PAGE 183 ===== [Extraction: OCR (rendered-page OCR)] WEST CHICAGO FIRE PROTECTION 280 WESTGATE DRIVE LIMITED DISTRICT PARTNERSHIP By: By: , President , its ATTEST: ATTEST: , Secretary , Secretary Dated: Dated: 470332_1 7 ===== PDF PAGE 184 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) )ss COUNTY OF DUPAGE ) I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that the above-named and ' personally known to me to be the Mayor and City Clerk of the City of West Chicago, and also known to me to be the same persons whose names are subscribed to the foregoing instrument as such Mayor and City Clerk, respectively, appeared before me this day in person and severally acknowledged that, as such Mayor and City Clerk, they signed and delivered the signed instrument, pursuant to authority given by the City of West Chicago, as their free and voluntary act, and as the free and voluntary act and deed of said City of West Chicago, for the uses and purposes therein set forth. GIVEN under my hand and Notary Seal, this day of , 2021. Notary Public My Commission Expires: 470332_1 8 ===== PDF PAGE 185 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) ) SS COUNTY OF DUPAGE _ ) |, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that the above-named and : personally known to me to be the President and Secretary of the West Chicago Public Library District, and also known to me to be the same persons whose names are subscribed to the foregoing instrument as such President and Secretary, respectively, appeared before me this day in person and severally acknowledged that, as such President and Secretary, they signed and delivered the signed instrument, pursuant to authority given by the West Chicago Public Library District, as their free and voluntary act, and as the free and voluntary act and deed of said West Chicago Public Library District, for the uses and purposes therein set forth. GIVEN under my hand and Notary Seal, this day of , 2021. Notary Public My Commission Expires: 470332_1 9 ===== PDF PAGE 186 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) ) Ss COUNTY OF DUPAGE) I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that the above-named and ; personally known to me to be the President and Secretary of the West Chicago Fire Protection District, and also known to me to be the same persons whose names are subscribed to the foregoing instrument as such President and Secretary, respectively, appeared before me this day in person and severally acknowledged that, as such President and Secretary, they signed and delivered the signed instrument, pursuant to authority given by the West Chicago Fire Protection District, as their free and voluntary act, and as the free and voluntary act and deed of said West Chicago Fire Protection District, for the uses and purposes therein set forth. GIVEN under my hand and Notary Seal, this day of , 2021. Notary Public My Commission Expires: 470332_1 10 ===== PDF PAGE 187 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) )ss COUNTY OF DUPAGE _ ) 1, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that the above-named and ; personally known to me to be the President and Secretary of the West Chicago Elementary School District 33, and also known to me to be the same persons whose names are subscribed to the foregoing instrument as such President and Secretary, respectively, appeared before me this day in person and severally acknowledged that, as such President and Secretary, they signed and delivered the signed instrument, pursuant to authority given by the West Chicago Elementary School District 33, as their free and voluntary act, and as the free and voluntary act and deed of said West Chicago Elementary School District 33, for the uses and purposes therein set forth. GIVEN under my hand and Notary Seal, this day of , 2021. Notary Public My Commission Expires: 470332_1 11 ===== PDF PAGE 188 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) ) SS COUNTY OF DUPAGE _) I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that the above-named and : personally known to me to be the President and Secretary of the West Community High School District 94, and also known to me to be the same persons whose names are subscribed to the foregoing instrument as such President and Secretary, respectively, appeared before me this day in person and severally acknowledged that, as such President and Secretary, they signed and delivered the signed instrument, pursuant to authority given by the West Chicago Community High School District 94, as their free and voluntary act, and as the free and voluntary act and deed of said West Chicago Community High School District 94, for the uses and purposes therein set forth. GIVEN under my hand and Notary Seal, this day of ' 2021. Notary Public My Commission Expires: 470332_1 12 ===== PDF PAGE 189 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) ) Ss COUNTY OF DUPAGE ) I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that the above-named and ; personally known to me to be the Chairman and Secretary of the DuPage Airport Authority, and also known to me to be the same persons whose names are subscribed to the foregoing instrument as such Chairman and Secretary, respectively, appeared before me this day in person and severally acknowledged that, as such Chairman and Secretary, they signed and delivered the signed instrument, pursuant to authority given by the DuPage Airport Authority, as their free and voluntary act, and as the free and voluntary act and deed of said DuPage Airport Authority, for the uses and purposes therein set forth. GIVEN under my hand and Notary Seal, this day of ; 2021. Notary Public My Commission Expires: 470332_1 13 ===== PDF PAGE 190 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) ) Ss COUNTY OF DUPAGE _) I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that the above-named Eduardo Greco, personally known to me to be the Manager of Crest Hill Investment LLC, and also known to me to be the same person whose name is subscribed to the foregoing instrument as such Manager appeared before me this day in person and acknowledged that, as such Manager, he signed and delivered the signed instrument, pursuant to authority given by said limited liability company, as his free and voluntary act, and as the free and voluntary act and deed of said limited liability company, for the uses and purposes therein set forth. GIVEN under my hand and Notary Seal, this day of , 2021. Notary Public My Commission Expires: 470332_1 14 ===== PDF PAGE 191 ===== [Extraction: OCR (rendered-page OCR)] STATE OF ILLINOIS ) )ss COUNTY OF DUPAGE _ ) I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that the above-named and , personally known to me to be the and of 280 Westgate Drive Limited Partnership, and also known to me to be the same persons whose names are subscribed to the foregoing instrument as such and , respectively, appeared before me this day in person and severally acknowledged that, as such and , respectively, they signed and delivered the signed instrument, pursuant to authority given by said limited partnership, as their free and voluntary act, and as the free and voluntary act and deed of said limited partnership, for the uses and purposes therein set forth. GIVEN under my hand and Notary Seal, this day of , 2021. . Notary Public My Commission Expires: 470332_1 15 ===== PDF PAGE 192 ===== [Extraction: OCR (rendered-page OCR)] EXHIBIT A-1 Legal Description of Subject Property (attached) 470332_1 16 ===== PDF PAGE 193 ===== [Extraction: OCR (rendered-page OCR)] RESOLUTION NO. 21-R-0047 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN UPDATED ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN THE CITY OF WEST CHICAGO AND OSI INDUSTRIES, LLC BE IT RESOLVED by the City Council of the City of West Chicago, in regular session assembled, that the Mayor is hereby authorized to execute a certain updated Economic Incentive Agreement by and between the City of West Chicago and OSI Industries, LLC, in substantially the form which is attached hereto and incorporated herein as Exhibit “A”. APPROVED this 21° day of June, 2021. AYES: NAYES: ABSTAIN: ABSENT: Mayor Ruben Pineda ATTEST: City Clerk Nancy M. Smith ===== PDF PAGE 194 ===== [Extraction: OCR (rendered-page OCR)] ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN THE CITY OF WEST CHICAGO AND OSI INDUSTRIES, LLC This ECONOMIC INCENTIVE AGREEMENT (“Agreement”) is entered into this day of , 2021 (“Effective Date”) by and between the City of West Chicago, an Illinois home rule municipal corporation (“CITY”), and OSI INDUSTRIES, LLC, a Delaware limited liability company authorized to conduct business in the State of Illinois (“DEVELOPER”). The CITY and the DEVELOPER are sometimes individually referred to herein as a “Party” and collectively referred to as the “Parties.” WITNESSETH WHEREAS, DEVELOPER, the CITY, and certain other units of government, entered into the “INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF WEST CHICAGO, DUPAGE AIRPORT AUTHORITY, WEST CHICAGO LIBRARY DISTRICT, WEST CHICAGO FIRE PROTECTION DISTRICT, WEST CHICAGO ELEMENTARY SCHOOL DISTRICT 33, COMMUNITY HIGH SCHOOL DISTRICT 94 AND OSI INDUSTRIES, LLC IN REGARD TO A PROPERTY TAX ABATEMENT RELATIVE TO THE DEVELOPMENT OF THE OSI INDUSTRIES PROPERTY’ on __, 2021 (“IGA”); and WHEREAS, as set forth in the IGA, the DEVELOPER desires to acquire approximately eleven (11) acres of land in the DuPage Business Park located in West Chicago, Illinois, with said property being legally described on EXHIBIT A-1, attached to the IGA, and depicted on EXHIBIT A-2, attached to the IGA (“Subject Property”); and WHEREAS, the DEVELOPER desires to develop the Subject Property into an 461767_5 1 ===== PDF PAGE 195 ===== [Extraction: OCR (rendered-page OCR)] industrial manufacturing food processing operation consisting of a building of approximately one hundred eighty-six thousand (186,000) square feet, as depicted and further described in EXHIBIT B-1 and EXHIBIT B-2, respectively, attached to the IGA (“Project”); and WHEREAS, the IGA provides that the DEVELOPER will receive a real estate tax abatement from the CITY and certain other units of government pursuant to 35 ILCS 200/18-165 (“Tax Abatement”), if the conditions for the Tax Abatement in the IGA are satisfied; and WHEREAS, the DEVELOPER has requested that, in addition to the Tax Abatement, the CITY provide the DEVELOPER with additional incentives set forth in this Agreement (“Additional Incentives”) to assist the DEVELOPER in acquiring the Subject Property and improving it with the Project; and WHEREAS, to induce the DEVELOPER to cause the Project to be constructed and operated, which will provide future financial benefits for the CITY, the CITY agrees to provide the DEVELOPER with the Additional Incentives set forth herein, in exchange for the DEVELOPER'S agreement to (a) comply with the terms of the IGA and the terms of this this Agreement, and (b) develop the Project on the Subject Property; and WHEREAS, Article VII, Section 10 of the 1970 Illinois Constitution, 65 ILCS 5/8- 1-2.5, 5 ILCS 220/1 et seg. and the CITY’S home rule powers provide the authority for this Agreement; and WHEREAS, it is in the best interests of the Parties to enter into this Agreement; NOW, THEREFORE, in consideration of the foregoing, and the mutual covenants and agreements contained herein, the Parties hereto agree as follows: 461767_5 2 ===== PDF PAGE 196 ===== [Extraction: OCR (rendered-page OCR)] INCORPORATION OF PREAMBLES. The preambles hereto, as set forth above, are incorporated herein by reference and are made part hereof. DEVELOPER CONDITIONS. The DEVELOPER’S right to receive the Additional Incentives under this Agreement is expressly conditioned upon the performance by the DEVELOPER of the following conditions, to the extent the conditions can be met prior to the Additional Incentives being granted to the DEVELOPER. The DEVELOPER shall: A. B. 461767_5 Not be in default of its obligations in the IGA. Operate the Project on the Subject Property as ongoing business operation of approximately one hundred eighty-six thousand (186,000) square feet. Provide the CITY all documents reasonably requested by the CITY regarding the matters set forth in the IGA and this Agreement. Within a reasonable time after the Commencement Date (as defined in the IGA), two hundred (200) or more full-time employees shall work in the building constructed as part of the Project initially, and four hundred (400) or more full-time employees shall work there when the building developed as part of the Project is fully occupied, at an average total compensation of Thirty-Two Thousand and No/100 Dollars ($32,000.00) No less than once per calendar year, on a date selected by the CITY, provide a written report to the CITY with: 1. A summary of the Project’s, the DEVELOPER’s then-current operations at the Subject Property (including the number of full- time equivalent employees, employed at or as a result of the Project), and any plans for prospective growth or expansion at the Subject Property; and 2. Copies of documentation showing the number of square feet of the Subject Property used for carrying out the Project, including but not limited to property casualty policy renewal certificate, and/or annual fire inspection reports. ===== PDF PAGE 197 ===== [Extraction: OCR (rendered-page OCR)] No more often than once per calendar year, on a date selected by the CITY, provide a certified payroll summary, or similar documentation acceptable to the CITY, to verify the DEVELOPER’s compliance with its obligations in Section 2.D. above. Only use water on the Subject Property purchased from the CITY. Purchase no less than twenty-five million (25,000,000) gallons of water from the CITY in each twelve (12) month period after the Commencement Date (as defined in the IGA). 3. ADDITIONAL INCENTIVES. The Additional Incentives are: A. 461767_5 PARTIAL BUILDING PERMIT COSTS REIMBURSEMENT. So long as the DEVELOPER paid the CITY for a building permit for the Project in excess of One Hundred Thousand and No/100 Dollars ($100,000.00), the CITY shall reimburse the DEVELOPER One Hundred Thousand and No/100 Dollars ($100,000.00) of the building permit fees paid by the DEVELOPER to the CITY for the Project. Building permit costs reimbursed herein exclude the sewer capacity fee and all third party costs paid by the CITY associated with the building permit for the Project, such as, but not limited to, plan review costs and the land cash fee to the West Chicago Fire Protection District. The amount of the building permit costs reimbursed herein shall be the “Building Permit Waiver Costs.” The CITY shall pay the reimbursement in this Section 3.A. within ninety (90) days after a request by the DEVELOPER to the CITY for payment of the Building Permit Waiver Costs. PARTIAL MUNICIPAL WATER AND SEWER CHARGES REBATE. So long as DEVELOPER is operating an industrial manufacturing food processing operation at the Subject Property, so long as the Subject Property only uses water purchased from the City, and so long as the Subject Property has used more than twenty five million (25,000,000) gallons of water provided by the CITY in each twelve (12) month period after the Commencement Date (as defined in the IGA), then during the period beginning on January 1° of the calendar year immediately following the “Commencement Date” (as defined in the IGA), the CITY shall rebate to the DEVELOPER, in the time and manner described in Section 4 below, Twenty-Five Percent (25%) of the CITY’s water and sewer charges paid by the DEVELOPER and received by the CITY for the Subject Property. The amount of the CITY’s water and sewer charges actually rebated to the DEVELOPER herein shall be the “Water and Sewer Charges Rebate.” ===== PDF PAGE 198 ===== [Extraction: OCR (rendered-page OCR)] 4. PARTIAL WATER AND SEWER CHARGES REBATE PAYMENT. The CITY shall rebate the DEVELOPER a portion of the CITY’s water and sewer charges as set forth in Section 3.B. above paid by the DEVELOPER no more than one (1) time annually, and covering no more than twelve (12) months of water and sewer usage on the Project per payment. The DEVELOPER shall submit invoices to the CITY by January 31 requesting the Water and Sewer Charges Rebate for the prior calendar year, together with documentation of the payment of the CITY water and sewer charges paid for the Subject Property, along proof of payment and such other information and/or documents reasonably requested by the CITY. Upon the CITY’s receipt of all supporting documentation and information, and upon confirmation the DEVELOPER is entitled to receive the Water and Sewer Charges Rebate payment, the CITY shall pay the DEVELOPER the Water and Sewer Charges Rebate within sixty (60) days thereafter. 5. ADDITIONAL INCENTIVES CLAWBACK. If the Project ceases on the Subject Property, or if the DEVELOPER breaches any of its obligations in this Agreement or the IGA, including that water used on the Subject Property be purchased only from the CITY and that water purchased for the Subject Property from the CITY be more than twenty-five million (25,000,000) gallons per year, then, in such instance, the CITY shall provide written notice of such cessation or breach to DEVELOPER (“Default Notice”). If DEVELOPER does not (a) recommence operation of the Project within thirty (30) days following DEVELOPER’s receipt of a Default Notice, or (b) cure any such breach of this 461767_5 5 ===== PDF PAGE 199 ===== [Extraction: OCR (rendered-page OCR)] Agreement within such thirty (30) day period (provided, that if such cure cannot reasonably be performed in thirty (30) days, then, DEVELOPER shall have such additional time as may be reasonably required to effect such cure provided that DEVELOPER commences such cure within such thirty (30) day period and diligently pursues the same to completion), then the CITY may elect, by written notice to DEVELOPER, to terminate this Agreement (“Termination”), whereupon the DEVELOPER shall reimburse the CITY the Additional Incentives as follows: A. If a Termination occurs within five (5) years from the “Commencement Date,” as defined in the IGA, the DEVELOPER shall pay the CITY Seventy Five Percent (75%) of both the Building Permit Waiver Costs and the Water and Sewer Charges Rebate realized by DEVELOPER prior to the date on which the Termination occurs, and thereafter the DEVELOPER shall not be entitled to receive any Additional Incentives pursuant to this Agreement; or B. If a Termination occurs after-between five (5) years and fifteen (15) years from the “Commencement Date,” as defined in the IGA, the DEVELOPER shall pay the CITY Fifty Percent (50%) of both the Building Permit Waiver Costs and the Water and Sewer Charges Rebate, and thereafter the DEVELOPER shall not be entitled to receive any Additional Incentives pursuant to this Agreement. The DEVELOPER’s reimbursement obligations herein shall survive, and be binding upon the DEVELOPER, regardless of the termination of this Agreement. The DEVELOPER shall reimburse the CITY as provided herein within thirty (30) days of a written demand from the CITY for such reimbursement. 6. INTERVENING ACTIONS. The Parties acknowledge that the Additional Incentives are predicated upon current law in the State of Illinois, as of the Effective Date, allowing the CITY to make the Additional Incentives available to the DEVELOPER. Should the Illinois General Assembly, or a court of competent jurisdiction, hereafter eliminate or limit the CITY’s authority to make 461767_5 6 ===== PDF PAGE 200 ===== [Extraction: OCR (rendered-page OCR)] the Additional Incentives available to the DEVELOPER, or which prevents the CITY from paying the Water and Sewer Charges Rebate to the DEVELOPER, or should the CITY’s ability to make any Additional Incentives to DEVELOPER be limited or eliminated in any manner, then, upon the occurrence of any of the foregoing events, (a) the DEVELOPER shall not be entitled to receive the Additional Incentive(s) so limited, and (b) DEVELOPER may, by written notice delivered to the CITY at any time following the occurrence of any of the foregoing events, elect to terminate this Agreement whereupon this Agreement shall be of no further force or effect (including, without limitation, the DEVELOPER’ liability under Section 5 above). 7. GENERAL CONDITIONS/REQUIREMENTS. A. This Agreement is entered into for the benefit of each of the Parties, solely, and not for the benefit of any third party. B. Nothing contained in this Agreement shall constitute a waiver of any privileges, defenses or immunities which the CITY may have under the Local Governmental and Governmental Employees Tort Immunity Act, 745 ILCS 10/1-101, et seq., with respect to any claim brought by a third party. C. The rights and obligations of the DEVELOPER shall constitute covenants running with the land of the Subject Property and shall be binding on successors and assigns of the DEVELOPER and shall bind all owners of the Subject Property, including the Project located thereon, or any portion thereof. Dz. This Agreement shall be recorded on title to the Subject Property at the expense of the DEVELOPER upon taking effect. E. Upon a breach of this Agreement the non-breaching Party, by an action or proceeding solely in equity brought in the 18th Judicial Circuit Court, in DuPage County, Illinois, may secure the specific performance of the covenants and agreements herein contained, for failure of performance. F. In the event of a default by any of the Parties, the defaulting Party, as 461767_5 7 ===== PDF PAGE 201 ===== [Extraction: OCR (rendered-page OCR)] 461767_5 adjudicated by a court of competent jurisdiction, shall pay to the non- defaulting Party, upon demand, all of the non-defaulting Party's reasonable costs, charges and expenses, including, but not limited to, the costs of accountants, consultants, attorneys and others retained by the non-defaulting Party for the purpose of enforcing any of the obligations of the defaulting Party under this Agreement. The failure of any Party to insist upon the strict and prompt performance of the terms, covenants, agreements and conditions herein contained, or any of them, by any other Party, shall not constitute or be construed as a waiver or relinquishment of any Party’s right thereafter to enforce any such term, covenant, agreement or condition, but the same shall continue in full force and effect. If the performance by any Party hereunder is delayed as a result of circumstances which are beyond the reasonable control of such Party (which circumstances shall only include acts of God, war, strikes, a virus, including COVID-19, pandemic or similar acts of force majeure), the time for such performance shall be extended by the amount of time of such delay. This Agreement shall remain in full force and effect until the earlier of a Termination or the other termination of this Agreement. In the event that the CITY’s authority to carry out its obligation in this Agreement is repealed, become null and void or otherwise become invalid, then the CITY’s obligations hereunder shall cease and no further obligations of any sort shall be required of the CITY. The DEVELOPER shall have no recourse against the CITY in such event. No amendment to, or modification of, this Agreement shall be effective unless and until it is in writing and approved by the authorized representative of the DEVELOPER and by the CITY'S corporate authorities, and executed and delivered by the authorized representatives of each Party. lf, during the term of this Agreement, any lawsuits or other proceedings are filed or initiated against any Party before any court, commission, board, bureau, agency, unit of government or sub-unit thereof, arbitrator, or other instrumentality, that may materially affect or inhibit the ability of any Party to perform its obligations under, or otherwise to comply with, this Agreement (“Litigation”), the Party against which the Litigation is filed or initiated shall promptly deliver a copy of the complaint or charge related thereto to the other Parties and shall thereafter keep the other Parties fully informed concerning all aspects of the Litigation. Each Party shall, to the extent necessary, cooperate with the other Parties in this event. The ===== PDF PAGE 202 ===== [Extraction: OCR (rendered-page OCR)] Parties each agree to use their respective best efforts to defend the validity of this Agreement and all approvals of the Parties related thereto, including every portion thereof and every approval given, and every action taken, pursuant thereto. The DEVELOPER shall and hereby agrees to defend, hold harmless and indemnify the CITY, and its respective elected officials, appointed officials, employees, agents and attorneys (collectively the “CITY Affiliates”) from and against any and all third-party claims, demands, suits, damages, liabilities, losses, expenses, and judgments against any CITY Affiliates resulting from DEVELOPER’s breach of its obligations hereunder. The obligation of the DEVELOPER in this regard shall include, but shall not be limited, to all costs and expenses, including reasonable attorneys' fees, incurred by the CITY Affiliates in responding to, defending against, or settling any such claims, demands, suits, damages, liabilities, losses, expenses or judgments. The DEVELOPER covenants that it will reimburse the CITY Affiliates, or pay over to the CITY Affiliates, all reasonable sums of money the CITY Affiliates pay, or becomes liable to pay, to any such third-party by reason of any of the foregoing; provided, however, that the DEVELOPER’s liability under this Section 8.M. shall be limited to the total amount of the Additional Incentives that the DEVELOPER has received pursuant to this Agreement as of the date of any such claim, demand, suit, damage, liability, loss, expense, or judgment. In any suit or proceeding for which DEVELOPER is required to indemnify and hold any CITY Affiliates harmless hereunder, such CITY Affiliates shall have the right to appoint counsel of their own choosing to represent it, the reasonable costs and expenses of which shall be paid by the DEVELOPER. The DEVELOPER shall maintain the Subject Property or cause it to be maintained, and operate the Project, in compliance with all Federal, State, County, and CITY laws, ordinances, resolutions, rules and regulations. NOTICES. Notice or other writings which any Party is required to, or may wish to, serve upon any other Party in connection with this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 461767_5 A. If to the CITY: B. If to the DEVELOPER: City of West Chicago OSI Industries, LLC 475 Main Street 1225 Corporate Boulevard West Chicago, Illinois 60185 Aurora, Illinois 60505 Attention: Mayor Attention: 9 ===== PDF PAGE 203 ===== [Extraction: OCR (rendered-page OCR)] 10. 11. With copies to: With a copy to: City of West Chicago 475 Main Street West Chicago, Illinois 60185 Attn: City Administrator Attn: Bond, Dickson & Associates 400 Knoll Street Wheaton, Illinois 60187 Attn: Patrick Bond or to such other address, or additional individuals/entities, as any Party may from time to time designate in a written notice to the other Parties. Service by personal delivery shall be deemed given when delivery occurs, and service by certified or registered mail shall be deemed given three (3) days after depositing same in the mail. COUNTERPARTS. This Agreement may be executed simultaneously in two (2) counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same Agreement. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the Parties and supersedes any prior understanding or written or oral agreements between them regarding the within subject matter. There are no representations, agreements, arrangements or understandings, oral or written, between and among the Parties hereto relating to the subject matter of this Agreement which are not fully expressed herein. EFFECTIVE DATE. This Agreement shall be deemed dated and become effective on the date the last of the Parties execute this Agreement as set forth below, which date shall be filled in on page 1 hereof. 461767_5 10 ===== PDF PAGE 204 ===== [Extraction: OCR (rendered-page OCR)] IN WITNESS WHEREOF, the CITY, pursuant to authority granted by the adoption of a Motion/Resolution by its City Council, has caused this Agreement to be executed by its Mayor and attested by its Clerk and DEVELOPER, pursuant to proper authority granted in accordance with its organizational documents, has caused this Agreement to be executed by its Manager and attested by its CITY: DEVELOPER: CITY OF WEST CHICAGO OSI INDUSTRIES, LLC By: By: , Mayor ' ATTEST: ATTEST: , City Clerk ' Dated: Dated: 461767_5 11