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City Council Packet 2022 10-25-22 - Supplemental Packet #1 Have a question or comment about this agenda item? Call us Monday-Friday, 8:00am to 4:30pm at 630-553-4350, email us at agendas@yorkville.il.us, post at www.facebook.com/CityofYorkville, tweet us at @CityofYorkville, and/or contact any of your elected officials at http://www.yorkville.il.us/320/City-Council Agenda Item Summary Memo Title: Meeting and Date: Synopsis: Council Action Previously Taken: Date of Action: Action Taken: Item Number: Type of Vote Required: Council Action Requested: Submitted by: Agenda Item Notes: Reviewed By: Legal Finance Engineer City Administrator Community Development Purchasing Police Public Works Parks and Recreation Agenda Item Number Presentation #1 Supplemental Packet Information Tracking Number Fiscal Year 2022 Audit Report City Council – October 25, 2022 Rob Fredrickson Finance Name Department Supplemental Packet Information – distributed 10/25/22 Summary The Audit Presentation packet material distributed on Thursday, October 20, 2022, had the incorrect report posted accidentally within the packet. The correct Audit Report is now being added as supplemental packet material. The correct Audit Report had previously been posted to the website and distributed to the elected officials via hard copy and email and was only incorrect within the packet material. The Clerk’s office apologizes for the mistake while finalizing the packet material. Memorandum To: City Council From: Jori Behland, City Clerk CC: Bart Olson, City Administrator Date: October 25, 2022 Subject: Audit Presentation UNITED CITY OF YORKVILLE 800 Game Farm Road Yorkville, IL 60560 (630)553-4350 www.yorkville.il.us UNITED CITY OF YORKVILLE, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2022 Prepared by: Rob Fredrickson Director of Finance INTRODUCTORY SECTION This section includes miscellaneous data regarding the City including: List of Principal Officials, Organization Chart, Transmittal Letter and the Certificate of Achievement for Excellence in Financial Reporting. UNITED CITY OF YORKVILLE, ILLINOIS TABLE OF CONTENTS 1 2 Letter of Transmittal 3 9 INDEPENDENT AUDITORS' REPORT 11 MANAGEMENT’S DISCUSSION AND ANALYSIS 15 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 30 Statement of Activities 32 Fund Financial Statements Balance Sheet – Governmental Funds 34 Reconciliation of Total Governmental Fund Balance to the Statement of Net Position – Governmental Activities 36 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 38 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities – Governmental Activities 40 Statement of Net Position – Proprietary Funds 42 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 44 Statement of Cash Flows – Proprietary Funds 45 Statement of Fiduciary Net Position 46 Statement of Changes in Fiduciary Net Position 47 Notes to Financial Statements 48 FINANCIAL SECTION PAGE INTRODUCTORY SECTION Principal Officials Organizational Chart Certificate of Achievement for Excellence in Financial Reporting UNITED CITY OF YORKVILLE, ILLINOIS TABLE OF CONTENTS REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions Illinois Municipal Retirement Fund 98 Police Pension Fund 99 Schedule of Changes in the Employer’s Net Pension Liability/(Asset) Illinois Municipal Retirement Fund 101 Police Pension Fund 103 Schedule of Investment Returns Police Pension Fund 105 Schedule of Changes in the Employer's Total OPEB Liability Retiree Benefit Plan 106 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual General Fund 107 Library – Special Revenue Fund 108 Parks and Recreation – Special Revenue Fund 109 OTHER SUPPLEMENTARY INFORMATION Schedules of Revenues – Budget and Actual – General Fund 112 Schedule of Expenditures – Budget and Actual – General Fund 114 Schedule of Detailed Expenditures – Budget and Actual – General Fund 115 Schedules of Revenues – Budget and Actual – Library – Special Revenue Fund 121 Schedule of Expenditures – Budget and Actual – Library – Special Revenue Fund 122 Schedules of Revenues – Budget and Actual – Parks and Recreation – Special Revenue Fund 124 Schedules of Expenditures – Budget and Actual Parks and Recreation – Special Revenue Fund 125 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Citywide Capital – Capital Projects Fund 127 Schedule of Expenditures – Budget and Actual – Citywide Capital – Capital Projects Fund 128 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Buildings and Grounds – Capital Projects Fund 129 Schedule of Expenditures – Budget and Actual – Buildings and Grounds – Capital Projects Fund 130 Combining Balance Sheet – Nonmajor Governmental 132 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental 133 Combining Balance Sheet – Nonmajor Governmental – Special Revenue Funds 136 PAGE FINANCIAL SECTION - Continued UNITED CITY OF YORKVILLE, ILLINOIS TABLE OF CONTENTS OTHER SUPPLEMENTARY INFORMATION - CONTINUED Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental - Special Revenue Funds 138 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Fox Hill Special Service Area – Special Revenue Fund 140 Sunflower Special Service Area – Special Revenue Fund 141 Motor Fuel Tax – Special Revenue Fund 142 Land Cash – Special Revenue Fund 143 Countryside TIF – Special Revenue Fund 144 Downtown TIF – Special Revenue Fund 145 Downtown TIF II – Special Revenue Fund 146 Debt Service Fund 148 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Vehicle and Equipment – Capital Projects Fund 150 Schedule of Expenditures – Budget and Actual Vehicle and Equipment – Capital Projects Fund 151 Schedule of Expenses and Changes in Net Position – Budget and Actual Sewer – Enterprise Fund 153 Water – Enterprise Fund 154 Consolidated Year-End Financial Report 155 Report on Internal Control Over Financial Reporting and On Compliance and Other Matters Based On an Audit of Financial Statements performed In Accordance with Government Auditing Standards 156 SUPPLEMENTAL SCHEDULES Long–Term Debt Requirements Promissory Note of 2019 159 IEPA (L17-1156300) Loan Payable of 2007 160 General Obligation Library Bonds of 2006 161 General Obligation Library Refunding Bonds of 2013 162 General Obligation Refunding Alternate Revenue Source Bonds of 2014 163 General Obligation Refunding Alternate Revenue Source Bonds of 2014A 164 General Obligation Refunding Alternate Revenue Source Bonds of 2014B 165 General Obligation Refunding Alternate Revenue Source Bonds of 2014C 166 General Obligation Refunding Alternate Revenue Source Bonds of 2015A 167 General Obligation Refunding Alternate Revenue Source Bonds of 2016 168 General Obligation Alternate Revenue Source Bonds of 2021 169 General Obligation Refunding Alternate Revenue Source Bonds of 2022 170 Illinois Rural Bond Bank Debt Certificate of 2003A 171 PAGE FINANCIAL SECTION - Continued UNITED CITY OF YORKVILLE, ILLINOIS TABLE OF CONTENTS Net Position by Component – Last Ten Fiscal Years 174 Changes in Net Position – Last Ten Fiscal Years 176 Fund Balances of Governmental Funds – Last Ten Fiscal Years 178 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 180 Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years 182 Principal Property Taxpayers – Current Tax Levy Year and Nine Tax Levy Years Ago 184 Direct and Overlapping Property Tax Rates – Last Ten Tax Levy Years 186 Property Tax Levies and Collections – Last Ten Fiscal Years 188 Estimate of Taxable Sales by Category – Last Ten Calendar Years 190 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 192 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 194 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 196 Schedule of Direct and Overlapping Governmental Activities Debt 197 Schedule of Legal Debt Margin – Last Ten Fiscal Years 198 Pledged-Revenue Coverage Governmental Activities– Last Ten Fiscal Years 200 Pledged-Revenue Coverage Business-Type Activities – Last Ten Fiscal Years 201 Demographic and Economic Statistics – Last Ten Calendar Years 202 Principal Employers – Current Calendar Year and Nine Calendar Years Ago 203 Full-Time and Part-Time Government Employees by Function Last Ten Fiscal Years 204 Operating Indicators by Function/Program – Last Ten Fiscal Years 206 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 208 New Permits and Construction Values – Last Ten Fiscal Years 210 PAGE STATISTICAL SECTION (Unaudited) UNITED CITY OF YORKVILLE, ILLINOIS Principal Officials Fiscal Year Ended April 30, 2022 EXECUTIVE Mayor: John Purcell LEGISLATIVE Ward 1: Dan Transier, Alderman Ward 1: Ken Koch, Alderman Ward 2: Craig Soling, Alderman Ward 2: Arden Joe Plocher, Alderman Ward 3: Matt Marek, Alderman Ward 3: Chris Funkhouser, Alderman Ward 4: Seaver Tarulis, Alderman Ward 4: Jason Peterson, Alderman ADMINISTRATION City Administrator: Bart Olson Director of Finance/Treasurer: Rob Fredrickson Director of Public Works: Eric Dhuse Chief of Police: Jim Jensen Director of Community Development: Krysti Barksdale-Noble Director of Parks & Recreation: Tim Evans Library Director: Shelley Augustine Assistant City Administrator: Erin Willrett City Clerk: Jori Behland 1 *Fire services are provided by the Bristol Kendall Fire Protection District and wastewater transportation and treatment services are provided by the Yorkville Bristol Sanitary District. These districts are both separate taxing bodies which the City has no direct authority over. United City of Yorkville Fiscal Year 2022 Organization Structure Citizens of Yorkville Mayor and City Council Library Employees Administration Finance Public Works Community Development Parks and Recreation Sewer Water Parks Recreation Planning Building Safety Police Chief City Administrator Library Director City Attorney Boards & Commissions Police Department Streets Buildings & Grounds 2 United City of Yorkville 800 Game Farm Road Yorkville, Illinois 60560 Telephone: (630) 553-4350 www.yorkville.il.us October 20, 2022 To The Honorable John Purcell, Mayor Members of the City Council Citizens of Yorkville, Illinois The Annual Comprehensive Financial Report of the United City of Yorkville, Illinois, for the Fiscal Year ended April 30, 2022, is hereby submitted. The submittal of this report complies with Illinois state law which requires that the City issue a report on its financial position and activity presented in conformance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS) by an independent firm of licensed certified public accountants. This report consists of management’s representations concerning the finances of the City. Consequently, responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. We believe the data, as presented, is accurate in all material respects; and is presented in a manner designed to fairly set forth the financial position of the United City of Yorkville. The results of operations as measured by the financial activity of its various funds; and all disclosures necessary to enable the reader to gain a reasonable understanding of the City's financial affairs have been included. The City’s financial statements have been audited by Lauterbach & Amen LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the United City of Yorkville for the fiscal year ended April 30, 2022, are free of material misstatements. The independent audit involves 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 evaluation of the overall financial statement presentation. The independent auditors concluded, based upon their audit procedures, that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the City’s financial statements for the fiscal year ended April 30, 2022, 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. This report includes all funds of the City (primary government), including the Yorkville Public Library and Parks and Recreation Department, and its pension trust fund, the Yorkville Police Pension Fund. The Police Pension was determined to be a pension trust fund due to its fiduciary and fiscal relationship with the City, as its singular purpose is to provide retirement benefits to the City’s sworn police officers. The City does not have any other reporting units that would qualify as a discretely presented component unit in the separate column of the government-wide financial statements. Generally accepted accounting principles 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 transmittal letter is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. 3 Profile of the United City of Yorkville Yorkville was first settled in 1833 and has been the county seat of Kendall County since 1859. The Village of Yorkville was incorporated in 1874, with a population of approximately 500 people. At that time, the Village of Yorkville only encompassed land on the south side of the Fox River; another village, called Bristol, was located directly across from Yorkville on the north side of the river. In 1957 the two villages merged, via referendum, to form the United City of Yorkville. The City, a non-home rule community as defined by the Illinois Constitution, covers approximately 22 square miles with a 2020 census population of 21,533 residents. The City is located in central Kendall County, about 45 miles southwest of Chicago, Illinois. The Cit y is primarily agricultural and residential in nature, with housing stock consisting of approximately 7,850 single family (includes townhomes, condominiums and duplexes) dwelling units. The City operates under a Mayor/Council form of government, as defined in Illinois State Statutes. The legislative authority of the City is vested in an eight-member council, each elected from their respective wards to overlapping four- year terms. The Mayor is elected at large to a four-year term. The Mayor appoints, with Council consent, a City Administrator to manage the day-to-day operations of the City. The City provides a full range of municipal services with 87 full-time, and 91 part-time employees working in public safety, public works (including water distribution and sewer services), community development, building and zoning, parks and recreation, library services and general administration. The City maintains approximately 140 lane miles of streets and 240 acres of green space at 32 locations. Solid waste collection and recycling services are administered by the City through a contract with a private firm. Sewage treatment and fire protection services are provided by the Yorkville Bristol Sanitary District and the Bristol Kendall Fire Protection District; both of which are independent units of government. The Yorkville Public Library is operated under an appointed board, which is separate from the City Council. Library Board positions are appointed by the Mayor and expire on a rotating basis. Library operations are administered by the Library Board; however, the City is required by state statute to include within its property tax levy and budget, the Library’s requests. The Library does not have authority to issue debt and must do so through the City. Accounting System and Budgetary Control Management of the United City of Yorkville is responsible for establishing and maintaining an internal control structure. The internal control structure is designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. This structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. In addition, the United City of Yorkville maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City's governing body. Activities of the general fund, special revenue funds, capital project funds, debt service funds and enterprise funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level for all budgeted funds. The budget process begins in the fall when department heads begin to prepare line-item budgets for their respective departments for the upcoming fiscal year, before submitting them to the City Administrator and Finance Director. Throughout the fall and winter, the proposed budgets from each department are discussed and revisions are made based on the projected financial outlook and priorities of the City. A draft budget is then prepared and presented to City Council in February or March. A public hearing is required to be held on the budget prior to formal adoption by City Council. The annual budget must be adopted before May 1st, which is the beginning of the City’s fiscal year. 4 Local Economy Yorkville is home to several large and midsized manufacturers and retailers including the Wm. Wrigley Jr. Company, Boombah, Inc., Newlywed Foods, Jewel/Osco, Target, Kohl’s, Home Depot and Menards. It is also home to Raging Waves, Illinois largest water park. The City’s administrative staff, in conjunction with its economic development consultant, continues to work on attracting and retaining commercial and industrial business to the City. Over the course of the current fiscal year, a total of 1,518 building permits were issued by the United City of Yorkville. This includes 32 new commercial buildout/construction/remodeling permits including such new businesses as the Kendall Meat Company, a fresh meat and seafood market located in the Kendall Marketplace business district; Sephora, a cosmetic and beauty retailer located within the Kohl’s department store; and Belle Tire, a wheel and automotive service retailer located in the Menards development area. In addition, two national quick-service food retailers, Noodles & Company and Chipotle, are currently under construction and slated for late Fall/Winter 2022 openings. Within the downtown, a new local coffee shop, Iconic Coffee, recently opened offering pastries and beverages at site along the Fox River. On the residential side, the City issued a total of 358 new construction permits, which included 210 single- family and 148 townhomes, primarily located within the Grande Reserve and Raintree Village subdivisions. The City’s three tax increment financing (TIF) districts also saw a fair amount of activity in the current fiscal year. The Burnt Barrel Social, a one-of-a-kind family friendly lounge offering local fare and crafted spirits (located in the Countryside TIF district on the corner of US Route 34 and Illinois Route 47), applied for a building permit to construct a 605 square foot addition to their existing commercial space. Additionally, the final vacant lot within the TIF district was purchased and a proposed new business, Station One Smokehouse – a Texas styled BBQ restaurant, is planned to open in early 2023. In the City’s two Downtown TIF districts, the former Kendallwood Estates residential development, consisting of 83 single-family lots on 50-acres of land just south of Van Emmon Road and east of Illinois Route 47, was purchased by Rally Homes in the winter of 2021 and renamed Timber Ridge Estates. This development will offer seven different semi-custom home plans and three distinct elevations per plan. The homes will range in size from 2,000 square foot ranches to nearly 4,000 square foot two-story homes. Furthermore, in December of 2021 the City approved a TIF inducement resolution with the Williams Group, LLC for eight parcels located at the northwest corner of Illinois Route 47 (Bridge Street) and Hydraulic Avenue. The redevelopment plans included remodeling the interior spaces for two residential apartments on the second floor and commercial space on the ground floor. Despite the many budgetary challenges facing the State of Illinois, including looming debt and pension obligations, the City has seen multiple signs that the local economy is continuing to remain resilient. The U.S. Census Bureau 5-year Community Survey estimates report that the City has a median household income of $101,245. This compares to $96,854 for Kendall County and $68,428 for the State of Illinois. Yorkville’s average unemployment rate was 5.3% at the end of calendar year 2021, which was lower that both the State and the Chicago-Naperville-Arlington Heights Metropolitain Area (which includes Cook, DuPage, Grundy, Kendall, McHenry and Will Counties) rates of 6.1% and 6.4%, respectively. The equalized assessed valuation (EAV) of taxable property within the City continues to steadily rise, increasing by an average of approximately 7% from 2016 through 2021. In addition, the City’s sales tax base continues to expand, as municipal sales tax proceeds have continued to exceed prior year amounts by an average annualized growth rate of over 6% since fiscal year 2014. As Yorkville emerges from the COVID-19 pandemic, the City’s financial position remains strong with sufficient reserve levels. Management is pleased to report that initial estimated revenue losses did not come to fruition as the City weathered the pandemic over the last two fiscal cycles, as several material revenue streams have reached record heights, appreciably exceeding pre-pandemic actuals. Moreover, for those few operational revenue sources that were impacted by COVID, (particularly hotel, amusement and video game taxes) have either returned to or exceeded pre-pandemic figures. 5 Major Initiatives In fiscal year 2022 the City continued to pursue several major initiatives, including: • Bond Issuance and Refundings - In May of 2021, the City issued $8.25 million in bonds to finance the renovation of a three-story building located at 651 Prairie Point Drive on the City’s northeast side. This 43,000 square foot facility, which was purchased in the prior fiscal year for $1.9 million, will serve as Yorkville’s new City Hall / Police Station, and is currently slated for completion by the of calendar year 2022. Furthermore, in January of 2022 the City issued a second bond for $5.17 million, with $4.16 million of the proceeds used to refinance the 2011 bonds, and the remaining proceeds ($1.10 million) to be used to finance renovations to the new City Hall / Police Station facility. The refunding of the 2011 bonds reduced overall debt service by $275,353 and yielded an economic gain of $266,090. • Road to Better Roads (RTBR) Program and Other Capital Projects – Based on the findings of an updated road study conducted in 2018 and in an effort to address ongoing infrastructure needs, the City continued its annual capital improvement program in the current fiscal year, commonly referred to as the “Road to Better Roads” program. Construction costs in fiscal year 2022 totaled approximately $1.6 million for roadway improvements, consisting of pavement milling and overlays on several local streets. In addition, the City neared completion on watermain improvements at Appletree Court and Elizabeth Street and roadway improvements within the Fox Hill subdivision; finalized preliminary engineering for the East Main Street water main replacement; and continued to progress with the reconstruction of Mill Road. Moreover, preliminary engineering activities commenced on several roadway, sewer and water related projects including: the intersection at Mill and Kennedy Roads; construction of a new sewer interceptor on Corneils Road; and the rehabilitations of the City’s north central water tower and water well #4. Notable non- infrastructure improvements comprised of two playground installations at Price and Fox Hill Parks; and the purchase several new vehicles, including two SUV police squads, the refurbishment of two Street Department dump trucks and the acquisition of three full-size pick-ups by the Community Development Department. • City Water Source Transition – After reviewing several options throughout the first half of fiscal year 2022, in December the City Council identified Lake Michigan (via the DuPage Water Commission) as the preferred choice, as the City begins its transition to a more sustainable long-term water source. This multi-year project, which is projected to cost $230 million, will be done in conjunction with the Village of Oswego and the Village of Montgomery, with Yorkville’s portion currently estimated at $90 million. The project is anticipated to be funded by a mix of debt financing, rate increases, and other City revenue streams, along with the potential for Federal and State assistance as well. In the current fiscal year, City Staff initiated the supply transition by beginning the permitting process with the Illinois Department of Natural Resources, in order to receive the State’s consent to utilize water from Lake Michigan. Preliminary engineering was also commenced, for the purposes of addressing various considerations regarding the transition, including water loss, meter replacement and long-term water rate planning. • New Public Works Facility – The City commenced planning for a new public works facility in June of 2021, as the City Council engaged a consultant to conduct a space needs and development analysis. This analysis, which is expected to be completed in the subsequent fiscal year, will identify potential sites for the new facility, ascertain space needs for current and future operational considerations and develop various cost scenarios. At present, the new facility is expected to encompass an area of 10 to 15 acres, at an estimated cost between $22 and $36 million and will likely be financed by a future bond issuance. 6 Long-Term Financial Planning Management annually develops five-year financial forecasts for all budgeted funds. These forecasts serve as the basis for identifying not only future capital needs, but future operational and personnel requirements as well. Revenue and expenditure trends will be evaluated and prioritized based on the goals set forth by the City Council. It is the intent of management that this five-year financial forecast will serve as the foundation for each year’s corresponding budget document. Relevant Financial Policies In order to ensure that the City continues to meet its immediate and long-term service goals, several financial policies and procedures have been implemented by management. Some of the more prescient policies include the following: • Issue an Annual Comprehensive Financial Report within 180 days of the end of each fiscal year that complies with generally accepted accounting principles. • Monthly revenue, expenditure and cash balance reporting for all funds. These financial reports ensure that the City Council is made aware of any variances from the appropriated budget. In addition, the City’s budget document continues to be revised in order to enhance transparency. • Maintain the “Information for Citizens” webpage on the City’s website, which contains a wide array of financial information including budget and audit information; annual treasurer’s reports; bill lists; employee salary and benefit information; tax rates and fees; and other nonfinancial information. • A fund balance policy establishing benchmark reserve levels to be maintained in the City’s various funds, in order to promote financial stability and provide adequate cash flow for operations. • A pension funding policy which defines the manner in which the City funds the long-term cost of benefits promised to plan participants and defines the calculation of the actuarial determined contribution (ADC) to the Yorkville Police Pension and Illinois Municipal Retirement Funds. • An investment policy which invests public funds in a manner which protects principal, maximizes return for a given level of risk and meets the daily cash flow needs of the City. • A capital asset policy which establishes the capitalization thresholds and estimated useful lives of capital assets. • A purchasing policy to ensure that goods and services are obtained in a timely manner at the lowest possible cost. • A post issuance compliance policy to ensure that City remains in compliance with federal tax laws after the issuance of tax-exempt debt. • A credit card policy for all City related credit card purchases. All City employees are required to sign a credit card policy acknowledgement form prior to receiving a City issued credit card. 7 8 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to United City of Yorkville Illinois For its Annual Comprehensive Financial Report For the Fiscal Year Ended April 30, 2021 Executive Director/CEO 9 INDEPENDENT AUDITORS’ REPORT This section includes the opinion of the City’s independent auditing firm. 10 INDEPENDENT AUDITOR'S REPORT October 20, 2022 The Honorable City Mayor Members of the City Council United City of Yorkville, Illinois Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the United City of Yorkville, Illinois, as of April 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 11 United City of Yorkville, Illinois October 20, 2022 Page 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules, and GASB-required pension and other post- employment benefit (OPEB) reporting, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 12 United City of Yorkville, Illinois October 20, 2022 Page 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the United City of Yorkville, Illinois’ basic financial statements. The other supplementary information and supplemental schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, other supplementary information and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 13 MANAGEMENT’S DISCUSSION AND ANALYSIS 14 As management of the United City of Yorkville (“City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended April 30, 2022. Since the Management’s Discussion and Analysis (“MD&A”) is designed to focus on the current year’s activities, resulting changes and currently known facts, it should be read in conjunction with the Letter of Transmittal, which can be found in the introductory section of this report, and the City’s financial statements, which can be found in the basic financial statements section of this report. Financial Highlights • The assets/deferred outflows of the United City of Yorkville exceeded its liabilities/deferred inflows at the close of the fiscal year by $170,140,087 (net position). Of this amount, $154,779,593 was invested in capital assets, net of related debt; $7,859,306 was restricted for specific activities such as highways and streets, special service areas, bond proceeds, land cash and library operations. Remaining net position, totaling $7,501,188, was unrestricted. • The City’s aggregate net position increased by $12,390,940 or 7.9% during the fiscal year ended April 30, 2022. Of this increase, $9,888,719 is attributable to governmental activities and $2,502,221 is attributable to business-type activities. • Total revenues increased by 7.9% from $36,223,366 to $39,077,288. Overall expenses totaled $26,686,348, which is an increase of 0.1% over the preceding fiscal year. • At the culmination of the current fiscal year, the City’s governmental funds reported combined fund balances of $22,607,988, compared to $10,226,689 as reported on April 30, 2021. • For the fiscal year ended April 30, 2022, the City’s General Fund reported an increase in fund balance of $1,454,746. Total ending fund balance in the General Fund was a positive $10,627,100. • Both the City’s Water and Sewer Funds reported positive changes in net position during the current fiscal year, reporting ending balances of $38,116,454 and $35,715,557, respectively. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. The governmental-wide statements are divided between governmental activities and business-type activities. The perspective of the fund financial statements presents financial information for individual funds established by the City for specific purposes. They are categorized into three distinct groups: governmental, proprietary and fiduciary. This report also contains other supplementary information in addition to the basic financial statements. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City’s assets/deferred outflows and liabilities/deferred inflows, with the difference between the two reported as net position. Over time increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’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. 15 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government (legislative, administration and finance), public safety (police), community development, public works (street operations, health and sanitation) and parks and recreation. Property taxes, shared state taxes and local utility taxes finance the majority of these services. Business-type activities reflect private sector type operations, where the fee for service typically covers all or most of the cost of operations, including depreciation. The business-type activities of the City include water and sewer operations. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the United City of Yorkville can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, 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 a government’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 City’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 this comparison between governmental funds and governmental activities. The City maintains fourteen 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, Library Fund, Parks and Recreation Fund, Citywide Capital Fund and Buildings and Grounds Fund, all of which are considered to be major funds. Information from the City’s other nine governmental funds are combined into a single column presentation. Individual fund information for these non-major governmental funds is provided elsewhere in the report. The United City of Yorkville adopts annual budgets for its General Fund, Library Fund, Parks and Recreation Fund, Citywide Capital Fund and Buildings and Grounds Fund. A budgetary comparison schedule has been provided for all four funds to demonstrate compliance with this budget. Proprietary Funds The City maintains one type of proprietary fund (enterprise funds). Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water Fund (major fund) and the Sewer Fund (major fund). 16 Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s operations. The City maintains one fiduciary trust fund, the Police Pension Fund. The accounting used for fiduciary funds is similar to that used by proprietary funds. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the information provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements, this report also includes certain required supplementary information related to budgetary information and the City’s progress in funding its obligation to provide pension and other post-employment benefits to its employees. Required non-major fund information can be found following the required supplementary information. The combing statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information on pensions. GOVERNMENT-WIDE FINANCIAL ANALYSIS Statement of Net Position The following chart reflects the condensed Statement of Net Position (in millions): 2022 2021 2022 2021 2022 2021 Assets: Current Assets 36.8$ 20.9$ 5.2$ 5.0$ 42.0$ 25.9$ Capital Assets 105.5 100.5 70.0 70.2 175.5 170.7 Other Assets 1.5 0.3 11.4 11.1 12.9 11.4 Total Assets 143.8 121.6 86.6 86.4 230.4 207.9 Deferred Outflows 2.3 1.8 2.8 2.9 5.1 4.7 Total Assets/Deferred Outflows 146.1 123.4 89.4 89.3 235.5 212.7 Liabilities: Current Liabilities 10.2 6.5 3.2 3.1 13.4 9.6 Long-term Liabilities 30.2 20.6 12.0 14.5 42.2 35.1 Total Liabilities 40.4 27.0 15.2 17.6 55.6 44.7 Deferred Inflows 9.4 10.0 0.4 0.3 9.8 10.2 Total Liabilities/Deferred Inflows 49.8 37.0 15.6 17.9 65.4 54.9 Net Position: Net Investment in Capital Assets 93.9 90.5 60.8 58.4 154.8 148.9 Restricted 7.9 2.1 - - 7.9 2.1 Unrestricted (Deficit)(5.5) (6.1) 13.0 12.9 7.5 6.8 Total Net Position 96.3$ 86.4$ 73.8$ 71.3$ 170.1$ 157.7$ Primary Government Total Governmental Activities Business-Type Activities 17 The City’s combined net position increased by $12.4 million, from $157.7 million to $170.1 million, during the current fiscal year. This change is the result of $9.9 million and $2.5 million increases in the net position of governmental activities and business-type activities, respectively. The increase in the net position of governmental activities was due primarily to an increase in current assets, as cash flows in the current fiscal year significantly increased as the result of better-than-expected operating outcomes. Moreover, capital assets grew by $5 million, consisting of developer donations, City constructed roadway improvements and unfinished infrastructure/building projects that were still being constructed at fiscal year-end. Long-term liabilities for governmental activities increased by approximately $9.6 million as the direct result of debt being issued over the course of fiscal year 2022. Restricted net position for governmental activities rose by $5.8 million, predominantly comprised of unspent bond proceeds. The enhanced net position of business- type activities was chiefly due to the continued amortization of long-term debt applicable to the Water and Sewer Funds. Net position of business-type activities was further impacted in positive manner by current year gains to the IMRF net pension asset and improved operating results. The largest portion of the United City of Yorkville’s net position, totaling $154,779,593, reflects its investment in capital assets (e.g., land, infrastructure, buildings, vehicles and equipment), less any related debt used to acquire or construct those assets that are still outstanding. The City uses its capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although Yorkville’s investment in 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. The final component of the City’s net position (4.6%) represents resources that are subject to external restrictions on how they may be used. At fiscal year-end, total restricted net position was comprised as follows: 11.6% was for prospective library operations; 84.2% was comprised of remaining bond proceeds pertaining to the new City Hall and Police Station project; 3.4% was for upcoming road maintenance and improvement projects relating to the City’s motor fuel tax (MFT) program; 0.4% was for future land cash related park projects; and 0.3% was restricted for special service area use. As of April 30, 2022, the City was able to report positive balances in all three categories of net position, both for the government as a whole, and for its business-type activities. Unrestricted net position for governmental activities finished fiscal year 2022 at negative $5,482,448. This was an increase of approximately $0.64 million in comparison to the prior fiscal year, as a consequence of better-than-expected operating results. Unrestricted net position for business-type activities ended the current fiscal year at $12,983,636, a nominal increase of $0.06 million, as the result of enhanced water sales and infrastructure fees directly related to the steady flow of new housing starts. 18 Activities The following table reflects the revenue and expenses of the City’s governmental and business-type activities (in millions). 2022 2021 2022 2021 2022 2021 Revenues Program Revenues: Charges for Services 5.4$ 5.7$ 6.7$ 6.8$ 12.0$ 12.5$ Operating Grants & Contributions 2.8 3.0 - - 2.8 3.0 Capital Grants & Contributions 1.1 1.8 0.3 1.1 1.5 2.9 General Revenues: Property Taxes 5.5 5.2 - - 5.5 5.2 Other Taxes 15.0 12.0 - - 15.0 12.0 Other Revenue 2.1 0.4 0.1 0.1 2.2 0.5 Total Revenues 31.9$ 28.2$ 7.1$ 8.0$ 39.1$ 36.2$ Expenses General Government 4.8 6.0 - - 4.8 6.0 Library 1.0 1.0 - - 1.0 1.0 Parks & Recreation 2.5 2.5 - - 2.5 2.5 Public Safety 5.9 5.7 - - 5.9 5.7 Community Development 1.0 0.8 - - 1.0 0.8 Public Works 5.5 5.1 - - 5.5 5.1 Interest Long-Term Debt 0.6 0.4 - - 0.6 0.4 Water - - 3.6 3.4 3.6 3.4 Sewer - - 1.6 1.7 1.6 1.7 Total Expenses 21.4$ 21.5$ 5.3$ 5.1$ 26.7$ 26.7$ Excess(Deficiency) before Transfers 10.5$ 6.7$ 1.9$ 2.9$ 12.4$ 9.6$ Transfers (0.6) (0.3) 0.6 0.3 - - Change in Net Position 9.9$ 6.4$ 2.5$ 3.1$ 12.4$ 9.6$ Net Position, Beginning 86.4$ 80.0$ 71.3$ 68.2$ 157.7$ 148.2$ Net Position, Ending 96.3$ 86.4$ 73.8$ 71.3$ 170.1$ 157.7$ Primary Government Total Governmental Activities Business-Type Activities 19 Governmental Activities Revenues Total governmental activities revenue for the current fiscal year was $31,935,911, compared to $28,219,399 in the previous fiscal year, which is an increase of 13.2%. Property taxes, one of the City’s principal revenue sources (17.4% of aggregate revenues), totaled over $5.5 million in fiscal year 2022. Property taxes support various governmental activities, including the City’s annual contribution to the Yorkville Police Pension Fund. The City contributed $1,334,771 to the Police Pension Fund in the current fiscal year, fully funding its actuarially determined contribution amount, as pursuant to its pension funding policy. Total property tax revenues increased by 5.6%, as the Library increased its levy for operations, and all three of the City’s TIF districts generated additional incremental property tax revenues totaling $156,484. The City increased its requested levy as well, but only by the increment generated solely from new construction. This resulted in additional proceeds of approximately $90,000, which were used to offset the increased employer contribution of $104,176 (8.5%) to the Pension Fund. After last year’s dynamic growth of 12.5%, sales taxes continued to reach unprecedented heights over the course of the current fiscal year due to the confluence of several factors consisting of: aggressive fiscal and monetary policies in response to the pandemic, which have spurred consumer demand; ongoing supply chain issues, which further drove up demand; statutory changes regarding how these proceeds are sourced; and the resiliency of the local economy. In the past, tax revenues from products purchased on the internet that were used or consumed in Illinois, were distributed to municipalities on a per-capita basis. With the new sourcing laws that went into effect last fiscal year, most on-line retailers are now required to collect both State and locally imposed (including non-home rule) sales taxes on products being used or consumed within Yorkville. The effect of these on-line sourcing rule changes, in combination with the other economic factors mentioned above, was that the City received $7.9 million in sales taxes in fiscal year 2022, which resulted in an extraordinary year-over-year gain of 25.1%. The “other taxes” classification includes several revenue sources, including income, excise, utility, business district, video gaming and state use taxes. The other taxes classification increased by 24.5% in the current fiscal year, as many of these revenue streams benefited from the same pandemic related demand issues that positively impacted sales taxes; in addition to the periodic easing of COVID restrictions and revised per capita figures from the 2020 decennial census. Most notably income and utility taxes increased precipitously, posting year-over-year gains of $704,570 and $179,970, respectively. Aggregate charges for service revenues decreased by 6.2% in the current fiscal year, due to a reduction in overall vehicle and equipment chargebacks in comparison to the year prior. The “other revenues” classification, which is primarily made up of interest income and various reimbursements related to capital projects, increased significantly in fiscal year 2022, due to various developer funded road infrastructure improvements within the Grande Reserve subdivision. Operating grant and contribution revenues declined by $202,376 (6.7%) in comparison to fiscal year 2021 amounts, due to the timing of grant proceeds from the State’s Rebuild Illinois program. Capital grants and contributions decreased by approximately $700,000, as the City accepted fewer capital contributions from developers. - 2,000 4,000 6,000 8,000 10,000 Charges for Service Operating Grants & Contributions Capital Grants & Contributions Property Taxes Sales Tax Other Taxes Other Revenues Governmental Activities -Revenues by Function (in thousands) FY 2022 FY 2021 20 Expenses Total expenses amounted to $21,422,885 for governmental activities at the end of fiscal year 2022. This reflected a nominal decrease of 0.5% from the prior year. The public safety and general government functions comprised the greatest proportion of governmental activities expenses, accounting for a combined 50.0% of the total. Other primary functional areas include public works and parks and recreation, which accounted for 25.9% and 11.5%, respectively, of total governmental activities expense. Public works expenses totaled just over $5.5 million for the fiscal year ended April 30, 2022, which is an 8.8% increase over the preceding year. This increase is primarily attributable to additional expenses related to building and ground operations and fewer vehicle and equipment acquisitions, in comparison to the previous fiscal year. Public safety expenses modestly increased by 2.8%, stemming from inflationary wage augmentations and an increase in the current year’s employer pension contribution. General government expenses decreased by 19.1%, as last year’s amount was skewed due to one-time Federally funded payouts of almost $750,000 to local businesses, pursuant to the Downstate Small Business Stabilization and Business Interruption grant programs, in an effort to mitigate the impact of COVID-19 on the Yorkville business community. Community development expenses increased by 26.1%, due to the addition of one new employee, enhanced vehicle funding and increased inspection costs, which were directly correlated with the rapidity of the local housing environment. Parks and Recreation expenses were slightly down by 1.7%, as fewer capitalizable assets related to playground improvements were completed in the current fiscal year. Interest on long-term debt rose by 53.3%, due to interest being paid on the new 2021 bond and the associated costs of issuance. The following pie chart shows the breakdown of governmental activities expenses by function. - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 General Government Public Safety Community Development Public Works Library Parks & Recreation Interest on Long-Term Debt Governmental Activities -Expenses by Function (in thousands) FY 2022 FY 2021 22% 27% 5% 26% 5% 12% 3% General Government Public Safety Community Development Public Works Library Parks & Recreation Interest on Long-Term Debt 21 Business-Type Activities Business-type activities increased the City’s net position by $2,502,221. For the current fiscal year, 93.2% of all business-type activity revenue was generated from fees for services relating to the City’s water and sewer utilities. Charges for services totaled $6.7 million in fiscal year 2022, which represents a slight reduction of approximately $140,000 (2.0%) in comparison to the year prior. This nominal decrease in charge for service revenue was the result of fewer new housing starts, which lead to reduced connection fee revenue in comparison to fiscal year 2021. Nonetheless, water sales revenue increased by 4.4%, resulting from expanded consumption and an uptick in new utility billing accounts, which expanded by 4.8% in the current fiscal year. Other water and sewer related utility fees increased in a similar manner, posting combined year-over-year gains of $107,196. Capital grant and contribution revenues for business-type activities in fiscal year 2022 decreased by more than two thirds, as fewer water and sewer related infrastructure assets were accepted from developers relative to the prior year. “Other revenues”, which are comprised of rental income, reimbursements, proceeds from capital asset sales, interest income and miscellaneous items; increased by $57,030, due to developer reimbursements related to the construction of a new sanitary sewer interceptor on Corneils Road. Net transfers totaled a positive $624,307, which were used to fund debt service payments. FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS Governmental Funds - The focus of the United City of Yorkville’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the United City of Yorkville’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the United City of Yorkville’s governmental funds reported combined ending fund balances of $22,607,988, an increase of $12,381,299 over last year’s totals. Approximately 99% of fund balance for the governmental funds is identified between the restricted, assigned and unassigned categories. Restricted fund balance, which accounts for 34.8% of total fund balance, includes amounts restricted for library operations, bond proceeds, special service areas, land cash and the City’s motor fuel tax program. The bulk of unassigned fund balance, which accounts for 46.3% of total governmental fund balance, is in the General Fund ($10.5 million); with the majority of the negative equity portion of $2.8 million residing in the City’s three TIF Funds. Remaining fund balance for the governmental funds are allocated as follows: $214,345 (1.0%) is nonspendable (i.e., prepaids); $7,859,306 (34.8%) is restricted in the form of unspent bond proceeds, funds reserved for special service areas and the State’s Motor Fuel program; $6,941,081 is assigned to various road related capital projects, building improvements, vehicles and equipment. Overall General Fund revenues increased by $3.6 million (18.2%), to finish at $23.1 million for the fiscal year, led by dramatic year-over-year gains in sales taxes (+$1.6 million), income tax (+$0.7 million) and Federal grant (+1.5 million) proceeds. When coupled with lower- than- expected salary and benefit expenditures, this resulted in a revenue over expenditure excess of $8.2 million. Approximately half of this excess was earmarked by City Council for capital purposes, as an additional $3.8 million was transferred out in addition the original budgeted amounts of $3 million; thus, resulting in a positive General Fund surplus of $1.5 million. It should also be noted that the tax revenues that were most impacted by the pandemic (namely hotel, video gaming and amusement taxes) either returned to, or exceeded, pre-pandemic levels, resulting in an aggregate gain of $318,144. The Library Fund reported a positive fund balance of $923,559 at the end of fiscal year 2022, which represents an increase of $116,338 over last year’s fund balance amount of $807,221. Property taxes used to finance library operations, which accounted for 91.7% of total library operational revenues, increased by $37,365 (5.1%). Aggregate operational expenditures increased by $35,643 (4.5%), as a result of inflationary increases in wages and utilities, along with an expansion in the number of hours worked by part-time personnel, as Library hours of operation returned to its pre-pandemic norm. 22 The Parks and Recreation Fund reported a deficit in the amount of $73,000 at the close of the current fiscal year, thus decreasing fund balance from $73,000 to $0, as stipulated in the fiscal year 2022 budget. The Parks and Recreation Fund, more so than any other Fund in the City, had been the most negatively impacted by the pandemic, due to the very social nature of its revenue generating activities. Fortunately, aggregate charge for service (comprised of child development, concession, special events and athletics & fitness) revenues returned to pre-COVID-19 levels, posting collective year-over-year gains of 53.8% ($192,023), as social distancing guidelines were phased out and program participation levels returned to normal. Operational expenditures in the Parks and Recreation Fund increased by 6.2%, due to the addition of a new full-time Park’s maintenance employee, increased program spending and the restoration of the City’s annual Hometown Day’s festival, which was canceled in 2020 due to the pandemic. The Citywide Capital Fund ended fiscal year 2022 with a surplus of just over $2.0 million, which increased fund balance from $119,569 to $2,165,601. Aggregate revenues exceeded prior year amounts by $1.2 million, as developer reimbursements directly offset roadway expenditures in the Grande Reserve subdivision. Transfers in for fiscal year 2022 totaled $3,138,492, comprised of a $2.0 million transfer from the Building and Grounds Fund as a payback for land acquisition costs incurred in the previous year; and a $1.1 million transfer from the General Fund to be used towards future capital projects. On the other side of the ledger, roadway related capital expenditures increased by $2.3 million, as the City continued work on several major road projects and launched its inaugural sidewalk replacement program in the amount of $159,960. The Buildings and Grounds Fund was created in the current fiscal year for the purposes of accounting for the maintenance, acquirement and improvements of all City-owned buildings. The Fund has one full time employee, who works in conjunction with the Facilities Manager, which is a shared position between Yorkville and the Village of Oswego. Personnel costs for the Fund are financed by permit fees and chargebacks, whereas building related maintenance and supplies are funded by a transfer from the General Fund. This Fund received $9.785 million in bond proceeds, in addition to a General Fund transfer of $3.324 million in fiscal year 2022, which has been earmarked for the renovation of the new City Hall and Police Station facility. As of April 30, 2022, just under $1.1 million has been incurred in renovation costs associated with this project. 23 GENERAL FUND BUDGETARY HIGHLIGHTS The chart below compares the fiscal year 2022 final budget to the actual results of the City’s General Fund. Fiscal Year 2022 General Fund Budgetary Highlights Final Budget Actual Over (Under) Actual as % of Budget Revenues Taxes $ 12,089,017 $ 14,350,349 $ 2,261,332 119% Intergovernmental 3,401,780 5,630,190 2,228,410 166% Licenses, Permits and Fees 524,500 834,170 309,670 159% Charges for Services 1,781,123 1,902,362 121,239 107% Fines and Forfeitures 116,850 197,158 80,308 169% Interest 20,000 (33,857) (53,857) -169% Miscellaneous 132,000 237,575 105,575 180% Total Revenues $ 18,065,270 $ 23,117,947 $ 5,052,677 128% Expenditures General Government $ 5,293,141 $ 5,141,027 $ (152,114) 97% Public Safety 6,158,904 6,018,903 (140,001) 98% Community Development 990,515 1,154,892 164,377 117% Public Works 2,649,285 2,572,571 (76,714) 97% Total Expenditures $ 15,091,845 $ 14,887,393 $ (204,452) 99% Excess of Revenues over Expenditures $ 2,973,425 $ 8,230,554 $ 5,257,129 277% Other Financing Sources (Uses) (2,973,425) (6,775,808) 3,802,383 228% Net Change in Fund Balance $ - $ 1,454,746 Fund Balance - Beginning of Year 9,172,354 Fund Balance - End of Year $ 10,627,100 The General Fund is the City’s primary operating fund and the largest source of funding for the day-to-day activities of its various departments. Actual revenues exceed budgetary amounts by $5,052,677; as taxes, intergovernmental, licenses & permits, fines, charges for service and miscellaneous revenues proved to be more robust than initially anticipated. In August of 2021, the City received its first tranche of $1.4 million from the American Rescue Plan Act (ARPA), which was signed into law in March of 2021. Based on guidelines promulgated by the United States Treasury Department’s Final Rule, these proceeds were accounted for as revenue loss within the City’s General Fund and applied towards sworn police officer salary expenditures incurred over the course of the fiscal year. Aggregate building permits totaled $949,459 in fiscal year 2022, of which $745,979 was retained in the General Fund to cover inspection related personnel, operating and vehicle costs within the Community Development Department. Per the City’s past practice, remaining building permit proceeds were allocated to the Citywide Capital Fund, to assist in the facilitation of future roadway related capital projects. Despite the continual increase in General Fund cash reserves, investment income continued to lag pre-COVID actuals in the current fiscal year, as interest rates remained at historically low levels, which began with the onset of the pandemic in March of 2020. The negative $33,857 interest amount presented on the preceding page is comprised of realized positive earnings of $11,013 and an unrealized loss of negative $44,870. The unrealized losses are ascribed to the City’s investment in United States Treasury securities, which fluctuate in value as the market changes, and are accounted for under the mark-to-market basis pursuant to Generally Accepted Accounting Principles (GAAP). These losses will not become realized, as it’s the City’s policy to hold such investments to maturity. 24 Actual General Fund expenditures for the year were $204,452 lower than budget ($14,887,393 actual compared to $15,091,845 budgeted), as all departments within the General Fund, with the exception of Community Development and the Administration Services Department, were under their respective appropriated budgets. The expenditure overage of $43,150 in Administrative Services was due to higher than expected municipal and business district sales tax rebates, which were directly correlated with the remarkable revenue growth of those types of sales taxes over the course of the current fiscal year. Community Development exceeded budgeted amounts by $164,377, caused by increased demand for outsourced inspection services needed to maintain timely issuance of building permits, and the expediting of vehicle purchases due to supply chain issues. Net other financing uses (i.e., transfers out) exceeded budgetary amounts by $3.8 million, as the City Council decided to supplement transfers to the Capital Project Funds in order to finance roadway and building projects in subsequent fiscal years. As shown in the table on the previous page, current year operating results generated a surplus amount of $1,454,746, which increased overall fund balance from $9,172,354 at the beginning of the year, to $10,627,100 at the end of fiscal year 2022. The surplus at fiscal year-end was primarily attributable to enhanced revenues, predominately related to the tax and intergovernmental categories; and lower than expected salary and benefit expenditures, as a direct result of retirements and temporary vacancies. Ending fund balance for the General Fund was comprised of nonspendable (i.e., prepaid) amounts totaling $162,600, with the remaining balance of $10,464,500 classified as unassigned, which can be used for any corporate purpose. At the culmination of fiscal year 2022, unassigned fund balance as a percentage of total expenditures equated to 70.3%, which is the equivalent of approximately eight to nine months of operating reserves. Proprietary Funds - The United City of Yorkville’s proprietary funds provide the same type of information found in the government-wide financial statements, but in greater detail. The net position of the City’s proprietary funds at the end of the year totaled $73,832,011, allocated between the Water and Sewer Funds in the amounts of $38,116,454 and $35,715,557, respectively. Lower than expected operational expenses and the deferral of capital projects and vehicle purchases (due to ongoing supply chain issues) into the subsequent fiscal year, accounted for the bulk of the increase. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets – The United City of Yorkville’s investment in capital assets for its governmental and business-type activities as of April 30, 2022 totaled $175,452,220 (net of accumulated depreciation). Investments in capital assets include land, land improvements, construction in progress (CIP), infrastructure (roadway improvements, sanitary sewer lines, storm sewers and watermains), buildings, equipment and vehicles. The following tables summarize the changes in the City’s capital assets for governmental and business-type activities. Change in Capital Assets – Governmental Activities (in millions) NetBalanceAdditions/BalanceMay 1, 2021 (Deletions)April 30, 2022Non-Depreciable Assets:Land and Construction in Progress 34.6$ 4.5$ 39.1$ Depreciable Capital Assets:Buildings 15.7 - 15.7 Equipment 9.1 0.2 9.3 Vehicles 3.2 0.2 3.4 Infrastructure 78.5 2.8 81.3 Accumulated Depreciation on Capital Assets (40.6) (2.7) (43.3) Total Capital Assets, Net 100.5$ 5.0$ 105.5$ 25 Total net capital assets for the City’s governmental activities increased by $5.0 million in the current fiscal year, predominately due to developer donated roadway and storm sewer infrastructure, ongoing City financed street infrastructure and building improvement projects, and the capitalization of infrastructure improvements stemming from the 2021 road program. During the fiscal year depreciation expense totaling $2,913,659 was charged to the following functions: General Government ($115,579), Library ($182,235), Parks and Recreation ($137,871), Public Safety ($125,759), and Public Works ($2,352,215). Change in Capital Assets – Business-Type Activities (in millions) NetBalanceAdditions/BalanceMay 1, 2021 Deletions April 30, 2022Non-Depreciable Assets:Land and Construction in Progress 3.6$ 1.3$ 4.9$ Depreciable Capital Assets:Equipment 19.1 0.0 19.2 Vehicles 0.6 - 0.6 Infrastructure 69.8 0.3 70.1 Accumulated Depreciation on Capital Assets (22.9) (1.8) (24.7) Total Capital Assets, Net 70.2$ (0.2)$ 70.0$ Net capital assets decreased by $198,793 in fiscal year 2022, as depreciation expense exceeded asset addition amounts recorded as infrastructure and construction in progress. Developer capital asset additions for the year totaled $340,549 and were comprised of water infrastructure improvements ($111,473), and sewer infrastructure improvements ($229,076) located within the Grande Reserve subdivision. During the fiscal year depreciation expense of $1,111,786 and $732,083 was charged to the Water and Sewer Funds functional expense categories, respectively. For more detailed information, related to capital assets, see Note 3 to the financial statements. Debt Administration As of April 30, 2022, the United City of Yorkville had total debt outstanding of $29,845,833, which included general obligation and alternative revenue source bonds, debt certificates, developer commitments and loans payable. This amount is partially comprised of eight alternative revenue bonds which pledge income, sales, incremental property taxes, and water/sewer revenues. In addition, these bonds would be reverted to the property tax rolls should the alternative revenue source prove to be inadequate. Governmental Business-Type Activities Activities Total General Obligation & Alternative Revenue Source Bonds 17,781,130$ 8,455,165$ 26,236,295$ Debt Certificates - 155,000 155,000 Developer Commitments - 2,505,402 2,505,402 Notes and Loans Payable 420,112 529,024 949,136 18,201,242$ 11,644,591$ 29,845,833$ The City’s general obligation debt is rated AA by Standard & Poor’s and Fitch Ratings. Yorkville is a non- home rule community and as such is subject to a legal debt limit of 8.625% of the equalized assessed value (EAV) of the City, per State statute. The 2021 EAV of the City was $623,597,568, which resulted in a legal debt limit of $53,785,290. At the end of the fiscal year, the City had $2,535,000 in debt applicable to the debt limit, resulting in a debt to EAV ratio of 0.41%. For more detailed information related to long- term debt, see Note 3 to the financial statements. 26 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET Fiscal year 2023 saw the General Fund continue to build up its reserves, as overall fund balance exceeded $10.6 million, eclipsing its previous apex of $9.2 million in the year prior. Despite all the uncertainty surrounding the last two fiscal years, management is pleased to report that the anticipated negative financial effects of the COVID-19 pandemic did not come to fruition; as the City’s primary locally sourced revenue streams, consisting of sales taxes, property taxes, income taxes and building permits, have thus far remained resilient. Furthermore, based on the overall operating results of fiscal year 2022 and the events that have come to pass thus far in fiscal year 2023, it would appear that the local economy has continued to remain stable and that development in Yorkville continues to carry on in a progressive manner, as the City remains committed to developing economic incentives and other measures to attract and retain businesses. After a 7.0% increase last year, overall property values (i.e., assessed valuation) in the City are currently estimated to increase an additional 11.4% in 2022, which is a positive indicator that the local housing market continues to strengthen. Despite the increases in EAV over the last several years, the City remains mindful of its impact on residents when developing the annual property tax levy. For the 2021 levy year, the City Council once again continued its past practice of only increasing the levy by the incremental property tax proceeds generated from new construction. This resulted in the City foregoing the inflationary increment of the levy, valued at approximately $50,000. As the City moved forward into the subsequent fiscal year, management continued its practice of conservatively projecting revenues, while looking for ways to reduce expenditures, in order to maintain adequate fund balances and cash reserves. In addition, management continues to monitor the fiscal activities of the State of Illinois, in order to ascertain the impact, if any, of how additional State budget cuts would impact Yorkville’s share of State revenues. Looking ahead at fiscal year 2023 from a financial planning standpoint, the General Fund budget is at breakeven, with continued budgetary emphasis on enhanced funding for roadway improvements and vehicle and equipment replacement. At the same time, the City remains committed to maintaining adequate reserves, should an economic downturn occur. Budgeted capital and other significant projects for the upcoming fiscal year total around $15 million (excluding City-owned building projects) and include: the continuation of the annual “Road to Better Roads” program, with approximately $2.44 million budgeted for roadway improvements; the implementation of new enterprise resource planning system; the continuance of the City’s sidewalk replacement and pavement striping program, along with a new shared use and parking lot maintenance programs; potential grant funding for road infrastructure improvements on Van Emmon Street and Bristol Ridge Road, in addition to roadway and underground utility work in the City’s downtown; water infrastructure improvements on Prairie Lane, Pleasure Drive and Georgeanna Street; and vehicle and equipment purchases budgeted at $2.1 million. REQUESTS FOR INFORMATION This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the City’s finances. Questions concerning this report or requests for additional financial information should be directed to Rob Fredrickson, Director of Finance, United City of Yorkville, 800 Game Farm Road, Yorkville, Illinois. 27 • Government-Wide Financial Statements • Fund Financial Statements Governmental Funds Proprietary Funds Fiduciary Fund BASIC FINANCIAL STATEMENTS The basic financial Statements include integrated sets of financial statements as required by the GASB. The sets of statements include: In addition, the notes to the financial statements are included to provide information that is essential to a user’s understanding of the basic financial statements. 28 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Net Position April 30, 2022 See Following Page 29 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Net Position April 30, 2022 Business-Type Activities Totals Current Assets Cash and Investments $26,171,576 3,977,608 30,149,184 Receivables - Net 10,448,231 1,184,063 11,632,294 Prepaids 214,419 31,232 245,651 Total Current Assets 36,834,226 5,192,903 42,027,129 Noncurrent Assets Capital Assets Nondepreciable Capital Assets 39,077,602 4,849,403 43,927,005 Depreciable Capital Assets 109,759,284 89,961,778 199,721,062 Accumulated Depreciation (43,367,961)(24,827,886)(68,195,847) Total Capital Assets 105,468,925 69,983,295 175,452,220 Other Assets Net Pension Asset - IMRF 1,528,392 330,272 1,858,664 Assets Held for Others - 11,091,000 11,091,000 Total Other Assets 1,528,392 11,421,272 12,949,664 Total Noncurrent Assets 106,997,317 81,404,567 188,401,884 Total Assets 143,831,543 86,597,470 230,429,013 Deferred Items - IMRF 315,996 68,283 384,279 Deferred Items - RBP 308,821 46,145 354,966 Deferred Items - Police Pension 1,587,776 - 1,587,776 Deferred Items - ARO - 2,708,692 2,708,692 Unamortized Loss on Refunding 43,246 4,269 47,515 Total Deferred Outflows of Resources 2,255,839 2,827,389 5,083,228 Total Assets and Deferred Outflows of Resources 146,087,382 89,424,859 235,512,241 Governmental Activities ASSETS DEFERRED OUTFLOWS OF RESOURCES The notes to the financial statements are an integral part of this statement. 30 Business-Type Activities Totals Current Liabilities Accounts Payable $2,575,522 367,722 2,943,244 Deposits Payable 4,874,754 - 4,874,754 Accrued Payroll 182,911 27,131 210,042 Accrued Interest Payable 198,031 81,522 279,553 Other Payables 173,228 5,363 178,591 Current Portion of Long-Term Debt 2,161,979 2,715,795 4,877,774 Total Current Liabilities 10,166,425 3,197,533 13,363,958 Noncurrent Liabilities Compensated Absences Payable 553,206 68,649 621,855 Net Pension Liability - Police Pension 12,558,636 - 12,558,636 Total OPEB Liability - RBP 959,165 143,322 1,102,487 Other Liabilities 1,890 - 1,890 Notes Payable 360,969 - 360,969 IEPA Loans Payable - 416,521 416,521 General Obligation Bonds Payable - Net 15,814,706 6,061,589 21,876,295 Developer Agreements - 2,505,402 2,505,402 Asset Retirement Obligation - 2,783,000 2,783,000 Total Noncurrent Liabilities 30,248,572 11,978,483 42,227,055 Total Liabilities 40,414,997 15,176,016 55,591,013 Property and State Taxes 6,419,823 - 6,419,823 Deferred Items - IMRF 1,793,395 387,537 2,180,932 Deferred Items - RBP 196,056 29,295 225,351 Deferred Items - Police Pension 955,035 - 955,035 Total Deferred Inflows of Resources 9,364,309 416,832 9,781,141 Total Liabilities and Deferred Inflows of Resources 49,779,306 15,592,848 65,372,154 Net Investment in Capital Assets 93,931,218 60,848,375 154,779,593 Restricted Library Operations 913,690 - 913,690 Motor Fuel Tax 269,412 - 269,412 Special Service Areas 23,962 - 23,962 Land Cash 33,843 - 33,843 Capital Projects - Bond Proceeds 6,618,399 - 6,618,399 Unrestricted (Deficit)(5,482,448)12,983,636 7,501,188 Total Net Position 96,308,076 73,832,011 170,140,087 LIABILITIES NET POSITION Governmental Activities DEFERRED INFLOWS OF RESOURCES The notes to the financial statements are an integral part of this statement. 31 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Activities For the Fiscal Year Ended April 30, 2022 Charges Operating Capital for Grants/Grants/ Services Contributions Contributions Governmental Activities General Government $4,822,508 3,508,715 - - Library 1,017,179 121,557 48,746 - Parks and Recreation 2,471,380 549,231 10,512 - Public Safety 5,893,447 - - 9,590 Community Development 1,044,496 - - - Public Works 5,545,928 1,182,864 2,775,386 1,122,368 Interest on Long-Term Debt 627,947 - - - Total Governmental Activities 21,422,885 5,362,367 2,834,644 1,131,958 Business-Type Activities Sewer 1,632,962 1,714,066 - 229,076 Water 3,630,501 4,944,694 - 111,473 Total Business-Type Activities 5,263,463 6,658,760 - 340,549 26,686,348 12,021,127 2,834,644 1,472,507 General Revenues Taxes Property Taxes Utility Taxes Business District Taxes Admissions and Amusement Taxes Video Gaming Taxes Other Taxes Intergovernmental - Unrestricted Sales Taxes Income Taxes State Use Taxes Interest Income (Loss) Miscellaneous Transfers - Internal Activity Change in Net Position Net Position - Beginning Net Position - Ending Expenses Program Revenues The notes to the financial statements are an integral part of this statement. 32 Governmental Business-Type Activities Activities Totals (1,313,793)- (1,313,793) (846,876)- (846,876) (1,911,637)- (1,911,637) (5,883,857)- (5,883,857) (1,044,496)- (1,044,496) (465,310)- (465,310) (627,947)- (627,947) (12,093,916)- (12,093,916) - 310,180 310,180 - 1,425,666 1,425,666 - 1,735,846 1,735,846 (12,093,916)1,735,846 (10,358,070) 5,544,463 - 5,544,463 1,707,542 - 1,707,542 547,651 - 547,651 337,279 - 337,279 252,890 - 252,890 236,841 - 236,841 7,933,942 - 7,933,942 3,175,556 - 3,175,556 798,764 - 798,764 (24,510)(21,573)(46,083) 2,096,524 163,641 2,260,165 (624,307)624,307 - 21,982,635 766,375 22,749,010 9,888,719 2,502,221 12,390,940 86,419,357 71,329,790 157,749,147 96,308,076 73,832,011 170,140,087 Net (Expenses)/Revenues Primary Government The notes to the financial statements are an integral part of this statement. 33 UNITED CITY OF YORKVILLE, ILLINOIS Balance Sheet - Governmental Funds April 30, 2022 Cash and Investments $7,117,389 Receivables - Net of Allowances Property Taxes 3,560,742 Accounts 1,040,135 Grants 11,656 Other Taxes 3,916,739 Due from Other Funds 2,829,423 Prepaids 162,600 Total Assets 18,638,684 Accounts Payable 965,949 Deposit Payable 2,158,320 Accrued Payroll 132,592 Due to Other Funds - Other Payables 4,707 Total Liabilities 3,261,568 Property and State Taxes 4,750,016 Total Liabilities and Deferred Inflows of Resources 8,011,584 Nonspendable 162,600 Restricted - Assigned - Unassigned 10,464,500 Total Fund Balances 10,627,100 Total Liabilities, Deferred Inflows of Resources and Fund Balances 18,638,684 FUND BALANCES LIABILITIES General ASSETS DEFERRED INFLOWS OF RESOURCES The notes to the financial statements are an integral part of this statement. 34 Parks and Citywide Buildings and Library Recreation Capital Grounds Nonmajor Totals 996,651 171,848 5,033,665 10,693,229 2,158,794 26,171,576 1,669,807 - - - - 5,230,549 325 2,338 148,807 164 29,691 1,221,460 - - - - - 11,656 3,996 - - - 63,831 3,984,566 - - - - - 2,829,423 9,869 41,876 - 74 - 214,419 2,680,648 216,062 5,182,472 10,693,467 2,252,316 39,663,649 21,744 88,394 538,828 688,201 272,406 2,575,522 - 9,375 2,446,043 - 261,016 4,874,754 10,262 37,048 - 3,009 - 182,911 - - - - 2,829,423 2,829,423 55,276 81,245 32,000 - - 173,228 87,282 216,062 3,016,871 691,210 3,362,845 10,635,838 1,669,807 - - - - 6,419,823 1,757,089 216,062 3,016,871 691,210 3,362,845 17,055,661 9,869 41,876 - - - 214,345 913,690 - - 6,618,399 327,217 7,859,306 - - 2,165,601 3,383,858 1,391,622 6,941,081 - (41,876)- - (2,829,368)7,593,256 923,559 - 2,165,601 10,002,257 (1,110,529)22,607,988 2,680,648 216,062 5,182,472 10,693,467 2,252,316 39,663,649 Capital ProjectsSpecial Revenue The notes to the financial statements are an integral part of this statement. 35 UNITED CITY OF YORKVILLE, ILLINOIS Reconciliation of Total Governmental Fund Balance to Net Position of Governmental Activities April 30, 2022 Total Governmental Fund Balances $22,607,988 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds.105,468,925 Deferred outflows (inflows) of resources related to the pensions not reported in the funds. Deferred Items - IMRF (1,477,399) Deferred Items - Police Pension 632,741 Deferred Items - RBP 112,765 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Accrued Interest Payable (198,031) Compensated Absences Payable (691,508) Net Pension Liability/(Asset) - IMRF 1,528,392 Net Pension Liability - Police Pension (12,558,636) Total OPEB Liability - RBP (959,165) Notes Payable (418,222) General Obligation Bonds Payable (17,781,130) Unamortized Loss on Refunding 43,246 Other Obligations Payable (1,890) Net Position of Governmental Activities 96,308,076 The notes to the financial statements are an integral part of this statement. 36 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended April 30, 2022 See Following Page 37 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended April 30, 2022 Revenues Taxes $14,350,349 Intergovernmental 5,630,190 Licenses, Permits and Fees 834,170 Charges for Services 1,902,362 Fines and Forfeits 197,158 Grants and Donations - Interest Income (Loss)(33,857) Miscellaneous 237,575 Total Revenues 23,117,947 Expenditures General Government 5,141,027 Library - Parks and Recreation - Public Safety 6,018,903 Community Development 1,154,892 Public Works 2,572,571 Capital Outlay - Debt Service Principal Retirement - Interest and Fiscal Charges - Total Expenditures 14,887,393 Excess (Deficiency) of Revenues Over (Under) Expenditures 8,230,554 Other Financing Sources (Uses) Sale of Capital Assets - Debt Issuance - Premium on Debt Issuance - Transfers In 21,231 Transfers Out (6,797,039) (6,775,808) Net Change in Fund Balances 1,454,746 Fund Balances - Beginning 9,172,354 Fund Balances - Ending 10,627,100 General The notes to the financial statements are an integral part of this statement. 38 Parks and Citywide Buildings and Library Recreation Capital Grounds Nonmajor Totals 1,611,808 - - - 462,322 16,424,479 48,746 - - - 1,265,235 6,944,171 103,850 - 216,195 21,231 121,461 1,296,907 11,131 549,231 837,007 108,431 446,035 3,854,197 6,576 - - - 7,529 211,263 - 7,800 - - 2,712 10,512 1,530 87 4,712 1,172 1,846 (24,510) 2,796 235,413 1,619,841 576 323 2,096,524 1,786,437 792,531 2,677,755 131,410 2,307,463 30,813,543 - - - - 123,725 5,264,752 834,944 - - - - 834,944 - 2,381,042 - - - 2,381,042 - - - - 466 6,019,369 - - - - - 1,154,892 - - 285,078 238,056 128,911 3,224,616 18,050 - 2,679,942 1,078,232 2,758,453 6,534,677 720,000 - 200,000 - 677,659 1,597,659 121,914 - 115,813 239,522 139,346 616,595 1,694,908 2,381,042 3,280,833 1,555,810 3,828,560 27,628,546 91,529 (1,588,511)(603,078)(1,424,400)(1,521,097)3,184,997 - - - - 35,598 35,598 - - - 9,260,000 - 9,260,000 - - - 525,011 - 525,011 24,809 1,515,511 3,138,492 3,709,380 320,425 8,729,848 - - (489,382)(2,067,734)- (9,354,155) 24,809 1,515,511 2,649,110 11,426,657 356,023 9,196,302 116,338 (73,000)2,046,032 10,002,257 (1,165,074)12,381,299 807,221 73,000 119,569 - 54,545 10,226,689 923,559 - 2,165,601 10,002,257 (1,110,529)22,607,988 Special Revenue Capital Projects The notes to the financial statements are an integral part of this statement. 39 UNITED CITY OF YORKVILLE, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended April 30, 2022 Net Change in Fund Balances - Total Governmental Funds $12,381,299 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital Outlays 6,786,994 Capital Contributions 1,122,368 Depreciation Expense (2,913,659) Disposals - Cost (212,661) Disposals - Accumulated Depreciation 212,661 The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF (711,831) Change in Deferred Items - Police Pension 2,261,207 Change in Deferred Items - RBP (106,448) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal on long-term debt consumes the current financial resources of the governmental funds. Change in Compensated Absences Payable (7,565) Change in Net Pension Liability/(Asset) - IMRF 1,273,019 Change in Net Pension Liability - Police Pension (2,108,609) Change in Total OPEB Liability - RBP 110,648 Debt Issuance (9,260,000) Premium on Debt Issuance (525,011) Retirement of Debt 1,597,659 Amortization of Loss on Refunding (21,702) Amortization of Premium 67,984 Changes to accrued interest on long-term debt in the Statement of Activities does not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.(57,634) Changes in Net Position of Governmental Activities 9,888,719 The notes to the financial statements are an integral part of this statement. 40 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Net Position - Proprietary Funds April 30, 2022 See Following Page 41 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Net Position - Proprietary Funds April 30, 2022 Water Totals Current Assets Cash and Investments $756,513 3,221,095 3,977,608 Receivables - Net of Allowances Accounts 327,348 856,715 1,184,063 Prepaids 7,987 23,245 31,232 Total Current Assets 1,091,848 4,101,055 5,192,903 Noncurrent Assets Capital Assets Nondepreciable 674,494 4,174,909 4,849,403 Depreciable 37,026,888 52,934,890 89,961,778 Accumulated Depreciation (8,474,177)(16,353,709)(24,827,886) 29,227,205 40,756,090 69,983,295 Other Assets Net Pension Asset - IMRF 114,443 215,829 330,272 Assets Held for Others 11,091,000 - 11,091,000 Total Other Assets 11,205,443 215,829 11,421,272 Total Noncurrent Assets 40,432,648 40,971,919 81,404,567 Total Assets 41,524,496 45,072,974 86,597,470 Deferred Items - IMRF 23,660 44,623 68,283 Deferred Items - RBP 17,834 28,311 46,145 Deferred Items - ARO - 2,708,692 2,708,692 Unamortized Loss (Gain) on Refunding 3,539 730 4,269 45,033 2,782,356 2,827,389 Total Assets and Deferred Outflows of Resources 41,569,529 47,855,330 89,424,859 Business-Type Activities - Enterprise Sewer ASSETS DEFERRED OUTFLOWS OF RESOURCES The notes to the financial statements are an integral part of this statements. 42 Water Totals Current Liabilities Accounts Payable $81,210 286,512 367,722 Accrued Payroll 9,147 17,984 27,131 Accrued Interest Payable 17,103 64,419 81,522 Other Payables - 5,363 5,363 Current Portion of Long-Term Debt 1,189,821 1,525,974 2,715,795 Total Current Liabilities 1,297,281 1,900,252 3,197,533 Noncurrent Liabilities Compensated Absences Payable 13,098 55,551 68,649 Total OPEB Liability - RBP 55,392 87,930 143,322 IEPA Loans Payable - 416,521 416,521 General Obligation Bonds Payable - Net 3,140,000 2,921,589 6,061,589 Developer Agreements 1,202,593 1,302,809 2,505,402 Asset Retirement Obligation - 2,783,000 2,783,000 Total Noncurrent Liabilities 4,411,083 7,567,400 11,978,483 Total Liabilities 5,708,364 9,467,652 15,176,016 Deferred Items - IMRF 134,286 253,251 387,537 Deferred Items - RPB 11,322 17,973 29,295 Total Deferred Inflows of Resources 145,608 271,224 416,832 Total Liabilities and Deferred Inflows of Resources 5,853,972 9,738,876 15,592,848 Net Investment in Capital Assets 24,915,744 35,932,631 60,848,375 Unrestricted 10,799,813 2,183,823 12,983,636 Total Net Position 35,715,557 38,116,454 73,832,011 NET POSITION LIABILITIES Sewer Business-Type Activities - Enterprise DEFERRED INFLOWS OF RESOURCES The notes to the financial statements are an integral part of this statements. 43 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds For the Fiscal Year Ended April 30, 2022 Water Totals Operating Revenues Charges for Services $1,513,766 4,661,610 6,175,376 Operating Expenses Operations 660,028 2,246,249 2,906,277 Depreciation and Amortization 734,417 1,121,240 1,855,657 Total Operating Expenses 1,394,445 3,367,489 4,761,934 Operating Income 119,321 1,294,121 1,413,442 Nonoperating Revenues (Expenses) Interest Income 3,139 2,031 5,170 Unrealized Gain (Loss)- (29,663)(29,663) Connection Fees 200,300 283,084 483,384 Other Income 56,067 110,494 166,561 Interest Expense (238,517)(263,012)(501,529) 20,989 102,934 123,923 Income Before Transfers and Contributions 140,310 1,397,055 1,537,365 Capital Contributions 229,076 111,473 340,549 Transfers In 519,749 180,233 699,982 Transfers Out (75,675)- (75,675) 673,150 291,706 964,856 Change in Net Position 813,460 1,688,761 2,502,221 Net Position - Beginning 34,902,097 36,427,693 71,329,790 Net Position - Ending 35,715,557 38,116,454 73,832,011 Business-Type Activities - Enterprise Sewer The notes to the financial statements are an integral part of this statement. 44 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Cash Flows - Proprietary Funds For the Fiscal Year Ended April 30, 2022 Water Totals Cash Flows from Operating Activities Receipts from Customers and Users $1,617,320 4,918,394 6,535,714 Payments to Employees (499,696)(259,124)(758,820) Payments to Suppliers (96,083)(1,744,523)(1,840,606) 1,021,541 2,914,747 3,936,288 Cash Flows from Noncapital Financing Activities Transfers In 519,749 180,233 699,982 Transfers (Out)(75,675)- (75,675) 444,074 180,233 624,307 Cash Flows from Capital and Related Financing Activities Purchase of Capital Assets (120,222)(1,184,305)(1,304,527) Debt Issuance 4,160,000 - 4,160,000 Debt Repayment (5,175,000)(1,597,287)(6,772,287) Interest Payments (238,517)(263,012)(501,529) (1,373,739)(3,044,604)(4,418,343) Cash Flows from Investing Activities Investment Income 3,139 (27,632)(24,493) Net Change in Cash and Cash Equivalents 95,015 22,744 117,759 Cash and Cash Equivalents - Beginning 661,498 3,198,351 3,859,849 Cash and Cash Equivalents - Ending 756,513 3,221,095 3,977,608 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities Operating Income 119,321 1,294,121 1,413,442 Adjustments to Reconcile Operating Income to Net Income to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization Expense 734,417 1,121,240 1,855,657 Connection Fees/Other Income 256,367 393,578 649,945 (Increase) Decrease in Current Assets (152,813)(136,794)(289,607) Increase (Decrease) in Current Liabilities 64,249 242,602 306,851 Net Cash Provided by Operating Activities 1,021,541 2,914,747 3,936,288 Noncash Capital and Related Financing Activities Capital Contributions 229,076 111,473 340,549 Business-Type Activities - Enterprise Sewer The notes to the financial statement are an integral part of this statement. 45 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Fiduciary Net Position April 30, 2022 Cash and Cash Equivalents $831,635 Investments U.S. Treasury Securities 3,506,849 U.S. Agency Securities 165,486 Corporate Bonds 946,135 Mutual Funds 5,433,015 Common Stocks 3,576,277 Accrued Interest 23,931 Total Assets 14,483,328 None - Net Position Restricted for Pensions 14,483,328 NET POSITION Trust Pension Police ASSETS LIABILITIES The notes to the financial statement are an integral part of this statement. 46 UNITED CITY OF YORKVILLE, ILLINOIS Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended April 30, 2022 Additions Contributions - Employer $1,334,771 Contributions - Plan Members 278,502 Total Contributions 1,613,273 Investment Income Interest Earned 453,072 Net Change in Fair Value (1,128,874) (675,802) Less Investment Expenses (55,339) Net Investment Income (731,141) Total Additions 882,132 Deductions Administration 19,334 Benefits and Refunds 955,800 Total Deductions 975,134 Change in Fiduciary Net Position (93,002) Net Position Restricted for Pensions Beginning 14,576,330 Ending 14,483,328 Police Trust Pension The notes to the financial statement are an integral part of this statement. 47 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The United City of Yorkville (City) is an Illinois unit of local government. The financial statements include all functions, programs and activities under control of the City Council. The City’s major operations include public safety, public works, library, parks and recreation, community development, water and sewer services, and general administration. The City Council has oversight responsibility for the City, the Public Library and the Park and Recreation Board. Oversight responsibility includes designation of management and all other control over operations of these entities. The government-wide financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant of the City’s accounting policies established in GAAP and used by the City are described below. REPORTING ENTITY The City’s financial reporting entity comprises the following: Primary Government: United City of Yorkville In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 61, “The Financial Reporting Omnibus - an Amendment of GASB Statements No. 14 and No. 34,” and includes all component units that have a significant operational or financial relationship with the City. Based upon the criteria set forth in the GASB Statement No. 61, there are no component units included in the reporting entity. Police Pension Employees Retirement System The City’s police employees participate in the Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the City’s Mayor, one elected pension beneficiary and two elected police employees constitute the pension board. The participants are required to contribute a percentage of salary as established by state statute and the City is obligated to fund all remaining PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the City is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it is legally separate from the City, the PPERS is reported as if it were part of the primary City because its sole purpose is to provide retirement benefits for the City’s police employees. The PPERS is reported as a pension trust fund. 48 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION Government-Wide Statements The City’s basic financial statements include both government-wide (reporting the City as a whole) and fund financial statements (reporting the City’s major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business-type. The City’s public safety, highway and street maintenance and reconstruction, building code enforcement, public improvements, economic development, parks and recreation, planning and zoning, and general administrative services are classified as governmental activities. The City’s sewer and water services are classified as business-type activities. In the government-wide Statement of Net Position, both the governmental and business-type activities columns are: (a) presented on a consolidated basis by column, and (b) reported on a full accrual, economic resource basis, which recognizes all long-term assets/deferred outflows and receivables as well as long- term debt/deferred inflows and obligations. The City’s net position is reported in three parts: net investment in capital assets; restricted; and unrestricted. The City first utilizes restricted resources to finance qualifying activities. The government-wide Statement of Activities reports both the gross and net cost of each of the City’s functions (general government, public safety, highways and streets, etc.) and business-type activities. 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 City as an entity and the change in the City’s net position resulting from the current year’s activities. Fund Financial Statements The financial transactions of the City are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that 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. 49 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 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 City electively added funds, as major funds, which either have debt outstanding or a specific community focus. The nonmajor funds are combined in a column in the fund financial statements. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; 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 City: Governmental Funds The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the City: General fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The General Fund is a major fund. Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City maintains nine special revenue funds. The Library Fund, a major fund, is used to account for the activity relating to the Yorkville Public Library. The primary revenue source for the Library Fund is property taxes. The Parks and Recreation Fund, also a major fund, is used to account for the revenues and expenditures associated with Yorkville’s Parks and Recreation departments. The primary revenue source for the Parks and Recreation Fund is charges for services. 50 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION – Continued Fund Financial Statements – Continued Governmental Funds – Continued Debt service funds are used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. The City maintains one debt service fund. Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The City maintains three capital projects funds. The Citywide Capital Fund, a major fund, is used to account for financial resources accumulated for maintenance of public infrastructure and to fund new capital improvements that benefit the public. The Buildings and Grounds Fund, also a major fund, is used to account for maintenance of existing and construction of new municipal owned buildings. Proprietary Funds The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. The following is a description of the proprietary funds of the City: Enterprise funds are required to account for operations for which a fee is charged to external users for goods or services and the activity 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 City maintains two enterprise funds. The Sewer Fund, a major fund, is used to account for the operation and sewer infrastructure maintenance of the City-owned sewer system, as well as the construction of new sewer systems within City limits. Revenues are generated through user maintenance fees. The Water Fund, also a major fund, is used to account for the operation and water infrastructure maintenance of the City-owned water distribution system, as well as the construction of new water systems. Revenues are generated through charges based on water consumption and user maintenance fees. Fiduciary Funds Fiduciary funds are used to report assets held in a trustee or custodial capacity by the City for others and therefore are not available to support City programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds. 51 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued BASIS OF PRESENTATION – Continued Fund Financial Statements – Continued Fiduciary Funds – Continued Pension trust funds are used to account for assets held in a trustee capacity by the City for pension benefit payments. The Police Pension Fund accounts for the accumulation of resources to pay pension costs. Resources are contributed by police force members at rates fixed by state statutes and by the government through an annual property tax levy. The City’s pension trust fund is presented in the fiduciary fund financial statements. Since by definition these assets are being held for the benefit of a third party (pension participants, etc.) and cannot be used to address activities or obligations of the City, these funds are not incorporated into the government-wide statements. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus 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. 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 and pension trust funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows and liabilities/deferred inflows (whether current or noncurrent) associated with their activities are reported. Proprietary and pension trust fund equity is classified as net position. 52 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued Basis of Accounting In the government-wide Statement of Net Position and Statement of Activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability/deferred inflow is incurred or economic asset used. Revenues, expenses, gains, losses, assets/deferred outflows, and liabilities/deferred inflows resulting from exchange and exchange-like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year-end. The City recognizes property taxes when they become both measurable and available in accordance with GASB Codification Section P70. A sixty-day availability is generally used for revenue recognition for all other governmental fund revenues. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are recognized when due. In applying the susceptible to accrual concept under the modified accrual basis, those revenues susceptible to accrual are property taxes, state and utility taxes, franchise taxes, interest revenue, charges for services, and fines and forfeits. All other revenues are not susceptible to accrual because generally they are not measurable until received in cash. All proprietary and pension trust 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 City’s enterprise funds are charges to customers for sales and services. 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. 53 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY Cash and Investments Cash and cash equivalents on the Statement of Net Position are considered to be cash on hand, demand deposits, and cash with fiscal agent. For the purpose of the proprietary funds “Statement of Cash Flows,” cash and cash equivalents are considered to be cash on hand, demand deposits, cash with fiscal agent, and all highly liquid investments with an original maturity of three months or less. Investments are generally reported at fair value. Short-term investments are reported at cost, which approximates fair value. For investments, the City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. 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. All other interfund transactions are treated as transfers. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Receivables In the government-wide financial statements, receivables consist of all revenues earned at year-end and not yet received. Major receivables balances for governmental activities include property taxes, state and utility taxes, franchise taxes, and grants. Business-type activities report utility charges as their major receivables. Assets Held for Others In June of 2004, the City entered into an intergovernmental agreement with Yorkville-Bristol Sanitary District for design and construction of the Rob Roy Creek Interceptor. At the date of completion, the Yorkville-Bristol Sanitary District owns and maintains the Interceptor. All costs associated with the construction of the infrastructure asset are recorded as Assets Held for Others in the City’s financial statements. As of April 30, 2022, the balance of this project was $11,091,000 reported in the Sewer Fund. In connection with this project, the City issued General Obligation Alternate Revenue Source Bonds of 2005D in the fiscal year 2006 for $11,300,000, which were refunded in 2008, 2011 and again in 2021. At April 30, 2022, the outstanding balance of the 2022 refunding bonds is $5,170,000. See Note 3 for more information on this long-term debt issue. 54 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued 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. Deferred Outflows/Inflows of Resources Deferred outflow/inflow of resources represents a consumption/acquisition of net assets that applies to a future period and therefore will not be recognized as an outflow of resources (expense)/inflow of resources (revenue) until that future time. Capital Assets Capital assets purchased or acquired with an original cost of $5,000 to $75,000, depending on asset class, (see chart on the following page) 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 City as a whole. Infrastructure such as streets, traffic signals and signs are capitalized. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by the governmental activities) the government chose to include all such items regardless of their acquisition date. The valuation basis for general capital assets are historical cost, or where historical cost is not available, estimated historical cost based on replacement costs. Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are capitalized at acquisition 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: 55 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued Capital Assets – Continued Estimated Useful Capital Asset Life Land $ 25,000 N/A Buildings 35,000 10 - 50 Years Equipment 5,000 5 - 75 Years Vehicles 5,000 5 - 15 Years Infrastructure - Street and Storm Sewer 50,000 10 - 75 Years Infrastructure - Water and Sewer 75,000 10 - 75 Years Capitalized Threshold Compensated Absences The City accrues accumulated unpaid vacation and associated employee-related costs when earned (or estimated to be earned) by the employee. In accordance with GASB Statement No. 16, no liability is recorded for nonvesting accumulation rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave that is estimated to be taken as “terminal leave” prior to retirement. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 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. 56 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued 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.” NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY BUDGETARY INFORMATION Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted for all funds. All annual appropriations lapse at fiscal year-end. During the year, several supplementary appropriations were necessary. The City follows these procedures in establishing the budgetary data reflected in the financial statements: • Prior to May 1, the Mayor submits to the City Council the proposed budget for the fiscal year commencing the following May 1. The operating budget includes proposed expenditures and the means of financing them. • Public hearings are conducted at the City offices to obtain taxpayer comments. • Prior to May 1, the budget is legally adopted by a vote of the City Council through passage of an ordinance. • The budget officer is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. 57 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY – Continued DEFICIT FUND BALANCE The following funds had deficit fund balance as of the date of this report: Fund Countryside TIF $ 1,182,815 Downtown TIF 1,639,928 Downtown TIF II 6,625 Deficit NOTE 3 – DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds except the pension trust fund. Each fund type's portion of this pool is displayed on the financial statements as "cash and investments.” In addition, investments are separately held by several of the City's funds. The deposits and investments of the pension trust fund are held separately from those of other funds. Permitted Deposits and Investments – Statutes authorize the City to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, obligations of States and their political subdivisions, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating services, the Illinois Funds, the Illinois Trust, and the Illinois Public Reserves Investment Management Trust. The deposits and investments of the Pension Fund are held separately from those of other City funds. Statutes authorize the Pension Fund to make deposits/invest in interest bearing direct obligations of the United States of America; obligations that are fully guaranteed or insured as to the payment of principal and interest by the United States of America; bonds, notes, debentures, or similar obligations of agencies of the United States of America; savings accounts or certificates of deposit issued by banks or savings and loan associations chartered by the United States of America or by the State of Illinois, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; credit unions, to the extent that the deposits are insured by the agencies or instrumentalities of the federal government; State of Illinois bonds; pooled accounts managed by the Illinois Funds Market Fund (Formerly known as IPTIP, Illinois Public Treasurer’s Investment Pool), or by banks, their subsidiaries or holding companies, in accordance with the laws of the State of Illinois; bonds or tax anticipation warrants of any county, township, or municipal corporation of the State of Illinois; direct obligations of the State of Israel; money market mutual funds managed by investment companies that are registered under the Federal Investment Company 58 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended management investment companies, provided the portfolio is limited to specified restrictions; general accounts of life insurance companies; and separate accounts of life insurance companies and mutual funds, the mutual funds must meet specific restrictions, provided the investment in separate accounts and mutual funds does not exceed ten percent of the Pension Fund’s plan net position; and corporate bonds managed through an investment advisor, rated as investment grade by one of the two largest rating services at the time of purchase. Pension Funds with plan net position of $2.5 million or more may invest up to forty-five percent of plan net position in separate accounts of life insurance companies and mutual funds. Pension Funds with plan net position of at least $5 million that have appointed an investment advisor, may through that investment advisor invest up to forty-five percent of the plan net position in common and preferred stocks that meet specific restrictions. In addition, pension funds with plan net position of at least $10 million that have appointed an investment advisor, may invest up to sixty-five percent of its net position in common and preferred stocks and mutual funds that meet specific restrictions effective July 1, 2012. 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. The Illinois Trust was established for the purpose of allowing various public agencies including, but not limited to, counties, townships, cities, towns, villages, school districts, housing authorities and public water supply districts, to jointly invest funds in accordance with the Laws of the State of Illinois. Participation in the Illinois Trust is voluntary. The Illinois Trust is not registered with the SEC as an Investment Company. Investments in the Illinois Trust are valued at the share price, the price for which the investment could be sold. The Illinois Public Reserves Investment Management Trust (IPRIME) is an investment opportunity and cash management service for Illinois Municipal Treasurers acting on behalf of counties, townships, cities, towns, villages, special road districts, public water supply districts, fire protection districts, drainage districts, levee districts, sewer districts, housing authorities, and all other political corporations or subdivisions of the State of Illinois. Participation in IPRIME is voluntary. IPRIME is not registered with the SEC as an Investment Company. Investments in IPRIME are valued at the share price, the price for which the investment could be sold. City Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits. At year-end, the carrying amount of the City’s deposits for governmental and business-type activities totaled $21,778,000 and the bank balances totaled $23,303,390. 59 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS – Continued City Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued Investments. The City has the following investment fair values and maturities: Less Than More Than Investment Type 1 1 to 5 6 to 10 10 U.S. Treasuries $2,909,596 994,228 1,915,368 - - Illinois Funds 4,545,768 4,545,768 - - - Illinois Trust 101,204 101,204 - - - I-PRIME 814,616 814,616 8,371,184 6,455,816 1,915,368 - - Investment Maturities (in Years) Fair Value At year-end, the City has the following recurring fair value measurements: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Investments by Fair Value Level (Level 1) (Level 2) (Level 3) Debt Securities U.S. Treasuries $ 2,909,596 2,909,596 - - Investments Measured at the Net Asset Value (NAV) Illinois Funds 4,545,768 Illinois Trust 101,204 I-PRIME 814,616 Total Investments at the (NAV)5,461,588 Total Investments Measured at Fair Value 8,371,184 Fair Value Measurements Using Total Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy states that a variety of financial instruments and maturities, properly balanced, will help to insure liquidity and reduce risk or interest rate volatility and loss of principal. The policy does not state specific limits in investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. 60 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS DEPOSITS AND INVESTMENTS – Continued City Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in management of their own affairs, no for speculation, but for investment, considering the safety of their capital, as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the ‘prudent person’ standard and shall be applied in the context of managing an overall portfolio. At year-end, the City’s investment in the Illinois Funds, the Illinois Trust, and I-PRIME are rated AAAm by Standard & Poor’s. Concentration Risk. This is the risk of loss attributed to the magnitude of the City’s investment in a single issuer. The City’s investment policy states that a variety of financial instruments and maturities, properly balanced, will help to insure liquidity and reduce risk or interest rate volatility and loss of principal. Diversifying instruments and maturities will avoid incurring unreasonable risks in the investment portfolio regarding specific security types, issuers or individual financial institutions. The City shall diversify to the best of its ability based on the type of funds invested and the cash flow needs of those funds. The City places no limit on the amount the City may invest in any one issuer. At year-end, the City 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) over 5 percent of the total cash and investment portfolio. Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City’s investment policy requires that all amounts in excess of any insurance limits be collateralized by approved securities or surety bonds issued by top-rated insurers, having a value of at least 110% of the deposits. Collateral is required as security whenever deposits exceed the insurance limits of the FDIC. Repurchase agreements must also be collateralized in the amount of 105% of the market value of principal and accrued interest. Collateral shall be held at an independent, third-party institution in the name of the City. The third-party institution shall comply with all qualifications and requirements as set forth in the Illinois Complied Statutes 30 ILCS 235/6. At year end, all deposits are collateralized. For an investment, this is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At year-end, the City’s investments in the Illinois Funds, the Illinois Trust, and I-PRIME are not subject to custodial credit risk. 61 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk Deposits. At year-end, the carrying amount of the Fund’s deposits totaled $831,635 and the bank balances totaled $832,857. Investments. At year-end, the Fund has the following investments and maturities: Less Than More Than Investment Type 1 1 to 5 6 to 10 10 U.S. Treasuries $3,506,849 660,976 2,519,943 325,930 - U.S. Agencies 165,486 155,629 692 - 9,165 Corporate Bonds 946,135 50,428 847,027 48,680 - 4,618,470 867,033 3,367,662 374,610 9,165 Investment Maturities (in Years) Fair Value Investments. At year-end, the Fund has the following recurring fair value measurements: Quoted Prices in Active Significant Markets for Other Significant Indentical Observable Unobservable Assets Inputs Inputs Investments by Fair Value Level (Level 1) (Level 2) (Level 3) Debt Securities U.S. Treasuries $ 3,506,849 3,506,849 - - U.S. Agencies 165,486 - 165,486 - Corporate Bonds 946,135 - 946,135 - Equity Securities Mutual Funds 5,433,015 5,433,015 - - Common Stock 3,576,277 3,576,277 - - Total Investments by Fair Value Level 13,627,762 12,516,141 1,111,621 - Total Fair Value Measurements Using 62 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Interest Rate Risk. The Fund’s investment policy states that the investment portfolio shall remain sufficiently liquid to enable the Fund to meet all operating requirements which may be reasonable anticipated. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Fund helps limit its exposure to credit risk by primarily investing in securities issued by the United States Government and/or its agencies that are implicitly guaranteed by the United States Government. The Pension Fund’s investment policy establishes criteria for allowable investments; those criteria follow the requirements of the Illinois Pension Code. The investments in the securities of U.S. Government Agencies obligations were all rated AA+ by Standard & Poor’s or by Moody’s Investors Services and Corporate Bonds were rated AA+ to BBB+ by Standard & Poor’s. Besides investing in securities issued by agencies of the United States Government, the Pension Fund’s investment policy for reducing credit risk is by the Board conducting its responsibilities with the care, skill and caution under the circumstances then prevailing which a prudent person acting in a like capacity and familiar with those matters would use the conduct of an activity of like character or purpose. Custodial Credit Risk. The Fund’s investment policy requires all deposits in excess of federally insured limits (other than bank managed money market mutual funds) to be no less than 110% of the fair market value and secured by some form of collateral. The Fund will accept (1) United States Treasury Bills, Notes or Bonds, or (2) United States Government Agency Notes or Bonds as authorized by the Public Funds Investment Act but excluding the government sponsored agencies prohibited by the Department of Insurance. At year-end, the entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance. Concentration Risk. This is the risk of loss attributed to the magnitude of the Pension Fund’s investment in a single issuer. The Funds investment policy states the Board should diversify investments to avoid incurring unreasonable risks from the practice of concentrating investments in specific security types and/or individual financial institutions. In addition to the securities and fair values previously listed, the Fund also has $5,433,015 invested in mutual funds and $3,576,277 invested in common stocks. At year-end, the Fund has over 5 percent of net plan assets available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments) invested in DWS RREEF Global Real Estate Securities Fund of $725,634. 63 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued DEPOSITS AND INVESTMENTS – Continued Police Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued The Fund’s investment policy in accordance with Illinois Compiled Statutes (ILCS) establishes the following target allocation across asset classes: Long-Term Expected Real Asset Class Target Rate of Return Fixed Income 55.00%7.50% Equities 44.00% 11.80% Cash and Cash Equivalents 1.00%4.20% Illinois Compiled Statutes (ILCS) limit the Fund’s investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The long-term expected rate of return on the Fund’s investments was determined using an asset allocation study conducted by the Fund’s investment management consultant in May 2022 in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation as of April 30, 2022 are listed in the table on previous page. For the year ended April 30, 2022, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (4.76%). The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. PROPERTY TAXES Property taxes for 2021 attach as an enforceable lien on January 1, 2022, on property values assessed as of the same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy Ordinance). Tax bills are prepared by the County and are payable in two installments, on or about June 1 and September 1. The County collects such taxes and remits them periodically. 64 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued CAPITAL ASSETS Governmental Activities Governmental capital asset activity for the year was as follows: Ending Increases Decreases Balances Nondepreciable Capital Assets Land $ 31,247,764 - - 31,247,764 Construction in Progress 3,350,036 6,691,123 2,211,321 7,829,838 34,597,800 6,691,123 2,211,321 39,077,602 Depreciable Capital Assets Buildings 15,690,311 - - 15,690,311 Equipment 9,187,313 218,709 40,857 9,365,165 Vehicles 3,170,064 377,757 171,804 3,376,017 Infrastructure 78,494,697 2,833,094 - 81,327,791 106,542,385 3,429,560 212,661 109,759,284 Less Accumulated Depreciation Buildings 5,077,023 323,619 - 5,400,642 Equipment 7,025,323 162,393 40,857 7,146,859 Vehicles 2,517,147 237,004 171,804 2,582,347 Infrastructure 26,047,470 2,190,643 - 28,238,113 40,666,963 2,913,659 212,661 43,367,961 Total Net Depreciable Capital Assets 65,875,422 515,901 - 66,391,323 Total Net Capital Assets 100,473,222 7,207,024 2,211,321 105,468,925 Beginning Balances Depreciation expense was charged to governmental activities as follows: General Government $ 115,579 Library 182,235 Parks and Recreation 137,871 Public Safety 125,759 Public Works 2,352,215 2,913,659 65 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued CAPITAL ASSETS – Continued Business-Type Activities Business-type capital asset activity for the year was as follows: Ending Increases Decreases Balances Nondepreciable Capital Assets Land $ 615,376 - - 615,376 Construction in Progress 2,973,283 1,260,744 - 4,234,027 3,588,659 1,260,744 - 4,849,403 Depreciable Capital Assets Equipment 19,166,497 43,783 - 19,210,280 Vehicles 618,559 - - 618,559 Infrastructure 69,792,390 340,549 - 70,132,939 89,577,446 384,332 - 89,961,778 Less Accumulated Depreciation Equipment 8,175,288 490,204 - 8,665,492 Vehicles 454,822 68,285 - 523,107 Infrastructure 14,353,907 1,285,380 - 15,639,287 22,984,017 1,843,869 - 24,827,886 Total Net Depreciable Capital Assets 66,593,429 (1,459,537)- 65,133,892 Total Net Capital Assets 70,182,088 (198,793)- 69,983,295 Beginning Balances Depreciation expense was charged to business-type activities as follows: Sewer $ 732,083 Water 1,111,786 1,843,869 66 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS 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 Amount General Nonmajor Governmental $2,829,423 Interfund Transfers Interfund transfers for the year consisted of the following: Transfers In Transfers Out Amount General Nonmajor Governmental $21,231 (1) Library General 24,809 (2) Parks and Recreation General 1,515,511 (2) Citywide Capital General 1,412,414 (1) Citywide Capital Buildings and Grounds 2,046,503 (1) Buildings and Grounds General 3,324,556 (2) Buildings and Grounds Nonmajor Governmental 384,824 (1) Sewer General 519,749 (1) Water Sewer 75,675 (1) Water Citywide Capital 104,558 (1) 9,429,830 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. The purpose of significant interfund transfers are as follows: • $1,515,511 to the Parks and Recreation Fund to subsidize operations. • $3,458,917 to the Citywide Capital Fund to fund the construction of future roadway projects and to reimburse the Fund for acquisition costs associated with the new City Hall property. • $3,324,556 to the Buildings and Grounds Fund to fund current and future City building projects and acquisitions. 67 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT Other Obligations Other Obligations currently outstanding are as follows: Fund Debt Ending Issue Retired by Issuances Retirements Balances Governmental Activities $1,890 - - 1,890 Balances Beginning Conover Sewer Recapture owed to John Conover as reimbursement for sewer extension, due in one lump sum payment of $1,890 in fiscal year 2023. Notes Payable The City enters into notes payable to provide funds for acquisition of capital assets. Notes payable have been issued for the governmental activities. Notes payable are direct obligations and pledge the full faith and credit of the City. Notes payable currently outstanding are as follows: Fund Debt Ending Issue Retired by Issuances Retirements Balances Downtown TIF $ 200,000 - 200,000 - Vehicle & Equipment 473,426 - 55,204 418,222 673,426 - 255,204 418,222 Beginning Balances 102 E Van Emmon Building Loan Payable of 2017, payable in annual installments equal to one-fourth of the amount borrowed which includes an annualized interet rate of 3.00% through June 1, 2021. Promissory Note of 2019, payable in monthly installments of $71,570, which includes interest at 3.60%, through November 18, 2028. 68 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Illinois Environmental Protection Agency (IEPA) Loans Payable The City has entered into loan agreements with the IEPA to provide low interest financing for sewer and water improvements. IEPA loans currently outstanding are as follows: Fund Debt Ending Issue Retired by Issuances Retirements Balances Water $ 638,766 - 109,742 529,024 IEPA (L17-1156300)Loan Payable of 2007, due in semi-annual installments of $28,263 to $61,744 including interest at 2.50% through August 9, 2026. Beginning Balances General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds issued for business-type activities are reported in the proprietary funds as they are expected to be repaid from proprietary revenues. General obligation bonds are direct obligations and pledge the full faith and credit of the City. General obligation bonds currently outstanding are as follows: Fund Debt Ending Issue Retired by Issuances Retirements Balances Library $ 350,000 - 75,000 275,000 General Obligation Library Bonds of 2006, due in annual installments of $50,000 to $100,000 plus interest at 4.75%to 4.80% through December 30, 2024. Beginning Balances 69 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued General Obligation Bonds – Continued Fund Debt Ending Issue Retired by Issuances Retirements Balances 4,105,000 * Sewer $ 5,025,000 - 920,000 - Library 2,750,000 - 645,000 2,105,000 Countryside TIF 1,235,000 - - 1,235,000 Citywide Capital 3,200,000 - 200,000 3,000,000 Debt Service 630,000 - 310,000 320,000 General Obligation Refunding Alternate Revenue Source Bonds of 2011, due in annual installments of $660,000 to $1,100,000 plus interest at 4.28% through December 30, 2025. General Obligation Refunding Alternate Revenue Source Bonds of 2014, due in annual installments of $230,000 to $270,000 plus interest at 4.00%to 4.30% through December 1, 2029. General Obligation Alternate Revenue Source Bonds of 2014A, due in annual installments of $135,000 to $300,000 plus interest at 3.00%to 4.00% through December 1, 2033. General Obligation Refunding Alternate Revenue Source Bonds of 2014B, due in annual installments of $255,000 to $320,000 plus interest at 2.00%to 3.00% through December 30, 2022. General Obligation Library Refunding Bonds of 2013, due in annual installments of $155,000 to $730,000 plus interest at 2.00%to 4.00% through December 30, 2024. Beginning Balances *Refunded 70 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued General Obligation Bonds – Continued Fund Debt Ending Issue Retired by Issuances Retirements Balances Water $ 545,000 - 135,000 410,000 Countryside TIF 1,153,522 - 112,455 1,041,067 Water 3,206,478 - 312,545 2,893,933 Water 1,955,000 - 1,040,000 915,000 Building and Grounds - 8,250,000 - 8,250,000 Building and Grounds - 1,010,000 - 1,010,000 Sewer - 4,160,000 - 4,160,000 20,050,000 13,420,000 7,855,000 25,615,000 General Obligation Alternate Revenue Source Bonds of 2015A, due in annual installments of $100,000 to $475,000 plus interest at 4.00% through December 1, 2034. General Obligation Refunding Alternate Revenue Source Bonds of 2014C, due in annual installments of $120,000 to $140,000 plus interest at 2.00%to 3.00% through December 30, 2024. General Obligation Refunding Alternate Revenue Source Bonds of 2016, due in annual installments of $430,000 to $1,475,000 plus interest at 4.00%to 4.25% through December 30, 2022. General Obligation Alternate Revenue Source Bonds of 2021, due in annual installments of $320,000 to $530,000 plus interest at 2.00%to 4.00% through December 1, 2040. General Obligation Refunding Alternate Revenue Source Bonds of 2022, due in annual installments of $1,270,000 to $1,320,000 plus interest at 1.142% through December 1, 2025. Beginning Balances 71 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued General Obligation Bonds – Continued Ending Activity Issuances Retirements Balances Governmental $9,318,522 9,260,000 1,342,455 17,236,067 Business-Type 10,731,478 4,160,000 6,512,545 8,378,933 20,050,000 13,420,000 7,855,000 25,615,000 Beginning Balances Debt Certificates The City issues debt certificates to provide funds for the acquisition and construction of major capital facilities. Debt certificates have been issued for both governmental and business-type activities. Debt Certificates issued for business-type activities are reported in the proprietary funds as they are expected to be repaid from proprietary revenues. Debt certificates currently outstanding are as follows: Fund Debt Ending Issue Retired by Issuances Retirements Balances Sewer $305,000 - 150,000 155,000 Beginning Balances Illinois Rural Bond Bank Debt Certificates of 2003A, due in annual installments of $80,000 to $155,000 plus interest at 1.60%to 5.20% through February 1, 2023. Asset Retirement Obligation The City has recognized an asset retirement obligation (ARO) and related deferred outflow of resources in connection with its obligation to seal and abandon various water wells and for the demolition of the City’s underground storage tanks at the end of their estimated useful lives in accordance with federal, state, and/or local requirements. The ARO was measured using actual historical costs for similar abandonments, adjusted for inflation through the end of the year. The estimated remaining useful lives of the water wells and underground storage ranges between 49 and 84 years. 72 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Long-Term Liability Activity Changes in long-term liabilities during the fiscal year were as follows: Amounts Ending Due within Additions Deductions Balances One Year Governmental Activities Compensated Absences $ 683,943 15,130 7,565 691,508 138,302 Net Pension Liability - Police Pension 10,450,027 2,108,609 - 12,558,636 - Total OPEB Liability - RBP 1,069,813 - 110,648 959,165 - Other Obligations 1,890 - - 1,890 - Notes Payable 673,426 - 255,204 418,222 57,253 General Obligation Bonds 9,318,522 9,260,000 1,342,455 17,236,067 1,966,424 Plus: Unamortized Premium 88,036 525,011 67,984 545,063 - 22,285,657 11,908,750 1,783,856 32,410,551 2,161,979 Business-Type Activities Compensated Absences $ 114,633 17,464 8,732 123,365 54,716 Total OPEB Liability - RBP 161,667 - 18,345 143,322 - IEPA Loans Payable 638,766 - 109,742 529,024 112,503 General Obligation Bonds 10,731,478 4,160,000 6,512,545 8,378,933 2,393,576 Plus: Unamortized Premium 109,633 - 33,401 76,232 - Debt Certificates 305,000 - 150,000 155,000 155,000 Developer Agreements 2,386,097 119,305 - 2,505,402 - Asset Retirement Obligation 2,783,000 - - 2,783,000 - 17,230,274 4,296,769 6,832,765 14,694,278 2,715,795 Beginning Type of Debt Balances For the governmental activities, the compensated absences, the net pension liabilities, and the total OPEB liability are generally liquidated by the General Fund. The Vehicle and Equipment Funds make payment on the notes payable. General obligation bonds are being liquidated by the Library, Countryside TIF, Citywide Capital, Buildings and Grounds, and Debt Service Funds. For the business-type activities, the Sewer and Water Funds liquidate compensated absences, the net pension liability, and the total OPEB liability. The Sewer and Water Funds are making payments on the IEPA loans payable, general obligation bonds, debt certificates and developer agreements. 73 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Non-Commitment Debt Special service area bonds outstanding as of the date of this report totaled $51,491,968, Kendall Marketplace business district bonds totaled $6,665,000 and Kendall Marketplace sales tax bonds totaled $5,165,000. These bonds are not an obligation of the government and are secured by the levy of an annual tax on the real property within the special service area, business district taxes, and sales taxes, respectively. The government is in no way liable for repayment but is only acting as agent for the property owners in levying/assessing and collecting the tax, and forwarding the collections to bondholders. Debt Service Requirements to Maturity The annual debt service requirements to maturity, including principal and interest, are as follows: Interest Interest $ 57,253 14,317 1,966,424 543,854 59,347 12,223 1,711,716 477,272 61,581 9,989 1,775,685 417,298 63,867 7,703 1,126,889 354,959 66,237 5,333 898,212 319,421 68,691 2,879 940,858 285,506 41,246 504 973,504 247,750 - - 1,021,150 208,427 - - 778,796 166,771 - - 796,442 144,319 - - 819,088 121,361 - - 841,734 97,697 - - 555,569 73,328 - - 480,000 60,600 - - 490,000 51,000 - - 500,000 41,200 - - 510,000 31,200 - - 520,000 21,000 - - 530,000 10,600 Total 418,222 52,948 17,236,067 3,673,563 2033 2034 2035 Year 2030 2029 2031 2028 2032 2023 2024 2025 2026 2027 General Obligation Bonds Principal Notes Payable Principal Governmental Activities Fiscal 2036 2037 2038 2039 2041 2040 74 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Debt Service Requirements to Maturity – Continued Interest Interest Interest $ 112,503 12,527 2,393,576 202,218 155,000 8,060 115,333 9,697 1,508,284 146,918 - - 118,235 6,795 1,529,315 117,424 - - 121,209 3,821 1,223,111 87,467 - - 61,744 772 161,788 68,981 - - - - 169,142 62,509 - - - - 176,496 55,743 - - - - 183,850 48,683 - - - - 191,204 41,329 - - - - 198,558 33,681 - - - - 205,912 25,739 - - - - 213,266 17,503 - - - - 224,431 8,972 - - Total 529,024 33,612 8,378,933 917,167 155,000 8,060 2034 2035 2029 2030 2031 2032 2033 2028 2023 2024 2025 2026 2027 Year Principal Principal Principal IEPA General Obligation Debt Loan Payable Bonds CertificatesFiscal Business-Type Activities Legal Debt Margin Chapter 65, Section 5/8-5-1 of the Illinois Compiled Statutes provides, “…no municipality having a population of less than 500,000 shall become indebted in any manner or for any purpose, to an amount, including existing indebtedness in the aggregate exceeding 8.625% on the value of the taxable property therein, to be ascertained by the last assessment for state and county purposes, previous to the incurring of the indebtedness or, until January 1, 1983, if greater, the sum that is produced by multiplying the municipality’s 1978 equalized assessed valuation by the debt limitation percentage in effect on January 1, 1979.” Assessed Valuation - 2021 $ 623,597,568 Legal Debt Limit - 8.625% of Assessed Value 53,785,290 Amount of Debt Applicable to Limit General Obligation Bonds 2,535,000 Legal Debt Margin 51,250,290 75 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued LONG-TERM DEBT – Continued Defeased Debt On January 6, 2022, the City issued $4,160,000 par value General Obligation Refunding Alternative Revenue Source Bonds, Series of 2022 to refund $4,105,000 of the General Obligation Refunding Alternate Revenue Source Bonds, Series of 2011. The City 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 City reduced its total debt service by $275,353 and obtained an economic gain of $266,090. NET POSITION CLASSIFICATIONS Net investment in capital assets was comprised of the following as of year-end: Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 105,468,925 Plus: Unspent Bond Proceeds 6,618,399 Less Capital Related Debt: Notes Payable of 2019 (418,222) General Obligation Library Bonds of 2006 (275,000) General Obligation Library Refunding Bonds of 2013 (2,105,000) General Obligation Refunding Alternate Revenue Source Bonds of 2014 (1,235,000) General Obligation Refunding Alternate Revenue Source Bonds of 2014A (3,000,000) General Obligation Refunding Alternate Revenue Source Bonds of 2014B (320,000) General Obligation Alternate Revenue Source Bonds of 2015A (1,041,067) General Obligation Alternate Revenue Source Bonds of 2021 (8,250,000) General Obligation Refunding Alternate Revenue Source Bonds of 2022 (1,010,000) Loss on Refunding 43,246 Premium on Debt Issuance (545,063) Net Investment in Capital Assets 93,931,218 76 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued NET POSITION CLASSIFICATIONS – Continued Business-Type Activities Capital Assets - Net of Accumulated Depreciation $ 69,983,295 Less Capital Related Debt: IEPA (L17-1156300) Loan Payable of 2007 (529,024) General Obligation Refunding Alternate Revenue Source Bonds of 2014C (410,000) General Obligation Alternate Revenue Source Bonds of 2015A (2,893,933) General Obligation Alternate Revenue Source Bonds of 2016 (915,000) General Obligation Refunding Alternate Revenue Source Bonds of 2022 (4,160,000) Illinois Rural Bond Bank Debt Certificates of 2003 (155,000) Loss on Refunding 4,269 Premium on Debt Issuance (76,232) Net Investment in Capital Assets 60,848,375 FUND BALANCE CLASSIFICATIONS In the governmental funds’ financial statements, the City considers restricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. The City first utilizes committed, then assigned and then unassigned fund balance when an expenditure is incurred for purposes for which all three unrestricted fund balances are available. Nonspendable Fund Balance. Consists of resources that cannot be spent because they are either: a) not in a spendable form; or b) legally or contractually required to be maintained intact. Restricted Fund Balance. Consists of resources that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance. Consists of resources constrained (issuance of an ordinance) to specific purposes by the government itself, using its highest level of decision-making authority, Members of the City Council; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint. Assigned Fund Balance. Consists of amounts that are constrained by Members of the City Council’s intent to be used for specific purposes but are neither restricted nor committed. Intent is expressed by a) Members of the City Council itself or b) a body or official to which Members of the City Council has delegated the authority to assign amounts to be used for specific purposes. The City’s highest level of decision-making authority is Members of the City Council, who is authorized to assign amounts to a specific purpose. 77 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued FUND BALANCE CLASSIFICATIONS – Continued Unassigned Fund Balance. Consists of residual net resources of a fund that has not been restricted, committed, or assigned within the General Fund and deficit fund balances of other governmental funds. Minimum Fund Balance Policy. The City’s policy states that the General fund should maintain a minimum unrestricted fund balance of no less than 30% of the annual appropriations budget. The following is a schedule of fund balance classifications for the governmental funds as of the date of this report: Parks and Citywide Buildings and Library Recreation Capital Grounds Nonmajor Totals Fund Balances Nonspendable Prepaids $ 162,600 9,869 41,876 - - - 214,345 Restricted Library Operations - 913,690 - - - - 913,690 Motor Fuel Tax - - - - - 269,412 269,412 Special Service Areas - - - - - 23,962 23,962 Land Cash - - - - - 33,843 33,843 Capital Projects - Bond Proceeds - - - - 6,618,399 - 6,618,399 - 913,690 - - 6,618,399 327,217 7,859,306 Assigned Capital Projects - - - 2,165,601 3,383,858 1,391,622 6,941,081 Unassigned 10,464,500 - (41,876)- - (2,829,368) 7,593,256 Total Fund Balances 10,627,100 923,559 - 2,165,601 10,002,257 (1,110,529) 22,607,988 General Special Revenue Capital Projects NOTE 4 – OTHER INFORMATION RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and injuries to the City’s employees. The City has purchased insurance from private insurance companies. Risks covered included certain types of liabilities and bonds. 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. 78 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued CONTINGENT LIABILITIES Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the City. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. COMMITMENTS Agreements with Developers – Governmental Activities Under a Development/Economic Initiative Agreement entered into in March of 2001, the City agreed to reimburse eligible costs associated with a development located at Route 47 and Route 34. Eligible costs of $2,074,833 and accrued interest at 5% are to be reimbursed from 50% of the sales tax generated in the development, limited to a period of eighteen years. Through April 30, 2022, the City has reimbursed $3,221,659 including $136,750 in the current year. All payments have been recorded as an expenditure of the General Fund. As of April 30, 2022, the incentive agreement was paid in full. Under a Development and Annexation Agreement entered into in July of 2000, amended in October of 2001, the City agreed to reimburse eligible costs associated with a development located at Route 47 and Kennedy Road. Eligible costs of $5,977,027 are to be reimbursed from 50% of the sales tax generated in the development. Through April 30, 2022, the City has reimbursed $3,694,649, including $308,810 in the current year. All payments have been recorded as an expenditure of the General Fund. 79 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued COMMITMENTS – Continued Agreements with Developers – Governmental Activities – Continued Under an Annexation Agreement entered into in April of 2006, the City agreed to reimburse eligible costs associated with a development located at Route 47 between Base Line Road and Corneils Road. Eligible costs are to be reimbursed from 55% of City Admissions Taxes collected, limited to a period of ten years. Through April 30, 2022, the City has reimbursed $1,530,631, including $148,663 in the current year. All payments have been recorded as an expenditure of the General Fund. The agreement was amended in April of 2019 to rebate 100% of admissions tax received by the City from the developer for a period of twenty years, until September 2026, and the admissions tax rate was decreased from 5% to 2.75%. The 100% rebate went into effect beginning with the 2013 fiscal year. Under a Development/Economic Initiative Agreement entered into in January of 2007, the City agreed to reimburse eligible costs associated with a development located at Route 47 and Corneils Road. Eligible costs of $287,392 are to be reimbursed from 50% of the sales tax generated in the development, limited to a period of twenty years. Through April 30, 2022, the City has reimbursed $23,404, including $0 in the current year. All payments have been recorded as an expenditure of the General Fund. Under a Development Agreement entered into in June of 2007, the City agreed to create a business district in the area around Route 34 and Cannonball Trail. Under the agreement, 50% of sales tax and 100% of the business district tax generated in the district are remitted by the City to an escrow agent to pay the debt service on the Special Service Area Revenue Bonds of 2007. The bonds are secured solely by the pledged revenues and are not obligations of the City and are therefore not recorded on the City’s books. All payments have been recorded as an expenditure of the General Fund. Expenditures in the current year were $691,180 for sales taxes and $435,946 in business district taxes. In February of 2011, the City amended a Development/Economic Initiative Agreement dated April 2007. Under the original agreement, the City agreed to reimburse 20% of eligible costs associated with a development located at Route 47 and Fountainview Drive from 50% of the sales tax generated in the development, limited to a period of twenty years. Under the amended agreement, the City will hold the sales tax rebates in an escrow account until certain land improvements has been completed. Through April 30, 2022, the City is holding $25,258 in escrow, including $2,467 in the current year. All payments have been recorded as an expenditure of the General Fund. Under a Development/Economic Initiative Agreement entered into on December 22, 2011 the City agreed to reimburse eligible costs associated with a development located west of Route 47 and north of Cannonball Trail on Boombah Boulevard. Through April 30, 2022, the City has reimbursed $93,383, including $9,531 in the current year. All payments have been recorded as an expenditure of the General Fund. As of April 30, 2022 the inventive agreement was paid in full. 80 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued COMMITMENTS – Continued Agreements with Developers – Governmental Activities – Continued Under development agreements entered into in April 2012, the City agreed to reimburse eligible costs associated with a development located at within the Downtown TIF district. Eligible costs are to be reimbursed from 85% of the incremental property tax and 100% of the business district tax generated in the development, through December 31, 2029. Through April 30, 2022, the City has reimbursed $198,541 in incremental property taxes and $214,117 in business district taxes. Incremental property tax payments have been recorded as an expenditure of the Downtown TIF Fund and the Business District Tax Rebates have been recorded as an expenditure of the General Fund. Under a development agreement entered into in May 2013, the City agreed to reimburse eligible costs associated with a development located at Route 34 and Route 47 in the Countryside TIF district. Eligible costs are to be reimbursed from 50% of the amusement tax and 100% of the business district tax generated in the development, limited to a period of 10 years. Through April 30, 2022, the City has reimbursed $327,175 in amusement taxes and $94,044 in business district taxes. For the current year, amusement tax rebate expenditures of $25,564 and business district rebate expenditures of $56,211 were recorded in the General Fund. Under a Development/Economic Initiative Agreement entered into in March of 2016, the City agreed to reimburse eligible costs associated with a development located within the Fountainview Subdivision. Eligible costs of $63,350 are to be reimbursed from 50% of the sales tax generated in the development, limited to a period of ten years. Through April 30, 2022, the City has reimbursed $22,526, including $6,730 in the current year. All payments have been recorded as an expenditure of the General Fund. Under a Development/Economic Initiative Agreement entered into in April of 2019, the City agreed to accept all previously constructed public improvements and complete all remaining infrastructure improvements in the Raintree Subdivision Special Service Area, as stipulated in the agreement. The Developer has acquired certain vacant lots within the Raintree Subdivision, and has further agreed to pay certain impact fees and other contributions towards the City at agreed upon timeframes and complete construction on certain dwelling units. As of April 30, 2022, the City has incurred $93,014 in expenditures, which have been fully reimbursed by the developer. Under a development agreement entered into in August 2019, the City agreed to reimburse eligible costs associated with the renovation of the historic Kendall County jail. Eligible costs are to be reimbursed from incremental property taxes through 2034. Through April 30, 2022, the City has reimbursed $137,784 in renovation costs, which are recorded as an expenditure of the Downtown TIF II Fund. 81 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued COMMITMENTS – Continued Agreements with Developers – Business-Type Activities Under a reimbursement agreement entered into in August of 2003, the City and the developer of the Fox Hill subdivision agreed to reimburse eligible costs associated with the construction and over-sizing of water and sewer infrastructure lines within the area. Eligible costs are to be paid to the developer within twenty years of the agreement. This agreement was amended in April 2006 to include additional costs. Total eligible costs were $807,847, which accrues compounded interest of 5% annually. Interest for a portion of eligible costs was computed back to January 1, 1995. Total interest to date is $1,458,945. The amount recorded as a liability, including interest, as of April 30, 2022 is $2,505,402. Of this amount, 52% is recorded in the Water Fund. The remaining 48% of this amount is recorded in the Sewer Fund. Hotel/Motel Tax Rebates All hotels and motels located within the City limits are required to pay a tax of 3% based on the gross rental receipts from the renting, leasing or letting of a hotel or motel room. Proceeds from the hotel/motel tax are remitted to the Aurora Area Convention & Visitors Bureau (AACVB) for the purposes of promoting tourism and conventions within Yorkville, pursuant to State Statute. The City has recorded $124,574 in rebates in the General Fund for the fiscal year ended April 30, 2022. EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS The City contributes to two defined benefit pension plans, the Illinois Municipal Retirement Fund, a defined benefit agent multiple-employer public employee retirement system and the Police Pension Plan which is a single-employer pension plan. A separate report is issued for the Police Pension Plan and may be obtained by writing to the City at 804 Game Farm Road, Yorkville, Illinois 60560. IMRF does issue a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole, but not by individual employer. That report may be obtained on-line at www.imrf.org. The benefit, benefit levels, employee contributions, and employer contributions are governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly. The aggregate amounts recognized for the two pension plans is: Pension Deferred Deferred Expense Outflows Inflows (Revenue) IMRF $ (1,858,664) 384,279 2,180,932 (259,617) Police Pension 12,558,636 1,587,776 955,035 1,182,173 10,699,972 1,972,055 3,135,967 922,556 (Asset) Liability/ Net Pension 82 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement (IMRF) Plan Descriptions Plan Administration. All employees (other than those covered by the Police Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. The plan is accounted for on the economic resources’ measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date). IMRF provides two tiers of pension benefits. Employees hired before January 1, 2011, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: • 3% of the original pension amount • or 1/2 of the increase in the Consumer Price Index of the original pension amount. 83 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement (IMRF) – Continued Plan Descriptions – Continued Plan Membership. As of December 31, 2021, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 49 Inactive Plan Members Entitled to but not yet Receiving Benefits 52 Active Plan Members 58 Total 159 Contributions. As set by statute, the City’s Regular Plan Members are required to contribute 4.5% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. For the year-ended April 30, 2022, the City’s contribution was 10.37% of covered payroll. Net Pension Liability/(Asset). The City’s net pension liability/(asset) was measured as of December 31, 2021. 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, 2021, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.25% Salary Increases 2.85% to 13.75% Cost of Living Adjustments 3.25% Inflation 2.25% 84 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement (IMRF) – Continued Plan Descriptions – Continued Actuarial Assumptions – Continued. For nondisabled retirees, the Pub-2010, Amount-Weighted, below- median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP-2020. For disabled retirees, the Pub-2010, Amount- Weighted, below-median income, General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020. For active members, the Pub-2010, Amount-Weighted, below-median income, General, Employee, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-Term Expected Real Target Rate of Return Fixed Income 25.00% (0.60%) Domestic Equities 39.00%1.90% International Equities 15.00%3.15% Real Estate 10.00%3.30% Blended 10.00% 1.70% - 5.50% Cash and Cash Equivalents 1.00%(0.90%) Asset Class Discount Rate The discount rate used to measure the total pension liability was 7.25%, same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all project future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. 85 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement (IMRF) – Continued Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the City calculated using the discount rate as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Current Discount Rate 1% Increase (7.25%) (8.25%) Net Pension Liability/(Asset)$ 751,724 (1,858,664) (3,835,568) 1% Decrease (6.25%) Changes in the Net Pension Liability/(Asset) Plan Fiduciary Net Pension Net Position (Asset) (B) (A) - (B) Balances at December 31, 2020 $ 15,868,790 16,180,592 (311,802) Changes for the Year: Service Cost 376,700 - 376,700 Interest on the Total Pension Liability 1,136,979 - 1,136,979 Difference Between Expected and Actual Experience of the Total Pension Liability 189,246 - 189,246 Changes of Assumptions - - - Contributions - Employer - 443,761 (443,761) Contributions - Employees - 188,122 (188,122) Net Investment Income - 2,628,659 (2,628,659) Benefit Payments, including Refunds of Employee Contributions (749,354) (749,354)- Other (Net Transfer)- (10,755) 10,755 Net Changes 953,571 2,500,433 (1,546,862) Balances at December 31, 2021 16,822,361 18,681,025 (1,858,664) Total (A) Pension Liability 86 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement (IMRF) – Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended April 30, 2022, the City recognized pension revenue of $259,617. At April 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Inflows of Resources Totals Difference Between Expected and Actual Experience $ 226,110 (36,691) 189,419 Change in Assumptions 23,888 (179,397) (155,509) Net Difference Between Projected and Actual Earnings on Pension Plan Investments - (1,964,844) (1,964,844) Total Expenses to be Recognized in Future Periods 249,998 (2,180,932) (1,930,934) Pension Contributions Made Subsequent to the Measurement Date 134,281 - 134,281 Total Deferred Amounts Related to IMRF 384,279 (2,180,932) (1,796,653) Deferred Outflows of Resources The $134,281 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, 2023. 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: Fiscal Year of Resources 2023 $ (395,205) 2024 (795,588) 2025 (460,353) 2026 (279,788) 2027 - Thereafter - Total (1,930,934) (Inflows) Net Deferred 87 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan Plan Descriptions Plan Administration. The Police Pension Plan is a single-employer defined benefit pension plan that covers all sworn police personnel. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The City accounts for the Fund as a pension trust fund. The Fund is governed by a five-member pension board. Two members of the Board are appointed by the City Mayor, one member is elected by pension beneficiaries and two members are elected by active police employees. Plan Membership. At April 30, 2022, the measurement date, membership consisted of the following: Inactive Plan Members Currently Receiving Benefits 13 Inactive Plan Members Entitled to but not yet Receiving Benefits 9 Active Plan Members 30 Total 52 Benefits Provided. The following is a summary of the Police Pension Plan as provided for in Illinois State Statutes. The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of ½ of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually thereafter. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the police officer during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Police officer salary for the pension purposes is capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., ½ percent for each month under 55). 88 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan – Continued Plan Descriptions – Continued Benefits Provided – Continued. The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1st after the police officer retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 percent of ½ of the change in the Consumer Price Index for the proceeding calendar year. Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The City is required to contribute the remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the City to contribute a minimum amount annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past service cost by the year 2040. For the year-ended April 30, 2022, the City’s contribution was 49.54% of covered payroll. Concentrations. At year-end, the Fund has over 5 percent of net plan assets available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments) invested in DWS RREEF Global Real Estate Securities Fund of $725,634. Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed, as of April 30, 2022, using the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal Asset Valuation Method Fair Value Actuarial Assumptions Interest Rate 7.00% Salary Increases 5.00% Cost of Living Adjustments 2.50% Inflation 2.50% 89 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan – Continued Actuarial Assumptions – Continued Mortality rates were based on the PubS-2010 base rates projected to 2022 with scale MP2021. Discount Rate The discount rate used to measure the total pension liability was 7.00%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all project future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the City calculated using the discount rate as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Current Discount Rate 1% Increase (7.00%) (8.00%) Net Pension Liability $16,999,917 12,558,636 8,984,655 (6.00%) 1% Decrease 90 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan – Continued Changes in the Net Pension Liability Plan Fiduciary Net Pension Net Position Liability (B) (A) - (B) Balances at April 30, 2021 $ 25,026,357 14,576,330 10,450,027 Changes for the Year: Service Cost 726,664 - 726,664 Interest on the Total Pension Liability 1,715,607 - 1,715,607 Changes of Benefit Terms - - - Difference Between Expected and Actual Experience of the Total Pension Liability 278,036 - 278,036 Changes of Assumptions 270,434 - 270,434 Contributions - Employer - 1,334,771 (1,334,771) Contributions - Employees - 278,502 (278,502) Net Investment Income - (731,141) 731,141 Benefit Payments, including Refunds of Employee Contributions (955,800) (955,800)- Administrative Expense (19,334) (19,334)- Net Changes 2,015,607 (93,002) 2,108,609 Balances at April 30, 2022 27,041,964 14,483,328 12,558,636 Total (A) Pension Liability Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended April 30, 2022, the City recognized pension expense of $1,182,173. At April 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 91 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Police Pension Plan – Continued Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions – Continued Deferred Inflows of Resources Totals Difference Between Expected and Actual Experience $ 473,122 (674,002) (200,880) Change in Assumptions 773,107 (281,033) 492,074 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 341,547 - 341,547 Total Deferred Amounts Related to Police Pension 1,587,776 (955,035) 632,741 Deferred Outflows of Resources Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows: Net Deferred Fiscal Outflows/(Inflows) Year of Resources 2023 $35,551 2024 54,666 2025 (98,757) 2026 407,562 2027 101,113 Thereafter 132,606 Total 632,741 OTHER POST-EMPLOYMENT BENEFITS General Information about the OPEB Plan Plan Description. The City’s defined benefit OPEB plan, Retiree Benefits Plan (RBP), provides OPEB for all permanent full-time general and public safety employees of the City. RBP is a single-employer defined benefit OPEB plan administered by the City. Article 11 of the State Compiled Statutes grants the authority to establish and amend the benefit terms and financing requirements to the City Board. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. 92 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS – Continued General Information about the OPEB Plan – Continued Benefits Provided. RBP provides coverage under the City of Yorkville group health program by contributing the monthly premium to retirees and their dependents. Plan Membership. As of April 30, 2022, the measurement date, the following employees were covered by the benefit terms: Inactive Plan Members Currently Receiving Benefits 11 Inactive Plan Members Entitled to but not yet Receiving Benefits - Active Plan Members 83 Total 94 Total OPEB Liability The City’s total OPEB liability was measured as of April 30, 2022 and was determined by an actuarial valuation as of April 30, 2021. Actuarial Assumptions and Other Inputs. The total OPEB liability in the April 30, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 3.50% Salary Increases 3.50% Discount Rate 3.42% Healthcare Cost Trend Rates Retirees' Share of Benefit-Related Costs 7.0% for 2021,decreasing 0.25% per year to an ultimate rate of 4.0% for 2031 and later 100% of projected health insurance premiums for retirees The discount rate was based upon the expected rate of return associated with funded benefits, and unfunded benefits, the 20-year municipal bond rate. Mortality rates were based on the RP-2014 Blue Collar base rates projected to 2021 using scale MP-2020 for Police. For all others, the RP-2014 base rates projected to 2021 using scale MP-2020 was used. 93 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS – Continued Change in the Total OPEB Liability Balance at April 30, 2021 $ 1,231,480 Changes for the Year: Service Cost 63,305 Interest on the Total Pension Liability 24,995 Changes of Benefit Terms - Difference Between Expected and Actual Experience - Changes of Assumptions or Other Inputs (112,346) Benefit Payments (104,947) Net Changes (128,993) Balance at April 30, 2022 1,102,487 Total Total OPEB Liability Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The discount rate used to measure the total pension liability was 3.42%, while the prior valuation used 2.12%. The following presents the total OPEB liability, calculated using the discount rate, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher: Current Discount Rate 1% Increase (3.42%) (4.42%) Total OPEB Liability $ 1,186,171 1,102,487 1,024,187 1% Decrease (2.42%) Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability, calculated using varied Healthcare Trend Rates, 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: 94 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS – Continued Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates – Continued Healthcare Cost Trend Rates (7.00% (8.00% Decreasing to Decreasing to 4.00%) 5.00%) Total OPEB Liability $ 998,471 1,102,487 1,224,236 3.00%) (6.00% Decreasing to OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended April 30, 2022, the City recognized OPEB expense of $98,679. At April 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Inflows of Resources Totals Difference Between Expected and Actual Experience $ 287,863 - 287,863 Change in Assumptions 67,103 (225,351) (158,248) Net Difference Between Projected and Actual Earnings on Pension Plan Investments - - - Total Deferred Amounts Related to OPEB 354,966 (225,351) 129,615 Deferred Outflows of Resources Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: 95 UNITED CITY OF YORKVILLE, ILLINOIS Notes to the Financial Statements April 30, 2022 NOTE 4 – OTHER INFORMATION – Continued OTHER POST-EMPLOYMENT BENEFITS – Continued OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB – Continued Net Deferred Fiscal Outflows Year of Resources 2023 $ 10,379 2024 10,379 2025 10,379 2026 10,379 2027 10,379 Thereafter 77,720 Total 129,615 SUBSEQUENT EVENTS American Rescue Plan Act of 2021 On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law. This act provides $350 billion in funding for local governments. The City has been allocated $2,805,113 to be received in two installments. On August 13, 2021 the City received their first installment of $1,402,557. On September 16th, 2022, the City received their final installment for $1,402,556. 96 • Schedule of Employer Contributions Illinois Municipal Retirement Fund Police Pension Fund • Schedule of Changes in the Employer’s Net Pension Liability Illinois Municipal Retirement Fund Police Pension Fund • Schedule of Investment Returns Police Pension Fund • Schedule of Changes in the Employer's Total OPEB Liability Retiree Benefit Plan • Budgetary Comparison Schedule General Fund Library – Special Revenue Fund Parks and Recreation – Special Revenue Fund Notes to the Required Supplementary Information REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information includes financial information and disclosures that are required by the GASB but are not considered a part of the basic financial statements. Such information includes: Budgetary Information –Budgets are adopted on a basis consistent with generally accepted accounting principles. 97 UNITED CITY OF YORKVILLE, ILLINOIS Illinois Municipal Retirement Fund Required Supplementary Information Schedule of Employer Contributions April 30, 2022 Contributions as Fiscal a Percentage of Year Covered Payroll 2016 $311,346 $311,346 $- $2,853,781 10.91% 2017 308,134 308,134 - 2,898,722 10.63% 2018 344,487 344,487 - 3,217,682 10.71% 2019 350,666 350,666 - 3,506,685 10.00% 2020 365,540 365,540 - 3,665,848 9.97% 2021 440,315 440,315 - 4,060,573 10.84% 2022 428,230 428,230 - 4,128,183 10.37% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 22 Years Asset Valuation Method 5-Year Smoothed Fair Value Inflation 2.50% Salary Increases 3.35% - 14.25% Investment Rate of Return 7.50% Retirement Age See the Notes to the Financial Statements Mortality Note: IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. Contributions Contribution Determined Actuarially Covered Payroll(Deficiency) Excess/ Contribution Contribution Determined the Actuarially in Relation to 98 UNITED CITY OF YORKVILLE, ILLINOIS Police Pension Fund Required Supplementary Information Schedule of Employer Contributions April 30, 2022 Contributions as Fiscal a Percentage of Year Covered Payroll 2015 $571,437 $624,168 $52,731 $2,220,146 28.11% 2016 722,940 722,940 - 2,294,948 31.50% 2017 825,413 825,413 - 2,320,642 35.57% 2018 966,211 966,211 - 2,543,266 37.99% 2019 963,361 963,361 - 2,449,210 39.33% 2020 1,111,484 1,111,484 - 2,631,165 42.24% 2021 1,226,371 1,230,604 4,233 2,744,017 44.85% 2022 1,334,771 1,334,771 - 2,694,486 49.54% Notes to the Required Supplementary Information: Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 18 Years Asset Valuation Method Fair Value Inflation 2.5% Salary Increases 5.0% Investment Rate of Return 7.0% Retirement Age Tier 1 - 15% at 50 to 100% at age 65 Tier 2 - 5% at 50 to 100% at age 65 Mortality Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. in Relation to Contributions Payroll Covered (Deficiency) Excess/ Contribution Contribution Determined Actuarially Contribution Determined the Actuarially PubS-2010 base rates projected to 2022 with scale MP2021 99 UNITED CITY OF YORKVILLE, ILLINOIS Illinois Municipal Retirement Fund Required Supplementary Information Schedule of Changes in the Employer's Net Pension Liability/(Asset) April 30, 2022 See Following Page 100 UNITED CITY OF YORKVILLE, ILLINOIS Illinois Municipal Retirement Fund Required Supplementary Information Schedule of Changes in the Employer's Net Pension Liability/(Asset) April 30, 2022 Total Pension Liability Service Cost $303,003 Interest 764,628 Differences Between Expected and Actual Experience 40,167 Change of Assumptions - Benefit Payments, Including Refunds of Member Contributions (295,309) Net Change in Total Pension Liability 812,489 Total Pension Liability - Beginning 10,191,193 Total Pension Liability - Ending 11,003,682 Plan Fiduciary Net Position Contributions - Employer $311,346 Contributions - Members 129,289 Net Investment Income 49,844 Benefit Payments, Including Refunds of Member Contributions (295,309) Other (Net Transfer)(289,688) Net Change in Plan Fiduciary Net Position (94,518) Plan Net Position - Beginning 9,896,191 Plan Net Position - Ending 9,801,673 Employer's Net Pension Liability/(Asset)$1,202,009 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 89.08% Covered Payroll $2,853,781 Employer's Net Pension Liability/(Asset) as a Percentage of Covered Payroll 42.12% 12/31/2015 Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. Changes of Assumptions.Changes in assumptions related to the discount rate were made in 2015 through 2018 and 2020. Changes in assumptions related to the demographics were made in 2017. 101 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 317,347 330,734 316,829 356,154 384,165 376,700 825,222 887,780 924,525 1,024,674 1,104,694 1,136,979 27,153 132,182 507,597 213,134 (69,685) 189,246 - (449,845) 508,408 - (340,717) - (318,792) (365,819) (442,124) (499,031) (509,477) (749,354) 850,930 535,032 1,815,235 1,094,931 568,980 953,571 11,003,682 11,854,612 12,389,644 14,204,879 15,299,810 15,868,790 11,854,612 12,389,644 14,204,879 15,299,810 15,868,790 16,822,361 308,134 335,204 365,769 324,580 429,468 443,761 132,252 139,927 167,364 172,689 173,017 188,122 684,949 1,792,699 (594,987) 2,196,500 1,983,375 2,628,659 (318,792) (365,819) (442,124) (499,031) (509,477) (749,354) 39,225 (226,729) 196,498 (8,647) (97,125) (10,755) 845,768 1,675,282 (307,480) 2,186,091 1,979,258 2,500,433 9,801,673 10,647,441 12,322,723 12,015,243 14,201,334 16,180,592 10,647,441 12,322,723 12,015,243 14,201,334 16,180,592 18,681,025 1,207,171 66,921 2,189,636 1,098,476 (311,802) (1,858,664) 89.82%99.46%84.59%92.82%101.96%111.05% 2,898,722 3,109,498 3,467,005 3,582,558 3,844,833 3,994,256 41.64%2.15%63.16%30.66%(8.11%)(46.53%) 102 UNITED CITY OF YORKVILLE, ILLINOIS Police Pension Fund Required Supplementary Information Schedule of Changes in the Employer's Net Pension Liability April 30, 2022 Total Pension Liability Service Cost $522,029 Interest 986,212 Changes of Benefit Terms - Differences Between Expected and Actual Experience (483,445) Change of Assumptions 999,313 Benefit Payments, Including Refunds of Member Contributions (435,435) Net Change in Total Pension Liability 1,588,674 Total Pension Liability - Beginning 14,306,459 Total Pension Liability - Ending 15,895,133 Plan Fiduciary Net Position Contributions - Employer $624,168 Contributions - Members 214,237 Contributions - Others - Net Investment Income 343,590 Benefit Payments, Including Refunds of Member Contributions (435,435) Administrative Expense (14,285) Net Change in Plan Fiduciary Net Position 732,275 Plan Net Position - Beginning 5,690,471 Plan Net Position - Ending 6,422,746 Employer's Net Pension Liability $9,472,387 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 40.41% Covered Payroll $2,220,146 Employer's Net Pension Liability as a Percentage of Covered Payroll 426.66% 4/30/2015 Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 103 4/30/2016 4/30/2017 4/30/2018 4/30/2019 4/30/2020 4/30/2021 4/30/2022 576,907 611,857 589,463 650,245 672,849 745,174 726,664 1,097,143 1,283,144 1,349,196 1,374,562 1,517,322 1,613,488 1,715,607 - - - - 43,601 - - 322,766 123,907 (1,529,007) 105,712 51,301 137,349 278,036 1,116,723 (565,454) 498,740 612,775 (54,912) (97,277) 270,434 (443,314) (469,494) (501,417) (597,064) (798,961) (906,100) (975,134) 2,670,225 983,960 406,975 2,146,230 1,431,200 1,492,634 2,015,607 15,895,133 18,565,358 19,549,318 19,956,293 22,102,523 23,533,723 25,026,357 18,565,358 19,549,318 19,956,293 22,102,523 23,533,723 25,026,357 27,041,964 722,940 825,413 966,211 963,361 1,111,484 1,230,604 1,334,771 222,736 234,058 249,421 243,941 269,903 261,904 278,502 - 32,388 - - - - - (30,493) 473,420 421,975 717,071 (121,161) 3,124,939 (731,141) (443,314) (469,494) (501,417) (597,064) (787,372) (893,334) (955,800) (13,448) (11,774) (12,266) (12,693) (11,589) (12,766) (19,334) 458,421 1,084,011 1,123,924 1,314,616 461,265 3,711,347 (93,002) 6,422,746 6,881,167 7,965,178 9,089,102 10,403,718 10,864,983 14,576,330 6,881,167 7,965,178 9,089,102 10,403,718 10,864,983 14,576,330 14,483,328 11,684,191 11,584,140 10,867,191 11,698,805 12,668,740 10,450,027 12,558,636 37.06%40.74%45.55%47.07%46.17%58.24%53.56% 2,294,948 2,320,642 2,543,266 2,449,210 2,631,165 2,744,017 2,694,486 509.13%499.18%427.29%477.66%481.49%380.83%466.09% 104 UNITED CITY OF YORKVILLE, ILLINOIS Police Pension Fund Required Supplementary Information Schedule of Investment Returns April 30, 2022 Annual Money- Weighted Rate of Return, Net Fiscal of Investment Year Expense 2015 5.89% 2016 (0.43%) 2017 6.54% 2018 5.09% 2019 7.56% 2020 (1.08%) 2021 26.92% 2022 (4.76%) Note: This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. 105 UNITED CITY OF YORKVILLE, ILLINOIS Retiree Benefit Plan Required Supplementary Information Schedule of Changes in the Employer's Total OPEB Liability April 30, 2022 4/30/2020 4/30/2021 4/30/2022 Total OPEB Liability Service Cost $43,414 46,531 62,448 63,305 Interest 40,335 37,312 29,424 24,995 Changes in Benefit Terms - - - - Differences Between Expected and Actual Experience - - 328,449 - Change of Assumptions or Other Inputs 12,225 72,122 (136,858) (112,346) Benefit Payments (122,570) (132,377) (126,246) (104,947) Net Change in Total OPEB Liability (26,596) 23,588 157,217 (128,993) Total OPEB Liability - Beginning 1,077,271 1,050,675 1,074,263 1,231,480 Total OPEB Liability - Ending 1,050,675 1,074,263 1,231,480 1,102,487 Covered-Employee Payroll $5,675,523 5,874,167 6,432,473 6,657,610 Total OPEB Liability as a Percentage of Covered-Employee Payroll 18.51%18.29%19.14%16.56% Notes: Changes of Assumptions. Changes of assumptions related to the discount rate were made in 2019 through 2022. 4/30/2019 This schedule is intended to show information for ten years. Information for additional years will be displayed as it becomes available. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. 106 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Taxes $12,089,017 12,089,017 14,350,349 Intergovernmental 3,401,780 3,401,780 5,630,190 Licenses, Permits and Fees 524,500 524,500 834,170 Charges for Services 1,781,123 1,781,123 1,902,362 Fines and Forfeitures 116,850 116,850 197,158 Interest Income (Loss)20,000 20,000 (33,857) Miscellaneous 132,000 132,000 237,575 Total Revenues 18,065,270 18,065,270 23,117,947 Expenditures General Government 5,324,141 5,293,141 5,141,027 Public Safety 6,158,904 6,158,904 6,018,903 Community Development 959,515 990,515 1,154,892 Public Works 2,649,285 2,649,285 2,572,571 Total Expenditures 15,091,845 15,091,845 14,887,393 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,973,425 2,973,425 8,230,554 Other Financing Sources (Uses) Transfers In 35,000 35,000 21,231 Transfers Out (3,008,425)(3,008,425)(6,797,039) (2,973,425)(2,973,425)(6,775,808) Net Change in Fund Balance - - 1,454,746 Fund Balance - Beginning 9,172,354 Fund Balance - Ending 10,627,100 Budget Original 107 UNITED CITY OF YORKVILLE, ILLINOIS Library - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Taxes $1,612,758 1,612,758 1,611,808 Intergovernmental 26,401 26,401 48,746 Licenses, Permits and Fees 50,000 50,000 103,850 Charges for Services 12,300 12,300 11,131 Fines and Forfeits 8,500 8,500 6,576 Interest Income 2,200 2,200 1,530 Miscellaneous 3,750 3,750 2,796 Total Revenues 1,715,909 1,715,909 1,786,437 Expenditures Library 943,018 943,018 834,944 Capital Outlay 20,000 20,000 18,050 Debt Service Principal Retirement 720,000 720,000 720,000 Interest and Fiscal Charges 121,925 121,925 121,914 Total Expenditures 1,804,943 1,804,943 1,694,908 Excess (Deficiency) of Revenues Over (Under) Expenditures (89,034)(89,034)91,529 Other Financing Sources Transfers In 26,993 26,993 24,809 Net Change in Fund Balance (62,041)(62,041)116,338 Fund Balance - Beginning 807,221 Fund Balance - Ending 923,559 Budget Original 108 UNITED CITY OF YORKVILLE, ILLINOIS Parks and Recreation - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Charges for Services $650,000 650,000 549,231 Grants and Donations 349,250 349,250 7,800 Interest Income 250 250 87 Miscellaneous 208,709 208,709 235,413 Total Revenues 1,208,209 1,208,209 792,531 Expenditures Parks and Recreation Park Operations 1,402,523 1,402,523 1,300,338 Recreation Operations 1,313,535 1,398,535 1,080,704 Total Expenditures 2,716,058 2,801,058 2,381,042 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,507,849)(1,592,849)(1,588,511) Other Financing Sources Transfers In 1,434,849 1,434,849 1,515,511 Net Change in Fund Balance (73,000)(158,000)(73,000) Fund Balance - Beginning 73,000 Fund Balance - Ending - Budget Original 109 Such statements and schedules include: • Budgetary Comparison Schedules – Major Governmental Funds • Combining Statements – Nonmajor Governmental Funds • Budgetary Comparison Schedules – Nonmajor Governmental Funds • Budgetary Comparison Schedules – Enterprise Funds • Consolidated Year-End Financial Report OTHER SUPPLEMENTARY INFORMATION Other supplementary information includes financial statements and schedules not required by the GASB, nor a part of the basic financial statements, but are presented for purposes of additional analysis. 110 Buildings and Grounds Fund The Buildings and Grounds Fund is used to account for maintenance of existing and construction of new municipal owned buildings. Citywide Capital Fund The Citywide Capital Fund is used to account for financial resources accumulated for maintenance of public infrastructure and to fund new capital improvements that benefit the public. Special Revenue Funds are created to account for the proceeds of specific revenue sources (other than fiduciary funds or capital project funds) that are legally restricted to expenditure for specified purposes. Library Fund The Library Fund is used to account for the activity relating to the Yorkville Public Library. Parks and Recreation Fund The Parks and Recreation Fund is used to account for the revenues and expenditures associated with the Yorkville Parks and Recreation departments. CAPITAL PROJECTS FUND MAJOR GOVERNMENTAL FUNDS GENERAL FUND The General Fund accounts for all financial resources except those required to be accounted for in another fund. SPECIAL REVENUE FUNDS Capital Projects Funds are created to account for all resources used for the acquisition of capital facilities by a governmental unit except those financed by Proprietary Funds. 111 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Taxes Property Tax $3,426,246 3,426,246 3,415,461 Sales Tax 3,582,508 3,582,508 4,450,012 Non-Home Rule Sales Tax 2,649,473 2,649,473 3,483,930 Municipal Utility Tax 993,340 993,340 1,209,606 Excise Tax 209,000 209,000 199,888 Cable TV Franchise Tax 300,000 300,000 298,048 Hotel Tax 80,000 80,000 138,415 Video Gaming Tax 140,000 140,000 252,890 Admissions and Amusement Tax 270,000 270,000 337,279 Business District Tax 421,950 421,950 547,651 Auto Rental Tax 16,500 16,500 17,169 12,089,017 12,089,017 14,350,349 Intergovernmental State Income Taxes 2,336,774 2,336,774 3,175,556 State Use Tax 937,660 937,660 798,764 Cannabis Excise Tax 19,596 19,596 32,368 Township Road and Bridge Tax 54,975 54,975 54,872 Personal Property Replacement Tax 16,500 16,500 48,889 Federal Grants 15,275 15,275 1,506,738 State Grants 20,000 20,000 12,329 Miscellaneous 1,000 1,000 674 3,401,780 3,401,780 5,630,190 Licenses, Permits and Fees Liquor Licenses 65,000 65,000 79,614 Other Licenses 9,500 9,500 8,577 Building Permits 450,000 450,000 745,979 524,500 524,500 834,170 Charges for Services Garbage Surcharge 1,397,063 1,397,063 1,494,148 Collection Fees - Sanitary District 165,000 165,000 184,951 Administrative Chargeback 218,560 218,560 218,560 Police Special Detail 500 500 4,703 1,781,123 1,781,123 1,902,362 Budget Original 112 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Revenues - Budget and Actual - Continued For the Fiscal Year Ended April 30, 2022 Final Actual Fines and Forfeitures Circuit Court Fines $35,000 35,000 50,258 Administrative Adjudication 26,500 26,500 88,880 Police Tows 55,000 55,000 57,500 Other 350 350 520 116,850 116,850 197,158 Interest Income (Loss) Investment Income 20,000 20,000 11,013 Unrealized Gain (Loss)- - (44,870) 20,000 20,000 (33,857) Miscellaneous Reimbursements Engineering 10,000 10,000 296 Liability Insurance 15,000 15,000 1,056 Other 19,000 19,000 85,011 Miscellaneous Income 88,000 88,000 151,212 132,000 132,000 237,575 Total Revenues 18,065,270 18,065,270 23,117,947 Budget Original 113 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual General Government Administration $996,443 996,443 822,343 Finance 557,390 557,390 536,226 Administrative Services 3,770,308 3,739,308 3,782,458 5,324,141 5,293,141 5,141,027 Public Safety Police Department 6,158,904 6,158,904 6,018,903 Community Development Building and Zoning 959,515 990,515 1,154,892 Public Works Streets Operations 1,255,026 1,255,026 1,095,413 Health and Sanitation 1,394,259 1,394,259 1,477,158 2,649,285 2,649,285 2,572,571 Total Expenditures 15,091,845 15,091,845 14,887,393 Budget Original 114 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual General Government Administration Salaries - Mayor $10,000 10,000 9,800 Salaries - Liquor Commissioner 1,000 1,000 1,000 Salaries - Alderman 48,000 48,000 46,000 Salaries - Administration 567,473 567,473 472,283 Retirement Plan Contribution 59,061 59,061 46,428 FICA Contribution 44,356 44,356 35,793 Group Health Insurance 88,445 88,445 56,131 Group Life Insurance 687 687 581 Dental Insurance 7,454 7,454 5,670 Vision Insurance 1,130 1,130 910 Training and Conferences 17,000 17,000 1,908 Travel and Lodging 10,000 10,000 2,116 Computer Replacement Chargeback 3,336 3,336 4,612 Publishing and Advertising 5,000 5,000 5,033 Printing and Duplicating 3,250 3,250 1,279 Telecommunications 22,300 22,300 32,921 Filing Fees 500 500 - Codification 10,000 10,000 2,272 Postage and Shipping 3,000 3,000 311 Dues and Subscriptions 22,000 22,000 22,489 Professional Services 12,000 12,000 9,725 Utilities 33,708 33,708 40,210 Rental and Lease Purchase 3,000 3,000 2,792 Office Cleaning 13,743 13,743 12,915 Office Supplies 10,000 10,000 9,164 996,443 996,443 822,343 Finance Salaries and Wages 326,735 326,735 316,610 Retirement Plan Contribution 34,006 34,006 32,884 FICA Contribution 23,676 23,676 22,937 Group Health Insurance 48,081 48,081 37,512 Group Life Insurance 361 361 362 Dental Insurance 4,132 4,132 4,132 Budget Original 115 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended April 30, 2022 Final Actual General Government - Continued Finance - Continued Vision Insurance $624 624 624 Training and Conferences 3,500 3,500 140 Auditing Services 35,900 35,900 35,900 Travel and Lodging 600 600 - Computer Replacement Chargeback 1,895 1,895 3,736 Printing and Duplicating 3,500 3,500 3,265 Telecommunications 1,980 1,980 2,049 Postage and Shipping 1,200 1,200 1,044 Dues and Subscriptions 1,500 1,500 510 Professional Services 65,000 65,000 70,638 Rental and Lease Purchase 2,200 2,200 2,063 Office Supplies 2,500 2,500 1,820 557,390 557,390 536,226 Administrative Services Police Special Detail Wages 500 500 4,703 Unemployment Insurance 16,500 16,500 15,312 Liability Insurance 346,323 346,323 369,608 Group Health Insurance - Retirees 44,302 44,302 41,950 Dental Insurance - Retirees 333 333 1,838 Vision Insurance - Retirees 62 62 74 Purchasing Services 62,437 62,437 37,114 IDOR Adminstration Fee 49,556 49,556 64,461 Computer Replacement Chargeback 1,895 1,895 1,278 GC Housing Rental Assistance 10,114 10,114 9,960 Utility Tax Rebate 8,000 8,000 8,627 Amusement Tax Rebate 12,000 12,000 25,564 Kencom 124,409 124,409 194,516 Information Technology Services 400,000 400,000 173,138 Building and Grounds Chargeback 118,190 118,190 86,745 Corporate Counsel 110,000 110,000 60,657 Litigation Counsel 110,000 110,000 61,263 Professional Services 48,150 48,150 33,483 Special Counsel 25,000 25,000 12,391 Budget Original 116 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended April 30, 2022 Final Actual General Government - Continued Administrative Services - Continued Engineering Services $300,000 300,000 410,303 Kendall Area Transit 25,000 25,000 35,325 Cable Consortium Fee 65,000 65,000 - Hotel Tax Rebate 72,000 72,000 124,574 Economic Development 165,000 165,000 167,135 City Property Tax Rebate 1,326 1,326 1,328 Sales Tax Rebate 1,004,700 1,004,700 1,155,467 Business District Rebate 413,511 413,511 536,698 Admission Tax Rebate 145,000 145,000 148,662 Bad Debt 1,000 1,000 284 Reimbursable Repairs 15,000 15,000 - Contingency 75,000 44,000 - 3,770,308 3,739,308 3,782,458 Total General Government 5,324,141 5,293,141 5,141,027 Public Safety Police Department Salaries - Police Officers 1,975,199 1,975,199 2,005,286 Salaries - Command Staff 525,732 525,732 473,178 Salaries - Sergeants 559,921 559,921 559,317 Salaries - Police Clerks 182,926 182,926 165,838 Salaries - Crossing Guard 30,000 30,000 27,597 Part Time Salaries 70,000 70,000 56,665 Overtime 111,000 111,000 75,521 Retirement Plan Contribution 19,039 19,039 17,232 Employer Contribution - Police Pension 1,334,771 1,334,771 1,334,771 FICA Contribution 257,542 257,542 249,950 Group Health Insurance 572,407 572,407 547,823 Group Life Insurance 4,269 4,269 4,228 Dental Insurance 39,409 39,409 39,843 Vision Insurance 5,987 5,987 6,014 Tuition Reimbursement 13,350 13,350 12,864 Police Commission 5,780 5,780 5,171 Budget Original 117 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended April 30, 2022 Final Actual Public Safety - Continued Police Department - Continued Training and Conferences $24,500 24,500 24,817 Travel and Lodging 10,000 10,000 2,066 Vehicle and Equipment Chargeback 91,732 91,732 91,732 Computer Replacement Chargeback 3,336 3,336 3,518 Printing and Duplicating 5,000 5,000 3,797 Telecommunications 43,500 43,500 40,158 Postage and Shipping 1,200 1,200 702 Dues and Subscriptions 10,700 10,700 9,997 Professional Services 39,950 39,950 29,959 Adjudication Services 20,750 20,750 14,046 New World Live Scan 2,000 2,000 1,995 Kendall Co. - Juve Probation 4,600 4,600 6,608 Rental and Lease Purchase 5,600 5,600 4,825 Office Cleaning 13,806 13,806 12,724 Outside Repair and Maintenance 60,000 60,000 51,274 Wearing Apparel 15,000 15,000 14,963 Office Supplies 4,500 4,500 7,487 Operating Supplies 16,500 16,500 31,366 Community Services 3,000 3,000 2,947 Ballistic Vests 4,550 4,550 4,440 Gasoline 62,348 62,348 70,454 Ammunition 9,000 9,000 7,730 Total Public Safety 6,158,904 6,158,904 6,018,903 Community Development Building and Zoning Salaries and Wages 561,611 561,611 602,702 Retirement Plan Contribution 58,451 58,451 62,128 FICA Contribution 41,374 41,374 44,979 Group Health Insurance 85,991 85,991 84,594 Group Life Insurance 707 707 608 Dental Insurance 7,034 7,034 7,088 Vision Insurance 1,115 1,115 1,131 Budget Original 118 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended April 30, 2022 Final Actual Community Development - Continued Building and Zoning - Continued Training and Conferences $7,300 7,300 1,605 Travel and Lodging 6,500 6,500 1,426 Vehicle and Equipment Chargebacks - 31,000 110,395 Computer Replacement Chargebacks - - 5,910 Publishing and Advertising 2,500 2,500 3,522 Printing and Duplicating 1,500 1,500 835 Telecommunications 4,000 4,000 3,403 Postage and Shipping 500 500 123 Inspections 70,000 70,000 160,270 Dues and Subscriptions 2,750 2,750 2,112 Professional Services 89,280 89,280 46,690 Rental and Lease Purchase 3,150 3,150 2,269 Vehicle Maintenance Services 4,500 4,500 1,927 Office Supplies 1,500 1,500 1,675 Operating Supplies 5,000 5,000 4,533 Gasoline 4,752 4,752 4,967 Total Community Development 959,515 990,515 1,154,892 Public Works Streets Operations Salaries and Wages 560,857 560,857 493,536 Part Time Salaries 13,440 13,440 3,870 Overtime 22,500 22,500 27,495 Retirement Plan Contribution 60,715 60,715 52,811 FICA Contribution 43,565 43,565 38,377 Group Health Insurance 156,120 156,120 118,132 Group Life Insurance 941 941 1,049 Dental Insurance 10,663 10,663 8,534 Vision Insurance 1,576 1,576 1,258 Training and Conferences 6,000 6,000 - Travel and Lodging 3,000 3,000 8 Vehicle and Equipment Chargeback 100,000 100,000 108,000 Computer Replacement Chargeback - - 453 Budget Original 119 UNITED CITY OF YORKVILLE, ILLINOIS General Fund Schedule of Detailed Expenditures - Budget and Actual - Continued For the Fiscal Year Ended April 30, 2022 Final Actual Public Works - Continued Streets Operations - Continued Traffic Signal Maintenance $30,000 30,000 16,406 Telecommunications 7,600 7,600 4,866 Mosquito Control 6,615 6,615 - Tree and Stump Removal 15,000 15,000 12,750 Professional Services 9,225 9,225 11,753 Julie Services 4,500 4,500 4,002 Rental and Lease Purchase 6,000 6,000 3,379 Office Cleaning 1,329 1,329 1,270 Vehicle Maintenance Services 65,000 65,000 73,825 Wearing Apparel 5,000 5,000 5,077 Operating Supplies 22,000 22,000 19,760 Vehicle Maintenance Supplies 30,000 30,000 39,293 Small Tools and Equipment 21,500 21,500 8,921 Repair and Maintenance 25,000 25,000 11,782 Julie Supplies 1,200 1,200 650 Gasoline 25,680 25,680 28,156 1,255,026 1,255,026 1,095,413 Health and Sanitation Garbage Services 1,385,259 1,385,259 1,471,265 Leaf Pickup 9,000 9,000 5,893 1,394,259 1,394,259 1,477,158 Total Public Works 2,649,285 2,649,285 2,572,571 Total Expenditures 15,091,845 15,091,845 14,887,393 Budget Original 120 UNITED CITY OF YORKVILLE, ILLINOIS Library - Special Revenue Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Taxes Property Tax $1,612,758 1,612,758 1,611,808 Intergovernmental Personal Property Replacement Tax 5,250 5,250 16,201 Grants 21,151 21,151 32,545 26,401 26,401 48,746 Licenses, Permits and Fees Development Fees 50,000 50,000 103,850 Charges for Services Library Subscription Cards 8,500 8,500 8,378 Program Fees - - 51 Copy Fees 3,800 3,800 2,702 12,300 12,300 11,131 Fines and Forfeitures 8,500 8,500 6,576 Interest Income 2,200 2,200 1,530 Miscellaneous Rental Income 1,750 1,750 200 Miscellaneous Income 2,000 2,000 2,596 3,750 3,750 2,796 Total Revenues 1,715,909 1,715,909 1,786,437 Budget Original 121 UNITED CITY OF YORKVILLE, ILLINOIS Library - Special Revenue Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Library Salaries and Wages $286,470 286,470 269,386 Part Time Salaries 195,544 195,544 170,202 Retirement Plan Contribution 32,180 32,180 27,675 FICA Contribution 35,685 35,685 32,700 Group Health Insurance 105,501 105,501 79,114 Group Life Insurance 377 377 532 Dental Insurance 7,079 7,079 6,336 Vision Insurance 1,088 1,088 915 Unemployment Insurance 1,000 1,000 645 Liability Insurance 25,993 25,993 24,164 Training and Conferences 3,000 3,000 357 Travel and Lodging 1,500 1,500 310 Publishing and Advertising 2,500 2,500 1,332 Telecommunications 7,200 7,200 7,199 Postage and Shipping 750 750 884 Dues and Subscriptions 11,000 11,000 9,324 Professional Services 40,000 40,000 34,322 Legal Services 3,000 3,000 4,050 Automation 20,000 20,000 17,461 Utilities 12,351 12,351 27,568 Outside Repair and Maintenance 50,000 50,000 22,916 Office Supplies 8,000 8,000 4,694 Operating Supplies 4,000 4,000 1,240 Custodial Supplies 7,000 7,000 4,030 Computer Equipment and Software 17,000 17,000 26,881 Library Programming 2,000 2,000 325 Employee Recognition 300 300 171 E-Book Subscriptions 3,500 3,500 3,000 Audio Books 3,500 3,500 3,029 DVD's and CD's 4,000 4,000 2,867 Books 51,500 51,500 51,315 Total Library 943,018 943,018 834,944 Budget Original 122 UNITED CITY OF YORKVILLE, ILLINOIS Library - Special Revenue Fund Schedule of Expenditures - Budget and Actual - Continued For the Fiscal Year Ended April 30, 2022 Final Actual Capital Outlay Building Improvements $20,000 20,000 18,050 Debt Service Principal Retirement 720,000 720,000 720,000 Interest and Fiscal Charges 121,925 121,925 121,914 Total Debt Service 841,925 841,925 841,914 Total Expenditures 1,804,943 1,804,943 1,694,908 Budget Original 123 UNITED CITY OF YORKVILLE, ILLINOIS Parks and Recreation - Special Revenue Fund Schedule of Revenues - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Charges for Services Fees for Programs $605,000 605,000 523,027 Concessions 45,000 45,000 26,204 Total Charges for Services 650,000 650,000 549,231 Grants and Donations Federal Grants 334,250 334,250 - Sponsorships and Donations 15,000 15,000 7,800 Total Grants and Donations 349,250 349,250 7,800 Interest Income 250 250 87 Miscellaneous Rental Income 83,709 83,709 74,117 Hometown Days Revenue 120,000 120,000 145,676 Reimbursements - - 3,991 Miscellaneous Income 5,000 5,000 11,629 Total Miscellaneous 208,709 208,709 235,413 Total Revenue 1,208,209 1,208,209 792,531 Budget Original 124 UNITED CITY OF YORKVILLE, ILLINOIS Parks and Recreation - Special Revenue Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Parks and Recreation Park Operations Salaries and Wages $659,709 659,709 626,958 Part Time Salaries 62,500 62,500 54,471 Overtime 5,000 5,000 4,590 Retirement Plan Contribution 70,935 70,935 66,794 FICA Contribution 53,594 53,594 51,118 Group Health Insurance 173,195 173,195 141,648 Group Life Insurance 1,149 1,149 1,015 Dental Insurance 11,605 11,605 10,794 Vision Insurance 1,734 1,734 1,616 Training and Conferences 9,000 9,000 1,160 Travel and Lodging 3,000 3,000 322 Vehicle and Equipment Chargeback 88,866 88,866 88,866 Telecommunications 8,250 8,250 9,348 Professional Services 11,400 11,400 10,648 Legal Services 1,000 1,000 495 Rental and Lease Purchase 8,055 8,055 7,934 Office Cleaning 3,487 3,487 3,542 Outside Repairs and Maintenance 40,000 40,000 24,007 Wearing Apparel 6,220 6,220 5,226 Operating Supplies 25,000 25,000 14,277 Small Tools and Equipment 11,000 11,000 8,862 Repairs and Maintenance 71,000 71,000 83,078 Athletic Fields and Equipment 55,000 55,000 49,357 Gasoline 21,824 21,824 34,212 Total Park Operations 1,402,523 1,402,523 1,300,338 Recreation Operations Salaries and Wages 386,753 386,753 369,077 Part Time Salaries 23,500 23,500 4,078 Concession Wages 15,000 15,000 8,820 Preschool Wages 40,000 40,000 42,373 Instructor Wages 40,000 40,000 12,468 Retirement Plan Contribution 45,446 45,446 39,317 FICA Contribution 37,238 37,238 32,801 Budget Original 125 UNITED CITY OF YORKVILLE, ILLINOIS Parks and Recreation - Special Revenue Fund Schedule of Expenditures - Budget and Actual - Continued For the Fiscal Year Ended April 30, 2022 Final Actual Parks and Recreation - Continued Recreation Operations - Continued Group Health Insurance $107,479 107,479 69,510 Group Life Insurance 748 748 607 Dental Insurance 7,685 7,685 5,084 Vision Insurance 1,156 1,156 797 Training and Conferences 5,000 5,000 1,952 Travel and Lodging 3,000 3,000 4 Computer Replacement Chargeback 1,770 1,770 2,473 Publishing and Advertising 55,000 55,000 11,356 Telecommunications 8,750 8,750 14,482 Scholarships 2,500 2,500 - Postage and Shipping 3,500 3,500 1,114 Dues and Subscriptions 3,000 3,000 2,247 Professional Services 140,000 140,000 87,708 Utilities 14,072 14,072 7,333 Rental and Lease Purchase 3,000 3,000 1,339 Office Cleaning 7,938 7,938 7,419 Outside Repairs and Maintenance 3,000 3,000 976 Hometown Days Expenditures 120,000 120,000 127,875 Program Supplies 200,000 285,000 189,295 Concession Supplies 18,000 18,000 13,013 Office Supplies 3,000 3,000 2,394 Operating Supplies 15,000 15,000 23,430 Repairs and Maintenance 2,000 2,000 1,362 Total Recreation Operations 1,313,535 1,398,535 1,080,704 Total Expenditures 2,716,058 2,801,058 2,381,042 Budget Original 126 UNITED CITY OF YORKVILLE, ILLINOIS Citywide Capital - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Licenses, Permits and Fees Building Permits $- - 203,480 Development Fees 5,000 5,000 4,715 Road Contribution Fee 100,000 100,000 8,000 Charges for Services Road Infrastructure Fee 785,000 785,000 837,007 Interest Income 500 500 4,712 Miscellaneous 2,521,322 2,521,322 1,619,841 Total Revenues 3,411,822 3,411,822 2,677,755 Expenditures Public Works 301,214 301,214 285,078 Capital Outlay 4,438,876 4,438,876 2,679,942 Debt Service Principal Retirement 200,000 200,000 200,000 Interest and Fiscal Charges 115,813 115,813 115,813 Total Expenditures 5,055,903 5,055,903 3,280,833 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,644,081)(1,644,081)(603,078) Other Financing Sources (Uses) Transfers In 2,396,250 2,396,250 3,138,492 Transfers Out (489,382)(489,382)(489,382) 1,906,868 1,906,868 2,649,110 Net Change in Fund Balance 262,787 262,787 2,046,032 Fund Balance - Beginning 119,569 Fund Balance - Ending 2,165,601 Budget Original 127 UNITED CITY OF YORKVILLE, ILLINOIS Citywide Capital - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Public Works Street Lighting and Signs $125,214 125,214 114,101 Sidewalk and Street Lighting Supplies 52,500 52,500 44,475 Professional Services 13,500 13,500 - Engineering Services 109,000 109,000 126,167 Bad Debt 1,000 1,000 335 Total General Government 301,214 301,214 285,078 Capital Outlay Asphalt Patching 35,000 35,000 5,264 Fox Hill Improvements 85,000 85,000 158 Mill Road Improvement 2,260,000 2,260,000 1,560,439 Blackberry Woods Subdivision 6,101 6,101 - Road To Better Roads Program 1,148,725 1,148,725 812,945 Bristol Bridge Road 70,000 70,000 76,381 Sidewalk Replacement Program 300,000 300,000 159,960 RT 71 (RT47/Orchard Road) Project 82,050 82,050 - US 34 (Center/Eldamain Road) Project 110,000 110,000 - US 34 (IL 47/Orchard Road) Project 85,000 85,000 - Raintree Village Improvements 165,000 165,000 6,355 Kennedy Road (North)60,000 60,000 58,440 Kennedy Road Bike Trail 32,000 32,000 - Total Capital Outlay 4,438,876 4,438,876 2,679,942 Debt Service Principal Retirement 200,000 200,000 200,000 Interest and Fiscal Charges 115,813 115,813 115,813 Total Debt Service 315,813 315,813 315,813 Total Expenditures 5,055,903 5,055,903 3,280,833 Budget Original 128 UNITED CITY OF YORKVILLE, ILLINOIS Buildings and Grounds - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Licenses, Permits and Fees Development Fees $35,000 35,000 21,231 Charges for Services Buildings and Grounds Chargeback 147,738 147,738 108,431 Interest Income 3,000 3,000 1,172 Miscellaneous 2,000 2,000 576 Total Revenues 187,738 187,738 131,410 Expenditures Public Works 334,738 334,738 238,056 Capital Outlay 6,980,000 6,980,000 1,078,232 Debt Service Interest and Fiscal Charges 239,511 239,511 239,522 Total Expenditures 7,554,249 7,554,249 1,555,810 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,366,511)(7,366,511)(1,424,400) Other Financing Sources (Uses) Debt Issuance 8,707,478 8,707,478 9,260,000 Premium on Debt Issuance - - 525,011 Transfers In 689,033 689,033 3,709,380 Transfers Out (2,030,000)(2,030,000)(2,067,734) 7,366,511 7,366,511 11,426,657 Net Change in Fund Balance - - 10,002,257 Fund Balance - Beginning - Fund Balance - Ending 10,002,257 Budget Original 129 UNITED CITY OF YORKVILLE, ILLINOIS Buildings and Grounds - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Public Works Salaries and Wages $50,117 50,117 33,558 Retirement Plan Contribution 5,216 5,216 3,339 FICA Contribution 3,547 3,547 2,640 Group Health Insurance 21,690 21,690 900 Group Life Insurance 109 109 62 Dental Insurance 1,352 1,352 444 Vision Insurance 197 197 75 Computer Replacement Chargeback - - 1,191 Facility Management Services 65,510 65,510 62,592 Telecommunications - - 2,331 Property and Building Maintenance Services 160,000 160,000 116,890 Professional Services - - 45 Wearing Apparel - - 841 Hanging Baskets 2,000 2,000 412 Property and Building Maintenance Supplies 25,000 25,000 12,736 Total Public Works 334,738 334,738 238,056 Capital Outlay City Hall Improvements 6,980,000 6,980,000 1,078,232 Debt Service Interest and Fiscal Charges 239,511 239,511 239,522 Total Expenditures 7,554,249 7,554,249 1,555,810 Budget Original 130 NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS 131 UNITED CITY OF YORKVILLE, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet April 30, 2022 Debt Capital Service Projects Totals ASSETS Cash and Investments $529,847 - 1,628,947 2,158,794 Receivables - Net of Allowances Accounts - - 29,691 29,691 Other Taxes 63,831 - - 63,831 Total Assets 593,678 - 1,658,638 2,252,316 LIABILITIES Accounts Payable 266,406 - 6,000 272,406 Due to Other Funds 2,829,423 - - 2,829,423 Deposit Payable - - 261,016 261,016 Total Liabilities 3,095,829 - 267,016 3,362,845 Restricted 327,217 - - 327,217 Assigned - - 1,391,622 1,391,622 Unassigned (2,829,368)- - (2,829,368) Total Fund Balances (2,502,151)- 1,391,622 (1,110,529) Total Liabilities, Deferred Inflows of Resources and Fund Balances 593,678 - 1,658,638 2,252,316 Special Revenue FUND BALANCES 132 UNITED CITY OF YORKVILLE, ILLINOIS Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended April 30, 2022 Debt Capital Service Projects Totals Revenues Taxes $462,322 - - 462,322 Intergovernmental 1,255,645 - 9,590 1,265,235 Licenses, Permits and Fees - 8,950 112,511 121,461 Charges for Services - - 446,035 446,035 Fines and Forfeits - - 7,529 7,529 Grants and Donations 2,712 - - 2,712 Interest Income 1,846 - - 1,846 Miscellaneous - - 323 323 Total Revenues 1,722,525 8,950 575,988 2,307,463 Expenditures General Government 123,725 - - 123,725 Public Safety - - 466 466 Public Works 128,844 - 67 128,911 Capital Outlay 2,124,801 - 633,652 2,758,453 Debt Service Principal Retirement 312,455 310,000 55,204 677,659 Interest and Fiscal Charges 103,605 19,375 16,366 139,346 Total Expenditures 2,793,430 329,375 705,755 3,828,560 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,070,905)(320,425)(129,767)(1,521,097) Other Financing Sources Sale of Capital Assets - - 35,598 35,598 Transfers In - 320,425 - 320,425 - 320,425 35,598 356,023 Net Change in Fund Balances (1,070,905)- (94,169)(1,165,074) Fund Balances - Beginning (1,431,246)- 1,485,791 54,545 Fund Balances - Ending (2,502,151)- 1,391,622 (1,110,529) Special Revenue 133 Downtown TIF II Fund The Downtown TIF II Fund is used to account for revenues and expenditures associated with the development activities of the downtown area located primarily south of Hydraulic Avenue and just north of Washington Street, between White Oak Estate to the west and Benjamin Street to the east. The Sunflower Special Service Fund is used to account for revenues and expenditures associated with the maintenance of the common areas of the Sunflower Estates subdivision. NONMAJOR SPECIAL REVENUE FUNDS Special Revenue Funds are created to account for the proceeds of specific revenue sources (other than fiduciary funds or capital project funds) that are legally restricted to expenditure for specified purposes. Fox Hill Special Service Area Fund The Fox Hill Special Service Area Fund is used to account for the revenues and expenditures associated with the maintenance of the common areas of the Fox Hill Estates subdivision. Sunflower Special Service Area Fund The Countryside TIF Fund is used to account for the accumulation of monies for the payment of the 2014 General Refunding Obligation Bond Series and 2015A General Obligation Refunding Bond Series. These bonds were issued to refund the 2005 General Obligation Bond Series, which were issued to finance retail development at Countryside Center. Downtown TIF Fund The Downtown TIF I Fund is used to account for revenues and expenditures associated with the development activities of the downtown area located primarily along Hydraulic Avenue, Illinois Route 47 and Benjamin Street within Yorkville’s historic commercial core. Motor Fuel Tax Fund The Motor Fuel Tax Fund is used to account for allotments of motor fuel taxes from the State of Illinois made on per capita basis. These taxes are to be used to construct and maintain street, traffic signals and signs. Land Cash Fund The Land Cash Fund is used to account for the revenues and expenditures associated with the construction of park facilities. Countryside TIF Fund 134 UNITED CITY OF YORKVILLE, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet April 30, 2022 See Following Page 135 UNITED CITY OF YORKVILLE, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Balance Sheet April 30, 2022 Sunflower Special Service Area Cash and Investments $21,576 2,386 Receivables - Net of Allowances Other Taxes - - Total Assets 21,576 2,386 Accounts Payable - - Due to Other Funds - - Total Liabilities - - Restricted 21,576 2,386 Unassigned - - Total Fund Balances 21,576 2,386 Total Liabilities and Fund Balances 21,576 2,386 FUND BALANCES LIABILITIES Fox Hill Special Service Area ASSETS 136 Motor Fuel Land Countryside Downtown Downtown Tax Cash TIF TIF TIF II Totals 471,899 33,843 143 - - 529,847 63,831 - - - - 63,831 535,730 33,843 143 - - 593,678 266,318 - 88 - - 266,406 - - 1,182,870 1,639,928 6,625 2,829,423 266,318 - 1,182,958 1,639,928 6,625 3,095,829 269,412 33,843 - - - 327,217 - - (1,182,815)(1,639,928)(6,625)(2,829,368) 269,412 33,843 (1,182,815)(1,639,928)(6,625)(2,502,151) 535,730 33,843 143 - - 593,678 137 UNITED CITY OF YORKVILLE, ILLINOIS Nonmajor Governmental - Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended April 30, 2022 Sunflower Special Service Area Revenues Taxes $16,034 20,363 Intergovernmental - - Grants and Donations - - Interest Income - - Total Revenues 16,034 20,363 Expenditures General Government - - Public Works 4,689 9,568 Capital Outlay - - Debt Service Principal Retirement - - Interest and Fiscal Charges - - Total Expenditures 4,689 9,568 Net Change in Fund Balances 11,345 10,795 Fund Balances - Beginning 10,231 (8,409) Fund Balances - Ending 21,576 2,386 Service Area Fox Hill Special 138 Motor Fuel Land Countryside Downtown Downtown Tax Cash TIF TIF TIF II Totals - - 250,366 96,795 78,764 462,322 1,255,645 - - - - 1,255,645 - 2,712 - - - 2,712 1,846 - - - - 1,846 1,257,491 2,712 250,366 96,795 78,764 1,722,525 - - 11,982 74,223 37,520 123,725 114,587 - - - - 128,844 2,117,313 - - 7,488 - 2,124,801 - - 112,455 200,000 - 312,455 - - 97,522 6,083 - 103,605 2,231,900 - 221,959 287,794 37,520 2,793,430 (974,409)2,712 28,407 (190,999)41,244 (1,070,905) 1,243,821 31,131 (1,211,222)(1,448,929)(47,869)(1,431,246) 269,412 33,843 (1,182,815)(1,639,928)(6,625)(2,502,151) 139 UNITED CITY OF YORKVILLE, ILLINOIS Fox Hill Special Service Area - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Taxes Property Tax $19,000 19,000 16,034 Expenditures Public Works Outside Repair and Maintenance 59,200 59,200 4,689 Net Change in Fund Balance (40,200)(40,200)11,345 Fund Balance - Beginning 10,231 Fund Balance - Ending 21,576 Budget Original 140 UNITED CITY OF YORKVILLE, ILLINOIS Sunflower Special Service Area - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Taxes Property Tax $21,000 21,000 20,363 Expenditures Public Works Pond Maintenance 5,000 5,000 3,267 Outside Repair and Maintenance 12,200 12,200 6,301 Total Expenditures 17,200 17,200 9,568 Net Change in Fund Balance 3,800 3,800 10,795 Fund Balance - Beginning (8,409) Fund Balance - Ending 2,386 Budget Original 141 UNITED CITY OF YORKVILLE, ILLINOIS Motor Fuel Tax - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Intergovernmental $1,258,019 1,258,019 1,255,645 Interest Income 2,000 2,000 1,846 Total Revenues 1,260,019 1,260,019 1,257,491 Expenditures Public Works Supplies 138,000 138,000 114,587 Capital Outlay Streets and Alleys 2,297,413 2,297,413 2,117,313 Total Expenditures 2,435,413 2,435,413 2,231,900 Net Change in Fund Balance (1,175,394)(1,175,394)(974,409) Fund Balance - Beginning 1,243,821 Fund Balance - Ending 269,412 Budget Original 142 UNITED CITY OF YORKVILLE, ILLINOIS Land Cash - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Grants and Donations White Oak $1,406 1,406 - Whispering Meadows 4,699 4,699 - Blackberry Woods Nature Reserve 1,932 1,932 1,705 Caledonia 4,698 4,698 1,007 Country Hills 4,358 4,358 - Heartland Meadows 3,522 3,522 - Briarwood 5,145 5,145 - Total Revenues 25,760 25,760 2,712 Expenditures Parks and Recreation Blackberry Creek 5,000 5,000 - Net Change in Fund Balance 20,760 20,760 2,712 Fund Balance - Beginning 31,131 Fund Balance - Ending 33,843 Budget Original 143 UNITED CITY OF YORKVILLE, ILLINOIS Countryside TIF - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Taxes Property Taxes $260,727 260,727 250,366 Expenditures General Government Administrative Fees 11,381 11,381 11,381 Professional Services 2,000 2,000 601 Debt Service Principal Retirement 112,455 112,455 112,455 Interest and Fiscal Charges 97,561 97,561 97,522 Total Expenditures 223,397 223,397 221,959 Net Change in Fund Balance 37,330 37,330 28,407 Fund Balance - Beginning (1,211,222) Fund Balance - Ending (1,182,815) Budget Original 144 UNITED CITY OF YORKVILLE, ILLINOIS Downtown TIF - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Taxes Property Taxes $70,000 70,000 96,795 Expenditures General Government Administrative Fees 35,020 35,020 35,020 TIF Incentive Payout 27,820 27,820 36,562 Professional Services 5,000 5,000 2,641 Capital Outlay Project Costs 10,000 10,000 - Route 47 Expansion 7,488 7,488 7,488 Debt Service Principal Retirement 200,000 200,000 200,000 Interest and Fiscal Charges 6,084 6,084 6,083 Total Expenditures 291,412 291,412 287,794 Net Change in Fund Balance (221,412)(221,412)(190,999) Fund Balance - Beginning (1,448,929) Fund Balance - Ending (1,639,928) Budget Original 145 UNITED CITY OF YORKVILLE, ILLINOIS Downtown TIF II - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Taxes Property Taxes $48,526 48,526 78,764 Expenditures General Government Professional Services 5,000 5,000 715 TIF Incentive Payout 25,500 36,805 36,805 Total Expenditures 30,500 41,805 37,520 Net Change in Fund Balance 18,026 6,721 41,244 Fund Balance - Beginning (47,869) Fund Balance - Ending (6,625) Budget Original 146 NONMAJOR DEBT SERVICE FUND The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. 147 UNITED CITY OF YORKVILLE, ILLINOIS Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Licenses, Permits and Fees Recapture Fees $8,000 8,000 8,950 Expenditures Debt Service Principal 310,000 310,000 310,000 Interest and Fiscal Charges 19,375 19,375 19,375 Total Expenditures 329,375 329,375 329,375 Excess (Deficiency) of Revenues Over (Under) Expenditures (321,375)(321,375)(320,425) Other Financing Sources Transfers In 321,375 321,375 320,425 Net Change in Fund Balance - - - Fund Balance - Beginning - Fund Balance - Ending - Budget Original 148 NONMAJOR CAPITAL PROJECTS FUND Capital Projects Funds are created to account for all resources used for the acquisition of capital facilities by a governmental unit except those financed by Proprietary Funds. Vehicle and Equipment Fund The Vehicle and Equipment Fund is used to account for financial resources accumulated to purchase vehicles, equipment and other capital assets for use in the Police, General Government, Public Works and Park and Recreation departments. 149 UNITED CITY OF YORKVILLE, ILLINOIS Vehicle and Equipment - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Revenues Intergovernmental Grants $- - 9,590 Licenses, Permits and Fees Development Fees 99,500 99,500 90,711 Engineering Capital Fee 10,000 10,000 21,800 Charges for Services 396,926 427,926 446,035 Fines and Forfeits DUI Fines 7,000 7,000 6,649 Electronic Citations 800 800 880 Miscellaneous 1,000 1,000 323 Interest Income 1,000 1,000 - Total Revenues 516,226 547,226 575,988 Expenditures Public Safety 8,750 8,750 466 Public Works 1,750 1,750 67 Capital Outlay 1,533,928 1,795,928 633,652 Debt Service Principal Retirement 55,204 55,204 55,204 Interest and Fiscal Charges 16,366 16,366 16,366 Total Expenditures 1,615,998 1,877,998 705,755 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,099,772)(1,330,772)(129,767) Other Financing Sources Sale of Capital Assets - - 35,598 Net Change in Fund Balance (1,099,772)(1,330,772)(94,169) Fund Balance - Beginning 1,485,791 Fund Balance - Ending 1,391,622 Budget Original 150 UNITED CITY OF YORKVILLE, ILLINOIS Vehicle and Equipment - Capital Projects Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Police Capital Contractual Services $8,750 8,750 466 Capital Outlay Equipment 50,000 50,000 - Vehicles 260,000 260,000 120,259 Total Police Capital 318,750 318,750 120,725 General Government Capital Capital Outlay Computer Equipment and Software 12,232 12,232 24,088 Vehicles - 31,000 110,395 Total General Government Capital 12,232 43,232 134,483 Public Works Capital Contractual Services 750 750 67 Supplies 1,000 1,000 - Capital Outlay Equipment 15,000 15,000 92,186 Vehicles 680,000 911,000 147,102 Total Public Works Capital 696,750 927,750 239,355 Park and Recreation Capital Capital Outlay Outside Repair and Maintenance 1,600 1,600 - Park Improvements 152,096 152,096 90,890 Equipment 50,000 50,000 48,732 Vehicles 313,000 313,000 - Total Park and Recreation Capital 516,696 516,696 139,622 Debt Service Principal Retirement 55,204 55,204 55,204 Interest and Fiscal Charges 16,366 16,366 16,366 Total Debt Service 71,570 71,570 71,570 Total Expenditures 1,615,998 1,877,998 705,755 Budget Original 151 Water Fund The Water Fund is used to account for the operation and water infrastructure maintenance of the City-owned water distribution system,as well as the construction of new water systems. Revenues are generated through charges based on water consumption and user maintenance fees. ENTERPRISE FUNDS Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where it has been decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purpose. Sewer Fund The Sewer Fund is used to account for the operation and sewer infrastructure maintenance of the City-owned sewer system,as well as the construction of new sewer systems within City limits. Revenues are generated through user maintenance fees. 152 UNITED CITY OF YORKVILLE, ILLINOIS Sewer - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Operating Revenues Charges for Services $1,466,553 1,466,553 1,513,766 Operating Expenses Operations 2,119,374 2,119,374 660,028 Depreciation and Amortization - - 734,417 Total Operating Expenses 2,119,374 2,119,374 1,394,445 Operating Income (Loss)(652,821)(652,821)119,321 Nonoperating Revenues (Expenses) Interest Income 1,500 1,500 3,139 Connection Fees 203,300 203,300 200,300 Other Income (Expense)(2,000)(2,000)56,067 Interest Expense (231,530)(231,530)(238,517) (28,730)(28,730)20,989 Income (Loss) Before Transfers and Contributions (681,551)(681,551)140,310 Capital Contributions - - 229,076 Capital Grants 84,500 84,500 - Transfers In 519,749 519,749 519,749 Transfers Out (75,675)(75,675)(75,675) 528,574 528,574 673,150 Change in Net Position (152,977)(152,977)813,460 Net Position - Beginning 34,902,097 Net Position - Ending 35,715,557 Budget Original 153 UNITED CITY OF YORKVILLE, ILLINOIS Water - Enterprise Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the Fiscal Year Ended April 30, 2022 Final Actual Operating Revenues Charges for Services $4,413,894 4,413,894 4,661,610 Operating Expenses Operations 5,863,191 5,863,191 2,246,249 Depreciation and Amortization - - 1,121,240 Total Operating Expenses 5,863,191 5,863,191 3,367,489 Operating Income (Loss)(1,449,297)(1,449,297)1,294,121 Nonoperating Revenues (Expenses) Interest Income 3,000 3,000 2,031 Unrealized Gain (Loss)- - (29,663) Connection Fees 230,000 230,000 283,084 Other Income 102,894 102,894 110,494 Interest Expense (218,542)(218,542)(263,012) 117,352 117,352 102,934 Income (Loss) Before Contributions and Transfers (1,331,945)(1,331,945)1,397,055 Capital Contributions - - 111,473 Capital Grants 131,250 131,250 - Transfers In 180,233 180,233 180,233 311,483 311,483 291,706 Change in Net Position (1,020,462)(1,020,462)1,688,761 Net Position - Beginning 36,427,693 Net Position - Ending 38,116,454 Budget Original 154 UNITED CITY OF YORKVILLE, ILLINOIS Consolidated Year-End Financial Report April 30, 2022 CSFA #Program Name Federal Other Totals 494-00-0967 High-Growth Cities Program $79,463 - - 79,463 494-00-1004 Local Highway Safety Improvement Program 19,490 - - 19,490 494-00-1488 Motor Fuel Tax Program 2,152,437 - - 2,152,437 Other Grant Programs and Activities - 1,441,667 24,958 1,466,625 All Other Costs Not Allocated - - 22,968,333 22,968,333 Totals 2,251,390 1,441,667 22,993,291 26,686,348 State 155 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS October 20, 2022 The Honorable City Mayor Members of the City Council United City of Yorkville, Illinois We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated October 20, 2022. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. According, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 156 United City of Yorkville, Illinois October 20, 2022 Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 157 SUPPLEMENTAL SCHEDULES 158 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements Promissory Note of 2019 April 30, 2022 Date of Issue November 18, 2019 Date of Maturity November 18, 2028 Authorized Issue $548,273 Interest Rate 3.60% Interest Dates Monthly Principal Maturity Dates Monthly Payable at First National Bank of Omaha Fiscal Year Interest Totals 2023 $57,253 14,317 71,570 2024 59,347 12,223 71,570 2025 61,581 9,989 71,570 2026 63,867 7,703 71,570 2027 66,237 5,333 71,570 2028 68,691 2,879 71,570 2029 41,246 504 41,750 418,222 52,948 471,170 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Principal 159 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements IEPA (L17-1156300) Loan Payable of 2007 April 30, 2022 Date of Issue November 9, 2006 Date of Maturity August 9, 2026 Authorized Issue $1,889,244 Denomination of Bonds $5,000 Interest Rate 2.50% Interest Dates August 9 and February 9 Principal Maturity Dates August 9 and February 9 Payable at Illinois Environmental Protection Agency Fiscal Year Interest Totals Aug. 9 Amount Feb. 9 Amount 2023 $112,503 12,527 125,030 2022 6,613 2023 5,914 2024 115,333 9,697 125,030 2023 5,207 2024 4,490 2025 118,235 6,795 125,030 2024 3,765 2025 3,030 2026 121,209 3,821 125,030 2025 2,287 2026 1,534 2027 61,744 772 62,516 2026 772 2027 - 529,024 33,612 562,636 18,644 14,968 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 160 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Library Bonds of 2006 April 30, 2022 Date of Issue August 1, 2006 Date of Maturity December 30, 2024 Authorized Issue $1,500,000 Denomination of Bonds $5,000 Interest Rates 4.75% to 4.80% Interest Dates June 30 and December 30 Principal Maturity Date December 30 Payable at BNY Midwest Trust Company Fiscal Year Interest Totals Jun. 30 Amount Dec. 30 Amount 2023 $75,000 13,112 88,112 2022 6,556 2022 6,556 2024 100,000 9,550 109,550 2023 4,775 2023 4,775 2025 100,000 4,800 104,800 2024 2,400 2024 2,400 275,000 27,462 302,462 13,731 13,731 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 161 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Library Refunding Bonds of 2013 April 30, 2022 Date of Issue May 9, 2013 Date of Maturity December 30, 2024 Authorized Issue $6,625,000 Denomination of Bonds $5,000 Interest Rates 2.00% to 4.00% Interest Dates June 30 and December 30 Principal Maturity Date December 30 Payable at Bank of New York Mellon Fiscal Year Interest Totals Jun. 30 Amount Dec. 30 Amount 2023 $675,000 84,200 759,200 2022 42,100 2022 42,100 2024 700,000 57,200 757,200 2023 28,600 2023 28,600 2025 730,000 29,200 759,200 2024 14,600 2024 14,600 2,105,000 170,600 2,275,600 85,300 85,300 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 162 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Refunding Alternate Revenue Source Bonds of 2014 April 30, 2022 Date of Issue January 6, 2014 Date of Maturity December 1, 2029 Authorized Issue $1,235,000 Denomination of Bonds $5,000 Interest Rate 4.00% to 4.30% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at The Bank of New York Trust Company Fiscal Year Interest Totals Jun. 1 Amount Dec. 1 Amount 2023 $- 50,715 50,715 2022 25,357 2022 25,358 2024 - 50,715 50,715 2023 25,357 2023 25,358 2025 - 50,715 50,715 2024 25,357 2024 25,358 2026 230,000 50,715 280,715 2025 25,357 2025 25,358 2027 235,000 41,515 276,515 2026 20,757 2026 20,758 2028 245,000 32,115 277,115 2027 16,057 2027 16,058 2029 255,000 22,193 277,193 2028 11,096 2028 11,097 2030 270,000 11,610 281,610 2029 5,805 2029 5,805 1,235,000 310,293 1,545,293 155,143 155,150 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 163 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Refunding Alternate Revenue Source Bonds of 2014A April 30, 2022 Date of Issue August 5, 2014 Date of Maturity December 1, 2033 Authorized Issue $4,295,000 Denomination of Bonds $5,000 Interest Rate 3.00% to 4.00% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Amalgamated Fiscal Year Interest Totals Jun. 1 Amount Dec. 1 Amount 2023 $210,000 109,337 319,337 2022 54,669 2022 54,668 2024 210,000 103,037 313,037 2023 51,519 2023 51,518 2025 220,000 96,737 316,737 2024 48,369 2024 48,368 2026 225,000 90,137 315,137 2025 45,069 2025 45,068 2027 230,000 83,387 313,387 2026 41,694 2026 41,693 2028 245,000 76,200 321,200 2027 38,100 2027 38,100 2029 250,000 66,400 316,400 2028 33,200 2028 33,200 2030 265,000 56,400 321,400 2029 28,200 2029 28,200 2031 275,000 45,800 320,800 2030 22,900 2030 22,900 2032 280,000 34,800 314,800 2031 17,400 2031 17,400 2033 290,000 23,600 313,600 2032 11,800 2032 11,800 2034 300,000 12,000 312,000 2033 6,000 2033 6,000 3,000,000 797,835 3,797,835 398,920 398,915 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 164 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Refunding Alternate Revenue Source Bonds of 2014B April 30, 2022 Date of Issue August 5, 2014 Date of Maturity December 30, 2022 Authorized Issue $2,300,000 Denomination of Bonds $5,000 Interest Rate 2.00% to 3.00% Interest Dates June 30 and December 30 Principal Maturity Date December 30 Payable at Amalgamated Fiscal Year Interest Totals Jun. 30 Amount Dec. 30 Amount 2023 $320,000 9,600 329,600 2022 4,800 2022 4,800 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 165 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Refunding Alternate Revenue Source Bonds of 2014C April 30, 2022 Date of Issue August 5, 2014 Date of Maturity December 30, 2024 Authorized Issue $1,290,000 Denomination of Bonds $5,000 Interest Rate 2.00% to 3.00% Interest Dates June 30 and December 30 Principal Maturity Date December 30 Payable at Amalgamated Fiscal Year Interest Totals Jun. 30 Amount Dec. 30 Amount 2023 $135,000 12,300 147,300 2022 6,150 2022 6,150 2024 140,000 8,250 148,250 2023 4,125 2023 4,125 2025 135,000 4,050 139,050 2024 2,025 2024 2,025 410,000 24,600 434,600 12,300 12,300 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 166 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Refunding Alternate Revenue Source Bonds of 2015A April 30, 2022 Date of Issue July 8, 2015 Date of Maturity December 1, 2034 Authorized Issue $5,575,000 Denomination of Bonds $5,000 Interest Rates 4.00% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Amalgamated Fiscal Year Interest Totals Jun. 1 Amount Dec. 1 Amount 2023 $440,000 157,400 597,400 2023 78,700 2022 78,700 2024 460,000 139,800 599,800 2024 69,900 2023 69,900 2025 475,000 121,400 596,400 2025 60,700 2024 60,700 2026 215,000 102,400 317,400 2026 51,200 2025 51,200 2027 220,000 93,800 313,800 2027 46,900 2026 46,900 2028 230,000 85,000 315,000 2028 42,500 2027 42,500 2029 240,000 75,800 315,800 2029 37,900 2028 37,900 2030 250,000 66,200 316,200 2030 33,100 2029 33,100 2031 260,000 56,200 316,200 2031 28,100 2030 28,100 2032 270,000 45,800 315,800 2032 22,900 2031 22,900 2033 280,000 35,000 315,000 2033 17,500 2032 17,500 2034 290,000 23,800 313,800 2034 11,900 2033 11,900 2035 305,000 12,200 317,200 2035 6,100 2034 6,100 3,935,000 1,014,800 4,949,800 507,400 507,400 Governmental 1,041,067 268,516 1,309,583 134,258 134,258 Business-Type 2,893,933 746,284 3,640,217 373,142 373,142 3,935,000 1,014,800 4,949,800 507,400 507,400 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 167 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Refunding (Alternate Revenue Source) Bonds of 2016 April 30, 2022 Date of Issue October 27,2016 Date of Maturity December 30, 2022 Authorized Issue $5,800,000 Denomination of Bonds $5,000 Interest Rates 4.00% to 4.25% Interest Dates June 30 and December 30 Principal Maturity Date December 30 Payable at Amalgamated Fiscal Year Interest Totals Jun. 30 Amount Dec. 30 Amount 2023 $915,000 27,450 942,450 2022 13,725 2022 13,725 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 168 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Alternate Revenue Source Bonds of 2021 April 30, 2022 Date of Issue May 27, 2021 Date of Maturity December 30, 2040 Authorized Issue $8,250,000 Denomination of Bonds $5,000 Interest Rate 2.00% to 4.00% Interest Dates June 30 and December 30 Principal Maturity Date December 30 Payable at Amalgamated Fiscal Year Interest Totals Jun. 30 Amount Dec. 30 Amount 2023 $320,000 223,900 543,900 2022 111,950 2022 111,950 2024 330,000 211,100 541,100 2023 105,550 2023 105,550 2025 345,000 197,900 542,900 2024 98,950 2024 98,950 2026 360,000 184,100 544,100 2025 92,050 2025 92,050 2027 375,000 169,700 544,700 2026 84,850 2026 84,850 2028 390,000 154,700 544,700 2027 77,350 2027 77,350 2029 405,000 139,100 544,100 2028 69,550 2028 69,550 2030 420,000 122,900 542,900 2029 61,450 2029 61,450 2031 435,000 106,100 541,100 2030 53,050 2030 53,050 2032 445,000 97,400 542,400 2031 48,700 2031 48,700 2033 455,000 88,500 543,500 2032 44,250 2032 44,250 2034 465,000 79,400 544,400 2033 39,700 2033 39,700 2035 475,000 70,100 545,100 2034 35,050 2034 35,050 2036 480,000 60,600 540,600 2035 30,300 2035 30,300 2037 490,000 51,000 541,000 2036 25,500 2036 25,500 2038 500,000 41,200 541,200 2037 20,600 2037 20,600 2039 510,000 31,200 541,200 2038 15,600 2038 15,600 2040 520,000 21,000 541,000 2039 10,500 2039 10,500 2041 530,000 10,600 540,600 2040 5,300 2040 5,300 8,250,000 2,060,500 10,310,500 1,030,250 1,030,250 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 169 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements General Obligation Refunding Alternate Revenue Source Bonds of 2022 April 30, 2022 Date of Issue January 6, 2022 Date of Maturity December 1, 2025 Authorized Issue $5,170,000 Denomination of Bonds $5,000 Interest Rates 1.142% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Amalgamated Fiscal Year Interest Totals Jun. 1 Amount Dec. 1 Amount 2023 $1,270,000 58,058 1,328,058 2022 28,537 2022 29,521 2024 1,280,000 44,538 1,324,538 2023 22,269 2023 22,269 2025 1,300,000 29,920 1,329,920 2024 14,960 2024 14,960 2026 1,320,000 15,074 1,335,074 2025 7,537 2025 7,537 5,170,000 147,590 5,317,590 73,303 74,287 Governmental 1,010,000 28,757 1,038,757 14,283 14,475 Business-Type 4,160,000 118,833 4,278,833 59,020 59,812 5,170,000 147,590 5,317,590 73,303 74,287 Principal CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on 170 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Long-Term Debt Requirements Illinois Rural Bond Bank Debt Certificates of 2003A April 30, 2022 Date of Issue September 24, 2003 Date of Maturity February 1, 2023 Authorized Issue $2,035,000 Denomination of Bonds $5,000 Interest Rates 1.60% to 5.20% Interest Dates August 1 and February 1 Principal Maturity Date February 1 Payable at US National Bank Assoc. Fiscal Year Interest Totals Aug. 1 Amount Feb. 1 Amount 2023 $155,000 8,060 163,060 2022 4,030 2023 4,030 CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on Principal 171 These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. STATISTICAL SECTION (Unaudited) This part of the comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Financial Trends Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue sources. Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 172 UNITED CITY OF YORKVILLE, ILLINOIS Net Position by Component - Last Ten Fiscal Years* April 30, 2022 (Unaudited) See Following Page 173 UNITED CITY OF YORKVILLE, ILLINOIS Net Position by Component - Last Ten Fiscal Years* April 30, 2022 (Unaudited) 2014 2015 2016 Governmental Activities Net Investment in Capital Assets $62,000,588 63,873,210 66,706,243 70,624,870 Restricted 3,537,867 1,946,088 2,744,103 3,064,646 Unrestricted 3,341,127 3,566,727 3,328,570 (6,321,934) Total Governmental Activities Net Position 68,879,582 69,386,025 72,778,916 67,367,582 Business-Type Activities Net Investment in Capital Assets 31,719,100 34,717,042 46,482,812 49,232,266 Restricted - - - - Unrestricted 13,502,177 13,015,100 1,891,407 2,346,622 Total Business-Type Activities Net Position 45,221,277 47,732,142 48,374,219 51,578,888 Primary Government Net Investment in Capital Assets 93,719,688 98,590,252 113,189,055 119,857,136 Restricted 3,537,867 1,946,088 2,744,103 3,064,646 Unrestricted 16,843,304 16,581,827 5,219,977 (3,975,312) Total Primary Government Net Position 114,100,859 117,118,167 121,153,135 118,946,470 * Accrual Basis of Accounting Note: The City implemented GASB Statement No. 68 for the year ended April 30, 2016. 2013 174 2017 2018 2019 2020 2021 2022 74,001,408 83,186,083 83,800,089 86,397,801 90,458,186 93,931,218 2,634,940 1,992,274 1,741,515 1,862,586 2,083,335 7,859,306 (6,198,767) (8,300,460) (7,317,467) (8,257,280) (6,122,164) (5,482,448) 70,437,581 76,877,897 78,224,137 80,003,107 86,419,357 96,308,076 53,490,328 57,257,183 58,098,381 55,429,397 58,409,514 60,848,375 - - - - - - 3,158,076 4,884,605 6,235,797 12,763,017 12,920,276 12,983,636 56,648,404 62,141,788 64,334,178 68,192,414 71,329,790 73,832,011 127,491,736 140,443,266 141,898,470 141,827,198 148,867,700 154,779,593 2,634,940 1,992,274 1,741,515 1,862,586 2,083,335 7,859,306 (3,040,691) (3,415,855) (1,081,670) 4,505,737 6,798,112 7,501,188 127,085,985 139,019,685 142,558,315 148,195,521 157,749,147 170,140,087 175 UNITED CITY OF YORKVILLE, ILLINOIS Changes in Net Position - Last Ten Fiscal Years* April 30, 2022 (Unaudited) 2014 2015 2016 2017 2018 2019 2020 2021 2022 ** Expenses Governmental Activities General Government $3,121,857 5,808,954 4,075,153 4,533,840 4,467,831 3,976,577 5,023,227 6,213,208 5,960,831 4,822,508 Public Safety 3,750,318 918,131 4,393,482 6,073,977 6,053,696 5,689,480 6,008,959 6,526,618 982,014 1,017,179 Community Development 356,689 2,029,523 592,588 649,507 734,317 629,894 869,044 816,350 2,513,280 2,471,380 Public Works 2,983,200 3,874,698 3,140,446 3,955,539 4,450,509 6,236,169 4,124,935 4,874,549 5,733,468 5,893,447 Library 932,748 407,537 930,024 877,154 930,739 941,123 974,154 1,017,437 828,098 1,044,496 Parks and Recreation 1,812,483 3,444,587 2,381,698 2,225,512 2,003,935 2,432,818 2,963,434 2,678,769 5,097,124 5,545,928 Interest on Long-Term Debt 691,551 698,519 611,243 540,506 570,061 536,177 500,169 464,883 409,695 627,947 Total Governmental Activities Expenses 13,648,846 17,181,949 16,124,634 18,856,035 19,211,088 20,442,238 20,463,922 22,591,814 21,524,510 21,422,885 Business-Type Activities Water 2,638,252 1,595,266 2,792,755 3,257,504 3,251,836 3,271,956 3,256,582 1,762,508 1,740,041 1,632,962 Sewer 1,630,023 2,710,511 1,704,058 1,789,770 1,701,742 1,806,076 1,589,599 3,271,485 3,405,189 3,630,501 Recreation Center 592,707 232,882 - - - - - - - - Total Business-Type Activities Expenses 4,860,982 4,538,659 4,496,813 5,047,274 4,953,578 5,078,032 4,846,181 5,033,993 5,145,230 5,263,463 Total Primary Government Expenses 18,509,828 21,720,608 20,621,447 23,903,309 24,164,666 25,520,270 25,310,103 27,625,807 26,669,740 26,686,348 Program Revenues Governmental Activities Charges for Services General Government 1,751,309 2,381,788 2,885,990 3,072,590 3,222,388 3,629,476 3,798,007 3,637,639 5,246,355 3,508,715 Public Safety - - - - - - - - - - Public Works - - - - - - - - - 1,182,864 Library 58,794 74,037 44,522 53,372 71,213 123,156 125,800 129,530 113,930 121,557 Parks and Recreation 265,614 299,478 352,714 408,469 455,675 453,466 579,155 527,941 357,208 549,231 Operating Grants/Contributions 696,058 1,135,659 943,410 774,856 610,480 694,321 854,662 888,037 3,037,020 2,834,644 Capital Grants/Contributions 3,317,256 1,229,829 768,423 3,317,330 3,814,671 6,448,555 1,011,418 3,270,712 1,815,564 1,131,958 Total Governmental Activities Program Revenues 6,089,031 5,120,791 4,995,059 7,626,617 8,174,427 11,348,974 6,369,042 8,453,859 10,570,077 9,328,969 Business-Type Activities Charges for Services Water 2,823,357 2,394,494 2,626,114 3,624,374 4,127,783 4,655,750 4,557,352 4,440,881 1,731,961 1,714,066 Sewer 1,358,420 1,130,954 1,186,389 1,388,258 1,390,806 1,688,339 1,552,159 1,601,247 5,062,645 4,944,694 Recreation 493,617 44,891 - - - - - - - - Operating Grants/Contributions - - - - - - - - - - Capital Grants/Contributions 4,829,491 1,658,648 6,805 2,029,848 3,257,187 3,945,565 - 1,994,526 1,124,323 340,549 Total Business-Type Activities Program Revenues 9,504,885 5,228,987 3,819,308 7,042,480 8,775,776 10,289,654 6,109,511 8,036,654 7,918,929 6,999,309 Total Primary Government Program Revenues 15,593,916 10,349,778 8,814,367 14,669,097 16,950,203 21,638,628 12,478,553 16,490,513 18,489,006 16,328,278 2013 176 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ** Net (Expense) Revenue Governmental Activities $(7,559,815) (12,061,158) (11,129,575) (11,229,418) (11,036,661) (9,093,264) (14,094,880) (14,137,955) (10,954,433) (12,093,916) Business-Type Activities 4,643,903 690,328 (677,505) 1,995,206 3,822,198 5,211,622 1,263,330 3,002,661 2,773,699 1,735,846 Total Primary Government Net (Expense) Revenue (2,915,912) (11,370,830) (11,807,080) (9,234,212) (7,214,463) (3,881,642) (12,831,550) (11,135,294) (8,180,734) (10,358,070) General Revenues and Other Changes in Net Position Governmental Activities Taxes Property 4,743,599 4,670,934 4,850,981 4,901,983 4,899,485 4,925,489 5,041,762 5,195,891 5,248,398 5,544,463 Sales 4,409,926 4,573,026 4,782,712 4,904,967 5,200,763 5,327,756 5,429,231 5,635,945 6,341,989 7,933,942 Income 1,587,324 1,613,102 1,735,422 1,715,155 1,602,410 1,640,291 1,966,699 1,870,977 2,470,986 3,175,556 Utility 1,553,693 1,633,242 1,600,296 1,585,758 1,615,153 1,587,270 1,647,511 1,545,821 1,527,572 1,707,542 Other 922,439 988,822 1,127,859 1,265,439 1,331,191 1,445,549 1,600,502 1,652,074 1,668,294 2,173,425 Development Fees - - - - - - - - - - Interest Income (Loss)16,368 14,895 (176,911) 9,828 30,481 85,356 154,071 239,155 15,488 (24,510) Miscellaneous 690,456 737,693 1,736,079 761,857 561,229 705,968 1,494,246 456,998 376,595 2,096,524 Transfers - (1,626,263) (1,133,972) (1,134,654) (1,134,052) (184,099) (921,615) (679,936) (278,639) (624,307) Total Governmental Activities 13,923,805 12,605,451 14,522,466 14,010,333 14,106,660 15,533,580 16,412,407 15,916,925 17,370,683 21,982,635 Business-Type Activities Property Taxes 1,883,730 - - - - - - - - - Interest Income (Loss)9,542 11,491 11,206 6,685 13,623 36,002 28,777 67,934 1,777 (24,493) Miscellaneous (1,624,872) 182,783 174,404 64,678 99,643 61,661 84,652 107,705 83,261 166,561 Transfers - 1,626,263 1,133,972 1,134,654 1,134,052 184,099 921,615 679,936 278,639 624,307 Total Business-Type Activities 268,400 1,820,537 1,319,582 1,206,017 1,247,318 281,762 1,035,044 855,575 363,677 766,375 Total Primary Government 14,192,205 14,425,988 15,842,048 15,216,350 15,353,978 15,815,342 17,447,451 16,772,500 17,734,360 22,749,010 Changes in Net Position Governmental Activities 6,363,990 544,293 3,392,891 2,780,915 3,069,999 6,440,316 2,317,527 1,778,970 6,416,250 9,888,719 Business-Type Activities 4,912,303 2,510,865 642,077 3,201,223 5,069,516 5,493,384 2,298,374 3,858,236 3,137,376 2,502,221 Total Primary Government 11,276,293 3,055,158 4,034,968 5,982,138 8,139,515 11,933,700 4,615,901 5,637,206 9,553,626 12,390,940 * Accrual Basis of Accounting ** In 2022, expenses related to non-capital costs in the Citywide Captial Projects Fund were moved from the General Government function to the Public Works function.177 UNITED CITY OF YORKVILLE, ILLINOIS Fund Balances of Governmental Funds - Last Ten Fiscal Years* 2014 2015 2016 General Fund Nonspendable $139,985 156,680 145,012 138,312 Restricted - - 984,526 1,216,288 Unassigned 4,083,835 3,703,901 3,696,520 4,337,106 Total General Fund 4,223,820 3,860,581 4,826,058 5,691,706 All Other Governmental Funds Nonspendable 34,586 34,385 33,284 37,376 Restricted 3,549,913 1,951,407 1,767,419 1,848,358 Committed 305,804 527,635 537,853 480,034 Assigned 504,314 824,301 4,788,775 3,004,149 Unassigned (571,615) (534,087) (624,928) (584,901) Total All Other Governmental Funds 3,823,002 2,803,641 6,502,403 4,785,016 Total All Governmental Funds 8,046,822 6,664,222 11,328,461 10,476,722 * Modified Accrual Basis of Accounting April 30, 2022 (Unaudited) 2013 178 2017 2018 2019 2020 2021 2022 150,464 83,305 85,744 63,193 152,003 162,600 984,514 726,019 458,685 203,874 - - 5,079,111 5,687,049 6,335,394 7,244,993 9,020,351 10,464,500 6,214,089 6,496,373 6,879,823 7,512,060 9,172,354 10,627,100 37,664 16,392 18,266 13,515 38,268 51,745 1,650,426 1,266,255 1,282,830 1,658,712 2,083,335 7,859,306 421,586 467,816 435,216 398,488 43,801 - 1,625,937 743,997 1,125,471 1,099,847 1,605,360 6,941,081 (511,528) (1,441,197) (1,260,507) (2,469,332) (2,716,429) (2,871,244) 3,224,085 1,053,263 1,601,276 701,230 1,054,335 11,980,888 9,438,174 7,549,636 8,481,099 8,213,290 10,226,689 22,607,988 179 UNITED CITY OF YORKVILLE, ILLINOIS Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years* 2014 2015 2016 Revenues Taxes $6,767,061 5,176,481 11,830,762 12,103,254 Intergovernmental 7,545,978 9,469,590 3,312,823 3,180,626 Licenses, Permits and Fees 400,718 393,746 379,242 493,619 Charges for Services 1,479,712 2,169,670 2,749,195 2,897,718 Fines and Forfeitures 195,287 191,887 154,789 143,094 Interest Income (Loss)16,368 14,895 (176,911) 9,828 Miscellaneous 690,456 737,693 1,736,079 761,857 Total Revenues 17,095,580 18,153,962 19,985,979 19,589,996 Expenditures General Government 3,498,104 5,685,541 3,910,635 3,928,055 Public Safety 3,568,665 3,834,655 4,337,573 4,689,129 Community Development 365,188 407,537 592,588 649,507 Public Works 1,841,795 2,207,757 2,361,827 2,460,192 Library 752,373 737,191 748,905 694,441 Parks and Recreation 1,450,824 1,644,065 2,041,792 1,803,333 Capital Outlay 572,022 2,050,456 3,285,489 3,653,071 Debt Service Principal Retirement 1,025,074 1,099,223 844,112 1,040,880 Interest and Fiscal Charges 663,495 641,673 496,090 604,406 Total Expenditures 13,737,540 18,308,098 18,619,011 19,523,014 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,358,040 (154,136) 1,366,968 66,982 Other Financing Sources (Uses) Disposal of Capital Assets 5,200 16,325 - 48,446 Debt Issuance - 8,053,963 6,670,678 1,627,183 Bond Premium/(Discount)- 115,109 119,680 122,288 Payment to Escrow Agent - (7,787,598) (2,359,115) (1,581,984) Transfers In 1,504,002 2,881,535 1,375,448 1,326,090 Transfers Out (1,504,002) (4,507,798) (2,509,420) (2,460,744) 5,200 (1,228,464) 3,297,271 (918,721) Net Change in Fund Balances 3,363,240 (1,382,600) 4,664,239 (851,739) Debt Service as a Percentage of Noncapital Expenditures 17.159%11.540%9.497%10.293% * Modified Accrual Basis of Accounting ** In 2022, expenses related to non-capital costs in the Citywide Captial Projects Fund were moved from the General Government function to the Public Works function. April 30, 2022 (Unaudited) 2013 180 2017 2018 2019 2020 2021 2022** 12,466,013 12,662,678 12,995,856 13,211,204 13,838,886 16,424,479 3,343,533 3,164,026 4,279,863 3,620,336 6,464,863 6,954,683 706,782 1,016,223 1,208,345 1,128,865 1,475,431 1,296,907 2,888,281 3,047,606 3,176,017 3,078,023 4,125,547 3,854,197 154,213 142,269 118,600 88,222 116,515 211,263 30,481 85,356 154,071 239,155 15,488 (24,510) 561,229 705,968 1,494,246 445,275 362,668 2,096,524 20,150,532 20,824,126 23,426,998 21,811,080 26,399,398 30,813,543 4,293,081 5,036,599 4,946,923 5,921,054 7,752,809 5,264,752 4,907,384 5,302,038 5,356,149 5,818,063 5,686,873 6,019,369 734,317 629,894 869,044 816,350 828,098 1,154,892 2,344,878 2,223,750 2,288,047 2,337,032 2,990,739 3,224,616 748,026 758,411 791,441 834,724 799,301 834,944 1,936,083 2,632,896 2,562,757 2,224,304 2,478,660 2,381,042 3,656,703 5,037,740 2,782,137 1,516,238 1,618,216 6,534,677 1,149,185 1,195,669 1,462,304 1,485,368 1,540,392 1,597,659 563,433 514,068 515,118 474,199 426,199 616,595 20,333,090 23,331,065 21,573,920 21,427,332 24,121,287 27,628,546 (182,558) (2,506,939) 1,853,078 383,748 2,278,111 3,184,997 278,062 2,500 - 11,723 13,927 35,598 - 800,000 - 548,273 - 9,260,000 - - - - - 525,011 - - - (531,617) - 1,524,658 2,753,031 2,213,618 2,023,602 3,384,573 8,729,848 (2,658,710) (2,937,130) (3,135,233) (2,703,538) (3,663,212) (9,354,155) (855,990) 618,401 (921,615) (651,557) (264,712) 9,196,302 (1,038,548) (1,888,538) 931,463 (267,809) 2,013,399 12,381,299 9.793%9.228%10.629%9.769%9.673%10.624% ** In 2022, expenses related to non-capital costs in the Citywide Captial Projects Fund were moved from the General Government function to the Public Works function. 181 UNITED CITY OF YORKVILLE, ILLINOIS Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years April 30, 2022 (Unaudited) Tax Fiscal Levy Year Year 2013 2012 $332,551,186 $2,568,351 $101,264,981 2014 2013 311,316,069 2,618,131 99,434,012 2015 2014 310,655,449 2,743,283 90,744,145 2016 2015 320,914,471 2,861,401 84,529,087 2017 2016 354,408,067 2,963,511 84,099,111 2018 2017 386,855,913 3,083,218 83,975,023 2019 2018 416,780,620 3,202,140 83,874,064 2020 2019 450,745,939 3,259,791 83,974,878 2021 2020 484,024,398 3,360,133 79,649,698 2022 2021 524,668,429 3,524,082 79,815,145 Data Source: Office of the County Clerk Note: Property is assess at 33% of actual value. PropertyPropertyFarm Residential Commercial 182 Estimated Actual Value Total of Taxable Direct Tax Property Rate $6,720,962 $17,328 $443,122,808 $1,329,368,424 0.7490 6,656,792 17,328 420,042,332 1,260,126,996 0.7738 12,668,201 17,328 416,828,406 1,250,485,218 0.7581 13,000,039 17,329 421,322,327 1,263,966,981 0.7361 14,944,561 17,328 456,432,578 1,369,297,734 0.6795 15,349,880 17,328 489,281,362 1,467,844,086 0.6471 15,386,433 60,243 519,303,500 1,557,910,500 0.6242 15,509,884 89,004 553,579,496 1,660,738,488 0.6029 15,586,411 75,859 582,696,499 1,748,089,497 0.5880 15,512,284 77,628 623,597,568 1,870,792,704 0.5710 Property ValueProperty Total Taxable AssessedRailroadIndustrial 183 UNITED CITY OF YORKVILLE, ILLINOIS Principal Property Taxpayers - Current Tax Levy Year and Nine Tax Levy Years Ago April 30, 2022 (Unaudited) Percentage Percentage of Total City of Total City Taxable Taxable Assessed Assessed Taxpayer Rank Value Rank Value Wrigley Manufacturing Co., LLC $4,666,112 1 0.75%$2,893,422 6 0.65% Yorkville Marketplace LLC 3,741,270 2 0.60%3,884,596 4 0.88% Menard, Inc 3,134,222 3 0.50%7,804,600 1 1.76% Fox River Harmony Housing LLC 2,779,144 4 0.45% Rainy Properties LLC 2,406,761 5 0.39% York Meadows LLC 2,286,011 6 0.37%1,686,666 10 0.38% Cedarhurst of Yorkville Real Estate LLC 2,005,518 7 0.32% Target Corporation 1,900,000 8 0.30%3,104,272 5 0.70% Alliance Development Corporation 1,866,429 9 0.30% Kendall Holdings 1,566,691 10 0.25% Copley Ventures, Inc.7,338,864 2 1.66% Cannonball LLC 4,596,172 3 1.04% Boombah Properties LLC 2,269,648 7 0.51% Home Depot USA Inc.1,832,215 8 0.41% Prime Yorkville LLC 1,803,983 9 0.41% 26,352,158 4.23%37,214,438 8.40% Data Source: Office of the County Clerk Assessed Assessed Value Value 2021 Tax Levy 2012 Tax Levy Taxable Taxable 184 UNITED CITY OF YORKVILLE, ILLINOIS Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years April 30, 2022 (Unaudited) See Following Page 185 UNITED CITY OF YORKVILLE, ILLINOIS Direct and Overlapping Property Tax Rates - Last Ten Tax Levy Years April 30, 2022 (Unaudited) 2012 2013 2014 City Direct Rates Corporate 0.2354 0.2484 0.2503 Bonds and Interest 0.1097 0.0797 0.0397 IMRF 0.1016 0.1071 0.1080 Police Protection 0.0790 0.0833 0.0840 Police Pension 0.1229 0.1493 0.1694 Audit 0.0068 0.0071 0.0072 Liability Insurance 0.0090 0.0095 0.0096 Social Security 0.0677 0.0714 0.0720 School Crossing Guard 0.0056 0.0060 0.0060 Revenue Recapture - - - Unemployment Insurance 0.0113 0.0119 0.0120 Total Direct Rates 0.7490 0.7738 0.7581 Overlapping Rates Kendall County 0.7446 0.8009 0.8085 Kendall County Forest Preserve 0.1495 0.1640 0.1826 Bristol Township 0.3934 0.4239 0.4172 Bristol - Kendall Fire District 0.7356 0.7718 0.8041 Yorkville Community Unit School District #115 6.7561 7.4081 7.7083 Waubonsee Community College District #516 0.5306 0.5691 0.5973 Yorkville Public Library 0.3242 0.3241 0.3299 Total Overlapping Rates 9.6340 10.4619 10.8479 Total Direct and Overlapping Rates 10.3830 11.2357 11.6060 Data Source: Office of the County Clerk Notes: (1) Rates are per $100 of Assessed Value. (2) Representative tax rates for other government units are from Bristol Township 186 2015 2016 2017 2018 2019 2020 2021 0.2380 0.2197 0.2049 0.1931 0.1811 0.1694 0.1579 0.0113 - - - - - - - - - - - - - 0.2407 0.1999 0.2003 0.1709 0.1562 0.1484 0.1596 0.1959 0.2117 0.1969 0.2140 0.2223 0.2291 0.2141 0.0069 0.0066 0.0061 0.0057 0.0054 0.0052 0.0048 0.0091 0.0088 0.0082 0.0077 0.0072 0.0069 0.0064 0.0342 0.0329 0.0307 0.0289 0.0271 0.0258 0.0241 - - - 0.0039 0.0036 0.0034 0.0032 - - - - - - 0.0009 - - - - - - - 0.7361 0.6795 0.6471 0.6242 0.6029 0.5880 0.5710 0.7909 0.7477 0.7088 0.6728 0.6409 0.6232 0.6016 0.1787 0.1755 0.1752 0.1503 0.1542 0.1582 0.1620 0.3960 0.3408 0.2787 0.2618 0.0952 0.0912 0.1535 0.8077 0.7592 0.7425 0.7300 0.7202 0.7159 0.7050 7.8713 7.5634 7.3444 7.1852 7.0338 6.9567 6.7867 0.5885 0.5601 0.5514 0.5413 0.5273 0.4378 0.4698 0.3287 0.3080 0.2994 0.2892 0.2829 0.2775 0.2678 10.9618 10.4547 10.1004 9.8306 9.4545 9.2605 9.1465 11.6979 11.1342 10.7475 10.4548 10.0574 9.8485 9.7175 187 UNITED CITY OF YORKVILLE, ILLINOIS Property Tax Levies and Collections - Last Ten Fiscal Years April 30, 2022 (Unaudited) Tax Fiscal Levy Percentage Percentage Year Year of Levy of Levy 2013 2011*$3,452,742 $3,435,616 99.50%- $3,435,616 99.50% 2014 2012*3,318,990 3,193,672 96.22%- 3,193,672 96.22% 2015 2013*3,250,204 3,234,448 99.52%- 3,234,448 99.52% 2016 2014*3,159,892 3,146,278 99.57%- 3,146,278 99.57% 2017 2015*3,101,185 3,071,484 99.04%- 3,071,484 99.04% 2018 2016 3,101,322 3,093,892 99.76%- 3,093,892 99.76% 2019 2017 3,165,651 3,149,635 99.49%- 3,149,635 99.49% 2020 2018 3,241,457 3,231,926 99.71%- 3,231,926 99.71% 2021 2019 3,337,703 3,327,913 99.71%- 3,327,913 99.71% 2022 2020 3,426,430 3,415,461 99.68%- 3,415,461 99.68% Data Source: Office of the County Treasurer *** Information for collections in subsequent years is unavailable. Note: Property in the City is reassessed each year. Property is assessed at 33% of actual value. ** Includes property taxes collected in the current year that may be attributable to prior years. These collections, if any, are immaterial as 99% or greater of the current year's tax levy has historically been collected during the respective fiscal year. Additionally, information to associate any non-current tax collections to a specific tax levy is not readily available. Taxes Collected within the Collections Levied for Fiscal Year of the Levy in Total Collections to Date ** Subsequent Year Amount Years***Amount the Fiscal * The 2011, 2012, 2013, 2014 and 2015 tax levy extended amounts include bonds and interest in the amount of $723,689, $486,150, $334,816, $165,564 & $47,525, respectively, that were previously abated. 188 UNITED CITY OF YORKVILLE, ILLINOIS Estimate of Taxable Sales by Category - Last Ten Calendar Years April 30, 2022 (Unaudited) See Following Page 189 UNITED CITY OF YORKVILLE, ILLINOIS Estimate of Taxable Sales by Category - Last Ten Calendar Years April 30, 2022 (Unaudited) 2013 2014 General Merchandise*$571,210 594,685 593,361 Food 259,509 266,937 289,897 Drinking and Eating Places 279,649 293,131 299,300 Apparel*85,797 88,739 87,834 Furniture & H.H. & Radio 7,727 3,370 2,710 Lumber, Building Hardware 362,987 413,711 446,440 Automobile and Filling Stations 178,282 156,091 146,062 Drugs and Miscellaneous Retail 582,001 597,615 566,665 Agriculture and All Others 64,558 89,359 161,114 Manufacturers 78,346 89,239 90,998 Total 2,470,066 2,592,877 2,684,381 City Direct Sales Tax Rate 1.00%1.00%1.00% Data Source: Illinois Department of Revenue - Local Tax Allocation Division Data available for calendar year only. * Data by category is not available from the State of Illinois for categories with less than four taxpayers. However, they are included in the totals. 2012 190 2015 2016 2017 2018 2019 2020 2021 608,996 597,618 581,090 596,620 565,194 553,360 672,669 385,034 377,825 417,028 452,298 485,658 522,083 552,205 332,752 376,762 401,725 413,204 429,128 454,292 606,299 95,975 99,354 94,459 99,121 49,305 34,163 65,116 2,597 2,373 1,590 1,902 1,150 891 6,702 470,357 510,521 539,760 558,358 592,844 745,531 802,407 160,717 188,830 187,127 220,232 251,785 295,001 358,029 362,225 506,123 487,129 484,825 527,795 554,512 1,010,887 232,923 135,378 213,964 219,283 239,758 221,374 251,437 102,011 116,723 36,167 30,503 30,270 32,510 45,663 2,753,587 2,911,507 2,960,039 3,076,346 3,172,887 3,413,717 4,371,414 1.00%1.00%1.00%1.00%1.00%1.00%1.00% 191 UNITED CITY OF YORKVILLE, ILLINOIS Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years April 30, 2022 (Unaudited) Local City County Total Fiscal State Sales Tax Non-Home Rule County Public Safety Sales Tax Year Sales Tax to City Sales Tax Sales Tax Property Rate 2013 5.00%1.00%1.00%0.25%1.00%8.25% 2014 5.00%1.00%1.00%0.25%1.00%8.25% 2015 5.00%1.00%1.00%0.25%1.00%8.25% 2016 5.00%1.00%1.00%0.25%1.00%8.25% 2017 5.00%1.00%1.00%0.25%1.00%8.25% 2018 5.00%1.00%1.00%0.25%1.00%8.25% 2019 5.00%1.00%1.00%0.25%1.00%8.25% 2020 5.00%1.00%1.00%0.25%1.00%8.25% 2021 5.00%1.00%1.00%0.25%1.00%8.25% 2022 5.00%1.00%1.00%0.25%1.00%8.25% Data Source: Illinois Department of Revenue The above tax rates are for General Merchandise. 192 UNITED CITY OF YORKVILLE, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years April 30, 2022 (Unaudited) See Following Page 193 UNITED CITY OF YORKVILLE, ILLINOIS Ratios of Outstanding Debt by Type - Last Ten Fiscal Years April 30, 2022 (Unaudited) Fiscal Year 2013 $13,025,000 $- $855,601 $1,890 $17,905,000 2014 12,520,000 - 940,341 1,890 16,855,000 2015 16,120,000 - 901,907 1,890 15,700,000 2016 15,325,990 - 938,210 1,890 18,555,000 2017 14,252,531 - 820,482 1,890 20,613,544 2018 13,138,403 - 1,500,822 1,890 18,605,065 2019 11,967,952 - 1,170,850 1,890 16,503,368 2020 10,718,207 - 926,655 1,890 13,685,179 2021 9,406,558 - 673,426 1,890 10,841,111 2022 17,781,130 - 418,222 1,890 8,455,165 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See the Schedule of Demographic and Economic Statistics for personal income and population data. Governmental Activities Business-Type Activities Bonds Certificates Bonds General General Revenue Source Commitments Alternative Obligation and Payable Other Revenue SourceDebt Obligation and Alternative Notes 194 Percentage of Personal Income (1) $7,465,000 $2,060,997 $1,952,534 $43,266,022 9.25%$2,470 6,680,000 1,880,084 1,919,909 40,797,224 8.70%2,291 5,865,000 1,694,504 1,942,898 42,226,199 8.72%2,325 5,220,000 1,504,138 2,000,619 43,545,847 8.38%2,360 1,230,000 1,308,862 2,061,951 40,289,260 7.61%2,139 1,010,000 1,108,550 2,126,965 37,491,695 6.95%1,971 580,000 903,070 2,194,902 33,322,032 5.82%1,656 445,000 745,816 2,272,473 28,795,220 4.75%1,397 305,000 638,766 5,169,097 27,035,848 4.25%1,256 155,000 529,024 5,288,402 32,628,833 4.95%1,515 Business-Type Activities Other Per Capita (1) Debt Primary GovernmentCertificatesCommitmentsPayable Total Loans IEPA 195 UNITED CITY OF YORKVILLE, ILLINOIS April 30, 2022 (Unaudited) Percentage of Total Taxable Assessed Fiscal Value of Year Property (1) 2013 $30,930,000 $57,844 $30,872,156 6.97%$1,762 2014 29,375,000 - 29,375,000 6.99%1,650 2015 31,820,000 - 31,820,000 7.63%1,752 2016 33,880,990 - 33,880,990 8.04%1,836 2017 34,866,075 - 34,866,075 7.64%1,851 2018 31,743,468 - 31,743,468 6.49%1,669 2019 28,471,320 - 28,471,320 5.48%1,415 2020 24,403,386 - 24,403,386 4.41%1,184 2021 20,247,669 - 20,247,669 3.47%940 2022 26,236,295 - 26,236,295 4.21%1,218 Note: Details regarding the City'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 personal income and population data. Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years General Obligation and Alternative Bonds Total Per Capita (2) Less: Amounts Debt Service Available in Revenue Source 196 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Direct and Overlapping Governmental Activities Debt (2) Percentage of (3) Debt (1)Applicable Governmental Unit to City * United City of Yorkville $18,201,242 100.000%$18,201,242 Overlapping Debt County of Kendall (4)18,435,000 16.49%3,039,932 Forest Preserve District of Kendall County 26,925,000 16.49%4,439,933 Yorkville Community Unit School District #115 55,725,000 59.81%33,329,123 Waubonsee Community College District #516 34,555,000 5.61%1,938,536 Joliet Junior College District #525 117,255,000 0.00%2,111 Plano Community Unit School District #88 36,060,000 0.56%201,936 Newark Community Consolidated School District #66 765,000 0.47%3,596 Total Overlapping Debt 289,720,000 42,955,164 Total Direct and Overlapping Debt 307,921,242 61,156,406 Data Source: Kendall County Tax Extension Department * Determined by ratio of assessed valuation of property subject to taxation in the City to valuation of property subject to taxation in overlapping unit. Notes: (1) As of May 16, 2022. (2) Percentages are based on 2021 EAV's, the latest available. (3) The United City of Yorkville has $63,321,968 in outstanding non-committal debt which is expected to be paid from sources other than City revenues. (4) Includes Public Building Commission. Share of Gross Debt Debt April 30, 2022 (Unaudited) City's 197 UNITED CITY OF YORKVILLE, ILLINOIS Schedule of Legal Debt Margin - Last Ten Fiscal Years 2014 2015 2016 Legal Debt Limit $38,219,342 36,228,651 35,951,450 36,339,051 Total Net Debt Applicable to Limit 22,945,000 19,290,000 14,855,000 13,420,000 Legal Debt Margin 15,274,342 16,938,651 21,096,450 22,919,051 Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 60.04%53.25%41.32%36.93% April 30, 2022 (Unaudited) 2013 198 2017 2018 2019 2019 2021 2022 39,367,310 42,200,517 44,789,927 47,746,232 50,257,573 53,785,290 6,835,000 6,045,000 5,000,000 4,230,000 3,405,000 2,535,000 32,532,310 36,155,517 39,789,927 43,516,232 46,852,573 51,250,290 17.36%14.32%11.16%8.86%6.78%4.71% Assessed Value $623,597,568 Bonded Debt Limit - 8.625% of Assessed Value 53,785,290 Amount of Debt Applicable to Limit 2,535,000 Legal Debt Margin 51,250,290 Legal Debt Margin Calculation for Fiscal Year 2022 199 UNITED CITY OF YORKVILLE, ILLINOIS Governmental Activities Fiscal Year Coverage 2013 $364,742 $- $402,932 $2,490,503 $3,258,177 $460,000 $249,609 4.59 2014 315,790 - - 2,586,460 2,902,250 400,000 230,917 4.60 2015 327,984 418,509 - 2,704,651 3,451,144 225,000 56,789 12.25 2016 164,852 393,680 - 2,778,116 3,336,648 255,000 53,550 10.81 2017 215,360 359,947 - 2,940,976 3,516,283 270,000 50,150 10.98 2018 198,294 334,595 - 3,002,133 3,535,022 275,000 44,750 11.06 2019 198,918 329,742 - 3,070,663 3,599,323 285,000 39,250 11.10 2020 279,643 971,440 - 3,222,256 4,473,339 290,000 34,025 13.81 2021 222,099 1,010,210 - 3,617,361 4,849,670 295,000 28,225 15.00 2022 347,161 1,209,606 - 4,450,012 6,006,779 310,000 19,375 18.24 Notes: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Series 2014, 2014A and 2015A Bonds are payable from revenues from Sales Taxes and incremental taxes, if any, from the Countryside TIF. Series 2014B Bonds are payable from Utility Taxes. Tax Tax Tax Principal InterestTaxRevenue Utility Fuel Sales Pledged-Revenue Coverage - Last Ten Fiscal Years Property/Municipal Debt Service Motor Property Municipal Net Available April 30, 2022 (Unaudited) Incremental 200 UNITED CITY OF YORKVILLE, ILLINOIS Business-Type Activities Fiscal Year Coverage 2013 $4,432,710 $2,895,830 $1,587,324 $1,919,423 $3,124,204 $270,000 $769,100 3.01 2014 3,379,454 1,695,780 1,613,102 1,986,566 5,283,342 1,050,000 759,986 2.92 2015 3,646,020 1,929,555 1,735,422 2,078,061 5,529,948 1,175,000 704,410 2.94 2016 4,493,694 2,386,468 1,715,155 2,126,851 5,949,232 1,245,000 624,002 3.18 2017 4,364,434 2,366,493 1,602,410 2,259,787 5,860,138 1,290,000 592,364 3.11 2018 5,642,966 2,570,417 1,640,291 2,325,623 7,038,463 1,878,991 831,200 2.60 2019 5,571,153 2,331,257 1,966,699 2,358,568 7,565,163 1,982,668 719,080 2.80 2020 5,500,876 2,570,624 1,870,977 2,413,689 7,214,918 2,730,483 602,768 2.16 2021 5,798,153 2,669,714 2,470,986 2,724,628 8,324,053 2,787,837 492,459 2.54 2022 6,175,376 2,906,277 3,175,556 3,483,930 9,928,585 6,512,545 457,580 1.42 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Water and Sewer revenues exclude capital contributions and developer donations. Operating expenses do not include depreciation or amortization expenses. Sales Tax State Income April 30, 2022 (Unaudited) Sewer Revenues Water and Operating Pledged-Revenue Coverage - Last Ten Fiscal Years Principal Interest Less: Debt Service Net Available Revenue Expenses Rule Tax Non-Home 201 UNITED CITY OF YORKVILLE, ILLINOIS School Calendar Population Median Enrollment Unemployment Year (1)Age (1)(2)Rate (3) 2012 17,518 $467,491,704 $49,110 32.9 5,474 5.20% 2013 17,804 468,864,947 49,123 31.1 5,630 8.20% 2014 18,161 484,322,292 50,690 31.6 5,786 6.40% 2015 18,451 519,692,602 54,516 31.6 5,801 4.80% 2016 18,833 529,121,652 55,621 32.3 5,980 5.20% 2017 19,022 539,704,085 58,331 32.3 6,026 4.50% 2018 20,119 572,600,072 61,642 33.7 6,233 3.50% 2019 20,613 605,818,372 64,079 33.7 6,319 3.40% 2020 21,533 636,555,184 67,671 33.3 6,245 8.50% 2021 21,533 658,834,615 70,039 32.7 6,266 5.30% Data Source: (1) U.S. Census Buerau (2) Data provided by School District Administrative Offices (3) Illinois Department of Employment Security, Economic Information and Analysis (4) U.S. Bureau of Economic Analysis: Chicago-Naperville-Elgin Metropolitan Statistical Area Income (4) Demographic and Economic Statistics - Last Ten Calendar Years Personal Income (4) Per Capita Personal April 30, 2022 (Unaudited) 202 UNITED CITY OF YORKVILLE, ILLINOIS Principal Employers - Current Calendar Year and Nine Calendar Years Ago Percentage Percentage of Total of Total City City Employer Rank Employment Rank Employment Raging Waves (Seasonal)400 1 1.86%450 1 2.57% Wrigley Manufacturing Co.400 1 1.86%335 2 1.91% Super Target 265 2 1.23%180 3 1.03% Jewel/Osco 198 3 0.92%130 5 0.74% Menards Mega Store 157 4 0.73%140 4 0.80% Newlywed Foods 134 5 0.62%130 5 0.74% Home Depot 125 6 0.58%85 8 0.49% Boombah, Inc 99 7 0.46%90 7 0.51% Wheatland Title 93 8 0.43%65 9 0.37% Hillside Health Care Center 80 9 0.37%90 7 0.51% Aurora Speciality Textiles 75 10 0.35% Kohl's 115 6 0.66% 2,026 9.41%1,810 10.33% Data Source: City Records and Illinois Manufacturers Directory. April 30, 2022 (Unaudited) Employees Employees 2021 Calendar Year 2012 Calendar Year 203 UNITED CITY OF YORKVILLE, ILLINOIS Full-Time and Part-Time Government Employees by Function - Last Ten Fiscal Years 2013 2014 2015 Full Time General Government Administration 4.0 4.0 4.0 Finance 4.0 4.0 4.0 Community Development 3.0 4.0 4.0 Public Safety Police Officers 26.0 28.0 29.0 Civilians 2.0 3.0 3.0 Public Works Streets 5.3 5.3 5.3 Water 5.3 5.3 5.3 Sewer 3.3 3.3 3.3 Parks & Recreation Parks 8.5 8.5 8.5 Recreation 5.5 4.5 5.5 Library 5.0 5.0 4.0 Part Time General Government Administration 1.0 1.0 - Community Development 2.0 1.0 1.0 Public Safety Police Officers 6.0 5.0 6.0 Civilians 9.0 10.0 9.0 Public Works Streets - - 1.0 Water - - 2.0 Sewer - - - Parks & Recreation Parks 4.0 4.0 7.0 Recreation 16.0 3.0 23.0 Library 26.0 25.0 31.0 Total 135.9 123.9 155.9 Data Source: City Human Resource Department April 30, 2022 (Unaudited) 204 2016 2017 2018 2019 2020 2021 2022 4.0 4.0 5.5 5.5 5.5 5.5 4.5 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 5.0 6.0 6.0 6.0 7.0 29.0 29.0 30.0 27.0 31.0 32.0 32.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 5.3 5.3 5.3 5.3 5.3 5.3 7.3 5.3 5.3 5.3 4.3 5.8 5.8 5.8 3.3 3.3 3.3 2.3 3.8 3.8 1.0 3.8 6.5 7.5 7.5 8.5 7.5 7.5 9.5 5.5 5.5 6.0 6.0 6.0 5.0 5.0 4.0 4.0 4.0 5.0 5.0 4.0 4.0 1.0 1.0 - - - - - 1.0 3.0 2.0 - - - - 5.0 5.0 4.0 3.0 3.0 1.0 1.0 9.0 8.0 9.0 8.0 10.0 3.0 7.0 1.0 1.0 3.0 - 3.0 - - 2.0 1.0 - - 1.0 - - - - - - 1.0 - - 7.0 7.0 7.0 6.0 6.0 1.0 6.0 32.0 35.0 33.0 33.0 48.0 17.0 48.0 27.0 28.0 24.0 23.0 32.0 22.0 29.0 159.0 163.9 160.9 150.0 187.0 126.0 178.0 205 UNITED CITY OF YORKVILLE, ILLINOIS Operating Indicators by Function/Program - Last Ten Fiscal Years 2013 2014 2015 2016 Police Arrests Made 547 390 503 466 Parking Violations 846 628 515 655 Traffic Violations 4,287 1,097 987 1,252 Reports Taken 1,813 1,840 1,788 1,911 Calls for Service 11,860 11,633 12,458 13,727 Community Development Permits Issued 593 576 577 681 Public Works Street Resurfacing (Miles)- 1.69 0.65 2.12 Snow and Ice Control (Tons of Salt)1,081 1,349 1,509 1,490 Pothole Repairs (Tons of Asphalt)336 252 442 610 Water Number of Accounts 6,189 6,135 6,361 6,465 Total Annual Consumption (Cubic Feet)66,241,600 62,743,823 59,385,852 61,736,969 Average Daily Consumption (Cubic Feet)181,484 171,901 162,701 169,142 *Police information is presented on a calendar year basis. Operating indicators for 2022 are thru May. Data Source: Various City Departments April 30, 2022 (Unaudited) 206 2017 2018 2019 2020 2021 2022 602 619 665 401 502 201 * 426 274 170 56 49 45 * 881 1,022 604 6,053 6,050 2,929 * 1,916 2,045 2,022 2,251 2,504 921 * 11,953 12,047 13,043 12,449 13,450 5,752 * 871 1,003 980 2,247 1,975 1,519 6.01 7.51 4.39 3.05 2.35 7.87 1,285 1,748 1,730 1,130 1,786 1,885 511 218 212 202 31 33 6,644 6,805 7,038 7,265 7,492 7,913 64,208,149 68,062,433 68,173,114 66,979,711 73,117,169 77,527,954 175,913 186,472 186,776 183,506 200,321 212,405 207 UNITED CITY OF YORKVILLE, ILLINOIS Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 2013 2014 2015 Public Safety Police Stations 1 1 1 Patrol Units 20 20 22 Public Works Streets (Miles)82 83 84 Traffic Signals 26 26 26 Storm Sewers (Miles)80 83 83 Water Water Mains (Miles)67 68 68 Fire Hydrants 1,327 1,349 1,349 Sewer Sanitary Sewers (Miles)59 60 60 Lift Stations 7 7 7 Data Source: Various City Departments April 30, 2022 (Unaudited) 208 2016 2017 2018 2019 2020 2021 2022 1 1 1 1 1 1 1 20 20 22 21 20 22 23 88 90 95 95 138 140 140 26 26 26 26 26 26 26 90 96 106 106 136 140 141 72 77 85 85 134 137 138 1,415 1,515 1,645 1,647 1,929 1,972 1,981 64 68 74 74 115 117 118 7 7 7 7 7 7 7 209 UNITED CITY OF YORKVILLE, ILLINOIS New Permits and Construction Values - Last Ten Fiscal Years Fiscal Permits Permits Permits Permits Year Issued Issued Issued Issued 2013 9 $3,149,000 83 $12,287,740 - $- 92 $15,436,740 2014 11 3,215,000 73 11,451,799 - - 84 14,666,799 2015 10 38,279,500 72 13,063,555 - - 82 51,343,055 2016 6 1,060,000 98 16,451,049 - - 104 17,511,049 2017 6 2,361,795 159 28,818,289 - - 165 31,180,084 2018 10 25,292,000 165 28,598,202 48 2,640,000 223 56,530,202 2019 8 3,626,350 217 34,439,272 5 324,254 230 38,389,876 2020 11 3,992,100 139 20,410,448 34 3,813,608 184 28,216,156 2021 8 1,044,324 272 41,739,549 118 13,588,257 398 56,372,130 2022 7 3,016,607 210 34,888,478 148 18,461,906 365 56,366,991 Data Source: City Records Construction Value Construction Value Construction Value Construction Value Residential Construction Multi-Family Total April 30, 2022 (Unaudited) Commercial Construction Residential Construction Single-Family 210 United City of Yorkville Audit Overview –Fiscal Year 2022 City Council October 25, 2022 Another award 11th time Certificate of Achievement for Excellence in Financial Reporting Award by the Government Finance Officers Association of the US and Canada in FY 21 General Fund Fund Balance History -2 0 2 4 6 8 10 12 Millions% Fund Balance 41% 28% 37% 42% 43% 43% 47% 51% 49% % Fund Balance -Adjusted 36% 24% 32% 38% 40% 34% 32% 36% 36% General Fund Budget Surplus(Deficit) ($3) ($2) ($1) $0 $1 $2 $3 $4 MillionsFund Close Out Transfers Revenue Line-Item Budgeted Amount Actual Amount Property Tax $3,426,246 $3,415,461 Sales Tax (local)$3,582,508 $4,450,012 Sales Tax (non-home rule)$2,649,473 $3,483,930 Utility Tax $993,340 $1,209,606 Income Tax $2,336,774 $3,175,556 Use Tax $937,660 $798,764 Hotel Tax $80,000 $138,415 Video Gaming Tax $140,000 $252,890 Excise (i.e.,Telecom)Tax $209,000 $199,888 Cable TV Franchise Tax $300,000 $298,048 Revenue performance Page 112 of paper copy (page 119 of pdf copy) Department Budgeted Expenses Actual Expenses Administration $996,443 $822,343 Finance $557,390 $536,226 Police $6,158,904 $6,018,903 Community Development $990,515 $1,154,892 PW -Streets & Sanitation $2,649,285 $2,572,571 Admin Services $3,739,308 $3,782,458 Library Operations $943,018 $834,944 Parks $1,402,523 $1,300,338 Recreation $1,398,535 $1,080,704 Sewer Operations $2,352,904 $2,127,378 Water Operations $6,081,733 $5,316,323 Controlling costs Pages 114 of paper copy (page 121 of pdf copy) -General Fund Page 122 (129 pdf) -Library / Pages 125-126 (132-133 pdf) -Parks & Rec Page 153 (160 pdf) for Sewer / Page 154 (161 pdf) for Water General Fund Performance Budgeted Actual Variance Revenues 18,065,270 23,117,947 5,052,677 Expenditures (15,091,845)(14,887,393)(204,452) Net Transfers (2,973,425)(6,775,808)3,802,383 Surplus(Deficit)-0-1,454,746 1,454,746 Items of Note Fund balance categories and amounts Paper pages 77-78 (pdf pages 84-85) Pensions and OPEB(notes & add’l info) Paper page 82-106 (pdf pages 89-113) Illinois Municipal Retirement Fund (IMRF) –pages 98/101-102(pdf 105/108-109) Total Pension Liability Increased by $0.95M From $15.9M to $16.8M Net Position Increased by $2.5M From $16.2M to $18.7M Percent Funded Dec 2017: 99.46% Dec 2018: 84.59% Dec 2019: 92.82% Dec 2020: 101.96% Dec 2021: 111.05% Fiscal Year Actuarial Determined Contribution Actual Contribution Excess (Deficit)Covered Payroll Contribution as % of Covered Payroll 2016 $311,346 $311,346 -$2,853,781 10.91% 2017 308,134 308,134 -2,898,722 10.63% 2018 344,487 344,487 -3,217,682 10.71% 2019 350,666 350,666 -3,506,685 10.00% 2020 365,540 365,540 -3,665,848 9.97% 2021 440,315 440,315 -4,060,573 10.84% 2022 428,230 428,230 -4,128,183 10.37% Police Pension Fund pages 99/103-104 (pdf 106/110-111) Total Pension Liability Increased by $2.0M From $25.0M to $27.0M Net Position Decreased by $93,002 From $14.6M to $14.5M Percent Funded Apr 2018: 45.55% Apr 2019: 47.07% Apr 2020: 46.17% Apr 2021: 58.24% Apr 2022: 53.56% Fiscal Year Actuarial Determined Contribution Actual Contribution Excess (Deficit)Covered Payroll Contribution as % of Covered Payroll 2015 $571,437 $624,168 $52,731 $2,220,146 28.11% 2016 722,940 722,940 -2,294,948 31.50% 2017 825,413 825,413 -2,320,642 35.57% 2018 966,211 966,211 -2,543,266 37.99% 2019 963,361 963,361 -2,449,210 39.33% 2020 1,111,484 1,111,484 -2,631,165 42.24% 2021 1,226,371 1,230,604 4,233 2,744,017 44.85% 2022 1,334,771 1,334,771 -2,694,486 49.54% Items of note Long term debt summary on paper pages 68-76 (pdf pages 75-83) Debt service schedules on paper pages 159-171 (pdf pages 166-178) Developer commitment narratives start on paper page 79 (pdf page 86) Other items of note Statistical Section Pages 172 -210 (pdf pages 179-217) Historical Trends covering: City financial trends Revenue & debt capacity Demographic & economic information Operating information Other items of note Statistical Section Paper pages 204-205 (pdf pages 211-212) employee counts 87 full-time employees in 2022 96 full-time employees in 2008 86 full-time employees in 2010 Paper pages 206-210 (pdf pages 213-217) miscellaneous service data Traffic violations Permits issued Streets resurfaced, in miles Street inventory New housing starts per year Management Letter Recommendations Funds with deficit equity (prior year) Countryside & Downtown TIF’s Over time development in the TIF Districts should yield sufficient surpluses to eliminate negative equity position. Implementation of GASB 87 (new) Accounting for Leases –effective 4/30/2023 Upcoming 2022 Tax Levy discussion Tax levy estimate approval October 11th City Council meeting Public Hearing November 8th City Council meeting Discussion and potential vote November 22nd or December 13th Upcoming FY 24 Budget rollout Nov 22-Jan 23 staff planning discussions Feb 23 budget finalized Feb 23 City Council presentation March 23 public hearing Discussion and potential vote March 28, 2023 City Council or April 11, 2023 City Council or April 25, 2023 City Council