Fiscal Year 2008 CAFR Comprehensive Annual Financial Report

VILLAGE OF WESTMONT, ILLINOIS

COMPREHENSIVE ANNUALFINANCIAL REPORT

For the Year Ended April 30, 2008

Prepared by: Finance DepartmentLisa Van BoggetFinance Director

VILLAGE OF WESTMONT, ILLINOISTABLE OF CONTENTS

Page(s)

INTRODUCTORY SECTION

Letter of Transmittal........................................................................................................... i-iv

Principal Officials................................................................................................................ v

Organization Chart ............................................................................................................. vi

Certificate of Achievement for Excellence in Financial Reporting...................................... vii

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT ........................................................................ 1-2

GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS

Management’s Discussion and Analysis ........................................................................ MD&A 1-10

Basic Financial Statements

Government-Wide Financial Statements

Statement of Net Assets ...................................................................................... 3

Statement of Activities ........................................................................................ 4-5

Fund Financial Statements

Governmental Funds

Balance Sheet ................................................................................................. 6

Reconciliation of Fund Balances of Governmental Funds tothe Governmental Activities in the Statement of Net Assets ........................ 7

Statement of Revenues, Expenditures, and Changes in Fund Balances .......... 8

Reconciliation of the Governmental Funds Statement of Revenues,Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities........................................................ 9

VILLAGE OF WESTMONT, ILLINOISTABLE OF CONTENTS (Continued)

Page(s)

FINANCIAL SECTION (Continued)

GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued)

Basic Financial Statements (Continued)

Fund Financial Statements (Continued)

Proprietary Funds

Statement of Net Assets ................................................................................. 10

Statement of Revenues, Expenses, and Changes in Net Assets...................... 11

Statement of Cash Flows................................................................................ 12-13

Fiduciary Funds

Statement of Fiduciary Net Assets ................................................................. 14

Statement of Changes in Fiduciary Net Assets ............................................... 15

Notes to Financial Statements.......................................................................... 16-45

Required Supplementary Information

Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual

General Fund....................................................................................................... 46IMRF/Social Security Fund................................................................................. 47Motor Fuel Tax Fund.......................................................................................... 48

Schedule of Funding ProgressIllinois Municipal Retirement Fund...................................................................... 49Police Pension Fund ............................................................................................ 50

Schedule of Employer ContributionsIllinois Municipal Retirement Fund...................................................................... 51Police Pension Fund ............................................................................................ 52

Notes to Required Supplementary Information................................................. 53


Page(s)

FINANCIAL SECTION (Continued)

COMBINING AND INDIVIDUAL FUND FINANCIALSTATEMENTS AND SCHEDULES

MAJOR GOVERNMENTAL FUNDS

Schedule of Expenditures - Budget and ActualGeneral Fund....................................................................................................... 54-58

Schedule of Revenues, Expenditures, and Changesin Fund Balance - Budget and Actual

Capital Projects Fund .......................................................................................... 59

NONMAJOR GOVERNMENTAL FUNDS

Combining Balance Sheet......................................................................................... 60Combining Statement of Revenues, Expenditures, and

Changes in Fund Balances.............................................................................. 61

Special Revenue FundsSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Budget and ActualEmergency Reserve Fund............................................................................... 62Convention and Tourism Fund....................................................................... 63Vehicle Replacement Fund............................................................................. 64

MAJOR PROPRIETARY FUND

Water Operations FundSchedule of Revenues, Expenses, and Changesin Net Assets - Budget and Actual .................................................................... 65

FIDUCIARY FUND

Construction and Performance Bond FundSchedule of Changes in Assets and Liabilities ..................................................... 66


Page(s)

STATISTICAL SECTION

Financial TrendsNet Assets by Component ............................................................................................. 67Change in Net Assets .................................................................................................... 68-69Fund Balances of Governmental Funds......................................................................... 70Changes in Fund Balances of Governmental Funds....................................................... 71-72

Revenue CapacityTaxable Sales by Category ............................................................................................ 73Direct and Overlapping Sales Tax Rates ....................................................................... 74Assessed Value and Actual Value of Taxable Property................................................. 75Property Value and Construction.................................................................................. 76Property Tax Levies and Collections............................................................................. 77

Debt CapacityRatios of Outstanding Debt by Type ............................................................................. 78Schedule of Direct and Overlapping Debt ..................................................................... 79

Demographic and Economic InformationDemographic Statistics.................................................................................................. 80Principal Employers....................................................................................................... 81Full-Time Employees..................................................................................................... 82

Operating InformationOperating Indicators...................................................................................................... 83Capital Asset Statistics .................................................................................................. 84

- v -


PRINCIPAL OFFICIALS

April 30, 2008

LEGISLATIVE

BOARD OF TRUSTEES

Bill Rahn, Mayor

Robert Scott Patricia Klebenow

Lee Fleming Nancy Martens

Mark Forzley Susann Senicka

Virginia Szymski, Village Clerk

ADMINISTRATIVE

Ron Searl, Village Manager

DEPARTMENT HEADS

Lisa Van Bogget Finance Director

Frank Trout Fire Chief

James Ramey Police Chief

Steve May Public Works Director Fred Kimble Economic Development Director

Village of Westmont Budget 2007-08

VILLAGE OF WESTMONT ORGANIZATION CHART

VILLAGE ATTORNEY

VILLAGE CLERK

Planning & Zoning Commission

VILLAGE MANAGER

Board of Fire & Police Commissioners

MAYOR & BOARD OF TRUSTEES

CITIZENS

Promote Westmont Commission

Environmental Improvement Commission

Communications Commission

Police Pension Board

Police Department

Fire Department

Economic Development Department

Finance Department

Public Works Department

Administration Patrol Investigations Communications

Suppression/Control Ambulance EMA

Administration Facilities Maintenance Streets Operations Fleet Maintenance

Finance Information Technologies

Clerks Division

Administration Department

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GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS

MD&A 1


MANAGEMENT’S DISCUSSION AND ANALYSIS

April 30, 2008

The Village of Westmont (the “Village”) discussion and analysis report is provided to (1) help the reader understand significant financial events, (2) provide an overview of the Village’s financial activity for the year, (3) report on changes in the Village’s financial position as well as its ability to meet its responsibilities for the next two years, (4) analyze any material deviations from the approved budget, and (5) address individual fund issues or concerns. Financial Highlights

• The assets of the Village exceeded its liabilities by $49.1 million (net assets) as of April 30, 2008. This is a slight decrease from $50.6 in FY07.

• The Village’s net assets decreased $1.5 million (2.9%) during the fiscal year ending April 30,

2008 (FY08). The governmental net assets decreased by $2.6 million (7.1%) from FY07 and the business-type activities net assets increased by $1.1 million (7.8%) from FY07. .

• The governmental activities revenue was $22.3 million, an increase from the FY07 revenues of

$21.6 million. Expenses were $25.4 million, an increase of $3,698,303 (17%).

• The business-type activities revenue was $4.9 million, an increase of $1.1 million (28.9%). The expenses were $3.55 million, a decrease of $86,437 (2.3%).

• The total cost of all Village programs was $29.0 million, an increase of $3.6 million (14.2%).

THE FINANCIAL SECTION OF THE COMPREHENSIVE ANNUAL REPORT The financial statement reports on both the Village as a whole (government-wide) and on the major individual funds. Both reports help the reader to address relevant questions, allow for multi-year comparisons, and provide for better Village accountability. Government-Wide Financial Statements The government-wide financial statements are presented in a corporate-like manner; all governmental and business-type activities are consolidated into columns which become a total for the Primary Government. The focus of the Statement of Net Assets is similar to bottom line results for the Village and its governmental and business-type activities. It combines and consolidates the current financial resources (short-term spendable funds) with capital assets and long-term obligations using the accrual basis of accounting and an economic resources measurement focus.

MD&A 2

The Statement of Activities displays both the gross and net cost of various activities which are supported by the government’s general taxes and other resources. This statement summarizes the cost of various governmental services and/or subsidies to various business-type activities. The Governmental Activities portion of the statement lists the Village’s basic services, including administrative services, public safety, public works, and component unit debt service. These activities (excluding Library debt service) are financed for the most part by shared state sales taxes, local utility taxes, and shared state income taxes. The Business-Type Activities reflect private sector type operations (the Village’s municipal water utility) where the fees for services cover all or most of the cost of operations, including depreciation. Fund Financial Statements This format will be familiar to traditional users of governmental financial statements. The focus is on Major Funds, rather than fund types. The statement is presented on a sources and uses of liquid resources basis. The Village’s financial plan (budget) is developed in a similar fashion. The flow and availability of these resources is an appropriate focus of an analysis of the government. Funds are established for various purposes and the Fund Financial Statements show the sources and uses and/or the budgetary compliance associated with them. The Fund Financial Statements also allow the government to report on its Fiduciary Fund (Police Pension). Because this Fund represents trust responsibilities of the government, these assets are restricted in purpose and are not a part of the discretionary assets of the government. Therefore they are not presented as part of the Government-Wide Financial Statements. Infrastructure Assets Historically, the Village’s largest group of assets (infrastructure – roads, alleys, buildings, etc.) had not been reported or depreciated in governmental financial statements. The Village implemented GASB 34 in FY04 and since then reports infrastructure assets within the Governmental column of the Government-Wide Statements. Also, the Village has chosen to depreciate those assets over their useful life. If a road project is considered maintenance – a recurring cost that does not extend the road’s useful life or expand its capacity – the cost of the project will be expensed. An “overlay” of a road will be considered maintenance whereas a “rebuild” of a road will be capitalized.

GOVERNMENT-WIDE STATEMENT

Statement of Net Assets Net assets over time may serve as a useful indicator of a government’s financial position. The following table shows condensed information from the government-wide Statement of Net Assets.

MD&A 3

Table 1 Statement of Net Assets

As of April 30, 2008 and April 30, 2007 (in millions)

Total Governmental Business-Type Primary Activities Activities Government 2008 2007 2008 2007 2008 2007 Assets: Current & other assets $14.6 $13.8 $4.8 $4.5 $19.4 $18.3 Capital assets $31.0 $33.5 $11.1 $10.3 $42.1 $43.8 Total Assets $45.6 $47.3 $15.9 $14.8 $61.5 $62.1 Liabilities: Other liabilities $5.9 $5.3 $0.7 $0.6 $6.6 $5.9 Long-term liabilities $5.8 $5.5 $0.1 $0.1 $5.9 $5.6 Total Liabilities $11.7 $10.8 $0.8 $0.7 $12.5 $11.5 Net Assets: Invested in capital assets, net, $30.9 $31.5 $11.1 $10.3 $42.0 $41.8 Restricted $5.8 $7.1 $0.0 $0.0 $5.8 $7.1 Unrestricted ($2.8) ($2.1) $4.0 $3.8 $1.2 $1.7 Total Net Assets $33.9 $36.5 $15.1 $14.1 $49.0 $50.6

Normal Impacts – Net Assets

There are six basic or normal transactions that will affect the comparability of the Statement of Net Assets summary table: Net Results of Activities – which will impact (increase/decrease) current assets and unrestricted net assets. Borrowing for Capital Projects – which will increase current assets and long-term debt. Spending Borrowed Proceeds on New Capital Projects – which will reduce current assets and increase capital assets. There is a second impact, an increase in “invested in capital assets” and an increase in related net debt which will not change the “invested in capital assets, net of debt”. Spending of Non-borrowed Current Assets on New Capital Projects – which will (a) reduce current assets and increase capital assets, and (b) will reduce unrestricted net assets and increase “invested in capital assets, net of debt”. Principal Payment on Debt – which will (a) reduce current assets and reduce long-term debt, and (b) reduce unrestricted net assets and increase “invested in capital assets, net of debt”. Reduction of Capital Assets through Depreciation – which will reduce capital assets and “invested in capital assets, net of debt”.

MD&A 4

Current Year Impacts – Net Assets

By far the largest portion of the Village’s net assets, 82.6% or $42 million, reflects its investment in capital assets (for example: land, buildings, machinery, equipment, and streets), less any related debt used to acquire those assets that is still outstanding. The Village uses these capital assets in the course of providing services to citizens; consequently, these assets are not available for future spending. At April 30, 2008 there no outstanding debt related to this investment. An additional portion, 14% or $5.8 million of the Village’s net assets represents resources that are subject to external restrictions on how they may be used. The remaining 3.4% or $1.2 million represents unrestricted net assets and may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the Village is able to report positive balances in all three categories of net assets, for the government as a whole, as well as for its separate governmental and business-type activities. Changes in Net Assets A review of the changes in net assets provides the reader with information on the results of the year’s operations. The following table shows condensed information from the government-wide Statement of Activities.

Table 2 Changes in Net Assets

For the Fiscal Years Ended April 30, 2008 and April 30, 2007 (in millions)

Governmental Business-type Total Activities Activities Government 2008 2007 2008 2007 2008 2007 REVENUES Program Revenues: Charges for Services $3.5 $3.1 $5.0 $3.9 $8.5 $7.0 Oper.Grants $0.8 $0.7 $0.0 $0.0 $0.8 $0.7 Cap.Grants $0.0 $0.1 $0.0 $0.0 $0.0 $0.1 General Revenues: $0.0 $0.0 Property & Repl Taxes $3.7 $3.5 $0.0 $0.0 $3.7 $3.5

Sales & Use Taxes $7.7 $7.6 $0.0 $0.0 $7.7 $7.6 Income Taxes $2.4 $2.0 $0.0 $0.0 $2.4 $2.0

Other Taxes $3.8 $4.1 $0.0 $0.0 $3.8 $4.1 Other General Revenues $0.5 $0.5 $0.2 $0.1 $0.7 $0.6 Total Revenues $22.3 $21.5 $5.1 $4.0 $27.4 $25.5 EXPENSES General Government $5.6 $4.5 $0.0 $0.0 $5.6 $4.5 Public Safety $14.0 $12.5 $0.0 $0.0 $14.0 $12.5 Public Works $5.7 $4.6 $0.0 $0.0 $5.7 $4.6 Interest Long-term debt $0.2 $0.1 $0.0 $0.0 $0.2 $0.1 Capital Projects $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Water $0.0 $0.0 $3.5 $3.7 $3.5 $3.7 Total Expenses $25.4 $21.7 $3.5 $3.7 $29.0 $25.4

MD&A 5

Excess or Deficiency Before Transfers ($3.1) ($0.2) $1.6 $0.3 ($1.5) $0.1 Transfers $0.5 $0.2 ($0.5) ($0.2) ($0.0) $0.0 Change in Net Assets ($2.6) $0.0 $1.1 $0.1 ($1.5) $0.1 Beginning Net Assets $36.5 36.5 $14.0 13.9 50.5 50.4 Ending Net Assets $33.9 $36.5 $15.1 $14.0 $49.0 $50.5

Normal Impacts – Changes in Net Assets

Revenues: There are normal impacts on revenues and expenses as explained below: Economic Conditions – reflects a declining, stable, or growing economic environment and has a substantial impact on revenue such as income tax, sales tax, and utility tax as well as public spending for building permits, elective user fees and volumes of consumption. Increase/Decrease in Village Approved Rates – while certain rates are set by statute, the Village Board has the authority to impose and occasionally increase or decrease rates such as water rates, impact fees, permit fees, ambulance fees, etc. Changing Patterns in Intergovernmental and Grant Revenue (recurring and non-recurring – state shared revenues which are recurring can experience periodic changes while non-recurring sources (such as grants) cannot be predicted and can distort a year to year comparison. Market Impacts on Investment Income – the bulk of the Village’s funds are operating funds, and, as such, are invested for durations of less than five years. The types of investments are limited to the scope of the Village’s Investment Policy. Therefore, fluctuations in rates will not have as adverse an impact as they would on a longer-term portfolio. Expenses: Introduction of New Programs – in certain areas of the government such as Public Safety, Public Works, or General Government, programs may either be added or deleted as community needs change. Increase in Personnel – changes in demand may cause the Village Board to authorize an increase or decrease in staff. Personnel costs and related benefits represent 67% of the Village’s operating costs. Inflation – the overall inflation rate has been modest for the past few years, however with the current economic climate, we do not expect that to continue. The Village, however, is a major consumer of some commodities such as supplies, fuel and parts. Some of these items have experienced higher than average cost increases, most notably, fuel. In addition, we have been living with double-digit percentage increases in the state retirement fund and health insurance.

MD&A 6

Current Year Impacts – Changes in Net Assets Governmental Activities Revenues: Revenues increased in FY08 by $0.7 million from the prior year, primarily due to increased general revenues and property taxes. Increases in operating grants were offset by a decrease in capital grant revenues. General revenues include all tax revenues and investment income. State shared sales tax revenues and local use tax increased from $7.6 million in FY07 to $7.7 million in FY08. This was mainly due to two factors: the overall economic outlook in our region remained fairly stable during the fiscal year and the Village continued to acquire new business in our economic development corridor. Telecommunications tax revenue increased from $1.4 million in FY07 to $1.5 million in FY08 due primarily to the continued increase in wireless telephone communications. Hotel/Motel tax revenues increased $30,857 (4%) and State Income tax revenues increased from $2.0 million in FY07 to $2.4 million in FY08, due largely to the increase in the village’s population figure used to compute per capita revenue of state shared taxes as a result of the special census. The following chart graphically depicts the major revenue sources of the Village. It clearly illustrates the reliance on taxes to fund governmental activities.

Financial Analysis of the Village as a Whole (Continued) Sales and local use taxes are the largest revenue source for the Village comprising 34% of total governmental revenues. This $7.7 million sales tax revenue is the Village’s share (1%) of sales taxes collected in Westmont by the Illinois Department of Revenue. This chart also identifies the lesser percentage, 17% or $3.7 million, the Village receives from property taxes. Even though the Village is a Home Rule community and no longer subject to the Property Tax Extension Law Limit (Tax Cap), our overall property tax revenue increased 4.7%, from $3.5 million in FY07 to $3.7 million in FY08. The Village’s equalized assessed valuation increased from $761,146,115 to $836,481,814 an increase of 9.90%.

MD&A 7

Expenses: The Village’s Governmental Activities total expenses increased, from $21.7 million in FY07 to $25.4 million in FY08. The largest function of the Village is Public Safety, which encompasses police patrol, administration and investigations, as well as fire protection, with total expenses for the year of $14.0 million, or 55% of total governmental expenses. This is an increase over the FY07 expenses of $12.5 million. Public Works expenses, primarily road maintenance costs, comprised a lesser percentage of the total expenses, 22 % at $5.7 million in total expenses. This is an increase over the FY07 expenses of $4.6 million. General government expenses for the year were 22 % of the total at $5.6 million and include the costs of the General Management, Legislative, Building and Zoning, Planning and Development, Engineering and Inspection, Finance, and Information Technology functions, as well as the costs of legal counsel and liability insurance. This is an increase over the FY07 expenses of $4.5 million. Interest on long-term debt was $170,155, related to the debt certificates issued in February 2008 and there were no expenses related to Capital Projects.

Business-type Activities Revenues: Charges for services provided by Water Operations decreased from $3.9 million in FY07 to $5.0 million in FY08. The Village’s charge for water supply has not changed since 1991. Investment income on Water Operations investments was consistent with the prior year as there was no significant increase in interest rates. Expenses: The Water Fund expenses decreased slightly from $3.7 million in FY07 to $3.5 million in FY08 with no significant changes in operations from the prior year.

MD&A 8

FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS

Fund Balances – Governmental Funds

For the fiscal year ended April 30, 2008, the governmental funds reflect a combined fund balance of $7.4 million, a decrease from the FY07 balance of $9.4. The majority of the decrease in fund balance is attributed to an interfund loan of $1.5 million due to the Water Fund from IMRF/FICA Fund.

Changes in Fund Balances – Governmental Funds

Combined tax revenues increased to $17.3 million from the FY07 revenue of $16.9 primarily due to increases in sales, telecommunications and income taxes, offset by decreases in utility tax revenues. License & permit revenues also increased, from $2.7 million in FY07 to $3.0 million for FY08 due to some new single-family and multiple-family residential construction projects. Total expenditures in the governmental funds increased from $20.6 million in FY07 to $24.9 million in FY08 with increases in all areas.

Annual Budget

The following is a table summarizing the FY08 budget for the General Fund.

General Fund Budgetary Highlights (in millions)

Adopted General Fund: Budget Actual Revenues: Taxes $14.2 $14.2 Intergovernmental $0.3 $0.1 Other $3.3 $3.8 Total Revenues $17.8 $18.1 Expenditures: General Government $4.0 $3.8 Public Safety $11.4 $11.8 Public Works $4.0 $3.9 Total Expenditures $19.5 $19.6 Transfers and Other

Issuance of Debt Certificates $0.4 $0.0 Transfers in $0.0 $0.0 Total Transfer and Other $0.4 $0.0 Change in Fund Balance ($1.3) ($1.5)

Both the actual revenues and actual expenses exceeded budgeted amounts slightly during FY08.

MD&A 9

Capital Assets

At the end of Fiscal Year 2008, the Village’s Governmental Funds had invested $30.9 million in a variety of capital assets and infrastructure, as reflected in the following schedule. For more detailed information refer to Note 5 in the Notes to the Financial Statements.

Governmental Activities Changes in Capital Assets (in millions) Ending Net Ending Balance Additions/ Balance April 30, 2007 Deletions April 30, 2008 Non-Depreciable Assets: Land $11.5 $0.0 $11.5 Construction in progress $0.1 $0.2 $0.3 Other Capital Assets: Infrastructure $31.1 $0.0 $31.1 Buildings $14.6 ($0.2) $14.4 Leasehold Improvements $0.7 $0.0 $0.7 Equipment $8.3 $0.8 $9.1 Accum. Depreciation on Capital Assets ($34.9) ($1.2) ($36.1) Totals $31.4 ($0.5) $30.9

Debt Outstanding

During the FY07, the Village issued $2.6 million of debt certificates for the purchase of 9.4 acres of land in the South Cass business district, currently held for resale. Semi-annual installments of $183,187 will be paid until August 14, 2016. The Village currently does not have any outstanding General Obligation or Revenue Bonds. For more detailed information refer to Note 6 in the Notes to the Financial Statements.

Economic Factors

With continued volatility in the market and decreases in overall consumer confidence, the Village’s sales and income tax revenues are projected to be flat during FY09. Due to concentrated efforts in economic development, our downtown is undergoing revitalization. The residential parts of town are seeing the replacement of smaller, 40-60 year old homes with larger upscale residences, however, building permits and construction activity is slowing.

MD&A 10

CONTACTING THE VILLAGE’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the Village’s finances and to demonstrate the Village’s accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Lisa VanBogget, Finance Director, Village of Westmont, 31 W. Quincy St., Westmont, IL 60559. The Westmont Public Library issue separate financial statements, and has an April 30 year end. Separate financial statements can be obtained by contacting its office at 428 N. Cass Ave., Westmont, IL 60559.

ComponentUnit

Governmental Business-Type WestmontActivities Activities Total Public Library

ASSETSCash and Cash Equivalents 1,953,226$ 71,692$ 2,024,918$ 174,916$ Investments 3,579,080 2,175,759 5,754,839 568,970 Receivables (Net, Where Applicable,

of Allowances for Uncollectibles)Property Taxes 4,014,726 - 4,014,726 1,615,097 Other Taxes 2,852,623 - 2,852,623 - Accounts 224,460 664,613 889,073 - Other 442,958 6,036 448,994 -

Prepaid Expenses 77,095 - 77,095 - Inventories - 167,344 167,344 - Due from Other Governments 13,702 - 13,702 - Due to/from Other Funds (1,505,667) 1,505,667 - - Due from Fiduciary Fund 200,000 - 200,000 - Deposits 798,720 208,100 1,006,820 - Land Held for Resale 1,992,835 - 1,992,835 - Capital Assets not Being Depreciated 11,822,794 187,827 12,010,621 450,000 Capital Assets Being Depreciated 19,128,782 10,950,461 30,079,243 2,286,771

Total Assets 45,595,334 15,937,499 61,532,833 5,095,754

LIABILITIESAccounts Payable 692,366 266,008 958,374 18,609 Accrued Payroll 573,841 39,167 613,008 30,108 Accrued Interest Payable 33,903 - 33,903 - Unearned Revenue 4,331,031 72,978 4,404,009 1,615,097 Other Payables 264,366 307,196 571,562 - Noncurrent Liabilities

Due Within One Year 323,118 31,358 354,476 1,329 Due in More Than One Year 5,434,093 94,072 5,528,165 5,317

Total Liabilities 11,652,718 810,779 12,463,497 1,670,460

NET ASSETSInvested in Capital Assets,

Net of Related Debt 30,951,576 11,138,288 42,089,864 2,736,771 Restricted for

Maintenance of Roadways 2,207,024 - 2,207,024 - Special Purposes 2,565,228 - 2,565,228 385,398 Convention and Tourism 1,020,214 - 1,020,214 -

Unrestricted (2,801,426) 3,988,432 1,187,006 303,125

TOTAL NET ASSETS 33,942,616$ 15,126,720$ 49,069,336$ 3,425,294$

April 30, 2008

STATEMENT OF NET ASSETS


Primary Government

See accompanying notes to financial statements.- 3 -

Charges Operating CapitalFUNCTIONS/PROGRAMS Expenses for Services Grants GrantsPRIMARY GOVERNMENT

Governmental ActivitiesGeneral Government 5,592,329$ 1,227,973$ -$ -$ Public Safety 13,969,469 1,432,085 19,274 - Public Works 5,698,273 845,530 764,988 15,073 Interest and Fiscal Charges on

Long-Term Debt 170,155 - - -

Total Governmental Activities 25,430,226 3,505,588 784,262 15,073

Business-Type ActivitiesWater Operations 3,547,754 4,960,932 - -

Total Business-Type Activities 3,547,754 4,960,932 - -

TOTAL PRIMARY GOVERNMENT 28,977,980$ 8,466,520$ 784,262$ 15,073$

COMPONENT UNITWestmont Public Library 1,474,847$ 30,586$ 30,689$ -$

Program Revenues


STATEMENT OF ACTIVITIES


- 4 -

ComponentUnit

Governmental Business-Type WestmontActivities Activities Total Public Library

(4,364,356)$ -$ (4,364,356)$ -$ (12,518,110) - (12,518,110) -

(4,072,682) - (4,072,682) -

(170,155) - (170,155) -

(21,125,303) - (21,125,303) -

- 1,413,178 1,413,178 -

- 1,413,178 1,413,178 -

(21,125,303) 1,413,178 (19,712,125) -

- - - (1,413,572)

General RevenuesTaxes

Property and Replacement 3,740,354 - 3,740,354 1,498,065 Sales 7,296,248 - 7,296,248 - Use 368,755 - 368,755 - Telecommunications 1,526,864 - 1,526,864 - Utility 1,419,906 - 1,419,906 - Income 2,355,906 - 2,355,906 - Hotel/Motel 794,191 - 794,191 - Other 56,177 - 56,177 -

Investment Income 325,163 170,933 496,096 43,325 Miscellaneous 155,228 - 155,228 16,464

Transfers 479,995 (479,995) - -

Total 18,518,787 (309,062) 18,209,725 1,557,854

CHANGE IN NET ASSETS (2,606,516) 1,104,116 (1,502,400) 144,282

NET ASSETS, MAY 1 36,549,132 14,022,604 50,571,736 3,281,012

NET ASSETS, APRIL 30 33,942,616$ 15,126,720$ 49,069,336$ 3,425,294$

Net (Expense) Revenue and Change in Net Assets

Primary Government


Nonmajor TotalIMRF/ Motor Fuel Capital Governmental Governmental

General Social Security Tax Projects Funds Funds

ASSETS

Cash and Cash Equivalents 71,745$ 2,052$ 778,202$ 849,142$ 242,883$ 1,944,024$ Investments - 3,023 1,471,693 435,810 1,666,637 3,577,163 Receivables (Net, Where Applicable,

of Allowances for Uncollectibles)Property Taxes 2,135,090 1,879,636 - - - 4,014,726 Other Taxes 2,632,138 - 58,675 103,361 58,449 2,852,623 Accounts 221,956 - - - 2,504 224,460 Other 435,667 1,299 5,992 - - 442,958

Prepaid Items 77,095 - - - - 77,095 Due from Other Funds 200,000 - - - 267,439 467,439 Due from Other Governments 13,702 - - - - 13,702 Deposits 798,720 - - - - 798,720 Land Held for Resale - - - 1,992,835 - 1,992,835

TOTAL ASSETS 6,586,113$ 1,886,010$ 2,314,562$ 3,381,148$ 2,237,912$ 16,405,745$

LIABILITIESAccounts Payable 488,164$ 62,387$ 107,538$ 26,004$ 8,273$ 692,366$ Accrued Payroll 571,315 - - - 2,526 573,841 Deferred Revenue 2,900,567 1,879,636 - - 3,980 4,784,183 Other Payables 264,366 - - - - 264,366 Due to Other Funds 1,663,706 995,000 - - - 2,658,706

Total Liabilities 5,888,118 2,937,023 107,538 26,004 14,779 8,973,462

FUND BALANCESReserved for Prepaid Expenditures 77,095 - - - - 77,095 Reserved for Land Held for Resale - - - 1,992,835 - 1,992,835 Reserved for Maintenance of Roadways - - 2,207,024 - - 2,207,024 Reserved for Special Purposes - - - 1,362,309 1,202,919 2,565,228 Reserved for Convention and Tourism - - - - 1,020,214 1,020,214 Unreserved

Undesignated - General Fund 620,900 (1,051,013) - - - (430,113)

Total Fund Balances 697,995 (1,051,013) 2,207,024 3,355,144 2,223,133 7,432,283

TOTAL LIABILITIES ANDFUND BALANCES 6,586,113$ 1,886,010$ 2,314,562$ 3,381,148$ 2,237,912$ 16,405,745$

LIABILITIES AND FUND BALANCES


BALANCE SHEETGOVERNMENTAL FUNDS

April 30, 2008


FUND BALANCES OF GOVERNMENTAL FUNDS 7,432,283$

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financialresources and, therefore, are not reported in the governmental funds 30,951,576

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental fundsTotal governmental compensated absences (1,521,027)

Less internal service fund portion included below 1,057,445 Debt certificates payable (2,314,815)

Accrued interest on long-term liabilities is reported as a liability on the statement of net assets (33,903)

Certain revenues that are deferred in the governmental fundsare recognized as revenue in the governmental activities 453,152

The net assets (deficit) of the internal service fund are included in thegovernmental activities in the statement of net assets (160,726)

The net pension obligation is shown as a liability on thestatement of net assets (1,921,369)

NET ASSETS OF GOVERNMENTAL ACTIVITIES 33,942,616$


RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THEGOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS

April 30, 2008


Nonmajor TotalIMRF/ Motor Fuel Capital Governmental Governmental

General Social Security Tax Projects Funds Funds

REVENUESTaxes 14,240,247$ 1,712,707$ -$ 543,576$ 794,191$ 17,290,721$ Licenses and Permits 3,043,313 - - - - 3,043,313 Intergovernmental 50,375 - 767,852 - - 818,227 Charges for Services 253,193 7,410 - - - 260,603 Fines and Forfeits 371,681 - - - - 371,681 Investment Income 49,154 31,677 78,311 67,111 98,910 325,163 Miscellaneous Income 106,297 - - - 36,496 142,793

Total Revenues 18,114,260 1,751,794 846,163 610,687 929,597 22,252,501

EXPENDITURES

CurrentGeneral Government 3,843,809 636,440 - - 438,240 4,918,489 Public Safety 11,845,536 1,750,211 - - - 13,595,747 Public Works 3,897,679 795,551 360,806 - - 5,054,036

Capital Outlay - - - 826,447 219,024 1,045,471 Debt Service

Principal - - - 193,388 - 193,388 Interest and Fiscal Charges - - - 172,987 - 172,987

Total Expenditures 19,587,024 3,182,202 360,806 1,192,822 657,264 24,980,118

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,472,764) (1,430,408) 485,357 (582,135) 272,333 (2,727,617)

OTHER FINANCING SOURCES (USES)Proceeds from Sale of Capital Assets - - - 255,614 33,892 289,506 Transfers In - - - 200,000 779,995 979,995 Transfers (Out) - - - (500,000) - (500,000)

Total Other Financing Sources (Uses) - - - (44,386) 813,887 769,501

NET CHANGE IN FUND BALANCES (1,472,764) (1,430,408) 485,357 (626,521) 1,086,220 (1,958,116)

FUND BALANCES, MAY 1 2,170,759 379,395 1,721,667 3,981,665 1,136,913 9,390,399

FUND BALANCES (DEFICIT), APRIL 30 697,995$ (1,051,013)$ 2,207,024$ 3,355,144$ 2,223,133$ 7,432,283$



STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS


NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS (1,958,116)$

Amounts reported for governmental activities in the statement ofactivities are different because:

Governmental funds report capital outlay as expenditures, however, they are capitalized and depreciated in the statement of activities 1,248,614

Retirement of capital assets used in governmental activities are notfinancial resources and, therefore, are not reported in governmental funds (119,893)

Some expenses in the statement of activities (e.g., depreciation) do not require the use of current financial resources and, therefore, are notreported as expenditures in governmental funds (1,640,458)

The repayment of the principal portion long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities 193,388

The change in accrued interest payable on long-term debt is reportedas an expense on the statement of activities 2,832

Certain revenues that are deferred in the governmental funds are recognized as revenue in the governmental activities 91,214

The change in net assets of certain activities of internal service funds is in governmental funds 2,102

The change in net pension obligation is not a current financial resourceand, therefore, is not reported in the governmental funds (383,063)

The change in compensated absences payable is shown as an expenseon the statement of activities (43,136)

CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES (2,606,516)$


RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES


EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE



STATEMENT OF NET ASSETSPROPRIETARY FUNDS

April 30, 2008

Business-Type GovernmentalActivities Activities

Water InternalOperations Service Fund

CURRENT ASSETSCash and Cash Equivalents 71,692$ 9,202$ Investments 2,175,759 1,917 Receivables (Net Where Applicable,

of Allowances for Uncollectibles)Accounts 664,613 - Other 6,036 -

Inventories 167,344 - Due from Other Funds 1,505,667 885,600

Total Current Assets 4,591,111 896,719

CAPITAL ASSETSAssets not Being Depreciated 187,827 - Assets Being Depreciated

Cost 18,837,251 - Accumulated Depreciation (7,886,790) -

Net Capital Assets Being Depreciated 10,950,461 -

Net Capital Assets 11,138,288 -

OTHER ASSETSDeposits 208,100 -

Total Other Assets 208,100 -

Total Noncurrent Assets 11,346,388 -

Total Assets 15,937,499 896,719

CURRENT LIABILITIESAccounts Payable 266,008 - Accrued Payroll 39,167 - Unearned Revenue 72,978 - Other Payables 307,196 - Compensated Absences Payable 31,358 -

Total Current Liabilities 716,707 -

LONG-TERM LIABILITIESCompensated Absences Payable 94,072 1,057,445

Total Long-Term Liabilities 94,072 1,057,445

Total Liabilities 810,779 1,057,445

NET ASSETSInvested in Capital Assets 11,138,288 - Unrestricted 3,988,432 (160,726)

TOTAL NET ASSETS 15,126,720$ (160,726)$



STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET ASSETS

PROPRIETARY FUNDS




OPERATING REVENUESCharges for Services 4,888,679$ 81,503$ Miscellaneous 8,379 -

Total Operating Revenues 4,897,058 81,503

OPERATING EXPENSESEXCLUDING DEPRECIATION

Administration 3,250,446 81,503

Total Operating Expenses ExcludingDepreciation 3,250,446 81,503

OPERATING INCOME BEFOREDEPRECIATION 1,646,612 -

DEPRECIATION 456,393 -

OPERATING INCOME 1,190,219 -

NONOPERATING REVENUES (EXPENSES)Tap-On Connection Fees 63,874 - Investment Income 170,933 2,102 Gain on Sale of Capital Assets 159,085 -

Total Nonoperating Revenues (Expenses) 393,892 2,102

NET INCOME BEFORE TRANSFERS 1,584,111 2,102

TRANSFERS (OUT) (479,995) -

CHANGE IN NET ASSETS 1,104,116 2,102

NET ASSETS (DEFICIT), MAY 1 14,022,604 (162,828)

NET ASSETS (DEFICIT), APRIL 30 15,126,720$ (160,726)$



STATEMENT OF CASH FLOWSPROPRIETARY FUNDS




CASH FLOWS FROM OPERATING ACTIVITIESReceipts from Customers and Users 3,970,435$ -$ Receipts from Internal Service Transactions - 94,548 Payments to Suppliers (2,449,737) - Payments to Employees (796,901) (85,531)

Net Cash from Operating Activities 723,797 9,017

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers (Out) (479,995) - Advances to Other Funds 500,000 - Due to/from Other Funds (100,541) -

Net Cash from Noncapital Financing Activities (80,536) -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESCapital Assets Purchased (1,733,469) - Sale of Capital Assets 625,569 -

Net Cash from Capital and Related Financing Activities (1,107,900) -

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Investments 337,759 (1,917) Interest Received 170,933 2,102

Net Cash from Investing Activities 508,692 185

NET INCREASE IN CASH ANDCASH EQUIVALENTS 44,053 9,202

CASH AND CASH EQUIVALENTS, MAY 1 27,639 -

CASH AND CASH EQUIVALENTS, APRIL 30 71,692$ 9,202$

(This statement is continued on the following page.)- 12 -


STATEMENT OF CASH FLOWS (Continued)PROPRIETARY FUNDS




RECONCILIATION OF OPERATING INCOMETO NET CASH FLOWS FROM OPERATING ACTIVITIESOperating Income 1,190,219$ -$ Adjustments to Reconcile Operating Income

to Net Cash from Operating ActivitiesDepreciation 456,393 - (Increase) Decrease in

Receivables 4,503 - Inventories (32,364) - Due from Other Funds (995,000) 13,045 Deposits (40,803) -

Increase (Decrease) inAccounts Payable (95,915) - Accrued Payroll 8,274 - Deferred Revenue 17,999 - Other Payables 125,498 - Compensated Absences Payable 21,119 (4,028)

NET CASH FROM OPERATING ACTIVITIES 659,923$ 9,017$


Pension AgencyTrust Fund Fund

ASSETSCash and Cash Equivalents 33,359$ (4,266)$ Investments

U.S. Treasury Securities 7,153,867 - U.S. Agency Securities 1,937,066 - Equity Securities 3,506,944 - Mutual Funds 3,207,014 - Illinois Metropolitan Investment Fund 1,480,968 192,596 Illinois Funds 175,628 89,376 Money Market Mutual Funds 1,803,373 724,429

ReceivablesAccrued Interest 62,860 - Miscellaneous 30 -

Total Assets 19,361,109 1,002,135$

LIABILITIESDeposits Payable - 1,002,135 Due to Other Funds 200,000 -

Total Liabilities 200,000 1,002,135$

NET ASSETS HELD IN TRUST FORPENSION BENEFITS 19,161,109$


STATEMENT OF FIDUCIARY NET ASSETS

April 30, 2008

FIDUCIARY FUNDS


STATEMENT OF CHANGES IN FIDUCIARY NET ASSETSPOLICE PENSION TRUST FUND


ADDITIONS

Contributions Employer 599,873$ Employee 361,438 Other 323,638

Total Contributions 1,284,949

Investment Income

Net Appreciation in Fair Valueof Investments (241,423)

Interest 1,052,787

Total Investment Income 811,364

Less Investment Expense (120,218)

Net Investment Income 691,146

Total Additions 1,976,095

DEDUCTIONSAdministration 22,011 Benefits and Refunds

Benefits 1,569,031

Total Deductions 1,591,042

NET INCREASE 385,053

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS

May 1 18,776,056

April 30 19,161,109$



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NOTES TO FINANCIAL STATEMENTS

April 30, 2008

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Village of Westmont, Illinois (the Village) are in accordance with accounting principles generally accepted in the United States of America, as applied to governmental units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant accounting policies of the Village.

a. Reporting Entity

The Village is a municipal corporation established under Illinois Compiled Statutes (ILCS) governed by an elected Mayor and six-member Board of Trustees. As defined by generally accepted accounting principles established by GASB, the financial reporting entity consists of the primary government, as well as its component units, which are legally separate organizations for which the elected officials of the primary government are financially accountable. Financial accountability is defined as:

1) Appointment of a voting majority of the component unit’s board and either (a) the ability to impose will by the primary government or (b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government; or

2) Fiscal dependency on the primary government.

Blended Component Unit

The Police Pension Fund is a legally separate organization from the Village and has its own governing board. However, although legally separate, this fund is reported as if it is part of the Village, because it is fiscally dependent on the Village and administered exclusively for the benefit of the Village’s police personnel.

VILLAGE OF WESTMONT, ILLINOISNOTES TO FINANCIAL STATEMENTS (Continued)

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

a. Reporting Entity (Continued)

Discretely Presented Component Unit

The Westmont Public Library (the Library) is included in the reporting entity because of its operational and financial relationship with the Village. The Library has a separately elected board, but state law requires the Village to approve the Library’s annual budget and tax levy. In addition, bond issuance authorizations are approved by the Village and the legal liability for the general obligation portion of the Library’s debt remains with the Village. The Library is reported in a separate column to emphasize that it is legally separate from the Village. The Library issues separate financial statements and has an April 30 year end. Separate financial statements can be obtained by contacting its office at 428 North Cass Avenue, Westmont, Illinois 60559.

b. Fund Accounting

The Village uses funds to report its financial position and the changes in its financial position. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. The minimum number of funds is maintained consistent with legal and managerial requirements.

Funds are classified into the following categories: governmental, proprietary, and fiduciary.

Governmental funds are used to account for all or most of a government’s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of capital assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the general government not accounted for in some other fund.

Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government (internal service funds). Pursuant to GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Government Entities That Use Proprietary Fund Accounting, the Village has chosen to apply all GASB pronouncements as well as those FASB pronouncements issued on or before November 30, 1989 to account for its enterprise funds.


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b. Fund Accounting (Continued)

Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the government. The Village utilizes a pension trust fund which is generally used to account for assets that the Village holds in a fiduciary capacity and agency funds to account for assets that the Village holds in an agent capacity.

c. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the Village. The effect of material interfund activity has been eliminated from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function, segment, or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and standard revenues that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

The Village reports the following major governmental funds:

The General Fund is used to account for all financial resources of the Village unless required to be accounted for in another fund.

The IMRF/Social Security Fund accounts for the payment of payroll taxes and contributions to the Village’s retirement plan.

The Motor Fuel Tax Fund accounts for revenues received by the state from the sale of motor fuel. Funds are utilized for street maintenance and replacement.

The Capital Projects Fund accounts for the expenditures of the Village’s major capital outlay.


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c. Government-Wide and Fund Financial Statements (Continued)

In addition, the Village reports the following major enterprise fund:

The Water Operations Fund is used to account for the provision of water services to the residents of the Village. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, and improvements.

Additionally, the Village reports the following internal service fund:

The Employee Benefits Fund is used to account for the accumulation of resources and costs associated with the employee benefit sick time liability for eligible Village employees. This fund is reported as part of the governmental activities on the government-wide financial statements as it provides services primarily to the Village’s governmental funds/activities.

The Village reports a pension trust fund as a fiduciary fund to account for the Police Pension Fund. An agency fund is used to account for construction and performance bonds.

d. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e., intended to finance). Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues/expenses include all revenues/expenses directly related to providing enterprise fund services. Incidental revenues/expenses are reported as nonoperating.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for sales and telecommunication taxes which use a 90-day period. The Village recognizes property taxes when they become both measurable and available in the year intended to finance. Expenditures generally are recorded when a fund liability is incurred. However, debt service expenditures are recorded only when payment is due.


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d. Measurement Focus, Basis of Accounting, and Financial Statement Presentation(Continued)

Property taxes, sales and telecommunication taxes owed to the state at year end, franchise taxes, licenses, charges for services, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and are recognized as revenues of the current fiscal period. Fines and permit revenue are considered to be measurable and available only when cash is received by the Village.

In applying the susceptible to accrual concept to intergovernmental revenues (i.e., federal and state grants), the legal and contractual requirements of the numerous individual programs are used as guidelines. There are, however, essentially two types of these revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the Village; therefore, revenues are recognized based upon the expenditures/expenses recorded. In the other, monies are virtually unrestricted as to purpose of expenditure/expense and are generally revocable only for failure to comply with prescribed eligibility requirements, such as equal employment opportunity. These resources are reflected as revenues at the time of receipt or earlier if they meet the availability criterion.

The Village reports deferred/unearned revenue on its financial statements. Deferred/unearned revenues arise when a potential revenue does not meet both the measurable and available or earned criteria for recognition in the current period. Deferred/unearned revenues also arise when resources are received by the Village before it has a legal claim to them or prior to the provision of services, as when grant monies are received prior to the incurrence of qualifying expenditures/expenses. In subsequent periods, when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the liability for deferred/unearned revenue is removed from the financial statements and revenue is recognized.

e. Cash and Cash Equivalents

Cash and cash equivalents are defined as cash on hand and in interest-bearing and non-interest-bearing checking accounts.

f. Investments

Investments of the Village consist of money market accounts, certificates of deposit with various local financial institutions, various marketable securities, pooled investments, and mutual funds. Investments are stated at fair value, except for non-negotiable certificates and other non-pension fund investments with a maturity of less than one year at date of purchase which are stated at cost or amortized cost. All investments of the pension trust fund, regardless of length of maturity, are reported at fair value. Fair value is based on published market quotes as of April 30.


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g. Interfund Receivables/Payables

Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “interfund receivables/payables” (current portion of interfund loans) or “advances to/from other funds” (noncurrent portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.”

Advances are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

Interfund service transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers.

h. Inventories

Inventories are valued at cost, which approximates market, using the first in/first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased.

i. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost in excess of the following and an estimated useful life in excess of one year.

Asset ClassCapitalization

Threshold

Land and Improvements $ 25,000Buildings 50,000Vehicles, Equipment, and Furniture 10,000Software 50,000Infrastructure 100,000


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i. Capital Assets (Continued)

Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives:

Assets Years

Buildings and Improvements 10-50Water, Sewer, and Drainage Systems 40Vehicles, Equipment, and Furniture 3-15Infrastructure 20-30

j. Compensated Absences

Vested or accumulated sick leave that is owed to retirees or terminated employees is reported as an expenditure and a fund liability of the governmental fund that will pay it once retirement or separation has occurred. Vested or accumulated sick leave of proprietary funds and governmental activities at the government-wide level is recorded as an expense and liability as the benefits accrue to employees. Vacation leave is not accumulated and must be taken in the year in which it was awarded;therefore, there is no accrual for vacation leave.

k. Long-Term Obligations

In the government-wide financial statements and proprietary funds 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 financial statements. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.


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k. Long-Term Obligations (Continued)

In the fund financial statements, governmental funds 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 expenditures.

l. Fund Balances/Net Assets

In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. None of the restricted net assets result from enabling legislation adopted by the Village. In the government-wide financial statements, restricted net assets are legally restricted by outside parties for a specific purpose. Invested in capital assets, net of related debt, is the book value of the capital assets, net of any debt outstanding that was issued to construct or acquire the capital assets.

2. DEFICIT FUND BALANCES/NET ASSETS

The IMRF/Social Security Fund had a deficit fund balance of $1,051,013 and the Internal Service Fund had deficit net assets of $160,726 at April 30, 2008.

3. PROPERTY TAX CALENDAR

The following information gives significant dates on the property tax calendar of the Village.

- The property tax lien date is January 1;

- The annual tax levy ordinance for the 2007 levy was passed on December 17, 2007;

- Property taxes for the 2007 levy are due to the County Collector in two installments, June 1, 2008 and September 1, 2008;

- Significant amounts of property taxes for the 2007 levy will be distributed to the Village primarily during June through September 2008. The remaining distributions are expected to be received in October through January 2008.


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3. PROPERTY TAX CALENDAR (Continued)

The 2008 tax levy, which attached as an enforceable lien on property as of January 1, 2008, has not been recorded as a receivable as of April 30, 2008 as the tax has not yet been levied by the Village, and will not be levied until December 2008 and, therefore, the levy is not measurable at April 30, 2008.

4. DEPOSITS AND INVESTMENTS

a. Village Investments

The Village’s investment policy authorizes the Village to invest in the following instruments: interest-bearing direct obligations of the United States of America, interest-bearing savings accounts or certificates of deposit, issued by federally chartered banks or savings and loan associations, to the extent that the deposits are insured by agencies or instrumentalities of the federal government, interest-bearing savings accounts or certificates of deposit, issued by State of Illinois chartered banks or savings and loan associations, to the extent that the deposits are insured by agencies or instrumentalities of the federal government, pooled interest-bearing accounts managed by Illinois Funds, in accordance with the Deposit of State Moneys Act, and interest-bearing funds or pooled accounts managed, operated, and administered by banks, subsidiaries of banks, or subsidiaries of bank holding companies in accordance with the laws of the State of Illinois, and the Illinois Metropolitan Investment Fund (IMET), an actively managed investment fund for Illinois local governments consisting of investments in obligations issued or secured by the U.S. Government and/or its agencies, and/or money market mutual funds that are permitted under HB885, adopted by the Illinois General Assembly on May 9, 1996, which amended Section 3.1-35-50 of the Municipal Code, also known as the Investment Act.

Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price, the price for which the investment could be sold.

It is the policy of the Village to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Village government and conforming to all state and local statutes governing the investment of public funds using the “prudent person” standard. The primary objectives of the policy are safety of principal, liquidity, and return on investments.


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4. DEPOSITS AND INVESTMENTS (Continued)

a. Village Investments (Continued)

Deposits with Financial Institutions

Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Village’s deposits may not be returned to it. The Village’s investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 100% of the fair market value of the funds secured, with the collateral held by an independent third party with which the Village has a current custodial agreement.

Investments

The following table presents the investments and maturities of the Village’s debt securities as of April 30, 2008:

Investment Maturities in YearsInvestment Type Fair Value Less than 1 1-5 Greater than 5

Illinois Funds $ 2,677,318 $ 2,677,318 $ - $ -IMET 2,513,499 2,513,499 - -Money Market Mutual Funds 3,386,819 3,386,819 - -

TOTAL $ 8,577,636 $ 8,577,636 $ - $ -

In accordance with its investment policy, the Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for short and long-term cash flow needs while providing a reasonable rate of return based on the current market. Unless matched to a specific cash flow, the Village will not directly invest in securities maturing more than one year from the date of purchase. However, the Village may collateralize its repurchase agreements and certificates of deposit using longer-dated investments not to exceed five years to maturity.

The Village limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by primarily investing in external investment pools. The Village’s investment policy does not discuss credit risk for investments. Illinois Funds and IMET are rated AAA.

Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Village will not be able to recover the value of its investments that are in possession of an outside party. All security transactions, including collateral for repurchase agreements and certificates of deposit, entered into by the Village shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third-party custodian designated by the Treasurer and evidenced by safekeeping receipts. Money market mutual funds, Illinois Funds, and IMET are not subject to custodial credit risk.


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a. Village Investments (Continued)

Investments (Continued)

Concentration of credit risk is the risk that the Village has a high percentage of their investments invested in one type of investment. The Village will diversify its investments by security type and institution. With the exception of U.S. Treasurysecurities and authorized pools, no more than 50% of the Village’s total investment portfolio will be invested in a single security type or with a single financial institution. At April 30, 2008, the Village did not have greater than five percent of its overall

portfolio invested in any single investment type.

b. Police Pension Investments

The Police Pension Fund’s investment policy authorizes the Police Pension Fund to invest in all investments allowed by Illinois Compiled Statutes (ICS). These include interest-bearing direct obligations of the United States and interest-bearing obligations to the extent that they are fully guaranteed or insured as to payment of principal and interest by the United States, interest-bearing bonds, notes, debentures, or other similar obligations of agencies of the United States of America, pooled interest-bearing accounts managed by Illinois Funds, in accordance with the Deposit of State Moneys Act, and interest-bearing funds or pooled accounts managed, operated and administered by banks, subsidiaries of banks, or subsidiaries of bank holding companies in accordance with the laws of the State of Illinois, interest-bearing savings accounts or certificates of deposit issued by federally chartered or Illinois charteredbanks or savings and loans which are insured by the federal government. IMET,interest-bearing bonds of the State of Illinois, interest-bearing bonds of any county, township, or municipal corporation of the State of Illinois. Money market mutual funds managed by investment companies that are registered under the federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended management investment companies, provided that the portfolio of the money market mutual fund is limited to the following: bonds, notes, certificates of indebtedness, treasury bills, or other securities that are guaranteed by the full faith and credit of the federal government as to principal and interest. Bonds, notes, debentures, or other similar obligations of the USA or its agencies. Short-term obligations of corporations organized in the USA with assets exceeding $400,000,000 provided that (a) the obligations mature no later than 180 days from the date of purchase, (b) at the time of purchase, the obligations are rated by at least twostandard national rating services at one of their three highest classifications, and (c) the obligations held by the mutual fund do not exceed 10% of the corporation’s outstanding obligations. General accounts of life insurance companies authorized to transact business in Illinois. Common and preferred stocks authorized for investments of trust funds under Illinois laws which meet all of the following requirements:


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b. Police Pension Investments (Continued)

It is the policy of the Police Pension Fund to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the cash flow demands of the Police Pension Fund and conforming to all state and local statutes governing the investment of public funds, using the “prudent person” standard for managing the overall portfolio. The primary objectives of the policy are, in order of priority, legality, safety of principal, liquidity, and rate of return.

Deposits with Financial Institutions

Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Police Pension Fund’s deposits may not be returned to it. Collateralization will be required on two types of investments: certificates of deposit and repurchase (and reverse repurchase) agreements. In order to anticipate market changes and provide a level of security for these investments, the collateral level will be 100% of market value, over and above the insured amount provided by the Federal Deposit Insurance Corporation. Collateral will always be held by an independent third party with whom the Police Pension Fund has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the Police Pension Fund and retained. Evidence of current collateral levels will be submitted to the Police Pension Fund from the relevant financial institutions on at least a quarterly basis.

Investments

The following table presents the investments and maturities of the Police Pension Fund’s debt securities as of April 30, 2008:

Investment Maturities in YearsInvestment Type Fair Value Less than 1 1-5 6-10 Greater than 10

U.S. Treasury Notes $ 1,547,786 $ - $ 428,958 $ 667,052 $ 451,776U.S. Treasury Bonds 2,768,779 - - - 2,768,779U.S. Treasury Strips 2,837,302 - - - 2,837,302GNMA 66,097 1,653 - - 64,444FHLMC 645,782 645,782 - - -FNMA 1,225,187 - 1,075,222 - 149,965Money Market Mutual Funds 1,803,373 1,803,373 - - -Illinois Funds 175,628 175,628 - - -IMET 1,480,968 1,480,968 - - -

TOTAL $ 12,550,902 $ 4,107,404 $ 1,504,180 $ 667,052 $ 6,272,266


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In accordance with its investment policy, the Police Pension Fund limits its exposure to interest rate risk by structuring the portfolio with the objective of attaining a market rate of return throughout budgetary and economic cycles, commensurate with the Police Pension Fund’s investment parameters and the cash flow characteristics of the portfolio.

The Police Pension Fund limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by primarily investing U.S. Treasury Obligations and other obligations which are rated AA or better by a national rating agency. The U.S. Agency obligations are rated AAA.

Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Police Pension Fund will not be able to recover the value of its investments that are in possession of an outside party. The Police Pension Fund’s broker who purchases the investment also serves as custodian over the investment. To limit its exposure, the broker has purchased an excess SIPC policy to cover any investment losses not covered by the limits of SIPC. All security transactions, including collateral for repurchase agreements and certificates of deposit, entered into by the Village shall be conducted on a delivery versus payment (DVP) basis. Illinois Funds, IMET, and the money market mutual funds and mutual funds are not subject to custodial credit risk.

Concentration of credit risk is the risk that the Police Pension Fund has a high percentage of their investments invested in one type of investment. The Police Pension Fund’s investment policy requires diversification of investment to avoid unreasonable risk.

The following guidelines shall govern the Police Pension Fund’s asset allocation:

Asset Class Minimum Target Maximum

Cash and Cash Equivalents 5% 5% 5%Fixed Income 50% 50% 65%Equities 30% 45% 45%

Large Capitalization 61% 66% 71%Small/Mid Capitalization 12% 17% 22%International 5% 17% 22%


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The Trustees shall seek an overall 55%/45% balance between value and growth investing for domestic equity holdings. The Trustees shall review the portfolio target allocation quarterly and consider rebalancing through new contributions or asset account transfers.

At April 30, 2008, the Police Pension Fund had greater than five percent of its overall portfolio (excluding U.S. Treasury securities) invested in FNMA notes.

5. RECEIVABLES

The following receivables are included in other taxes receivable on the Statement of Net Assets at April 30, 2008:

GOVERNMENTAL ACTIVITIESSales Tax $ 1,842,488Motor Fuel Tax 58,675Telecommunications Tax 58,319Utility Tax 516,808Income Tax 223,628Local Use Tax 90,194Hotel/Motel Tax 58,449Auto Rental Tax 4,062

TOTAL GOVERNMENTAL ACTIVITIES $ 2,852,623

The following receivables are included in other receivables on the Statement of Net Assetsat April 30, 2008:

GOVERNMENTAL ACTIVITIESCable Franchise Fees $ 90,798Ambulance Billings 306,463Miscellaneous 45,697

TOTAL GOVERNMENTAL ACTIVITIES $ 442,958

BUSINESS-TYPE ACTIVITIESMiscellaneous $ 6,036


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6. CAPITAL ASSETS

The following is a summary of capital asset activity during the fiscal year:

BeginningBalances Increases Decreases

EndingBalance

GOVERNMENTAL ACTIVITIESCapital Assets not Being DepreciatedLand $ 1,345,904 $ - $ - $ 1,345,904Land Right of Way 10,189,787 - - 10,189,787Construction in Progress 122,900 164,203 - 287,103Total Capital Assets not Being Depreciated 11,658,591 164,203 - 11,822,794

Capital Assets Being DepreciatedBuildings 14,587,960 - 173,514 14,414,446Leasehold Improvements 750,161 - - 750,161Equipment 8,304,545 1,084,411 322,880 9,066,076Infrastructure 31,083,727 - - 31,083,727Total Capital Assets Being Depreciated 54,726,393 1,084,411 496,394 55,314,410

Less Accumulated Depreciation forBuildings 3,781,855 366,906 58,621 4,090,140Leasehold Improvements 268,773 34,227 - 303,000Equipment 6,540,228 574,731 317,880 6,797,079Infrastructure 24,330,815 664,594 - 24,995,409Total Accumulated Depreciation 34,921,671 1,640,458 376,501 36,185,628

Total Capital Assets Being Depreciated, Net 19,804,722 (556,047) 119,893 19,128,782

GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 31,463,313 $ (391,844) $ 119,893 $ 30,951,576

BeginningBalance Increases Decreases

EndingBalance

BUSINESS-TYPE ACTIVITIESCapital Assets not Being DepreciatedLand $ 140,000 $ - $ - $ 140,000Construction in Progress 434,836 47,827 434,836 47,827Total Capital Assets not Being Depreciated 574,836 47,827 434,836 187,827

Capital Assets Being DepreciatedBuildings 306,468 - - 306,468Equipment 857,716 132,554 40,118 950,152Infrastructure 16,093,043 1,553,088 65,500 17,580,631Total Capital Assets Being Depreciated 17,257,227 1,685,642 105,618 18,837,251


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6. CAPITAL ASSETS (Continued)

BeginningBalance Increases Decreases

EndingBalance

BUSINESS-TYPE ACTIVITIES (Continued)Less Accumulated Depreciation forBuildings $ 179,755 $ 6,105 $ 33,852 $ 152,008Equipment 599,759 47,464 40,118 607,105Infrastructure 6,724,853 402,824 - 7,127,677Total Accumulated Depreciation 7,504,367 456,393 73,970 7,886,790

Total Capital Assets Being Depreciated, Net 9,752,860 1,229,249 31,648 10,950,461

BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $ 10,327,696 $ 1,277,076 $ 466,484 $ 11,138,288

Depreciation expense was charged to the governmental activities functions/programs as follows:

GOVERNMENTAL ACTIVITIESGeneral Government $ 922,440Public Safety 500,668Public Works 217,350

TOTAL DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 1,640,458

7. LONG-TERM DEBT

a. Changes in General Long-Term Debt

A summary of changes in long-term debt of the Village for the year ended April 30, 2008 is as follows:

Fund DebtRetired By

BalancesMay 1 Additions Reductions

BalancesApril 30

CurrentPortion

$2,600,000 Debt Certificates due in semi-annual installments of $183,187 from February 14, 2007 to August 14, 2016, interest at 7.03%

CapitalProjects $ 2,508,203 $ - $ 193,388 $ 2,314,815 $ 207,222

The certificates were used to purchase the land held for resale.


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7. LONG-TERM DEBT (Continued)

b. Debt Service Requirements to Maturity

The annual principal and interest requirements on the debt certificates payable to maturity as of April 30, 2008 are as follows:

Year EndingApril 30, Principal Interest Total

2009 $ 207,222 $ 159,152 $ 366,3742010 222,046 144,328 366,3742011 237,930 128,444 366,3742012 254,950 111,424 366,3742013 273,188 93,186 366,3742014 292,731 73,643 366,3742015 313,671 52,703 366,3742016 336,110 30,264 366,3742017 176,967 6,220 183,187

TOTAL $ 2,314,815 $ 799,364 $ 3,114,179

c. Change in Long-Term Liabilities

During the fiscal year the following changes occurred in liabilities reported in the governmental activities:

BalanceMay 1 Issuances Retired

BalanceApril 30

CurrentPortion

Debt Certificates $ 2,508,203 $ - $ 193,388 $ 2,314,815 $ 207,222Compensated Absences 1,481,919 230,563 191,455 1,521,027 115,896Net Pension Obligation 1,538,306 383,063 - 1,921,369 -

TOTAL GOVERNMENTALACTIVITIES $ 5,528,428 $ 613,626 $ 384,843 $ 5,757,211 $ 323,118

The internal service fund reports a total long-term liability for compensated absences included in governmental activities of $1,057,445 as of April 30, 2008.

Business-Type Activities

BalanceMay 1,

Restated Issuances RetiredBalanceApril 30

Current Portion

Compensated Absences $ 104,311 $ 60,186 $ 39,067 $ 125,430 $ 31,358


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7. LONG-TERM DEBT (Continued)

d. Operating Leases

The Village leases office equipment under non-cancelable operating leases. Total costs for the lease was $88,385 for the year ended April 30, 2008. The future minimum lease payments for these leases are as follows:

2009 $ 60,0842010 50,070

TOTAL $ 110,154

8. RISK MANAGEMENT

a. Intergovernmental Risk Management Agency (IRMA)

The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is a public entity risk pool whose members are Illinois municipalities. IRMA

manages and funds first party property losses, third-party liability claims, workers’ compensation claims, and public officials’ liability claims of its member municipalities. The Village’s payments to IRMA are displayed on the financial statements as

expenditures/expenses in the appropriate funds.

Risk of loss is transferred, except that each member assumes the first $1,000 of each occurrence, and IRMA has self-insurance retentions at various amounts above that level.

Management consists of a Board of Directors comprised of one appointed representative from each member. In addition, there are two officers, a Risk Manager and a Treasurer. The Village does not exercise any control over the activities of IRMA beyond its representation on the Board of Directors.

Initial contributions are determined in advance of each membership year based on the individual member’s eligible revenue as defined in the bylaws of IRMA, and assessment factors based on past member experience and the funding need for the membership year. The Board of Directors may require that supplemental contributions be made by members to ensure adequate funds are available to meet the obligations applicable to the membership year. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. The Village is not aware of any additional amounts owed to IRMA for the current period or prior policy year at April 30, 2008.


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8. RISK MANAGEMENT (Continued)

b. Intergovernmental Personnel Benefit Cooperative (IPBC)

The Village participates in the Intergovernmental Personnel Benefit Cooperative (IPBC). IPBC is a public entity risk pool established by certain units of local government in Illinois to administer some or all of the personnel benefit programs (primarily medical, dental, and life insurance coverage) offered by these members to their officers and employees and to the officers and employees of certain other governmental, quasi governmental, and nonprofit public service entities.

The IPBC receives, processes, and pays such claims as may come within the benefit program of each member. Management consists of a Board of Directors comprised of one appointed representative from each member. In addition, there are two officers: a Benefit Administrator and a Treasurer. The Village does not exercise any control over the activities of the IPBC beyond its representation on the Board of Directors.

9. CONTINGENT LIABILITIES

a. Litigation

The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village’s attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village.

b. 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, constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial.


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10. INDIVIDUAL FUND DISCLOSURES

a. Due From/To Other Funds

Individual fund interfund receivables/payables are as follows:

Receivable Fund Payable Fund Amount

General Fiduciary $ 200,000Internal Service General 885,600Water Operations General 510,667Water Operations IMRF/Social Security 995,000Nonmajor Governmental General 267,439

TOTAL $ 2,858,706

The purposes of the Due To/Due From other funds are as follows:

• $200,000 due to the General Fund from the Fiduciary Fund for short-term cash deficit. Repayment is expected within one year.

• $885,600 due to the Internal Service Fund from the General Fund for the funding of the employee benefit sick time liability. Repayment is expected within one year.

• $510,667 due to the Water Operations Fund from the General Fund for short-term cash deficit. Repayment is expected within one year.

• $995,000 due to the Water Operations Fund from the IMRF/Social Security Fund to fund Early Retirement Incentive (ERI) liability. Repayment is expected within one year.

• $267,439 due to a Nonmajor Governmental Fund from the General Fund for short-term cash deficit. Repayment is expected within one year.

b. Interfund Transfers

Interfund transfers between funds for the year ended April 30, 2008 were as follows:

TransfersIn

TransfersOut

Capital ProjectsWater Operations $ 200,000 $ -Nonmajor Governmental Funds - 500,000

Total Capital Projects 200,000 500,000


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10. INDIVIDUAL FUND DISCLOSURES (Continued)

b. Interfund Transfers (Continued)

TransfersIn

TransfersOut

Water OperationsCapital Projects $ - $ 200,000Nonmajor Governmental Funds - 279,995

Total Water Operations - 479,995

Nonmajor Governmental FundsCapital Projects 500,000 -Water Operations 279,995 -

Total Nonmajor Governmental Funds 779,995 -

TOTAL $ 979,995 $ 979,995

The purposes of significant transfers are as follows:

• $200,000 transferred to the Capital Projects Fund from the Water Operations Fund as a payment in lieu of taxes. This transfer will not be repaid.

• $500,000 transferred to Nonmajor Governmental Funds from the Capital Projects Fund as a payment in lieu of taxes. This transfer will not be repaid.

• $279,995 transferred to Nonmajor Governmental Funds from the Water Operations Fund as a payment in lieu of taxes. This transfer will not be repaid.

11. OTHER POST-RETIREMENT BENEFITS

In addition to providing pension benefits, the Village provides post-employment health care benefits, in accordance with the employee’s employment agreement, to certain employees who retire from the Village. Currently, 38 retirees are receiving benefits. The post-employment health care benefits are financed on a pay-as-you-go basis. The Village pays 100 percent of the cost of the health care premiums. The Village recognized $29,218 in expenditures for post-employment health care benefits during the fiscal year.

12. DEFINED BENEFIT PENSION PLANS

The Village contributes to two defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent-multiple-employer public employee retirement system and the Police Pension Plan which is a single-employer pension plan. The benefits, benefit levels, employee contributions, and employer contributions for plans are governed by ILCS and can only be amended by the Illinois General Assembly. None of the pension plans issue separate reports on the pension plans. However, IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.


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12. DEFINED BENEFIT PENSION PLANS (Continued)

a. Plan Descriptions

Illinois Municipal Retirement Fund (IMRF)

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. Pension benefits vest after eight years of service. Participating members who retire at or after age 60 with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. IMRF also provides death and disability benefits.

These benefit provisions and all other requirements are established by state statute. Participating members are required to contribute 4.5% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund the

IMRF as specified by statute. The employer contribution for the calendar year ended December 31, 2007 was 12.17% of covered payroll.

Police Pension Plan

Police sworn personnel are covered by the Police Pension Plan. Although this is asingle-employer pension plan, the defined benefits and employee and employer contribution levels are governed by ILCS (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. The Police Pension Plan does not issue separate financial statements. At April 30, 2008, the Police Pension Plan membership consisted of:

Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but notyet Receiving Them 27

Current EmployeesVested 23Nonvested 18

TOTAL 68


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a. Plan Descriptions (Continued)

Police Pension Plan (Continued)

The Police Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half 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 2.50% of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75.00% 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 3.00% of the original pension and 3.00% compounded annually thereafter.

Employees are required by ILCS 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. Contributions are recognized when due pursuant to formal commitments, as well as statutory or contractual requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of the Police Pension Plan. The costs of administrating the Police Pension Plan are financed through investment earnings. The Village is required to contribute the remaining amounts necessary to finance the Police Pension Plan as actuarially determined by an enrolled actuary. Effective July 1, 1993, the Village has until the year 2033 to fully fund the past service cost for the Police Pension Plan. For the year ended April 30, 2008, the Village’s contribution was 11.80% of covered payroll.

b. Significant Investments

There were no significant investments (other than U.S. Government guaranteed obligations) in any one organization that represent 5.00% or more of plan net assets for the Police Pension Plan. Information for the IMRF is not available.


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c. Annual Pension Costs

Employer contributions have been determined as follows:

IllinoisMunicipalRetirement

PolicePension

Actuarial Valuation Date December 31, 2005

May 1,2007

Actuarial Cost Method Entry-age Normal Entry-age Normal

Asset Valuation Method 5 Year Smoothed Market

Market Value

Amortization Method Level Percentageof Payroll

Level Percentage of Payroll

Amortization Period 27 Years, Closed 29 Years, Closed

Significant Actuarial Assumptionsa) Rate of Return on 7.50% 7.50%

Present and Future Assets Compounded CompoundedAnnually Annually

b) Projected Salary Increase - 4.00% 5.50%Attributable to Inflation Compounded Compounded

Annually Annually

c) Additional Projected .40% to 10.00% 3.00%Salary Increases -Seniority/Merit

d) Post-Retirement Benefit Increases 3.00% 3.00%

Employer annual pension cost (APC), actual contributions, and the net pension obligation (asset) (NPO) are as follows. The NPO (asset) is the cumulative difference between the APC and the contributions actually made.


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c. Annual Pension Costs (Continued)

IllinoisMunicipal

Retirement*Police

Pension*

Annual Pension Cost $ 662,305 $ 804,165(APC) 725,136 895,600

713,810 985,159

Actual Contribution $ 662,305 $ 563,024725,136 553,137713,810 602,096

Percentage of APC Contributed 100.00% 70.00%100.00 61.80100.00 61.10

NPO (Asset) $ - $ 1,195,843- 1,538,306- 1,921,369

* Police Pension Plan information presented is for the fiscal years ended April 30, 2005, 2006, and 2007. The information for the Illinois Municipal Retirement Fund is for the calendar years 2005, 2006, and 2007.

The NPO (asset) has been calculated as follows as of April 30, 2007:

PolicePension

Annual Required Contributions $ 943,107Interest on Net Pension Obligation 115,373Adjustment to Annual Required Contribution (73,321)Annual Pension Cost 985,159Contributions Made 602,096Increase (Decrease) in Net Pension Obligation 383,063Net Pension Obligation (Asset), May 1 1,538,306

NET PENSION OBLIGATION (ASSET), APRIL 30 $ 1,921,369


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13. WESTMONT PUBLIC LIBRARY

a. Summary of Significant Accounting Policies

The accounting policies of the Library conform to generally accepted accounting principles as applicable to governments. The Government Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant policies:

1) Fund Accounting

The accounts of the Library are organized on the basis of funds each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues and expenditures, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the financial statements in this report into one fund type and one broad fund category as follows:

Governmental Fund Types

Governmental funds are those through which most governmental functions of the Library are financed. The Library’s expendable resources are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following are the Library’s governmental fund types:

General Fund is the general operating fund of the Library. It is used to account for all financial resources except those required to be accounted for in another fund.

Capital Projects Fund is used to account for the financial resources to be used for the acquisition or construction of major capital facilities.


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13. WESTMONT PUBLIC LIBRARY (Continued)

a. Summary of Significant Accounting Policies (Continued)

2) Basis of Accounting

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses recorded when a liability is incurred. Property taxes are recognized as revenue in the year for which they are levied (i.e., intended to finance). Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met.

The modified accrual basis of accounting is followed by the governmental fundson the fund financial statements. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Library considers property taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due.

b. Deposits and Investments

The Library does not have a separate investment policy, but instead follow the guidelines established by ILCS. State statutes authorize the Library to make deposits/invest in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreements to repurchase these same obligations, short-term commercial paper rated within the highest classifications by at least two standard rating services, Illinois Funds and the Illinois Metropolitan Investment Fund.


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b. Deposits and Investments (Continued)

Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price, which is the price for which the investment could be sold.

1) Library Deposits with Financial Institutions

Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure, the Library’s deposits may not be returned to it. As of April 30, 2008, the Library had deposits totaling $115,257 that were uninsured and uncollateralized. The Library does not have an explicit policy for collateralization of deposits.

2) Library Investments

The following table presents the investments and maturities of the Library’s debt securities as of April 30, 2008:

Investment Maturities in YearsInvestment Type Fair Value Less than 1 1-5 6-10 Greater than 10

Illinois Funds $ 568,970 $ 568,970 $ - $ - $ -

Total $ 568,970 $ 568,970 $ - $ - $ -

The Library limits its exposure to interest rate risk by only investing in Illinois Funds, which are highly liquid investments.

The Library limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by investing exclusively in Illinois Funds. Illinois Funds is rated AAA.

Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Library will not be able to recover the value of its investments that are in possession of an outside party. Illinois Funds are not subject to custodial credit risk.

Concentration of credit risk - The Library invests exclusively in Illinois Funds which are considered internally diversified and not subject to concentration of credit risk.


- 44 -


c. Receivables - Taxes

The following information gives significant dates on the property tax calendar of the Library.

- The 2007 property tax lien date is January 1, 2007;

- The annual tax levy ordinance for the 2007 levy was passed on December 17, 2007;

- Property taxes for the 2007 levy are due to the County Collector in two installments, June 1, 2008 and September 1, 2008;

- Significant amounts of property taxes for the 2007 levy will be distributed to the Village during June, July, August, and September 2008. The remaining distributions are expected to be received in October and November 2008.

The 2008 tax levy, which attached as an enforceable lien on property as of January 1, 2008, has not been recorded as a receivable as of April 30, 2008 as the tax has not yet been levied by the Village, and will not be levied until December 2008 and, therefore,the levy is not measurable at April 30, 2008.

d. Capital Assets

Capital asset activity for the year ended April 30, 2008 was as follows:

Beginning EndingBalance Increases Decreases Balance

GOVERNMENTAL ACTIVITIESCapital Assets not Being DepreciatedLand $ 450,000 $ - $ - $ 450,000Total Capital Assets not Being Depreciated 450,000 - - 450,000

Capital Assets Being DepreciatedBuilding 3,845,021 66,940 - 3,911,961Furniture and Equipment 311,270 52,520 9,990 353,800Total Capital Assets Being Depreciated 4,156,291 119,460 9,990 4,265,761

Less Accumulated Depreciation forBuilding 1,629,475 97,701 - 1,727,176Furniture and Equipment 244,665 16,481 9,332 251,814Total Accumulated Depreciation 1,874,140 114,182 9,332 1,978,990

Total Capital Assets Being Depreciated, Net 2,282,151 5,278 658 2,286,771

GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 2,732,151 $ 5,278 $ 658 $ 2,736,771


- 45 -


d. Capital Assets (Continued)

Depreciation expense was charged to the governmental activities functions/programs as follows:

GOVERNMENTAL ACTIVITIESCulture and Recreation $ 114,182

TOTAL DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 114,182

e. Long-Term Debt

Changes in Long-Term Debt

A summary of changes in the component unit long-term debt is as follows:

BalanceMay 1 Issuances Retired

BalanceApril 30

Current Portion

Compensated Absences $ 7,455 $ 682 $ 1,491 $ 6,646 $ 1,329

TOTAL $ 7,455 $ 682 $ 1,491 $ 6,646 $ 1,329

REQUIRED SUPPLEMENTARY INFORMATION

Original Varianceand Final OverBudget Actual (Under)

REVENUES Taxes 14,155,375$ 14,240,247$ 84,872$ Licenses, Permits, and Fees 2,669,850 3,043,313 373,463 Intergovernmental 308,960 50,375 (258,585) Charges for Services 148,500 253,193 104,693 Fines and Forfeits 347,015 371,681 24,666 Investment Income 113,400 49,154 (64,246) Miscellaneous 45,000 106,297 61,297

Total Revenues 17,788,100 18,114,260 326,160

EXPENDITURESGeneral Government 4,042,160 3,843,809 (198,351) Public Safety 11,446,360 11,845,536 399,176 Public Works 4,021,495 3,897,679 (123,816)

Total Expenditures 19,510,015 19,587,024 77,009

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,721,915) (1,472,764) 249,151

OTHER FINANCING SOURCES (USES)Issuance of Debt Certificates 415,000 - (415,000)

Total Other Financing Sources (Uses) 415,000 - (415,000)

NET CHANGE IN FUND BALANCE (1,306,915)$ (1,472,764) (165,849)$

FUND BALANCE, MAY 1 2,170,759

FUND BALANCE, APRIL 30 697,995$



SCHEDULE OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND

(See independent auditor's report.)- 46 -


REVENUES Taxes

Property Taxes 1,715,615$ 1,712,707$ (2,908)$ Charges for Services - 7,410 7,410 Investment Income 28,200 31,677 3,477

Total Revenues 1,743,815 1,751,794 7,979

EXPENDITURESGeneral Government

Personnel Services 301,272 636,440 335,168 Public Safety

Personnel Services 828,498 1,750,211 921,713 Public Works

Personnel Services 376,590 795,551 418,961

Total Expenditures 1,506,360 3,182,202 1,675,842

NET CHANGE IN FUND BALANCE 237,455$ (1,430,408) (1,667,863)$

FUND BALANCE, MAY 1 379,395

FUND BALANCE (DEFICIT), APRIL 30 (1,051,013)$




IMRF/SOCIAL SECURITY FUND



REVENUES Intergovernmental

Motor Fuel Tax Allotments 700,000$ 719,766$ 19,766$ CMAQ Grant Reimbursement - 5,992 5,992 IDOT Grant Reimbursement 81,510 42,094 (39,416)

Investment Income 79,200 78,311 (889)

Total Revenues 860,710 846,163 (14,547)

EXPENDITURESPublic Works

Street Improvements 1,008,800 360,806 (647,994)

Total Expenditures 1,008,800 360,806 (647,994)

NET CHANGE IN FUND BALANCE (148,090)$ 485,357 633,447$


FUND BALANCE, APRIL 30 2,207,024$



MOTOR FUEL TAX FUNDCHANGES IN FUND BALANCE - BUDGET AND ACTUAL

SCHEDULE OF REVENUES, EXPENDITURES, AND


(4) UAAL(2) Unfunded (OAAL)

Actuarial (Overfunded) As aActuarial (1) Accrued (3) AAL PercentageValuation Actuarial Liability Funded (UAAL) (5) of Covered

Date Value of (AAL) Ratio (OAAL) Covered PayrollDecember 31, Assets Entry-Age (1) / (2) (2) - (1) Payroll (4) / (5)

2002 12,787,299$ 14,054,775$ 90.98% 1,267,476$ 5,125,548$ 24.73%

2003 12,061,971 14,546,078 82.92% 2,484,107 5,536,729 44.87%

2004 12,608,267 16,269,369 77.50% 3,661,102 5,822,994 62.87%

2005 13,023,370 16,754,680 77.73% 3,731,310 5,950,631 62.70%

2006 10,460,233 15,978,903 65.46% 5,518,670 5,914,647 93.31%

2007 12,026,659 15,974,195 75.29% 3,947,536 5,865,329 67.30%

April 30, 2008


SCHEDULE OF FUNDING PROGRESSILLINOIS MUNICIPAL RETIREMENT FUND


(2) UAALActuarial (4) As a

Actuarial (1) Accrued (3) Unfunded PercentageValuation Actuarial Liability Funded AAL (5) of Covered

Date Value of (AAL) Ratio (UAAL) Covered PayrollApril 30, Assets Entry-Age (1) / (2) (2) - (1) Payroll (4) / (5)

2002 15,456,156$ 23,393,164$ 66.07% 7,937,008$ 2,944,160$ 269.58%

2003 15,635,134 24,438,993 63.98% 8,803,859 2,898,081 303.78%

2004 16,325,544 26,560,407 61.47% 10,234,863 2,972,582 344.31%

2005 16,697,861 28,105,360 59.41% 11,407,499 3,069,348 371.66%

2006 17,596,264 29,533,827 59.58% 11,937,563 3,357,700 355.53%

2007 18,776,056 33,170,873 56.60% 14,394,817 3,400,977 423.26%

April 30, 2008


SCHEDULE OF FUNDING PROGRESSPOLICE PENSION FUND


AnnualRequired

Calendar Employer Contribution PercentageYear Contributions (ARC) Contributed

2002 402,868$ 402,868$ 100.00%

2003 485,571 485,571 100.00%

2004 579,388 579,388 100.00%

2005 662,305 662,305 100.00%

2006 725,136 725,136 100.00%

2007 713,810 713,810 100.00%


SCHEDULE OF EMPLOYER CONTRIBUTIONSILLINOIS MUNICIPAL RETIREMENT FUND

April 30, 2008


AnnualRequired

Fiscal Employer Contribution PercentageYear Contributions (ARC) Contributed

2002 359,680$ 509,391$ 70.61%

2003 370,684 580,470 63.86%

2004 352,016 661,312 53.23%

2005 563,024 775,661 72.59%

2006 553,137 861,348 64.22%

2007 602,096 943,107 63.84%

April 30, 2008


SCHEDULE OF EMPLOYER CONTRIBUTIONSPOLICE PENSION FUND


- 53 -


NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

April 30, 2008

BUDGETS AND BUDGETARY ACCOUNTING

The Village follows these procedures in establishing the budgetary data reflected in the financial statements:

a. A proposed operating budget for all funds (except the Library Debt Service and Working Cash Funds) of the Village is submitted to the Board of Trustees for the fiscal year. The operating budget includes proposed expenditures and the means of financing them.

b. Budget hearings are conducted to obtain taxpayer comments.

c. The budget is used as the basis for the appropriation ordinance, which is legally enacted bythe Board.

d. The appropriation may be amended by the Board of Trustees, although no amendments occurred this year.

e. Budgets are adopted on a basis consistent with GAAP.

The level of control (level at which expenditures may not exceed appropriations) is the Fund. Appropriations lapse at year end.

(A) (B)(B) - (A)Variance

Fund Budget Appropriation Actual Over (Under)

General $ 19,510,015 $ 21,860,500 $ 19,587,024 $ (2,273,476)IMRF/Social Security 1,506,360 1,905,000 3,182,202 1,277,202Capital Projects 1,467,085 3,222,500 1,192,822 (2,029,678)Motor Fuel Tax 1,008,800 1,300,000 360,806 (939,194)Convention and Tourism 609,405 713,000 438,240 (274,760)Vehicle Replacement 743,390 - 219,024 219,024Water Operations 5,597,815 6,489,500 3,706,839 (2,782,661)

MAJOR GOVERNMENTAL FUNDS

VarianceFinal Over

Budget Actual (Under)

GENERAL GOVERNMENTLegislation

Personnel Services 38,000$ 57,984$ 19,984$ Contractual Services 702,200 481,902 (220,298) Commodities 3,000 3,876 876 Other Expenditures 114,255 116,035 1,780

Total Legislation 857,455 659,797 (197,658)

Clerks' OfficePersonnel Services 224,395 228,004 3,609 Contractual Services 1,150 3,456 2,306 Commodities 2,250 2,337 87 Other Expenditures 61,900 74,233 12,333

Total Clerks' Office 289,695 308,030 18,335

Information TechnologiesPersonnel Services 227,975 215,216 (12,759) Contractual Services 116,250 109,174 (7,076) Commodities 20,325 23,258 2,933 Other Expenditures 198,125 183,056 (15,069) Capital Outlay 530,300 528,649 (1,651)

Total Information Technologies 1,092,975 1,059,353 (33,622)

Economic DevelopmentPersonnel Services 611,005 610,752 (253) Contractual Services 119,180 62,177 (57,003) Commodities 3,655 3,080 (575) Other Expenditures 10,550 14,259 3,709

Total Economic Development 744,390 690,268 (54,122)

Fire and Police CommissionContractual Services 14,400 35,886 21,486 Commodities 280 401 121 Other Expenditures 5,875 5,882 7

Total Fire and Police Commission 20,555 42,169 21,614

Planning and Zoning CommissionContractual Services 4,200 2,536 (1,664) Commodities 250 - (250) Other Expenditures 35,100 13,904 (21,196)

Total Planning and Zoning Commission 39,550 16,440 (23,110)


SCHEDULE OF EXPENDITURES - BUDGET AND ACTUALGENERAL FUND


(This schedule is continued on the following pages.)- 54 -

VarianceFinal Over


GENERAL GOVERNMENT (Continued)Communications Commission

Personnel Services 68,500$ 77,941$ 9,441$ Commodities 4,745 1,834 (2,911) Other Expenditures 5,870 3,690 (2,180) Capital Outlay 200 1,217 1,017

Total Communications Commission 79,315 84,682 5,367

Environmental Improvement CommissionContractual Services 3,300 2,220 (1,080) Commodities 25 - (25) Other Expenditures 1,500 3,185 1,685

Total Environmental Improvement Commission 4,825 5,405 580

Community RelationsContractual Services 19,200 9,589 (9,611) Commodities 25 - (25) Other Expenditures 61,200 56,448 (4,752)

Total Community Relations 80,425 66,037 (14,388)

AdministrationPersonnel Services 282,755 289,188 6,433 Contractual Services 15,450 32,427 16,977 Commodities 6,000 7,541 1,541 Other Expenditures 24,980 24,297 (683)

Total Administration 329,185 353,453 24,268

Safety CompliancePersonnel Services 89,800 83,581 (6,219) Contractual Services 2,340 1,791 (549) Commodities 1,205 348 (857) Other Expenditures 2,800 2,304 (496)

Total Safety Compliance 96,145 88,024 (8,121)

FinancePersonnel Services 317,805 324,708 6,903 Contractual Services 60,630 114,115 53,485 Commodities 2,910 2,612 (298) Other Expenditures 25,550 27,525 1,975 Capital Outlay 750 1,191 441

Total Finance 407,645 470,151 62,506

Total General Government 4,042,160 3,843,809 (198,351)


SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued)GENERAL FUND



VarianceFinal Over





PUBLIC SAFETYPolice Administration

Personnel Services 461,330$ 478,484$ 17,154$ Police Pension Contribution 599,760 599,873 113 Contractual Services 183,170 174,964 (8,206) Commodities 16,100 18,356 2,256 Other Expenditures 110,925 97,496 (13,429) Capital Outlay 1,000 551 (449)

Total Police Administration 1,372,285 1,369,724 (2,561)

Police PatrolPersonnel Services 3,690,875 4,000,276 309,401 Contractual Services 236,700 234,803 (1,897) Commodities 70,300 60,470 (9,830) Other Expenditures 3,700 4,123 423 Capital Outlay 80,380 66,835 (13,545)

Total Police Patrol 4,081,955 4,366,507 284,552

Police DetectivesPersonnel Services 611,350 665,051 53,701 Other Expenditures - 6,288 6,288

Total Police Detectives 611,350 671,339 59,989

Police DispatchPersonnel Services 909,870 815,312 (94,558) Contractual Services - 439 439

Total Police Dispatch 909,870 815,751 (94,119)

Fire Suppression and ControlPersonnel Services 1,382,010 1,430,634 48,624 Contractual Services 213,120 170,834 (42,286) Commodities 64,750 51,673 (13,077) Other Expenditures 212,460 47,469 (164,991) Capital Outlay 52,700 53,914 1,214

Total Fire Suppression and Control 1,925,040 1,754,524 (170,516)

Ambulance/ParamedicsPersonnel Services 1,403,710 1,403,012 (698) Contractual Services 919,335 922,284 2,949 Commodities 22,150 21,832 (318) Other Expenditures 5,900 4,538 (1,362)


VarianceFinal Over





PUBLIC SAFETY (Continued)Ambulance/Paramedics (Continued)

Capital Outlay 73,510$ 70,035$ (3,475)$ Bad Debt Expenditure - 320,763 320,763

Total Ambulance/Paramedics 2,424,605 2,742,464 317,859

ESDA CompliancePersonnel Services 90,675 87,232 (3,443) Contractual Services 3,130 3,006 (124) Commodities 5,150 4,189 (961) Other Expenditures 300 117 (183)

Total ESDA Compliance 99,255 94,544 (4,711)

Fire ProtectionOther Expenditures 22,000 30,683 8,683

Total Fire Protection 22,000 30,683 8,683

Total Public Safety 11,446,360 11,845,536 399,176

PUBLIC WORKSEngineering

Personnel Services 266,605 259,906 (6,699) Contractual Services 89,365 73,929 (15,436) Commodities 32,550 22,591 (9,959) Other Expenditures 975 592 (383)

Total Engineering 389,495 357,018 (32,477)

Streets - AdministrationPersonnel Services 283,450 285,150 1,700 Contractual Services 61,920 39,644 (22,276) Commodities 19,700 10,395 (9,305) Other Expenditures 11,265 5,473 (5,792) Capital Outlay 33,100 13,905 (19,195)

Total Streets - Administration 409,435 354,567 (54,868)

Streets - MaintenancePersonnel Services 1,224,055 1,226,875 2,820 Contractual Services 352,750 375,289 22,539 Commodities 152,450 228,122 75,672 Other Expenditures 6,930 3,888 (3,042) Capital Outlay 301,550 217,415 (84,135)

Total Streets - Maintenance 2,037,735 2,051,589 13,854

(This schedule is continued on the following page.)- 57 -

VarianceFinal Over





PUBLIC WORKS (Continued)Fleet Maintenance

Personnel Services 286,930$ 235,546$ (51,384)$ Contractual Services 41,500 64,315 22,815 Commodities 419,950 404,332 (15,618) Other Expenditures 5,000 610 (4,390) Capital Outlay 4,300 4,260 (40)

Subtotal 757,680 709,063 (48,617)

Less Contributions from Other Departments (396,450) (363,974) 32,476

Total Fleet Maintenance 361,230 345,089 (16,141)

Health and SanitationContractual Services 823,600 789,416 (34,184)

Total Health and Sanitation 823,600 789,416 (34,184)

Total Public Works 4,021,495 3,897,679 (123,816)

TOTAL EXPENDITURES 19,510,015$ 19,587,024$ 77,009$


VarianceFinal Over


REVENUES Taxes

Utility Taxes 505,000$ 543,576$ 38,576$ Investment Income 58,200 67,111 8,911

Total Revenues 563,200 610,687 47,487

EXPENDITURESCapital Outlay

Contractual Services 158,000 117,901 (40,099) Capital Improvements 942,710 708,546 (234,164)

Debt ServicePrincipal 193,385 193,388 3 Interest and Fiscal Charges 172,990 172,987 (3)

Total Expenditures 1,467,085 1,192,822 (274,263)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (903,885) (582,135) 321,750

OTHER FINANCING SOURCES (USES)Proceeds from Sale of Capital Assets 250,000 255,614 5,614 Transfers In 200,000 200,000 - Transfers (Out) (500,000) (500,000) -

Total Other Financing Sources (Uses) (50,000) (44,386) 5,614

NET CHANGE IN FUND BALANCE (953,885)$ (626,521) 327,364$






CAPITAL PROJECTS FUND



The Village reports the following nonmajor governmental funds:

The Emergency Reserve Fund accounts for interest earnings with no budgeted expenditures; it functions as a savings fund.

The Convention & Tourism Fund accounts for the expenditures of the hotel/motel tax revenues.

The Vehicle Replacement Fund

Capital TotalProjects Nonmajor

Emergency Convention Vehicle GovernmentalReserve and Tourism Replacement Funds

Cash and Cash Equivalents -$ 235,191$ 7,692$ 242,883$ Investments 586,223 471,410 609,004 1,666,637 Receivables (Net, Where Applicable,of Allowances for Uncollectibles)Accounts - 2,504 - 2,504 Other Taxes - 58,449 - 58,449

Due from Other Funds - 267,439 - 267,439

TOTAL ASSETS 586,223$ 1,034,993$ 616,696$ 2,237,912$

LIABILITIESAccounts Payable -$ 8,273$ -$ 8,273$ Accrued Payroll - 2,526 - 2,526 Deferred Revenue - 3,980 - 3,980

Total Liabilities - 14,779 - 14,779

FUND BALANCESReserved for Special Purposes 586,223 - 616,696 1,202,919 Reserved for Convention and Tourism - 1,020,214 - 1,020,214

Total Fund Balances 586,223 1,020,214 616,696 2,223,133

TOTAL LIABILITIES ANDFUND BALANCES 586,223$ 1,034,993$ 616,696$ 2,237,912$


NONMAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET

April 30, 2008

ASSETS

LIABILITIES AND FUND BALANCES

SpecialRevenue


Capital TotalProjects Nonmajor

Emergency Convention Vehicle GovernmentalReserve and Tourism Replacement Funds

REVENUESTaxes -$ 794,191$ -$ 794,191$ Investment Income 30,388 46,689 21,833 98,910 Miscellaneous Income - 36,496 - 36,496

Total Revenues 30,388 877,376 21,833 929,597

EXPENDITURES General Government - 438,240 - 438,240 Capital Outlay - - 219,024 219,024

Total Expenditures - 438,240 219,024 657,264

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 30,388 439,136 (197,191) 272,333

OTHER FINANCING SOURCES (USES)Proceeds from Sale of Capital Assets - - 33,892 33,892 Transfers In - - 779,995 779,995

Total Other Financing Sources (Uses) - - 813,887 813,887

NET CHANGE IN FUND BALANCES 30,388 439,136 616,696 1,086,220

FUND BALANCES, MAY 1 555,835 581,078 - 1,136,913

FUND BALANCES, APRIL 30 586,223$ 1,020,214$ 616,696$ 2,223,133$

SpecialRevenue



COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES



VarianceFinal Over


REVENUES Investment Income 21,200$ 30,388$ 9,188$

Total Revenues 21,200 30,388 9,188

EXPENDITURESNone - - -

Total Expenditures - - -

NET CHANGE IN FUND BALANCE 21,200$ 30,388 9,188$





EMERGENCY RESERVE FUNDCHANGES IN FUND BALANCE - BUDGET AND ACTUAL

SCHEDULE OF REVENUES, EXPENDITURES, AND


VarianceFinal Over


REVENUES Taxes

Hotel/Motel Taxes 700,000$ 794,191$ 94,191$ Investment Income 46,700 46,689 (11) Miscellaneous 33,825 36,496 2,671

Total Revenues 780,525 877,376 96,851

EXPENDITURESGeneral Government

Convention and TourismPersonnel Services 30,480 31,606 1,126 Contractual Services 262,000 241,185 (20,815) Other Expenditures 68,270 67,319 (951) Capital Outlay 50,000 - (50,000)

Westmont CentrePersonnel Services 38,660 37,495 (1,165) Contractual Services 50,045 55,790 5,745 Commodities 3,200 1,747 (1,453) Capital Outlay 6,750 3,098 (3,652)

Debt ServicePrincipal 100,000 - (100,000)

Total Expenditures 609,405 438,240 (171,165)







CONVENTION AND TOURISM FUND


VarianceFinal Over


REVENUES Investment Income -$ 21,833$ 21,833$

Total Revenues - 21,833 21,833

EXPENDITURESCapital Outlay

Contractual Services - 1,338 1,338 Vehicles 743,390 217,686 (525,704)

Total Expenditures 743,390 219,024 (524,366)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (743,390) (197,191) 546,199

OTHER FINANCING SOURCES (USES)Proceeds from Sale of Capital Assets - 33,892 33,892 Transfers In 779,995 779,995 -

Total Other Financing Sources (Uses) 779,995 813,887 33,892


FUND BALANCE, MAY 1 -





VEHICLE REPLACEMENT FUND


MAJOR PROPRIETARY FUND


SCHEDULE OF REVENUES, EXPENSES,AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL

WATER OPERATIONS FUND


VarianceFinal Over


OPERATING REVENUESCharges For Services

Water Fees 5,043,900$ 4,888,679$ (155,221)$ Miscellaneous 2,000 8,379 6,379

Total Operating Revenues 5,045,900 4,897,058 (148,842)

OPERATING EXPENSESEXCLUDING DEPRECIATION

OperationsPersonnel Services 1,102,240 1,155,708 53,468 Contractual Services 2,340,600 1,823,284 (517,316) Commodities 156,750 110,416 (46,334) Other Expenses 147,500 91,240 (56,260) Capital Outlay 1,850,725 69,798 (1,780,927)

Total Operating Expenses ExcludingDepreciation 5,597,815 3,250,446 (2,347,369)

OPERATING INCOME (LOSS) BEFOREDEPRECIATION (551,915) 1,646,612 2,198,527

DEPRECIATION - 456,393 456,393

OPERATING INCOME (LOSS) (551,915) 1,190,219 1,742,134

NONOPERATING REVENUES (EXPENSES)Tap-On Connection Fees 138,000 63,874 (74,126) Investment Income 114,700 170,933 56,233 Gain/Loss on Sale of Capital Assets 201,000 159,085 (41,915)

Total Nonoperating Revenues (Expenses) 453,700 393,892 (59,808)

NET INCOME (LOSS) BEFORE TRANSFERS (98,215) 1,584,111 1,682,326

TRANSFERS (OUT) (479,995) (479,995) -

CHANGE IN NET ASSETS (578,210)$ 1,104,116 1,682,326$

NET ASSETS, MAY 1 14,022,604

NET ASSETS, APRIL 30 15,126,720$


FIDUCIARY FUND

SCHEDULE OF CHANGES IN ASSETS AND LIABILITIESCONSTRUCTION AND PERFORMANCE BOND FUND


Balances BalancesMay 1 Additions Deletions April 30

ASSETS

Cash and Cash Equivalents 26,914$ 254,244$ 285,424$ (4,266)$ Investments 1,006,594 43,274 43,467 1,006,401 Receivables

Accrued Interest 1,000 - 1,000 -

TOTAL ASSETS 1,034,508$ 297,518$ 329,891$ 1,002,135$

LIABILITIES

Accounts Payable 13,200$ -$ 13,200$ -$ Deposits Payable 1,021,308 254,244 273,417 1,002,135

TOTAL LIABILITIES 1,034,508$ 254,244$ 286,617$ 1,002,135$



STATISTICAL SECTION

This part of the Village of Westmont, Illinois’ 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 Village’s overall financial health.

Contents Page (s)

Financial TrendsThese schedules contain trend information to help the reader understand how the Village’s financial performance and well-being have changed over time. 67-72

Revenue CapacityThese schedules contain information to help the reader assess the Village’s most significant local revenue source, the property tax. 73-77

Debt CapacityThese schedules present information to help the reader assess the affordability of the Village’s current levels of outstanding debt and the Village’s ability to issue additional debt in the future. 78

Demographic and Economic InformationThese schedules offer demographic and economic indicators to help the reader understand the environment within which the Village’s financial activities take place. 79-81

Operating InformationThese schedules contain service and infrastructure data to help the reader understand how the information in the Village’s financial report relates to the services the Village provides and the activities it performs. 82-83

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Village implemented GASB Statement 34 in 2005; schedules presenting government-wide information include information beginning in that year.

Fiscal Year 2005 2006 2007 2008

GOVERNMENTAL ACTIVITIESInvested in Capital AssetsNet of Related Debt 31,113,356$ 31,513,270$ 31,463,313$ 30,951,576$

Restricted ForPension Contributions 218,915 270,687 379,395 - Maintenance of Roadways 1,291,876 1,409,315 1,721,667 2,207,024 Special Purposes 1,876,198 1,691,734 4,537,500 2,565,228 Convention and Tourism 57,324 16,251 581,078 1,020,214

Unrestricted 1,041,539 897,349 (2,133,821) (2,801,426)

TOTAL GOVERNMENTAL ACTIVITIES 35,599,208$ 35,798,606$ 36,549,132$ 33,942,616$

BUSINESS-TYPE ACTIVITIESInvested in Capital AssetsNet of Related Debt 9,668,037$ 9,461,910$ 10,327,696$ 11,138,288$

Restricted - - - - Unrestricted 4,118,180 4,517,415 3,694,908 3,988,432

TOTAL BUSINESS-TYPE ACTIVITIES 13,786,217$ 13,979,325$ 14,022,604$ 15,126,720$

PRIMARY GOVERNMENTInvested in Capital AssetsNet of Related Debt 40,781,393$ 40,975,180$ 41,791,009$ 42,089,864$

Restricted 3,444,313 3,387,987 7,219,640 5,792,466 Unrestricted 5,159,719 5,414,764 1,561,087 1,187,006

TOTAL PRIMARY GOVERNMENT 49,385,425$ 49,777,931$ 50,571,736$ 49,069,336$

Data Source

Audited Financial Statements


NET ASSETS BY COMPONENT

Last Four Fiscal Years

- 67 -

Fiscal Year 2005 2006 2007 2008

EXPENSESGovernmental Activities

General Government 4,704,853$ 3,539,787$ 4,499,421$ 5,592,329$ Public Safety 11,532,852 11,838,711 12,532,404 13,969,469 Public Works 4,530,192 5,284,451 4,574,973 5,698,273 Interest and Fiscal Charges on

Long-Term Debt 41,386 2,491 128,125 170,155

Total Governmental Activities Expenses 20,809,283 20,665,440 21,734,923 25,430,226

Business-Type ActivitiesWater 3,620,917 3,674,619 3,634,191 3,547,754

Total Business-Type Activities Expenses 3,620,917 3,674,619 3,634,191 3,547,754

TOTAL PRIMARY GOVERNMENT EXPENSES 24,430,200$ 24,340,059$ 25,369,114$ 28,977,980$

PROGRAM REVENUESGovernmental Activities

Charges for ServicesGeneral Government 1,168,844$ 1,283,684$ 1,359,065$ 1,227,973$ Public Safety 787,780 856,789 773,323 1,432,085 Public Works 839,611 781,765 937,747 845,530

Operating Grants and Contributions 913,638 1,083,252 755,683 784,262 Capital Grants and Contributions - - 101,291 15,073

Total Governmental Activities Program Revenues 3,709,873 4,005,490 3,927,109 4,304,923

Business-Type ActivitiesCharges for Services

Water 3,924,487 3,963,447 3,847,957 4,960,932 Operating Grants and Contributions - - - - Capital Grants and Contributions - - - -

Total Business-Type Activities Program Revenues 3,924,487 3,963,447 3,847,957 4,960,932

TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 7,634,360$ 7,968,937$ 7,775,066$ 9,265,855$

NET REVENUE (EXPENSE)Governmental Activities (17,099,410)$ (16,659,950)$ (17,807,814)$ (21,125,303)$ Business-Type Activities 303,570 288,828 213,766 1,413,178

TOTAL PRIMARY GOVERNMENT NET REVENUE (EXPENSE) (16,795,840)$ (16,371,122)$ (17,594,048)$ (19,712,125)$


CHANGE IN NET ASSETS


- 68 -

Fiscal Year 2005 2006 2007 2008

GENERAL REVENUES AND OTHER CHANGES IN NET ASSETSGovernmental Activities

TaxesProperty and Replacement 3,223,915$ 3,371,737$ 3,530,659$ 3,740,354$ Sales 7,229,598 7,370,971 7,618,252 7,296,248 Use 262,655 295,865 315,938 368,755 Telecommunications 1,475,843 1,121,188 1,400,154 1,526,864 Utility 1,374,589 1,910,397 1,444,788 1,419,906 Income 1,662,297 1,876,223 2,069,496 2,355,906 Hotel/Motel 563,643 643,906 763,334 794,191 Other 42,526 40,814 37,702 56,177

Investment Earnings 57,828 175,702 397,350 325,163 Miscellaneous 76,304 158,850 79,021 155,228 Contributions 237,710 106,762 - - Transfers 200,000 200,000 200,000 479,995

Total Governmental Activities 16,406,908 17,272,415 17,856,694 18,518,787

Business-Type ActivitiesInvestment Earnings 48,172 121,867 132,336 170,933 Miscellaneous - - - - Transfers (200,000) (200,000) (200,000) (479,995)

Total Business-Type Activities (151,828) (78,133) (67,664) (309,062)

TOTAL PRIMARY GOVERNMENT 16,255,080$ 17,194,282$ 17,789,030$ 18,209,725$

CHANGE IN NET ASSETSGovernmental Activities (692,502)$ 612,465$ 48,880$ (2,606,516)$ Business-Type Activities 151,742 210,695 146,102 1,104,116

TOTAL PRIMARY GOVERNMENT CHANGE IN NET ASSETS (540,760)$ 823,160$ 194,982$ (1,502,400)$

Data Source


CHANGE IN NET ASSETS (Continued)



- 69 -

Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

GENERAL FUNDReserved 451,742$ 461,802$ 429,143$ 399,065$ 1,324,400$ 948,903$ -$ -$ 70,816$ 77,095$ Unreserved 6,221,837 6,786,231 7,980,536 7,766,862 2,536,843 736,724 1,853,175 2,298,870 2,099,943 620,900

TOTAL GENERAL FUND 6,673,579$ 7,248,033$ 8,409,679$ 8,165,927$ 3,861,243$ 1,685,627$ 1,853,175$ 2,298,870$ 2,170,759$ 697,995$

ALL OTHER GOVERNMENTAL FUNDSReserved

Payroll Tax -$ -$ -$ -$ -$ -$ 218,915$ 270,687$ 379,395$ -$ Maintenance of Roadways 522,365 559,184 861,151 735,259 905,496 1,232,878 1,291,876 1,409,315 1,721,667 2,207,024Special Purposes - - - - 2,317,697 2,931,261 1,876,198 1,691,734 4,537,500 2,565,228Convention and Tourism 1,531,906 83,756 184,648 92,417 293,287 31,632 57,324 16,251 581,078 1,020,214

Unreserved, Reported InSpecial Revenue Funds - - - - (260,178) (79,086) - - - (1,051,013) Debt Service Funds 133,963 332,634 - - - - - - - - Capital Project Funds 657,311 2,475,489 1,405,958 289,884 - - - - - -

TOTAL ALL OTHERGOVERNMENTAL FUNDS 2,845,545$ 3,451,063$ 2,451,757$ 1,117,560$ 3,256,302$ 4,116,685$ 3,444,313$ 3,387,987$ 7,219,640$ 4,741,453$

Data Source


Last Ten Fiscal Years

FUND BALANCES OF GOVERNMENTAL FUNDS


- 70 -


CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

REVENUESTaxes

Property Taxes 2,835,228$ 2,928,117$ 2,944,774$ 3,055,649$ 3,419,644$ 3,545,375$ 3,201,515$ 3,333,139$ 3,484,694$ 3,665,978$ State Sales Tax 5,783,321 6,283,301 6,979,230 8,050,353 6,894,758 7,319,459 7,492,253 7,666,836 7,934,190 7,296,248 State Income Tax 1,647,938 1,730,306 1,868,644 1,688,416 1,597,173 1,481,206 1,662,297 1,876,223 2,069,496 2,355,906 Utility Taxes 2,163,966 2,295,290 2,558,141 2,260,718 2,486,085 2,605,189 2,597,581 2,792,840 2,607,980 2,686,499 Other Taxes 858,903 846,075 852,065 731,302 689,659 612,358 628,570 723,319 847,001 1,286,090

Intergovernmental 643,870 699,719 753,951 706,745 836,547 807,753 923,428 1,094,566 857,673 818,227 Licenses and Permits 621,915 735,950 780,863 639,700 1,043,398 1,254,744 2,180,027 2,565,857 2,732,310 3,043,313 Charges for Services 774,505 472,623 936,228 1,025,425 912,106 1,120,003 445,570 171,550 144,543 260,603 Fines and Forfeitures 259,447 268,443 316,700 283,218 323,672 352,818 362,746 410,133 390,596 371,681 Grants 35,378 193,331 176,417 407,731 519,244 148,734 - - - - Investment Income 1,141,430 953,273 780,932 470,651 136,319 49,697 57,828 175,702 397,350 325,163 Miscellaneous 1,045,264 740,396 381,615 647,346 625,023 526,985 187,129 49,209 51,920 142,793

Total Revenues 17,811,165 18,146,824 19,329,560 19,967,254 19,483,628 19,824,321 19,738,944 20,859,374 21,517,753 22,252,501

EXPENDITURESGeneral Government 11,136,488 10,224,021 10,479,737 11,070,243 5,552,213 5,493,001 3,571,820 2,861,905 3,440,315 4,918,489 Public Safety 1,297,985 1,378,494 1,594,941 1,732,720 8,736,958 9,209,603 10,776,849 11,366,849 11,755,739 13,595,747 Public Works 3,109,969 3,389,514 3,712,923 4,205,436 2,797,689 3,460,813 4,530,833 5,013,910 4,714,837 5,054,036 Capital Outlay 128,839 2,097,131 2,243,622 2,295,347 3,244,101 1,931,825 703,892 543,345 522,015 1,045,471 Debt Service -

Principal 581,269 828,230 899,698 911,547 970,007 1,359,839 919,839 919,839 91,797 193,388 Interest 189,261 222,273 235,026 148,302 161,471 136,247 53,842 14,947 91,390 172,987 Other Charges - - 300 - - - - - - -

Total Expenditures 16,443,811 18,139,663 19,166,247 20,363,595 21,462,439 21,591,328 20,557,075 20,720,795 20,616,093 24,980,118

EXCESS (DEFICIENCY) OF REVENUESOVER EXPENDITURES 1,367,354 7,161 163,313 (396,341) (1,978,811) (1,767,007) (818,131) 138,579 901,660 (2,727,617)

- 71 -

Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

OTHER FINANCING SOURCES (USES)Transfers In 2,452,400$ 3,466,700$ 1,074,200$ 920,000$ 4,403,036$ 1,059,244$ 1,618,493$ 750,019$ 700,000$ 979,995$ Transfers (Out) (2,254,400) (2,880,700) (874,200) (720,000) (3,640,762) (559,339) (1,385,000) (550,019) (500,000) (500,000) Loan Proceeds 2,000,000 1,000,000 - - 2,759,517 - - - - - Loan Retirement - - - - (2,020,759) - - - - - Bonds Issued 2,925,000 - - - - - - - 2,600,000 - Bonds Retired (2,925,000) - - - - - - - - - Discount on Bonds Issued - - - - - - - - - - Sale of Capital Assets 290,855 19,587 17,128 13,898 19,920 15,385 261,493 50,790 1,882 289,506

Total Other Financing Sources (Uses) 2,488,855 1,605,587 217,128 213,898 1,520,952 515,290 494,986 250,790 2,801,882 769,501

NET CHANGE IN FUND BALANCES 3,856,209$ 1,612,748$ 380,441$ (182,443)$ (457,859)$ (1,251,717)$ (323,145)$ 389,369$ 3,703,542$ (1,958,116)$

DEBT SERVICE AS A PERCENTAGE OFNONCAPITAL EXPENDITURES 4.72% 6.55% 6.71% 5.87% 6.21% 7.61% 4.90% 4.63% 0.91% 1.39%

Data Source


- 72 -

Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007

General Merchandise 259,537$ 829,434$ 804,071$ 1,006,100$ 1,307,493$ 965,221$ 1,354,101$ 1,742,249$ 2,094,258$

Food 40,381,271 47,127,007 51,382,439 52,140,510 48,599,378 43,332,385 55,199,187 64,175,032 59,326,428

Drinking and Eating Places 51,892,094 61,478,517 59,909,620 57,266,873 56,541,020 58,717,543 61,271,563 61,242,328 66,333,545

Apparel 799,094 191,875 - - - 345,849 308,831 - 699,305

Furniture & H.H. & Radio 13,383,251 13,923,249 31,908,100 41,010,957 34,286,698 33,825,906 35,113,300 30,420,299 31,409,822

Lumber, Building Hardware 17,248,503 21,473,412 21,742,646 17,233,326 15,830,608 16,138,065 18,991,111 18,395,796 16,438,208

Automobile and Filling Stations 258,553,376 296,542,130 329,725,192 368,466,352 367,612,302 401,724,580 398,336,617 443,260,321 474,046,507

Drugs and Miscellaneous Retail 80,856,357 82,930,131 93,749,935 84,305,246 85,085,464 80,411,270 63,510,347 66,661,632 59,087,338

Agriculture and All Others 64,547,298 58,007,895 65,329,829 147,555,001 53,478,535 64,332,726 57,813,117 49,557,940 49,026,271

Manufacturers 19,016,146 6,842,992 5,680,523 5,546,155 4,437,108 20,451,351 13,264,960 4,061,332 4,177,107

TOTAL 546,936,927$ 589,346,642$ 660,232,355$ 774,530,520$ 667,178,606$ 720,244,896$ 705,163,134$ 739,516,929$ 762,638,789$

VILLAGE DIRECT SALES TAX RATE 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Data SourceIllinois Department of RevenueVillage Records


TAXABLE SALES BY CATEGORY


- 73 -


DIRECT AND OVERLAPPING SALES TAX RATES

Last Ten Levy Years

VillageFiscal Direct StateYear Rate Rate

1999 1.00% 6.75%

2000 1.00% 6.75%

2001 1.00% 6.75%

2002 1.00% 6.75%

2003 1.00% 6.75%

2004 1.00% 6.75%

2005 1.00% 6.75%

2006 1.00% 6.75%

2007 1.00% 6.75%

2008 1.00% 6.75%

Data Source

Village and County Records

- 74 -

Total Estimated EstimatedLess: Total Taxable Direct Actual Actual

Levy Residential Commercial Industrial Tax-Exempt Assessed Tax Taxable TaxableYear Property Property Property Property Value Rate Value Value

1998 311,480,220$ 167,467,121$ 2,014,520$ -$ 480,961,861$ 0.6500 1,442,885,583$ 33.333%

1999 321,371,090 170,083,709 2,491,690 - 493,946,489 0.6570 1,481,839,467 33.333%

2000 335,418,820 178,399,103 2,561,170 - 516,379,093 0.6530 1,549,137,279 33.333%

2001 356,218,650 168,553,070 21,935,050 - 546,706,770 0.6460 1,640,120,310 33.333%

2002 389,817,199 178,480,222 22,888,800 - 591,186,221 0.4640 1,773,558,663 33.333%

2003 445,162,290 177,913,501 22,362,960 - 645,438,751 0.4480 1,936,316,253 33.333%

2004 485,677,700 190,939,634 21,867,450 - 698,484,784 0.4310 2,095,454,352 33.333%

2005 536,579,325 203,038,320 21,528,470 - 761,146,115 0.4200 2,283,438,345 33.333%

2006 595,193,355 221,093,419 20,195,040 - 836,481,814 0.4010 2,509,445,442 33.333%

2007 655,953,747 228,955,173 20,922,060 - 905,830,980 0.4010 2,717,492,940 33.333%

Data Source

Office of the County Clerk

Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value.


ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY

Last Ten Levy Years

- 75 -

EstimatedProperty

Fiscal Value - Number NumberYear All Property of Units Value of Units Value

1999 16,499,373$ 3 3,469,104$ 75 13,030,269$

2000 18,439,000 3 12,200,000 31 6,239,000

2001 27,315,000 4 13,990,000 59 13,325,000

2002 21,785,600 8 7,288,600 63 14,497,000

2003 31,345,486 4 17,900,000 54 13,445,486

2004 24,423,829 5 10,582,829 56 13,841,000

2005 40,324,389 6 14,732,000 111 25,592,389

2006 41,694,749 7 11,321,449 101 30,373,300

2007 34,514,100 5 6,102,800 90 28,411,300

2008 12,094,000 4 3,840,000 23 8,254,000

Data Source

Westmont Building Department


PROPERTY VALUE AND CONSTRUCTION


Commercial Construction Residential Construction

- 76 -

TaxLevy Total Total Percent ofYear Tax Levy Collections Levy Collected

1998 2,581,741$ 2,495,603$ 96.66%

1999 2,658,499 2,616,999 98.44%

2000 2,678,351 2,721,700 101.62%

2001 2,807,632 2,730,703 97.26%

2002 2,903,222 2,797,495 96.36%

2003 3,058,103 3,051,355 99.78%

2004 3,174,059 3,195,975 100.69%

2005 3,334,357 3,330,351 99.88%

2006 3,351,782 3,346,082 99.83%

2007 3,652,311 * *

Data Source

DuPage County Clerk, Revenue Dept.

* No collections made against 2007 levy at time of financial statements.


PROPERTY TAX LEVIES AND COLLECTIONS

Last Ten Tax Years

- 77 -

Governmental Activities Business-Type ActivitiesFiscal General Installment Special General Installment TotalYear Obligation Notes Assessment Obligation Notes Capital Primary Per

Ended Bonds Payable Payable Bonds Payable Leases Government Capita*

2006 -$ -$ -$ -$ -$ -$ -$ - 2007 - 2,508,203 - - - - 2,508,203 102.15 2008 - 2,314,815 - - - - 2,314,815 94.27

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

* See the schedule of Demographic Statistics on page 80 for personal income and population data.


RATIOS OF OUTSTANDING DEBT BY TYPE

Last Three Fiscal Years

- 78 -

(2)Percentage

of Debt(1) Applicable (3)

Gross to Government (**)Government Unit Bonded Debt Government (*) Value

Village of Westmont 2,314,815$ 100.00% 2,314,815$ Total Direct Debt 2,314,815 2,314,815

DuPage County 182,815,000 2.24% 4,095,056 Forest Preserve District 223,563,678 2.24% 5,007,826 DuPage Water Commission 35,560,000 2.41% 856,996 School District # 53 1,876,857 1.49% 27,965 School District # 58 5,431,092 3.10% 168,364 School District # 60 23,456,651 42.54% 9,978,459 School District # 61 5,120,000 1.68% 86,016 School District #86 9,280,000 3.00% 278,400 School District #99 61,071,332 4.78% 2,919,210 School District #201 7,680 89.33% 6,861 College District #502 177,865,000 2.03% 3,610,660 Westmont Park District 9,457,173 96.92% 9,165,892 Westmont Public Library - 100.00% -

Total Overlapping Debt 735,504,463 36,201,705

Total Direct and OverlappingBonded Debt 737,819,278$ 38,516,520$

* Determined by ratio of total assessed value of property subject to taxation in overlapping unit tototal assessed value of property subject to taxation in the Village of Westmont.School and park districts determined by ration of total parcel area of school district to parcel area of district within Westmont.

** Amount in column (2) multiplied by amount in column (1) but not to exceed column (1).

Data Source

Administrative offices of each government unit.GIS County Data Sources


SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT

April 30, 2008

- 79 -

(2)Per (3) (4)

Fiscal (1) Capita Median UnemploymentYear Population Income Age Percentage

1999 23,029 24,696$ 34.0 2.8%2000 23,029 26,394 35.5 3.4%2001 24,554 27,281 35.5 4.1%2002 24,554 32,496 35.5 4.9%2003 24,554 28,501 35.5 5.3%2004 24,554 29,151 35.5 5.6%2005 24,554 29,927 35.5 5.5%2006 24,554 30,941 35.5 4.8%2007 24,554 31,939 35.5 3.0%2008 26,211 32,849 35.5 3.9%

Data Sources

(1) U.S. Census Bureau 1994-2000 estimated by Village of Westmont staff.2001-2006 data based on 2000 Census actual count.

(2) U.S. Census Bureau, adjusted through the consumer price index.

(3) U.S. Census Bureau, census 2000

(4) Illinois Department of Labor-Research Division.


DEMOGRAPHIC STATISTICS


- 80 -

Employer Rank Employees Employer Rank Employees

Sirva Relocation 1 700 Magnet-Schultz 1 350Man Roland Printing 2 350 Oakbrook Hills Hotel 2 300Unit School District 201 3 312 Village of Westmont 3 243Oakbrook Hills Marriot Resort 4 285 Ty Inc. 4 200AutoNation 5 266 Executive Relocation Corp. 5 160Jewel Osco 6 250 Honeywell, Inc. 6 150Village of Westmont 7 234 Laurel Auto Group 7 136Manor Care 8 191 Julian Electric 8 75Westmont Convalescent Center 9 184 Carrier Corp 9 70Julian Electric 10 180 Advance Business 10 25

Data Source

Administravie Offices of EmployersWestmont Chamber of CommerceIllinois Department of Commerce and Economic Opportunity Community ProfilesVillage Records

2008 1999


PRINCIPAL EMPLOYERS

Current Year and Nine Years Ago

- 81 -

Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

GENERAL GOVERNMENTAdministration 3 3 3 3 4 4 3 3 3 2 Clerk's Office 3 3 3 3 3 3 4 4 4 5 Information Technology - - - 1 1 1 1 1 3 3 Finance 5 5 5 4 4 5 3 3 4 4 Economic Development - - 2 2 2 1 2 2 4 4 Code Enforcement 3 3 3 3 3 4 4 5 5 5 Community Development - - - - - - - - -

PUBLIC SAFETYPolice

Administration 3 3 3 3 3 3 3 3 3 4 Police Patrol 38 38 40 40 40 39 38 38 39 38 Investigation 6 6 6 6 6 6 6 5 6 7 Communications 12 12 12 13 12 12 12 13 13 13

FireAdministration 9 9 8 8 8 8 8 8 8 6 FTE Firefighters - - - - - - - - - -

PUBLIC WORKSAdministration 1 1 2 1 2 2 3 3 4 4 Engineering 2 2 2 2 2 3 3 3 - - Street Maintenance 19 19 19 20 19 17 17 17 15 16 Municipal Garage 3 3 4 4 4 4 4 4 4 4 Municipal Facilities - - - - 3 3 3 3 4 4 Water 9 9 11 12 12 12 11 11 11 10

TOTAL 116 116 123 125 128 127 125 126 130 129

TOTAL EMPLOYEESFull-Time 116 116 123 125 128 127 125 126 130 129 Part-Time 127 127 117 113 112 85 111 85 113 102

243 243 240 238 240 211 239 214 243 231

Data Source

Village budget office

Note: Part-time employees include all Firefighters, seasonal Public Works employees, crossing guards, and some telecommunications operators.Note: 1998 and 1999 data is not available; estimated by Village Staff


FULL-TIME EMPLOYEES


- 82 -


PUBLIC SAFETYPolice

Call Volume 19,056 18,235 18,463 18,149 17,293 17,841 17,138 16,869 16,202 15,743 Felony Arrests * * 137 110 82 69 46 60 40 76 Misdemeanor Arrests * * 1,137 953 605 456 444 431 440 403 Parking Citations 7,481 4,958 5,197 4,766 3,797 4,204 3,991 3,807 3,282 2,591 Traffic Violations 7,188 6,417 3,651 3,436 4,477 5,519 5,616 5,358 4,180 3,666

FireDepartment Calls 3,199 3,164 3,154 3,423 3,361 3,304 3,663 3,740 3,840 4,318 Structure Fires 34 29 35 20 16 21 25 15 24 16

PUBLIC WORKSStreeting Resurfacing (miles) - 4 3 7 3 4 4 4 2 - Watermain Improvements (ft) 7,025 2,600 3,090 - - 8,263 7,064 900 2,400 1,800 Sidewalk Improvement (ft) 5,600 - 1,037 2,500 12,665 - 1,400 21,050 - 2 Treed Trimmed 894 1,120 1,460 1,300 1,800 1,723 1,525 1,045 2,000 1,100

WATERNew ConnectionsWater Main Breaks 28 58 40 32 44 40 29 33 28 16 Average Daily Consumption (mg) 3 3 3 3 3 3 2 3 3 3 Peak Daily Consumption (mg) 4 4 4 4 4 4 3 4 4 4

* Statistic not available

Data Source

Various Village Departments


OPERATING INDICATORS


- 83 -


PUBLIC SAFETYPolice

Stations 1 1 1 1 1 1 1 1 1 1 Number of Squad Cars 23 23 23 23 23 25 23 23 24 26

FireFire stations 3 3 2 2 2 2 2 2 2 2 Fire engines 4 4 4 4 4 4 4 4 4 4 Ladder trucks 1 1 1 2 2 2 2 2 2 2 Squad trucks 1 1 1 1 1 1 1 1 1 1 Ambulances 3 3 3 3 3 3 3 3 3 3 Communications vehicle 1 1 1 1 1 1 1 1 1 1

PUBLIC WORKSResidential streets (miles) 57 57 57 57 57 57 57 60 60 60 Alleys (miles) 86 86 86 86 86 86 86 86 86 86 Streetlights 676 676 676 676 676 676 676 676 676 691

WATER * * * * *Water mains (miles) 87 87 87 87 87 87 87 87.0 90 91 Sanitary sewers (miles) 87 87 87 87 87 87 87 87 90 90 Storm sewers (miles) 87 87 87 87 87 87 87 87 90 90 Fire hydrants 1,180 1,180 1,180 1,180 1,180 1,180 1,188 1,257 1,260 1,256

* 1998-2003 water statistics estimated by Village staff

Data Source

Various Village Departments


CAPITAL ASSET STATISTICS


- 84 -

Documents

Fiscal Year 2008 CAFR Comprehensive Annual Financial Report