VILLAGE OF THORNTON, ILLINOIS7433732F-5ACD...VILLAGE OF THORNTON, ILLINOIS TABLE OF CONTENTS 1 2...

VILLAGE OF THORNTON,ILLINOIS

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDEDAPRIL 30, 2019

VILLAGE OF THORNTON, ILLINOIS

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED APRIL 30, 2019

Prepared by: Finance Department


TABLE OF CONTENTS

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Letter of Transmittal 3 - 78

INDEPENDENT AUDITORS' REPORT 9 - 10

MANAGEMENT’S DISCUSSION AND ANALYSIS 11 - 21

BASIC FINANCIAL STATEMENTS

Government-Wide Financial StatementsStatement of Net Position 22 - 23Statement of Activities 24 - 25

Fund Financial StatementsBalance Sheet – Governmental Funds 26 - 27Reconciliation of Total Governmental Fund Balance to the

Statement of Net Position – Governmental Activities 28Statement of Revenues, Expenditures and Changes in

Fund Balances – Governmental Funds 29 - 30Reconciliation of the Statement of Revenues, Expenditures and Changes in

Fund Balances to the Statement of Activities – Governmental Activities 31Statement of Net Position – Proprietary Fund 32 - 33Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Fund 34Statement of Cash Flows – Proprietary Fund 35

Notes to Financial Statements 36 - 67

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Employer ContributionsIllinois Municipal Retirement Fund 68

Schedule of Changes in the Employer’s Net Pension Liability

Illinois Municipal Retirement Fund 69 - 70Schedule of Changes in the Employer's Total OPEB Liability

Retiree Benefit Plan 71Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual

General Fund 72

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INTRODUCTORY SECTION

Principal Officials Organizational Chart

Certificate of Achievement for Excellence in Financial Reporting

FINANCIAL SECTION


TABLE OF CONTENTS

OTHER REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Revenues – Budget and Actual – General Fund 73 - 74Schedule of Expenditures – Budget and Actual – General Fund 75Schedule of Detailed Expenditures – Budget and Actual – General Fund 76 - 81Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual

Debt Service Fund 82Capital Projects Fund 83Downtown Tax Increment Financing – Capital Projects Fund 84

Combining Balance Sheet – Nonmajor Governmental Funds 85 - 86Combining Statement of Revenues, Expenditures and Changes in Fund Balances

Nonmajor Governmental Funds 87 - 88Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual

Motor Fuel Tax – Special Revenue Fund 89Grants – Special Revenue Fund 90DEA – Special Revenue Fund 91Industrial Tax Increment Financing – Special Revenue Fund 92Blackstone Tax Increment Financing – Capital Projects Fund 93Downtown Tax Increment Financing #3 – Capital Projects Fund 94Vehicle Replacement – Capital Projects Fund 95

Schedule of Revenues, Expenses and Changes in Net Position – Budget and Actual

Water and Sewer – Enterprise Fund 96Schedule of Operating Expenses – Budget and Actual – Water and Sewer – Enterprise Fund 97Consolidated Year-End Financial Report 98

SUPPLEMENTAL SCHEDULES

Long-Term Debt RequirementsGeneral Obligation Bonds of 2014 99General Obligation Bonds of 2018 100Installment Contract of 2017 101

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FINANCIAL SECTION – Continued


TABLE OF CONTENTS

Net Position by Component – Last Ten Fiscal Years 102 - 103Changes in Net Position – Last Ten Fiscal Years 104 - 105Fund Balances of Governmental Funds – Last Ten Fiscal Years 106 - 107Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 108 - 109Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years 110 - 111Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years 112 - 113Principal Property Tax Payers – Current Fiscal Year and Nine Fiscal Years Ago 114Property Tax Levies and Collections – Last Ten Fiscal Years 115Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 116Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 117Schedule of Direct and Overlapping Governmental Activities Debt 118Legal Debt Margin 119Demographic and Economic Statistics – Last Ten Fiscal Years 120Principal Employers – Current Fiscal Year and Nine Fiscal Years Ago 121Full-Time Equivalent Village Government Employees by Function – Last Ten Fiscal Years 122 - 123Operating Indicators by Function/Program – Last Ten Fiscal Years 124 - 125Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 126 - 127

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STATISTICAL SECTION (Unaudited)

INTRODUCTORY SECTION

This section includes the Village’s:

List of Principal Officials

Organizational Chart

Transmittal Letter

Certificate of Achievement for Excellence in Financial Reporting


List of Principal Officials April 30, 2019

Robert R. Kolosh, Honorable Village President

BOARD OF TRUSTEES

Kim Atkinson, Trustee Ernest Kaye, Trustee

Maxine Reynolds, Trustee Debra Paris, Trustee

David Hudson, Trustee Joseph Pisarzewski, Trustee

ADMINISTRATION

Debra Pisarzewski, Village Clerk

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VILLAGE OF THORNTON 115 EAST MARGARET STREET • THORNTON, ILLINOIS 60476

PHONE (708) 877-4456/57 • FAX (708) 877-4458

November 1, 2019 The Honorable Robert R. Kolosh, Village President Members of the Board of Trustees Citizens of the Village of Thornton The comprehensive annual financial report of the Village of Thornton for the fiscal year ended April 30, 2019 is hereby submitted. This report consists of management’s representations concerning the finances of the Village of Thornton. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Village of Thornton’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the Village of Thornton’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. The Village of Thornton’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 Village of Thornton for the fiscal year ended April 30, 2019 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Village’s financial statements for the fiscal year ended April 30, 2019, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative 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 MD&A and should be read in conjunction with it. The Village’s MD&A can be found immediately following the report of the independent auditors.

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Profile of the Village of Thornton The Village of Thornton, incorporated in 1834, is located approximately 20 miles south of downtown Chicago, in southeastern Cook County. The Village covers an area of approximately 2.5 square miles. The Village is situated within a significant regional transportation network, which enables residents to be linked to a number of major employment centers in the Chicago metropolitan area. Access to Interstate 80/294 is located within one mile of the Village’s corporate boundaries, while access to Interstate 94 is located approximately two miles from the Village’s corporate boundaries. The Village is governed by a President and Board of six Trustees. Policy making and legislative authority are vested in the Village Board. The Village Board is responsible for passing ordinances, adopting the budget, appointing committees, and hiring the Village Administrator and various Department Heads upon selection by the Village President. The Village Administrator is responsible for carrying out the policies and ordinances of the Village Board and for overseeing the day-to-day operations of the Village. The Village President and Village Board are elected at-large on a non-partisan basis to staggered terms of four years. The Village provides a full range of services, including building and zoning; code enforcement; community and economic development; maintenance of streets, sidewalks and infrastructure; water distribution and waste water transmission; police protection; fire protection and paramedic services; and parks and recreation. For financial reporting purposes, in conformity with the Governmental Accounting Standards Board Statement No. 39, this report includes all the funds and component units of the Village. The Village is a member of an intergovernmental insurance pool, the Illinois Municipal League Risk Management Association (IMLRMA). This pool is defined as a public entity risk pool and is accounted for accordingly. The annual budget serves as the foundation for the Village’s financial planning and control. All departments of the Village are required to submit their budget requests to the Village Administrator during the second week of January of each year. The Village Administrator uses these requests as the starting point for developing the proposed budget. The Village Administrator then presents this proposed budget to the Village Board in March of each year. The Village Board is required to hold a public hearing on the proposed budget and to adopt a final budget no later than April 30th of each year. The Village Board may make transfers of appropriations periodically throughout the fiscal year. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. Economic Condition and Outlook For several years now, the Village’s General Fund has finished with modest surpluses. Each fiscal year since 2009 has seen the Village continue to operate with surpluses in the Village’s General Fund, steadily increasing Village reserves towards targeted levels which were set in the Village’s 2013 adopted Fund Balance Policy. Targeted reserves are a minimum of four months and a maximum of six months unassigned fund balance. Through this policy the Board passed a Resolution during FY’16 to move $550,000 from its unassigned fund balance to its Capital Fund as it had met targeted levels. This had made a fairly positive significant impact on our Capital Fund. The Capital Fund has had a continual

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spend down since then as the Village has yearly Capital needs. The Capital Fund is down to approximately $130,000 at FY’19 year end. The Village of Thornton is geographically landlocked, which has limited the potential for new commercial, industrial or residential development. Due to the modest commercial tax base within the community, the Village government is reliant on property taxes to finance the majority of General Fund expenditures. In addition, the Village is home to one of the world’s largest active limestone quarries, owned and operated by Hanson Material Service. The externalities associated with mining operations in the community have further hindered the Village’s efforts to expand its commercial tax base. The Village has had some success in its modestly paced recovery from the 2009 Recession; bringing in a couple of new businesses each year. The Thornton Distilling Co., now in its 2nd full year of operations has generated the most regional ‘buzz’ of any business in the Village. They continue to lobby for improvements for craft distillers at the State and Federal level and the Village continues to support them locally. The Distillery was the anticipated cornerstone business when the Village Board created the Blackstone TIF in 2015. Unfortunately, a decision by the State of Illinois granted a tax exempt status to Thorncreek Senior Living which was to be one of the main contributors to the increment in the Blackstone TIF. This has greatly impacted the growth of the Blackstone TIF, which has limited the Village’s ability to work with current businesses on expansion, as well as to bring new businesses to that area. The Village also created a new Downtown TIF as the original Downtown TIF was set to expire at the end of 2017. The new Downtown TIF District is significantly smaller than the old one as the Village had successfully increased the EAV in the northern section of the old Downtown TIF. The Village will continue to strive and do the same in the new Downtown TIF. The Village Board, working closely with Village staff, continues to make affordable, sustainable improvements in the Village. Maintenance of vehicles, buildings, and equipment have become a high priority as not being able to do those things during the recession as shown what happens when those things are neglected. The Board is also committed to replace equipment and vehicles when a cost benefit analysis shows it is the best course of action. Capital Projects/Purchases: As the Capital Fund’s balanced has decreased every year since 2015, capital purchases were held to minimal levels this fiscal year. The most significant capital expenditure the Village made was a new software program. The program will be utilized for utility billing, payroll, accounts payable, and general ledger activity. The program replaces a older program purchased back in the 1980’s that was based off of COBOL computer language. The new program easily creates EXCEL spreadsheets and should provide staff more information for better analysis of Village financial functions. Staff vehicles were also purchased for Public Works and the Police Department. The replaced vehicle was then given to our Emergency Management Department. The Village’s oldest vehicles were then declared surplus and sold at auction.

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Long-term Financial Planning The Village continues to look for ways to increase revenues and decrease expenditures to help balance the Village’s budget. Although some aspects only impact the Village’s annual budget process, others impact our long-term financial planning. Some examples of these types of decisions are: Use of multi-year contracts – The Village has had a history of obtaining a ten year mining contract with Hanson Material Service. The ten year agreement is more stable than a mining tax which could fluctuate greatly from year to year based on the region’s need for stone. The Village negotiated a twenty year sales tax sharing agreement with the Village of Homewood for their Menards expansion. Sales tax sharing started this fiscal year in which the Village received its first payment of twenty for $35,000.00. The Village also negotiates multi-year expenditure contracts for garbage service (5 years), fireworks displays (3 years), and audit services (3 years). Labor negotiations – much like multi-year contracts, the Village negotiates a minimum of a three year contract with the police union. Negotiating multiple years can lower the Village’s labor attorney costs and has a positive effect on employer-employee relations. This fiscal year the Village was able to negotiate a 4 year deal with Teamsters Local 700. C.O.L.A. raises for the length of the contract were set at 10%, with each year getting a portion of that amount. One time revenues – currently deposited solely in the Village’s Capital Fund, this is done by the decisions of the Village Administrator and Treasurer and not by any policy. Along with the previously mentioned Capital Policy that the Village hasn’t passed yet, this is a policy that staff is looking to implement as well. Health Insurance – health insurance rates are continually on the rise. The Village recently started offering incentives to employees that enroll in HSA’s. HSA’s save the Village a significant amount of money over traditional PPO plans. Other Information The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Thornton for its comprehensive annual financial report for the fiscal year ended April 30, 2018. This was the seventh consecutive year that the Village has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and are submitting it to the GFOA to determine its eligibility for another certificate.

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FINANCIAL SECTION

This section includes:

• Independent Auditors’ Report

• Management’s Discussion and Analysis

• Basic Financial Statements

• Required Supplementary Information

• Other Supplementary Information

• Supplemental Schedules

INDEPENDENT AUDITORS’ REPORT

INDEPENDENT AUDITORS' REPORT

November 1, 2019

The Honorable Village President Members of the Board of Trustees Village of Thornton, Illinois

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the Village of Thornton, Illinois, as of and for the year ended April 30, 2019, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as

listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the Village of Thornton, Illinois, as of April 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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Village of Thornton, Illinois November 1, 2019 Page 2

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s

discussion and analysis as listed in the table of contents and budgetary information reported in the required supplementary information as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Thornton, Illinois’ basic financial statements. The introductory section, combining and individual fund financial statements and budgetary comparison schedules, supplemental schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and budgetary comparison schedules and supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and budgetary comparison schedules and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP

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MANAGEMENT’S DISCUSSION AND ANALYSIS

VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 Our discussion and analysis of the Village of Thornton’s financial performance provides an overview of the Village’s financial activities for the fiscal year ended April 30, 2019. Please read it in conjunction with the Village’s transmittal letter which begins on page 3 and the Village’s financial statements, which begin on page 22. FINANCIAL HIGHLIGHTS

• The Village’s net position decreased as a result of this year’s operations. The net position of business-type activities decreased by $63,062 or 14.4 percent and net position of the governmental activities decreased by $156,065 or 2.7 percent.

• During the year, government-wide revenues for the primary government totaled $5,242,847,

while expenses totaled $5,461,973, resulting in a decrease to net position of $219,127.

• The Village’s net position totaled $6,060,419 on April 30, 2019, which includes $4,265,417 invested in capital assets, net of related debt, $471,079 subject to external restrictions, and $1,323,923 unrestricted net position that may be used to meet the ongoing obligations to citizens and creditors.

• The General Fund reported a surplus this year of $213,067, resulting in ending fund balance

of $1,816,458, an increase of 13.3 percent.

• Beginning net position was restated by $136,569 due to the implementation of GASB Statement No. 75 (OPEB).

USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities (on pages 22 - 25) provide information about the activities of the Village as a whole and present a longer-term view of the Village’s finances. Fund financial statements begin on page 26. 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 Village’s operations in more detail than the government-wide statements by providing information about the Village’s most significant funds. The remaining statements provide financial information about activities for which the Village acts solely as a trustee or agent for the benefit of those outside of the government. Government-Wide Financial Statements The government-wide financial statements provide readers with a broad overview of the Village’s finances, in a matter similar to a private-sector business. The government wide financial statements can be found on pages 22 - 25 of this report. The Statement of Net Position reports information on all of the Village’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 Village is improving or deteriorating. Consideration of other nonfinancial factors, such as changes in the Village’s property tax base and the condition of the Village’s infrastructure, is needed to assess the overall health of the Village.

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VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 USING THIS ANNUAL REPORT – Continued Government-Wide Financial Statements – Continued 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). Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village include general government, public safety, public works and culture and recreation. The business-type activities of the Village include water and sewer operations. The Village includes one separate legal entity in its report. The Thornton Public Library is presented as a discretely presented component unit. Although legally separate, this “component unit” is important because the Village is financially accountable for it. Financial information for the component unit is reported separately from the financial information presented for the primary government itself. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into two categories: governmental funds and proprietary 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 Village’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.

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VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 USING THIS ANNUAL REPORT – Continued Fund Financial Statements – Continued Governmental Funds – Continued The Village maintains eleven 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, Debt Service, Capital Projects Fund and Downtown TIF Fund, which are considered major funds. Data from the other seven 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 Village 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. The basic governmental fund financial statements can be found on pages 26 -31 of this report. Proprietary Funds The Village 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 Village utilizes an enterprise fund to account for its water and sewer 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 Water and Sewer Fund, which is considered to be a major fund of the Village. The basic proprietary fund financial statements can be found on pages 32 - 35 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 36 - 67 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village’s I.M.R.F. and Other Post Employment Benefit Plan employee pension obligations and General Fund budgetary comparison schedule. Required supplementary information can be found on pages 68 - 72 of this report. The combining statements referred to earlier in connection with non-major governmental funds is presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 73 - 98 of this report.

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VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. The following tables show that in the case of the Village, assets/deferred outflows exceeded liabilities/deferred outflows by $6,060,419.

2019 2018 2019 2018 2019 2018

Current and Other Assets $ 4,151,355 4,271,183 180,837 290,710 4,332,192 4,561,893Capital Assets 6,802,174 6,893,569 412,089 463,067 7,214,263 7,356,636

Total Assets 10,953,529 11,164,752 592,926 753,777 11,546,455 11,918,529Deferred Outflows 587,973 250,182 36,309 17,602 624,282 267,784

Total Assets/Deferred Outflows 11,541,502 11,414,934 629,235 771,379 12,170,737 12,186,313

Long-Term Debt 3,373,949 3,295,615 40,203 7,039 3,414,152 3,302,654Other Liabilities 617,865 513,011 196,500 281,768 814,365 794,779

Total Liabilities 3,991,814 3,808,626 236,703 288,807 4,228,517 4,097,433Deferred Inflows 1,864,786 1,901,910 17,015 43,993 1,881,801 1,945,903

Total Liabilities and Deferred Inflows 5,856,600 5,710,536 253,718 332,800 6,110,318 6,043,336

Net PositionNet Investment in Capital Assets 3,853,328 3,730,748 412,089 463,067 4,265,417 4,193,815Restricted 471,079 691,511 - - 471,079 691,511Unrestricted 1,360,495 1,282,139 (36,572) (24,488) 1,323,923 1,257,651

Total Net Position 5,684,902 5,704,398 375,517 438,579 6,060,419 6,142,977

Net Position

TotalGovernmental

ActivitiesBusiness-type

Activities

A large portion of the Village’s net position, $4,265,417 or 70.4 percent, reflects its investment in capital assets (for example, land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The Village uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Village’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, $471,079 or 7.8 percent, of the Village’s net position represents resources that are subject to external restrictions on how they may be used. The remaining 21.8 percent, or $1,323,923, represents unrestricted net position and may be used to meet the government’s ongoing obligations to citizens and creditors.

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VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued

2019 2018 2019 2018 2019 2018

RevenuesProgram Revenues

Charges for Services $ 472,024 501,353 720,195 676,431 1,192,219 1,177,784Operating Grants/Contrib. 59,349 67,315 - - 59,349 67,315

General RevenuesProperty Taxes 2,292,962 2,557,117 - - 2,292,962 2,557,117Utility Taxes 379,475 378,529 - - 379,475 378,529State Sales and Use Taxes 337,997 249,887 - - 337,997 249,887Income Taxes 273,945 212,014 - - 273,945 212,014Other Taxes 612,378 562,575 - - 612,378 562,575Interest 26,280 21,082 1,313 999 27,593 22,081Miscellaneous 66,928 27,709 - - 66,928 27,709

Total Revenues 4,521,338 4,577,581 721,508 677,430 5,242,846 5,255,011

ExpensesGeneral Government 865,876 1,286,510 - - 865,876 1,286,510Public Safety 2,332,649 2,439,528 - - 2,332,649 2,439,528Public Works 1,143,457 772,220 - - 1,143,457 772,220Culture and Recreation 164,184 200,044 - - 164,184 200,044Interest on Long-Term Debt 171,237 136,026 - - 171,237 136,026Water and Sewer - - 784,570 727,468 784,570 727,468

Total Expenses 4,677,403 4,834,328 784,570 727,468 5,461,973 5,561,796

Change in Net Position (156,065) (256,747) (63,062) (50,038) (219,127) (306,785)

Net Position-Beginning as Restated 5,840,967 5,961,145 438,579 488,617 6,279,546 6,449,762

Net Position-Ending 5,684,902 5,704,398 375,517 438,579 6,060,419 6,142,977

Changes in Net Position

TotalGovernmental

ActivitiesBusiness-Type

Activities

15

VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Net position of the Village’s governmental activities decreased by 2.7 percent ($5,684,902 in 2019 compared to a restated $5,840,967 in 2018). Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints, totaled $1,360,495 at April 30, 2019. Net position of business-type activities decreased by 14.4 percent ($375,517 in 2019 compared to $438,579 in 2018). Governmental Activities Revenues for governmental activities totaled $4,521,338, while the cost of all governmental functions totaled $4,677,403. This results in a deficit of $156,065. In 2018, expenses of $4,834,328 exceeded revenues of $4,577,581, resulting in a deficit of $256,747. The following table graphically depicts the major revenue sources of the Village. It depicts very clearly the reliance of property taxes and charges for services to fund governmental activities. It also clearly identifies the less significant percentage the Village receives from interest and miscellaneous income.

Charges for Services

10%

Operating Grants/Contrib.

1%

Property Taxes51%

Utility Taxes8%

Sales and Use Taxes

7%

Income Taxes6%

Other Taxes14%

Interest1%

Miscellaneous2%

Revenues by Source - Governmental Activities

16

VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Governmental Activities – Continued The ‘Expenses and Program Revenues’ Table identifies those governmental functions where program expenses greatly exceed revenues.

Business-Type Activities Business-type activities posted total revenues of $721,508, while the cost of all business-type activities totaled $784,570. This results in a deficit of $63,062. In 2018, expenses of $727,468 exceed revenues of $677,430, resulting in a deficit of $50,038. The deficit in the current year was a result of higher than anticipated increases in water costs from suppliers.

The above graph compares program revenues to expenses for water and sewer operations.

$- $500,000

$1,000,000 $1,500,000 $2,000,000 $2,500,000

GeneralGovernment

PublicSafety

PublicWorks

Culture andRecreation

Interest onLong-Term

Debt

Expenses and Program Revenues - Governmental Activities Revenues

Expenses

17

VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the Village’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 Village’s governmental funds reported combining ending fund balances of $2,354,728, which is $202,534 or 7.9 percent, less than last year’s total of $2,557,262. Of the $2,354,728 total, $1,640,819, or approximately 69.7 percent, of the fund balance constitutes unassigned fund balance. The General Fund reported a positive change in fund balance for the year of $213,067, an increase of 13.3 percent. Intergovernmental revenues increased $189,540 over the prior fiscal years. This is attributable to the new local sales tax approved by the Village Board which generated $83,988 in new revenue source. The Village also received its first payment of $35,000 from a sales tax revenue sharing agreement with a neighboring community. Further details are outlined on the General Fund budgetary highlights on the next page. The General Fund is the chief operating fund of the Village. At April 30, 2019, unassigned fund balance in the General Fund was $1,696,417, which represents 93.4 percent of the total fund balance of the General Fund. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance in the General Fund represents approximately 44.8 percent of total General Fund expenditures. The Debt Service Fund reported a deficit in the current year of $32,240 as a result of expenses associated with the refunding of outstanding debt. The economic gain of the refunding was $144,142. The ending fund balance of $119,466 is restricted for future debt service costs. The Capital Projects Fund reported a deficit of $181,290 for this fiscal year. This is a result of planned capital expenditures from existing cash on hand. The Downtown TIF Fund reported a net decrease of $147,382. The Village continued to promote economic development within its downtown area.

18

VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS – Continued Proprietary Funds The Village’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The Village reports the Water and Sewer Fund as a major proprietary fund. This fund accounts for all of the operations of the municipal water and sewer system. Water is purchased primarily from the City of Chicago Heights. The Village purchases water from the Village of South Holland to service property owners north of the interstate. The current year's charges for service of $720,195 increased $43,764 or 6.5 percent. Expenses of $784,570 were $57,102, or 7.8 percent more than the prior year. This resulted in a decrease in net position of $63,062. The Village intends to run the fund at a breakeven rate. Periodically, there will be annual surplus or draw down due to timing of capital projects. The net position in the Water and Sewer Fund at April 30, 2019 was $375,517, while the previous fiscal year reported net position of $438,579. Unrestricted net position in the Water and Sewer Fund was a deficit of $36,572. The Village Board has undertaken the process of evaluating fees in conjunction with the ever increasing cost of water from its suppliers. GENERAL FUND BUDGETARY HIGHLIGHTS The Village Board amends the budget periodically as needed. General Fund actual revenues for the year totaled $4,008,913, compared to budgeted revenues of $4,048,878 or $39,965 less than budgeted. Charges for services, fines and forfeits, and interest were higher than budgeted by $33,261, $17,346, and $13,017, respectively. All other revenues were less than budgeted with the most significant being taxes less than budgeted by $164,888. The General Fund actual expenditures for the year were $263,788 lower than budgeted ($3,784,898 actual compared to $4,048,686 budgeted). All of the functions (general government, public safety, public works and culture and recreation) actual expenditures were lower than budgeted expenditures by $60,590; $112,882; $52,184 and $38,132 respectively due to cost controlling measures throughout the year by the Village's Board and management.

19

VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The Village’s investment in capital assets for its governmental and business type activities as of April 30, 2019 was $7,214,263 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, buildings and improvements, machinery and equipment, vehicles, infrastructure water distribution system.

2019 2018 2019 2018 2019 2018

Land $ 1,421,371 1,413,511 12,500 12,500 1,433,871 1,426,011Land Improvements 166,240 10,713 - - 166,240 10,713Buildings and Improvements 2,357,085 2,468,709 83,680 88,702 2,440,765 2,557,411Machinery and Equipment 373,055 321,238 15,726 49,154 388,781 370,392Vehicles 637,299 680,984 - - 637,299 680,984Infrastructure 1,847,124 1,998,414 - - 1,847,124 1,998,414Water Distribution System - - 300,183 312,711 300,183 312,711

Total 6,802,174 6,893,569 412,089 463,067 7,214,263 7,356,636

Capital Assets - Net of Depreciation

TotalBusiness-typeGovernmental

Activities Activities

This year’s major additions included:

Land $ 7,860 Land Improvements 171,622 Buildings and Improvements 37,358 Machinery and Equipment 146,127 Vehicles 54,870 Water Distribution System 13,246

431,083

Additional information on the Village’s capital assets can be found in note 3 on pages 48 - 49 of this report.

20

VILLAGE OF THORNTON, ILLINOIS Management’s Discussion and Analysis April 30, 2019 CAPITAL ASSETS AND DEBT ADMINISTRATION – Continued Debt Administration At year-end, the Village had total outstanding debt of $2,948,846 as compared to $3,162,821 the previous year, a decrease of 6.8 percent. The following is a comparative statement of outstanding debt:

2019 2018 2019 2018 2019 2018

General Obligation Bonds $ 2,200,000 2,370,000 - - 2,200,000 2,370,000Installment Contracts 748,846 792,821 - - 748,846 792,821

Total 2,948,846 3,162,821 - - 2,948,846 3,162,821

Long-Term Debt Outstanding

TotalBusiness-typeGovernmental

Activities Activities

Additional information on the Village’s long-term debt can be found in Note 3 on pages 50 - 53 of this report. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The Village’s elected and appointed officials considered many factors when setting the fiscal-year 2020 budget, including tax rates, and fees that will be charged for its various activities. One of those factors is the economy. The Village of Thornton is a small bedroom community with limited opportunities for economic development. However, the board and staff have successfully attracted a distillery/brew-pub among other independently owned businesses to the area. The Village is faced with a similar economic environment as many of the other local municipalities are faced with, including inflation, slumping interest rates, and soaring unemployment rates. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the Village’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be directed to Office of the Treasurer, Village of Thornton, 115 East Margaret Street, Thornton, IL 60476.

21

http://www.thornton60476.com/index.asp?Type=B_BASIC&SEC=%7BA4675C4C-14C4-4B54-B955-C871B09036FE%7D

• Government-Wide Financial Statements

• Fund Financial Statements

Governmental Funds

Proprietary Funds

BASIC FINANCIAL STATEMENTS

The basic financial Statements include integrated sets of financial statements as required by the GASB. The setsof statements include:

In addition, the notes to the financial statements are included to provide information that is essential to a user’sunderstanding of the basic financial statements.


Statement of Net PositionApril 30, 2019

See Following Page


Statement of Net PositionApril 30, 2019

ComponentBusiness- Unit

Type PublicActivities Totals Library

Current Assets

Cash and Investments $ 2,341,645 61,928 2,403,573 186,342

Receivables - Net of AllowancesProperty Taxes 1,511,680 - 1,511,680 90,126Other Taxes 111,172 - 111,172 2,876Accounts - 110,410 110,410 -

Due from Other Governments 66,817 - 66,817 -

Prepaids 120,041 8,499 128,540 -

Total Current Assets 4,151,355 180,837 4,332,192 279,344

Noncurrent Assets

Capital Assets Nondepreciable 1,421,371 12,500 1,433,871 - Depreciable 15,336,766 1,812,180 17,148,946 107,864Accumulated Depreciation (9,955,963) (1,412,591) (11,368,554) (91,945)

Total Noncurrent Assets 6,802,174 412,089 7,214,263 15,919

Total Assets 10,953,529 592,926 11,546,455 295,263

Deferred Items - IMRF 586,510 36,309 622,819 24,400Deferred Items - RBP 1,463 - 1,463 51

Total Deferred Outflows of Resources 587,973 36,309 624,282 24,451Total Assets/ Deferred Outflows

of Resources 11,541,502 629,235 12,170,737 319,714

GovernmentalActivities

ASSETS

DEFERRED OUTFLOWS OF RESOURCES

The notes to the financial statements are an integral part of this statement.22

ComponentBusiness- Unit

Type PublicActivities Totals Library

Current LiabilitiesAccounts Payable $ 152,858 190,072 342,930 7,552Accrued Payroll 112,089 4,571 116,660 (3,359)Accrued Interest Payable 39,476 - 39,476 - Due to Other Governments - - - 1,467Current Portion of Long-Term Liabilities 313,442 1,857 315,299 -

Total Current Liabilities 617,865 196,500 814,365 5,660

Noncurrent LiabilitiesCompensated Absences Payable 132,321 7,427 139,748 - Net Pension Liability - IMRF 529,438 32,776 562,214 22,026Total OPEB Liability - RBP 43,706 - 43,706 1,513General Obligation Bonds Payable 1,965,000 - 1,965,000 - Installment Contracts 703,484 - 703,484 -

Total Noncurrent Liabilities 3,373,949 40,203 3,414,152 23,539Total Liabilities 3,991,814 236,703 4,228,517 29,199

Property Taxes 1,531,680 - 1,531,680 90,126Deferred Items - IMRF 274,846 17,015 291,861 11,435Deferred Items - RBP 58,260 - 58,260 2,016

Total Deferred Inflows of Resources 1,864,786 17,015 1,881,801 103,577Total Liabilities and Deferred Inflows

of Resources 5,856,600 253,718 6,110,318 132,776

Net Investment in Capital Assets 3,853,328 412,089 4,265,417 15,919Restricted - Motor Fuel Tax 74,922 - 74,922 - Restricted - Grants 1,762 - 1,762 - Restricted - Public Safety 48,290 - 48,290 - Restricted - Debt Service 79,990 - 79,990 - Restricted - Tax Increment Financing 266,115 - 266,115 - Unrestricted (Deficit) 1,360,495 (36,572) 1,323,923 171,019

Total Net Position 5,684,902 375,517 6,060,419 186,938

NET POSITION

LIABILITIES

ActivitiesGovernmental

DEFERRED INFLOWS OF RESOURCES



Statement of ActivitiesFor the Fiscal Year Ended April 30, 2019

Charges Operating Capitalfor Grants/ Grants/

Services Contributions Contributions

Governmental ActivitiesGeneral Government $ 865,876 177,664 - - Public Safety 2,332,649 242,197 - - Public Works 1,143,457 - 59,349 - Culture and Recreation 164,184 52,163 - - Interest on Long-Term Debt 171,237 - - -

Total Governmental Activities 4,677,403 472,024 59,349 -

Business-Type ActivitiesWater and Sewer 784,570 720,195 - -

Total Primary Government 5,461,973 1,192,219 59,349 -

Component Unit - Public Library 183,745 721 17,820 -

General Revenues Taxes Property Utility Other Intergovernmental - Unrestricted State Sales and Use Income Taxes Video Gaming Taxes Replacement Taxes Other Interest Miscellaneous

Change in Net Position

Net Position - Beginning as Restated

Net Position - Ending

Program Revenues

Expenses


ComponentUnit

Governmental Business-Type PublicActivities Activities Total Library

(688,212) - (688,212) - (2,090,452) - (2,090,452) - (1,084,108) - (1,084,108) -

(112,021) - (112,021) - (171,237) - (171,237) -

(4,146,030) - (4,146,030) -

- (64,375) (64,375) -

(4,146,030) (64,375) (4,210,405) -

- - - (165,204)

2,292,962 - 2,292,962 133,417379,475 - 379,475 - 501,591 - 501,591 -

337,997 - 337,997 - 273,945 - 273,945 -

29,356 - 29,356 - 46,431 - 46,431 3,23335,000 35,000 - 26,280 1,313 27,593 15066,928 - 66,928 35

3,989,965 1,313 3,991,278 136,835

(156,065) (63,062) (219,127) (28,369)

5,840,967 438,579 6,279,546 215,307

5,684,902 375,517 6,060,419 186,938

Net (Expense)/Revenue

Primary Government



Balance Sheet - Governmental FundsApril 30, 2019

Cash and Investments $ 1,698,731Receivables - Net of Allowances

Property Taxes 1,320,284Other Taxes 111,172

Due from Other Funds 22,806Due from Other Governments 61,642Prepaids 120,041

Total Assets 3,334,676

Accounts Payable 65,845Accrued Payroll 112,089Due to Other Funds -

Total Liabilities 177,934

Property Taxes 1,340,284Total Liabilities and Deferred Inflows of Resources 1,518,218

Nonspendable 120,041Restricted - Assigned - Unassigned 1,696,417

Total Fund Balances 1,816,458

Total Liabilities, Deferred Inflows of Resources and Fund Balances 3,334,676

FUND BALANCES

General

ASSETS

LIABILITIES



Debt Capital Downtown

Service Projects TIF Nonmajor Totals

119,466 130,156 76,975 316,317 2,341,645

191,396 - - - 1,511,680- - - - 111,172- - - - 22,806- - - 5,175 66,817- - - - 120,041

310,862 130,156 76,975 321,492 4,174,161

- 47,523 5,244 34,246 152,858- - - - 112,089- - - 22,806 22,806- 47,523 5,244 57,052 287,753

191,396 - - - 1,531,680191,396 47,523 5,244 57,052 1,819,433

- - - - 120,041119,466 - 71,731 319,358 510,555

- 82,633 - 680 83,313- - - (55,598) 1,640,819

119,466 82,633 71,731 264,440 2,354,728

310,862 130,156 76,975 321,492 4,174,161

Capital Projects



Reconciliation of Total Governmental Fund Balance toNet Position - Governmental Activities

April 30, 2019

Total Governmental Fund Balances $ 2,354,728

Amounts reported for governmental activities in the Statement of Net Positionare different because:

Capital assets used in governmental activities are not financialresources and therefore, are not reported in the funds. 6,802,174

Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF 311,664Deferred Items - RBP (56,797)

Long-term liabilities are not due and payable in the currentperiod and therefore are not reported in the funds.

Compensated Absences Payable (165,401)Net Pension Liability - IMRF (529,438)Total OPEB Liability - RBP (43,706)General Obligation Bonds Payable (2,200,000)Installment Contracts (748,846)Accrued Interest Payable (39,476)

Net Position of Governmental Activities 5,684,902



Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental FundsFor the Fiscal Year Ended April 30, 2019

See Following Page


Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental FundsFor the Fiscal Year Ended April 30, 2019

RevenuesTaxes $ 2,771,965Licenses, Permits and Fees 23,967Intergovernmental 722,729Charges for Services 300,961Fines and Forfeitures 124,346Interest 18,017Miscellaneous 46,928

Total Revenues 4,008,913

ExpendituresCurrent

General Government 752,839Public Safety 2,250,653Public Works 611,272Culture and Recreation 170,134

Capital Outlay - Debt Service

Principal Retirement - Interest and Fiscal Charges -

Total Expenditures 3,784,898

Excess (Deficiency) of RevenuesOver (Under) Expenditures 224,015

Other Financing Sources (Uses)Disposal of Capital Assets - Debt Issuance - Transfers In - Transfers Out (10,948)

(10,948)

Net Change in Fund Balances 213,067

Fund Balances - Beginning 1,603,391

Fund Balances - Ending 1,816,458

General


Debt Capital DowntownService Projects TIF Nonmajor Totals

292,343 - 66,487 43,233 3,174,028- - - - 23,967- - - 59,349 782,078- - - - 300,961- - - 22,750 147,096- 2,285 1,541 4,437 26,280- 20,000 - - 66,928

292,343 22,285 68,028 129,769 4,521,338

803 - 66,337 38,637 858,616- - - - 2,250,653- - - 45,257 656,529- - - - 170,134- 289,663 - 203,086 492,749

1,473,975 - - - 1,473,975178,231 - - - 178,231

1,653,009 289,663 66,337 286,980 6,080,887

(1,360,666) (267,378) 1,691 (157,211) (1,559,549)

- 86,088 10,927 - 97,0151,260,000 - - 1,260,000

68,426 - - 210,000 278,426- - (160,000) (107,478) (278,426)

1,328,426 86,088 (149,073) 102,522 1,357,015

(32,240) (181,290) (147,382) (54,689) (202,534)

151,706 263,923 219,113 319,129 2,557,262

119,466 82,633 71,731 264,440 2,354,728

Capital Projects



Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities

For the Fiscal Year Ended April 30, 2019

Net Change in Fund Balances - Total Governmental Funds $ (202,534)

Amounts reported for governmental activities in the Statement of Activitiesare different because:

Governmental funds report capital outlays as expenditures. However, in theStatement of Activities the cost of those assets is allocated over their estimateduseful lives and reported as depreciation expense.

Capital Outlays 417,837Depreciation Expense (509,232)Disposals - Cost (47,764)Disposals - Accumulated Depreciation 47,764

The net effect of deferred outflows (inflows) of resources related to the pensionsnot reported in the funds. Change in Deferred Items - IMRF 686,777 Change in Deferred Items - RBP (56,797)

The issuance of long-term debt provides current financial resources togovernmental funds, while the repayment of the principal on long-termdebt consumes the current financial resources of the governmental funds.

Decrease to Compensated Absences Payable 14,421(Increase) to Net Pension Liability - IMRF (785,840)Decrease to Total OPEB Liability - RBP 58,334Retirement of General Obligation Bonds Payable 1,430,000Issuance of General Obligation Bonds Payable (1,260,000)Retirement of Installment Contracts Payable 43,975

Changes to accrued interest on long-term debt in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. 6,994

Changes in Net Position of Governmental Activities (156,065)



Statement of Net Position - Proprietary Funds

April 30, 2019

See Following Page


Statement of Net Position - Proprietary Funds April 30, 2019

Current AssetsCash and Investments $ 61,928Receivables - Net of Allowances

Accounts 110,410Prepaids 8,499

Total Current Assets 180,837

Noncurrent AssetsCapital Assets

Nondepreciable 12,500Depreciable 1,812,180Accumulated Depreciation (1,412,591)

Total Noncurrent Assets 412,089Total Assets 592,926

Deferred Items - IMRF 36,309

Total Assets and Deferred Outflows of Resources 629,235

Business-Type

Water andSewer

Activities

ASSETS

DEFERRED OUTFLOWS OF RESOURCES


Current LiabilitiesAccounts Payable 190,072Accrued Payroll 4,571Compensated Absences Payable 1,857

Total Current Liabilities 196,500

Noncurrent LiabilitiesCompensated Absences Payable 7,427Net Pension Liability - IMRF 32,776

Total Noncurrent Liabilities 40,203Total Liabilities 236,703

Deferred Items - IMRF 17,015

Total Liabilities/Deferred Inflows of Resources 253,718

Investment in Capital Assets 412,089Unrestricted (Deficit) (36,572)

Total Net Position 375,517

NET POSITION

LIABILITIES


Business-TypeActivitiesWater and

Sewer



Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary FundsFor the Fiscal Year Ended April 30, 2019

Operating RevenuesCharges for Services $ 720,195

Operating ExpensesOperations 720,346Depreciation 64,224

Total Operating Expenses 784,570

Operating Income (Loss) (64,375)

Nonoperating RevenuesInterest Income 1,313

Change in Net Position (63,062)

Net Position - Beginning 438,579

Net Position - Ending 375,517

Activities

SewerWater and

Business-Type



Statement of Cash Flows - Proprietary FundsFor the Fiscal Year Ended April 30, 2019

Cash Flows from Operating ActivitiesReceipts from Customers and Users $ 730,754Payments to Suppliers (706,116)Payments to Employees (93,980)

(69,342)

Cash Flows from Capital and Related Financing ActivitiesPurchase of Capital Assets (13,246)

Cash Flows from Investing ActivitiesInterest Received 1,313

Net Change in Cash and Cash Equivalents (81,275)

Cash and Cash Equivalents - Beginning 143,202

Cash and Cash Equivalents - Ending 61,927

Reconciliation of Operating Income to Net Cash Provided (Used) by Operating ActivitiesOperating Income (Loss) (64,375)Adjustments to Reconcile Operating Income

Income to Net Cash Provided by(Used in) Operating Activities:

Depreciation 64,224Other Expense 5,131(Increase) Decrease in Current Assets 10,559Increase (Decrease) in Current Liabilities (84,881)

Net Cash Provided by Operating Activities (69,342)

ActivitiesWater and

Sewer

Business-Type



Notes to the Financial Statements April 30, 2019

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Village of Thornton, Illinois (Village) provides various municipal services to its residents. These services include police protection, fire protection, paramedic services, water and sewer systems, public works operations, road and bridge maintenance and general administration. The Village is a Home Rule unit under the Home Rule provision of the Illinois State Constitution.

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 Village’s accounting policies established in GAAP and used by the Village are described below.

REPORTING ENTITY

The Village’s financial reporting entity comprises the following:

Primary Government: Village of Thornton

Discretely Presented Component Unit: Thornton Public Library

In determining the financial reporting entity, the Village complies with the provisions of GASB Statement No. 61, “The Financial Reporting Omnibus – an Amendment of GASB Statements No. 14 and No. 34,” and includes all component units that have a significant operational or financial relationship with the Village.

Discretely Presented Component Unit

Discretely presented component units are separate legal entities that meet the component unit criteria described in GASB Statement No. 61 but do not meet the criteria for blending.

Thornton Public Library

The Thornton Public Library has a separate elected board and provides service to residents, generally within the geographic boundaries of the Village. The Library Board of Trustees annually determines its budget and resulting tax levy. Upon approval of the Village, the levy is submitted to the County. All debt of the Library is secured by the full faith and credit of the Village. The Library is considered a component unit of the Village of Thornton for purposes of these financial statements. The Library’s report is presented in the Village of Thornton’s Comprehensive Annual Financial Report.

36

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION Government-Wide Statements The Village’s basic financial statements include both government-wide (reporting the Village as a whole) and fund financial statements (reporting the Village’s major funds). Both the government–wide and fund financial statements categorize primary activities as either governmental or business type. The Village’s police and fire safety, highway and street maintenance and reconstruction, building code enforcement, public improvements, economic development, planning and zoning, culture and recreation, and general administrative services are classified as governmental activities. The Village’s water and sewer activities are classified as business-type activities. In the government-wide Statement of Net Position, both the governmental and business-type activities columns are: (a) presented on a consolidated basis by column, and (b) reported on a full accrual, economic resource basis, which recognizes all long-term assets/deferred outflows and receivables as well as long-term debt/deferred inflows and obligations. The Village’s net position is reported in three parts: net investment in capital assets; restricted; and unrestricted. The Village 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 Village’s functions and business-type activities (general government, public safety, public works, etc). The functions are supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges for services, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, which include 1) changes 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, sales and use taxes, certain intergovernmental revenues, permits and charges for services, etc). This government-wide focus is more on the sustainability of the Village as an entity and the change in the Village’s net position resulting from the current year’s activities. Fund Financial Statements The financial transactions of the Village 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 comprise 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.

37

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION – Continued Fund Financial Statements – Continued Nonmajor funds by category are summarized into a single column. 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 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 Village 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; and

Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

The various funds are reported by generic classification within the financial statements. The following fund types are used by the Village: 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 Village: General fund is the general operating fund of the Village. 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 Village maintains three nonmajor special revenue funds. Debt service fund is used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. The Debt Service Fund is reported as a major fund.

38

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION – Continued Fund Financial Statements – Continued Governmental Funds – Continued 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 Village maintains two major capital projects funds, the Capital Projects Fund and the Downtown TIF Fund. The Capital Projects Fund is used to account for the disbursement of bond proceeds and other resources for capital improvements and acquisitions. The Downtown TIF Fund is used to account for resources used for the acquisition or construction of major capital facilities within the Downtown Tax Increment Financing District. The Village also maintains four nonmajor capital projects funds. 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 Village: Enterprise funds are required to account for operations for which a fee is charged to external users for goods or services and the activity is (a) 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. The Village maintains one major proprietary fund, the Water and Sewer Fund, which is used to account for the provision of water and sewer services to the residents of the Village. 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 MEASUREMENT FOCUS AND BASIS OF ACCOUNTING 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.

39

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued Measurement Focus On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined below. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets/deferred outflows and liabilities/deferred inflows are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. All proprietary 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 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-like 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 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 Village 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.

40

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued Basis of Accounting – Continued 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 taxes, licenses, 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 funds 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 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 Village’s enterprise funds are charges to customers for sales and services. The Village also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY Cash and Investments Cash and cash equivalents on the Statement of Net Position are considered to be cash on hand, demand deposits, and cash with fiscal agent. For the purpose of the proprietary funds “Statement of Cash Flows,” cash and cash equivalents are considered to be cash on hand, demand deposits, cash with fiscal agent, and all highly liquid investments with an original maturity of three months or less. Investments are generally reported at fair value. Short-term investments are reported at cost, which approximates fair value. For investments, the Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. All of the Village’s investments are in 2a7-like investment pools that are measured at the net asset value per share determined by the pool.

41

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued Receivables In the government-wide financial statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivables balances for governmental activities include property taxes, sales and use taxes, income taxes, utility taxes and grants. Business-type activities report utility charges as their major receivables. Interfund Receivables, Payables and Activity Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements. Prepaids Prepaids are valued at cost, which approximates market. The cost of governmental fund-type prepaids are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both the government-wide and fund financial statements. Capital Assets Capital assets purchased or acquired with an original cost of $2,500 or more 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 Village as a whole. When purchased, such assets are recorded as expenditures in the governmental funds and capitalized. Infrastructure such as streets, traffic signals and signs 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.

42

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – 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. Donated capital assets are capitalized at estimated fair market value on the date donated. Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives:

Land Improvements 15 - 20 Years Buildings and Improvements 5 - 45 Years Water Distribution System 40 Years Machinery and Equipment 3 - 20 Years Vehicles 6 Years Infrastructure 20 - 40 Years

Deferred Outflows/Inflows of Resources Deferred outflow/inflow of resources represents an acquisition/reduction of net position that applies to a future period and therefore will not be recognized as an outflow of resources (expense)/inflow of resources (revenue) until that future time. Compensated Absences The Village accrues accumulated unpaid vacation and associated employee-related costs when earned (or estimated to be earned) by the employee. In accordance with GASB Statement No. 16, no liability is recorded for nonvesting accumulation rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave that is estimated to be taken as “terminal leave” prior to retirement. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

43

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued Long-Term Obligations In the government-wide financial statements, and 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.”

44

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY BUDGETARY INFORMATION The General Fund Budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America. The Village follows these procedures in establishing the appropriation data reflected in the financial statements.

1. The Village Treasurer submits to the Village Board of Trustees a proposed operating appropriation ordinance (budget) for the fiscal year commencing the following May 1. The operating budget include proposed expenditures and the means of financing them.

2. Public hearings are conducted by the Village to obtain taxpayer comments. 3. Subsequently, the appropriation ordinance is legally enacted through passage of an ordinance. 4. Formal budgetary integration is employed as a management control device during the year for all

funds. 5. Appropriations for the general and certain special revenue funds are adopted on a basis consistent

with accounting principles generally accepted in the United States of America. 6. Budgetary authority lapses at the year-end. 7. State law requires that “expenditures be made in conformity with appropriation/budget.” As

required under the Budget Act, transfers between line items and departments may be made by administrative action. Amounts to be transferred between funds would require Village Board approval. The level of legal control is generally considered to be the fund budget in total.

8. During the fiscal year the budget was amended by Village Board. Original and final amended budget amounts have been presented.

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:

$ 1,322,609

Fund Excess

Debt

DEFICIT FUND BALANCE The following funds had deficit fund balance as of the date of this report:

$ 55,598

Fund Deficit

Blackstone TIF

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds. 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 Village's funds. The Village's investment policy authorizes the Village to invest in all investments allowed by Illinois Compiles Statutes. Permitted Deposits and Investments – Statutes authorize the Village to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating services, and the Illinois Funds. The 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. Village Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits. At year-end, the carrying amount of the Village’s deposits for governmental and business-type activities totaled $1,247,573 and the bank balances totaled $1,306,615. In addition, the Village had $1,156,000 invested in the Illinois Funds with an average maturity of less than one year.

Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Villages’ investment policy does not limit the Village’s investment portfolio to specific maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statues authorize the Village to invest in securities which are guaranteed by the full faith and credit of the U.S. Government, direct obligations of qualified financial institutions, short-term obligations of U.S. corporations meeting certain requirements, and registered money market mutual funds meeting certain requirements and the Illinois Funds. The Village’s investment in the Illinois Funds is rated AAAm by Standard and Poor’s. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Village’s deposits may not be returned to it. The Village’s investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral witnessed by a written collateral agreement and held by an independent third party. At year-end, the Village’s total bank balances were fully collateralized or insured.

46

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued Village Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued Custodial Credit Risk – Continued. For an investment, this is the risk that in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Village’s investment policy does not mitigate custodial credit risk for investments. Illinois Funds are not subject to custodial credit risk. Concentration Risk. This is the risk of loss attributed to the magnitude of the Village’s investment in a single issuer. The Village’s investment policy does not address concentration risk. At year-end, the Village does not have any investments over 5 percent of the total cash and investment portfolio (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments). PROPERTY TAXES Property taxes for 2018 attach as an enforceable lien on January 1, 2018, 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 Cook County and are payable in two installments, on or about March 1 and September 1. The County collects such taxes and remits them periodically. INTERFUND TRANSFERS Interfund transfers for the year consisted of the following:

Transfer In Transfer Out

Debt Service General $ 10,948 (2)Debt Service Nonmajor 57,478 (2)

Nonmajor Downtown TIF 160,000 (1)Nonmajor Nonmajor 50,000 (1)

278,426

Amount

Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) move receipts restricted to debt service from the funds collecting the receipts to the Debt Service Fund as debt service payments become due.

47

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued INTERFUND BALANCES Interfund balances are advances in anticipation of receipts to cover temporary cash shortages. The composition of interfund balances as of the date of this report, is as follows:

Receivable Fund Payable Fund

General Nonmajor $ 22,806

Amount

CAPITAL ASSETS Governmental Activities Governmental capital asset activity for the year was as follows:

Ending Increases Decreases Balances

Nondepreciable Capital AssetsLand $ 1,413,511 7,860 - 1,421,371

Depreciable Capital AssetsLand Improvements 388,847 171,622 - 560,469Buildings and Improvements 3,988,175 37,358 - 4,025,533Machinery and Equipment 2,181,135 146,127 - 2,327,262Vehicles 2,348,387 54,870 47,764 2,355,493Infrastructure 6,068,009 - - 6,068,009

14,974,553 409,977 47,764 15,336,766

Less Accumulated DepreciationLand Improvements 378,134 16,095 - 394,229Buildings and Improvements 1,519,466 148,982 - 1,668,448Machinery and Equipment 1,859,897 94,310 - 1,954,207Vehicles 1,667,403 98,555 47,764 1,718,194Infrastructure 4,069,595 151,290 - 4,220,885

9,494,495 509,232 47,764 9,955,963

Total Net Depreciable Capital Assets 5,480,058 (99,255) - 5,380,803

Total Net Capital Assets 6,893,569 (91,395) - 6,802,174

BeginningBalances

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued CAPITAL ASSETS – Continued Governmental Activities – Continued Depreciation expense was charged to governmental activities as follows:

General Government $ 55,761 Public Safety 185,678 Public Works 251,448 Culture and Recreation 16,345

509,232 Business-Type Activities Business-type capital asset activity for the year was as follows:


Nondepreciable Capital AssetsLand $ 12,500 - - 12,500

Depreciable Capital AssetsBuildings and Improvements 244,716 - - 244,716Machinery and Equipment 638,500 - - 638,500Water Distribution System 915,718 13,246 - 928,964

1,798,934 13,246 - 1,812,180

Less Accumulated DepreciationBuildings and Improvements 156,014 5,022 - 161,036Machinery and Equipment 589,346 33,428 - 622,774Water Distribution System 603,007 25,774 - 628,781

1,348,367 64,224 - 1,412,591

Total Net Depreciable Capital Assets 450,567 (50,978) - 399,589

Total Net Capital Assets 463,067 (50,978) - 412,089

BeginningBalances

Depreciation expense was charged to business-type activities:

Water and Sewer $ 64,224

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT General Obligation Bonds The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village. General obligation bonds have been issued for governmental activities. General obligation bonds currently outstanding are as follows:

EndingIssue Issuances Retirements Balances

$ 1,295,000 - 1,295,000 * -

1,075,000 - 135,000 940,000

- 1,260,000 - 1,260,000

2,370,000 1,260,000 1,430,000 2,200,000

$1,400,000 General ObligationBonds of 2014, due in annualinstallments of $70,000 to $175,000plus interest at 3.00% to 4.10%through December 15, 2024.

BeginningBalances

$1,855,000 General ObligationBonds of 2008, due in annualinstallments of $60,000 to $140,000plus interest at 5.30% to 5.75%through December 15, 2029.

$1,260,000 General ObligationBonds of 2018, due in annualinstallments of $95,000 to $130,000plus interest at 2.90% throughDecember 15, 2029.

*Refunding

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Installment Contracts The government enters into installment contracts to provide funds for the acquisition of capital assets. Installment contracts currently outstanding are as follows:

EndingIssue Issuances Retirements Balances

$ 792,821 - 43,975 748,846

Installment Contract of 2017, due inannual installments of $68,426including interest at 3.127% throughSeptember 1, 2032.

BeginningBalances

Long-Term Liability Activity Changes in long-term liabilities during the fiscal year were as follows:

AmountsEnding Due within

Additions Deductions Balances One Year

Governmental ActivitiesCompensated Absences $ 179,822 14,421 28,842 165,401 33,080Net Pension Liability/(Asset) - IMRF (256,402) 785,840 - 529,438 - Total OPEB Liability - RBP 102,040 - 58,334 43,706 - General Obligation Bonds 2,370,000 1,260,000 1,430,000 2,200,000 235,000Installment Contracts 792,821 - 43,975 748,846 45,362

3,188,281 2,060,261 1,561,151 3,687,391 313,442

Business-Type ActivitiesCompensated Absences 8,799 970 485 9,284 1,857Net Pension Liability/(Asset) - IMRF (18,040) 50,816 - 32,776 -

(9,241) 51,786 485 42,060 1,857

Type of DebtBalances

as Restated

Beginning

For governmental activities, payments on the compensated absences, the net pension liability/(asset), and the total OPEB liability are made by the General Fund. The Debt Service Fund makes payments on the general obligation bonds and on the installment contracts. For the business-type activities, the compensated absences and the net pension liability/(asset) are liquidated by the Water and Sewer Fund.

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Debt Service Requirements to Maturity The annual debt service requirements to maturity, including principal and interest, are as follows:

Interest

$ 235,000 80,006 45,362 23,064250,000 64,220 46,791 21,635265,000 56,100 48,265 20,161270,000 47,485 49,786 18,640280,000 38,135 51,356 17,070290,000 28,200 52,973 15,453120,000 17,690 54,644 13,782120,000 14,210 56,365 12,061120,000 10,730 58,141 10,285120,000 7,250 59,974 8,452130,000 3,770 61,864 6,562

- - 63,813 4,613- - 65,825 2,601- - 33,687 519

Total 2,200,000 367,796 748,846 174,898

203120322033

YearFiscal

2030

2020

2029

2021

20272028

2026

20222023

Installment Contracts

Governmental Activities

20242025

General ObligationBonds

Principal Interest Principal

Defeased Debt On September 18, 2018, the Village issued $1,260,000 par value General Obligation Refunding Bonds, Series of 2018 to fully refund $1,260,000 of the General Obligation Bonds Series of 2008. The Village defeased bonds by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payment of the old bonds. Since the requirements that normally satisfy defeasance have been met, the financial statements reflect satisfaction of the original liability through the irrevocable transfer to an escrow agent of an amount computed to be adequate to meet the future debt service requirements of the issue. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the government’s basic financial statements. Through this refunding, the Village reduced its total debt service by $170,630 and obtained an economic gain of $144,142.

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

LONG-TERM DEBT – Continued

Legal Debt Margin

Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property…(2) if its population is more than 25,000 and less than 500,000 an aggregate of one percent:…indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum…shall not be included in the foregoing percentage amounts.” To date the Illinois General Assembly has set no limits for home rule municipalities. The Village is a home rule municipality.

FUND BALANCE/NET POSITION

Net Position Classifications

Net investment in capital assets was comprised of the following as of April 30, 2019:

Governmental ActivitiesCapital Assets - Net of Accumulated Depreciation $ 6,802,174

Less Capital Related Debt:General Obligation Bonds of 2014 (940,000)General Obligation Bonds of 2018 (1,260,000)Installment Contracts (748,846)

Net Investment in Capital Assets 3,853,328

Business-Type ActivitiesCapital Assets - Net of Accumulated Depreciation 412,089

Fund Balance Classifications

In the governmental funds financial statements, the Village 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 Village first utilizes committed, then assigned and then unassigned fund balance when an expenditure is incurred for purposes for which all three unrestricted fund balances are available.

Minimum Fund Balance Policy. The Village policy manual states that the General Fund should maintain a minimum fund balance equal to 33% to 50% of budgeted operating expenditures.

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.

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued FUND BALANCE/NET POSITION - 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 Board of Trustees; 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 Board of Trustees’ intent to be used for specific purposes but are neither restricted nor committed. Intent is expressed by a) the Board of Trustees itself or b) a body or official to which the Board of Trustees has delegated the authority to assign amounts to be used for specific purposes. The Village’s highest level of decision-making authority is the Board of Trustees, 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. The following is a schedule of fund balance classifications for the governmental funds as of the date of this report:

Debt Capital DowntownService Projects TIF Nonmajor Totals

Fund BalancesNonspendable

Prepaids $ 120,041 - - - - 120,041

RestrictedMotor Fuel Tax - - - - 74,922 74,922 Grants - - - - 1,762 1,762 Public Safety - - - - 48,290 48,290 Tax Increment Financing - - - 71,731 194,384 266,115 Debt Service - 119,466 - - - 119,466

- 119,466 - 71,731 319,358 510,555

AssignedCapital Projects - - 82,633 - 680 83,313

Unassigned 1,696,417 - - - (55,598) 1,640,819

Total Fund Balances 1,816,458 119,466 82,633 71,731 264,440 2,354,728

General

Capital Projects

54

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued NET POSITION RESTATEMENT Beginning net position was restated due to the implementation of GASB Statement No. 75. The following is a summary of the net position as originally reported and as restated:

Net Position As Restated (Decrease)

Governmental Activities $ 5,704,398 5,840,967 136,569

As Reported

NOTE 4 – OTHER INFORMATION RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and injuries to the Village’s employees. These risks are provided for through participation in the Illinois Municipal League Risk Management Association and private insurance coverage. The Village has purchased insurance from private insurance companies, covered risks included medical, dental, life and other. Premiums have been displayed as expenditures/expenses in appropriate funds. There were no significant changes in insurance coverages from the prior year and settlements did not exceed insurance coverage in any of the past three fiscal years. Illinois Municipal League Risk Management Association (IMLRMA) The Village participates in the Illinois Municipal League Risk Management Association (IMLRMA). IMLRMA is an organization of municipalities and special districts in Illinois, which have formed an association under the Illinois Intergovernmental Cooperation Statute to pool its risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers’ compensation claim administration/litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. Each member appoints one delegate to represent the member on the Board of Directors. The Village does not exercise any control over the activities of the Association beyond its representation on the Board of Directors. The Village participates in the minimum/maximum program with the Association Initial contributions are determined each year based on administrative expenses plus 80% of the normal loss fund. Annually the claims of members participating in the program are reviewed and when the Village’s paid claims dollars exceed 100% of the loss fund, additional amounts will be due from the Village up to, but not to exceed 120% of the normal loss fund. The Village’s payments to IMLRMA are displayed on the financial statements as expenditures/expenses in appropriate funds.

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued CONTINGENT LIABILITIES Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village's attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. 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 Village expects such amounts, if any, to be immaterial. COMMITMENTS – SALES TAX REBATE AGREEMENT The Village of Thornton has entered into an intergovernmental agreement with the Village of Homewood for sales tax rebate related to a local company located primarily within the limits of Homewood. It operates a portion of their lumber yard on adjacent property within the Village of Thornton. Under this agreement, the Village of Thornton receives a portion of the sales taxes. For the fiscal year ended April 30, 2019, the Village received a total of $35,000 in sales taxes under this agreement. EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLAN The Village contributes to one defined benefit pension plan, the Illinois Municipal Retirement Fund (IMRF), a defined benefit agent multiple-employer public employee retirement system. 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. Illinois Municipal Retirement Fund (IMRF) Plan Descriptions Plan Administration. All employees 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).

56

http://www.imrf.org/

VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLAN – Continued Illinois Municipal Retirement Fund (IMRF) – Continued Plan Descriptions – Continued Benefits Provided – Continued. 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.

Plan Membership. As of December 31, 2018, the measurement date, the following employees were covered by the benefit terms:

Inactive Plan Members Currently Receiving Benefits 19Inactive Plan Members Entitled to but not yet Receiving Benefits 21Active Plan Members 29

Total 69

Contributions. As set by statute, the Village’s Regular Plan Members are required to contribute 4.5% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. For the year-ended April 30, 2019, the Village’s contribution was 7.60% of covered payroll and the Library’s contribution was 7.54% of covered payroll.

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) – Continued

Plan Descriptions – Continued Net Pension Liability. The Village’s net pension liability was measured as of December 31, 2018. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.

Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed, as of December 31, 2018, using the following actuarial methods and assumptions:

Actuarial Cost Method Entry AgeNormal

Asset Valuation Method Market

Actuarial AssumptionsInterest Rate 7.25%

Salary Increases 3.39% - 14.25%

Cost of Living Adjustments 2.50%

Inflation 2.50%

For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) – Continued Plan Descriptions – Continued Actuarial Assumptions – Continued.

Long-TermExpected Real

Target Rate of ReturnFixed Income 28.00% 3.75%Domestic Equities 37.00% 7.15%International Equities 18.00% 7.25%Real Estate 9.00% 6.25%Blended 7.00% 3.20% - 8.50%Cash and Cash Equivalents 1.00% 2.50%

Asset Class

Discount Rate The discount rate used to measure the total pension liability was 7.25% and 7.50% in 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 Village 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. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate as well as what the Village’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

Discount Rate 1% Increase(7.25%) (8.25%)

Net Pension Liability/ (Asset)Village $ 1,602,996 562,214 (270,679)Library 62,801 22,026 (10,604) Totals 1,665,797 584,240 (281,283)

1% Decrease(6.25%)

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) – Continued

Changes in the Net Pension Liability/(Asset)

Village Library Totals

Total Pension LiabilityService Cost $ 158,977 6,228 165,205Interest 444,711 17,122 461,833Differences Between Expected

and Actual Experience (164,063) (6,427) (170,490)Change of Assumptions 225,581 8,838 234,419Benefit Payments, Including

Refunds of Member Contributions (227,462) (8,911) (236,373)Net Change in Total Pension Liability 437,744 16,850 454,594Total Pension Liability - Beginning 6,027,578 165,781 6,193,359

Total Pension Liability - Ending 6,465,322 182,631 6,647,953

Plan Fiduciary Net PositionContributions - Employer 132,358 5,185 137,543Contributions - Members 80,314 3,146 83,460Net Investment Income (299,489) (11,733) (311,222)Benefit Payments, Including Refunds

of Member Contributions (227,462) (8,911) (236,373)Other (Net Transfer) (84,633) (3,316) (87,949)Net Change in Plan Fiduciary Net Position (398,912) (15,629) (414,541)Plan Net Position - Beginning 6,302,020 176,234 6,478,254

Plan Net Position - Ending 5,903,108 160,605 6,063,713

Employer's Net Pension Liability 562,214 22,026 584,240

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund (IMRF) – Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended April 30, 2019, the Village recognized pension expense of $227,630 and the Library recognized pension expense of $9,051. At April 30, 2019, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Deferred DeferredOutflows of Inflows of Outflows of Inflows ofResources Resources Resources Resources Totals

Difference Between Expected and Actual Experience $ 43,450 (161,540) 1,702 (6,329) (122,717)

Change in Assumptions 179,715 (130,321) 7,041 (5,106) 51,329Net Difference Between

Projected and Actual 370,851 - 14,529 - 385,380Total Pension Expense to be Recognized in Future Periods 594,016 (291,861) 23,272 (11,435) 313,992Pension Contributions Made Subsequent to the Measurement Date 28,803 - 1,128 - 29,931

Total Deferred Amounts Related to IMRF 622,819 (291,861) 24,400 (11,435) 343,923

Village Library

$29,931 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the reporting year ended April 30, 2020. 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:

FiscalYear Village Library Total

2020 $ 82,185 3,220 85,405 2021 12,745 499 13,244 2022 44,475 1,742 46,217 2023 162,750 6,376 169,126 2024 - - -

Thereafter - - -

Total 302,155 11,837 313,992

Outflows of ResourcesNet Deferred

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS General Information about the OPEB Plan Plan Description. The Village’s defined benefit OPEB plan, Retiree Benefits Plan (RBP), provides OPEB for all permanent full-time general and public safety employees of the Village. RBP is a single-employer defined benefit OPEB plan administered by the Village. Article 11 of the State Compiled Statutes grants the authority to establish and amend the benefit terms and financing requirements to the Village Board. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits Provided. RBP provides healthcare benefits for retirees and their dependents. Eligible retirees may continue coverage into retirement on the Village medical plan on a pay-all basis. Coverage is also available for eligible dependents on a pay-all basis. Coverage can continue upon the participant reaching Medicare eligibility. Coverage for dependents can continue upon the death of the retiree given that contributions continue. Plan Membership. As of April; 30, 2019, the measurement date, the following employees were covered by the benefit terms:

Village Library Totals

Inactive Plan Members Currently Receiving Benefits - - - Inactive Plan Members Entitled to but not yet Receiving Benefits - - - Active Plan Members 18 1 19

Totals 18 1 19 Total OPEB Liability The Village’s total OPEB liability was measured as of April 30, 2019, and was determined by an actuarial valuation as of that date.

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS – Continued Actuarial Assumptions and Other Inputs. The total OPEB liability in the April 30, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Inflation 3.00%

Salary Increases 4.00%

Discount Rate 3.21%

Healthcare Cost Trend Rates

Retirees' Share of Benefit-Related Costs 100% of the Blended Cost of Coverage

7.1% (PPO), 6.6% (HMO) & 7.2%(PPO/HSA) for 2019, decreasing 0.2% peryear to an ultimate rate of 4.5% for 2033 andlater years

The discount rate was based on a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females with mortality improvement projected to 2016 using Scale AA to the PubS.H-2010 - General Mortality Table. The actuarial assumptions used in the April 30, 2019 valuation were based on the results of an actuarial experience study for the period May 1, 2018 – April 30, 2019. Change in the Total OPEB Liability

Library Totals

Balance at April 30, 2018 $ 102,040 3,531 105,571

Changes for the Year:Service Cost 1,571 54 1,625 Interest on the Total Pension Liability 3,687 129 3,816 Changes of Benefit Terms - - - Difference Between Expected and Actual Experience (10,320) (357) (10,677) Changes of Assumptions or Other Inputs (3,731) (129) (3,860) Benefit Payments (925) (32) (957) Other Changes (48,616) (1,683) (50,299)

Net Changes (58,334) (2,018) (60,352)

Balance at April 30, 2019 43,706 1,513 45,219

Village

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS – Continued Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability, calculated using a Single Discount Rate of 3.21%, as well as what the total OPEB liability would be if it were calculated using a Single Discount Rate that is one percentage point lower or one percentage point higher:

Current Discount Rate 1% Increase

(3.21%) (4.21%)

Village $ 47,666 43,706 40,007

Library 1,650 1,513 1,385

Total OPEB Liability 49,316 45,219 41,392

1% Decrease(2.21%)

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:

HealthcareCost Trend

Rates(Varies) (Varies)

Village $ 38,796 43,706 49,330

Library 1,343 1,513 1,707

Total OPEB Liability 40,139 45,219 51,037

(Varies)

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 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 For the year ended April 30, 2019, Village recognized OPEB expense of $47,079 and Library recognized OPEB expense of $1,630 At April 30, 2019, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred Deferred DeferredOutflows of Inflows of Outflows of Inflows ofResources Resources Resources Resources Totals

Difference Between Expected and Actual Experience $ - (9,352) - (324) (9,676)

Change in Assumptions 1,463 (48,908) 51 (1,692) (49,086)Net Difference Between

Projected and Actual - - - - -

Total Deferred Amounts Related to OPEB 1,463 (58,260) 51 (2,016) (58,762)

Village Library

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

FiscalYear Village Library Totals

2020 $ (5,870) (203) (6,073)2021 (5,870) (203) (6,073)2022 (5,870) (203) (6,073)2023 (5,870) (203) (6,073)2024 (5,870) (203) (6,073)

Thereafter (27,447) (950) (28,397)

Totals (56,797) (1,965) (58,762)

Net Deferred (Inflows) of Resources

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued COMPONENT UNIT – THORNTON PUBLIC LIBRARY DEPOSITS AND INVESTMENTS Permitted Deposits and Investments – Statutes authorize the Library 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 and Illinois Funds. Library Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits. At year-end, the carrying amount of the Library’s deposits totaled $186,342 and the bank balances totaled $189,698. Interest Rate Risk. On February 19, 2014 the Library’s board adopted the Library’s investment policy. Credit Risk. On February 19, 2014 the Library’s board adopted the Library’s investment policy. Custodial Credit Risk. On February 19, 2014 the Library’s board adopted the Library’s investment policy. At year-end, all deposits are collateralized. Concentration Risk. On February 19, 2014 the Library’s board adopted the Library’s investment policy. At year-end, the Library has no investments that represent over 5 percent of the total cash and investment portfolio. PROPERTY TAXES Property taxes for 2018 attach as an enforceable lien on January 1, 2018, 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 Cook County and are payable in two installments, on or about March 1 and September 1. The County collects such taxes and remits them periodically. NET POSITION RESTATEMENT Beginning net position was restated due to the implementation of GASB Statement No. 75. The following is a summary of the net position as originally reported and as restated:

Net Position As Restated (Decrease)

Governmental Activities $ 218,838 215,307 (3,531)

As Reported

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VILLAGE OF THORNTON, ILLINOIS Notes to the Financial Statements April 30, 2019 NOTE 4 – OTHER INFORMATION – Continued COMPONENT UNIT – THORNTON PUBLIC LIBRARY – Continued CAPITAL ASSETS Capital assets purchased or acquired with an original cost of $2,500 or more 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 Library as a whole. The valuation basis for general capital assets are historical cost, or where historical cost is not available, estimated historical cost based on replacement costs. Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives:

Building and Improvements 15 – 20 Years Equipment 5 – 45 Years

Component unit capital asset activity for the year was as follows:


Depreciable Capital AssetsBuildings and Improvements $ 55,079 - - 55,079Equipment 52,785 - - 52,785

107,864 - - 107,864

Less Accumulated DepreciationBuildings and Improvements 38,556 2,754 - 41,310Equipment 50,252 383 - 50,635

88,808 3,137 - 91,945

Total Net Capital Assets 19,056 (3,137) - 15,919

BeginningBalances

Depreciation expense was charged to component unit activities as follows:

Thornton Public Library $ 3,137

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• Schedule of Employer Contributions Illinois Municipal Retirement Fund

• Schedule of Changes in the Employer's Net Pension Liability Illinois Municipal Retirement Fund

• Schedule of Changes in the Employer's Total OPEB Liability Retiree Benefit Plan

• Budgetary Comparison ScheduleGeneral Fund

Notes to the Required Supplementary Information

REQUIRED SUPPLEMENTARY INFORMATION

Required supplementary information includes financial information and disclosures that are required by theGASB but are not considered a part of the basic financial statements. Such information includes:

Budgetary Information – Budgets are adopted on a basis consistent with generally accepted accountingprinciples.


Illinois Municipal Retirement Fund

Required Supplementary InformationSchedule of Employer ContributionsApril 30, 2019

Contributions asFiscal a Percentage ofYear Covered Payroll

2016 Total $ 161,431 $ 161,431 $ - $ 1,409,880 11.45%2017 Total 135,562 135,562 - 1,467,132 9.24%2018 Total 140,511 140,511 - 1,634,983 8.59%

2019 Village 123,436 123,436 - 1,624,048 7.60%Library 4,712 4,712 - 62,497 7.54%

Total 128,148 128,148 - 1,686,545 7.60%

Notes to the Required Supplementary Information:

Actuarial Cost Method Entry Age NormalAmortization Method Level % Pay (Closed)Remaining Amortization Period 25 YearsAsset Valuation Method 5-Year Smoothed MarketInflation 2.75%Salary Increases 3.75% - 14.50%Investment Rate of Return 7.50%Retirement Age See the Notes to the Financial StatementsMortality MP-2014 (bsse year 2012)

Contributionsin Relation to

Actuarially the Actuarially Contribution

Note: This schedule is intended to show information for ten years. Additional information will be displayed asit becomes available.

Determined Determined Excess/Contribution Contribution (Deficiency) Payroll

Covered

68


Illinois Municipal Retirement Fund

Required Supplementary Information

Schedule of Changes in the Employer's Net Pension Liability

April 30, 2019

2017

Total Pension LiabilityService Cost $ 130,859 156,684 Interest 405,990 430,106 Changes in Benefit Terms - - Differences Between Expected

and Actual Experience 26,872 (93,760) Change of Assumptions 9,001 (9,255) Benefit Payments, Including

Refunds of Member Contributions (250,841) (262,037)

Net Change in Total Pension Liability 321,881 221,738 Total Pension Liability - Beginning 5,473,193 5,795,074

Total Pension Liability - Ending 5,795,074 6,016,812

Plan Fiduciary Net PositionContributions - Employer 161,431 135,562 Contributions - Members 63,444 66,030 Net Investment Income 27,458 364,524 Benefit Payments, Including

Refunds of Member Contributions (250,841) (262,037) Administrative Expense (242,213) 36,747

Net Change in Plan Fiduciary Net Position (240,721) 340,826 Plan Net Position - Beginning 5,504,664 5,263,943

Plan Net Position - Ending 5,263,943 5,604,769

Employer's Net Pension Liability/(Asset) $ 531,131 412,043

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 90.83% 93.15%

Employee Payroll $ 1,409,880 1,467,132

Employer's Net Pension Liability/(Asset) as a Percentage of Employee Payroll 37.67% 28.08%

Note: This schedule is intended to show information for ten years. Additional information will be displayed asit becomes available.

2016

69

2018 Village

153,517 158,977 6,228 165,205 447,412 444,711 17,122 461,833

- - - -

76,100 (164,063) (6,427) (170,490) (244,319) 225,581 8,838 234,419

(256,163) (227,462) (8,911) (236,373)

176,547 437,744 16,850 454,594 6,016,812 6,027,578 165,781 6,193,359

6,193,359 6,465,322 182,631 6,647,953

144,838 132,358 5,185 137,543 74,742 80,314 3,146 83,460

976,515 (299,489) (11,733) (311,222)

(256,163) (227,462) (8,911) (236,373) (66,447) (84,633) (3,316) (87,949)

873,485 (398,912) (15,629) (414,541) 5,604,769 6,302,020 176,234 6,478,254

6,478,254 5,903,108 160,605 6,063,713

(284,895) 562,214 22,026 584,240

104.60% 91.30% 87.94% 91.21%

1,639,365 1,598,519 62,625 1,661,144

-17.38% 35.17% 35.17% 35.17%

2019Library Totals

70


Retiree Benefit Plan

Required Supplementary InformationSchedule of Changes in the Employer's Total OPEB Liability April 30, 2019

Village Library TotalsTotal OPEB Liability

Service Cost $ 1,571 54 1,625 Interest 3,687 129 3,816 Changes in Benefit Terms (10,320) (357) (10,677) Differences Between Expected and Actual Experience (3,731) (129) (3,860) Change of Assumptions or Other Inputs (925) (32) (957) Benefit Payments (48,616) (1,683) (50,299) Net Change in Total OPEB Liability (58,334) (2,018) (60,352) Total OPEB Liability - Beginning 102,040 3,531 105,571

Total OPEB Liability - Ending 43,706 1,513 45,219

Covered Payroll $ 1,169,493 40,485 1,209,978

Total OPEB Liability as a Percentage of Covered Payroll 3.74% 3.74% 3.74%

Notes:

Fiscal Year PPO HMO PPO/HAS

2020 6.91% 6.45% 7.01%2021 6.73% 6.30% 6.81%2022 6.54% 6.15% 6.62%2023 6.36% 6.00% 6.43%2024 6.17% 5.85% 6.24%2025 5.99% 5.70% 6.04%2026 5.80% 5.55% 5.85%2027 5.61% 5.40% 5.66%2028 5.43% 5.25% 5.46%2029 5.24% 5.10% 5.27%2030 5.06% 4.95% 5.08%2031 4.87% 4.80% 4.89%2032 4.69% 4.65% 4.69%

Ultimate 4.50% 4.50% 4.50%

In 2019, there was no change in the healthcare trend rates from the prior year.

4/30/2019

Changes of Assumptions. Changes of assumptions and other inputs reflect the effects of changes in the trendrate each period. The following are the trend rates used in each period:

Changes of Benefit Terms. There was no change in the retirees' share of health insurance premiums.

This schedule is intended to show information for ten years. Information for additional years will be displayedas it becomes available.

71


General Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualFor the Fiscal Year Ended April 30, 2019

Final Actual

RevenuesTaxes $ 2,936,853 2,936,853 2,771,965Licenses, Permits and Fees 38,500 38,500 23,967Intergovernmental 664,925 664,925 722,729Charges for Services 267,700 267,700 300,961Fines and Forfeits 107,000 107,000 124,346Interest 5,000 5,000 18,017Miscellaneous 28,900 28,900 46,928

Total Revenues 4,048,878 4,048,878 4,008,913

ExpendituresGeneral Government 767,619 813,429 752,839Public Safety 2,363,535 2,363,535 2,250,653Public Works 663,456 663,456 611,272Culture and Recreation 254,076 208,266 170,134

Total Expenditures 4,048,686 4,048,686 3,784,898

Excess (Deficiency) of RevenuesOver (Under) Expenditures 192 192 224,015

Other Financing (Uses)Transfer Out - - (10,948)

Net Change in Fund Balance 192 192 213,067

Fund Balance - Beginning 1,603,391

Fund Balance - Ending 1,816,458

OriginalBudget

72

Such statements and schedules include:

• Budgetary Comparison Schedules – Major Governmental FundsGeneral FundDebt Service FundCapital Projects FundDowntown Tax Increment Financing – Capital Projects Fund

• Nonmajor Governmental FundsCombining Balance SheetCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesBudgetary Comparison Schedules

Motor Fuel Tax – Special Revenue FundGrants – Special Revenue FundDEA – Special Revenue FundIndustrial Tax Increment Financing – Capital Projects FundBlackstone Tax Increment Financing – Capital Projects FundDowntown Tax Increment Financing #3 – Capital Projects FundVehicle Replacement – Capital Projects Fund

• Budgetary Comparison Schedules – Enterprise FundWater and Sewer

• Consolidated Financial Year-End Report

OTHER SUPPLEMENTARY INFORMATION

Other supplementary information includes financial statements and schedules not required by the GASB, nor apart of the basic financial statements, but are presented for purposes of additional analysis.

The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other thanfiduciary funds or capital projects funds) that are legally restricted to expenditure for specified purposes.

The Grants Fund is used to account for revenues that are restricted due to the covenants of the specific grantagreements. The Village receives various grants on an ongoing basis and these funds can be used for such itemsas capital expenditures or law enforcement, depending on the specific grant received.

DEBT SERVICE FUND

Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

The Capital Projects Fund is used to account for the disbursement of bond proceeds and board approvedtransfers from other funds for capital improvements and acquisitions.

DEA Fund

The DEA Fund is used to account for revenues received from the Department of Justice Asset ForfeitureProgram. The use of these funds is restricted to law enforcement activities.

CAPITAL PROJECTS FUNDS

The Capital Projects Funds are used to account for all resources used for the acquisition of capital assets by theVillage, except those financed by Proprietary and Trust Funds, including general and infrastructure capitalassets.

Capital Projects Fund

COMBINING AND INDIVIDUAL FUNDFINANCIAL STATEMENTS AND SCHEDULES

GENERAL FUND

SPECIAL REVENUE FUNDS

The General Fund is used to account for all financial resources except those required to be accounted for inanother fund.

Motor Fuel Tax Fund

The Motor Fuel Tax Fund is used to account for state shared motor fuel tax revenues that are legally restrictedto maintenance and construction of streets, sidewalks, alleys and traffic signals.

Grants Fund

Water and Sewer Fund

The Water and Sewer Fund is used to account for the provision of water and sewer services to the residents ofthe Village. All activities necessary to provide such services are accounted for in this fund, including, but notlimited to, administration, operations and maintenance, financing and related debt service, billing and collection.

The Vehicle Replacement Fund is used to account for DUI fines to be used for police vehicle replacement andmaintenance.

Downtown Tax Increment Financing (TIF) Fund

The Downtown TIF Fund is used to account for resources used for the acquisition or construction of majorcapital facilities within the Downtown Tax Increment Financing District.

Industrial Tax Increment Financing (TIF) Fund

The Industrial TIF Fund is used to account for resources used for the acquisition or construction of major capitalfacilities within the Industrial Tax Increment Financing District.

Vehicle Replacement Fund

COMBINING AND INDIVIDUAL FUNDFINANCIAL STATEMENTS AND SCHEDULES

CAPITAL PROJECTS FUNDS – Continued

Enterprise Funds are used to account for operations that are financed and operated in a manner similar to privatebusiness enterprises where the intent is that costs of providing goods or services to the general public on acontinuing basis be financed or recovered primarily through user charges; or where it has been decided thatperiodic determination of revenues earned, expenses incurred and/or net income is appropriate for capitalmaintenance, public policy, management control, accountability or other purpose.

ENTERPRISE FUND

Blackstone Tax Increment Financing (TIF) Fund

The Blackstone TIF Fund is used to account for resources used for the acquisition or construction of majorcapital facilities within the Blackstone Tax Increment Financing District.

Downtown Tax Increment Financing (TIF) #3 Fund

The Downtown TIF #3 Fund is used to account for resources used for the acquisition or construction of majorcapital facilities within the Downtown Tax Increment Financing District.


General Fund

Schedule of Revenues - Budget and Actual For the Fiscal Year Ended April 30, 2019

Final Actual

TaxesProperty Taxes $ 2,024,853 2,024,853 1,890,899Electric Utility Taxes 164,000 164,000 148,542Gas Utility Taxes 144,000 144,000 151,962Telephone Taxes 65,000 65,000 45,813Franchise Cable Taxes 38,000 38,000 33,158Material Service Contract (In Lieu of Mining Taxes) 501,000 501,000 501,591

Total Taxes 2,936,853 2,936,853 2,771,965

Licenses, Permits and FeesBuilding Permits 23,000 23,000 9,792Business Licenses 8,000 8,000 8,425Contractor Licenses 7,500 7,500 5,750

Total Licenses, Permits and Fees 38,500 38,500 23,967

IntergovernmentalReplacement Taxes 41,264 41,264 46,431State Sales Taxes 192,300 192,300 183,815Home Rule Sales 96,150 96,150 83,988Tax Rebate Agreement 35,050 35,050 35,000State Income Taxes 207,726 207,726 273,945Foreign Fire Taxes 5,000 5,000 - Local Use Taxes 62,435 62,435 70,194Video Gaming Taxes 25,000 25,000 29,356

Total Intergovernmental 664,925 664,925 722,729

Charges for ServicesAmbulance Fees 80,000 80,000 95,290Lease Payment 99,000 99,000 78,883Recreation Participant Fees 45,000 45,000 52,163Rental Inspection Fee 12,000 12,000 10,780Special Use Fees 700 700 450Tipping Fees 30,000 30,000 63,395Sign Inspection Annual Fee 1,000 1,000 -

Total Charges for Services 267,700 267,700 300,961

BudgetOriginal

73


General Fund

Schedule of Revenues - Budget and Actual - ContinuedFor the Fiscal Year Ended April 30, 2019

Final Actual

Fines and ForfeituresDrug Seizure Forfeitures $ 5,000 5,000 - Circuit Court Fines 7,000 7,000 3,644Local Fines 95,000 95,000 120,702

Total Fines and Forfeitures 107,000 107,000 124,346

Interest 5,000 5,000 18,017

MiscellaneousMiscellaneous Income 10,000 10,000 33,289Crossing Guard Reimbursement 18,900 18,900 13,639

Total Miscellaneous 28,900 28,900 46,928

Total Revenues 4,048,878 4,048,878 4,008,913

BudgetOriginal

74


General Fund

Schedule of Expenditures - Budget and ActualFor the Fiscal Year Ended April 30, 2019

Final Actual

General GovernmentPresident and Board of Trustees $ 463,698 507,508 490,088Village Clerk 112,811 112,811 107,405Finance Department 43,055 43,055 40,505Legal Department 53,205 55,205 59,117Planning Commission 2,250 2,250 1,390Building Commission 92,600 92,600 54,334

Total General Government 767,619 813,429 752,839

Public SafetyPolice and Fire Commission 2,185 2,185 1,160Police Department 1,566,556 1,566,556 1,513,497Fire Department 794,794 794,794 735,996

Total Public Safety 2,363,535 2,363,535 2,250,653

Public WorksStreet and Alley Department 663,456 663,456 611,272

Culture and RecreationRecreation Department 194,076 194,076 170,134Contingency 60,000 14,190 -

Total Culture and Recreation 254,076 208,266 170,134


OriginalBudget

75


General Fund

Schedule of Detailed Expenditures - Budget and ActualFor the Fiscal Year Ended April 30, 2019

Final Actual

General GovernmentPresident and Board of Trustees

Salaries $ 91,930 91,930 92,401Salaries - Liquor Commissioner 600 600 600Salaries - Board 24,900 24,900 24,900FICA/Medicare 8,983 8,983 9,318Unemployment 5 5 1,086IMRF 8,041 8,041 6,681Health Insurance 17,580 17,580 16,042Telephone 30,390 31,230 31,230Newsletter 7,200 7,200 6,784Engineering 8,000 7,160 1,095Ordinance Updates 3,000 3,000 2,567Board Expenditure Reimbursements 8,700 8,700 7,600Convention/Training 2,755 2,755 2,112Memberships 6,565 7,465 7,487Miscellaneous 3,000 3,000 2,559Computer Support 71,344 94,344 80,340Special Events 9,700 10,700 10,075General Insurance 147,000 145,100 142,952Legal Settlements 5 5 - Real Estate Taxes Paid 14,000 34,810 44,259

Total President and Board of Trustees 463,698 507,508 490,088

Village ClerkSalaries 64,255 64,255 67,756FICA/Medicare 4,916 4,916 4,734IMRF 5,620 5,620 4,649Health Insurance 21,610 21,610 18,441Contracted Services 2,155 2,155 2,153Postage 3,500 3,500 1,873

OriginalBudget

76


General Fund

Schedule of Detailed Expenditures - Budget and Actual - ContinuedFor the Fiscal Year Ended April 30, 2019

Final Actual

General Government - ContinuedVillage Clerk - Continued

Memberships $ 150 150 50Training 900 900 28Miscellaneous 1,800 1,800 1,198Office Supplies 7,000 7,000 6,342Vehicle Stickers 500 500 - Uniforms 400 400 181Equipment Purchases 5 5 -

Total Village Clerk 112,811 112,811 107,405

Finance DepartmentSalaries - Part-Time 20,137 20,137 19,454FICA/Medicare 1,540 1,540 1,488Audit 21,378 21,378 19,563

Total Finance Department 43,055 43,055 40,505

Legal DepartmentNotices 1,200 1,200 733Legal Fees - Labor 10,000 10,000 8,800Legal Fees - Litigation 5 5 - Legal Fees - General 42,000 44,000 49,584

Total Legal Department 53,205 55,205 59,117

Planning CommissionProfessional Services 1,150 1,150 1,150Training 200 200 - Special Events 900 900 240

Total Planning Commission 2,250 2,250 1,390

Building CommissionSalaries 34,791 34,791 34,375FICA/Medicare 2,661 2,661 2,609

BudgetOriginal

77


General Fund


Final Actual

General Government - ContinuedBuilding Commission - Continued

IMRF $ 3,043 3,043 2,560Code Enforcement 40,000 40,000 12,089Electrical Inspections 2,800 2,800 1,080Plumbing Inspections 4,500 4,500 570Health Inspections 800 800 - Memberships 505 505 255Training 2,500 2,500 600Supplies - Operating 1,000 1,000 196

Total Building Commission 92,600 92,600 54,334

Total General Government 767,619 813,429 752,839

Public SafetyPolice and Fire Commission

Notices 5 5 - Professional Services 5 5 - Dues - Fees 375 375 375Training 800 800 - Testing 1,000 1,000 785

Total Police and Fire Commission 2,185 2,185 1,160

Police DepartmentSalaries 816,569 816,569 795,550Salaries - Overtime 70,000 95,000 108,730Salaries - Part-Time 56,686 71,686 86,695Crossing Guards 38,176 38,176 34,577Tuition Reimbursement 3,000 3,000 2,803FICA/Medicare 75,080 75,080 75,160IMRF 81,838 81,838 64,738Health Insurance 190,312 150,312 143,740Maintenance - Vehicles 12,500 18,500 17,096Maintenance - Equipment 6,000 6,000 3,199

BudgetOriginal

78


General Fund


Final Actual

Public Safety - ContinuedPolice Department - Continued

Contractual Services $ 133,800 126,800 118,485Motor Fuel 23,000 23,000 20,699Postage 2,000 2,000 2,086Printing 600 600 191Memberships 4,195 4,195 3,620Training 9,300 9,300 6,299Miscellaneous 2,000 2,000 1,245Testing 2,200 2,200 2,983Publications 200 200 - Drug Seizure Expenditures 5,000 5,000 - Canine Supplies 10,000 10,000 10,402Uniforms 14,600 14,600 6,274Supplies - Operating 2,500 3,500 3,562Equipment 7,000 7,000 5,363

Total Police Department 1,566,556 1,566,556 1,513,497

Fire DepartmentSalaries 96,473 96,473 97,196Salaries - Part-Time 437,869 437,869 426,283FICA/Medicare 40,877 40,877 39,800Unemployment 5 5 - IMRF 21,786 21,786 21,572Health Insurance 10,732 10,732 8,896Maintenance - Vehicles 30,000 30,000 27,774Maintenance - Equipment 11,400 11,400 7,277Contractual Services 54,117 54,117 47,925Motor Fuel 13,000 13,000 11,603Memberships 8,085 8,085 7,913Dues - Fees 1,000 1,000 318Training 24,400 24,400 8,672Miscellaneous 1,000 1,000 743Uniforms 9,500 9,500 6,434Supplies - Operating 14,750 14,750 9,525Foreign Fire Tax 5,000 5,000 -

BudgetOriginal

79


General Fund


Final Actual

Public Safety - ContinuedFire Department - Continued

Equipment - Department $ 14,800 14,800 14,065

Total Fire Department 794,794 794,794 735,996

Total Public Safety 2,363,535 2,363,535 2,250,653

Public WorksStreet and Alley Department

Salaries 126,236 126,236 123,136Salaries - Overtime 13,500 13,500 9,302Salaries - Part-Time 10,500 10,500 - FICA/Medicare 11,493 11,493 10,248Unemployment 5 5 - IMRF 12,222 12,222 9,474Health Insurance 38,517 38,517 21,340Maintenance - Building 23,000 23,000 20,406Maintenance - Vehicles 10,000 4,700 2,631Maintenance - Grounds 32,100 32,100 34,684Maintenance - Equipment 8,500 8,500 7,495Contractual Services 11,534 12,634 12,537Motor Fuel 10,000 10,000 8,506Garbage Disposal 271,000 271,000 273,050Electricity 5,500 5,500 6,202Heat 13,000 17,200 18,382Street Light Electricity 40,949 40,949 32,443Training 1,400 1,400 90Uniforms 2,000 2,000 1,664Supplies - Operating 17,000 17,000 14,695Equipment Purchases 5,000 5,000 4,987

Total Public Works 663,456 663,456 611,272

BudgetOriginal

80


General Fund


Final Actual

Culture and RecreationRecreation Department

Salaries $ 49,200 49,200 49,419Salaries - Part-Time 79,696 79,696 70,706FICA/Medicare 9,861 9,861 9,176IMRF 7,271 7,271 6,564Health Insurance 158 158 158Vehicle Maintenance 600 600 59Maintenance - Equipment 2,400 2,400 2,049Contractual Services 8,700 8,700 6,806Special Programs 14,800 14,800 8,380Motor Fuel 540 540 222Postage 500 500 1,085Printing 4,150 4,150 2,574Training 700 700 188Uniforms 1,000 1,000 696Supplies - Operating 6,100 6,100 4,615Special Events 2,700 2,700 2,045Equipment Purchases 5,700 5,700 5,392

Total Recreation Department 194,076 194,076 170,134

Contingency 60,000 14,190 -

Total Culture and Recreation 254,076 208,266 170,134


OriginalBudget

81


Debt Service Fund


Final Actual

RevenuesTaxes

Property Taxes $ 330,400 330,400 292,343

ExpendituresGeneral Government

Professional Fees 2,500 2,500 803Debt Service

Principal Retirement 215,000 215,000 1,473,975Interest and Fiscal Charges 112,900 112,900 178,231

Total Expenditures 330,400 330,400 1,653,009

Excess (Deficiency) of RevenuesOver (Under) Expenditures - - (1,360,666)

Other Financing SourcesDebt Issuance - - 1,260,000Transfers In - - 68,426

- - 1,328,426

Net Change in Fund Balance - - (32,240)

Fund Balance - Beginning 151,706

Fund Balance - Ending 119,466

BudgetOriginal

82


Capital Projects Fund


Final Actual

RevenuesInterest Income $ 200 200 2,285Miscellaneous - - 20,000

Total Revenues 200 200 22,285

ExpendituresCapital Outlay 300,410 300,410 289,663

Excess (Deficiency) of RevenuesOver (Under) Expenditures (300,210) (300,210) (267,378)

Other Financing SourcesDisposal of Capital Asset 5,000 5,000 86,088

Net Change in Fund Balance (295,210) (295,210) (181,290)



BudgetOriginal

83


Downtown Tax Increment Financing - Capital Projects Fund


Final Actual

RevenuesTaxes

Property Taxes $ 29,750 29,750 66,487Interest Income 250 250 1,541

Total Revenues 30,000 30,000 68,028


Developer Reimbursements 65,000 65,000 65,000Professional Services 5,000 5,000 1,337Miscellaneous

Developer Reimbursement 85,000 85,000 - Capital Outlay - 16,720 -

Total Expenditures 155,000 171,720 66,337

Excess (Deficiency) of RevenuesOver (Under) Expenditures (125,000) (141,720) 1,691

Other Financing (Uses)Disposal of Capital Asset - - 10,927Transfers Out (80,000) (80,000) (160,000)

(80,000) (80,000) (149,073)




BudgetOriginal

84


Nonmajor Governmental Funds

Combining Balance SheetApril 30, 2019

Grants DEA

Cash and Investments $ 70,992 1,762 48,290Due from Other Governments 5,175 - -

Total Assets 76,167 1,762 48,290

Accounts Payable 1,245 - - Due to Other Funds - - -

Total Liabilities 1,245 - -

Restricted 74,922 1,762 48,290Assigned - - - Unassigned - - -

Total Fund Balances 74,922 1,762 48,290

Total Liabilities and Fund Balances 76,167 1,762 48,290

LIABILITIES

FUND BALANACES

ASSETS

Motor FuelTax

Special Revenue

85

Industrial Blackstone Downtown VehicleTIF TIF TIF #3 Replacement Totals

75,424 - 119,169 680 316,317- - - - 5,175

75,424 - 119,169 680 321,492

- 32,792 209 - 34,246- 22,806 - - 22,806- 55,598 209 - 57,052

75,424 - 118,960 - 319,358- - - 680 680- (55,598) - - (55,598)

75,424 (55,598) 118,960 680 264,440

75,424 - 119,169 680 321,492

Capital Projects

86


Nonmajor Governmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund BalancesFor the Fiscal Year Ended April 30, 2019

Grants DEA

RevenuesTaxes $ - - - Intergovernmental 59,349 - - Fines and Forfeitures - - 22,561Interest 1,005 23 -

Total Revenues 60,354 23 22,561

ExpendituresGeneral Government - - - Public Works 45,257 - - Capital Outlay - - 14,610

Total Expenditures 45,257 - 14,610

Excess (Deficiency) of RevenuesOver (Under) Expenditures 15,097 23 7,951

Other Financing Sources (Uses)Transfers In - - - Transfers Out - - -

- - -

Net Change in Fund Balances 15,097 23 7,951

Fund Balances - Beginning 59,825 1,739 40,339

Fund Balances - Ending 74,922 1,762 48,290

MotorFuelTax

Special Revenue

87

Industrial Blackstone Downtown VehicleTIF TIF TIF #3 Replacement Totals

- (30,642) 73,875 - 43,233- - - - 59,349- - - 189 22,750

1,006 1,010 1,371 22 4,4371,006 (29,632) 75,246 211 129,769

- 16,213 22,424 - 38,637- - - - 45,257- 142,522 42,454 3,500 203,086- 158,735 64,878 3,500 286,980

1,006 (188,367) 10,368 (3,289) (157,211)

- 50,000 160,000 - 210,000- (57,478) (50,000) - (107,478)- (7,478) 110,000 - 102,522

1,006 (195,845) 120,368 (3,289) (54,689)

74,418 140,247 (1,408) 3,969 319,129

75,424 (55,598) 118,960 680 264,440

Capital Projects

88


Motor Fuel Tax - Special Revenue Fund


Final Actual

RevenuesIntergovernmental

Motor Fuel Allotment $ 59,634 59,634 59,349Interest 400 400 1,005

Total Revenues 60,034 60,034 60,354

ExpendituresPublic Works

ServicesStreet Repair and Maintenance 67,000 66,475 21,875Engineering 1,000 1,525 1,980

CommoditiesSalt 30,000 30,000 21,402

Total Expenditures 98,000 98,000 45,257

Net Change in Fund Balance (37,966) (37,966) 15,097



BudgetOriginal

89


Grants - Special Revenue Fund


Final Actual

RevenuesIntergovernmental

Grants $ 140,114 140,114 - Interest 5 5 23

Total Revenues 140,119 140,119 23


Culture and Recreation 30,000 30,000 - Public Safety

Fire 470,191 470,191 - Police 900 900 -

Total Expenditures 501,091 501,091 -

Net Change in Fund Balance (360,972) (360,972) 23



BudgetOriginal

90


DEA - Special Revenue Fund


Final Actual

RevenuesFines and Forfeitures $ - - 22,561

ExpendituresCapital Outlay 35,000 35,000 14,610




BudgetOriginal

91


Industrial Tax Increment Financing - Capital Projects Fund


Final Actual

RevenuesInterest Income $ 250 250 1,006

ExpendituresGeneral Government - - -

Net Change in Fund Balance 250 250 1,006



BudgetOriginal

92


Blackstone Tax Increment Financing - Capital Projects Fund


Final Actual

RevenuesTaxes

Property Taxes $ 135,000 135,000 (30,642)Interest 500 500 1,010

Total Revenues 135,500 135,500 (29,632)


Developer Reimbursements 77,000 27,000 - Professional Services 21,000 22,000 16,213

Capital Outlay 157,500 207,500 142,522Total Expenditures 255,500 256,500 158,735

Excess (Deficiency) of RevenuesOver (Under) Expenditures (120,500) (121,500) (188,367)

Other Financing Sources (Uses)Transfers In - - 50,000Transfers Out - (57,478)

- - (7,478)



Fund Balance - Ending (55,598)

BudgetOriginal

93


Downtown Tax Increment Financing #3 - Capital Projects Fund


Final Actual

RevenuesTaxes

Property Taxes $ 130,000 130,000 73,875Interest - - 1,371

Total Revenues 130,000 130,000 75,246


Developer Reimbursements 35,000 30,000 5,610Professional Services 25,000 30,000 16,814

Capital Outlay 150,000 80,000 42,454Total Expenditures 210,000 140,000 64,878

Excess (Deficiency) of RevenuesOver (Under) Expenditures (210,000) (140,000) 10,368

Other Financing Sources (Uses)Transfers In 80,000 80,000 160,000Transfers Out - - (50,000)

80,000 80,000 110,000


Fund Balance - Beginning (1,408)


BudgetOriginal

94


Vehicle Replacement - Capital Projects Fund


Final Actual

RevenuesFines and Forfeitures $ 350 350 189Interest 30 30 22

Total Revenues 380 380 211

ExpendituresCapital Outlay

Vehicles 6,000 6,000 3,500



Fund Balance - Ending 680

BudgetOriginal

95


Water and Sewer - Enterprise Fund

Schedule of Revenues, Expenses and Changes in Net Position - Budget and ActualFor the Fiscal Year Ended April 30, 2019

Final Actual

Operating RevenuesCharges for Services $ 672,500 672,500 720,195

Operating Expenses Operations 781,701 736,701 720,346Depreciation 5 5 64,224

Total Operating Expenses 781,706 736,706 784,570

Operating Income (Loss) (109,206) (64,206) (64,375)

Nonoperating Revenues (Expenses)Interest Income 50 50 1,313Interest Expense (5) (5) -

45 45 1,313

Change in Net Position (109,161) (64,161) (63,062)

Net Position - Beginning 438,579

Net Position - Ending 375,517

OriginalBudget

96


Water and Sewer - Enterprise Fund

Schedule of Operating Expenses - Budget and Actual

For the Fiscal Year Ended April 30, 2019

Final Actual

OperationsPersonnel Services

Salaries $ 104,833 104,833 93,980Salaries - Overtime 10,404 10,404 7,494Salaries - Part-Time 2,760 2,760 2,760FICA/Medicare 9,027 9,027 7,445IMRF Retirement 10,567 10,567 12,329Employee Insurance 31,322 31,322 23,187

168,913 168,913 147,195

Contractual ServicesMaintenance - Sewers 33,500 31,500 10,116Maintenance - Equipment 50,000 5,000 752Maintenance - Ground Reservoir and Tower 20,000 20,000 18,592Maintenance - Water Tests 2,000 2,000 1,834Maintenance - Water System 20,000 22,000 23,285Maintenance - Meters 6,000 6,000 4,977Telephone 2,400 2,400 - Electricity - Pumps 13,500 13,500 9,396Audit 2,248 2,248 2,140Professional Services 18,840 19,126 19,536General Insurance 20,000 20,000 14,679

188,488 143,774 105,307

CommoditiesWater Purchases 370,000 370,000 435,550Postage 3,300 3,300 3,276Dues and Fees 250 250 90Convention/Training 1,250 964 200Miscellaneous 1,000 1,000 593Supplies - Operating 10,000 10,000 2,758Equipment Purchases 38,500 38,500 25,377

424,300 424,014 467,844

Total Operations 781,701 736,701 720,346

Depreciation 5 5 64,224

Total Operating Expenses 781,706 736,706 784,570

BudgetOriginal

97


Consolidated Year-End Financial ReportApril 30, 2019

CSFA # Program Name Federal Other Totals

494-00-1488 Motor Fuel Tax Program $ 42,259 - - 42,259 Other Grant Programs and Activities - 14,610 - 14,610 All Other Costs Not Allocated - - 5,405,105 5,405,105

Totals 42,259 14,610 5,405,105 5,461,974

State

98

SUPPLEMENTAL SCHEDULES


Schedule of Long-Term Debt Requirements

General Obligation Bonds of 2014April 30, 2019

Date of Issue April 1, 2014Date of Maturity December 15, 2024Authorized Issue $1,400,000Denomination of Bonds $5,000Interest Rates 3.00% - 4.10%Interest Dates June 15 and December 15Principal Maturity Date December 15Payable at Bank of New York Mellon Trust Company

FiscalYear Interest Totals

2020 $ 140,000 34,635 174,6352021 145,000 30,435 175,4352022 155,000 25,360 180,3602023 160,000 19,935 179,9352024 165,000 13,775 178,7752025 175,000 7,175 182,175

940,000 131,315 1,071,315

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Principal

99



General Obligation Refunding Bonds of 2018April 30, 2019

Date of Issue September 18, 2018Date of Maturity December 15, 2029Authorized Issue $1,260,000Denomination of Bonds $5,000Interest Rates 2.90%Interest Dates June 15 and December 15Principal Maturity Date December 15Payable at Bank of New York Mellon


2020 $ 95,000 45,371 140,3712021 105,000 33,785 138,7852022 110,000 30,740 140,7402023 110,000 27,550 137,5502024 115,000 24,360 139,3602025 115,000 21,025 136,0252026 120,000 17,690 137,6902027 120,000 14,210 134,2102028 120,000 10,730 130,7302029 120,000 7,250 127,2502030 130,000 3,770 133,770

1,260,000 236,481 1,496,481


Principal

100



Installment Contract of 2017April 30, 2019

Date of Contract August 15, 2017Date of Maturity September 1, 2032Amount of Contract $813,102Interest Rate 3.127%Interest Date March 1 and September 1Principal Maturity Date March 1 and September 1Payable at PNC Equipment Finance


2020 $ 45,362 23,064 68,4262021 46,791 21,635 68,4262022 48,265 20,161 68,4262023 49,786 18,640 68,4262024 51,356 17,070 68,4262025 52,973 15,453 68,4262026 54,644 13,782 68,4262027 56,365 12,061 68,4262028 58,141 10,285 68,4262029 59,974 8,452 68,4262030 61,864 6,562 68,4262031 63,813 4,613 68,4262032 65,825 2,601 68,4262033 33,687 519 34,206

748,846 174,898 923,744


Principal

101

These schedules contain trend information to help the reader understand how the Village’s financialperformance and well-being have changed over time.

STATISTICAL SECTION(Unaudited)

This part of the comprehensive annual financial report presents detailed information as a context forunderstanding what the information in the financial statements, note disclosures, and required supplementaryinformation says about the Village’s overall financial health.

Financial Trends

Operating Information

These schedules contain service and infrastructure data to help the reader understand how the information in theVillage’s financial report relates to the services the Village provides and the activities it performs.

Revenue Capacity

These schedules contain information to help the reader assess the Village’s most significant local revenuesources.

Debt Capacity

These schedules present information to help the reader assess the affordability of the Village’s current levels ofoutstanding debt and the Village’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 environmentwithin which the Village’s financial activities take place.


Net Position by Component - Last Ten Fiscal Years*

2011 2012 2013

Governmental ActivitiesNet Investment in Capital Assets $ 3,389,465 3,296,116 3,635,539 3,816,124 Restricted - 1,952,878 1,432,974 1,153,755 Unrestricted 2,335,018 619,498 843,253 910,543

Total Governmental Activities Net Position 5,724,483 5,868,492 5,911,766 5,880,422

Business-Type ActivitiesNet Investment in Capital Assets 646,283 542,731 514,326 499,032 Unrestricted 169,453 210,491 232,027 196,061

Total Business-Type Activities Net Position 815,736 753,222 746,353 695,093

Primary GovernmentNet Investment in Capital Assets 4,035,748 3,838,847 4,149,865 4,315,156 Restricted - 1,952,878 1,432,974 1,153,755 Unrestricted 2,504,471 829,989 1,075,280 1,106,604

Total Primary Government Net Position 6,540,219 6,621,714 6,658,119 6,575,515

* Accrual Basis of Accounting

Data Source: Village Records

April 30, 2019 (Unaudited)

2010

102

2014 2015 2016 2017 2018 2019

3,877,238 3,551,805 3,472,463 3,640,478 3,730,748 3,853,328 744,031 715,278 450,184 711,594 691,511 471,079

1,082,982 1,596,442 2,188,686 1,609,073 1,282,139 1,360,495

5,704,251 5,863,525 6,111,333 5,961,145 5,704,398 5,684,902

527,887 600,172 547,408 531,218 463,067 412,089 69,342 (18,681) (20,533) (42,601) (24,488) (36,572)

597,229 581,491 526,875 488,617 438,579 375,517

4,405,125 4,151,977 4,019,871 4,171,696 4,193,815 4,265,417 744,031 715,278 450,184 711,594 691,511 471,079

1,152,324 1,577,761 2,168,153 1,566,472 1,257,651 1,323,923

6,301,480 6,445,016 6,638,208 6,449,762 6,142,977 6,060,419

103

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9 (U

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104

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Vill

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Rec

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105


Fund Balances of Governmental Funds - Last Ten Fiscal Years*

2011 2012

General FundReserved $ 73,740 78,479 - Unreserved 622,782 723,626 - Nonspendable - - 85,333 Restricted - - - Unassigned - - 920,177

Total General Fund 696,522 802,105 1,005,510

All Other Governmental FundsUnreserved, Reported in,

Special Revenue Funds 122,488 143,097 - Debt Service Funds 87,608 93,864 - Capital Projects Funds 21,581 1,715,917 -

Restricted - - 1,469,452 Assigned - - 7,929 Unassigned - - -

Total All Other Governmental Funds 231,677 1,952,878 1,477,381

Total Governmental Funds 928,199 2,754,983 2,482,891

* Modified Accrual Basis of Accounting


The Village implemented GASB No. 54 for the fiscal year ended April 30, 2012.


2010

106

2013 2014 2015 2016 2017 2018 2019

- - - - - - - - - - - - - -

95,546 91,142 102,288 93,333 94,236 127,892 120,041 - - - - - 50,594 -

1,030,393 1,262,089 1,631,837 1,897,104 1,482,715 1,424,905 1,696,417 1,125,939 1,353,231 1,734,125 1,990,437 1,576,951 1,603,391 1,816,458

- - - - - - - - - - - - - - - - - - - - -

1,192,053 789,476 801,770 778,295 756,970 687,387 510,555 2,526 1,383,833 191,183 400,495 555,570 267,892 83,313 (267) (1,514) - - (922) (1,408) (55,598)

1,194,312 2,171,795 992,953 1,178,790 1,311,618 953,871 538,270

2,320,251 3,525,026 2,727,078 3,169,227 2,888,569 2,557,262 2,354,728

107


Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years*

2011 2012

RevenuesTaxes $ 3,179,261 3,351,366 3,267,442 Licenses, Permits and Fees 57,143 53,966 56,327 Intergovernmental 430,814 565,189 495,360 Charges for Services 253,603 246,149 217,925 Fines and Forfeitures 80,955 81,550 123,738 Interest 1,136 1,429 1,386 Miscellaneous 381,412 35,559 38,662

Total Revenues 4,384,324 4,335,208 4,200,840

ExpendituresCurrent

General Government 1,611,565 1,414,786 1,444,429 Public Safety 1,566,366 1,606,287 1,698,006 Public Works 485,882 543,485 525,566 Culture and Recreation 137,086 148,770 139,799

Capital Outlay 722,476 109,444 497,470 Debt Service

Principal Retirement 25,000 66,278 65,140 Interest and Fiscal Charges 139,947 104,063 102,522


Excess (Deficiency) of RevenuesOver (Under) Expenditures (303,998) 342,095 (272,092)

Other Financing Sources (Uses)Debt Issuance - 22,785 - Disposal of Capital Assets - - - Transfers In - - - Transfers Out - - -

- 22,785 -

Net Change in Fund Balances (303,998) 364,880 (272,092)

Debt Service as a Percentageof Noncapital Expenditures 3.87% 4.43% 4.41%

* Modified Accrual Basis of AccountingData Source: Village Records


2010

108

2013 2014 2015 2016 2017 2018 2019

3,277,417 3,199,616 3,000,228 3,401,819 3,213,772 3,426,933 3,174,028 61,082 60,185 146,456 80,573 68,171 66,068 23,967

479,654 516,878 831,502 587,594 568,777 600,504 782,078 252,492 255,268 263,372 270,792 298,163 285,436 300,961 114,598 122,069 172,270 98,250 92,215 149,849 147,096

1,514 287 260 2,217 10,058 21,082 26,280 41,624 41,194 40,148 52,116 36,024 27,709 66,928

4,228,381 4,195,497 4,454,236 4,493,361 4,287,180 4,577,581 4,521,338

1,408,393 1,409,181 1,091,376 998,900 782,110 1,053,676 858,616 1,694,114 1,609,130 1,608,247 2,172,767 2,223,770 2,255,109 2,250,653

616,412 640,939 781,935 620,249 600,716 688,288 656,529 140,173 148,737 141,693 155,069 175,592 173,417 170,134 425,685 344,653 1,376,916 201,150 413,174 1,191,287 492,749

101,729 91,524 127,282 170,199 232,016 225,281 1,473,975 98,280 98,360 94,944 172,894 130,882 134,932 178,231

4,484,786 4,342,524 5,222,393 4,491,228 4,558,260 5,721,990 6,080,887

(256,405) (147,027) (768,157) 2,133 (271,080) (1,144,409) (1,559,549)

93,765 1,400,000 82,618 - - 813,102 1,260,000 - - - 513,053 571,559 - 97,015 - - - - - 120,657 278,426 - (48,198) (112,409) (73,037) (581,137) (120,657) (278,426)

93,765 1,351,802 (29,791) 440,016 (9,578) 813,102 1,357,015

(162,640) 1,204,775 (797,948) 442,149 (280,658) (331,307) (202,534)

5.09% 4.77% 5.93% 7.99% 8.65% 7.93% 29.18%

109


Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal YearsApril 30, 2019 (Unaudited)

Tax

Fiscal LevyYear Year

2010 2009 $ 32,124,646 $ 3,302,559 $ 41,120,703 $ 443,956

2011 2010 32,117,878 2,937,251 34,784,167 539,895

2012 2011 24,498,782 3,132,858 27,409,004 589,232

2013 2012 21,974,924 2,471,602 26,411,052 580,889

2014 2013 22,734,873 2,390,838 23,327,543 639,791

2015 2014 18,211,992 3,238,100 21,590,491 659,676

2016 2015 18,414,869 3,274,172 21,831,004 667,025

2017 2016 17,345,190 7,360,629 23,039,330 791,823

2018 2017 17,746,211 4,795,822 28,489,415 800,939

2019 2018 18,487,199 3,844,495 27,322,433 859,918

Data Source: Office of the County Clerk

*Property is assessed at 33.3% of actual value.

Property PropertyResidential

Property PropertyCommercial Industrial Farm/Railroad

110

EstimatedTotal Actual

Direct Tax TaxableRate Value

$ 76,991,864 $ 230,975,592 2.3541 $ 692,926,776 33.33%

70,379,191 211,137,573 2.7017 633,412,719 33.33%

55,629,876 166,889,628 3.4873 500,668,884 33.33%

51,438,467 147,279,135 3.7715 441,837,405 33.33%

49,093,045 131,100,777 3.9517 393,302,331 33.33%

43,700,259 131,100,777 5.0831 393,302,331 33.33%

44,187,070 132,561,210 5.4194 397,683,630 33.33%

48,536,972 145,610,916 5.4620 436,832,748 33.33%

51,832,387 155,497,161 4.9157 466,491,483 33.33%

50,514,045 151,542,135 3.4322 454,626,405 33.33%

EstimatedActual Value

Taxable ValueValueTotals

TotalTaxableAssessed

111


Direct and Overlapping Property Tax Rates - Last Ten Levy YearsApril 30, 2019 (Unaudited)

2009 2010 2011

Village Direct RatesGeneral 0.4054 0.4586 0.5639 Bonds and Interest 0.2232 0.2394 0.2969 Garbage 0.2154 0.2986 0.4176 Fire Protection 0.3157 0.3659 0.4629 Police Protection 1.0311 1.1562 1.4997 Auditing 0.0268 0.0293 0.0241 Liability Insurance 0.1365 0.1537 0.2222

Total Direct Rates 2.3541 2.7017 3.4873

Overlapping RatesCook County 0.3940 0.4230 0.4620 Forest Preserve District of Cook County 0.0490 0.0510 0.0580 Consolidated Elections - - - Thornton Township 0.4960 0.5010 0.6190 Metro Water Reclam. District of Greater Chicago 0.2610 0.2740 0.3200 South Cook County Mosquito Abatement District 0.0090 0.0100 0.0120 Village of Thornton Library Fund 0.1405 0.1690 0.2160 School District Number 154 2.4980 2.8110 3.6090 High School District Number 205 3.6970 3.8710 4.9030 Community College District Number 510 0.3480 0.3610 0.4500

Total Direct and Overlapping Rates 10.2466 11.1727 14.1363


Note: Rates are per $1,000 of Assessed Value

112

2012 2013 2014 2015 2016 2017 2018

0.6062 0.6323 0.7011 0.8672 0.8751 1.4666 1.4620 0.3248 0.3432 0.7428 0.7817 0.7818 0.6837 0.6548 0.4517 0.4732 0.6141 0.7787 0.7858 - - 0.5006 0.5245 0.7071 0.6993 0.7057 0.6443 0.6885 1.6219 1.6994 2.0034 1.9813 1.9995 1.8409 0.0275 0.0260 0.0273 0.0318 0.0315 0.0318 0.0276 0.2997 0.2403 0.2518 0.2828 0.2797 0.2823 0.2526 0.2997 3.7715 3.9517 5.0831 5.4194 5.4620 4.9157 3.4322

0.5310 0.5910 0.5680 0.5520 0.5330 0.4960 0.4890 0.0630 0.0690 0.0690 0.0690 0.0630 0.0620 0.0600 - - - 0.0340 - 0.0310 -

0.6930 0.7610 0.8440 0.8770 0.8830 0.8680 0.9190 0.3700 0.4170 0.4300 0.4260 0.4060 0.4020 0.3960 0.0140 0.0160 0.0170 0.0170 0.0170 0.0160 0.0017 0.2340 0.2450 0.2750 0.2950 0.3120 0.2910 0.3110 4.0070 4.2790 4.6300 4.6580 4.9660 4.8300 4.8020 5.4250 5.9080 6.2090 6.6770 6.6770 6.4110 6.4760 0.5110 0.5590 0.5990 0.6210 0.6210 0.5780 0.6110

15.6195 16.7967 18.7241 19.6454 19.9400 18.9007 17.4979

113


Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years AgoApril 30, 2019 (Unaudited)

Percentage of Percentage ofTotal Village Total Village

Taxable TaxableAssessed Assessed

Taxpayer Rank Value Rank Value

Hanson Aggregate $ 17,633,458 1 11.34% $ N/A N/A N/A Ventura Foods 1,570,003 2 1.01% N/A N/A N/A Pregis 1,097,293 3 0.71% N/A N/A N/A Commercial Land Trust 782,644 4 0.50% N/A N/A N/A GPL Industries, Inc 692,294 5 0.45% N/A N/A N/A First Industrial Realty 673,000 6 0.43% N/A N/A N/A Harcros Chemicals Inc 624,077 7 0.40% N/A N/A N/A 7 Eleven Inc 606,398 8 0.39% N/A N/A N/A Oreo Department 584,194 9 0.38% N/A N/A N/A Gallagher Asphalt Corp 534,037 10 0.34% N/A N/A N/A

24,797,398 15.95% N/A N/A


N/A - Not Available

Assessed AssessedValue Value

2019 2010

Taxable Taxable

114


Property Tax Levies and Collections - Last Ten Fiscal YearsApril 30, 2019 (Unaudited)

TaxFiscal Levy Percentage PercentageYear Year of Levy of Levy

2010 2009 $ 1,920,642 $ 1,784,588 92.92% $ - $ 1,784,588 92.92%

2011 2010 1,901,326 955,846 50.27% 926,908 1,882,754 99.02%

2012 2011 1,939,944 999,343 51.51% 883,188 1,882,531 97.04%

2013 2012 1,939,980 985,115 50.78% 954,643 1,939,758 99.99%

2014 2013 1,940,007 972,434 50.13% 841,554 1,813,988 93.50%

2015 2014 2,221,346 949,817 42.76% 1,159,446 2,109,263 94.95%

2016 2015 2,394,644 1,072,751 44.80% 1,115,982 2,188,733 91.40%

2017 2016 2,391,546 1,111,282 46.47% 1,070,792 2,182,074 91.24%

2018 2017 2,475,365 1,099,799 44.43% 1,066,363 2,166,162 87.51%

2019 2018 2,612,367 1,118,402 42.81% - 1,118,402 42.81%


The remaining amount on the 2019 levy will be collected in fiscal year 2020.

Total Collections to DateSubsequent

Year Amount Years Amountthe Fiscal

Taxes Collected within the CollectionsLevied for Fiscal Year of the Levy in

115


Ratios of Outstanding Debt by Type - Last Ten Fiscal YearsApril 30, 2019 (Unaudited)

Percentageof

Fiscal PersonalYear Income (1)

2010 $ 1,830,000 - $ 75,094 $ 1,905,094 3.12% $ 80.57

2011 1,770,000 16,507 51,134 1,837,641 2.94% 68.80

2012 1,710,000 11,367 26,121 1,747,488 2.80% 65.43

2013 1,650,000 63,403 33,039 1,746,442 2.80% 65.39

2014 2,985,000 36,879 44,572 3,066,451 5.58% 130.54

2015 2,915,000 62,215 30,613 3,007,828 4.55% 106.83

2016 2,775,000 32,016 15,776 2,822,792 4.90% 114.93

2017 2,575,000 - - 2,575,000 4.16% 102.43

2018 2,370,000 792,281 - 3,162,281 5.23% 128.63

2019 2,200,000 748,846 - 2,948,846 4.85% 117.30

Note: Details regarding the Village'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.


Bonds Certificates Certificates Government Capita (1)

Business-TypeGovernmental Activities ActivitiesGeneral Installment

PerInstallment Total

Obligation Contract Contract Primary

116


Percentage ofLess: Amounts Estimated

Fiscal Available for Actual ValueYear Debt Service Valuation (1)

2010 $ 1,830,000 $ 87,608 $ 1,742,392 0.25% $ 674.82

2011 1,770,000 93,864 1,676,136 0.26% 716.91

2012 1,710,000 63,677 1,646,323 0.33% 704.16

2013 1,650,000 64,051 1,585,949 0.36% 678.34

2014 2,985,000 69,892 2,915,108 0.74% 1,246.84

2015 2,915,000 77,828 2,837,172 0.72% 1,208.85

2016 2,775,000 127,185 2,647,815 0.67% 1,128.17

2017 2,575,000 125,188 2,449,812 0.56% 995.45

2017 2,370,000 105,236 2,264,764 0.49% 920.26

2018 2,200,000 79,990 2,120,010 0.47% 876.40

Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.

(1) See the Schedule of Assessed Value and Actual Value of Taxable Property for property value data.(2) See the Schedule of Demographic and Economic Statistics for population data.


Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years

Totals

GeneralObligation

BondsPer

Capita (2)

117


Schedule of Direct and Overlapping Governmental Activities Debt

Percentage ofDebt

ApplicableGovernmental Unit to Village (1)

Village $ 2,968,846 100.000% $ 2,968,846

Overlapping Debt (2)Cook County 3,372,226,750 0.032% 1,065,624

Forest Preserve District of Cook County 417,660,322 0.032% 131,981

Metropolitan Water Reclamation District 4,266,057,000 0.032% 1,360,872

Homewood Flossmoor Park District 15,039,905 0.053% 7,971

South Holland School District No. 151 14,030,000 2.636% 369,845

Homewood Flossmoor School District No. 153 14,718,385 1.316% 193,635

Thornton School District No. 154 1,489,000 78.431% 1,167,841

Thornton Twp. High School District No. 205 51,260,000 3.833% 1,965,001

Homewood Flossmoor High School District No. 233 25,080,000 0.428% 107,317

South Suburban Community College District No. 510 49,205,255 1.510% 742,753

Prairie State Community College District No. 515 29,511,476 0.094% 27,593

Total Overlapping Debt 8,256,278,093 7,140,433

Total Direct and Overlapping Debt 8,259,246,939 10,109,279

Data Source: Cook County Tax Extension Department

(1) Determined by ratio of assessed valuation of property subject to taxation in the Village to valuation of property subject to taxation in overlapping unit.(2) Excludes principal amounts of outstanding General Obligation (Alternate Revenue Source) Bonds which are expected to be paid from sources other than general taxation.

Share ofGross Debt Debt


Village's

118


The Village is a home rule municipality.

Article VII, Section 6 (k) of the Illinois Constitution governs computation of the legal debt margin.

To date the General Assembly has set no limits for home rule municipalities.


Legal Debt Margin

"The General Assembly may limit by law the amount and may require referendum approval of debt tobe incurred by home rule municipalities, payable from ad valorem property tax receipts, only inexcess of the following percentages of the assessed value of its taxable property...(2) if its populationis more than 25,000 and less than 500,000 an aggregate of one per cent: ...indebtedness which isoutstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved byreferendum...shall not be included in the foregoing percentage amounts."

119


Fiscal UnemploymentYear Population Rate

2010 2,582 $ 61,048,808 $ 23,644 6.70%

2011 2,338 62,443,304 26,708 6.40%

2012 2,338 62,443,304 26,708 N/A

2013 2,338 62,443,304 26,708 10.60%

2014 2,338 54,919,620 23490 N/A

2015 2,347 66,079,785 28,155 9.30%

2016 2,347 57,642,320 24,560 8.20%

2017 2,461 61,869,540 25,140 6.40%

2018 2,461 60,503,685 24,585 5.20%

2019 2,419 60,813,660 25,140 0.00%

Data Source: Illinois Department of Employment Security (IDES)

N/A - Not Available


Demographic and Economic Statistics - Last Ten Fiscal Years

PerCapita

PersonalIncome

PersonalIncome

120


Principal Employers - Current Fiscal Year and Nine Fiscal Years AgoApril 30, 2019 (Unaudited)

Percentage Percentageof Total of TotalVillage Village

Employer Rank Population Rank Population

Gallagher Asphalt Corp 150 1 6.10% N/A N/A N/AVenture Foods 84 2 3.41% N/A N/A N/ASkyline Furniture 70 3 2.84% N/A N/A N/AHanaon Material Service 65 4 2.64% N/A N/A N/AG.P.L. Industries 47 5 1.91% N/A N/A N/ARoy Zenere Trucking 30 5 1.22% N/A N/A N/AIntegrated Power Services, LLC 30 7 1.22% N/A N/A N/AQuality Mechanical 23 8 0.93% N/A N/A N/ATransport Finishes 23 8 0.93% N/A N/A N/AOverdoors of Ill 21 10 0.85% N/A N/A N/A

543 22.06% N/A N/A

Data Source: Village Records and U.S. Census Bureau.

N/A - Not Available

Employees Employees

2019 2010

121


Full-Time Equivalent Village Government Employees by Function - Last Ten Fiscal Years

2009 2010 2011 2012

General Government 4.0 4.0 3.5 3.5

Public Safety 22.0 21.0 20.0 20.0

Public Works 3.5 1.0 2.0 2.0

Culture and Recreation 3.0 2.0 2.0 2.0

Water and Sewer 3.5 4.0 3.5 3.0

Totals 36.0 32.0 31.0 30.5



Function

122

2013 2014 2015 2016 2017 2018 2019

3.5 3.0 3.0 2.5 3.0 3.0 4.0

20.0 19.0 20.0 21.5 20.0 20.0 20.0

2.0 2.0 1.5 1.5 1.5 1.5 2.0

2.0 2.0 2.5 2.5 2.0 2.0 2.0

3.0 3.0 2.5 2.5 2.5 2.5 2.5

30.5 29.0 29.5 30.5 29.0 29.0 30.5

123


Operating Indicators by Function/Program - Last Ten Fiscal Years

2010 2011 2012

General GovernmentBusiness Licenses 83 89 83 Liquor Licenses 5 5 5

Public SafetyPolice

Part I Crimes 79 94 70 Part II Crimes 73 74 55 Physical Arrests 139 142 98 Parking Violations 848 1,140 500 Traffic Violations 619 456 286

Public WorksParkway Trees Planted 6 4 3 Parkway Trees Trimmed 31 28 30 Street Resurfacing (Miles) 1 1 1 Potholes Repaired 40 45 47

Water and SewerNumber of Metered Accounts 1,000 1,000 1,000 Number of Hydrants Flushed/Inspected - 150 - Water Mains Breaks 6 1 2 Water Average Daily Consumption (Thousands of Gallons) 300 300 300 Average Daily Sewage Treatment (Thousands of Gallons) 100 100 100

Data Source: Village Departments


Function/Program

124

2013 2014 2015 2016 2017 2018 2019

81 81 77 68 76 84 71 5 5 5 5 6 6 6

16 39 60 46 72 77 51 46 57 67 49 37 123 97 55 157 133 106 92 131 188

733 1,136 238 149 42 91 140 550 378 1,531 1,043 719 1,555 1,420

10 14 6 5 4 5 6 26 28 15 12 16 18 42 1 1 1 1 1 1 1

50 50 50 43 38 30 58

1,000 1,000 1,000 1,000 1,000 1,000 1,000 153 - - - - - -

8 33 11 3 5 5 7 300 300 300 300 300 300 300 100 100 100 100 100 100 100

125


Capital Asset Statistics by Function/Program - Last Ten Fiscal Years

2010 2011 2012

Public SafetyPolice

Stations 1 1 1 Area Patrols 2 2 2 Patrol Units 7 7 7

FireFire Stations 2 2 2 Fire Engines 3 3 3

Public WorksStreets (Miles) 15 15 15 Streetlights 230 230 230 Traffic Signals 4 4 4

Water and SewerWater Mains (Miles) 12 12 12 Fire Hydrants 143 143 143 Sanitary Sewers (Miles) 10 10 10 Storm Sewers (Miles) 6 6 6

Recreation Parks 5 5 5 Parks (Total Acres) 2 2 2

Data Source: Village Departments


Function/Program

126

2013 2014 2015 2016 2017 2018 2019

1 1 1 1 1 1 1 2 2 2 2 2 2 2 7 7 7 7 7 7 7

2 2 2 2 1 1 1 3 3 3 3 3 3 3

15 15 15 15 15 15 15 230 230 230 230 230 230 230

4 4 4 4 4 4 4

12 12 12 12 12 12 12 143 143 143 143 143 143 143 10 10 10 10 10 10 10 6 6 6 6 6 6 6

6 6 6 6 6 5 5 3 3 3 3 3 2 2

127

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