===== PDF PAGE 2 ===== [Extraction: embedded PDF text] DRAFT MINUTES- Pending Approval CITY OF WEST CHICAGO – 475 Main Street FINANCE COMMITTEE MINUTES Regular Meeting July 7, 2025 1. Call to Order, Roll Call and Establishment of a Quorum Alderman Dimas called the meeting to order at 6:00 p.m. on July 7, 2025. Roll call found Daniel M. Beebe, Sandy Dimas, Alton Hallett, Jayme Sheahan, Rebecca Stout, Matthew Myers and Chris Swiatek present. A quorum was established. Staff in attendance: Interim City Administrator Tia Messino, Finance Director Nikki Giles and Business and Community Relations Director Kelley Chrisse. 2. Approval of Minutes Finance Committee Meeting Minutes of June 2, 2025 Alderman Hallett made a motion, seconded by Alderman Stout, to approve the Finance Committee Meeting minutes of June 2, 2025. Voting Aye: Alderman Beebe, Dimas, Hallett, Myers, Sheahan, Stout, Swiatek. Voting Nay: 0. Absent: 0 Motion carried. 3. Public Participation / Presentations. Louise Handel addressed the committee regarding finding alternatives to increasing the retail tax or the grocery tax. 4. Items for Consent. None 5. Items for Discussion. A. Elimination of the State Grocery Tax Alderman Dimas said that after the previous discussion and consideration she is in favor to add the 1% grocery tax within the City. This is based on communities around us that have already implemented the 1% grocery tax and many families have already allocated that money in their budgets. She said the retail sales tax may sound nice on paper but that would place the City in a higher tax bracket, and in fact it would be one of the highest tax brackets in the area. She noted that before presenting the recommendation to the council, the recommendation should include verbiage that this would be reviewed yearly to determine the impact on our community. ===== PDF PAGE 3 ===== [Extraction: embedded PDF text] Alderman Stout agreed with Alderman Dimas and said because residents have already built that 1% into their grocery budgets it makes sense to continue with the 1% grocery tax. She also agreed to re-evaluate on a regular basis once we get real number to see how residents are being impacted. Alderman Hallett also agreed with Alderman Stout and noted that instead of the State of Illinois collecting the tax it would now be the City collecting the tax. Alderman Swiatek also agreed with everything that has been said. He believes it would be more harmful to residents if the City were to impose the quarter of a percent and believes the City should stick with the 1% grocery tax. Alderman Myers said he believes that the City should not let the 1% grocery tax expire mainly because there are capital improvement project costs and downtown revitalization. He said it would be a bad idea to start cutting off revenue sources. He agreed that the 1% grocery tax makes sense. He spoke on using Placer.AI as a tool help the City identify who’s shopping at what locations throughout the City. Alderman Dimas listed the grocery stores that would be impacted within the City. Alderman Myers noted the recommendation would still have to be approved by City Council. Alderman Dimas said that something has to be done either way. The grocery tax can’t just be eliminated, so it’s going to be either the 1% grocery tax or the home rule sales tax. She said for now implementing the 1% grocery tax would cause the least amount of impact. She also said there is a possibility the home rule sales tax may also need to be implemented at a future date due to additional state funding cuts. Alderman Hallet again stated the 1% grocery tax is the best option at this time. Alderman Myers asked what services would the City cut if the City lost the 1% grocery tax revenue. Finance Director Nikki Giles said City Council would have to review the recommended options and provide a recommendation to staff but ultimately direction would need to be given by City Council. Alderman Stout asked if staff had information as far as which other neighboring communities are keeping the 1% grocery tax in place. Finance Director Nikki ===== PDF PAGE 4 ===== [Extraction: embedded PDF text] Giles provided a list of neighboring communities that 1) have approved keeping the 1% grocery tax, 2) are still working on making a decision and 3) opted not to implement the 1% grocery tax at this time. Alderman Dimas asked for direction to have staff put together a document for the City Council to vote on with moving forward with the 1% grocery tax with the caveat that this will be reviewed one year from now. All Alderman were in favor by show of hands, none opposed. 6. Unfinished Business. None 7. New Business. None 8. Reports from Staff. None 9. Executive Session (if needed). 10. Adjournment. At 6:20p.m., Alderman Stout made a motion, seconded by Alderman Hallett, to adjourn the meeting. All Aldermen voted Aye by voice vote. Respectfully submitted, Josie Avilez ===== PDF PAGE 5 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT ee oF | WEST CHICAGO eo ot ne GR Ge) Gee FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 475 Main Street West Chicago, Illinois 60185 Phone: 630.293.2200 Fax: 630.293.3028 www.westchicago.org ===== PDF PAGE 6 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 Prepared by Nikki Giles Finance Director ===== PDF PAGE 7 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Principal Officials 1 Organizational Chart 2 Transmittal Letter 3 Certificate of Achievement for Excellence in Financial Reporting 8 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 11 MANAGEMENT’S DISCUSSION AND ANALYSIS 16 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 29 Statement of Activities 31 Fund Financial Statements Balance Sheet - Governmental Funds 33 Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities 35 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 37 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities 39 Statement of Net Position - Proprietary Funds 41 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 43 Statement of Cash Flows - Proprietary Funds 44 Statement of Fiduciary Net Position 45 Statement of Changes in Fiduciary Net Position 46 Notes to the Financial Statements 47 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions - Last Ten Fiscal Years Illinois Municipal Retirement Fund 80 Police Pension Fund 81 Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Fiscal Years Illinois Municipal Retirement Fund 83 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 Investment Return - Last Ten Fiscal Years Police Pension Fund 87 Schedule of Changes in the Employer’s Total OPEB Liability Retiree Benefits Plan 89 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund 91 Community Park - Special Revenue Fund 92 Downtown TIF #2 - Special Revenue Fund 93 Motor Fuel Tax - Special Revenue Fund 94 OTHER SUPPLEMENTARY INFORMATION Schedule of Revenues - Budget and Actual - General Fund 99 Schedule of Expenditures - Budget and Actual - General Fund 101 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Capital Improvement - Capital Projects Fund 103 Combining Balance Sheet - Nonmajor Governmental Funds 104 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental - Special Revenue Funds 105 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TIF Special Tax Allocation #2 - Special Revenue Fund 106 TIF Special Tax Allocation #3 - Special Revenue Fund 107 Capital Equipment Replacement - Capital Projects Fund 108 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual Waterworks - Enterprise Fund 109 Sewerage - Enterprise Fund 110 Commuter Parking - Enterprise Fund 111 Consolidated Year-End Financial Report 112 ===== PDF PAGE 9 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TABLE OF CONTENTS PAGE STATISTICAL SECTION (Unaudited) Net Position by Component - Last Ten Fiscal Years 115 Changes in Net Position - Last Ten Fiscal Years 117 Fund Balances of Governmental Funds - Last Ten Fiscal Years 119 Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years 121 Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years 123 Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years 125 Principal Property Tax Payers - Current Tax Levy Year and Nine Tax Levy Years Ago 127 Property Tax Levies and Collections - Last Ten Fiscal Years 128 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 129 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 130 Schedule of Direct and Overlapping Bonded Debt 131 Schedule of Legal Debt Margin - Last Ten Fiscal Years 132 Demographic and Economic Statistics - Last Ten Fiscal Years 133 Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago 134 Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years 135 Operating Indicators by Function/Program - Last Ten Fiscal Years 137 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 139 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS 142 ===== PDF PAGE 10 ===== [Extraction: embedded PDF text] INTRODUCTORY SECTION This section includes miscellaneous data regarding the City of West Chicago, Illinois including: Principal Officials Organizational Chart Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting ===== PDF PAGE 11 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Principal Officials December 31, 2024 LEGISLATIVE City Mayor: Ruben Pineda ALDERMEN Daniel M. Beebe Joseph Morano Heather Brown Jayme Sheahan Lori Chassee Jeanne Short Melissa Birch Ferguson Alton Hallett Sandra Dimas John C. Smith Jr. Christine Dettmann Rebecca Stout Christopher Swiatek John Banas ADMINISTRATIVE City Administrator: Michael L. Guttman Assistant City Administrator: Tia Messino FINANCE Finance Director: Nikki Giles 1 ===== PDF PAGE 12 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO ORGANIZATIONAL CHART ORGANIZATIONAL NUMBER OF HIERARCHY CITY STAFF 1 1 8 117 FULL TIME 1 PART-TIME 1 1 EE Administration: 6 i ' Business & Community I City Administrator = Relations: 3 Assistant Department Heads Finance: 7 l City Administrator Division Heads Community Development: 7 Police: 51 Public Works: 44 Assistant Assistant Director . Assistant 1 Director ‘of Community paptsyei th Director of of Finance Development of Police Public Works So so504 1 beesose5ca5 1 1 ' \ Marketing & Communications Manager Chief Support Services & Patrol Streets Division Building Investigations Commander Superintendent : Water Treatment u fj Division 1 Superintendent ' Utility Division 1 Superintendent t Facilities 1 Management & woo Hee eee Fleet Maintenance u Division Superintendent fl a ===== PDF PAGE 13 ===== [Extraction: embedded PDF text] June 20, 2025 The Honorable Mayor Ruben Pineda Members of the West Chicago City Council City Administrator Michael Guttman Citizens of the City of West Chicago The Annual Comprehensive Financial Report of the City of West Chicago (the City) for the Fiscal Year ended December 31, 2024, 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, 2024, are free of material misstatement. The auditor's 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. 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 25,614, based upon the results of the census conducted in 2020. West Chicago became a home rule unit of government on March 3, 2004. 3 ===== PDF PAGE 14 ===== [Extraction: embedded PDF text] The equalized assessed valuation of the City reflects its strong economic condition. The City’s assessed valuation has more than doubled since 1996 and increased by an astounding $102 million in 2024. 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 and business owners, 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. 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 Department Budgets 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. • 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. 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: • The City successfully collaborated with consulting engineers to complete the construction and construction engineering of the American Rescue Plan Act (ARPA) grant-funded Klein Road Culvert Replacement project, 2024 Annual Roadway Rehabilitation Project, Conde Street Resurfacing Project and Harvester Road Reconstruction Project. Annual maintenance projects and programs such as Pavement Rejuvenation, Crack Filling, Sidewalk & Curb and Gutter Replacement, Sidewalk Cutting, and Street Striping throughout various parts of the City were successfully completed. The City also completed utility permit reviews, assisted with private development reviews and performed rights of-way inspections (public utilities, sidewalks, streetlights, roadway, etc.) for the Trillium Farm Subdivision. The team is also working on various design projects for FY2025. ===== PDF PAGE 15 ===== [Extraction: embedded PDF text] • The City was awarded more than $5.8 million, receiving more than $5.4 million in grant funding, while spending $1.6 million on various grant projects. The largest grant projects included: the Klien Road Culvert Construction, Conde St. Construction and the Fremont St. Water Tank Rehabilitation. • The City collaborated with consulting engineers to complete construction on multiple roadway projects. The projects included the MFT-funded 2024 Roadway Rehabilitation Project (1.55 miles), Surface Transportation Program (STP) grant-funded Conde Street Resurfacing Project (0.52 miles) and Rebuild Illinois (RBI) grant-funded Harvester Road Reconstruction Project (0.76 miles). Furthermore, City Staff applied for and successfully secured STP Grants for both construction and construction engineering for the Atlantic Drive Resurfacing Project in the amount of $1,479,344 for FY 2028 and the Arbor Avenue Resurfacing Project in the amount of $1,377,149 for FY 2029. 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 challenge of rising operating costs, the City annually undergoes an annual, comprehensive, multi-phased review of both the budget and cost for services, and continues 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, 2024. 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, Motor Fuel Tax Fund, Water Fund and Sewer Fund each have their respective five-year plans. ===== PDF PAGE 16 ===== [Extraction: embedded PDF text] Policy and Decision Impacts on Financial Statements The following policies and decisions had significant impact on the City’s financial statements: • Inflation, materials costs, contract and service costs, and supply-chain issues have significantly impacted the costs and timing of the City’s infrastructure projects. To help offset some of these costs, the City has and will continue to pursue grant funding. It also made the difficult, yet necessary decision, to continue to increase its water and sewer rates on a regular schedule. Most grant funding and the new water and sewer rates will be invested directly back into City infrastructure. West Chicago also welcomed a new 84 home subdivision to its water and sewer routes. This subdivision will generate new revenue to further offset costs. • The City established the Business & Community Relations Department to foster greater collaboration and engagement with residents, the business community, nonprofits, and potential investors. This department consolidates multiple City services—including economic development, marketing and communications, special events, and museum management—into one unified team. The department’s mission is to drive economic vitality, celebrate cultural heritage, and strengthen community connections by strategically promoting local assets, organizing engaging events, and enhancing West Chicago's unique identity. The department will focus on attracting new investments, supporting local businesses, and creating opportunities for residents to connect and engage with the City’s rich history and culture. It will spearhead initiatives designed to invigorate the local economy and build stronger ties between the City and its community. • In an effort to increase retail and restaurant activity in downtown West Chicago, the Downtown Retail & Restaurant Business Grant Program has been revised. Originally established in 2013 but underutilized, the program has now been redesigned to attract and support new and existing businesses in the downtown area. The revised program offers expanded eligible expenses, including funding for retail consulting, visual merchandising, and website development, alongside traditional marketing services. It also eliminates the Selection Committee to streamline the approval process. The program provides grants for up to $10,000 for new businesses and $5,000 for existing businesses in the downtown TIF district, with a $30,000 budget for fiscal year 2025. • There has been a renewed interest in West Chicago’s downtown area, with several new restaurants, retailers and more opening in 2024. The majority of the City’s vacant buildings and strip centers now are fully occupied. There is a significant positive financial impact from these businesses regarding permit fees, tax dollars, and employees and their vendors and employees utilizing the local economy. West Chicago will continue to attract and retain businesses through the guidance of its Community Development Department and Business & Community Relations Department staff and its Economic Development Commission. • The City continued the practice of raising the property tax levy by the maximum amount permitted by non-home rule units of government to keep pace with the increases associated with police personnel, primarily the significant year over year increases in the cost to fund their pensions. AWARDS AND ACHIEVEMENTS In 2024, the City of West Chicago was given was given the designation of being ranked #20 for “Best Places to Live for Families” in the United States by Fortune Magazine. There was only one municipality per state to make the list. ===== PDF PAGE 17 ===== [Extraction: embedded PDF text] The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificated of Achievement for Excellence in Financial Reporting to the City of West Chicago for its annual comprehensive financial report for the fiscal year ended December 31, 2023. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting from The Government Finance Officers Association of the United States and Canada (GFOA), the City must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. This report can also 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 annual comprehensive 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 Finance Department. Each member of the Department has my sincere appreciation for the contribution made in the preparation of this report. In closing, I 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, Nikki Giles Finance Director ===== PDF PAGE 18 ===== [Extraction: OCR (rendered-page OCR)] Pp Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of West Chicago Illinois For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2023 CRustloprte. P. Mon Executive Director/CEO ===== PDF PAGE 19 ===== [Extraction: embedded PDF text] FINANCIAL SECTION This section includes: Independent Auditor's Report Management’s Discussion and Analysis Basic Financial Statements Required Supplementary Information Other Supplementary Information 9 ===== PDF PAGE 20 ===== [Extraction: embedded PDF text] INDEPENDENT AUDITOR'S REPORT This section includes the opinion of the City’s independent auditing firm. 10 ===== PDF PAGE 21 ===== [Extraction: embedded PDF text] INDEPENDENT AUDITOR'S REPORT June 20, 2025 The Honorable City Mayor Members of the City Council City of West Chicago, Illinois Report on the Audit of the Financial Statements Opinion 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 (the City), Illinois, as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. 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, 2024, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 11 ===== PDF PAGE 22 ===== [Extraction: embedded PDF text] City of West Chicago, Illinois June 20, 2025 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules, and supplementary pension and other post- employment benefit (OPEB) schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. 12 ===== PDF PAGE 23 ===== [Extraction: embedded PDF text] City of West Chicago, Illinois June 20, 2025 Supplementary 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 other supplementary information is presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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, other supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 20, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. LAUTERBACH & AMEN, LLP 13 ===== PDF PAGE 24 ===== [Extraction: OCR (rendered-page OCR)] 14 ===== PDF PAGE 25 ===== [Extraction: OCR (rendered-page OCR)] MANAGEMENT'S DISCUSSION AND ANALYSIS 15 ===== PDF PAGE 26 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) Our discussion and analysis of the City of West Chicago (the City), Illinois’ financial performance provides an overview of the City’s financial activities for the fiscal year ended December 31, 2024. Please read it in conjunction with the transmittal letter, which can be found in the introductory section of this report and the City’s financial statements, which can be found in the basic financial statements section of this report. FINANCIAL HIGHLIGHTS • The City’s net position increased as a result of this year’s operations. Net position of the governmental activities increased by $4,436,795, or 8.9 percent and net position of business-type activities increased by $4,873,910, or 5.5 percent. • During the year, government-wide revenues for the primary government totaled $54,370,244, while expenses totaled $45,059,539, resulting in an increase to net position of $9,310,705. • The City’s net position totaled $147,290,103 on December 31, 2024, which includes $146,406,566 net investment in capital assets, $13,341,354 subject to external restrictions, and deficit $12,457,817 unrestricted net position that may be used to meet the ongoing obligations to citizens and creditors. • The General Fund reported an increase this year of $147,407 or 1.7 percent, resulting in an ending fund balance of $8,668,197. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. 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’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. Government-Wide Financial Statements The government-wide financial statements provide readers with a broad overview of the City’s finances, in a matter similar to a private-sector business. The Statement of Net Position reports information on all of the City’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 nonfinancial 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. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of 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). 16 ===== PDF PAGE 27 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) USING THIS ANNUAL REPORT - Continued Government-Wide Financial Statements - Continued Both of the government-wide financial statements distinguish functions of the City 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 include general government, public safety, culture and recreation, and streets and highways. The business-type activities of the City 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, 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. 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 year. Such information may be useful in evaluating the City’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 maintains eight 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, Community Park Fund, Downtown TIF #2 Fund, Motor Fuel Tax Fund, and Capital Improvement Fund 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 adopts an annual appropriated budget for all of the governmental funds. A budgetary comparison schedule for these funds has been provided to demonstrate compliance with this budget. 17 ===== PDF PAGE 28 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) USING THIS ANNUAL REPORT - Continued Proprietary Funds The City 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 utilizes enterprise funds to account for its water and sewer operations, water and sewer construction, water and sewer debt retirement, and commuter parking operations. 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 nonmajor fund. 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’s own programs. The accounting use for fiduciary funds is much like that used for proprietary funds. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s 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. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information on pensions. 18 ===== PDF PAGE 29 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) 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, assets/deferred outflows exceeded liabilities/deferred inflows by $147,290,103. Net Position Governmental Business-Type Activities Activities Totals 2024 2023 2024 2023 2024 2023 Current Assets $ 40,793,464 38,835,173 2,868,096 1,797,873 43,661,560 40,633,046 Capital Assets 52,898,165 50,120,415 94,586,801 94,713,338 147,484,966 144,833,753 Total Assets 93,691,629 88,955,588 97,454,897 96,511,211 191,146,526 185,466,799 Deferred Outflows 7,105,745 11,214,910 1,489,873 2,398,631 8,595,618 13,613,541 Total Assets/Deferred Outflows 100,797,374 100,170,498 98,944,770 98,909,842 199,742,144 199,080,340 Long-Term Liabilities 31,574,823 35,238,904 4,335,236 4,543,658 35,910,059 39,782,562 Other Liabilities 5,690,915 5,465,426 1,489,087 6,169,585 7,180,002 11,635,011 Total Liabilities 37,265,738 40,704,330 5,824,323 10,713,243 43,090,061 51,417,573 Deferred Inflows 9,299,475 9,670,802 62,505 12,567 9,361,980 9,683,369 Total Liabilities/Deferred Inflows 46,565,213 50,375,132 5,886,828 10,725,810 52,452,041 61,100,942 Net Position Net Investment in Capital Assets 51,819,765 50,120,415 94,586,801 94,019,877 146,406,566 144,140,292 Restricted 13,306,421 13,554,830 34,933 180,321 13,341,354 13,735,151 Unrestricted (Deficit) (10,894,025) (13,879,879) (1,563,792) (6,016,166) (12,457,817) (19,896,045) Total Net Position 54,232,161 49,795,366 93,057,942 88,184,032 147,290,103 137,979,398 A large portion of the City’s net position, $146,406,566, reflects its investment in capital assets (for example, land, construction in progress, land improvements, buildings and improvements, machinery and equipment, and infrastructure), 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, $13,341,354, of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining deficit $12,457,817 represents unrestricted net position and may be used to meet the government’s ongoing obligations to citizens and creditors. 19 ===== PDF PAGE 30 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) GOVERNMENT-WIDE FINANCIAL ANALYSIS - Continued Changes in Net Position Governmental Business-Type Activities Activities Totals 2024 2023 2024 2023 2024 2023 Revenues Program Revenues Charges for Services $ 5,984,952 6,715,302 15,396,047 14,608,248 21,380,999 21,323,550 Operating Grants/Contributions 2,196,607 2,262,849 — 540,000 2,196,607 2,802,849 Capital Grants/Contributions — — 750,000 — 750,000 — General Revenues Property Tax 4,738,185 4,538,891 10,107 10,290 4,748,292 4,549,181 Other Taxes 716,132 725,822 — — 716,132 725,822 Sales and Use Taxes 12,087,235 10,127,058 — — 12,087,235 10,127,058 Income Taxes 4,349,779 4,091,052 — — 4,349,779 4,091,052 Replacement Taxes 301,030 527,994 — — 301,030 527,994 Utility Taxes 2,125,655 2,131,218 — — 2,125,655 2,131,218 Video Gaming Taxes 96,439 38,789 — — 96,439 38,789 ARPA — — 3,649,246 — 3,649,246 — Investment Income 801,731 450,063 — — 801,731 450,063 Miscellaneous 699,679 973,362 467,420 763,661 1,167,099 1,737,023 Total Revenues 34,097,424 32,582,400 20,272,820 15,922,199 54,370,244 48,504,599 Expenses General Government 9,574,640 9,057,223 — — 9,574,640 9,057,223 Public Safety 12,341,985 10,976,733 — — 12,341,985 10,976,733 Culture and Recreation 47,062 47,062 — — 47,062 47,062 Streets and Highways 7,681,942 9,664,763 — — 7,681,942 9,664,763 Interest on Long-Term Debt 15,000 — — — 15,000 — Waterworks — — 8,073,739 7,703,453 8,073,739 7,703,453 Sewerage — — 7,222,278 6,735,252 7,222,278 6,735,252 Commuter Parking — — 102,893 83,878 102,893 83,878 Total Expenses 29,660,629 29,745,781 15,398,910 14,522,583 45,059,539 44,268,364 Change in Net Position Before Transfers 4,436,795 2,836,619 4,873,910 1,399,616 9,310,705 4,236,235 Transfers — (692,086) — 692,086 — — Change in Net Position 4,436,795 2,144,533 4,873,910 2,091,702 9,310,705 4,236,235 Net Position - Beginning 49,795,366 47,650,833 88,184,032 86,092,330 137,979,398 133,743,163 Net Position - Ending 54,232,161 49,795,366 93,057,942 88,184,032 147,290,103 137,979,398 20 ===== PDF PAGE 31 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) GOVERNMENT-WIDE FINANCIAL ANALYSIS - Continued Net position of the City’s governmental activities increased by 8.9 percent ($54,232,161 in 2024 compared to $49,795,366 in 2023). Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints, totaled deficit $10,894,025 at December 31, 2024. Net position of business-type activities increased by 5.5 percent ($93,057,942 in 2024 compared to $88,184,032 in 2023). Governmental Activities Revenues for governmental activities totaled $34,097,424, while the cost of all governmental functions totaled $29,660,629. This results in an increase of $4,436,795. In 2023, revenues of $32,582,400 exceeded expenses of $29,745,781, resulting in a surplus of $2,836,619 prior to transfers out of $692,086. The increase in the current year is due to the increase in tax revenue collected. Revenue for sales and use taxes, income taxes, and video gaming taxes increased by $1,960,177, $258,727, and $57,650 respectfully. There was also an increase in investment income of $351,668. The following table graphically depicts the major revenue sources of the City. It depicts very clearly the reliance of property, sales and use taxes, charges for services, and income taxes to fund governmental activities. It also clearly identifies the less significant percentage the City receives from video gaming taxes, investment income, replacement taxes, other taxes, and miscellaneous revenues. Revenue by Source - Governmental Activities Income Taxes 12.8% Replacement Taxes 0.9% Utility Taxes Sales and Use Taxes 6.2% 35.3% Video Gaming Taxes 0.3% Investment Income 2.4% Miscellaneous 2.1% Other Taxes Charges for Services 2.1% 17.6% Property Tax 13.9% Operating Grants/Contributions 6.4% 21 ===== PDF PAGE 32 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) GOVERNMENT-WIDE FINANCIAL ANALYSIS - Continued Governmental Activities - Continued The ‘Expenses and Program Revenues’ Table 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 further outlines those revenues and expenses considered program specific. Expenses and Program Revenues - Governmental Activities $15,000,000 $10,000,000 $5,000,000 $— General Public Safety Culture and Streets and Interest on Long- Government Recreation Highways Term Debt Expenses Program Revenues Business-Type Activities Business-type activities posted total revenues of $20,272,820, while the cost of all business-type activities totaled $15,398,910. This results in an increase of $4,873,910. In 2023, revenues of $15,922,199 exceeded expenses of $14,522,583, resulting in a surplus of $1,399,616 prior to transfers in of $692,086. The increase in the current year is due to the increase in grant funding which increased revenues by $4,350,621. ARPA funds received in the current year was the biggest contributor at $3,649,246. Expenses and Program Revenues - Business-Type Activities $10,000,000 $5,000,000 $— Waterworks Sewerage Commuter Parking Expenses Program Revenues 22 ===== PDF PAGE 33 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’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. The City’s governmental funds reported combining ending fund balances of $30,702,067, which is $1,741,206, or 6.0 percent, higher than last year’s total of $28,960,861. Of the $30,702,067 total, $7,835,069, or approximately 25.5 percent, of the fund balance constitutes unassigned fund balance. The General Fund is the chief operating fund of the City. At December 31, 2024, unassigned fund balance in the General Fund was $7,835,069, which represents 90.4 percent of the total fund balance of the General Fund. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance in the General Fund represents approximately 35.4 percent of total General Fund expenditures. The fund balance in the General Fund at year-end was $8,668,197, while the previous fiscal year reported a fund balance of $8,520,790. This is an increase of $147,407, or 1.7 percent. The increase is mainly because of an overall decrease in interfund transfers that occurred at year-end compared to last year where the General Fund had transfers out totaling $5,990,145. The fund balance in the Community Park Fund will be used to fund the construction of a new park on the former Rare Earths Facility site and its future maintenance. The fund balance in the Community Park Fund increased by $1,669,031 due to the addition of video gaming facility that increased the amount of gaming revenue and gaming terminal fees. There was also a transfer of $1,450,000 from the General Fund. The fund balance in the TIF Special Tax Allocation #1 Fund was closed and re-opened as Downtown TIF #2 Fund. It reported an increase of $33,976 for the year as a result of the revenue of $50,672 exceeding expenditures of $16,696, resulting to an ending balance of $62,120, which will be used for prospective development. Tax revenues for the year increased primarily due to increased property tax revenue, which grew as an average increase of approximately 10% in the taxable property values, driven by increased local real estate market values. The fund balance in the Motor Fuel Tax Fund reported a decrease of $1,826,509 for the year. This decrease is due to an increase in street improvements/projects. The fund balance in the Capital Improvement Fund at year-end was $5,921,804, while the previous fiscal year reported a fund balance of $4,332,768. This is an increase of $1,589,036, or 36.7 percent. The increase is mainly due to a higher sales taxes revenue which increased by $1,907,323. 23 ===== PDF PAGE 34 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS - Continued Proprietary Funds The City’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 Sewerage Fund as 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 treatment plant and collection system. Water is sold to municipal customers at a rate of $9.00 per one thousand gallons of water and a rate of $10.00 per one thousand gallons of sewerage. 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 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 Waterworks Fund experienced an increase in net position of $6,749,047, while the previous fiscal year reported an increase of $1,535,046. The increase is mainly due to the increase in grant funding, in which ARPA was the biggest contributor at $3,649,246. The Sewerage Fund experienced a decrease in net position of $1,847,354, while the previous fiscal year reported an increase of $573,777. The decrease in current year is mainly due to an increase in the cost of water treatment. The Commuter Parking Fund experienced a decrease in net position of $27,783 while the previous fiscal year reported a decrease of $17,121. The decrease in current year is due to a decrease in daily and quarterly parkers. Total net position in the Proprietary Funds was $93,057,942 (net investment in capital assets, restricted, and unrestricted (deficit) at December 31, 2024. GENERAL FUND BUDGETARY HIGHLIGHTS The City Council made no budget amendment to the General Fund during the year. General Fund actual revenues for the year totaled $23,741,872, compared to budgeted revenues of $22,844,500. Revenues for taxes, intergovernmental, charges for services, licenses and permits, investment income, and miscellaneous exceeded the budget by $36,526, $82,030, $305,229, $108,830, $116,838, and $268,574 respectively. Total actual revenues exceeded the budgeted revenues by $897,372. The General Fund actual expenditures for the year were $1,150,035 less than budgeted ($22,144,465 actual compared to $23,294,500 budgeted). The General Fund's expenditures were lower than budget due to overall cost controlling measures. 24 ===== PDF PAGE 35 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) CAPITAL ASSETS The City’s investment in capital assets for its governmental and business type activities as of December 31, 2024 was $147,484,966 (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, land improvements, buildings and improvements, machinery and equipment and infrastructure. Capital Assets - Net of Depreciation Governmental Business-Type Activities Activities Totals 2024 2023 2024 2023 2024 2023 Land $ 20,218,128 20,218,128 28,040,111 28,040,111 48,258,239 48,258,239 Construction in Progress 1,027,809 376,982 1,825,656 1,614,110 2,853,465 1,991,092 Land Improvements 1,156,695 1,213,011 357,160 389,272 1,513,855 1,602,283 Buildings and Improvements 6,471,713 4,823,951 17,891,927 17,538,801 24,363,640 22,362,752 Machinery and Equipment 2,762,963 2,276,974 3,768,317 3,131,701 6,531,280 5,408,675 Infrastructure 21,260,857 21,211,369 42,703,630 43,999,343 63,964,487 65,210,712 Totals 52,898,165 50,120,415 94,586,801 94,713,338 147,484,966 144,833,753 This year's major additions included: Construction in Progress $ 1,826,938 Buildings and Improvements 2,121,528 Machinery and Equipment 1,895,519 Infrastructure 1,485,183 7,329,168 Additional information regarding the capital assets can be found in Note 3 of this report. DEBT ADMINISTRATION At year-end, the City had no outstanding debt compared to 693,461 the previous year, this is a decrease of 100.0 percent. Long-Term Debt Outstanding Governmental Business-Type Activities Activities Totals 2024 2023 2024 2023 2024 2023 IEPA Loans Payable $ — — — 693,461 — 693,461 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. Additional information on the City’s long-term debt can be found in Note 3 of this report. 25 ===== PDF PAGE 36 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2024 (Unaudited) ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The 2024 overall inflation rate for the United States was 2.9%, while the inflation rate in Illinois and the broader local area stood at 3.3%. This marks a 2.2% decrease from the 2022 inflation rate, but remains significantly higher than the average inflation rate of 1.55% observed in 2019 and 2020. The highest increases were seen in food and energy, shelter, other goods & services, and recreation. For the 2024 General Fund, the amount available for appropriation is $23,651,600, reflecting a 3.53% increase from the final 2023 budget appropriation of $22,844,500. The City has budgeted increases in property taxes (7.75%) and home-rule sales tax (0.5%). The latter increase is specifically allocated to fund principal and interest payments on debt issued for the resurfacing of the City’s industrial streets. The City’s major initiatives for the 2025 budget include a renewed focus on street resurfacing and the final environmental remediation of the West Washington Street Redevelopment Area. The City remains steadfast in its commitment to fiscal accountability and will continue exploring innovative strategies to maintain financial responsibility. When developing the fiscal year 2025 budget, elected and appointed officials considered several factors, including the economic environment. As of December 2024, DuPage County’s unemployment rate was 4.3%, while the statewide unemployment rate was 5.2%, and the national unemployment rate was 4.1%. West Chicago’s citywide unemployment rate was 4.8%, which typically peaks in the winter months due to the seasonal nature of jobs held by many of its workers. For the rest of the year, West Chicago consistently reports one of the lowest unemployment rates in DuPage County. Scheduled capital improvement projects will significantly impact the budget. However, increases in the Motor Fuel Tax Fund - approximately $6.1 million - will help offset these costs. Additionally, the City has secured grant funding from the State of Illinois, which will also help alleviate capital project expenses. 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 Finance Director, City of West Chicago, 475 Main Street, West Chicago, Illinois 60185. 26 ===== PDF PAGE 37 ===== [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 Fund 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. 27 ===== PDF PAGE 38 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position December 31, 2024 See Following Page 28 ===== PDF PAGE 39 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position December 31, 2024 Primary Government Governmental Business-Type Activities Activities Totals ASSETS Current Assets Cash and Investments $ 29,417,856 1,163,597 30,581,453 Receivables - Net of Allowances Taxes 5,010,878 1,805,433 6,816,311 Other 5,321,931 3,265 5,325,196 Due from Other Governments — 202,927 202,927 Internal Balances 571,874 (571,874) — Prepaids/Inventories 470,925 264,748 735,673 Total Current Assets 40,793,464 2,868,096 43,661,560 Noncurrent Assets Capital Assets Nondepreciable 21,245,937 29,865,767 51,111,704 Depreciable 83,627,795 116,522,723 200,150,518 Accumulated Depreciation (51,975,567) (51,801,689) (103,777,256) Total Noncurrent Assets 52,898,165 94,586,801 147,484,966 Total Assets 93,691,629 97,454,897 191,146,526 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 705,607 726,169 1,431,776 Deferred Items - Police Pension 6,385,138 — 6,385,138 Deferred Items - ARO 15,000 763,704 778,704 Total Deferred Outflows of Resources 7,105,745 1,489,873 8,595,618 Total Assets and Deferred Outflows of Resources 100,797,374 98,944,770 199,742,144 The notes to the financial statements are an integral part of this statement. 29 ===== PDF PAGE 40 ===== [Extraction: embedded PDF text] Primary Government Governmental Business-Type Activities Activities Totals LIABILITIES Current Liabilities Accounts Payable $ 1,899,587 1,058,117 2,957,704 Accrued Payroll 633,379 182,952 816,331 Deposits Payable 2,246,849 — 2,246,849 Other Payables 300,416 112,788 413,204 Current Portion of Long-Term Liabilities 610,684 135,230 745,914 Total Current Liabilities 5,690,915 1,489,087 7,180,002 Noncurrent Liabilities Compensated Absences Payable 1,571,018 142,650 1,713,668 Net Pension Liability - IMRF 1,556,661 1,602,022 3,158,683 Net Pension Liability - Police Pension 24,563,794 — 24,563,794 Total OPEB Liability - RBP 3,808,350 1,740,564 5,548,914 Asset Retirement Obligation 75,000 850,000 925,000 Total Noncurrent Liabilities 31,574,823 4,335,236 35,910,059 Total Liabilities 37,265,738 5,824,323 43,090,061 DEFERRED INFLOWS OF RESOURCES Property Taxes 5,011,166 — 5,011,166 Deferred Items - IMRF 60,734 62,505 123,239 Deferred Items - Police Pension 4,227,575 — 4,227,575 Total Deferred Inflows of Resources 9,299,475 62,505 9,361,980 Total Liabilities and Deferred Inflows of Resources 46,565,213 5,886,828 52,452,041 NET POSITION Net Investment in Capital Assets 51,819,765 94,586,801 146,406,566 Restricted Motor Fuel Tax 6,051,167 — 6,051,167 Public Safety 368,520 — 368,520 Property Taxes - TIF 533,260 — 533,260 Community Park Projects 6,353,474 — 6,353,474 Sewerage — 34,933 34,933 Unrestricted (Deficit) (10,894,025) (1,563,792) (12,457,817) Total Net Position 54,232,161 93,057,942 147,290,103 The notes to the financial statements are an integral part of this statement. 30 ===== PDF PAGE 41 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2024 Program Revenues Charges Operating Capital for Grants/ Grants/ Expenses Services Contributions Contributions Governmental Activities General Government $ 9,574,640 2,520,927 — — Public Safety 12,341,985 2,327,477 147,830 — Culture and Recreation 47,062 58,048 — — Streets and Highways 7,681,942 1,078,500 2,048,777 — Interest on Long-Term Debt 15,000 — — — Total Governmental Activities 29,660,629 5,984,952 2,196,607 — Business-Type Activities Waterworks 8,073,739 8,254,672 — 750,000 Sewerage 7,222,278 7,069,668 — — Commuter Parking 102,893 71,707 — — Total Business-Type Activities 15,398,910 15,396,047 — 750,000 Total Primary Government 45,059,539 21,380,999 2,196,607 750,000 General Revenues Taxes Property Taxes Telecommunications Taxes Utility Taxes Amusement Taxes Cannabis Taxes Intergovernmental - Unrestricted Sales and Use Taxes Income Tax Replacement Taxes Video Gaming Taxes ARPA Investment Income Miscellaneous Change in Net Position Net Position - Beginning Net Position - Ending The notes to the financial statements are an integral part of this statement. 31 ===== PDF PAGE 42 ===== [Extraction: embedded PDF text] Net (Expenses)/Revenues Primary Government Governmental Business-Type Activities Activities Totals (7,053,713) — (7,053,713) (9,866,678) — (9,866,678) 10,986 — 10,986 (4,554,665) — (4,554,665) (15,000) — (15,000) (21,479,070) — (21,479,070) — 930,933 930,933 — (152,610) (152,610) — (31,186) (31,186) — 747,137 747,137 (21,479,070) 747,137 (20,731,933) 4,738,185 10,107 4,748,292 510,600 — 510,600 2,125,655 — 2,125,655 164,638 — 164,638 40,894 — 40,894 12,087,235 — 12,087,235 4,349,779 — 4,349,779 301,030 — 301,030 96,439 — 96,439 — 3,649,246 3,649,246 801,731 182,450 984,181 699,679 284,970 984,649 25,915,865 4,126,773 30,042,638 4,436,795 4,873,910 9,310,705 49,795,366 88,184,032 137,979,398 54,232,161 93,057,942 147,290,103 The notes to the financial statements are an integral part of this statement. 32 ===== PDF PAGE 43 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Balance Sheet - Governmental Funds December 31, 2024 Special Community General Park ASSETS Cash and Investments $ 7,634,335 6,353,474 Receivables - Net of Allowances Property Taxes 4,908,048 — Other 3,513,398 — Due from Other Funds 571,874 — Prepaids/Inventories 464,608 — Total Assets 17,092,263 6,353,474 LIABILITIES Accounts Payable 655,058 — Accrued Payroll 614,111 — Deposits Payable 2,246,849 — Other Payables — — Total Liabilities 3,516,018 — DEFERRED INFLOWS OF RESOURCES Property Taxes 4,908,048 — Total Liabilities and Deferred Inflows of Resources 8,424,066 — FUND BALANCES Nonspendable 464,608 — Restricted 368,520 6,353,474 Assigned — — Unassigned 7,835,069 — Total Fund Balances 8,668,197 6,353,474 Total Liabilities, Deferred Inflows of Resources and Fund Balances 17,092,263 6,353,474 The notes to the financial statements are an integral part of this statement. 33 ===== PDF PAGE 44 ===== [Extraction: embedded PDF text] Revenue Capital Motor Projects Downtown Fuel Capital TIF #2 Tax Improvement Nonmajor Totals 72,120 6,111,113 4,909,293 4,337,521 29,417,856 — — — 102,830 5,010,878 — 96,183 1,712,350 — 5,321,931 — — — — 571,874 — — 6,317 — 470,925 72,120 6,207,296 6,627,960 4,440,351 40,793,464 10,000 156,129 386,184 692,216 1,899,587 — — 19,268 — 633,379 — — — — 2,246,849 — — 300,416 — 300,416 10,000 156,129 705,868 692,216 5,080,231 — — 288 102,830 5,011,166 10,000 156,129 706,156 795,046 10,091,397 — — 6,317 — 470,925 62,120 6,051,167 — 471,140 13,306,421 — — 5,915,487 3,174,165 9,089,652 — — — — 7,835,069 62,120 6,051,167 5,921,804 3,645,305 30,702,067 72,120 6,207,296 6,627,960 4,440,351 40,793,464 The notes to the financial statements are an integral part of this statement. 34 ===== PDF PAGE 45 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Reconciliation of the Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities December 31, 2024 Total Governmental Fund Balances $ 30,702,067 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. 52,898,165 Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF 644,873 Deferred Items - Police Pension 2,157,563 Deferred Items - ARO 15,000 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated Absences Payable (1,963,773) Net Pension Liability - IMRF (1,556,661) Net Pension Liability - Police Pension (24,563,794) Total OPEB Liability - RBP (4,026,279) Asset Retirement Obligation (75,000) Net Position of Governmental Activities 54,232,161 The notes to the financial statements are an integral part of this statement. 35 ===== PDF PAGE 46 ===== [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, 2024 See Following Page 36 ===== PDF PAGE 47 ===== [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, 2024 Special Community General Park Revenues Taxes $ 6,689,026 — Intergovernmental 11,214,030 96,439 Charges for Services 2,603,729 58,048 Licenses and Permits 824,830 — Fines and Forfeitures 1,419,845 — Investment Income 316,838 64,544 Miscellaneous 673,574 — Total Revenues 23,741,872 219,031 Expenditures General Government 8,588,788 — Public Safety 12,993,277 — Capital Outlay 562,400 — Total Expenditures 22,144,465 — Excess (Deficiency) of Revenues Over (Under) Expenditures 1,597,407 219,031 Other Financing Sources (Uses) Disposal of Capital Assets — — Transfers In — 1,450,000 Transfers Out (1,450,000) — (1,450,000) 1,450,000 Net Change in Fund Balances 147,407 1,669,031 Fund Balances - Beginning 8,520,790 4,684,443 Fund Balances - Ending 8,668,197 6,353,474 The notes to the financial statements are an integral part of this statement. 37 ===== PDF PAGE 48 ===== [Extraction: embedded PDF text] Revenue Capital Motor Projects Downtown Fuel Capital TIF #2 Tax Improvements Nonmajor Totals 49,849 — 745,191 95,906 7,579,972 — 1,502,570 6,218,051 — 19,031,090 — — — 1,078,500 3,740,277 — — — — 824,830 — — — — 1,419,845 823 169,785 137,177 112,564 801,731 — — 26,036 69 699,679 50,672 1,672,355 7,126,455 1,287,039 34,097,424 — 169,910 — — 8,758,698 — — — — 12,993,277 16,696 3,328,954 5,537,419 1,230,131 10,675,600 16,696 3,498,864 5,537,419 1,230,131 32,427,575 33,976 (1,826,509) 1,589,036 56,908 1,669,849 — — — 71,357 71,357 — — — — 1,450,000 — — — — (1,450,000) — — — 71,357 71,357 33,976 (1,826,509) 1,589,036 128,265 1,741,206 28,144 7,877,676 4,332,768 3,517,040 28,960,861 62,120 6,051,167 5,921,804 3,645,305 30,702,067 The notes to the financial statements are an integral part of this statement. 38 ===== PDF PAGE 49 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities - Governmental Activities For the Fiscal Year Ended December 31, 2024 Net Change in Fund Balances - Total Governmental Funds $ 1,741,206 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 4,824,394 Depreciation Expense (2,046,644) Disposals - Cost (576,222) Disposals - Accumulated Depreciation 576,222 The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF (1,088,068) Change in Deferred Items - Police Pension (2,405,363) 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 in Compensated Absences Payable (99,406) Change in Net Pension Liability - IMRF 326,638 Change in Net Pension Liability - Police Pension 3,140,980 Change in Total OPEB Liability - RBP 58,058 Amortization of Asset Retirement Obligation (15,000) Changes in Net Position of Governmental Activities 4,436,795 The notes to the financial statements are an integral part of this statement. 39 ===== PDF PAGE 50 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2024 See Following Page 40 ===== PDF PAGE 51 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2024 Nonmajor Commuter Waterworks Sewerage Parking Totals ASSETS Current Assets Cash and Investments $ 777,323 232,622 153,652 1,163,597 Receivables - Net of Allowances Property Taxes — 10,050 — 10,050 Accounts 928,085 867,298 — 1,795,383 Other — — 3,265 3,265 Due from Other Governments 202,927 — — 202,927 Prepaids 148,374 116,374 — 264,748 Total Current Assets 2,056,709 1,226,344 156,917 3,439,970 Noncurrent Assets Capital Assets Nondepreciable 28,087,525 1,729,992 48,250 29,865,767 Depreciable 92,410,717 23,251,629 860,377 116,522,723 Accumulated Depreciation (41,100,598) (10,121,098) (579,993) (51,801,689) Total Noncurrent Assets 79,397,644 14,860,523 328,634 94,586,801 Total Assets 81,454,353 16,086,867 485,551 98,026,771 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 409,817 311,265 5,087 726,169 Deferred Items - ARO 763,704 — — 763,704 Total Deferred Outflows of Resources 1,173,521 311,265 5,087 1,489,873 Total Assets and Deferred Outflows of Resources 82,627,874 16,398,132 490,638 99,516,644 The notes to the financial statements are an integral part of this statement. 41 ===== PDF PAGE 52 ===== [Extraction: embedded PDF text] Nonmajor Commuter Waterworks Sewerage Parking Totals LIABILITIES Current Liabilities Accounts Payable $ 404,940 647,915 5,262 1,058,117 Accrued Payroll 104,026 77,585 1,341 182,952 Due to Other Funds 25,000 546,874 — 571,874 Other Payables — 94,623 18,165 112,788 Current Portion of Long-Term Debt 84,179 51,051 — 135,230 Total Current Liabilities 618,145 1,418,048 24,768 2,060,961 Long-Term Liabilities Compensated Absences Payable 137,582 5,068 — 142,650 Net Pension Liability - IMRF 904,108 686,691 11,223 1,602,022 Total OPEB Liability - RBP 870,282 870,282 — 1,740,564 Asset Retirement Obligation 850,000 — — 850,000 Total Long-Term Liabilities 2,761,972 1,562,041 11,223 4,335,236 Total Liabilities 3,380,117 2,980,089 35,991 6,396,197 DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF 35,275 26,792 438 62,505 Total Liabilities and Deferred Inflows of Resources 3,415,392 3,006,881 36,429 6,458,702 NET POSITION Investment in Capital Assets 79,397,644 14,860,523 328,634 94,586,801 Restricted - Sewerage — 34,933 — 34,933 Unrestricted (Deficit) (185,162) (1,504,205) 125,575 (1,563,792) Total Net Position 79,212,482 13,391,251 454,209 93,057,942 The notes to the financial statements are an integral part of this statement. 42 ===== PDF PAGE 53 ===== [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, 2024 Nonmajor Commuter Waterworks Sewerage Parking Totals Operating Revenues Charges for Services $ 8,251,972 7,058,686 71,707 15,382,365 Operating Expenses Operations 5,867,995 6,791,391 79,186 12,738,572 Depreciation and Amortization 2,198,291 430,887 23,707 2,652,885 Total Operating Expenses 8,066,286 7,222,278 102,893 15,391,457 Operating Income (Loss) 185,686 (163,592) (31,186) (9,092) Nonoperating Revenues (Expenses) Connection Fees 2,700 10,982 — 13,682 Property Taxes — 10,107 — 10,107 Investment Income 112,932 66,255 3,263 182,450 ARPA 3,649,246 — — 3,649,246 Other Income 205,936 78,894 140 284,970 Interest Expense (7,453) — — (7,453) 3,963,361 166,238 3,403 4,133,002 Income (Loss) Before Capital Grants and Transfers 4,149,047 2,646 (27,783) 4,123,910 Capital Grants 750,000 — — 750,000 Transfers In 1,850,000 — — 1,850,000 Transfers Out — (1,850,000) — (1,850,000) 2,600,000 (1,850,000) — 750,000 Change in Net Position 6,749,047 (1,847,354) (27,783) 4,873,910 Net Position - Beginning 72,463,435 15,238,605 481,992 88,184,032 Net Position - Ending 79,212,482 13,391,251 454,209 93,057,942 The notes to the financial statements are an integral part of this statement. 43 ===== PDF PAGE 54 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended December 31, 2024 Commuter Waterworks Sewerage Parking Totals Cash Flows from Operating Activities Receipts from Customers and Users $ 12,461,017 9,471,052 75,297 22,007,366 Payments to Employees (1,961,352) (2,567,589) — (4,528,941) Payments to Suppliers (10,414,103) (3,990,645) (154,109) (14,558,857) 85,562 2,912,818 (78,812) 2,919,568 Cash Flows from Noncapital Financing Activities Property Taxes — 10,107 — 10,107 Transfers In 1,850,000 — — 1,850,000 Transfers Out — (1,850,000) — (1,850,000) 1,850,000 (1,839,893) — 10,107 Cash Flows from Capital and Related Financing Activities Purchase of Capital Assets (1,320,257) (1,184,517) — (2,504,774) Capital Grants 750,000 — — 750,000 Debt Retirement (693,461) — — (693,461) Interest Paid on Debt (7,453) — — (7,453) (1,271,171) (1,184,517) — (2,455,688) Cash Flows from Investing Activities Investment Income 112,932 66,255 3,263 182,450 Net Change in Cash and Cash Equivalents 777,323 (45,337) (75,549) 656,437 Cash and Cash Equivalents - Beginning — 277,959 229,201 507,160 Cash and Cash Equivalents - Ending 777,323 232,622 153,652 1,163,597 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) 185,686 (163,592) (31,186) (9,092) Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization 2,198,291 430,887 23,707 2,652,885 Other Income 3,857,882 89,876 140 3,947,898 (Increase) Decrease in Current Assets 351,163 2,322,490 3,450 2,677,103 Increase (Decrease) in Current Liabilities (6,507,460) 233,157 (74,923) (6,349,226) Net Cash Provided by Operating Activities 85,562 2,912,818 (78,812) 2,919,568 The notes to the financial statements are an integral part of this statement. 44 ===== PDF PAGE 55 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Fiduciary Net Position December 31, 2024 Pension Trust Police Pension ASSETS Cash and Cash Equivalents $ 1,413,297 Investments Illinois Police Officers' Pension Investment Fund 49,778,682 Prepaids 6,456 Total Assets 51,198,435 LIABILITIES Accounts Payable 3,556 NET POSITION Net Position Restricted for Pensions 51,194,879 The notes to the financial statements are an integral part of this statement. 45 ===== PDF PAGE 56 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2024 Pension Trust Police Pension Additions Contributions - Employer $ 3,428,000 Contributions - Plan Members 800,316 Total Contributions 4,228,316 Investment Income Interest Earned 27,920 Net Change in Fair Value 4,368,485 4,396,405 Less Investment Expenses (32,823) Net Investment Income 4,363,582 Total Additions 8,591,898 Deductions Administration 62,410 Benefits and Refunds 3,176,463 Total Deductions 3,238,873 Change in Fiduciary Net Position 5,353,025 Net Position - Beginning 45,841,854 Net Position - Ending 51,194,879 The notes to the financial statements are an integral part of this statement. 46 ===== PDF PAGE 57 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of West Chicago (the 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 is a municipal corporation governed by an elected mayor and fourteen-member Board of Aldermen. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is both legally and substantively separate from the government. Management has determined that there is one fiduciary component units that are required to be included in the financial statements of the City a pension trust fund and there are no discretely component units to include 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 are 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. 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 waterworks, sewerage and commuter parking services are classified as business-type activities. 47 ===== PDF PAGE 58 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Government-Wide Statements - Continued 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. 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. 48 ===== PDF PAGE 59 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued The various funds are reported by generic classification within the financial statements. The following fund types are used by the City: 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 three major and two nonmajor special revenue funds. The three major funds are the Community Park Fund (formerly the Public Benefit Fund), which is used to account for the accumulation of restricted funds from Kerr McGee to fund projects that meet the criteria established by the City Council and as detailed in the City Code, the Downtown TIF #2 Fund, which is used to account for the accumulation of funds from restricted incremental revenue generated within the Downtown TIF #2 area, and the Motor Fuel Tax Fund is used to account for motor fuel tax allocations from the State of Illinois and expenditures related to the City’s annual road rehabilitation and construction program. 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, a major fund, is used to account for natural gas use taxes and home rule sales taxes 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. 49 ===== PDF PAGE 60 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued BASIS OF PRESENTATION - Continued Fund Financial Statements - Continued Proprietary Funds 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 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. The Sewerage 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. 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 fund is presented in the fiduciary fund financial statements. 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, this fund is 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. 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. 50 ===== PDF PAGE 61 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING - Continued Measurement Focus - Continued 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. 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. 51 ===== PDF PAGE 62 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE/ NET POSITION 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. 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 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. 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. 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. 52 ===== PDF PAGE 63 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE/ NET POSITION - 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. Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives: Land Improvements 10 - 65 Years Buildings and Improvements 20 - 50 Years Machinery and Equipment 4 - 15 Years Infrastructure 15 - 65 Years Deferred Outflows/Inflows of Resources Deferred outflow/inflow of resources represents a consumption/acquisition of net assets 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's policy allows full time employees to earn a set amount of sick leave, varying amounts of personal days, and varying amounts of vacation pay for each year employed. Full time employees will have sick leave pay accrued at the rate of one day of sick pay for each full month of employment for a total of twelve days per year. New employees must have completed the six month probationary period to be eligible. There is no limit on the number of sick days an employee can earn. Full time employees shall be given eight hours off with straight-time pay each fiscal year and may earn additional eight hours off with straight-time pay for every fiscal quarter that such employee does not use sick time. Employees may accumulate up to forty hours of personal time per year. Eligible employees shall earn vacation on a monthly basis and may carry over up to a maximum of two times their annual leave rate from one fiscal year to the next. All employees classified and appointed with twenty or more years of service with the City shall be entitled to an extra day (eight hours) of vacation each year of full time employment, during the year before retirement, to be granted at a time or times approved by the department head. 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. 53 ===== PDF PAGE 64 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE/ NET POSITION - 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”. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 54 ===== PDF PAGE 65 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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 all funds except the Police Pension Fund. 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, there was one amendment. 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. 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. 55 ===== PDF PAGE 66 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued City Deposits and Investments. At year-end, the carrying amount of the City’s deposits for governmental and business- type activities totaled $12,984,799 and the bank balances totaled $13,192,394. Additionally, at year-end the City had $17,552,464 invested in the Illinois Funds and $44,190 invested in the Illinois Metropolitan Investment Fund, which are both measured at net asset value per share as determined by the pool. 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 AAAmmf by Fitch, in Illinois Metropolitan Investment Trust Convenience Fund which has no rating available, and in the Illinois Metropolitan Investment Trust 1-3 Year Fund that is rated AAAf-bf 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 entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance. 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 five 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). 56 ===== PDF PAGE 67 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund The Illinois Police Officers Pension Investment Fund (IPOPIF) is an investment trust fund responsible for the consolidation and fiduciary management of the pension assets of Illinois suburban and downstate police pension funds. IPOPIF was created by Public Act 101-0610, and codified within the Illinois Pension Code, becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the participating pension funds. Participation in IPOPIF by Illinois suburban and downstate police pension funds is mandatory. Investments of the Fund are combined in a commingled external investment pool and held by IPOPIF. A schedule of investment expenses is included in IPOPIF‘s annual comprehensive financial report. For additional information on IPOPIF’s investments, please refer to their annual comprehensive financial report, which can be obtained from IFPIF at 456 Fulton Street, Suite 402 Peoria, Illinois 61602 or at www.ipopif.org. Deposits. The Fund retains all its available cash with one financial institution. Available cash is determined to be that amount which is required for the current expenditures of the Fund. The excess of available cash is required to be transferred to IPOPIF for purposes of the long-term investment for the Fund. At year-end, the carrying amount of the Fund’s cash on hand totaled $1,413,297 and the bank balances totaled $1,416,987. Investments. At year-end the Fund has $49,778,682 invested in IPOPIF. The pooled investments consist of the investments as noted in the target allocation table available at www.ipopif.org. Investments in IPOPIF are valued at IPOPIF’s share price, which is the price the investment could be sold. There are no unfunded commitments at year-end. The fund may redeem shares with a seven calendar day notice. IPOPIF may, at its sole discretion and based on circumstances, process redemption requests with fewer than a seven calendar day notice. Regular redemptions of the same amount on a particular day of the month may be arranged with IPOPIF. Investment Policy. IPOPIF’s current investment policy was adopted by the Board of Trustees on December 17, 2021. IPOPIF is authorized to invest in all investments allowed by Illinois Compiled Statutes (ILCS). The IPOPIF shall not be subject to any of the limitations applicable to investments of pension fund assets currently held by the transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 3 of the Illinois Pension Code. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Fund’s deposits may not be returned to it. The 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 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. At year-end, the entire carrying amount of the bank balances deposits is covered by the federal depository or equivalent insurance. Rate of Return. For the year ended December 31, 2024, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 9.59%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 57 ===== PDF PAGE 68 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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, 2024, the City rebated a total of $125,647 in taxes under this agreement. PROPERTY TAXES Property taxes for 2023 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 the County and are payable in two installments, on or about June and September. The County collect such taxes and remit them periodically. INTERFUND BALANCES Interfund balances result from the time lag between when transactions are recorded in the accounting system and payments between funds are made. The composition of interfund balances as of the date of this report, is as follows: Receivable Fund Payable Fund Amount General Waterworks $ 25,000 General Sewerage 546,874 571,874 INTERFUND TRANSFERS Interfund transfers for the fiscal year consisted of the following: Transfer In Transfer Out Amount Community Park General $ 1,450,000 (2) Waterworks Sewerage 1,850,000 (1) 3,300,000 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 58 ===== PDF PAGE 69 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS Governmental Activities Governmental capital asset activity for the fiscal year was as follows: Beginning Ending Balances Increases Decreases Balances Nondepreciable Capital Assets Land $ 20,218,128 — — 20,218,128 Construction in Progress 376,982 650,827 — 1,027,809 20,595,110 650,827 — 21,245,937 Depreciable Land Improvements 2,040,245 — — 2,040,245 Buildings and Improvements 7,327,854 1,808,531 — 9,136,385 Machinery and Equipment 7,580,091 979,342 30,218 8,529,215 Infrastructure 63,082,260 1,385,694 546,004 63,921,950 80,030,450 4,173,567 576,222 83,627,795 Less Accumulated Depreciation Land Improvements 827,234 56,316 — 883,550 Buildings and Improvements 2,503,903 160,769 — 2,664,672 Machinery and Equipment 5,303,117 493,353 30,218 5,766,252 Infrastructure 41,870,891 1,336,206 546,004 42,661,093 50,505,145 2,046,644 576,222 51,975,567 Total Net Depreciable Capital Assets 29,525,305 2,126,923 — 31,652,228 Total Net Capital Assets 50,120,415 2,777,750 — 52,898,165 Depreciation expense was charged to governmental activities as follows: General Government $ 84,521 Public Safety 84,325 Culture and Recreation 47,062 Streets and Highways 1,830,736 2,046,644 59 ===== PDF PAGE 70 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued CAPITAL ASSETS - Continued Business-Type Activities Business-type capital asset activity for the fiscal year was as follows: Beginning Ending Balances Increases Decreases Balances Nondepreciable Capital Assets Land $ 28,040,111 — — 28,040,111 Construction in Progress 1,614,110 1,176,111 964,565 1,825,656 29,654,221 1,176,111 964,565 29,865,767 Depreciable Capital Assets Land Improvements 1,253,338 — — 1,253,338 Buildings and Improvements 30,309,822 1,277,562 32,905 31,554,479 Machinery and Equipment 9,540,168 916,177 115,142 10,341,203 Infrastructure 73,274,214 99,489 — 73,373,703 114,377,542 2,293,228 148,047 116,522,723 Less Accumulated Depreciation Land Improvements 864,066 32,112 — 896,178 Buildings and Improvements 12,771,021 924,436 32,905 13,662,552 Machinery and Equipment 6,408,467 279,561 115,142 6,572,886 Infrastructure 29,274,871 1,395,202 — 30,670,073 49,318,425 2,631,311 148,047 51,801,689 Total Net Depreciable Capital Assets 65,059,117 (338,083) — 64,721,034 Total Net Capital Assets 94,713,338 838,028 964,565 94,586,801 Depreciation expense was charged to business-type activities as follows: Waterworks $ 2,176,717 Sewerage 430,887 Commuter Parking 23,707 2,631,311 60 ===== PDF PAGE 71 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT IEPA Loan Payable The City has entered into an agreement with the IEPA to provide low interest financing for waterworks improvements. The IEPA loan payable 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 of 2.57% through September 9, 2024. Waterworks $ 693,461 — 693,461 — Asset Retirement Obligation The City has recognized an asset retirement obligation (ARO) and related deferred outflow of resources in connection with its obligation to seal and abandon various water wells and demolition of the City’s underground storage tanks at the end of their estimated useful lives in accordance with federal, state, and/or local requirements. The ARO was measured using actual historical costs for similar abandonments, adjusted for inflation through the end of the year. The estimated remaining useful lives of the water wells are 21 - 46 years and the storage tank is 1 year. 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. 61 ===== PDF PAGE 72 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM DEBT Long-Term Liabilities Activity Changes in long-term liabilities during the fiscal fiscal year were as follows: Amounts Beginning Ending Within Type of Debt Balances Additions Deductions Balances One Year Governmental Activities Compensated Absences $ 1,864,367 198,812 99,406 1,963,773 392,755 Net Pension Liability - IMRF 1,883,299 — 326,638 1,556,661 — Net Pension Liability - Police Pension 27,704,774 — 3,140,980 24,563,794 — Total OPEB Liability - RBP 4,084,337 — 58,058 4,026,279 217,929 Asset Retirement Obligation 75,000 — — 75,000 — 35,611,777 198,812 3,625,082 32,185,507 610,684 Business-Type Activities Compensated Absences $ 155,224 23,088 — 178,312 35,662 Net Pension Liability - IMRF 1,739,678 — 137,656 1,602,022 — Total OPEB Liability - RBP 1,829,801 10,331 — 1,840,132 99,568 IEPA Loans Payable 693,461 — 693,461 — — Asset Retirement Obligation 850,000 — — 850,000 — 5,268,164 33,419 831,117 4,470,466 135,230 For governmental activities, the General Fund makes payments on the net pension liabilities, the total OPEB liability, the compensated absences, and the asset retirement obligation. For business-type activities, the Waterworks Fund makes payments on the IEPA loan payable. The compensated absences, the net pension liability, and the total OPEB liability are liquidated from the Waterworks and Sewerage Funds. The asset retirement obligation is being liquidated by the Waterworks Fund. 62 ===== PDF PAGE 73 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued FUND BALANCE CLASSIFICATIONS The following is a schedule of fund balance classifications for the governmental funds as of the date of this report: Special Revenue Capital Motor Projects Community Downtown Fuel Capital General Park TIF #2 Tax Improvement Nonmajor Totals Fund Balances Nonspendable Prepaids/Inventories $ 464,608 — — — 6,317 — 470,925 Restricted Motor Fuel Tax — — — 6,051,167 — — 6,051,167 Public Safety 368,520 — — — — — 368,520 Property Taxes - TIF — — 62,120 — — 471,140 533,260 Community Park Projects — 6,353,474 — — — — 6,353,474 368,520 6,353,474 6,051,167 — 471,140 13,306,421 Assigned Capital Projects — — — — 5,915,487 3,174,165 9,089,652 Unassigned 7,835,069 — — — — — 7,835,069 Total Fund Balances 8,668,197 6,353,474 — 6,051,167 5,915,487 3,645,305 30,702,067 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. 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. 63 ===== PDF PAGE 74 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued FUND BALANCE CLASSIFICATIONS - Continued 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.of decision-making authority is the City Council, who is authorized to assign amounts to a specific purpose. 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. 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%. NET POSITION CLASSIFICATIONS Net investment in capital assets was comprised of the following as of December 31, 2024: Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 52,898,165 Less Capital Related Debt: Accounts Payable (1,078,400) Net Investment in Capital Assets 51,819,765 Business-Type Activities Capital Assets - Net of Accumulated Depreciation $ 94,586,801 Less Capital Related Debt: None — Net Investment in Capital Assets 94,586,801 64 ===== PDF PAGE 75 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 4 - OTHER INFORMATION JOINT AGREEMENT The West Chicago/Winfield Wastewater Authority (the Authority) was created and established by an Intergovernmental Agreement dated April 19, 2018, between the City of West Chicago, Illinois and the Village of Winfield, Illinois for the purpose of jointly treating and processing wastewater. In accordance with the Intergovernmental Agreement dated April 19, 2018, the City of West Chicago is designated as the Operating Agency and has the day-to-day responsibilities of operations and maintenance of the Treatment Plant. The City of West Chicago is reimbursed one-eighth of the cost of salary and benefits paid to its Director of Public Works and his Administrative Assistant. A complete separate financial statement for the Authority can be requested from the Operating Agency at 475 Main Street, West Chicago, Illinois, 60185. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction to assets; errors and omissions; injuries to employees; and natural disasters. The City participates in the Illinois Municipal League (IML), which is an organization of municipalities and special cities throughout the sate of Illinois, which have formed an association under the Illinois Intergovernmental Cooperation’s Stature to pool its risk management needs. The City pays annual premiums to IML for its workers’ compensation, general liability, property coverage and other coverage deemed necessary by the City. The City assumes the first $500 for each occurrence (except of losses as a result of flood or earthquake, for which the City assumes the first $25,000), and IML has a mix of self-insurance and commercial insurance at various amounts above that level. The City appoints one delegate, along with an alternate delegate, to represent the City in voting delegates to the Board of Directors. The City does not exercise any control over the activities of IML beyond its power to vote delegates to the Board of Directors. The City, along with IML’s other members, has a contractual obligation to fund any deficit of IML attributable to a membership year during which it was a member. Supplemental contributions may be required to fund these deficits. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three fiscal years. 65 ===== PDF PAGE 76 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 4 - OTHER INFORMATION - Continued CONTINGENT LIABILITIES Litigation From time to time, the City is party to various pending claims and legal proceedings with respect to employment, civil rights, property taxes and other matters. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the City attorney that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the City's financial position or results of operations. 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 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 issues 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 benefits, 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 amounts recognized for the pension plans are: Pension Net Pension Deferred Deferred Expense Liability Outflows Inflows IMRF $ 2,110,753 3,158,683 1,431,776 123,239 Police Pension 2,692,383 24,563,794 6,385,138 4,227,575 4,803,136 27,722,477 7,816,914 4,350,814 66 ===== PDF PAGE 77 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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. 67 ===== PDF PAGE 78 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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, 2024, the measurement date,the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 126 Inactive Plan Members Entitled to but not yet Receiving Benefits 56 Active Plan Members 75 Total 257 Contributions. As set by statute, the City’s Regular Plan Members are required to contribute 4.50% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. For the fiscal year-ended December 31, 2024, the City’s contribution was 8.16% of covered payroll. Net Pension Liability. The City’s net pension liability was measured as of December 31, 2024. 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 were determined by an actuarial valuation performed, as of December 31, 2024, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.25% Salary Increases 2.85% to 13.75% Cost of Living Adjustments 2.75% Inflation 2.25% 68 ===== PDF PAGE 79 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 108.0%) and Female (adjusted 106.4%) tables, and future mortality improvements projected using scale MP-2021. For disabled retirees, the Pub-2010, Amount-Weighted, below- median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2021. For active members, the Pub-2010, Amount-Weighted, below- median income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2021. 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 24.50% 5.20% Domestic Equities 34.50% 4.35% International Equities 18.00% 5.40% Real Estate 10.50% 6.40% Blended 11.50% 4.85% - 6.25% Cash and Cash Equivalents 1.00% 3.60% Discount Rate The discount rate used to measure the total pension liability was 7.25%, the same as the 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 project 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. 69 ===== PDF PAGE 80 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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 net 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 $ 52,287,328 3,158,683 42,516,214 Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) Balances at December 31, 2023 $ 45,981,714 42,358,737 3,622,977 Changes for the Year: Service Cost 599,401 — 599,401 Interest on the Total Pension Liability 3,252,554 — 3,252,554 Difference Between Expected and Actual Experience of the Total Pension Liability (154,947) — (154,947) Changes of Assumptions — — — Contributions - Employer — 549,857 (549,857) Contributions - Employees — 302,707 (302,707) Net Investment Income — 4,290,059 (4,290,059) Benefit Payments, Including Refunds of Employee Contributions (2,837,215) (2,837,215) — Other (Net Transfer) — (981,321) 981,321 Net Changes 859,793 1,324,087 (464,294) Balances at December 31, 2024 46,841,507 43,682,824 3,158,683 70 ===== PDF PAGE 81 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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 fiscal year ended December 31, 2024, the City recognized pension expense of $2,110,753. At December 31, 2024, the City reported deferred outflows or 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 $ 465,259 (107,821) 357,438 Change in Assumptions — (15,418) (15,418) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 966,517 — 966,517 Total Deferred Amounts Related to IMRF 1,431,776 (123,239) 1,308,537 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 2025 $ 809,271 2026 1,372,472 2027 (607,891) 2028 (265,315) 2029 — Thereafter — Totals 1,308,537 71 ===== PDF PAGE 82 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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 employees. Plan Membership. At December 31, 2024, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits 41 Inactive Plan Members Entitled to but not yet Receiving Benefits 15 Active Plan Members 47 Total 103 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. 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 48 consecutive months of service within the last 60 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 or ½ of the change in the Consumer Price Index for the proceeding calendar year. 72 ===== PDF PAGE 83 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Plan Descriptions - Continued 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 fiscal year-ended December 31, 2024, the City’s contribution was 64.83% of covered payroll. Concentrations. At year-end, the Pension Fund does not have any investments over 5 percent of net plan position available for retirement 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). Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of December 31, 2024, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 6.50% Salary Increases 3.50% - 8.25% Cost of Living Adjustments 2.50% Inflation 2.50% Mortality rates were based on the PubS-2010(A) Study Adjusted for Plan Status, Collar, and Illinois Public Pension Data, as Appropriate. Discount Rate The discount rate used to measure the total pension liability was 6.50%, the same as the 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. 73 ===== PDF PAGE 84 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 4 - OTHER INFORMATION - Continued EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued Police Pension Plan - Continued Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the net 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 (5.50%) (6.50%) (7.50%) Net Pension Liability $ 35,689,457 24,563,794 15,527,417 Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) Balances at December 31, 2023 $ 73,546,628 45,841,854 27,704,774 Changes for the Year: Service Cost 1,386,139 — 1,386,139 Interest on the Total Pension Liability 4,550,256 — 4,550,256 Changes of Benefit Terms 742,511 — 742,511 Difference Between Expected and Actual Experience of the Total Pension Liability (1,936,179) — (1,936,179) Changes of Assumptions 645,781 — 645,781 Contributions - Employer — 3,428,000 (3,428,000) Contributions - Employees — 800,316 (800,316) Net Investment Income — 4,363,582 (4,363,582) Benefit Payments, Including Refunds of Employee Contributions (3,176,463) (3,176,463) — Other (Net Transfer) — (62,410) 62,410 Net Changes 2,212,045 5,353,025 (3,140,980) Balances at December 31, 2024 75,758,673 51,194,879 24,563,794 74 ===== PDF PAGE 85 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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 fiscal year ended December 31, 2024, the City recognized pension expense of $2,692,383. At December 31, 2024, 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 $ 3,538,894 (2,213,806) 1,325,088 Change in Assumptions 2,053,820 (2,013,769) 40,051 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 792,424 — 792,424 Total Deferred Amounts Related to Police Pension 6,385,138 (4,227,575) 2,157,563 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 2025 $ 479,673 2026 1,825,181 2027 (125,948) 2028 193,725 2029 (215,068) Thereafter — Total 2,157,563 75 ===== PDF PAGE 86 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 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 GASB 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, 2024, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 22 Inactive Plan Members Entitled to but not yet Receiving Benefits — Active Plan Members 62 Total 84 Total OPEB Liability The City’s total OPEB liability was measured as of December 31, 2024, and was determined by an actuarial valuation as of December 31, 2023. Actuarial Assumptions and Other Inputs. The total OPEB liability in the December 31, 2023 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.25% Salary Increases 3.00% Discount Rate 4.08% Healthcare Cost Trend Rates 7.00% - 7.30% for 2024, Decreasing to an Ultimate Rate of 5.00% for 2033 and Later Years Retirees' Share of Benefit-Related Costs 100% of Projected Health Insurance Premiums for Retirees 76 ===== PDF PAGE 87 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 4 - OTHER INFORMATION - Continued OTHER POST-EMPLOYMENT BENEFITS - Continued Total OPEB Liability - Continued Actuarial Assumptions and Other Inputs - Continued. The discount rate was based on combination of the Expected Long-Term Rate of Return on Plan Assets and the Municipal Bond Rate. Mortality rates were based on the PubG-2010(B) Improved Generationally using MP-2020 Improvement Rates, weighted per IMRF experience Study Report dated December 14, 2020; Age 83 for Males, Age 87 for Females. Change in the Total OPEB Liability Total OPEB Liability Balance at December 31, 2023 $ 5,914,138 Changes for the Year: Service Cost 231,987 Interest on the Total OPEB Liability 216,978 Changes of Benefit Terms — Difference Between Expected and Actual Experience — Changes of Assumptions or Other Inputs (179,195) Benefit Payments (317,497) Net Changes (47,727) Balance at December 31, 2024 5,866,411 77 ===== PDF PAGE 88 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2024 NOTE 4 - OTHER INFORMATION - Continued OTHER POST-EMPLOYMENT BENEFITS - Continued Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The discount rate used to measure the total pension liability was 4.08%, while the prior valuation used 3.77%. The following presents the total OPEB liability, calculated using the discount rate, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher: Current 1% Decrease Discount Rate 1% Increase (3.08%) (4.08%) (5.08%) Total OPEB Liability $ 6,496,078 5,866,411 5,330,979 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability, calculated using a variable 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 $ 5,252,152 5,866,411 6,600,899 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended December 31, 2024, the City recognized OPEB expense of $269,770. 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. 78 ===== PDF PAGE 89 ===== [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 Employer Contributions - Last Ten Fiscal Years Illinois Municipal Retirement Fund Police Pension Fund • Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Fiscal Years Illinois Municipal Retirement Fund Police Pension Fund • Schedule of Investment Return - Last Ten Fiscal Years Police Pension Fund • Schedule of Changes in the Employer's Total OPEB Liability Retiree Benefit Plan • Budgetary Comparison Schedules General Fund Community Park - Special Revenue Fund Downtown TIF #2 - Special Revenue Fund Motor Fuel Tax - Special Revenue Fund Notes to the Required Supplementary Information Budgetary Information - Budgets are adopted on a basis consistent with generally accepted accounting principles. 79 ===== PDF PAGE 90 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Illinois Municipal Retirement Fund Schedule of Employer Contributions - Last Ten Fiscal Years December 31, 2024 Contributions in Relation to Actuarially the Actuarially Contribution Covered Contributions as Fiscal Determined Determined Excess/ Employee a Percentage of Year Contribution Contribution (Deficiency) Payroll Covered 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% 2020 670,212 670,212 — 5,858,490 11.44% 2021 659,290 659,290 — 5,971,813 11.04% 2022 556,202 556,202 — 6,125,574 9.08% 2023 431,256 492,250 60,994 6,544,095 7.52% 2024 549,857 549,857 — 6,738,447 8.16% Notes to the Required Supplementary Information: Actuarial Cost Method Aggregate Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 19 Years Asset Valuation Method 5-Year Smoothed Fair Value Inflation 2.25% Salary Increases 2.75% to 13.75%, Including Inflation Investment Rate of Return 7.25% Retirement Age Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the 2020 valuation pursuant to an experience study of the period 2017-2019. Mortality For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP-2020. For disabled retirees, the Pub-2010, Amount-Weighted, below- median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020. For active members, the Pub-2010, Amount-Weighted, below- median income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020. 80 ===== PDF PAGE 91 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Schedule of Employer Contributions - Last Ten Fiscal Years December 31, 2024 Contributions in Relation to Actuarially the Actuarially Contribution Covered Contributions as Fiscal Determined Determined Excess/ Employee a Percentage of Year Contribution Contribution (Deficiency) Payroll Covered 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% 2020 2,662,434 2,662,500 66 4,382,854 60.75% 2021 2,997,288 2,997,288 — 4,354,351 68.83% 2022 3,085,827 3,085,827 — 4,592,835 67.19% 2023 2,808,865 3,064,900 256,035 4,903,171 62.51% 2024 3,235,053 3,428,000 192,947 5,287,785 64.83% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 13 Years Asset Valuation Method 5-Year Smoothed Fair Value Inflation 2.25% Salary Increases 3.25% - 8.00% Investment Rate of Return 6.50% Retirement Age See the Notes to the Financial Statements Mortality PubS-2010(A) Adjusted for Plan Status, Demographics, and Illinois Public Pension Data, as Described 81 ===== PDF PAGE 92 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Illinois Municipal Retirement Fund Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Fiscal Years December 31, 2024 See Following Page 82 ===== PDF PAGE 93 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Illinois Municipal Retirement Fund Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Fiscal Years December 31, 2024 12/31/2015 12/31/2016 12/31/2017 Total Pension Liability Service Cost $ 571,996 563,551 620,392 Interest 2,352,359 2,455,010 2,609,972 Differences Between Expected and Actual Experience (9,382) 616,330 (516,181) Change of Assumptions 80,218 (126,634) (1,103,990) Benefit Payments, Including Refunds of Member Contributions (1,512,334) (1,553,071) (1,650,895) Net Change in Total Pension Liability 1,482,857 1,955,186 (40,702) Total Pension Liability - Beginning 31,876,833 33,359,690 35,314,876 Total Pension Liability - Ending 33,359,690 35,314,876 35,274,174 Plan Fiduciary Net Position Contributions - Employer $ 673,208 760,973 725,095 Contributions - Members 230,043 254,980 262,899 Net Investment Income 140,645 1,966,231 5,355,309 Benefit Payments, Including Refunds of Member Contributions (1,512,334) (1,553,071) (1,650,895) Other (Net Transfer) 398,615 259,549 (416,512) Net Change in Plan Fiduciary Net Position (69,823) 1,688,662 4,275,896 Plan Net Position - Beginning 28,433,476 28,363,653 30,052,315 Plan Net Position - Ending 28,363,653 30,052,315 34,328,211 Employer's Net Pension Liability/(Asset) $ 4,996,037 5,262,561 945,963 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 85.02% 85.10% 97.32% Covered Payroll $ 5,107,796 5,666,218 5,722,922 Employer's Net Pension Liability/(Asset) as a Percentage of Covered Payroll 97.81% 92.88% 16.53% Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2015 through 2018 and 2020. Changes in assumptions related to the demographics were made in 2017 and 2023. 83 ===== PDF PAGE 94 ===== [Extraction: embedded PDF text] 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 566,525 602,034 588,612 537,927 564,842 540,973 599,401 2,599,095 2,692,802 2,775,712 2,874,428 2,983,718 3,135,023 3,252,554 89,045 (172,461) 408,035 425,475 1,223,702 786,186 (154,947) 1,066,640 — (276,821) — — (36,928) — (1,805,678) (1,897,435) (2,046,716) (2,170,482) (2,517,201) (2,829,512) (2,837,215) 2,515,627 1,224,940 1,448,822 1,667,348 2,255,061 1,595,742 859,793 35,274,174 37,789,801 39,014,741 40,463,563 42,130,911 44,385,972 45,981,714 37,789,801 39,014,741 40,463,563 42,130,911 44,385,972 45,981,714 46,841,507 748,485 554,570 670,212 659,288 556,202 492,250 549,857 271,408 265,485 263,633 268,732 275,652 294,485 302,707 (1,942,525) 6,121,775 5,300,760 7,083,627 (6,226,566) 4,446,793 4,290,059 (1,805,678) (1,897,435) (2,046,716) (2,170,482) (2,517,201) (2,829,512) (2,837,215) 478,710 (124,338) 326,833 2,673 (67,651) 577,057 (981,321) (2,249,600) 4,920,057 4,514,722 5,843,838 (7,979,564) 2,981,073 1,324,087 34,328,211 32,078,611 36,998,668 41,513,390 47,357,228 39,377,664 42,358,737 32,078,611 36,998,668 41,513,390 47,357,228 39,377,664 42,358,737 43,682,824 5,711,190 2,016,073 (1,049,827) (5,226,317) 5,008,308 3,622,977 3,158,683 84.89% 94.83% 102.59% 112.40% 88.72% 92.12% 93.26% 6,031,032 5,899,672 5,858,490 5,971,815 6,125,574 6,544,095 6,738,447 94.70% 34.17% (17.92%) (87.52%) 81.76% 55.36% 46.88% 84 ===== PDF PAGE 95 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Schedule of Changes in the Employer's Net Pension Liability - Last Ten Fiscal Years December 31, 2024 12/31/2015 12/31/2016 12/31/2017 Total Pension Liability Service Cost $ 1,339,124 1,346,476 1,426,187 Interest 2,354,602 3,142,264 3,240,378 Changes in Benefit Terms — — — Differences Between Expected and Actual Experience 3,296,819 (372,812) 324,349 Change of Assumptions 6,855,503 (631,278) (1,417,146) Benefit Payments, Including Refunds of Member Contributions (1,595,483) (1,696,065) (1,958,572) Pension Plan Administrative Expense — — — Net Change in Total Pension Liability 12,250,565 1,788,585 1,615,196 Total Pension Liability - Beginning 41,676,250 53,926,815 55,715,400 Total Pension Liability - Ending 53,926,815 55,715,400 57,330,596 Plan Fiduciary Net Position Contributions - Employer $ 1,800,000 2,174,000 2,358,000 Contributions - Members 416,324 427,412 430,974 Net Investment Income 1,079,639 1,820,171 3,115,545 Benefit Payments, Including Refunds of Member Contributions (1,595,483) (1,696,065) (1,958,572) Administrative Expenses (81,218) (71,463) (61,553) Net Change in Plan Fiduciary Net Position 1,619,262 2,654,055 3,884,394 Plan Net Position - Beginning 21,715,759 23,335,021 25,989,076 Plan Net Position - Ending 23,335,021 25,989,076 29,873,470 Employer's Net Pension Liability $ 30,591,794 29,726,324 27,457,126 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 43.27% 46.65% 52.11% Covered Payroll $ 4,092,955 4,279,402 4,429,181 Employer's Net Pension Liability as a Percentage of Covered Payroll 747.43% 694.64% 619.91% 85 ===== PDF PAGE 96 ===== [Extraction: embedded PDF text] 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 1,349,278 1,296,222 1,803,080 1,309,708 1,258,039 1,386,950 1,386,139 3,419,420 3,560,231 3,802,792 3,820,226 4,035,280 4,184,672 4,550,256 — 269,777 — — (28,523) — 742,511 (338,074) 375,254 (1,541,342) (1,107,534) 400,345 5,000,947 (1,936,179) (1,140,533) 7,382,782 (6,109,580) (3,000,207) — — 645,781 (1,995,003) (2,405,200) (2,214,956) (2,703,046) (2,730,396) (3,066,533) (3,176,463) — — (58,044) — — — — 1,295,088 10,479,066 (4,318,050) (1,680,853) 2,934,745 7,506,036 2,212,045 57,330,596 58,625,684 69,104,750 64,786,700 63,105,847 66,040,592 73,546,628 58,625,684 69,104,750 64,786,700 63,105,847 66,040,592 73,546,628 75,758,673 2,500,000 1,949,252 2,662,500 2,997,288 3,085,827 3,064,900 3,428,000 432,433 441,291 443,247 426,937 448,692 1,099,740 800,316 (1,163,991) 5,220,951 4,871,051 4,287,449 (6,685,198) 5,367,362 4,363,582 (1,995,003) (2,405,200) (2,214,956) (2,703,046) (2,730,396) (3,066,533) (3,176,463) (61,890) (61,544) (58,044) (61,973) (65,562) (57,200) (62,410) (288,451) 5,144,750 5,703,798 4,946,655 (5,946,637) 6,408,269 5,353,025 29,873,470 29,585,019 34,729,769 40,433,567 45,380,222 39,433,585 45,841,854 29,585,019 34,729,769 40,433,567 45,380,222 39,433,585 45,841,854 51,194,879 29,040,665 34,374,981 24,353,133 17,725,625 26,607,007 27,704,774 24,563,794 50.46% 50.26% 62.41% 71.91% 59.71% 62.33% 67.58% 4,352,534 4,452,989 4,382,854 4,354,351 4,592,835 4,903,171 5,287,785 667.21% 771.95% 555.65% 407.08% 579.32% 565.04% 464.54% 86 ===== PDF PAGE 97 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Schedule of Investment Returns - Last Ten Fiscal Years December 31, 2024 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% 2020 14.03% 2021 10.62% 2022 (19.47%) 2023 13.66% 2024 9.59% 87 ===== PDF PAGE 98 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Retiree Benefits Plan Schedule of Changes in the Employer's Total OPEB Liability December 31, 2024 See Following Page 88 ===== PDF PAGE 99 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Retiree Benefits Plan Schedule of Changes in the Employer's Total OPEB Liability December 31, 2024 12/31/2017 12/31/2018 Total OPEB Liability Service Cost $ 99,027 102,436 Interest 220,826 224,412 Changes in Benefit Terms — — Differences Between Expected and Actual Experience — — Change of Assumptions — (485,359) Benefit Payments (205,343) (226,720) Net Change in Total OPEB Liability 114,510 (385,231) Total OPEB Liability - Beginning 6,517,955 6,632,465 Total OPEB Liability - Ending 6,632,465 6,247,234 Employee-Covered Payroll $ 6,941,141 7,149,386 Total OPEB Liability as a Percentage of Employee-Covered Payroll 95.55% 87.38% Notes: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. Changes of Assumptions. Changes of assumptions and other inputs reflect the effects of changes in the discount rate from 2017 through 2024. 89 ===== PDF PAGE 100 ===== [Extraction: embedded PDF text] 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 46,336 93,208 115,236 158,254 160,040 231,987 251,531 184,368 169,318 141,801 210,292 216,978 — — (1,321,475) — — — (1,247,848) — 108,963 — (143,550) — 1,759,270 1,172,614 10,109 (1,330,339) 138,489 (179,195) (224,709) (206,118) (178,341) (192,274) (208,271) (317,497) 584,580 1,244,072 (1,096,190) (1,222,558) 157,000 (47,727) 6,247,234 6,831,814 8,075,886 6,979,696 5,757,138 5,914,138 6,831,814 8,075,886 6,979,696 5,757,138 5,914,138 5,866,411 7,406,846 7,629,051 7,654,620 6,600,875 6,353,972 11,982,894 92.24% 105.86% 91.18% 87.22% 93.08% 48.96% 90 ===== PDF PAGE 101 ===== [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, 2024 Original Final Budget Budget Actual Revenues Taxes $ 6,652,500 6,652,500 6,689,026 Intergovernmental 11,132,000 11,132,000 11,214,030 Charges for Services 2,298,500 2,298,500 2,603,729 Licenses and Permits 716,000 716,000 824,830 Fines and Forfeitures 1,440,500 1,440,500 1,419,845 Investment Income 200,000 200,000 316,838 Miscellaneous 405,000 405,000 673,574 Total Revenues 22,844,500 22,844,500 23,741,872 Expenditures General Government 9,922,200 9,922,200 8,588,788 Public Safety 12,727,300 12,727,300 12,993,277 Capital Outlay 645,000 645,000 562,400 Total Expenditures 23,294,500 23,294,500 22,144,465 Excess (Deficiency) of Revenues Over (Under) Expenditures (450,000) (450,000) 1,597,407 Other Financing (Uses) Transfers Out — — (1,450,000) Net Change in Fund Balance (450,000) (450,000) 147,407 Fund Balance - Beginning 8,520,790 Fund Balance - Ending 8,668,197 91 ===== PDF PAGE 102 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Community Park - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2024 Original Final Budget Budget Actual Revenues Intergovernmental Video Gaming Taxes $ 70,000 70,000 96,439 Charges for Services 35,000 35,000 58,048 Investment Income — — 64,544 Total Revenues 105,000 105,000 219,031 Expenditures Capital Outlay 200,000 200,000 — Excess (Deficiency) of Revenues Over (Under) Expenditures (95,000) (95,000) 219,031 Other Financing Sources Transfers In — — 1,450,000 Net Change in Fund Balance (95,000) (95,000) 1,669,031 Fund Balance - Beginning 4,684,443 Fund Balance - Ending 6,353,474 92 ===== PDF PAGE 103 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Downtown TIF #2 - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2024 Original Final Budget Budget Actual Revenues Taxes Property Tax $ 29,000 29,000 49,849 Investment Income — — 823 Total Revenues 29,000 29,000 50,672 Expenditures General Government Contractual Services 38,400 38,400 — Capital Outlay 1,000 1,000 16,696 Total Expenditures 39,400 39,400 16,696 Net Change in Fund Balance (10,400) (10,400) 33,976 Fund Balance - Beginning 28,144 Fund Balance - Ending 62,120 93 ===== PDF PAGE 104 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2024 Original Final Budget Budget Actual Revenues Intergovernmental Motor Fuel Tax $ 1,071,200 1,071,200 1,138,546 Local Motor Fuel Tax 402,900 402,900 364,024 Investment Income 500 500 169,785 Total Revenues 1,474,600 1,474,600 1,672,355 Expenditures General Government Refuse Disposal 45,000 45,000 27,044 Electric 130,000 130,000 142,866 Capital Outlay 5,284,800 5,284,800 3,328,954 Total Expenditures 5,459,800 5,459,800 3,498,864 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,985,200) (3,985,200) (1,826,509) Other Financing Sources Transfers In 816,300 816,300 — Net Change in Fund Balance (3,168,900) (3,168,900) (1,826,509) Fund Balance - Beginning 7,877,676 Fund Balance - Ending 6,051,167 94 ===== PDF PAGE 105 ===== [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 Schedule - Enterprise Funds • Consolidated Year-End Financial Report 95 ===== PDF PAGE 106 ===== [Extraction: embedded PDF text] INDIVIDUAL FUND DESCRIPTIONS GENERAL FUND The General Fund is used to account 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. Community Park Fund The Community Park Fund will be used to fund the construction of a new park on the former Rare Earths Facility site and its future maintenance. Downtown TIF #2 Fund The Downtown TIF #2 Fund is used to account for the accumulation of funds from incremental revenue generated within the Downtown TIF #2 area. Motor Fuel Tax Fund The Motor Fuel Tax Fund is used to account for motor fuel tax allocations from the State of Illinois and expenditures related to the City’s annual road rehabilitation and construction program. TIF Special Tax Allocation #2 Fund The TIF Special Tax Allocation #2 Fund is used to account for the accumulation of funds from incremental revenue generated within the TIF #2 area. TIF Special Tax Allocation #3 Fund The TIF Special Tax Allocation #3 Fund is used to account for the accumulation of funds from incremental revenue generated within the TIF #3 area. 96 ===== PDF PAGE 107 ===== [Extraction: embedded PDF text] INDIVIDUAL FUND DESCRIPTIONS - Continued CAPITAL PROJECTS FUNDS 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 is used to account for property taxes, natural gas use 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 is used to account for funds set aside be the City Council during the budget process and costs allocated to user departments for future capital fleet purchases. 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 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 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 is used to account for commuter parking facilities operated be the City that are financed by user fees. 97 ===== PDF PAGE 108 ===== [Extraction: embedded PDF text] INDIVIDUAL FUND DESCRIPTIONS - Continued PENSION TRUST FUND 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. 98 ===== PDF PAGE 109 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2024 Original Final Budget Budget Actual Taxes Property Taxes $ 4,577,500 4,577,500 4,592,430 Telecommunications Tax 500,000 500,000 510,600 Utility Tax 1,400,000 1,400,000 1,380,464 Amusement Tax 135,000 135,000 164,638 Cannabis Tax 40,000 40,000 40,894 6,652,500 6,652,500 6,689,026 Intergovernmental Sales Tax 5,531,000 5,531,000 5,506,594 Income Tax 4,049,000 4,049,000 4,349,779 Use Tax 1,080,700 1,080,700 908,797 Personal Property Replacement Tax 349,900 349,900 301,030 Grants 121,400 121,400 147,830 11,132,000 11,132,000 11,214,030 Charges for Services Weed Cutting Fees 2,500 2,500 4,196 Brush Collection Fees 106,000 106,000 107,777 Police Counter Service 15,000 15,000 — Police Contractual Services 500,000 500,000 672,757 Change of Occupancy Fees 125,000 125,000 111,171 Rental Inspections 160,000 160,000 213,820 Business Registration 30,000 30,000 19,765 Foreclosed or Vacant Registration 15,000 15,000 10,000 Relocate Fees 10,000 10,000 10,200 Police Towing 125,000 125,000 211,205 Plan Review Fees 10,000 10,000 21,240 Engineering Fees 150,000 150,000 145,834 Transfer Station Fees 775,000 775,000 851,075 Cable Franchise Fee 275,000 275,000 181,992 Tower Rental Fees — — 42,567 Finger Printing Fees — — 130 2,298,500 2,298,500 2,603,729 99 ===== PDF PAGE 110 ===== [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, 2024 Original Final Budget Budget Actual Licenses and Permits Building Permits $ 450,000 450,000 537,710 Building Contractors Licenses 50,000 50,000 70,840 Oversize Truck Permits 45,000 45,000 23,670 Liquor Licenses 105,000 105,000 110,417 Vending Machine/Business Licenses 50,000 50,000 66,370 Other Licenses and Permits 16,000 16,000 15,823 716,000 716,000 824,830 Fines and Forfeitures Circuit Court Fines 363,000 363,000 801,934 Local Fines 1,077,500 1,077,500 606,053 Seizures — — 11,858 1,440,500 1,440,500 1,419,845 Investment Income 200,000 200,000 316,838 Miscellaneous Cemetery Lot Sales 40,000 40,000 22,625 Other Reimbursements 65,000 65,000 115,541 Health Insurance Reimbursements 200,000 200,000 358,191 Other Miscellaneous 100,000 100,000 177,217 405,000 405,000 673,574 Total Revenues 22,844,500 22,844,500 23,741,872 100 ===== PDF PAGE 111 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2024 Original Final Budget Budget Actual General Government Legislative Personal Services $ 55,400 55,400 47,393 Contractual Services 101,000 101,000 77,848 Commodities 69,000 69,000 68,126 225,400 225,400 193,367 Administration Personal Services 2,929,900 2,929,900 2,690,114 Contractual Services 1,494,700 1,494,700 966,786 Commodities 51,000 51,000 21,040 4,475,600 4,475,600 3,677,940 Finance Department Personal Services 316,900 316,900 302,368 Contractual Services 72,500 72,500 73,577 Commodities 21,600 21,600 21,930 411,000 411,000 397,875 Public Works Personal Services 1,300,000 1,300,000 1,235,980 Contractual Services 812,200 812,200 732,286 Commodities 455,500 455,500 459,404 2,567,700 2,567,700 2,427,670 Community Development Personal Services 740,400 740,400 752,483 Contractual Services 1,242,000 1,242,000 902,159 Commodities 260,100 260,100 237,294 2,242,500 2,242,500 1,891,936 Total General Government 9,922,200 9,922,200 8,588,788 101 ===== PDF PAGE 112 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2024 Original Final Budget Budget Actual Public Safety Police Department Personal Services $ 10,792,900 10,792,900 11,048,721 Contractual Services 1,614,700 1,614,700 1,533,642 Commodities 319,700 319,700 410,914 12,727,300 12,727,300 12,993,277 Capital Outlay 645,000 645,000 562,400 Total Expenditures 23,294,500 23,294,500 22,144,465 102 ===== PDF PAGE 113 ===== [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, 2024 Original Final Budget Budget Actual Revenues Taxes Utility Taxes $ 750,000 750,000 745,191 Intergovernmental Sales Tax 4,649,700 4,649,700 5,671,844 Grants 1,475,500 1,475,500 546,207 Investment Income 2,000 2,000 137,177 Miscellaneous 4,600 4,600 26,036 Total Revenues 6,881,800 6,881,800 7,126,455 Expenditures Capital Outlay 8,734,500 8,734,500 5,537,419 Net Change in Fund Balance (1,852,700) (1,852,700) 1,589,036 Fund Balance - Beginning 4,332,768 Fund Balance - Ending 5,921,804 103 ===== PDF PAGE 114 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2024 Capital Special Revenue Projects TIF TIF Capital Special Tax Special Tax Equipment Allocation #2 Allocation #3 Replacement Totals ASSETS Cash and Investments $ 322,227 148,913 3,866,381 4,337,521 Receivables - Net of Allowances Property Taxes 69,222 33,608 — 102,830 Total Assets 391,449 182,521 3,866,381 4,440,351 LIABILITIES Accounts Payable — — 692,216 692,216 DEFERRED INFLOWS OF RESOURCES Property Taxes 69,222 33,608 — 102,830 Total Liabilities and Deferred Inflows of Resources 69,222 33,608 692,216 795,046 FUND BALANCES Restricted 322,227 148,913 — 471,140 Assigned — — 3,174,165 3,174,165 Total Fund Balances 322,227 148,913 3,174,165 3,645,305 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 391,449 182,521 3,866,381 4,440,351 104 ===== PDF PAGE 115 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended December 31, 2024 Capital Special Revenue Projects TIF TIF Capital Special Tax Special Tax Equipment Allocation #2 Allocation #3 Replacement Totals Revenues Taxes $ 64,351 31,555 — 95,906 Charges for Services — — 1,078,500 1,078,500 Investment Income 2,952 138 109,474 112,564 Miscellaneous — — 69 69 Total Revenues 67,303 31,693 1,188,043 1,287,039 Expenditures Capital Outlay — 966 1,229,165 1,230,131 Excess (Deficiency) of Revenues Over (Under) Expenditures 67,303 30,727 (41,122) 56,908 Other Financing Sources Disposal of Capital Assets — — 71,357 71,357 Net Change in Fund Balances 67,303 30,727 30,235 128,265 Fund Balances - Beginning 254,924 118,186 3,143,930 3,517,040 Fund Balances - Ending 322,227 148,913 3,174,165 3,645,305 105 ===== PDF PAGE 116 ===== [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, 2024 Original Final Budget Budget Actual Revenues Taxes Property Tax $ 65,000 65,000 64,351 Investment Income — — 2,952 Total Revenues 65,000 65,000 67,303 Expenditures General Government Contractual Services 2,000 2,000 — Capital Outlay 50,000 50,000 — Total Expenditures 52,000 52,000 — Net Change in Fund Balance 13,000 13,000 67,303 Fund Balance - Beginning 254,924 Fund Balance - Ending 322,227 106 ===== PDF PAGE 117 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS TIF Special Tax Allocation #3 - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2024 Original Final Budget Budget Actual Revenues Taxes Property Tax $ 35,000 35,000 31,555 Investment Income — — 138 Total Revenues 35,000 35,000 31,693 Expenditures Capital Outlay 75,000 75,000 966 Net Change in Fund Balance (40,000) (40,000) 30,727 Fund Balance - Beginning 118,186 Fund Balance - Ending 148,913 107 ===== PDF PAGE 118 ===== [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, 2024 Original Final Budget Budget Actual Revenues Charges for Services $ 1,078,500 1,078,500 1,078,500 Investment Income — — 109,474 Miscellaneous — — 69 Total Revenues 1,078,500 1,078,500 1,188,043 Expenditures Capital Outlay 1,934,600 2,063,800 1,229,165 Excess (Deficiency) of Revenues Over (Under) Expenditures (856,100) (985,300) (41,122) Other Financing Sources Disposal of Capital Assets — — 71,357 Net Change in Fund Balance (856,100) (985,300) 30,235 Fund Balance - Beginning 3,143,930 Fund Balance - Ending 3,174,165 108 ===== PDF PAGE 119 ===== [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, 2024 Original Final Budget Budget Actual Operating Revenues Charges for Services $ 7,000,000 7,000,000 8,251,972 Operating Expenses Water Distribution Personal Services 1,946,400 1,946,400 1,961,352 Contractual Services 1,266,900 1,266,900 754,720 Commodities 274,600 274,600 312,267 Capital Outlay 3,507,000 3,507,000 294,223 Water Treatment Plant Personal Services 866,400 866,400 1,295,187 Commodities 1,476,800 1,476,800 1,244,046 Capital Outlay 407,200 407,200 6,200 Depreciation and Amortization — — 2,198,291 Total Operating Expenses 9,745,300 9,745,300 8,066,286 Operating Income (Loss) (2,745,300) (2,745,300) 185,686 Nonoperating Revenues (Expenses) Connection Fees 25,000 25,000 2,700 Investment Income 20,000 20,000 112,932 ARPA — — 3,649,246 Other Income 95,000 95,000 205,936 Principal Retirement (693,500) (693,500) — Interest Expense (13,400) (13,400) (7,453) (566,900) (566,900) 3,963,361 Income (Loss) Before Capital Grants and Transfers (3,312,200) (3,312,200) 4,149,047 Capital Grants — — 750,000 Transfers In — — 1,850,000 — — 2,600,000 Change in Net Position (3,312,200) (3,312,200) 6,749,047 Net Position - Beginning 72,463,435 Net Position - Ending 79,212,482 109 ===== PDF PAGE 120 ===== [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, 2024 Original Final Budget Budget Actual Operating Revenues Charges for Services $ 6,000,000 6,000,000 7,058,686 Operating Expenses Sanitary Sewer Collection Personal Services 2,284,400 2,284,400 2,567,589 Contractual Services 4,587,900 4,587,900 3,838,531 Commodities 136,500 136,500 142,438 Capital Outlay 2,145,200 2,145,200 218,071 Special Service Area #2 Personal Services 7,100 7,100 6,773 Commodities 8,100 8,100 14,689 Capital Outlay 14,000 14,000 3,300 Depreciation — — 430,887 Total Operating Expenses 9,183,200 9,183,200 7,222,278 Operating (Loss) (3,183,200) (3,183,200) (163,592) Nonoperating Revenues Connection Fees 10,000 10,000 10,982 Property Taxes 9,000 9,000 10,107 Investment Income 200,000 200,000 66,255 Other Income 62,000 62,000 78,894 281,000 281,000 166,238 Income (Loss) Before Transfers (2,902,200) (2,902,200) 2,646 Transfers Out — — (1,850,000) Change in Net Position (2,902,200) (2,902,200) (1,847,354) Net Position - Beginning 15,238,605 Net Position - Ending 13,391,251 110 ===== PDF PAGE 121 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Commuter Parking - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2024 Original Final Budget Budget Actual Operating Revenues Charges for Services Parking Fees $ 25,000 25,000 41,309 Licenses and Permits 25,000 25,000 30,398 Total Operating Revenues 50,000 50,000 71,707 Operating Expenses Operations Personal Services 28,000 28,000 33,682 Contractual Services 47,400 47,400 34,763 Commodities 9,000 9,000 10,741 Capital Outlay 75,000 75,000 — Depreciation — — 23,707 Total Operating Expenses 159,400 159,400 102,893 Operating (Loss) (109,400) (109,400) (31,186) Nonoperating Revenues Investment Income — — 3,263 Other Income — — 140 Total Nonoperating Revenues — — 3,403 Change in Net Position (109,400) (109,400) (27,783) Net Position - Beginning 481,992 Net Position - Ending 454,209 111 ===== PDF PAGE 122 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Consolidated Year-End Financial Report December 31, 2024 CSFA # Program Name State Federal Other Total 420-00-1758 Site Improvements $ 139,431 — — 139,431 420-00-1769 Installation and/or Replacement of Utilities 750,000 — — 750,000 420-00-1785 Construction and/or Renovation to Buildings, Additions, or Structures — 406,776 — 406,776 494-10-0343 State and Community Highway Safety/ National Priority Safety Program — 45,485 — 45,485 493-80-2595 State Police Revocation Enforcement 26,347 26,347 569-00-2537 Law Enforcement Camera Grant 58,498 — — 58,498 Other Grant Programs and Activities — 125,106 — 125,106 Totals 974,276 577,367 — 1,551,643 112 ===== PDF PAGE 123 ===== [Extraction: embedded PDF text] STATISTICAL SECTION (Unaudited) This part of the annual comprehensive 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 government’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. 113 ===== PDF PAGE 124 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2024 (Unaudited) See Following Page 114 ===== PDF PAGE 125 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2024 (Unaudited) 2015 2016 2017 Governmental Activities Net Investment in Capital Assets $ 55,619,533 54,867,141 49,943,090 Restricted 3,305,503 2,636,828 2,216,378 Unrestricted (Deficit) (9,065,624) (10,545,812) (12,294,029) Total Governmental Activities Net Position 49,859,412 46,958,157 39,865,439 Business-Type Activities Net Investment in Capital Assets 103,770,812 104,429,071 105,803,874 Restricted 1,088,552 2,409 — Unrestricted (Deficit) 2,453,473 1,383,690 (554,848) Total Business-Type Activities Net Position 107,312,837 105,815,170 105,249,026 Primary Government Net Investment in Capital Assets 159,390,345 159,296,212 155,746,964 Restricted 4,394,055 2,639,237 2,216,378 Unrestricted (Deficit) (6,612,151) (9,162,122) (12,848,877) Total Primary Government Net Position 157,172,249 152,773,327 145,114,465 Data Source: City Records *Accrual Basis of Accounting 115 ===== PDF PAGE 126 ===== [Extraction: embedded PDF text] 2018 2019 2020 2021 2022 2023 2024 54,014,124 54,970,284 53,700,103 52,198,435 50,991,911 50,120,415 51,819,765 2,944,399 3,615,057 5,316,225 8,507,381 8,713,917 13,554,830 13,306,421 (15,056,308) (17,252,817) (13,606,301) (4,136,846) (12,314,281) (13,879,879) (10,894,025) 41,902,215 41,332,524 45,410,027 56,568,970 47,391,547 49,795,366 54,232,161 105,354,380 95,532,108 94,081,605 93,502,440 92,989,578 94,019,877 94,586,801 — 180,321 180,321 180,321 180,321 180,321 34,933 (10,658,958) (14,775,689) (19,069,338) (19,399,742) (7,297,414) (6,016,166) (1,563,792) 94,695,422 80,936,740 75,192,588 74,283,019 85,872,485 88,184,032 93,057,942 159,368,504 150,502,392 147,781,708 145,700,875 143,981,489 144,140,292 146,406,566 2,944,399 3,795,378 5,496,546 8,687,702 8,894,238 13,735,151 13,341,354 (25,715,266) (32,028,506) (32,675,639) (23,536,588) (19,611,695) (19,896,045) (12,457,817) 136,597,637 122,269,264 120,602,615 130,851,989 133,264,032 137,979,398 147,290,103 116 ===== PDF PAGE 127 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Changes in Net Position - Last Ten Fiscal Years* December 31, 2024 (Unaudited) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expenses Governmental Activities General Government $ 13,280,738 13,704,876 13,329,708 13,667,469 9,256,029 12,085,019 7,502,977 8,457,023 9,057,223 9,574,640 Public Safety — — — — 12,429,913 10,448,934 8,922,067 11,601,093 10,976,733 12,341,985 Streets and Highways 12,524,954 11,555,771 11,092,178 10,121,701 5,193,137 1,170,904 5,494,248 5,916,606 9,664,763 7,681,942 Culture and Recreation — — — — 49,692 49,692 47,062 49,691 47,062 47,062 Interest on Long-Term Debt 608 518 407 339 250 1,115 69 — — 15,000 Total Governmental Activities Expenses 25,806,300 25,261,165 24,422,293 23,789,509 26,929,021 23,755,664 21,966,423 26,024,413 29,745,781 29,660,629 Business-Type Activities Waterworks 6,211,353 6,923,648 6,208,086 6,936,383 6,710,153 7,223,329 5,826,807 7,485,333 7,703,453 8,073,739 Sewerage 6,075,753 6,552,406 6,061,776 6,822,477 5,776,914 5,895,441 5,365,676 6,169,629 6,735,252 7,222,278 Commuter Parking 91,985 99,935 113,075 127,980 114,234 100,012 92,619 90,272 83,878 102,893 Total Business-Type Activities Expenses 12,379,091 13,575,989 12,382,937 13,886,840 12,601,301 13,218,782 11,285,102 13,745,234 14,522,583 15,398,910 Total Primary Government Expenses 38,185,391 38,837,154 36,805,230 37,676,349 39,530,322 36,974,446 33,251,525 39,769,647 44,268,364 45,059,539 Program Revenues Governmental Activities Charges for Services General Government 2,391,549 2,810,520 2,365,076 3,082,228 4,041,799 3,433,651 3,657,317 3,830,671 2,913,391 2,520,927 Public Safety 796,700 780,800 851,100 278,100 1,551,190 1,345,890 1,093,943 1,993,128 2,617,987 2,327,477 Streets and Highways 1,400,121 1,297,112 1,257,271 1,759,322 — — — — — 1,078,500 Culture and Recreation — — — — 896,500 953,800 570,800 968,504 1,183,924 58,048 Operating Grants and Contributions 19,280 15,150 3,820 194,395 128,544 7,227 376,506 1,112,088 2,262,849 2,196,607 Capital Grants and Contributions 688,950 716,433 704,074 732,621 895,088 1,643,965 1,700,033 616,114 — — Total Governmental Activities Program Revenues 5,296,600 5,620,015 5,181,341 6,046,666 7,513,121 7,384,533 7,398,599 8,520,505 8,978,151 8,181,559 Business-Type Activities Charges for Services Waterworks 4,581,798 4,430,455 4,423,819 1,163,807 3,934,811 3,422,705 4,857,273 5,003,039 7,787,790 8,254,672 Sewerage 5,768,370 6,070,820 6,218,263 3,106,749 4,678,920 3,641,234 5,093,945 4,516,550 6,753,909 7,069,668 Commuter Parking 139,635 139,977 141,988 158,493 150,690 44,302 39,591 58,442 66,549 71,707 Operating Grants and Contributions — — — — — — — — 540,000 — Capital Grants and Contributions 1,051,704 — 645,461 355,577 219,837 — — — — 750,000 Total Business-Type Activities Program Revenues 11,541,507 10,641,252 11,429,531 4,784,626 8,984,258 7,108,241 9,990,809 9,578,031 15,148,248 16,146,047 Total Primary Government Program Revenues 16,838,107 16,261,267 16,610,872 10,831,292 16,497,379 14,492,774 17,389,408 18,098,536 24,126,399 24,327,606 Data Source: City Records *Accrual Basis of Accounting 117 ===== PDF PAGE 128 ===== [Extraction: embedded PDF text] 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net (Expense) Revenue Governmental Activities $ (20,509,700) (19,641,150) (19,240,952) (17,742,843) (19,415,900) (16,371,131) (14,567,824) (17,503,908) (20,767,630) (21,479,070) Business-Type Activities (837,584) (2,934,737) (953,406) (9,102,214) (3,617,043) (6,110,541) (1,294,293) (4,167,203) 625,665 747,137 Total Primary Government Net (Expense) Revenue (21,347,284) (22,575,887) (20,194,358) (26,845,057) (23,032,943) (22,481,672) (15,862,117) (21,671,111) (20,141,965) (20,731,933) General Revenues and Other Changes in Net Position Governmental Activities Taxes Property Taxes 4,436,897 4,448,829 4,489,622 4,623,840 4,666,636 4,713,460 5,134,372 4,086,790 4,538,891 4,738,185 Telecommunications Taxes 853,407 806,698 759,135 669,750 562,050 577,082 659,823 495,381 539,995 510,600 Utility Taxes 2,029,538 1,994,900 1,909,065 2,070,351 2,205,508 2,083,483 2,156,333 2,219,966 2,131,218 2,125,655 Amusement Taxes 107,849 108,211 103,978 94,615 79,390 88,601 103,148 102,460 147,040 164,638 Cannabis Taxes — — — — — 15,720 37,400 41,894 38,787 40,894 Intergovernmental Sales and Use Taxes 4,855,454 4,544,609 6,178,849 6,871,960 7,470,171 8,163,522 10,385,591 10,725,087 10,127,058 12,087,235 Income Taxes 2,882,037 2,636,660 2,487,827 2,593,920 2,883,008 2,943,407 3,566,536 4,173,731 4,091,052 4,349,779 Replacement Taxes 187,625 160,396 173,517 152,578 198,860 166,337 295,815 630,453 527,994 301,030 Video Gaming Taxes — — — — — — — 7,836 38,789 96,439 Investment Income 3,522 6,983 13,271 12,224 25,729 6,086 1,643 104,248 450,063 801,731 Miscellaneous 1,102,056 2,032,609 560,955 637,785 732,686 1,690,936 3,386,106 1,144,739 973,362 699,679 Internal Activity - Transfers — — — — 22,171 — — (15,406,100) (692,086) — Total Governmental Activities 16,458,385 16,739,895 16,676,219 17,727,023 18,846,209 20,448,634 25,726,767 8,326,485 22,912,163 25,915,865 Business-Type Activities Property 8,604 8,894 8,907 9,049 8,882 9,916 11,005 9,354 10,290 10,107 Intergovernmental Sales and Use Taxes 1,201,919 1,185,841 — — — — — — — — ARPA — — — — — — — — — 3,649,246 Investment Income 1,175 2,660 6,878 8,095 7,598 1,538 — 75,725 284,253 182,450 Miscellaneous 266,782 239,675 371,477 584,062 428,265 354,935 373,719 265,490 479,408 284,970 Internal Activity - Transfers — — — — (10,586,384) — — 15,406,100 692,086 — Total Business-Type Activities 1,478,480 1,437,070 387,262 601,206 (10,141,639) 366,389 384,724 15,756,669 1,466,037 4,126,773 Total Primary Government 17,936,865 18,176,965 17,063,481 18,328,229 8,704,570 20,815,023 26,111,491 24,083,154 24,378,200 30,042,638 Changes in Net Position Governmental Activities (4,051,315) (2,901,255) (2,564,733) (15,820) (569,691) 4,077,503 11,158,943 (9,177,423) 2,144,533 4,436,795 Business-Type Activities 640,896 (1,497,667) (566,144) (8,501,008) (13,758,682) (5,744,152) (909,569) 11,589,466 2,091,702 4,873,910 Total Primary Government Changes in Net Position (3,410,419) (4,398,922) (3,130,877) (8,516,828) (14,328,373) (1,666,649) 10,249,374 2,412,043 4,236,235 9,310,705 118 ===== PDF PAGE 129 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2024 (Unaudited) 2015 2016 2017 General Fund Nonspendable $ 736,988 549,669 94,055 Restricted 846,315 360,944 624,061 Unassigned 12,302,595 12,733,258 11,841,410 Total General Fund 13,885,898 13,643,871 12,559,526 All Other Governmental Funds Nonspendable 12,815 2,056 2,176 Restricted 2,459,188 2,275,884 1,592,317 Assigned 4,006,583 4,190,745 5,109,310 Total All Other Governmental Funds 6,478,586 6,468,685 6,703,803 Total Governmental Funds 20,364,484 20,112,556 19,263,329 Data Source: City Records *Modified Accrual Basis of Accounting 119 ===== PDF PAGE 130 ===== [Extraction: embedded PDF text] 2018 2019 2020 2021 2022 2023 2024 78,908 105,861 115,884 110,793 158,471 433,596 464,608 1,211,793 1,535,492 2,998,432 2,945,142 2,503,160 591,457 368,520 12,126,823 13,844,971 15,925,019 19,254,290 8,624,215 7,495,737 7,835,069 13,417,524 15,486,324 19,039,335 22,310,225 11,285,846 8,520,790 8,668,197 2,275 2,568 2,610 956 933 6,106 6,317 1,732,606 2,079,565 2,317,793 5,562,239 6,210,757 12,963,373 12,937,901 5,896,981 4,745,724 6,537,372 8,923,836 9,922,019 7,470,592 9,089,652 7,631,862 6,827,857 8,857,775 14,487,031 16,133,709 20,440,071 22,033,870 21,049,386 22,314,181 27,897,110 36,797,256 27,419,555 28,960,861 30,702,067 120 ===== PDF PAGE 131 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2024 (Unaudited) 2015 2016 2017 Revenues Taxes $ 8,216,205 8,109,944 9,308,149 Intergovernmental 7,844,832 7,321,942 7,501,738 Charges for Services 2,982,446 3,193,936 2,987,175 Licenses and Permits 608,401 843,502 653,852 Fines and Forfeitures 997,523 850,994 832,420 Investment Income 3,522 6,983 13,271 Miscellaneous 1,102,056 2,032,609 560,955 Total Revenues 21,754,985 22,359,910 21,857,560 Expenditures General Government 8,361,285 7,893,627 8,591,562 Public Safety 9,104,514 9,849,220 10,003,049 Capital Outlay 4,393,009 4,924,842 4,176,432 Debt Service Interest and Fiscal Charges 608 518 407 Total Expenditures 21,859,416 22,668,207 22,771,450 Excess (Deficiency) of Revenues Over (Under) Expenditures (104,431) (308,297) (913,890) Other Financing Sources (Uses) Disposal of Capital Assets — 56,369 64,663 Transfers In — 25,643 — Transfers Out — (25,643) — — 56,369 64,663 Net Change in Fund Balances (104,431) (251,928) (849,227) Debt Service as a Percentage of Noncapital Expenditures 0.00% 0.00% 0.00% Data Source: City Records *Modified Accrual Basis of Accounting 121 ===== PDF PAGE 132 ===== [Extraction: embedded PDF text] 2018 2019 2020 2021 2022 2023 2024 7,611,134 6,330,796 6,108,938 6,701,024 5,531,158 6,006,422 7,579,972 10,392,896 12,758,459 14,293,866 17,714,533 18,680,642 18,437,251 19,031,090 2,951,250 4,365,673 3,737,997 3,158,622 3,916,364 3,635,890 3,740,277 887,198 1,108,091 1,023,714 1,291,445 1,522,441 1,244,151 824,830 1,281,202 1,015,725 971,630 871,993 1,353,498 1,835,261 1,419,845 12,224 25,729 6,086 1,643 104,248 450,063 801,731 637,785 732,686 1,690,936 3,386,106 1,056,194 937,362 699,679 23,773,689 26,337,159 27,833,167 33,125,366 32,164,545 32,546,400 34,097,424 8,150,224 8,894,550 8,994,426 9,022,394 9,061,329 9,018,793 8,758,698 10,011,442 9,886,973 10,388,620 10,994,269 12,236,400 12,581,415 12,993,277 3,825,627 6,312,762 2,866,077 4,208,488 4,926,962 9,008,086 10,675,600 339 250 1,115 69 — — — 21,987,632 25,094,535 22,250,238 24,225,220 26,224,691 30,608,294 32,427,575 1,786,057 1,242,624 5,582,929 8,900,146 5,939,854 1,938,106 1,669,849 — 22,171 — — 88,545 36,000 71,357 — 500,000 — 4,620,000 511,380 5,298,059 1,450,000 — (500,000) — (4,620,000) (15,917,480) (5,990,145) (1,450,000) — 22,171 — — (15,317,555) (656,086) 71,357 1,786,057 1,264,795 5,582,929 8,900,146 (9,377,701) 1,282,020 1,741,206 0.00% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 122 ===== PDF PAGE 133 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years December 31, 2024 (Unaudited) Tax Levy Fiscal Residential Commercial Year Year Property Farm Property 2015 2015 $ 363,843,948 $ 462,209 $ 81,068,291 2016 2016 390,758,862 487,626 89,670,605 2017 2017 409,838,459 537,746 95,961,612 2018 2018 427,634,113 512,185 95,314,124 2019 2019 445,466,549 498,632 97,014,387 2020 2020 463,824,523 497,883 97,567,069 2021 2021 475,426,960 563,293 112,256,047 2022 2022 500,075,590 519,152 118,452,799 2023 2023 523,039,265 623,917 125,639,593 2024 2024 589,718,174 651,044 128,222,958 Data Source: DuPage County Clerk's and Treasurer's Offices 123 ===== PDF PAGE 134 ===== [Extraction: embedded PDF text] Total Taxable Total Industrial Railroad Assessed Direct Property Property Value Tax Rate $ 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 204,433,800 5,896,762 772,220,037 0.4996 223,859,460 6,140,529 818,246,289 0.4999 246,868,400 6,472,447 872,388,388 0.5094 304,795,931 6,754,743 960,853,449 0.4900 337,958,929 6,525,245 1,063,076,350 0.4671 124 ===== PDF PAGE 135 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years December 31, 2024 (Unaudited) 2015 2016 2017 Countywide DuPage County 0.1971 0.1848 0.1749 Forest Preserve District 0.1622 0.1514 0.1306 DuPage Airport Authority 0.0188 0.0176 0.0166 Local Wayne Township 0.1007 0.0959 0.0940 Wayne Township Road 0.0840 0.0800 0.0784 City of West Chicago - Wayne Township 0.6031 0.5582 0.5441 Winfield Township 0.1370 0.1275 0.1192 Winfield Township Road 0.1801 0.1676 0.1587 City of West Chicago - Winfield Township 0.6031 0.5582 0.5441 West Chicago Park District 0.5054 0.4889 0.4744 West Chicago Fire Protection District 1.0556 0.9971 0.9663 West Chicago Mosquito District 0.0160 0.0152 0.0148 West Chicago Library District 0.3367 0.3153 0.3056 Educational Grade School District 33 5.5167 5.1727 4.8967 High School District 94 2.6293 2.4677 2.3770 College of DuPage District 502 0.2786 0.2626 0.2431 Total Tax Rate - Winfield Township 11.6366 10.9266 10.4220 Share of Total Tax Rate Levied by the City of West Chicago 5.18% 5.11% 5.22% Total Tax Rate - Wayne Township 11.5918 11.5042 10.8074 Share of Total Tax Rate Levied by the City of West Chicago 5.20% 4.85% 5.03% Property Tax Rates are per $100 of assessed valuation Data Source: DuPage County Clerk 125 ===== PDF PAGE 136 ===== [Extraction: embedded PDF text] 2018 2019 2020 2021 2022 2023 2024 0.1673 0.1655 0.1609 0.1587 0.1428 0.1473 0.1361 0.1278 0.1242 0.1205 0.1177 0.1130 0.1076 0.1310 0.0146 0.0141 0.0148 0.0144 0.0139 0.0132 0.0122 0.0929 0.0911 0.0904 0.0899 0.0891 0.0884 0.0829 0.0775 0.0744 0.0728 0.0724 0.0717 0.0712 0.0647 0.5178 0.5034 0.4996 0.4999 0.5094 0.4900 0.4671 0.1008 0.0939 0.0811 0.0435 0.0756 0.0726 0.0690 0.1526 0.1483 0.1448 0.1437 0.1440 0.1396 0.0647 0.5178 0.5034 0.4996 0.4999 0.5094 0.4900 0.4671 0.4683 0.4603 0.4339 0.4296 0.4265 0.4162 0.3955 0.9448 0.9295 0.9126 0.9080 0.8856 0.8573 0.8137 0.0143 0.0135 0.0136 0.0127 0.0113 0.0104 0.0091 0.2968 0.2893 0.2841 0.2819 0.2830 0.2774 0.2651 4.7555 4.6806 4.5774 4.5384 4.4888 4.4062 4.2452 2.3136 2.2573 2.2082 2.1843 2.1762 2.1468 2.0320 0.2317 0.2112 0.2114 0.2037 0.1946 0.1907 0.1794 10.1059 9.8911 9.6629 9.5365 9.4647 9.2753 8.8881 5.12% 5.09% 5.17% 5.24% 5.38% 5.28% 5.26% 10.3165 10.0229 9.8144 9.5116 9.4059 9.2227 8.8340 5.02% 5.02% 5.09% 5.26% 5.42% 5.31% 5.29% 126 ===== PDF PAGE 137 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2024 (Unaudited) 2024 2015 Percentage of Percentage of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Discovery Drive Investors $ 16,383,82 1 1.54% Discovery Dr Investors II 15,239,87 2 1.43% Gsi Family Investments Az 11,496,21 3 1.08% Stag Industrial Holdings LLC 9,555,281 4 0.90% Alpha Z Chi Ind 5 LLC 7,727,027 5 0.73% Ds Containers Inc 7,320,249 6 0.69% 280 Westgate Drive Ltd 7,161,051 7 0.67% Ciof I Il 1B02 LLC 6,460,830 8 0.61% Cicf II Il 1B05 LLC 6,324,000 9 0.59% Ds Containers Inc 6,184,948 10 0.58% DuPage Airport Authority $ 11,966,970 1 2.11% Blackhawk Center, LLC 8,186,810 2 1.44% Cobalt Industrial REIT II 7,665,890 3 1.35% Centerpoint Properties 4,013,940 4 0.71% Mapei Corp 3,955,480 5 0.70% LaGrou Properties 3,901,490 6 0.69% Platinum Health Care 2,984,240 7 0.53% Prologis 2,854,260 8 0.50% Menards, Inc. 2,740,460 9 0.48% St. Andrews Country Club 2,505,340 10 0.44% Total 93,853,302 8.82% 50,774,880 8.95% Data Source: Office of the County Clerk 127 ===== PDF PAGE 138 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Property Tax Levies and Collections - Last Ten Tax Levy Years December 31, 2024 (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 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% 2019 3,632,174 3,632,174 100.00% N/A 3,632,174 100.00% 2020 3,823,499 3,823,499 100.00% N/A 3,823,499 100.00% 2021 3,991,102 3,991,102 100.00% N/A 3,991,102 100.00% 2022 4,653,454 4,545,987 97.69% N/A 4,545,987 97.69% 2023 4,702,152 4,587,297 97.56% N/A 4,587,297 97.56% Data Source: DuPage County Clerk's Office N/A - Not Available Note: Levies for all Special Services Area have been excluded from this table. 128 ===== PDF PAGE 139 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2024 (Unaudited) Business-Type Activities IEPA Total Percentage Fiscal Loans Primary of Personal Per Year Payable Government Income (1) Capita (1) 2015 $ 5,647,382 $ 5,647,382 0.82% $ 208 2016 5,082,055 5,082,055 0.75% 188 2017 4,502,105 4,502,105 0.64% 166 2018 3,907,155 3,907,155 0.55% 144 2019 3,296,816 3,296,816 0.45% 122 2020 2,670,691 2,670,691 0.35% 99 2021 2,028,371 2,028,371 0.24% 79 2022 1,369,438 1,369,438 0.16% 53 2023 693,461 693,461 0.07% 27 2024 — — —% — Data Source: City Records Notes: 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. 129 ===== PDF PAGE 140 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years December 31, 2024 (Unaudited) Percentage of Gross Less: Total Taxable General Amounts Assessed Fiscal Obligation Available for Value of Per Year Bonds Debt Service Total Property (1) Capita (2) 2015 $ — $ — $ — 0.00% $ — 2016 — — — 0.00% — 2017 — — — 0.00% — 2018 — — — 0.00% — 2019 — — — 0.00% — 2020 — — — 0.00% — 2021 — — — 0.00% — 2022 — — — 0.00% — 2023 — — — 0.00% — 2024 — — — 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. 130 ===== PDF PAGE 141 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Schedule of Direct and Overlapping Bonded Debt December 31, 2024 (Unaudited) Percentage to Debt City's Gross Applicable Share of Governmental Unit Debt to City (1) Debt City of West Chicago $ — 100.00% $ — Overlapping Debt DuPage County 87,140,000 13.31% 11,597,832 Forest Preserve District 56,516,521 8.63% 4,878,570 West Chicago Park District 24,107,000 3.68% 887,622 Winfield Park District 6,085,000 0.93% 56,554 School District #25 3,440,000 0.53% 18,074 School District #33 25,401,265 3.88% 985,490 School District #94 34,934,252 5.34% 1,863,994 U-46 School District 204,735,000 31.27% 64,021,508 U-303 School District 20,430,000 3.12% 637,497 Community College District #502 76,395,000 11.67% 8,913,979 Community College District #509 115,540,000 17.65% 20,389,494 Total Overlapping Debt 654,724,038 114,250,614 Total Direct and Overlapping Debt 654,724,038 114,250,614 Data Source: DuPage County Clerks Office 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. 131 ===== PDF PAGE 142 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Schedule of Legal Debt Margin December 31, 2024 (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. 132 ===== PDF PAGE 143 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2024 (Unaudited) Per (2) Capita (1) (2) Fiscal (1) Personal Personal Median School Unemployment Year Population Income Income Age Enrollment Rate 2015 27,086 $ 692,182,730 $ 25,555 30.1 8,005 5.40% 2016 27,086 681,104,556 25,146 31.6 8,390 6.40% 2017 27,086 706,998,772 26,102 33.2 8,301 4.30% 2018 27,086 706,782,084 26,094 33.0 8,350 3.00% 2019 27,086 731,619,946 27,011 33.0 8,202 3.60% 2020 27,086 768,971,540 28,390 34.0 8,463 6.80% 2021 25,614 855,341,169 33,394 34.0 7,817 4.90% 2022 25,614 846,517,086 33,049 35.2 5,725 4.80% 2023 25,614 925,110,144 36,092 35.8 5,447 4.00% 2024 25,614 974,103,107 38,263 35.8 5,149 4.80% Data Source: (1) US Census Bureau (2) Illinois Department of Employment Security (using annual averages) 133 ===== PDF PAGE 144 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2024 (Unaudited) 2024 2015 Percentage Percentage of Total of Total City City Employer Employees Rank Employment Employees Rank Employment The Jel Sert Co 900 1 5.68% 1,000 1 6.77% West Chicago Elementary School District 33 760 2 4.80% 585 2 3.96% Ball Horticultural Company 507 3 3.20% 425 5 2.88% Epsilon Data Management, LLC 450 4 2.84% Amazon.com Services LLC 341 5 2.15% OSI Industries 335 6 2.11% 230 10 1.56% FXI Inc. 320 7 2.02% Mapei Corporation 292 8 1.84% Avient Colorants USA LLC 280 9 1.77% AJR Filtration 278 10 1.75% General Mills 500 3 3.39% Sims Recycling Solutions 500 4 3.39% Aspen Marketing Services 425 6 2.88% Siemens Industry 350 7 2.37% Advanced Urethane Technologies 350 8 2.37% Community High School District 94 240 9 1.62% Total 4,463 28.16% 4,605 31.19% Data Sources: City Community Development Department Records and U.S. Census Bureau. 134 ===== PDF PAGE 145 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years December 31, 2024 (Unaudited) Function 2015 2016 2017 General Government Administration 1.00 1.00 1.50 Finance / Administrative Services 4.13 4.13 4.13 Museum / Marketing 0.50 0.25 0.25 Public Works 11.51 11.19 11.19 Community Development 3.50 3.75 4.75 Public Safety Police 49.00 52.50 53.00 Waterworks and Sewerage 35.43 33.65 39.34 Commuter Parking 0.25 0.25 0.25 Totals 105.32 106.72 114.41 Data Source: City Records 135 ===== PDF PAGE 146 ===== [Extraction: embedded PDF text] 2018 2019 2020 2021 2022 2023 2024 1.50 1.50 1.50 1.50 3.25 3.15 6.00 4.13 4.13 4.13 4.13 2.50 2.50 9.50 0.25 0.25 0.25 0.25 0.25 0.25 0.25 11.19 11.94 12.00 12.00 12.75 12.75 10.00 4.75 4.75 4.75 4.75 5.75 7.78 7.00 51.00 51.00 47.00 48.00 51.00 53.00 51.00 38.12 38.72 39.01 39.07 38.32 38.32 34.00 0.25 0.25 0.25 0.25 0.25 0.25 0.25 111.19 112.54 108.89 109.95 114.07 118.00 118.00 136 ===== PDF PAGE 147 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2024 (Unaudited) Function/Program 2015 2016 2017 General Government Public Works Number of Parkway Trees Planted 170 135 106 Number of Parkway Trees Trimmed 2,459 2,430 2,958 Brush Pickup Program (Days to Collect) 6.0 5.5 4.8 Building Safety Inspections 12 12 12 Tunnel - Paint and Light Lens Replacements 10 6 5 Special Events Handled 3 4 22 Community Development Number of Building Permits Issued 990 1,155 1,044 Number of Building Inspections 962 882 1,056 Highways and Streets Sidewalk Replaced (Sq. Ft.) 12,500 11,142 1,884 Crack Sealing (Lbs. Installed) 42,240 32,000 35,360 Tons of Salt Used 3,210 2,500 2,050 Public Safety Fire Number of Fire Calls 1,130 1,095 1,113 Number of EMS Calls 1,934 2,073 2,134 ISO Rating 3 4 2 Police Part I Crime 383 329 342 Part II Crime 1,315 1,427 1,456 Calls for Service 34,028 44,087 42,780 Parking Tickets Issued 3,049 3,780 3,026 Waterworks and Sewerage Number of metered Accounts 6,471 6,452 6,450 Water Meters Read 9,911 152 29 Water Meter Service Requests 61 1,471 1,252 Water Meters Replaced 39 75 50 Average Daily Treated Water (Million Gallons) 3.45 3.54 3.42 Sanitary Sewer Repairs 1 2 4 Data Source: City Records Note: Indicators are not available for the general government 137 ===== PDF PAGE 148 ===== [Extraction: embedded PDF text] 2018 2019 2020 2021 2022 2023 2024 110 160 180 134 133 130 134 2,566 800 3,218 2,600 2,295 2,201 2,813 4.7 4.9 4.7 4.0 4.0 4.0 40.0 12 12 12 10 12 12 12 6 10 4 1 13 14 19 19 15 2 12 6 8 5 1,352 1,264 1,110 1,132 1,167 789 923 1,211 1,251 1,322 1,209 1,257 1,162 900 12,545 920 11,464 31,889 15,183 39,539 15,976 27,330 — — — 70,538 — 17,130 2,270 2,540 2,700 3,967 2,478 1,764 2,120 1,238 1,250 1,138 1,439 1,439 1,474 1,502 2,339 2,350 2,148 2,371 2,371 2,607 2,515 2 2 2 2 2 2 2 265 258 271 251 261 846 808 1,589 1,596 708 692 692 551 663 40,713 33,516 31,689 33,868 34,623 39,534 42,912 3,094 2,301 1,293 3,860 2,134 4,083 4,515 6,455 6,455 6,457 6,551 6,635 6,597 6,583 — — — — — — — 961 723 586 594 595 447 583 35 16 20 35 65 94 37 3.66 3.62 3.43 2.99 2.99 2.54 2.53 4 1 4 — — — 4 138 ===== PDF PAGE 149 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO, ILLINOIS Capital Asset Statistic by Function/Program - Last Ten Fiscal Years December 31, 2024 (Unaudited) Function/Program 2015 2016 2017 General Government Public Works Streets (Miles) 174.06 174.06 174.06 Sidewalks (Miles) 111.00 111.03 111.03 Streetlights 1,046 1,168 1,168 Public Safety Police Stations 1 1 1 Patrol Units 26 26 26 Fire Stations 4 4 4 Waterworks and Sewerage Water Mains (Miles) 128.87 128.87 129.64 Fire Hydrants 1,537 1,537 1,551 Sanitary Sewers (Miles) 106.43 106.43 106.43 Manholes 2,213 2,213 2,213 Data Source: City Records 139 ===== PDF PAGE 150 ===== [Extraction: embedded PDF text] 2018 2019 2020 2021 2022 2023 2024 174.21 175.02 175.02 175.02 175.90 175.38 185.00 111.38 111.38 111.38 111.38 111.38 113.50 113.50 1,168 1,169 1,197 1,197 1,197 1,210 1,210 1 1 1 1 1 1 1 26 26 26 26 31 28 21 4 4 4 4 4 4 4 129.90 130.05 130.05 130.05 130.05 130.50 147.00 1,555 1,557 1,557 1,557 1,557 1,484 1,750 106.60 106.60 106.60 106.60 106.60 106.60 106.60 2,217 2,217 2,217 2,217 2,217 2,233 2,233 140 ===== PDF PAGE 151 ===== [Extraction: embedded PDF text] INDEPENDENT AUDITOR’S 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 141 ===== PDF PAGE 152 ===== [Extraction: embedded PDF text] INDEPENDENT AUDITOR’S 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 June 20, 2025 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 (the City), Illinois, as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 20, 2025. Report on 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) as a basis for designing 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. Accordingly, 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 or significant deficiencies may exist that were not identified. Report on 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 financial statements. 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. 142 ===== PDF PAGE 153 ===== [Extraction: embedded PDF text] City of West Chicago, Illinois June 20, 2025 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 143