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PRELIMINARY OFFICIAL STATEMENT DATED MAY 22, 2020
In the opinion of Quarles & Brady LLP, Bond Counsel, assuming continued compliance with the requirements of the Internal Revenue Code of 1986, as amended, underexisting law interest on the Bonds is excludable from gross income and is not an item of tax preference for federal income tax purposes. See "TAX EXEMPTION" hereinfor a more detailed discussion of some of the federal income tax consequences of owning the Bonds. The interest on the Bonds is not exempt from present Wisconsin incomeor franchise taxes.
The Village will designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relatingto the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exemptobligations.
New Issue Rating Application Made: S&P Global Ratings
VILLAGE OF COTTAGE GROVE, WISCONSIN(Dane County)
$1,850,000* GENERAL OBLIGATION PARK AND PUBLIC GROUNDS BONDS, SERIES 2020A
BID OPENING: June 1, 2020, 10:30 A.M., C.T. CONSIDERATION: June 1, 2020, 6:30 P.M., C.T.
PURPOSE/AUTHORITY/SECURITY: The $1,850,000* General Obligation Park and Public Grounds Bonds, Series 2020A (the"Bonds") of the Village of Cottage Grove, Wisconsin (the "Village") are being issued pursuant to Section 67.04, Wisconsin Statutes, forthe public purpose of financing parks and public grounds projects, consisting of the construction of a park shelter, a splash pad with sitefurnishings and path improvements. The Bonds are general obligations of the Village, and all the taxable property in the Village issubject to the levy of a tax to pay the principal of and interest on the Bonds as they become due which tax may, under current law, belevied without limitation as to rate or amount. Delivery is subject to receipt of an approving legal opinion of Quarles & Brady LLP,Milwaukee, Wisconsin.
DATE OF BONDS: June 18, 2020
MATURITY: April 1 as follows:
Year Amount* Year Amount* Year Amount*
2021 $70,000 2028 $85,000 2035 $100,000
2022 75,000 2029 90,000 2036 105,000
2023 80,000 2030 90,000 2037 105,000
2024 80,000 2031 90,000 2038 115,000
2025 80,000 2032 95,000 2039 115,000
2026 85,000 2033 95,000 2040 115,000
2027 85,000 2034 95,000
*MATURITYADJUSTMENTS:
The Village reserves the right to increase or decrease the principal amount of the Bonds on the day ofsale, in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principalamounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spreadper $1,000.
TERM BONDS: See "Term Bond Option" herein.
INTEREST: April 1, 2021 and semiannually thereafter.
OPTIONAL REDEMPTION: Bonds maturing on April 1, 2028 and thereafter are subject to call for prior optional redemption on April1, 2027 or any date thereafter, at a price of par plus accrued interest.
MINIMUM BID: $1,826,875.
MAXIMUM BID: $1,998,000.
GOOD FAITH DEPOSIT: A good faith deposit in the amount of $37,000 shall be made by the winning bidder by wire transfer offunds.
PAYING AGENT: Bond Trust Services Corporation.
BOND & DISCLOSURECOUNSEL: Quarles & Brady LLP.
MUNICIPAL ADVISOR: Ehlers and Associates, Inc.
BOOK-ENTRY-ONLY: See "Book-Entry-Only System" herein (unless otherwise specified by the purchaser).
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the Village to give any information or to make any representation otherthan those contained in this Preliminary Official Statement and, if given or made, such other information or representations must not be reliedupon as having been authorized by the Village. This Preliminary Official Statement does not constitute an offer to sell or a solicitation ofan offer to buy any of the Bonds in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in suchjurisdiction.
This Preliminary Official Statement is not to be construed as a contract with the Syndicate Manager or Syndicate Members. Statementscontained herein which involve estimates or matters of opinion are intended solely as such and are not to be construed as representations offact. Ehlers and Associates, Inc. prepared this Preliminary Official Statement and any addenda thereto relying on information of the Villageand other sources for which there is reasonable basis for believing the information is accurate and complete. Quarles & Brady LLP will serveas Disclosure Counsel to the Village with respect to the Bonds. Compensation of Ehlers and Associates, Inc., payable entirely by the Village,is contingent upon the delivery of the Bonds.
COMPLIANCE WITH S.E.C. RULE 15c2-12
Certain municipal obligations (issued in an aggregate amount over $1,000,000) are subject to Rule 15c2-12 promulgated by the Securities andExchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the "Rule").
Preliminary Official Statement: This Preliminary Official Statement was prepared for the Village for dissemination to potential investors. Its primary purpose is to disclose information regarding the Bonds to prospective underwriters in the interest of receiving competitive proposalsin accordance with the sale notice contained herein. Unless an addendum is posted prior to the sale, this Preliminary Official Statement shallbe deemed nearly final for purposes of the Rule subject to completion, revision and amendment in a Final Official Statement as defined below.
Review Period: This Preliminary Official Statement has been distributed to prospective bidders for review. Comments or requests for thecorrection of omissions or inaccuracies must be submitted to Ehlers and Associates, Inc. at least two business days prior to the sale. Requestsfor additional information or corrections in the Preliminary Official Statement received on or before this date will not be considered aqualification of a proposal received from an underwriter. If there are any changes, corrections or additions to the Preliminary OfficialStatement, interested bidders will be informed by an addendum prior to the sale.
Final Official Statement: Copies of the Final Official Statement will be delivered to the underwriter (Syndicate Manager) within sevenbusiness days following the proposal acceptance.
Continuing Disclosure: Subject to certain exemptions, issues in an aggregate amount over $1,000,000 may be required to comply withprovisions of the Rule which require that underwriters obtain from the issuers of municipal securities (or other obligated party) an agreementfor the benefit of the owners of the securities to provide continuing disclosure with respect to those securities. This Preliminary OfficialStatement describes the conditions under which the Village is required to comply with the Rule.
CLOSING CERTIFICATES
Upon delivery of the Bonds, the underwriter (Syndicate Manager) will be furnished with the following items: (1) a certificate of the appropriateofficials to the effect that at the time of the sale of the Bonds and all times subsequent thereto up to and including the time of the delivery ofthe Bonds, this Preliminary Official Statement did not and does not contain any untrue statement of a material fact or omit to state a materialfact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (2) a receipt signedby the appropriate officer evidencing payment for the Bonds; (3) a certificate evidencing the due execution of the Bonds, including statementsthat (a) no litigation of any nature is pending, or to the knowledge of signers, threatened, restraining or enjoining the issuance and delivery ofthe Bonds, (b) neither the corporate existence or boundaries of the Village nor the title of the signers to their respective offices is beingcontested, and (c) no authority or proceedings for the issuance of the Bonds have been repealed, revoked or rescinded; and (4) a certificatesetting forth facts and expectations of the Village which indicates that the Village does not expect to use the proceeds of the Bonds in a mannerthat would cause them to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or withinthe meaning of applicable Treasury Regulations.
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TABLE OF CONTENTS
INTRODUCTORY STATEMENT . . . . . . . . . . . . . . . . . . . . . 1
THE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1GENERAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1OPTIONAL REDEMPTION . . . . . . . . . . . . . . . . . . . . . . 1AUTHORITY; PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . 2ESTIMATED SOURCES AND USES . . . . . . . . . . . . . . 2SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2RATING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2CONTINUING DISCLOSURE . . . . . . . . . . . . . . . . . . . . 4LEGAL MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4TAX EXEMPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5ORIGINAL ISSUE DISCOUNT . . . . . . . . . . . . . . . . . . . 5BOND PREMIUM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6QUALIFIED TAX-EXEMPT OBLIGATIONS . . . . . . . . 7MUNICIPAL ADVISOR . . . . . . . . . . . . . . . . . . . . . . . . . 7MUNICIPAL ADVISOR AFFILIATED COMPANIES . 7INDEPENDENT AUDITORS . . . . . . . . . . . . . . . . . . . . . 7RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
VALUATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11WISCONSIN PROPERTY VALUATIONS;
PROPERTY TAXES . . . . . . . . . . . . . . . . . . . . . . 11CURRENT PROPERTY VALUATIONS . . . . . . . . . . . 122019 EQUALIZED VALUE BY CLASSIFICATION . . 12TREND OF VALUATIONS . . . . . . . . . . . . . . . . . . . . . 12LARGER TAXPAYERS . . . . . . . . . . . . . . . . . . . . . . . . 13
DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14DIRECT DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14SCHEDULE OF GENERAL OBLIGATION DEBT . . . 15SCHEDULE OF SEWER REVENUE DEBT . . . . . . . . 17SCHEDULE OF WATER REVENUE DEBT . . . . . . . . 18DEBT LIMIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19OVERLAPPING DEBT . . . . . . . . . . . . . . . . . . . . . . . . . 19DEBT RATIOS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20DEBT PAYMENT HISTORY . . . . . . . . . . . . . . . . . . . . 20FUTURE FINANCING . . . . . . . . . . . . . . . . . . . . . . . . . 20
TAX LEVIES AND COLLECTIONS . . . . . . . . . . . . . . . . . . 21TAX LEVIES AND COLLECTIONS . . . . . . . . . . . . . . 21PROPERTY TAX RATES . . . . . . . . . . . . . . . . . . . . . . . 22LEVY LIMITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
THE ISSUER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24VILLAGE GOVERNMENT . . . . . . . . . . . . . . . . . . . . . 24EMPLOYEES; PENSIONS . . . . . . . . . . . . . . . . . . . . . . 24OTHER POST EMPLOYMENT BENEFITS . . . . . . . . 25LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26MUNICIPAL BANKRUPTCY . . . . . . . . . . . . . . . . . . . 26FUNDS ON HAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27ENTERPRISE FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . 28SUMMARY GENERAL FUND INFORMATION . . . . 29
GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . 30LOCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30LARGER EMPLOYERS . . . . . . . . . . . . . . . . . . . . . . . . 30BUILDING PERMITS . . . . . . . . . . . . . . . . . . . . . . . . . . 31U.S. CENSUS DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . 32EMPLOYMENT/UNEMPLOYMENT DATA . . . . . . . 32
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . A-1
FORM OF LEGAL OPINION . . . . . . . . . . . . . . . . . . . . . . . B-1
BOOK-ENTRY-ONLY SYSTEM . . . . . . . . . . . . . . . . . . . . C-1
FORM OF CONTINUING DISCLOSURE CERTIFICATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1
NOTICE OF SALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1
BID FORM
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VILLAGE OF COTTAGE GROVEVILLAGE BOARD
Term Expires
John Williams Village President April 2021
Troy Allen Village Trustee April 2022
Jeffrey Lennberg Village Trustee April 2021
Heidi Murphy Village Trustee April 2021
Melissa Ratcliff Village Trustee April 2022
Sarah Valencia Village Trustee April 2021
Paul VanderVelde Village Trustee April 2022
ADMINISTRATION
Matt Giese, Village Administrator
Deb Winter, Village Treasurer
Lisa Kalata, Village Clerk
PROFESSIONAL SERVICES
Stafford Law Office, Village Attorney, Madison, Wisconsin
Quarles & Brady LLP, Bond Counsel and Disclosure Counsel, Milwaukee, Wisconsin
Ehlers and Associates, Inc., Municipal Advisors, Waukesha, Wisconsin(Other offices located in Roseville, Minnesota and Denver, Colorado)
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INTRODUCTORY STATEMENT
This Preliminary Official Statement contains certain information regarding the Village of Cottage Grove, Wisconsin(the "Village") and the issuance of its $1,850,000* General Obligation Park and Public Grounds Bonds, Series 2020A(the "Bonds"). Any descriptions or summaries of the Bonds, statutes, or documents included herein are not intendedto be complete and are qualified in their entirety by reference to such statutes and documents and the form of theBonds to be included in the resolution awarding the sale of the Bonds ("Award Resolution") to be adopted by theVillage Board on June 1, 2020.
Inquiries may be directed to Ehlers and Associates, Inc. ("Ehlers" or the "Municipal Advisor"), Waukesha, Wisconsin,(262) 785-1520, the Village's municipal advisor. A copy of this Preliminary Official Statement may be downloadedfrom Ehlers’ web site at www.ehlers-inc.com by connecting to the Bond Sales link and following the directions atthe top of the site.
THE BONDS
GENERAL
The Bonds will be issued in fully registered form as to both principal and interest in denominations of $5,000 eachor any integral multiple thereof, and will be dated, as originally issued, as of June 18, 2020. The Bonds will matureon April 1 in the years and amounts set forth on the cover of this Preliminary Official Statement. Interest will bepayable on April 1 and October 1 of each year, commencing April 1, 2021, to the registered owners of the Bondsappearing of record in the bond register as of the close of business on the 15th day (whether or not a business day)of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of twelve 30-daymonths and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board ("MSRB"). All Bondsof the same maturity must bear interest from the date of issue until paid at a single, uniform rate. Each rate must beexpressed in an integral multiple of 5/100 or 1/8 of 1%.
Unless otherwise specified by the purchaser, the Bonds will be registered in the name of Cede & Co., as nominee forThe Depository Trust Company, New York, New York ("DTC"). (See "Book-Entry-Only System" herein.) As longas the Bonds are held under the book-entry system, beneficial ownership interests in the Bonds may be acquired inbook-entry form only, and all payments of principal of, premium, if any, and interest on the Bonds shall be madethrough the facilities of DTC and its participants. If the book-entry system is terminated, principal of, premium, ifany, and interest on the Bonds shall be payable as provided in the Award Resolution.
The Village has selected Bond Trust Services Corporation, Roseville, Minnesota (“BTSC”), to act as paying agent(the "Paying Agent"). BTSC and Ehlers are affiliate companies. The Village will pay the charges for Paying Agentservices. The Village reserves the right to remove the Paying Agent and to appoint a successor.
OPTIONAL REDEMPTION
At the option of the Village, the Bonds maturing on or after April 1, 2028 shall be subject to optional redemption priorto maturity on April 1, 2027 or any date thereafter, at a price of par plus accrued interest.
*Preliminary, subject to change
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Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selectionof the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the Village. If only part ofthe Bonds having a common maturity date are called for redemption, then the Village or Paying Agent, if any, willnotify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of eachparticipant's interest in such maturity to be redeemed and each participant will then select by lot the beneficialownership interest in such maturity to be redeemed.
Notice of such call shall be given by sending a notice by registered or certified mail, facsimile or electronictransmission, overnight delivery service or in any other manner required by DTC, not less than 30 days nor more than60 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the addressshown on the registration books.
AUTHORITY; PURPOSE
The Bonds are being issued pursuant to Section 67.04, Wisconsin Statutes, for the public purpose of financing parksand public grounds projects, consisting of the construction of a park shelter, a splash pad with site furnishings andpath improvements.
ESTIMATED SOURCES AND USES*
Sources
Par Amount of Bonds $1,850,000
Estimated Interest earnings 664
Total Sources $1,850,664
Uses
Estimated Underwriter's Discount $23,125
Costs of Issuance 56,050
Deposit to Project Construction Fund 1,770,135
Rounding Amount 1,354
Total Uses $1,850,664
*Preliminary, subject to change
SECURITY
For the prompt payment of the Bonds with interest thereon and for the levy of taxes sufficient for this purpose, thefull faith, credit and resources of the Village will be irrevocably pledged. The Village will levy a direct, annual,irrepealable tax on all taxable property in the Village sufficient to pay the interest on the Bonds when it becomes dueand also to pay and discharge the principal on the Bonds at maturity, in compliance with Article XI, Section 3 of theWisconsin Constitution. Such tax may, under current law, be levied without limitation as to rate or amount.
RATING
General obligation debt of the Village is currently rated "AA" by S&P Global Ratings ("S&P").
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The Village has requested a rating on the Bonds from S&P, and bidders will be notified as to the assigned rating priorto the sale. Such rating reflects only the views of such organization and explanations of the significance of such ratingmay be obtained from S&P. Generally, a rating agency bases its rating on the information and materials furnishedto it and on investigations, studies and assumptions of its own. There is no assurance that such rating will continuefor any given period of time or that it will not be revised downward or withdrawn entirely by such rating agency, ifin the judgment of such rating agency circumstances so warrant. Any such downward revision or withdrawal of suchrating may have an adverse effect on the market price of the Bonds.
Such rating is not to be construed as a recommendation of the rating agency to buy, sell or hold the Bonds, and therating assigned by the rating agency should be evaluated independently. Except as may be required by the DisclosureUndertaking described under the heading "CONTINUING DISCLOSURE" neither the Village nor the underwriterundertake responsibility to bring to the attention of the owner of the Bonds any proposed changes in or withdrawalof such rating or to oppose any such revision or withdrawal.
CONTINUING DISCLOSURE
In order to assist brokers, dealers, and municipal securities dealers, in connection with their participation in theoffering of the Bonds, to comply with Rule 15c2-12 promulgated by the Securities and Exchange Commission,pursuant to the Securities and Exchange Act of 1934, as amended (the "Rule"), the Village shall agree to providecertain information to the Municipal Securities Rulemaking Board ("MSRB") through its Electronic Municipal MarketAccess ("EMMA") system, or any system that may be prescribed in the future. The Rule was last amended, effectiveFebruary 27, 2019, to include an expanded list of material events. The Disclosure Undertaking includes the two newmaterial events effective February 27, 2019 under the Rule.
On the date of issue and delivery, the Village shall execute and deliver a Continuing Disclosure Certificate, underwhich the Village will covenant for the benefit of holders including beneficial holders, to provide electronically, orin a manner otherwise prescribed, certain financial information annually and to provide notices of the occurrence ofcertain events enumerated in the Rule (the "Disclosure Undertaking"). The details and terms of the DisclosureUndertaking for the Village are set forth in Appendix D. Such Disclosure Undertaking will be in substantially theform attached hereto.
A failure by the Village to comply with the Disclosure Undertaking will not constitute an event of default on theBonds. However, such a failure may adversely affect the transferability and liquidity of the Bonds and their marketprice.
The Village’s operating data filings for the fiscal years ended December 31, 2014 and December 31, 2015 were timelyfiled but failed to include all information required by certain of the Village’s continuing disclosure undertakings forbonds issued in 2006 and 2008. Except to the extent that the preceding is deemed to be material, the Village believesit has not failed to comply in the previous five years in all material respects with its prior undertakings under the Rule. The Village has reviewed its continuing disclosure responsibilities, including the two new material events, to helpensure compliance in the future. Ehlers is currently engaged as dissemination agent for the Village.
LEGAL MATTERS
An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will befurnished by Quarles & Brady LLP, Bond Counsel to the Village, and will be available at the time of delivery of theBonds. The legal opinion will be issued on the basis of existing law and will state that the Bonds are valid andbinding general obligations of the Village; provided that the rights of the owners of the Bonds and the enforceabilityof the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affectingcreditors' rights and by equitable principles (which may be applied in either a legal or equitable proceeding). (See?FORM OF LEGAL OPINION" found in Appendix B).
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Quarles & Brady LLP has also been retained by the Village to serve as Disclosure Counsel to the Village with respectto the Bonds. Although, as Disclosure Counsel to the Village, Quarles & Brady LLP has assisted the Village withcertain disclosure matters, Quarles & Brady LLP has not undertaken to independently verify the accuracy,completeness or sufficiency of this Official Statement or other offering material relating to the Bonds and assumesno responsibility whatsoever nor shall have any liability to any other party for the statements or information containedor incorporated by reference in this Official Statement. Further, Quarles & Brady LLP makes no representation asto the suitability of the Bonds for any investor.
TAX EXEMPTION
Quarles & Brady LLP, Milwaukee, Wisconsin, Bond Counsel, will deliver a legal opinion with respect to the federalincome tax exemption applicable to the interest on the Bonds under existing law substantially in the following form:
"The interest on the Bonds is excludable for federal income tax purposes from the gross income of the ownersof the Bonds. The interest on the Bonds is not an item of tax preference for purposes of the federal alternativeminimum tax imposed by Section 55 of the Internal Revenue Code of 1986, as amended (the "Code") onindividuals. The Code contains requirements that must be satisfied subsequent to the issuance of the Bondsin order for interest on the Bonds to be or continue to be excludable from gross income for federal incometax purposes. Failure to comply with certain of those requirements could cause the interest on the Bonds tobe included in gross income retroactively to the date of issuance of the Bonds. The Village has agreed tocomply with all of those requirements. The opinion set forth in the first sentence of this paragraph is subjectto the condition that the Village comply with those requirements. We express no opinion regarding otherfederal tax consequences arising with respect to the Bonds."
The interest on the Bonds is not exempt from present Wisconsin income or franchise taxes.
Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federalincome tax consequences to certain taxpayers. Bond Counsel will not express any opinion as to such collateral taxconsequences. Prospective purchasers of the Bonds should consult their tax advisors as to collateral federal incometax consequences.
From time to time legislation is proposed, and there are or may be legislative proposals pending in the Congress ofthe United States that, if enacted, could alter or amend the federal tax matters referred to above or adversely affectthe market value of the Bonds. It cannot be predicted whether, or in what form, any proposal that could alter one ormore of the federal tax matters referred to above or adversely affect the market value of the Bonds may beenacted. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposedfederal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation.
ORIGINAL ISSUE DISCOUNT
To the extent that the initial public offering price of certain of the Bonds is less than the principal amount payable atmaturity, such Bonds ("Discounted Bonds") will be considered to be issued with original issue discount. The originalissue discount is the excess of the stated redemption price at maturity of a Discounted Bond over the initial offeringprice to the public, excluding underwriters or other intermediaries, at which price a substantial amount of suchDiscounted Bonds were sold (issue price). With respect to a taxpayer who purchases a Discounted Bond in the initialpublic offering at the issue price and who holds such Discounted Bond to maturity, the full amount of original issuediscount will constitute interest that is not includible in the gross income of the owner of such Discounted Bond forfederal income tax purposes and such owner will not, subject to the caveats and provisions herein described, realizetaxable capital gain upon payment of such Discounted Bond upon maturity.
4
Original issue discount is treated as compounding semiannually, at a rate determined by reference to the yield tomaturity of each individual Discounted Bond, on days that are determined by reference to the maturity date of suchDiscounted Bond. The amount treated as original issue discount on a Discounted Bond for a particular semiannualaccrual period is generally equal to (a) the product of (i) the yield to maturity for such Discounted Bond (determinedby compounding at the close of each accrual period) and (ii) the amount that would have been the tax basis of suchDiscounted Bond at the beginning of the particular accrual period if held by the original purchaser; and less (b) theamount of any interest payable for such Discounted Bond during the accrual period. The tax basis is determined byadding to the initial public offering price on such Discounted Bond the sum of the amounts that have been treated asoriginal issue discount for such purposes during all prior periods. If a Discounted Bond is sold or exchanged betweensemiannual compounding dates, original issue discount that would have been accrued for that semiannualcompounding period for federal income tax purposes is to be apportioned in equal amounts among the days in suchcompounding period. For federal income tax purposes, the amount of original issue discount that is treated as having accrued with respectto such Discounted Bond is added to the cost basis of the owner in determining gain or loss upon disposition of aDiscounted Bond (including its sale, exchange, redemption, or payment at maturity). Amounts received upondisposition of a Discounted Bond that are attributable to accrued original issue discount will be treated as tax-exemptinterest, rather than as taxable gain. The accrual or receipt of original issue discount on the Discounted Bonds may result in certain collateral federalincome tax consequences for the owners of such Discounted Bonds. The extent of these collateral tax consequenceswill depend upon the owner's particular tax status and other items of income or deduction.
The Code contains additional provisions relating to the accrual of original issue discount. Owners who purchaseDiscounted Bonds at a price other than the issue price or who purchase such Discounted Bonds in the secondarymarket should consult their own tax advisors with respect to the tax consequences of owning the Discounted Bonds. Under the applicable provisions governing the determination of state and local taxes, accrued interest on theDiscounted Bonds may be deemed to be received in the year of accrual even though there will not be a correspondingcash payment until a later year. Owners of Discounted Bonds should consult their own tax advisors with respect tothe state and local tax consequences of owning the Discounted Bonds.
BOND PREMIUM
To the extent that the initial offering price of certain of the Bonds is more than the principal amount payable atmaturity, such Bonds ("Premium Bonds") will be considered to have bond premium.
Any Premium Bond purchased in the initial offering at the issue price will have "amortizable premium" within themeaning of Section 171 of the Code. The amortizable premium of each Premium Bond is calculated on a daily basisfrom the issue date of such Premium Bond until its stated maturity date (or call date, if any) on the basis of a constantinterest rate compounded at each accrual period (with straight line interpolation between the compounding dates). An owner of a Premium Bond that has amortizable premium is not allowed any deduction for the amortizablepremium; rather the amortizable premium attributable to a taxable year is applied against (and operates to reduce) theamount of tax-exempt interest payments on the Premium Bonds. During each taxable year, such an owner mustreduce his or her tax basis in such Premium Bond by the amount of the amortizable premium that is allocable to theportion of such taxable year during which the holder held such Premium Bond. The adjusted tax basis in a PremiumBond will be used to determine taxable gain or loss upon a disposition (including the sale, exchange, redemption, orpayment at maturity) of such Premium Bond.
Owners of Premium Bonds who did not purchase such Premium Bonds in the initial offering at the issue price shouldconsult their own tax advisors with respect to the tax consequences of owning such Premium Bonds. Owners ofPremium Bonds should consult their own tax advisors with respect to the state and local tax consequences of owningthe Premium Bonds.
5
QUALIFIED TAX-EXEMPT OBLIGATIONS
The Village will designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of theCode relating to the ability of financial institutions to deduct from income for federal income tax purposes, interestexpense that is allocable to carrying and acquiring tax-exempt obligations.
MUNICIPAL ADVISOR
Ehlers has served as municipal advisor to the Village in connection with the issuance of the Bonds. The MunicipalAdvisor cannot participate in the underwriting of the Bonds. The financial information included in this OfficialStatement has been compiled by the Municipal Advisor. Such information does not purport to be a review, audit orcertified forecast of future events and may not conform with accounting principles applicable to compilations offinancial information. Ehlers is not a firm of certified public accountants. Ehlers is registered with the Securities andExchange Commission and the MSRB as a municipal advisor.
MUNICIPAL ADVISOR AFFILIATED COMPANIES
BTSC and Ehlers Investment Partners, LLC ("EIP") are affiliate companies of Ehlers. BTSC is chartered by the Stateof Minnesota and authorized in Minnesota, Wisconsin, Colorado, and Illinois to transact the business of a limitedpurpose trust company. BTSC provides paying agent services to debt issuers. EIP is a Registered Investment Advisorwith the Securities and Exchange Commission. EIP assists issuers with the investment of bond proceeds or investingother issuer funds. This includes escrow bidding agent services. Issuers, such as the Village, have retained or mayretain BTSC and/or EIP to provide these services. If hired, BTSC and/or EIP would be retained by the Village underan agreement separate from Ehlers.
INDEPENDENT AUDITORS
The basic financial statements of the Village for the fiscal year ended December 31, 2018 and the DRAFT basicfinancial statements for the fiscal year ended December 31, 2019 have been audited by Baker Tilly Virchow Krause,Madison, Wisconsin, independent auditors (the "Auditor"). The Village expects delivery of the financial statementsfor the fiscal year ended December 31, 2019 in substantially the form attached hereto, but such financial statementsare subject to further revision. The report of the Auditor, together with the basic financial statements, component unitsfinancial statements, and notes to the financial statements are attached hereto as "APPENDIX A – FINANCIALSTATEMENTS". The Auditor has not been engaged to perform and has not performed, since the date of its reportincluded herein, any procedures on the financial statements addressed in that report. The Auditor also has notperformed any procedures relating to this Official Statement.
RISK FACTORS
Following is a description of possible risks to holders of the Bonds without weighting as to probability. Thisdescription of risks is not intended to be all-inclusive, and there may be other risks not now perceived or listed here. Potential investors should read this Official Statement, including the appendices, in its entirety.
Taxes: The Bonds are general obligations of the Village, the ultimate payment of which rests in the Village's abilityto levy and collect sufficient taxes to pay debt service. In the event of delayed billing, collection or distribution ofproperty taxes, sufficient funds may not be available to the Village in time to pay debt service when due.
6
State Actions: Many elements of local government finance, including the issuance of debt and the levy of propertytaxes, are controlled by state government. Future actions of the state may affect the overall financial condition of theVillage, the taxable value of property within the Village, and the ability of the Village to levy and collect propertytaxes.
Future Changes in Law: Various State and federal laws, regulations and constitutional provisions apply to the Village and to the Bonds. The Village can give no assurance that there will not be a change in or interpretation ofany such applicable laws, regulations and provisions which would have a material effect on the Village or the taxingauthority of the Village.
Ratings; Interest Rates: In the future, the Village's credit rating may be reduced or withdrawn, or interest rates forthis type of obligation may rise generally, either possibility resulting in a reduction in the value of the Bonds for resaleprior to maturity.
Tax Exemption: If the federal government taxes all or a portion of the interest on municipal bonds or notes or if theState government increases its tax on interest on bonds and notes, directly or indirectly, or if there is a change infederal or state tax policy, then the value of these Bonds may fall for purposes of resale. Noncompliance by theVillage with the covenants in the Award Resolution relating to certain continuing requirements of the Code may resultin inclusion of interest to be paid on the Bonds in gross income of the recipient for United States income tax purposes,retroactive to the date of issuance.
Continuing Disclosure: A failure by the Village to comply with the Disclosure Undertaking for continuingdisclosure (see "CONTINUING DISCLOSURE") will not constitute an event of default on the Bonds. Any suchfailure must be reported in accordance with the Rule and must be considered by any broker, dealer, or municipalsecurities dealer before recommending the purchase or sale of the Bonds in the secondary market. Such a failure mayadversely affect the transferability and liquidity of the Bonds and their market price.
Book-Entry-Only System: The timely credit of payments for principal and interest on the Bonds to the accounts ofthe Beneficial Owners of the Bonds may be delayed due to the customary practices, standing instructions or for otherunknown reasons by DTC participants or indirect participants. Since the notice of redemption or other notices toholders of these obligations will be delivered by the Village to DTC only, there may be a delay or failure by DTC,DTC participants or indirect participants to notify the Beneficial Owners of the Bonds.
Depository Risk: Wisconsin Statutes direct the local treasurer to immediately deposit upon receipt thereof, the fundsof the municipality in a public depository designated by the governing body. A public depository means a federalor state credit union, federal or state savings and loan association, state bank, savings and trust company, mutualsavings bank or national bank in Wisconsin or the local government pooled investment fund operated by the StateInvestment Board. It is not uncommon for a municipality to have deposits exceeding limits of federal and stateinsurance programs. Failure of a depository could result in loss of public funds or a delay in obtaining them. Sucha loss or delay could interrupt a timely payment of municipal debt.
Economy: A combination of economic, climatic, political or civil disruptions or terrorist actions outside of thecontrol of the Village, including loss of major taxpayers or major employers, could affect the local economy and resultin reduced tax collections and/or increased demands upon local government. Real or perceived threats to the financialstability of the Village may have an adverse effect on the value of the Bonds in the secondary market.
Secondary Market for the Bonds: No assurance can be given that a secondary market will develop for the purchaseand sale of the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Theunderwriters are not obligated to engage in secondary market trading or to repurchase any of the Bonds at the requestof the owners thereof. Prices of the Bonds as traded in the secondary market are subject to adjustment upward anddownward in response to changes in the credit markets and other prevailing circumstances. No guarantee exists asto the future market value of the Bonds. Such market value could be substantially different from the original purchaseprice.
7
Bankruptcy: The rights and remedies of the holders may be limited by and are subject to the provisions of federalbankruptcy laws, to other laws, or equitable principles that may affect the enforcement of creditors’ rights, to theexercise of judicial discretion in appropriate cases and to limitations on legal remedies against local governments. The opinion of Bond Counsel to be delivered with respect to the Bonds will be similarly qualified. See "MUNICIPALBANKRUPTCY" herein.
Cybersecurity: The Village is dependent on electronic information technology systems to deliver services. Thesesystems may contain sensitive information or support critical operational functions which may have value forunauthorized purposes. As a result, the electronic systems and networks may be targets of cyberattack. There canbe no assurance that the Village will not experience an information technology breach or attack with financialconsequences that could have a material adverse impact.
Impact of the Spread of COVID-19: In late 2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan,Hubei Province, China. COVID-19 has spread throughout the world, including to the United States, resulting in theWorld Health Organization proclaiming COVID-19 to be a pandemic and President Trump declaring a nationalemergency. In response to the spread of COVID-19, the United States government, state governments, localgovernments and private industries have taken measures to limit social interactions in an effort to limit the spread ofCOVID-19. The effects of the spread of COVID-19 and the government and private responses to the spread continueto rapidly evolve. COVID-19 has caused significant disruptions to the global, national and State economy. The extentto which the coronavirus impacts the Village and its financial condition will depend on future developments, whichare highly uncertain and cannot be predicted by the Village, including the duration of the outbreak and measures takento address the outbreak. On March 12, 2020, Wisconsin Governor Tony Evers declared a public health emergency in the State in response tothe growing threat of COVID-19. That declaration included direction to the state Department of Health Services touse any and all required resources to respond to and contain the outbreak. Governor Evers followed that up with a"safer at home" order on March 24, 2020, closing nonessential businesses, banning gatherings of any size andimposing strict travel restrictions through April 24, 2020. On April 16, 2020, the "safer at home" order was extendedand will be in effect from April 24, 2020 through May 26, 2020. Schools will remain closed for the duration of the2019-2020 school year and continue distance learning, but certain non-essential businesses will be allowed to openoperations on a limited basis during this time, including curbside pickup, delivery, mailings and minimum basicoperations.
Also on April 16, 2020, President Trump outlined "Guidelines for Opening Up America Again," a three-phasedapproach to restarting the economy based on public health experts’ advice. The guidelines start with a set of criteriathat should be met before starting phases one to three. The criteria include a downward trajectory of people with flu-like and COVID-19-like symptoms for 14 days; a downward trajectory of documented cases for 14 days or adownward trajectory of positive tests as a percentage of total tests over a 14-day period; and hospitals with the abilityto treat all patients without crisis care and a robust testing program for at-risk healthcare workers.
On April 20, 2020, Governor Evers announced Wisconsin’s three-phased approach to reopening the State’s economy,based on President Trump’s guidelines, including similar criteria to be met before phase one can begin. On April 21,2020, Republican legislators in the State filed a lawsuit challenging the legality of the Order. On May 13, 2020, theWisconsin Supreme Court ruled that the State's "safer at home" order is unlawful, invalid and unenforceable becausethe emergency rulemaking procedures under Section 227.24 of the Wisconsin Statutes and procedures established bythe Wisconsin Legislature for rulemaking if criminal penalties were to follow were not followed in connection withthe order. The Supreme Court's decision does not invalidate any local health officials' orders or prevent future localhealth officials' orders related to the COVID-19 pandemic. On May 13, 2020, the Public Health Officer of the Cityof Madison and Dane County issued an order continuing most of the provisions of the prior State "safer at home"order until May 26, 2020.
8
VALUATIONS
WISCONSIN PROPERTY VALUATIONS; PROPERTY TAXES
Equalized Value
Section 70.57, Wisconsin Statutes, requires the Department of Revenue to annually determine the equalized value(also referred to as full equalized value or aggregate full value) of all taxable property in each county and taxationdistrict. The equalized value is an independent estimate of value used to equate individual local assessment policiesso that property taxes are uniform throughout the various subdivisions in the State. Equalized value is calculatedbased on the history of comparable sales and information about value changes or taxing status provided by the localassessor. A comparison of the State-determined equalized value and the local assessed value, expressed as apercentage, is known as the assessment ratio or level of assessment. The Department of Revenue notifies each countyand taxing jurisdiction of its equalized value on August 15; school districts are notified on October 1. The equalizedvalue of each county is the sum of the valuations of all cities, villages, and towns within its boundaries. Taxingjurisdictions lying in more than one municipality, such as counties, school districts, or special taxing districts, use theequalized value of the underlying units in calculating and levying their respective levies. Equalized values are alsoused to apportion state aids and calculate municipal general obligation debt limits.
Assessed Value
The "assessed value" of taxable property in a municipality is determined by the local assessor, except formanufacturing properties which are valued by the State. Each city, village or town retains its own local assessor, whomust be certified by the State Department of Revenue. Assessed value is used by these municipalities to determinetax levy mill rates and to apportion levies among individual property owners. Each taxing district must assessproperty at full value at least once in every five-year period. The State requires that the assessed values must bewithin 10% of State equalized values at least once every four years. The local assessor values property as of January1 each year and submits those values to each municipality by the second Monday in June. The assessor also reportsany value changes taking place since the previous year, to the Department of Revenue, by the second Monday in June.
The economic impact of COVID-19 may impact assessed and equalized valuations of property in the State, includingin the Village. The Village cannot predict the extent of any such changes, but a material decrease in the equalizedvaluations of property in the Village may materially adversely affect the financial condition of the Village (see "RISKFACTORS - Impact of the Spread of COVID-19" herein).
9
CURRENT PROPERTY VALUATIONS
2019 Equalized Value $798,718,600
2019 Equalized Value Reduced by Tax Increment Valuation $698,056,700
2019 Assessed Value $685,747,800
2019 EQUALIZED VALUE BY CLASSIFICATION
2019 Equalized Value1
Percent of TotalEqualized Value
Residential $ 641,032,500 80.258%
Commercial 142,635,900 17.858%
Manufacturing 7,079,800 0.886%
Agricultural 165,000 0.021%
Undeveloped 284,400 0.036%
Ag Forest 139,500 0.017%
Forest 58,500 0.007%
Other 136,400 0.017%
Personal Property 7,186,600 0.900%
Total $ 798,718,600 100.000%
TREND OF VALUATIONS
YearAssessed
ValueEqualized
Value1
PercentIncrease/Decrease
in Equalized Value
2015 $ 620,296,900 $ 628,219,800 4.06%
2016 648,858,700 675,986,200 7.60%
2017 655,160,400 711,556,100 5.26%
2018 667,023,400 746,059,000 4.85%
2019 685,747,800 798,718,600 7.06%
Source: Wisconsin Department of Revenue, Bureau of Equalization and Local Government Services Bureau.
1 Includes tax increment valuation.
10
LARGER TAXPAYERS
Taxpayer Type of Business/Property
2019Equalized
Value1
Percent of Village's Total
Equalized Value
Summit Credit Union Financial Institution $ 15,397,180 1.93%
Johnson Health Tech NA Inc Sporting Goods Wholesaler 12,110,164 1.52%
Aster Retirement Community ofCottage Grove LLC
Assisted Living Facility 10,260,089 1.28%
Hydrite Chemical Co Chemical Wholesaler 8,807,773 1.10%
Landmark Services Cooperative Scientific/Technical Consultant 8,598,120 1.08%
Artisan Square Apartments LLC Multi Family Dwelling 5,909,897 0.74%
T-Squared LLC Multi Unit Commercial Building 5,850,961 0.73%
Stihl Inc. Equipment Manufacturing 5,591,923 0.70%
Drumlin Residences LLC Multi Family Dwelling 55+ 5,457,628 0.68%
Cambridge Holdings LLC Multi Family Dwelling 4,901,231 0.61%
Total $ 82,884,966 10.38%
Village's Total 2019 Equalized Value2 $798,718,600
Source: The Village.
1 Calculated by dividing the 2019 Assessed Values by the 2019 Aggregate Ratio of assessment for the Village.
2 Includes tax increment valuation.
11
DEBT
DIRECT DEBT1
General Obligation Debt (see schedules following)
Total General Obligation Debt (including the Bonds)* $19,490,366
Revenue Debt (see schedules following)
Total revenue debt secured by sewer revenues $ 2,242,717
Total revenue debt secured by water revenues $ 3,378,625
*Preliminary, subject to change.
1 Outstanding debt is as of the dated date of the Bonds.
12
Village
of C
ottage
Grove, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness
Gen
eral Obligation Deb
t Secured
by Taxes
(As o
f 06/18
/202
0)
3271
5532
7470
3271
5832
7472
3271
5732
7473
3271
9732
7576
3277
9532
8522
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lInterest
2020
010
,063
016
,625
03,77
50
42,084
042
,050
2021
85,838
18,981
25,000
32,875
175,00
05,80
065
0,00
077
,669
325,00
080
,850
2022
88,128
16,661
1,00
0,00
016
,250
180,00
02,02
567
5,00
064
,419
330,00
072
,650
2023
90,479
14,278
700,00
050
,669
330,00
062
,750
2024
92,893
11,832
700,00
036
,669
325,00
053
,738
2025
95,372
9,32
065
5,00
022
,709
320,00
045
,675
2026
97,916
6,74
270
0,00
07,87
524
0,00
038
,675
2027
100,52
94,09
524
5,00
032
,613
2028
103,21
11,37
724
0,00
025
,950
2029
260,00
018
,450
2030
245,00
010
,875
2031
240,00
03,60
020
3220
3320
3420
3520
3620
3720
3820
3920
40
754,36
693
,349
1,02
5,00
065
,750
355,00
011
,600
4,08
0,00
030
2,09
43,10
0,00
048
7,87
5
‐‐Con
tinued on
next p
age
Refund
ing Bo
nds
Serie
s 20
15B
04/07/20
15$4
,200
,000
04/01
Refund
ing Bo
nds
Serie
s 20
14A
06/12/20
14$6
,420
,000
04/01
Prom
issory Notes
Serie
s 20
12A
09/05/20
12$1
,600
,000
04/01
Taxable Re
fund
ing Bo
nds
Serie
s 201
2
09/05/20
12$1
,545
,000
04/01
Sewerage System
Promissory Notes
CWFL)
Serie
s 200
9
02/25/20
09$1
,682
,094
05/01
14
Village
of C
ottage
Grove, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness con
tinue
dGen
eral Obligation Deb
t Secured
by Taxes
(As o
f 06/18
/202
0)
3295
1333
1913
3316
8933
4809
3335
8533
9190
3387
1434
6764
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Principa
lInterest
Principa
lInterest
Principa
lEstim
ated
Interest
Total Prin
cipa
lTo
tal Interest
Total P
& I
Principa
l Outstan
ding
% Paid
Calend
ar
Year
Ending
2020
081
,244
036
,384
010
,058
00
024
2,28
424
2,28
419
,490
,366
.00%
2020
2021
540,00
015
4,38
840
,000
72,169
71,000
19,125
70,000
48,588
1,98
1,83
851
0,44
52,49
2,28
317
,508
,528
10.17%
2021
2022
550,00
013
8,03
840
,000
70,969
73,000
17,117
75,000
36,596
3,01
1,12
843
4,72
33,44
5,85
114
,497
,400
25.62%
2022
2023
565,00
012
1,31
334
0,00
065
,269
75,000
15,052
80,000
35,414
2,18
0,47
936
4,74
42,54
5,22
312
,316
,921
36.81%
2023
2024
575,00
010
4,21
334
5,00
054
,994
77,000
12,932
80,000
34,166
2,19
4,89
330
8,54
22,50
3,43
510
,122
,027
48.07%
2024
2025
595,00
086
,663
445,00
043
,144
80,000
10,742
80,000
32,898
2,27
0,37
225
1,15
02,52
1,52
27,85
1,65
659
.72%
2025
2026
575,00
069
,113
85,000
35,194
82,000
8,48
285
,000
31,556
1,86
4,91
619
7,63
62,06
2,55
25,98
6,73
969
.28%
2026
2027
290,00
056
,138
85,000
32,644
85,000
6,15
285
,000
30,133
890,52
916
1,77
31,05
2,30
25,09
6,21
173
.85%
2027
2028
230,00
048
,338
90,000
30,019
88,000
3,73
985
,000
28,666
836,21
113
8,08
897
4,29
94,26
0,00
078
.14%
2028
2029
230,00
041
,438
90,000
27,319
90,000
1,25
690
,000
27,113
760,00
011
5,57
487
5,57
43,50
0,00
082
.04%
2029
2030
125,00
036
,113
90,000
24,619
90,000
25,470
550,00
097
,076
647,07
62,95
0,00
084
.86%
2030
2031
125,00
032
,363
90,000
21,919
90,000
23,738
545,00
081
,619
626,61
92,40
5,00
087
.66%
2031
2032
125,00
028
,300
85,000
19,241
95,000
21,816
305,00
069
,357
374,35
72,10
0,00
089
.23%
2032
2033
130,00
023
,838
85,000
16,584
95,000
19,750
310,00
060
,172
370,17
21,79
0,00
090
.82%
2033
2034
140,00
018
,938
85,000
13,928
95,000
17,636
320,00
050
,502
370,50
21,47
0,00
092
.46%
2034
2035
145,00
013
,594
90,000
11,138
100,00
015
,368
335,00
040
,099
375,09
91,13
5,00
094
.18%
2035
2036
145,00
08,15
690
,000
8,21
310
5,00
012
,881
340,00
029
,250
369,25
079
5,00
095
.92%
2036
2037
145,00
02,71
995
,000
5,14
710
5,00
010
,283
345,00
018
,148
363,14
845
0,00
097
.69%
2037
2038
105,00
01,77
211
5,00
07,50
422
0,00
09,27
622
9,27
623
0,00
098
.82%
2038
2039
115,00
04,54
311
5,00
04,54
311
9,54
311
5,00
099
.41%
2039
2040
115,00
01,52
411
5,00
01,52
411
6,52
40
100.00
%20
40
5,23
0,00
01,06
4,90
02,37
5,00
059
0,66
372
1,00
010
4,65
31,85
0,00
046
5,63
919
,490
,366
3,18
6,52
322
,676
,888
* Prelim
inary, su
bject to change.
Parks & Pub
lic Groun
ds Bon
dsSerie
s 20
20A
06/18/20
20$1
,850
,000
*
04/01
Prom
issory Notes Ban
k Note
Serie
s 20
19A
07/22/20
19$7
85,000
04/01
Sewerage Project B
onds
Serie
s 201
8A
06/20/20
18$2
,415
,000
04/01
Corporate Pu
rpose Bo
nds
Serie
s 20
17A
04/12/20
17$6
,500
,000
04/01
15
Village
of C
ottage
Grove, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness
Revenu
e Deb
t Secured
by Sewer Reven
ues
(As o
f 06/18
/202
0)
3271
6034
6631
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Total Prin
cipa
lTo
tal Interest
Total P
& I
Principa
l Outstan
ding
% Paid
Calend
ar
Year
Ending
2020
029
,918
029
,918
29,918
2,24
2,71
7.00%
2020
2021
255,19
556
,431
255,19
556
,431
311,62
61,98
7,52
311
.38%
2021
2022
262,00
349
,532
262,00
349
,532
311,53
51,72
5,51
923
.06%
2022
2023
268,99
442
,448
268,99
442
,448
311,44
21,45
6,52
635
.06%
2023
2024
276,17
035
,176
276,17
035
,176
311,34
61,18
0,35
647
.37%
2024
2025
283,53
927
,709
283,53
927
,709
311,24
889
6,81
760
.01%
2025
2026
291,10
320
,044
291,10
320
,044
311,14
760
5,71
472
.99%
2026
2027
298,87
012
,174
298,87
012
,174
311,04
330
6,84
486
.32%
2027
2028
306,84
44,09
330
6,84
44,09
331
0,93
70
100.00
%20
28
2,24
2,71
727
7,52
62,24
2,71
727
7,52
62,52
0,24
3
Sewer System Reven
ue Bon
ds
(CWFL)
Serie
s 200
9
02/25/20
09$5
,000
,000
05/01
16
Village
of C
ottage
Grove, W
isconsin
Sche
dule of B
onde
d Inde
bted
ness
Revenu
e Deb
t Secured
by Water Reven
ues
(As o
f 06/18
/202
0)
3271
6132
7468
3288
6334
6630
3295
0533
1854
Dated
Amou
nt
Maturity
Calend
ar
Year End
ing
Principa
lInterest
Principa
lInterest
Principa
lInterest
Total Prin
cipa
lTo
tal Interest
Total P
& I
Principa
l Outstan
ding
% Paid
Calend
ar
Year
Ending
2020
018
,407
05,06
70
6,92
50
30,400
30,400
3,37
8,62
5.00%
2020
2021
130,87
635
,555
33,282
9,83
749
,998
13,465
214,15
558
,857
273,01
33,16
4,46
96.34
%20
2120
2213
3,39
533
,011
33,877
9,23
750
,768
12,689
218,04
054
,937
272,97
72,94
6,43
012
.79%
2022
2023
135,96
330
,419
34,483
8,62
651
,550
11,901
221,99
550
,946
272,94
12,72
4,43
419
.36%
2023
2024
138,58
027
,776
35,099
8,00
452
,344
11,101
226,02
346
,881
272,90
42,49
8,41
226
.05%
2024
2025
141,24
825
,083
35,727
7,37
053
,150
10,289
230,12
442
,743
272,86
72,26
8,28
732
.86%
2025
2026
143,96
722
,338
36,366
6,72
653
,968
9,46
423
4,30
138
,528
272,82
92,03
3,98
739
.80%
2026
2027
146,73
819
,540
37,016
6,07
054
,799
8,62
723
8,55
334
,236
272,79
01,79
5,43
446
.86%
2027
2028
149,56
316
,688
37,678
5,40
255
,643
7,77
624
2,88
429
,866
272,75
01,55
2,55
054
.05%
2028
2029
152,44
213
,781
38,351
4,72
256
,500
6,91
324
7,29
325
,416
272,71
01,30
5,25
661
.37%
2029
2030
155,37
710
,818
39,037
4,03
157
,370
6,03
625
1,78
420
,885
272,66
91,05
3,47
368
.82%
2030
2031
158,36
87,79
939
,735
3,32
658
,254
5,14
625
6,35
616
,271
272,62
779
7,11
776
.41%
2031
2032
161,41
64,72
140
,445
2,61
059
,151
4,24
226
1,01
211
,572
272,58
453
6,10
484
.13%
2032
2033
164,52
31,58
441
,169
1,88
060
,062
3,32
426
5,75
46,78
727
2,54
127
0,35
192
.00%
2033
2034
41,905
1,13
760
,987
2,39
210
2,89
13,52
910
6,42
016
7,45
995
.04%
2034
2035
42,654
381
61,926
1,44
510
4,58
01,82
710
6,40
662
,880
98.14%
2035
2036
62,880
484
62,880
484
63,364
010
0.00
%20
36
1,91
2,45
526
7,52
156
6,82
284
,427
899,34
812
2,21
83,37
8,62
547
4,16
53,85
2,79
0
Water System Reven
ue Bon
ds
(SDWFL)
Serie
s 201
6
12/28/20
16$1
,122
,400
05/01
Water System Reven
ue Bon
ds
(SDWFL)
Serie
s 201
5
12/23/20
15$7
30,296
05/01
Water System Reven
ue Bon
ds
(SDWFL)
Serie
s 20
13
06/12/20
13$2
,840
,252
05/01
17
DEBT LIMIT*
The constitutional and statutory general obligation debt limit for Wisconsin municipalities, including towns, cities,villages, and counties (Article XI, Section 3 of the Wisconsin Constitution and Section 67.03, Wisconsin Statutes)is 5% of the current equalized value.
Equalized Value $ 798,718,600
Multiply by 5% 0.05
Statutory Debt Limit $ 39,935,930
Less: General Obligation Debt (includes the Bonds)* (19,490,366)
Unused Debt Limit* $ 20,445,564
*Preliminary, subject to change.
OVERLAPPING DEBT1
Taxing District
2019Equalized
Value2
% In Village
TotalG.O. Debt3
Village'sProportionate Share
Dane County $ 69,928,053,700 1.1422% $ 352,385,000 $ 4,024,941
Madison Area Technical College District 94,997,912,017 0.8408% 158,365,000 1,331,533
School District of Monona Grove 2,539,745,297 31.3251% 85,895,000 26,906,695
School District of Sun Prairie 5,540,369,285 0.0567% 268,360,000 152,160
Village's Share of Total Overlapping Debt $ 32,415,329
1 Overlapping debt is as of the dated date of the Bonds. Only those taxing jurisdictions with general obligation debtoutstanding are included in this section.
2 Includes tax increment valuation.
3 Outstanding debt based on information obtained on EMMA and the Municipal Advisor's records.
17
DEBT RATIOS
G.O. Debt
Debt/EqualizedValue
$798,718,600
Debt/ PerCapita6,7201
Total General Obligation Debt* $ 19,490,366 2.44% $ 2,900.35
Village's Share of Total Overlapping Debt 32,415,329 4.06% 4,823.71
Total* $ 51,905,695 6.50% $ 7,724.06
*Preliminary, subject to change.
DEBT PAYMENT HISTORY
The Village has no record of default in the payment of principal and interest on its debt.
FUTURE FINANCING
The Village anticipates issuing approximately $5 to $7 million of general obligation debt within the next 12 monthsfor capital projects but the amount and timing of such issuance is subject to change, based on the need for certaindevelopment projects in tax incremental districts. Aside from the preceding, the Village currently has no plans foradditional financing in the next 12 months.
1 Estimated 2019 population.
18
TAX LEVIES AND COLLECTIONS
TAX LEVIES AND COLLECTIONS
Tax YearLevy for VillagePurposes Only % Collected
Levy/Equalized Value Reduced by Tax
Increment Valuation in Dollars per $1,000
2015/16 $3,216,336 100% $5.58
2016/17 3,399,323 100% 5.56
2017/18 3,698,682 100% 5.81
2018/19 3,944,385 100% 5.95
2019/20 4,220,470 In Process 6.05
Property tax statements are distributed to taxpayers by the town, village, and city treasurers in December of the levyyear. Current state law requires counties to pay 100% of the real property taxes levied to cities, villages, towns,school districts and other taxing entities on or about August 20 of the collection year.
Personal property taxes, special assessments, special charges and special taxes must be paid to the town, city or villagetreasurer in full by January 31, unless the municipality, by ordinance, permits special assessments to be paid ininstallments. Real property taxes must be paid in full by January 31 or in two equal installments by January 31 andJuly 31. Alternatively, municipalities may adopt a payment plan which permits real property taxes to be paid in threeor more equal installments, provided that the first installment is paid by January 31, one-half of the taxes are paid byApril 30 and the remainder is paid by July 31. Amounts paid on or before January 31 are paid to the town, city orvillage treasurer. Amounts paid after January 31, are paid to the county treasurer unless the municipality hasauthorized payment in three or more installments in which case payment is made to the town, city or village treasurer. On or before January 15 and February 20 the town, city or village treasurer settles with other taxing jurisdictions forall collections through December and January, respectively. In municipalities which have authorized the paymentof real property taxes in three or more installments, the town, city or village treasurer settles with the other taxingjurisdictions on January 15, February 20 and on the fifteenth day of each month following the month in which aninstallment payment is required. On or before August 20, the county treasurer must settle in full with the underlyingtaxing districts for all real property taxes and special taxes. Any county board may authorize its county treasurer toalso settle in full with the underlying taxing districts for all special assessments and special charges. The county maythen recover any tax delinquencies by enforcing the lien on the property and retain any penalties or interest on thedelinquencies for which it has settled. Uncollected personal property taxes owed by an entity that has ceasedoperations or filed a petition for bankruptcy, or are due on personal property that has been removed from the nextassessment roll are collected from each taxing entity in the year following the levy year.
The spread of COVID-19 and responses taken by the United States government, state governments, local governmentsand private industries have caused significant disruptions to the national and State economy. See "RISK FACTORS -Impact of the Spread of COVID-19" herein. On April 15, 2020, Governor Tony Evers signed into law 2019 WisconsinAct 185, which provides that for property taxes payable in 2020, a taxation district may, after making a general orcase-by-case finding of hardship, choose to waive interest or penalties on property tax installment payments paid afterApril 1, 2020 but on or before October 1, 2020. In order to take such action, the county board of supervisors must firstadopt a resolution authorizing such waiver and determining criteria for determining hardship and the taxation districtmust subsequently adopt a similar resolution. In the case of a county adopting such a resolution, the county shallproportionally settle with the taxation districts any taxes, interest and penalties collected on or before July 31, 2020on August 20, 2020, and settle the remaining unpaid taxes, interest, and penalties on September 20, 2020. The County
19
has adopted such a resolution but the Village has not yet adopted such a resolution. The Village cannot predictwhether and how payment of property taxes will be impacted by COVID-19 in this year or in future years. Any delaysor reduction in the receipt of property taxes may materially adversely impact the Village's finances and payment ofdebt obligations, including the Bonds
PROPERTY TAX RATES
Full value rates for property taxes expressed in dollars per $1,000 of equalized value (excluding tax incrementvaluation) that have been collected in recent years have been as follows:
Year Levied/Year Collected Schools1 County Local Other2 Total
2015/16 $13.82 $3.55 $5.58 $0.19 $23.14
2016/17 14.85 3.52 5.56 0.19 24.12
2017/18 14.29 3.54 5.81 0.00 23.64
2018/19 13.76 3.37 5.95 0.00 23.08
2019/20 14.03 3.29 6.05 0.00 23.37
Source: Property Tax Rates were extracted from Statement of Taxes prepared by the Wisconsin Department ofRevenue, Division of State and Local Finance.
LEVY LIMITS
Section 66.0602 of the Wisconsin Statutes, imposes a limit on property tax levies by cities, villages, towns andcounties. No city, village, town or county is permitted to increase its tax levy by a percentage that exceeds itsvaluation factor (which is defined as a percentage equal to the greater of either the percentage change in the politicalsubdivision's January 1 equalized value due to new construction less improvements removed between the previousyear and the current or zero percent). The base amount in any year to which the levy limit applies is the actual levyfor the immediately preceding year. In 2018, and in each year thereafter, the base amount is the actual levy for theimmediately preceding year plus the amount of the payment from the State under Section 79.096 of the WisconsinStatutes (an amount equal to the property taxes formerly levied on certain items of personal property), and the levylimit is the base amount multiplied by the valuation factor, minus the amount of the payment from the State underSection 79.096 of the Wisconsin Statutes. This levy limitation is an overall limit, applying to levies for operationsas well as for other purposes.
A political subdivision that did not levy its full allowable levy in the prior year can carry forward the differencebetween the allowable levy and the actual levy, up to a maximum of 1.5% of the prior year's actual levy. The use ofthe carry forward levy adjustment needs to be approved by a majority vote of the political subdivision's governingbody (except in the case of towns) if the amount of carry forward levy adjustment is less than or equal to 0.5% and
1 The Schools tax rate reflects the composite rate of all local school districts and technical college district.
2 Includes the state reforestation tax which is apportioned to each county on the basis of its full value. Counties,in turn, apportion the tax to the tax districts within their borders on the basis of full value. It also includes taxeslevied for special purpose districts such as metropolitan sewerage districts, sanitary districts, and public inlandlake protection districts. Tax increment values are not included. State property taxes were eliminated in theState's 2017 - 2019 budget act.
20
by a super majority vote of the political subdivision's governing body (three-quarters vote if the governing body iscomprised of five or more members, two-thirds vote if the governing body is comprised of fewer than five members)(except in the case of towns) if the amount of the carry forward levy adjustment is greater than 0.5% up to themaximum increase of 1.5%. For towns, the use of the carry forward levy adjustment needs to be approved by amajority vote of the annual town meeting or special town meeting after the town board has adopted a resolution infavor of the adjustment by a majority vote if the amount of carry forward levy adjustment is less than or equal to 0.5%or by two-thirds vote or more if the amount of carry forward levy adjustment is greater than 0.5% up to the maximumof 1.5%.
Beginning with levies imposed in 2015, if a political subdivision does not make an adjustment in its levy as describedin the above paragraph in the current year, the political subdivision may increase its levy by the aggregate amountof the differences between the political subdivision’s valuation factor in the previous year and the actual percentincrease in a political subdivision’s levy attributable to the political subdivision’s valuation factor in the previous year,for the five years before the current year, less any amount of such aggregate amount already claimed as an adjustmentin any of the previous five years. The calculation of the aggregate amount available for such adjustment may notinclude any year before 2014, and the maximum adjustment allowed may not exceed 5%. The use of the adjustmentdescribed in this paragraph requires approval by a two-thirds vote of the political subdivision’s governing body, andthe adjustment may only be used if the political subdivision’s level of outstanding general obligation debt in thecurrent year is less than or equal to the political subdivision’s level of outstanding general obligation debt in theprevious year.
Special provisions are made with respect to property taxes levied to pay general obligation debt service. Those aredescribed below. In addition, the statute provides for certain other exclusions from and adjustments to the tax levylimit. Among the items excluded from the limit are amounts levied for any revenue shortfall for debt service on arevenue bond issued under Section 66.0621. Among the adjustments permitted is an adjustment applicable when atax increment district terminates, which allows an amount equal to the prior year's allowable levy multiplied by 50%of the political subdivision's percentage growth due to the district's termination.
With respect to general obligation debt service, the following provisions are made:
(a) If a political subdivision's levy for the payment of general obligation debt service, including debt service on debtissued or reissued to fund or refund outstanding obligations of the political subdivision and interest on outstandingobligations of the political subdivision, on debt originally issued before July 1, 2005, is less in the current year thanin the previous year, the political subdivision is required to reduce its levy limit in the current year by the amount ofthe difference between the previous year's levy and the current year's levy.
(b) For obligations authorized before July 1, 2005, if the amount of debt service in the preceding year is less than theamount of debt service needed in the current year, the levy limit is increased by the difference between the twoamounts. This adjustment is based on scheduled debt service rather than the amount actually levied for debt service(after taking into account offsetting revenues such as sales tax revenues, special assessments, utility revenues, taxincrement revenues or surplus funds). Therefore, the levy limit could negatively impact political subdivisions thatexperience a reduction in offsetting revenues.
(c) The levy limits do not apply to property taxes levied to pay debt service on general obligation debt authorizedon or after July 1, 2005.
The Bonds were authorized after July 1, 2005 and therefore the levy limits do not apply to taxes levied to pay debtservice on the Bonds.
21
THE ISSUER
VILLAGE GOVERNMENT
The Village was incorporated in 1923 and is governed by the Village President and a six-member Village Board. Board members are elected to serve staggered two-year terms. The President votes in all cases. The appointed VillageAdministrator, Village Clerk and Village Treasurer are responsible for administrative details and financial records.
EMPLOYEES; PENSIONS
The Village employs a staff of 32 full-time, 63 part-time, and eight seasonal employees. The Village is consideringsuspending its recreational summer programs until at least August 1, 2020 which will lead to a decrease in part-timeand seasonal employees. All eligible employees in the Village are covered under the Wisconsin Retirement System("WRS") established under Chapter 40 of the Wisconsin Statutes ("Chapter 40"). The WRS is a cost-sharing multiple-employer defined benefit pension plan. The Department of Employee Trust Funds ("ETF") administers the WRS. Required contributions to the WRS are determined by the ETF Board pursuant to an annual actuarial valuation inaccordance with Chapter 40 and the ETF's funding policies. The ETF Board has stated that its funding policy is to(i) ensure funds are adequate to pay benefits; (ii) maintain stable and predictable contribution rates for employers andemployees; and (iii) maintain inter-generational equity to ensure the cost of the benefits is paid for by the generationthat receives the benefits.
Village employees are generally required to contribute half of the actuarially determined contributions, and the Villagegenerally may not pay the employees' required contribution. During the fiscal year ended December 31, 2017 ("FiscalYear 2017"), the fiscal year ended December 31, 2018 ("Fiscal Year 2018") and the fiscal year ended December 31,2019 (the "Fiscal Year 2019"), Village’s portion of contributions to WRS (not including any employee contributions)totaled $135,672, $137,259 and $145,323, respectively.
The Village implemented Governmental Accounting Standards Board Statement No. 68 ("GASB 68") for the fiscalyear ended December 31, 2015.
GASB 68 requires calculation of a net pension liability for the pension plan. The net pension liability is calculatedas the difference between the pension plan's total pension liability and the pension plan's fiduciary net position. Thepension plan's total pension liability is the present value of the amounts needed to pay pension benefits earned by eachparticipant in the pension plan based on the service provided as of the date of the actuarial valuation. In other words,it is a measure of the present value of benefits owed as of a particular date based on what has been earned only up tothat date, without taking into account any benefits earned after that date. The pension plan's fiduciary net positionis the market value of plan assets formally set aside in a trust and restricted to paying pension plan benefits. If thepension plan's total pension liability exceeds the pension plan's fiduciary net position, then a net pension liabilityresults. If the pension plan's fiduciary net position exceeds the pension plan's total pension liability, then a net pensionasset results.
As of December 31, 2018, the total pension liability of the WRS was calculated as $100.29 billion and the fiduciarynet position of the WRS was calculated as $96.74 billion, resulting in a net pension liability of $3.56 billion. Thespread of COVID-19 has significantly impacted investment markets, which may impact the funded status of the WRSand future contribution requirements as a result (see “RISK FACTORS - Impact of the Spread of COVID-19" herein).
Under GASB 68, each participating employer in a cost-sharing pension plan must report the employer's proportionateshare of the net pension liability or net pension asset of the pension plan. Accordingly, for Fiscal Year 2019, theVillage reported a liability of $475,588 for its proportionate share of the net pension liability of the WRS. The netpension liability was measured as of December 31, 2018 based on the Village’s share of contributions to the pension
22
plan relative to the contributions of all participating employers. The Village’s proportion was 0.01336792% of theaggregate WRS net pension liability as of December 31, 2018.
The calculation of the total pension liability and fiduciary net position are subject to a number of actuarialassumptions, which may change in future actuarial valuations. Such changes may have a significant impact on thecalculation of net pension liability of the WRS, which may also cause the ETF Board to change the contributionrequirements for employers and employees. For more detailed information regarding the WRS and such actuarialassumptions, see Note IV.A in "APPENDIX A - FINANCIAL STATEMENTS" attached hereto.
Recognized and Certified Bargaining Units
All eligible Village personnel are covered by the Municipal Employment Relations Act ("MERA") of the WisconsinStatutes. Pursuant to that law, employees have rights to organize and collectively bargain with municipal employers. MERA was amended by 2011 Wisconsin Act 10 (the "Act") and by 2011 Wisconsin Act 32, which altered thecollective bargaining rights of public employees in Wisconsin.
As a result of the 2011 amendments to MERA, the Village is prohibited from bargaining collectively with municipalemployees, other than public safety and transit employees, with respect to any factor or condition of employmentexcept total base wages. Even then, the Village is limited to increasing total base wages beyond any increase in theconsumer price index since 180 days before the expiration of the previous collective bargaining agreement (unlessVillage were to seek approval for a higher increase through a referendum). Ultimately, the Village can unilaterallyimplement the wages for a collective bargaining unit.
Under the changes to MERA, impasse resolution procedures were removed from the law for municipal employeesof the type employed by the Village, including binding interest arbitration. Strikes by any municipal employee orlabor organization are expressly prohibited. As a practical matter, it is anticipated that strikes will be rare. Furthermore, if strikes do occur, they may be enjoined by the courts. Additionally, because the only legal subject ofbargaining is the base wage rates, all bargaining over items such as just cause, benefits, and terms of conditions ofemployment are prohibited and cannot be included in a collective bargaining agreement. Impasse resolution for publicsafety employees and transit employees is subject to final and binding arbitration procedures, which do not includea right to strike. Interest arbitration is available for transit employees if certain conditions are met.
The following bargaining unit represents employees of the Village:
Bargaining UnitExpiration Date of Current Contract
Wisconsin Professional Police Association December 31, 2020
OTHER POST EMPLOYMENT BENEFITS
The Village provides "other post-employment benefits" ("OPEB") (i.e., post-employment benefits, other than pensionbenefits, owed to its employees and former employees) through a single-employer defined benefit plan to employeeswho have terminated their employment with the Village and have satisfied specified eligibility standards. Eligibleretirees may remain on the Village's group health plan, but are responsible for payment of the full cost of premiums,resulting in an implicit rate subsidy benefit. Membership of the plan consisted of one retiree receiving benefits and26 active eligible plan members as of December 31, 2017, the date of the latest actuarial valuation.
OPEB calculations are required to be updated every two years. Prior to fiscal years beginning after June 15, 2017,OPEB calculations were required to be prepared in accordance with Statement No. 45 of the GovernmentalAccounting Standards Board ("GASB 45") regarding retiree health and life insurance benefits, and related standards.For fiscal years beginning after June 15, 2017, OPEB calculations are required to be prepared in accordance withStatement Nos. 74 and 75 of the Governmental Accounting Standards Board ("GASB 74/75"). An actuarial study for
23
the plan prepared in accordance with GASB 74/75 was most recently completed by Key Benefit Concepts, LLC inMarch 2019 with an actuarial valuation date of December 31, 2017 (the “Actuarial Study”).
For Fiscal Year 2017, benefit payments for the plan totaled $4,608. The Village’s current funding practice is to makeannual contributions to the plan in the amounts at least equal to the benefits paid to retirees in a particular year on a"pay-as-you-go" basis.
Under GASB 74/75, a net OPEB liability (or asset) is calculated as the difference between the plan's total OPEBliability and the plan's fiduciary net position, which terms have similar meanings as under GASB 68 for pension plans.
As shown in the Actuarial Study, as of December 31, 2017, the plan's total OPEB liability was $149,793 and the planfiduciary net position was $0, resulting in a net OPEB liability of $149,793.
The calculation of the total OPEB liability and fiduciary net position are subject to a number of actuarial assumptions,which may change in future actuarial valuations. For more detailed information, the Actuarial Study is available fromthe Village upon request
LITIGATION
There is no litigation threatened or pending questioning the organization or boundaries of the Village or the right ofany of its officers to their respective offices or in any manner questioning their rights and power to execute and deliverthe Bonds or otherwise questioning the validity of the Bonds.
MUNICIPAL BANKRUPTCY
Municipalities are prohibited from filing for bankruptcy under Chapter 11 (reorganization) or Chapter 7 (liquidation)of the U.S. Bankruptcy Code (11 U.S.C. §§ 101-1532) (the "Bankruptcy Code"). Instead, the Bankruptcy Codepermits municipalities to file a petition under Chapter 9 of the Bankruptcy Code, but only if certain requirements aremet. These requirements include that the municipality must be "specifically authorized" under State law to file forrelief under Chapter 9. For these purposes, "State law" may include, without limitation, statutes of generalapplicability enacted by the State legislature, special legislation applicable to a particular municipality, and/orexecutive orders issued by an appropriate officer of the State’s executive branch.
As of the date hereof, Wisconsin law contains no express authority for municipalities to file for bankruptcy reliefunder Chapter 9 of the Bankruptcy Code.
Nevertheless, there can be no assurance (a) that State law will not change in the future, while the Bonds areoutstanding, in a way that would allow the Village to file for bankruptcy relief under Chapter 9 of the BankruptcyCode; or (b) even absent such a change in State law, that an executive order or other executive action could noteffectively authorize the Village to file for relief under Chapter 9. If, in the future, the Village were to file abankruptcy case under Chapter 9, the relevant bankruptcy court would need to consider whether the Village couldproperly do so, which would involve questions regarding State law authority as well as other questions such aswhether the Village is a municipality for bankruptcy purposes. If the relevant bankruptcy court concluded that theVillage could properly file a bankruptcy case, and that determination was not reversed, vacated, or otherwisesubstantially altered on appeal, then the rights of holders of the Bonds could be modified in bankruptcy proceedings. Such modifications could be adverse to holders of the Bonds, and there could ultimately be no assurance that holdersof the Bonds would be paid in full or in part on the Bonds. Further, under such circumstances, there could be noassurance that the Bonds would not be treated as general, unsecured debt by a bankruptcy court, meaning that claimsof holders of the Bonds could be viewed as having no priority (a) over claims of other creditors of the Village; (b)to any particular assets of the Village, or (c) to revenues otherwise designated for payment to holders of the Bonds.
24
Moreover, if the Village were determined not to be a "municipality" for the purposes of the Bankruptcy Code, norepresentations can be made regarding whether it would still be eligible for voluntary or involuntary relief underChapters of the Bankruptcy Code other than Chapter 9 or under similar federal or state law or equitable proceedingregarding insolvency or providing for protection from creditors. In any such case, there can be no assurance that theconsequences described above for the holders of the Bonds would not occur.
FUNDS ON HAND (as of April 30, 2020)
SourceTotal Cash
and Investments
Wisconsin Bank & Trust $ 4,871,073
Monona State Bank 1,812,185
LGIP 5,050
Ameritrade 2,896,385
Total Funds on Hand $ 9,584,693
25
ENTERPRISE FUNDS
Revenues available for debt service for the Village's enterprise funds have been as follows as of December 31 eachyear:
2017 2018 2019Draft Audit
Water
Total Operating Revenues $ 1,248,008 $ 1,255,394 $ 1,312,222
Less: Operating Expenses (874,772) (860,789) (933,844)
Operating Income $ 373,236 $ 394,605 $ 378,378
Plus: Depreciation 384,362 391,167 398,459
Interest Income 9,133 22,490 43,530
Revenues Available for Debt Service $ 766,731 $ 808,262 $ 820,367
Sewer
Total Operating Revenues $ 1,374,867 $ 1,687,827 $ 1,754,996
Less: Operating Expenses (1,403,110) (1,451,525) (1,575,910)
Operating Income $ (28,243) $ 236,302 $ 179,086
Plus: Depreciation 434,364 466,306 497,934
Interest Income 3,940 9,107 25,216
Revenues Available for Debt Service $ 410,061 $ 711,715 $ 702,236
26
COMBINED STATEMENT2016 Audit
2017 Audit
2018 Audit
2019 Draft Audit
2020 Budget 1)
Revenues
Taxes and special assessments $2,660,756 $2,739,390 $3,012,032 $3,129,327 $3,200,852
Intergovernmental revenues 394,615 378,622 418,905 492,151 512,925
Licenses and permits 116,573 158,021 262,610 124,670 239,200
Fines, forfeits and penalties 25,465 33,899 59,525 58,202 38,000
Public charges for services 264,685 281,539 377,890 418,460 295,811
Investment Income 13,199 18,511 25,321 5,030 18,000
Miscellaneous 89,367 77,858 44,463 56,653 112,600
Total Revenues $3,564,660 $3,687,840 $4,200,746 $4,284,493 $4,417,388
Expenditures
Current:
General government $546,797 $583,747 $626,152 $573,099 $689,714
Public safety 1,674,575 1,861,721 2,079,250 2,004,924 2,181,741
Public works 901,904 971,848 1,100,907 1,108,462 1,178,749
Culture, recreation and education 387,194 461,543 453,964 552,145 581,669
Conservation and development 48,651 46,326 85,472 53,176 105,515
Capital Outlay 0 0 0 0
Total Expenditures $3,559,121 $3,925,185 $4,345,745 $4,291,806 $4,737,388
Excess of revenues over (under) expenditures $5,539 ($237,345) ($144,999) ($7,313) ($320,000)
Other Financing Sources (Uses)
Operating transfers in 394,093 318,492 323,963 325,890 320,000
Operating transfers out 0 0 0 0
Total Other Financing Sources (Uses) 394,093 318,492 323,963 325,890 320,000
$399,632 $81,147 $178,964 $318,577 $0
General Fund Balance January 1 $941,185 $1,340,817 $1,421,964 $1,600,928
Prior Period Adjustment 0 0 0 0
Residual Equity Transfer in (out) 0 0 0 0
General Fund Balance December 31 $1,340,817 $1,421,964 $1,600,928 $1,919,505
DETAILS OF DECEMBER 31 FUND BALANCE
Nonspendable $16,383 $81,201 $189,794 $222,222
Restricted 0 0 0 0
Assigned 294,093 318,492 323,963 325,890
Unassigned 1,030,341 1,022,271 1,087,171 1,371,393
Total $1,340,817 $1,421,964 $1,600,928 $1,919,505
1 The 2020 Budget was adopted on November 18, 2019.
FISCAL YEAR ENDING DECEMBER 31
Following are summaries of the revenues and expenditures and fund balances for the Village's General Fund. These summaries arenot purported to be the complete audited financial statements of the Village, and potential purchasers should read the includedfinancial statements in their entirety for more complete information concerning the Village. Copies of the complete statements areavailable upon request. Appendix A includes the draft 2019 financial statements and the 2018 audited financial statements.
Net changes in Fund Balances
SUMMARY GENERAL FUND INFORMATION
28
GENERAL INFORMATION
LOCATION
The Village, with a 2010 U.S. Census population of 6,192 and a current estimated population of 6,720 comprises anarea of 2.3 square miles and is located approximately 15 miles east of the City of Madison and 70 miles west of theCity of Milwaukee, Wisconsin.
LARGER EMPLOYERS1
Larger employers in the Village include the following:
Firm Type of Business/ProductEstimated No.of Employees
Monona Grove School District Elementary and secondary education 4922
Johnson Health Tech Exercise equipment 300
Summit Credit Union Headquarters and credit union 250
Landmark Services Co-op Farm supplies 140
Hydrite Chemical Co. Chemicals 140
The Village Municipal government and services 1033
Badger Inventory Service Inc. Inventory service 854
1855 Saloon and Grill Restaurants 60
Piggly Wiggly Grocers - retail 50
Kids Safari Child care service 50
Source: The Village, ReferenceUSA, written and telephone survey (May 2020), Wisconsin Manufacturers Register,and the Wisconsin Department of Workforce Development.
1 This does not purport to be a comprehensive list and is based on available data obtained through a survey ofindividual employers, as well as the sources identified above. Some employers do not respond to inquiries foremployment data. Estimates provided are accurate as of the date noted and may not reflect changes in the numberof employees resulting from the current COVID-19 pandemic. (See "RISK FACTORS - Impact of the Spreadof COVID-19").
2 This is the employment number for the complete district, not just the Cottage Grove location.
3 32 FT/63 PT/8 Seasonal.
4 85 total employees, only 10 work in office, the rest are in the field statewide.
28
BUILDING PERMITS
2016 2017 2018 2019 20201
New Single Family Homes
No. of building permits 14 17 20 9 2
Valuation $3,971,917 $5,498,804 $7,451,314 $3,122,569 $834,416
New Multiple Family Buildings
No. of building permits 0 1 2 0 2
Valuation $0 $7,200,000 $1,250,000 $0 $2,400,000
New Commercial/Industrial
No. of building permits 4 12 5 4 5
Valuation $5,314,500 $1,361,424 $30,285,000 $5,197,242 $45,858,060
All Building Permits(including additions and remodelings)
No. of building permits 161 170 183 163 43
Valuation $10,926,024 $15,463,439 $41,036,051 $11,980,160 $52,619,033
Source: The Village.
1 As of May 6, 2020.
29
U.S. CENSUS DATA
Population Trend: The Village
2000 U.S. Census 4,059
2010 U.S. Census 6,192
2019 Estimated Population 6,720
Percent of Change 2000 - 2010 52.55%
Income and Age Statistics
The Village Dane CountyState of
WisconsinUnitedStates
2018 per capita income $35,063 $38,757 $32,018 $32,621
2018 median household income $94,784 $70,541 $59,209 $60,293
2018 median family income $100,739 $94,813 $75,313 $73,965
2018 median gross rent $1,147 $1,031 $837 $1,023
2018 median value owner occupied units $277,100 $252,300 $173,600 $204,900
2018 median age 34.6 yrs. 34.9 yrs. 39.3 yrs. 37.9 yrs.
State of Wisconsin United States
Village % of 2018 per capita income 109.51% 107.49%
Village % of 2018 median family income 133.76% 136.20%
Housing Statistics
The Village
2010 2018 Percent of Change
All Housing Units 2,289 2,340 2.23%
Source: 2000 and 2010 Census of Population and Housing, and 2018 American Community Survey (Based on afive-year estimate), U.S. Census Bureau (https://data.census.gov/cedsci).
EMPLOYMENT/UNEMPLOYMENT DATA
Rates are not compiled for individual communities with populations under 25,000.
Average Employment Average Unemployment
Year Dane County Dane County State of Wisconsin
2016 309,163 2.8% 4.0%
2017 312,894 2.4% 3.3%
2018 312,787 2.2% 3.0%
2019 313,824 2.4% 3.3%
2020, March1 314,498 2.2% 3.5%
Source: Wisconsin Department of Workforce Development.
1 Preliminary.
30
APPENDIX A
FINANCIAL STATEMENTS
Potential purchasers should read the included financial statements in their entirety for more complete informationconcerning the Village’s financial position. Such financial statements have been audited by the Auditor, to the extentand for the periods indicated thereon. The Village expects delivery of the draft financial statements for the fiscal yearended December 31, 2019 in substantially the form attached hereto, but such financial statements are subject to furtherrevision. The Village has not requested or engaged the Auditor to perform, and the Auditor has not performed, anyadditional examination, assessments, procedures or evaluation with respect to such financial statements since the datethereof or with respect to this Official Statement, nor has the Village requested that the Auditor consent to the use ofsuch financial statements in this Official Statement. Although the inclusion of the financial statements in this OfficialStatement is not intended to demonstrate the fiscal condition of the Village since the date of the financial statements,in connection with the issuance of the Bonds, the Village represents that there have been no material adverse changein the financial position or results of operations of the Village, nor has the Village incurred any material liabilities,which would make such financial statements misleading.
Copies of the complete audited financial statements for the past three years and the current budget are available uponrequest from Ehlers.
A-1
VILLAGE OF COTTAGE GROVECottage Grove, Wisconsin
FINANCIAL STATEMENTS
Including Independent Auditors' Report
As of and for the Year Ended December 31, 2019
Draft
cembeem
A-2
VILL
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OF
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019
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9
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Com
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- 67
Draft
A-3
INDEPENDENT AUDITORS' REPORT
To the Village BoardVillage of Cottage GroveCottage Grove, Wisconsin
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the Village of Cottage Grove,Wisconsin, as of and for the year ended December 31, 2019, and the related notes to the financial statements,which collectively comprise the Village of Cottage Grove's basic financial statements as listed in the table ofcontents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditors' judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the Village of Cottage Grove's preparationand fair presentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness of the Village of CottageGrove's internal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimates madeby management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, the business-type activities, each major fund, and theaggregate remaining fund information of the Village of Cottage Grove, Wisconsin, as of December 31, 2019and the respective changes in financial position and, where applicable, cash flows thereof for the year thenended in accordance with accounting principles generally accepted in the United States of America.
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A-4
Emphasis of Matter
As discussed in Note I, the Village of Cottage Grove adopted the provisions of Government AccountingStandards Board Statement No. 84, Fiduciary Activities, effective January 1, 2019. Our opinions are notmodified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the requiredsupplementary information as listed in the table of contents be presented to supplement the basic financialstatements. Such information, although not a part of the basic financial statements, is required by theGovernmental Accounting Standards Board who considers it to be an essential part of financial reporting forplacing the basic financial statements in an appropriate operational, economic, or historical context. We haveapplied certain limited procedures to the required supplementary information in accordance with auditingstandards generally accepted in the United States of America, which consisted of inquiries of managementabout the methods of preparing the information and comparing the information for consistency withmanagement's responses to our inquiries, the basic financial statements, and other knowledge we obtainedduring our audit of the basic financial statements. We do not express an opinion or provide any assurance onthe information because the limited procedures do not provide us with sufficient evidence to express an opinionor provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Village of Cottage Grove's basic financial statements. The supplementary information as listed inthe table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relatesdirectly to the underlying accounting and other records used to prepare the basic financial statements. Theinformation has been subjected to the auditing procedures applied in the audit of the basic financial statementsand certain additional procedures, including comparing and reconciling such information directly to theunderlying accounting and other records used to prepare the basic financial statements or to the basic financialstatements themselves, and other additional procedures in accordance with auditing standards generallyaccepted in the United States of America. In our opinion, the supplementary information is fairly stated in allmaterial respects, in relation to the basic financial statements as a whole.
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A-5
VILLAGE OF COTTAGE GROVE
STATEMENT OF NET POSITIONAs of December 31, 2019
GovernmentalActivities
Business-typeActivities Totals
ASSETSCash and investments $ 4,280,595 $ 2,480,250 $ 6,760,845Receivables
Taxes 6,768,314 - 6,768,314Delinquent personal property taxes 6,248 - 6,248Accounts 275,878 741,268 1,017,146Special assessments 18,127 - 18,127Delinquent special assessments 7,544 - 7,544Land contract 68,835 - 68,835Accrued interest 11,771 10,640 22,411
Internal balances (153,357) 153,357 -Due from other governments 7,716 - 7,716Prepaid items 6,284 330 6,614Restricted assets
Restricted cash and investments - 684,418 684,418Capital Assets
Land 11,442,115 745,071 12,187,186Construction in progress 37,715 - 37,715Other capital assets, net of depreciation 12,108,878 27,248,619 39,357,497
Total Assets 34,886,663 32,063,953 66,950,616
DEFERRED OUTFLOWS OF RESOURCESUnamortized loss on advance refunding 192,451 - 192,451Pension related amounts 1,052,172 243,487 1,295,659
Total Deferred Outflows of Resources 1,244,623 243,487 1,488,110
LIABILITIESAccounts payable 142,630 354,960 497,590Accrued liabilities 227,782 73,256 301,038Deposits 133,784 10,000 143,784Due to other governments 355 - 355Noncurrent Liabilities
Due within one year 1,612,692 753,411 2,366,103Due in more than one year 14,554,028 9,264,973 23,819,001Net pension liability 390,320 85,268 475,588
Total Liabilities 17,061,591 10,541,868 27,603,459
DEFERRED INFLOWS OF RESOURCESUnearned tax revenues 6,700,578 - 6,700,578Pension related amounts 536,085 126,613 662,698
Total Deferred Inflows of Resources 7,236,663 126,613 7,363,276
NET POSITIONNet investment in capital assets 11,635,852 18,035,371 27,489,354Restricted for
Equipment replacement - 356,707 356,707Debt service 227,915 300,592 528,507TIF districts 1,449,959 - 1,449,959
Unrestricted (Deficit) (1,480,694) 2,946,289 3,647,464
TOTAL NET POSITION $ 11,833,032 $ 21,638,959 $ 33,471,991
See accompanying notes to financial statements.
Draft
(176,26,2
-
11,442,11511,442,11537,71537
12,108,878,108,8af34,886,66334,886,663afESding 191
11aResourcesesources
A-6
VILLAGE OF COTTAGE GROVE
STATEMENT OF ACTIVITIESFor the Year Ended December 31, 2019
Program Revenues
Functions/Programs ExpensesCharges for
Services
OperatingGrants and
Contributions
Capital Grants and
Contributions
Governmental ActivitiesGeneral government $ 610,346 $ 59,654 $ - $ -Public safety 2,149,701 201,939 48,599 -Public works 2,216,038 123,560 379,804 352,912Culture, recreation and education 717,626 251,992 9,300 -Conservation and development 865,139 1,524 50,040 182,500Interest and fiscal charges 430,071 - - -
Total Governmental Activities 6,988,921 638,669 487,743 535,412
Business-type ActivitiesWater utility 1,018,982 1,312,222 - 271,378Sewer utility 1,741,696 1,754,996 - 328,599
Total Business-type Activities 2,760,678 3,067,218 - 599,977
Totals $ 9,749,599 $ 3,705,887 $ 487,743 $ 1,135,389
General RevenuesTaxes
Property taxes, levied for general purposesProperty taxes, levied for debt serviceProperty taxes, levied for TIF districtsProperty taxes, levied for other purposes
Intergovernmental revenues not restricted to specificprograms
Public gifts and grantsInvestment incomeGain on disposal of assetsMiscellaneous
Total General RevenuesTransfers
Total General Revenues and Transfers
Change in net position
NET POSITION - Beginning of Year
NET POSITION - END OF YEAR
See accompanying notes to financial statements.
Draftftf638,669638,6ft018,982 1,312,2221,312,222
1,741,696
af1,754,9961,75
aftt2,760,678,678af3,067,218,067,2aft$ 9,749,599749,599afaf$$ 3,705,883,705,88afafGeneral Revenueseneral RevenuTaxesTa
Property taxesProperty taxesProperty taxProProperty PropeProperope
IntergoInpro
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A-7
Net (Expenses) Revenues and Changes in Net Position
GovernmentalActivities
Business-typeActivities Totals
$ (550,692) $ - $ (550,692)(1,899,163) - (1,899,163)(1,359,762) - (1,359,762)
(456,334) - (456,334)(631,075) - (631,075)(430,071) - (430,071)
(5,327,097) - (5,327,097)
- 564,618 564,618- 341,899 341,899- 906,517 906,517
(5,327,097) 906,517 (4,420,580)
3,129,327 - 3,129,327413,362 - 413,362
1,912,260 - 1,912,260401,940 - 401,940
115,006 - 115,0061,023 - 1,023
61,961 68,746 130,70767,764 - 67,76489,147 58 89,205
6,191,790 68,804 6,260,594325,890 (325,890) -
6,517,680 (257,086) 6,260,594
1,190,583 649,431 1,840,014
10,642,449 20,989,528 31,631,977
$ 11,833,032 $ 21,638,959 $ 33,471,991
See accompanying notes to financial statements.
7
420,580)
3,129,3273,129,327-- 413,362413,362-- 1,912,260912,26- 401,9401,940
-- 115,0060061,0231,02
130,7130,76767
A-8
VILLAGE OF COTTAGE GROVE
BALANCE SHEETGOVERNMENTAL FUNDSAs of December 31, 2019
General FundGeneral DebtService Fund
TIF DistrictNo. 5
ASSETSCash and investments $ 1,922,258 $ 9,956 $ 1,031,328Receivables
Taxes 3,507,531 489,456 1,517,954Delinquent personal property taxes 6,248 - -Accounts 11 - 193,454Special assessments - - -Delinquent special assessments 7,544 - -Land contract - - -Accrued interest 1,505 1,185 3,460
Due from other funds 2,017 - -Due from other governments 7,716 - -Prepaid items 6,284 - -Advances to other funds 202,146 325,020 -
TOTAL ASSETS $ 5,663,260 $ 825,617 $ 2,746,196
LIABILITIES, DEFERRED INFLOWS OF RESOURCES, ANDFUND BALANCES (DEFICIT)
LiabilitiesAccounts payable $ 69,840 $ - $ 10,777Accrued liabilities 117,658 - 1,964Deposits 47,320 - -Due to other governments 355 - -Due to other funds 67,282 - -Advances from other funds - - -
Total Liabilities 302,455 - 12,741
Deferred Inflows of ResourcesUnearned revenues 3,439,795 489,456 1,517,954Unavailable revenues 1,505 1,185 3,460
Total Deferred Inflows of Resources 3,441,300 490,641 1,521,414
Fund Balances (Deficit)Nonspendable 222,222 - -Restricted - 334,976 1,212,041Committed - - -Assigned 325,890 - -Unassigned (deficit) 1,371,393 - -
Total Fund Balances (Deficit) 1,919,505 334,976 1,212,041
TOTAL LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCES(DEFICIT) $ 5,663,260 $ 825,617 $ 2,746,196
See accompanying notes to financial statements.
Draft7,5447,5
-1,5055052,01777,71676,2846,28
202,1462,146af$ 5,6635,66aaOWS OF RESOURCES, ANDWS OF RESOURCES, ANDNCESCES (DEFICIT) (DEFICIT
A-9
TIF DistrictNo. 7
CapitalProjects
NonmajorGovernmental
Funds Totals
$ 227,978 $ 973,781 $ 115,294 $ 4,280,595
771,168 355,752 126,453 6,768,314- - - 6,248- 11,825 70,588 275,878
5,421 12,706 - 18,127- - - 7,544- 68,835 - 68,835
1,189 2,112 2,320 11,771- - - 2,017- - - 7,716- - - 6,284- - - 527,166
$ 1,005,756 $ 1,425,011 $ 314,655 $ 11,980,495
$ 128 $ 13,826 $ 48,059 $ 142,6302 - 1,097 120,721- - 86,464 133,784- - - 355- - 2,017 69,299- - 613,241 613,241
130 13,826 750,878 1,080,030
771,168 355,752 126,453 6,700,5786,610 83,653 2,320 98,733
777,778 439,405 128,773 6,799,311
- - - 222,222227,848 - - 1,774,865
- - 56,981 56,981- 971,780 - 1,297,670- - (621,977) 749,416
227,848 971,780 (564,996) 4,101,154
$ 1,005,756 $ 1,425,011 $ 314,655 $ 11,980,495
See accompanying notes to financial statements.
Draft77
544448,83535
11,77112,01777,716,7166,2846,284
527,166527,166af4,655 rr$$ 11,980,49511,980,495rara826826 $$ 48,0599 $$ 142142-- 1,097 1
86,464-
2,0172,017613,241613,241D50,8750,8
A-10
VILLAGE OF COTTAGE GROVE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDSTO THE STATEMENT OF NET POSITION
As of December 31, 2019
Total Fund Balances - Governmental Funds $ 4,101,154
Amounts reported for governmental activities in the statement of net position aredifferent because:
Capital assets used in governmental funds are not financial resources and,therefore, are not reported in the funds.
Land 11,442,115Construction in progress 37,715Other capital assets 38,396,911Less: Accumulated depreciation (26,288,033)
Some receivables that are not currently available are reported as unavailablerevenues in the fund financial statements but are recognized as revenue whenearned in the government-wide statements.
Special assessments 18,127Interest 11,771Land contract 68,835
Deferred outflows of resources related to pensions do not relate to currentfinancial resources and are not reported in the governmental funds. 1,052,172
Deferred inflows of resources related to pensions do not relate to current financialresources and are not reported in the governmental funds. (536,085)
The net pension liability does not relate to current financial resources and is notreported in the governmental funds. (390,320)
Some liabilities, including long-term debt, are not due and payable in the currentperiod and, therefore, are not reported in the funds.
Bonds and notes payable (15,661,890)Compensated absences (150,311)Accrued interest (107,061)Premium on issuance of debt (354,519)
A deferred charge on refunding represents a consumption of net position thatapplies to a future period and, therefore, is not reported in the funds. 192,451
NET POSITION OF GOVERNMENTAL ACTIVITIES $ 11,833,032
See accompanying notes to financial statements.
Drafte reported as unavailabported as unava
e recognized as revenue whgnized as revenue
ated to pensions do not relate to censions do not relate to t reported in the governmental fund in the governmental fun
ces related to pensions do not relaes related to pensions do not relareported in the governmental fundreported in the governme
bility does not relate to current finbility does not relate to current finernmental funds.ernmen
long-term debt, arelong-term debt, arnot reported innot reported in
A-11
VILLAGE OF COTTAGE GROVE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS
For the Year Ended December 31, 2019
General FundGeneral DebtService Fund
TIF DistrictNo. 5
REVENUESTaxes $ 3,129,327 $ 413,362 $ 1,102,958Intergovernmental 492,151 - 228,739Licenses and permits 124,670 - -Fines, forfeitures and penalties 58,202 - -Public charges for services 418,460 - -Special assessments - - -Investment income 5,030 6,075 17,792Miscellaneous revenues 56,653 - 54,334
Total Revenues 4,284,493 419,437 1,403,823
EXPENDITURESCurrent
General government 573,099 - 60Public safety 2,004,924 - -Public works 1,108,462 - -Culture, recreation and education 552,145 - -Conservation and development 53,176 - 150,437
Capital Outlay - - 246,884Debt Service
Principal - 1,458,487 -Interest and fiscal charges - 419,306 -
Total Expenditures 4,291,806 1,877,793 397,381
Excess (deficiency) of revenues over expenditures (7,313) (1,458,356) 1,006,442
OTHER FINANCING Debt issued - - -Transfers in 325,890 1,467,766 -Transfers out - - (1,152,283)Proceeds from sale of capital assets - - 136,554
Total Other Financing (Uses) 325,890 1,467,766 (1,015,729)
Net Change in Fund Balances 318,577 9,410 (9,287)
FUND BALANCES (DEFICIT) - Beginning of Year 1,600,928 325,566 1,221,328
FUND BALANCES (DEFICIT) - END OF YEAR $ 1,919,505 $ 334,976 $ 1,212,041
See accompanying notes to financial statements.
Draft
4
5,035,056,65356,6ft4,284,4934,284,49ftt573,099573,09
2,004,9242,004,9241,108,41,10
552552
argesrgesess
over expendituresover expenditures
A-12
TIF DistrictNo. 7
CapitalProjects
NonmajorGovernmental
Funds Totals
$ 757,680 $ 350,828 $ 102,734 $ 5,856,8894,151 - 868 725,909
- - - 124,670- - - 58,202- 35,030 1,857 455,347
5,080 3,291 1,424 9,7956,836 13,802 7,295 56,830
- 51,930 223 163,140773,747 454,881 114,401 7,450,782
- - - 573,159- - - 2,004,924- - - 1,108,462- - - 552,145
501,192 - 44,638 749,4432,850 1,543,517 82,036 1,875,287
- - - 1,458,487- 15,028 - 434,334
504,042 1,558,545 126,674 8,756,241
269,705 (1,103,664) (12,273) (1,305,459)
- 785,000 - 785,000- - - 1,793,656
(198,458) - (117,025) (1,467,766)- - - 136,554
(198,458) 785,000 (117,025) 1,247,444
71,247 (318,664) (129,298) (58,015)
156,601 1,290,444 (435,698) 4,159,169
$ 227,848 $ 971,780 $ (564,996) $ 4,101,154
See accompanying notes to financial statements.
Draft4040 f0,78282 f573,159573,159
2,004,9242,004,924- 1,108,4621,108,462- 552,145552,145
44,638 749,4439,4482,0366 1,875,2875,287
-- 1,458,4871,42828 D--Dr434,3434Dr545545 D126,674D8,7575D(12,273))DD
A-13
VILLAGE OF COTTAGE GROVE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIESFor the Year Ended December 31, 2019
Net change in fund balances - total governmental funds $ (58,015)
Amounts reported for governmental activities in the statement of activities are differentbecause:
Governmental funds report capital outlays as expenditures. However, in the statement ofnet position the cost of these assets is capitalized and they are depreciated over theirestimated useful lives and reported as depreciation expense in the statement ofactivities.
Capital outlay is reported as an expenditure in the fund financial statements but iscapitalized in the government-wide financial statements 1,875,287
Some items reported as capital outlay were not capitalized (292,902)Depreciation is reported in the government-wide financial statements 1,120,448Net book value of assets retired (86,884)
Contributed capital assets are reported as revenues in the government-wide financialstatements. 349,215
Receivables not currently available are reported as revenue when collected or currentlyavailable in the fund financial statements but are recognized as revenue when earned inthe government-wide financial statements.
Special assessments (6,098)Interest receivable 5,131Installment sale revenue (1,930)
Debt issued provides current financial resources to governmental funds, but issuing debtincreases long-term liabilities in the statement of net position. Repayment of debtprincipal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.
Debt issued (785,000)Principal repaid 1,458,487
Governmental funds report debt premiums and discounts as other financing sources(uses) or expenditures. However, in the statement of net position, these are reported asadditions to or deductions from long-term debt. These are allocated over the period thedebt is outstanding in the statement of activities and are reported as interest expense.
Change in premium on debt issuance 40,655Change in loss on advance refunding (42,767)
Some expenses in the statement of activities do not require the use of current financialresources and, therefore, are not reported as expenditures in the governmental funds.
Compensated absences (23,217)Accrued interest on debt 6,375Net pension asset/liability (692,420)Deferred outflows of resources related to pensions 498,616Deferred inflows of resources related to pensions 66,498
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 3,431,479
See accompanying notes to financial statements.
Draft
e
financial stafinancial staentsents
pitalizedalizee financial statementscial statements
enues in the government-wide finathe government-wi
e reported as revenue when collecd as revenue when collements but are recognized as reveut are recognized as reve
tatements..
enueenue
rent financial resources to gorent financial resourcesties in the statement of nties in the statement
the governmental the governmentaof net positionof net position
A-14
VILLAGE OF COTTAGE GROVE
STATEMENT OF NET POSITIONPROPRIETARY FUNDSAs of December 31, 2019
Business-type Activities - Enterprise FundsWater Utility Sewer Utility Totals
ASSETSCurrent Assets
Cash and investments $ 1,256,257 $ 1,223,993 $ 2,480,250Receivables
Accounts 360,235 381,033 741,268Accrued interest 6,848 3,792 10,640
Due from other funds 31,822 35,460 67,282Prepaid items 165 165 330Restricted Assets
Redemption account 150,996 176,715 327,711Total Current Assets 1,806,323 1,821,158 3,627,481
Noncurrent AssetsRestricted Assets
Equipment replacement account - 356,707 356,707Capital Assets
Property and equipment 18,017,157 19,662,259 37,679,416Accumulated depreciation (4,735,016) (4,950,710) (9,685,726)
Other AssetsAdvances to other funds 86,075 - 86,075
Total Noncurrent Assets 13,368,216 15,068,256 28,436,472
Total Assets 15,174,539 16,889,414 32,063,953
DEFERRED OUTFLOWS OF RESOURCESPension related amounts 132,344 111,143 243,487
Total Deferred Outflows of Resources 132,344 111,143 243,487
See accompanying notes to financial statements.
Draft150,996150,9ft1,806,3231,806,323ftt-18,017,1518,0
(4,735(4,735asetssets
tss
F RESOURCESF RES
esourcesesources
A-15
Business-type Activities - Enterprise FundsWater Utility Sewer Utility Totals
LIABILITIES Current Liabilities
Accounts payable $ 114,623 $ 240,337 $ 354,960Accrued wages 10,882 8,979 19,861Accrued interest 5,354 20,922 26,276Compensated absences 9,396 7,411 16,807General obligation debt 78,514 199,286 277,800Liabilities Payable from Restricted Assets
Revenue bonds payable 210,341 248,463 458,804Accrued interest payable 16,046 11,073 27,119
Total Current Liabilities 445,156 736,471 1,181,627
Noncurrent LiabilitiesLong-Term Debt
General obligation debt payable 657,556 2,881,726 3,539,282Revenue bonds payable 3,378,624 2,241,829 5,620,453Unamortized debt premium 23,883 38,097 61,980
Other LiabilitiesNet pension liability 46,184 39,084 85,268Compensated absences 24,822 18,436 43,258Tower lease deposit 10,000 - 10,000
Total Noncurrent Liabilities 4,141,069 5,219,172 9,360,241
Total Liabilities 4,586,225 5,955,643 10,541,868
DEFERRED INFLOWS OF RESOURCESPension related amounts 68,708 57,905 126,613
Total Deferred Inflows of Resources 68,708 57,905 126,613
NET POSITIONNet investment in capital assets 8,933,223 9,102,148 18,035,371Restricted for
Equipment replacement - 356,707 356,707Debt service 134,950 165,642 300,592
Unrestricted net position 1,583,777 1,362,512 2,946,289
TOTAL NET POSITION $ 10,651,950 $ 10,987,009 $ 21,638,959
See accompanying notes to financial statements.
Draft210,34210,3
16,04616,0ft445,156445,156ftt657,556657,553,378,6243,378,624
23,88
LiabilitiesLiabilities
ilitieslities
SOURCESSOUR
rcesrces
A-16
VILLAGE OF COTTAGE GROVE
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITIONPROPRIETARY FUNDS
For the Year Ended December 31, 2019
Business-type Activities - Enterprise FundsWater Utility Sewer Utility Totals
OPERATING REVENUESCharges for services $ 1,312,222 $ 1,754,996 $ 3,067,218
Total Operating Revenues 1,312,222 1,754,996 3,067,218
OPERATING EXPENSESOperation and maintenance 535,385 1,077,976 1,613,361Depreciation 398,459 497,934 896,393
Total Operating Expenses 933,844 1,575,910 2,509,754
Operating Income 378,378 179,086 557,464
NONOPERATING REVENUES (EXPENSES)Investment income 43,530 25,216 68,746Miscellaneous non-operating income - 58 58Interest and fiscal charges (87,715) (168,371) (256,086)Amortization of premium 2,577 2,585 5,162
Total Nonoperating Revenues (Expenses) (41,608) (140,512) (182,120)
Income Before Contributions and Transfers 336,770 38,574 375,344
CONTRIBUTIONS AND TRANSFERSCapital contributions 271,378 328,599 599,977Transfers out (325,890) - (325,890)
Total Contributions and Transfers (54,512) 328,599 274,087
Change in Net Position 282,258 367,173 649,431
NET POSITION - Beginning of Year 10,369,692 10,619,836 20,989,528
NET POSITION - END OF YEAR $ 10,651,950 $ 10,987,009 $ 21,638,959
See accompanying notes to financial statements.
Draft53
398, t933,84933,8ft378,378378,378ftt43,53043,5-
(87,71712,2aExpenses) (4(autions and Transferstions and Transfers
RANSFERSANSF
TransfersTransf
A-17
VILLAGE OF COTTAGE GROVE
STATEMENT OF CASH FLOWSPROPRIETARY FUNDS
For the Year Ended December 31, 2019
Business-type Activities - Enterprise FundsWater Utility Sewer Utility Totals
CASH FLOWS FROM OPERATING ACTIVITIESReceived from customers $ 1,291,960 $ 1,715,358 $ 3,007,318Paid to suppliers for goods and services (300,014) (949,248) (1,249,262)Paid to employees for services (204,456) (168,347) (372,803)
Net Cash Flows From Operating Activities 787,490 597,763 1,385,253
CASH FLOWS FROM INVESTING ACTIVITIESInvestment income 40,440 23,510 63,950Investments purchased (455,199) (252,044) (707,243)Investments sold 414,608 231,161 645,769
Net Cash Flows From Investing Activities (151) 2,627 2,476
CASH FLOWS FROM NONCAPITAL FINANCINGACTIVITIES
Paid to municipality for tax equivalent (325,890) - (325,890)Net Cash Flows From Noncapital Financing Activities (325,890) - (325,890)
CASH FLOWS FROM CAPITAL AND RELATED FINANCINGACTIVITIES
Debt retired (284,448) (395,819) (680,267)Interest paid (88,986) (175,337) (264,323)Acquisition and construction of capital assets (103,960) (30,073) (134,033)Contributions received 17,010 28,770 45,780
Net Cash Flows From Capital and Related FinancingActivities (460,384) (572,459) (1,032,843)
Net Change in Cash and Cash Equivalents 1,065 27,931 28,996
CASH AND CASH EQUIVALENTS - Beginning of Year 527,678 1,243,534 1,771,212
CASH AND CASH EQUIVALENTS - END OF YEAR $ 528,743 $ 1,271,465 $ 1,800,208
See accompanying notes to financial statements.
Draft40,
(455,199(455,1414,608414,6ft(151)(151ftt(325,890)25,890afancing Activitiesvitie (325,890(325,89afRELATED FINANCINGD FINANCING
ion of capital assetson of capital assets
m Capital and Related Financim Capital and Related F
Cash EquivCash Equiv
A-18
Business-type Activities - Enterprise FundsWater Utility Sewer Utility Totals
RECONCILIATION OF OPERATING INCOME TO NET CASHFLOWS FROM OPERATING ACTIVITIES
Operating income $ 378,378 $ 179,086 $ 557,464Nonoperating revenue - 58 58Adjustments to Reconcile Operating Income to Net Cash
Flows From Operating ActivitiesDepreciation 398,459 497,934 896,393Depreciation charged to other funds 26,898 (26,898) -
Changes in assets and liabilitiesAccounts receivable (52,143) (14,791) (66,934)Due from other funds 4,983 1,993 6,976Prepaid items (117) (117) (234)Accounts payable 11,304 (55,751) (44,447)Accrued wages 439 1,074 1,513Compensated absences 2,102 365 2,467Pension related deferrals and assets/liabilities 17,187 14,810 31,997
NET CASH FLOWS FROM OPERATINGACTIVITIES $ 787,490 $ 597,763 $ 1,385,253
RECONCILIATION OF CASH AND CASH EQUIVALENTS TOTHE STATEMENT OF NET POSITION - PROPRIETARYFUNDS
Cash and investments $ 1,256,257 $ 1,223,993 $ 2,480,250Restricted cash and investments 150,996 533,422 684,418Less: Noncash equivalents (878,510) (485,950) (1,364,460)
CASH AND CASH EQUIVALENTS $ 528,743 $ 1,271,465 $ 1,800,208
NONCASH CAPITAL AND RELATED FINANCINGACTIVITIES
Developer financed additions to utility plant $ 254,368 $ 299,829Amortization of premium on debt $ 2,577 $ 2,585Change in capital accruals $ (12,809) $ -
See accompanying notes to financial statements.
Draft3
26
(52,143)(52,14,9834,983(117)(117)
11,30404439
2,1022,10bilities 17,1877,187afPERATINGNG
$ 7aaAND CASH EQUIVALENTS TOND CASH EQUIVALEPOSITION - PROPRIETARYPOSITION - PROPRIETAR
tmentstments
LENTSLENTS
A-19
VILLAGE OF COTTAGE GROVE
STATEMENT OF FIDUCIARY NET POSITIONCUSTODIAL FUND
As of December 31, 2019
Custodial FundTax Collection
FundASSETS
Cash and investments $ 9,506,211Taxes receivable 2,582,966
Total Assets 12,089,177
LIABILITIESDue to other governments 12,089,177
Total Liabilities 12,089,177
NET POSITION
TOTAL NET POSITION $ -
See accompanying notes to financial statements.
Draft
A-20
VILLAGE OF COTTAGE GROVE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONCUSTODIAL FUND
For the Year Ended December 31, 2019
Custodial FundADDITIONS
Property taxes collected for other governments $ 8,438,595Total Additions 8,438,595
DEDUCTIONSProperty taxes distributed to other governments 8,438,595
Total Deductions 8,438,595
Change in Fiduciary Net Position -
NET POSITION - Beginning of Year -
NET POSITION - END OF YEAR $ -
See accompanying notes to financial statements. A-21
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men
tsan
d In
v ets
ets
es/P
ayab
les
/Pay
abl
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
The
acco
untin
g po
licie
s of
the
Villa
ge o
f Cot
tage
Gro
ve, W
isco
nsin
con
form
to a
ccou
ntin
g pr
inci
ples
gene
rally
acc
epte
d in
the
Uni
ted
Stat
es o
f Am
eric
a as
app
licab
le to
gov
ernm
enta
l uni
ts. T
he a
ccep
ted
stan
dard
-set
ting
body
for e
stab
lishi
ng g
over
nmen
tal a
ccou
ntin
g an
d fin
anci
al re
porti
ng p
rinci
ples
is th
eG
over
nmen
tal A
ccou
ntin
g St
anda
rds
Boar
d (G
ASB)
.
A.
REP
OR
TIN
G E
NTI
TY
This
repo
rt in
clud
es a
ll of
the
fund
s of
the
villa
ge. T
he re
porti
ng e
ntity
for t
he v
illag
e co
nsis
ts o
f the
prim
ary
gove
rnm
ent a
nd it
s co
mpo
nent
uni
ts. C
ompo
nent
uni
ts a
re le
gally
sep
arat
e or
gani
zatio
ns fo
rw
hich
the
prim
ary
gove
rnm
ent i
s fin
anci
ally
acc
ount
able
or o
ther
org
aniz
atio
ns fo
r whi
ch th
e na
ture
and
sign
ifica
nce
of th
eir r
elat
ions
hip
with
the
prim
ary
gove
rnm
ent a
re s
uch
that
thei
r exc
lusi
on w
ould
cau
seth
e re
porti
ng e
ntity
's fi
nanc
ial s
tate
men
ts to
be
mis
lead
ing.
The
villa
ge h
as n
ot id
entif
ied
any
orga
niza
tions
that
mee
t thi
s cr
iteria
.
B.
GO
VER
NM
ENT-
WID
EA
ND
FU
ND
FIN
AN
CIA
L ST
ATE
MEN
TS
In J
anua
ry 2
017,
the
GAS
B is
sued
sta
tem
ent N
o. 8
4 - F
iduc
iary
Act
iviti
es. T
his
stat
emen
t est
ablis
hes
crite
ria fo
r ide
ntify
ing
fiduc
iary
act
iviti
es o
f all
stat
e an
d lo
cal g
over
nmen
ts fo
r acc
ount
ing
and
finan
cial
repo
rting
pur
pose
s an
d ho
w th
ose
activ
ities
sho
uld
be re
porte
d. T
his
stan
dard
was
impl
emen
ted
Janu
ary
1, 2
019.
In M
arch
201
8, th
e G
ASB
issu
ed s
tate
men
t No.
88
- Cer
tain
Dis
clos
ures
Rel
ated
to D
ebt,
incl
udin
g D
irect
Bor
row
ings
and
Dire
ct P
lace
men
ts. T
his
stat
emen
t def
ines
deb
t for
pur
pose
s of
dis
clos
ure
in n
otes
tofin
anci
al s
tate
men
ts a
nd e
stab
lishe
s ad
ditio
nal f
inan
cial
sta
tem
ent n
ote
disc
losu
re re
quire
men
ts re
late
dto
deb
t obl
igat
ions
of g
over
nmen
ts, i
nclu
ding
dire
ct b
orro
win
gs a
nd d
irect
pla
cem
ents
. Thi
s st
anda
rd w
asim
plem
ente
d Ja
nuar
y 1,
201
9.
Gov
ernm
ent-W
ide
Fina
ncia
l Sta
tem
ents
The
stat
emen
t of n
et p
ositi
on a
nd s
tate
men
t of a
ctiv
ities
dis
play
info
rmat
ion
abou
t the
repo
rting
gove
rnm
ent a
s a
who
le. T
hey
incl
ude
all f
unds
of t
he re
porti
ng e
ntity
exc
ept f
or fi
duci
ary
fund
s.Th
est
atem
ents
dis
tingu
ish
betw
een
gove
rnm
enta
l and
bus
ines
s-ty
pe a
ctiv
ities
. Gov
ernm
enta
l act
iviti
esge
nera
lly a
re fi
nanc
ed th
roug
h ta
xes,
inte
rgov
ernm
enta
l rev
enue
s, a
nd o
ther
non
exch
ange
reve
nues
.Bu
sine
ss-ty
pe a
ctiv
ities
are
fina
nced
in w
hole
or i
n pa
rt by
fees
cha
rged
to e
xter
nal p
artie
s fo
r goo
ds o
rse
rvic
es.
The
stat
emen
t of a
ctiv
ities
dem
onst
rate
s th
e de
gree
to w
hich
the
dire
ct e
xpen
ses
of a
giv
en fu
nctio
n or
segm
ent a
re o
ffset
by
prog
ram
reve
nues
. Dire
ct e
xpen
ses
are
thos
e th
at a
re c
lear
ly id
entif
iabl
e w
ith a
spec
ific
func
tion
or s
egm
ent.
The
villa
ge d
oes
not a
lloca
te in
dire
ct e
xpen
ses
to fu
nctio
ns in
the
stat
emen
t of a
ctiv
ities
. Pro
gram
reve
nues
incl
ude
1) c
harg
es to
cus
tom
ers
or a
pplic
ants
who
pur
chas
e,us
e or
dire
ctly
ben
efit
from
goo
ds, s
ervi
ces,
or p
rivile
ges
prov
ided
by
a gi
ven
func
tion
or s
egm
ent,
and
2)gr
ants
and
con
tribu
tions
that
are
rest
ricte
d to
mee
ting
the
oper
atio
nal o
r cap
ital r
equi
rem
ents
of a
parti
cula
r fun
ctio
n or
seg
men
t. Ta
xes
and
othe
r ite
ms
not i
nclu
ded
amon
g pr
ogra
m re
venu
es a
rere
porte
d as
gen
eral
reve
nues
. Int
erna
lly d
edic
ated
reso
urce
s ar
e re
porte
d as
gen
eral
reve
nues
rath
erth
an a
s pr
ogra
m re
venu
es.
18Draftg
entit
y f
enits
are
lega
llyits
are
lega
llr o
ther
org
aniz
atio
othe
r org
aniz
nmen
t are
suc
h th
at th
eint
are
suc
h th
atad
ing.
The
Th
e vi
llage
vill
has
not
ide
has
not i
d
AL
STA
TEM
ENTS
EMEN
TS
tem
ent N
o. 8
4 -
o. 8
4 - F
iduc
iary
Act
iviti
esdu
ciar
y A
ctiv
ittie
s of
all
stat
e an
d lo
cal g
over
nmst
ate
and
loca
l gov
ernm
how
thos
e ac
tiviti
es s
houl
d be
rep
e ac
tiviti
es s
houl
d be
re
DB
issu
ed s
tate
men
t No.
88
- is
sued
sta
tem
ent N
o. 8
8 - C
erta
iC
eP
lace
men
ts.
Pla
cem
Thi
s st
atem
ent d
efin
tate
men
t def
ind
esta
blis
hes
addi
tiona
l fin
anc
d es
tabl
ishe
s ad
ditio
nal
rnm
ents
, inc
ludi
ng d
irect
rnm
ents
, inc
ludi
ng d
i99
Dal
Sta
teal
Sta
te
A-22
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
B.
GO
VER
NM
ENT-
WID
EA
ND
FU
ND
FIN
AN
CIA
L ST
ATE
MEN
TS(c
ont.)
Fund
Fin
anci
al S
tate
men
ts
Fina
ncia
l sta
tem
ents
of t
he v
illage
are
org
aniz
ed in
to fu
nds,
eac
h of
whi
ch is
con
side
red
to b
e a
sepa
rate
acc
ount
ing
entit
y. E
ach
fund
is a
ccou
nted
for b
y pr
ovid
ing
a se
para
te s
et o
f sel
f-bal
anci
ngac
coun
ts, w
hich
con
stitu
te it
s as
sets
, def
erre
d ou
tflow
s of
reso
urce
s, li
abilit
ies,
def
erre
d in
flow
s of
reso
urce
s, n
et p
ositi
on/fu
nd b
alan
ce, r
even
ues,
and
exp
endi
ture
s/ex
pens
es.
Fund
s ar
e or
gani
zed
as m
ajor
fund
s or
non
maj
or fu
nds
with
in th
e go
vern
men
tal a
nd p
ropr
ieta
ryst
atem
ents
. An
emph
asis
is p
lace
d on
maj
or fu
nds
with
in th
e go
vern
men
tal a
nd p
ropr
ieta
ryca
tego
ries.
Afu
nd is
con
side
red
maj
or if
it is
the
prim
ary
oper
atin
g fu
nd o
f the
vill
age
or m
eets
the
follo
win
g cr
iteria
:
a. T
otal
ass
ets/
defe
rred
outfl
ows
of re
sour
ces,
liab
ilitie
s/de
ferre
d in
flow
s of
reso
urce
s, re
venu
es,
or e
xpen
ditu
res/
expe
nses
of t
hat i
ndiv
idua
l gov
ernm
enta
l or e
nter
pris
e fu
nd a
re a
t lea
st 1
0% o
fth
e co
rresp
ondi
ng to
tal f
or a
ll fu
nds
of th
at c
ateg
ory
or ty
pe, a
nd
b. T
he s
ame
elem
ent o
f the
indi
vidu
al g
over
nmen
tal o
r ent
erpr
ise
fund
that
met
the
10%
test
is a
tle
ast 5
% o
f the
cor
resp
ondi
ng to
tal f
or a
ll go
vern
men
tal a
nd e
nter
pris
e fu
nds
com
bine
d.
c. I
n ad
ditio
n, a
ny o
ther
gov
ernm
enta
l or e
nter
pris
e fu
nd th
at th
e vi
llage
bel
ieve
s is
par
ticul
arly
impo
rtant
to fi
nanc
ial s
tate
men
t use
rs m
ay b
e re
porte
d as
a m
ajor
fund
.
Sepa
rate
fina
ncia
l sta
tem
ents
are
pro
vide
d fo
r gov
ernm
enta
l fun
ds, p
ropr
ieta
ry fu
nds
and
fiduc
iary
fund
s, e
ven
thou
gh th
e la
tter a
re e
xclu
ded
from
the
gove
rnm
ent-w
ide
finan
cial
sta
tem
ents
. Maj
orin
divi
dual
gov
ernm
enta
l fun
ds a
nd m
ajor
indi
vidu
al e
nter
pris
e fu
nds
are
repo
rted
as s
epar
ate
colu
mns
inth
e fu
nd fi
nanc
ial s
tate
men
ts.
The
villa
ge re
ports
the
follo
win
g m
ajor
gov
ernm
enta
l fun
ds:
Gen
eral
Fun
d - a
ccou
nts
for t
he v
illage
's p
rimar
y op
erat
ing
activ
ities
. It i
s us
ed to
acc
ount
for
and
repo
rt al
l fin
anci
al re
sour
ces
exce
pt th
ose
acco
unte
d fo
r and
repo
rted
in a
noth
er fu
nd.
Gen
eral
Deb
t Ser
vice
Fun
d - u
sed
to a
ccou
nt fo
r and
repo
rt fin
anci
al re
sour
ces
that
are
rest
ricte
d, c
omm
itted
, or a
ssig
ned
to e
xpen
ditu
re fo
r the
pay
men
t of g
ener
al lo
ng-te
rm d
ebt
prin
cipa
l, in
tere
st, a
nd re
late
d co
sts,
oth
er th
an T
ID o
r ent
erpr
ise
debt
.C
apita
l Pro
ject
s Fu
nd -
used
to a
ccou
nt fo
r and
repo
rt fin
anci
al re
sour
ces
that
are
rest
ricte
d,co
mm
itted
, or a
ssig
ned
to e
xpen
ditu
res
for c
apita
l out
lays
, inc
ludi
ng th
e ac
quis
ition
or
cons
truct
ion
of c
apita
l fac
ilitie
s an
d ot
her c
apita
l ass
ets.
Tax
Incr
emen
tal D
istri
ct (T
ID) N
o. 5
Cap
ital P
roje
cts
Fund
- us
ed to
acc
ount
for a
nd re
port
finan
cial
reso
urce
s th
at a
re re
stric
ted,
com
mitt
ed, o
r ass
igne
d to
exp
endi
ture
s ou
tline
d in
the
TID
pro
ject
pla
n.Ta
x In
crem
enta
l Dis
trict
(TID
) No.
7 C
apita
l Pro
ject
s Fu
nd -
used
to a
ccou
nt fo
r and
repo
rtfin
anci
al re
sour
ces
that
are
rest
ricte
d, c
omm
itted
, or a
ssig
ned
to e
xpen
ditu
res
outli
ned
inth
e TI
D p
roje
ct p
lan.
19Draftes
es/e
xpe
s/e
ithin
the
hin
thgo
vern
men
gove
rnhi
n th
e he g
over
nmen
tal a
ndgo
vern
men
tal
g fu
nd o
f the
th
e vi
llage
vi o
r mee
ts t
or m
eets
t
ourc
es, l
iabi
litie
s/de
ferre
d in
flow
s o
abilit
ies/
defe
rred
inflo
ws
ndiv
idua
l gov
ernm
enta
l go
vern
me
or e
nter
pri
or e
nte
nds
of th
at c
ateg
ory
or ty
pe, a
nd
t cat
egor
y or
type
, and
divi
dual
gov
ernm
enta
l go
vern
men
tal o
r ent
erpr
isor
ent
erpr
ind
ing
tota
l for
all
gove
rnm
enta
l al
for a
ll go
vern
men
tal a
na
er g
over
nmen
tal
r gov
ernm
enta
l or e
nter
pris
e or
ent
erpr
ise
fund
fund
cial
sta
tem
ent u
sers
may
be
repo
cial
sta
tem
ent u
sers
may
b D
emen
ts a
re p
rovi
ded
for g
over
nmem
ents
are
pro
vide
d fo
r gov
ern
tter a
re e
xclu
ded
from
the
gtte
r are
exc
lude
d fro
m
ds a
nd m
ajor
indi
vidu
ads
and
maj
or in
divi
d
or g
oor
go
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
B.
GO
VER
NM
ENT-
WID
EA
ND
FU
ND
FIN
AN
CIA
L ST
ATE
MEN
TS(c
ont.)
Fund
Fin
anci
al S
tate
men
ts (c
ont.)
The
villa
ge re
ports
the
follo
win
g m
ajor
ent
erpr
ise
fund
s:
Wat
erU
tility
- ac
coun
ts fo
r ope
ratio
ns o
f the
wat
er s
yste
mSe
wer
Util
ity -
acco
unts
for o
pera
tions
of t
he s
ewer
sys
tem
The
villa
ge re
ports
the
follo
win
g no
nmaj
or g
over
nmen
tal f
unds
:
Spec
ial R
even
ue F
unds
- us
ed to
acc
ount
for a
nd re
port
the
proc
eeds
of s
peci
fic re
venu
eso
urce
s th
at a
re re
stric
ted
or c
omm
itted
to e
xpen
ditu
res
for s
peci
fied
purp
oses
(oth
er th
an d
ebt
serv
ice
or c
apita
l pro
ject
s).
Tree
Fun
dPa
rk D
evel
opm
ent F
ees
Dev
elop
er D
epos
its
Cap
ital P
roje
cts
Fund
- us
ed to
acc
ount
for a
nd re
port
finan
cial
reso
urce
s th
at a
re re
stric
ted,
com
mitt
ed, o
r ass
igne
d to
exp
endi
ture
for c
apita
l out
lays
, inc
ludi
ng th
e ac
quis
ition
or
cons
truct
ion
of c
apita
l fac
ilitie
s an
d ot
her c
apita
l ass
ets.
Tax
Incr
emen
tal D
istri
ct N
o. 6
Tax
Incr
emen
tal D
istri
ct N
o. 9
Tax
Incr
emen
tal D
istri
ct N
o. 8
Tax
Incr
emen
tal D
istri
ct N
o. 1
0
In a
dditi
on, t
he v
illag
e re
ports
the
follo
win
g fu
nd ty
pe:
Cus
todi
al F
und
- use
d to
acc
ount
for a
nd re
port
asse
ts c
ontro
lled
by th
e vi
llage
and
the
asse
tsar
e fo
r the
ben
efit
of in
divi
dual
s, p
rivat
e or
gani
zatio
ns, a
nd/o
r oth
er g
over
nmen
tal u
nits
.
Tax
Col
lect
ion
Fund
C.
MEA
SUR
EMEN
T FO
CU
S, B
ASI
S O
F A
CC
OU
NTI
NG
, AN
D F
INA
NC
IAL
STA
TEM
ENT
PRES
ENTA
TIO
N
Gov
ernm
ent-W
ide
Fina
ncia
l Sta
tem
ents
The
gove
rnm
ent-w
ide
stat
emen
t of n
et p
ositi
on a
nd s
tate
men
t of a
ctiv
ities
are
repo
rted
usin
g th
eec
onom
ic re
sour
ces
mea
sure
men
t foc
us a
nd th
e ac
crua
l bas
is o
f acc
ount
ing.
Und
er th
e ac
crua
l bas
is o
fac
coun
ting,
reve
nues
are
reco
gniz
ed w
hen
earn
ed a
nd e
xpen
ses
are
reco
rded
whe
n th
e lia
bilit
y is
incu
rred
or e
cono
mic
ass
et u
sed.
Rev
enue
s, e
xpen
ses,
gai
ns, l
osse
s, a
sset
s, a
nd li
abilit
ies
resu
lting
from
exc
hang
e an
d ex
chan
ge-li
ke tr
ansa
ctio
ns a
re re
cogn
ized
whe
n th
e ex
chan
ge ta
kes
plac
e. P
rope
rtyta
xes
are
reco
gniz
ed a
s re
venu
es in
the
year
for w
hich
they
are
levi
ed. T
axes
rece
ivab
le fo
r the
follo
win
gye
ar a
re re
cord
ed a
s re
ceiv
able
s an
d de
ferre
d in
flow
s. G
rant
s an
d si
mila
r ite
ms
are
reco
gniz
ed a
sre
venu
e as
soo
n as
all
elig
ibilit
y re
quire
men
ts im
pose
d by
the
prov
ider
are
met
. Spe
cial
ass
essm
ents
are
reco
rded
as
reve
nue
whe
n ea
rned
. Unb
illed
rece
ivab
les
are
reco
rded
as
reve
nues
whe
n se
rvic
esar
e pr
ovid
ed.
20Draftem
yste
mte
m
fund
s:nd
s
nt fo
r and
repo
rt th
e pr
ocee
ds o
f re
port
the
proc
eeds
of
d to
exp
endi
ture
s fo
r spe
cifie
d pu
ture
s fo
r spe
cifie
d pu
Park
Dev
elop
Park
Dev
elop
- use
d to
acc
ount
for a
nd re
port
fus
ed to
acc
ount
for a
nd re
port
fgn
ed to
exp
endi
ture
for c
apita
l out
ned
to e
xpen
ditu
re fo
r cap
ital o
uap
ital f
acilit
ies
and
othe
r cap
ital a
apita
l fac
ilitie
s an
d ot
her c
a
men
tal D
istri
ct N
o. 6
men
ta ntal
Dis
trict
No.
8nt
al D he
follo
win
g fu
he fo
llow
ing
fu
coco
A-23
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
C.
MEA
SUR
EMEN
T FO
CU
S, B
ASI
S O
F A
CC
OU
NTI
NG
, AN
D F
INA
NC
IAL
STA
TEM
ENT
PRES
ENTA
TIO
N(c
ont.)
Gov
ernm
ent-W
ide
Fina
ncia
l Sta
tem
ents
(con
t.)
As a
gen
eral
rule
, the
effe
ct o
f int
erfu
nd a
ctiv
ity h
as b
een
elim
inat
ed fr
om th
e go
vern
men
t-wid
e fin
anci
alst
atem
ents
. Exc
eptio
ns to
this
gen
eral
rule
are
cha
rges
bet
wee
n th
e vi
llage
's w
ater
and
sew
er u
tiliti
esan
d va
rious
oth
er fu
nctio
ns o
f the
gov
ernm
ent.
Elim
inat
ion
of th
ese
char
ges
wou
ld d
isto
rt th
e di
rect
cos
tsan
d pr
ogra
m re
venu
es re
porte
d fo
r the
var
ious
func
tions
con
cern
ed.
Fund
Fin
anci
al S
tate
men
ts
Gov
ernm
enta
l fun
d fin
anci
al s
tate
men
ts a
re re
porte
d us
ing
the
curre
nt fi
nanc
ial r
esou
rces
mea
sure
men
tfo
cus
and
the
mod
ified
acc
rual
bas
is o
f acc
ount
ing.
Rev
enue
s ar
e re
cord
ed w
hen
they
are
bot
hm
easu
rabl
e an
d av
aila
ble.
Ava
ilabl
e m
eans
col
lect
ible
with
in th
e cu
rrent
per
iod
or s
oon
enou
ghth
erea
fter t
o be
use
d to
pay
liab
ilitie
s of
the
curre
nt p
erio
d. F
or th
is p
urpo
se, t
he v
illage
con
side
rsre
venu
es to
be
avai
labl
e if
they
are
col
lect
ed w
ithin
60
days
of t
he e
nd o
f the
cur
rent
fisc
al p
erio
d.Ex
pend
iture
s ar
e re
cord
ed w
hen
the
rela
ted
fund
liab
ility
is in
curre
d, e
xcep
t for
unm
atur
ed in
tere
st o
nlo
ng-te
rm d
ebt,
clai
ms,
judg
men
ts, c
ompe
nsat
ed a
bsen
ces,
and
pen
sion
exp
endi
ture
s, w
hich
are
reco
rded
as
a fu
nd li
abilit
y w
hen
expe
cted
to b
e pa
id w
ith e
xpen
dabl
e av
aila
ble
finan
cial
reso
urce
s.
Prop
erty
taxe
s ar
e re
cord
ed in
the
year
levi
ed a
s re
ceiv
able
s an
d de
ferre
d in
flow
s. T
hey
are
reco
gniz
edas
reve
nues
in th
e su
ccee
ding
yea
r whe
n se
rvic
es fi
nanc
ed b
y th
e le
vy a
re b
eing
pro
vide
d.
Inte
rgov
ernm
enta
l aid
s an
d gr
ants
are
reco
gniz
ed a
s re
venu
es in
the
perio
d th
e vi
llage
is e
ntitl
ed th
ere
sour
ces
and
the
amou
nts
are
avai
labl
e. A
mou
nts
owed
to th
e vi
llage
whi
ch a
re n
ot a
vaila
ble
are
reco
rded
as
rece
ivab
les
and
unav
aila
ble
reve
nues
. Am
ount
s re
ceiv
ed b
efor
e el
igib
ility
requ
irem
ents
(exc
ludi
ng ti
me
requ
irem
ents
) are
met
are
reco
rded
as
liabi
litie
s. A
mou
nts
rece
ived
in a
dvan
ce o
fm
eetin
g tim
e re
quire
men
ts a
re re
cord
ed a
s de
ferre
d in
flow
s.
Spec
ial a
sses
smen
ts a
re re
cord
ed a
s re
venu
es w
hen
they
bec
ome
mea
sura
ble
and
avai
labl
e as
cur
rent
asse
ts. A
nnua
l ins
tallm
ents
due
in fu
ture
yea
rs a
re re
flect
ed a
s re
ceiv
able
s an
d un
avai
labl
e re
venu
es.
Del
inqu
ent s
peci
al a
sses
smen
ts b
eing
hel
d fo
r col
lect
ion
by th
e co
unty
are
repo
rted
as re
ceiv
able
s an
dno
nspe
ndab
le fu
nd b
alan
ce in
the
gene
ral f
und.
Rev
enue
s su
scep
tible
to a
ccru
al in
clud
e pr
oper
ty ta
xes,
mis
cella
neou
s ta
xes,
pub
lic c
harg
es fo
rse
rvic
es, s
peci
al a
sses
smen
ts a
nd in
tere
st. O
ther
gen
eral
reve
nues
suc
h as
fine
s an
d fo
rfeitu
res,
insp
ectio
n fe
es, r
ecre
atio
n fe
es, a
nd m
isce
llane
ous
reve
nues
are
reco
gniz
ed w
hen
rece
ived
in c
ash
orw
hen
mea
sura
ble
and
avai
labl
e un
der t
he c
riter
ia d
escr
ibed
abo
ve.
Prop
rieta
ry a
nd fi
duci
ary
fund
fina
ncia
l sta
tem
ents
are
repo
rted
usin
g th
e ec
onom
ic re
sour
ces
mea
sure
men
t foc
us a
nd th
e ac
crua
l bas
is o
f acc
ount
ing,
as
desc
ribed
pre
viou
sly
in th
is n
ote.
21Drafte
crn
ed.
ed
d us
ing
the
curre
nt fi
nanc
ial r
eshe
cur
rent
fina
ncia
l res
ng. R
even
ues
are
reco
rded
whe
n es
are
reco
rded
whe
n ol
lect
ible
with
in th
e cu
rrent
per
iod
e w
ithin
the
curre
ntcu
rrent
per
iod.
pe
riod.
For
this
pur
pose
, tFo
r thi
s pu
rpos
cted
with
in 6
0 da
ys o
f the
end
of t
h60
day
s of
the
end
of t
elat
ed fu
nd li
abilit
y is
incu
rred,
exc
nd li
abilit
y is
incu
rred,
eom
pens
ated
abs
ence
s, a
nd p
ens
ted
abse
nces
, and
pen
sex
pect
ed to
be
paid
with
exp
enda
to b
e pa
id w
ith e
xpen
da
d in
the
year
levi
ed a
s re
ceiv
able
s in
the
year
levi
ed a
s re
ced
ing
year
whe
n se
rvic
es fi
nanc
eed
ing
year
whe
n se
rvic
es fi
na
nd g
rant
s ar
e re
cogn
ized
as
nd g
rant
s ar
e re
cogn
iz D
are
avai
labl
e. A
mou
nts
are
avai
labl
e. A
mou
unav
aila
ble
reve
nuun
avai
labl
e re
ven
e m
et a
re re
ce
met
are
reor
ded
asor
ded
a
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
C.
MEA
SUR
EMEN
T FO
CU
S, B
ASI
S O
F A
CC
OU
NTI
NG
, AN
D F
INA
NC
IAL
STA
TEM
ENT
PRES
ENTA
TIO
N(c
ont.)
Fund
Fin
anci
al S
tate
men
ts (c
ont.)
The
prop
rieta
ry fu
nds
dist
ingu
ish
oper
atin
g re
venu
es a
nd e
xpen
ses
from
non
oper
atin
g ite
ms.
Ope
ratin
gre
venu
es a
nd e
xpen
ses
gene
rally
resu
lt fro
m p
rovi
ding
ser
vice
s an
d pr
oduc
ing
and
deliv
erin
g go
ods
inco
nnec
tion
with
a p
ropr
ieta
ry fu
nd's
prin
cipa
l ong
oing
ope
ratio
ns. T
he p
rinci
pal o
pera
ting
reve
nues
of
the
wat
er a
nd s
ewer
util
ities
are
cha
rges
to c
usto
mer
s fo
r sal
es a
nd s
ervi
ces.
Spe
cial
ass
essm
ents
are
reco
rded
as
rece
ivab
les
and
cont
ribut
ion
reve
nue
whe
n le
vied
. Ope
ratin
g ex
pens
es fo
r pro
prie
tary
fund
sin
clud
e th
e co
st o
f sal
es a
nd s
ervi
ces,
adm
inis
trativ
e ex
pens
es, a
nd d
epre
ciat
ion
on c
apita
l ass
ets.
All
reve
nues
and
exp
ense
s no
t mee
ting
this
def
initi
on a
re re
porte
d as
non
oper
atin
g re
venu
es a
ndex
pens
es.
All
Fina
ncia
l Sta
tem
ents
The
prep
arat
ion
of fi
nanc
ial s
tate
men
ts in
con
form
ity w
ith g
ener
ally
acc
epte
d ac
coun
ting
prin
cipl
esre
quire
s m
anag
emen
t to
mak
e es
timat
es a
nd a
ssum
ptio
ns th
at a
ffect
the
repo
rted
amou
nts
of a
sset
s,de
ferre
d ou
tflow
s of
reso
urce
s, li
abilit
ies,
and
def
erre
d in
flow
s of
reso
urce
s an
d di
sclo
sure
of c
ontin
gent
asse
ts a
nd li
abilit
ies
at th
e da
te o
f the
fina
ncia
l sta
tem
ents
and
the
repo
rted
amou
nts
of re
venu
es a
ndex
pend
iture
s/ex
pens
es d
urin
g th
e re
porti
ng p
erio
d. A
ctua
l res
ults
cou
ld d
iffer
from
thos
e es
timat
es.
D.
ASS
ETS,
DEF
ERR
ED O
UTF
LOW
SO
F R
ESO
UR
CES
, LIA
BIL
ITIE
S, D
EFER
RED
INFL
OW
SO
F R
ESO
UR
CES
, AN
DN
ET P
OSI
TIO
NO
R E
QU
ITY
1.D
epos
its a
nd In
vest
men
ts
For p
urpo
ses
of th
e st
atem
ent o
f cas
h flo
ws,
the
villa
ge c
onsi
ders
all
high
ly li
quid
inve
stm
ents
with
an
initi
al m
atur
ity o
f thr
ee m
onth
s or
less
whe
n ac
quire
d to
be
cash
equ
ival
ents
.
Inve
stm
ent o
f vill
age
fund
s is
rest
ricte
d by
Wis
cons
in s
tate
sta
tute
s. A
vaila
ble
inve
stm
ents
are
lim
ited
to:
a.
Tim
e de
posi
ts in
any
cre
dit u
nion
, ban
k, s
avin
gs b
ank
or tr
ust c
ompa
ny.
b.
Bond
s or
sec
uriti
es o
f any
cou
nty,
city
, dra
inag
e di
stric
t, te
chni
cal c
olle
ge d
istri
ct, v
illage
, tow
n,or
sch
ool d
istri
ct o
f the
sta
te. A
lso,
bon
ds is
sued
by
a lo
cal e
xpos
ition
dis
trict
, a lo
cal
prof
essi
onal
bas
ebal
l par
k di
stric
t, a
loca
l pro
fess
iona
l foo
tbal
l sta
dium
dis
trict
, a lo
cal c
ultu
ral
arts
dis
trict
, the
Uni
vers
ity o
f Wis
cons
in H
ospi
tals
and
Clin
ics
Auth
ority
, or t
he W
isco
nsin
Aero
spac
e Au
thor
ity.
c.
Bond
s or
sec
uriti
es is
sued
or g
uara
ntee
d by
the
fede
ral g
over
nmen
t.
d.
The
loca
l gov
ernm
ent i
nves
tmen
t poo
l.
e.
Any
secu
rity
mat
urin
g in
sev
en y
ears
or l
ess
and
havi
ng th
e hi
ghes
t or s
econ
d hi
ghes
t rat
ing
cate
gory
of a
nat
iona
lly re
cogn
ized
ratin
g ag
ency
.
f. Se
curit
ies
of a
n op
en-e
nd m
anag
emen
t inv
estm
ent c
ompa
ny o
r inv
estm
ent t
rust
, sub
ject
tova
rious
con
ditio
ns a
nd in
vest
men
t opt
ions
.
g.
Rep
urch
ase
agre
emen
ts w
ith p
ublic
dep
osito
ries,
with
cer
tain
con
ditio
ns.
22DraftTh
and
ser
nded
. Ope
ratin
ged
. Ope
ratin
gen
ses,
and
dep
reci
nses
, and
dep
repo
rted
as n
onop
erat
inor
ted
as n
onop
e
n co
nfor
mity
with
gen
eral
ly a
ccep
tty
with
gen
eral
ly a
ccep
tes
and
ass
umpt
ions
that
affe
ct th
ess
umpt
ions
that
affe
ct t
ities
, and
def
erre
d in
flow
s of
reso
defe
rred
inflo
ws
of re
sof t
he fi
nanc
ial s
tate
men
ts a
nd th
e nc
ial s
tate
men
ts a
nd th
eth
e re
porti
ng p
erio
d. A
ctua
l res
ults
he re
porti
ng p
erio
d. A
ctua
l res
ults
OOU
TFLO
WS
UTF
OF D R RF
ESO
UR
CES
ESO
UR
CES
, L, LIA
BI
ORR
EERR
QU
ITY
QU
Dve
stm
ents
vest
me ca
sh fl
ows,
cash
flow
s Dss
whe
ss w
he
A-24
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
D.
ASS
ETS,
DEF
ERR
ED O
UTF
LOW
SO
F R
ESO
UR
CES
, LIA
BIL
ITIE
S, D
EFER
RED
INFL
OW
SO
F R
ESO
UR
CES
, AN
DN
ET P
OSI
TIO
NO
R E
QU
ITY
(con
t.)
1.D
epos
its a
nd In
vest
men
ts (c
ont.)
The
villa
geha
s ad
opte
d an
inve
stm
ent p
olic
y. T
hat p
olic
y fo
llow
s th
e st
ate
stat
ute
for a
llow
able
inve
stm
ents
.As
prac
ticab
le, i
nves
tmen
t am
ount
s ar
e lim
ited
to th
e m
axim
um o
f sta
te a
nd F
DIC
insu
ranc
e lim
its fo
r eac
h in
stitu
tion
unle
ss c
olla
tera
lized
.
No
polic
y ex
ists
for t
he fo
llow
ing
risks
:
Cre
dit r
isk
Inte
rest
rate
risk
Con
cent
ratio
n of
cre
dit r
isk
Inve
stm
ents
are
sta
ted
at fa
ir va
lue,
whi
ch is
the
amou
nt a
t whi
ch a
n in
vest
men
t cou
ld b
e ex
chan
ged
in a
curre
nt tr
ansa
ctio
n be
twee
n w
illing
par
ties.
Fai
r val
ues
are
base
d on
met
hods
and
inpu
ts a
s ou
tline
d in
Not
e III
. A. N
o in
vest
men
ts a
re re
porte
d at
am
ortiz
ed c
ost.
Adju
stm
ents
nec
essa
ry to
reco
rd in
vest
men
tsat
fair
valu
e ar
e re
cord
ed in
the
oper
atin
g st
atem
ent a
s in
crea
ses
or d
ecre
ases
in in
vest
men
t inc
ome.
Inve
stm
ent i
ncom
e on
com
min
gled
inve
stm
ents
of m
unic
ipal
acc
ount
ing
fund
s is
allo
cate
d ba
sed
onav
erag
e ba
lanc
es. T
he d
iffer
ence
bet
wee
n th
e ba
nk s
tate
men
t bal
ance
and
car
ryin
g va
lue
is d
ue to
outs
tand
ing
chec
ks a
nd/o
r dep
osits
in tr
ansi
t.
The
Wis
cons
in L
ocal
Gov
ernm
ent I
nves
tmen
t Poo
l (LG
IP) i
s pa
rt of
the
Stat
e In
vest
men
t Fun
d (S
IF),
and
is m
anag
ed b
y th
e St
ate
of W
isco
nsin
Inve
stm
ent B
oard
. The
SIF
is n
ot re
gist
ered
with
the
Secu
ritie
s an
d Ex
chan
ge C
omm
issi
on, b
ut o
pera
tes
unde
r the
sta
tuto
ry a
utho
rity
of W
isco
nsin
Cha
pter
25. T
he S
IF re
ports
the
fair
valu
e of
its
unde
rlyin
g as
sets
ann
ually
. Par
ticip
ants
in th
e LG
IP h
ave
the
right
to w
ithdr
aw th
eir f
unds
in to
tal o
n on
e da
y's
notic
e. A
t Dec
embe
r 31,
201
9, th
e fa
ir va
lue
of th
evi
llage
's s
hare
of t
he L
GIP
's a
sset
s w
as s
ubst
antia
lly e
qual
to th
e am
ount
as
repo
rted
in th
ese
stat
emen
ts.
See
Not
e III
. A. f
or fu
rther
info
rmat
ion.
2.R
ecei
vabl
es
Prop
erty
taxe
s ar
e le
vied
in D
ecem
ber o
n th
e as
sess
ed v
alue
as
of th
e pr
ior J
anua
ry 1
. In
addi
tion
topr
oper
ty ta
xes
for t
he v
illage
, tax
es a
re c
olle
cted
for a
nd re
mitt
ed to
the
stat
e an
d co
unty
gov
ernm
ents
as w
ell a
s th
e lo
cal s
choo
l dis
trict
and
tech
nica
l col
lege
dis
trict
. Tax
es fo
r all
stat
e an
d lo
cal
gove
rnm
enta
l uni
ts b
illed
in th
e cu
rrent
yea
r for
the
succ
eedi
ng y
ear a
re re
flect
ed a
s re
ceiv
able
s an
ddu
e to
oth
er ta
uni
ts o
n th
e ac
com
pany
ing
stat
emen
t of f
iduc
iary
net
pos
ition
.
23Drafte
m
ch is
the
amou
nt a
t whi
ch a
n in
ves
mou
nt a
t whi
ch a
n in
ves
rties
. Fai
r val
ues
are
base
d on
me
ir va
lues
are
bas
ed o
n m
orte
d at
am
ortiz
ed c
ost.
Adju
stm
enm
ortiz
ed c
ost.
Adju
stm
enop
erat
ing
stat
emen
t as
incr
ease
s o
stat
emen
t as
incr
ease
s ng
led
inve
stm
ents
of m
unic
ipal
acc
gled
inve
stm
ents
of m
unic
ipal
acc
eren
ce b
etw
een
the
bank
sta
tem
enre
nce
betw
een
the
bank
or
dep
osits
in tr
ansi
t.r d
epos
its in
tran
sit.
vern
men
t Inv
estm
ent P
ool (
Lve
rnm
ent I
nves
tmen
t Pte
of W
te o
f Wis
cons
in In
vest
mnv
esm
mis
sion
, but
ope
rm
mis
sion
, but
ope
e of
its
unde
re
of it
s un
der Don oneon one w
asw
as
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
D.
ASS
ETS,
DEF
ERR
ED O
UTF
LOW
SO
F R
ESO
UR
CES
, LIA
BIL
ITIE
S, D
EFER
RED
INFL
OW
SO
F R
ESO
UR
CES
, AN
DN
ET P
OSI
TIO
NO
R E
QU
ITY
(con
t.)
2.R
ecei
vabl
es (c
ont.)
Prop
erty
tax
cale
ndar
- 20
19 ta
x ro
ll:
Lien
dat
e an
d le
vy d
ate
Dec
embe
r 201
9Ta
x bi
lls m
aile
dD
ecem
ber 2
019
Paym
ent i
n fu
ll, o
rJa
nuar
y 31
, 202
0Fi
rst i
nsta
llmen
t due
Janu
ary
31, 2
020
Seco
nd in
stal
lmen
t due
July
31,
202
0Pe
rson
al p
rope
rty ta
xes
in fu
llJa
nuar
y 31
, 202
0Ta
x sa
le -
2019
del
inqu
ent r
eal e
stat
e ta
xes
Oct
ober
202
2
Del
inqu
ent r
eal e
stat
e ta
xes
as o
f Jul
y 31
are
pai
d in
full
by th
e co
unty
, whi
ch a
ssum
es th
e co
llect
ion
ther
eof.
No
prov
isio
n fo
r unc
olle
ctib
le a
ccou
nts
rece
ivab
le h
as b
een
mad
e fo
r the
wat
er a
nd s
ewer
utilit
ies
beca
use
they
hav
e th
e rig
ht b
y la
w to
pla
ce s
ubst
antia
lly a
ll de
linqu
ent b
ills o
n th
e ta
x ro
ll, a
ndot
her d
elin
quen
t bill
s ar
e ge
nera
lly n
ot s
igni
fican
t.
Dur
ing
the
cour
se o
f ope
ratio
ns, t
rans
actio
ns o
ccur
bet
wee
n in
divi
dual
fund
s th
at m
ay re
sult
in a
mou
nts
owed
bet
wee
n fu
nds.
Sho
rt-te
rm in
terfu
nd lo
ans
are
repo
rted
as "d
ue to
and
from
oth
er fu
nds.
" Lon
g-te
rm in
terfu
nd lo
ans
(non
curre
nt p
ortio
n) a
re re
porte
d as
"adv
ance
s fro
m a
nd to
oth
er fu
nds.
" Int
erfu
ndre
ceiv
able
s an
d pa
yabl
es b
etw
een
fund
s w
ithin
gov
ernm
enta
l act
iviti
es a
re e
limin
ated
in th
e st
atem
ent o
fne
t pos
ition
. Any
resi
dual
bal
ance
s ou
tsta
ndin
g be
twee
n th
e go
vern
men
tal a
ctiv
ities
and
bus
ines
s-ty
peac
tiviti
es a
re re
porte
d in
the
gove
rnm
enta
l-wid
e fin
anci
al s
tate
men
ts a
s in
tern
al b
alan
ces.
3.Pr
epai
d Ite
ms
Gov
ernm
enta
l fun
d in
vent
ory
item
s ar
e ch
arge
d to
exp
endi
ture
acc
ount
s w
hen
purc
hase
d. Y
ear-e
ndin
vent
ory
was
not
sig
nific
ant.
Prop
rieta
ry fu
nd in
vent
orie
s ar
e ge
nera
lly u
sed
for c
onst
ruct
ion
and/
or fo
rop
erat
ion
and
mai
nten
ance
wor
k. T
hey
are
not f
or re
sale
. T
hey
are
valu
ed a
t cos
t bas
ed o
n w
eigh
ted
aver
age,
and
cha
rged
to c
onst
ruct
ion
and/
or o
pera
tion
and
mai
nten
ance
exp
ense
whe
n us
ed.
Cer
tain
pay
men
ts to
ven
dors
refle
ct c
osts
app
licab
le to
futu
re a
ccou
ntin
g pe
riods
and
are
reco
rded
as
prep
aid
item
s in
bot
h go
vern
men
t-wid
e an
d fu
nd fi
nanc
ial s
tate
men
ts.
4.R
estr
icte
d A
sset
s
Man
dato
ry s
egre
gatio
ns o
f ass
ets
are
pres
ente
d as
rest
ricte
d as
sets
. Suc
h se
greg
atio
ns a
re re
quire
d by
bond
agr
eem
ents
and
oth
er e
xter
nal p
artie
s. C
urre
nt li
abilit
ies
paya
ble
from
thes
e re
stric
ted
asse
ts a
reso
cla
ssifi
ed. T
he e
xces
s of
rest
ricte
d as
sets
ove
r cur
rent
liab
ilitie
s pa
yabl
e fro
m re
stric
ted
asse
ts w
ill be
used
firs
t for
retir
emen
t of r
elat
ed lo
ng-te
rm d
ebt.
The
rem
aind
er, i
f gen
erat
ed fr
om e
arni
ngs,
is s
how
nas
rest
ricte
d ne
t pos
ition
.
24Draftr 2
019
20be
r 201
9be
r 201
9ua
ry 3
1, 2
020
ary
31, 2
020
anua
ry 3
1, 2
020
ary
31, 2
020
July
31,
202
0, 2
020
Janu
ary
31, 2
020
ry 3
1, 2
02s
Oct
ober
202
2to
ber 2
022
are
pai
d in
full
by th
e co
unty
, wh
n fu
ll by
the
coun
ty, w
hac
coun
ts re
ceiv
able
has
bee
n m
adre
ceiv
able
has
bee
n m
by la
w to
pla
ce s
ubst
antia
lly a
ll de
plac
e su
bsta
ntia
lly a
ll d
y no
t sig
nific
ant.
nific
an
ons,
tran
sact
ions
occ
ur b
etw
een
ons,
tran
sact
ions
occ
ur b
ort-t
erm
inte
rfund
loan
s ar
e re
port
ort-t
erm
inte
rfund
loan
s ar
e re
pon
curre
nt p
ortio
n) a
re re
porte
d as
oncu
rrent
por
tion)
are
repo
rted
aes
bet
wee
n fu
nds
with
in g
over
es b
etw
een
fund
s w
ithin
Dba
lanc
es o
utst
andi
ng b
etba
lanc
es o
utst
andi
nggo
vern
men
tal-w
ide
gove
rnm
enta
l-wid
e
A-25
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
D.
ASS
ETS,
DEF
ERR
ED O
UTF
LOW
SO
F R
ESO
UR
CES
, LIA
BIL
ITIE
S, D
EFER
RED
INFL
OW
SO
F R
ESO
UR
CES
, AN
DN
ET P
OSI
TIO
NO
R E
QU
ITY
(con
t.)
5.C
apita
l Ass
ets
Gov
ernm
ent-W
ide
Stat
emen
ts
Cap
ital a
sset
s, w
hich
incl
ude
prop
erty
, pla
nt a
nd e
quip
men
t, ar
e re
porte
d in
the
gove
rnm
ent-w
ide
finan
cial
sta
tem
ents
. Cap
ital a
sset
s ar
e de
fined
by
the
gove
rnm
ent a
s as
sets
with
an
initi
al c
ost o
f mor
eth
an $
5,00
0 fo
r gen
eral
cap
ital a
sset
s an
d $5
,000
for i
nfra
stru
ctur
e as
sets
, and
an
estim
ated
use
ful l
ifein
exc
ess
of o
neye
ar. A
ll ca
pita
l ass
ets
are
valu
ed a
t his
toric
al c
ost,
or e
stim
ated
his
toric
al c
ost i
f act
ual
amou
nts
are
unav
aila
ble.
Don
ated
cap
ital a
sset
s ar
e re
cord
ed a
t the
ir es
timat
ed a
cqui
sitio
n va
lue
at th
eda
te o
f don
atio
n.
Addi
tions
to a
nd re
plac
emen
ts o
f cap
ital a
sset
s of
bus
ines
s-ty
pe a
ctiv
ities
are
reco
rded
at o
rigin
al c
ost,
whi
ch in
clud
es m
ater
ial,
labo
r, ov
erhe
ad, a
nd a
n al
low
ance
for t
he c
ost o
f fun
ds u
sed
durin
g co
nstru
ctio
nw
hen
sign
ifica
nt. F
or ta
x-ex
empt
deb
t, th
e am
ount
of i
nter
est c
apita
lized
equ
als
the
inte
rest
exp
ense
incu
rred
durin
g co
nstru
ctio
n ne
tted
agai
nst a
ny in
tere
st re
venu
e fro
m te
mpo
rary
inve
stm
ent o
f bor
row
edfu
nd p
roce
eds.
No
inte
rest
was
cap
italiz
ed d
urin
g th
e cu
rrent
yea
r. Th
e co
st o
f ren
ewal
s an
d be
tterm
ents
rela
ting
to re
tirem
ent u
nits
is a
dded
to p
lant
acc
ount
s. T
he c
ost o
f pro
perty
repl
aced
, ret
ired
or o
ther
wis
edi
spos
ed o
f, is
ded
ucte
d fro
m p
lant
acc
ount
s an
d, g
ener
ally
, tog
ethe
r with
rem
oval
cos
ts le
ss s
alva
ge, i
sch
arge
d to
acc
umul
ated
dep
reci
atio
n.
Dep
reci
atio
n of
all
exha
ustib
le c
apita
l ass
ets
is re
cord
ed a
s an
allo
cate
d ex
pens
e in
the
stat
emen
t of
activ
ities
, with
acc
umul
ated
dep
reci
atio
n re
flect
ed in
the
stat
emen
t of n
et p
ositi
on. D
epre
ciat
ion
ispr
ovid
ed o
ver t
he a
sset
s' e
stim
ated
use
ful l
ives
usi
ng th
e st
raig
ht-li
ne m
etho
d. T
he ra
nge
of e
stim
ated
usef
ul li
ves
by ty
pe o
f ass
et is
as
follo
ws:
Build
ings
25-4
0Ye
ars
Land
Impr
ovem
ents
20-3
0Ye
ars
Mac
hine
ry a
nd E
quip
men
t5-
20Ye
ars
Util
ity S
yste
m4-
90Ye
ars
Infra
stru
ctur
e20
-50
Year
s
Fund
Fin
anci
al S
tate
men
ts
In th
e fu
nd fi
nanc
ial s
tate
men
ts, c
apita
l ass
ets
used
in g
over
nmen
tal f
und
oper
atio
ns a
re a
ccou
nted
for
as c
apita
l out
lay
expe
nditu
res
of th
e go
vern
men
tal f
und
upon
acq
uisi
tion.
Cap
ital a
sset
s us
ed in
prop
rieta
ry fu
nd o
pera
tions
are
acc
ount
ed fo
r the
sam
e w
ay a
s in
the
gove
rnm
ent-w
ide
stat
emen
ts.
25Draftre
repo
rtere
prn
men
t as
asse
rnm
ent a
s as
astru
ctur
e as
sets
, ast
ruct
ure
asse
hist
oric
al c
ost,
or e
stim
ate
rical
cos
t, or
est
ie
reco
rded
at t
heir
estim
ated
aed
at t
heir
estim
ated
a
sets
of b
usin
ess-
type
act
iviti
es a
reus
ines
s-ty
pe a
ctiv
ities
an
d an
allo
wan
ce fo
r the
cos
t of f
owan
ce fo
r the
cos
t of
the
amou
nt o
f int
eres
t cap
italiz
edun
t of i
nter
est c
apita
lize
agai
nst a
ny in
tere
st re
venu
e fro
m
ny in
tere
st re
venu
e fro
m
apita
lized
dur
ing
the
curre
nt y
ear.
durin
g th
e cu
rrent
yea
rdd
ed to
pla
nt a
ccou
nts.
The
cos
t ode
d to
pla
nt a
ccou
nts.
The
cos
t om
pla
nt a
ccou
nts
and,
gen
eral
ly, t
om
pla
nt a
ccou
nts
and,
gep
reci
atio
n.ep
reci
a
D
ustib
le c
apita
l ass
ets
is re
cord
ustib
le c
apita
l ass
ets
is
ddde
prec
iatio
nde
pre
D refle
cted
iec
tm
ated
use
ful l
ives
um
ated
use
ful l
ives
s fo
llow
s:s
follo
ws:
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
D.
ASS
ETS,
DEF
ERR
ED O
UTF
LOW
SO
F R
ESO
UR
CES
, LIA
BIL
ITIE
S, D
EFER
RED
INFL
OW
SO
F R
ESO
UR
CES
, AN
DN
ET P
OSI
TIO
NO
R E
QU
ITY
(con
t.)
6. D
efer
red
Out
flow
s of
Res
ourc
es
A de
ferre
d ou
tflow
of r
esou
rces
repr
esen
ts a
con
sum
ptio
n of
net
pos
ition
/fund
bal
ance
that
app
lies
to a
futu
re p
erio
d an
d w
ill no
t be
reco
gniz
ed a
s an
out
flow
of r
esou
rces
(exp
ense
/exp
endi
ture
) unt
il th
atfu
ture
tim
e.
A de
ferre
d ch
arge
on
refu
ndin
g ar
ises
from
the
adva
nce
refu
ndin
g of
deb
t. Th
e di
ffere
nce
betw
een
the
cost
of t
he s
ecur
ities
pla
ced
in tr
ust f
or fu
ture
pay
men
ts o
f the
refu
nded
deb
t and
the
net c
arry
ing
valu
eof
that
deb
t is
defe
rred
and
amor
tized
as
a co
mpo
nent
of i
nter
est e
xpen
se o
ver t
he s
horte
r of t
he te
rm o
fth
e re
fund
ing
issu
e or
the
orig
inal
term
of t
he re
fund
ed d
ebt.
The
unam
ortiz
ed a
mou
nt is
repo
rted
as a
defe
rred
outfl
ow o
f res
ourc
es in
the
gove
rnm
ent-w
ide
and
prop
rieta
ry fu
nd fi
nanc
ial s
tate
men
ts.
7.C
ompe
nsat
ed A
bsen
ces
Und
er te
rms
of e
mpl
oym
ent,
empl
oyee
s ar
e gr
ante
d si
ck le
ave
and
vaca
tions
in v
aryi
ng a
mou
nts.
Onl
ybe
nefit
s co
nsid
ered
to b
e ve
sted
are
dis
clos
ed in
thes
e st
atem
ents
.
All v
este
d va
catio
n an
d si
ck le
ave
pay
is a
ccru
ed w
hen
incu
rred
in th
e go
vern
men
t-wid
e a
nd p
ropr
ieta
ryfu
nd fi
nanc
ial s
tate
men
ts. A
liab
ility
for t
hese
am
ount
s is
repo
rted
in g
over
nmen
tal f
unds
onl
y if
they
have
mat
ured
, for
exa
mpl
e, a
s a
resu
lt of
em
ploy
ee re
sign
atio
ns a
nd re
tirem
ents
, and
are
pay
able
with
expe
ndab
le re
sour
ces.
Paym
ents
for v
acat
ion
and
sick
leav
e w
ill be
mad
e at
rate
s in
effe
ct w
hen
the
bene
fits
are
used
.Ac
cum
ulat
ed v
acat
ion
and
sick
leav
e lia
bilit
ies
at D
ecem
ber 3
1, 2
019,
are
det
erm
ined
on
the
basi
s of
curre
nt s
alar
y ra
tes
and
incl
ude
sala
ry re
late
d pa
ymen
ts.
8.Lo
ng-T
erm
Obl
igat
ions
All l
ong-
term
obl
igat
ions
to b
e re
paid
from
gov
ernm
enta
l and
bus
ines
s-ty
pe re
sour
ces
are
repo
rted
aslia
bilit
ies
in th
e go
vern
men
t-wid
e st
atem
ents
. The
long
-term
obl
igat
ions
con
sist
prim
arily
of n
otes
and
bond
s pa
yabl
e an
d ac
crue
d co
mpe
nsat
ed a
bsen
ces.
Long
-term
obl
igat
ions
for g
over
nmen
tal f
unds
are
not
repo
rted
as li
abilit
ies
in th
e fu
nd fi
nanc
ial
stat
emen
ts. T
he fa
ce v
alue
of d
ebts
(plu
s an
y pr
emiu
ms)
are
repo
rted
as o
ther
fina
ncin
g so
urce
s an
dpa
ymen
ts o
f prin
cipa
l and
inte
rest
are
repo
rted
as e
xpen
ditu
res.
The
acc
ount
ing
in p
ropr
ieta
ry fu
nds
isth
e sa
me
as it
is in
the
gove
rnm
ent-w
ide
stat
emen
ts.
For t
he g
over
nmen
t-wid
e st
atem
ents
and
pro
prie
tary
fund
sta
tem
ents
, bon
d pr
emiu
ms
and
disc
ount
s ar
eam
ortiz
ed o
ver t
he li
fe o
f the
issu
e us
ing
the
effe
ctiv
e in
tere
st m
etho
d. T
he b
alan
ce a
t yea
r end
is s
how
nas
an
incr
ease
or d
ecre
ase
in th
e lia
bilit
y se
ctio
n of
the
stat
emen
t of n
et p
ositi
on.
26Drafts
(e
refu
ndin
g of
deb
t. Th
fund
ing
of d
ebs
of th
e re
fund
ed d
ebt a
nth
e re
fund
ed d
ebnt
of i
nter
est e
xpen
se o
ver t
heer
est e
xpen
se o
ver t
hend
ed d
ebt.
The
unam
ortiz
ed a
mo
The
una
mor
tized
am
ont
-wid
e an
d pr
oprie
tary
fund
fina
ncnd
pro
prie
tary
fund
fina
n
yees
are
gra
nted
gr
ante
sick
leav
e an
d v
sick
leav
e an
d v
are
disc
lose
d in
thes
e st
atem
ents
osed
in th
ese
stat
emen
t
k le
ave
pay
is a
ccru
ed w
hen
incu
rk
leav
e pa
y is
acc
rued
whe
s. A
liab
ility
for t
hese
am
ount
s is
re. A
liab
ility
for t
hese
am
ount
s is
mpl
e, a
s a
resu
lt of
em
ploy
ee re
sm
ple,
as
a re
sult
of e
mpl
oyee
res
k le
ave
will
be m
ak
leav
e w
ill be
mea
ve li
abilit
ieea
ve li
abilit
i Dar
y re
laar
y re
l
A-26
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
D.
ASS
ETS,
DEF
ERR
ED O
UTF
LOW
SO
F R
ESO
UR
CES
, LIA
BIL
ITIE
S, D
EFER
RED
INFL
OW
SO
F R
ESO
UR
CES
, AN
DN
ET P
OSI
TIO
NO
R E
QU
ITY
(con
t.)
9.D
efer
red
Inflo
ws
of R
esou
rces
A de
ferre
d in
flow
of r
esou
rces
repr
esen
ts a
n ac
quis
ition
of n
et p
ositi
on/fu
nd b
alan
ce th
at a
pplie
s to
afu
ture
per
iod
and
ther
efor
e w
ill no
t be
reco
gniz
ed a
s an
inflo
w o
f res
ourc
es (r
even
ue) u
ntil
that
futu
retim
e.
10.
Equi
ty C
lass
ifica
tions
Gov
ernm
ent-W
ide
Stat
emen
ts
Equi
ty is
cla
ssifi
ed a
s ne
t pos
ition
and
dis
play
ed in
thre
e co
mpo
nent
s:
a. N
et in
vest
men
t in
capi
tal a
sset
s - C
onsi
sts
of c
apita
l ass
ets
incl
udin
g re
stric
ted
capi
tal a
sset
s,ne
t of a
ccum
ulat
ed d
epre
ciat
ion
and
redu
ced
by th
e ou
tsta
ndin
g ba
lanc
es (e
xclu
ding
uns
pent
debt
pro
ceed
s) o
f any
bon
ds, m
ortg
ages
, not
es, o
r oth
er b
orro
win
gs th
at a
re a
ttrib
utab
le to
the
acqu
isiti
on, c
onst
ruct
ion,
or i
mpr
ovem
ent o
f tho
se a
sset
s.
b. R
estri
cted
net
pos
ition
- C
onsi
sts
of n
et p
ositi
on w
ith c
onst
rain
ts p
lace
d on
thei
r use
eith
er b
y1)
ext
erna
l gro
ups
such
as
cred
itors
, gra
ntor
s, c
ontri
buto
rs, o
r law
s or
regu
latio
ns o
f oth
ergo
vern
men
ts o
r, 2)
law
thro
ugh
cons
titut
iona
l pro
visi
ons
or e
nabl
ing
legi
slat
ion.
c. U
nres
trict
ed n
et p
ositi
on -
All o
ther
net
pos
ition
s th
at d
o no
t mee
t the
def
initi
ons
of "r
estri
cted
"or
"net
inve
stm
ent i
n ca
pita
l ass
ets.
"
The
net p
ositi
on s
ectio
n in
clud
es a
n ad
just
men
t for
cap
ital a
sset
s ow
ned
by th
e bu
sine
ss-ty
pe a
ctiv
ities
colu
mn,
but
fina
nced
by
the
debt
of t
he g
over
nmen
tal a
ctiv
ities
col
umn.
The
am
ount
is a
redu
ctio
n of
"net
inve
stm
ent i
n ca
pita
l ass
ets"
, and
an
incr
ease
in "u
nres
trict
ed" n
et p
ositi
on, s
how
n on
ly in
the
tota
lco
lum
n. A
reco
ncilia
tion
of th
is a
djus
tmen
t is
as fo
llow
s:
Gov
ernm
enta
lAc
tiviti
esBu
sine
ss-ty
peAc
tiviti
esAd
just
men
tTo
tal
Net
inve
stm
ent i
n ca
pita
l ass
ets
$11
,635
,852
$18
,035
,371
$(2
,181
,869
)$
27,4
89,3
54U
nres
trict
ed (d
efic
it)(1
,480
,694
)2,
946,
289
2,18
1,86
93,
647,
464
Whe
n bo
th re
stric
ted
and
unre
stric
ted
reso
urce
s ar
e av
aila
ble
for u
se, i
t is
the
villa
ge's
pol
icy
to u
sere
stric
ted
reso
urce
s fir
st, t
hen
unre
stric
ted
reso
urce
s as
they
are
nee
ded.
27Draftre
so
yed
in th
ree
com
pone
nts:
ree
com
pone
nts:
ts -
Con
sist
s of
cap
ital a
sset
s in
cls
of c
apita
l ass
ets
inc
atio
n an
d re
duce
d by
the
outs
tand
d re
duce
d by
the
outs
tan
nds,
mor
tgag
es, n
otes
, or o
ther
btg
ages
, not
es, o
r oth
eron
, or i
mpr
ovem
ent o
f tho
se a
sset
ovem
ent o
f tho
se a
sset
ositi
on -
Con
sist
s of
net
pos
ition
wsi
tion
- Con
sist
s of
net
pos
oups
suc
h as
cre
dito
rs, g
rant
ors,
cup
s su
ch a
s cr
edito
rs, g
rant
ors
or, 2
) law
thro
ugh
cons
titut
iona
or, 2
) law
thro
ugh
cons
titut
iona D
ositi
on -
All o
ther
net
os
ition
- Al
l oth
er n
eca
pita
l ass
ets.
"ca
pita
l ass
ets.
"
adju
adju
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
D.
ASS
ETS,
DEF
ERR
ED O
UTF
LOW
SO
F R
ESO
UR
CES
, LIA
BIL
ITIE
S, D
EFER
RED
INFL
OW
SO
F R
ESO
UR
CES
, AN
DN
ET P
OSI
TIO
NO
R E
QU
ITY
(con
t.)
10.
Equi
ty C
lass
ifica
tions
(con
t.)
Fund
Sta
tem
ents
Gov
ernm
enta
l fun
d ba
lanc
es a
re d
ispl
ayed
as
follo
ws:
a. N
onsp
enda
ble
- Inc
lude
s fu
nd b
alan
ce a
mou
nts
that
can
not b
e sp
ent e
ither
bec
ause
they
are
not i
n sp
enda
ble
form
or b
ecau
se le
gal o
r con
tract
ual r
equi
rem
ents
requ
ire th
em to
be
mai
ntai
ned
inta
ct.
b. R
estri
cted
- C
onsi
sts
of fu
nd b
alan
ces
with
con
stra
ints
pla
ced
on th
eir u
se e
ither
by
1) e
xter
nal
grou
ps s
uch
as c
redi
tors
, gra
ntor
s, c
ontri
buto
rs, o
r law
s or
regu
latio
ns o
f oth
er g
over
nmen
ts o
r2)
law
thro
ugh
cons
titut
iona
l pro
visi
ons
or e
nabl
ing
legi
slat
ion.
c. C
omm
itted
- In
clud
es fu
nd b
alan
ce a
mou
nts
that
are
con
stra
ined
for s
peci
fic p
urpo
ses
that
are
inte
rnal
ly im
pose
d by
the
gove
rnm
ent t
hrou
gh fo
rmal
act
ion
of th
e hi
ghes
t lev
el o
f dec
isio
nm
akin
g au
thor
ity. F
und
bala
nce
amou
nts
are
com
mitt
ed th
roug
h a
form
al a
ctio
n (r
esol
utio
n) o
fth
e Vi
llage
Boar
d. T
his
form
al a
ctio
n m
ust o
ccur
prio
r to
the
end
of th
e re
porti
ng p
erio
d, b
ut th
eam
ount
of t
he c
omm
itmen
t, w
hich
will
be s
ubje
ct to
the
cons
train
ts, m
ay b
e de
term
ined
in th
esu
bseq
uent
per
iod.
Any
cha
nges
to th
e co
nstra
ints
impo
sed
requ
ire th
e sa
me
form
al a
ctio
n of
the
Villa
geBo
ard
that
orig
inal
ly c
reat
ed th
e co
mm
itmen
t.
d. A
ssig
ned
- Inc
lude
s sp
enda
ble
fund
bal
ance
am
ount
s th
at a
re in
tend
ed to
be
used
for s
peci
ficpu
rpos
es th
at d
o no
t mee
t the
crit
eria
to b
e cl
assi
fied
as re
stric
ted
or c
omm
itted
. The
Boa
rdm
ay ta
ke o
ffici
al a
ctio
n to
ass
ign
amou
nts.
Ass
ignm
ents
may
take
pla
ce a
fter t
he e
nd o
f the
repo
rting
per
iod.
e. U
nass
igne
d - I
nclu
des
resi
dual
pos
itive
fund
bal
ance
with
in th
e ge
nera
l fun
d w
hich
has
not
been
cla
ssifi
ed w
ithin
the
othe
r abo
ve m
entio
ned
cate
gorie
s. U
nass
igne
d fu
nd b
alan
ce m
ayal
so in
clud
e ne
gativ
e ba
lanc
es fo
r any
gov
ernm
enta
l fun
d if
expe
nditu
res
exce
ed a
mou
nts
rest
ricte
d, c
omm
itted
, or a
ssig
ned
for t
hose
pur
pose
s.
Prop
rieta
ry fu
nd e
quity
is c
lass
ified
the
sam
e as
in th
e go
vern
men
t-wid
e st
atem
ents
.
The
villa
ge c
onsi
ders
rest
ricte
d am
ount
s to
be
spen
t firs
t whe
n bo
th re
stric
ted
and
unre
stric
ted
fund
bala
nce
is a
vaila
ble
unle
ss th
ere
are
lega
l doc
umen
ts o
r con
tract
s th
at p
rohi
bit d
oing
this
, suc
h as
ingr
ant a
gree
men
ts re
quiri
ng d
olla
r for
dol
lar s
pend
ing.
Add
ition
ally
, the
villa
ge w
ould
firs
t use
com
mitt
ed,
then
ass
igne
d an
d la
stly
una
ssig
ned
amou
nts
of u
nres
trict
ed fu
nd b
alan
ce w
hen
expe
nditu
res
are
mad
e.
The
villa
ge h
as a
form
al fu
nd b
alan
ce p
olic
y. T
hat p
olic
y is
to m
aint
ain
unre
stric
ted
gene
ral f
und
bala
nce
betw
een
the
rang
e of
20%
to 3
0% o
f the
gen
eral
fund
ann
ual o
pera
ting
budg
et. T
he b
alan
ce a
t yea
r end
was
$1,
697,
283,
or 3
8.5%
, and
is in
clud
ed in
ass
igne
d an
d un
assi
gned
gen
eral
fund
bal
ance
.
See
Not
e III
. G. f
or fu
rther
info
rmat
ion.
28
that
can
not b
e sp
eha
t can
not b
ent
ract
ual r
equi
rem
ents
rect
ual r
equi
rem
en
s w
ith c
onst
rain
ts p
lace
d on
thei
r uns
train
ts p
lace
d on
thei
r uco
ntrib
utor
s, o
r law
s or
regu
latio
nto
rs, o
r law
s or
regu
lvi
sion
s or
ena
blin
g le
gisl
atio
n.en
ablin
g le
gisl
atio
n.
bala
nce
amou
nts
that
are
con
stra
iam
ount
s th
at a
re c
onst
ra g
over
nmen
t thr
ough
form
al a
ctio
men
t thr
ough
form
al a
ctd
bala
nce
amou
nts
are
com
mitt
edam
ount
s ar
e co
mm
itted
This
form
al a
ctio
n m
ust o
ccur
prio
rhi
s fo
rmal
act
ion
mus
t occ
ur p
rior
mm
itmen
t, w
hich
will
be s
ubje
ct to
mm
itmen
t, w
hich
will
be s
urio
d. A
ny c
hang
es to
the
cons
train
riod.
Any
cha
nges
to th
e co
nstr
oard
oard
that
orig
inal
ly c
reat
ed th
e co
that
orig
inal
ly c
reat
ed th
e c
es s
pend
able
fund
bal
aes
spe
ndab
le fu
nd b
t mee
t the
crit
eria
t m
eet t
he c
riter
ia D to
ass
ign
am to
ass
ign
am
A-27
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE I
- SU
MM
AR
Y O
F SI
GN
IFIC
AN
T A
CC
OU
NTI
NG
PO
LIC
IES
(con
t.)
D.
ASS
ETS,
DEF
ERR
ED O
UTF
LOW
SO
F R
ESO
UR
CES
, LIA
BIL
ITIE
S, D
EFER
RED
INFL
OW
SO
F R
ESO
UR
CES
, AN
DN
ET P
OSI
TIO
NO
R E
QU
ITY
(con
t.)
11.
Pens
ion
For p
urpo
ses
of m
easu
ring
the
net p
ensi
on a
sset
(lia
bilit
y), d
efer
red
outfl
ows
of re
sour
ces
and
defe
rred
inflo
ws
of re
sour
ces
rela
ted
to p
ensi
ons,
and
pen
sion
exp
ense
, inf
orm
atio
n ab
out t
he fi
duci
ary
net
posi
tion
of th
e W
isco
nsin
Ret
irem
ent S
yste
m (W
RS)
and
add
ition
s to
/ded
uctio
ns fr
om W
RS'
fidu
ciar
y ne
tpo
sitio
n ha
ve b
een
dete
rmin
ed o
n th
e sa
me
basi
s as
they
are
repo
rted
by W
RS.
For
this
pur
pose
,be
nefit
pay
men
ts (i
nclu
ding
refu
nds
of e
mpl
oyee
con
tribu
tions
) are
reco
gniz
ed w
hen
due
and
paya
ble
inac
cord
ance
with
the
bene
fit te
rms.
Inve
stm
ents
are
repo
rted
at fa
ir va
lue.
12.
Bas
is fo
r Exi
stin
g R
ates
Wat
er U
tility
Cur
rent
wat
er ra
tes
wer
e ap
prov
ed b
y th
e Pu
blic
Ser
vice
Com
mis
sion
of W
isco
nsin
effe
ctiv
e Ju
ly 1
,20
19. C
urre
nt ra
tes
are
desi
gned
to p
rovi
de a
n 3%
retu
rn o
n ra
te b
ase.
Sew
er U
tility
Cur
rent
sew
er ra
tes
wer
e ap
prov
ed b
y th
e ut
ility
com
mis
sion
and
bec
ame
effe
ctiv
e on
Jan
uary
1, 2
018.
NO
TE II
- ST
EWA
RD
SHIP
, CO
MPL
IAN
CE,
AN
D A
CC
OU
NTA
BIL
ITY
A.
EXC
ESS
EXPE
ND
ITU
RES
AN
D O
THER
FIN
AN
CIN
G U
SES
OVE
R A
PPR
OPR
IATI
ON
S
Fund
sBu
dget
edEx
pend
iture
sAc
tual
Expe
nditu
res
Exce
ssEx
pend
iture
sO
ver B
udge
t
Tax
Incr
emen
tal D
istri
ct N
o. 5
$1,
323,
716
$1,
549,
664
$22
5,94
8Ta
x In
crem
enta
l Dis
trict
No.
722
1,46
170
2,50
048
1,03
9Pa
rk D
evel
opm
ent F
ees
-80
,019
80,0
19C
apita
l pro
ject
s39
7,34
01,
558,
545
1,16
1,20
5Ta
x In
crem
enta
l Dis
trict
No.
61,
500
117,
025
115,
525
The
villa
ge c
ontro
ls e
xpen
ditu
res
at th
e de
partm
ent l
evel
. Som
e in
divi
dual
obj
ects
exp
erie
nced
expe
nditu
res
whi
ch e
xcee
ded
appr
opria
tions
. The
det
ail o
f tho
se it
ems
can
be fo
und
in th
e vi
llage
's y
ear-
end
budg
et to
act
ual r
epor
t.
29
for
ons
to/d
ns
e re
porte
d by
e re
porte
d b
ions
) are
reco
gniz
ons)
are
reco
orte
d at
fair
valu
e.d
at fa
ir va
lue.
the
Publ
ic S
ervi
ce C
omm
issi
on o
lic S
ervi
ce C
omm
issi
on
o pr
ovid
e an
3%
retu
rn o
n ra
te b
asan
3%
retu
rn o
n ra
te b
as
re a
ppro
ved
by th
e ut
ility
com
mis
se
appr
oved
by
the
utilit
y co
mm
is DDDDD
CO
MPL
IAN
CE,
AN
DC
OM
PLIA
NC
E, A
N DDDDDDDDDD
OOTH
ERTH
ERFF
RR
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
- ST
EWA
RD
SHIP
, CO
MPL
IAN
CE,
AN
D A
CC
OU
NTA
BIL
ITY
(con
t.)
B.
DEF
ICIT
BA
LAN
CES
Gen
eral
ly a
ccep
ted
acco
untin
g pr
inci
ples
requ
ire d
iscl
osur
e of
indi
vidu
al fu
nds
that
hav
e de
ficit
bala
nces
at y
ear e
nd.
As o
f Dec
embe
r 31,
201
9, th
e fo
llow
ing
indi
vidu
al fu
nds
held
a d
efic
it ba
lanc
e:
Fund
Amou
ntR
easo
n
Dev
elop
er D
epos
its$
6,71
9U
ncol
lect
ible
acc
ount
sTI
F D
istri
ct N
o. 6
613,
241
Proj
ect c
osts
and
deb
t pay
men
tsex
ceed
incr
emen
ts c
olle
cted
TIF
Dis
trict
No.
10
2,01
7N
o in
crem
ent g
ener
ated
to d
ate
TIF
dist
rict d
efic
its a
re a
ntic
ipat
ed to
be
fund
ed w
ith fu
ture
incr
emen
tal t
axes
levi
ed o
ver t
he li
fe o
f the
dist
ricts
, whi
ch is
27
year
s fo
r the
dis
trict
s cr
eate
d be
fore
Oct
ober
1, 1
995,
and
23
year
s fo
r dis
trict
scr
eate
d th
erea
fter t
hrou
gh S
epte
mbe
r 30,
200
4. B
egin
ning
Oct
ober
1, 2
004,
the
life
of n
ew d
istri
cts
varie
s by
type
of d
istri
ct (2
0-27
yea
rs) a
nd m
ay b
e ex
tend
ed in
som
e ca
ses.
Oth
er fu
nd d
efic
its a
rean
ticip
ated
to b
e fu
nded
with
futu
re c
ontri
butio
ns, g
ener
al ta
x re
venu
es, o
r lon
g-te
rm b
orro
win
g.
C.
L IM
ITA
TIO
NS
ON
TH
EVI
LLA
GE'
S TA
X LE
VY
Wis
cons
in la
w li
mits
the
villa
ge's
futu
re ta
x le
vies
. Gen
eral
ly th
e vi
llage
is li
mite
d to
its
prio
r tax
levy
dolla
r am
ount
(exc
ludi
ng T
IF D
istri
cts)
, inc
reas
ed b
y th
e gr
eate
r of t
he p
erce
ntag
e ch
ange
in th
e vi
llage
'seq
ualiz
ed v
alue
due
to n
ew c
onst
ruct
ion
or z
ero
perc
ent.
Cha
nges
in d
ebt s
ervi
ce fr
om o
ne y
ear t
o th
ene
xt a
re g
ener
ally
exe
mpt
from
this
lim
it w
ith c
erta
in e
xcep
tions
. The
vill
age
is re
quire
d to
redu
ce it
sal
low
able
levy
by
the
estim
ated
am
ount
of f
ee re
venu
e it
colle
cts
for c
erta
in s
ervi
ces,
if th
ose
serv
ices
wer
e fu
nded
in 2
013
by th
e pr
oper
ty ta
x le
vy. L
evie
s ca
n be
incr
ease
d ab
ove
the
allo
wab
le li
mits
if th
eam
ount
is a
ppro
ved
by re
fere
ndum
.
30Drafttttttttt,7
19719
Unc
olle
ctib
ncol
le13
,24124
1Pr
ojec
t cos
ts a
Proj
ect c
oex
ceed
incr
emex
ceed
inc
2,01
717N
o in
crem
ent g
enN
o in
crem
ent g
en
ed w
ith fu
ture
incr
emen
tal t
axes
lfu
ture
incr
emen
tal t
axcr
eate
d be
fore
Oct
ober
1, 1
995,
be
fore
Oct
ober
1, 1
995,
30
, 200
4. B
egin
ning
Oct
ober
1, 2
0Be
ginn
ing
Oct
ober
1,
s) a
nd m
ay b
e ex
tend
ed in
som
e c
ay b
e ex
tend
ed in
som
e c
e co
ntrib
utio
ns, g
ener
al ta
x re
ven
utio
ns, g
ener
al ta
x re
ve
ILLA
GE
LLA
GE''
SS''
D T TSSA
XA
XTTT
L LXXEV
YY
e e vi
llage
villa
's fu
ture
tax
levi
es. G
ene
x le
vies
. Gen
eg
TIF
Dis
trict
s), i
ncre
ased
by
tg
TIF
Dis
trict
s), i
ncre
ase
w c
onst
ruct
ion
or z
ero
pew
con
stru
ctio
n or
zer
om
this
lim
it w
ith c
erm
this
lim
it w
ith c
eam
ount
of f
eeam
ount
of f
eety
tax
lev
ty ta
x le
v
A-28
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S
A.
DEP
OSI
TSA
ND
INVE
STM
ENTS
The
villa
ge's
dep
osits
and
inve
stm
ents
at y
ear e
nd w
ere
com
pris
ed o
f the
follo
win
g:
Car
ryin
gVa
lue
Stat
emen
tBa
lanc
esAs
soci
ated
Ris
ks
Dep
osits
$14
,058
,772
$14
,346
,732
Cus
todi
al c
redi
tU
S ag
enci
es -
impl
icitl
y gu
aran
teed
1,34
4,64
91,
344,
649
Cre
dit,
cust
odia
l cre
dit,
conc
entra
tion
of c
redi
t,in
tere
st ra
teC
ertif
icat
es o
f dep
osit
(neg
otia
ble)
1,54
2,67
11,
542,
671
Cus
todi
al c
redi
t, cr
edit,
inte
rest
rate
Loca
l gov
ernm
ent i
nves
tmen
t poo
l (LG
IP)
5,03
05,
030
Cre
dit
Petty
cas
h35
2-
N/A
Tota
l Dep
osits
and
Inve
stm
ents
$16
,951
,474
$17
,239
,082
Rec
onci
liatio
n to
fina
ncia
l sta
tem
ents
Per s
tate
men
t of n
et p
ositi
onU
nres
trict
ed c
ash
and
inve
stm
ents
$6,
760,
845
Res
trict
ed c
ash
and
inve
stm
ents
684,
418
Per s
tate
men
t of f
iduc
iary
net
pos
ition
Cus
todi
al F
und
9,50
6,21
1
Tota
l Dep
osits
and
Inve
stm
ents
$16
,951
,474
Dep
osits
in e
ach
loca
l and
are
a ba
nk a
re in
sure
d by
the
FDIC
in th
e am
ount
of $
250,
000
for t
ime
and
savi
ngs
acco
unts
(inc
ludi
ng N
OW
acc
ount
s) a
nd $
250,
000
for d
eman
d de
posi
t acc
ount
s (in
tere
st-
bear
ing
and
noni
nter
est-b
earin
g). I
n ad
ditio
n, if
dep
osits
are
hel
d in
an
inst
itutio
n ou
tsid
e of
the
stat
e in
whi
ch th
e go
vern
men
t is
loca
ted,
insu
red
amou
nts
are
furth
er li
mite
d to
a to
tal o
f $25
0,00
0 fo
r the
com
bine
d am
ount
of a
ll de
posi
t acc
ount
s.
Bank
acc
ount
s ar
e al
so in
sure
d by
the
Stat
e D
epos
it G
uara
ntee
Fun
d in
the
amou
nt o
f $40
0,00
0.H
owev
er, d
ue to
the
natu
re o
f thi
s fu
nd, r
ecov
ery
of m
ater
ial p
rinci
pal l
osse
s m
ay n
ot b
e si
gnifi
cant
toin
divi
dual
mun
icip
aliti
es. T
his
cove
rage
has
bee
n co
nsid
ered
in c
ompu
ting
cust
odia
l cre
dit r
isk.
The
Secu
ritie
s In
vest
or P
rote
ctio
n C
orpo
ratio
n (S
IPC
), cr
eate
d by
the
Secu
ritie
s In
vest
or P
rote
ctio
n Ac
tof
197
0, is
an
inde
pend
ent g
over
nmen
t-spo
nsor
ed c
orpo
ratio
n (n
ot a
n ag
ency
of t
he U
.S. g
over
nmen
t).
SIPC
mem
bers
hip
prov
ides
acc
ount
pro
tect
ion
up to
a m
axim
um o
f $50
0,00
0 pe
r cus
tom
er, o
f whi
ch$1
00,0
00 m
ay b
e in
cas
h. $
500,
000
of th
e vi
llage
's in
vest
men
ts a
re c
over
ed b
y SI
PC.
The
villa
ge m
aint
ains
col
late
ral a
gree
men
ts w
ith it
s ba
nks.
At D
ecem
ber 3
1, 2
019,
the
bank
s ha
dpl
edge
d va
rious
gov
ernm
ent s
ecur
ities
in th
e am
ount
of $
8,59
9,41
3 to
sec
ure
the
villa
ge's
dep
osits
.
31
a
ttttt
$$14
,346
,714
,346
,99
1,34
4,64
91,
344,
,542
,671
1,54
2,67
11,
542,
671
Cus
tC
us inin5,
030
5,03
05,
030
5,0
C35
235
2 af af
$$16
,951
,474
16,9
51,4
74 rara$17
,239
17,2
3 aa
men
ts
onond
inve
stm
ents
inve
s$
6,76
0,84
6,76
0d
inve
stm
ents
d in
ve68
468
4ry
net
pos
ition
ry n
et
9 D
nts
nts
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
A.
DEP
OSI
TSA
ND
INVE
STM
ENTS
(con
t.)
The
villa
ge c
ateg
oriz
es it
s fa
ir va
lue
mea
sure
men
ts w
ithin
the
fair
valu
e hi
erar
chy
esta
blis
hed
byge
nera
lly a
ccep
ted
acco
untin
g pr
inci
ples
. The
hie
rarc
hy is
bas
ed o
n th
e va
luat
ion
inpu
ts u
sed
tom
easu
re th
e fa
ir va
lue
of th
e as
set.
Leve
l 1 in
puts
are
quo
ted
pric
es in
act
ive
mar
kets
for i
dent
ical
asse
ts; L
evel
2 in
puts
are
sig
nific
ant o
ther
obs
erva
ble
inpu
ts; L
evel
3 in
puts
are
sig
nific
ant u
nobs
erva
ble
inpu
ts.
The
valu
atio
n m
etho
ds fo
r rec
urrin
g fa
ir va
lue
mea
sure
men
ts a
re a
s fo
llow
s:
Quo
ted
mar
ket p
rices
Dec
embe
r 31,
201
9
Inve
stm
ent T
ype
Leve
l 1Le
vel 2
Leve
l 3To
tal
U.S
. age
ncie
s - i
mpl
icitl
y gu
aran
teed
$-
$1,
344,
649
$-
$1,
344,
649
Cer
tific
ates
of d
epos
it (n
egot
iabl
e)-
1,54
2,67
1-
1,54
2,67
1
Tota
l$
-$
2,88
7,32
0$
-$
2,88
7,32
0
Cus
todi
al C
redi
t Ris
k
Dep
osits
Cus
todi
al c
redi
t ris
k is
the
risk
that
in th
e ev
ent o
f a fi
nanc
ial i
nstit
utio
n fa
ilure
, the
vill
age'
s de
posi
ts m
ayno
t be
retu
rned
to th
e vi
llage
.
As o
f Dec
embe
r 31,
201
9, $
4,41
9,54
3 of
the
villa
ge's
tota
l ban
k ba
lanc
ew
as e
xpos
ed to
cus
todi
al c
redi
tris
k as
follo
ws:
Uni
nsur
ed a
nd u
ncol
late
raliz
ed$
4,41
9,54
3
Tota
l$
4,41
9,54
3
Inve
stm
ents
For a
n in
vest
men
t, cu
stod
ial c
redi
t ris
k is
the
risk
that
, in
the
even
t of t
he fa
ilure
of t
he c
ount
erpa
rty, t
hevi
llage
will
not
be
able
to re
cove
r the
val
ue o
f its
inve
stm
ents
or c
olla
tera
l sec
uriti
es th
at a
re in
the
poss
essi
on o
f an
outs
ide
party
.
As o
f Dec
embe
r 31,
201
9, $
2,38
7,32
0 of
the
villa
ge's
tota
l inv
estm
ents
wer
e ex
pose
d to
cus
todi
al c
redi
tris
k.
Cre
dit R
isk
Cre
dit r
isk
is th
e ris
k th
at a
n is
suer
or o
ther
cou
nter
party
to a
n in
vest
men
t will
not f
ulfil
l its
obl
igat
ions
.
32Drafts
are
as fo
llow
s ar
e as
follo
Dec
embe
r 31,
201
9D
ecem
ber 3
1, 2
019 fffff
vel 1
ftftftftftLe
vel 2el 2
ftftftftftLevLev af af af af af--
aft aft aft aft aft
$$1,
344,
649
1,34
4,64
9 ftftftftft$$-
a1,54
2,67
11,
542, af
$- rara D
$$2,
887,
3288
7,32 rara
risk
that
in th
e ev
ent o
f a
risk
that
in th
e ev
ent
,543
,543
of t
he o
f th
A-29
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
A.
DEP
OSI
TSA
ND
INVE
STM
ENTS
(con
t.)
Cre
dit R
isk
(con
t.)
As o
f Dec
embe
r 31,
201
9, th
e vi
llage
's in
vest
men
ts w
ere
rate
d as
follo
ws:
Inve
stm
ent T
ype
Stan
dard
&Po
ors
Moo
dy's
Inve
stor
sSe
rvic
es
U.S
. age
ncie
s - i
mpl
icitl
y gu
aran
teed
AA+
Aaa
Cer
tific
ates
of d
epos
it (n
egot
iabl
e)A+
, N/R
A1, N
/R
The
villa
ge a
lso
held
inve
stm
ents
in th
e fo
llow
ing
exte
rnal
poo
l whi
ch is
not
rate
d:
Loca
l Gov
ernm
ent I
nves
tmen
t Poo
l (LG
IP)
Con
cent
ratio
n of
Cre
dit R
isk
Con
cent
ratio
n of
cre
dit r
isk
is th
e ris
k of
loss
attr
ibut
ed to
the
mag
nitu
de o
f a g
over
nmen
t's in
vest
men
t in
a si
ngle
issu
er.
At D
ecem
ber 3
1, 2
019,
the
inve
stm
ent p
ortfo
lio w
as c
once
ntra
ted
as fo
llow
s:
Issu
erIn
vest
men
t Typ
ePe
rcen
tage
of
Portf
olio
FHM
LCU
S ag
enci
es -
impl
icitl
y gu
aran
teed
25.2
7%FN
MA
US
agen
cies
- im
plic
itly
guar
ante
ed11
.74%
Fede
ral F
arm
Cre
dit B
anks
Fun
ding
Cor
pU
S ag
enci
es -
impl
icitl
y gu
aran
teed
6.03
%D
MB
Com
mun
ity B
ank
Cer
tific
ates
of d
epos
it (n
egot
iabl
e)6.
91%
Gol
dman
Sac
hs B
K U
SAC
ertif
icat
es o
f dep
osit
(neg
otia
ble)
6.05
%Sa
llie M
ae B
ank
Cer
tific
ates
of d
epos
it (n
egot
iabl
e)5.
28%
Mor
gan
Stan
ley
Bank
Cer
tific
ates
of d
epos
it (n
egot
iabl
e)8.
67%
Dis
cove
r Ban
kC
ertif
icat
es o
f dep
osit
(neg
otia
ble)
8.66
%
33DraftfffffM
oIn
ves
In Serv
ices
Serv
ice ftftftftft
Aaa
Aaa
, N/R
A1, N
/R/R
ing
exte
rnal
poo
lrn
al p
oo w
hich
ic
h isis
not
rate
(LG
IP)
sk
s th
e ris
k of
loss
attr
ibut
ed to
the
mth
e ris
k of
loss
attr
ibut
ed to
the
the
inve
stm
ent p
ortfo
lio w
as c
oth
e in
vest
men
t por
tfolio
DDDDDDDDDD
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
A.
DEP
OSI
TSA
ND
INVE
STM
ENTS
(con
t.)
Inte
rest
Rat
e R
isk
Inte
rest
rate
risk
is th
e ris
k th
at c
hang
es in
inte
rest
rate
s w
ill ad
vers
ely
affe
ct th
e va
lue
of a
n in
vest
men
t.
As o
f Dec
embe
r 31,
201
9, th
e vi
llage
's in
vest
men
ts w
ere
as fo
llow
s:
Mat
urity
(In
Year
s)
Inve
stm
ent T
ype
Fair
Valu
eLe
ss th
an 1
1-4
Mor
e th
an 4
U.S
. age
ncie
s - i
mpl
icitl
y gu
aran
teed
$1,
344,
649
$43
9,57
0$
905,
079
$-
Cer
tific
ates
of d
epos
it (n
egot
iabl
e)1,
542,
671
625,
685
916,
986
-
Tota
ls$
2,88
7,32
0$
1,06
5,25
5$
1,82
2,06
5$
-
See
Not
e I.D
.1. f
or fu
rther
info
rmat
ion
on d
epos
it an
d in
vest
men
t pol
icie
s.
B.
REC
EIVA
BLE
S
Rec
eiva
bles
as
of y
ear e
nd fo
r the
gov
ernm
ent's
indi
vidu
al m
ajor
fund
s an
d no
nmaj
or fu
nds
in th
eag
greg
ate,
incl
udin
g th
e ap
plic
able
allo
wan
ces
for u
ncol
lect
ible
acc
ount
s, a
re a
s fo
llow
s:
Gen
eral
Fund
Cap
ital
Proj
ects
TIF
Dis
trict
No.
7To
tals
Rec
eiva
bles
Amou
nts
not e
xpec
ted
to b
e co
llect
ed w
ithin
one
year
$
13,7
92$
81,5
41$
5,42
1$
100,
754
Tota
l$
13,7
92$
81,5
41$
5,42
1$
100,
754
34Draftw
s:
Ma
M ftftftftftfffffLe
ss th
an
Less
than
11 ftftftftftftftftftft4,
649
$43
9,57
043
9,5
$$90
590
554
2,67
1
a625,
685
5,68
5 aft99 ft
$2,
887,
320
320
aa$
1,06
5,25
51,
065 af af$$
ion
on d
epos
it an
d in
vest
men
t po
epos
it an
d in
vest
men
t p
end
for t
he g
over
nmen
t's in
divi
duen
d fo
r the
gov
ernm
ent's
indi
vid
e ap
plic
able
allo
wan
ces
for u
nce
appl
icab
le a
llow
ance
s
ted
ted
A-30
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
B.
REC
EIVA
BLE
S(c
ont.)
Gov
ernm
enta
l fun
ds re
port
unav
aila
ble
or u
near
ned
reve
nue
in c
onne
ctio
n w
ith re
ceiv
able
s fo
r rev
enue
sth
at a
re n
ot c
onsi
dere
d to
be
avai
labl
e to
liqu
idat
e lia
bilit
ies
of th
e cu
rrent
per
iod.
Pro
perty
taxe
s le
vied
for t
he s
ubse
quen
t yea
r are
not
ear
ned
and
cann
ot b
e us
ed to
liqu
idat
e lia
bilit
ies
of th
e cu
rrent
per
iod.
Gov
ernm
enta
l fun
ds a
lso
defe
r rev
enue
reco
gniti
on in
con
nect
ion
with
reso
urce
s th
at h
ave
been
rece
ived
, but
not
yet
ear
ned.
At t
he e
nd o
f the
cur
rent
fisc
al y
ear,
the
vario
us c
ompo
nent
s of
una
vaila
ble
reve
nue
and
unea
rned
reve
nue
repo
rted
in th
e go
vern
men
tal f
unds
wer
e as
follo
ws:
Une
arne
dU
nava
ilabl
e
Prop
erty
taxe
s re
ceiv
able
for s
ubse
quen
t yea
r$
6,70
0,57
8$
-Sp
ecia
l ass
essm
ents
not
yet
due
-18
,127
Land
con
tract
-68
,835
Accr
ued
inte
rest
-11
,771
Tota
l Une
arne
d/U
nava
ilabl
e R
even
ue fo
rG
over
nmen
tal F
unds
$6,
700,
578
$98
,733
C.
RES
TRIC
TED
ASS
ETS
The
follo
win
g re
pres
ent t
he b
alan
ces
of th
e re
stric
ted
asse
ts:
Long
-Ter
m D
ebt A
ccou
nts
Red
empt
ion
-U
sed
to s
egre
gate
reso
urce
s ac
cum
ulat
ed fo
r deb
t ser
vice
pay
men
ts o
ver t
hene
xt tw
elve
mon
ths.
Equi
pmen
t Rep
lace
men
t Acc
ount
The
sew
erut
ility
esta
blis
hed
an e
quip
men
t rep
lace
men
t acc
ount
to b
e us
ed fo
r sig
nific
ant m
echa
nica
leq
uipm
ent r
epla
cem
ent a
s re
quire
d by
the
Wis
cons
in D
epar
tmen
t of N
atur
al R
esou
rces
.
Follo
win
g is
a li
st o
f res
trict
ed a
sset
s at
Dec
embe
r 31,
201
9:
Res
trict
edAs
sets
Liab
ilitie
sPa
yabl
e fro
mR
estri
cted
Asse
tsR
estri
cted
Net
Posi
tion
Bond
rede
mpt
ion
acco
unt
$32
7,71
1$
27,1
19$
300,
592
Equi
pmen
t rep
lace
men
t acc
ount
356,
707
-35
6,70
7
Tota
l$
684,
418
$27
,119
$65
7,29
9
35Drafth
nds
we
d
eded
ftftftftft
Una
vaila
bU
nava
i ftftftftft
,700
,57857
8$$
---
18,1
27,1
27-
68,8
3535- af11
,771
11 af
ue fo
r$$
6,70
0,57
86,
700,
57 rara$$9 a
Da
he b
alan
ces
of th
e re
stric
ted
asse
te
bala
nces
of t
he re
stric
ted
a
Acc
ount
sA
ccou
to s
egre
gate
res
to s
egre
gate
res D
elve
mon
ths.
elve
mon
ths
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
D.
CA
PITA
L A
SSET
S
Cap
ital a
sset
act
ivity
for t
he y
ear e
nded
Dec
embe
r 31,
201
9, w
as a
s fo
llow
s:
Begi
nnin
gBa
lanc
eAd
ditio
nsD
elet
ions
Endi
ngBa
lanc
eG
over
nmen
tal A
ctiv
ities
Cap
ital a
sset
s no
t bei
ng d
epre
ciat
edLa
nd$
11,5
28,9
99$
-$
86,8
84$
11,4
42,1
15C
onst
ruct
ion
in p
rogr
ess
-37
,715
-37
,715
Tota
l Cap
ital A
sset
s N
ot B
eing
Dep
reci
ated
11,5
28,9
9937
,715
86,8
8411
,479
,830
Cap
ital a
sset
s be
ing
depr
ecia
ted
Build
ings
and
impr
ovem
ents
7,83
2,50
58,
480
5,52
97,
835,
456
Mac
hine
ry a
nd e
quip
men
t2,
937,
970
288,
698
26,7
813,
199,
887
Stre
ets
14,5
38,8
9796
5,41
526
2,01
715
,242
,295
Stor
m s
ewer
s6,
932,
301
299,
399
-7,
231,
700
Stre
et s
igna
ls29
1,29
2-
-29
1,29
2Si
dew
alks
3,43
8,35
879
,731
51,3
053,
466,
784
Terra
ce tr
ees
618,
252
--
618,
252
Bike
trai
ls25
9,08
325
2,16
2-
511,
245
Tota
l Cap
ital A
sset
s Be
ing
Dep
reci
ated
36,8
48,6
581,
893,
885
345,
632
38,3
96,9
11
Tota
l Cap
ital A
sset
s48
,377
,657
1,93
1,60
043
2,51
649
,876
,741
Less
: Ac
cum
ulat
ed d
epre
ciat
ion
for
Build
ings
and
impr
ovem
ents
$(2
,345
,969
)$
(166
,217
)$
5,52
9$
(2,5
06,6
57)
Mac
hine
ry a
nd e
quip
men
t(1
,615
,801
)(1
80,2
11)
26,7
81(1
,769
,231
)St
reet
s(1
1,82
5,46
0)(4
50,2
35)
262,
017
(12,
013,
678)
Stor
m s
ewer
s(5
,665
,814
)(2
13,9
57)
-(5
,879
,771
)St
reet
sig
nals
(148
,581
)(8
,738
)-
(157
,319
)Si
dew
alks
(3,1
70,4
32)
(69,
051)
51,3
05(3
,188
,178
)Te
rrace
tree
s(6
18,2
52)
--
(618
,252
)Bi
ke tr
ails
(122
,908
)(3
2,03
9)-
(154
,947
)To
tal A
ccum
ulat
ed D
epre
ciat
ion
(25,
513,
217)
(1,1
20,4
48)
345,
632
(26,
288,
033)
Net
Cap
ital A
sset
s Be
ing
Dep
reci
ated
11,3
35,4
4177
3,43
7-
12,1
08,8
78
Tota
l Gov
ernm
enta
lAc
tiviti
es C
apita
l Ass
ets,
Net
of A
ccum
ulat
edD
epre
ciat
ion
$22
,864
,440
$81
1,15
2$
86,8
84$
23,5
88,7
08
36Draft$$
-- f37
,715
37,7
15 ftft8,
999
f37
,715
37,7
15 ft8 ft
7,83
2,50
550
58,
480
8,48
02,
937,
970
37,9
7028
8,69
869
814
,538
,897
38,
965,
415
965,
415
6,93
2,30
16,
932,
301
299,
3929
9,3
291,
292
91,2
923,
438,
35858
761
8,25
25225
9,08
325 Dr
sset
s Be
ing
sets
Bd
36,8
48,6
548
,6 Dr
Asse
tsAs
set
48,3
74 D
ciat
ion
ciat
ion
for
nts
nts
$$
A-31
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
D.
CA
PITA
L A
SSET
S(c
ont.)
Dep
reci
atio
n ex
pens
e w
as c
harg
ed to
func
tions
as
follo
ws:
Gov
ernm
enta
l Act
iviti
esG
ener
al g
over
nmen
t$
12,2
68Pu
blic
saf
ety
89,5
76Pu
blic
wor
ks86
9,88
2C
ultu
re, r
ecre
atio
n an
d ed
ucat
ion
90,6
96C
onse
rvat
ion
and
deve
lopm
ent
58,0
26
Tota
l Gov
ernm
enta
l Act
iviti
es D
epre
ciat
ion
Expe
nse
$1,
120,
448
Bus
ines
s-ty
pe A
ctiv
ities
Begi
nnin
gBa
lanc
eAd
ditio
nsD
elet
ions
Endi
ng B
alan
ceW
ater
Cap
ital a
sset
s no
t bei
ng d
epre
ciat
edLa
nd a
nd la
nd ri
ghts
$23
0,24
5$
-$
-$
230,
245
Tota
l Cap
ital A
sset
s N
ot B
eing
Dep
reci
ated
230,
245
--
230,
245
Cap
ital a
sset
s be
ing
depr
ecia
ted
Build
ings
and
impr
ovem
ents
1,32
3,82
62,
870
1,81
31,
324,
883
Equi
pmen
t and
mac
hine
ry86
6,51
327
,205
-89
3,71
8In
frast
ruct
ure
15,2
52,8
6731
5,44
4-
15,5
68,3
11To
tal C
apita
l Ass
ets
Bein
gD
epre
ciat
ed17
,443
,206
345,
519
1,81
317
,786
,912
Tota
l Cap
ital A
sset
s17
,673
,451
345,
519
1,81
318
,017
,157
Less
: Ac
cum
ulat
ed d
epre
ciat
ion
for
Wat
er p
lant
(4,3
11,4
72)
(425
,357
)1,
813
(4,7
35,0
16)
Tota
l Acc
umul
ated
Dep
reci
atio
n(4
,311
,472
)(4
25,3
57)
1,81
3(4
,735
,016
)
Net
Cap
ital A
sset
s Be
ing
Dep
reci
ated
13,1
31,7
34(7
9,83
8)-
13,0
51,8
96
Net
Wat
er C
apita
l Ass
ets
$13
,361
,979
$(7
9,83
8)$
-$
13,2
82,1
41
37Draft
ense
Begi
nnin
ggBa
lanc
ee
aaaaaAddi
tions
Addi
tion aaaaa
$23
0,24
5 Dra
$$ ra
Bein
gei
ng23
0,24
523
0, Drr
ecia
ted
ecia
ted
emen
tsem
ent
1,32
3,82
61,
323,
826
ery
ery
866,
515
,25
15 D
ngng1 D
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
D.
CA
PITA
L A
SSET
S(c
ont.)
Bus
ines
s-ty
pe A
ctiv
ities
(con
t.)
Begi
nnin
gBa
lanc
eAd
ditio
nsD
elet
ions
Endi
ng B
alan
ceSe
wer
Cap
ital a
sset
s no
t bei
ng d
epre
ciat
edLa
nd a
nd la
nd ri
ghts
$51
4,82
6$
-$
-$
514,
826
Tota
l Cap
ital A
sset
s N
ot B
eing
Dep
reci
ated
514,
826
--
514,
826
Cap
ital a
sset
s be
ing
depr
ecia
ted
Build
ings
and
impr
ovem
ents
3,07
1,78
173
,250
1,81
33,
143,
218
Equi
pmen
t and
mac
hine
ry3,
909,
221
27,2
04-
3,93
6,42
5In
frast
ruct
ure
11,8
38,3
4222
9,44
8-
12,0
67,7
90To
tal C
apita
l Ass
ets
Bein
gD
epre
ciat
ed18
,819
,344
329,
902
1,81
319
,147
,433
Tota
l Cap
ital A
sset
s19
,334
,170
329,
902
1,81
319
,662
,259
Less
: Acc
umul
ated
dep
reci
atio
n fo
rSe
wer
pla
nt(4
,481
,487
)(4
71,0
36)
1,81
3(4
,950
,710
)To
tal A
ccum
ulat
edD
epre
ciat
ion
(4,4
81,4
87)
(471
,036
)1,
813
(4,9
50,7
10)
Net
Cap
ital A
sset
s Be
ing
Dep
reci
ated
14,3
37,8
57(1
41,1
34)
-14
,196
,723
Net
Sew
er C
apita
lAs
sets
$14
,852
,683
$(1
41,1
34)
$-
$14
,711
,549
Busi
ness
-type
Cap
ital A
sset
s,N
et o
f Acc
umul
ated
Dep
reci
atio
n$
28,2
14,6
62$
(220
,972
)$
-$
27,9
93,6
90
Dep
reci
atio
n ex
pens
e w
as c
harg
ed to
func
tions
as
follo
ws:
Bus
ines
s-ty
pe A
ctiv
ities
Wat
er$
398,
459
Sew
er49
7,93
4
Tota
l Bus
ines
s-ty
pe A
ctiv
ities
Dep
reci
atio
n Ex
pens
e$
896,
393
Dep
reci
atio
n ex
pens
e m
ay b
e di
ffere
nt fr
om b
usin
ess-
type
act
ivity
acc
umul
ated
dep
reci
atio
n ad
ditio
nsbe
caus
e of
join
t met
erin
g, s
alva
ge, c
ost o
f rem
oval
, int
erna
l allo
catio
ns, o
r cos
ts a
ssoc
iate
d w
ith th
edi
spos
al o
f ass
ets.
38Draft- ft-- ftft
1,78
173
,250
7390
9,22
127
,204
27,2
01,
838,
3422
a229,
448
9,44
8 aff18
,819
,344
,344
a329,
902
329,
902 af
19,3
34,1
7019
,334
,170 ra32
9,90
329,
9 rafo
r(4
,481
,487
)(4
,48 Dr
ara
(4,4
81,4
87)
481,
48 Dr
al A
sset
s Be
ing
l Ass
edd
14,3
37,8
14 Dap
ital
apita
l$$
141 DD
A-32
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
E.IN
TER
FUN
DR
ECEI
VAB
LES/
PAYA
BLE
S, A
DVA
NC
ESA
ND
TR
AN
SFER
S
Inte
rfun
d R
ecei
vabl
es/P
ayab
les
The
follo
win
g is
a s
ched
ule
of in
terfu
nd re
ceiv
able
s an
d pa
yabl
es in
clud
ing
any
over
draf
ts o
n po
oled
cash
and
inve
stm
ent a
ccou
nts:
Rec
eiva
ble
Fund
Paya
ble
Fund
Amou
nt
Gen
eral
fund
TID
No.
10
$2,
017
Wat
er U
tility
Gen
eral
Fun
d31
,822
Sew
er U
tility
Gen
eral
Fun
d35
,460
Tota
l - F
und
Fina
ncia
l Sta
tem
ents
69,2
99
Less
: Fu
nd e
limin
atio
ns(2
,017
)
Add:
Int
erfu
nd a
dvan
ces
86,0
75
Tota
l Int
erna
l Bal
ance
s - G
over
nmen
t-Wid
e St
atem
ent o
fN
et P
ositi
on$
153,
357
All a
mou
nts
are
due
with
in o
ne y
ear.
The
prin
cipa
l pur
pose
of t
hese
inte
rfund
s is
to re
cord
tem
pora
ry ti
min
g di
ffere
nces
for t
he p
aym
ent o
fca
sh b
etw
een
fund
s. A
ll re
mai
ning
bal
ance
s re
sulte
d fro
m th
e tim
e la
g be
twee
n th
e da
tes
that
(1) i
nter
fund
goo
ds a
nd s
ervi
ces
are
prov
ided
or r
eim
burs
able
exp
endi
ture
s oc
cur,
(2) t
rans
actio
ns a
rere
cord
ed in
the
acco
untin
g sy
stem
, and
(3)
paym
ents
bet
wee
n fu
nds
are
mad
e.
Adv
ance
s
The
Wat
er U
tility
is a
dvan
cing
fund
s to
TIF
Dis
trict
No.
6. T
he a
mou
nt a
dvan
ced
is d
eter
min
ed b
y th
ede
ficie
ncy
of re
venu
es o
ver e
xpen
ditu
res
and
othe
r fin
anci
ng s
ourc
esin
curre
d in
201
4. T
he a
mou
nt o
fth
e ad
vanc
e to
tals
$86
,075
. No
repa
ymen
t sch
edul
e ha
s be
en e
stab
lishe
d.
The
Gen
eral
Deb
t Ser
vice
Fun
d an
d G
ener
al F
und
are
also
adv
anci
ng fu
nds
to T
IF D
istri
ct N
o. 6
. The
amou
nt a
dvan
ced
repr
esen
ts th
e de
ficie
ncy
of re
venu
es o
ver e
xpen
ditu
res
incu
rred
sinc
e 20
14. T
heam
ount
of t
he a
dvan
ce to
tals
$20
2,14
6 an
d $3
25,0
20 fr
om th
e G
ener
al F
und
and
Gen
eral
Deb
t Ser
vice
Fund
, res
pect
ivel
y. N
o re
paym
ent s
ched
ule
has
been
est
ablis
hed.
No
inte
rest
is b
eing
cha
rged
. Thi
sad
vanc
e ha
s be
en e
limin
ated
from
the
gove
rnm
ent-w
ide
finan
cial
sta
tem
ents
.
The
prin
cipa
l pur
pose
of t
hese
adv
ance
s is
to fu
nd th
e TI
F di
stric
t's d
efic
it.
39Drafttttttttttt$$
3 35,4 ft69,69
Da
Gov
ernm
ent-W
ent-W
ide
Stat
emen
t of
emen
t of
hin
one
year
.in
one
hese
inte
rfund
s is
to re
cor
hese
inte
rfund
s is
to re
mai
ning
bal
ance
s re
sum
aini
ng b
alan
ces
re D
es a
re p
rovi
ded
oes
are
pro
vide
d m
, and
(3)
m, a
nd (3
)
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
E.IN
TER
FUN
DR
ECEI
VAB
LES/
PAYA
BLE
S, A
DVA
NC
ESA
ND
TR
AN
SFER
S(c
ont.)
Tran
sfer
s
The
follo
win
g is
a s
ched
ule
of in
terfu
nd tr
ansf
ers:
Fund
Tra
nsfe
rred
ToFu
nd T
rans
ferre
d Fr
omAm
ount
Prin
cipa
l Pur
pose
Gen
eral
Fun
dW
ater
Util
ity$
325,
890
Util
ity ta
x eq
uiva
lent
G
ener
al D
ebt S
ervi
ceFu
ndTI
F N
o. 5
1,15
2,28
3TI
F de
bt p
aym
ent
Gen
eral
Deb
t Ser
vice
Fund
TIF
No.
611
7,02
5TI
F de
bt p
aym
ent
Gen
eral
Deb
t Ser
vice
Fund
TIF
No.
719
8,45
8TI
F de
bt p
aym
ent
Tota
l - F
und
Fina
ncia
l Sta
tem
ents
1,79
3,65
6
Less
: Fun
d el
imin
atio
ns(1
,467
,766
)
Tota
l Tra
nsfe
rs -
Gov
ernm
ent-W
ide
Stat
emen
tof
Act
iviti
es$
325,
890
Gen
eral
ly, t
rans
fers
are
use
d to
(1) m
ove
reve
nues
from
the
fund
that
col
lect
s th
em to
the
fund
that
the
budg
et re
quire
s to
exp
end
them
, (2)
mov
e re
ceip
ts re
stric
ted
to d
ebt s
ervi
ce fr
om th
e fu
nds
colle
ctin
g th
ere
ceip
ts to
the
debt
ser
vice
fund
, and
(3) u
se u
nres
trict
ed re
venu
es c
olle
cted
in th
e ge
nera
l fun
d to
finan
ce v
ario
us p
rogr
ams
acco
unte
d fo
r in
othe
r fun
ds in
acc
orda
nce
with
bud
geta
ry a
utho
rizat
ions
.
F.LO
NG
-TER
M O
BLI
GA
TIO
NS
Long
-term
obl
igat
ions
act
ivity
for t
he y
ear e
nded
Dec
embe
r 31,
201
9, w
as a
s fo
llow
s:
Begi
nnin
gBa
lanc
eIn
crea
ses
Dec
reas
esEn
ding
Bal
ance
Amou
nts
Due
With
in O
ne Y
ear
Gov
ernm
enta
l Act
iviti
esBo
nds
and
Not
es P
ayab
leG
ener
al o
blig
atio
n de
bt$
16,3
35,3
77$
-$
1,45
8,48
7$
14,8
76,8
90$
1,49
5,90
7G
ener
al o
blig
atio
n no
tes
from
dire
ct b
orro
win
gs a
nd d
irect
plac
emen
ts-
785,
000
-78
5,00
064
,000
(Dis
coun
ts)/P
rem
ium
s39
5,17
4-
40,6
5535
4,51
9-
Sub-
tota
ls16
,730
,551
785,
000
1,49
9,14
216
,016
,409
1,55
9,90
7
Oth
er L
iabi
litie
sVe
sted
com
pens
ated
abs
ence
s12
7,09
467
,019
43,8
0215
0,31
152
,785
Tota
l Oth
er L
iabi
litie
s12
7,09
467
,019
43,8
0215
0,31
152
,785
Tota
l Gov
ernm
enta
lAc
tiviti
es L
ong-
Term
Liab
ilitie
s$
16,8
57,6
45$
852,
019
$1,
542,
944
$16
,166
,720
$1,
612,
692
40Draftun
ttttt32
5,89
032
5,89
0
1,15
2,28
31,
152,
283
TIF
dT
117,
025
117,
0TI
F de
bt
TIF
debt
198,
458
458 afTI
F d
1,79
3,65
61,
793,
65
(1,4
67(1
,46 ra
over
nmen
t-Wve
rnm
ent-W
ide
Stat
emen
tid
e St
atem
en$
Dse
d to
(1) m
ove
reve
nues
se
d to
(1) m
ove
reve
nem
, (2)
mov
e re
ceip
em, (
2) m
ove
rece
d, a
nd (3
) use
ud,
and
(3) u
se
ted
for i
n o
ted
for i
n o
A-33
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
F.LO
NG
-TER
M O
BLI
GA
TIO
NS
(con
t.) Begi
nnin
gBa
lanc
eIn
crea
ses
Dec
reas
esEn
ding
Bala
nce
Amou
nts
Due
With
in O
ne Y
ear
Busi
ness
-type
Act
iviti
esBo
nds
and
Not
es P
ayab
leG
ener
al o
blig
atio
n de
bt$
3,12
8,24
4$
-$
150,
133
$2,
978,
111
$19
4,09
3G
ener
al o
blig
atio
n no
tes
from
dire
ct b
orro
win
gs a
nd d
irect
plac
emen
ts92
0,50
3-
81,5
3283
8,97
183
,707
Rev
enue
bon
ds fr
om d
irect
borro
win
gs a
nd d
irect
plac
emen
ts6,
527,
859
-44
8,60
26,
079,
257
458,
804
Vest
ed c
ompe
nsat
ed a
bsen
ces
56,8
8918
,413
15,2
3760
,065
16,8
07(D
isco
unts
)/Pre
miu
ms
67,1
42-
5,16
261
,980
-Su
b-to
tals
10,7
00,6
3718
,413
700,
666
10,0
18,3
8475
3,41
1
Tota
l Bus
ines
s-ty
peAc
tiviti
es L
ong-
Term
Liab
ilitie
s$
10,7
00,6
37$
18,4
13$
700,
666
$10
,018
,384
$75
3,41
1
In a
dditi
on to
the
liabi
litie
s ab
ove,
info
rmat
ion
on th
e ne
t pen
sion
liab
ility
(ass
et) i
s pr
ovid
ed in
Not
e IV
.A.
In a
ccor
danc
e w
ith W
isco
nsin
Sta
tute
s, to
tal g
ener
al o
blig
atio
n in
debt
edne
ss o
f the
villa
ge m
ay n
otex
ceed
5%
of t
he e
qual
ized
val
ue o
f tax
able
pro
perty
with
in th
e vi
llage
's ju
risdi
ctio
n. T
he d
ebt l
imit
as o
fD
ecem
ber 3
1, 2
019,
was
$39
,935
,930
. Tot
al g
ener
al o
blig
atio
n de
bt o
utst
andi
ng a
t yea
r end
was
$19,
478,
972.
41
81,5
381
,5
--44
8,60
248
,602
18,4
1315
,237237
- af5,16
22 aftft
18,4
13 af700,
666
70 aft
11 ft
0,63
7$
18,4
133 af af$$700,6666 af af
info
rmat
ion
on th
e ne
t pen
sion
lia
on o
n th
e ne
t pen
sion
li
n St
atut
es, t
otal
gen
eral
obl
igat
ion
Stat
utes
, tot
al g
ener
aed
val
ue o
f tax
able
pro
perty
with
ind
valu
e of
taxa
ble
prop
erty
was
s $3
9,93
5,93
0$3
9,. T
otal
gen
eral
obl
iot
al g
ener
al o
b
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
F.LO
NG
-TER
M O
BLI
GA
TIO
NS
(con
t.)
Gen
eral
Obl
igat
ion
Deb
t
All g
ener
al o
blig
atio
n no
tes
and
bond
s pa
yabl
e ar
e ba
cked
by
the
full
faith
and
cre
dit o
f the
vill
age.
Not
es a
nd b
onds
in th
e go
vern
men
tal f
unds
will
be re
tired
by
futu
re p
rope
rty ta
x le
vies
or t
ax in
crem
ents
accu
mul
ated
by
the
debt
ser
vice
fund
. Bus
ines
s-ty
pe a
ctiv
ities
deb
t is
paya
ble
by re
venu
es fr
om u
ser
fees
of t
hose
fund
s or
, if t
he re
venu
es a
re n
ot s
uffic
ient
, by
futu
re ta
x le
vies
.
Gov
ernm
enta
l Act
iviti
es
Gen
eral
Obl
igat
ion
Deb
tD
ate
ofIs
sue
Fina
lM
atur
ityIn
tere
stR
ates
Orig
inal
Inde
bted
ness
Bala
nce
Dec
embe
r 31,
2019
Taxa
ble
refu
ndin
gbo
nds
9/5/
2012
4/1/
2022
1.00
- 3.
25%
$1,
545,
000
$1,
050,
000
Prom
isso
ry n
otes
9/5/
2012
4/1/
2022
1.00
- 2.
25%
1,32
4,49
244
1,89
0G
ener
al o
blig
atio
nre
fund
ing
bond
s6/
12/2
014
4/1/
2026
2.00
- 2.
25%
6,42
0,00
04,
680,
000
Gen
eral
obl
igat
ion
refu
ndin
g bo
nds
4/7/
2015
4/1/
2031
2.00
- 3.
00%
3,47
5,00
02,
970,
000
Gen
eral
obl
igat
ion
corp
orat
e pu
rpos
ebo
nds
4/12
/201
74/
1/20
373.
00 -
3.75
%5,
403,
083
4,74
5,00
0G
ener
al o
blig
atio
nco
rpor
ate
purp
ose
bond
s6/
20/2
018
4/1/
2038
3.00
- 3.
75%
990,
000
990,
000
Gen
eral
obl
igat
ion
corp
orat
e pu
rpos
ebo
nds
7/22
/201
94/
1/20
292.
79%
785,
000
785,
000
Tota
l Gov
ernm
enta
l Act
iviti
es -
Gen
eral
Obl
igat
ion
Deb
t$
15,6
61,8
90
42Draftbt
ire
tax
leta
urity
fffffIn
tere
stIn
tere
sR
ates
Rat
e
ftftftftftOri
Inde
bted
Inde
bted ftftftftft
4/1/
202202
21.
00 -
3.25
%1.
00 -
3.25
%$$
4/1/
2022
2022
1.00
- 2.
25%
1.00
- 2.
25%
2014
4/1/
2026
4/1/
202
2.00
- 2.
252.
00 -
2.2
4/7/
2015
4/7/
204/
1/20
314/
12.
00
2.00
4/12
/201
74/
1/20
3720
37
6/20
/201
86/
24/
14 D20192019
A-34
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
F.LO
NG
-TER
M O
BLI
GA
TIO
NS
(con
t.)
Gen
eral
Obl
igat
ion
Deb
t (co
nt.)
Bus
ines
s-ty
pe A
ctiv
ities
Gen
eral
Obl
igat
ion
Deb
tD
ate
ofIs
sue
Fina
lM
atur
ityIn
tere
stR
ates
Orig
inal
Inde
bted
ness
Bala
nce
Dec
embe
r 31,
2019
Prom
isso
ry n
otes
2/25
/200
95/
1/20
282.
67%
$1,
561,
932
$83
8,97
1Ta
xabl
e pr
omis
sory
note
s9/
5/20
124/
1/20
221.
00 -
2.25
%17
5,32
456
,070
Taxa
ble
prom
isso
ryno
tes
9/5/
2012
4/1/
2022
1.00
- 2.
25%
100,
185
32,0
41G
ener
al o
blig
atio
nre
fund
ing
bond
s4/
7/20
154/
1/20
252.
00 -
3.00
%72
5,00
045
0,00
0G
ener
al o
blig
atio
nco
rpor
ate
purp
ose
bond
s4/
12/2
017
4/1/
2037
3.00
- 3.
75%
1,09
6,91
71,
015,
000
Gen
eral
obl
igat
ion
corp
orat
e pu
rpos
ebo
nds
6/20
/201
84/
1/20
383.
00 -
3.75
%1,
425,
000
1,42
5,00
0
Tota
l Bus
ines
s-ty
pe A
ctiv
ities
- G
ener
al O
blig
atio
n D
ebt
$3,
817,
082
43Draftte
s
ttttt
2.67
%2.
67%
$
21.
00 -
2.25
%1.
00 -
2.25
%
/202
21.
00 -
2.25
%.0
0 - 2
.210
010
0
4/1/
202525
2.00
- 3.
00%
2.00
- 3.
00%
2017
4/1/
2037
4/1/
2037
3.00
- 3.
753.
00 -
3.75
6/20
/201
86/
20/2
018
4/1/
2038
4/1/
23.
03
0
type
Act
iviti
es -
Gen
eral
Obl
igat
ioty
pe A
ctiv
ities
- G
ener
al O
blig
ati
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
F.LO
NG
-TER
M O
BLI
GA
TIO
NS
(con
t.)
Gen
eral
Obl
igat
ion
Deb
t (co
nt.)
Deb
t ser
vice
requ
irem
ents
to m
atur
ity a
re a
s fo
llow
s:
Gov
ernm
enta
l Act
iviti
esBu
sine
ss-ty
pe A
ctiv
ities
Gen
eral
Obl
igat
ion
Deb
tG
ener
al O
blig
atio
n D
ebt
Year
sPr
inci
pal
Inte
rest
Prin
cipa
lIn
tere
st
2020
$1,
495,
907
$37
5,94
2$
194,
093
$88
,227
2021
1,56
0,90
734
0,25
519
4,09
383
,496
2022
2,58
5,07
628
5,95
718
9,92
578
,392
2023
1,77
5,00
022
6,74
416
0,00
073
,256
2024
1,78
5,00
018
0,98
216
0,00
068
,632
2025
-202
94,
655,
000
383,
022
720,
000
278,
931
2030
-203
480
0,00
084
,350
765,
000
165,
966
2035
-203
822
0,00
012
,375
595,
000
38,3
63
Tota
ls$
14,8
76,8
90$
1,88
9,62
7$
2,97
8,11
1$
875,
263
Gov
ernm
enta
l Act
iviti
esBu
sine
ss-ty
pe A
ctiv
ities
Gen
eral
Obl
igat
ion
Deb
t fro
mD
irect
Bor
row
ings
and
Dire
ctPl
acem
ents
Gen
eral
Obl
igat
ion
Deb
t fro
mD
irect
Bor
row
ings
And
Dire
ctPl
acem
ents
Year
sPr
inci
pal
Inte
rest
Prin
cipa
lIn
tere
st
2020
$64
,000
$25
,206
$83
,707
$21
,267
2021
71,0
0019
,125
85,9
4019
,004
2022
73,0
0017
,117
88,2
3316
,681
2023
75,0
0015
,052
90,5
8714
,295
2024
77,0
0012
,932
93,0
0411
,846
2025
-202
942
5,00
030
,369
397,
500
21,5
60
Tota
ls$
785,
000
$11
9,80
1$
838,
971
$10
4,65
3
Rev
enue
Deb
t
Busi
ness
-type
act
iviti
es re
venu
e bo
nds
are
paya
ble
only
from
reve
nues
der
ived
from
the
oper
atio
n of
the
wat
er a
nd s
ewer
util
ities
.
The
sew
er u
tility
has
ple
dged
futu
re c
usto
mer
reve
nues
, net
of s
peci
fied
oper
atin
g ex
pens
es, t
o re
pay
reve
nue
bond
s is
sued
in 2
009.
Pro
ceed
s fro
m th
e bo
nds
prov
ided
fina
ncin
g fo
r the
impr
ovem
ents
to th
ese
wer
util
ity s
yste
m. T
he b
onds
are
pay
able
sol
ely
from
cus
tom
er re
venu
es a
nd a
re p
ayab
le th
roug
h20
28. A
nnua
l prin
cipa
l and
inte
rest
pay
men
ts o
n th
e bo
nds
are
expe
cted
to re
quire
42.
57%
of n
etre
venu
es. T
he to
tal p
rinci
pal a
nd in
tere
st re
mai
ning
to b
e pa
id o
n th
e bo
nds
is $
2,80
0,92
7. P
rinci
pal a
ndin
tere
st p
aid
for t
he c
urre
nt y
ear a
nd to
tal c
usto
mer
net
reve
nues
wer
e $3
11,6
76 a
nd $
731,
006,
resp
ectiv
ely.
44Draftbt
ttttttttttre
stre
s
ftftftftftftftftftft37
5,94
237
5,94
2$$
134
0,25
534
0,25
1944
285,
957
285,
957
189,
918
9,9
000
226,
744
226,
744
160
160
5,00
018
0,98
218
0,98
21
655,
000
383,
022
383,
0280
0,00
084
,350
84,3
5022
0,00
0,0
00
ra12,3
75375 ra
$14
,876
,890
876,
8 DraDr
a$
1,88
9,62
1,88
9,6 rara
Gov
ernm
enta
l Act
Gov
ernm
enta
l AG
ener
al O
blig
atio
nra
l Obl
igat
ioD
irect
Bor
row
inBo
r Plac
P DDDDDPrin
cipa
lnc
ipa DDDDD
$$
A-35
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
F.LO
NG
-TER
M O
BLI
GA
TIO
NS
(con
t.)
Rev
enue
Deb
t (co
nt.)
The
wat
er u
tility
has
ple
dged
futu
re c
usto
mer
reve
nues
, net
of s
peci
fied
oper
atin
g ex
pens
es, t
o re
pay
reve
nue
bond
s is
sued
in 2
013,
201
5, a
nd 2
016.
Pro
ceed
s fro
m th
e bo
nds
prov
ided
fina
ncin
g fo
r the
impr
ovem
ents
to th
e w
ater
util
ity s
yste
m. T
he b
onds
are
pay
able
sol
ely
from
cus
tom
er re
venu
es a
nd a
repa
yabl
e th
roug
h 20
36. A
nnua
l prin
cipa
l and
inte
rest
pay
men
ts o
n th
e bo
nds
are
expe
cted
to re
quire
28.7
7% o
f net
reve
nues
. The
tota
l prin
cipa
l and
inte
rest
rem
aini
ng to
be
paid
on
the
bond
s is
$4,0
95,4
37. P
rinci
pal a
nd in
tere
st p
aid
for t
he c
urre
nt y
ear a
nd to
tal c
usto
mer
net
reve
nues
wer
e$2
73,0
83 a
nd $
837,
377,
resp
ectiv
ely.
Rev
enue
deb
t pay
able
at D
ecem
ber 3
1, 2
019,
con
sist
s of
the
follo
win
g:
Bus
ines
s-ty
pe A
ctiv
ities
Rev
enue
Deb
t
Dat
e of
Issu
eFi
nal
Mat
urity
Inte
rest
Rat
esO
rigin
alIn
debt
edne
ss
Bala
nce
Dec
embe
r 31,
2019
Wat
erU
tility
Rev
enue
bon
ds6/
12/2
013
5/1/
2033
1.93
%$
2,84
0,25
2$
2,04
0,85
9R
even
ue b
onds
12/2
3/20
155/
1/20
352.
2873
0,29
659
9,51
9R
even
ue b
onds
12/2
8/20
165/
1/20
361.
541,
122,
400
948,
587
Tota
l Wat
erU
tility
3,58
8,96
5
Sew
erU
tility
Rev
enue
bon
ds2/
25/2
009
5/1/
2028
2.67
4,63
6,22
12,
490,
292
Tota
l Sew
erU
tility
2,49
0,29
2
Tota
l Bus
ines
s-ty
pe A
ctiv
ities
- R
even
ue D
ebt
$6,
079,
257
Deb
t ser
vice
requ
irem
ents
to m
atur
ity a
re a
s fo
llow
s: 45Draftso
leon
the
b t
aini
ng to
be
pai
ning
to b
e p
r and
tota
l cus
tom
ean
d to
tal c
us
nsis
ts o
f the
follo
win
g:e
follo
win
Deb
t
Dat
e of
Issu
e Dr Dr Dr Dr DrFina
lFi
naM
atur
ityy DraDr
aDr
aDr
aDr
aInte
rest
tere
sR
atR
at rarararara DDDDD
6/12
/201
301
35/
1/20
331/
203
12/2
3/20
15155/
1/20
3520
3512
/28/
20166
5/1/
20
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
F.LO
NG
-TER
M O
BLI
GA
TIO
NS
(con
t.)Bu
sine
ss-ty
pe A
ctiv
ities
Rev
enue
Deb
t fro
m D
irect
Borro
win
gs a
nd D
irect
Plac
emen
tsYe
ars
Prin
cipa
lIn
tere
st
2020
$45
8,80
4$
125,
833
2021
469,
248
115,
266
2022
479,
938
104,
449
2023
490,
882
93,3
7720
2450
2,08
382
,043
2025
-202
92,
373,
047
234,
784
2030
-203
41,
137,
798
59,0
4620
35-2
036
167,
457
2,31
0
Tota
ls$
6,07
9,25
7$
817,
108
Oth
er D
ebt I
nfor
mat
ion
Estim
ated
pay
men
ts o
f com
pens
ated
abs
ence
s ar
e no
t inc
lude
d in
the
debt
ser
vice
requ
irem
ent
sche
dule
s. T
he c
ompe
nsat
ed a
bsen
ces
attri
buta
ble
to g
over
nmen
tal a
ctiv
ities
will
be li
quid
ated
prim
arily
by th
e ge
nera
l fun
d.
G.N
ET P
OSI
TIO
N/F
UN
D B
ALA
NC
ES
Net
pos
ition
repo
rted
on th
e go
vern
men
t wid
e st
atem
ent o
f net
pos
ition
at D
ecem
ber 3
1, 2
019,
incl
udes
the
follo
win
g:
Gov
ernm
enta
l Act
iviti
es
Net
Inve
stm
ent i
n C
apita
l Ass
ets
Land
$11
,442
,115
Con
stru
ctio
n in
pro
gres
s37
,515
Oth
er c
apita
l ass
ets,
net
of a
ccum
ulat
ed d
epre
ciat
ion
12,1
08,8
78Le
ss:
Long
-term
deb
t out
stan
ding
(15,
661,
890)
Plus
: N
onca
pita
l deb
t pro
ceed
s3,
871,
302
Less
: Pr
emiu
m o
n ca
pita
l-rel
ated
long
-term
deb
t(3
54,5
19)
Plus
: U
nam
ortiz
ed lo
ss o
n re
fund
ing
192,
451
Tota
l Net
Inve
stm
ent i
n C
apita
l Ass
ets
$11
,635
,852
46Draft83
315
,266
5,26
610
4,44
910
4,44
993
,377
93,3
7782
,043
82,0
4323
4,78
423
4,78
48
59,0
4659
,046
457
a2,31
00 aft
079,
257
aa$$
817,
108
817,
10 af af
ensa
ted
abse
nces
nsat
ed a
bsen
ces
are
not i
nclu
ded
are
not
incl
uded
ed a
bsen
ces
ed a
bsen
ces D a
ttrib
utab
le to
gov
er a
ttrib
utab
le t
B BA
LAN
CES
ALA
BB
vern
men
t wid
e ve
rnm
ent w
ide
A-36
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE II
I - D
ETA
ILED
NO
TES
ON
ALL
FU
ND
S (c
ont.)
G.N
ET P
OSI
TIO
N/F
UN
D B
ALA
NC
ES(c
ont.)
Gov
ernm
enta
l Fun
ds
Gov
ernm
enta
l fun
d ba
lanc
es re
porte
d on
the
fund
fina
ncia
l sta
tem
ents
at D
ecem
ber 3
1, 2
019,
incl
ude
the
follo
win
g:
Gen
eral
Fun
d
Gen
eral
Deb
tSe
rvic
eFu
ndTI
F D
istri
ctN
o. 5
TIF
Dis
trict
No.
7C
apita
lPr
ojec
ts
Non
maj
orG
over
n-m
enta
l Fun
dsTo
tals
Fund
Bal
ance
s
Non
spen
dabl
e:Pr
epai
d ite
ms
$6,
284
$-
$-
$-
$-
$-
$6,
284
Del
inqu
ent s
peci
alas
sess
men
ts6,
248
--
--
-6,
248
Del
inqu
ent
pers
onal
pro
perty
taxe
s7,
544
--
--
-7,
544
Adva
nces
to o
ther
fund
s20
2,14
6-
--
--
202,
146
Sub-
tota
l22
2,22
2-
--
--
222,
222
Res
trict
ed fo
r:D
ebt s
ervi
ce-
334,
976
--
--
334,
976
TIF
dist
ricts
--
1,21
2,04
122
7,84
8-
-1,
439,
889
Sub-
tota
l-
325,
566
1,21
2,04
122
7,84
8-
-1,
774,
865
Com
mitt
ed to
:Pa
rk d
evel
opm
ent
--
--
-28
,824
28,8
24St
reet
tree
s-
--
--
28,1
5728
,157
Sub-
tota
l-
--
--
56,9
8156
,981
Ass
igne
d to
:Pa
ymen
t in
lieu
ofta
xes
325,
890
--
--
-32
5,89
0C
apita
l pro
ject
s-
--
-97
1,78
0-
971,
780
Sub-
tota
l32
5,89
0-
--
1,29
0,44
4-
1,29
7,67
0
Una
ssig
ned
(def
icit)
:1,
371,
393
--
--
(621
,977
)74
9,41
6
Tota
l Fun
dBa
lanc
es
$1,
919,
505
$33
4,97
6$1
,212
,041
$22
7,84
8$
971,
780
$(5
64,9
96)
$4,
101,
154
Bus
ines
s-ty
pe A
ctiv
ities
Net
Inve
stm
ent i
n C
apita
l Ass
ets
Land
$74
5,07
1O
ther
cap
ital a
sset
s, n
et o
f acc
umul
ated
dep
reci
atio
n27
,248
,619
Less
: Lo
ng-te
rm d
ebt o
utst
andi
ng(9
,896
,339
)Le
ss: U
nam
ortiz
ed d
ebt p
rem
ium
(61,
980)
Tota
l Net
Inve
stm
ent i
n C
apita
l Ass
ets
$18
,035
,371
47DraftD
istri
ctD
istri
ctN
o. 7
No.
7
ftftftftft
Cap
itaC
api
Proj
ects
Proj ftftftftft
-$
-$$
-$$
---
-
---
--
- D- Dra-- ra
- D- Drara
--33
4,97
697
6--
-
D- D1,21
2,04
11,
212,
041 Dr
-
D325,
566 D1,
212,
041
1,21
2,04
1 D
--- -- DD-- DD
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
A.
EMPL
OYE
ES' R
ETIR
EMEN
T SY
STEM
Plan
des
crip
tion.
The
WR
S is
a c
ost-s
harin
g m
ultip
le-e
mpl
oyer
def
ined
ben
efit
pens
ion
plan
. WR
Sbe
nefit
s an
d ot
her p
lan
prov
isio
ns a
re e
stab
lishe
d by
Cha
pter
40
of th
e W
isco
nsin
Sta
tute
s. B
enef
itte
rms
may
onl
y be
mod
ified
by
the
legi
slat
ure.
The
retir
emen
t sys
tem
is a
dmin
iste
red
by th
e W
isco
nsin
Dep
artm
ent o
f Em
ploy
ee T
rust
Fun
ds (E
TF).
The
syst
em p
rovi
des
cove
rage
to a
ll el
igib
le S
tate
of
Wis
cons
in, l
ocal
gov
ernm
ent a
nd o
ther
pub
lic e
mpl
oyee
s. A
ll em
ploy
ees,
initi
ally
em
ploy
ed b
y a
parti
cipa
ting
WR
S em
ploy
er o
n or
afte
r Jul
y 1,
201
1, a
nd e
xpec
ted
to w
ork
at le
ast 1
200
hour
s a
year
(880
hou
rs te
ache
rs a
nd s
choo
l dis
trict
edu
catio
nal s
uppo
rt em
ploy
ees)
and
exp
ecte
d to
be
empl
oyed
for
at le
ast o
ne y
ear f
rom
em
ploy
ee’s
dat
e of
hire
are
elig
ible
to p
artic
ipat
e in
the
WR
S.
ETF
issu
es a
sta
ndal
one
Com
preh
ensi
ve A
nnua
l Fin
anci
al R
epor
t (C
AFR
), w
hich
can
be
foun
d at
http
://et
f.wi.g
ov/p
ublic
atio
ns/c
afr.h
tm.
Vest
ing.
For
em
ploy
ees
begi
nnin
g pa
rtici
patio
n on
or a
fter J
anua
ry 1
, 199
0, a
nd n
o lo
nger
act
ivel
yem
ploy
ed o
n or
afte
r Apr
il 24
, 199
8, c
redi
tabl
e se
rvic
e in
eac
h of
five
yea
rs is
requ
ired
for e
ligib
ility
for a
retir
emen
t ann
uity
. Par
ticip
ants
em
ploy
ed p
rior t
o 19
90 a
nd o
n or
afte
r Apr
il 24
, 199
8, a
nd p
rior t
o Ju
ly 1
,20
11, a
re im
med
iate
ly v
este
d. P
artic
ipan
ts w
ho in
itial
ly b
ecam
e W
RS
elig
ible
on
or a
fter J
uly
1, 2
011,
mus
t hav
e fiv
e ye
ars
of c
redi
tabl
e se
rvic
e to
be
vest
ed.
Ben
efits
pro
vide
d. E
mpl
oyee
s w
ho re
tire
at o
r afte
r age
65
(54
for p
rote
ctiv
e oc
cupa
tion
empl
oyee
s, 6
2fo
r ele
cted
offi
cial
s an
d ex
ecut
ive
serv
ice
retir
emen
t par
ticip
ants
, if h
ired
on o
r bef
ore
12/3
1/20
16) a
reen
title
d to
retir
emen
t ben
efit
base
d on
a fo
rmul
a fa
ctor
, the
ir av
erag
e ea
rnin
gs, a
nd c
redi
tabl
e se
rvic
e.
Fina
l ave
rage
ear
ning
s is
the
aver
age
of th
e pa
rtici
pant
's th
ree
high
est a
nnua
l ear
ning
s pe
riod.
Cre
dita
ble
serv
ice
incl
udes
cur
rent
ser
vice
and
prio
r ser
vice
for w
hich
a p
artic
ipan
t rec
eive
d ea
rnin
gsan
d m
ade
cont
ribut
ions
as
requ
ired.
Cre
dita
ble
serv
ice
also
incl
udes
cre
dita
ble
milit
ary
serv
ice.
The
retir
emen
t ben
efit
will
be c
alcu
late
d as
a m
oney
pur
chas
e be
nefit
bas
ed o
n th
e em
ploy
ee's
con
tribu
tions
plus
mat
chin
g em
ploy
er's
con
tribu
tions
, with
inte
rest
, if t
hat b
enef
it is
hig
her t
han
the
form
ula
bene
fit.
Vest
ed p
artic
ipan
ts m
ay re
tire
at a
ge 5
5 (5
0 fo
r pro
tect
ive
occu
patio
ns) a
nd re
ceiv
e an
act
uaria
llyre
duce
d be
nefit
. Par
ticip
ants
term
inat
ing
cove
red
empl
oym
ent p
rior t
o el
igib
ility
for a
n an
nuity
may
eith
erre
ceiv
e em
ploy
ee-re
quire
d co
ntrib
utio
ns p
lus
inte
rest
as
a se
para
tion
bene
fit o
r lea
ve c
ontri
butio
ns o
nde
posi
t and
def
er a
pplic
atio
n un
til e
ligib
le to
rece
ive
a re
tirem
ent b
enef
it.
The
WR
S al
so p
rovi
des
deat
h an
d di
sabi
lity
bene
fits
for e
mpl
oyee
s.
48Draftc
mpl
oye
pec
ted
to w
oec
ted
to w
ot e
mpl
oyee
s) a
ndt e
mpl
oyee
s) a
le to
par
ticip
ate
in th
e to
par
ticip
ate
in
Fina
ncia
l Rep
ort (
CAF
R),
whi
ch c
Rep
ort (
CAF
R),
whi
ch c
patio
n on
or a
fter J
anua
ry 1
, 199
0or
afte
r Jan
uary
1, 1
99ed
itabl
e se
rvic
e in
eac
h of
five
yea
vice
in e
ach
of fi
ve
oyed
prio
r to
1990
and
on
or a
fter
or to
199
0 an
d on
or a
fterti
cipa
nts
who
initi
ally
bec
ame
Ww
ho in
itial
ly b
ecam
e W
Rbl
e se
rvic
e to
be
vest
ed.
serv
ice
to b
e v
oyee
s w
ho re
tire
at o
r afte
r age
65
oyee
s w
ho re
tire
at o
r afte
r aex
ecut
ive
serv
ice
retir
emen
t par
tex
ecut
ive
serv
ice
retir
emen
t pa
enef
it ba
sed
on a
form
ula
fact
oren
efit
base
d on
a fo
rmul
a fa
cto D
vera
ge o
f the
pve
rage
of t
he p
t ser
vice
t s
ervi
ce
Cre
dC
re
A-37
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
(con
t.)
A.
EMPL
OYE
ES' R
ETIR
EMEN
T SY
STEM
(con
t.)
Post
-ret
irem
ent a
djus
tmen
ts. T
he E
mpl
oyee
Tru
st F
unds
Boa
rd m
ay p
erio
dica
lly a
djus
t ann
uity
paym
ents
from
the
retir
emen
t sys
tem
bas
ed o
n an
nual
inve
stm
ent p
erfo
rman
ce in
acc
orda
nce
with
s.40
.27,
Wis
. Sta
t. An
incr
ease
(or d
ecre
ase)
in a
nnui
ty p
aym
ents
may
resu
lt w
hen
inve
stm
ent g
ains
(loss
es),
toge
ther
with
oth
er a
ctua
rial e
xper
ienc
e fa
ctor
s, c
reat
e a
surp
lus
(sho
rtfal
l) in
the
rese
rves
, as
dete
rmin
ed b
y th
e sy
stem
’s c
onsu
lting
act
uary
. Ann
uity
incr
ease
s ar
e no
t bas
ed o
n co
st o
f liv
ing
or o
ther
sim
ilar f
acto
rs. F
or C
ore
annu
ities
, dec
reas
es m
ay b
e ap
plie
d on
ly to
pre
viou
sly
gran
ted
incr
ease
s. B
yla
w, C
ore
annu
ities
can
not b
e re
duce
d to
an
amou
nt b
elow
the
orig
inal
, gua
rant
eed
amou
nt (t
he “f
loor
”)se
t at r
etire
men
t. Th
e C
ore
and
Varia
ble
annu
ity a
djus
tmen
ts g
rant
ed d
urin
g re
cent
yea
rs a
re a
s fo
llow
s:
Year
Cor
e Fu
ndAd
just
men
tVa
riabl
e Fu
ndAd
just
men
t20
09(2
.1)%
(42.
0)%
2010
(1.3
)22
.020
11(1
.2)
11.0
2012
(7.0
)(7
.0)
2013
(9.6
)9.
020
144.
725
.020
152.
92.
020
160.
5(5
.0)
2017
2.0
4.0
2018
2.4
17.0
49Draftar
nly
to p
yhe
orig
inal
, ge
orig
inal
, gnt
s gr
ante
d du
ring
nts
gran
ted
du
ent
ffff
Varia
ble
Fund
Varia
ble
Fund
Adju
stm
ent
Adju
stm
ent ftftftft
1)%
(42.
0)%
(42.
0)(1
.3)
22.02.0
(1.2
)11
.0(7
.0)
(7.0
)(7
.0(7
.0(9
.6)
(9.6 4.7
4.7
01515
2.9
2.9
2016
2016
0.5
2017
201
2.0
201
801
82.
42
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
(con
t.)
A.
EMPL
OYE
ES' R
ETIR
EMEN
T SY
STEM
(con
t.)
Con
trib
utio
ns. R
equi
red
cont
ribut
ions
are
det
erm
ined
by
an a
nnua
l act
uaria
l val
uatio
n in
acc
orda
nce
with
Cha
pter
40
of th
e W
isco
nsin
Sta
tute
s. T
he e
mpl
oyee
requ
ired
cont
ribut
ion
is o
ne-h
alf o
f the
actu
aria
lly d
eter
min
ed c
ontri
butio
n ra
te fo
r Gen
eral
cat
egor
y em
ploy
ees
and
Exec
utiv
es a
nd E
lect
edO
ffici
als.
Sta
rting
on
Janu
ary
1, 2
016,
the
Exec
utiv
es a
nd E
lect
ed O
ffici
als
cate
gory
mer
ged
into
the
Gen
eral
Em
ploy
ee c
ateg
ory.
Req
uire
d co
ntrib
utio
ns fo
r pro
tect
ive
empl
oyee
s ar
e th
e sa
me
rate
as
gene
ral e
mpl
oyee
s. E
mpl
oyer
s ar
e re
quire
d to
con
tribu
te th
e re
mai
nder
of t
he a
ctua
rially
det
erm
ined
cont
ribut
ion
rate
. The
em
ploy
er m
ay n
ot p
ay th
e em
ploy
ee re
quire
d co
ntrib
utio
n un
less
pro
vide
d fo
r by
an e
xist
ing
colle
ctiv
e ba
rgai
ning
agr
eem
ent.
Dur
ing
the
repo
rting
per
iod,
the
WR
S re
cogn
ized
$14
5,32
3 in
con
tribu
tions
from
the
villa
ge.
Con
tribu
tion
rate
s fo
r the
pla
n ye
ar re
porte
d as
of D
ecem
ber 3
1, 2
019
are:
Empl
oyee
Cat
egor
yEm
ploy
eeEm
ploy
er
Gen
eral
(Exe
cutiv
es &
Ele
cted
Offi
cial
s)
6.7%
6.7%
Prot
ectiv
e w
ith S
ocia
l Sec
urity
6.7%
10.7
%
Prot
ectiv
e w
ithou
t Soc
ial S
ecur
ity6.
7%14
.9%
Pens
ion
Liab
ilit y
, Pen
sion
Exp
ense
, Def
erre
d O
utflo
ws
of R
esou
rces
and
Def
erre
d In
flow
s of
Res
ourc
es R
elat
ed to
Pen
sion
s
At D
ecem
ber 3
1, 2
019,
the
villa
ge re
porte
d an
liabi
lity/
(ass
et) o
f $47
5,58
8 fo
r its
pro
porti
onat
e sh
are
ofth
e ne
t pen
sion
liab
ility
/(ass
et).
The
net p
ensi
on li
abili
ty/(a
sset
) was
mea
sure
d as
of D
ecem
ber 3
1, 2
018,
and
the
tota
l pen
sion
liab
ility
used
to c
alcu
late
the
net p
ensi
on li
abili
ty/(a
sset
) was
det
erm
ined
by
anac
tuar
ial v
alua
tion
as o
f Dec
embe
r 31,
201
7 ro
lled
forw
ard
to D
ecem
ber 3
1, 2
018.
No
mat
eria
l cha
nges
in a
ssum
ptio
ns o
r ben
efit
term
s oc
curre
d be
twee
n th
e ac
tuar
ial v
alua
tion
date
and
the
mea
sure
men
tda
te. T
he v
illag
e’s
prop
ortio
n of
the
net p
ensi
on li
abilit
y/(a
sset
) was
bas
ed o
n th
e vi
llage
’s s
hare
of
cont
ribut
ions
to th
e pe
nsio
n pl
an re
lativ
e to
the
cont
ribut
ions
of a
ll pa
rtici
patin
g em
ploy
ers.
At D
ecem
ber
31, 2
018,
the
villa
ge’s
pro
porti
on w
as 0
.013
3679
2%, w
hich
was
an
incr
ease
of 0
.000
9415
8% fr
om it
spr
opor
tion
mea
sure
d as
of D
ecem
ber 3
1, 2
017.
For t
he y
ear e
nded
Dec
embe
r 31,
201
9, th
e vi
llage
reco
gniz
ed p
ensi
on e
xpen
se o
f $29
6,56
2.
50Drafte
mai
nde
aqu
ired
cont
rqu
ired
cont
45,3
23 in
con
tribu
tions
from
in
con
tribu
tions
f
of D
ecem
ber 3
1, 2
019
mbe
r 31,
201
9 ar
e: a
tego
ry
af af af afEmployeeEmployee af af af af
Elec
ted
Offi
cial
s)
Offi
cial
s)
6.7
6.
al S
ecur
ityty
out S
ocia
l Sec
urity
ut S
ocia
l Sec
urity
sion
Exp
ense
, Def
erre
d O
utflo
wsi
on E
xpen
se, D
efer
red
Out
floto
Pen
sion
sto
Pen
llage
llage
repo
rted
repo
rted
ananlia D
The
net p
ensi
oTh
e ne
t pen
sto
cal
cula
to c
alcu
l1,
20
1, 2
A-38
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
(con
t.)
A.
EMPL
OYE
ES' R
ETIR
EMEN
T SY
STEM
(con
t.)
At D
ecem
ber 3
1, 2
019,
the
villa
ge re
porte
d de
ferre
d ou
tflow
s of
reso
urce
s an
d de
ferre
d in
flow
s o f
reso
urce
s re
late
d to
pen
sion
s fro
m th
e fo
llow
ing
sour
ces:
Def
erre
dO
utflo
ws
ofR
esou
rces
Def
erre
dIn
flow
s of
Res
ourc
es
Diff
eren
ces
betw
een
expe
cted
and
act
ual e
xper
ienc
e$
370,
411
$65
4,75
4
Cha
nges
in a
ssum
ptio
ns80
,166
-
Net
diff
eren
ces
betw
een
proj
ecte
d an
d ac
tual
ear
ning
s on
pens
ion
plan
inve
stm
ents
694,
565
-
Cha
nges
in p
ropo
rtion
and
diff
eren
ces
betw
een
empl
oyer
cont
ribut
ions
and
pro
porti
onat
e sh
are
of c
ontri
butio
ns25
57,
944
Empl
oyer
con
tribu
tions
sub
sequ
ent t
o th
e m
easu
rem
ent d
ate
150,
262
-
Tota
ls$
1,29
5,65
9$
662,
698
$150
,262
repo
rted
as d
efer
red
outfl
ows
rela
ted
to p
ensi
on re
sulti
ng fr
om th
e W
RS
Empl
oyer
’sco
ntrib
utio
ns s
ubse
quen
t to
the
mea
sure
men
t dat
e w
ill be
reco
gniz
ed a
s a
redu
ctio
n of
the
net p
ensi
onlia
bilit
y (a
sset
) in
the
year
end
ed D
ecem
ber 3
1, 2
020.
Oth
er a
mou
nts
repo
rted
as d
efer
red
outfl
ows
o fre
sour
ces
and
defe
rred
inflo
ws
of re
sour
cesr
elat
ed to
pen
sion
will
be re
cogn
ized
in p
ensi
on e
xpen
se a
sfo
llow
s:
Year
End
ed
Dec
embe
r 31:
Def
erre
d O
utflo
ws
of R
esou
rces
and
Def
erre
d In
flow
s of
Res
ourc
es (n
et)
2020
$17
4,61
4
2021
42,2
54
2022
76,6
69
2023
189,
162
51DraftR
tttt
$$37
0 80,1
6680
rnin
gs o
n69
4,56
556
twee
n em
ploy
erm
ploy
eof
con
tribu
tions
tion
t to
the
mea
sure
men
t dat
eea
sure
men
t da aaaaa
ferre
d ou
tflow
s re
late
d to
pen
sion
er
red
outfl
ows
rela
ted
to p
ens
nt to
the
mea
sure
men
t dat
e w
ill b
nt to
the
mea
sure
men
t dat
e w
ill ar
end
ed
ar e
nde
Dec
embe
r 31,
202
031
,lo
ws
of re
sour
ces
low
s o
rela
ted
rela
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
(con
t.)
A.
EMPL
OYE
ES' R
ETIR
EMEN
T SY
STEM
(con
t.)
Act
uaria
l ass
umpt
ions
. The
tota
l pen
sion
liab
ility
in th
e D
ecem
ber 3
1, 2
017
actu
aria
l val
uatio
n w
asde
term
ined
usi
ng th
e fo
llow
ing
actu
aria
l ass
umpt
ions
, app
lied
to a
ll pe
riods
incl
uded
in th
em
easu
rem
ent:
Actu
aria
l Val
uatio
n D
ate:
Dec
embe
r 31,
201
7
Mea
sure
men
t Dat
e of
Net
Pen
sion
Lia
bilit
y (A
sset
):D
ecem
ber 3
1, 2
018
Actu
aria
l Cos
t Met
hod:
Entry
Age
Nor
mal
Asse
t Val
uatio
n M
etho
d:Fa
ir Va
lue
Long
-Ter
m E
xpec
ted
Rat
e of
Ret
urn:
7.0%
Dis
coun
t Rat
e:7.
0%
Sala
ry In
crea
ses:
In
flatio
n
S
enio
rity/
Mer
it
3.0%
0.1%
- 5.
6%
Mor
talit
y:W
isco
nsin
201
8 M
orta
lity
Tabl
e
Post
-retir
emen
t Adj
ustm
ents
*:1.
9%
* N
o po
st-r
etire
men
t adj
ustm
ent i
s gu
aran
teed
. Act
ual a
djus
tmen
ts a
re b
ased
on
reco
gniz
ed in
vest
men
tre
turn
, act
uaria
l exp
erie
nce
and
othe
r fac
tors
. 1.9
% is
the
assu
med
ann
ual a
djus
tmen
t bas
ed o
n th
ein
vest
men
t ret
urn
assu
mpt
ion
and
the
post
-ret
irem
ent d
isco
unt r
ate.
Actu
aria
l ass
umpt
ions
are
bas
ed u
pon
an e
xper
ienc
e st
udy
cond
ucte
d in
201
8 th
at c
over
ed a
thre
e-ye
arpe
riod
from
Jan
uary
1, 2
015
to D
ecem
ber 3
1, 2
017.
Bas
ed o
n th
is e
xper
ienc
e st
udy,
act
uaria
las
sum
ptio
ns u
sed
to m
easu
re th
e To
tal P
ensi
on L
iabi
lity
chan
ged
from
prio
r yea
r, in
clud
ing
the
disc
ount
rate
, lon
g-te
rm e
xpec
ted
rate
of r
etur
n, p
ost-r
etire
men
t adj
ustm
ent,
wag
e in
flatio
n ra
te, m
orta
lity
and
sepa
ratio
n ra
tes.
The
Tot
al P
ensi
on L
iabi
lity
for D
ecem
ber 3
1, 2
018
is b
ased
upo
n a
roll-
forw
ard
of th
elia
bilit
y ca
lcul
ated
from
the
Dec
embe
r 31,
201
7 ac
tuar
ial v
alua
tion.
52DraftD En
try
E Fair
Valu
Fair
V
7.0%%
7.0%
7.
just
men
ts*:
ustm
e
Dst
men
t is
guar
ante
ed. A
ctua
stm
ent i
s gu
aran
teed
. an
d ot
her f
acto
rs. 1
.9an
d ot
her f
acto
rs. 1
and
the
post
-ret
iran
d th
e po
st-r
et
on a
non
an
A-39
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
(con
t.)
A.
EMPL
OYE
ES' R
ETIR
EMEN
T SY
STEM
(con
t.)
Long
-term
exp
ecte
d re
turn
on
plan
ass
ets.
The
long
-term
exp
ecte
d ra
te o
f ret
urn
on p
ensi
on p
lan
inve
stm
ents
was
det
erm
ined
usi
ng a
bui
ldin
g-bl
ock
met
hod
in w
hich
bes
t-est
imat
e ra
nges
of e
xpec
ted
futu
re re
al ra
tes
of re
turn
(exp
ecte
d re
turn
s, n
et o
f pen
sion
pla
n in
vest
men
t exp
ense
and
infla
tion)
are
deve
lope
d fo
r eac
h m
ajor
ass
et c
lass
. The
se ra
nges
are
com
bine
d to
pro
duce
the
long
-term
exp
ecte
dra
te o
f ret
urn
by w
eigh
ting
the
expe
cted
futu
re re
al ra
tes
of re
turn
by
the
targ
et a
sset
allo
catio
npe
rcen
tage
and
by
addi
ng e
xpec
ted
infla
tion.
The
targ
et a
lloca
tion
and
best
est
imat
es o
f arit
hmet
ic re
alra
tes
of re
turn
for e
ach
maj
or a
sset
cla
ss a
re s
umm
ariz
ed in
the
follo
win
g ta
ble:
Cor
e Fu
nd A
sset
Cla
ssC
urre
nt A
sset
Allo
catio
n %
Long
-Ter
mEx
pect
edN
omin
al R
ate
of R
etur
n %
Long
-Ter
mEx
pect
edR
eal R
ate
ofR
etur
n %
Glo
bal E
quiti
es
49%
8.
1%
5.5%
Fixe
d In
com
e24
.54.
01.
5
Infla
tion
Sens
itive
Ass
ets
15.5
3.8
1.3
Rea
l Est
ate
96.
53.
9
Priv
ate
Equi
ty/D
ebt
89.
46.
7
Mul
ti-As
set
46.
74.
1
Tota
l Cor
e Fu
nd11
07.
34.
7
Varia
ble
Fund
Ass
et C
lass
U.S
Equ
ities
707.
65.
0
Inte
rnat
iona
l Equ
ities
308.
55.
9
Tota
l Var
iabl
e Fu
nd10
08.
05.
4
New
Eng
land
Pen
sion
Con
sulta
nts
Long
Ter
m U
S C
PI (I
nfla
tion)
For
ecas
t: 2.
5%As
set A
lloca
tions
are
man
aged
with
in e
stab
lishe
d ra
nges
, tar
get p
erce
ntag
es m
ay d
iffer
from
act
ual m
onth
lyal
loca
tions
Sing
le d
isco
unt r
ate.
A s
ingl
e di
scou
nt ra
te o
f 7.0
0% w
as u
sed
to m
easu
re th
e to
tal p
ensi
on li
abilit
y.Th
is s
ingl
e di
scou
nt ra
te w
as b
ased
on
the
expe
cted
rate
of r
etur
n on
pen
sion
pla
n in
vest
men
ts o
f 7.0
0%an
d a
long
term
bon
d ra
te o
f 3.7
1%. B
ecau
se o
f the
uni
que
stru
ctur
e of
WR
S, th
e 7.
00%
exp
ecte
d ra
teof
retu
rn im
plie
s th
at a
div
iden
d of
app
roxi
mat
ely
1.9%
will
alw
ays
be p
aid.
For
pur
pose
s of
the
sing
ledi
scou
nt ra
te, i
t was
ass
umed
that
the
divi
dend
wou
ld a
lway
s be
pai
d. T
he p
roje
ctio
n of
cas
h flo
ws
used
to d
eter
min
e th
is s
ingl
e di
scou
nt ra
te a
ssum
ed th
at p
lan
mem
ber c
ontri
butio
ns w
ill be
mad
e at
the
curre
nt c
ontri
butio
n ra
te a
nd th
at e
mpl
oyer
con
tribu
tions
will
be m
ade
at ra
tes
equa
l to
the
diffe
renc
ebe
twee
n ac
tuar
ially
det
erm
ined
con
tribu
tion
rate
s an
d th
e m
embe
r rat
e. B
ased
on
thes
e as
sum
ptio
ns,
the
pens
ion
plan
’s fi
duci
ary
net p
ositi
on w
as p
roje
cted
to b
e av
aila
ble
to m
ake
all p
roje
cted
futu
re b
enef
itpa
ymen
ts (i
nclu
ding
exp
ecte
d di
vide
nds)
of c
urre
nt p
lan
mem
bers
. The
refo
re, t
he lo
ng-te
rm e
xpec
ted
rate
of r
etur
n on
pen
sion
pla
n in
vest
men
ts w
as a
pplie
d to
all
perio
ds o
f pro
ject
ed b
enef
it pa
ymen
ts to
dete
rmin
e th
e to
tal p
ensi
on li
abilit
y.
53Draftby
on a
ndth
e fo
llow
ing
he fo
llow
ing
set
on %
aaaaLong
-Ter
mLo
ng-T
erm
Expe
cted
Expe
cte
Nom
inal
Rat
em
inal
Rof
Ret
urn
%R
etur
n % aft aft aft aftLo
nEx
peR
eal R
atR
eal R
atR
etur
nR
etur
n ftftftft
49%
8.
1%
8.
1%
24.5
4.0
4.0
15.5
15.5
3.8.8
996.
56.
5
btbt88 4
dd11
011
t Cla
sst C
lass
DDDD
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
(con
t.)
A.
EMPL
OYE
ES' R
ETIR
EMEN
T SY
STEM
(con
t.)
Sens
itivi
ty o
f the
vill
age’
s pr
opor
tiona
te s
hare
of t
he n
et p
ensi
on li
abili
ty/(a
sset
) to
chan
ges
inth
e di
scou
nt ra
te.T
he fo
llow
ing
pres
ents
the
villa
ge’s
pro
porti
onat
e sh
are
of th
e ne
t pen
sion
liabi
lity/
(ass
et) c
alcu
late
d us
ing
the
disc
ount
rate
of 7
.00
perc
ent,
as w
ell a
s w
hat t
he v
illag
e’s
prop
ortio
nate
sha
re o
f the
net
pen
sion
liab
ility/
(ass
et) w
ould
be
if it
wer
e ca
lcul
ated
usi
ng a
dis
coun
t rat
eth
at is
1-p
erce
ntag
e-po
int l
ower
(6.0
0 pe
rcen
t) or
1-p
erce
ntag
e-po
int h
ighe
r (8.
00 p
erce
nt) t
han
the
curre
nt ra
te:
1% D
ecre
ase
toD
isco
unt R
ate
(6.0
0%)
Cur
rent
Dis
coun
tR
ate
(7.0
0%)
1% In
crea
se to
Dis
coun
t Rat
e(8
.00%
)Vi
llage
’s p
ropo
rtion
ate
shar
e of
the
net
pens
ion
liabi
lity/
(ass
et)
$1,8
90,0
39$4
75,5
88$(
576,
165)
Pens
ion
plan
fidu
ciar
y ne
t pos
ition
.Det
aile
d in
form
atio
n ab
out t
he p
ensi
on p
lan’
s fid
ucia
ry n
etpo
sitio
n is
ava
ilabl
e in
sep
arat
ely
issu
ed fi
nanc
ial s
tate
men
ts a
vaila
ble
atht
tp://
etf.w
i.gov
/pub
licat
ions
/caf
r.htm
.
At D
ecem
ber 3
1, 2
019,
the
villa
ge re
porte
d a
paya
ble
to th
e pe
nsio
n pl
an w
hich
repr
esen
ts c
ontra
ctua
llyre
quire
d co
ntrib
utio
ns o
utst
andi
ng a
s of
the
end
of th
e ye
ar.
B.
RIS
K M
AN
AG
EMEN
T
The
villa
ge is
exp
osed
to v
ario
us ri
sks
of lo
ss re
late
d to
torts
; the
ft of
, dam
age
to, o
r des
truct
ion
ofas
sets
; erro
rs a
nd o
mis
sion
s; w
orke
rs c
ompe
nsat
ion;
and
hea
lth c
are
of it
s em
ploy
ees.
All
of th
ese
risks
are
cove
red
thro
ugh
the
purc
hase
of c
omm
erci
al in
sura
nce,
with
min
imal
ded
uctib
les.
Set
tled
clai
ms
have
not
exc
eede
d th
e co
mm
erci
al c
over
age
in a
ny o
f the
pas
t thr
ee y
ears
. The
re w
ere
no s
igni
fican
tre
duct
ions
in c
over
age
com
pare
d to
the
prio
r yea
r.
C.
CO
MM
ITM
ENTS
AN
D C
ON
TIN
GEN
CIE
S
Cla
ims
and
judg
men
ts a
re re
cord
ed a
s lia
bilit
ies
if al
l the
con
ditio
ns o
f Gov
ernm
enta
l Acc
ount
ing
Stan
dard
s Bo
ard
pron
ounc
emen
ts a
re m
et. T
he li
abilit
y an
d ex
pend
iture
for c
laim
s an
d ju
dgm
ents
are
only
repo
rted
in g
over
nmen
tal f
unds
if it
has
mat
ured
. Cla
ims
and
judg
men
ts a
re re
cord
ed in
the
gove
rnm
ent-w
ide
stat
emen
ts a
nd p
ropr
ieta
ry fu
nds
as e
xpen
ses
whe
n th
e re
late
d lia
bilit
ies
are
incu
rred.
From
tim
e to
tim
e, th
e vi
llage
is p
arty
to v
ario
us p
endi
ng c
laim
s an
d le
gal p
roce
edin
gs. A
lthou
gh th
eou
tcom
e of
suc
h m
atte
rs c
anno
t be
fore
cast
ed w
ith c
erta
inty
, it i
s th
e op
inio
n of
man
agem
ent a
nd th
evi
llage
atto
rney
that
the
likel
ihoo
d is
rem
ote
that
any
suc
h cl
aim
s or
pro
ceed
ings
will
have
a m
ater
ial
adve
rse
effe
ct o
n th
e vi
llage
's fi
nanc
ial p
ositi
on o
r res
ults
of o
pera
tions
.
The
villa
ge h
as re
ceiv
ed fe
dera
l and
sta
te g
rant
s fo
r spe
cific
pur
pose
s th
at a
re s
ubje
ct to
revi
ew a
ndau
dit b
y th
e gr
anto
r age
ncie
s. S
uch
audi
ts c
ould
lead
to re
ques
ts fo
r rei
mbu
rsem
ents
to th
e gr
anto
rag
ency
for e
xpen
ditu
res
disa
llow
ed u
nder
term
s of
the
gran
ts. M
anag
emen
t bel
ieve
s su
chdi
sallo
wan
ces,
if a
ny, w
ould
be
imm
ater
ial.
54Dra
ge
Draftin
ooat
ee%
)
fffC
urre
nt D
isco
Cur
rent
DR
ate
(7.0
0%)
Rat
e (7
.00 ftftft
1,89
0,03
9$4
75,5
88$4
75,5
88
aile
d in
form
atio
n ab
out t
he p
ensi
orm
atio
n ab
out t
he p
ens
d fin
anci
al s
tate
men
ts a
vaila
ble
atta
tem
ents
ava
ilabl
e at
D re
porte
d a
paya
ble
to th
e pe
nsd
a pa
yabl
e to
the
pens
ding
as
of th
e en
d of
the
year
.di
ng a
s of
the
end
of th
e ye
ar.
TT
TT
vario
us ri
sks
of lo
ss re
late
vario
us ri
sks
of lo
ss re
; wor
kers
com
pens
a; w
orke
rs c
ompe
nsas
e of
com
mer
cas
e of
com
mer
cal
cov
erag
al c
over
agth
e p
the
p
A-40
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
(con
t.)
C.
CO
MM
ITM
ENTS
AN
D C
ON
TIN
GEN
CIE
S(c
ont.)
In 2
007,
the
villa
ge is
sued
a m
unic
ipal
reve
nue
oblig
atio
n as
par
t of a
dev
elop
men
t agr
eem
ent.
The
amou
nt o
f the
obl
igat
ion
was
$1,
900,
000,
and
is p
ayab
le to
the
deve
lope
r sol
ely
from
tax
incr
emen
tsco
llect
ed fr
om a
spe
cific
por
tion
of th
e de
velo
pmen
t in
TIF
No.
7.
Paym
ents
are
sch
edul
ed th
roug
h th
e ye
ar 2
030,
and
car
ry a
n in
tere
st ra
te o
f 6.5
%. T
he o
blig
atio
n do
esno
t con
stitu
te a
cha
rge
upon
any
fund
s of
the
villa
ge. I
n th
e ev
ent t
hat f
utur
e ta
x in
crem
ents
are
not
suffi
cien
t to
pay
off t
he o
blig
atio
n, th
e ob
ligat
ion
term
inat
es w
ith n
o fu
rther
liab
ility
to th
e vi
llage
. Sin
ceth
e am
ount
of f
utur
e pa
ymen
ts is
con
tinge
nt o
n th
e co
llect
ion
of fu
ture
TIF
incr
emen
ts, t
he o
blig
atio
n is
not r
epor
ted
as a
liab
ility
in th
e ac
com
pany
ing
finan
cial
sta
tem
ents
. The
bal
ance
of t
he c
omm
itmen
tou
tsta
ndin
g at
yea
r end
was
$95
7,53
4.
Dur
ing
2015
, the
Villa
ge o
f Cot
tage
Gro
ve e
nter
ed in
to a
n ag
reem
ent w
ith a
dev
elop
er w
ithin
TID
No.
5.
The
deve
lope
r has
gua
rant
eed
an in
crea
se in
equ
aliz
ed v
alue
of a
t lea
st $
3,40
0,00
0 as
of J
anua
ry 1
,20
16. I
f thi
s ha
ppen
s th
e vi
llage
will
pay
the
deve
lope
r a T
IF in
cent
ive
paym
ent o
f $55
,500
per
yea
r for
ten
year
s st
artin
g in
201
7 an
d en
ding
in 2
026.
The
villa
ge h
as p
aid
$166
,500
as
of D
ecem
ber 3
1, 2
019.
In 2
017,
the
villa
ge is
sued
a m
unic
ipal
reve
nue
oblig
atio
n as
par
t of a
dev
elop
men
t agr
eem
ent.
The
amou
nt o
f the
obl
igat
ion
was
$1,
300,
000,
and
is p
ayab
le to
the
deve
lope
r sol
ely
from
tax
incr
emen
tsco
llect
ed fr
om a
spe
cific
por
tion
of th
e de
velo
pmen
t in
TIF
No.
5.
Paym
ents
are
sch
edul
ed fr
om 2
020
thro
ugh
2024
, and
car
ry a
n in
tere
st ra
te o
f 2.5
%. T
he o
blig
atio
ndo
es n
ot c
onst
itute
a c
harg
e up
on a
ny fu
nds
of th
e vi
llage
. In
the
even
t tha
t fut
ure
tax
incr
emen
ts a
re n
otsu
ffici
ent t
o pa
y of
f the
obl
igat
ion,
the
oblig
atio
n te
rmin
ates
with
no
furth
er li
abilit
y to
the
villa
ge. S
ince
the
amou
nt o
f fut
ure
paym
ents
is c
ontin
gent
on
the
colle
ctio
n of
futu
re T
IF in
crem
ents
, the
obl
igat
ion
isno
t rep
orte
d as
a li
abilit
y in
the
acco
mpa
nyin
g fin
anci
al s
tate
men
ts. T
he b
alan
ce o
f the
com
mitm
ent
outs
tand
ing
at y
ear-e
nd w
as $
1,30
0,00
0. In
tere
st o
n th
e bo
nds
will
accr
ue u
pon
com
plet
ion
of th
e pr
ojec
tin
a s
ubse
quen
t yea
r.
In 2
018,
the
villa
ge e
nter
ed in
to a
n ag
reem
ent w
ith a
dev
elop
er w
ithin
TID
No.
5. T
he d
evel
oper
has
guar
ante
ed a
n in
crea
se in
equ
aliz
ed v
alue
of a
t lea
st $
3,70
0,00
0 by
Dec
embe
r 31,
202
0. If
this
hap
pens
,th
e vi
llage
will
pay
the
deve
lope
r a T
IF in
cent
ive
paym
ent o
f $50
,000
per
yea
r for
eig
ht y
ears
sta
rting
in20
19 a
nd e
ndin
g in
202
6. T
he v
illage
has
pai
d $5
0,00
0 as
of D
ecem
ber 3
1, 2
019.
D.
J OIN
T VE
NTU
RES
The
Villa
ge o
f Cot
tage
Gro
ve a
nd th
e To
wn
of C
otta
ge G
rove
join
tly o
pera
te th
e em
erge
ncy
gove
rnm
ent,
emer
genc
y bu
ildin
g m
aint
enan
ce, a
nd fi
re p
rote
ctio
n di
stric
ts. T
he V
illage
of C
otta
ge G
rove
, Tow
n o f
Cot
tage
Gro
ve, V
illage
of D
eerfi
eld,
and
Tow
n of
Dee
rfiel
d jo
intly
ope
rate
the
loca
l em
erge
ncy
med
ical
serv
ice.
The
gove
rnin
g bo
dies
are
mad
e up
of c
itize
ns fr
om e
ach
com
mun
ity. L
ocal
repr
esen
tativ
es a
reap
poin
ted
by th
e vi
llage
boa
rd. T
he g
over
ning
bod
ies
have
aut
horit
y to
ado
pt th
eir o
wn
budg
ets
and
cont
rol t
he fi
nanc
ial a
ffairs
of t
he d
istri
cts.
The
vill
age
is o
blig
ated
by
the
join
t ven
ture
agr
eem
ents
tore
mit
an a
mou
nt a
nnua
lly to
the
dist
ricts
. The
vill
age
mad
e pa
ymen
ts to
the
dist
ricts
of $
374,
365
in 2
019.
55Draftre
snt
that
t t
with
no
furth
ew
ith n
o fu
rthe
ion
of fu
ture
TIF
inon
of f
utur
e T
stat
emen
ts. T
he b
alan
cte
men
ts. T
he b
a
red
into
an
agre
emen
t with
a d
eve
an a
gree
men
t with
a d
evn
equa
lized
val
ue o
f at l
east
$3,
40ze
d va
lue
of a
t lea
st $
he d
evel
oper
a T
IF in
cent
ive
paym
per a
TIF
ince
ntiv
e pa
ymn
2026
. The
villa
ge h
as p
aid
$166
,vi
llage
has
pai
d $1
cipa
l rev
enue
obl
igat
ion
as p
art o
enue
obl
igat
ion
as p
art o
1,30
0,00
0, a
nd is
pay
able
to th
e d
300,
000,
and
is p
ayab
le to
the
dtio
n of
the
deve
lopm
ent i
n TI
F N
oio
n of
the
deve
lopm
ent
ed fr
om 2
020
thro
ugh
2024
, and
ced
from
202
0 th
roug
h 20
24, a
nd D
arge
upo
n an
y fu
nds
of th
e vi
lar
ge u
pon
any
fund
s of
ig
atio
n, th
e ob
ligat
ion
ter
igat
ion,
the
oblig
atio
nts
is c
ontin
gent
on
tts
is c
ontin
gent
on
acco
mpa
nyin
gac
com
pany
ing D
00,0
00. I
n00
,000
. In
VILL
AGE
OF
CO
TTAG
E G
RO
VE
NO
TES
TO F
INAN
CIA
L ST
ATEM
ENTS
As o
f and
for t
he Y
ear E
nded
Dec
embe
r 31,
201
9
NO
TE IV
- O
THER
INFO
RM
ATI
ON
(con
t.)
D.
JOIN
T VE
NTU
RES
(con
t.)
Fina
ncia
l inf
orm
atio
n of
the
dist
ricts
as
of D
ecem
ber 3
1, 2
019
is a
vaila
ble
dire
ctly
from
the
dist
ricts
'of
fice.
The
villa
ge a
ccou
nts
for i
ts s
hare
of t
he o
pera
tion
of a
ll jo
int v
entu
res
in th
e ge
nera
l fun
d. T
he v
illage
has
an e
quity
inte
rest
in th
e EM
S di
stric
t; ho
wev
er, t
he e
quity
inte
rest
is n
ot m
ater
ial a
nd, c
onse
quen
tly,
is n
ot re
porte
d in
thes
e fin
anci
al s
tate
men
ts.
The
villa
ge d
oes
not h
ave
an e
quity
inte
rest
in th
e ot
her j
oint
ven
ture
s.
E.E F
FEC
TO
F N
EW A
CC
OU
NTI
NG
STA
ND
AR
DS
ON
CU
RR
ENT-
PER
IOD
FIN
AN
CIA
L ST
ATE
MEN
TS
The
Gov
ernm
enta
l Acc
ount
ing
Stan
dard
s Bo
ard
(GAS
B) h
as a
ppro
ved
the
follo
win
g:
Stat
emen
t No.
87,
Lea
ses
Stat
emen
t No.
89,
Acc
ount
ing
for I
nter
est C
ost I
ncur
red
befo
re th
e E
nd o
f a C
onst
ruct
ion
Per
iod
Stat
emen
t No.
91,
Con
duit
Deb
t Obl
igat
ions
Whe
n th
ey b
ecom
e ef
fect
ive,
app
licat
ion
of th
ese
stan
dard
s m
ay re
stat
e po
rtion
s of
thes
e fin
anci
alst
atem
ents
.
56Draftre
s
oint
ven
ture
s.nt
ven
ture
s.
CU
RR
ENT-
P-PTER
IOD
ERIO
PPP F
DIN
AN
CIA
LA
NC
IAL
F SS
TATA
ard
(GAS
B) h
as a
ppro
ved
the
follo
B) h
as a
ppro
ved
th
coun
ting
for I
nter
est C
ost I
ncur
red
for I
nter
est C
ost I
ncur
red
. 91,
9
1, C
ondu
it D
ebt O
blig
atio
nsC
ondu
it D
ebt O
blig
atio
ns
tive,
app
licat
ion
of th
ese
sta
tive,
app
licat
ion
of th
es
A-41
R E
Q U
I R
E D
S
U P
P L
E M
E N
T A
R Y
I N
F O
R M
A T
I O
N
Draft
M E
N T
A R
Y
I N F
O R
M A
T I
R Y
I N
F O
R M
A T
I
VILL
AGE
OF
CO
TTAG
E G
RO
VE
DET
AILE
D S
CH
EDU
LE O
F R
EVEN
UES
, EXP
END
ITU
RES
, AN
D C
HAN
GES
IN F
UN
D B
ALAN
CE
- BU
DG
ET A
ND
AC
TUAL
- G
ENER
AL F
UN
DFo
r the
Yea
r End
ed D
ecem
ber 3
1, 2
019
Orig
inal
and
Fina
l Bud
get
Actu
alVa
rianc
e w
ithFi
nal B
udge
tR
EVEN
UES
TAXE
SG
ener
al p
rope
rty ta
xes
$3,
012,
302
$3,
129,
327
$11
7,02
5
INTE
RG
OVE
RN
MEN
TAL
REV
ENU
ESSt
ate
shar
ed re
venu
es46
,270
61,2
7715
,007
Fire
insu
ranc
e ta
x fro
m s
tate
25,0
0030
,317
5,31
7St
ate
aid
- rec
yclin
g9,
000
9,66
366
3St
ate
aid
- tra
nspo
rtatio
n37
0,31
137
0,14
1(1
70)
Stat
e ai
d - e
xem
pt c
ompu
ters
2,20
02,
471
271
Tow
n ai
d - r
ecre
atio
n5,
000
18,2
8213
,282
Tota
l Int
ergo
vern
men
tal R
even
ues
457,
781
492,
151
34,3
70
LIC
ENSE
S A
ND
PER
MIT
SLi
quor
and
mal
t bev
erag
e lic
ense
s9,
000
9,54
554
5O
pera
tors
' lic
ense
3,50
03,
880
380
Dog
and
cat
lice
nses
1,30
01,
384
84C
igar
ette
lice
nses
350
350
-Si
gn p
erm
its75
090
015
0Bu
ildin
g pe
rmits
75,6
0036
,631
(38,
969)
Elec
trica
l per
mits
20,0
0014
,768
(5,2
32)
Plum
bing
per
mits
20,0
0010
,874
(9,1
26)
Hea
ting
perm
its20
,000
12,1
18(7
,882
)O
ther
lice
nses
and
per
mits
37,1
0034
,220
(2,8
80)
Tota
l Lic
ense
s an
d Pe
rmits
187,
600
124,
670
(62,
930)
FIN
ES, F
OR
FEIT
UR
ES, A
ND
PEN
ALT
IES
Law
and
ord
inan
ce v
iola
tions
24,0
0037
,050
13,0
50C
ourt
pena
lties
and
cos
ts12
,000
21,1
529,
152
Tota
l Fin
es, F
orfe
iture
s, a
nd P
enal
ties
36,0
0058
,202
22,2
02
PUB
LIC
CH
AR
GES
FO
R S
ERVI
CES
Rec
reat
ion
prog
ram
s11
4,80
519
3,57
578
,770
Park
fees
6,60
08,
664
2,06
4Pu
blic
wor
ks fe
es6,
500
8,64
22,
142
Cle
rk fe
es3,
500
3,62
012
0W
eed
and
nuis
ance
con
trol
200
-(2
00)
Eros
ion
cont
rol f
ees
-1,
524
1,52
4R
efus
e an
d ga
rbag
e co
llect
ion
800
2,13
51,
335
Rec
yclin
g11
3,50
611
2,78
3(7
23)
Mis
cella
neou
s fe
es15
,200
5,75
5(9
,445
)Sc
hool
liai
son
offic
er70
,750
69,3
46(1
,404
)C
able
tele
visi
on12
,000
12,4
1641
6To
tal P
ublic
Cha
rges
for S
ervi
ces
343,
861
418,
460
74,5
99
See
inde
pend
ent a
udito
rs' r
epor
t and
acc
ompa
nyin
g no
tes
to re
quire
d su
pple
men
tary
info
rmat
ion.
57Draft25
,0 9,00
09
370,
311
370,
311
2,20
02,
200
5,00
05,
000 ftft
457,
781
457,
781 ftft
9,00
000
03,
5000
1,30
01,
30 33
mits
mits
mits
mits
ALT
IES
ALT
IES
A-42
VILL
AGE
OF
CO
TTAG
E G
RO
VE
DET
AILE
D S
CH
EDU
LE O
F R
EVEN
UES
, EXP
END
ITU
RES
, AN
D C
HAN
GES
IN F
UN
D B
ALAN
CE
- BU
DG
ET A
ND
AC
TUAL
- G
ENER
AL F
UN
DFU
ND
For t
he Y
ear E
nded
Dec
embe
r 31,
201
9
Orig
inal
and
Fina
l Bud
get
Actu
alVa
rianc
e w
ithFi
nal B
udge
t
INVE
STM
ENT
INC
OM
EIn
tere
st o
n in
vest
men
ts$
18,0
00$
4,76
8$
(13,
232)
Inte
rest
on
delin
quen
t tax
es1,
000
262
(738
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For t
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Dec
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r 31,
201
9
BU
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INFO
RM
ATI
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Budg
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form
atio
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ived
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s de
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ts w
ere
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ted
durin
g th
e ye
ar. T
he v
illage
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aut
horiz
e tra
nsfe
rs o
f bud
gete
d am
ount
s w
ithin
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artm
ents
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ts a
nd c
hang
es to
the
over
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udge
t mus
t be
appr
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o-th
irds
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tions
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e at
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r-end
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ifica
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er. T
here
wer
e no
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efo
llow
ing
year
. Bu
dget
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e ad
opte
d at
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ct le
vel o
f exp
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.
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CO
NSI
N R
ETIR
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T SY
STEM
The
amou
nts
dete
rmin
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h fis
cal y
ear w
ere
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rmin
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s of
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ithin
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l yea
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s al
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s m
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are
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n fis
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ears
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pre
sent
ed.
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nges
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enef
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rms.
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re w
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hang
es o
f ben
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term
s fo
r any
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ticip
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cons
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ns. A
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ased
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clud
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ount
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pos
t-ret
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d se
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s.
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ent a
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wer
Ther
e w
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term
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le u
ntil
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fisca
l yea
r
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wer
e no
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nges
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it te
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e w
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f ben
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m.
em.
nss. A
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re b
a. A
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ased
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4-
-7,
295
--
223
--
114,
401
--
44,6
38-
2,01
782
,036
-2,
017
126,
674
-(2
,017
)(1
2,27
3)
--
(117
,025
)-
-(1
17,0
25)
-(2
,017
)(1
29,2
98)
--
(435
,698
)
$-
$(2
,017
)$
(564
,996
)
67Draft
44,6
3882
,036 Dr
126,
674
126 Dr
017)
017)
D(1
2,27
3)3) Dr
(117
,025
)(1
17,0
25) DD
(117
,025
)(1
17,0
25) D
A-46
VILLAGE OF COTTAGE GROVECottage Grove, Wisconsin
FINANCIAL STATEMENTS
lncluding lndependent Auditors' Report
As of and for the Year Ended December 31,2018
A-47
VILLAGE OF COTTAGE GROVE
TABLE OF CONTENTSAs of and for the Year Ended December 31, 201 I
lndependent Auditors' Report
Required Supplementary lnformation
Management's Discussion and Analysis
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Frnancial Statements
Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds to the Statement ofNet Position
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position - ProprietaryFunds
Statement of Cash Flows - Proprietary Funds
Statement of Assets and Liabilities - Agency Fund
lndex to Notes to Financial Statements
Notes to Financial Statements
Required Supplementary lnformation
Detailed Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual - General Fund
Schedule of Proportionate Share of the Net Pension Liability/(Asset)
Schedule of Employer Contributions
Notes to Required Supplementary lnformation
Supplementary lnformation
Combining Balance Sheet - Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -. Nonmajor Governmental Funds
Page(s)
i-ii
iii - xiv
1
2-3
4-5
6
7 -8
o
10-11
12
13-14
15
16
17 -54
55-57
58
58
59
60 - 6'1
62-63
A-48
G bakertitly
INDEPENDENT AUDITORS' REPORT
To the Village BoardVillage of Cottage GroveCottage Grove, Wisconsin
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the Village of Cottage Grove,Wisconsin, as of and for the year ended December 31 ,2018, and the related notes to the financial statements,which collectively comprise the Village of Cottage Grove's basic financial statements as listed in the table ofcontents.
M an agem enf 3 Respon s i bi I ity for th e F i n a n ci a I Stafemenfs
Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of financialstatements that are free from material misstatement, whether due to fraud or error.
A u d ito rs' Resp o n s i bi I ity
Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditors' judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. ln making those riskassessments, the auditor considers internal control relevant to the Village of Cottage Grove's preparation andfair presentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness of the Village of CottageGrove's internal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimates madeby management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinions.
Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the membersof which are separate and independent legal entities. @ 2018 Baker Tilly Virchow Krause, LLP
A-49
Opinions
ln our opinion, the financial statements referred to abovepresent fairly, in all material respects, the respectivefinancial position of the governmental activities, the business-type activities, each major fund, and the aggregateremainrng fund information of the Village of Cottage Grove, Wisconsin, as of December 31 , 2018 and therespective changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note lll.H. to the financial statements, cash and cash equivalents reported in the statement ofcash flows as of December 31 ,2017 have been restated to correct a material misstatement. Our opinions arenot modified with respect to this matter.
Other Matters
Req u i red S u ppleme ntary I nform ation
Accounting principles generally accepted in the United States of America require that the required supplementaryinformation as listed in the table of contents be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the Governmental AccountingStandards Board who considers it to be an essential part of financial reporting for placing the basic financialstatements in an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standards generally acceptedin the United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any assurance on the information because the limited procedures donot provide us with sufficient evidence to express an opinion or provide any assurance.
S upple me nta ry I nformation
Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Village of Cottage Grove's basic financial statements. The supplementary information as listed in
the table of contents is presented for purposes of additional analysis and is not a required part of the basicfinancial statements. Such information is the responsibility of management and was derived from and relatesdirectly to the underlying accounting and other records used to prepare the basic financial statements. Theinformation has been subjected to the auditing procedures applied in the audit of the basic financial statementsand certain additional procedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the basic financial statements or to the basic financial statementsthemselves, and other additional procedures in accordance with auditing standards generally accepted in theUnited States of America. ln our opinion, the supplementary information is fairly stated in all material respects, in
relation to the basic financial statements as a whole.
6^laAfLgl/,"/d*f """-)lteMadison, WisconsinMay 30, 2019
A-50
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
MA
NA
GE
ME
NT
'S D
ISC
US
SIO
N
AN
D A
NA
LYS
IS(U
naud
ited)
Pre
pare
d by
: M
atl G
iese
, A
dmin
istr
ator
and
Deb
\M
nter
, T
reas
urer
The
man
agem
ent
of t
he V
illag
e of
Cot
tage
Gro
ve (
the
"vill
age"
) of
fers
all
pers
ons
inte
rest
ed in
the
finan
cial
pos
ition
of
lhe
villa
ge t
his
gene
ral o
verv
iew
of
the
villa
ge's
fin
anci
al p
erfo
rman
ce
durin
g th
efis
cal y
eare
ndin
gonD
ecem
ber3
l,20l
S.
Ple
aser
eadt
hisr
epor
tinco
njun
ctio
nwith
thev
illag
e's
finan
cial
sta
tem
ents
.
FIN
AN
CIA
L H
IGH
LIG
HT
S
The
fol
low
ing
are
som
e ev
ents
tha
t ha
ve h
ad a
n im
pact
on
the
villa
ge's
201
8 fin
anci
als:
The
fol
low
ing
are
som
e ev
ents
tha
t ha
ve h
ad a
n im
pact
on
the
villa
ge's
201
8 fin
anci
als:
> T
ax in
crem
enta
l di
stric
t (#
5) i
nfra
stru
ctur
e w
as c
ompl
eted
in 2
006
and
at t
he e
nd o
f 20
18 t
heva
lue
of la
x in
crem
ent
in t
he d
istr
ict
is $
47,8
04,0
00.
At
the
end
of 2
0'18
, vi
llage
ow
ned
parc
els
in C
omm
erce
Par
k ar
e do
wn
to a
bout
17
acre
s. T
he V
illag
e B
oard
am
ende
d T
ID #
5 in
201
3to
hel
p po
tent
ially
spu
r de
velo
pmen
t an
d to
incl
ude
addi
tiona
l ac
reag
e in
to t
he T
lD.
The
amen
dmen
t al
low
s io
r an
add
ition
al $
2.2
mill
ion
in p
roje
ct c
osts
and
is e
stim
ated
to p
rovi
dean
add
ition
al $
13 m
illio
n in
new
inc
rem
ent
by t
he e
nd o
f th
e di
stric
t's li
fe i
n 20
26.
The
vill
age
clos
ed o
n a
larg
e de
velo
pmen
t de
al w
ith S
umm
it C
redi
t U
nion
in
TID
#5
in 2
017.
Sum
mit
Cre
dit
Uni
on is
mov
ing
thei
r co
rpor
ate
head
quar
ters
to
the
Vill
age
of C
otta
ge G
rove
and
will
be o
pera
tiona
l in
2019
. S
umm
il's
deve
lopm
ent
agre
emen
t pr
ovid
es fo
r a
guar
ante
ed
valu
e of
$20M
of
prop
erty
val
ue.
o T
he v
illag
e al
so e
nter
ed in
lo a
dev
elop
men
t ag
reem
ent
with
Gre
ywol
t P
rope
rtie
s (t
hene
w p
rope
rty
owne
r) l
o m
ake
inve
stm
ents
int
o th
e fo
rmer
Ghi
dozi
Bui
ldin
g. T
heag
reem
ent
guar
ante
es t
he v
illag
e an
add
ition
al $
'1.3
M o
f pr
oper
ty v
alue
. G
reyw
olf
anno
unce
d'th
at t
hey
wou
ld b
e m
ovin
g th
eir
offic
es in
to t
he b
uild
ing,
as
wel
l as
add
ing
BB
Jac
k's,
a b
ar a
nd r
esla
uran
t, in
the
bui
ldin
g.o
Jim
my
John
's r
esta
uran
t be
gan
cons
truc
tlon
in C
omm
erce
Par
k, n
ext
door
(so
uth)
to
Cul
veds
.o
The
vill
age
clos
ed o
n a
land
sal
e w
ith O
akst
one
Rec
reat
iona
l F
acili
iy t
o co
nslru
ct a
bar,
res
taur
ant,
and
indo
or a
nd o
utdo
or
volle
ybal
l. C
onst
ruct
ion
lo b
egin
in
2019
.
> T
hree
new
Tax
lncr
emen
i D
istr
icts
wer
e ad
ded
in 2
018:
TID
#8
(loca
ted
on w
est
Cot
tage
Gro
ve R
d in
the
"C
oyle
" de
velo
pmen
t ar
ea);
TID
#9
(loca
ted
sout
h of
Vill
age
Hal
l, ov
erla
ying
mos
l of
TID
#6,
and
ext
endi
ng
wes
t on
Col
tage
Gro
ve R
oad
to l
he f
orm
er U
W C
linic
bui
ldin
g);
and
TID
#10
(lo
cate
d no
rth
of In
lers
tate
l-9
4, e
ncom
pass
ing
abou
l 24
0+ a
cres
). A
ll th
ree
disi
ricts
hav
e a
2o-y
ear
life.
>
Eco
nom
y (R
esid
enlia
l) -
the
villa
ge h
ad 2
0 ne
w h
ouse
sta
rts,
val
ued
at $
7,45
1,31
4. T
hevi
llage
als
o ha
d bu
ildin
g pe
rmits
tak
en o
ut f
or v
ario
us a
dditi
ons/
rem
odel
s at
a v
alue
of
$1 ,
681,
737.
> E
cono
my
(Com
mer
cial
) -
ther
e w
ere
l5 c
omm
erci
al p
erm
its ta
ken
out,
brin
ging
a v
alue
of
$31,
903,
000
into
the
vill
age.
OV
ER
VIE
W O
F T
HE
FIN
AN
CIA
L S
TA
TE
ME
NT
The
fin
anci
al s
tate
men
ts
cons
ist
of t
he f
ollo
win
q pa
rts:
1 .)
M
anag
emen
l's d
iscu
ssio
n an
d an
alys
is2.
\ B
asic
Fin
anci
al
Sta
tem
ents
:a.
) G
over
nmen
twid
e F
inan
cial
S
tate
men
tsb.
) F
und
Fin
anci
al
Sla
lem
enls
c.)
Not
es t
o ih
e F
inan
cial
S
tate
men
ts3.
) R
equi
reds
uppl
emen
lary
info
rmal
ion
4.)
Com
bini
ng
Bal
ance
S
heet
- N
on-m
ajor
Gov
ernm
enta
l Fun
ds5.
) C
ombi
ning
Sta
tem
ent
of R
even
ues,
E
xpen
ditu
res
and
Cha
nges
to F
und
Bal
ance
s -
Non
-maj
or
Gov
ernm
enta
l F
unds
The
bas
ic f
inan
cial
sta
tem
ents
inc
lude
tw
o ki
nds
of s
tate
men
ts t
hat
pres
ent
diffe
rent
vie
ws
of t
hevi
llage
. T
he f
irst
two
stal
emen
ts a
re g
over
nmen
t-w
ide
finan
cial
sta
tem
ents
tiat
pro
vide
bot
h lo
ng-
term
and
sho
rt{e
rm i
nfor
mat
ion
abou
tthev
illag
e's
over
allfi
nanc
ial
stal
us.
The
rem
aini
ng
stat
emen
tsar
e fu
nd f
inan
cial
sta
tem
enls
tha
t fo
cus
on in
divi
dual
par
ts o
f th
e vi
llage
gov
ernm
ent
and
repo
rt t
hevi
llage
's o
pera
tions
in m
ore
deta
il th
an t
he g
over
nmen
t-w
ide
stat
emen
ts.
The
fin
anci
al s
tate
men
ls a
lso
incl
ude
note
s lh
at e
xpla
in s
ome
of t
he i
nfor
mai
ion
in t
he fi
nanc
ial
slat
emen
ts a
nd p
rovi
de m
ore
deta
iled
data
. T
he s
tate
men
ls a
re f
ollo
wed
by
a se
ctio
n of
req
uire
dsu
pple
men
lary
inf
orm
atio
n th
at f
urth
er e
xpla
ins
and
supp
orts
the
inf
orm
atio
n fo
und
in t
he f
inan
cial
stal
emen
ts.
ln a
dditi
on t
o th
ese
requ
ired
elem
ents
, a
secl
ion
is i
nclu
ded
with
com
bini
ng
stat
emen
tsth
at p
rovi
des
deta
ils a
bout
our
non
-maj
or g
over
nmen
t fu
nds.
The
non
-maj
or f
unds
are
add
edto
geth
er a
nd p
rese
nted
in
sin
gle
colu
mns
in t
he b
asic
fin
anci
al s
tate
men
ts.
Gov
ernm
ent-
Wid
e F
inan
cial
Sta
tem
en's
ln t
his
sect
ion
of t
he a
udit
repo
rt y
ou w
ill f
ind
info
rmat
ion
abou
t lh
e re
port
ing
gove
rnm
envv
illag
e as
aw
hole
. lt
also
dis
tingu
ishe
s be
twee
n go
vern
men
tal
and
busi
ness
-lype
act
iviti
es -
gove
rnm
enla
l fo
rex
ampl
e ar
e fin
ance
d th
roug
h ta
xes,
int
ergo
vern
men
tal
reve
nues
or
othe
r ty
pes
of r
even
ue.
ln lh
ebu
sine
ss{y
pe a
ctiv
ity a
fee
is u
sual
ly a
ssoc
iate
d w
ith t
he a
ctiv
ity.
Thi
s se
ctio
n do
es n
ol p
rovi
de t
he d
etai
l of
the
Fun
d F
inan
cial
Sta
tem
ents
but
inst
ead
com
bine
s th
eac
tivity
in
to a
n ov
ervi
ew
of t
he t
rans
actio
ns t
hat
have
hap
pene
d ov
er l
he y
ear.
lt
does
not
, ho
wev
er,
incl
ude
Fid
ucia
ry
Fun
ds w
hich
are
sho
wn
in t
he F
und
Fin
anci
al S
tate
men
ls
sect
ion
of t
he a
udit
repo
rt.
The
Sta
tem
ent
of N
et P
ositi
on g
ives
the
rea
der
the
abili
ty t
o se
e w
hat
has
impa
cted
th
e V
illag
e's
asse
ts o
ver
the
past
yea
r. T
his
Sta
tem
ent
also
tak
es i
nto
acco
unt
any
libbi
litie
s th
at t
he v
illag
e ha
sor
may
hav
e in
curr
ed
over
the
yea
r th
at i
s st
ill o
utst
andi
ng a
i ye
ar e
nd.
lt is
a g
ood
indi
cato
r of
the
over
all
heal
th o
f th
e vi
llage
and
its
econ
omy.
Thi
s re
porl
usua
lly d
efin
es t
he m
ajor
cat
egor
ies
with
inth
e vi
llage
- G
ovem
men
tal
Act
iviti
es a
rc b
asic
ser
vice
s pr
ovid
ed b
y th
e vi
llage
suc
h as
pol
ice,
fire
,pu
blic
wor
ks,
park
s, e
tc.
Bus
ines
s-T
ype
Act
iviti
es a
re s
ervi
ces
prov
ided
tha
t ar
e or
may
be
oper
aied
in a
mor
e bu
sine
ss-li
ke
man
ner
- se
wer
and
wat
er u
tiliti
es.
iii
A-51
Fun
d F
inan
cial
Sta
tem
en's
ln t
his
sect
ion
of t
he a
udit
repo
rt i
ndiv
idua
l fu
nds
are
iden
tifie
d an
d re
port
ed i
n gr
eate
r de
tail.
lndi
vidu
al f
unds
pro
vide
for
an
acco
unlin
g m
echa
nism
th
at a
llow
s th
e vi
llage
to
keep
tra
ck o
f re
venu
esan
d ex
pend
iture
s by
a s
peci
fic p
urpo
se o
r ty
pe.
Eac
h of
the
se f
unds
is
cons
ider
ed a
sep
arat
eac
coun
ting
entit
y. E
ach
has
its o
wn
acco
unl
stru
ctur
e in
clud
ing
asse
ts,
liabi
litie
s, e
quily
, re
venu
ean
d ex
pens
e ac
coun
ts.
ln t
he m
ost
rece
nt u
pdat
es to
acc
ount
ing
and
audi
t pr
actic
es
the
audi
t re
porl
reco
gniz
es
maj
or a
ndno
n-m
ajor
go
vern
men
tal
fund
s.
MA
JOR
GO
VE
RN
ME
NT
AL
FU
ND
S
Gen
enl
Fun
d -
Fun
d #'
100,
thi
s fu
nd is
com
pris
ed
of a
ll th
e da
y-to
-day
op
erat
iona
l rev
enue
an
dex
pend
ilure
acc
ount
s fo
r th
e vi
llage
.
Gen
eral
D
ebt
SeN
ice
Fun
d -
Fun
d #3
00,
this
fun
d is
use
d to
rec
ord
and
trac
k al
l in
tere
st a
ndpr
inci
pal
paym
ents
m
ade
on d
ebt
thal
the
vill
age
has
incu
rred
.
TIF
Dis
tict
#5 -
Fun
d #4
05,
a fu
nd r
equi
red
to r
ecor
d th
e ex
pens
es a
nd r
even
ues
pert
aini
ng
toth
is D
istr
ict.
Tax
lncr
emen
tal F
inan
cing
Dis
tric
t -
#7 -
Fun
d #4
07,
this
fun
d w
as c
reat
ed (
base
yea
r 20
05)
for
the
purp
ose
ot p
rovi
ding
fun
ding
for
infr
astr
uctu
re a
nd r
oadw
ay i
mpr
ovem
ents
to
the
sout
hen
tran
ce in
to t
he v
illag
e on
Cou
nty
Hw
y. N
/Sou
th
Mai
n S
tree
t.
Cap
ital P
roje
cts
-Fun
d #4
1 0,
thi
s fu
nd is
use
d to
acc
ount
for
fin
anci
ng
sour
ces
and
expe
nditu
res
rela
ted
to g
ener
al c
apita
l im
prov
emen
ts t
o vi
llage
bui
ldin
gs a
nd in
fras
truc
ture
as
wel
l as
equi
pmen
t pu
rcha
ses.
NO
N.M
AJO
R G
OV
ER
NM
EN
TA
L F
UN
DS
SP
EC
IAL
RE
VE
NU
E
FU
ND
S
' C
able
TV
Fun
d -F
und#
201,
thi
s fu
nd r
epre
sent
s th
e op
erat
ions
of
the
villa
ge C
able
TV
Cha
nnel
,th
e vi
llage
Web
site
, as
wel
l as
vill
age
Pub
lic R
elat
ions
an
d M
arke
ting.
Fun
ding
is
fro
m f
ranc
hise
fees
pai
d by
the
vill
age'
s ca
ble
prov
ider
.
. P
ark
Dev
elop
men
t F
ees
- F
und
#205
, th
is f
und
is s
olel
y su
ppor
ted
by f
ees
paid
by
deve
tope
rsfo
r ne
w p
arks
eith
er d
edic
ated
lo
the
vill
age
or f
ees
in l
ieu
of d
edic
atio
n to
the
vill
age.
Dev
elop
er D
epos
its -
Fun
d #2
10,
this
fun
d re
pres
ents
th
e ac
tivity
for
dev
elop
men
ts p
rovi
ded
bypr
ofes
sion
al
serv
ices
(la
wye
r, en
gine
er,
plan
ning
) w
hich
are
the
n bi
lled
back
to
each
dev
elop
er.
Tre
e F
und
- F
und#
202,
lhi
s fu
nd w
as s
et u
p fo
r th
e V
illag
e of
Cot
tage
Gro
ve t
o m
ainl
ain
its T
ree
City
US
A s
tand
ing
alon
g w
ith a
llow
ing
for
mai
nten
ance
of
the
vill
age'
s pu
blic
env
ironm
enta
l ar
eas.
The
vill
age
levi
es a
spe
cific
dol
lar
amou
nl e
ach
year
bas
ed o
n po
pula
tion
to t
his
fund
for
the
purp
ose
of p
lant
ing
irees
thr
ough
out
the
villa
ge.
ll is
als
o us
ed t
o co
llecl
fee
s fr
om d
evel
oper
sfo
r tr
ees
requ
ired
with
in a
giv
en p
lat.
The
Vill
age
then
is
resp
onsi
ble
for
lhe
purc
hase
, pl
antin
gan
d m
aint
enan
ce
of t
hese
tre
es.
CA
PIT
AL
PR
OJE
CT
FU
ND
. T
ax l
ncre
men
tal
Fin
anci
ng D
istic
t #6
- F
und
tt406
, th
is f
und
was
cre
ated
(ba
se y
ear
2005
) fo
rth
e pu
rpos
e of
pro
vidi
ng
fund
ing
for
infr
astr
uctu
re f
or t
he p
ropo
sed
dow
ntow
n ar
ea a
s w
ell
ashi
ghw
ay
impr
ovem
ents
to
Cou
nty
Hw
y. N
.
The
vill
age
mai
nlai
ns a
nd a
dopt
s bu
dget
s fo
r ea
ch o
f th
e fu
nds
lisle
d w
ith t
he e
xceP
tion
of t
heD
evel
oper
Dep
osiis
Fun
d w
hich
was
set
up
to r
ecor
d ex
pens
es a
nd p
aym
enis
rel
ativ
e to
spe
cific
deve
lopm
ents
.
Pro
prie
tary
or
Ent
erpr
ise
Fun
ds -
The
se iu
nds
dist
ingu
ish
oper
atin
g re
venu
es a
nd e
xpen
ses
from
non-
oper
aiin
q ite
ms.
Ope
ratin
g re
venu
es
and
expe
nses
ge
nera
lly
resu
lt fr
om p
rovi
ding
se
rvic
es a
ndpr
oduc
ing
or d
eliv
erin
g of
goo
ds.
The
vill
age
prop
rieta
ry
fund
s ar
e its
Pub
lic S
ewer
and
Pub
lic W
aler
Util
ities
. ln
the
villa
ge's
Fin
anci
al S
tale
men
ts t
hese
fun
ds a
re r
epor
led
unde
r "B
usin
ess-
Typ
eA
ctiv
ities
-
Ent
erpr
ise
Fun
ds".
Fol
low
ing
the
dela
iled
finan
cial
re
port
ing
on t
he v
ario
us f
unds
and
fun
d ly
pes,
the
Fin
anci
al S
taie
men
tth
en p
rovi
des
a se
ries
of n
arra
tives
an
d/or
fur
ther
exp
lana
tions
in
the
Not
es t
o F
inan
cial
Sta
tem
ents
.V
Mth
in t
hese
not
es t
he s
tate
men
i pr
ovid
es i
nsig
ht i
nio
the
finan
cial
inf
orm
atio
n w
hich
had
bee
npr
ovid
ed e
arlie
r in
the
sta
tem
ent
such
as
Res
tric
ted
Ass
ets.
An
inde
x of
the
se n
otes
is
prov
ided
with
in t
he S
tate
men
t.
Fot
low
ing
the
Not
es t
o F
inan
cial
Sta
tem
ents
, O
ther
lnf
omat
ion
is p
rovi
ded
whi
ch i
s re
quire
dsu
ppte
men
tary
in
form
atio
n.
Thi
s su
pple
men
tary
in
form
atio
n pr
esen
ts a
det
aile
d bu
dget
ary
com
paris
onsc
hedu
lefo
rthe
gene
ralfu
ndto
dem
onst
rate
com
plia
ncew
ithlh
ebud
get.
The
com
bini
ngst
atem
enls
re
ferr
ed t
o ea
rlier
in
conn
ectio
n w
ith N
on-m
aior
gov
ernm
enta
l fu
nds
are
pres
ente
d
imm
edia
tely
fo
llow
ing
the
requ
ired
supp
lem
enta
ry
info
rmat
ion.
A-52
FIN
AN
CIA
L A
NA
LYS
IS O
F T
HE
VIL
LAG
E A
S A
WH
OLE
A s
umm
ary
of t
he v
illag
e's
Sta
tem
ent
of N
et P
ositi
on
is p
rese
nted
be
low
: (p
age
4 of
aud
it re
port
)
CO
ND
EN
SE
D S
TA
TE
ME
NT
OF
NE
T P
OS
ITIO
N
. G
over
nmen
talA
ctiv
ities
Wth
in t
he F
inan
cial
S
tate
men
l a r
epor
t is
pro
vide
d w
hich
indi
cate
s th
e ch
ange
s in
net
pos
ition
bas
edup
on t
he e
xpen
ses,
re
venu
es
and
lrans
fers
mad
e th
roug
hout
th
e ye
ar w
ilhin
bot
h th
e G
over
nmen
tal
Act
iviti
es a
nd B
usin
ess-
Typ
e A
ctiv
ilies
fun
ds.
A r
ecap
of
the
yeal
s ac
tivity
is p
rovi
ded
belo
w.
CO
ND
EN
SE
D S
TA
TE
ME
NT
OF
AC
TIV
ITIE
S
Gov
ernm
enta
l A
ctiv
ities
B
usin
ess-
type
A
ctiv
fies
Cut
rent
and
oth
er a
ssei
s
2017
2A
18
2A17
20
18
2017
zU
A
$ 9.
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238
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15
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25.7
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64.4
40 2
6.52
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50,
233,
170
51,A
79,1
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3 33
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30,0
29,0
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32,1
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19 S
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66
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Pro
gram
Rev
enue
s
Cha
q6 f
or s
erur
ces
Ope
raiin
g gr
ants
and
cont
ibut
ions
Cap
ital
gran
ts a
nd
cont
lbdi
ons
Tot
ai P
rogr
am
2017
$ 59
8 12
4
4ds
532
320
690
g 1,
324
346
2018
5 77
0,43
8
444.
063
75,O
17
$ I
289,
518
2017
$ 2,
622,
a?5
394
790
$ 3,
017,
665
2018
s 2,
943,
221
21A
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S
3116
1,52
3
$-
2017
$ 3,
220,
999
405
532
715
4A0
$ 4,
342,
011
2014
5 3,
713,
659
444,
063
293,
319
s 4.
451,
041
Gen
eral
Rev
enue
s
lnie
rgov
ernm
enta
l
lnve
stm
ent
ncom
e
Gar
n on
dis
posa
l
ol a
sseb
Tot
al G
eneE
lR
even
ues
Cap
ital
asse
b
Tob
l A
sseb
Def
ered
ouf
ilo$
of r
esou
rces
$ 89
2,06
6
Long
feh
liabi
litie
s $
17,0
94,7
01
Oth
er li
abil'
ties
746,
635
Tob
l Li
abili
ries
I 17
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1,33
6
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3
$ 9
977,
764
393,
274
s 10
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5 4,
945,
184
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464,
761
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4.94
5.18
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464.
761
Def
etre
d in
floE
of
reso
urce
s
$ 74
8,77
4
I 16
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645
718,
299
t 17
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841
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634
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044,
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$ 27
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9,91
3
t 2a
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$ 91
4 50
5
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4
I 28
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73
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39,3
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83,3
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82,9
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38
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90
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79,7
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3,93
3 26
4,43
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409
-
49,3
Q
%4,
433
39,8
79
105,
020
- 17
9 39
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10
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9
Net
inv
estm
ent
in c
apita
i
asse
ts
Res
tric
ted
net
posr
tron
Unr
estic
ted
net
posi
tion
(dei
cit)
TO
TA
L N
ET
PO
SIT
ION
Gen
eral
Gov
ernm
eni
Pub
lic S
afet
y
Cul
tu€,
rec
reat
ion
and
Con
seto
alio
ri an
d
lnte
rest
and
fis
cal
char
ges
Bus
ines
s{yp
e A
ctiv
ities
Wat
er d
ility
Ser
er d
iliry
Toh
l E
xpen
ditu
res
I (6
2e,0
68)
(2,0
10,8
70)
(1,8
61,0
78)
(569
,616
)
1746
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1,
(615
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)
$ t5
,l(}1
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1
319,
492
312,
27A
$ 64
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S
128.
980
$ 59
06,3
48 S
6,
712A
09
s 16
641
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I
17,s
70,9
14 $
25
811
,251
$
25,8
40,7
34
610,
395
693,
100
1,68
0,56
7 2,
595,
601
2,49
3,96
2 2.
725.
514
2.90
6 01
9 3
195.
642
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l!?q
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101.
051
I 5,
965.
244
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58,4
82 S
31
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5
5159
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S
5,99
7,02
0
Tob
l R
even
ues
t 6,
425,
397
a 7,
254,
762
t 3,
076.
147
t 3,
193,
299
I 9,
s01,
s 3
10,4
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Exp
ense
s
The
lar
gest
por
tion
of t
he V
illag
e of
Cot
tage
Gro
ve's
net
pos
ition
ref
lect
s its
inv
estm
ent
in c
apita
las
sets
(ex
ampl
e: l
and,
bui
ldin
gs,
impr
ovem
enls
, in
fras
truc
ture
, eq
uipm
ent)
, le
ss a
ny d
ebt
used
to
acqu
ire t
hose
ass
ets
that
is s
till
outs
tand
ing.
The
vill
age
uses
the
se c
apita
l as
sets
to
prov
ide
serv
ices
to it
s ci
tizen
s.
Con
sequ
ently
, th
ese
asse
ts a
re n
ot a
vaila
ble
for
fulu
re s
pend
ing.
The
ass
ets
ofth
e V
illag
e of
Cot
tage
Gro
ve e
xcee
ded
its li
abili
ties
by $
31,6
31,9
77 (
net
posi
lion)
.$2
5,84
O,7
34 i
s id
entif
ied
as n
el in
vest
men
t in
cap
ital a
sset
s.
It sh
ould
be
note
d th
at a
ny d
ebt
asso
ciat
ed w
ith t
hese
ass
ets
mus
t be
pai
d fr
om o
ther
sou
rces
as
thes
e ite
ms,
for
the
mos
i pa
rt,
cann
ot b
e liq
uida
ted
to p
ay d
own
debt
.
Res
tric
ted
asse
ts a
re a
sset
s se
t as
ide
or i
dent
ified
for
a s
peci
fic p
urpo
se
thro
ugh
lega
lity
or t
hird
part
ies
whi
le u
nres
tric
ted
asse
ts a
re t
hose
ass
ets
whi
ch m
ay b
e us
ed a
t th
e di
scre
tion
of t
hego
vern
ing
body
of
the
Vill
age
of C
otta
ge
Gro
ve.
$ (6
62,5
85)
(2,2
14.4
74)
(2.1
1s 3
4s)
1522
,419
)
(681
,550
)
(450
,861
)
5 Ir
F43
34)
1617
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)
(9 3
92)
s (6
28,0
68)
{2,0
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(s69
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1746
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)
(615
763
)
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,s48
)
(1.5
39 3
42)
i (0
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6,s0
91
555
035
$ (6
62,5
85)
12,2
14
474)
(2,1
15 0
45)
ls22
419
)
1681
,s50
)
1450
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)
(1,6
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3s)
t 19
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t
1,23
4,14
D
Tra
nsfe
rs l
n (O
ut)
Cha
nge
in N
et P
ositi
on
NE
T P
OS
ITIO
N -
Beg
inni
ng o
fYea
r10
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10
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19,
503.
231
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et1
NE
T P
OS
ITIO
N _
EN
D
OF
YE
AR
vil
A-53
FIN
AN
CIA
L A
NA
LYS
IS O
F T
HE
VIL
LAG
E'S
FU
ND
S
Gen
eral
Fun
d
The
Gen
eral
Fun
d is
ihe
prim
ary
fund
use
d by
the
vill
age.
\M
ihin
thi
s fu
nd t
he n
orm
al d
ay{o
-day
activ
ity is
rec
orde
d.
On
Dec
embe
r 31
, 2
01 8
, th
e vi
llage
's g
ener
al fu
nd r
epor
ted
tota
l fu
nd b
alan
ces
of 9
1,60
0,92
8.
$'1,
411,
134
of t
he t
olal
fun
d ba
lanc
e re
pres
ents
un
rest
ricle
d fu
nds.
Mon
ies
cons
ider
ed
nons
pend
able
w
ithin
the
gen
eral
fun
d ba
lanc
e to
tale
d $1
89,7
94.
Gen
enl
Deb
t S
eUic
e F
und
The
Gen
eral
D
ebt
Ser
uice
Fun
d is
use
d to
rec
ord
and
trac
k al
l in
tere
st a
nd p
rinci
pal
paym
ents
m
ade
onde
blth
atth
evill
ageh
asin
curr
edou
tsid
eofd
ebtin
curr
edby
theU
tility
Fun
ds.
|n20
18,$
1,56
1,50
9w
as p
aid
in p
rinci
pal
and
inte
rest
pay
men
ts b
y al
l fu
nds
excl
udin
g th
e U
tility
Fun
ds.
Fol
low
ing
a
reco
ncili
ng o
f th
e vi
llage
deb
t le
vy,
stat
f fo
rese
es b
oth
the
debt
levy
and
deb
t se
rvic
e re
serv
ede
crea
sing
, pe
ndin
g fu
ture
adv
ance
s an
d ad
ditio
nal b
orro
win
g.
The
maj
ority
of
deb
t pa
ymen
ts
wer
epa
id b
y th
e T
ax l
ncre
men
tal
Dis
tric
ts.
The
deb
t se
rvic
e fu
nd h
as a
fun
d ba
lanc
e of
$32
5,55
6 as
of
year
-end
.
TIF
Dis
tric
t N
o. 5
ln 2
000,
lhe
Vitl
age
of C
otta
ge G
rove
rec
ogni
zed
the
need
for
mor
e co
mm
erci
al
tax
base
with
in t
hevi
llage
and
beg
an p
lann
ing
for
a C
omm
erce
Par
k at
the
inte
rsec
lion
of C
TH
N a
nd l-
94.
ln 2
003,
the
infr
astr
uctu
re f
or t
he f
irst
of t
wo
phas
es w
as c
ompl
ete
and
land
bec
ame
avai
labl
e fo
r po
lent
ial
deve
lope
rs.
Atth
eend
of20
lS,th
eass
esse
dval
ueha
dris
ento
$50,
700,
300a
ndth
edis
tric
trep
orts
a fu
nd b
alan
ce o
f $1
,221
,328
.
TIF
Dis
tict
No.
7
TID
7,
whi
ch i
s lo
cate
d on
the
sou
lh e
nd o
f th
e vi
llage
on
Mai
n S
t. ha
s ad
ded
a co
uple
sig
nific
ant
proj
ects
ove
r th
e la
st f
ew y
ears
: 1)
Ast
er M
emor
y C
arc'
. a
24 b
ed m
emor
y ca
re f
acili
ty;
and
2) A
ster
Sen
ior
Livi
ng:
seni
or a
part
men
t co
mpl
ex f
eatu
ring
60 n
ew u
nils
. T
he e
ndin
g fu
nd b
alan
ce o
f th
edi
stric
t is
$15
6,60
1.
Cap
ital
Pro
ject
s F
und
ln 2
014
the
Vill
age
of C
otta
ge G
rove
im
plem
ente
d a
Cap
ital
lmpr
ovem
ent
Pla
n, b
udge
ting
out
at I
east
5 ye
ars
for
purc
hase
s of
lar
ge e
quip
men
t ite
ms.
Thi
s pl
an c
alls
for
lev
ying
a tl
at d
olla
r am
ount
ea
chye
ar i
n th
e ho
pes
of b
eing
abl
e to
sav
e ce
rtai
n su
ms
for
year
s w
hen
larg
e or
man
y ca
pita
l ite
ms
need
lobe
purc
hase
d. l
n20l
Sth
evill
agep
urch
ased
.ane
wpo
lices
quad
anda
new
fron
tend
load
eral
ong
with
ped
orm
ing
a w
etla
nd s
crap
e in
Wes
tlaw
n 3'
d A
dd a
nd h
avin
g ou
r en
gine
erin
g co
nsul
tant
sde
velo
past
orm
wat
erm
odel
. T
heca
pita
l pr
ojec
tsfu
ndba
lanc
eatlh
eend
of
2018
is$1
,29O
,444
.
Gen
eral
Fun
d B
udge
tary
Hig
hlig
hts
Ove
rall
The
vill
age,
s ge
nera
l fu
nd f
inis
hed
the
year
with
a n
et f
und
bala
nce
incr
ease
of
$1 7
8,96
4. R
even
ues
and
olhe
r fin
anci
ng s
ourc
es e
xcee
ded
budg
et e
xpec
talio
ns b
y $2
90,9
0'1.
E
xPen
dilu
res
and
othe
r
finan
cing
use
s w
ere
over
bud
gei
by $
1 1
1 ,9
37.
Thi
s re
sults
in
the
gene
ral
fund
per
form
ing
betle
r th
anbu
dget
ed
by $
1 7
8,96
4 fo
r lh
e ye
ar.
Gen
eral
G
ovem
men
tT
his
sect
ion
ofth
e G
ener
al F
und
budg
et r
elat
es t
o ad
min
istr
atio
n co
sts
asso
cial
ed
with
man
agem
ent
of t
he v
illag
e su
ch a
s th
e vi
llage
Boa
rd,
adm
inis
trat
or,
cler
k, t
reas
urer
and
sta
ff, e
lect
ions
,
asse
ssm
ent
of p
rope
rty,
aud
it, m
unic
ipal
cou
rt,
inle
rgov
ernm
enta
l pa
ymen
ts a
nd in
sura
nces
and
lega
l co
unse
l. G
ener
al
gove
rnm
ent
expe
nditu
res
exce
eded
th
e bu
dgel
by
92,3
09.
Pub
lic S
afet
yT
his
sect
ion
of t
he b
udge
t pe
rtai
ns t
o lh
e vi
llage
Pol
ice
depa
rtm
ent
and
polic
e co
mm
issi
on,
cros
sing
guar
ds,
flre
depa
rtm
ent,
emer
genc
y se
rvic
es,
build
ing
insp
ectio
ns
and
hydr
ani re
ntal
. P
ublic
saf
ety
expe
nditu
res
wer
e ov
er b
udge
l by
$82
,348
due
inc
reas
es
in b
uild
ing
insp
ectio
n co
sts
(whi
ch a
re a
lso
refle
cted
in
rev
enue
s co
llect
ed).
Pub
lic W
otks
Thi
s se
ctio
n pe
rtai
ns t
o th
e ad
min
istr
aiio
n of
the
dep
arlm
ent,
mai
nten
ance
of
stre
ets
and
othe
r
mun
icip
ally
ow
ned
infr
astr
uctu
re (
stor
mw
ater
), t
raffi
c co
ntro
l, st
reet
ligh
ling,
sid
ewal
ks,
gene
ral
engi
neer
ing,
ref
use
colle
ctio
n,
stor
m s
ewer
s,
wee
d/nu
isan
ce
conl
rol a
nd t
he s
anita
ry la
ndfil
l. P
ublic
Wor
ks e
xpen
di'tu
res
wer
e ov
er b
udge
t by
$44
,916
du
e to
incr
ease
d st
reet
lig
htin
g co
sts.
Leis
ure
Act
iviti
esT
his
sect
ion
of t
he b
udge
t pe
rtai
ns
to p
arks
, pl
aygr
ound
s,
athl
etic
fac
ilitie
s, r
ecre
alio
n pr
ogra
ms
and
seni
or o
ulre
ach.
Al
year
-end
, th
is s
ectio
n w
as u
nder
bud
get
by $
12,5
77.
Co
n se
vatio
n a
n d
Dev
elo
We
ntT
his
sect
ion
ofth
e bu
dget
per
tain
s to
eng
inee
ring,
pla
nnin
g an
d ot
her
prof
essi
onal
se
ruic
es
rela
ted
to th
e ef
ficie
nl a
nd e
tfect
ive
plan
ning
of
new
and
exi
stin
g de
velo
pmen
ts w
ithin
the
vill
age
and
impl
emen
latio
n of
the
vill
age'
s C
ompr
ehen
sive
La
nd U
se P
lan.
ln 2
018,
the
pla
nnin
g an
d
deve
lopm
ent
budg
ets
cam
e in
und
er b
udge
t by
app
roxi
mat
ely
$5,0
59.
IX
A-54
TA
X R
AT
E
$6.
6524
3.76
48
14.3
135
.056
1.O
174
.000
0
TA
X R
AT
E
6 30
73
3.84
89
14.4
376
o 05
74
1.02
29
0.00
00
TA
X R
AT
E
tnl6
I5
7911
3.66
77
14.4
117
0.05
70
I 00
61
o 17
6A
TA
X R
AT
E
2n1S
$5.
6540
12.9
969
0.05
94
0.93
92
0.'1
719
TA
XIN
G
JUR
ISD
ICT
ION
:
TA
X R
AT
E
2011
Vill
age
Oan
e C
ount
yM
onon
a G
rove
Sch
ool
Dis
sid
Sun
PG
irie
Sch
ool
Dis
tric
t
MA
TC
Dis
nidg
Sta
te
LES
S:
Sch
ml
Tar
cre
dit
5 47
30
3.44
92
13.1
787
0 05
92
0.91
75
0.16
67
s
Tax
Rat
e an
d E
qual
ized
rAss
esse
d V
alua
tion
- H
isto
rv 2
014-
2018
2019
201
E20
1729
16
7n1S
2015
2014
BU
DG
ET
YE
AR
TA
X L
EV
Y Y
EA
R
CA
PIT
AL
AS
SE
T A
CT
IVIT
Y
At
the
end
of 2
018,
the
vill
age
had
inve
sted
a
tota
l of
$51
,079
,102
in c
apita
l ass
ets.
Thi
s in
vest
men
tin
cap
ital a
sset
s in
clud
es la
nd,
land
im
prov
emen
ts,
build
ings
, m
achi
nery
an
d eq
uipm
enl,
and
infr
asiru
ctur
e.
Gov
ernm
enta
l A
divi
ties
Aus
ines
s-to
oe A
ctiv
ities
2017
20
1a
2A17
2A
1A
2017
20
1A
9 11
602,
718
$ 11
,528
,999
$
8185
06 S
74
5,07
1 $
12,4
21,2
24 S
12
,274
070
7,83
2,50
57,
832,
505
7,83
2,50
57,
832
505
kses
sed
Val
uatio
n
Equ
aliz
ed V
alua
tion
Ass
essm
ent
Rat
io
Mil
Rab
Per
$1,
000
Val
ue
Util
rty
plan
t
Tob
l C
apita
l A
sset
s
Less
Acc
umui
ated
depr
ecia
tion
Net
Cap
ital
Ass
eb
nol
bein
g de
prec
iate
d
Bui
ldin
gs a
nd
equi
pmen
t2,
797,
454
2.93
7,97
0 2,
757,
454
2,93
7 ,9
7026
,003
,021
26,
078,
183
26,0
03,0
21 2
6.07
8,18
3
-
33,8
90.1
22 3
6,26
2,5s
0 33
890,
122
36,2
62,s
50$
614,
449,
000
S 6
20,2
96,9
00 $
648
,8s8
,700
6
6s5,
160,
400
5 66
7,02
3,40
0
$ 60
3,73
3,60
0 $
628,
219,
800
$ 67
5,98
6,20
0 $
71.1
,556
,100
'5
746,
059,
000
101.
77&
ty,
!E.7
388%
95
.987
0%
S2.
O74
3iA
89
.405
3
48,2
35,6
98 4
A,3
77,6
57 3
4,70
8,62
8 37
,007
,621
82.
94 3
26
85,3
85,2
78
l" ,o
r"r^
n 1t
ao
r"rr
no
s 1a
7so1
11 s
15ns
s?73
$ 21
.377
0 S
21
291A
I
23.0
Q4
$ 23
.361
3 S
23
.4s9
S
(24,
529,
512)
(25
,513
,217
) (8
,181
,644
) 18
.792
,9s9
) (3
2,71
1,1s
6)
(34,
306,
176)
!___
4199
J.e9
- S
___n
39!.4
0. -
!___
_?9.
!?6.
993
s__-
284!
,ffi
!___
j9,2
3IZ
q "9
____
!.L92
9.l_
q?
xi
A-55
LON
G T
ER
M D
EB
TA
CT
IVIT
Y
Per
Wis
cons
in S
tate
Sia
tuie
, th
e to
tal
gene
ral
oblig
atio
n de
bt o
fthe
villa
ge m
ay n
ol e
xcee
d 5%
of
its
equa
lized
val
ue o
f ta
xabl
e pr
oper
ty
with
in t
he v
illag
e. B
ased
on
this
, th
e av
aila
ble
debt
lim
it as
of
Dec
embe
r 31
, 2o
l I
was
$37
,302
,950
. T
he v
illag
e, a
s of
Dec
erbe
r 31
, 20
1 I,
had
gen
eral
ob
ligat
ion
debt
in
the
amou
nl o
f $2
o,38
4,'1
24.
Gen
er.l
Obl
idat
ion
Deb
t:E
alan
ce12
31nO
17P
rinci
pal
Pym
t.E
alan
ce12
31t2
014
RE
QU
ES
T F
OR
IN
FO
RM
AT
ION
Res
iden
ts a
re a
sked
to
read
thr
ough
thi
s re
port
and
fin
anci
al s
tate
men
ts c
aref
ully
. T
he f
inan
cial
repo
rt is
int
ende
d to
giv
e ou
r ci
tizen
s, c
uslo
mer
s, i
nves
tors
an
d cr
edilo
rs a
gen
eral
ove
rvie
w
of lh
evi
llage
's
finan
ces
and
is i
nlen
ded
to b
e re
ad in
con
junc
tion
with
the
aud
it re
Por
t. if
you
shou
ld h
ave
any
ques
tions
, co
mm
ents
or
nee
d ad
ditio
nal i
nfor
mat
ion,
pl
ease
fee
l fre
e to
con
tact
any
of
the
staf
f
liste
d be
low
.
Gen
eral
Obl
igat
ion
- 20
12 P
rom
isso
ry
Gen
era
Obl
igat
ion
- 20
12 R
efun
ding
Gen
ehl
Obl
igat
ion
- 20
08 (
TlD
/Gen
eral
)
Gen
eral
obl
igai
ion
- 20
09 i
Sew
r)
Gen
eral
Obl
gano
n -
2013
Pro
mE
sory
cene
ral
Obl
lgat
on
- 20
14 R
eiun
dlng
Gen
eral
Obl
gatio
n -
2015
Ref
undl
ng
Gen
eral
Obl
igal
on -
2017
Ref
undi
ng
830,
000
1 10
0,00
0
150,
000
999,
916
35 5
99
5,80
5 00
0
3,91
0,00
0
6,50
0,00
0
150,
000
25,0
00
150,
000
79,4
12
16,9
79
525.
000
175.
000
240
000
680,
000
1,07
5,00
0
920
504
18 6
20
5,28
0,00
0
3,73
5,00
0
6,26
0,00
0
Vill
age
Adm
inis
trat
orM
att
Gie
se22
1 E
. C
otta
ge
Gro
ve R
oad
Cot
tage
Gro
ve,
Wl
5352
750
8-83
9-47
04m
qies
e@vi
llaoe
.cot
taoe
-qro
ve.w
i.us
Vill
age
Tre
asur
erD
ebra
Win
ter
221
E.
eofia
ge G
rove
Roa
dC
otta
ge G
rove
, W
535
2760
8-83
9-47
04dw
inte
r@vi
llaoe
.cot
taqe
-oro
ve.w
i.us
19 3
30 5
151.
361.
391
The
wat
er a
nd s
ewer
util
ities
hav
e ou
tsta
ndin
g re
venu
e bo
nds
tota
ling
$6,5
27,8
59 as
of
Dec
embe
r 31
, 20
18.
The
se b
onds
are
sec
ured
by
the
reve
nues
ge
nera
led
by t
he u
tiliti
es.
xlll
xiv
A-56
VILLAGE OF COTTAGE GROVE
STATEMENT OF NET POSITIONAs of December 31, 2018
GovernmentalActivities
Business-typeActivities Totals
ASSETSCash and investmentsReceivables
TaxesDelinquent personal property taxesAccountsSpecial assessmentsDelinquent special assessmentsLand contractAccrued interest
lnternal balancesDue from other governmentsPrepaid itemsRestricted assets
Restricted cash and investmentsNet pension asset
CapitalAssetsLandOther capital assets, net of depreciation
Total Assets
DEFERRED OUTFLOWS OF RESOURCESUnamortized loss on advance refundingPension related amounts
Total Deferred Outflows of Resources
LIABILITIESAccounts payableAccrued liabilitiesDepositsDue to other governmentsNoncurrent Liabilities
Due within one yearDue in more than one year
Total Liabilities
DEFERRED INFLOWS OF RESOURCESUnearned tax revenuesPension related amounts
Total Deferred lnflows of Resources
NET POSITIONNet investment in capital assetsRestricted for
Equipment replacementPensionDebt serviceTIF districts
Unrestricted (Deficit)
$ 4,748,795 $ 2,418,854 $ 7,167,649
6,058,4994,948
47,40424,2254,426
70,7656,640
(160,333)8,450
32,689
6,058,4994,948
721,73824,2254,426
70,76512,484
302,1 00
1 '1,528,999
11.335.441
674,334
5,844160,333
96
655,34466,852
745,07127,469,59132,1 96,31 I
8,45032,785
655,344368,952
12,274,07038,805,03266.209.36734,013,048
235,218 235,218679,287553 556 125 731
788 774 125 731 914,505
227,964216,379272,510
1,446
1,504,20815.353.437
412,21680,68910,000
693,58710,007,05011.203.542
640,1 80297,068282,510
1,446
2,197,79525,360,487
17.575.944 28.779.486
5,980,846602.583
5,980,84673'1.563128.980
6,583,429 128.980 6.712.409
10,600,394 17,570,914 25,840,734
302,'t 00212,130
1,388,271(1.860.446)
332,732368,952505,646
1,388,2713.195,642
332,73266,852
293,516
2.725.514
$ 10.642,449 $ 20,989,528 $ 31.631.977TOTAL NET POSITION
See accompanying notes to financial statements
A-57
VILLAGE OF COTTAGE GROVE
STATEM ENT OF ACTIVITI ESFor the Year Ended December 31,2018
Proqram Revenues
ExpensesCharges for
Services
OperatingGrants and
Contributions
CapitalGrants and
ContributionsFunctions/Proqrams
Governmental ActivitiesGeneral governmentPublic safetyPublic worksCulture, recreation and educationConservation and developmentlnterest and fiscal charges
Total Governmental Activities
Business-type ActivitiesWater utilitySewer utility
Total Busi nesstype Activities
Totals
662,585 $2,214,4742,115,045
522,41968'1,550450,861
75,209 $334,7331 19,051238,003
3,442
$ $42,867
333,30512,32255,569
75,017
6,646,934 770.438 444,063 75 017
951,1521 .615.835
1,255,3941.687.827
96,185122.117
2.566.987 2.943.221 218.302
$ 2€3.319$ 9,213,921 $ 3,713,659 $ 444,063
General RevenuesTaxes
Property taxes, levied for general purposesProperty taxes, levied for debt serviceProperty taxes, levied for TIF districtsProperty taxes, levied for other purposesOther taxes
lntergovernmental revenues not restricted to specific programsPublic gifts and grantslnvestment incomeGain on disposal of assetsMiscellaneous
. Total General RevenuesTransfers
Total General Revenues and Transfers
Change in net position
NET POSITION - Beginning of Year
NET POSITION . END OF YEAR
See accompanying notes to financial statements.
A-58
Net (Expenses) Revenues and Chanqes in Net Position
GovernmentalActivities
Business{ypeActivities Totals
$$ (587,376) $(1,836,874)(1,587,672)
(272,0e4)(622,53e)(450.861)
(587,376)(1,836,874)(1,587,672)
(272,094)(622,53e)(450.861)
(5.357.416) (5.357.416\
400,427194.'109
400,4271 94.1 09
594,536 594,536
(5,357.416) 594,536 (4,762,880)
3,012,032302,816
1,765,230383,834
84982,9134,372
48,117264,433100.648
3,012,032302,816
1,765,230383,834
84982,9134,372
79,714264,433100.827
31,597
179
5.965.244 31.776 5.997.020.617.220\ 617,220
5.348.024 648.996 5.997.020
(e,3e2)
10,651,84'l
1,243,532 1,234,140
19.745.996 30,397,837
qJgg!2re $ 4,9!ggq $ 31 ,631,977
See accompanying notes to financial statements.
A-59
VILLAGE OF COTTAGE GROVE
BALANCE SHEETGOVERNMENTAL FUNDSAs of December 31, 201 8
GeneralDebtGeneral Fund Service Fund
TIF DistrictNo. 5
ASSETSCash and investmentsReceivables
TaxesDelinquent personal property taxesAccountsSpecial assessmentsDelinquent special assessmentsLand contractAccrued interest
Due from other governmentsPrepaid itemsAdvances to other funds
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCES (DEFICIT)
LiabilitiesAccounts payableAccrued liabilitiesDepositsDue to other governmentsDue to other fundsAdvances from other funds
Total Liabilities
Deferred lnflows of ResourcesUnearned revenuesUnavailable revenues
Total Deferred lnflows of Resources
Fund Balances (Deficit)NonspendableRestrictedCommittedAssignedUnassigned (deficit)
Total Fund Balances (Deficit)
1,902
325.020
$ 5.243,772 $ 739,653 $ 2,331 ,310
73$
$ 1,722,97e $ 619 $
413,362
652
1,215,496
1 ,102,958
10,954
3,3'19,7634,9481,814
4,426
9728,450
32,689147.731
$ 172,724 $100,852
50,4821,446
74,258
4,478644
399.762 73 5.122
3,242,110972
413,362652
1,102,9581.902
TOTAL LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCES(DEFTCTT)
3.243.082 414,014 1 ,104.860
189,794325,566 1,221,328
323,9631.087.1711.600.928 325.566 1.221.328
$ 5,243,772 $ 739,653
See accompanying notes to financial statements
$ 2,331,310
A-60
TIF DistrictNo. 7
CapitalProjects
NonmajorGovernmental
Funds Totals
$ 157,410 $
763,498
7,002
654
1,298,491 $
354,476
353,800 $
104,442
22,6361,424
4,748,795
12,00015,799
6,058,4994,948
47,40424,2254,426
70,7656,6408,450
32,689472,751
70,7651J62 1,298
$ 928,564 $ 1,752,693 $ 483,600 $ 11.479,592
$ 165 $644
20,047 $ 30,477 $803
222,028
558.826
227,964102,943272,510
1,44674,258
558.826809 20,047 812,134 1.237.947
763,4987,656
354,47687.726
104,4422,722
5,980,846101,630
771.154 442.202 107j64 6.082.476
56,60 1
189,7941,703,495
130,6011,614,407
520,872
130,6011,290,444
(566.299)156.601 1.290.444 (435.698) 4.1 59.1 69
$ 928.564 $ 1.752.693 $ 483,600 $ 11,479.592
See accompanying notes to financial statements.
A-61
VILLAGE OF COTTAGE GROVE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDSTO THE STATEMENT OF NET POSITION
As of December 31 , 201 8
Total Fund Balances - Governmental Funds
Amounts reported for governmental activities in the statement of net position aredifferent because:
Capital assets used in governmental funds are not financial resources and,therefore, are not reported in the funds.
LandOther capital assetsLess: Accumulated depreciation
Some receivables that are not currently available are reported as unavailablerevenues in the fund financial statements but are recognized as revenue whenearned in the government-wide statements.
Special assessmentslnterestLand contract
Deferred outflows of resources related to pensions do not relate to current financialresources and are not reported in the governmental funds.
Deferred inflows of resources related to pensions do not relate to current financialresources and are not reported in the governmental funds.
The net pension asset does not relate to current financial resources and is notreported in the governmental funds.
Some liabilities, including long-term debt, are not due and payable in the currentperiod and, therefore, are not reported in the funds.
Bonds and notes payableCompensated absencesAccrued interestPremium on issuance of debt
A deferred charge on refunding represents a consumption of net position thatapplies to a future period and, therefore, is not reported in the funds.
NET POSITION OF GOVERNMENTAL ACTIVITIES
$ 4,159,169
11,s28,99936,848,658
(25,513,217)
24,2256,640
70,765
553,556
(602,583)
302,100
(16,335,377)(127,094)(113,436)(395,174)
235,218
$ 10,642,449
See accompanying notes to financial statements.
A-62
VILLAGE OF COTTAGE GROVE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS
Forthe Year Ended December 31,2018
General DebtGeneral Fund Service Fund
TIF DistrictNo. 5
REVENUESTaxeslntergovernmentalLicenses and permitsFines, forfeitures and penaltiesPublic charges for servicesSpecial assessmentslnvestment incomeMiscellaneous revenues
Total Revenues
EXPENDITURESCurrent
General governmentPublic safetyPublic worksCulture, recreation and educationConservation and development
Capital OutlayDebt Service
Principallnterest and fiscal chargesDebt issuance costs
Total Expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCINGDebt issuedPremium on debt issuedTransfers inTransfers outProceeds from sale of capital assets
Total Other Financing (Uses)
4,200,746 304.918 1 .296.513
626,1522,079,2501 ,100,907
453,96485,472
100
72,82449,893
1,143,763417,746
745 1,561.509 122.817
(144.999) (1 ,256,591) 1 .173.696
323,963 1,257,209(1,00e,4e4)
286.778
$ 3,012,032 $418,905262,610
59,525377,890
302,816 $ 1 ,126,706- 38,849
2,10225,32144.463
6,1 80124,778
323.963
178,964
1,257,209 022.716\
Net Change in Fund Balances 618 450,980
FUND BALANCES (DEFICIT) - Beginning of Year 1 1.964 324,948 770.348
FUND BALANCES (DEFTCTT)- END OF YEAR $J.09 q $_32ffi0 SJ-221,328
See accompanying notes to financial statements
A-63
TIF DistrictNo.7
CapitalProiects
NonmajorGovernmental
Funds Totals
$ 600,332 $697
4,8803,1 932.535
338,000 $ 84,026 $634
5,463,912459,085262,610
59,525449,053
19,38647,024
175.900395.992
33,6801,4244,8442,081
126.689 6.936.495611.637
351,755943,580
37,483'13,082
5,3842,043
'1,633
314,31561,23760,371
627,8852,079,2501 ,100,907
453,964571,288
1 ,368,159
40.536
1,143,763417,746
40.5361.335.871
ft24.234\
315.948 121,608 7,803.498
(867.003)80,044 5.081
990,00020,906
(128,140)385,971
990,00020,906
1,967,143(1 ,643,180)
286.778(505,546)
882.766 971 (505.546) 1.621,647
'158,532
/1 931\
466,015
824,429
(500,465) 754,644
64.767 3.404.525
$_l43E€99) $_L159;!-q9$ 156,601 $ 1.290,444
See accompanying notes to financial statements.
A-64
VILLAGE OF COTTAGE GROVE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIESForthe Year Ended December 31,2018
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are differentbecause:
Governmental funds report capital outlays as expenditures. However, in the statement ofnet position the cost of these assets is capitalized and they are depreciated over theirestimated useful lives and reported as depreciation expense in the statement of activities
Capital outlay is reported as an expenditure in the fund financial statements but iscapitalized in the government-wide financial statements
Some items reported as capital outlay were not capitalizedDepreciation is reported in the government-wide financial statementsNet book value of assets retired
Contributed capital assets are reported as revenues in the government-wide financialstatements.
Receivables not currently available are reported as revenue when collected or currentlyavailable in the fund financial statements but are recognized as revenue when earned inthe government-wide financial statements.
Special assessmentslnterest receivablelnstallment sale revenue
Debt issued provides current financial resources to governmental funds, but issuing debtincreases long-term liabilities in the statement of net position. Repayment of debt principalis an expenditure in the governmental funds, but the repayment reduces long-termliabilities in the statement of net position.
Debt issuedPrincipal repaid
Governmental funds report debt premiums and discounts as other financing sources (uses)or expenditures. However, in the statement of net position, these are reported asadditions to or deductions from longterm debt. These are allocated over the period thedebt is outstanding in the statement of activities and are reported as interest expense.
Change in premium on debt issuanceChange in loss on advance refunding
Some expenses in the statement of activities do not require the use of current financialresources and, therefore, are not reported as expenditures in the governmental funds.
Compensated absencesAccrued interest on debtNet pension asset/liabilityDeferred outflows of resources related to pensionsDeferred inflows of resources related to pensions
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
$ 754,644
'1 ,368,159(1,077 ,774)(1,0e7,e01)
(10e,392)
75,162
(1 e,531)1,942
(2,042)
(14,787)1 1,688
380,953(60,525)
(350.21 1)
(ee0,000)1J43,763
19,227(42,767)
See accompanying notes to financial statements.
$__lg,3e2)
A-65
VILLAGE OF COTTAGE GROVE
STATEMENT OF NET POSITIONPROPRIETARY FUNDS
As of December 31, 2018
ASSETSCurrent Assets
Cash and investmentsReceivables
AccountsAccrued interest
Due from other fundsPrepaid itemsRestricted Assets
Redemption accountTotal Current Assets
Noncurrent AssetsRestricted Assets
Equipment replacement accountPension asset
CapitalAssetsProperty and equipmentAccumulated depreciation
Other AssetsAdvances to other funds
Total Noncurrent Assets
TotalAssets
DEFERRED OUTFLOWS OF RESOURCESPension related amounts
Total Deferred Outflows of Resources
Businesstype Activities - Enterprise FundsWater Utility Sewer Utilitv Totals
$ 1,216,473 $ 1,202,381 $ 2,418,854
308,0923,758
36,80548
366,2422,086
37,45348
674,3345,844
74,25896
149.124 173,488 322,6121.714.300 1,781 ,698 3,495,998
36,177
17,673,451(4,311,472)
86,075
332,73230,675
19,334,170(4,481,487)
332,73266,852
37,007,621(8,792,959)
86,07513,484,231 15.2 16 0C0 28.700.321
15.198.531 16.997,788 32.196,319
68,127 57,604 125,731
57,604 125,73168,127
See accompanying notes to financial statements.
A-66
LIABILITIESCurrent Liabilities
Accounts payableAccrued wagesAccrued interestCompensated absencesGeneral obligation debtLiabilities Payable from Restricted Assets
Revenue bonds payableAccrued interest payable
Total Current Liabilities
Noncurrent LiabilitiesLong-Term Debt
General obligation debt payableRevenue bonds payableUnamortized debt premium
Other LiabilitiesCompensated absencesTower lease deposit
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCESPension related amounts
Total Deferred lnflows of Resources
NET POSITIONNet investment in capital assetsRestricted for
Equipment replacementDebt servicePensions
Unrestricted net position
TOTAL NET POSITION
Businesstype Activities - Enterprise FundsWater Utilitv Sewer Utilitv Totals
$ 116,128 $10,4435,7258,365
77,956
296,088 $8,614
26,8116,872
151,792
412,21619,05732,53615,237
229,748
206,59516,946
242,007 448,60229,09612 150
442,158 744 334 1,186,492
735,9673,588,965
26,460
3,083,0322,490,292
40,682
3,818,9996,079,257
67,142
23,75110,000
17,901 41,65210 000
4.385.143 5,631 ,907 10,017,050
4.827.301 6.376.241 11.203.542
69,665 59,315 128,980
69,665 59,315 128,980
8,726,036 8,844,878 17,570,914
132,17836,177
1,475,301
332,732161,33830,675
1,250,213
332,732293,516
66,8522,725,514
$ 10,369,692 $_1qs€eq $_2!,9!9gq
See accompanying notes to financial statements.
A-67
VILLAGE OF COTTAGE GROVE
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITIONPROPRIETARY FUNDS
For the Year Ended December 31, 2018
Business-type Activities - Enterprise FundsWater Utility Sewer Utility Totals
OPERATING REVENUESCharges for services
Total Operating Revenues
OPERATING EXPENSESOperation and maintenanceDepreciation
Total Operating Expenses
Operating lncome
NONOPERATING REVENUES (EXPENSES)lnvestment incomeMiscellaneous non-operating incomelntergovernmentalDebt issuance costslnterest and fiscal chargesAmortization of premium
Total Nonoperating Revenues (Expenses)
lncome Before Contributions and Transfers
CONTRIBUTIONS AND TRANSFERSCapital contributionsTransfers out
Total Contributions and Transfers
Change in Net Position
NET POSITION - Beginning of Year
NET POSITION. END OF YEAR
394,605 236,302 630.907
22,490
$ 'r,255.394
1.255.394$ 1,687.827
1.687.827$ 2.943.221
2,943,221
469,622391,167
985,219466.306
1.451.525
1,454,841857.473
860.789 2,312.314
(s2,s41)2.578
9,1 07179
22,397(28,247)
(13e,238)3.175
31,597179
22,397(28,247)
(2s2,17e)5.753
7,873) (32,627) (200.500)
326.732 103.675 430.407
96,1 85(323.963)
1,040,903 1 ,137,088(323,963)
(227.778\ 1.040.903 813.125
98,954 1,144,578 1,243,532
10.270.738 9.475,258 19,745,996
$ 10,369,692 $ 10,619,836 u9,999eq
See accompanying notes to financial statements
A-68
VILLAGE OF COTTAGE GROVE
STATEMENT OF CASH FLOWSPROPRIETARY FUNDS
FortheYear Ended December 31,2018
Business-type Activities - Enterprise FundsWater Utilitv Sewer Utilitv Totals
CASH FLOWS FROM OPERATING ACTIVITIESReceived from customersPaid to suppliers for goods and servicesPaid to employees for services
Net Cash Flows From Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIESlnvestment incomelnvestments purchasedlnvestments sold
Net Cash Flows From lnvesting Activities
CASH FLOWS FROM NONCAPITAL FINANCINGACTIVITIES
Paid to municipality for tax equivalentNet Cash Flows From Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCINGACTIVITIES
Debt issuedDebt retiredlnterest paidDebt issuance costsPremium on debt issuedAcquisition and construction of capital assetsContributions receivedConstruction grant
Net Cash Flows From Capitaland Related FinancingActivities
Net Change in Cash and Cash Equivalents
CASH AND CASH EQUIVALENTS - Beginning of Year
CASH AND CASH EQUIVALENTS. END OF YEAR
791,511 707j83 1.498.694
$ 1,267,695 $(262,755)(213.429\
1,598,805(715,130)n76.492\
$ 2,866,500(977,885)
921 )
21,370(142,613)146.333
8,551(7s,154)81.695
29,921(221,767)228.O28
25,090 11,092 36,182
(323.963) (323.963)(323.963) (323.963)
6,000(275,872)
(e4,081)
(175,448)33,777
1,425,000(403,194)(124,662)
(3,803)(12,222)
(1,318,795)57,12822,397
'1,431,000
(67e,066)(218,743)
(3,803)(12,222)
(1,494,243)90,90522,397
(505,624) (358.151) (863.775)
347,138
1 074
$ 521,678 $_1,233.934 g_El:.2n
(12,986)
540.664
360,124
883.410
See accompanying notes to financial statements.
A-69
RECONCILIATION OF OPERATING INCOME TO NET CASHFLOWS FROM OPERATING ACTIVITIES
Operating incomeNonoperating revenueAdjustments to Reconcile Operating lncome to Net Cash
Flows From Operating ActivitiesDepreciationDepreciation charged to other funds
Changes in assets and liabilitiesAccounts receivableDue from other fundsPrepaid itemsAccounts payableAccrued wagesCompensated absencesPension related deferrals and assets/liabilities
NET CASH FLOWS FROM OPERATINGAGTIVITIES
RECONCILIATION OF CASH AND CASH EQUIVALENTS TOTHE STATEMENT OF NET POSITION . PROPRIETARYFUNDS
Cash and investmentsRestricted cash and investmentsLess: Noncash equivalents
CASH AND CASH EQUIVALENTS
NONCASH CAPITAL AND RELATED FINANCINGACTIVITIES
Developer financed additions to utility plant
TIF financed additions to utility plant
Amortization of premium on debt
Business-type Activities - Enterprise Fun{sWater Utility Sewer Utility Totals
$ 394,605 $
391 ,1 6725,739
236,302 $179
466,306(25,73e)
(56,874)(6,588)3,430
94,1 50582
(6,757)2,192
630,907179
857,473
(9,441)(3,ee7)3,308
(3,e61)695
(e,088)2,484
(66,315)(10,585)
6,73890,189
1,277(15,845)
4.676
$ 791 ,51 1 $ 707,183 $ 1,498,694
$ 1,216,473 $149,124
(837.919)
1,202,381 $506,220
(465.067)
2,418,854655,344
(1.302,986)
$ 527,678 $ 1,243,534 gJ,z71U
$ 62,408 $ 42,591
$-$ 2,578
$ 941 ,183
$ 3,175
See accompanying notes to financial statements.
A-70
VILLAGE OF COTTAGE GROVE
STATEMENT OF ASSETS AND LIABILITIESAGENCY FUND
As of December 31, 2018
ASSETSCash and investmentsTaxes receivable
TOTAL ASSETS
LIABILITIESDue to other governments
TOTAL LIABILITIES
Aqencv FundTax Collection
Fund
$ 8,557,5162.796.922
$i,351l.39
$ 11.354.438
$J,3g4Jgg
See accompanlng notes to financial statements.
A-71
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).
A.
RE
PoR
I,NG
E
NT
ITY
Thi
s re
port
inc
lude
s al
l of
the
fun
ds o
f th
e vi
llage
. T
he r
epod
ing
entit
y fo
r th
e vi
llage
con
sist
s of
the
prim
ary
gove
rnm
ent
and
its c
ompo
nent
un
its.
Com
pone
nt
units
are
leg
ally
sep
arat
e or
gani
zatio
ns
for
whi
ch t
he p
rimar
y go
vern
men
t is
fin
anci
ally
ac
coun
tabl
e or
oth
er o
rgan
izat
ions
fo
r w
hich
the
nat
ure
and
sign
ificn
ce o
t th
eir
rela
tions
hip
with
the
prim
ary
gove
rnm
ent
are
such
tha
t th
eir
excl
usio
n w
ould
cau
seth
e re
port
ing
entit
y's
finan
cial
st
atem
ents
to
be
mis
lead
ing.
T
he v
illag
e ha
s no
t id
entif
led
any
orga
niza
tions
that
mee
t th
is c
riter
ia.
B.
G0V
ER
NM
EN
I.WD
E
AN
D F
UN
D F
INA
NoI
AT
Sm
IEilE
ilIs
The
sta
tem
ent
of n
et p
ositi
on a
nd s
tate
men
t of
act
iviti
es
disp
lay
info
rmat
ion
abou
t th
e rc
port
ing
gove
rnm
ent
as a
who
le.
The
y in
clud
e al
l fun
ds o
f th
e re
podi
ng
entit
y ex
ept
for
fiduc
iary
fun
ds.
The
stat
emen
ts
dist
ingu
ish
betw
een
govt
rnm
enta
l an
d bu
sine
ss-t
ype
activ
ities
. G
over
nmen
tal
activ
ities
gene
rally
are
fna
nced
thr
ough
ta
xes,
int
ergo
vern
men
tal
reve
nues
, an
d ot
her
none
xcha
nge
reve
nues
.B
usin
ess-
type
ac
tiviti
es a
re f
inan
@d
in w
hole
or
in p
art
by f
ees
char
ged
to e
xter
nal
part
ies
for
good
s or
sefv
ices
.
The
sta
tem
ent
ot a
ctiv
ities
dem
onst
rate
s th
e de
gree
to
whi
ch t
he d
irect
exp
ense
s of
a g
iven
fun
ctio
n or
segm
ent
are
offs
et b
y pr
ogra
m r
even
ues.
D
irect
exp
ense
s ar
e th
ose
that
are
cle
arly
ide
ntifi
able
with
asp
ecifi
c fu
nctio
n or
seg
men
t. T
he v
illag
e do
es n
ot a
lloca
te i
ndire
ct e
xpen
ses
to f
unct
ions
in
the
sta
tem
ent
of a
ctiv
ities
. P
rogr
am r
even
ues
incl
ude
1 )
char
ges
to c
usto
mer
s or
app
lican
ts w
ho p
urch
ase,
us
e or
dire
ctly
ben
efit
from
goo
ds,
seru
ices
, or
priv
aleg
es
prov
ided
by
a gi
ven
func
tion
or s
egm
ent,
and
2) g
rant
san
d co
ntrib
utio
ns
that
are
res
tric
ted
to m
eetin
g th
e op
erat
iona
l or
cap
ital
requ
irem
ents
of
a p
artic
ular
func
tion
or s
egm
ent.
Tax
es a
nd o
ther
ite
ms
not
incl
uded
am
ong
prog
ram
re
venu
es
are
repo
rted
as
gene
ral
reve
nues
. ln
tern
ally
ded
icat
ed
reso
urce
s ar
e re
port
ed a
s ge
nera
l re
venu
es
rath
er t
han
as
B, c. D,
E.
19 21 21 22 23 23 24 25 26 28 2B 2A 29 29 30 30 34 J5 40 44 46 47 47 53 54
prog
ram
fe
venu
es.
Fun
d F
inan
ciat
Sta
Gm
ents
Fin
anci
al
stat
emen
ts
of t
he v
illag
e ar
e or
gani
zed
into
fun
ds,
each
of
whi
ch i
s co
nsid
ered
to
be
a se
para
tea€
ount
ing
entit
y. E
ach
fund
is a
ccou
nted
fo
r by
pro
vidi
ng a
sep
arat
e se
t of
sel
f-ba
lanc
ing
ac@
unts
,w
hich
@ns
titut
e its
ass
ets,
def
erre
d ou
tflof
fi of
res
ourc
es,
liabi
litie
s,
defe
rred
in
flow
s of
res
ourc
es,
net
posi
tion/
fund
ba
lanc
e,
reve
nues
, an
d ex
pend
iture
s/ex
pens
es.
17
A-72
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
201
8
NO
TF
I -
ST
IMM
AR
Y O
F S
IGN
IFIC
AN
T
AC
CO
UN
TIN
G
PO
LIC
IES
T
cont
)
B.
G,W
RN
ME
NT
-WD
E
aND
FU
ND
FtN
AN
ctA
L S
ratE
rEvr
s (c
ont.)
Fun
d F
inan
cial
Sla
lem
etls
(co
nt.)
The
vill
age
repo
rts
the
folio
win
g no
nmaj
or g
over
nmen
tal
fund
s:
Spe
cial
Rev
enue
F
unds
- u
sed
to a
coun
t fo
r an
d re
port
the
pro
ceed
s of
spe
cific
rev
enue
sour
ces
that
are
res
tric
ted
or c
omm
itted
to
exp
endi
ture
s to
r sp
ecifi
ed
purp
oses
(o
ther
tha
n de
btse
rvic
e or
cap
itd p
roje
cts)
.
Cab
le T
VD
evel
oper
D
epos
itsP
ark
Dev
elop
men
t F
ees
Tre
e F
und
Cap
ital
Pro
ject
s F
und
- us
ed t
o ac
coun
t fo
r an
d re
port
fin
anci
al
reso
urce
s th
at a
re l
estr
icte
d,co
mm
itted
, or
ass
igne
d to
exp
endi
ture
fo
r €p
ital
outla
ys,
incl
udin
g th
e ac
quis
ition
or
cons
truc
tion
of €
pita
l fa
cilit
ies
and
othe
r ca
pita
l as
sets
.
Tax
lncr
emen
tal
Dis
tric
t N
o.6
ln a
dditi
on,
the
villa
ge r
epor
ts t
he f
ollo
win
g fu
nd t
ype:
Age
ncy
Fun
d -
used
to
amou
nt f
or a
nd r
epor
t as
sets
hel
d by
the
vill
age
in a
tru
stee
cap
acity
or
as a
n ag
ent
for
ildiv
idua
ls,
priv
ate
orga
niza
tions
, an
d/or
oth
er g
over
nmen
tal
units
.
Tax
Col
lect
ion
Fun
d
C.
ME
AiU
RE
ME
NI
Foc
l,,s,
8A
s,s
oF A
ccow
f,Nc,
A
ND
FIN
AN
C'A
L S
TA
TE
ME
NT
P
RE
SE
NIA
TIO
N
G o
vern
men
t-W
ide
Fin
anci
al
Sta
tem
en,s
The
gov
ernm
enlw
ide
stat
emen
t of
net
pos
ition
and
sta
tem
ent
of a
ctiv
ities
are
rep
orte
d us
ing
the
e@no
mic
re
sour
ces
mea
sure
men
t io
cus
and
the
accr
ual
basi
s of
ac@
untin
g.
Und
er t
he a
ccru
al b
asis
of
acco
untin
g,
reve
nues
ar
e re
cogn
ized
whe
n ea
rned
and
exp
ense
s ar
e re
cord
ed w
hen
the
liabi
lity
is
incu
tred
ot
eco
nom
ic
asse
t us
ed.
Rev
enue
s,
expe
nses
, ga
ins,
los
ses,
ass
ets,
and
lia
bilit
ies
resu
lting
fro
mex
chan
ge
and
exch
ange
like
tran
sact
ions
ar
e re
cogn
ized
whe
n th
e ex
chan
ge t
akes
pla
ce.
Pro
pert
y ta
xes
are
reco
gniz
ed
as r
even
ues
in t
he y
ear
for
whi
ch t
hey
are
levi
ed.
Tax
es r
ecei
vabl
e fo
r th
e fo
llow
ing
year
are
reco
rded
as
reei
vabl
es
and
defe
red
inflo
ws.
Gra
nts
and
sim
ilar
item
s ar
e re
cogn
ized
as
rev
enue
as
soon
as
all e
ligib
ility
req
uire
men
ts
impo
sed
by t
he p
rovi
der
are
met
. S
peci
al a
sses
smen
ts
are
rem
rded
as
reve
nue
whe
n ea
rned
. U
nbill
ed r
e€iv
able
s ar
e re
cord
ed a
s re
venu
es w
hen
sery
ices
are
plo
vide
d.
As
a ge
nera
l ru
le,
the
etfe
ct o
f in
terf
und
activ
ity h
as b
een
elim
inat
ed
from
the
gov
ernm
ent-
wid
e Ji
nanc
ial
stat
emen
ts.
Exc
eptio
ns t
o th
is g
ener
al r
ule
are
char
ges
betw
een
the
villa
ge's
wat
er a
nd s
ewer
util
ities
and
vario
us o
ther
fun
ctio
ns
of |
he g
over
nmen
t. E
limin
atio
n of
the
se c
harg
es w
ould
dis
lort
the
dire
ct c
osts
and
prog
ram
rev
enue
s re
port
ed f
or t
he v
ario
us f
unct
ions
@
ncer
ned.
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
201 I
NO
TF
I -
SIIM
MA
RY
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
Tco
nt )
B.
GoV
ER
NM
EN
T-W
,DE
aN
D F
UN
D F
INA
Nct
ar
Silt
EM
EN
rs
(con
t.)
Fun
d F
inan
cial
S
tate
mer
ts
(con
i.)
Fun
ds a
re o
rgan
ized
as
maj
or f
unds
or
nonm
ajor
fun
ds w
ithin
the
gov
ernm
enta
l an
d pr
oprie
tary
stat
emen
ts.
An
emph
asis
is
pla
ed o
n m
ajor
fun
ds w
ithin
the
gov
ernm
enta
l an
d pr
oprie
tary
ca
tego
ries.
A
fund
is
cons
ider
ed
maj
or i
f it
is t
he p
rimar
y op
erat
ing
fund
of
the
villa
ge o
r m
eets
the
fol
low
ing
crite
ria:
a. T
otal
ass
ets/
deie
ffed
outfl
ows
of r
esou
rces
, lia
bilit
ies/
defe
rred
in
flow
s of
res
ourc
es,
reve
nues
,or
exp
endi
ture
s/ex
pens
es
of t
hat
indi
vidu
al g
ovem
men
tal
or e
nter
pris
e fu
nd a
re a
t le
ast
'10%
of
the
corr
espo
ndin
g to
tal
for
all
fund
s of
tha
t €t
egor
y or
typ
e, a
nd
b. T
he s
ame
elem
ent
ofth
e in
divi
dual
go
vern
men
tal
or e
nter
pris
e fu
nd t
hat
met
the
10%
tes
t is
at
leas
t 5%
of
the
mrr
espo
ndin
g to
tal
for
all
gove
rnm
enta
l an
d en
terp
rise
fund
s co
mbi
ned.
c. ln
add
ition
, an
y ot
her
gove
rnm
enta
l or
ent
erpr
ise
tund
tha
t th
e vi
llage
bel
ieve
s is
par
ticul
arly
impo
rtan
t to
fin
anci
al
stat
emen
t us
ers
may
be
repo
rted
as
a m
ajor
fun
d.
Sep
arat
e fin
anci
al
stat
emen
ts
are
prov
ided
lor
gov
ernm
enta
l fu
nds,
pro
prie
tary
fun
ds a
nd f
iduc
iary
fun
ds,
even
tho
ugh
the
latte
r ar
e ex
clud
ed
from
the
gov
ernm
enlw
ide
finan
cial
st
atem
ents
. lM
ajor
ind
ivid
ual
gove
rnm
enta
l fu
nds
and
maj
or i
ndiv
idua
l en
terp
rise
tund
s ar
e re
port
ed a
s se
para
te
colu
mns
in
the
fund
finan
cial
st
atem
ents
.
The
vill
age
repo
rts
the
follo
win
g m
ajor
gov
ernm
enta
l fu
nds:
Gen
eral
F
und
- ac
coun
ts f
or t
he v
illag
e's
prjm
ary
oper
atin
g ac
tiviti
es.
lt is
use
d to
ac@
unt
for
and
repo
rt a
ll fin
anci
al
reso
urce
s ex
cept
tho
se a
ccou
nted
fo
r an
d re
port
ed i
n an
othe
r fu
nd.
Gen
eral
Deb
t S
ervi
ce F
und
- us
ed t
o ac
sunt
for
and
rep
orl
finan
cial
re
sour
ces
that
are
rest
ricte
d,
com
mitt
ed,
or a
ssig
ned
to e
xpen
ditu
re
for
the
paym
ent
of g
ener
al l
ong-
term
deb
tpr
inci
pal,
inte
rest
, an
d re
late
d co
sts,
oth
er t
han
TID
or
ente
rpris
e de
bt.
Cap
ital
Pro
ject
s F
und
- us
ed t
o ac
coun
t fo
r an
d re
port
fin
anci
al
reso
urce
s th
at a
re r
estr
icte
d,co
mm
itted
, or
ass
igne
d to
exp
endi
ture
s fo
r ca
pita
l ou
tlays
, in
clud
ing
the
acqu
jsiti
on
orco
nstr
uctio
n of
cap
ital
iaci
litie
s an
d ot
her
€pita
l as
sets
.T
ax ln
crem
enta
l D
istr
ict
(TlD
) N
o. 5
Cap
ital
Prc
ject
s F
und
- us
ed t
o ac
coun
t fo
r an
d re
port
flnan
cial
re
sour
ces
that
are
res
tric
ted,
co
mm
itted
, or
ass
igne
d to
exp
endi
ture
s ou
tline
d in
the
TID
prc
ject
pl
an.
Tax
lncr
emen
tal
Dis
tric
t (T
lD)
No.
7 C
apita
l P
rcje
cts
Fun
d -
used
to
acco
unt
for
and
repo
rtfin
anci
al
reso
urce
s th
at a
re r
estr
icte
d,
com
mitt
ed,
or a
ssig
ned
to e
xpen
ditu
res
outlj
ned
'n th
eT
ID p
roje
ct p
lan.
The
vill
age
repo
rts
the
follo
win
g m
ajor
ent
erpr
ise
fund
s:
Wat
er U
tility
- a
ccou
nts
for
oper
atio
ns
of t
he w
ater
sys
tem
Sew
er U
tility
- a
ccou
nts
for
oper
atio
ns
of t
he s
ewer
sys
tem
18
A-73
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
IEN
TS
Aso
f an
dfor
the
Yea
r E
nded
Dec
embe
r31
2018
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
I -
SU
MM
AR
Y
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
lcon
t )
C,
iltE
Asu
RE
ME
Nt
Foc
uE E
Asr
s oF
Acc
ouN
ftNc,
aN
D F
tNA
Nct
At
ST
AT
EM
E {r
PR
ES
EN
IArr
o/\,
(con
t.)
Fu
n d
F i n
a nc
iat
Sta
te m
ents
Gov
ernm
enta
l fu
nd f
inan
cial
st
atem
ents
ar
e re
port
ed
usin
g th
e cu
rren
t fin
anci
al
reso
urce
s m
easu
rem
ent
focu
s an
d th
e m
odifi
ed
accr
ual
basi
s of
acc
ount
ing.
R
even
ues
are
reco
rded
w
hen
they
are
bot
hm
easu
rabl
e an
d av
aila
ble.
Ava
ilabl
e m
eans
col
lect
ible
w
ithin
the
cur
rent
per
iod
or s
oon
enou
gh t
here
afte
rto
be
used
to
pay
liabi
litie
s of
the
cuf
fent
per
iod.
For
thi
s pu
rpos
e, t
he v
illag
e co
nsid
ers
reve
nues
to
beav
aila
ble
if th
ey a
re @
llect
ed
with
in 6
0 da
ys o
l th
e en
d of
the
cur
rent
fis
cal p
erio
d. E
xpen
ditu
res
are
reco
rded
whe
n th
e re
late
d fu
nd l
iabi
lity
is i
ncur
red,
ex
cept
for
unm
atur
ed
inte
rest
on
long
-tet
m
debt
,cl
aim
s, j
udgm
ents
, co
mpe
nsat
ed
abse
nces
, an
d pe
nsio
n ex
pend
jiute
s, w
hich
are
re@
rded
as
a f
und
ljabi
lity
whe
n ex
pect
ed
to b
e pa
id w
ith e
xpen
dabl
e av
aila
ble
finan
cial
re
sour
ces.
Pro
pert
y ta
xes
are
reco
rded
in
the
yea
r le
vied
as
re€i
vabl
es a
nd d
efer
red
inflo
ws.
The
y ar
e re
mgn
ized
as r
even
ues
in t
he s
ucce
edin
g ye
ar w
hen
seru
ices
fln
ance
d by
the
lev
y ar
e be
ing
prov
ided
.
lnte
rgov
ernm
enta
l ai
ds a
nd g
rant
s ar
e re
cogn
ized
as
rev
enue
s in
the
per
iod
the
villa
ge i
s en
title
d th
ere
sour
€s a
nd t
he a
mou
nts
are
avai
labl
e.
Am
ount
s ow
ed t
o th
e vi
llage
whi
ch a
re n
ot a
vaila
ble
ate
reco
rded
as
rece
ivab
les
and
unav
aila
ble
reve
nues
. A
mou
nts
rece
ived
be
fore
elig
ibili
ty
requ
irem
ents
(exc
ludi
ng
time
requ
irem
ents
) ar
e m
et a
re r
e@rd
ed
as l
iabi
litie
s. A
mou
nts
rece
ived
in
adv
ance
of
mee
ting
time
requ
irem
ents
ar
e re
cord
ed
as d
efer
red
inflo
ws.
Spe
cial
ass
essm
ents
ar
e re
cord
ed
as r
even
ues
whe
n th
ey b
ecom
e m
easu
rabl
e an
d av
aila
ble
as c
urre
ntas
sets
. A
nnua
l in
stal
lmen
ts
due
in f
utur
e ye
ars
are
refle
cted
as
re@
ivab
les
and
unav
aila
ble
reve
nues
.D
elin
quen
t sp
ecia
l as
sess
men
ts
bein
g he
ld f
or @
llect
ion
by t
he c
ount
y ar
e re
port
ed a
s re
ceiv
able
s an
dno
nspe
ndab
le
fund
bal
ane
in t
he g
ener
al f
und.
Rev
enue
s su
scep
tible
to
acc
rual
in
clud
e pr
oper
ty t
axes
, m
isce
llane
ous
taxe
s, p
ublic
cha
rges
for
ser
uies
,sp
ecia
l as
sess
men
ts
and
inte
rest
. O
ther
gen
eral
re
venu
es
such
as
fines
and
fod
eitu
res,
insp
ectio
n fe
es,
recr
eatio
n fe
es,
and
mis
ella
neou
s re
venu
es
are
reco
gniz
ed
whe
n re
ceiv
ed
in c
ash
or w
hen
mea
sura
ble
and
avai
labl
e un
der
the
crite
ria d
escr
ibed
ab
ove.
Pro
prie
tary
fun
d fin
anci
al
stat
emen
ts
are
repo
rted
us
ing
the
econ
omic
re
sour
ces
mea
sure
men
t fo
cus
and
the
acru
al b
asis
of
acco
untin
g,
as d
escr
ibed
pr
evio
usly
in
thi
s no
te.
Age
ncy
fund
s fo
llow
the
acc
rual
bas
isof
acc
ount
ing,
an
d do
not
hav
e a
mea
sure
men
t fo
cus.
The
pro
prie
tary
fu
nds
dist
ingu
ish
oper
atin
g re
venu
es
and
expe
nses
fro
m n
onop
erat
ing
item
s. O
pera
ting
reve
nues
an
d ex
pens
es
gene
rally
re
sult
from
pro
vidi
ng
serv
ices
and
pro
duci
ng
and
deliv
erjn
g go
ods
inco
nnec
tion
with
a p
ropr
ieta
ry f
und'
s pr
inci
pal
ongo
ing
oper
atio
ns.
The
prin
cipa
l op
erat
ing
reve
nues
of
the
wat
er a
nd s
ewer
util
ities
are
cha
rges
to
cus
tom
ers
for
sale
s an
d se
ryic
es.
Spe
cial
ass
essm
ents
ar
ere
cord
ed a
s re
eiva
bles
an
d co
ntrib
utio
n re
venu
e w
hen
levi
ed.
Ope
ratin
g ex
pens
es f
or p
ropr
ieta
ry f
unds
incl
ude
the
cost
of
sale
s an
d se
ruic
es,
adm
inis
trat
ive
expe
nses
, an
d de
prec
iatio
n on
cap
ital
asse
ts.
All
reve
nues
an
d ex
pens
es
not
mee
ting
this
def
initi
on
are
repo
rted
as
nono
pera
ting
reve
nues
an
d ex
pens
es.
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EI\i
IEN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
be(
31 ,2
018
D.
Ass
Ere
, D
EF
ER
RE
D
OuI
FLo
re o
F R
Eso
UR
cEs,
LIA
B,L
'ZE
S,
DE
FE
ffiE
D I
NF
LoT
oF
RE
soU
RcE
s,A
ND
NE
I P
osm
oN
oR E
Quf
y
Cre
dit
risk
lnte
rest
rat
e ris
kC
once
ntra
tion
of c
redi
t ris
k
NO
TF
I .
SU
MM
AR
Y
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
rcon
i l
C.
ME
AS
UR
EM
EN
T
Foc
us,
EA
srs
oF A
ccou
NT
,NG
, aN
D F
tNA
Nct
At
Sra
rEll4
Et
t P
RE
SE
rra
rroi
, (c
ont.)
AIt
Fin
anci
at
Sta
tem
ents
The
pre
para
tion
of f
inan
cial
st
atem
ents
in
con
form
ity
with
gen
eral
ly a
cGpt
ed a
c@un
ting
prin
cipl
esre
quire
s m
anag
emen
t to
mak
e es
timat
es
and
assu
mpt
ions
th
at a
ffect
the
rep
orte
d am
ount
s of
ass
ets,
defe
rred
ou
tflow
s of
res
ourc
es,
liabi
litie
s,
and
defe
rred
in
flow
s of
res
ourc
es
and
disc
losu
re
of c
ontin
gent
asse
ts a
nd l
iabi
litie
s at
the
dat
e of
the
fin
anci
al
stat
emen
ts
and
the
repo
rted
am
ount
s of
rev
enue
s an
dex
pend
iture
s/ex
pens
es
durin
g th
e re
port
ing
perio
d. A
ctua
l re
sults
cou
ld d
iffer
fro
m t
hose
est
imat
es.
1. D
epos
its a
nd ln
vesf
mer
(s
For
pur
pose
s of
the
sta
tem
ent
of c
ash
flow
s, t
he v
illag
e co
nsid
ers
all
high
ly l
iqui
d in
vest
men
ts
with
an
initi
al m
atur
ity o
f th
ree
mon
ths
or l
ess
whe
n ac
quire
d to
be
cash
equ
ival
ents
.
lnve
stm
ent
of v
illag
e fu
nds
is r
estr
icte
d by
Wis
cons
in
stat
e st
atut
es.
Ava
ilabl
e in
vest
men
ts
are
limite
d to
:
a.
Tim
e de
posi
ts
in a
ny c
redi
t un
ion,
ban
k, s
avin
gs
bank
or
trus
t co
mpa
ny.
b.
Bon
ds o
r se
curit
ies
of a
ny c
ount
y, c
ity,
drai
nage
dis
tric
t, te
chni
cal
colle
ge d
istr
ict,
villa
ge,
tow
n, o
rsc
hool
dis
tric
t of
the
sta
te.
Als
o, b
onds
iss
ued
by a
lo@
l ex
posi
tion
dist
rict,
a lo
cal
prof
essi
onal
base
ball
park
dis
tric
t, a
loca
l pr
ofes
sion
al
foot
ball
stad
ium
dis
tric
t, a
loca
l cu
ltura
l ar
ts d
istr
ict,
the
Uni
vers
ity o
f W
isco
nsin
Hos
pita
ls
and
Clin
is A
utho
rity,
or
the
Was
mns
in A
eros
pace
A
utho
rity.
c.
Bon
ds o
r se
curit
ies
issu
ed o
r gu
aran
leed
by
the
fed
eral
go
vern
men
t.
d.
The
loc
al g
over
nmen
t in
vest
men
t po
ol.
e.
Any
sec
urity
mat
urin
g in
sev
en y
ears
or
less
and
hav
ing
the
high
est
or s
econ
d hi
ghes
t ra
ting
€teg
ory
of a
nat
jona
lly r
ecog
nize
d ra
ting
agen
cy.
f. S
ecur
ities
of
an
open
-end
m
anag
emen
t in
vest
men
t co
mpa
ny
or i
nves
tmen
t tr
ust,
subj
ect
tova
rious
con
ditio
ns
and
inve
stm
ent
optio
ns.
g.
Rep
urch
ase
agre
emen
ts
with
pub
lic d
epos
itorie
s,
with
cer
tain
con
ditio
ns.
The
vill
age
has
adop
ted
an i
nves
tmen
t po
licy.
Tha
t po
licy
follo
ws
the
stat
e st
atut
e fo
r al
lom
ble
inve
stm
ents
. A
s pr
actic
able
, in
vest
men
t am
ount
s ar
e lim
ited
to t
he m
axim
um
of s
tate
and
FD
IC i
nsur
ane
limits
for
eac
h in
stitu
tion
unle
ss c
olla
tera
lized
.
No
polic
y ex
ists
for
the
fol
low
ing
risks
:
2021
A-74
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
IEN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
e€m
ber
31,
20'1
8
NO
TE
I -
SU
MM
AR
Y
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
(CO
Nt.)
O.
AS
SE
IS,
DE
F€R
RE
D O
UT
FLO
W O
F R
ES
OU
RC
ES
, LI
AB
IUN
ES
, D
EF
ER
RE
D
INF
LOW
S
OF
RE
SO
UR
CE
S,
aND
NE
T P
OS
iT|O
N
oR E
At,r
y (6
nt.)
1- D
epos
ils a
nd l
nves
amen
ls (
cont
.)
lnve
stm
ents
ar
e st
ated
at
fair
valu
e, w
hich
is
the
amou
nt a
t w
hich
an
inve
stm
ent
coul
d be
exc
hang
ed
in a
curr
ent
tran
sact
ion
betw
een
will
ing
part
ies.
Fai
r va
lues
are
bas
ed o
n m
etho
ds a
nd i
nput
s as
out
lined
in
Not
e lll
. A
. N
o in
vest
men
ts
are
repo
rted
at
amor
tized
co
st.
Adj
ustm
ents
ne
essa
ry
to r
ecor
d in
vest
men
tsat
fai
r va
lue
are
reco
rded
in
the
oper
atin
g st
atem
ent
as i
ncre
ases
or
dec
reas
es
in i
nves
tmen
t in
com
e.ln
vest
men
t in
com
e on
com
min
gled
in
vest
men
ts
of m
unic
ipal
ac
coun
ting
fund
s is
allo
cate
d ba
sed
onav
erag
e ba
lan@
s.
The
diff
eren
@
betw
een
the
bank
sta
tem
ent
bala
nce
and
€rry
ing
valu
e is
due
to
outs
tand
ing
chec
ks a
nd/o
r de
posi
ts
in t
rans
it.
The
Wis
cons
in
Loca
l G
over
nmen
t ln
vest
men
t P
ool
(LG
IP)
is p
art
of t
he S
late
lnve
stm
ent
Fun
d (S
lF),
and
is m
anag
ed b
y th
e S
tate
of
Wis
cons
in ln
vest
men
t B
oard
. T
he S
IF i
s no
t re
gist
ered
with
the
Sec
udtie
s an
dE
xcha
nge
Com
mis
sion
, bu
t op
erat
es
unde
r th
e st
atut
ory
auth
ority
of
Wis
cons
in C
hapt
er 2
5. T
he S
l F
repo
rts
the
fair
valu
e of
its
unde
rlyin
g as
sets
ann
ually
. P
artic
ipan
ts
in t
he L
GIP
hav
e th
e rig
ht t
o w
ithdr
awth
eir
fund
s in
tot
al o
n on
e da
y's
notic
e. A
i D
ecem
ber
31 ,
201
8,
the
fair
valu
e of
the
vill
age
's s
hare
of
the
LGIP
's a
sset
s w
as s
ubst
antia
lly
equa
l to
the
am
ount
as
repo
rted
in
thes
e st
atem
ents
.
See
Not
e lll
. A
. to
rfur
ther
inf
orm
atio
n.
2, R
ecei
vabt
es
Pro
pert
y ta
xes
are
levi
ed i
n D
ecem
ber
on t
he a
sses
sed
valu
e as
of
the
prio
r Ja
nuar
y 1.
ln a
dditi
on t
opr
oper
ty t
axes
for
the
vill
age,
tax
es a
re c
olle
cted
fo
r an
d re
mitt
ed t
o th
e st
ate
and
coun
ty g
over
nmen
ts
asw
ell
as t
he lo
€l s
choo
l di
stric
t an
d te
chni
cal
colle
ge d
istr
ict.
Tax
es f
or a
ll st
ate
and
loca
l go
vern
men
tal
units
bill
ed i
n th
e cu
rren
t ye
ar f
or t
he s
ucce
edin
g ye
ar a
re r
efle
cted
as
rece
ivab
les
and
due
to o
ther
tax
ing
units
on
the
a@om
pany
ing
stat
emen
t of
ass
ets
and
liabi
litie
s -
agen
cy f
und.
Pro
pert
y la
x ca
lend
ar -
201
8 ta
x ro
ll:
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EI/I
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
201
8
NO
TE
I .
SU
MM
AR
Y
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
(coN
t,)
D.
Ass
EE
, D
EF
ER
RE
D
OU
\FLO
NT
S
OF
RE
SO
UR
CE
S,
LIA
BIL
ITIE
S,
DE
FE
RR
ED
IN
FLO
WS
O
F R
ES
OU
RC
EE
aND
NE
f P
os/n
ov o
R E
ourY
(co
nt.)
2. R
ecei
vabr
es (
@nt
.)
Dur
ing
the
cour
se o
f op
erat
ions
, tr
ansa
ctio
ns
occu
r be
twee
n in
divi
dual
fun
ds t
hat
may
res
ult
in a
mou
nts
owed
bet
wee
n fu
nds.
Sho
rt-t
erm
in
terf
und
loan
s ar
e re
port
ed a
s "d
ue t
o an
d fr
om o
iher
fun
ds."
Lon
g{er
min
tedu
nd
loan
s (n
oncu
rren
t po
rtio
n) a
re r
epor
ted
as "
adva
n@s
from
and
to
othe
r fu
nds.
" ln
terf
und
rece
ivab
les
and
paya
bles
bet
wee
n fu
nds
with
in g
over
nmen
tal
activ
ities
are
elim
inat
ed
in t
he s
tate
men
t of
net
posi
tion.
Any
res
idua
l ba
lanc
es
outs
tand
ing
betw
een
the
gove
rnm
enta
l ac
tiviti
es a
nd b
usin
ess-
type
activ
ities
are
rep
orte
d in
the
gov
ernm
enta
lwid
e fin
anci
al
stat
emen
ts
as i
nter
nal
bala
nces
.
3. P
repa
id l
tem
s
Gov
ernm
enla
l fu
nd i
nven
tary
ite
ms
are
char
ged
to e
xpen
ditu
re
acco
unts
whe
n pu
rcha
sed.
Y
eatr
end
inve
ntor
y w
as n
ot s
igni
fican
t. P
ropr
ieta
ry f
und
inve
ntor
ies
are
gene
rally
use
d fo
r m
nstr
uctio
n an
d/or
for
oper
atio
n an
d m
aint
enan
ce
wor
k. T
hey
are
not
for
resa
le.
The
y ar
e va
lued
al c
ost
base
d on
wei
ghte
dav
erag
e, a
nd c
haee
d to
@ns
truc
tion
and/
or o
pera
tion
and
mai
nten
ance
ex
pens
e w
hen
used
.
Cer
tain
pay
men
ts t
o ve
ndor
s re
flect
cos
ts a
pplic
able
to
tut
ure
acco
untin
g pe
riods
and
are
rec
orde
d as
prep
aid
item
s in
bot
h go
vern
men
t-w
ide
and
fund
fin
anci
al
stat
emen
ts.
4. R
eslri
cted
Ass
ets
vlan
dato
ry
segr
egat
ions
of
ass
ets
are
pres
ente
d as
res
tric
ted
asse
ts.
Suc
h se
greg
atio
ns
are
requ
ired
by
bond
agr
eem
ents
an
d ot
her
exte
rnal
par
iies.
C
urre
nt l
iabi
litie
s pa
yabl
e fr
om t
hese
res
tric
ted
asse
ts a
re s
ocl
assi
fied.
T
he e
xces
s of
res
tric
ted
asse
ts o
ver
curr
ent
liabi
litie
s pa
yabl
e fr
om r
estr
icte
d as
sets
will
be
used
firs
t fo
r re
tirem
ent
of r
elat
ed l
ong{
erm
deb
t. T
he r
emai
nder
, if
gene
rate
d fr
om e
arni
ngs,
is
sho
wn
asre
stric
ted
net
posi
tion.
5. C
aprla
rAss
els
G o
vern
men
t-W
ide
Sla
lem
ents
Cap
ital
asse
ts,
whi
ch i
nclu
de p
rope
rty,
pla
nt a
nd e
quip
men
t, ar
e re
port
ed i
n th
e go
vern
men
t-w
ide
finan
cial
stat
emen
ts.
Cap
ital
asse
ts a
re d
efin
ed b
y th
e go
vern
men
t as
ass
ets
with
an
initi
al c
ost
of m
ore
than
$5,0
00 t
or g
eneB
l ca
pita
l as
sets
and
$5,
000
for
infr
astr
uctu
re
asse
ts,
and
an e
stim
ated
us
eful
life
in
ex€s
s of
one
yea
r. A
ll €o
atal
ass
ets
are
valu
ed a
t hi
stor
ical
cos
t, or
est
imat
ed
hist
oric
al c
ost
if ac
tual
amou
nts
are
unav
aila
ble.
D
onat
ed m
pita
l as
sets
are
rec
orde
d at
the
ir es
timat
ed
acqu
isjti
on
valu
e at
the
date
of
dona
tion.
Lien
dat
e an
d le
vy d
ate
Tax
bill
s m
aile
dP
aym
ent
in f
ull,
orF
irst
inst
allm
ent
due
Sec
ond
inst
allm
ent
due
Per
sona
l pr
oper
ty t
axes
in
full
Tax
sal
e -
2018
del
inqu
ent
real
est
ate
taxe
s
Dec
embe
r 20
18D
ecem
ber
201 I
Janu
ary
31,
2019
Janu
ary
31,2
019
July
31,
2019
Janu
ary
31,
2019
Oct
ober
202
1
Del
inqu
ent
real
est
ate
taxe
s as
of
July
31
are
paid
in
full
by t
he c
ount
y, w
hich
ass
umes
the
col
lect
ion
ther
eof.
No
prov
isjo
n fo
r un
colle
ctib
le
acco
unts
re
@iv
able
ha
s be
en m
ade
for
the
wat
er a
nd s
ewer
util
ities
beca
use
they
hav
e th
e rig
ht b
y la
w t
o pl
ace
subs
tant
ially
al
l de
linqu
ent
bills
on
the
tax
roll,
and
oth
erde
linqu
ent
bills
are
gen
eral
ly n
ot s
igni
fican
t.
23
A-75
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EI\i
]EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
e€m
ber
31,
201
8
NO
TE
I -
SU
MM
AR
Y
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLl
clE
s /c
ont
)
D.
Ass
ET
s,
DE
FE
ffifu
OU
TF
L9W
S o
F R
Eso
UR
cEs,
L//'
s,//u
nEs,
DE
FE
RR
ED
IN
FLo
T
oF R
Eso
UR
cEs,
aND
NE
r P
osno
il oR
Eo4
ry (
cont
.)
5. C
apita
, A
sset
s (@
nt.)
Gov
enm
ent-
Wid
e S
late
men
ts
(con
t.)
Add
ition
s to
and
rep
laem
ents
of
€pi
tal
asse
ts o
f bu
sine
ss-t
ype
activ
ities
are
rec
orde
d at
orig
inal
cos
t,w
hich
inc
lude
s m
ater
ial,
labo
r, o
verh
ead,
an
d an
allo
wan
ce t
or t
he c
ost
ol f
unds
use
d du
ring
@ns
truc
tion
whe
n si
gnifi
cant
. F
or t
ax-e
xem
pt
debt
, th
e am
ount
of
inte
rest
cap
italiz
ed
equa
ls t
he i
nter
est
expe
nse
incu
rred
dur
ing
cons
truc
tion
nette
d ag
ains
t an
y jn
tere
st
reve
nue
from
tem
pora
ry
inve
stm
ent
of b
orro
wed
fund
pro
ceed
s.
No
ante
rest
was
cap
italiz
ed
durin
g th
e cu
rren
t ye
ar.
The
cos
t of
ren
ewal
s an
d be
tterm
ents
rela
ting
to r
etire
men
t un
its i
s ad
ded
to p
lant
a6o
unts
. T
he c
ost
of p
rope
rty
repl
aced
, re
tired
or
othe
ruis
edi
spos
ed
of,
is d
educ
ted
trom
pla
nt a
ccou
nts
and,
gen
eral
ly,
toge
ther
with
rem
oval
@st
s le
ss s
alva
ge,
isch
arge
d to
acc
umul
ated
de
prec
iatio
n.
Dep
reci
atio
n of
all
exha
ustib
le
capi
tal
asse
ts i
s re
@rd
ed
as a
n al
loca
ted
expe
nse
in t
he s
tate
men
t of
activ
ities
, w
ith a
rcum
ulat
ed d
epre
ciat
ion
refle
cted
in
the
sta
tem
ent
of n
et p
ositi
on.
Dep
reci
atio
n is
prov
ided
ove
r th
e as
sets
' es
timat
ed
usef
ul l
ives
usi
ng t
he s
trai
ght-
line
met
hod.
The
ran
ge o
f es
timat
edus
etul
liv
es b
y ty
pe o
f as
set
is a
s fo
llow
s:
Bui
ldin
gs
25-4
0 Y
ears
Land
lmpr
ovem
ents
20
-30
Yea
rsM
achi
nery
an
d E
quip
men
t 5-
20 Y
ears
Util
ity S
yste
m
4-90
Yea
rsln
fras
truc
ture
20
-50
Yea
rs
F u
nd F
in a
nc i
al S
tatr
me
nts
ln t
he f
und
finan
cial
st
atem
ents
, ca
pita
l as
sets
use
d in
gov
ernm
enta
l fu
nd o
pera
tions
ar
e a€
ount
ed
for
asca
pita
l ou
tlay
expe
nditu
res
of t
he g
over
nmen
tal
tund
upo
n ac
quis
ition
. C
apita
l as
sets
use
d in
pro
prie
tary
fund
ope
ratio
ns
are
acco
unte
d fo
r th
e sa
me
way
as
in t
he g
over
nmen
t-w
ide
stat
emen
ts.
6. D
eter
red
Out
tlow
s of
Res
ourc
es
A d
efef
fed
outfl
ow
of r
esou
rces
re
pres
ents
a
cons
umpt
ion
of n
et p
ositi
on/fu
nd
bala
nce
that
app
lies
to a
futu
re p
erio
d an
d w
ill n
ot b
e re
cogn
ized
as
an
outfl
ow o
f re
sour
ces
(exp
ense
/exp
endi
ture
) un
til t
hat
futu
retim
e.
A d
efer
red
char
ge o
n re
fund
ing
aris
es f
rom
the
adv
ance
re
fund
ing
of d
ebt.
The
difi
eren
G b
etw
een
the
cost
of
the
secu
ritie
s pl
aed
in t
rust
for
fut
ure
paym
ents
of
the
ref
unde
d de
bt a
nd t
he n
et c
arry
ing
valu
e of
that
deb
t is
def
erre
d an
d am
ortiz
ed
as a
com
pone
nt
of i
nter
est
expe
nse
over
the
sho
rter
of
the
term
oJ
the
refu
ndin
g is
sue
or t
he o
rigin
al t
erm
of
the
refu
nded
de
bt.
The
una
mor
tized
am
ount
is
repo
rted
as
ade
ferr
ed
outfl
ow o
f re
sour
€s in
the
gov
ernm
ent-
wid
e an
d pr
oprie
tary
fu
nd f
inan
cial
st
atem
ents
.
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
IEN
TS
As
of a
nd f
or t
he Y
edr
End
ed D
eem
bet
31,2
018
NO
TE
I .
SU
MM
AR
Y
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
/cdn
t I
D,
Ass
Ers
, D
EF
ER
RE
D O
urF
Low
s oF
RE
souR
cEs,
Lta
BtL
fitE
s, D
EF
ER
RE
D
TA
,Fto
wS
oF
RE
souR
cEs,
ailD
NE
r P
osr7
orv
oR E
orrr
y (@
nt.)
7. C
ompe
nsat
ed A
bsen
ces
Und
er t
erm
s of
em
ploy
men
t, em
ploy
ees
are
gran
ted
sick
lea
ve a
nd v
a€tio
ns i
n va
ryin
g am
ount
s.
Onl
ybe
nefit
s co
nsid
ered
to
be
vest
ed a
re d
iscl
osed
in
the
se s
tate
men
ts.
All
vest
ed v
acat
ion
and
sick
lea
ve p
ay i
s ad
rued
whe
n in
curr
ed i
n th
e go
vern
men
lwid
e an
d pr
oprie
tary
fund
fin
anci
al
stat
emen
ts.
A li
abili
ty f
or t
hese
am
ount
s is
rep
orte
d in
gov
ernm
enta
l fu
nds
only
if
they
hav
em
atur
ed,
for
exam
ple,
as
a r
esul
t of
em
ploy
ee
resi
gnat
ions
an
d re
tirem
ents
, an
d ar
e pa
yabl
e w
ithex
pend
able
re
sour
ces.
Pay
men
ts f
or v
acat
ion
and
sick
lea
ve w
ill b
e m
ade
at r
ates
in
effe
ct w
hen
the
bene
fits
are
used
.A
ccum
ulat
ed
vaca
tion
and
sick
lea
ve l
iabi
litie
s al
Dec
mbe
r 31
, 20
18,
are
dete
rmin
ed
on t
he b
asis
of
cuffe
nt
sala
ry r
ates
and
inc
lude
sal
ary
rela
ted
paym
ents
.
E.
Long
-Ter
m
Obl
igat
ions
All
long
-ter
m o
blig
alio
ns
to b
e re
paid
fro
m g
over
nmen
tal
and
busi
ness
-typ
e re
sour
ces
are
repo
rted
as
liabi
litie
s in
the
gov
ernm
enlw
ide
stat
emen
ts.
The
lon
g{er
m o
blig
atio
ns
@ns
ist
prim
arily
of
note
s an
dbo
nds
paya
ble
and
aGru
ed @
mpe
nsat
ed
abse
nces
.
Long
-ter
m
oblig
atio
ns
for
gove
rnm
enta
l iu
nds
are
not
repo
rted
as
liabi
litie
s in
the
fun
d fin
anci
alst
atem
ents
. T
he t
ace
valu
e of
deb
ts (
plus
any
pre
miu
ms)
ar
e re
port
ed
as o
ther
fin
anci
ng
sour
ces
and
paym
ents
ot
prin
cipa
l an
d in
tere
st a
re r
epor
ted
as e
xpen
ditu
res.
T
he a
c@un
ting
in p
ropr
ieta
ry f
unds
is
the
sam
e as
it
is in
the
gov
ernm
enlw
ide
stat
emen
ts.
For
the
gov
ernm
ent-
wid
e st
alem
ents
an
d pr
oprie
tary
fun
d st
atem
ents
, bo
nd p
rem
ium
s an
d di
smun
ts a
ream
ortiz
ed
over
the
life
of
the
issu
e us
ing
the
effe
ctiv
e in
tere
st m
etho
d. T
he b
alan
e at
yea
r-en
d is
sho
wn
as a
n in
crea
se
or d
ecre
ase
in t
he l
iabi
lity
sect
ion
ot t
he s
tate
men
t of
net
pos
ition
.
9.
.Def
ered
tnf
loffi
otR
esou
rces
A d
efer
red
inflo
w o
f re
sour
ces
repr
esen
ts
an a
cqui
sitio
n of
net
pos
ition
/fund
ba
lanc
e th
at a
pplie
s to
afu
ture
per
iod
and
ther
efor
e w
ill n
ot b
e re
cogn
ized
as
an
inflo
w o
f re
sour
ces
(rev
enue
) un
til t
hat
futu
re t
ime.
24
A-76
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
201
8
NO
TF
I -
SIIM
MA
RY
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
lcon
t.)
D.
Ass
FT
s, D
EF
ER
RE
D O
(JIF
L0T
oF
R{$
oUR
CE
S,
LIA
BLI
TIE
S,
DE
FE
RR
ED
IN
FLO
WS
O
F R
ES
OU
RC
ES
,
aND
NE
r P
osno
N o
R E
a4rY
(m
nt.)
10.
Equ
ity C
lass
ifica
tions
(c
ont.)
Fun
d S
tate
men
ts (
@nt
.)
c. C
omm
itted
-
lncl
udes
fun
d ba
lanc
e am
ount
s th
at a
re c
onst
rain
ed
for
spec
ific
purp
oses
tha
t ar
ein
tern
ally
im
pose
d by
the
gov
ernm
ent
thro
ugh
form
al a
ctio
n of
the
hig
hest
lev
€l o
l dec
isio
nm
akin
g au
thor
ity.
Fun
d ba
lanc
e am
ount
s ar
e co
mm
itted
th
roug
h a
form
al a
ctio
n (r
esol
utio
n) of
the
Vill
age
Boa
rd.
Thi
s fo
rmal
act
ion
mus
t o@
ur p
rior
to t
he e
nd o
f th
e re
port
ing
perio
d, b
ut t
heam
ount
of
the
com
mitm
ent,
whi
ch w
ill b
e su
bjec
t to
the
con
stra
ints
, m
ay b
e de
term
ined
in
the
subs
eque
nt
peric
d. A
ny c
hang
es
to t
hd @
nstr
aint
s im
pose
d re
quire
the
sam
e fo
rmal
act
ion
ofth
e V
illag
e B
oard
tha
t or
igin
ally
cre
ated
the
@m
mitm
ent.
d. A
ssig
ned
- ln
cluC
es s
pend
able
fu
nd b
alan
€ am
ount
s th
at a
re i
nten
ded
to b
e us
ed f
or s
peci
ficpu
rpos
es t
hat
do n
ot m
eet
the
crite
ria t
o be
cla
ssifi
ed
as r
estr
icte
d or
com
mitt
ed.
The
Boa
rdm
ay t
ake
otfic
ial
actio
n to
ass
ign
amou
nts.
Ass
ignm
ents
m
ay t
ake
plac
e af
ter
the
end
of t
here
port
ing
perio
d.
e. U
nass
igne
d -
lncl
udes
res
idua
l po
sitiv
e fu
nd b
alan
ce w
ithin
the
gen
eral
lun
d w
hich
has
not
bee
ncl
assi
fied
with
in t
he o
ther
abo
ve m
entio
ned
€teg
orie
s. U
nass
igne
d fu
nd b
alan
ce m
ay a
lso
incl
ude
nega
tive
bala
nes
for
any
gove
rnm
enta
l fu
nd i
f ex
pend
iture
s ex
ced
amou
nts
rest
ricte
d,co
mm
itted
, or
ass
igne
d fo
r th
ose
purp
oses
.
Pro
prie
tary
fun
d eq
uity
is
clas
silie
d th
e sa
me
as i
n th
e go
vern
men
t.wid
e st
atem
ents
.
The
vill
age
cons
ider
s re
stric
ted
amou
nts
to b
e sp
ent
first
whe
n bo
th r
estr
icte
d an
d un
rest
ricte
d fu
ndba
lanc
e is
ava
alab
le
unle
ss t
here
are
leg
al d
ocum
ents
or
con
trac
ts t
hat
proh
ibit
dorn
g th
is,
such
as
in g
rant
agre
emen
ts
requ
iring
dol
lar
for
dolla
r sp
endi
ng.
Add
ition
ally
, th
e vi
llage
rcu
ld i
irst
use
@m
mitt
ed,
then
assi
gned
an
d la
stly
una
ssrg
ned
amou
nts
of u
nres
tric
ted
fund
bal
ance
whe
n ex
pend
iture
s ar
e m
ade.
The
vill
age
has
a fo
rmal
fun
d ba
lanc
e po
licy.
Tha
t po
licy
is t
o m
aint
ain
unre
stric
ted
gene
ral
fund
bal
ance
betw
een
the
rang
e ot
20%
to
30%
of
the
gene
ral
fund
ann
ual
oper
atin
g bu
dget
. T
he b
alan
ce a
t ye
ar e
ndw
as $
1 ,4
1 1,
'l 34
, or
33.
3%,
and
is i
nclu
ded
in a
ssig
ned
and
unas
sign
ed
gene
ral
fund
bal
ance
.
See
Not
e lll
. G
. fo
rfur
ther
inf
orm
atio
n.
11.
Pen
sion
For
pur
pose
s of
mea
surin
g th
e ne
t pe
nsio
n as
set
(liab
ility
), d
efer
red
outfl
ows
of r
esou
rces
an
d de
ferr
edin
flow
s of
res
oure
s re
late
d to
pen
sion
s, a
nd p
ensi
on e
xpen
se,
info
rmat
ion
abou
t th
e fid
ucia
ry n
et p
ositi
on
of t
he W
is@
nsin
Ret
irem
ent
Sys
tem
(W
RS
) an
d ad
ditio
ns
to/d
educ
tions
fr
om W
RS
' fid
ucia
ry n
et p
ositi
on
have
bee
n de
term
ined
on
the
sam
e ba
sis
as t
hey
are
repo
rted
by
WR
S.
For
thi
s pu
rpos
e, b
enel
ltpa
ymen
ts
(incl
udin
g re
fund
s of
em
ploy
ee m
ntrib
utio
ns)
are
rem
gniz
ed w
hen
due
and
paya
ble
in
acco
rdan
ce
with
the
ben
efit
term
s.
lnve
stm
ents
ar
e re
port
ed a
t fa
ir va
lue.
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
e@m
ber
31,
201
8
NO
TE
I .
SU
MM
AR
Y
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
(CO
Nt.)
D.
AS
SE
E,
DE
FE
RR
ED
O
U|F
LOW
S
OF
RE
SO
UR
CE
S,
LAB
'L'IT
ES
, D
EF
ER
RE
D
INF
LOW
S
OF
RE
SO
UR
CE
S,
aND
NE
f P
OS
trto
N
oR E
orrr
v (m
nt.)
10.
Equ
ity C
lass
ifica
tions
GoY
en m
enl-W
ide
Sla
lem
e nt
s
Equ
ity i
s cl
assi
fied
as n
et p
ositi
on a
nd d
ispl
ayed
in
thre
e @
mpo
nent
s:
a. N
etin
vest
men
tinca
pita
lass
ets-
Con
sist
sofc
pita
lass
etsi
nclu
ding
rest
ricte
dcap
itala
sset
s,ne
t of
acc
umul
ated
de
prec
iatio
n an
d re
duce
d by
the
out
stan
ding
ba
lanc
es
(exc
ludi
ng
unsp
ent
debt
pro
ceed
s) o
f an
y bo
nds,
mor
tgag
es,
note
s, o
r ot
her
borr
owin
gs
that
are
attr
ibut
able
to
the
acqu
isiti
on,
cons
truc
tion,
or
im
prov
emen
t of
tho
se a
sset
s.
b. R
estr
icte
d ne
t po
sitio
n -
Con
sist
s of
net
pos
ition
with
con
stra
ints
pl
aced
on
thei
r us
e ei
ther
by
1)
exie
rnal
gr
oups
suc
h as
cre
dito
rs,
gran
tors
, co
ntrib
utor
s,
or l
aws
or r
egul
atio
ns
of o
ther
gove
rnm
enls
or
, 2)
law
thr
ough
co
nstit
utio
nal
prov
isio
ns
or e
nabl
ing
legi
slat
ion.
c. U
nres
tric
tedn
etpo
sitio
n-A
lloth
erne
tpos
ition
stha
tdon
otm
eetth
edef
initi
onso
f"re
strjc
ted"
or"n
et i
nves
tmen
t in
cap
ital
asse
ts."
The
net
pos
ition
sec
tion
incl
udes
an
adju
stm
ent
for
capi
tal
asse
ts o
wne
d by
the
bus
ines
s-ty
pe
activ
ities
colu
mn,
but
fin
aned
by
the
debt
of
the
gove
rnm
enta
l ac
tiviti
es c
olum
n. T
he a
mou
nt i
s a
redu
ctjo
n of
"ne
tin
vest
men
t in
€pi
tal
asse
ts",
and
an
incr
ease
in
"un
rest
ricte
d"
net
posi
tion,
sho
wn
only
in
the
tota
lco
lum
n. A
re@
ncili
atio
n ot
thi
s ad
just
men
t is
as
follo
ws:
Gov
ernm
enta
l Bus
ines
s-ty
peA
ctiv
ities
A
ctiv
ities
Aqi
$OC
lL
Tot
al
Net
inve
stm
entin
capi
tala
sset
s $1
0,60
0,39
4 $1
7,57
0,91
4 $
(2,3
30,5
74)$
25,8
40,7
34U
nres
tric
ted
(def
icit)
(1
,860
,446
) 2,
725,
514
2,33
0,57
4 3,
195,
642
Whe
n bo
th r
estr
icte
d an
d un
rest
ricte
d re
sour
ces
are
avai
labl
e fo
r us
e, i
t is
the
vill
age'
s po
licy
to u
sere
stric
ted
reso
ur€s
fir
st,
then
unr
estr
icte
d re
sour
ces
as t
hey
are
need
ed.
Fun
d S
tate
men
ts
Gov
ernm
enta
l fu
nd b
alan
€s a
re d
ispl
ayed
as
fol
lore
:
a. N
onsp
enda
ble-
lncl
udes
fund
bala
ncea
mou
ntst
hatc
anno
tbes
pent
eith
erbe
caus
ethe
yare
not
in s
pend
able
fo
rm o
r be
caus
e le
gal
or @
ntra
ctua
l re
quire
men
ts
requ
ire t
hem
to
bem
aint
aine
d in
tact
b. R
estr
icte
d -
Con
sist
s of
fund
bal
ance
s w
ith @
nstr
aint
s pl
aced
on
thei
r us
e ei
ther
by
1) e
xter
nal
grou
ps s
uch
as c
redi
tors
, gr
anto
rs,
cont
ribut
ors,
or
law
s or
reg
ulat
ions
of
oth
er g
over
nmen
ts
or2)
law
thr
ough
@ns
tjtut
iona
l pr
ovis
ions
or
ena
blin
g le
gisl
atio
n.
27
A-77
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
bet
31,2
018
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
eem
bet
31,2
o1a
NO
TE
I -
SU
MM
AR
Y
OF
SIG
NIF
ICA
NT
A
CC
OU
NT
ING
P
OLI
CIE
S
rcon
t )
D.
Ass
Ers
, D
EF
ER
RE
D
Olrr
Fto
rys
oF R
Eso
uRcE
s, L
taB
tttllE
s, D
EF
ER
RE
D l
NF
Low
s oF
RE
souR
cEs,
aND
NE
T P
os,n
oN
oR E
OU
IY (
mnt
.)
1 2.
Bas
is f
or E
xist
ing
Ral
es
Wat
er U
tility
Cur
rent
wat
er r
ates
wer
e ap
prov
ed
by t
he P
ublic
Ser
uie
Com
mis
sion
of
Wis
cons
in
effe
ctiv
e Ja
nuar
y 1
2017
. C
uffe
nt r
aies
are
des
igne
d to
pro
vide
an
3% r
etur
n on
rat
e ba
se.
Sew
er U
tility
Cur
rent
sew
er r
ates
wer
e ap
prov
ed
by t
he u
tility
com
mis
sion
in
Feb
ruar
y, 2
018,
and
be€
me
effe
ctiv
e as
ofJa
nuar
y 1,
20'1
8.
NO
TE
II
. S
TE
WA
RT
TS
HIP
C
OM
PT
IA
NC
F A
NT
T A
CC
OIIN
TA
BI1
IT
Y
A.
EX
cEss
EpE
flDT
fUfts
AN
D O
HE
R
FIM
flcT
flG U
sEs
OE
R A
moM
noN
s
NO
TE
ll .
ST
EW
AR
DS
HIP
- C
OM
PLI
AN
CE
- A
ND
AC
CO
UN
TA
BIL
ITY
lco
nt I
B.
DE
FI0
,T B
ALA
NqE
S
Gen
eral
ly a
@ep
ted
ac@
untin
g pr
inci
ples
rcq
uire
di
sclo
sure
of
indi
vidu
al f
unds
tha
t ha
ve d
efic
it ba
lan€
sat
yea
r-en
d.
As
of D
ecem
ber
31,
2018
, th
e fo
llow
ing
indi
vidu
al f
unds
hel
d a
delic
it ba
lane
:
Dev
elop
er
Dep
osits
TID
Dis
tric
t N
o.6
6,71
955
9,58
0U
nslle
ctib
le
acco
unts
Prc
ject
cos
ts a
nd d
ebt
paym
ents
exce
ed
incr
emen
ts
colle
cted
Bud
gete
d A
ctua
l E
xces
sE
xpen
ditu
res
and
Exp
endi
ture
s an
d E
xpen
ditu
res
and
Oth
er F
inan
cing
O
ther
Fin
anci
ng
Oth
er F
inan
cing
Use
s U
ses
Use
s O
ver
Bud
get
TIF
dis
kict
def
icits
are
ant
icip
ated
to
be
fund
ed w
ith l
utur
e in
crem
enta
l ta
xes
levi
ed o
ver
the
life
of t
hedi
stric
ts,
whi
ch is
27
year
s fo
r th
e di
stric
ts
crea
ted
befo
re O
ctob
er
1, 1
995,
and
23
year
s fo
r di
stric
tscr
eate
d th
erea
fter
thro
ugh
Sep
tem
ber
30,
2004
. B
egin
ning
O
ctob
er
1, 2
004,
the
life
of
new
dis
tric
ts v
arie
sby
typ
e of
dis
tric
t (2
0-27
yea
ts')
and
may
be
exte
nded
in
som
e ca
ses.
Oth
er f
und
defic
its a
re a
ntic
ipat
ed
tobe
lund
ed
with
fut
ure
cont
ribqt
ions
, ge
nera
l ta
x re
venu
es,
or l
ong-
term
bo
rrcw
ing.
C.
LIM
,TA
II'N
S O
N T
HE
VIL
LAc,
EIS
TA
x LE
w
Wis
cons
in la
w l
imits
the
vill
age'
s fu
ture
tax
lev
ies.
Gen
eral
ly t
he v
illag
e is
lim
ited
to i
ts p
rior
tax
levy
dol
lar
amou
nt
(exc
ludi
ng
TIF
Dis
tric
ts),
in
crea
sed
by t
he g
reat
er o
f th
e pe
rcen
tage
ch
ange
in
the
villa
ge's
equa
lized
va
lue
due
to n
ew @
nstr
uctio
n or
zer
o pe
rcen
t. C
hang
es
in d
ebt
sery
ice
from
one
yea
r to
the
next
are
gen
eral
ly e
xem
pt f
rom
thi
s lim
it w
ith e
rtai
n ex
cept
ions
. T
he v
illag
e is
req
uire
d to
red
uc i
tsal
lom
ble
levy
by
the
estim
ated
am
ount
of
fee
reve
nue
it @
llect
s fo
r ce
rtai
n se
rvic
es,
if th
ose
seru
ies
wer
e fu
nded
in
2013
by
the
prop
erty
tax
lev
y. L
evie
s €n
be
incr
ease
d ab
ove
the
allo
wab
le
limits
ifth
eam
ount
is
app
rove
d by
ref
eren
dum
.
Fln
.ls
Gen
eral
F
und
Tax
lncr
emen
tal
Dis
tric
t N
o.5
Tax
lncr
emen
tal
Dis
tric
t N
o.7
Cab
le T
VP
ark
Dev
elop
men
t F
ees
$4,
233,
808
$1,
118,
440
600,
236
4,34
5,74
5 $
1,13
1,52
71,
464,
011
385,
971
3,22
3
11't,
937
1 3,
087
463,
775
385,
971
The
vill
age
@nt
rols
ex
pend
iture
s at
the
dep
artm
ent
leve
l. S
ome
indi
vidu
al
obje
cts
expe
rien@
dex
pend
iture
s W
hich
ex
@ed
ed
appr
opria
tions
. T
he d
etai
l of
tho
se i
tem
s €n
be
foun
d in
the
vill
age'
s ye
ar-
end
budg
et t
o ac
tual
rep
ort.
2829
A-78
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
2018
NO
TE
III
- D
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S (
CO
NI,)
A.
DE
Pos
tTs
aND
tM
vFsr
tEilr
s (c
ont.)
The
vill
age
cate
gori2
es
its f
air
valu
e m
easu
rem
ents
w
ithin
the
fai
r va
lue
hier
arch
y es
tabl
ishe
d by
gen
eral
ly
aeep
ted
a@ou
ntin
g pr
inci
ples
. T
he h
iera
rchy
is
base
d on
the
val
uatio
n in
puts
use
d to
mea
sure
the
fai
rva
lue
of t
he a
sset
. Le
vel
1 in
puts
are
quo
ted
pric
es i
n ac
tive
mar
kets
for
ide
ntic
al a
sset
s; L
evel
2 in
puts
are
sign
ifica
nt
othe
r ob
serr
'abl
e in
puts
; Le
vel
3 in
puts
are
sig
nific
ant
unob
serv
able
in
puts
.
The
val
uatio
n m
etho
ds f
or r
ecur
ring
fair
valu
e m
easu
rem
ents
ar
e as
fol
low
sl
>
Quo
ted
mar
ket
pric
es
Dec
embe
.31
2018
lnve
stm
ent
Tvo
eLe
vell
Leve
l2
Leve
l3
Tot
al
NO
TE
III
- O
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S
A.
DE
P0S
IIS A
ND
tN
yEsi
lEN
E
The
vill
age'
s de
posi
ts
and
inve
stm
ents
at
yea
r-en
d w
ere
com
pris
ed
of t
he f
ollo
win
g:
Car
ryin
gV
alue
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
201 I
Sta
tem
ent
Bal
ance
s
Dep
osits
US
age
ncie
s -
impl
icitl
y gu
aran
teed
Cer
tific
ates
of
dep
osit
(neq
otia
ble)
Locl
gov
ernm
ent
inve
stm
ent
pool
(LG
IP)
Pet
ty c
ash
Tot
al D
epos
its a
nd l
nves
tmen
ts
Rec
onci
liatio
n to
fin
anci
al s
tate
men
ts
Per
sta
tem
ent
of n
et p
ositi
onU
nres
tric
ted
€sh
and
inve
stm
ents
Res
tric
ted
cash
and
inv
estm
ents
Per
sta
tem
ent
of n
et p
ositi
on -
fidu
ciar
ytu
nd Age
ncy
Fun
d
$ 13
,591
,499
$ 1
3,59
4,16
01,
105,
650
1,10
5,65
0
1,67
8,30
51,
678,
305
4,92
04,
920
135
$_l_
oJlg
lqil
$__:
ffs3p
35
$ 7,
167,
649
655,
344
Ass
n.ia
led
Ris
ks
Cus
todi
al
cred
itC
redi
t, cu
stod
ial
cred
it,co
ncen
trat
ion
of c
redi
t,in
tere
st r
ate
Cus
todi
al
cred
it, c
redi
t,in
terc
st
rate
Cre
dit
N/A
US
age
ncie
s -
impl
icitl
y gJ
aran
teed
Cer
tific
ates
of
dep
osit
(neg
otia
ble)
Tot
al Cus
todi
al
Cre
dil
Rjs
k
Dep
osits
$$1,
105,
650S
-1
67R
?n5
1_
- 1_
_:43
j:i L
_
$ 1,
105,
650
1,67
8,30
5
s__2
J!3p
9E
Tot
al D
epos
its a
nd l
nves
tmen
ts
8,55
7,51
6
E__
r_0,
9€q,
599
Dep
osits
in
each
lo€l
and
are
a ba
nk a
re i
nsur
ed b
y th
e F
DIC
in
the
amou
nt o
l $2
50,0
00 f
or t
ime
and
savi
ngs
a6ou
nts
(incl
udin
g N
OW
acc
ount
s)
and
$250
,000
for
dem
and
depo
sit
acco
unts
(in
tere
st-b
earin
gan
d no
nint
eres
lbea
ring)
. ln
add
ition
, if
depo
sits
are
hel
d in
an
inst
itutio
n ou
tsid
e of
the
sta
te i
n w
hich
the
gove
rnm
ent
is l
ocat
ed,
insu
red
amou
nts
are
furt
her
limite
d to
a t
otal
of
$250
,000
fo
r th
e co
mbi
ned
amou
ntof
all
depo
sit
acco
unts
.
Ban
k a6
ount
s ar
e al
so i
nsur
ed b
y th
e S
tate
Dep
osit
Gua
rant
ee
Fun
d in
the
am
ount
of
$400
,000
.H
owev
er,
due
io t
he n
atur
e of
thi
s fu
nd,
reco
very
ol m
ater
ial
prin
cipa
l lo
sses
may
not
be
sign
ifi€n
t to
indi
vidu
al
mun
icip
aliti
es.
Thi
s co
vera
ge
has
been
@ns
ider
ed
in c
ompu
ting
cust
odia
l cr
edit
risk.
The
Sec
uriti
es
lnve
stor
P
rote
ctio
n C
orpo
ratio
n (S
IPC
), c
reat
ed b
y th
e S
ecur
ities
ln
vest
or P
rote
ctio
n A
ct o
t1 97
0, i
s an
ind
epen
dent
go
vern
men
t-sp
onso
red
@rp
orat
ion
(not
an
agen
cy o
f th
e U
.S.
gove
rnm
ent)
.
SIP
C m
embe
rshi
p pr
ovid
es
acco
unt
prot
ectio
n up
to
a m
axim
um
of $
500,
000
per
cust
omer
, of
whi
ch$1
00,
000
may
be
in c
ash.
$50
0,00
0 of
the
vill
age'
s in
vest
men
ts
are
cove
red
by S
IPC
.
The
vill
age
mai
ntai
ns c
olla
tera
l ag
reem
ents
w
ith i
ts b
anks
. A
t D
ecem
ber
31,
2018
, th
e ba
nks
had
pled
ged
vario
us g
over
nmen
t se
curit
ies
in t
he a
mou
nt o
f $1
0,08
0,31
8 to
sec
ure
the
villa
ge's
dep
osits
.
30
Cus
todi
al
cred
it ris
k is
the
ris
k th
at i
n th
e ev
ent
of a
fin
anci
al
inst
itutio
n fa
ilure
, th
e vi
llage
's d
epos
its
may
not
be r
etur
ned
to t
he v
illag
e.
As
of D
ecem
ber
31,
2018
, $2
,397
,328
of
the
vill
age'
s to
tal
bank
bal
anc
was
exp
osed
to
cus
todi
al c
redi
tris
k as
fol
iow
s:
Uni
nsur
ed
and
unco
llate
raliz
ed
$ 2,
397.
328
Tot
al
$ 23
97 3
28
lnve
stm
ents
For
an
inve
stm
ent,
cust
odia
l cr
edit
risk
is t
he r
isk
that
, in
the
eve
nt o
f th
e fa
ilure
of
the
coun
terp
arty
, th
evi
llage
will
not
be
able
to
re@
ver
the
valu
e of
its
inve
stm
ents
or
col
late
ral
secu
ritie
s th
at a
re i
n th
epo
sses
sion
of
an
outs
ide
part
y.
As
of D
eem
ber
31,
201
8, $
2,28
3,95
5 of
the
vill
age'
s to
tal
inve
stm
ents
w
ere
expo
sed
to c
usto
dial
cr
edit
risk.
31
A-79
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
IEN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,2
O1A
NO
TE
III
- D
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S (
cont
.)
A.
DE
post
rs A
ND
tvr
/Esr
ME
/vrs
(co
nt.)
Cre
dit
Ris
k
Cre
dit
risk
is t
he r
isk
that
an
issu
er o
r ot
her
coun
terp
arty
to
an
inve
stm
ent
will
not
ful
fill i
ts o
blig
atio
ns.
As
ol D
ecem
ber
31,
2018
, th
e vi
llage
's
inve
stm
ents
w
ere
rate
d as
fol
low
s.
lnve
stm
ent
Typ
e
lvlo
ody'
sS
tand
ard
&
lnve
stor
sP
oors
S
eryi
es
US
age
ncie
s -
impl
icitl
y gu
aran
teed
A
A+
A
aa,
WR
Cer
tific
ates
ol
dep
osit
(neg
otia
ble)
A
-2,
A-1
, N
R
NR
The
vill
age
also
hel
d in
vest
men
ts
in t
he f
ollo
win
g ex
tern
al
pool
whi
ch i
s no
t ra
ted:
Loca
l G
over
nmen
t ln
vest
men
t P
ool
(LG
IP)
Con
cent
ratio
n ot
Cre
dit
Ris
k
Con
cent
ratio
n of
cre
dit
risk
is t
he r
isk
of lo
ss a
ttrib
uted
to
the
mag
nitu
de
of a
gov
ernm
ent's
in
vest
men
t in
asi
ngle
iss
uer.
At
Dec
embe
r 31
, 2
01 8
, th
e in
vest
men
t po
rtfo
lio w
as c
once
ntra
ted
as f
ollo
ws:
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
eem
ber
31,
201
8
FH
|\ilL
CF
NI\i
IAD
MB
Com
mun
ity
Ban
kG
oldm
an
Sac
hs B
K U
SA
Nee
dham
B
ank
Wel
ls F
argo
Ban
kD
isco
ver
Ban
k
US
age
ncie
s -
impl
icitl
y gu
aran
teed
US
age
ncie
s -
impl
icitl
y gu
aran
teed
Cer
tifi€
tes
of d
epos
it (n
egot
iabl
e)C
ertif
icat
es
of d
epos
it (n
egot
iabl
e)C
erlif
imte
s of
dep
osit
(neg
otia
ble)
Cer
tific
ates
of
dep
osit
(neg
otia
ble)
Cer
tific
ates
of
dep
osit
(neg
otia
ble)
Per
cent
age
ofln
vest
men
t T
vpe
Por
tfolio
NO
TE
III
- D
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S {
cont
,)
A.
DE
pos/
Is a
ND
lNye
srrr
Et
rs (
@nt
.)
tnte
resl
Ral
e R
isk
lnte
rest
ra
te r
isk
is t
he r
isk
that
cha
nges
in
int
eres
t ra
tes
will
adv
erse
ly a
tfect
the
val
ue o
f an
inv
estm
ent.
As
of D
ecem
ber
31 ,
20
1 8,
the
vill
age'
s in
vest
men
ts
wer
e as
fol
low
s:
[rat
rrrit
v /ln
YF
rrcl
lnvp
etm
Fnt
Tvn
eF
air V
alue
Le
ss t
han
1 14
lv
lore
tha
n 4
$ 1,
105,
650
$ 44
5,72
1 $
659,
929
$ -
1,67
8.30
5 95
8,96
5 71
9.34
0U
S a
genc
ies
- im
plic
itly
guar
ante
edC
ertif
icat
es
of d
epos
it (n
egot
iabl
e)
Tot
als
!__2
J!!,9
99 $
__14
A48
9q $
__1,
32_9
209
S
-
See
Not
e l.
D.1
. fo
r lu
rthe
r in
form
atio
n on
dep
osit
and
inve
stm
ent
polic
ies.
B.
RE
CE
IUA
BLE
S
Rec
eiva
bles
as
of
year
end
for
the
gov
ernm
ent's
in
divi
dual
m
ajor
fun
ds a
nd n
onm
ajor
lun
ds,
incl
udin
g th
eap
plic
ble
allo
wan
ces
for
unco
llect
ible
ac
@un
ts,
are
as f
ollo
ws:
Gen
eral
C
apita
l T
IF D
istr
ict
Non
maj
orF
und
Pro
iect
s N
o.7
Fun
ds
Tot
als
Am
ount
s no
t ex
pect
ed
to b
e.^
rA.r
Adw
irhi^
^^av
a..$
9,37
4$86
,564
$7.0
02$1
.424
$104
,364
Gov
ernm
enta
l fu
nds
epof
t un
avai
labl
e or
une
amed
re
venu
e in
mnn
ectio
n w
ith r
ecei
vabl
es
for
reve
nues
that
are
not
con
side
red
to b
e av
aila
ble
to l
iqui
date
lia
bilit
ies
of t
he c
urre
nt p
erio
d. P
rope
rty
taxe
s le
vied
for
the
subs
eque
nt
year
are
not
ear
ned
and
cann
ot b
e us
ed t
o liq
urda
te l
rabi
lrtie
s of
the
cur
rent
per
iod.
Gov
ernm
enta
l fu
nds
also
def
er r
even
ue r
ecog
nitio
n in
con
nect
ion
with
res
ourc
es
that
hav
e be
en r
ecei
ved,
but
not
yet
earn
ed.
At
the
end
of t
he c
urre
nt f
is€l
yea
r, t
he v
ario
us c
ompo
nenl
s oI
una
vaila
ble
rcve
nue
and
unea
med
re
venu
e re
port
ed
in t
he g
over
nmen
tal
tund
s w
ere
as f
ollo
ws:
Une
arne
d U
nava
ilabl
e
20.5
8%11
.990
/o
7.17
%6.
24%
8.82
o/o
8.93
%8.
800/
6
Pro
pert
y ta
xes
rece
ivab
le
for
subs
eque
nt
year
Spe
cial
ass
essm
ents
no
t ye
t du
eLa
nd c
ontr
act
Acc
rued
in
tere
st
$ 5,
980,
846
$ -
- ta
22a
- 70
,765
6.64
0
Tot
al U
near
ned/
Una
vaila
ble
Rev
enue
for
Gov
ernm
enta
l F
unds
$ 5,
980,
846
$ 10
1,63
0
A-80
VIL
LAG
E O
F G
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EI\4
EN
TS
As
of a
nd f
or l
he Y
ear
End
ed D
e@m
ber
31,
2018
$ 32
2,61
2 $
29,0
96 $
29
3,51
633
2,73
2 -
332,
732
368.
952
-
368.
952
$ 1,
024.
296
$ 29
,096
$
995.
200
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
201
8
NoT
E l
ll .
DE
TA
ILE
D
NO
TE
S O
N A
LL F
UN
DS
(co
nt.)
D.
CA
P,IA
T
AS
SE
IS
Cap
ital
asse
t ac
tivity
for
tl'e
yea
r en
ded
Dec
embe
r 3'
1 ,
201
8, w
as a
s fo
llow
s:
N6T
F I
N -
NF
TA
II F
N N
OT
FS
ON
ALL
FU
ND
S l
cont
)
C.
RE
SIR
, T
ED
Ass
EIs
The
fol
low
ing
repr
esen
t th
e ba
lanc
es o
f th
e re
stric
ted
asse
ts:
Long
-T e
rm D
ebt
Acc
o u
nts
Red
empt
ion
- U
sed
to s
egre
gate
re
sour
ces
accu
mul
ated
fo
r de
bt s
erui
ce p
aym
ents
ove
r th
ene
xt t
wel
ve m
onth
s.
Equ
ipm
e nt
Rep
t ac
em
e nt
Acc
ou n
t
The
sew
er u
tility
est
ablis
hed
an e
quip
men
t re
plac
emen
t ac
coun
t to
be
used
for
sig
nific
ant
mec
hani
cal
equi
pmen
t re
plac
emen
t as
req
uire
d by
the
Wis
cons
in
Dep
artm
ent
of N
atur
al R
esou
rces
.
llel
Pen
sion
Ass
et
Res
tric
ted
asse
ts h
ave
been
rep
orte
d in
@nn
ectio
n w
ith t
he n
et p
ensi
on a
sset
bal
ane
sinc
e th
is b
alan
cem
ust
be u
sed
to f
und
empl
oyee
be
nefit
s.
Fol
low
ing
is a
lis
t of
res
tric
ted
asse
ts a
t D
ecem
ber
31,2
018:
Res
tric
ted
Liab
ilitie
sP
ayab
le f
rom
Res
tris
ted
Res
tric
ted
Net
Ass
ets
Ass
ets
Pos
ition
Gov
ernm
enta
l A
ctiv
ities
Cap
ital
asse
ts n
ot b
eing
dep
reci
ated
Land T
otal
Cap
ital
Ass
ets
Not
Ber
ngD
epre
ciat
ed
Cap
ital
asse
ts b
eing
dep
reci
ated
Bui
ldin
gs a
nd i
mpr
ovem
ents
lvac
hine
ry
and
equi
pmen
tS
tree
tsS
torm
sew
ers
Str
eet
sign
als
Sid
ewal
ksT
erra
ce t
rees
Bik
e tr
ails
Tot
al C
apita
l A
sset
s B
eing
Dep
reci
ated
Tot
al C
apita
l A
sset
s
Less
: A
ccum
ulat
ed
depr
ecia
tion
for
Bui
ldin
gs a
nd i
mpr
ovem
ents
l\4ac
hine
ry
and
equ
pmen
tS
lreet
sS
torm
sew
ers
Str
eel
sign
als
Sid
ewal
ksT
effa
ce t
rees
Bik
e tr
ails
Tot
al A
ccum
ulal
ed
Dep
reci
atio
n
Net
Cap
ital
Ass
ets
Bei
ngD
epre
ciat
eC
Beg
inni
ng
End
ing
Bal
ance
A
dditi
ons
Del
elio
ns
Bal
anc
$11,
602.
718
$ -
$ 73
,719
$11
.528
.999
11,6
02.7
1A73
.719
11,
528.
999
7,A
32,5
052,
797,
454
14,4
86,9
186,
932,
301
291,
292
3,41
5,17
561
4,25
225
9,08
3
36,6
32.9
80
48,2
35,6
98
290,
385
51,9
79
(1 ,6
41)
(19.
431)
(1,0
97,s
01)
1'14
,196
- 7,
A32
,505
149,
869
2,93
7,97
0-
14,5
38,8
97-
6,93
2,30
1-
291,
292
- 3,
438,
358
- 61
8,25
225
9,08
3
149,
869
36.8
48,6
58
223.
588
48.3
77.6
57
114,
196
(2,3
45,9
69)
(1 ,
615,
801)
(1 1
,825
,460
)(5
,665
,814
)(1
48,
581
)(3
,17O
,432
)(6
1e,2
52)
(1 2
2,90
8)
23,1
83
365.
547
365,
547
(1 6
6,00
5)(1
89,
934)
(435
,647
)(2
07,9
69)
(8,7
39)
(68,
535)
Bon
d re
dem
ptio
n ac
coun
tE
quip
men
t re
pla@
men
t ac
coun
tN
et p
ensi
on a
sset
Tot
al
(2,1
79,9
64\
(1,5
40,0
63)
(1 1
,389
,81
3)(5
,457
,84s
)(1
39,
842)
(3,1
01,
897)
(616
,611
)11
03.4
77)
124.
52s.
512J
(2s.
513.
217)
11.3
35.4
4112
,103
,46A
(73
2.35
4) 3
5,67
3
Tot
al G
ovem
men
tal
Act
iviti
es
Cap
ital
Ass
ets,
Net
of
AE
umul
ated
Dep
reci
atio
n $-
2qJ.
AqJ
-gg
9-JJ
3233
A 9
-1q9
.a9?
9--
22fi!
l4o
34
A-81
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
bet
31.2
O1A
NO
TE
lll
- D
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S l
cont
.)
D.
CaP
rrA
r A
ssF
rs (
cont
.)
Bus
ines
s-ty
pe
Act
iviti
es (
cont
.)
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EI\4
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
e@m
bet
31 2
o1a
Beg
inni
ngB
alan
@
NO
TE
III
- D
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S (
cont
.)
D.
Cas
rAr
IssF
rs (
cont
.)
Dep
reci
atio
n ex
pens
e w
as c
harg
ed t
o fu
nctio
ns
as f
ollo
ws:
Gov
enm
enta
l A
ctiv
ities
Gen
eral
gov
ernm
ent
Pub
lac
safe
tyP
ublic
wor
ksC
ultu
re,
recr
eatio
n an
d ed
ucat
ion
Con
seru
atio
n an
d de
velo
pmen
t
Tot
al G
over
nmen
tal
Act
iviti
es
Dep
recj
atio
n E
xpen
se
Bus
ines
s.ty
pe
Act
iviti
es
Wat
erC
apita
l as
sets
not
bei
ng d
epre
ciat
edLa
nd a
nd l
and
right
sT
otal
Cap
iial
Ass
ets
Not
Bei
ngD
epre
ciat
ed
Cap
ital
asse
ts b
eing
dep
reci
ated
Bui
ldin
gs a
nd i
mpr
ovem
ents
Equ
ipm
ent
and
mac
hine
ryln
fras
truc
ture
Tot
al C
apita
l A
sset
s B
eing
Dep
reci
ated
Tot
al C
apita
l A
sset
s
Less
: A
ccum
ulat
ed
depr
ecja
tion
for
Wat
er p
lant
Tot
al A
ccum
ulat
ed
Dep
reci
atio
n
Net
Cap
ital
Ass
ets
Bei
ngD
epre
ciat
ed
Net
Wat
er C
apita
l A
sset
s
$ 1
1,34
51 07
,853
841,
821
78,2
1558
,667
g__l
.qgz
pqL
End
ing
Add
ition
s D
elet
ions
Bal
ance
Beg
inni
ng
End
ing
Bal
ane
Add
ition
s D
elet
ions
Bal
ance
$ 23
0.24
5 $
-$
-$
230.
245
230.
245
230.
245
1,32
3,82
6 1,
323,
826
847,
311
33,6
37
14,4
35
866,
513
15.1
52.9
22 2
16.4
44
116.
499
15.2
52.A
67
17.3
24.0
59 2
50,0
81
130.
934
17.4
43.2
06
'17.
554.
304
250.
081
130.
934
17.6
73.4
51
(4.0
18.0
00)
(391
,167
) 97
.695
(4.
311.
472)
(4,0
18,0
00)
(391
.167
) 97
.695
t4,
31't.
472J
13.3
06,0
59 (
141,
086)
33.
239
13.1
31.7
34
9__t
_3,9
9039
4 g_
_Il.4
jgo
$___
_992
39 $
_r!3
9ltz
9
Sew
erC
apita
l as
sets
not
bei
ng d
epre
ciat
edLa
nd a
nd l
and
right
sC
onst
ruct
ion
in p
rogr
ess
Tot
al C
apita
l A
sset
s N
ot B
eing
Dep
reci
ated
Cap
ital
asse
ts b
eing
dep
reci
ated
Bui
ldin
gs a
nd i
mpr
ovem
ents
Equ
ipm
ent
and
mac
hine
ryln
fras
truc
ture
Tot
al C
apita
l A
sset
s B
eing
Dep
reci
ated
Tot
al C
apita
l A
sset
s
Less
: A
ccum
ulat
ed
depr
ecia
tion
for
Sew
er p
lant
Tot
al A
ccum
ulat
ed
Dep
reci
atio
n
Net
Cap
ital
Ass
ets
Bei
ngD
epre
ciat
ed
Net
Sew
er C
apita
l A
sset
s
Bus
ines
s-ty
pe
Cap
ital
Ass
ets,
N
etof
Acc
umul
ated
D
epre
ciat
ion
Dep
reci
atio
n ex
pens
e w
as c
harg
ed t
o fu
nctio
ns
as f
ollo
ws:
Bus
ines
s-ty
pe
Act
iviti
esW
ater
Sew
er
$ 51
4,82
6$
-$
-$
s14,
826
73.4
35
73.4
35
588,
261
73.4
35
514.
826
2,63
0,94
2 44
0,83
9 -
3,07
1,74
13,
381,
386
624,
992
97,1
57 3
,909
,221
10.5
53.7
35 1
.317
.674
33
,067
11.
A3A
.342
16.5
66,0
63 2
.383
.505
130
,224
18,
A19
.344
17,1
54.3
24 2
.383
,505
203
,659
19.
334.
170
t4,1
63.6
44)
(466
.306
) 14
8,46
3 (4
,481
,487
)(4
.163
.644
t (4
66.3
06)
148.
63
(4.4
81.4
87)
12,4
02.4
19 1
.917
.199
(18
,239
) _J
!9.8
57$-
l2pg
lEqq
s_l
,glz
J!.g
$_l
gJ_g
q 93
3949
93
$26.
526.
984
$ 1,
776,
113
$ 88
,435
528
.214
.662
$ 39
1,16
746
6,30
6
Tot
al B
usin
ess-
type
A
ctiv
ities
D
epre
ciat
ion
Exp
ense
$___
__g5
zlz.
9
Dep
reci
atio
n ex
pens
e m
ay b
e di
ffere
nt f
rom
bus
ines
s-ty
pe
activ
ity a
rcum
ulat
ed d
epre
ciat
ion
addi
tions
beca
use
of jo
int
met
erin
g,
salv
age,
@st
of
rem
oval
, in
tern
al a
lloca
tions
, or
@st
s as
soci
ated
w
ith t
hedi
spos
al
of a
sset
s.
3637
A-82
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31 ,
201
8
NO
TE
III.
DE
TA
ILE
D
NO
TE
S O
N A
LL F
UN
DS
(cO
Nt.)
E.
INT
ER
FIJ
ND
R
EC
EIV
AB
LES
/PA
YA
BLE
S,
AD
VA
NC
ES
A
ND
TR
AN
SF
ER
S
(CO
NI.)
Tfa
nsfe
rs
The
fol
low
ing
is a
sch
edul
e of
int
erfu
nd t
rans
ters
:
Fun
d T
rans
ferr
ed T
o F
und
Tra
nsfe
rred
F
rom
Am
ount
$ 32
3,96
3
1,00
9,49
4
1 1
9,57
5
12A
,140
385.
971
1,96
7 14
3
(1 ,
643,
1 80
)
Tot
al -
Fun
d F
inan
cial
S
tate
men
ts
Less
: F
und
elim
inat
ions
Less
: C
apita
l as
sets
pai
d by
gov
emm
enta
l ac
tiviti
esan
d co
ntrib
uted
to
bus
ines
s-ty
pe
activ
ities
(941
, I
83)
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
201
8
NO
TE
III
. D
ET
AIL
ED
N
OT
ES
ON
ALL
FT
JND
S {
cont
.)
E.'N
TE
RF
UN
D R
EC
EIV
AB
LES
/PA
YA
BLE
S,
AD
YA
ilCE
S
AflD
TR
AN
SF
ER
S
I nt
e ttu
n d
Rec
e iv
a bl
es/P
aya
bte
s
The
fol
low
ing
is a
sch
edul
e of
inte
rlund
re
ceiv
able
s an
d pa
yabl
es i
nclu
ding
any
ove
rdra
fis
on p
oole
d ca
shan
d in
vest
men
t ac
coun
ts:
Rec
eiva
ble
Fun
dP
avab
le F
und
Am
ouni
Wat
erS
ewer
Gen
eral
F
und
Gen
eral
F
und
$ 36
,805
37,4
53
Tot
al -
Fun
d F
inan
cial
S
tate
men
ts
Add
: ln
terf
und
adva
nces
Tot
al l
nter
nal
Bal
ance
s -
Gov
ernm
ent-
wid
e S
tate
men
t of
Net
Pos
ition
Util
ityU
tiliiy
Gen
eral
Fun
dG
ener
al D
ebt
Ser
uice
Fun
dG
ener
al D
ebt
Ser
vice
Fun
dG
ener
al D
ebt
Ser
vice
Fun
dC
apita
l P
roje
cts
Fun
d
Wat
er U
tility
TIF
No.
5
TIF
No.
6
TIF
No.
7C
able
TV
Fun
d
Prin
cioa
l P
uroo
se
Util
ity t
ax e
quiv
alen
t
TIF
deb
t pa
ymen
t/ref
undi
ng
TIF
deb
t pa
ymen
uref
undi
ng
TIF
deb
t pa
ymen
vref
undi
ngC
lose
out
Cab
le T
V f
und
74,2
58
86,0
75
s___
___!
!,a!q
All
amou
nts
are
due
with
in o
ne y
ear.
The
prin
cipa
l pu
rpos
e ol
the
se i
nter
fund
s is
to
reco
rd t
empo
rary
tim
ing
diffe
renc
es
fol
the
paym
ent
ofca
sh b
etw
een
fund
s. A
ll re
mai
ning
ba
lanc
es
resu
lted
from
the
tim
e la
g be
twee
n th
e da
tes
that
(1)
inte
rfun
d go
ods
and
seru
ices
are
pro
vide
d or
rei
mbu
rsab
le
expe
nditu
res
occu
r, (
2) t
rans
actio
ns
are
reco
rded
in
the
a6o
untin
g sy
stem
, an
d (3
) pa
ymen
ts
betw
een
tund
s ar
e m
ade.
Adv
ance
s
The
Wat
er U
tility
is
adva
ncin
g fu
nds
to T
IF D
iski
ct N
o. 6
. T
he a
mou
nt a
dvan
ced
is d
eter
min
ed
by t
hede
ficie
ncy
of r
even
ues
over
exp
endi
ture
s an
d ot
her
finan
cing
so
urce
s in
cutr
ed
in 2
014.
The
am
ount
of
the
adva
n€ to
tals
$86
,075
. N
o re
paym
ent
sche
dule
ha
s be
en e
stab
lishe
d.
No
inte
rest
is
bein
g ch
arge
d.
The
Gen
eral
Deb
t S
ervi
ce
Fun
d an
d G
ener
al F
und
are
also
adv
anci
ng t
unds
to
TIF
Dis
tric
l N
o.6.
The
amou
nt a
dvan
ced
repr
esen
ts
the
defic
ienc
y of
rev
enue
s ov
er e
xpen
ditu
res
incu
rred
sin
ce 2
014.
The
amou
nt o
fthe
adva
nce
tota
ls $
147,
731
and
$325
,020
fr
om t
he G
ener
al F
und
and
Gen
eral
Deb
t S
ervi
eF
und,
res
pect
ivel
y.
No
repa
ymen
t sc
hedu
le
has
been
est
ablis
hed.
N
o in
tere
st i
s be
ing
char
ged.
Thi
sad
vanc
e ha
s be
en e
limin
aled
fr
om t
he g
over
nmen
t-w
ide
finan
cial
st
atem
ents
.
The
prin
cipa
l pu
rpos
e of
the
se a
dvan
ces
is t
o fu
nd t
he T
IF d
istr
ict's
def
icit.
Tot
al T
rans
fers
-
Gov
ernm
ent-
Wid
e S
tate
men
toi
Act
iviti
es$_
Jglln
)
FIn
d T
rrne
frrr
ed
Tn
Fun
d T
rans
ferr
ed F
rom
A
mou
nt
Gov
ernm
enta
lAct
iviti
es B
usin
ess{
ypeA
ctiv
ities
Bus
ines
s-ty
peA
ctiv
ities
Gov
ernm
enta
lAct
iviti
es$
(941
,183
)
Tot
al G
over
nmen
lwid
e F
inan
cial
S
tate
men
ts
$ (6
17 2
20)
Gen
eral
ly,
tran
sfer
s ar
e us
ed t
o (1
) m
ove
reve
nues
fro
m t
he f
und
that
col
lect
s th
em t
o th
e fu
nd t
hat
the
budg
et r
equi
res
to e
xpen
d th
em,
(2)
mov
e re
@ip
ts
rest
ricte
d to
deb
t se
rvic
e fr
om t
he f
unds
col
lect
ing
the
rece
ipts
to
the
debt
ser
ui€
fund
, an
d (3
) us
e un
rest
ricte
d re
venu
es c
olle
cted
in
the
gen
eral
fun
d to
finan
ce v
ario
us p
rogr
ams
a€ou
nted
fo
r in
oth
er i
unds
in a
ccor
dan@
w
ith b
udge
tary
aut
horiz
atio
ns.
A-83
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
IEN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
eem
ber
31.
2018
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EI\i
IEN
TS
As
ol a
nd f
or t
he Y
ear
End
ed D
e€m
bet
31,2
018
9t5t
2012
9t5t
2012
3111
120
13
4111
2022
4111
2022
3t15
t201
9
NO
TE
lll
- D
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S (
cont
.)
F.
LoN
o-T
ER
tt
OB
LtcA
f,oN
s
Long
-ter
m
oblig
atio
ns
activ
ity f
or t
he y
ear
ende
d D
ecem
ber
31,
201
8, w
as a
s fo
llow
s:
Am
ounb
Dle
Beg
inni
ng
End
ing
With
in O
neE
alan
ce
lncr
ease
s D
ecre
ases
E
alan
ce
Yea
r
NO
TE
lll
. D
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S r
cont
.)
F,
LaN
B-T
ER
M
OB
Lrca
zoils
(co
nt.)
G e
ne ra
l O
blig
etio
n D
ebt
All
gene
ral
oblig
atio
n no
tes
and
bond
s pa
yabl
e ar
e ba
cked
by
the
full
faith
and
cre
dit
of t
he v
illag
e. N
otes
and
bond
s in
the
gov
ernm
enta
l fu
nds
will
be
retir
ed b
y fu
ture
pro
pert
y ta
x le
vies
or
tax
incr
emen
tsac
cum
ulat
ed
by t
he d
ebt
serv
i@ f
und.
Bus
ines
s-ty
pe
activ
ities
deb
t is
pay
able
by
reve
nues
fro
m u
ser
fees
of t
hose
fun
ds o
r, i
f th
e re
venu
es
are
not
sutfi
cien
t, by
fut
ure
tax
levi
es.
Gov
ernm
enta
l A
ctiv
ities
B
alan
ceD
ate
of
Fin
al
lnte
rest
O
rigin
al D
ecem
ber
3'1,
Gen
eral
Obl
iqat
ion
Deb
t ls
sue
Mat
uritv
R
ates
ln
debt
edne
ss 2
O1a
Gov
emm
nbl
Adi
vita
esB
onds
and
Not
es P
ayab
leG
ener
al o
blig
alio
n de
bt(O
isco
unb)
/Pre
miu
ms
Sub
-tot
als
Obe
r Li
abili
lies
Ves
ted
com
pens
ated
Tob
l O
ther
Lia
bilit
ies
Tob
l G
over
nmen
tal
Adi
vitie
s Lo
ng-T
erm
Liab
ilitie
s
$ 16
,489
,140
414.
401
16,9
03,5
41
112.
307
112,
307
$ 17
,015
,848
$ 99
0,00
020
.906
1,01
0,90
6
61,2
9461
,294
$ 1,
072,
200
s 1,
143,
763
1,1
83,8
96
46,5
0746
,507
g 1,
230,
403
$ 16
,335
,377
395,
174
16,7
30,5
51
127,
094
127,
094
$__1
q,!!z
f1!
$ 1,
460,
407
1,46
0,40
7
43.8
0243
,802
9___
1,!9
12!9
Bus
ines
s-tlF
e A
ctiv
ities
gond
s an
d N
otes
Pay
able
Gen
eral
obl
igat
ion
debt
Rev
enue
bon
ds(D
isco
unts
)/P
lem
ium
sS
ub-t
otal
s
Oth
er L
iabi
litie
sV
este
d co
mpe
hsat
edab
senc
esT
obl
oher
Lia
bilit
ies
Tob
l B
usin
ess-
type
Act
iviti
es
Long
-Ter
mLi
abili
tes
s 2,
a41,
376
$ 1,
425,
000
$ 21
7,62
9 $
4.04
8,74
76,
983,
296
6,00
0 46
1,43
7 6,
527.
859
60,6
73
12,2
22
5,75
3 67
.142
9.88
5,34
5 1,
443.
222
684,
819
10,6
43,7
48
s 22
9,74
e44
8,60
2
678,
350
Tax
able
re
fund
ing
bond
sP
rom
isso
ry
note
sP
rom
isso
ry
note
sG
ener
al o
blig
atio
nre
fund
ing
bond
sG
ener
al o
blig
atio
nre
fund
ing
bond
sG
ener
al o
blig
atio
nco
rpor
ate
purp
ose
bond
sG
ener
al o
blig
atio
nco
rpor
ate
purp
ose
bond
s
1.O
O-3
.250
h $
1,54
5,00
0 $
1,07
5,00
01.
OO
- 2
.250
4 1,
324,
492
563,
674
3.35
%
97,0
00
18,6
20
6l't2
2014
411
t202
6 2.
OO
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25%
6,
420,
000
5,28
0,00
0
4t7t
2015
4t1
t203
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00 -
3.0
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3,47
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99
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0 99
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0
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al G
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tal
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es
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ener
al
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igat
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702.
646
$ 10
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587
ln a
ccor
dane
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ith W
isco
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S
tatu
tes,
tot
al g
ener
al o
blig
atio
n in
debt
edne
ss
of t
he v
illag
e m
ay n
otex
ceed
50/
6 of
ihe
equa
lized
va
lue
of t
axab
le
prop
erty
with
in t
he v
illag
e's
juris
dict
ion.
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deb
t lim
it as
of
Dec
embe
r 31
, 20
18,
was
$37
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. T
otal
gen
eral
obl
igat
ion
debt
out
stan
ding
at
yea
r-en
d w
as$2
0,38
4,12
4.
4041
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VIL
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TA
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G-T
ER
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OB
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rroi
ls
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Gen
enl
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igat
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r (c
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ines
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pe
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iviti
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alan
ceD
ecem
ber
31D
ate
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rigin
alG
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al O
bliq
atio
n D
ebt
lssu
e lv
latu
ritv
Rat
es
lnde
bted
ness
2O
1A
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EI\4
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
e€m
ber
31,
2018
Rev
enue
bon
dsR
even
ue b
onds
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enue
bo
nds
6t't2
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312
t231
2015
12/2
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16
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281.
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TE
S T
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IAL
ST
AT
EM
EN
TS
As
of a
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or t
he Y
ear
End
ed D
ecem
ber
31,
201
8
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mis
sory
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tes
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pr
omis
sory
note
sI ax
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mrs
sorv
note
sG
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nre
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blig
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s
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12
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4t7t
2015
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4t1t
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O -
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o
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TE
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ET
AT
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NO
TE
S O
N A
LL F
UN
DS
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nt.)
F -
LoN
c-T
ER
M O
aLrc
rno|
s (c
ont.
)
Rev
enue
Deb
t (c
ont.)
The
sew
er u
tility
has
ple
dged
fut
ure
cust
omer
re
venu
es,
nel
of s
peci
fied
oper
atin
g ex
pens
es,
to r
epay
reve
nue
bond
s is
sued
in
2009
. P
roce
eds
from
the
bon
ds p
rovi
ded
finan
cing
fo
r th
e im
prov
emen
ts
to t
he
sew
er u
tility
sys
tem
. T
he b
onds
are
pay
able
sol
ely
from
cus
tom
er
reve
nues
an
d ar
e pa
yabl
e th
roug
h20
28.
Ann
ual
prin
cipa
l an
d in
tere
st p
aym
ents
on
the
bond
s ar
e ex
pect
ed t
o re
quire
40.
00%
of
net
reve
nues
. T
he t
otal
prin
cipa
l an
d in
tere
st r
emai
ning
to
be p
aid
on t
he b
onds
is
$3,1
12,
603.
Prin
cipa
l an
d
inte
rest
pai
d fo
r th
e cu
rren
t ye
ar a
nd t
otal
cus
tom
er
net
reve
nues
wer
e $3
34,8
64
and
$777
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spec
tivel
y.
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wat
er u
tility
has
ple
dged
fut
ure
cust
omer
re
venu
es,
net
of s
peci
fied
oper
atin
g ex
pens
es,
to r
epay
reve
nue
bond
s is
sued
in
2013
, 20
'15,
an
d 20
16.
Pro
ceed
s fio
m t
he b
onds
pro
vide
d fin
anci
ng
for
the
impr
ovem
ents
to
the
wat
e. u
tility
sys
tem
. T
he b
onds
are
pay
able
sol
ely
from
cus
tom
er
reve
nues
and
are
paya
ble
thro
ugh
2036
. A
nnua
l pr
inci
pal
and
inte
rest
pay
men
ts
on t
he b
onds
are
exp
ecte
d to
req
uire
29%
of n
et r
even
ues.
T
he t
otal
prin
cipa
l an
d in
tere
sl r
emai
ning
to
be
paid
on
the
bond
s is
$4,
368,
520.
P
rinci
pal
and
inte
rest
pai
d io
r th
e cu
rren
t ye
ar a
nd t
otal
cus
tom
er
net
reve
nues
wer
e $2
73,0
88
and
$842
,151
,re
spec
tivel
y.
Rev
enue
deb
t pa
yabl
e at
Dec
embe
r 31
, 20
18,
cons
ists
of
the
follo
win
g:
Sus
ines
s-ly
pe
Act
iviti
es R
even
ue D
ebf
Dat
e of
F
inal
ln
tere
stO
rigin
alls
sue
Mat
untv
R
ates
ln
debt
edne
ss 2
018
Wat
er L
ltilit
y
4t12
t201
7 4t
1t20
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3.75
%
1,09
6,91
7 1,
056,
917
6t2O
l2O
1A 4
t1t2
j38
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1,
425,
000
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$ 4.
048.
747
Tot
al B
usin
ess-
type
A
ctiv
ities
-
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eral
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blig
atio
n D
ebt
Deb
t se
ruic
e re
quire
men
ts
to m
atur
ity a
re a
s fo
llow
s:
Gov
ernm
enta
l A
ctiv
ities
Gen
eral
Obl
ioat
ion
Deb
t
Yea
rsP
rinci
pal
lnte
rest
Bus
ines
slyp
e A
ctiv
ities
Gen
eral
Obl
igat
ion
Deb
tP
rinci
pal
lnte
rest
Bal
ane
Dec
embe
r 31
,
2,84
0,25
2 $
2,16
6,83
973
0,29
6 63
1,64
11,
122,
4OO
__g
&9
Tot
al W
ater
Util
ity
3.79
5,56
0
2019
2020
2021
2022
2023
2024
-202
820
29-2
033
2034
-203
4
Tot
als
$ 1,
460,
407
1,58
5,1
1 0
1,60
8,36
32,
629,
337
1,82
1 ,9
686,
1 33
,775
992,
648
103.
769
$ 16
.335
.377
$ 41
6,72
737
2,10
233
5,01
827
9,34
421
8,76
346
5,45
563
,895
7.83
4
$___
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gJ!q
$ 22
9,74
8
326,
162
330,
974
305,
934
1.36
2,73
756
4,03
456
2,O
37
$ 4.
048.
747
Rev
enue
bon
ds
2l25
l2oo
g 51
1120
28 2
.670
/o $
4,6
36,2
21 2
7322
99
Tot
al S
ewer
Util
ity
2732
.299
Tot
al B
usin
ess-
type
A
ctiv
ities
-
Rev
enue
D
ebt
$---
9122
.q5-
9R
even
ue D
ebl
Bus
ines
s-ty
pe
activ
ities
rev
enue
bon
ds a
re p
ayab
le o
nly
from
rev
enue
s de
rived
fro
m t
he o
pera
tion
of t
hew
ater
and
sew
er u
tiliti
es.
42
A-85
VIL
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E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
]EN
TS
As
of a
nd f
orth
e Y
ear
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ed D
ecem
ber3
l 20
18N
OT
ES
TO
FIN
AN
CIA
L S
TA
TE
ME
NT
SA
s of
and
for
the
Yea
r E
nded
Dee
mbe
r 31
. 20
1 8
Gen
eral
Deb
lG
ener
al
Ser
yice
T
IF D
islri
ct T
IF D
istr
ict
Fun
d F
und
No.
5
No.
7
Non
maj
orG
over
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l
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TE
lll
- D
ET
AIL
ED
N
OT
ES
ON
ALL
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ND
S (
cont
.)
F,
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6-T
ER
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caT
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s (c
ont.)
Rev
enue
Deb
l (c
ont.)
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t se
rvi@
re
quire
men
ts
to m
atur
ity a
re a
s fo
llow
s:
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ines
slyp
e A
ctiv
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Rev
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D
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Yea
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rinci
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rest
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TE
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ET
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ED
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OT
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ND
S l
cont
)
G-
NE
r P
ostr
toN
/FU
ND
Bar
-.A
rrcE
s (c
ont.)
Gov
ernm
enta
l fu
nd b
alan
@s
repo
rted
on
the
fund
iin
anci
al s
tate
men
ts
at D
ecem
ber
31,
201
8, i
nclu
de t
hefo
llow
ing:
Cap
ital
Pro
iect
sF
unds
T
olal
a
2019
2020
2021
2022
2023
2024
-202
820
29-2
033
2034
-203
6
$ 44
8,60
245
8,80
446
9,24
847
9,93
849
0,44
22,
627,
837
1,28
2,19
927
0.34
9
$ 6,
527,
859
$ 13
6,15
712
5,83
311
5,26
610
4,44
993
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291,
411
80,9
33s.
839
$__-
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!
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d B
alan
ces
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spen
dabl
e:P
repa
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ilem
sD
elin
quen
t sp
ecia
las
sess
men
tsO
elin
quen
t pe
rson
alpr
oper
ly t
axes
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ance
s lo
oth
erfu
nds
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-lota
l
$ 32
,6E
9 $
4,42
6
4,94
8
$ 32
,689
4,42
6
4.94
8
Toi
als
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er D
ebt
lnto
rmat
ion
Est
imat
ed
paym
ents
of
ves
ted
@m
pens
ated
ab
senc
es
are
not
incl
uded
in
the
deb
t se
rvire
req
uire
men
tsc
hedu
les.
T
he c
ompe
nsat
ed
abse
nces
at
trib
utab
le
to g
over
nmen
tal
activ
ities
will
be
liqui
daie
d pr
imar
ilyby
the
Gen
eral
F
und.
G .
NE
T P
ostn
oN/F
UN
D S
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wcE
s
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pos
ition
rep
orte
d on
the
gov
ernm
ent
wid
e st
atem
ent
of n
et p
ositi
on a
t D
ecem
ber
31,
2018
, in
clud
esth
e fo
llow
ing:
Gov
em m
enta
l A
ctiv
itie
s
Res
tric
led
tor:
Deb
l se
ruic
eT
IF d
istr
icts
Sub
-tol
al
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mitt
ed t
o:P
ark
deve
lopm
enl
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eet
tree
sS
ub-t
otal
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.l F
und
Bal
ance
s(D
efic
it)
147.
731
189.
794
147.
731
lRo
7q1 -
325,
566
1 ,2
21 .3
28
1 56
,60
1
325.
566
1.22
1.32
8 15
6,60
1
325,
566
1,37
7.92
91,
703.
495
21,4
6010
9,14
121
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130,
601
130,
601
323,
963
323,
963
323.
963
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87 .
171
1.29
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igne
d to
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aym
ent
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ieu
ofta
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ital
proj
ects
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al
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ssig
ned
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icit)
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nves
tmen
t in
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ital
Ass
ets
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er c
apita
l as
sets
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l of
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umul
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prec
ialio
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ss:
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ierm
de
bt o
utst
andi
ngP
lus:
Non
€pita
l de
bt p
roce
eds
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: U
nam
ortiz
ed
debt
pre
miu
mP
lus:
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mor
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ss o
n re
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ing
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al N
et l
nves
tmen
t in
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ital
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ets
$ 1
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8,99
91'
t,335
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247
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4
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E O
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GE
GR
OV
E
NO
TE
S T
O F
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NC
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TS
As
of a
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or t
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e€m
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LAG
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EI\4
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TS
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or t
he Y
ear
End
ed D
eem
ber
31,
201
8
f,IA
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I' A
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fhe
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s a
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tiple
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blis
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Wis
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in
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tute
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enef
it te
rms
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ified
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the
leg
isla
turc
. T
he r
etire
men
t sy
stem
is
adm
inis
tere
d by
the
Wis
cons
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epar
tmen
t of
Em
ploy
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rust
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tem
pro
vide
s co
vera
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o al
l el
igib
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tate
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cons
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loca
l go
vern
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t an
d ot
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s.
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ploy
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n or
afte
r Ju
ly I
,201
1, a
nd e
xpec
ted
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ork
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east
120
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urs
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ar a
ndex
pect
ed t
o be
em
ploy
ed f
or a
t le
ast
one
year
fro
m e
mpl
oyee
's
date
of
hire
are
elig
ible
to
part
icip
ate
in t
heW
RS
.
ET
F i
ssue
s a
stan
dalo
ne
Com
preh
ensi
ve
Ann
ual F
inan
cial
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oil
(CA
FR
), w
hich
can
be
foun
d at
htip
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f .w
i. go
v/pu
blic
atio
ns/c
af
r. h
tm.
yest
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For
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ploy
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ter
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and
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ctiv
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on
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r A
pril
24,
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8, c
redi
tabl
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ruic
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eac
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or a
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emen
t an
nuily
. P
artic
ipan
ts
empl
oyed
pr
ior
to 1
990
and
on
or a
tter
Apr
il 24
, 1
998,
and
prio
r to
Jul
y 1,
201
1 ,
are
imm
edia
lely
ve
sted
. P
aliic
ipan
ts
who
ini
tially
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WR
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ligib
le o
n ot
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t Ju
ly 1
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mus
t ha
ve f
ive
year
s of
cre
dita
ble
seru
ice
to b
e ve
sted
.
Ben
efr/
F p
rcvi
ded,
Em
ploy
ees
who
ret
ire a
t or
afte
r ag
e 65
(54
for
pro
tect
ive
occu
patio
n em
ploy
ees,
62
for
elec
ted
offic
ials
and
Sta
te e
xecu
tive
part
icip
ants
, if
hire
d on
or
befo
re 1
2l31
/20'
16)
are
entit
led
tore
ceiv
e an
unr
educ
ed
retir
emen
t be
nefit
. T
he f
acto
rs i
nflu
enci
ng
the
bene
tit a
re:
( 1 )
final
ave
rage
earn
ings
, (2
) ye
ars
of c
redi
tabl
e se
rvi@
, an
d (3
) a
form
ula
fact
or.
Fin
al a
vera
ge e
arnr
ngs
is t
he a
vera
ge o
f th
e pa
rtic
ipan
t's
thre
e hi
ghes
t ye
ars'
ear
ning
s.
Cre
dita
ble
seru
i@is
the
cre
drta
ble
curr
ent
and
prio
r'ser
vice
ex
pres
sed
in y
ears
or
deci
mal
equ
ival
ents
of
par
tial
year
s fo
rw
hich
a p
artic
ipan
t re
ceiv
es e
arni
ngs
and
mak
es @
ntrib
utio
ns
as r
equi
red.
The
for
mul
a fa
clor
is
ast
anda
rd p
erce
ntag
e ba
sed
on e
mpl
oym
ent
cate
gory
.
Em
ploy
ees
may
rel
ire a
t 4e
55
(50
for
prot
ectiv
e oc
cupa
tion
empl
oyee
s)
and
rece
ive
redu
ced
bene
fits.
Em
ploy
ees
term
inat
ing
cove
red
empl
oym
ent
befo
re b
emm
ing
elig
ible
for
a r
etire
men
t be
nefit
may
with
draw
the
ir co
ntrib
utio
m a
nd f
orfe
it al
l rig
hts
to a
ny s
ubse
quen
t be
nefit
s.
The
WR
S a
lso
prov
ides
dea
th a
nd d
isab
ility
ben
elits
for
em
ploy
ees.
NO
TE
III
- D
ET
AIL
ED
N
OT
ES
ON
ALL
FU
ND
S (
CO
NI,)
G.
NE
T P
os,n
oMF
uND
B
aLA
rt c
Es
(con
t.)
Eus
mes
s-ty
pe
Act
ivilr
es
Net
Inv
estm
ent
in C
apita
l A
sset
sLa
ndO
ther
cap
ital
asse
ts,
net
of a
ccum
ulat
ed
depr
ecia
tion
Less
: Lo
ng-t
erm
de
bt o
utst
andi
ngLe
ss:
Una
mor
tized
de
bt p
rem
ium
Tot
al N
et I
nves
tmen
t in
Cap
ital
Ass
ets
9___
_JlE
9p1!
H,
RE
ST
AT
EM
EN
T
oF C
asH
AlrD
Cas
H E
ot t
vaLE
Mts
Cas
h an
d ca
sh e
quiv
alen
ts
have
bee
n re
stat
ed t
o co
rrec
t an
err
or i
n th
e st
atem
ent
of c
ash
flow
s fo
rpr
oprie
lary
fu
nds.
n p
revi
ous
year
s, t
he u
tiliti
es'
nonc
sh e
quiv
alen
ts
wer
e no
t id
entif
ied
and
rem
oved
from
the
util
ities
' st
atem
ent
of c
ash
flow
s.
Wat
er L
Jtili
ty
Wat
er U
tility
Cas
h an
d C
ash
Equ
ival
ents
-
Dee
mbe
r 31
, 2
017
(as
repo
rted
)
Less
: N
onca
sheq
uiva
lent
sjde
ntifi
ed
Cas
h an
d C
ash
Equ
ival
ents
-
Dec
embe
r 31
, 20
17 (
as r
esta
ted)
Sew
er L
jtilit
y
Sew
er U
tility
Cas
h an
d C
ash
Equ
ival
ents
-
Dec
embe
r 31
, 20
1 7
(as
repo
ded)
Less
: N
onca
sheq
uiva
lent
sjde
ntifi
ed
Cas
h an
d C
ash
Equ
ival
ents
-
Dee
mbe
r 31
, 20
17 (
as r
esta
ted)
$ 74
5,07
127
,469
,59'
l(1
0,5
76,6
06)
(67.
142)
$ 1,
382,
303
{841
,639
)
$ 54
0,66
4
$ 1,
351
,018
(467
,608
)
$ 88
3,41
0
4647
A-87
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31.
201 I
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
]EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
eem
bet
3'l.
2018
NO
TE
IV
. O
TH
ER
IN
FO
RM
AT
ION
(m
nI.)
A.
EM
PLo
rEE
S'
RE
nRE
ME
NT
Slc
rEil
(@nt
.)
Pos
t-re
tirem
ent
adju
slm
enls
. T
he E
mpl
oyee
Tru
st F
unds
Boa
rd m
ay p
erio
dica
lly
adju
st a
nnui
typa
ymen
ts
from
the
ret
irem
ent
syst
em b
ased
on
annu
al i
nves
tmen
t pe
rlorm
ance
in
ac6
rdan
ce
with
s. 4
0.27
, W
is.
Sta
t. A
n in
crea
se
(or
decr
ease
) in
ann
uity
pay
men
ts
may
res
ult
whe
n in
vest
men
t ga
ins
(loss
es),
tog
ethe
r w
ith o
ther
act
uaria
l ex
perie
nce
fact
ors,
cr
eate
a s
urpl
us (
shor
tfall)
in
the
res
erve
s,
asde
term
ined
by
the
sys
tem
's
cons
ultin
g ac
tuar
y. A
nnui
ty
incr
ease
s ar
e no
t ba
sed
on e
st o
f liv
ing
or o
ther
sim
ilar
fact
ors.
For
Cor
e an
nuiti
es,
decr
ease
s m
ay b
e ap
plie
d on
ly lo
pre
viou
sly
gran
ted
incr
ease
s.
By
law
, C
ore
annu
ities
ca
nnot
be
redu
@d
to a
n am
ount
bel
ow t
he o
rigin
al,
guar
ante
ed
amou
nt (
the
"flo
o/')
set
at r
etire
men
t. T
he C
ore
and
Var
iabl
e an
nuity
adj
ustm
ents
gr
ante
d du
ring
reen
t ye
ars
are
as f
ollo
ws:
Cor
e F
und
Var
iabl
e F
und
6.6%
\2.1
1(1
.3)
(1.2
\
(7.0
)
(s.6
)
4.7
2.9
0.5
2.0
NO
TE
lV
- O
TH
ER
IN
FO
RM
AT
ION
lm
nt )
A.
EM
PLo
YE
ES
, R
EI,R
EM
EN
I S
YS
IEM
(&
nt.)
Con
trib
utio
n ra
tes
for
the
plan
yea
r re
port
ed a
s of
Dec
embe
r 31
, 20
1 8
are:
Fm
olov
ee
Caf
edor
u
Gen
eral
(E
xecu
tives
&
Ele
cted
Offi
cial
s)
Pro
tect
ive
with
Soc
ial
Sec
urity
Pro
tect
ive
with
out
Soc
ial
Sec
urity
Ditf
ercn
ces
betw
een
expe
cted
an
d ac
tual
exp
erie
nce
Cha
nges
in
ass
umpt
ions
Net
diff
eren
ces
betw
een
pro.
iect
ed
and
actu
al e
arni
ngs
onpe
nsio
n pl
an i
nves
tmen
ts
Cha
nges
in
pro
port
ion
and
difF
eren
ces
betw
een
empl
oyer
@nt
ribut
ions
an
d pr
opor
tiona
te
shar
e of
con
trib
utio
ns
Em
ploy
er c
ontr
ibut
ions
su
bseq
uent
to
the
mea
sure
men
t da
te
Tot
als
468,
763
$
72,A
s7
2'19
,272
368
507,
091
5,20
0
137,
259
$ 67
9.28
7 $
731.
563
Em
plov
ee
Em
plov
er
6.80
/o
6.8o
/o
6.8%
10
.60/
0
6.8%
14
.9%
Yea
r
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
0% (42)
22 11 (7)
25 2 t5)
4.O
Pe
n si
on
Li a
b i
t ily/
As
set,
ofR
esou
rces
Rer
ated
Pen
sion
Exp
ense
, D
etei
led
Ouf
fiow
s of
Res
ourc
es a
nd D
efer
ed l
nflo
ws
to P
ensi
ons
At
Dec
embe
r 31
, 20
1 8,
the
vill
age
repo
rled
an l
iabi
lity
of $
368,
952
for
its p
ropo
rtio
nate
sh
are
of t
he n
etpe
nsio
n lia
bilit
y. T
he n
et p
ensi
on l
iabi
lity
was
mea
sure
d as
of
Dec
embe
r 31
, 20
1 7,
and
ihe
tota
l pe
nsio
nlia
bilit
y us
ed t
o G
lcul
ate
the
net
pens
ion
liabi
lity
was
det
erm
ined
by
an
actu
aria
l va
luat
ion
as o
fD
ecem
ber
31,
2016
rol
led
foM
ard
to D
e@m
ber
31 ,
201
7. N
o m
ater
ial
chan
ges
in a
ssum
ptio
ns
or b
enel
itte
rms
occu
rred
be
twee
n th
e ac
tuar
ial
valu
atio
n da
te a
nd t
he m
easu
rem
ent
date
. T
he v
illag
e's
prop
ortio
nof
the
net
pen
sion
lia
bilit
y w
as b
ased
on
the
villa
ge's
sha
re o
f @
ntrib
utio
ns
to t
he p
ensi
on p
lan
rela
tive
toth
e co
ntrib
utio
ns
of a
ll pa
rtic
ipat
ing
empl
oyer
s. A
t D
eem
ber
31,
2017
, th
e vi
llage
's p
ropo
rtio
n w
as0.
0124
2634
%,
whi
ch w
as a
n in
crea
se o
f 0.
0004
71
35%
fro
m i
ts p
ropo
rtio
n m
easu
red
as o
f D
ecem
ber
31,
2016
.
For
the
yea
r en
ded
Dee
mbe
r 31
, 20
1 I,
the
villa
ge r
e@gn
ized
pe
nsio
n ex
pens
e of
$1
71,7
1 8.
At
Dec
embe
r 31
, 20
1 8,
the
vill
age
repo
rted
de
ferr
ed o
utflo
ws
of r
esou
rces
an
d de
ferr
ed
inflo
ws
ofre
sour
cesr
elat
ed
to p
ensi
ons
from
the
fol
low
ing
sour
ces:
Con
trib
utio
ns.
Req
uire
d co
ntrib
utio
ns
are
dete
rmin
ed
by a
n an
nual
act
uaria
l va
luat
ion
in a
6ord
ane
with
Cha
pter
40
of t
he W
is@
nsin
Sta
tute
s. T
he e
mpl
oyee
re
quire
d co
ntrib
utio
n is
one
-hal
f of
the
act
uaria
llyde
term
ined
co
ntrib
utio
n ra
te f
or G
ener
al €t
egor
y em
ploy
ees
and
Exe
cutiv
es
and
Ele
cted
Otfi
cial
s.S
tart
ing
on J
anua
ry
1, 2
016,
the
Exe
cutiv
es
and
Ele
cted
Offi
cial
s ca
tego
ry m
erge
d in
to t
he G
ener
alE
mpl
oyee
cat
egor
y.
Req
uire
d co
ntrib
utio
ns
for
prot
ectiv
e em
ploy
ees
are
the
sam
e ra
te a
s ge
nera
lem
ploy
ees.
E
mpl
oyer
s ar
e re
quire
d to
mnt
ribut
e th
e re
mai
nder
of
the
act
uaria
lly
dete
rmin
ed
cont
ribut
ion
rate
. T
he e
mpl
oyer
m
ay n
ot p
ay t
he e
mpl
oyee
re
quire
d @
nlrib
utio
n un
less
pro
vide
d fo
r by
an
exis
ting
colle
ctiv
e ba
rgai
ning
ag
reem
ent.
Dur
ing
the
repo
rtin
g pe
riod,
the
WR
S r
e@gn
ized
$1
35,2
34
in c
ontr
ibut
ions
fr
om t
he v
illag
e.
Def
errc
dO
utflo
ws
ofR
esou
rces
Def
erre
dln
flow
s of
Res
ourG
s
4849
A-88
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
EV
ILLA
GE
OF
CO
TT
AG
E G
RO
VE
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
IEN
TS
As
of a
nd lo
r th
e Y
ear
End
ed D
ecm
bel
31,
20'1
8
N^T
E l
l, hf
UE
F
INF
6PM
AT
InN
/^
^nt
I
A.
EM
PLO
YE
ES
' R
EflR
Eltt
EN
t S
rSrE
fi (@
nt.)
Act
uaria
l as
sum
ptio
ns
are
base
d up
on a
n ex
perie
ne s
tudy
@nd
ucte
d in
201
5 us
ing
expe
rienc
e fr
om20
12 -
21ft
fne
lota
l pe
reio
n lia
bilit
y to
r D
ecem
bet
31 ,2
017
is b
ased
upo
n a
roll-
foM
ard
of t
he l
iabi
lity
calc
ulat
ed f
rom
the
Dee
mbe
r 31
,201
6 ac
tuar
ial
valu
atio
n.
Long
-tem
qp
ecte
d re
tum
on
plan
ass
els.
The
lon
g-te
rm e
xpec
ted
rate
of
retu
rn o
n pe
nsio
n pl
an
inve
stm
ents
w
as d
eter
min
ed
usin
g a
build
ing-
bioc
k m
etho
d in
whi
ch b
est-
estim
ate
rang
es o
f ex
pect
edfu
ture
rea
l ra
tes
of r
etur
n (e
xpec
ted
relu
rns,
ne
t of
pen
sion
pla
n in
vest
men
t ex
pens
e an
d in
ilaiio
n)
are
deve
lope
d fo
r ea
ch m
ajor
ass
et c
lass
. T
hese
ra
nges
are
com
bine
d to
pro
due
the
long
-ter
m e
xpec
ted
rate
of
retu
rn b
y w
eigh
ting
the
expe
cted
fut
ure
real
rat
es o
f re
turn
by
the
targ
et a
sset
allo
catio
npe
rcen
tage
an
d by
add
ing
expe
cted
in
flatio
n. T
he t
arge
t al
loca
tion
and
best
est
imat
es
of a
rithm
etic
re
alra
tes
of r
etur
n fo
r ea
ch m
a.jo
r as
set
clas
s ar
e su
mm
ariz
ed
in t
he f
ollo
win
g ta
ble:
Long
-Ter
m L
ong-
Ter
mE
xpec
led
Exp
ecte
dC
urre
nt A
sset
Nom
inal
Rat
e R
eal
Rat
e ol
Cor
e F
und
Ass
et C
lass
Allo
catio
n %
of
Ret
urn
%
Ret
urn
o/o
NO
TE
IV
- O
TH
ER
IN
FO
RM
AT
ION
(@
Nt.)
A.
EM
ilOY
EE
s R
EIIR
EM
EN
T S
YS
TE
ff (m
nt.)
$137
,259
re
porle
d as
def
erre
d ou
tflow
s re
late
d to
pen
sion
res
ultin
g fr
om t
he W
RS
Em
ploy
er's
cont
ribut
ions
su
bseq
uent
to
the
mea
sure
men
t da
te w
ill b
e re
cogn
ized
as
a r
educ
tion
ol t
he n
et p
ensi
on
liabi
lity
(ass
et)
in t
he y
ear
ende
d D
ecem
ber
31,
201
L O
ther
am
ount
s re
port
ed a
s de
ferr
ed o
utflo
m
ofrc
sour
es a
nd d
efer
red
inflo
ws
of r
esou
rces
re
late
d to
pen
sion
will
be
reco
gniz
ed
in p
ensi
on e
xpen
se a
sfo
llow
s:
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
]EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
bet
31,2
o1a
Def
erre
d O
utflo
ws
of R
esou
rces
an
dD
efer
red
lnflo
ws
ofR
esdr
lrccq
ln
ei\
Yea
r E
nded
Dec
embe
r 31
:
2019
$
37,8
98
2020
(4
,787
)
2021
(1
27,8
07)
2022
(9
5,72
4)
2023
88
5
Act
uaria
l as
sum
ptio
ns.
The
tot
al p
ensi
on l
iabi
lity
in t
he D
ecem
ber
31,
2017
act
uaria
l va
luat
ion
was
dete
rmin
ed
usin
g th
e fo
llow
ing
actu
aria
l as
sum
ptio
ns,
appl
ied
to a
ll pe
riods
inc
lude
d in
the
mea
sure
men
t:
Act
uaria
l V
alua
tion
Dat
e:D
ecem
ber
31,
2016
Dec
embe
r 31
, 20
1 7
Ent
ry A
ge N
orm
al
Fai
r V
alue
7.2%
7 .2
0/o
l\,/le
asur
emen
t D
ate
of N
et P
ensj
on L
iabi
lity
(Ass
et):
Glo
bal
Equ
ities
Fix
ed l
ncom
e
lnfla
tion
Sen
sitiw
Ass
ets
Rea
l E
stat
e
Priv
ate
Equ
ity/D
ebt
lvlu
ltiA
sset
Tot
al C
ore
Fun
d
500/
.
24.5
15.5 I 8 4 110
8.20
/o
4.2
3.8
6.5
9.4
6.5
5-3o
/o
1.4
1.0
3.6
6.5
3.6
4.4
Act
uaria
l C
ost
Met
hod:
Ass
et V
alua
tion
Mel
hod:
Long
-Ter
m
Exp
ecte
d R
ate
of R
etur
n:
Dis
sunt
Rat
e:
Sal
ary
lncr
ease
s:
lnfla
tion
Sen
iorit
y/lv
lerit
Mor
talit
y:
Pos
t-re
tirem
ent
Adj
ustm
ents
':
3.2'
/o
0.20
/o -
5.60
/0
Var
iabl
e F
und
Ass
et C
lass
U.S
Equ
ities
70
7.
5 4.
6
inte
rnat
iona
l E
quiti
es
30
7.8
4.9
Tot
al V
aria
ble
Fun
d 10
0 7.
9 5.
0
New
Eng
land
Pen
sion
Con
sulta
nts
Long
Ter
m U
S C
PI
(infla
lion)
F
orec
ast:
2.75
%A
sset
Allo
catio
ns
are
man
aged
with
in e
stab
lishe
d ra
nges
, ta
rgel
pe.
cent
ages
m
ay d
iffer
fro
m a
ciua
l m
onlh
lyal
loca
tions
Wis
cons
in
201
2 lv
lort
ality
Tab
le
2.1%
* N
o po
st-r
etire
men
t ad
just
men
t is
gua
rant
eed.
A
clua
l ad
just
men
ts
are
base
d on
rcc
ogni
zed
inve
stm
ent
retu
rn,
actu
aial
exp
erie
nce
and
othe
r fa
ctor
s. 2
.10/
6 is
the
ass
umed
ann
ual
adju
slm
ent
base
d on
the
inve
stm
ent
retu
rn a
ssum
ptio
n an
d lh
e po
st-E
tirem
ent
disc
ount
rel
e.
50
A-89
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
bet
31.2
018
NO
TE
IV
- O
TH
ER
IN
FO
RM
AT
ION
(c
ont,)
A-
Eup
LoyE
Es'
R
EIR
EM
EN
T
Sys
rEM
(co
nt.)
Sin
gte
disc
ount
rat
e. A
sin
gle
disc
ount
ra
te o
f 7.
20%
was
use
d to
mea
sure
the
tot
al p
ensi
onlia
bilit
y/as
set.
Thi
s si
ngle
dis
coun
t ra
te w
as b
ased
on
the
expe
cted
ra
te o
f re
turn
on
pens
ion
plan
inve
stm
ents
of
7.2
0% a
nd a
lon
g te
rm b
ond
rate
of
3.31
%.
Be€
use
of t
he u
niqu
e st
ruct
ure
of W
RS
, th
e7.
20ol
o ex
pect
ed
rate
of
retu
rn i
mpl
ies
that
a d
ivid
end
of a
ppro
xim
atel
y 2.
1% w
ill a
lway
s be
pai
d. F
orpu
rpos
es
of t
he s
ingl
e di
scou
nt
rate
, it
was
ass
umed
th
at t
he d
ivid
end
wou
ld a
lway
s be
pai
d. T
hepr
ojec
tion
of c
ash
flow
s us
ed t
o de
term
ine
this
sjn
gle
disc
ount
ra
te a
ssum
ed t
hat
plan
mem
ber
cont
ribut
ions
w
ill b
e m
ade
at t
he c
urre
nt F
ntrib
utio
n ra
te a
nd t
hat
empl
oyer
con
trib
utio
ns
will
be
mad
e at
rate
s eq
ual
to t
he d
itfer
ence
be
twee
n ac
tuar
ially
de
term
ined
@
ntrib
utio
n ra
tes
and
the
mem
ber
rate
.B
ased
on
thes
e as
sum
ptio
ns,
the
pens
ion
plan
's f
iduc
iary
ne
t po
sitio
n w
as p
roje
cted
to
be a
vaila
ble
tom
ake
all
proj
ecte
d fu
ture
ben
efit
paym
ents
(in
clud
ing
expe
cted
di
vide
nds)
ot
cur
rent
pl
an m
embe
rs.
The
refo
re,
the
Iong
{erm
exp
ecte
d ra
te o
f re
turn
on
pens
ion
plan
inv
estm
ents
w
as a
pplie
d to
all
perio
ds o
fpr
ojec
ted
bene
fit p
aym
ents
to
det
erm
ine
the
tota
l pe
nsio
n lia
bilit
y/as
set.
Sen
sitiv
ity
ot t
he v
illag
e's
prcp
ortio
nate
sha
re o
t th
e ne
t pe
nsio
n tia
bitit
y/(a
sset
) to
cha
nges
in t
hedi
scou
nl E
le.
The
fol
low
ing
pres
ents
the
vill
age'
s pr
opor
tiona
te
shar
e of
the
net
pen
sion
lia
bilit
y/(a
sset
)ca
lcul
ated
us
ing
the
dasc
ount
ra
te o
f 7.
20 p
erce
nt,
as w
ell
as w
hat
the
villa
ge's
pr
opor
tiona
te
shar
e of
the
net
pens
ion
liabi
lity/
(ass
et)
wou
ld b
e if
it w
ere
calc
ulat
ed
usin
g a
disc
ount
ra
te t
hat
is 1
-per
cent
age-
poin
tlo
wer
(6.
20 p
er€n
t) o
r 1-
perc
enta
ge-p
oint
hi
gher
(8.
20 p
erce
nt)
than
the
cur
rent
ra
te:
1 o/
o D
ecre
ase
toD
isco
unt
Rat
eC
urre
nt
Dis
coun
tR
ale
(7 .
2OV
o\(6
.2O
Vo\
$954
,606
1% l
ncre
ase
toD
isco
unt
Rat
e(8
.2O
Vo\
$(1,
374,
899)
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EIV
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31.
2018
NO
TE
lV
- O
TH
ER
IN
FO
RM
AT
ION
(c
ont.)
C-
CoM
M/'M
EN
TS
aN
D C
oIvT
t\r6E
t cr
Es
(con
t.)
Fro
m t
ime
to t
ime,
the
vill
age
is p
arty
to
vario
us p
endi
ng c
laim
s an
d le
gal
proc
eedi
ngs.
A
lthou
gh
the
outc
ome
of s
uch
mat
teE
can
not
be f
orec
aste
d w
ith e
rtai
nty,
it
is t
he o
pini
on o
f m
anag
emen
t an
d th
evi
llage
atto
rney
tha
t th
e lik
elih
ood
is r
emot
e th
at a
ny s
uch
clai
ms
or p
ro@
edin
gs
will
hav
e a
mat
eria
lad
vers
e ef
fect
on
the
villa
ge's
fin
anci
al
posi
tion
or r
esul
ts o
f op
erat
ions
.
The
vill
age
has
rece
ived
fed
eral
and
sta
te g
rant
s fo
r sp
ecifi
c pu
rpos
es t
hat
are
subj
ect
to r
evie
w a
nd a
udit
by t
he g
rant
or
agen
cies
. S
uch
audi
ts c
ould
lea
d to
req
uest
s fo
r re
imbu
rsem
ents
to
the
gra
ntor
age
ncy
for
expe
nditu
res
disa
llow
ed
unde
r te
rms
of t
he g
rant
s. l
\/lan
agem
ent
belie
ves
such
dis
allo
wan
es,
if an
y,w
ould
be
imm
ater
ial.
ln 2
007,
the
vill
age
issu
ed a
mun
icip
al
reve
nue
oblig
atio
n as
par
t of
a d
evel
opm
ent
agre
emen
t. T
heam
ount
of
the
oblig
atio
n w
as $
1,90
0,00
0,
and
is p
ayab
le t
o th
e de
velo
per
sole
ly f
rom
tax
inc
rem
ents
colle
cted
fr
om a
spe
citic
po
rtio
n of
the
dev
elop
men
t in
TIF
No.
7.
Pay
men
ts
are
sche
dule
d th
roug
h th
e ye
ar 2
030,
and
car
ry a
n in
tere
st r
ate
of 6
.5oi
6. T
he o
blig
atio
n do
esno
t co
nstit
ute
a ch
arge
upo
n an
y fu
nds
of t
he v
illag
e. l
n lh
e ev
ent
that
fut
ure
tax
incr
emen
ts
are
not
suffi
cien
t to
pay
off
the
oblig
atio
n,
the
oblig
atio
n te
rmin
ates
w
ith n
o fu
rthe
r lia
bilit
y to
the
vill
age.
Sin
@ t
heam
ount
of
fut
ure
paym
ents
is
con
tinge
nt
on t
he c
olle
ctio
n of
fut
ure
TIF
inc
rem
ents
, th
e ob
ligat
ion
is n
otre
port
ed a
s a
liabi
lity
in t
he a
@om
pany
ing
finan
cial
st
atem
ents
. T
he b
alan
ce o
f th
e co
mm
itmen
tou
tsta
ndin
g at
yea
r-en
d w
as $
1 ,3
59,1
1 '1
.
Dur
ing
2015
, th
e V
illag
e ol
Cot
tage
Gro
ve e
nter
ed
into
an
agre
emen
t w
ith a
dev
elop
er
with
in T
ID N
o. 5
.T
he d
evel
oper
ha
s gu
aran
teed
an
inc
reas
e in
equ
aliz
ed
valu
e of
at
leas
t $3
,400
,000
as
of
Janu
ary
'l,20
1 6
. lf
this
hap
pens
the
vill
age
wil
I pa
y th
e de
velo
per
a T
l F
ince
ntiv
e pa
ymen
t of
$55
,500
per
yea
r fo
r te
nye
ars
star
ting
in 2
017
and
endi
ng i
n 20
26.
The
vill
age
has
paid
$1
1 1
,000
as
of D
ecem
ber
31,
201
8.
ln 2
0 1
7, t
he v
illag
e is
sued
a m
unic
ipal
re
venu
e ob
ligat
ion
as p
art
of a
dev
elop
men
t ag
reem
ent.
The
amou
nt o
f th
e ob
ligat
ion
was
$1
,300
,000
, an
d is
pay
able
to
the
deve
lope
r so
lely
fro
m t
ax i
ncre
men
tsco
llect
ed f
rom
a s
peci
fic
port
ion
of t
he d
evel
opm
ent
in T
IF N
o. 5
.
Pay
men
ts
are
sche
dule
d fr
om 2
020
thro
ug6
2024
, an
d ca
rry
an i
nter
est
raie
of
2.5%
. T
he o
blig
atio
n do
esno
t co
nstit
ute
a ch
aqe
upon
any
fun
ds o
f th
e vi
llage
. ln
the
eve
nt t
hat
futu
re t
ax i
ncre
men
ts
are
not
suffi
cien
t to
pay
otf
the
oblig
atio
n,
the
oblig
atio
n te
rmin
ates
w
ith n
o fu
rthe
r lia
bilit
y to
the
vill
age.
Sin
@ t
heam
ount
of
fut
ure
paym
ents
is
con
tinge
nt
on t
he c
olle
ctio
n ot
fut
ure
TIF
inc
rem
ents
, th
e ob
ligat
ion
is n
otre
port
ed a
s a
liabi
lity
in t
he a
@om
pany
ing
finan
cial
st
atem
ents
. T
he b
alan
ce o
f th
e m
mm
itmen
lou
tsta
ndin
g at
yea
r-en
d w
as $
1,3O
O,O
OO
. ln
lere
st
on t
he b
onds
will
acc
rue
upon
com
plet
ion
of t
he p
rcje
ctin
a s
ubse
quen
t ye
ar.
ln 2
01 8
, th
e vi
llage
ent
ered
in
to a
n ag
reem
ent
with
a d
evel
oper
w
ithin
TID
No.
5.
The
dev
elop
er
has
guar
ante
ed
an i
ncre
ase
in e
qual
ized
va
lue
of a
t le
ast
$3,7
00,0
00
by D
ecem
ber
31,
2020
. lf
this
hap
pens
,th
e vi
llage
will
pay
the
dev
elop
er
a T
IF i
ncen
tive
paym
ent
of $
50,0
00
per
year
for
eig
ht y
ears
sta
rtin
g in
2019
and
end
ing
in 2
026.
The
inc
entiv
e is
sub
ject
to
redu
ctjo
n ift
he r
equi
red
valu
atio
n is
not
obt
aine
d.
Vill
age'
s pr
opor
tiona
te
shar
e of
the
net
pens
ion
liabi
lity/
(ass
et)
$(36
8,S
52)
Pen
sion
pra
n fid
ucia
ry n
et p
osili
on-
Det
aile
d in
form
atio
n ab
out
the
pens
ion
plan
's f
iduc
iary
ne
t po
sitio
nis
ava
ilabl
e in
sep
arat
ely
issu
ed f
inan
cial
st
atem
ents
av
aila
ble
at h
ttp://
etf.w
i.gov
/pub
li€tio
ns/c
atr.
htm
.
At
Dec
embe
r 31
, 20
1 8,
the
vill
age
repo
rted
a p
ayab
le t
o th
e pe
nsio
n pl
an w
hich
rep
rese
nts
cont
ract
ually
requ
ired
cont
ribut
ions
ou
tsta
ndin
g as
of
the
end
of t
he y
ear.
B.
RI9
K T
IIAN
AG
EM
EN
T
The
vill
age
is e
xpos
ed t
o va
rious
ris
ks o
l los
s re
late
d to
tor
ts;
thef
t of
, da
mag
e to
, or
des
truc
tion
of a
sset
s,er
rors
and
om
issi
ons;
w
orke
rs
com
pens
atio
nl
and
heal
th c
are
of i
ts e
mpl
oyee
s.
All
of t
hese
ris
ks a
teco
vere
d th
roug
h th
e pu
rcha
se
of c
omm
erci
al
insu
ranc
e,
with
min
imai
ded
uctib
les.
S
ettle
d cl
aim
s ha
ve n
otex
ceed
ed
the
com
mer
cial
co
vera
ge
in a
ny o
f th
e pa
st t
hree
yea
rs.
The
re w
ere
no s
igni
fican
t re
duct
ions
in
cove
rage
co
mpa
red
to t
he p
rior
year
.
C.
Com
irTM
EN
Ts
aND
Con
rrv
cE t
crE
s
Cla
ims
and
judg
men
ts
are
reco
rded
as
lia
bilit
ies
if al
l the
con
ditio
ns
of G
over
nmen
tal
Acc
ount
ing
Sta
ndar
ds
Boa
rd p
rono
unem
ents
ar
e m
et.
The
lia
bilit
y an
d ex
pend
iture
fo
r cl
aim
s an
d ju
dgm
ents
ar
eon
ly r
epor
ted
in g
over
nmen
tal
fund
s if
it ha
s m
atur
ed.
Cla
ims
and
judg
men
ts
are
reco
rded
in
the
gove
rnm
ent-
wid
e st
atem
ents
an
d pr
oprie
tary
fu
nds
as e
xpen
ses
whe
n th
e re
late
d lia
bilit
ies
afe
incu
rred
.
A-90
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
As
of a
nd f
or t
he Y
ear
End
ed D
ecem
ber
31,
201
8
NO
TE
IV
. O
TH
ER
IN
FO
RM
AT
ION
(@
nt.)
D.
JaIN
T V
EN
TU
RE
S
The
Vill
age
of C
otta
ge G
rove
and
the
Tow
n of
Cot
tage
Gro
ve j
oint
ly o
pera
te t
he e
mer
genc
y go
vern
men
t'
emer
genc
y bu
ildin
g m
aint
enan
ce,
and
fire
prot
ectio
n di
stric
ts.
The
Vill
age
of C
otta
ge G
rove
, T
om o
fC
otta
ge G
rove
, V
illag
e of
Dee
rfie
ld,
and
Tow
n of
Dee
field
joi
ntiy
ope
rate
the
loc
al e
mer
genc
y m
edic
al
serv
ice.
The
gov
erni
ng
bodi
es a
re m
ade
up o
f ci
tizen
s fr
om e
ach
com
mun
ity.
Loca
l re
pres
enta
tives
ar
e ap
poin
ted
by t
he v
illag
e bo
ard.
The
gov
emin
g bo
dies
hav
e au
thor
ity t
o ad
opt
thei
r ow
n bu
dget
s an
d co
ntro
l th
e
finan
cial
af
fairs
of
the
dist
ricts
. T
he v
illag
e is
obl
igat
ed
by t
he.io
int
vent
ure
agre
emen
ts
to r
emit
an a
mou
ntan
nual
ly t
o th
e di
stric
ts.
The
vill
age
mad
e pa
ymen
ts t
o th
e di
stric
ts o
f $3
56,I
1 1
in 2
018.
Fin
anci
al i
nfor
mat
ion
of t
he d
istr
icts
as
of
De€
mbe
r 31
, 20
1 I
is a
vaila
ble
dire
ctly
fro
m t
he d
istr
icts
offi
ces.
The
vill
age
ac@
unts
for
its
sha
re o
f th
e op
erat
ion
of a
ll jo
int
vent
ures
in
the
gen
eral
tun
d. T
he v
illag
e ha
san
equ
ity i
nter
est
in t
he E
MS
dis
tric
t; ho
reve
r, t
he e
quity
int
eres
t is
not
mat
eria
l an
d, c
onse
quen
tly,
is n
otre
port
ed i
n th
ese
finan
cral
sta
tem
ents
..
The
vill
age
does
not
hav
e an
equ
ity i
nter
est
in t
he o
ther
join
t ve
ntur
es.
E.
EF
FE
CT
O
F N
EW
AC
CO
UflI
'NG
S
IAN
DT
RD
S
Ofl
CU
AR
ET
T'I-
PE
R'O
D
FIN
AN
7AL
S'A
TF
IUE
flIS
The
Gov
ernm
enia
l A
ccou
ntin
g S
tand
ards
B
oard
(G
AS
B)
has
appr
oved
th
e fo
llow
ing:
>
Sta
tem
ent
No.
83,
Cer
tam
Ass
et R
etire
men
t O
blig
atio
ns
>
Sta
tem
ent
No.
84,
Fid
ucia
ty A
ctiv
ities
>
Sta
tem
ent
No.
87,
Lea
ses
Sta
tem
ent
No.
88,
Cef
tain
Dis
clos
ures
R
elat
ed t
o D
ebt,
lndu
ding
Dire
ct B
orro
win
gs
and
Dire
ct
Pla
emen
ts
Sta
tem
ent
No.
89,
Arc
ount
ing
for
lnte
rest
Cos
t ln
cuffe
d be
fore
the
End
of
a C
onst
ruct
ion
Pei
od
Sta
tem
ent
No.
90,
Maj
ority
Equ
ity ln
tere
sts
- an
am
endm
ent
of G
AS
B S
tate
men
ts
No.
1 4
and
No.
61
Whe
n th
ey b
ecom
e ef
fect
ive,
ap
pli€
tion
of t
hese
sta
ndar
ds
may
res
tate
por
tions
of
thes
e fin
anci
alst
aiem
ents
.
RE
QU
IRE
D
SU
PP
LEM
EN
TA
RY
IN
FO
RM
AT
ION
54
A-91
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
DE
TA
ILE
D
SC
HE
DU
LE
OF
RE
VE
NU
ES
, E
XP
EN
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UR
ES
, A
ND
CH
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GE
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ND
BA
LAN
CE
-
BU
DG
ET
AN
D A
CT
UA
L -
GE
NE
RA
L F
UN
DF
or t
he Y
ear
End
ed D
ecem
ber
3 l.
2018
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
DE
TA
ILE
D
SC
HE
DU
LE
OF
RE
VE
NU
ES
. E
XP
EN
DIT
UR
ES
, A
ND
CH
AN
GE
SIN
FU
ND
BA
LAN
CE
-
BU
DG
ET
AN
D A
CT
UA
L -
GE
NE
RA
L F
UN
DF
or t
he Y
ear
End
ed D
eem
ber
31,
201
8
RE
VE
NU
ES
TA
XE
SG
ener
al p
rope
rty
taxe
s
INT
ER
GO
VE
RN
ME
NT
AL
RE
VE
NU
ES
Sta
te s
hare
d re
venu
esF
ire in
sura
ne ta
x fr
om s
tate
Sta
te a
id -
rec
yclin
gS
tate
aid
- tE
nspo
rtat
ion
Sta
te a
id -
exe
mpt
com
pute
rsT
own
aid
- re
crea
tron
Tot
al l
nter
gove
rnm
enta
l R
even
ues
LIC
EN
SE
S A
ND
PE
RM
ITS
Liqu
or a
nd m
alt
beve
rage
lic
ense
sO
pera
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nse
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and
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Cig
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lect
rical
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mbi
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Oth
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ses
and
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otal
Lic
ense
s an
d P
erm
its
FIN
ES
, F
OR
FE
ITU
RE
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AN
D P
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Law
and
ord
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viol
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nsC
ourt
pen
aliie
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d co
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Tot
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ines
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orfe
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PU
BLI
C
CH
AR
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S
FO
R S
ER
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ES
Rec
reat
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prog
ram
sP
ark
fees
Pub
lic w
orks
fee
sC
lerk
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sW
eed
and
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ance
@
ntro
lE
rosi
on @
ntro
lfees
Ref
use
and
garb
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colle
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lvlis
cella
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l lia
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offi
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or S
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$ 2.
934.
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INV
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T
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OM
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vest
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otal
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me
MIS
CE
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NE
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eral
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Orig
inal
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udge
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24,4
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8,
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ind
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dent
au
dito
rs're
port
and
afto
mpa
nyin
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supp
lem
enta
ry
info
rmat
ion.
55S
ee i
ndep
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nt
audi
tors
' re
port
and
acc
ompa
nyin
g no
tes
to r
equi
red
supp
lem
enta
ry
info
rmat
ion.
56
A-92
VIL
LAG
E O
F C
OT
TA
GE
GR
OV
E
DE
TA
ILE
D
SC
HE
DU
LE
OF
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ES
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ND
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SIN
FU
ND
BA
LAN
CE
-
BU
DG
ET
AN
D A
CT
UA
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GE
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RA
L F
UN
DF
or t
he Y
ear
End
ed D
eem
ber
31 2
018
Orig
inal
and
Fin
al B
udqe
t A
ctua
l F
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Bud
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LAG
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OF
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r 31
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See
ind
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dent
au
dito
rs'
repo
rt a
nd a
ccom
pany
ing
note
s to
the
req
uire
d su
pple
men
tary
in
form
atio
nS
ee i
ndep
ende
nt
audi
tors
' re
port
and
acco
mpa
nyin
g57
note
s to
req
uire
d su
pple
men
tary
in
form
atio
n.58
A-93
VIL
LAG
E O
F C
OT
TA
GE
GR
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E
NO
TE
S T
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UIR
ED
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UP
PLE
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NT
AR
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OR
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or t
he Y
ear
End
ed D
ecem
ber
31,2
018
BI/D
.GE
IAR
y T
NF
oRilA
noN
Bud
geta
ry
info
rmat
ion
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ied
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rsco
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re w
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umpt
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A-96
APPENDIX B
FORM OF LEGAL OPINION
(See following pages)
B-1
QB\63099539.1
Quarles & Brady LLP 411 East Wisconsin Avenue
Milwaukee, WI 53202
June 18, 2020
Re: Village of Cottage Grove, Wisconsin ("Issuer") $1,850,000 General Obligation Park and Public Grounds Bonds, Series 2020A, dated June 18, 2020 ("Bonds")
We have acted as bond counsel to the Issuer in connection with the issuance of the Bonds. In such capacity, we have examined such law and such certified proceedings, certifications, and other documents as we have deemed necessary to render this opinion.
Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation.
The Bonds are numbered from R-1 and upward; bear interest at the rates set forth below; and mature on April 1 of each year, in the years and principal amounts as follows:
Year Principal Amount Interest Rate
2021 $70,000 ___% 2022 75,000 ___ 2023 80,000 ___ 2024 80,000 ___ 2025 80,000 ___ 2026 85,000 ___ 2027 85,000 ___ 2028 85,000 ___ 2029 90,000 ___ 2030 90,000 ___ 2031 90,000 ___ 2032 95,000 ___ 2033 95,000 ___ 2034 95,000 ___ 2035 100,000 ___ 2036 105,000 ___ 2037 105,000 ___ 2038 115,000 ___ 2039 115,000 ___ 2040 115,000 ___
Interest is payable semi-annually on April 1 and October 1 of each year commencing on April 1, 2021.
B-2
QB\63099539.1
The Bonds maturing on April 1, 2028 and thereafter are subject to redemption prior to maturity, at the option of the Issuer, on April 1, 2027 or on any date thereafter. Said Bonds are redeemable as a whole or in part, and if in part, from maturities selected by the Issuer, and within each maturity by lot, at the principal amount thereof, plus accrued interest to the date of redemption.
[The Bonds maturing in the years _______________ are subject to mandatory redemption by lot as provided in the Bonds, at the redemption price of par plus accrued interest
to the date of redemption and without premium.]
We further certify that we have examined a sample of the Bonds and find the same to be in proper form.
Based upon and subject to the foregoing, it is our opinion under existing law that: 1. The Bonds have been duly authorized and executed by the Issuer and are valid
and binding general obligations of the Issuer.
2. All the taxable property in the territory of the Issuer is subject to the levy of ad valorem taxes to pay principal of, and interest on, the Bonds, without limitation as to rate or amount. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds except to the extent that necessary funds have been irrevocably deposited into the debt service fund account established for the payment of the principal of and interest on the Bonds.
3. The interest on the Bonds is excludable for federal income tax purposes from the gross income of the owners of the Bonds. The interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed by Section 55 of the Internal Revenue Code of 1986, as amended (the "Code") on individuals. The Code contains requirements that must be satisfied subsequent to the issuance of the Bonds in order for interest on the Bonds to be or continue to be excludable from gross income for federal income tax purposes. Failure to comply with certain of those requirements could cause the interest on the Bonds to be included in gross income retroactively to the date of issuance of the Bonds. The Issuer has agreed to comply with all of those requirements. The opinion set forth in the first sentence of this paragraph is subject to the condition that the Issuer comply with those requirements. We express no opinion regarding other federal tax consequences arising with respect to the Bonds.
We express no opinion regarding the accuracy, adequacy, or completeness of the Official Statement or any other offering material relating to the Bonds. Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein.
The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors' rights and may be subject to the exercise of judicial discretion in accordance with general principles of equity, whether considered at law or in equity.
B-3
QB\63099539.1
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur.
QUARLES & BRADY LLP
B-4
APPENDIX C
BOOK-ENTRY-ONLY SYSTEM
1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the securities(the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co.
(DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregateprincipal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of[any] issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principalamount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.]
2. DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of theFederal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code,and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues,corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC'sparticipants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among DirectParticipants of sales and other securities transactions in deposited securities, through electronic computerizedbook-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical
movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers anddealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-ownedsubsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC,National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registeredclearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also
available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, andclearing corporations that clear through or maintain a custodial relationship with a Direct Participant, eitherdirectly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rulesapplicable to its Participants are on file with the Securities and Exchange Commission. More information aboutDTC can be found at www.dtcc.com.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive
a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Ownerswill not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to
receive written confirmations providing details of the transaction, as well as periodic statements of their holdings,from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfersof ownership interests in the Securities are to be accomplished by entries made on the books of Direct and IndirectParticipants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representingtheir ownership interests in Securities, except in the event that use of the book-entry system for the Securities is
discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorizedrepresentative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or
such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actualBeneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whoseaccounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and IndirectParticipants will remain responsible for keeping account of their holdings on behalf of their customers.
C-1
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to IndirectParticipants, and by Direct Partic ipants and Indirect Participants to Beneficial Owners will be governed byarrangements among them, subject to any statutory or regulatory requirements as may be in effect from time totime. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of
notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposedamendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain thatthe nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and requestthat copies of notices be provided directly to them.]
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed,
DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to beredeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unlessauthorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTCmails an Omnibus Proxy to Village as soon as possible after the record date. The Omnibus Proxy assigns Cede& Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on therecord date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit DirectParticipants' accounts upon DTC's receipt of funds and corresponding detail information from the Village orAgent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the casewith securities held for the accounts of customers in bearer form or registered in "street name," and will be theresponsibility of such Participant and not of DTC, Agent, or the Village, subject to any statutory or regulatoryrequirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividendpayments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is
the responsibility of the Village or Agent, disbursement of such payments to Direct Participants will be theresponsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility ofDirect and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant,
to [Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant totransfer the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. Therequirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase willbe deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC'srecords and followed by a book-entry credit of tendered Securities to [Tender/Remarketing] Agent's DTC account.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving
reasonable notice to the Village or Agent. Under such circumstances, in the event that a successor depository isnot obtained, Security certificates are required to be printed and delivered.
11. The Village may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successorsecurities depository). In that event, Security certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources
that the Village believes to be reliable, but the Village takes no responsibility for the accuracy thereof.
C-2
APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
(See following pages)
D-1
QB\63099452.1
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the Village of Cottage Grove, Dane County, Wisconsin (the "Issuer") in connection with the issuance of $1,850,000 General Obligation Park and Public Grounds Bonds, Series 2020A, dated June 18, 2020 (the "Securities"). The Securities are being issued pursuant to resolutions adopted on May 4, 2020 and June 1, 2020 (collectively, the "Resolution") and delivered to _________________ (the "Purchaser") on the date hereof. Pursuant to the Resolution, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby specifically covenants and agrees as follows:
Section 1(a). Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the holders of the Securities in order to assist the Participating Underwriters within the meaning of the Rule (defined herein) in complying with SEC Rule 15c2-12(b)(5). References in this Disclosure Certificate to holders of the Securities shall include the beneficial owners of the Securities. This Disclosure Certificate constitutes the written Undertaking required by the Rule.
Section 1(b). Filing Requirements. Any filing under this Disclosure Certificate must be made solely by transmitting such filing to the MSRB (defined herein) through the Electronic Municipal Market Access ("EMMA") System at www.emma.msrb.org in the format prescribed by the MSRB. All documents provided to the MSRB shall be accompanied by the identifying information prescribed by the MSRB.
Section 2. Definitions. In addition to the defined terms set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
"Annual Report" means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Audited Financial Statements" means the Issuer's annual financial statements, which are currently prepared in accordance with generally accepted accounting principles (GAAP) for governmental units as prescribed by the Governmental Accounting Standards Board (GASB) and which the Issuer intends to continue to prepare in substantially the same form.
"Final Official Statement" means the Final Official Statement dated June 2, 2020 delivered in connection with the Securities, which is available from the MSRB.
"Financial Obligation" means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.
D-2
"Fiscal Year" means the fiscal year of the Issuer.
"Governing Body" means the Village Board of the Issuer or such other body as may hereafter be the chief legislative body of the Issuer.
"Issuer" means the Village of Cottage Grove, Dane County, Wisconsin, which is the
obligated person with respect to the Securities. "Issuer Contact" means the Village Administrator of the Issuer who can be contacted at
Village Hall, 221 East Cottage Grove Road, Cottage Grove, Wisconsin 53527, phone (608) 839-4704, fax (608) 839-4698.
"Listed Event" means any of the events listed in Section 5(a) of this Disclosure
Certificate. "MSRB" means the Municipal Securities Rulemaking Board. "Participating Underwriter" means any of the original underwriter(s) of the Securities
(including the Purchaser) required to comply with the Rule in connection with the offering of the Securities.
"Rule" means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities
Exchange Act of 1934, as the same may be amended from time to time, and official interpretations thereof.
"SEC" means the Securities and Exchange Commission.
Section 3. Provision of Annual Report and Audited Financial Statements. (a) The Issuer shall, not later than 365 days after the end of the Fiscal Year,
commencing with the year ended December 31, 2019, provide the MSRB with an Annual Report filed in accordance with Section 1(b) of this Disclosure Certificate and which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report and that, if Audited Financial Statements are not available within 365 days after the end of the Fiscal Year, unaudited financial information will be provided, and Audited Financial Statements will be submitted to the MSRB when and if available.
(b) If the Issuer is unable or fails to provide to the MSRB an Annual Report by the
date required in subsection (a), the Issuer shall send in a timely manner a notice of that fact to the MSRB in the format prescribed by the MSRB, as described in Section 1(b) of this Disclosure Certificate.
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Section 4. Content of Annual Report. The Issuer's Annual Report shall contain or incorporate by reference the Audited Financial Statements and updates of the following sections of the Final Official Statement to the extent such financial information and operating data are not included in the Audited Financial Statements:
1. DEBT - Direct Debt 2. DEBT - Debt Limit 3. VALUATIONS - Current Property Valuations 4. TAX LEVIES AND COLLECTIONS - Tax Levies and Collections Any or all of the items listed above may be incorporated by reference from other
documents, including official statements of debt issues of the Issuer or related public entities, which are available to the public on the MSRB’s Internet website or filed with the SEC. The Issuer shall clearly identify each such other document so incorporated by reference.
Section 5. Reporting of Listed Events. (a) This Section 5 shall govern the giving of notices of the occurrence of any of the
following events with respect to the Securities: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Securities, or other material events affecting the tax status of the Securities;
7. Modification to rights of holders of the Securities, if material; 8. Securities calls, if material, and tender offers; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the Securities, if
material; 11. Rating changes;
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12. Bankruptcy, insolvency, receivership or similar event of the Issuer; 13. The consummation of a merger, consolidation, or acquisition involving the Issuer
or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of a
trustee, if material; 15. Incurrence of a Financial Obligation of the Issuer, if material, or agreement to
covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Issuer, any of which affect holders of the Securities, if material; and
16. Default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of a Financial Obligation of the Issuer, any of which reflect financial difficulties.
For the purposes of the event identified in subsection (a)12. above, the event is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Issuer in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Issuer, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Issuer.
(b) When a Listed Event occurs, the Issuer shall, in a timely manner not in excess of
ten business days after the occurrence of the Listed Event, file a notice of such occurrence with the MSRB. Notwithstanding the foregoing, notice of Listed Events described in subsections (a) (8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Securities pursuant to the Resolution.
(c) Unless otherwise required by law, the Issuer shall submit the information in the
format prescribed by the MSRB, as described in Section 1(b) of this Disclosure Certificate.
Section 6. Termination of Reporting Obligation. The Issuer's obligations under the Resolution and this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all the Securities.
Section 7. Issuer Contact; Agent. Information may be obtained from the Issuer Contact.
Additionally, the Issuer may, from time to time, appoint or engage a dissemination agent to assist
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it in carrying out its obligations under the Resolution and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent.
Section 8. Amendment; Waiver. Notwithstanding any other provision of the Resolution
or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if the following conditions are met:
(a)(i) The amendment or waiver is made in connection with a change in circumstances
that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of the Issuer, or the type of business conducted; or
(ii) This Disclosure Certificate, as amended or waived, would have complied with the
requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and
(b) The amendment or waiver does not materially impair the interests of beneficial
owners of the Securities, as determined and certified to the Issuer by an underwriter, financial advisor, bond counsel or trustee.
In the event this Disclosure Certificate is amended for any reason other than to cure any
ambiguities, inconsistencies, or typographical errors that may be contained herein, the Issuer agrees the next Annual Report it submits after such amendment shall include an explanation of the reasons for the amendment and the impact of the change, if any, on the type of financial statements or operating data being provided.
If the amendment concerns the accounting principles to be followed in preparing
financial statements, then the Issuer agrees that it will give an event notice and that the next Annual Report it submits after such amendment will include a comparison between financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be
deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 10. Default. (a) Except as described in the Final Official Statement, in the
previous five years, the Issuer has not failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of events.
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(b) In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate any holder of the Securities may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under the Resolution and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the Issuer, the Participating Underwriters and holders from time to time of the Securities, and shall create no rights in any other person or entity.
IN WITNESS WHEREOF, we have executed this Certificate in our official capacities
effective the 18th day of June, 2020. _____________________________
John Williams President
(SEAL) _____________________________ Lisa Kalata Village Clerk
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APPENDIX E
NOTICE OF SALE
$1,850,000* GENERAL OBLIGATION PARK AND PUBLIC GROUNDS BONDS, SERIES 2020AVILLAGE OF COTTAGE GROVE, WISCONSIN
Bids for the purchase of $1,850,000* General Obligation Park and Public Grounds Bonds, Series 2020A (the "Bonds")of the Village of Cottage Grove, Wisconsin (the "Village") will be received at the offices of Ehlers and Associates,Inc. ("Ehlers"), 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, municipal advisors to the Village, until10:30 A.M., Central Time, and ELECTRONIC PROPOSALS will be received via PARITY, in the mannerdescribed below, until 10:30 A.M. Central Time, on June 1, 2020, at which time they will be opened, read andtabulated. The bids will be presented to the Village Board for consideration for award by resolution at a meeting tobe held at 6:30 P.M., Central Time, on the same date. The bid offering to purchase the Bonds upon the terms specifiedherein and most favorable to the Village will be accepted unless all bids are rejected.
PURPOSE
The Bonds are being issued pursuant to Section 67.04, Wisconsin Statutes, for the public purpose of financing parksand grounds projects, consisting of the construction of a park shelter, a splash pad with site furnishings and pathimprovements. The Bonds are general obligations of the Village, and all the taxable property in the Village is subjectto the levy of a tax to pay the principal of and interest on the Bonds as they become due which tax may, under currentlaw, be levied without limitation as to rate or amount.
DATES AND MATURITIES
The Bonds will be dated June 18, 2020, will be issued as fully registered Bonds in the denomination of $5,000 each,or any integral multiple thereof, and will mature on April 1 as follows:
Year Amount* Year Amount* Year Amount*
2021 $70,000 2028 $85,000 2035 $100,000
2022 75,000 2029 90,000 2036 105,000
2023 80,000 2030 90,000 2037 105,000
2024 80,000 2031 90,000 2038 115,000
2025 80,000 2032 95,000 2039 115,000
2026 85,000 2033 95,000 2040 115,000
2027 85,000 2034 95,000
ADJUSTMENT OPTION
* The Village reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, inincrements of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts areadjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000.
TERM BOND OPTION
Bids for the Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds,subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemptionin each year conforms to the maturity schedule set forth above. All dates are inclusive.
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INTEREST PAYMENT DATES AND RATES
Interest will be payable on April 1 and October 1 of each year, commencing April 1, 2021, to the registered ownersof the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not abusiness day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year oftwelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board. AllBonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate. Each rate mustbe expressed in an integral multiple of 5/100 or 1/8 of 1%.
BOOK-ENTRY-ONLY FORMAT
Unless otherwise specified by the purchaser, the Bonds will be designated in the name of Cede & Co., as nomineefor The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for theBonds, and will be responsible for maintaining a book-entry system for recording the interests of its participants andthe transfers of interests between its participants. The participants will be responsible for maintaining recordsregarding the beneficial interests of the individual purchasers of the Bonds. So long as Cede & Co. is the registeredowner of the Bonds, all payments of principal and interest will be made to the depository which, in turn, will beobligated to remit such payments to its participants for subsequent disbursement to the beneficial owners of the Bonds.
PAYING AGENT
The Village has selected Bond Trust Services Corporation, Roseville, Minnesota, to act as paying agent (the "PayingAgent"). Bond Trust Services Corporation and Ehlers are affiliate companies. The Village will pay the charges forPaying Agent services. The Village reserves the right to remove the Paying Agent and to appoint a successor.
OPTIONAL REDEMPTION
At the option of the Village, the Bonds maturing on or after April 1, 2028 shall be subject to optional redemption priorto maturity on April 1, 2027 or any date thereafter, at a price of par plus accrued interest.
Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selectionof the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the Village. If only part ofthe Bonds having a common maturity date are called for redemption, then the Village or Paying Agent, if any, willnotify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of eachparticipant's interest in such maturity to be redeemed and each participant will then select by lot the beneficialownership interest in such maturity to be redeemed.
Notice of such call shall be given by sending a notice by registered or certified mail, facsimile or electronictransmission, overnight delivery service or in any other manner required by DTC, not less than 30 days nor more than60 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the addressshown on the registration books.
DELIVERY
On or about June 18, 2020, the Bonds will be delivered without cost to the winning bidder at DTC. On the day ofclosing, the Village will furnish to the winning bidder the opinion of bond counsel hereinafter described, an arbitragecertification, and certificates verifying that no litigation in any manner questioning the validity of the Bonds is thenpending or, to the best knowledge of officers of the Village, threatened. Payment for the Bonds must be received bythe Village at its designated depository on the date of closing in immediately available funds.
LEGAL MATTERS
An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will befurnished by Quarles & Brady LLP, Bond Counsel to the Village, and will be available at the time of delivery of the
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Bonds. The legal opinion will be issued on the basis of existing law and will state that the Bonds are valid andbinding general obligations of the Village; provided that the rights of the owners of the Bonds and the enforceabilityof the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affectingcreditors' rights and by equitable principles (which may be applied in either a legal or equitable proceeding). (See?FORM OF LEGAL OPINION" found in Appendix B of the Preliminary Official Statement).
Quarles & Brady LLP has also been retained by the Village to serve as Disclosure Counsel to the Village with respectto the Bonds. Although, as Disclosure Counsel to the Village, Quarles & Brady LLP has assisted the Village withcertain disclosure matters, Quarles & Brady LLP has not undertaken to independently verify the accuracy,completeness or sufficiency of this Official Statement or other offering material relating to the Bonds and assumesno responsibility whatsoever nor shall have any liability to any other party for the statements or information containedor incorporated by reference in this Official Statement. Further, Quarles & Brady LLP makes no representation asto the suitability of the Bonds for any investor.
SUBMISSION OF BIDS
Bids must not be for less than $1,826,875, nor more than $1,998,000, plus accrued interest on the principal sum of$1,850,000 from date of original issue of the Bonds to date of delivery. Prior to the time established above for theopening of bids, interested parties may submit a bid as follows:
1) Electronically to [email protected]; or
2) Electronically via PARITY in accordance with this Notice of Sale until 10:30 A.M. Central Time, but no bidwill be received after the time for receiving bids specified above. To the extent any instructions or directionsset forth in PARITY conflict with this Notice of Sale, the terms of this Notice of Sale shall control. Forfurther information about PARITY, potential bidders may contact Ehlers or i-Deal LLC at 1359 Broadway,2nd Floor, New York, New York 10018, Telephone (212) 849-5021.
Bids must be submitted to Ehlers via one of the methods described above and must be received prior to the timeestablished above for the opening of bids. Each bid must be unconditional except as to legality. Neither the Villagenor Ehlers shall be responsible for any failure to receive a facsimile submission.
A good faith deposit ("Deposit") in the amount of $37,000 shall be made by the winning bidder by wire transferof funds. Such Deposit shall be received by Ehlers no later than two hours after the bid opening time. Wiretransfer instructions will be provided to the winning bidder by Ehlers after the tabulation of bids. The Villagereserves the right to award the Bonds to a winning bidder whose wire transfer is initiated but not received by such timeprovided that such winning bidder’s federal wire reference number has been received by such time. In the event theDeposit is not received as provided above, the Village may award the Bonds to the bidder submitting the next bestbid provided such bidder agrees to such award. The Deposit will be retained by the Village as liquidated damagesif the bid is accepted and the Purchaser fails to comply therewith.
The Village and the winning bidder who chooses to so wire the Deposit hereby agree irrevocably that Ehlers shall bethe escrow holder of the Deposit wired to such account subject only to these conditions and duties: 1) All incomeearned thereon shall be retained by the escrow holder as payment for its expenses; 2) If the bid is not accepted, Ehlersshall, at its expense, promptly return the Deposit amount to the winning bidder; 3) If the bid is accepted, the Depositshall be returned to the winning bidder at the closing; 4) Ehlers shall bear all costs of maintaining the escrow accountand returning the funds to the winning bidder; 5) Ehlers shall not be an insurer of the Deposit amount and shall haveno liability hereunder except if it willfully fails to perform or recklessly disregards, its duties specified herein; and6) FDIC insurance on deposits within the escrow account shall be limited to $250,000 per bidder.
No bid can be withdrawn after the time set for receiving bids unless the meeting of the Village scheduled for awardof the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made.
AWARD
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The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a True Interest Cost(TIC) basis. The Village’s computation of the interest rate of each bid, in accordance with customary practice, willbe controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The Village reserves the right toreject any and all bids and to waive any informality in any bid.
BOND INSURANCE
If the Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole option andexpense of the winning bidder. Any cost for such insurance policy is to be paid by the winning bidder, except that,if the Village requested and received a rating on the Bonds from a rating agency, the Village will pay that rating fee. Any rating agency fees not requested by the Village are the responsibility of the winning bidder.
Failure of the municipal bond insurer to issue the policy after the Bonds are awarded to the winning bidder shall notconstitute cause for failure or refusal by the winning bidder to accept delivery of the Bonds.
CUSIP NUMBERS
The Village will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for thecorrectness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the winningbidder, if the winning bidder waives any delay in delivery occasioned thereby.
QUALIFIED TAX-EXEMPT OBLIGATIONS
The Village will designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of theInternal Revenue Code of 1986, as amended.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with the provisions of Rule 15c2-12 promulgated by the Securitiesand Exchange Commission under the Securities Exchange Act of 1934 the Village will enter into an undertaking forthe benefit of the holders of the Bonds. A description of the details and terms of the undertaking is set forth inAppendix D of the Official Statement.
NEW ISSUE PRICING
The winning bidder will be required to provide, in a timely manner, certain information necessary to compute theyield on the Bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended, and to provide acertificate which will be provided by Bond Counsel upon request.
(a) The winning bidder shall assist the Village in establishing the issue price of the Bonds and shall execute anddeliver to the Village at closing an "issue price" or similar certificate satisfactory to Bond Counsel setting forth thereasonably expected initial offering price to the public or the sales price or prices of the Bonds, together with thesupporting pricing wires or equivalent communications. All actions to be taken by the Village under this Notice ofSale to establish the issue price of the Bonds may be taken on behalf of the Village by the Village’s municipal advisoridentified herein and any notice or report to be provided to the Village may be provided to the Village’s municipaladvisor.
(b) The Village intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining "competitivesale" for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the"competitive sale requirements") because:
(1) The Village shall disseminate this Notice of Sale to potential underwriters in a manner that isreasonably designed to reach potential investors;
(2) all bidders shall have an equal opportunity to bid;
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(3) the Village may receive bids from at least three underwriters of municipal bonds who haveestablished industry reputations for underwriting new issuances of municipal bonds; and
(4) the Village anticipates awarding the sale of the Bonds to the bidder who submits a firm offer topurchase the Bonds at the highest price (or lowest interest cost), as set forth in this Notice of Sale.
Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, asspecified in this bid.
(c) If all of the requirements of a "competitive sale" are not satisfied, the Village shall advise the winning bidderof such fact prior to the time of award of the sale of the Bonds to the winning bidder. In such event, any bid submittedwill not be subject to cancellation or withdrawal and the Village agrees to use the rule selected by the winning bidderon its bid form to determine the issue price for the Bonds. On its bid form, each bidder must select one of thefollowing two rules for determining the issue price of the Bonds: (1) the first price at which 10% of a maturity of theBonds (the "10% test") is sold to the public as the issue price of that maturity or (2) the initial offering price to thepublic as of the sale date as the issue price of each maturity of the Bonds (the "hold-the-offering-price rule").
(d) If all of the requirements of a "competitive sale" are not satisfied and the winning bidder selects the hold-the-offering-price rule, the winning bidder shall (i) confirm that the underwriters have offered or will offer the Bonds tothe public on or before the date of award at the offering price or prices (the "initial offering price"), or at thecorresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalf of theunderwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell unsold Bondsof any maturity to which the hold-the-offering-price rule shall apply to any person at a price that is higher than theinitial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
(1) the close of the fifth (5th) business day after the sale date; or
(2) the date on which the underwriters have sold at least 10% of that maturity of the Bonds to the public ata price that is no higher than the initial offering price to the public.
The winning bidder will advise the Village promptly after the close of the fifth (5th) business day after the sale whetherit has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering priceto the public.
The Village acknowledges that in making the representation set forth above, the winning bidder will rely on:
(i) the agreement of each underwriter to comply with requirements for establishing issue price of the Bonds,including, but not limited to, its agreement to comply with the hold-the-price rule, if applicable to the Bonds, as setforth in an agreement among underwriters and the related pricing wires,
(ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public,the agreement of each dealer who is a member of the selling group to comply with the requirements for establishingissue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule,if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and
(iii) in the event that an underwriter or dealer who is a member of the selling group is a party to a third-partydistribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreementof each broker-dealer that is party to such agreement to comply with the requirements for establishing issue price ofthe Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicableto the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The Village furtheracknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding therequirements for establishing issue price rule of the Bonds, including, but not limited to, its agreement to comply withthe hold-the-offering-price rule, if applicable to the Bonds, and that no underwriter shall be liable for the failure ofany other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party toa third-party distribution agreement to comply with its corresponding agreement to comply with the requirements for
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establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule as applicable to the Bonds.
(e) If all of the requirements of a "competitive sale" are not satisfied and the winning bidder selects the 10% test,the winning bidder agrees to promptly report to the Village, Bond Counsel and Ehlers the prices at which the Bondshave been sold to the public. That reporting obligation shall continue, whether or not the closing date has occurred,until either (i) all Bonds of that maturity have been sold or (ii) the 10% test has been satisfied as to each maturity ofthe Bonds, provided that, the winning bidder’s reporting obligation after the Closing Date may be at reasonableperiodic intervals or otherwise upon request of the Village or bond counsel.
(f) By submitting a bid, each bidder confirms that:
(i) any agreement among underwriters, any selling group agreement and each third-party distributionagreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with therelated pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member ofthe selling group, and each broker-dealer that is party to such third-party distribution agreement, as applicable, to:
(A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whetheror not the Closing Date has occurred until either all securities of that maturity allocated to it have been sold or it isnotified by the winning bidder that either the 10% test has been satisfied as to the Bonds of that maturity, providedthat, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon requestof the Village or bond counsel.
(B) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed bythe winning bidder and as set forth in the related pricing wires, and
(ii) any agreement among underwriters or selling group agreement relating to the initial sale of the Bondsto the public, together with the related pricing wires, contains or will contain language obligating each underwriter,each dealer who is a member of the selling group and each broker dealer that is a party to a third-party distributionagreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealerthat is a party to such third-party distribution agreement to:
(A) to promptly notify the winning bidder of any sales of Bonds that, to its knowledge, are made to apurchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each suchterm being used as defined below), and
(B) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker-dealer, the winningbidder shall assume that each order submitted by the underwriter, dealer or broker-dealer is a sale to the public.
(g) Sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale ofthe Bonds to the public (each term being used as defined below) shall not constitute sales to the public for purposesof this Notice of Sale. Further, for purposes of this Notice of Sale:
(i) "public" means any person other than an underwriter or a related party,
(ii) "underwriter" means (A) any person that agrees pursuant to a written contract with the Village (orwith the lead underwriter to form an underwriting syndicate) to participate in the initial sale of theBonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectlywith a person described in clause (A) to participate in the initial sale of the Bonds to the public(including a member of a selling group or a party to a third-party distribution agreement participatingin the initial sale of the Bonds to the public),
(iii) a purchaser of any of the Bonds is a "related party" to an underwriter if the underwriter and thepurchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the votingpower or the total value of their stock, if both entities are corporations (including direct ownershipby one corporation of another), (B) more than 50% common ownership of their capital interests or
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profits interests, if both entities are partnerships (including direct ownership by one partnership ofanother), or (C) more than 50% common ownership of the value of the outstanding stock of thecorporation or the capital interests or profit interests of the partnership, as applicable, if one entityis a corporation and the other entity is a partnership (including direct ownership of the applicablestock or interests by one entity of the other), and
(iv) "sale date" means the date that the Bonds are awarded by the Village to the winning bidder.
PRELIMINARY OFFICIAL STATEMENT
Bidders may obtain a copy of the Preliminary Official Statement relating to the Bonds prior to the bid opening byrequest from Ehlers at www.ehlers-inc.com by connecting to the Bond Sales link. The Syndicate Manager will beprovided with an electronic copy of the Final Official Statement within seven business days of the bid acceptance. Up to 10 printed copies of the Final Official Statement will be provided upon request. Additional copies of the FinalOfficial Statement will be available at a cost of $10.00 per copy.
Information for bidders and bid forms may be obtained from Ehlers at 3060 Centre Pointe Drive, Roseville, Minnesota55113-1105, Telephone (651) 697-8500.
By Order of the Village Board
Deb Winter, Village TreasurerVillage of Cottage Grove, Wisconsin
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BID FORMThe Village Board June 1, 2020Village of Cottage Grove, Wisconsin
RE: $1,850,000* General Obligation Park and Public Grounds Bonds, Series 2020A (the "Bonds")DATED: June 18, 2020
For all or none of the above Bonds, in accordance with the Notice of Sale and terms of the Global Book-Entry System (unless otherwisespecified by the Purchaser) as stated in this Official Statement, we will pay you $__________________ (not less than $1,826,875, nor morethan $1,998,000) plus accrued interest to date of delivery for fully registered Bonds bearing interest rates and maturing in the stated years asfollows:
% due 2021 % due 2028 % due 2035
% due 2022 % due 2029 % due 2036
% due 2023 % due 2030 % due 2037
% due 2024 % due 2031 % due 2038
% due 2025 % due 2032 % due 2039
% due 2026 % due 2033 % due 2040
% due 2027 % due 2034
* The Village reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are adjusted, the purchase price proposed will be adjusted tomaintain the same gross spread per $1,000.
All Bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate. Each rate must be expressed in anintegral multiple of 5/100 or 1/8 of 1%.
A good faith deposit ("Deposit") in the amount of $37,000 shall be made by the winning bidder by wire transfer of funds. Such Depositshall be received by Ehlers no later than two hours after the bid opening time. Wire transfer instructions will be provided to thewinning bidder by Ehlers after the tabulation of bids. The Village reserves the right to award the Bonds to a winning bidder whose wiretransfer is initiated but not received by such time provided that such winning bidder’s federal wire reference number has been received by suchtime. In the event the Deposit is not received as provided above, the Village may award the Bonds to the bidder submitting the next best bidprovided such bidder agrees to such award. The Deposit will be retained by the Village as liquidated damages if the bid is accepted and thePurchaser fails to comply therewith. We agree to the conditions and duties of Ehlers and Associates, Inc., as escrow holder of the Deposit,pursuant to the Notice of Sale. This bid is for prompt acceptance and is conditional upon delivery of said Bonds to The Depository TrustCompany, New York, New York, in accordance with the Notice of Sale. Delivery is anticipated to be on or about June 18, 2020.
This bid is subject to the Village’s agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c2-12promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Preliminary OfficialStatement for the Bonds.
We have received and reviewed the Official Statement, and any addenda thereto, and have submitted our requests for additional informationor corrections to the Final Official Statement. As Syndicate Manager, we agree to provide the Village with the reoffering price of the Bondswithin 24 hours of the bid acceptance.
This bid is a firm offer for the purchase of the Bonds identified in the Notice of Sale, on the terms set forth in this bid form and the Notice ofSale, and is not subject to any conditions, except as permitted by the Notice of Sale.
By submitting this bid, we confirm that we are an underwriter and have an established industry reputation for underwriting new issuances ofmunicipal bonds. YES: ____ NO: ____.
If the competitive sale requirements are not met, we elect to use the (circle one): 10% test / hold-the-offering-price rule to determine the issueprice of the Bonds.
Account Manager: By:Account Members:
Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the totaldollar interest cost (including any discount or less any premium) computed from June 18, 2020 of the above bid is $_______________and thetrue interest cost (TIC) is __________%.
The foregoing offer is hereby accepted by and on behalf of the Village Board of the Village of Cottage Grove, Wisconsin, on June 1, 2020.
By: By:
Title: Title:
