===== PDF PAGE 4 ===== CITY OF WEST CHICAGO, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 475 Main Street West Chicago, Illinois 60185 Phone: 630.293.2200 Fax: 630.293.3028 www.westchicago.org ===== PDF PAGE 5 ===== CITY OF WEST CHICAGO, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 Prepared by Finance Director: Nikki Giles Interim Finance Director: Jacob Henderson ===== PDF PAGE 6 ===== 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 15 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 28 Statement of Activities 30 Fund Financial Statements Balance Sheet - Governmental Funds 32 Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities 34 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities 38 Statement of Net Position - Proprietary Funds 40 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 42 Statement of Cash Flows - Proprietary Funds 43 Statement of Fiduciary Net Position 44 Statement of Changes in Fiduciary Net Position 45 Notes to the Financial Statements 46 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions - Last Ten Fiscal Years Illinois Municipal Retirement Fund 78 Police Pension Fund 79 Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Measurement Years Illinois Municipal Retirement Fund 81 Police Pension Fund 83 PAGE CITY OF WEST CHICAGO, ILLINOIS TABLE OF CONTENTS ===== PDF PAGE 7 ===== FINANCIAL SECTION - Continued REQUIRED SUPPLEMENTARY INFORMATION - Continued Schedule of Investment Return - Last Ten Fiscal Years Police Pension Fund 85 Schedule of Changes in the Employer’s Total OPEB Liability Retiree Benefits Plan 87 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund 89 Community Park - Special Revenue Fund 90 Downtown TIF #2 - Special Revenue Fund 91 Motor Fuel Tax - Special Revenue Fund 92 OTHER SUPPLEMENTARY INFORMATION Schedule of Revenues - Budget and Actual - General Fund 97 Schedule of Expenditures - Budget and Actual - General Fund 99 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Capital Improvement - Capital Projects Fund 101 Combining Balance Sheet - Nonmajor Governmental Funds 102 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental - Special Revenue Funds 103 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TIF Special Tax Allocation #2 - Special Revenue Fund 104 TIF Special Tax Allocation #3 - Special Revenue Fund 105 Capital Equipment Replacement - Capital Projects Fund 106 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual Waterworks - Enterprise Fund 107 Sewerage - Enterprise Fund 108 Commuter Parking - Enterprise Fund 109 PAGE CITY OF WEST CHICAGO, ILLINOIS TABLE OF CONTENTS ===== PDF PAGE 8 ===== STATISTICAL SECTION (Unaudited) Net Position by Component - Last Ten Fiscal Years 112 Changes in Net Position - Last Ten Fiscal Years 114 Fund Balances of Governmental Funds - Last Ten Fiscal Years 116 Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years 118 Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years 120 Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years 122 Principal Property Tax Payers - Current Tax Levy Year and Nine Tax Levy Years Ago 124 Property Tax Levies and Collections - Last Ten Fiscal Years 125 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 126 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 127 Schedule of Direct and Overlapping Bonded Debt 128 Schedule of Legal Debt Margin - Last Ten Fiscal Years 129 Demographic and Economic Statistics - Last Ten Fiscal Years 130 Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago 131 Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years 132 Operating Indicators by Function/Program - Last Ten Fiscal Years 134 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 136 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 139 PAGE CITY OF WEST CHICAGO, ILLINOIS TABLE OF CONTENTS ===== PDF PAGE 9 ===== 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 10 ===== LEGISLATIVE City Mayor: Daniel Bovey ALDERMEN Daniel M. Beebe Joseph Morano Matthew Myers Jayme Sheahan Julieta Alcántara-Garcia Sergio Santiago Melissa Birch Ferguson Carlos Aviña Soto Sandra Dimas John C. Smith Jr. Denise Carreto-Muñoz Christopher Swiatek Rebecca Stout Tracy Hernandez ADMINISTRATIVE Interim City Administrator: Tia Messino Assistant City Administrator: Vacant FINANCE Finance Director: Nikki Giles Interim Finance Director: Jacob Henderson CITY OF WEST CHICAGO, ILLINOIS Principal Officials December 31, 2025 1 ===== PDF PAGE 11 ===== 2 ORGANIZATIONAL HIERARCHY C1tyof West Chicago Residents - I I .. : I -: I I - I I I -------------------------------------.. --~ I 122 TOTAL STAFF 121 FULL TIME 1 PART-TIME Administration: 5 Business & Community Relations: 4 Finance: 7 Community Development: 7 Police: 55 Public Works: 44 I -----------.-------------,-------------,--_I __________ I -------------------1 ••••• - Ill : Ill · · : Ill·· : 1111· · : - -: . - - : ' . - ~ . . - - - - ~ -- - - •• I I I I ... : . - --- ' 1111---- .. ~ I • ■• ttiiitli i::fi Updated: 01/01/2026 The City of West Chicago aims to enhance transparency. By providing comprehensive information, including details on expenditure of tax dollars, the City seeks to empower residents and stakeholders to better understand and engage with the processes that contribute to their standard of living. Additional information about the City's operations can be found online at westchicago.org/transparency. ===== PDF PAGE 12 ===== June 24, 2026 The Honorable Mayor Daniel Bovey Members of the West Chicago City Council City Administrator Viviana Ramirez Residents 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, 2025, 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, 2025, 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 J TV 0 F WlEST C lCAGO WHERE HISTORY & PROGRESS MEET 475 Main Street West Chicago, Illinois 60185 T 630.293.2200 F 630.293.3028 wcstchicago.org Daniel Bovey MAYOi( Viviana Ramirez CIT\' AD~IINISTRATOR ===== PDF PAGE 13 ===== 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 $57 million in 2025. 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 and overseeing the day-to-day operations of the City. 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 residents are able to experience a high quality of life in an enviable environment. The most significant of these projects are outlined below: • City staff, with contractual assistance from industry experts, continued environmental cleanup at 135 W. Grand Lake Blvd and made substantial progress on soil remediation at 119 W. Washington St. Staff also collaborated on partner agency projects such as the West Branch DuPage River Trail Project led by the Forest Preserve District of DuPage County, and multiple Illinois Department of Transportation (IDOT) led resurfacing projects on IL-59, IL-38 and Gary’s Mill Road. • The Community Development Department oversaw several key capital and redevelopment projects, including the partial demolition and repair of the Washington Street Train Station, completed in August 2025 with 100% of the $100,000 cost covered by state funding. Additional demolitions along Main Street support future redevelopment and provide temporary flexible space for downtown events and programming. Community Park partial design was completed and permitting documents were prepared to position the project for 2026 construction. 4 ===== PDF PAGE 14 ===== • The City collaborated with consulting engineers to complete construction on multiple roadway projects. The projects included the MFT-funded 2025 Roadway Rehabilitation Project (3.23 miles). The City also used Economic Development Program Grant, Motor Fuel Tax, and Local funds to complete the Nuclear Drive and Northwest Avenue Reconstruction Project. The City also utilized local funds and CDBG grants to complete the Bishop Street and Brown Street Water Main and Streets Rehabilitation Project. FACTORS AFFECTING LOCAL FINANCIAL CONDITION Local Economy West Chicago has continued its transformation into a regional center for commerce and industry. The diversity of its retail and industrial tax base has helped reduce the City's dependence on external revenue sources and enhanced its long-term financial resilience. The City remains proactive in promoting economic development by pursuing new opportunities and cultivating partnerships with commercial and corporate developers and business owners, while maintaining strong relationships with existing businesses despite ongoing economic challenges. 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 ongoing challenge of increasing operating expenses, the City performs a thorough annual review of its budget and service delivery practices. This process helps identify efficiencies and alternative methods of providing services, allowing any savings achieved to be redirected toward other operational and infrastructure needs. Systematic Use of Fund Reserves – As part of its Policy, the City met its reserve target for the fiscal period ending December 31, 2025. 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 regularly evaluates potential new revenue sources to support the long-term delivery of essential services. Any new revenues implemented are consistent with the City Council's policy that, whenever practical, the costs of specific services should be borne by the individuals or entities that directly benefit from or require those services. Increased Economic Development Focus – The City's Economic Development Program is focused on strengthening and diversifying the sales tax, utility tax, and property tax bases. These efforts enhance the City's financial self-sufficiency by expanding local revenue sources and reducing reliance on external funding. 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. Policy and Decision Impacts on Financial Statements The following policies and decisions had significant impact on the City’s financial statements: 5 ===== PDF PAGE 15 ===== • Rising inflation, increasing material and contractual service costs, and ongoing supply chain challenges have significantly affected the cost and delivery timelines of the City's infrastructure projects. To help mitigate these impacts, the City will continue to aggressively pursue grant funding opportunities while maintaining a structured schedule of water and sewer rate adjustments. The majority of grant proceeds and additional utility revenues will be reinvested directly into the improvement and maintenance of the City's infrastructure. • As part of the 2025 Budget, the City funded and staffed the Business & Community Relations Department to advance economic development, communications, special events, cultural programming, and museum operations through a coordinated approach. This policy decision supported business attraction and retention, strengthened partnerships with residents and organizations, enhanced community events and programming, and helped showcase West Chicago as a destination for investment, recreation, and culture. • 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 2026. • The City amended its Budget Policy to establish the Downtown Revitalization Fund as a dedicated funding source for future downtown investment. Under the revised policy, General Fund surplus above the City's 35% reserve target for fiscal year 2025 will be transferred to the Downtown Revitalization Fund, providing resources for future improvements and reinvestment in one of the community's primary economic and civic hubs. • Efforts continued to strengthen downtown West Chicago through planning for the partially grant-funded Downtown Beautification and Modernization Project and expanded downtown programming designed to draw visitors, support local businesses, and create a more active public realm. These efforts reflect the City's continued focus on reinvestment, placemaking, and long-term economic vitality in the downtown area, while recognizing that business attraction and retention remain ongoing priorities. • The City continued its longstanding practice of modest annual property tax levy increases 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 The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of West Chicago for its annual comprehensive financial report for the fiscal year ended December 31, 2024. 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. 6 ===== PDF PAGE 16 ===== 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, Jacob Henderson Interim Finance Director 7 ===== PDF PAGE 17 ===== 8 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, 2024 ~P-~ Executive Director/CEO ===== PDF PAGE 18 ===== 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 19 ===== INDEPENDENT AUDITOR'S REPORT This section includes the opinion of the City’s independent auditing firm. 10 ===== PDF PAGE 20 ===== INDEPENDENT AUDITOR'S REPORT June 24, 2026 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, 2025, 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, 2025, 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 IA Lauterbach & Amen 668 N. River Road Naperville, IL 60563 630.393.1483 . . . ... . ===== PDF PAGE 21 ===== City of West Chicago, Illinois June 24, 2026 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 22 ===== City of West Chicago, Illinois June 24, 2026 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 24, 2026, 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 23 ===== MANAGEMENT'S DISCUSSION AND ANALYSIS 14 ===== PDF PAGE 24 ===== 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, 2025. 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 $8,785,071, or 16.2 percent and net position of business-type activities increased by $4,579,876, or 4.9 percent. • During the year, government-wide revenues for the primary government totaled $57,008,739, while expenses totaled $43,643,792, resulting in an increase to net position of $13,364,947. • The City’s net position totaled $160,655,050 on December 31, 2025, which includes $148,208,231 net investment in capital assets, $15,578,507 subject to external restrictions, and deficit $3,131,688 unrestricted net position. • The General Fund reported a decrease this year of $146,760 or 1.7 percent, resulting in an ending fund balance of $8,521,437. 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 manner 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). CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 15 ===== PDF PAGE 25 ===== 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 nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Community Park Fund, Downtown TIF #2 Fund, Motor Fuel Tax Fund, and Capital Improvement Fund which are considered major funds. Data from the other four 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. CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 16 ===== PDF PAGE 26 ===== 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 Fund and Sewerage Fund, 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. CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 17 ===== PDF PAGE 27 ===== 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 $160,655,050. Net Position Governmental Business-Type Activities Activities Totals 2025 2024 2025 2024 2025 2024 Current Assets $ 43,606,723 40,793,464 9,104,516 2,868,096 52,711,239 43,661,560 Capital Assets 56,671,428 52,898,165 93,482,947 94,586,801 150,154,375 147,484,966 Other Assets 564,309 — 565,107 — 1,129,416 — Total Assets 100,842,460 93,691,629 103,152,570 97,454,897 203,995,030 191,146,526 Deferred Outflows 4,020,880 7,105,745 791,816 1,489,873 4,812,696 8,595,618 Total Assets/Deferred Outflows 104,863,340 100,797,374 103,944,386 98,944,770 208,807,726 199,742,144 Noncurrent Liabilities 21,476,215 31,574,823 1,668,742 4,335,236 23,144,957 35,910,059 Other Liabilities 5,066,928 5,690,915 2,259,499 1,489,087 7,326,427 7,180,002 Total Liabilities 26,543,143 37,265,738 3,928,241 5,824,323 30,471,384 43,090,061 Deferred Inflows 15,302,965 9,299,475 2,378,327 62,505 17,681,292 9,361,980 Total Liabilities/Deferred Inflows 41,846,108 46,565,213 6,306,568 5,886,828 48,152,676 52,452,041 Net Position Net Investment in Capital Assets 54,979,797 51,819,765 93,228,434 94,586,801 148,208,231 146,406,566 Restricted 15,013,314 13,306,421 565,193 34,933 15,578,507 13,341,354 Unrestricted(Deficit) (6,975,879) (10,894,025) 3,844,191 (1,563,792) (3,131,688) (12,457,817) Total Net Position 63,017,232 54,232,161 97,637,818 93,057,942 160,655,050 147,290,103 A large portion of the City’s net position, $148,208,231, 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 residents; 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, $15,578,507, of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining deficit $3,131,688 represents unrestricted net position and may be used to meet the government’s ongoing obligations to residents and creditors. CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 18 ===== PDF PAGE 28 ===== GOVERNMENT-WIDE FINANCIAL ANALYSIS - Continued Changes in Net Position Governmental Business-Type Activities Activities Totals 2025 2024 2025 2024 2025 2024 Revenues Program Revenues Charges for Services $ 5,174,425 5,984,952 18,893,715 15,396,047 24,068,140 21,380,999 Operating Grants/Contributions 3,062,124 2,196,607 — — 3,062,124 2,196,607 Capital Grants/Contributions — — 600,000 750,000 600,000 750,000 General Revenues Property Tax 5,048,756 4,738,185 10,182 10,107 5,058,938 4,748,292 Other Taxes 683,500 716,132 — — 683,500 716,132 Sales and Use Taxes 13,685,441 12,087,235 — — 13,685,441 12,087,235 Income Taxes 4,619,340 4,349,779 — — 4,619,340 4,349,779 Replacement Taxes 243,494 301,030 — — 243,494 301,030 Utility Taxes 2,095,727 2,125,655 — — 2,095,727 2,125,655 Video Gaming Taxes 127,134 96,439 — — 127,134 96,439 ARPA — — — 3,649,246 — 3,649,246 Investment Income 884,705 801,731 — — 884,705 801,731 Miscellaneous 1,328,945 699,679 551,251 467,420 1,880,196 1,167,099 Total Revenues 36,953,591 34,097,424 20,055,148 20,272,820 57,008,739 54,370,244 Expenses General Government 8,835,208 9,574,640 — — 8,835,208 9,574,640 Public Safety 11,996,288 12,341,985 — — 11,996,288 12,341,985 Culture and Recreation 45,443 47,062 — — 45,443 47,062 Streets and Highways 7,276,581 7,681,942 — — 7,276,581 7,681,942 Interest on Long-Term Debt 15,000 15,000 — — 15,000 15,000 Waterworks — — 7,900,839 8,073,739 7,900,839 8,073,739 Sewerage — — 7,473,494 7,222,278 7,473,494 7,222,278 Commuter Parking — — 100,939 102,893 100,939 102,893 Total Expenses 28,168,520 29,660,629 15,475,272 15,398,910 43,643,792 45,059,539 Change in Net Position 8,785,071 4,436,795 4,579,876 4,873,910 13,364,947 9,310,705 Net Position - Beginning 54,232,161 49,795,366 93,057,942 88,184,032 147,290,103 137,979,398 Net Position - Ending 63,017,232 54,232,161 97,637,818 93,057,942 160,655,050 147,290,103 CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 19 ===== PDF PAGE 29 ===== GOVERNMENT-WIDE FINANCIAL ANALYSIS - Continued Net position of the City’s governmental activities increased by 16.2 percent ($63,017,232 in 2025 compared to $54,232,161 in 2024). Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints, totaled deficit $6,975,879 at December 31, 2025. Net position of business-type activities increased by 4.9 percent ($97,637,818 in 2025 compared to $93,057,942 in 2024). Governmental Activities Revenues for governmental activities totaled $36,953,591, while the cost of all governmental functions totaled $28,168,520. This results in an increase of $8,785,071. In 2024, revenues of $34,097,424 exceeded expenses of $29,660,629, resulting in a surplus of $4,436,795. The increase in the current year is due to the increase in tax and grant revenue collected. Revenue for sales and use taxes and operating grants/contributions, increased by $1,598,206 and $865,517 respectively. This increase was driven by continued commercial and residential growth throughout the City, which expanded the local tax base and generated additional economic activity. Ongoing development, the attraction of new businesses, and increased consumer spending contributed to higher taxable sales across a variety of sectors. The city was also the recipient of several one-time grants awarded throughout the fiscal year. These grants supported various capital and operational initiatives, resulting in a year-over-year increase. 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 Charges for Services 14.0% Operating Grants/Contributions 8.3% Property Tax 13.7% Other Taxes 1.8% Sales and Use Taxes 37.0% Income Taxes 12.5% Replacement Taxes 0.7% Utility Taxes 5.7% Video Gaming Taxes 0.3% Investment Income 2.4% Miscellaneous 3.6% CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 20 ===== PDF PAGE 30 ===== 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 Expenses Program Revenues General Government Public Safety Culture and Recreation Streets and Highways Interest on Long- Term Debt $— $5,000,000 $10,000,000 $15,000,000 Business-Type Activities Business-type activities posted total revenues of $20,055,148, while the cost of all business-type activities totaled $15,475,272. This results in an increase of $4,579,876. In 2024, revenues of $20,272,820 exceeded expenses of $15,398,910, resulting in a surplus of $4,873,910. The increase in the current year is due to the increase in charges for services which increased revenues by $3,497,668. This increase was primarily due to updated user fee schedules, higher utilization of certain services, and improved billing capture throughout the year. Expenses and Program Revenues - Business-Type Activities Expenses Program Revenues Waterworks Sewerage Commuter Parking $— $5,000,000 $10,000,000 $15,000,000 CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 21 - - I■ ■ ■ ■ ■ ===== PDF PAGE 31 ===== 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 $33,869,446, which is $3,167,379, or 10.3 percent, higher than last year’s total of $30,702,067. Of the $33,869,446 total, $7,805,152, or approximately 23.0 percent, of the fund balance constitutes unassigned fund balance. The General Fund is the chief operating fund of the City. At December 31, 2025, unassigned fund balance in the General Fund was $7,805,152, which represents 91.6 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 34.6 percent of total General Fund expenditures. The fund balance in the General Fund at year-end was $8,521,437, while the previous fiscal year reported a fund balance of $8,668,197. This is a decrease of $146,760, or 1.7 percent. The decrease is mainly because of an overall increase in interfund transfers that occurred at year-end, $2,300,000 to the newly created Downtown Revitalization Fund compared to last year where the General Fund had transfers out totaling $1,450,000. 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 $165,716 due to the addition of video gaming facility that increased the amount of gaming revenue and gaming terminal fees. In addition, an increase in charges for services and investment income of $2,702 and $76,337. The fund balance in the Downtown TIF #2 Fund which will be used for prospective development. It reported an increase of $76,157 for the year as a result of the revenue of $76,807 exceeding expenditures of $650, resulting in an ending balance of $138,277. Tax revenues for the year increased primarily due to growth in property tax revenues, which was driven by an approximate 10% increase in taxable property values resulting from continued strength in the local real estate market. The fund balance in the Motor Fuel Tax Fund reported a decrease of $1,441,887 for the year. This decrease is due to continued street improvements/projects. The fund balance in the Capital Improvement Fund at year-end was $8,370,450, while the previous fiscal year reported a fund balance of $5,921,804. This is an increase of $2,448,646, or 41.3 percent. Sales tax revenues increased by $933,984, or 16.5%, during the fiscal year 2025. The increase was primarily attributable to higher taxable retail sales activity within the City, reflecting continued economic growth, increased consumer spending, and inflationary impacts on the value of taxable goods and services. The City also continued to benefit from a diverse commercial tax base and strong sales tax collections throughout the year. CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 22 ===== PDF PAGE 32 ===== 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 $3,048,529, while the previous fiscal year reported an increase of $6,749,047. The increase is mainly due to the increase in charges for services of $1,765,096. The Sewerage Fund experienced an increase in net position of $1,537,077, while the previous fiscal year reported a decrease of $1,847,354. The increase 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 $5,730 while the previous fiscal year reported a decrease of $27,783. The decrease in current year is attributable to lower daily and quarterly parking activity. Total net position in the Proprietary Funds was $97,637,818 (net investment in capital assets, restricted, and unrestricted (deficit) at December 31, 2025. GENERAL FUND BUDGETARY HIGHLIGHTS The City Council made budget amendments to the General Fund during the year. General Fund actual revenues for the year totaled $24,720,473, compared to budgeted revenues of $23,651,600. Revenues for intergovernmental, charges for services, licenses and permits, investment income, and miscellaneous exceeded the budget by $965,089, $208,768, $34,914, $130,610, and $382,413 respectively. Total actual revenues exceeded the budgeted revenues by $1,068,873. The General Fund actual expenditures for the year were $1,239,367 less than budgeted ($22,567,233 actual compared to $23,806,600 budgeted). The General Fund's expenditures were lower than budget due to overall cost controlling measures. CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 23 ===== PDF PAGE 33 ===== CAPITAL ASSETS The City’s investment in capital assets for its governmental and business type activities as of December 31, 2025 was $150,154,375 (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 2025 2024 2025 2024 2025 2024 Land $ 20,218,128 20,218,128 28,040,111 28,040,111 48,258,239 48,258,239 Construction in Progress 1,550,698 1,027,809 3,002,668 1,825,656 4,553,366 2,853,465 Land Improvements 1,101,419 1,156,695 332,576 357,160 1,433,995 1,513,855 Buildings and Improvements 6,424,602 6,471,713 17,016,653 17,891,927 23,441,255 24,363,640 Machinery and Equipment 4,288,383 2,762,963 3,608,695 3,768,317 7,897,078 6,531,280 Infrastructure 23,088,198 21,260,857 41,482,244 42,703,630 64,570,442 63,964,487 Totals 56,671,428 52,898,165 93,482,947 94,586,801 150,154,375 147,484,966 This year's major additions included: Construction in Progress $ 2,696,217 Buildings and Improvements 152,268 Machinery and Equipment 2,071,700 Infrastructure 2,316,830 7,237,015 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. 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. CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 24 ===== PDF PAGE 34 ===== ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The 2025 overall inflation rate for the United States was 2.7%, while the inflation rate in Illinois and the broader local area stood at 2.7%. This marks a 2.8% 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 2026 General Fund, the amount available for appropriation is $24,125,889, reflecting a 2.01% increase from the final 2025 budget appropriation of $23,651,600. The City has budgeted increases in property taxes (3.85%). The City’s major initiatives for the 2026 budget include a continued focus on street resurfacing and the construction of community park The City is dedicated to sound financial stewardship and will continue seeking innovative approaches to ensure fiscal responsibility. When developing the fiscal year 2026 budget, elected and appointed officials considered several factors, including the economic environment. As of December 2025, DuPage County’s unemployment rate was 4.3%, while the statewide unemployment rate was 4.6%, and the national unemployment rate was 4.2%. West Chicago’s citywide unemployment rate was 5.4%, 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, 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. CITY OF WEST CHICAGO, ILLINOIS Management's Discussion and Analysis December 31, 2025 (Unaudited) 25 ===== PDF PAGE 35 ===== 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. 26 ===== PDF PAGE 36 ===== See Following Page CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position December 31, 2025 27 ===== PDF PAGE 37 ===== ASSETS Current Assets Cash and Investments $ 31,163,953 4,961,430 36,125,383 Receivables - Net of Allowances Taxes 5,357,792 13,333 5,371,125 Accounts — 3,846,103 3,846,103 Other 6,645,031 850 6,645,881 Due from Other Governments — 30,000 30,000 Prepaids/Inventories 439,947 252,800 692,747 Total Current Assets 43,606,723 9,104,516 52,711,239 Noncurrent Assets Capital Assets Nondepreciable 21,768,826 31,042,779 52,811,605 Depreciable 88,790,511 116,802,345 205,592,856 Accumulated Depreciation (53,887,909) (54,362,177) (108,250,086) Total Capital Assets 56,671,428 93,482,947 150,154,375 Other Assets Net Pension Asset - IMRF 564,309 565,107 1,129,416 Total Noncurrent Assets 57,235,737 94,048,054 151,283,791 Total Assets 100,842,460 103,152,570 203,995,030 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 49,614 49,686 99,300 Deferred Items - Police Pension 3,971,266 — 3,971,266 Deferred Items - ARO — 742,130 742,130 Total Deferred Outflows of Resources 4,020,880 791,816 4,812,696 Total Assets and Deferred Outflows of Resources 104,863,340 103,944,386 208,807,726 Primary Government Governmental Business-Type Activities Activities Totals CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position December 31, 2025 The notes to the financial statements are an integral part of this statement. 28 ===== PDF PAGE 38 ===== LIABILITIES Current Liabilities Accounts Payable $ 2,378,313 1,571,587 3,949,900 Accrued Payroll 650,170 195,651 845,821 Deposits Payable 1,158,491 — 1,158,491 Retainage Payable 112,094 254,513 366,607 Other Payables 160,643 100,351 260,994 Current Portion of Long-Term Liabilities 607,217 137,397 744,614 Total Current Liabilities 5,066,928 2,259,499 7,326,427 Noncurrent Liabilities Compensated Absences Payable 1,557,159 157,582 1,714,741 Net Pension Liability - Police Pension 18,373,673 — 18,373,673 Total OPEB Liability - RBP 1,470,383 661,160 2,131,543 Asset Retirement Obligation 75,000 850,000 925,000 Total Noncurrent Liabilities 21,476,215 1,668,742 23,144,957 Total Liabilities 26,543,143 3,928,241 30,471,384 DEFERRED INFLOWS OF RESOURCES Property Taxes 5,277,566 — 5,277,566 Deferred Items - IMRF 1,373,242 1,375,183 2,748,425 Deferred Items - Police Pension 6,421,252 — 6,421,252 Deferred Items - RBP 2,230,905 1,003,144 3,234,049 Total Deferred Inflows of Resources 15,302,965 2,378,327 17,681,292 Total Liabilities and Deferred Inflows of Resources 41,846,108 6,306,568 48,152,676 NET POSITION Net Investment in Capital Assets 54,979,797 93,228,434 148,208,231 Restricted Motor Fuel Tax 4,609,280 — 4,609,280 Public Safety 281,888 — 281,888 Property Taxes - TIF 738,647 — 738,647 Community Park Projects 6,519,190 — 6,519,190 Downtown Revitalization 2,300,000 — 2,300,000 Sewerage — 86 86 Illinois Municipal Retirement 564,309 565,107 1,129,416 Unrestricted (Deficit) (6,975,879) 3,844,191 (3,131,688) Total Net Position 63,017,232 97,637,818 160,655,050 Primary Government Governmental Business-Type Activities Activities Totals The notes to the financial statements are an integral part of this statement. 29 ===== PDF PAGE 39 ===== Program Revenues Charges Operating Capital for Grants/ Grants/ Expenses Services Contributions Contributions Governmental Activities General Government $ 8,835,208 2,562,442 — — Public Safety 11,996,288 1,908,633 75,742 — Culture and Recreation 45,443 60,750 — — Streets and Highways 7,276,581 642,600 2,986,382 — Interest on Long-Term Debt 15,000 — — — Total Governmental Activities 28,168,520 5,174,425 3,062,124 — Business-Type Activities Waterworks 7,900,839 10,021,453 — 600,000 Sewerage 7,473,494 8,781,808 — — Commuter Parking 100,939 90,454 — — Total Business-Type Activities 15,475,272 18,893,715 — 600,000 Total Primary Government 43,643,792 24,068,140 3,062,124 600,000 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 Investment Income Miscellaneous Change in Net Position Net Position - Beginning Net Position - Ending CITY OF WEST CHICAGO, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 30 ===== PDF PAGE 40 ===== Net (Expenses)/Revenues Primary Government Governmental Business-Type Activities Activities Totals (6,272,766) — (6,272,766) (10,011,913) — (10,011,913) 15,307 — 15,307 (3,647,599) — (3,647,599) (15,000) — (15,000) (19,931,971) — (19,931,971) — 2,720,614 2,720,614 — 1,308,314 1,308,314 — (10,485) (10,485) — 4,018,443 4,018,443 (19,931,971) 4,018,443 (15,913,528) 5,048,756 10,182 5,058,938 482,289 — 482,289 2,095,727 — 2,095,727 162,696 — 162,696 38,515 — 38,515 13,685,441 — 13,685,441 4,619,340 — 4,619,340 243,494 — 243,494 127,134 — 127,134 884,705 275,802 1,160,507 1,328,945 275,449 1,604,394 28,717,042 561,433 29,278,475 8,785,071 4,579,876 13,364,947 54,232,161 93,057,942 147,290,103 63,017,232 97,637,818 160,655,050 The notes to the financial statements are an integral part of this statement. 31 ===== PDF PAGE 41 ===== Special Community General Park ASSETS Cash and Investments $ 6,867,558 6,519,190 Receivables - Net of Allowances Property Taxes 5,149,612 — Other 3,591,273 — Prepaids/Inventories 434,397 — Total Assets 16,042,840 6,519,190 LIABILITIES Accounts Payable 583,235 — Accrued Payroll 630,065 — Deposits Payable 1,158,491 — Retainage Payable — — Other Payables — — Total Liabilities 2,371,791 — DEFERRED INFLOWS OF RESOURCES Property Taxes 5,149,612 — Total Liabilities and Deferred Inflows of Resources 7,521,403 — FUND BALANCES Nonspendable 434,397 — Restricted 281,888 6,519,190 Assigned — — Unassigned 7,805,152 — Total Fund Balances 8,521,437 6,519,190 Total Liabilities, Deferred Inflows of Resources and Fund Balances 16,042,840 6,519,190 CITY OF WEST CHICAGO, ILLINOIS Balance Sheet - Governmental Funds December 31, 2025 The notes to the financial statements are an integral part of this statement. 32 ===== PDF PAGE 42 ===== Revenue Capital Motor Projects Downtown Fuel Capital TIF #2 Tax Improvement Nonmajor Totals 138,277 3,791,124 7,985,614 5,862,190 31,163,953 80,227 — — 127,953 5,357,792 — 1,033,697 2,020,061 — 6,645,031 — — 5,550 — 439,947 218,504 4,824,821 10,011,225 5,990,143 43,606,723 — 215,541 1,428,160 151,377 2,378,313 — — 20,105 — 650,170 — — — — 1,158,491 — — 112,094 — 112,094 80,227 — 80,416 — 160,643 80,227 215,541 1,640,775 151,377 4,459,711 — — — 127,954 5,277,566 80,227 215,541 1,640,775 279,331 9,737,277 — — 5,550 — 439,947 138,277 4,609,280 — 2,900,370 14,449,005 — — 8,364,900 2,810,442 11,175,342 — — — — 7,805,152 138,277 4,609,280 8,370,450 5,710,812 33,869,446 218,504 4,824,821 10,011,225 5,990,143 43,606,723 The notes to the financial statements are an integral part of this statement. 33 ===== PDF PAGE 43 ===== Total Governmental Fund Balances $ 33,869,446 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. 56,671,428 A net pension asset is not considered to represent a financial resource and therefore is not reported in the funds. Net Pension Asset - IMRF 564,309 Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF (1,323,628) Deferred Items - Police Pension (2,449,986) Deferred Items - RBP (2,230,905) Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated Absences Payable (1,946,449) Net Pension Liability - Police Pension (18,373,673) Total OPEB Liability - RBP (1,688,310) Asset Retirement Obligation (75,000) Net Position of Governmental Activities 63,017,232 CITY OF WEST CHICAGO, ILLINOIS Reconciliation of the Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities December 31, 2025 The notes to the financial statements are an integral part of this statement. 34 ===== PDF PAGE 44 ===== See Following Page CITY OF WEST CHICAGO, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2025 35 ===== PDF PAGE 45 ===== Special Community General Park Revenues Taxes $ 6,898,186 — Intergovernmental 12,018,189 127,134 Charges for Services 2,778,968 60,750 Licenses and Permits 738,914 — Fines and Forfeitures 953,193 — Investment Income 230,610 140,881 Miscellaneous 1,102,413 — Total Revenues 24,720,473 328,765 Expenditures General Government 8,895,278 — Public Safety 13,216,153 — Capital Outlay 455,802 163,049 Total Expenditures 22,567,233 163,049 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,153,240 165,716 Other Financing Sources (Uses) Disposal of Capital Assets — — Transfers In — — Transfers Out (2,300,000) — (2,300,000) — Net Change in Fund Balances (146,760) 165,716 Fund Balances - Beginning 8,668,197 6,353,474 Fund Balances - Ending 8,521,437 6,519,190 CITY OF WEST CHICAGO, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 36 ===== PDF PAGE 46 ===== Revenue Capital Motor Projects Downtown Fuel Capital TIF #2 Tax Improvements Nonmajor Totals 75,434 — 729,512 124,851 7,827,983 — 2,425,692 7,166,518 — 21,737,533 — — — 642,600 3,482,318 — — — — 738,914 — — — — 953,193 1,373 160,546 224,723 126,572 884,705 — — 225,079 1,453 1,328,945 76,807 2,586,238 8,345,832 895,476 36,953,591 650 137,422 — — 9,033,350 — — — — 13,216,153 — 3,890,703 5,897,186 1,132,867 11,539,607 650 4,028,125 5,897,186 1,132,867 33,789,110 76,157 (1,441,887) 2,448,646 (237,391) 3,164,481 — — — 2,898 2,898 — — — 2,300,000 2,300,000 — — — — (2,300,000) — — — 2,302,898 2,898 76,157 (1,441,887) 2,448,646 2,065,507 3,167,379 62,120 6,051,167 5,921,804 3,645,305 30,702,067 138,277 4,609,280 8,370,450 5,710,812 33,869,446 The notes to the financial statements are an integral part of this statement. 37 ===== PDF PAGE 47 ===== Net Change in Fund Balances - Total Governmental Funds $ 3,167,379 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 5,749,493 Depreciation Expense (1,976,230) Disposals - Cost (63,888) Disposals - Accumulated Depreciation 63,888 An addition to a net pension asset is not considered to be an increase in a financial asset in the governmental funds. Change in Net Pension Asset - IMRF 2,120,970 The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF (1,968,501) Change in Deferred Items - Police Pension (4,607,549) Change in Deferred Items - RBP (2,230,905) 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 17,324 Change in Net Pension Liability - Police Pension 6,190,121 Change in Total OPEB Liability - RBP 2,337,969 Amortization of Asset Retirement Obligation (15,000) Changes in Net Position of Governmental Activities 8,785,071 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, 2025 The notes to the financial statements are an integral part of this statement. 38 ===== PDF PAGE 48 ===== See Following Page CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2025 39 ===== PDF PAGE 49 ===== ASSETS Current Assets Cash and Investments $ 4,029,155 758,501 173,774 4,961,430 Receivables - Net of Allowances Property Taxes — 13,333 — 13,333 Accounts 1,966,605 1,879,498 — 3,846,103 Other — — 850 850 Due from Other Governments 30,000 — — 30,000 Prepaids 142,800 110,000 — 252,800 Total Current Assets 6,168,560 2,761,332 174,624 9,104,516 Noncurrent Assets Capital Assets Nondepreciable 29,118,477 1,876,052 48,250 31,042,779 Depreciable 92,565,658 23,376,310 860,377 116,802,345 Accumulated Depreciation (43,214,661) (10,543,816) (603,700) (54,362,177) Total Capital Assets 78,469,474 14,708,546 304,927 93,482,947 Other Assets Net Pension Asset - IMRF 320,384 240,733 3,990 565,107 Total Noncurrent Assets 78,789,858 14,949,279 308,917 94,048,054 Total Assets 84,958,418 17,710,611 483,541 103,152,570 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 28,169 21,166 351 49,686 Deferred Items - ARO 742,130 — — 742,130 Total Deferred Outflows of Resources 770,299 21,166 351 791,816 Total Assets and Deferred Outflows of Resources 85,728,717 17,731,777 483,892 103,944,386 Nonmajor Commuter Waterworks Sewerage Parking Totals CITY OF WEST CHICAGO, ILLINOIS Statement of Net Position - Proprietary Funds December 31, 2025 The notes to the financial statements are an integral part of this statement. 40 ===== PDF PAGE 50 ===== LIABILITIES Current Liabilities Accounts Payable $ 550,479 1,014,579 6,529 1,571,587 Accrued Payroll 110,769 83,556 1,326 195,651 Retainage Payable 103,607 150,906 — 254,513 Other Payables — 82,501 17,850 100,351 Current Portion of Noncurrent Liabilities 87,410 49,987 — 137,397 Total Current Liabilities 852,265 1,381,529 25,705 2,259,499 Noncurrent Liabilities Compensated Absences Payable 153,637 3,945 — 157,582 Total OPEB Liability - RBP 330,580 330,580 — 661,160 Asset Retirement Obligation 850,000 — — 850,000 Total Noncurrent Liabilities 1,334,217 334,525 — 1,668,742 Total Liabilities 2,186,482 1,716,054 25,705 3,928,241 DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF 779,652 585,823 9,708 1,375,183 Deferred Items - RBP 501,572 501,572 — 1,003,144 Total Deferred Inflows of Resources 1,281,224 1,087,395 9,708 2,378,327 Total Liabilities and Deferred Inflows of Resources 3,467,706 2,803,449 35,413 6,306,568 NET POSITION Net Investment in Capital Assets 78,214,961 14,708,546 304,927 93,228,434 Restricted - Sewerage — 86 — 86 Restricted - Illinois Municipal Retirement Fund 320,384 240,733 3,990 565,107 Unrestricted (Deficit) 3,725,666 (21,037) 139,562 3,844,191 Total Net Position 82,261,011 14,928,328 448,479 97,637,818 Nonmajor Commuter Waterworks Sewerage Parking Totals The notes to the financial statements are an integral part of this statement. 41 ===== PDF PAGE 51 ===== Nonmajor Commuter Waterworks Sewerage Parking Totals Operating Revenues Charges for Services $ 10,017,068 8,772,012 90,454 18,879,534 Operating Expenses Operations 5,734,314 7,050,776 77,232 12,862,322 Depreciation and Amortization 2,166,525 422,718 23,707 2,612,950 Total Operating Expenses 7,900,839 7,473,494 100,939 15,475,272 Operating Income (Loss) 2,116,229 1,298,518 (10,485) 3,404,262 Nonoperating Revenues Connection Fees 4,385 9,796 — 14,181 Property Taxes — 10,182 — 10,182 Investment Income 136,510 134,717 4,575 275,802 Other Income 191,405 83,864 180 275,449 332,300 238,559 4,755 575,614 Income (Loss) Before Capital Grants 2,448,529 1,537,077 (5,730) 3,979,876 Capital Grants 600,000 — — 600,000 Change in Net Position 3,048,529 1,537,077 (5,730) 4,579,876 Net Position - Beginning 79,212,482 13,391,251 454,209 93,057,942 Net Position - Ending 82,261,011 14,928,328 448,479 97,637,818 CITY OF WEST CHICAGO, ILLINOIS Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds For the Fiscal Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 42 ===== PDF PAGE 52 ===== Commuter Waterworks Sewerage Parking Totals Cash Flows from Operating Activities Receipts from Customers and Users $ 9,414,103 7,905,929 93,795 17,413,827 Payments to Employees (1,963,735) (2,142,586) — (4,106,321) Payments to Suppliers (3,718,265) (5,111,622) (78,248) (8,908,135) 3,732,103 651,721 15,547 4,399,371 Cash Flows from Noncapital Financing Activities Property Taxes — 10,182 — 10,182 Cash Flows from Capital and Related Financing Activities Purchase of Capital Assets (1,216,781) (270,741) — (1,487,522) Capital Grants 600,000 — — 600,000 (616,781) (270,741) — (887,522) Cash Flows from Investing Activities Investment Income 136,510 134,717 4,575 275,802 Net Change in Cash and Cash Equivalents 3,251,832 525,879 20,122 3,797,833 Cash and Cash Equivalents - Beginning 777,323 232,622 153,652 1,163,597 Cash and Cash Equivalents - Ending 4,029,155 758,501 173,774 4,961,430 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) 2,116,229 1,298,518 (10,485) 3,404,262 Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization 2,166,525 422,718 23,707 2,612,950 Other Income 195,790 93,660 180 289,630 (Increase) Decrease in Current Assets (798,755) (959,743) 3,161 (1,755,337) Increase (Decrease) in Current Liabilities 52,314 (203,432) (1,016) (152,134) Net Cash Provided by Operating Activities 3,732,103 651,721 15,547 4,399,371 CITY OF WEST CHICAGO, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 43 ===== PDF PAGE 53 ===== Pension Trust Police Pension ASSETS Cash and Cash Equivalents $ 1,268,253 Investments Illinois Police Officers' Pension Investment Fund 59,570,796 Prepaids 6,623 Total Assets 60,845,672 LIABILITIES Accounts Payable 4,069 NET POSITION Net Position Restricted for Pensions 60,841,603 CITY OF WEST CHICAGO, ILLINOIS Statement of Fiduciary Net Position December 31, 2025 The notes to the financial statements are an integral part of this statement. 44 ===== PDF PAGE 54 ===== Pension Trust Police Pension Additions Contributions - Employer $ 3,567,300 Contributions - Plan Members 520,197 Total Contributions 4,087,497 Investment Income Interest Earned 315,272 Net Change in Fair Value 8,804,867 9,120,139 Less Investment Expenses (53,357) Net Investment Income 9,066,782 Total Additions 13,154,279 Deductions Administration 74,173 Benefits and Refunds 3,433,382 Total Deductions 3,507,555 Change in Fiduciary Net Position 9,646,724 Net Position - Beginning 51,194,879 Net Position - Ending 60,841,603 CITY OF WEST CHICAGO, ILLINOIS Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 45 ===== PDF PAGE 55 ===== 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 46 ===== PDF PAGE 56 ===== 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 47 ===== PDF PAGE 57 ===== 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 three 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 48 ===== PDF PAGE 58 ===== 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 49 ===== PDF PAGE 59 ===== 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 50 ===== PDF PAGE 60 ===== 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. Prepaids/Inventories Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids/ inventories 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 - $25,000 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. 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 51 ===== PDF PAGE 61 ===== NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE/ NET POSITION - Continued Capital Assets - Continued 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 20 Years Buildings and Improvements 50 Years Machinery and Equipment 5 - 15 Years Infrastructure 65 Years Deferred Outflows/Inflows of Resources Deferred outflow/inflow of resources represents 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 52 ===== PDF PAGE 62 ===== 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. 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 53 ===== PDF PAGE 63 ===== NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY BUDGETARY INFORMATION - Continued 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. EXCESS OF ACTUAL EXPENDITURES OVER BUDGET IN INDIVIDUAL FUND The following fund had an excess of actual expenditures over budget as of the date of this report: Fund Excess Capital Equipment Replacement $ 567 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. City Deposits and Investments. At year-end, the carrying amount of the City’s deposits for governmental and business- type activities totaled $13,015,534 and the bank balances totaled $13,091,283. Additionally, at year-end the City had $22,809,835 invested in the Illinois Funds and $300,014 invested in the Illinois Metropolitan Investment Fund, which are both measured at net asset value per share as determined by the pool. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 54 ===== PDF PAGE 64 ===== NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued City - Continued Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy states that the investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements which may be reasonably anticipated in any City Fund. The average maturity for the Illinois Funds is less than one year and the Illinois Metropolitan Investment Fund is less than one year to three years. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Besides investing in instruments authorized under State Statute, the City’s investment policy does not further limit investment choices. The City limits its exposure to credit risk by primarily investing in Illinois Funds which were rated 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). 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 55 ===== PDF PAGE 65 ===== NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued DEPOSITS AND INVESTMENTS - Continued Police Pension Fund - Continued 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 $1,268,253 and the bank balances totaled $1,272,328. Investments. At year-end the Fund has $59,570,796 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, 2025, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 17.79%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 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, 2025, the City rebated a total of $116,545 in taxes under this agreement. PROPERTY TAXES Property taxes for 2024 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 56 ===== PDF PAGE 66 ===== NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued INTERFUND TRANSFERS Interfund transfers for the fiscal year consisted of the following: Transfer In Transfer Out Amount Nonmajor Governmental General $ 2,300,000 Transfers are used to establish the Downtown Revitalization Fund. 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 1,027,809 1,519,205 996,316 1,550,698 21,245,937 1,519,205 996,316 21,768,826 Depreciable Land Improvements 2,040,245 — — 2,040,245 Buildings and Improvements 9,136,385 152,268 — 9,288,653 Machinery and Equipment 8,529,215 1,916,845 26,891 10,419,169 Infrastructure 63,921,950 3,157,491 36,997 67,042,444 83,627,795 5,226,604 63,888 88,790,511 Less Accumulated Depreciation Land Improvements 883,550 55,276 — 938,826 Buildings and Improvements 2,664,672 199,379 — 2,864,051 Machinery and Equipment 5,766,252 391,425 26,891 6,130,786 Infrastructure 42,661,093 1,330,150 36,997 43,954,246 51,975,567 1,976,230 63,888 53,887,909 Total Net Depreciable Capital Assets 31,652,228 3,250,374 — 34,902,602 Total Net Capital Assets 52,898,165 4,769,579 996,316 56,671,428 Depreciation expense was charged to governmental activities as follows: General Government $ 81,613 Public Safety 81,424 Culture and Recreation 45,443 Streets and Highways 1,767,750 1,976,230 CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 57 ===== PDF PAGE 67 ===== 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 1,825,656 1,177,012 — 3,002,668 29,865,767 1,177,012 — 31,042,779 Depreciable Capital Assets Land Improvements 1,253,338 — — 1,253,338 Buildings and Improvements 31,554,479 — — 31,554,479 Machinery and Equipment 10,341,203 154,855 30,888 10,465,170 Infrastructure 73,373,703 155,655 — 73,529,358 116,522,723 310,510 30,888 116,802,345 Less Accumulated Depreciation Land Improvements 896,178 24,584 — 920,762 Buildings and Improvements 13,662,552 875,274 — 14,537,826 Machinery and Equipment 6,572,886 314,477 30,888 6,856,475 Infrastructure 30,670,073 1,377,041 — 32,047,114 51,801,689 2,591,376 30,888 54,362,177 Total Net Depreciable Capital Assets 64,721,034 (2,280,866) — 62,440,168 Total Net Capital Assets 94,586,801 (1,103,854) — 93,482,947 Depreciation expense was charged to business-type activities as follows: Waterworks $ 2,144,951 Sewerage 422,718 Commuter Parking 23,707 2,591,376 LONG-TERM OBLIGATIONS 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 58 ===== PDF PAGE 68 ===== NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued LONG-TERM OBLIGATIONS - Continued Legal Debt Margin Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property…(2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent:…indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum…shall not be included in the foregoing percentage amounts.” To date the Illinois General Assembly has set no limits for home rule municipalities. The City is a home rule municipality. Long-Term Liability 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 $ 1,963,773 — 17,324 1,946,449 389,290 Net Pension Liability/(Asset) - IMRF 1,556,661 — 2,120,970 (564,309) — Net Pension Liability - Police Pension 24,563,794 — 6,190,121 18,373,673 — Total OPEB Liability - RBP 4,026,279 — 2,337,969 1,688,310 217,927 Asset Retirement Obligation 75,000 — — 75,000 — 32,185,507 — 10,666,384 21,519,123 607,217 Business-Type Activities Compensated Absences 178,312 18,665 — 196,977 39,395 Net Pension Liability/(Asset) - IMRF 1,602,022 — 2,167,129 (565,107) — Total OPEB Liability - RBP 1,840,132 — 1,080,970 759,162 98,002 Asset Retirement Obligation 850,000 — — 850,000 — 4,470,466 18,665 3,248,099 1,241,032 137,397 Compensated absences are reported as the net change amount for the fiscal year. For governmental activities, the General Fund makes payments on the net pension liabilities/(asset), the total OPEB liability, and the asset retirement obligation. For business-type activities, net pension liability/(asset) and the total OPEB liability are liquidated from the Waterworks, Sewerage, and Commuter Parking Funds. The asset retirement obligation is being liquidated by the Waterworks Fund. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 59 ===== PDF PAGE 69 ===== 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 $ 434,397 — — — 5,550 — 439,947 Restricted Motor Fuel Tax — — — 4,609,280 — — 4,609,280 Public Safety 281,888 — — — — — 281,888 Property Taxes - TIF — — 138,277 — — 600,370 738,647 Community Park Projects — 6,519,190 — — — — 6,519,190 Downtown Revitalization — — — — — 2,300,000 2,300,000 281,888 6,519,190 138,277 4,609,280 — 2,900,370 14,449,005 Assigned Capital Projects — — — — 8,364,900 2,810,442 11,175,342 Unassigned 7,805,152 — — — — — 7,805,152 Total Fund Balances 8,521,437 6,519,190 138,277 4,609,280 8,364,900 5,710,812 33,869,446 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 60 ===== PDF PAGE 70 ===== 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, 2025: Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 56,671,428 Less Capital Related Debt: Capital Related Accounts Payable (1,579,537) Retainage Payable (112,094) Net Investment in Capital Assets 54,979,797 Business-Type Activities Capital Assets - Net of Accumulated Depreciation $ 93,482,947 Less Capital Related Debt: Retainage Payable (254,513) Net Investment in Capital Assets 93,228,434 CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 61 ===== PDF PAGE 71 ===== 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 62 ===== PDF PAGE 72 ===== 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: Net Pension Deferred Outflows Deferred Inflows Pension Liability/ Expense (Asset) IMRF $ 299,804 (1,129,416) 99,300 2,748,425 Police Pension 1,984,728 18,373,673 3,971,266 6,421,252 2,284,532 17,244,257 4,070,566 9,169,677 CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 63 ===== PDF PAGE 73 ===== 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 64 ===== PDF PAGE 74 ===== 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, 2025, the measurement date,the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 124 Inactive Plan Members Entitled to but not yet Receiving Benefits 65 Active Plan Members 74 Total 263 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, 2025, the City’s contribution was 9.10% of covered payroll. Net Pension Liability/(Asset). The City’s net pension liability/(asset) was measured as of December 31, 2025. The total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability/(asset) were determined by an actuarial valuation performed, as of December 31, 2025, 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% CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 65 ===== PDF PAGE 75 ===== 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 24.00% 4.75% Domestic Equities 32.50% 7.35% International Equities 18.00% 7.45% Real Estate 10.50% 6.25% Blended 14.00% 3.90% - 8.50% Cash and Cash Equivalents 1.00% 3.00% 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 66 ===== PDF PAGE 76 ===== 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/(asset) to changes in the discount rate. The table below presents the net pension liability/(asset) of the City calculated using the discount rate as well as what the City’s net pension liability/(asset) would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Net Pension Liability/(Asset) $ 4,380,827 (1,129,416) (5,508,745) Changes in the Net Pension Liability/(Asset) Total Net Pension Pension Plan Fiduciary Liability/ Liability Net Position (Asset) (A) (B) (A) - (B) Balances at December 31, 2024 $ 46,841,507 43,682,824 3,158,683 Changes for the Year: Service Cost 615,724 — 615,724 Interest on the Total Pension Liability 3,315,394 — 3,315,394 Difference Between Expected and Actual Experience of the Total Pension Liability (98,997) — (98,997) Changes of Assumptions — — — Contributions - Employer — 630,241 (630,241) Contributions - Employees — 334,006 (334,006) Net Investment Income — 6,954,579 (6,954,579) Benefit Payments, Including Refunds of Employee Contributions (2,839,587) (2,839,587) — Other (Net Transfer) — 201,394 (201,394) Net Changes 992,534 5,280,633 (4,288,099) Balances at December 31, 2025 47,834,041 48,963,457 (1,129,416) CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 67 ===== PDF PAGE 77 ===== 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, 2025, the City recognized pension expense of $299,804. At December 31, 2025, 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 $ 99,300 (130,482) (31,182) Change in Assumptions — (4,663) (4,663) Net Difference Between Projected and Actual Earnings on Pension Plan Investments — (2,613,280) (2,613,280) Total Deferred Amounts Related to IMRF 99,300 (2,748,425) (2,649,125) 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 2026 $ 573,611 2027 (1,406,752) 2028 (1,046,333) 2029 (769,651) 2030 — Thereafter — Totals (2,649,125) CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 68 ===== PDF PAGE 78 ===== 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, 2025, 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 16 Active Plan Members 46 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 69 ===== PDF PAGE 79 ===== 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, 2025, the City’s contribution was 65.82% 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, 2025, 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. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 70 ===== PDF PAGE 80 ===== 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 $ 29,912,016 18,373,673 8,993,106 Changes in the Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B) Balances at December 31, 2024 $ 75,758,673 51,194,879 24,563,794 Changes for the Year: Service Cost 1,481,378 — 1,481,378 Interest on the Total Pension Liability 4,848,185 — 4,848,185 Changes of Benefit Terms — — — Difference Between Expected and Actual Experience of the Total Pension Liability 560,422 — 560,422 Changes of Assumptions — — — Contributions - Employer — 3,567,300 (3,567,300) Contributions - Employees — 520,197 (520,197) Net Investment Income — 9,066,782 (9,066,782) Benefit Payments, Including Refunds of Employee Contributions (3,433,382) (3,433,382) — Other (Net Transfer) — (74,173) 74,173 Net Changes 3,456,603 9,646,724 (6,190,121) Balances at December 31, 2025 79,215,276 60,841,603 18,373,673 CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 71 ===== PDF PAGE 81 ===== 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, 2025, the City recognized pension expense of $1,984,728. At December 31, 2025, 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 $ 3,002,929 (1,425,239) 1,577,690 Change in Assumptions 968,337 (432,418) 535,919 Net Difference Between Projected and Actual Earnings on Pension Plan Investments — (4,563,595) (4,563,595) Total Deferred Amounts Related to Police Pension 3,971,266 (6,421,252) (2,449,986) 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 2026 $ 793,212 2027 (1,157,917) 2028 (838,244) 2029 (1,247,037) 2030 — Thereafter — Total (2,449,986) CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 72 ===== PDF PAGE 82 ===== 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, 2025, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 19 Inactive Plan Members Entitled to but not yet Receiving Benefits — Active Plan Members 80 Total 99 Total OPEB Liability The City’s total OPEB liability was measured as of December 31, 2025, and was determined by an actuarial valuation as of December 31, 2024. Actuarial Assumptions and Other Inputs. The total OPEB liability in the December 31, 2024 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Salary Increases 3.00% Discount Rate 4.83% Healthcare Cost Trend Rates 8.38% - 8.82% for 2025, Decreasing to an Ultimate Rate of 5.00% for 2035 and Later Years Retirees' Share of Benefit-Related Costs 100% of Projected Health Insurance Premiums for Retirees CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 73 ===== PDF PAGE 83 ===== 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, 2024 $ 5,866,411 Changes for the Year: Service Cost 241,452 Interest on the Total OPEB Liability 232,905 Changes of Benefit Terms — Difference Between Expected and Actual Experience (3,559,645) Changes of Assumptions or Other Inputs (17,722) Benefit Payments (315,929) Net Changes (3,418,939) Balance at December 31, 2025 2,447,472 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The discount rate used to measure the total pension liability was 4.83%, while the prior valuation used 4.08%. 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 (3.83%) (4.83%) (5.83%) Total OPEB Liability $ 2,645,269 2,447,472 2,271,687 CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 74 ===== PDF PAGE 84 ===== NOTE 4 - OTHER INFORMATION - Continued OTHER POST-EMPLOYMENT BENEFITS - Continued 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 $ 2,234,306 2,447,472 2,695,006 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2025, the City recognized OPEB expense of $131,039. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Totals Difference Between Expected and Actual Experience $ — (3,218,028) (3,218,028) Change in Assumptions — (16,021) (16,021) Net Difference Between Projected and Actual — — — Total Expense to be Recognized in Future Periods — (3,234,049) (3,234,049) Total Deferred Amounts Related to OPEB — (3,234,049) (3,234,049) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 75 ===== PDF PAGE 85 ===== NOTE 4 - OTHER INFORMATION - Continued OTHER POST-EMPLOYMENT BENEFITS - Continued OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB - Continued Net Deferred Fiscal (Inflows) Year of Resources 2026 $ (343,318) 2027 (343,318) 2028 (343,318) 2029 (343,318) 2030 (343,318) Thereafter (1,517,459) Total (3,234,049) SUBSEQUENT EVENTS On April 7, 2026, the City issued $9,495,000 of General Obligation Bonds, Series 2026. The bonds bear interest at a rate of 4.00% - 5.00% and are due in annual installments of $305,00 - $680,000 with a maturity date of December 30, 2045. CITY OF WEST CHICAGO, ILLINOIS Notes to the Financial Statements December 31, 2025 76 ===== PDF PAGE 86 ===== 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 Measurement 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. 77 ===== PDF PAGE 87 ===== Contributions in Relation to Actuarially the Actuarially Contribution Contributions as Fiscal Determined Determined Excess/ Covered a Percentage of Year Contribution Contribution (Deficiency) Payroll Covered Payroll 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% 2025 630,241 630,241 — 6,925,728 9.10% Notes to the Required Supplementary Information: Actuarial Cost Method Aggregate Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 18 Years Asset Valuation Method 5-Year Smoothed Fair Value Inflation 2.25% Salary Increases 2.85% 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 2023 valuation pursuant to an experience study of the period 2020-2022. Mortality For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 108%) 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. CITY OF WEST CHICAGO, ILLINOIS Illinois Municipal Retirement Fund Schedule of Employer Contributions - Last Ten Fiscal Years December 31, 2025 78 ===== PDF PAGE 88 ===== Contributions in Relation to Actuarially the Actuarially Contribution Contributions as Fiscal Determined Determined Excess/ Covered a Percentage of Year Contribution Contribution (Deficiency) Payroll Covered Payroll 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% 2025 3,439,223 3,567,300 128,077 5,420,150 65.82% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 100% Funded over 20 Years Asset Valuation Method 5-Year Smoothed Fair Value Inflation 2.25% Salary Increases 3.75% - 12.23% Investment Rate of Return 7.00% Retirement Age See the Notes to the Financial Statements Mortality Pub-2010 Adjusted for Plan Status, Demographics, and Illinois Public Pension Data, as Described CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Schedule of Employer Contributions - Last Ten Fiscal Years December 31, 2025 79 ===== PDF PAGE 89 ===== See Following Page CITY OF WEST CHICAGO, ILLINOIS Illinois Municipal Retirement Fund Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Measurement Years December 31, 2025 80 ===== PDF PAGE 90 ===== 12/31/2016 12/31/2017 12/31/2018 Total Pension Liability Service Cost $ 563,551 620,392 566,525 Interest 2,455,010 2,609,972 2,599,095 Differences Between Expected and Actual Experience 616,330 (516,181) 89,045 Change of Assumptions (126,634) (1,103,990) 1,066,640 Benefit Payments, Including Refunds of Member Contributions (1,553,071) (1,650,895) (1,805,678) Net Change in Total Pension Liability 1,955,186 (40,702) 2,515,627 Total Pension Liability - Beginning 33,359,690 35,314,876 35,274,174 Total Pension Liability - Ending 35,314,876 35,274,174 37,789,801 Plan Fiduciary Net Position Contributions - Employer $ 760,973 725,095 748,485 Contributions - Members 254,980 262,899 271,408 Net Investment Income 1,966,231 5,355,309 (1,942,525) Benefit Payments, Including Refunds of Member Contributions (1,553,071) (1,650,895) (1,805,678) Other (Net Transfer) 259,549 (416,512) 478,710 Net Change in Plan Fiduciary Net Position 1,688,662 4,275,896 (2,249,600) Plan Net Position - Beginning 28,363,653 30,052,315 34,328,211 Plan Net Position - Ending 30,052,315 34,328,211 32,078,611 Employer's Net Pension Liability/(Asset) $ 5,262,561 945,963 5,711,190 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 85.10% 97.32% 84.89% Covered Payroll $ 5,666,218 5,722,922 6,031,032 Employer's Net Pension Liability/(Asset) as a Percentage of Covered Payroll 92.88% 16.53% 94.70% Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2016 through 2018 and 2020. Changes in assumptions related to the demographics were made in 2017 and 2023. CITY OF WEST CHICAGO, ILLINOIS Illinois Municipal Retirement Fund Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Measurement Years December 31, 2025 81 ===== PDF PAGE 91 ===== 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 602,034 588,612 537,927 564,842 540,973 599,401 615,724 2,692,802 2,775,712 2,874,428 2,983,718 3,135,023 3,252,554 3,315,394 (172,461) 408,035 425,475 1,223,702 786,186 (154,947) (98,997) — (276,821) — — (36,928) — — (1,897,435) (2,046,716) (2,170,482) (2,517,201) (2,829,512) (2,837,215) (2,839,587) 1,224,940 1,448,822 1,667,348 2,255,061 1,595,742 859,793 992,534 37,789,801 39,014,741 40,463,563 42,130,911 44,385,972 45,981,714 46,841,507 39,014,741 40,463,563 42,130,911 44,385,972 45,981,714 46,841,507 47,834,041 554,570 670,212 659,288 556,202 492,250 549,857 630,241 265,485 263,633 268,732 275,652 294,485 302,707 334,006 6,121,775 5,300,760 7,083,627 (6,226,566) 4,446,793 4,290,059 6,954,579 (1,897,435) (2,046,716) (2,170,482) (2,517,201) (2,829,512) (2,837,215) (2,839,587) (124,338) 326,833 2,673 (67,651) 577,057 (981,321) 201,394 4,920,057 4,514,722 5,843,838 (7,979,564) 2,981,073 1,324,087 5,280,633 32,078,611 36,998,668 41,513,390 47,357,228 39,377,664 42,358,737 43,682,824 36,998,668 41,513,390 47,357,228 39,377,664 42,358,737 43,682,824 48,963,457 2,016,073 (1,049,827) (5,226,317) 5,008,308 3,622,977 3,158,683 (1,129,416) 94.83% 102.59% 112.40% 88.72% 92.12% 93.26% 102.36% 5,899,672 5,858,490 5,971,815 6,125,574 6,544,095 6,738,447 6,925,728 34.17% (17.92%) (87.52%) 81.76% 55.36% 46.88% (16.31%) 82 ===== PDF PAGE 92 ===== 12/31/2016 12/31/2017 12/31/2018 Total Pension Liability Service Cost $ 1,346,476 1,426,187 1,349,278 Interest 3,142,264 3,240,378 3,419,420 Changes in Benefit Terms — — — Differences Between Expected and Actual Experience (372,812) 324,349 (338,074) Change of Assumptions (631,278) (1,417,146) (1,140,533) Benefit Payments, Including Refunds of Member Contributions (1,696,065) (1,958,572) (1,995,003) Pension Plan Administrative Expense — — — Net Change in Total Pension Liability 1,788,585 1,615,196 1,295,088 Total Pension Liability - Beginning 53,926,815 55,715,400 57,330,596 Total Pension Liability - Ending 55,715,400 57,330,596 58,625,684 Plan Fiduciary Net Position Contributions - Employer $ 2,174,000 2,358,000 2,500,000 Contributions - Members 427,412 430,974 432,433 Net Investment Income 1,820,171 3,115,545 (1,163,991) Benefit Payments, Including Refunds of Member Contributions (1,696,065) (1,958,572) (1,995,003) Administrative Expenses (71,463) (61,553) (61,890) Net Change in Plan Fiduciary Net Position 2,654,055 3,884,394 (288,451) Plan Net Position - Beginning 23,335,021 25,989,076 29,873,470 Plan Net Position - Ending 25,989,076 29,873,470 29,585,019 Employer's Net Pension Liability $ 29,726,324 27,457,126 29,040,665 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 46.65% 52.11% 50.46% Covered Payroll $ 4,279,402 4,429,181 4,352,534 Employer's Net Pension Liability as a Percentage of Covered Payroll 694.64% 619.91% 667.21% CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Schedule of Changes in the Employer's Net Pension Liability - Last Ten Measurement Years December 31, 2025 83 ===== PDF PAGE 93 ===== 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 1,296,222 1,803,080 1,309,708 1,258,039 1,386,950 1,386,139 1,481,378 3,560,231 3,802,792 3,820,226 4,035,280 4,184,672 4,550,256 4,848,185 269,777 — — (28,523) — 742,511 — 375,254 (1,541,342) (1,107,534) 400,345 5,000,947 (1,936,179) 560,422 7,382,782 (6,109,580) (3,000,207) — — 645,781 — (2,405,200) (2,214,956) (2,703,046) (2,730,396) (3,066,533) (3,176,463) (3,433,382) — (58,044) — — — — — 10,479,066 (4,318,050) (1,680,853) 2,934,745 7,506,036 2,212,045 3,456,603 58,625,684 69,104,750 64,786,700 63,105,847 66,040,592 73,546,628 75,758,673 69,104,750 64,786,700 63,105,847 66,040,592 73,546,628 75,758,673 79,215,276 1,949,252 2,662,500 2,997,288 3,085,827 3,064,900 3,428,000 3,567,300 441,291 443,247 426,937 448,692 1,099,740 800,316 520,197 5,220,951 4,871,051 4,287,449 (6,685,198) 5,367,362 4,363,582 9,066,782 (2,405,200) (2,214,956) (2,703,046) (2,730,396) (3,066,533) (3,176,463) (3,433,382) (61,544) (58,044) (61,973) (65,562) (57,200) (62,410) (74,173) 5,144,750 5,703,798 4,946,655 (5,946,637) 6,408,269 5,353,025 9,646,724 29,585,019 34,729,769 40,433,567 45,380,222 39,433,585 45,841,854 51,194,879 34,729,769 40,433,567 45,380,222 39,433,585 45,841,854 51,194,879 60,841,603 34,374,981 24,353,133 17,725,625 26,607,007 27,704,774 24,563,794 18,373,673 50.26% 62.41% 71.91% 59.71% 62.33% 67.58% 76.81 % 4,452,989 4,382,854 4,354,351 4,592,835 4,903,171 5,287,785 5,420,150 771.95% 555.65% 407.08% 579.32% 565.04% 464.54% 338.99 % 84 ===== PDF PAGE 94 ===== Annual Money- Weighted Rate of Return, Net Fiscal of Investment Year Expense 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% 2025 17.79% CITY OF WEST CHICAGO, ILLINOIS Police Pension Fund Schedule of Investment Returns - Last Ten Fiscal Years December 31, 2025 85 ===== PDF PAGE 95 ===== See Following Page CITY OF WEST CHICAGO, ILLINOIS Retiree Benefits Plan Schedule of Changes in the Employer's Total OPEB Liability December 31, 2025 86 ===== PDF PAGE 96 ===== 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 Covered-Employee Payroll $ 6,941,141 7,149,386 Total OPEB Liability as a Percentage of Covered-Employee 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 2025. CITY OF WEST CHICAGO, ILLINOIS Retiree Benefits Plan Schedule of Changes in the Employer's Total OPEB Liability December 31, 2025 87 ===== PDF PAGE 97 ===== 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 46,336 93,208 115,236 158,254 160,040 231,987 241,452 251,531 184,368 169,318 141,801 210,292 216,978 232,905 — — (1,321,475) — — — — (1,247,848) — 108,963 — (143,550) — (3,559,645) 1,759,270 1,172,614 10,109 (1,330,339) 138,489 (179,195) (17,722) (224,709) (206,118) (178,341) (192,274) (208,271) (317,497) (315,929) 584,580 1,244,072 (1,096,190) (1,222,558) 157,000 (47,727) (3,418,939) 6,247,234 6,831,814 8,075,886 6,979,696 5,757,138 5,914,138 5,866,411 6,831,814 8,075,886 6,979,696 5,757,138 5,914,138 5,866,411 2,447,472 7,406,846 7,629,051 7,654,620 6,600,875 6,353,972 11,982,894 12,059,552 92.24% 105.86% 91.18% 87.22% 93.08% 48.96% 20.29% 88 ===== PDF PAGE 98 ===== Original Final Budget Budget Actual Revenues Taxes $ 7,012,300 7,012,300 6,898,186 Intergovernmental 11,053,100 11,053,100 12,018,189 Charges for Services 2,570,200 2,570,200 2,778,968 Licenses and Permits 704,000 704,000 738,914 Fines and Forfeitures 1,492,000 1,492,000 953,193 Investment Income 100,000 100,000 230,610 Miscellaneous 720,000 720,000 1,102,413 Total Revenues 23,651,600 23,651,600 24,720,473 Expenditures General Government 9,803,200 9,958,200 8,895,278 Public Safety 13,244,200 13,244,200 13,216,153 Capital Outlay 604,200 604,200 455,802 Total Expenditures 23,651,600 23,806,600 22,567,233 Excess (Deficiency) of Revenues Over (Under) Expenditures — (155,000) 2,153,240 Other Financing (Uses) Transfers Out — — (2,300,000) Net Change in Fund Balance — (155,000) (146,760) Fund Balance - Beginning 8,668,197 Fund Balance - Ending 8,521,437 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, 2025 89 ===== PDF PAGE 99 ===== Original Final Budget Budget Actual Revenues Intergovernmental Video Gaming Taxes $ 90,000 90,000 127,134 Charges for Services 42,000 42,000 60,750 Investment Income 35,000 35,000 140,881 Total Revenues 167,000 167,000 328,765 Expenditures Capital Outlay 150,000 165,000 163,049 Net Change in Fund Balance 17,000 2,000 165,716 Fund Balance - Beginning 6,353,474 Fund Balance - Ending 6,519,190 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, 2025 90 ===== PDF PAGE 100 ===== Original Final Budget Budget Actual Revenues Taxes Property Tax $ 42,000 42,000 75,434 Investment Income 100 100 1,373 Total Revenues 42,100 42,100 76,807 Expenditures General Government Contractual Services 6,400 6,400 650 Capital Outlay 32,000 32,000 — Total Expenditures 38,400 38,400 650 Net Change in Fund Balance 3,700 3,700 76,157 Fund Balance - Beginning 62,120 Fund Balance - Ending 138,277 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, 2025 91 ===== PDF PAGE 101 ===== Original Final Budget Budget Actual Revenues Intergovernmental Motor Fuel Tax $ 1,151,100 1,151,100 1,169,360 Local Motor Fuel Tax 375,000 375,000 326,332 Grants — — 930,000 Investment Income 100,000 100,000 160,546 Total Revenues 1,626,100 1,626,100 2,586,238 Expenditures General Government Refuse Disposal 45,000 45,000 14,678 Electric 130,000 130,000 122,744 Capital Outlay 6,150,200 6,150,200 3,890,703 Total Expenditures 6,325,200 6,325,200 4,028,125 Net Change in Fund Balance (4,699,100) (4,699,100) (1,441,887) Fund Balance - Beginning 6,051,167 Fund Balance - Ending 4,609,280 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, 2025 92 ===== PDF PAGE 102 ===== 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 93 ===== PDF PAGE 103 ===== 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 is used to account for 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. Downtown Revitalization The Downtown Revitalization Fund is used to support projects and initiatives aimed at strengthening the economic vitality and infrastructure of the downtown area. This includes streetscape improvements, redevelopment activities, and related capital investments INDIVIDUAL FUND DESCRIPTIONS 94 ===== PDF PAGE 104 ===== CAPITAL PROJECTS FUNDS Capital Projects Funds are used 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. INDIVIDUAL FUND DESCRIPTIONS - Continued 95 ===== PDF PAGE 105 ===== 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. INDIVIDUAL FUND DESCRIPTIONS - Continued 96 ===== PDF PAGE 106 ===== Taxes Property Taxes $ 4,932,500 4,932,500 4,848,471 Telecommunications Tax 500,000 500,000 482,289 Utility Tax 1,400,000 1,400,000 1,366,215 Amusement Tax 135,000 135,000 162,696 Cannabis Tax 44,800 44,800 38,515 7,012,300 7,012,300 6,898,186 Intergovernmental Sales Tax 5,375,000 5,375,000 6,849,171 Income Tax 4,432,500 4,432,500 4,619,340 Use Tax 966,700 966,700 230,442 Personal Property Replacement Tax 227,400 227,400 243,494 Grants 51,500 51,500 75,742 11,053,100 11,053,100 12,018,189 Charges for Services Weed Cutting Fees 5,000 5,000 3,933 Brush Collection Fees 106,000 106,000 109,342 Police Counter Service 15,000 15,000 505 Police Contractual Services 725,000 725,000 714,835 Change of Occupancy Fees 125,000 125,000 137,185 Rental Inspections 220,000 220,000 205,448 Business Registration 30,000 30,000 47,805 Foreclosed or Vacant Registration 10,000 10,000 11,000 Relocate Fees 10,000 10,000 6,750 Police Towing 180,000 180,000 204,645 Plan Review Fees 10,000 10,000 7,840 Engineering Fees 129,200 129,200 196,921 Transfer Station Fees 825,000 825,000 928,167 Cable Franchise Fee 180,000 180,000 160,748 Tower Rental Fees — — 43,844 2,570,200 2,570,200 2,778,968 Original Final Budget Budget Actual CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2025 97 ===== PDF PAGE 107 ===== Licenses and Permits Building Permits $ 450,000 450,000 440,078 Building Contractors Licenses 50,000 50,000 69,400 Oversize Truck Permits 28,000 28,000 35,455 Liquor Licenses 110,000 110,000 123,401 Vending Machine/Business Licenses 50,000 50,000 52,640 Other Licenses and Permits 16,000 16,000 17,940 704,000 704,000 738,914 Fines and Forfeitures Circuit Court Fines 615,000 615,000 702,561 Local Fines 877,000 877,000 235,274 Seizures — — 15,358 1,492,000 1,492,000 953,193 Investment Income 100,000 100,000 230,610 Miscellaneous Cemetery Lot Sales 50,000 50,000 43,275 Other Reimbursements 70,000 70,000 174,218 Health Insurance Reimbursements 250,000 250,000 350,026 IPBC and IML Revenue 250,000 250,000 350,000 Other Miscellaneous 100,000 100,000 184,894 720,000 720,000 1,102,413 Total Revenues 23,651,600 23,651,600 24,720,473 Original Final Budget Budget Actual CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2025 98 ===== PDF PAGE 108 ===== General Government Legislative Personal Services $ 55,400 55,400 47,293 Contractual Services 115,000 270,000 246,646 Commodities 75,000 75,000 41,932 245,400 400,400 335,871 Administration Personal Services 3,035,200 3,035,200 2,720,949 Contractual Services 1,310,400 1,310,400 773,289 Commodities 55,500 55,500 24,099 4,401,100 4,401,100 3,518,337 Finance Department Personal Services 311,500 311,500 300,018 Contractual Services 92,300 92,300 100,687 Commodities 22,100 22,100 21,037 425,900 425,900 421,742 Public Works Personal Services 1,369,200 1,369,200 1,365,477 Contractual Services 773,300 773,300 727,271 Commodities 465,400 465,400 416,613 2,607,900 2,607,900 2,509,361 Community Development Personal Services 791,100 791,100 757,174 Contractual Services 1,143,200 1,143,200 1,180,191 Commodities 188,600 188,600 172,602 2,122,900 2,122,900 2,109,967 Total General Government 9,803,200 9,958,200 8,895,278 Original Final Budget Budget Actual CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2025 99 ===== PDF PAGE 109 ===== Public Safety Police Department Personal Services $ 11,234,200 11,234,200 11,214,844 Contractual Services 1,761,800 1,761,800 1,699,288 Commodities 248,200 248,200 302,021 13,244,200 13,244,200 13,216,153 Capital Outlay 604,200 604,200 455,802 Total Expenditures 23,651,600 23,806,600 22,567,233 Original Final Budget Budget Actual CITY OF WEST CHICAGO, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual - Continued For the Fiscal Year Ended December 31, 2025 100 ===== PDF PAGE 110 ===== Original Final Budget Budget Actual Revenues Taxes Utility Taxes $ 750,000 750,000 729,512 Intergovernmental Sales Tax 4,789,200 4,789,200 6,605,828 Grants 3,964,532 3,964,532 560,690 Investment Income 70,000 70,000 224,723 Miscellaneous 50,000 50,000 225,079 Total Revenues 9,623,732 9,623,732 8,345,832 Expenditures Capital Outlay 9,208,200 9,208,200 5,897,186 Net Change in Fund Balance 415,532 415,532 2,448,646 Fund Balance - Beginning 5,921,804 Fund Balance - Ending 8,370,450 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, 2025 101 ===== PDF PAGE 111 ===== Capital Special Revenue Projects TIF TIF Capital Special Tax Special Tax Downtown Equipment Allocation #2 Allocation #3 Revitalization Replacement Totals ASSETS Cash and Investments $ 408,872 191,499 2,300,000 2,961,819 5,862,190 Receivables - Net of Allowances Property Taxes 84,499 43,454 — — 127,953 Total Assets 493,371 234,953 2,300,000 2,961,819 5,990,143 LIABILITIES Accounts Payable — — — 151,377 151,377 DEFERRED INFLOWS OF RESOURCES Property Taxes 84,500 43,454 — — 127,954 Total Liabilities and Deferred Inflows of Resources 84,500 43,454 — 151,377 279,331 FUND BALANCES Restricted 408,871 191,499 2,300,000 — 2,900,370 Assigned — — — 2,810,442 2,810,442 Total Fund Balances 408,871 191,499 2,300,000 2,810,442 5,710,812 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 493,371 234,953 2,300,000 2,961,819 5,990,143 CITY OF WEST CHICAGO, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2025 102 ===== PDF PAGE 112 ===== Capital Special Revenue Projects TIF TIF Capital Special Tax Special Tax Downtown Equipment Allocation #2 Allocation #3 Revitalization Replacement Totals Revenues Taxes $ 82,451 42,400 — — 124,851 Charges for Services — — — 642,600 642,600 Investment Income 4,193 186 — 122,193 126,572 Miscellaneous — — — 1,453 1,453 Total Revenues 86,644 42,586 — 766,246 895,476 Expenditures Capital Outlay — — — 1,132,867 1,132,867 Excess (Deficiency) of Revenues Over (Under) Expenditures 86,644 42,586 — (366,621) (237,391) Other Financing Sources Disposal of Capital Assets — — — 2,898 2,898 Transfers In — — 2,300,000 — 2,300,000 — — 2,300,000 2,898 2,302,898 Net Change in Fund Balances 86,644 42,586 2,300,000 (363,723) 2,065,507 Fund Balances - Beginning 322,227 148,913 — 3,174,165 3,645,305 Fund Balances - Ending 408,871 191,499 2,300,000 2,810,442 5,710,812 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, 2025 103 ===== PDF PAGE 113 ===== Original Final Budget Budget Actual Revenues Taxes Property Tax $ 66,400 66,400 82,451 Investment Income 1,500 1,500 4,193 Total Revenues 67,900 67,900 86,644 Expenditures General Government Contractual Services 2,000 2,000 — Capital Outlay 100,000 100,000 — Total Expenditures 102,000 102,000 — Net Change in Fund Balance (34,100) (34,100) 86,644 Fund Balance - Beginning 322,227 Fund Balance - Ending 408,871 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, 2025 104 ===== PDF PAGE 114 ===== Original Final Budget Budget Actual Revenues Taxes Property Tax $ 32,500 32,500 42,400 Investment Income 100 100 186 Total Revenues 32,600 32,600 42,586 Expenditures Capital Outlay 70,000 70,000 — Net Change in Fund Balance (37,400) (37,400) 42,586 Fund Balance - Beginning 148,913 Fund Balance - Ending 191,499 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, 2025 105 ===== PDF PAGE 115 ===== Original Final Budget Budget Actual Revenues Charges for Services $ 642,600 642,600 642,600 Investment Income 30,000 30,000 122,193 Miscellaneous — — 1,453 Total Revenues 672,600 672,600 766,246 Expenditures Capital Outlay 1,132,300 1,132,300 1,132,867 Excess (Deficiency) of Revenues Over (Under) Expenditures (459,700) (459,700) (366,621) Other Financing Sources Disposal of Capital Assets — — 2,898 Net Change in Fund Balance (459,700) (459,700) (363,723) Fund Balance - Beginning 3,174,165 Fund Balance - Ending 2,810,442 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, 2025 106 ===== PDF PAGE 116 ===== Original Final Budget Budget Actual Operating Revenues Charges for Services $ 8,375,500 8,375,500 10,017,068 Operating Expenses Water Distribution Personal Services 2,048,300 2,048,300 1,963,735 Contractual Services 1,282,400 1,282,400 1,228,324 Commodities 332,000 332,000 346,334 Capital Outlay 1,699,700 1,699,700 269,247 Water Treatment Plant Personal Services 911,100 911,100 766,909 Commodities 1,703,500 1,703,500 1,111,473 Capital Outlay 865,600 865,600 48,292 Depreciation and Amortization — — 2,166,525 Total Operating Expenses 8,842,600 8,842,600 7,900,839 Operating Income (Loss) (467,100) (467,100) 2,116,229 Nonoperating Revenues Connection Fees 5,000 5,000 4,385 Investment Income 75,000 75,000 136,510 Other Income 94,100 94,100 191,405 174,100 174,100 332,300 Income (Loss) Before Capital Grants (293,000) (293,000) 2,448,529 Capital Grants 1,048,900 1,048,900 600,000 Change in Net Position 755,900 755,900 3,048,529 Net Position - Beginning 79,212,482 Net Position - Ending 82,261,011 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, 2025 107 ===== PDF PAGE 117 ===== Original Final Budget Budget Actual Operating Revenues Charges for Services $ 7,300,000 7,300,000 8,772,012 Operating Expenses Sanitary Sewer Collection Personal Services 2,412,400 2,412,400 2,142,586 Contractual Services 4,707,000 4,707,000 4,512,919 Commodities 145,900 145,900 126,036 Capital Outlay 482,100 482,100 247,281 Special Service Area #2 Personal Services 7,400 7,400 6,771 Commodities 7,700 7,700 11,883 Capital Outlay 5,000 5,000 3,300 Depreciation — — 422,718 Total Operating Expenses 7,767,500 7,767,500 7,473,494 Operating Income (Loss) (467,500) (467,500) 1,298,518 Nonoperating Revenues Connection Fees 1,000 1,000 9,796 Property Taxes 10,100 10,100 10,182 Investment Income 50,000 50,000 134,717 Other Income 81,900 81,900 83,864 143,000 143,000 238,559 Change in Net Position (324,500) (324,500) 1,537,077 Net Position - Beginning 13,391,251 Net Position - Ending 14,928,328 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, 2025 108 ===== PDF PAGE 118 ===== Original Final Budget Budget Actual Operating Revenues Charges for Services Parking Fees $ 35,000 35,000 64,248 Licenses and Permits 30,000 30,000 26,206 Total Operating Revenues 65,000 65,000 90,454 Operating Expenses Operations Personal Services 29,300 29,300 27,400 Contractual Services 39,200 39,200 30,802 Commodities 9,500 9,500 11,948 Capital Outlay 75,000 75,000 7,082 Depreciation — — 23,707 Total Operating Expenses 153,000 153,000 100,939 Operating (Loss) (88,000) (88,000) (10,485) Nonoperating Revenues Investment Income 500 500 4,575 Other Income 100 100 180 600 600 4,755 Change in Net Position (87,400) (87,400) (5,730) Net Position - Beginning 454,209 Net Position - Ending 448,479 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, 2025 109 ===== PDF PAGE 119 ===== 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. 110 ===== PDF PAGE 120 ===== See Following Page CITY OF WEST CHICAGO, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2025 (Unaudited) 111 ===== PDF PAGE 121 ===== 2016 2017 2018 Governmental Activities Net Investment in Capital Assets $ 54,867,141 49,943,090 54,014,124 Restricted 2,636,828 2,216,378 2,944,399 Unrestricted (Deficit) (10,545,812) (12,294,029) (15,056,308) Total Governmental Activities Net Position 46,958,157 39,865,439 41,902,215 Business-Type Activities Net Investment in Capital Assets 104,429,071 105,803,874 105,354,380 Restricted 2,409 — — Unrestricted (Deficit) 1,383,690 (554,848) (10,658,958) Total Business-Type Activities Net Position 105,815,170 105,249,026 94,695,422 Primary Government Net Investment in Capital Assets 159,296,212 155,746,964 159,368,504 Restricted 2,639,237 2,216,378 2,944,399 Unrestricted (Deficit) (9,162,122) (12,848,877) (25,715,266) Total Primary Government Net Position 152,773,327 145,114,465 136,597,637 Data Source: City Records *Accrual Basis of Accounting CITY OF WEST CHICAGO, ILLINOIS Net Position by Component - Last Ten Fiscal Years* December 31, 2025 (Unaudited) 112 ===== PDF PAGE 122 ===== 2019 2020 2021 2022 2023 2024 2025 54,970,284 53,700,103 52,198,435 50,991,911 50,120,415 51,819,765 54,979,797 3,615,057 5,316,225 8,507,381 8,713,917 13,554,830 13,306,421 15,013,314 (17,252,817) (13,606,301) (4,136,846) (12,314,281) (13,879,879) (10,894,025) (6,975,879) 41,332,524 45,410,027 56,568,970 47,391,547 49,795,366 54,232,161 63,017,232 95,532,108 94,081,605 93,502,440 92,989,578 94,019,877 94,586,801 93,228,434 180,321 180,321 180,321 180,321 180,321 34,933 565,193 (14,775,689) (19,069,338) (19,399,742) (7,297,414) (6,016,166) (1,563,792) 3,844,191 80,936,740 75,192,588 74,283,019 85,872,485 88,184,032 93,057,942 97,637,818 150,502,392 147,781,708 145,700,875 143,981,489 144,140,292 146,406,566 148,208,231 3,795,378 5,496,546 8,687,702 8,894,238 13,735,151 13,341,354 15,578,507 (32,028,506) (32,675,639) (23,536,588) (19,611,695) (19,896,045) (12,457,817) (3,131,688) 122,269,264 120,602,615 130,851,989 133,264,032 137,979,398 147,290,103 160,655,050 113 ===== PDF PAGE 123 ===== 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Expenses Governmental Activities General Government $ 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 8,835,208 Public Safety — — — 12,429,913 10,448,934 8,922,067 11,601,093 10,976,733 12,341,985 11,996,288 Streets and Highways 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 7,276,581 Culture and Recreation — — — 49,692 49,692 47,062 49,691 47,062 47,062 45,443 Interest on Long-Term Debt 518 407 339 250 1,115 69 — — 15,000 15,000 Total Governmental Activities Expenses 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 28,168,520 Business-Type Activities Waterworks 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 7,900,839 Sewerage 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 7,473,494 Commuter Parking 99,935 113,075 127,980 114,234 100,012 92,619 90,272 83,878 102,893 100,939 Total Business-Type Activities Expenses 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 15,475,272 Total Primary Government Expenses 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 43,643,792 Program Revenues Governmental Activities Charges for Services General Government 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 2,562,442 Public Safety 780,800 851,100 278,100 1,551,190 1,345,890 1,093,943 1,993,128 2,617,987 2,327,477 1,908,633 Streets and Highways 1,297,112 1,257,271 1,759,322 — — — — — 1,078,500 642,600 Culture and Recreation — — — 896,500 953,800 570,800 968,504 1,183,924 58,048 60,750 Operating Grants and Contributions 15,150 3,820 194,395 128,544 7,227 376,506 1,112,088 2,262,849 2,196,607 3,062,124 Capital Grants and Contributions 716,433 704,074 732,621 895,088 1,643,965 1,700,033 616,114 — — — Total Governmental Activities Program Revenues 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 8,236,549 Business-Type Activities Charges for Services Waterworks 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 10,021,453 Sewerage 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 8,781,808 Commuter Parking 139,977 141,988 158,493 150,690 44,302 39,591 58,442 66,549 71,707 90,454 Operating Grants and Contributions — — — — — — — 540,000 — — Capital Grants and Contributions — 645,461 355,577 219,837 — — — — 750,000 600,000 Total Business-Type Activities Program Revenues 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 19,493,715 Total Primary Government Program Revenues 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 27,730,264 CITY OF WEST CHICAGO, ILLINOIS Changes in Net Position - Last Ten Fiscal Years* December 31, 2025 (Unaudited) 114 ===== PDF PAGE 124 ===== 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net (Expense) Revenue Governmental Activities $ (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) (19,931,971) Business-Type Activities (2,934,737) (953,406) (9,102,214) (3,617,043) (6,110,541) (1,294,293) (4,167,203) 625,665 747,137 4,018,443 Total Primary Government Net (Expense) Revenue (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) (15,913,528) General Revenues and Other Changes in Net Position Governmental Activities Taxes Property Taxes 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 5,048,756 Telecommunications Taxes 806,698 759,135 669,750 562,050 577,082 659,823 495,381 539,995 510,600 482,289 Utility Taxes 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 2,095,727 Amusement Taxes 108,211 103,978 94,615 79,390 88,601 103,148 102,460 147,040 164,638 162,696 Cannabis Taxes — — — — 15,720 37,400 41,894 38,787 40,894 38,515 Intergovernmental Sales and Use Taxes 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 13,685,441 Income Taxes 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 4,619,340 Replacement Taxes 160,396 173,517 152,578 198,860 166,337 295,815 630,453 527,994 301,030 243,494 Video Gaming Taxes — — — — — — 7,836 38,789 96,439 127,134 Investment Income 6,983 13,271 12,224 25,729 6,086 1,643 104,248 450,063 801,731 884,705 Miscellaneous 2,032,609 560,955 637,785 732,686 1,690,936 3,386,106 1,144,739 973,362 699,679 1,328,945 Internal Activity - Transfers — — — 22,171 — — (15,406,100) (692,086) — — Total Governmental Activities 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 28,717,042 Business-Type Activities Property 8,894 8,907 9,049 8,882 9,916 11,005 9,354 10,290 10,107 10,182 Intergovernmental Sales and Use Taxes 1,185,841 — — — — — — — — — ARPA — — — — — — — — 3,649,246 — Investment Income 2,660 6,878 8,095 7,598 1,538 — 75,725 284,253 182,450 275,802 Miscellaneous 239,675 371,477 584,062 428,265 354,935 373,719 265,490 479,408 284,970 275,449 Internal Activity - Transfers — — — (10,586,384) — — 15,406,100 692,086 — — Total Business-Type Activities 1,437,070 387,262 601,206 (10,141,639) 366,389 384,724 15,756,669 1,466,037 4,126,773 561,433 Total Primary Government 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 29,278,475 Changes in Net Position Governmental Activities (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 8,785,071 Business-Type Activities (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 4,579,876 Total Primary Government Changes in Net Position (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 13,364,947 Data Source: City Records *Accrual Basis of Accounting 115 ===== PDF PAGE 125 ===== 2016 2017 2018 General Fund Nonspendable $ 549,669 94,055 78,908 Restricted 360,944 624,061 1,211,793 Unassigned 12,733,258 11,841,410 12,126,823 Total General Fund 13,643,871 12,559,526 13,417,524 All Other Governmental Funds Nonspendable 2,056 2,176 2,275 Restricted 2,275,884 1,592,317 1,732,606 Assigned 4,190,745 5,109,310 5,896,981 Total All Other Governmental Funds 6,468,685 6,703,803 7,631,862 Total Governmental Funds 20,112,556 19,263,329 21,049,386 Data Source: City Records *Modified Accrual Basis of Accounting CITY OF WEST CHICAGO, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2025 (Unaudited) 116 ===== PDF PAGE 126 ===== 2019 2020 2021 2022 2023 2024 2025 105,861 115,884 110,793 158,471 433,596 464,608 434,397 1,535,492 2,998,432 2,945,142 2,503,160 591,457 368,520 281,888 13,844,971 15,925,019 19,254,290 8,624,215 7,495,737 7,835,069 7,805,152 15,486,324 19,039,335 22,310,225 11,285,846 8,520,790 8,668,197 8,521,437 2,568 2,610 956 933 6,106 6,317 5,550 2,079,565 2,317,793 5,562,239 6,210,757 12,963,373 12,937,901 14,167,117 4,745,724 6,537,372 8,923,836 9,922,019 7,470,592 9,089,652 11,175,342 6,827,857 8,857,775 14,487,031 16,133,709 20,440,071 22,033,870 25,348,009 22,314,181 27,897,110 36,797,256 27,419,555 28,960,861 30,702,067 33,869,446 117 ===== PDF PAGE 127 ===== 2016 2017 2018 Revenues Taxes $ 8,109,944 9,308,149 7,611,134 Intergovernmental 7,321,942 7,501,738 10,392,896 Charges for Services 3,193,936 2,987,175 2,951,250 Licenses and Permits 843,502 653,852 887,198 Fines and Forfeitures 850,994 832,420 1,281,202 Investment Income 6,983 13,271 12,224 Miscellaneous 2,032,609 560,955 637,785 Total Revenues 22,359,910 21,857,560 23,773,689 Expenditures General Government 7,893,627 8,591,562 8,150,224 Public Safety 9,849,220 10,003,049 10,011,442 Capital Outlay 4,924,842 4,176,432 3,825,627 Debt Service Interest and Fiscal Charges 518 407 339 Total Expenditures 22,668,207 22,771,450 21,987,632 Excess (Deficiency) of Revenues Over (Under) Expenditures (308,297) (913,890) 1,786,057 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 (251,928) (849,227) 1,786,057 Debt Service as a Percentage of Noncapital Expenditures 0.00 % 0.00 % 0.00 % Data Source: City Records *Modified Accrual Basis of Accounting CITY OF WEST CHICAGO, ILLINOIS Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2025 (Unaudited) 118 ===== PDF PAGE 128 ===== 2019 2020 2021 2022 2023 2024 2025 6,330,796 6,108,938 6,701,024 5,531,158 6,006,422 7,579,972 7,827,983 12,758,459 14,293,866 17,714,533 18,680,642 18,437,251 19,031,090 21,737,533 4,365,673 3,737,997 3,158,622 3,916,364 3,635,890 3,740,277 3,482,318 1,108,091 1,023,714 1,291,445 1,522,441 1,244,151 824,830 738,914 1,015,725 971,630 871,993 1,353,498 1,835,261 1,419,845 953,193 25,729 6,086 1,643 104,248 450,063 801,731 884,705 732,686 1,690,936 3,386,106 1,056,194 937,362 699,679 1,328,945 26,337,159 27,833,167 33,125,366 32,164,545 32,546,400 34,097,424 36,953,591 8,894,550 8,994,426 9,022,394 9,061,329 9,018,793 8,758,698 9,033,350 9,886,973 10,388,620 10,994,269 12,236,400 12,581,415 12,993,277 13,216,153 6,312,762 2,866,077 4,208,488 4,926,962 9,008,086 10,675,600 11,539,607 250 1,115 69 — — — — 25,094,535 22,250,238 24,225,220 26,224,691 30,608,294 32,427,575 33,789,110 1,242,624 5,582,929 8,900,146 5,939,854 1,938,106 1,669,849 3,164,481 22,171 — — 88,545 36,000 71,357 2,898 500,000 — 4,620,000 511,380 5,298,059 1,450,000 2,300,000 (500,000) — (4,620,000) (15,917,480) (5,990,145) (1,450,000) (2,300,000) 22,171 — — (15,317,555) (656,086) 71,357 2,898 1,264,795 5,582,929 8,900,146 (9,377,701) 1,282,020 1,741,206 3,167,379 0.00 % 0.01 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 119 ===== PDF PAGE 129 ===== Tax Levy Residential Commercial Year Property Farm Property 2016 $ 390,758,862 $ 487,626 $ 89,670,605 2017 409,838,459 537,746 95,961,612 2018 427,634,113 512,185 95,314,124 2019 445,466,549 498,632 97,014,387 2020 463,824,523 497,883 97,567,069 2021 475,426,960 563,293 112,256,047 2022 500,075,590 519,152 118,452,799 2023 523,039,265 623,917 125,639,593 2024 589,718,174 651,044 128,222,958 2025 647,282,947 707,476 139,690,906 Data Source: DuPage County Clerk's and Treasurer's Offices CITY OF WEST CHICAGO, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years December 31, 2025 (Unaudited) 120 ===== PDF PAGE 130 ===== Total Taxable Total Industrial Railroad Assessed Direct Property Property Value Tax Rate $ 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 367,242,437 6,456,370 1,161,380,136 0.4469 121 ===== PDF PAGE 131 ===== 2016 2017 2018 Countywide DuPage County 0.1848 0.1749 0.1673 Forest Preserve District 0.1514 0.1306 0.1278 DuPage Airport Authority 0.0176 0.0166 0.0146 Local Wayne Township 0.0959 0.0940 0.0929 Wayne Township Road 0.0800 0.0784 0.0775 City of West Chicago - Wayne Township 0.5582 0.5441 0.5178 Winfield Township 0.1275 0.1192 0.1008 Winfield Township Road 0.1676 0.1587 0.1526 City of West Chicago - Winfield Township 0.5582 0.5441 0.5178 West Chicago Park District 0.4889 0.4744 0.4683 West Chicago Fire Protection District 0.9971 0.9663 0.9448 West Chicago Mosquito District 0.0152 0.0148 0.0143 West Chicago Library District 0.3153 0.3056 0.2968 Educational Grade School District 33 5.1727 4.8967 4.7555 High School District 94 2.4677 2.3770 2.3136 College of DuPage District 502 0.2626 0.2431 0.2317 Total Tax Rate - Winfield Township 10.9266 10.4220 10.1059 Share of Total Tax Rate Levied by the City of West Chicago 5.11% 5.22% 5.12% Total Tax Rate - Wayne Township 11.5042 10.8074 10.3165 Share of Total Tax Rate Levied by the City of West Chicago 4.85% 5.03% 5.02% Property Tax Rates are per $100 of assessed valuation Data Source: DuPage County Clerk CITY OF WEST CHICAGO, ILLINOIS Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years December 31, 2025 (Unaudited) 122 ===== PDF PAGE 132 ===== 2019 2020 2021 2022 2023 2024 2025 0.1655 0.1609 0.1587 0.1428 0.1473 0.1361 0.1265 0.1242 0.1205 0.1177 0.1130 0.1076 0.1310 0.1229 0.0141 0.0148 0.0144 0.0139 0.0132 0.0122 0.0113 0.0911 0.0904 0.0899 0.0891 0.0884 0.0829 0.0787 0.0744 0.0728 0.0724 0.0717 0.0712 0.0647 0.0614 0.5034 0.4996 0.4999 0.5094 0.4900 0.4671 0.4469 0.0939 0.0811 0.0435 0.0756 0.0726 0.0690 0.0650 0.1483 0.1448 0.1437 0.1440 0.1396 0.0647 0.0614 0.5034 0.4996 0.4999 0.5094 0.4900 0.4671 0.4469 0.4603 0.4339 0.4296 0.4265 0.4162 0.3955 0.3719 0.9295 0.9126 0.9080 0.8856 0.8573 0.8137 0.7690 0.0135 0.0136 0.0127 0.0113 0.0104 0.0091 0.0081 0.2893 0.2841 0.2819 0.2830 0.2774 0.2651 0.2499 4.6806 4.5774 4.5384 4.4888 4.4062 4.2452 4.0107 2.2573 2.2082 2.1843 2.1762 2.1468 2.0320 1.9067 0.2112 0.2114 0.2037 0.1946 0.1907 0.1794 0.1687 9.8911 9.6629 9.5365 9.4647 9.2753 8.8881 8.4326 5.09% 5.17% 5.24% 5.38% 5.28% 5.26% 5.30% 10.0229 9.8144 9.5116 9.4059 9.2227 8.8340 8.3723 5.02% 5.09% 5.26% 5.42% 5.31% 5.29% 5.34% 123 ===== PDF PAGE 133 ===== 2025 2016 Percentage of Percentage of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Stag Industrial Holdings LLC $ 18,606,149 1 1.60% Discovery Drive Investors 17,894,561 2 1.54% Discovery Dr Investors II 16,655,024 3 1.43% Ds Containers Inc 14,762,531 4 1.27% TMIF II Timber Lake LLC 13,193,763 5 1.14% Ball Horicultural Company 12,950,592 6 1.12% 2575 Enterprise Circle LLC 12,566,514 7 1.08% Clemenceau Logistics 9,551,722 8 0.82% Alpha Z Chi Ind 5 LLC 8,433,643 9 0.73% $ 5,629,410 4 0.92% 2595 Enterprise Circle LLC 7,827,745 10 0.67% DuPage Airport Authority 16,467,050 1 2.68% Cabot IV LLC 8,644,820 2 1.41% Cobalt Industrial REIT II 8,452,840 3 1.38% Mapei Corp 4,486,770 5 0.73% LaGrou Properties 4,442,320 6 0.72% Aspen Ridge LLC 3,795,000 7 0.62% Riverwoods West Chicago 3,770,350 8 0.61% Simpson Manufacturing Co 3,313,550 9 0.54% Centerpoint Properties 3,066,210 10 0.50% Total 132,442,244 11.40% 62,068,320 10.11% Data Source: Office of the County Clerk CITY OF WEST CHICAGO, ILLINOIS Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2025 (Unaudited) 124 ===== PDF PAGE 134 ===== 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 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% 2024 5,188,890 5,048,756 97.30% N/A 5,048,756 97.30% Data Source: DuPage County Clerk's Office N/A - Not Available Note: Levies for all Special Services Area have been excluded from this table. CITY OF WEST CHICAGO, ILLINOIS Property Tax Levies and Collections - Last Ten Tax Levy Years December 31, 2025 (Unaudited) 125 ===== PDF PAGE 135 ===== Business-Type Activities IEPA Total Percentage Fiscal Loans Primary of Personal Per Year Payable Government Income (1) Capita (1) 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 0.26% 75 2022 1,369,438 1,369,438 0.16% 53 2023 693,461 693,461 0.07% 27 2024 — — —% — 2025 — — —% — 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. CITY OF WEST CHICAGO, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years December 31, 2025 (Unaudited) 126 ===== PDF PAGE 136 ===== 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) 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% — 2025 — — — 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. CITY OF WEST CHICAGO, ILLINOIS Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years December 31, 2025 (Unaudited) 127 ===== PDF PAGE 137 ===== 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 73,330,000 9.00% 6,601,189 Forest Preserve District 110,415,000 13.55% 14,966,317 West Chicago Park District 24,064,000 2.95% 710,877 Warrenville Park District 9,350,000 1.15% 107,320 Winfield Park District 7,120,000 0.87% 62,233 School District #25 9,150,000 1.12% 102,778 School District #33 18,390,000 2.26% 415,166 School District #94 25,345,000 3.11% 788,576 U-46 School District 233,920,000 28.72% 67,172,808 U-303 School District 42,740,000 5.25% 2,242,476 Community College District #502 87,140,000 10.70% 9,321,674 Community College District #509 173,630,000 21.31% 37,009,083 Total Overlapping Debt 814,594,000 139,500,497 Total Direct and Overlapping Debt 814,594,000 139,500,497 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. CITY OF WEST CHICAGO, ILLINOIS Schedule of Direct and Overlapping Bonded Debt December 31, 2025 (Unaudited) 128 ===== PDF PAGE 138 ===== 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. CITY OF WEST CHICAGO, ILLINOIS Schedule of Legal Debt Margin December 31, 2025 (Unaudited) 129 ===== PDF PAGE 139 ===== Per (2) Capita (1) (2) Fiscal (1) Personal Personal Median School Unemployment Year Population Income Income Age Enrollment Rate 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% 2025 25,614 925,110,144 38,263 35.8 5,149 3.20% Data Source: (1) US Census Bureau (2) Illinois Department of Employment Security (using annual averages) CITY OF WEST CHICAGO, ILLINOIS Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2025 (Unaudited) 130 ===== PDF PAGE 140 ===== 2025 2016 Percentage Percentage of Total of Total City City Employer Employees Rank Employment Employees Rank Employment The Jel Sert Co 1,100 1 6.94% 1,000 1 7.39% West Chicago Elementary School District 33 645 2 4.07% 585 2 4.32% Amazon.com Services LLC 543 3 3.43% Ball Horticultural Company 507 4 3.20% 425 4 3.14% OSI Industries 432 5 2.73% 230 10 1.70% Epsilon Data Management, LLC 422 6 2.66% AJR Filtration 403 7 2.54% FXI Inc. 320 8 2.02% Mapei Corporation 280 9 1.77% 285 8 2.11% Avient Colorants USA LLC 280 10 1.77% Aspen Marketing Services 425 3 3.14% InNocor Inc 330 5 2.44% Siemens Industry 320 6 2.36% General Mills 295 7 2.18% Community High School District 94 244 9 1.80% Total 4,932 31.13% 4,139 30.58% Data Sources: City Community Development Department Records and U.S. Census Bureau. CITY OF WEST CHICAGO, ILLINOIS Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2025 (Unaudited) 131 ===== PDF PAGE 141 ===== Function 2016 2017 2018 General Government Administration 1.00 1.50 1.50 Finance / Administrative Services 4.13 4.13 4.13 Museum / Marketing 0.25 0.25 0.25 Public Works 11.19 11.19 11.19 Community Development 3.75 4.75 4.75 Public Safety Police 52.50 53.00 51.00 Waterworks and Sewerage 33.65 39.34 38.12 Commuter Parking 0.25 0.25 0.25 Totals 106.72 114.41 111.19 Data Source: City Records CITY OF WEST CHICAGO, ILLINOIS Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years December 31, 2025 (Unaudited) 132 ===== PDF PAGE 142 ===== 2019 2020 2021 2022 2023 2024 2025 1.50 1.50 1.50 3.25 3.15 6.00 6.00 4.13 4.13 4.13 2.50 2.50 9.50 5.50 0.25 0.25 0.25 0.25 0.25 0.25 3.25 11.94 12.00 12.00 12.75 12.75 10.00 10.00 4.75 4.75 4.75 5.75 7.78 7.00 10.00 51.00 47.00 48.00 51.00 53.00 51.00 55.00 38.72 39.01 39.07 38.32 38.32 34.00 32.00 0.25 0.25 0.25 0.25 0.25 0.25 0.25 112.54 108.89 109.95 114.07 118.00 118.00 122.00 133 ===== PDF PAGE 143 ===== Function/Program 2016 2017 2018 General Government Public Works Number of Parkway Trees Planted 135 106 110 Number of Parkway Trees Trimmed 2,430 2,958 2,566 Brush Pickup Program (Days to Collect) 5.5 4.8 4.7 Building Safety Inspections 12 12 12 Tunnel - Paint and Light Lens Replacements 6 5 6 Special Events Handled 4 22 19 Community Development Number of Building Permits Issued 1,155 1,044 1,352 Number of Building Inspections 882 1,056 1,211 Highways and Streets Sidewalk Replaced (Sq. Ft.) 11,142 1,884 12,545 Crack Sealing (Lbs. Installed) 32,000 35,360 27,330 Tons of Salt Used 2,500 2,050 2,270 Public Safety Fire Number of Fire Calls 1,095 1,113 1,238 Number of EMS Calls 2,073 2,134 2,339 ISO Rating 4 2 2 Police Part I Crime 329 342 265 Part II Crime 1,427 1,456 1,589 Calls for Service 44,087 42,780 40,713 Parking Tickets Issued 3,780 3,026 3,094 Waterworks and Sewerage Number of metered Accounts 6,452 6,450 6,455 Water Meters Read 152 29 — Water Meter Service Requests 1,471 1,252 961 Water Meters Replaced 75 50 35 Average Daily Treated Water (Million Gallons) 3.54 3.42 3.66 Sanitary Sewer Repairs 2 4 4 Data Source: City Records Note: Indicators are not available for the general government CITY OF WEST CHICAGO, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2025 (Unaudited) 134 ===== PDF PAGE 144 ===== 2019 2020 2021 2022 2023 2024 2025 160 180 134 133 130 134 382 800 3,218 2,600 2,295 2,201 2,813 2,700 4.9 4.7 4.0 4.0 4.0 40.0 40.0 12 12 10 12 12 12 12 10 4 1 13 14 19 17 15 2 12 6 8 5 7 1,264 1,110 1,132 1,167 789 923 879 1,251 1,322 1,209 1,257 1,162 900 1,412 920 11,464 31,889 15,183 39,539 15,976 20,235 — — — 70,538 — 17,130 — 2,540 2,700 3,967 2,478 1,764 2,120 1,535 1,250 1,138 1,439 1,439 1,474 1,502 2,423 2,350 2,148 2,371 2,371 2,607 2,515 1,444 2 2 2 2 2 2 2 258 271 251 261 846 808 785 1,596 708 692 692 551 663 582 33,516 31,689 33,868 34,623 39,534 42,912 50,221 2,301 1,293 3,860 2,134 4,083 4,515 2,943 6,455 6,457 6,551 6,635 6,597 6,583 6,593 — — — — — — — 723 586 594 595 447 583 423 16 20 35 65 94 37 40 3.62 3.43 2.99 2.99 2.54 2.53 2.45 1 4 — — — 4 6 135 ===== PDF PAGE 145 ===== Function/Program 2016 2017 2018 General Government Public Works Streets (Miles) 174.06 174.06 174.21 Sidewalks (Miles) 111.03 111.03 111.38 Streetlights 1,168 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) 128.87 129.64 129.90 Fire Hydrants 1,537 1,551 1,555 Sanitary Sewers (Miles) 106.43 106.43 106.60 Manholes 2,213 2,213 2,217 Data Source: City Records CITY OF WEST CHICAGO, ILLINOIS Capital Asset Statistic by Function/Program - Last Ten Fiscal Years December 31, 2025 (Unaudited) 136 ===== PDF PAGE 146 ===== 2019 2020 2021 2022 2023 2024 2025 175.02 175.02 175.02 175.90 175.38 185.00 185.00 111.38 111.38 111.38 111.38 113.50 113.50 114.68 1,169 1,197 1,197 1,197 1,210 1,210 1,210 1 1 1 1 1 1 1 26 26 26 31 28 21 22 4 4 4 4 4 4 4 130.05 130.05 130.05 130.05 130.50 147.00 147.00 1,557 1,557 1,557 1,557 1,484 1,750 1,531 106.60 106.60 106.60 106.60 106.60 106.60 110.56 2,217 2,217 2,217 2,217 2,233 2,233 2,298 137 ===== PDF PAGE 147 ===== 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 138 ===== PDF PAGE 148 ===== 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 24, 2026 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, 2025, 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 24, 2026. 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. 139 IA Lauterbach & Amen 668 N. River Road Naperville, IL 60563 630.393.1483 . . . ... . ===== PDF PAGE 149 ===== City of West Chicago, Illinois June 24, 2026 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 140