2013 Annual Financial Audit by Orland Fire Protection District

Serving the Village of Orland Park, the Village of Orland Hills, and unincorporated areas of Orland Township in Illinois

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2013

Submitted by: Kerry Sullivan Finance Director

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2013

CONTENTS

INTRODUCTORY SECTION Letter of Transmittal

1- V

GFOA Certificate of Achievement

Organizational Chart

Vll

Names and Titles of Principal Officials

V111

FINANCIAL SECTION Independent Auditor's Report

IX - Xl

Management's Discussion and Analysis

Xll -

Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position - Governmental Activities Statement of Activities

Fund Financial Statements: Balance Sheet - Governmental Funds

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position

Statement of Revenues, Expenditures and Changes Governmental Funds

III

Fund Balances 5-6

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

Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual - General Fund and Major Special Revenue Fund

8 - 11

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2013

CONTENTS

Statement of Net Position - Fiduciary Funds - Pension and Other Employee Benefit Trust Funds

Statement of Change in Net Position - Fiduciary Funds - Pension and Other Employee Benefit Trust Funds

Notes to Basic Financial Statements

14 - 37

Required Supplementary Information: Firefighters' Pension Fund

Illinois Municipal Retirement Fund

Retiree Health Insurance Plan

Combining and Individual Fund Financial Statements and Schedules: Major Governmental Funds: General Fund: Combining Schedule of General Fund Balance Sheet Accounts

Combining Schedule of General Fund Revenues, Expenditures and Changes in Fund Balances

42 - 43

Corporate Fund: 44

Balance Sheet Schedule of Revenues, Expenditures, Encumbrances and Changes Fund Balances - Budget and Actual

III

45 - 46

Tort Liability Fund:

Balance Sheet Schedule of Revenues, Expenditures, Encumbrances and Changes Fund Balances - Budget and Actual

III

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2013

CONTENTS

Emergency Rescue Fund: Balance Sheet

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

50 - 51

Ambulance Fund: 52

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

53 - 54

Capital Projects Fund: Balance Sheet

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

Nonmajor Governmental Fund: Debt Service Fund: 57

Balance Sheet Schedule of Revenues, Expenditures and Changes Budget and Actual

ill

Fund Balances 58

Fiduciary Funds: Combining Statement of Net Position - Pension and Other Employee Benefit Trust Funds

Combining Statement of Changes Employee Benefit Trust Funds

ill

Net Position - Pension and Other

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2013

CONTENTS

Firefighters' Pension Fund: Statement of Net Position

Statement of Change in Net Position

Retiree Health Insurance Fund: Statement of Net Position

Statement of Change in Net Position

STATISTICAL SECTION Net Position by Component

65 - 66

Changes in Net Position

67 - 68

Fund Balances of Governmental Funds

69 -70

Changes in Fund Balances of Governmental Funds

71-72

Schedule of Assessed Value and Estimated Actual Value of Taxable Property

73 -74

Schedule of Assessed Valuations, Tax Rates, Extensions and Collections

75 -76

Property Tax Rates - Direct and Overlapping Governments

Principal Property Taxpayers

78 -79

Outstanding Debt by Type

80 - 81

Ratios of General Obligation Debt Outstanding

Direct and Overlapping General Obligation Debt

Legal Debt Margin Information

84 - 85

Demographic and Economic Statistics

86 - 87

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2013

CONTENTS

Principal Employers

88 - 89

Full-time Equivalent District Employees by Type

Operating Indicators by Function

INTRODUCTORY SECTION

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June 24,2014 Board of Trustees Orland Fire Protection District We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the Orland Fire Protcdion District (the District) for the year ended December 31, 2013. The CAFR includes a complete set or financial statements presented in conformance with United States generally accepted accounting principles. The financial statements arc audited by Mulcahy, Pauritsch. Salvador & Co., Ltd. : a firm of independent licensed certified public accountants who conducted the audit in accordance with generally accepted auditing standards. This CAFR consists of management's representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. As management, we assert that to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. To provide a reasonable basis for making its representations, management has established a comprehensive internal control framework. This framework is designed to provide reasonable assurance that assets arc safeguarded against loss, from unauthorized use or disposition and that account transactions arc executed in accordance with management's authorization and properly recorded so that the financial statements can be prepared in conformity with generally accepted accounting principles. The o~jectivc of the intemal control framework is to provide rcasonablt.!. rather than absolute, assurance that the financial statements are free of any material m isstatemen ts. The District's financial statements have been audited with the goal of providing reasonable assurance that the financial statements of the District for the fiscal year ended December 31, 2013, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded: based upon the audit. that there was a reasonable basis for rendering an unqualified opinion that the District's financial statemenlS for the year ended December 3 L 2013 arc fairly presented in conformity with generally accepted accounting principles. The indl:!pendent auditor's report is presented as the 11rst component of the financial section of this report.

Generally accepted accounting principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management Discussion and Analysis (MD&A). The MD&A immediately follows the Independent Auditor's Report. This transmittal letter is designed to complement the MD&A and should be read in conjunction with it. Profile of the District

The Orland Fire Protection District (the District) was organized in 1969. The District operates under the provisions ofthe Fire Protection District Act of the State of Illinois and the District operates under an elected Board of Trustees form of government. The five-member Board of Trustees constitutes the primary policy making body of the District. The Board of Trustees are responsible for, among other things, determining District policies, adopting the annual budget, levying taxes, adopting ordinances, and authorizing the payment of bills. The Fire Chief is appointed by the Board of Trustees and is responsible for the daily operations and management of the District. The Fire Chief recommends to the Board of Trustees all such matters as may be deemed necessary for the fulfillment of the administrative duties of his office. The District provides a full range of services to the residents of the Village of Orland Park, the Village of Orland Hills and the unincorporated areas of Orland Township. These services include fire suppression services, emergency medical services, underwater rescue, hazardous material response, fire prevention and public education. The District operates six fire stations which were strategically built to minimize response times based on projected populations. The District also operates a vehicle maintenance facility, a regional training center. and administrative offices which are adjacent to Fire Station 1. The District's reporting entity includes general District government and all related organizations for which the District exercises financial accountability as defined by the Governmental Accounting Standards Board. Accordingly, the District includes the financial results of the Orland Firefighter's Pension Fund and the Orland Fire District Retiree Health Insurance Trust Fund in these financial statements. The President, Board of Trustees and staff of the District are intent on maintaining the District's strong financial condition, while continuing to provide the highest level of public services to its residents. Financial Planning and Budgeting

During the past few years, many governmental entities have been facing significant financial distress as the cost of providing services has outstripped available revenue sources. The cost of employer-provided benefits to both current and former employees is projected to continue to rise due to anticipated increases in health insurance costs as well as decreased investment returns on invested assets. Fortunately, the District has followed a consistent policy of maintaining strong fund balances in all funds as well as funding retirement and post-retirement benefit obligations

well in excess of the annual minimum required amounts. The result of these actions has allowed the District to minimize the future burden of these obligations as well as continue to provide a high level of service during these unsettled times. The annual budget serves as the District's foundation for financial planning and control. All programs of the District are required to submit their budget requests to the Fire Chief before July 31 st of each year. After reviewing the budget requests, the Fire Chief presents a proposed budget to the Board of Trustees, who then hold public meetings to discuss the proposed budget. The tentative budget is made available to the pUblic. The Board of Trustees is required to hold a public hearing on the proposed budget and to adopt the final budget no later than December 31 st of each year. The budget is prepared by fund, but the format of the budget provides for a program budget with line item supplemental backup. Management is authorized to transfer budgeted amounts between departments within any fund; however, the Board of Trustees must approve any revisions that alter the total expenditures of any fund. Budget to actual comparisons are provided in this report for General and Major Special Revenue Funds. The comparison is presented on pages 8-11 as part of the basic financial statements. For governmental funds other than the General and Ambulance Funds, this comparison is presented in the governmental fund subsection of this report beginning on page 41.

Economic Condition and Outlook The District's financial position, as reflected in the financial statements presented in this report, is perhaps best understood when it is considered from the broader perspective of the environment within which the district operates. The District is located in southwest Cook County, approximately 22 miles from Downtown Chicago and serves the Villages of Orland Park, Orland Hills, and unincorporated areas of Orland Township. The District covers approximately 33 square miles and has a population of approximately 75,000. The number of households within the District is approximately 25,000. The daytime population is higher due to the heavy retail concentration of Orland Park and Orland Hills. The area is easily accessible by O'Hare and Midway Airports, several interstate highways and Metro's commuter rail system. The District has a diverse composition and economic base. Approximately 69% of the District's equalized assessed valuation (EAV) is related to residential development, 26% is related to commercial development and 5% is related to industrial development. The 2012 tax year EAV was $2,378,592,213. In the 2011 tax year, the District's EAV was $2,579,523,467. This 7.8% decrease is due, in large part, to the equalization factor issued by the Illinois Department of Revenue being reduced by 5.6%. The EAV decrease caused tax rate ceilings to be reached and the District's tax rate to increase. Major employers within the District include Orland School District #135, the Village of Orland Park, Jewel/Osco Food Store, Carson Pirie Scott, lC. Penney, and Panduit Corporation. The

!l1

District is the location for much retail development including Orland Square Mall, the Orland Park Place Mall, Orland Crossings, and Orland Towne Center along with numerous smaller retail centers. Major Initiatives for 2013

The District continues to work within the scope of its projected revenue while continuing to provide quality public services to its residents. The District staffs a minimum of four engine companies, two truck companies and five ambulance crews daily. During 2013, District firefighters and paramedics responded to 8,499 calls, a 1.3% increase over 2012. Approximately 57.1% of these calls were for emergency medical services. The number of emergency medical service calls remained similar to 2012 after having increased by 80/0 from 2011. Line trouble alarm calls and vehicle accident calls increased 18.7% and 17.5% between 2012 and 2013, respectively. District staff, under the direction of the Board of Trustees and the Fire Chief, have been involved in a variety of projects during 2013. A number of significant projects are discussed more thoroughly below. Major Initiatives for the Future

•

A labor agreement for the District's Lieutenants, Engineers and Firefighters belonging to Orland Professional Firefighters, Local 2754, was resolved. The multi-year labor contract is now set to expire on December 31, 201 S.

•

A labor agreement for the Inspectors and Telecommunicators belonging to IBEW 134 was resolved. The multi-year agreement is now set to expire on December 31,2016.

•

A significant renovation of Station 2 was completed.

•

Vehicles were replaced, including an ambulance, a chief response vehicle, and a public safety trailer.

•

Trustee Schirmacher and Trustee Brudnak. were elected and began their terms in May, 2013.

Major initiatives for 2014 include maintaining adequate firefighter staffing levels to meet response benchmarks, continued focus on training and safety and operational efficiencies. Acknowledgments and Awards

The District currently holds an Insurance Service Office (ISO) Class 2 rating. The District is one of only a small number offire departments in the nation to enjoy a rating ofISO 2 or better. This acknowledgement of the District's accomplishments ranks within the top of all rated fire departments in the nation.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Orland Fire Protection District for its comprehensive Annual Financial Report (CAFR) for the previous five years beginning in 2008. A Certificate of Achievement is valid for a period of one year. We believe our current report meets the requirements of the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association and we are submitting it to GFOA to determine its eligibility for this year's award. To be awarded a Certificate of Achievement, the District must publish an easily readable and efficiently organized CAFR. This report satisfied both generally accepted accounting principles and other applicable requirements. The timely preparation of the CAFR was made possible by the efficient and dedicated services of the Finance Department, Administration and other District employees who were instrumental in the successfully completion of this report. We sincerely appreciate and acknowledge the support and direction provided by the accounting firm of Mulcahy, Pauritsch, Salvador and Co., Ltd., in preparing the District's CAFR. We would also like to express our appreciation to the Board of Trustees for their leadership and support in planning and conducting the financial operations of the District in a responsible and progressive manner. Respectfully submitted,

b:~

Kenneth Bruc Fire Chief

Kerry SuI Ivan Finance Director

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting Presented to

Orland Fire Protection District

IDinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended

December 31, 2012

~/.AM.:. Executive Director/CEO

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Residents Trustee I Treasurer

Trustee I Secretary

Trustee I President

Trustee

ChrisEvoy

Jayne Sohirmache,

Jim Hld<ev

John Brudnak

BIaI,Rhode

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Public Information

Fire Chief

Ken Bruoki

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Finance K«ry SuUlvan

Human Resource Lucy McGlynn

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I I I l I Assistant MaryCWghr.n

Assistant Pal SladniclO

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Assistant Mary Jan. Christ L

Reception JoanPi~n$

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Commissioner Craig ScI'1midl

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Commissioner Jim Bianci

Deputy Chief

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Dan SmIth

Nick Ci lUeoaimi

Operations Technical Rescue Hazardous Materials Dive I Water Rescue Origin I CaLISe

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Engineers

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Firefighters I Paramedics Officer Development

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Training Officer DalmPipor

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Commissioner

Executive Assistant

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Dispatch Supervisor William Neumann

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ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NAMES AND TITLES OF PRINCIPAL OFFICIALS DECEMBER 31,2013

Board of Trustees

Mr. James P. Hickey - President Mrs. Jayne Schirmacher - Secretary Mr. Christopher G. Evoy - Treasurer Mr. John Brudnak - Member Mr. Blair Rhode - Member

Fire Chief

Ken Brucki Finance Director

Kerry Sullivan

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FINANCIAL SECTION

~ MULCAHY, PAURITSCH, SALVADOR,CQ,cID. Certified PublicAccountants/ Business and Personal Consultants

Honorable District President and Board of Trustees Orland Fire Protection District, Illinois

INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of Orland Fire Protection District, Illinois, as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. We have also audited the fiduciary fund type of Orland Fire Protection District, Illinois, as of and for the year ended December 31, 2013, as displayed in the District's basic financial statements. Management's Responsibility for the Financial Statements

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

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controL Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

14300 Ravinia Ave .• Suite 200' Orland Park, IL. 60462 • 708/349-6999 • Fax 708/349-6639 401 S. LaSalle St. • Suite 606 • Chicago, IL 60605 • 312/786-5979 • Fax 708/349-6639 7500 S. County Line Rd .• Burr Ridge, IL 60527 • 630/887-7838 • Fax 630/887-7895

Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information as well as the fiduciary fund type of Orland Fire Protection District, Illinois, as of December 31, 2013, and the respective changes in financial position thereof, and the respective budgetary comparison for the General Fund and the major special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle

As described in Note II to the basic financial statements, the District changed its method of accounting for certain items previously reported as assets and liabilities as required by the provisions of GASB Statement No. 65. Our opinion is not modified with respect to that matter. Other Matters Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages xii through xx and schedules of funding progress on pages 37 through 39 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information

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

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Orland Park, Illinois June 17,2014 Xl

MANAGEMENT'S DISCUSSION AND ANALYSIS

MANAGEMENT'S DISCUSSION AND ANALYSIS as of and for the fiscal year ended December 31, 2013

As management of Orland Fire Protection District (the District), we offer readers of the District's Comprehensive Annual Financial Report this narrative and analysis of the financial activities of the District for the fiscal year ended December 31, 2013. Financial Highlights •

The assets of the District exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $25,073,476 (net position). Of this amount, $13,719,919 IS invested in capital assets and $1,996,258 is restricted; $9,357,299 remains unrestricted.

•

The total net position of the District increased by $396,404 during fiscal year 2013 due to increases in charges for services and reductions in overtime pay.

•

As of December 31, 2013, the District's governmental funds reported combined ending fund balances of $16,250,046. Approximately 36% of this amount ($5,792,567) is available for spending at the District's discretion (unassignedJund balance).

•

For the fiscal year ending December 31, 2013, total governmental funds expenditures exceeded revenues by $1,156,259. This was due primarily to repairs and renovations to the District's stations.

•

At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned and unassigned components ofJund balance) for the general fund was $6,990,430, or approximately 36.5% of total general fund expenditures.

•

The District's long-term liabilities at December 31, 2013 totaled $30,816,984. There were no borrowings in 2013.

Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the District's basic financial statements. These basic fmancial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the District's assets, liabilities and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

xii

The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, unused sick leave). The government-wide fmancial statements can be found on pages 1 - 2 ofthis report.

Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. All of the funds of the District can be categorized as one of two types: governmental fund or fiduciary fund.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains six individual governmental funds and subfunds. Information is presented separately for the major governmental funds in the Balance Sheet - Governmental Funds and in the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds. The General Fund, Ambulance Fund and the Capital Projects Fund are considered major funds. There is one nonmajor governmental fund. The District adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with the budget. The basic fund financial statements can be found of pages 3 - 11 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District's own programs. The accounting used for fiduciary funds is on the full accrual basis. The fiduciary funds utilized by the District are the Firefighters' Pension Fund and the Retiree Health Insurance Fund. The basic fiduciary fund financial statements can be found/on pages 12 - 13 of this report.

xiii

Notes to Financial Statements The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. The notes to basic financial statements can be found on pages 14 - 37 of this report.

Other Information In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the District's progress in funding its obligation to provide pension and OPEB benefits to its employees. This information is provided on pages 38 - 40 of the report. The combining and individual fund financial statements and schedules in connection with the major, nonmajor governmental and fiduciary funds are presented immediately following the required supplemental information on pensions and OPEB. These statements and schedules can be found on pages 41 - 64 of this report. Government-wide Financial Analysis

Statement of Net Position - Governmental Activities As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the District, assets exceeded liabilities and deferred inflows of resources by $25,073,476 at the close of the most rec~nt fiscal year.

Orland Fire Protection District Statement of Net Position - Governmental Activities as of December 31, 2013 and 2012 2012

2013 Assets: Current and other assets Capital assets Net pension & post employment benefit asset Total assets

44,575,019 17,009,010 22,654,719 84,238,748

$ 44,733,621 16,742,376 22,468,029 83,944,026

Liabilities: Current liabilities Noncurrent liabilities Total liabilities

1,934,504 30,816,984 32,751,488

1,040,354 32,011,524 33,051,878

Deferred inflows of resources: Unavailable revenue

26,413,784

26,215,076

Net position: Invested in capital assets, net of related debt Restricted Unrestricted Total net position

13,719,919 1,996,258 9,357,299 25.073.476

12,577,376 2,118,736 9,980,960 24,677,072

xiv

Assets Cash, investments, receivables and prepaid expenses are current assets. These assets are available to provide resources for the near-term operations of the District. The majority of the current assets are the results of the property tax collection process; the District received 96.7% of the annual property tax assessment for 2012 in 2013. It is expected a similar collection rate will occur for 2013 taxes collected in 2014.

Capital assets are used in the operations of the District. These are land, improvements, buildings apparatus, vehicles and equipment. Capital assets are discussed in greater detail in the section titled, "Capital Assets and Debt Administration," elsewhere in this analysis. A net pension and post-employment benefit asset, which is further explained on pages 25 - 31 of this report, was recorded in 2013 in the amount of $22,654,719. Of this total, $21,420,608 is related to the Firefighters Pension Fund, $941,569 is related to the Illinois Municipal Retirement Fund, and the remaining $292,542 is related to the Retiree Health Insurance Fund. In December 2012, the District deposited funds in the Firefighters Pension Fund and the Illinois Municipal Retirement Fund to pay its actuarial unfunded liabilities to these funds through the issuance of debt certificates. An investment of $17,009,010 in land, improvements, buildings, apparatus, vehicles and equipment, to provide the services to the District's residents, represents 20.2% of the District's total assets. Liabilities Current and long-term obligations are classified based on anticipated payment date either in the near-term or in the future. Current obligations include accounts payable and accrued salaries and benefits. Long-term obligations including the Series 2007 General Obligation Bonds and the Series 2012 General Obligation Debt Certificates and compensated absences payable will be liquidated from resources that will become available after fiscal year 2014. Deferred Inflows of Resources Unavailable revenue in the form of assessed 2013 property taxes to be collected after fiscal year 2013 totaled $26,413,784 at year end. Net Position The assets of the District exceed liabilities resulting in a net position of $25,073,476, of which $9,357,299 is unrestricted. Total net position ofthe District does not include internal balances.

Statement of Activities The following chart shows the revenue and expenses of the District's activities during 2013 and 2012. Orland Fire Protection District Statement of Activities for the Years Ended December 31, 2013 and 2012

2013 Revenues: Program revenues: Charges for services Operating/capital grants and contributions General revenues: Property taxes Personal property replacement taxes Investrnentincome Other income

Total revenues Expenses: Governmental activities: Fire and rescue Emergency medical service General government Interest Total expenses Changes in Net Position Net position, beginning of year $

Net position, end of year

3,318,231 84,944

2012

2,801,351 164,190

26,170,143 53,633 42,090 185,746

26,611,660 36,696 47,768 551,891

29,854,787

30.213,556

14,125,007 11,371,042 2,732,841 1,229,493

14,444,780 11,520,507 3,862,584 204,252

29,458,383

30,032,123

396,404

181,433

24,677,072

24,495,639

25,013,416

24,611,012

Governmental activities increased the District's net position by $396,404, or 1.6%. Key elements contributing to this net change are summarized below. Revenue: For the year ending December 31, 2013, total revenue from governmental activities decreased by $358,769, or 1.2%. Total program revenues, which include charges for services as well as operating and capital grants, increased by $437,634, or 14.8%. Charges for services increased by $516,880, or 18.5%. The increase in charges for services is related to an increase in ambulance fees. Operating grant revenue is received through FEMA's Assistance to Firefighters Program to offset the costs to train over 400 firefighters in the regional area. The classes funded by the grant began in 2011 and are expected to be complete in 2014.

xvi

General revenues, which includes property taxes, personal property replacement taxes, investment income, and other income decreased by $796,403 or 2.9% due mostly to the decrease in property taxes received. Property taxes decreased by $441,517, or 1.7%. The property tax extension (total property taxes billed) decreased by 1.0% due to a 7.8% decrease in the District's equalized assessed valuation. Expenses: Expenses from governmental activities decreased by $573,740 (1.9%). Fire and rescue expenses and emergency medical service expenses combined decreased by $469,238, or 1.8%.

General government expenses were $1,129,743 less than the prior year. This represents a 29.2% decrease from 2012 due to the cost associated with the issuance of pension debt certificates in the prior year. Interest expense increased by $1,025,241. This increase is due to pension debt certificates outstanding during the entire year. Financial Analysis of the District's Funds

As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. The focus of the District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the District's governmental funds reported combined ending fund balance of $16,250,046, a decrease of $1,156,259 compared to the prior year. Of the total, $157,416 is considered non-spendable because it has been used for prepaid items. Ten percent, or $1,703,716, of the total is restricted due to external limitations on its use. These uses include general government ($42,121), emergency rescue ($332,883), tort immunity ($1,306,292), and ambulance ($22,420). Fifty-three percent, or $8,596,347, has been assigned, meaning there are limitations on its intended use. The assigned uses include general government ($817,544), tort immunity purposes ($141,619), emergency rescue purposes ($238,700), ambulance services ($3,709,651), capital projects ($3,677,127), and debt service ($11,706). The remaining thirty-six percent, or $5,792,567, is unassigned. The General Fund is the main operating fund of the District. At the end of the current fiscal year, unassigned fund balance of the General Fund was $5,792,567, while total fund balance of the General Fund was $8,829,142. As a measure ofthe General Fund's liquidity, it may be useful to compare the unassigned fund balance and total fund balance to total fund expenditures. Total general fund expenditures for 2013 were $19,172,531. Unassigned fund balance represents 30.2 percent of these General Fund expenditures, while total fund balance represents 46.1 percent of that same amount.

XVll

Orland Fire Protection District General Fund Budgetary Highlights For the Fiscal Year Ending December 31, 2013

Revenues Property taxes Charges for services Other Total

Budget

Actual

$ 19,002,222 530,612 338,752 19,871,586

$ 18,959,921 482,904 325,381 19,768,206

16,090,327 1,111,277 1,532,050 152,485

Expenditures and Encumbrances Personnel Commodities Contractual Other Debt service Total Excess of Revenue Over Expenditures Other Financing Sources Transfers out Net Change in Fund Balance

Percentage of Actual to Budget

(42,301) (47,708) (13,37l) (103,380)

99.8% 91.0% 96.1% 99.5%

1,337,407 109,754 724 23,071 (1,441,876) 29,080

91.7% 90.1% 100.0% 86.8%

18,886,139

14,752,920 1,001,523 1,531,326 129,414 1,441,876 18,857,059

985,447

911,147

(74,300)

(1,071,600)

Variance with Budget

(86,153)

99.9%

(1,071,600)

(160,453)

(74,300)

General Fund revenues in the amount of $19,768,206 are 0.5% under budget. Property taxes were 0.2% less than budget. Due to property tax receipts in the General Fund, the District abated property taxes in the Debt Service Fund and transferred funds to the Debt Service Fund to pay costs of the Series 2007 Bonds. Charges for services were 9.0% less than budget. The District amended the 2013 budget to adjust expenditure/ revenue classifications and to present inter-fund transfers. General Fund expenditures in the amount of$18,857,059 are 0.1 % less than budget. Capital Assets The District's investment in capital assets for its governmental activities as of December 31,2013 amounts to $17,009,010. The District's investment in capital assets increased by $266,634, due to capital asset additions that exceeded depreciation expense for the year. This investment in capital assets included land, buildings and improvements, apparatus, vehicles, and equipment.

XV111

Orland Fire Protection District Capital Assets (net of accumulated depreciation) December 31, 2013 and 2012

2013 Land Buildings and improvements Apparatus and vehicles Equipment Total capital assets

2012

410,330 12,002,695 4,160,744 435,241

410,330 11,552,385 4,281,474 498,187

17,009,010

16,742,376

Major capital asset events during the current fiscal year included renovations to station #2 and the purchase of a new ambulance and command vehicles. Additional information on the District's capital assets can be found in the notes to financial statements, see page 24. Long-term Liabilities

The District has an outstanding general obligation bond of $3,260,000 at the end of the current fiscal year. The District retained its Aa1 rating from Moody's Investors Service for general obligation bond issues. In December, 2012, the District issued taxable debt certificates in the amount of $26,715,000 to pay its actuarial unfunded liability of its pension funds. The District received an Aa2 rating from Moody's Investors Service for this specific issue. The District has outstanding general obligation debt certificates of $26,295,000 at the end of the current fiscal year. Annual debt service payments were made as scheduled for the general obligation bond held by the District. No refinancing of debt occurred during 2013. Orland Fire Protection District Long-term Liabilities December 31, 2013 and 2012

2013 Bonds payable Debt certificates Compensated absences Total long-term liabilities

2012

3,289,091 26,000,737 1,527,156

4,202,949 26,405,249 1,403,326

30,816.984

32,011.524

Additional information on the District's long-term liabilities can be found in the notes to financial statements, see pages 32 - 34.

XIX

Economic Factors and Next Year's Budget and Rates The District's primary revenue source is property taxes, representing approximately 86.7% of total revenue. The Property Tax Extension Limitation Law allows a taxing district to receive a limited inflationary increase in tax extensions on existing property, plus an additional amount for new construction, and voter-approved rate increases. Budgeted revenue for 2014 is $30,426,600. Property taxes are assumed to increase for existing property by the Consumer Price Index and for new construction property. The District abated a portion of its non-capped property tax levies for tax year 2013. Other sources of budgeted revenue include fees for ambulance service, fees for dispatch services provided to other fire departments, and other miscellaneous sources. Budgeted expenditures for 2014 are $30,531,621. Expenditures include salaries and benefits to maintain staffing levels, facility expenses to operate and maintain existing buildings, maintenance expenses to maintain existing apparatus, debt payments, and other miscellaneous expenditures. The 2014 budget includes maintaining staffing levels reduced by attrition, improving information technology and communications, replacing vehicles, and the purchasing of other specialized equipment. Requests for Information This financial report is designed to provide a general overview of the District's finances for all those with an interest in the District. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Office of the Finance Director Orland Fire Protection District 9790 West 15I S! Street Orland Park, Illinois 60462

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF NET POSITION-

GOVERNMENTAL ACTnnTrnS DECEMBER 31,2013

ASSETS Cash and investments Receivables, net of allowance for uncollectibles: Property taxes Accounts Due from fiduciary trust fund Prepaid items Net pension and postemployment benefit asset Capital assets not being depreciated: Land Capital assets, net of accumulated depreciation: Buildings and improvements Apparatus and vehicles Equipment

16,223,106 26,581,972 1,577,404 9,229 183,308 22,654,719 410,330 12,002,695 4,160,744 435,241

Total assets

84,238,748

LIABILITIES

Accounts payable and other current liabilities Due to fiduciary trust fund Noncurrent liabilities: Due within one year Due in more than one year

699,504 1,235,000 1,550,000 29,266,984

Total liabilities

32,751,488

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue - property taxes

26.413,784

NET POSITION

Net investment in capital assets Restricted for: Tort immunity Emergency rescue Postemployment benefits Other Unrestricted

13,719,919 1,306,292 332,883 292,542 64,541 9,357,299

Total net position

See notes to basic financial statements. 1

25,073.476

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2013

Charges for Service

Expenses Functions/programs: Governmental activities: Fire and rescue Emergency medical service General government Interest expense Total governmental activities

Program Revenues Operating Grants and Contributions

Net (Expense) Revenue and Change in Net Position

Capital Grants and Contributions

14,125,007 11,371,042 2,732,841 1,229,493

363,134 2,789,402 165,695

64,944

29,458,383

3,318,231

64,944

20,000 ~$==~~

20,000

(13,676,929) (8,581,640) (2,567,146) (1,229,493)

(26,055,208)

General revenues: Taxes: Property Personal property replacement Investment income Other income

26,170,143 53,633 42,090 185,746 26,451,612

'fotal general revenues Change in net position

396,404

Net position ,at beginning of year, as restated

24,677,072

Net position at end of year

See notes to basic financial statements. 2

25,073,476

FUND FINANCIAL STATEMENTS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS BALANCESHEET-GOVERNMENTALFUNDS DECEMBER 31,2013

General

Capital Projects

Ambulance

Nonmajor Governmental Fund

Total Governmental Funds

ASSETS

Cash and investments Receivables: Property taxes Accounts Due from other funds Due from fiduciary trust fund Prepaid items Total assets

11,750,349

18,498,987 399,614 736,747 9,229 157,416

4,472,757

8,082,985 1,177,790 3,789,284

$ 31,552,342

13,050,059

4,472,757

58,883

16,223,106

11,706

26,581,972 1,577,404 4,537,737 9,229 157,416

11,706

$ 49,086,864

LIABILITIES

Accounts payable Accrued expenditures Due to other funds Due to fiduciary trust fund Total liabilities

264,865 326,549 3,800,990

736,747 1,235,000

323,748 326,549 4,537,737 1,235,000

4392,404

1,235,000

18330,796

8,082,988

26,413,784

157,416 1,681,296 1,197,863 5,792,567

22,420 3,709,65.1

3,677,127

11,706

157,416 1,703,716 8,596,347 5,792,567

8,829,142

3,732,071

3,677,127

11,706

6,423,034

795,630

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue - property taxes

FUND BALANCES

Nonspendable Restricted Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances

$ 31,552,342

See notes to basic financial statements. 3

13,050,059

4,472,757

11,706

16,250,046

49,086,864

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION DECEMBER 31, 2013

Amounts reported for governmental activities in the statement of net position are different because: Total fund balances - governmental funds

16,250,046

Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental funds.

17,009,010

A prepayment made on the purchase of a vehicle is not reported as an asset in the governmental funds.

25,892

Long-term liabilities, including bonds payable, are not due and payable in the current year and, therefore, are not reported as liabilities in the funds. Also, governmental funds report the effect of premiums, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Long-term liabilities and related accounts at year-end consist of: General obligation bonds General obligation debt certificates Unamortized amounts: Issuance discount Issuance premium Compensated absences

(3,260,000) (26,295,000) 294,263 (29,091) (1,527,156)

Total

(30,816,984)

Accrued interest payable was recognized for governmental activities, but is not due and payable in the current period and therefore is not reported as a liability in the governmental funds.

(49,207)

Contributions in excess of the net pension and postemployment benefit obligations are not reported as assets in the governmental funds. Net position of governmental activities

22,654,719 $

See notes to basic financial statements. 4

25,073.476

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31,2013

General

Revenues: Property taxes Charges for service Grant proceeds Investment income Personal property replacement taxes Other

Total revenues Expenditures: Current: Personnel: Compensation and salaries Payroll taxes Education and seminars Health and life insurance Pension contribution Commodities: Heat, light and power Operational supplies Postage and printing Protective clothing Repairs and maintenance Telephone Vehicle maintenance Contractual: Billing services Insurance Professional services Other Debt service: Principal Interest Capital outlay Total expenditures

18,959,921 482,904 64,944 38,756 53,633 168,048

Capital Projects

Ambulance

7,210,222 2,835,327

Nonmajor Governmental Fund

Total Governmental Funds

20,000 3,334

26,170,143 3,318,231 84,944 42,090 53,633 185,746

23,334

29,854,787

17,698

19,768,206

10,063,247

9,930,434 228,840 72,914 1,818,607 2,719,548

5,899,650 206,710 24,144 2,356,584

15,830,084 435,550 97,058 4,175,191 2,719,548

69,354 467,015 6,236 86,811 576,885 24,589 70,911

29,720 160,636

99,074 627,651 6,236 138,365 890,085 49,400 142,410

51,554 313,200 24,811 71,499

116,816 1,128,657 724,519 279,739

116,816 1,128,657 402,669 127,185

321,850 152,554

420,000 1,021,876

905,000 166,600

1,325,000 1,188,476 1,037,187

1,071,600

31,011,046

1,037,187 19,172,531

9,729,728

See notes to basic financial statements. 5

1,037,187

General

Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year

Ambulance

595,675

333,519

(1,071,600)

(1,000,000)

(1,071,600)

(1,000,000)

(475,925)

(666,481)

9,305,067

8,829,142

3,732,071

Total Governmental Funds

(1,013,853)

(1,071,600)

(1,156,259)

1,000,000

1,071,600

2,071,600 (2,071,600)

1,000,000

1,071,600 (1,156,259)

(13,853)

4,398,552 ~

Nonmajor Governmental Fund

Capital Projects

3,690,980

3,677,127

11,706

17,406,305

16,250,046

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2013

Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds

(1,156,259)

An increase in the net pension and postemployment benefit asset increases assets in the statement of net position.

186,690

Governmental funds report capital outlays as expenditures. However in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capitalized capital outlays ($1,011,295) exceeded depreciation ($831,367) in the current period.

179,928

A prepayment made on the purchase of a vehicle is an expenditure in the governmental funds, but the prepayment is recorded as an asset in the statement of net position.

25,892

Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

1,325,000

The issuance of long-term debt provides current financial resources to governmental funds; however, it has no effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The net effect of these differences in the treatment of long-term debt and related items is summarized as follows: Amortization of issuance premium Amortization of issuance discount

8,858 (15,488) (6,630)

Total Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. The increase in the accrued interest balance from the previous year results in an increase in interest expense reported in the statement of activities.

(34,387)

Long-term compensated absences do not require the use of current financial resources. Therefore, the increase in compensated absences payable is not reported in the governmental funds.

023,830) $

Change in net position of governmental activities

See notes to basic financial statements. 7

396,404

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND AND MAJOR SPECIAL REVENUE FUND YEAR ENDED DECEMBER 31,2013

General Fund Final Budget Actual

Original Budget Revenues: Property taxes Charges for service Grant proceeds Investment income Personal property replacement taxes Other Total revenues Expenditures and encumbrances: Current: Personnel: Compensation and salaries Payroll taxes Education and seminars Health and life insurance Pension contribution Commodities: Heat, light and power Operational supplies Postage and printing Protective clothing Repairs and maintenance Telephone Vehicle maintenance Contractual: Billing services Insurance Professional services Other Debt service: Principal Interest Total expenditures and encumbrances

19,325,853 530,612

21,719 45,000 272,033

18,959,921 482,904 64,944 38,756 53,633 168,048

20,195,217

19,871,586

19,768,206

003,380)

9,689,574 241,663 llO,040 2,193,681 4,025,977

9,701,290 241,663 99,040 1,877,681 4,170,653

9,930,434 228,840 55,491 1,818,607 2,719,548

(229,144) 12,823 43,549 59,074 1,451,105

ll4,802 346,702 22,000 79,253 290,107 37,844 59,752

114,802 395,083 22,000 106,253 363,543 37,844 71,752

69,354 356,306 6,236 107,514 366,613 24,589 70,9ll

45,448 38,777 15,764 (1,261) (3,070) l3,255 841

l,ll5,532 225,518 173,485

1,115,532 416,518 152,485

1,128,657 402,669 129,414

(13,125) l3,849 23,071

420,000 1,021,876

(420,000) (1,021,876)

18,725,930

See notes to basic financial statements. 8

19,002,222 530,612

Variance with Final Budget

18,886,139

18,857,059

(42,301) (47,708) 64,944 17,037 8,633 003,985)

29,080

Page 1 of2

Ambulance Fund Final Budget Actual

Original Budget

6,878,693 2,138,681

7,196,878 2,138,681

7,210,222 2,835,327

Variance with Final Budget

13,344 696,646

13,287

(13,287)

44,164

17,698

9,074,825

9,393,010

10,063,247

670,237

5,725,750 208,274 42,869 1,337,655

5,840,065 208,274 30,869 2,372,655

5,899,650 206,710 26,309 2,356,584

(59,585) 1,564 4,560 16,071

49,202 106,914

49,202 126,914

29,720 83,859

19,482 43,055

46,346 173,168 38,157 60,248

62,346 256,168 31,157 72,248

63,661 234,431 24,811 71,499

(1,315) 21,737 6,346 749

100,000

116,816

(16,816)

164,647 150,000

342,647 150,000

321,850 152,554

20,797 (2,554)

8,203,230

9,642,545

9,588.454

(26,466)

54,091

General Fund Final Budget Actual

Original Budget Excess (deficiency) of revenues over (under) expenditures and encumbrances

1,469,287

Other fmancing uses: Transfers out Net change in fund balances

985,447

Variance with Final Budget

911,147

(1,565,543)

(1,071,600)

(96,256)

(86,153)

(160,453)

(74,300)

Fund balances at beginning of year (Non-GAAP budgetary basis)

8,856,611

Fund balances at end of year (N on-GAAP budgetary basis)

8,760,355

8,770,458

8,696,158

(74,300)

132,984

Adjustment to generally accepted accounting principles: Current year encumbrances included in expenditures Fund balances at end of year (GAAP basis)

8,760,355

See notes to basic financial statements. 10

8,770,458

8,829,142

58,684

Page 2 of2

Ambulance Fund Final Actual Budget

Original Budget

871,595

(249,535)

474,793

(250,000)

(1,000,000)

621,595

(1,249,535)

(525,207)

Variance with Final Budget

724,328

4,233,047

4,854,642

2,983,512

3,707,840

724,328

_ _~24;:;.,,=<.:23~1

24,231

4,854,642

2,983,512

3,732,071

ol!:$==7~4ol;;!8,===55===9

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF NET POSITION FIDUCIARY FUNDS -PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS DECEMBER 31, 2013

ASSETS Cash Accrued interest receivable Due from other funds Investments, at fair value: Debt issues Equities Insurance contracts Mutual funds U.S. government agency notes U.S. Treasury notes Prepaid items

2,672,793 241,385 1,235,000 10,915,881 9,835,709 9,300,988 65,931,377 2,452,798 26,662,111 5,192 129,253,234

Total assets

LIABILITIES Accounts payable Due to other funds

27,275 9,229 36,504

Totalliabilities

NET POSITION Held in trust for pension benefits and other purposes

See notes to basic financial statements. 12

$ 129,216,730

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF CHANGE IN NET POSITION FIDUCIARY FUNDS - PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS YEAR ENDED DECEMBER 31, 2013

Additions: Contributions: Employer Plan members Other

3,954,548 1,200,751 100

Total contributions

5,155,399

16,142,707 (216,694)

Investment income Less investment expense Net investment income

15,926,013

Total additions

21,081,412

Deductions: Benefits Administrative expenses

2,437,158 118.412 2,555,570

Total deductions

18,525,842

Change in net position

110,690,888

Net position at beginning of year

~ 129,216,730

Net position at end of year

See notes to basic financial statements. 13

NOTES TO BASIC FINANCIAL STATEMENTS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Description of Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of Orland Fire Protection District, Illinois (the "District"). All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. The District does not engage in any business-type activities.

Reporting Entity

The District provides fire, rescue, emergency medical services and general administrative services. The accompanying financial statements present the District and its component units, entities for which the government is considered to be financially accountable. Blended component units are, in substance, part of the District's operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the District. Blended component units. The District's blended component units consist of the Orland Fire Protection District Firefighters' Pension Fund ("FPF") and the Retiree Health Insurance Plan (RHIP").

The District's sworn firefighters participate in the FPF. FPF functions for the benefit of these employees and is governed by a pension board. The District and the FPF participants are obligated to fund all FPF costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the District is authorized to approve the actuarial assumptions used in the determination of the contribution levels. Although it is legally separate from the District, the FPF is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the District's sworn firefighters. The FPF is reported as a pension trust fund. The District's sworn firefighters also participate in the RHIP, which provides health insurance coverage for retired employees and their spouse and dependents until they reach age 65. The District funds RHIP costs based upon actuarial valuations. The RHIP is reported as if it were part of the primary government because its sole purpose is to provide health insurance benefits for the District's sworn firefighters. The RHIP is reported as a trust fund.

Basis of Presentation - Government-wide Financial Statements

While separate government-wide and fund fmancial statements are presented, they are interrelated. The governmental activities incorporate data from governmental funds. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. As general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

D. Basis of Presentation - Fund Financial Statements The fund financial statements provide information about the District's funds, including its blended component units. Separate statements for each fund category - governmental and fiduciary - are presented. The emphasis of fund financial statements is on major governmental funds. Major individual governmental are reported as separate columns in the fund financial statements. The remaining governmental fund is reported as a nonmajor fund. The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It is comprised of three subfunds: the Corporate Fund, the Tort Liability Fund, and the Emergency Rescue Fund. The Corporate Fund accounts for the direct costs of fire suppression and an allocation of administration costs. The Tort Liability Fund accounts for all costs of insurance and risk management. The Emergency Rescue Fund is used to account for expenditures funded through property taxes levied for rescue purposes. The Ambulance Fund accounts for the direct costs of emergency medical services and an allocation of administration costs. The Capital Projects Fund accounts for financial resources accumulated for the acquisition or construction of capital improvements. The District reports the following nonmajor governmental fund: The Debt Service Fund accounts for the repayment of the District's bonded debt. Additionally, the District reports the following fiduciary funds: The Firefighters' Pension Fund accumulates resources for the benefit of the members of the pension fund. The Retiree Health Insurance Fund accumulates resources for health insurance benefits for the District's retirees. During the course of operations the District has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental funds) are eliminated. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide fmancial statements. Transfers between the funds included in governmental activities are eliminated.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund fmancial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Additionally, property taxes are recognized on the current year's levy in conjunction with the amount budgeted by the Board of Trustees for the current year with the unrecognized amount being recorded as unavailable revenue. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Property taxes, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the District. The pension and other postemployment benefit trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.

Budgetary Information

Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America, except that in certain governmental funds encumbrances are recorded as the equivalent of expenditures for budgetary basis purposes. Encumbrances are recorded in the Corporate, Tort Liability, Emergency Rescue, Ambulance, and Capital Projects funds.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

The District follows these procedures statements:

III

establishing the budgetary data reflected

III

the financial

1. The Chief submits to the District Board of Trustees a proposed operating budget for the fiscal year. The operating budget includes proposed expenditures and the means of financing them for the general, special revenue, debt service, and capital projects funds. 2. Public hearings are conducted by the District to obtain taxpayer comments. 3. The budget is legally enacted through passage of an ordinance. The budget for the year ended December 31,2013 was adopted through the passage of ordinance number 2012-06 on November 27, 2012 and was subsequently amended through the passage of ordinance number 2014-02 on April 29, 2014. 4. With authorization from the Chief, the Finance Director is allowed to transfer appropriated amounts between line items within funds. 5. The level of control (level at which expenditures may not exceed budget/appropriations) is the line item of appropriation. Appropriations lapse at the end of the fiscal year. 6. Budgeted expenditures represent working budget amounts. The appropriation as adopted for each fund is as follows: General Fund: Corporate Subfund Tort Liability Subfund Emergency Rescue Subfund Ambulance Fund Capital Projects Fund Debt Service Fund

18,419,296 2,052,647 1,793,959 11,339,489 1,500,750 1,232,340

Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed by the District. Outstanding encumbrances at the end of the year are reported in fund balance as restricted, committed or assigned and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. Encumbrances outstanding at December 31,2013 totaled $389,425. The following funds had an excess of actual expenditures/encumbrances over the working budget amount for the year ended December 31, 2013: Fund General subfunds: Tort Liability Fund Emergency Rescue Fund

Budget

1,777,711 1,417,573 17

Actual

1,784,247 1,421,561

Variance

6,536 3,988

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

The overexpenditures in the Tort Liability and Emergency Rescue Funds were funded by greater than anticipated revenues and available fund balance, respectively. G.

Assets, Liabilities, Deferred OutflowslInflows of Resources, and Net Position/Fund Balance

Cash and Cash Equivalents

The District's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.

Investments

Investments are reported at fair value, generally based on quoted market prices. Short-term investments are reported at cost, which approximates fair value.

Prepaid Items

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenses/expenditures when consumed rather than when purchased.

Capital Assets

Capital assets, which include land, buildings, apparatus, vehicles and equipment, reported in the government-wide financial statements are defined by the District as assets with an initial, individual cost of more than $10,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset's life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Buildings, apparatus, vehicles and equipment are depreciated using the straight-line method over the following estimated useful lives: Years Buildings and improvements Apparatus Vehicles Equipment

10-20 5

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

Deferred Outflows/Inflows ofResources

In addition to assets, the statement of net position and or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of net position and or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenues) until that time. The District has only one type of item that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported in the government-wide statement of net position and governmental funds balance sheet. The District reports unavailable revenues from one source - property taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

Long-term Obligations

In the government-wide fmancial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts, as well as gains (losses) on refundings, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Gains (losses) on refundings are reported as deferred inflows (outflows) of resources. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenses. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Net Position Flow Assumption

Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District's policy to consider restricted - net position to have been depleted before unrestricted net position is applied.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Fund Balance Flow Assumptions

Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the District's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

Fund Balance Policies

Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the District's highest level of decision-making authority. The Board of Trustees is the highest level of decision-making authority for the District that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as committed. Intent can be expressed by the Board of Trustees or by an individual or body to which the Board delegates the authority. The Board of Trustees may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.

H. Revenues and Expenditures/Expenses

Program Revenues

Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Property Taxes

Property taxes are levied as of January 1 on property values assessed on the same date. The tax levy is divided into two billings: the ftrst billing (mailed on or about February 1) is an estimate of the current year's levy based on the prior year's taxes; the second billing (mailed on or about August 1) reflects adjustments to the current year's actual levy. The billings are considered past due 30 days after the respective billing date at which time the applicable property is subject to lien and penalties and interest are assessed. The District receives signiftcant distributions of tax receipts approximately one month after the due dates.

Compensated Absences

It is the District's policy to permit employees to accumulate earned but unused sick pay beneftts. The

liability for sick pay is reported as incurred in the government-wide ftnancial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. I.

Estimates

Management uses estimates and assumptions in preparing ftnancial statements. Those estimates and assumptions affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses/expenditures. Actual results could differ from those estimates.

Comparative Data

Comparative data for the prior year have been presented in the combining and individual fund ftnancial statements and schedules in order to provide an understanding of the changes in the ftnancial position and operations of the various funds of the District.

II. DETAILED NOTES ON ALL ACTIVITIES AND FUNDS A.

Deposits and Investments

Deposits Custodial credit risk for deposits is the risk that, in the event of a bank failure, the deposits of the District, the Fireftghters' Pension Fund, and the Retiree Health Insurance Fund might not be recovered. The District, the Fireftghters' Pension Fund, and the Retiree Health Insurance Fund do not have a deposit policy for custodial credit risk. As of December 31, 2013, $16,159,147 of the District's bank balances of $19,399,687 was uninsured and collateralized with securities held by the pledging ftnancial institutions. As of December 31, 2013, the bank balances of the Fireftghters' Pension Fund and the Retiree Health Insurance Fund were fully insured.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Investments As of December 31, 2013, the Firefighters' Pension Fund and the Retiree Health Insurance Fund had the following investments:

Fair Value

Type of Investment Firefighters' Pension Fund: Debt issues: Corporate Foreign Municipal Equities Insurance contracts Mutual funds U.S. government agency notes U.S. Treasury notes Total Retiree Health Insurance Fund: Equities Mutual funds Total

8,803,008 2,019,439 93,434 8,222,671 9,300,988 60,310,337 2,452,798 26,662,111

Average Credit Qualitv Ratings ( 1)

Weighted Average Years to Maturitv (2)

AAA - BBB-IAAA - BA 1 AAA - BBB-/AAA-BAA2 AA-/AI N/A N/A N/A AA+ -AA-/AAA N/A/AAA

5.02 4.77 7.85 N/A N/A N/A 3.54 3.39

N/A N/A

$117,864,786

1,613,038 5,621,040

$ 7,234,078

(1) Ratings are provided where applicable to indicate associated Credit Risk. NIA indicates not applicable. (2) Interest Rate Risk is estimated using weighted average years to maturity. Investment Policies

District The District's investments are subject to the following risks: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the District manages its exposure to declines in fair value by diversification of investments and maturities.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The District's investment program is derived from the terms and provisions of the Illinois Compiled Statutes Public Funds Investment Act (30 ILCS 235) which allow investment in instruments of the United States of America or its agencies, money market mutual funds with a minimum AA rating by at least two of the three largest credit rating agencies, public treasurer's investment pool and commercial paper with one of the three highest classifications by at least two of the three standard credit rating agencies. Commercial paper cannot exceed 180 days in maturity, 10% of the total outstanding paper of the issuing corporation or one-third of the cost of the portfolio. Concentration of credit risk is the risk of loss attributed to the magnitude of the District's investment in a single issuer. The District, with the exception of U.S. Treasury securities and authorized pools, provides that no more than 50% of the District's portfolio will be invested in a single security type or in a single financial institution. Custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District's investment policy requires the amount of collateral provided to be at a minimum of 110% of the fair value of the principal and accrued interest. Firefighters' Pension Fund and Retiree Health Insurance Fund

The Firefighters' Pension Fund and Retiree Health Insurance Fund's investments are subject to the same risks as noted above and are addressed in the investment policies as follows: Interest rate risk - an investment time horizon of average duration which is not to vary more than +/30% of the duration of the Lehman Brothers Intermediate Government Bond Index, thereby allowing the fund to tolerate moderate interim fluctuations in market value and rates in order to achieve its long-term objectives. Credit risk - the investment programs of the Firefighters' Pension Fund and the Retiree Health Insurance Fund are derived from the terms and provisions of the Illinois Compiled Statutes Public Funds Investment Act (40 ILCS 5/1-113) which allow investment in instruments of the United States of America or its agencies, savings accounts, certificates of deposit, public treasurer's pool, interest bearing bonds of any county, township or municipal corporation, mutual funds, certain short-term obligations of U.S. corporations, common stocks and general or separate accounts of life insurance companies authorized to transact business in Illinois. Concentration of credit risk - total investments in authorized items of the Firefighters' Pension Fund and Retiree Health Insurance Fund are not allowed to exceed 10% of the portfolio's overall allocation in one single security. Custodial credit risk - the investment policies of the Firefighters' Pension Fund and the Retiree Health Insurance Fund do not specifically define custodial credit risk.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Receivables

The allowance for uncollectible ambulance accounts receivable of $130,000 collection experience.

based on previous

Capital Assets

Capital asset activity for the year ended December 31, 2013 was as follows: Beginning Balance Governmental activities: Capital assets, not being depreciated: Land

410,330

Increases

~$_ _ __

Decreases / Adjustments

Ending Balance

410,330

Capital assets, being depreciated: Buildings and improvements Apparatus and vehicles Equipment

14,778,854 8,847,539 2.283,638

753,423 199,598 58.274

86,706

15,532,277 9,133,843 2,341,912

Total capital assets, being depreciated

25,910,031

1,011,295

86,706

27,008,032

Less accumulated depreciation for: Buildings and improvements Apparatus and vehicles Equipment

3,226,469 4,566,065 1,785,451

303,113 407,034 121,220

3,529,582 4,973,099 1,906,671

Total accumulated depreciation

9,577,985

831,367

10,409,352

16,332,046

179,928

86,706

16,598,680

179,928

~$=~86;;.o,,71:::li0~6

$ 17,009,010

Total capital assets, being depreciated, net Governmental activities capital assets, net

$ 16,742,376

Depreciation expense was charged to functions/programs as follows: Governmental activities: Fire and rescue Emergency medical service General government Total depreciation expense governmental activities

445,861 268,094 117,412

831,367

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

D. Pension and Postemployment Benefit Obligations The District maintains a single-employer, defined benefit pension plan (Firefighters' Pension Fund) which covers its qualified sworn employees and participates in the statewide Illinois Municipal Retirement Fund, an agent multiple-employer defined benefit public employee pension plan which covers substantially all of the remaining qualified District employees. The District also maintains a postemployment benefit plan (Retiree Health Insurance Plan). The information presented in the following notes is the most current information available as of December 31,2013. 1.

Firefighters' Pension Fund

Plan Description. Fire sworn personnel are covered by the Orland Fire Protection District, Illinois Firefighters' Pension Plan which is a defined benefit single-employer pension plan administered by the Orland Fire Protection District, Illinois Firefighters' Pension Fund Board. Although this is a singleemployer pension plan, the defined benefits and employee and employer contributions levels are governed by Illinois State Statutes (Chapter 108 1/2 Article 3) and may be amended only by the Illinois legislature. The District accounts for the plan as a pension trust fund. The Pension Fund issues a publicly available fmancial report that includes financial statements and required supplementary information. The report may be obtained at the Pension Fund's administrative office, located at 9790 West 151st Street, Orland Park, Illinois, 60462. At December 31, 2012, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries receiving benefits Terminated plan members entitled to but not yet receiving benefits Active plan members Total

37 3 116 156

Number of participating employers

The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits to plan members and their beneficiaries. Plan members attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one-half of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75% of such salary. Members with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. Surviving spouses receive 100% of final salary for fatalities resulting from an act of duty, otherwise 54% of final salary. Surviving children receive 12% of final salary. The maximum family survivor benefit is 75% of final salary. Members disabled in the line of duty receive the greater of 65% of the final salary or the retirement pension that the firefighter is eligible to receive.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

The monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original granted pension. Beginning with increases granted on or after July 1, 1993, the second and subsequent automatic annual increases shall be calculated at 3% of the amount of the pension payable at the time of the increase. Tier 2 employees (those hired on or after January 1,2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Firefighter's salary for pension purposes is capped at $106,800, plus the lesser of one-half of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least 10 years of service may retire at or after age 50 and receive a reduced benefit (i.e., 112% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or 1/2% of the change in the Consumer Price Index for the preceding calendar year. The financial statements of the Firefighters' Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The District's contributions are recognized when due and a formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. All plan investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price of the fiscal year. Securities without an established market are reported at estimated fair value. Funding Policy. Plan members are required to contribute 9.455% of their annual covered payroll. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The District is required to contribute at an actuarially determined rate; the current rate is 25.39% of annual covered payroll. Administrative costs of the Firefighters' Pension Plan are fmanced through investment earnings. The significant actuarial assumptions are as follows: Actuarial valuation date Actuarial cost method Asset valuation method Amortization method Amortization period Rate of return on present and future assets Projected salary increases * * Includes inflation at . Cost-of-living adjustments

December 31,2012 Projected unit credit cost method Market Value Level percentage of pay, closed 29 years 7.0% 5.0% 3.5% 2.0% per year

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Annual Pension Cost and Net Pension Asset. The District's annual pension cost and net pension asset for the year ended December 31, 2013 were as follows: Annual required contribution Interest on net pension asset Adjustment to annual required contribution

3,386,334 (1,489,909) 686,923 2,583,348 2,719,548

Annual pension cost Contributions made

136,200 21.284.408

Increase in net pension asset Net pension asset at beginning of year

$ 21.420,608

Net pension asset at end of year

The District's annual pension cost, the percentage of annual pension cost contributed to the plan, and the net pension asset (obligation) for three most recent years were as follows:

Annual Pension Cost

Fiscal Year Ended 12/31/13 12/31/12 12/31/11

Percentage Contributed 105.27 % 616.76 94.50

2,583,348 4,714,289 3,981,333

Net Pension Asset (Obligation) $ 21,420,608 21,284,408 (3,077,016)

Funded Status and Funding Progress. As of December 31, 2012, the most recent actuarial valuation date, the Plan was 96 percent funded. The actuarial accrued liability for benefits was $107,303,345 and the actuarial value of assets was $103,425,685, resulting in an unfunded actuarial accrued liability (VAAL) of $3,877,660. The covered payroll (annual payroll of active employees covered by the Plan) was $11,687,616 and the ratio of the VAAL to the covered payroll was 33 percent. The schedules of funding progress and employer contributions, presented as required supplementary information following the notes to basic financial statements, present additional information related to the funded status of the Plan.

Illinois Municipal Retirement Fund

Plan Description. The District's defined benefit pension plan for Regular employees provides retirement and disability benefits, post retirement increases, and death benefits to plan members and beneficiaries, The District's plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multipleemployer plan. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained on-line at www.imrf.org.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Funding Policy. As set by statute, the District's Regular plan members are required to contribute 4.5 percent of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer annual required contribution rate for calendar year 2013 was 11.18 percent. The District also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Annual Pension Cost and Net Pension Asset. The required contribution for calendar year 2013 was $199,756. The District's annual pension cost and net pension asset for the year ended December 31, 2013 were as follows:

Annual required contribution Interest on net pension asset Adjustment to annual required contribution

199,756 (65,690)

Annual pension cost Contributions made

134,066 199,756

Increase in net pension asset Net pension asset at beginning of year

65,690 875,879

Net pension asset at end of year

941,569

Three Year Trend Information for the Regular Plan.

Annual Pension Cost

Fiscal Year Ended 12/31113 12/31112 12/31111

Percentage Contributed

134,066 204,820 199,592

149.00 % 527.63 100.00

Net Pension Asset (Obligation) $

941,569 875,879

The required contribution for 2013 was determined as part of the December 31, 2011 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2011 included (a) 7.5 percent investment rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 10.0% per year depending on age and service, attributable to seniority/merit, and (d) post-retirement benefit increases of 3% annually. The actuarial value of the District's Regular plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period with a 20% corridor between the actuarial and market value of assets. The District's Regular plan's overfunded actuarial accrued liability at December 31, 2011 is being amortized as a level percentage of projected payroll on an open 30 year basis.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

Funded Status and Funding Progress. As of December 31, 2013, the most recent actuarial valuation date, the Regular plan was 103.78 percent funded. The actuarial accrued liability for benefits was $4,023,899 and the actuarial value of assets was $4,176,054, resulting in an overfunded actuarial accrued liability (VAAL) of $152,155. The covered payroll for calendar year 2013 (annual payroll of active employees covered by the plan) was $1,786,726. Because the plan is overfunded, there is no ratio for the VAAL to the covered payroll. The schedules of funding progress and employer contributions, presented as required supplementary information following the notes to basic financial statements, present additional information related to the funded status of the Regular plan.

Retiree Health Insurance Plan

Plan Description. The Retiree Health Insurance Plan (RHIP) is a single-employer defined benefit healthcare plan administered by the District. Employees who retire under the Orland Fire Protection District Firefighters' Pension Fund and their spouses and dependents are entitled to participate in the health insurance plan provided for active employees. Such coverage is provided for retired employees and their spouse and dependents until they reach age 65. Retired employees are required to pay 50% of the premiums for such coverage and the District pays the balance of the costs. Two PPO plans and an HMO plan are available for retired employees. The District accounts for the plan as a retiree health insurance trust fund. The Retiree Health Insurance Fund issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained at the Fund's administrative office, located at 9790 West 151 st Street, Orland Park, Illinois, 60462. Funding Policy. The contribution requirements are established by the District, using an actuarial study that is based on projected pay-as-you-go financing. For fiscal year 2013, the District contributed $1,235,000 to the plan. Plan members receiving benefits contributed $0. At December 31,2013, $8,721,268 was held in an irrevocable trust to fund current and future retiree health insurance claims. Annual OPEB Cost and Net OPEB Asset. The District's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters ofGASB No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District's net OPEB asset:

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

Annual required contribution Interest on net OPEB asset Adjustment to annual required contribution

Annual OPEB cost (expense) Contributions made

1,234,355 (15,626) 31,471 1,250,200 1,235,000 15,200 307,742

Decrease in net OPEB asset Net OPEB asset at beginning of year Net OPEB asset at end of year

292,542

The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB asset for the three most recent years were as follows:

Fiscal Year Ended 12/31/13 12/31112 12/31/11

Annual OPEB Cost $

Percentage of AnnualOPEB Cost Contributed

1,250,200 1,220,997 1,330,425

98.78 % 111.28 25.80

Net OPEB Asset $

292,542 307,742 169,992

Funded Status and Funding Progress. As of December 31,2012, the most recent actuarial valuation date, the plan was 36 percent funded. The actuarial accrued liability for benefits was $19,979,857, and the actuarial value of assets was $7,265,203, resulting in an unfunded actuarial accrued liability (VAAL) of $12,714,654. The covered payroll (annual payroll of active employees covered by the plan) was $15,925,073, and the ratio of the VAAL to the covered payroll was 80 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedules of funding progress and employer contributions, presented as required supplementary information following the notes to basic financial statements, present additional information related to the funded status of the plan.

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

In the December 31, 2012 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 5.50 percent investment rate of return (net of administrative expenses), a 3.00 percent inflation rate, and an annual healthcare cost trend rate of 7.50 percent initially, reduced by decrements to an ultimate rate of 5.00 percent after ten years. The UAAL is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31,2012 was 30 years. E.

Interfund Receivables and Payables

Individual interfund receivable and payable balances at December 31, 2013 were as follows: Payable Fund

Receivable Fund General Fund Ambulance Fund Nonmajor governmental fund

Capital Projects Fund General Fund General Fund

Total

Amount $

736,747 3,789,284 11,706

4,537,737

The outstanding balances between funds result mainly from the time lag between the dates that monies are received by the individual funds and the expenditure of funds. The repayment of the balances is expected to be made through collection of revenue in the subsequent year.

Interfund Transfers

Transfer out

Transfer in Capital Projects Fund Other governmental fund

Ambulance Fund General Fund

Total

Amount $

1,000,000 1,071,600

2,071,600

Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them in accordance with budgetary authorizations.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

Long-term Liabilities

Long-term liability activity for the year ended December 31,2013 was as follows: Beginning Balance Bonds payable: General obligation bonds Issuance premium Debt certificates: General obligation debt certificates Issuance discount Compensated absences

32,011,524

228,138

905,000 8,858

420,000 (15,488) 104,308

228.138 ~

Ending Balance

Reductions

26,715,000 (309,751) 1.403,326

Total

4,165,000 37,949

Additions

1,422,678

3,260,000 29,091

Due Within One Year

26,295,000 (294,263) 1,527,156 ~

30,816,984

985,000

445,000 120,000 ~

1,550,000

At December 31, 2013, $11,706 is available in the Debt Service Fund to service the general obligation bonds, The debt service of the other long-term liabilities will generally be from the General Fund, The schedule of the long-term debt outstanding at December 31,2013 is as follows: General Obligation Bonds

General obligation bonds are direct obligations and pledge the full faith and credit ofthe District, Denomination Bonds due each year Interest dates Interest rates Paying agent

$5,000 December 15th December 15th and June 15th 3.75% - 4.00% The Bank of New York Trust Co. Chicago, Illinois $8,000,000

Total original issue Year Ending December 31.

Interest Due

Principal Due

Total Due

2014 2015 2016

985,000 1,115,000 1.160,000

130,400 91,000 46.400

1,115,400 1,206,000 1.206.400

Total

3.260,000

267,800

3,527,800

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

General Obligation Debt Certificates General obligation debt certificates are direct obligations and pledge the full faith and credit of the District. Principal due each year Interest dates Interest rates Paying agent

December 15th December 15th and June 15th 1.00% - 4.95% The Bank of New York Mellon Trust Co. Chicago, Illinois $26,715,000

Total original issue Year Ending December 31,

Principal Due

Interest Due

Total Due

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

445,000 520,000 595,000 680,000 765,000 860,000 965,000 1,070,000 1,185,000 1,305,000 1,430,000 1,555,000 1,685,000 1,820,000 1,960,000 2,120,000 2,280,000 2,445,000 2,610,000

1,055,960 1,050,398 1,042,078 1,030,773 1,016,153 997,410 973,760 944,328 909,018 867,543 819,910 766,285 707,973 640,573 565,043 468,023 363,083 250,223 129,195

1,500,960 1,570,398 1,637,078 1,710,773 1,781,153 1,857,410 1,938,760 2,014,328 2,094,018 2,172,543 2,249,910 2,321,285 2,392,973 2,460,573 2,525,043 2,588,023 2,643,083 2,695,223 2,739,195

Total

$ 26,295,000

14,597,729

40,892,729

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

The annual requirements to amortize all outstanding debt as of December 31, 2013 are as follows: Year Ending December 31,

Principal Due

Interest Due

Total Due

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

1,430,000 1,635,000 1,755,000 680,000 765,000 860,000 965,000 1,070,000 1,185,000 1,305,000 1,430,000 1,555,000 1,685,000 1,820,000 1,960,000 2,120,000 2,280,000 2,445,000 2,610,000

1,186,360 1,141,398 1,088,478 1,030,773 1,016,153 997,410 973,760 944,328 909,018 867,543 819,910 766,285 707,973 640,573 565,043 468,023 363,083 250,223 129,195

2,616,360 2,776,398 2,843,478 1,710,773 1,781,153 1,857,410 1,938,760 2,014,328 2,094,018 2,172,543 2,249,910 2,321,285 2,392,973 2,460,573 2,525,043 2,588,023 2,643,083 2,695,223 2,739,195

Total

29,555,000

14,865,529

44.420,529

The legal debt margin of the District as of December 31,2013 is detennined as follows: Assessed valuation - 2012 tax year (most current valuation available)

2,378,592.213

Statutory debt limitation (5.75% of assessed valuation)

136,769,052 29,555,000

Total debt outstanding

Legal debt margin

107,214,052

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2013

H. Fund Balances As of December 31, 2013, fund balances were comprised of the following:

General Fund Nonspendable: Prepaid items Restricted for: Emergency medical Emergency rescue General government Tort immunity Assigned to: Capital projects Debt service Emergency medical Emergency rescue General government Tort immunity Unassigned Total

157,416

Other Total Governmental Governmental Fund Funds

Capital Projects Fund

Ambulance Fund

22,420

22,420 332,883 42,121 1,306,292

332,883 42,121 1,306,292 3,677,127

3,677,127 11,706 3,709,651 238,700 817,544 141,619 5,792,567

11,706 3,709,651 238,700 817,544 141,619 5,792,567

$ 8,829.142

$ 3,732,071

157,416

$ 3,677,127

11.706

$ 16.250,046

Encumbrances

Encumbrance accounting is employed as an extension offormal budgetary integration ofthe General Fund, Ambulance Fund, and Capital Projects Fund. At December 31, 2013, certain amounts which were previously restricted, committed, or assigned for specific purposes have been encumbered in the governmental funds. Significant encumbrances included in governmental fund balances are as follows: Encumbrances Included in: Restricted Assigned Fund Fund Balance Balance General Fund Ambulance Fund Capital Projects Fund Total

13,398

119,586 24,231 232,210

13,398

376,027

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

Risk Management

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injury to employees; and natural disasters. In order to protect against such losses, the District has purchased insurance from private insurance companies and has also joined the Illinois Counties Risk Management Trust Fund. The fund currently operates as a common risk management and insurance program entities in the State of Illinois. The District pays annual premiums to the fund for its general insurance coverage. The agreement for formation of the fund provides that it will be self-sustaining through member premiums and will reinsure through commercial companies for losses in excess of various limits established for each type of coverage. The amount of coverage has not decreased nor have the amount of settlements exceeded coverage in the current year or any of the past three years.

Tort Immunity Expenditures

Tort immunity expenditures for the year ended December 31, 2013 are summarized as follows: Property and liability insurance Risk management salaries and benefits Other Total

1,128,657 628,407 27,183

1.784.247

Labor Concentrations

The sworn and non-sworn personnel of the District are covered by collective bargaining agreements that expire on December 31,2015 and 2016, respectively.

M. Change in Accounting Principle During the year ended December 31, 2013, the District implemented GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. The objective of this Statement is to either (a) properly classify certain items that were previously reported as assets and liabilities as deferred outflows of resources or deferred inflows of resources or (b) recognize certain items that were previously reported as assets and liabilities as outflows of resources (expenses or expenditures) or inflows of resources (revenues ). The implementation of GASB 65 resulted in the restatement of beginning net position in the governmentwide financial statements. Under GASB 65, deferred debt issuance costs are expensed as incurred. Prior to the issuance of GASB 65, debt issuance costs reported in the government-wide financial statements were deferred and amortized over the life of the related debt. The restatement of beginning net position is summarized as follows:

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2013

Net position at December 31, 2012, as previously reported Change in reporting of deferred debt issuance costs

24,848,265 (171.193)

Net position at December 31,2012, as restated

24,677,072

Subsequent Events

Management has evaluated subsequent events through June 17, 2014, which is the date the financial statements were available to be issued.

REQUIRED SUPPLEMENTARY INFORMATION

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION FIREFIGHTERS' PENSION FUND DECEMBER 31, 2013

SCHEDULE OF FUNDING PROGRESS

Actuarial Valuation Date

Actuarial Value of Assets

Actuarial Accrued Liability

Unfunded Actuarial Accrued Liability (UAAL)

December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 December 31, 2008 December 31, 2007

$103,425,685 68,179,006 64,169,486 55,103,492 48,697,459 51,857,470

$107,303,345 93,554,592 83,897,747 78,216,004 68,189,670 62,557,991

$ 3,877,660 25,375,586 19,728,261 23,112,512 19,492,211 10,700,521

Funded Ratio

Covered Payroll

UAAL as a Percentage of Covered Payroll

96.40 72.90 76.49 70.45 71.41 82.90

$ 11,687,616 10,703,903 10,593,244 10,244,016 9,863,009 9,350,844

33.18 237.07 186.23 225.62 197.63 114.43

Information provided above is the most current information available.

SCHEDULE OF EMPLOYER CONTRIBUTIONS

Year Ended

Required Contribution

December 31,2013 $ December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 December 31,2008

3,386,334 4,324,815 3,625,665 3,728,549 3,331,538 2,695,098

Percentage Contributed

80.31 672.30 94.50 81.30 75.00 93.63

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION ILLINOIS MUNICIPAL RETIREMENT FUND DECEMBER 31, 2013

SCHEDULE OF FUNDING PROGRESS

Actuarial Valuation Date

Value of Assets

Accrued Liability

December 31, 2013 December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009 December 31, 2008

$ 4,176,054 3,542,035 2,246,371 2,360,455 2,020,259 1,786,915

$ 4,023,899 3,685,467 3,122,250 3,319,157 2,918,383 2,525,854

Unfunded Actuarial Accrued Liability (VAAL)

Funded Ratio

(152,155) 143,432 875,879 958,702 898,124 738,939

103.78 96.11 71.95 7l.12 69.23 70.74

Covered Payroll

$ 1,786,726 1,801,408 1,728,072 1,650,019 1,476,760 1,254,846

UAAL as a Percentage of Covered Payroll N/A

7.96 50.69 58.10 60.82 58.89

On a market value basis, the actuarial value of assets as of December 31, 2013 is $4,734,728. On a market basis, the funded ratio would be 117.67%. The actuarial value of assets and accrued liability cover active and inactive members who have service credit with Orland Fire Protection District, lllinois. They do not include amounts for retirees. The actuarial accrued liability for retirees is 100% funded.

SCHEDULE OF EMPLOYER CONTRIBUTIONS Year Ended

December 31, 2013 $ December 31,2012 December 3 1, 2011 December 3 1, 2010 December 31, 2009 December 31, 2008

Required Contribution

199,756 204,820 199,592 188,762 163,920 136,778

Percent Contributed

100.00 526.17 100.00 100.00 100.00 100.00

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION RETIREE HEALTH INSURANCE PLAN DECEMBER 31,2013

SCHEDULE OF FUNDING PROGRESS

Actuarial Valuation Date December 31, December 31, December 31, December 31,

2012 2011 2009 2007

Actuarial Value of Assets

Actuarial Accrued Liability

Unfunded Actuarial Accrued Liability (VAAL)

$ 7,265,203 5,774,041 3,922,615

$ 19,979,857 20,405,022 18,392,257 16,806,907

$ 12,714,654 14,630,981 14,469,642 16,806,907

Funded Ratio

Covered Payroll

UAAL as a Percentage of Covered Payroll

36.36 28.30 21.33 0.00

$ 15,925,073 16, I 06, 119 14,020,649 11,633,789

79.84 90.84 103.20 144.47

Information provided above is the most current information available.

SCHEDULE OF EMPLOYER CONTRIBUTIONS Year Ended

Required Contribution

December 3 I, 2013 $ December 31, 2012 December 3 1, 2011 December 31, 2010 December 31, 2009 December 31, 2008

1,234,355 1,291,437 1,390,511 1,358,747 1,519,754 1,530,777

Percentage Contributed 100.05 105.21 25.80 113.41 1Ol.00 165.60

COMBINING AND INDIVIDUAL FUND AND FINANCIAL STATEMENTS AND SCHEDULES

MAJOR GOVERNMENTAL FUNDS

GENERAL FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF GENERAL FUND BALANCE SHEET ACCOUNTS DECEMBER 31, 2013 WITH COMPARATIVE TOTALS FOR DECEMBER 31,2012

Emergency Rescue

Tort Liability

Corl!orate

Totals

2013

2012

$ 11,750,349

$ 14,457,886

18,498,987 399,614 736,747 9,229 157,416

19,185,913 274,601

Eliminations

ASSETS Cash and investments Receivables: Property taxes Accounts Due from other funds Due from fiduciary trust fund Prepaid items Total assets

$ 11,750,349

14,418,872 399,614 736,747 9,229 6,190

3,037,864

1,042,251

1,447,911

571,583

$ 27,321.001

$ 4,637,001

$ 1.613,834

$ (2,019,494) $ 31,552,342

$ 33,923,715

(2,019,494)

151.226

5,315

LIABILITIES Accounts payable Accrued expenditures Due to other funds Due to fiduciary trust fund

Total liabilities

264,865 326,549 5,820,484

6,411.898

429,555 286,734 4,502,948 309,245

(2,019,494)

264,865 326,549 3,800,990

(2,019,494)

4,392,404

5.528,482

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

14,250,681

3,037,864

1.042,251

18,330,796

19,090,166

6,190 42,121 817,544 5,792.567

151,226 1,306,292 141,619

332,883 238,700

157,416 1,681,296 1,197,863 5,792,567

5,315 1,810,994 684,302 6,804,456

6,658,422

1.599,137

571,583

8,829,142

9,305,067

27 a321,001

$ 4,637,001

$ 1,613,834

FUND BALANCES Nonspendable Restricted Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances

$ (2,019,494)

31,552,342

33,923,715

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF GENERAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2012

Tort Liabilitl::

Corl!orate Revenues: Property taxes Charges for service Grant proceeds Investment income Personal property replacement taxes Other Total revenues Expenditures: Current: Personnel: Compensation and salaries Payroll taxes Education and seminars Health and life insurance Pension contribution Commodities: Heat, light and power Operational supplies Postage and printing Protective clothing Repairs and maintenance Telephone Vehicle maintenance Contractual: Insurance Professional services Other Debt service: Principal Interest Debt certificate issuance costs Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures

15,720,406 425,306 64,944 38,756 53,633 148,871

2,041,644

Emergency Rescue

1,197,871 57,598

Totals 2012

2013

19,431,074 532,121 164,190 27,348 36,696 166,802

17,425

1,752

18,959,921 482,904 64,944 38,756 53,633 168,048

16,451,916

2,059,069

1,257,221

19,768,206

20,358,231

8,329,929 182,638 46,460 1,649,888 2,719,548

628,407

972,098 46,202 3,656 168,719

9,930,434 228,840 72,914 1,818,607 2,719,548

10,943,831 235,372 50,575 2,201,306 29,075,713

9,908 55,979

69,354 467,015 6,236 86,811 576,885 24,589 70,911

59,936 539,007 10,830 141,219 269,222 25,238 68,687

1,128,657 402,669 127,185

1,181,120 394,090 111,974

22,798

59,446 404,900 6,236 79,992 483,573 18,100 52,211

310,441 127,185

6,136

1,093

1,128,657 8,406

6,819 92,219 6,489 18,700

83,822

420,000 1,021,876

420,000 1,021,876 452,153 2,086

15,912,423

1,795,497

539,493

263,572

1,464,611

(207,390)

19,172,531

595,675

45,762,359

(25,404,128)

Other financing sources (uses): Issuance of debt certificates Transfers out Total other financing sources (uses)

Fund balances at beginning of year Fund balances at end of year

2012

(l,071,600)

26,715,000 (1,689,425)

(l,071,600)

(1,071,600)

25,025,575

263,572

7,190,529 $

Totals 2013

(l,071,600)

(532,107)

Net change in fund balances

Emergency Rescue

Tort Liabilitl:

Corl!orate

6,658,422

(207,390)

1,335,565 ~

1,599,137

(475,925)

778,973 ~

571,583

(378,553) 9,683,620

9,305,067 ~

8,829,142

9,305,067

CORPORATE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CORPORATE FUND BALANCE SHEET DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2012

2013 ASSETS Cash and investments Receivables: Property taxes Accounts Due from other funds Due from fiduciary trust fund Prepaid items

11,750,349

15,929,120 274,601

14,418,872 399,614 736,747 9,229 6,190

Total assets

14,457,886

5,315

27,321.001

30,666,922

264,865 326,549 5,820,484

429,555 286,734 6,581,096 309,245

LIABILITIES Accounts payable Accrued expenditures Due to other funds Due to fiduciary trust fund Total liabilities

6.411.898

7,606,630

14,250,681

15,869,763

6,190 42,121 817,544 5,792,567

5,315 380,758 6,804.456

6,658.422

7,190,529

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

FUND BALANCES Nonspendable Restricted Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances

27,321,001

30,666,922

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CORPORATE FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31,2012

2012

2013 Original Budget Revenues: Property taxes Charges for service Grant proceeds Investment income Personal property replacement taxes Other Total revenues Expenditures and encumbrances: Current: Personnel: Compensation and salaries Payroll taxes Education and seminars Health and life insurance Pension contribution Commodities: Heat, light and power Operational supplies Postage and printing Protective clothing Repairs and maintenance Telephone Vehicle maintenance Contractual: Professional services Other Debt service: Principal Interest Debt certificate issuance costs Capital outlay Total expenditures and encumbrances

16,947,790 442,033

Final Budget

15,765,321 442,033

Actual

Variance with Final Budget

(44,915) $ (16,727) 64,944 17,037

Actual

16,425,332 449,088 164,190 19,845

21,719

15,720,406 425,306 64,944 38,756

45,000 260,684

53,633 148,871

8,633 011.813)

36,696 164.415

17,717,226

16.534,757

16.451.916

(82,841)

17.259.566

8,202,811 195,834 87,015 1,988,217 4,025,977

8,162,527 195,834 82,015 1,693,217 4,170,653

8,329,929 182,638 46,537 1,649,888 2,719,548

(167,402) 13,196 35,478 43,329 1,451,105

9,395,206 188,089 15,661 2,005,269 29,075,713

98,400 266,656 22,000 73,350 245,720 27,864 43,995

98,400 318,037 22,000 98,350 296,156 27,864 52,995

59,446 306,403 6,236 99,153 299,431 18,100 52,211

38,954 11,634 15,764 (803) (3,275) 9,764 784

51,375 526,698 10,830 118,408 53,545 18,582 50,574

170,322 173,485

320,322 152,485

310,441 129,414

9,881 23,071

314,882 108,105

420,000 1,021,876

(420,000) (1,021,876) 452,153 2,086

15,621,646

15,690,855

15,651,251

39,604

42,387,176

2012

2013 Original Budget Excess (deficiency) of revenues over (under) expenditures and encumbrances

Final Budget

2,095.580

Other fmancing sources (uses): Issuance of debt certificates Transfers out Total other fmancing sources (uses) Net change in fund balances

Actual

843,902

(25,127,610)

0.315.543)

(1.071.600)

26,715,000 0.349.425)

(1.315,543)

(1.071.600)

25,365.575

(227,698)

(270,935)

780,037

6,809,771

Fund balances at end of year (Non-GAAP budgetary basis)

7,589,808

6,582,073

6,538,836

Adjustment to generally accepted accounting principles: Current year encumbrances included in expenditures

7 1589.808

6.582.073

6.658.422

237,965

(43,237)

6.571.806

6,809,771

(43,237)

119,586

Actual

(43.237)

800,665

Fund balances at beginning of year (Non-GAAP budgetary basis)

Fund balances at end of year (GAAP basis)

Variance with Final Budget

119,586

76.349

380,758

7.190.529

TORT LIABILITY FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS TORT LIABILITY FUND BALANCE SHEET DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2012

2013 ASSETS Property taxes receivable Due from other funds Prepaid items Total assets

3,037,864 1,447,911 151,226

1,954,565 1,328,857

4,637,001

3.283,422

3,037,864

1,947,857

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

FUND BALANCES Nonspendable Restricted Assigned Total fund balances Total deferred inflows of resources and fund balances

151,226 1,306,292 141.619

1,211,371 124,194

1,599,137

1.335,565

4,637,001

3,283,422

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS TORT LIABILITY FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2013 WITH COMP ARA TIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2012

2013 Original Budget Revenues: Property taxes Other

Total revenues

1,179,205 7,051

Final Budget

2,041,003 7,051

Actual

2,041,644 17,425

1,186,256

2,048,054

2,059,069

614,979 12,300

628,407 5,298

Variance with Final Budget

641 10,374

Actual

1,688,042 5,853 1,693,895

11,015

Expenditures and encumbrances: Current: Personnel: Compensation and salaries Education and seminars Commodities: Operational supplies Repairs and maintenance Contractual: Insurance Professional services

19,000 3,400

12,386 1,093

1,115,532 12,500

1,128,657 8,406

(13,125) 4,094

1,181,120 7,156

Total expenditures and encumbrances

1.777,711

1,777,711

1,784,247

(6.536)

1,862,453

270,343

274,822

1,318,065

726,610

1,588,408

1,592,887

4,479

1,318,065

6,250

17,500

Excess (deficiency) of revenues over (under) expenditures and encumbrances

(591,455)

Fund balances at beginning of year (Non-GAAP budgetary basis) Fund balances at end of year (Non-GAAP budgetary basis) Adjustment to generally accepted accounting principles: Current year encumbrances included in expenditures Fund balances at end of year (GAAP basis)

726,610

1,588,408

1,599,137

(13,428) 7,002

644,305 17,772 12,100

6,614 2,307

(168,558)

4,479

1,486,623

10,729

1,335,565

EMERGENCY RESCUE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS EMERGENCY RESCUE FUND BALANCE SHEET DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2013

2012

ASSETS Property taxes receivable Due from other funds Total assets

1,042,251 571,583

1,302,228 749,291

1,613,834

2,051,519

1,042,251

1,272,546

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

FUND BALANCES Restricted Assigned Total fund balances Total deferred inflows of resources and fund balances

332,883 238,700

599,623 179,350

571,583

778,973

1,613,834

2,051,519

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS EMERGENCY RESCUE FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2012

2013 Original Budget Revenues: Property taxes Charges for service Other Total revenues Expenditures and encumbrances: Current: Personnel: Compensation and salaries Payroll taxes Education and seminars Health insurance Commodities: Heat, light and power Operational supplies Protective clothing Repairs and maintenance Telephone Vehicle maintenance Contractual: Professional services Total expenditures and encumbrances

1,198,858 88,579 4.298

Final Budget

1,195,898 88,579 4,298

Actual

1,197,871 57,598 1.752

Variance with Final Budget

Actual

1,973 $ (30,981) (2,546)

1,317,700 83,033 4,037

1.291.735

1.288,775

1.257,221

(31.554)

1.404,770

871,784 45,829 10,725 205,464

923,784 45,829 4,725 184,464

972,098 46,202 3,656 168,719

(48,314) (373) 1,069 15,745

904,320 47,283 3,615 196,037

16,402 61,046 5,903 40,987 9,980 15,757

16,402 58,046 7,903 63,987 9,980 18,757

9,908 37,517 8,361 66,089 6,489 18,700

6,494 20,529 (458) (2,102) 3,491 57

8,561 43,657 10,121 12,932 6,656 18,113

42,696

83,696

83,822

(26)

72,052

1,326,573

1,417,573

1,421,561

(3,988)

1,323,347

2013 Original Budget Excess (deficiency) of revenues over (under) expenditures and encumbrances

Final Budget

(34,838)

2012 Actual

(128,798)

(164,340)

Other fmancing uses: Transfers out

(250,000)

Net change in fund balances

(284,838)

(128,798)

(164,340)

Fund balances at beginning of year (Non-GAAP budgetary basis)

728,775

Fund balances at end of year (Non-GAAP budgetary basis)

443,937

599,977

564,435

(35,542)

443.937

81,423

599.977

571 a583

(258,577)

987,352

7,148

Actual

(340,000)

Adjustment to generally accepted accounting principles: Current year encumbrances included in expenditures Fund balances at end of year (GAAP basis)

Variance with Final Budget

(35,542)

728,775

7,148

50,198

(28 a394) ~

778.973

AMBULANCE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS AMBULANCE FUND BALANCE SHEET DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2012

2013 ASSETS Receivables: Property taxes Accounts Due from other funds Total assets

8,082,985 1,177,790 3,789.284

7,128,144 878,635 3,516,683

13,050,059

11.523.462

1.235,000

LIABILITIES Due to fiduciary trust fund

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

8,082,988

7,124,910

22,420 3,709,651

4.398.552

3,732,071

4.398,552

FUND BALANCES Restricted Assigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances

13,050.059

11 a523,462

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS AMBULANCE FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31,2013 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2013 Original Budget Revenues: Property taxes Charges for service Other Total revenues Expenditures and encumbrances: Current: Personnel: Compensation and salaries Payroll taxes Education and seminars Health and life insurance Commodities: Heat, light and power Operational supplies Protective clothing Repairs and maintenance Telephone Vehicle maintenance Contractual: Billing services Professional services Other Total expenditures and encumbrances

6,878,693 2,138,681 57.451

Final Budget

7,196,878 2,138,681 57.451

2012 Actual

7,210,222 2,835,327 17,698

Variance with Final Budget

Actual

13,344 $ 696,646 (39,753)

7,180,586 2,269,230 30,810

9,074,825

9.393,010

10,063,247

670.237

9.480,626

5,725,750 208,274 42,869 1,337,655

5,840,065 208,274 30,869 2,372,655

5,899,650 206,710 26,309 2,356,584

(59,585) 1,564 4,560 16,071

5,936,696 212,738 21,875 1,321,787

49,202 106,914 46,346 173,168 38,157 60,248

49,202 126,914 62,346 256,168 31,157 72,248

29,720 83,859 63,661 234,431 24,811 71,499

19,482 43,055 (1,315) 21,737 6,346 749

25,686 96,290 76,027 66,188 25,446 69,256

100,000 164,647 150,000

100,000 342,647 150,000

116,816 321,850 152,554

(16,816) 20,797 (2,554)

95,871 275,686 131.912

8,203,230

9,642,545

9,588,454

54,091

8,355,458

2012

2013 Original Budget Excess (deficiency) of revenues over (under) expenditures and encumbrances

Final Budget

871,595

Other fmancing uses: Transfers out Net change in fund balances

Actual

(249,535)

Variance with Final Budget

474,793

(250,000)

(1.000,000)

(1,000,000)

621,595

(1,249,535)

(525,207)

Actual

724,328

1,125,168

(1,123,000) 724,328

2,168

Fund balances at beginning of year (Non-GAAP budgetary basis)

4,233,047

4.233,047

4,233,047

Fund balances at end of year (Non-GAAP budgetary basis)

4,854,642

2,983,512

3,707,840

724,328

4,233,047

24.231

24,231

165,505

Adjustment to generally accepted accounting principles: Current year encumbrances included in expenditures Fund balances at end of year (GAAP basis)

4 1854 1642

21983 1512

3 1732 1071

4,230,879

748 1559

4 13981552

CAPITAL PROJECTS FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CAPITAL PROJECTS FUND BALANCE SHEET DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2012

2013 ASSETS

Cash and investments Due from other funds Total assets

4,472,757

2,716,421 974,559

4,472,757

3,690,980

58,883 736,747

LIABILITIES

Accounts payable Due to other funds Total liabilities

795,630

FUND BALANCES

Assigned

3,690,980

3,677,127

Total liabilities and fund balances

4,472,757

3,690,980

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2013 Original Budget Revenues: Grant proceeds Investment income Other

Final Budget

2012 Actual

Variance with Final Budget

Actual

20,000 $ 2,064 (}27)

3,262

23.334

21.937

3.262

115,000 1.190,000

1.168.203

115,000 21.797

228,648

380,500

1.305,000

1,168.203

l36,797

228,648

(379,103)

(1,303,603)

(1,144,869)

158,734

(225,386)

Other financing sources: Transfers in

750,000

1.000,000

Net change in fund balances

370,897

Total revenues Expenditures and encumbrances: Current: Commodities: Repairs and maintenance Capital outlay Total expenditures and encumbrances Deficiency of revenues under expenditures and encumbrances

1,270 127

1.397

55,500 325,000

(303,603)

20,000 3,334

1.753,000

(144,869)

1,527,614

158,734

Fund balances at beginning of year (Non-GAAP budgetary basis)

3.589,786

Fund balances at end of year (Non-GAAP budgetary basis)

3,960,683

3,286,183

3,444,917

158,734

3,589,786

232.210

232,210

101.194

Adjustment to generally accepted accounting principles: Current year encumbrances included in expenditures Fund balances at end of year (GAAP basis)

3,9601683

31286 1183

31677 1127

2,062,172

390,944

3 a690 1980

NONMAJOR GOVERNMENTAL FUND

DEBT SERVICE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEBT SERVICE FUND BALANCE SHEET DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2013

2012

ASSETS Due from other funds

11, 706

=$===11=,7=0=6

11, 706

=$===11=,7=0=6

FUND BALANCES Assigned

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2013 Original Budget Revenues: Other

Expenditures: Debt service: Principal Interest Total expenditures Deficiency of revenues under expenditures Other fmancing sources: Transfers in

6,057

Final Budget

6,057

Actual

905,000 166,600

860,000 198,850

1.071.600

1,071,600

1.071.600

1.058,850

(1,065,543)

(1,071,600)

1.065,543

1.071.600

11.706

5,027

905,000 166,600

(6,057)

11,706

(6,057)

11.706

17.763

11.706

5,602 6,104

11.706

(1,053,823)

1.059.425

6,057

Fund balances at beginning of year

(6,057) $

Actual

905,000 166,600

Net change in fund balances

Fund balances at end of year

2012 Variance with Final Budget

(6 1057) ~

11.706

FIDUCIARY FUNDS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING STATEMENT OF NET POSITION PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS DECEMBER 31,2013 WITH COMPARATIVE TOTALS FOR DECEMBER 31,2012

Retiree Health Insurance

Firefighters' Pension

Totals 2013

2012

2,672,793 241,385 1,235,000 125,098,864 5.192

$ 26,649,063 166,826 309,245 83,587,805 5,142

129,253.234

110,718,081

27,275 9,229

27,193

36.504

36,504

27,193

~129,216,730

~ 11 0,690 a888

ASSETS Cash Accrued interest receivable Due from other funds Investments, at fair value Prepaid items Total assets

2,420,603 241,385

252,190 1,235,000 7,234,078

117,864,786 5.192 120.531.966

8,721.268

LIABILITIES Accounts payable Due to other funds Total liabilities

NET POSITION Held in trust for pension benefits and other purposes

~1201495,462

8,721,268

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING STATEMENT OF CHANGES IN NET POSITION PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2012

Retiree Health Insurance

Firefighters' Pension Additions: Contributions: Employer Employer - from issuance of debt certificates Plan members Other Total contributions Investment income Less investment expense

2,719,548

1,235,000

1,200,751 100 3,920,399

1.235,000

Totals 2013

3,954,548

2012

5,058,874

1,200,751 100

25,375,586 1,118,794 549

5.155.399

31.553,803

15,543,818 075,665)

598,889 (41.029)

16,142,707 (216,694)

7,695,368 (178,969)

Net investment income

15.368.153

557,860

15,926,013

7,516.399

Total additions

19,288,552

1,792,860

21.081.412

39,070,202

Deductions: Benefits Administrative expenses

2,100,363 118.412

336,795

2,437,158 118.412

2,203,991 128.370

2,218,775

336,795

2,555.570

2.332,361

17,069,777

1,456,065

18,525,842

36,737,841

103.425,685

7,265,203

110,690,888

73,953,047

$ 120.495,462 $

8,721,268

Total deductions Change in net position Net position at beginning of year Net position at end of year

$ 129,216,730 ~ 110a690,888

FIREFIGHTERS' PENSION FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FIREFIGHTERS' PENSION FUND STATEMENT OF NET POSITION DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2012

2013 ASSETS Cash Accrued interest receivable Investments, at fair value Prepaid items

2,420,603 241,385 117,864,786 5,192

26,328,501 166,826 76,952,409 5,142

120,531,966

103.452,878

Accounts payable Due to other funds

27,275 9,229

27,193

Total liabilities

36,504

27,193

$ 120,495,462

$ 103,425,685

Total assets

LIABILITIES

NET POSITION Held in trust for pension benefits and other purposes

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGE IN NET POSITION YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2013 Additions: Contributions: Employer Employer - from issuance of debt certificates Plan members Other

Total contributions

2012

1,200,751 100

3,700,127 25,375,586 1,118,794 549

3,920.399

30.195,056

2,719,548

15,543,818 (175,665)

7,3l3,116 045,938)

Net investment income

15.368,153

7,167,178

Total additions

19,288,552

37,362.234

2,100,363 118.412

1,987,185 128,370

2,218,775

2,115.555

17,069,777

35,246,679

103.425,685

68.179,006

$ 120a495,462

~ 103 1425,685

Investment income Less investment expense

Deductions: Benefits Administrative expenses Total deductions Change in net position Net position at beginning of year Net position at end of year

RETIREE REALm INSURANCE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RETIREE HEALTH INSURANCE FUND STATEMENT OF NET POSITION DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2012

2013 ASSETS Cash Due from other funds Investments, at fair value Total assets

252,190 1,235,000 7.234,078

320,562 309,245 6,635.396

8,721,268

7,265.203

8,721,268

7,265,203

NET POSITION Held in trust for health benefits and other purposes

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RETIREE HEALTH INSURANCE FUND STATEMENT OF CHANGE IN NET POSITION YEAR ENDED DECEMBER 31,2013 WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2012

2013 Additions: Contributions: Employer

Investment income Less investment expense

1.235,000

1.358,747

598,889 (41.029)

382,252 (33,031)

557,860

349.221

1,792,860

1,707,968

336,795

216,806

Change in net position

1,456,065

1,491,162

Net position at beginning of year

7.265,203

5,774,041

Net investment income Total additions Deductions: Benefits

Net position at end of year

8;721,268

7,265,203

STATISTICAL SECTION

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATISTICAL SECTION DECEMBER 31,2013

This part of the District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. The section is divided into five sections as follows: Financial Trends - These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Page 65-66 Net Position by Component 67-68 Changes in Net Position 69-70 Fund Balances of Governmental Funds 71-72 Changes in Fund Balances of Governmental Funds Revenue Capacity - These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Page 73-74 Schedule of Assessed Value and Estimated Actual Value of Taxable Property Schedule of Assessed Valuations, Tax Rates, Extensions and Collections 75-76 77 Property Tax Rates - Direct and Overlapping Governments 78-79 Principal Property Taxpayers Debt Capacity - These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Page 80-81 Outstanding Debt by Type 82 Ratios of General Obligation Debt Outstanding 83 Direct and Overlapping General Obligation Debt 84-85 Legal Debt Margin Information Demographic and Economic Information - These schedules contain demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Page 86-87 Demographic and Economic Statistics 88-89 Principal Employers Operating Information - These schedules contain service data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Page Full-time Equivalent District Employees by Type 90 91 Operating Indicators by Function

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS

2013

2012

2010

2011

Governmental activities: Net investment in capital assets

13,719,919

12,577,376

12,313,750

7,904,930

Restricted

],996,258

2,118,736

2,252,121

3,125,891

Unrestricted

9,357.299

9,980,960

9,967.417

13,116,667

Total governmental activities net position

25,073,476

24,677,072

24,533,288

24,147,488

2009

10,455,243

2008

9,286,733

2007

7,857,463

2006

7,425,514

2005

5,839,986

3,547,361

3,310,447

1,892,942

2,668,092

1,808,166

10,448,361

10,227,394

11,046,809

7,296,947

4,999,878

24,450,965

22,824,574

20,797,214

17,390,553

12,648,030

2004

3,634,277 4,221,795

7,856,072

2009

11,504,l36 11,292,593 3,289,608 323,l36

2008

12,531,991 8,044,039 3,722,174 321,042

2007

lO,943,319 8,392,569 2,204,848 283,397

2005

2006

10,448,488 8,093,054 1,025,839 127,377

8,500,232 6,666,092 2,215,526 249.521

2004

8,007,895 6,274,361 3,563,405 348,888

26,409,473

24,619,246

21,824,l33

19,694,758

17,631,371

18,194,549

305,400 2,068,109 126,329 99,410

291,748 1,266,483 99,849 74,845

330,016 646,265 71,919 74,850

355,763 681,971

324,732 614,033

297,332 565,301

路59,619

371,081

112,117

2,599248

1,732,925

1.123,050

1,097,353

1,309,846

974,750

(23,810225)

(22,886,321 )

(20,701,083)

08.597.405)

06,321,525)

07219,799)

25,099,514 45,287 72,820

24,404,824 53,682 378,l31

23,057,944 54,494 893,718

218,995

77,044

lO1,588

22,544,357 46,078 558,557 88,373 102.563

20,664,254 42,928 223,223 85,972 97,106

18,614,821 31,229 74,497 83,520 63,957

25.436,616

24,9l3,681

24,lO7,744

23,339,928

21.1l3.483

18,868,024

1,626,391

2,027,360

3,4061661

4 1742,523

4,791,958

11648,225

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS

2013 General Fund: Reserved Unreserved Nonspendable Restricted Assigned Unassigned Total General Fund

All other governmental funds: Reserved Unreserved Restricted Assigned Total all other governmental funds

Note:

2012 $

157,416 1,681,296 1,197,863 5,792,567

8,829,142

9,305,067

$ 22,420 7,398.484 7,420,904

458,540 2,082,129 837,788 6,305,163 $

9,683,620

8al0l;238

341,371 1,798,986 538,714 6,332,368

6,717,040

9,011.439

8,101.238

$ 5,315 1,810,994 684,302 6,804.456

2010

2011

6 1717;040

10,389,995

The District began to classify fund balances in accordance with the requirements of GASB 54 with the year ended December 31,2010.

2009

2008

2007

2006

2005

2004

2,158,895 8,138,241

2,009,745 7,746,835

1,402,139 9,230,029

559,903 7,129,834

417,103 5,559,846

221,583 3,633,461

lO.297,136

9,756,580

10,632,168

7,689,737

5,976,949

3,855,044

1,220,121 9,509,945

2,720,495 9,732,715

2,054,995 10,697,837

1,272,320 2,846,283

1,286,405 2,060,178

1,241,220 1,625,441

10,730,066

12.453,210

12,752,832

4,118,603

3.346.583

2,866,661

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS

2013 Revenues: Property taxes Charges for service Grant proceeds Investment income Personal property replacement taxes Intergovernmental Other

26,170,143 3,318,231 84,944 42,090 53,633

2012 $

26,611,660 2,801,351 164,190 47,768 36,696

2011 $

25,919,259 2,559,540 79,036 47,636 49,442

2010 $

24,473,283 2,459,966 169,462 61,362 48,831

185,746

551,891

530,155

753,952

29,854,787

30,213,556

29,185,068

27,966,856

15,830,084 435,550 97,058 4,175,191 2,719,548

16,880,527 448,110 76,483 3,889,503 29,075,713

15,683,055 422,376 59,741 3,335,869 3,763,590

14,382,321 385,472 75,123 4,568,289 3,030,592

99,074 627,651 6,236 138,365 890,085 49,400 142,410

85,622 663,404 10,830 224,558 433,251 50,684 137,943

148,303 479,043 8,834 157,547 456,367 64,144 123,953

129,751 448,580 31,880 113,170 875,240 62,008 123,402

116,816 1,128,657 724,519 279,739

95,871 1,181,120 669,776 222,812

88,753 977,041 478,999 304,954

92,959 1,377,183 367,445 276,883

1,325,000 1,188,476

1,858,330 258,440

850,554 298,333

1,037,187

860,000 198,850 452,153 265,701

3,516,503

2,103,439

31,011,046

55,922,911

32,185,842

29,592,624

Excess (deficiency) of revenues over (under) expenditures

(1,156,259)

(25,709,355)

(3,000,774)

(1,625,768)

Other financing sources (uses): Proceeds from debt issuance Transfers in Transfers out

2,071,600 (2,071,600)

26,715,000 2,812,425 (2,812,425)

130,000 . (130,000)

2,575,975 (2,575,975)

Total revenues Expenditures: Current: Personnel: Compensation and salaries Payroll taxes Education and seminars Health and life insurance Pension contribution Commodities: Training and education Heat, light, and power Operational supplies Postage and printing Protective clothing Repairs and maintenance Telephone Vehicle maintenance Contractual: Billing services Insurance Professional services Other Debt service: Principal Interest Bond / debt certificate issuance costs and fees Capital outlay Total expenditures

Total other financing sources (uses) Net change in fund balances Debt service as a percentage of non-capital expenditures

26,715,000

(1,156259) $

= 8.38 %

1,005,645

2.71 %

0,000,774) $

6.95 %

(1,625,768)

4.13 %

2009

25,099,514 2,499,838 99,410 72,820 45,287

2008

2007

28,579,791

26,999,820

25,568,978

24,760,094

22,707,547

20,087,779

13,954,484 380,756 91,441 4,640,198 2,541,961

12,358,943 326,633 79,852 5,425,750 3,073,319

11,627,351 272,820 69,052 2,774,237 2,270,452

11,059,533 304,682 54,061 2,680,381 2,987,966

9,691,026 221,494 40,148 2,490,264 1,718,657

9,184,223 227,364 28,975 2,128,332 1,747,270

120,917 562,270 39,036 142,649 505,452 57,032 74,812

7,494 135,884 533,132 7,629 116,994 707,277 67,377 124,986

4,315 123,919 541,934 10,175 135,604 851,299 84,367 110,535

2,777 105,693 693,576 18,336 132,118 306,918 66,883 89,188

2,978 85,674 281,511 6,758 77,538 327,181 50,449 66,893

4,484 95,785 300,775 9,154 109,184 368,739 62,520 49,268

103,297 1,060,402 321,747 291,004

40,882 1,091,137 415,159 223,843

31,303 1,108,913 440,070 305,939

31,554 1,087,870 297,411 289,000

32,526 958,638 217,538 137,633

29,990 751,095 159,558 188,731

799,116 310,844

590,000 273,108 79,725 377,477

1,540,000 136,537

2,500,000 260,297

2,105,274 345,671

4,670,961

660,000 321,726 50 2,456,963

390,802

938,517

1,653,428

30,668379

28,175,030

22,082595

22,275,286

20,105,720

19549,820

(2,088588)

(1,175,210)

3,486383

2,484,808

2,601,827

537,959

906,000 1,855,000. (1,855,000)

1,320,000 (1,320,000)

8,090,277 5,174 (5,174)

1,156,947 (1,156,947)

4.46 %

22,544,357 1,115,542 59,619 558,557 46,078 6,230 429,711

20,664,255 1,006,068 371,081 223,227 42,928 8,875 391,113

2004

762,922

( 1,182588) $

2005

24,404,824 1,658,080 74,845 378,131 53,682 965 429,293

(1,175,210) $

3.97 %

11,576,660

4.54 %

18,614,521 924,214 63,170 31,229 7,770 446,875

1,187,642 264,000 (264,000)

136,000 (136,000)

8,090,277

906,000 $

23,057,945 1,048,200 74,850 893,718 54,494 15,977 423,794

2006

1,187,642 $

2,484,808

8.30 %

2,601,827

16.82 %

1,725,601

15.87 %

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS SCHEDULE OF ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN LEVY YEARS

Levy Year

Residential Property

Commercial Property

Assessed Value Industrial Property

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

$ 1,624,500,909 1,761,730,402 2,061,365,996 2,060,640,966 1,886,724,268 1,708,768,401 1,599,048,504 1,546,073,930 1,296,116,607 1,227,704,543

$ 631,662,905 685,022,544 801,531,367 801,249,450 869,929,570 709,458,743 639,536,175 627,882,083 524,980,250 491,517,971

$ 121,650,047 131,926,418 154,364,500 154,310,206 183,446,572 166,868,345 162,636,923 161,002,677 147,670,792 141,251,879

Source: Office of the Cook County Assessor

Farm Property $

369,854 401,097 469,316 469,151 787,568 737,880 741,526 837,103 931,699 1,027,623

Railroad Property $

408,498 443,006 518,352 518,170 407,715 354,862 300,730 237,360 213,577 201,250

Total Assessed Value $ 2,378,592,213 2,579,523,467 3,018,249,531 3,017,187,943 2,941,295,693 2,586,188,231 2,402,263,858 2,336,033,153 1,969,912,925 1,861,703,266

Estimated Actual Value

Total Direct Rate

$ 9,561,940,696 10,369,684,337 12,133,363,115 12,129,095,531 11,824,008,686 10,396,476,689 9,657,100,709 9,390,853,275 7,919,049,958 7,484,047,129

$1.1263 1.0497 0.8782 0.8361 0.8507 0.9502 0.9741 0.9715 1.0622 1.0189

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS SCHEDULE OF ASSESSED VALUATIONS, TAX RATES, EXTENSIONS AND COLLECTIONS DECEMBER 31, 2013

Assessed valuation (1)

2012

2011

2010

2009

$ 2,378,592,213

$ 2,579,523,467

$ 3,0.18,249,531

$ 3,0.17,187,943

0..50.0.0. 0..30.0.0. 0..0.879 0..0.0.0.0. 0..1635 0..0.0.87 0..0.149 0..0.0.13 0..0.50.0.

0..4980. 0..2710. 0..0.666 0..0.0.0.0. 0..1361 0..0.129 0..0.139 0..0.0.12 0..0.50.0.

0..4192 0..2190. 0..0.653 0..0.0.0.0. 0..1131 0..0.0.70. 0..0.110. 0..0.0.0.7 0..0.429

0.,3981 0..2294 0..0.572 0..0.0.0.0. 0..0.948 0.0.0.70. 0..0.098 0..0.0.0.7 0..0.391

1.1263

1.0.497

0..8782

0..8361

Tax rates: Corporate Ambulance Tort liability Debt service Firefighters' pension Illinois Municipal Retirement Social Security Audit Fire and rescue Total Tax extensions: Corporate Ambulance Tort liability Debt service Firefighters' pension Illinois Municipal Retirement Social Security Audit Fire and rescue Total Collections: Current Subsequent Total Percent collected: Current Subsequent Total

11,892,961 7,135,777 2,0.89,876 0. 3,889,256 20.6,0.0.0. 355,350. 29,870. 1.189,296

12,845,375 6,990.,274 1,717,675 0. 3,512,470. 333,755 358,921 30.,591 1.289,762

12,652,50.2 6,60.9,966 1,970.,916 0. 3,413,153 211,277 332,0.0.7 21,127 1,294,829

12,0.11,425 6,921,429 1,725,831 0. 2,860.,294 211,20.3 295,684 21,120. 1.179,720.

26,788,386

27,0.78,823

26,50.5,777

25,226,70.6

25,898,953 0.

26,193,587 20.1.981

25,578,918 420.,90.4

24,235,274 339,0.50.

25,898,953

26.395,568

25,999,822

24,574,324

96.68 % 0..0.0.

96.73 % 0..75

96.50. % 1.59

96.0.7 % 1.34

96.68 %

97.48 %

98.0.9 %

97.41 %

(1) Assessed valuation is as of the year preceding the fiscal year in which the taxes are levied. (2) 20.12 is the most current information available.

Data Source Office of the Cook County Clerk

2008

2007

2006

2005

2004

2003

$ 2,941.295,693

$ 2,586.188.231

$ 2.402,263,858

$ 2,336,033,153

$ 1.969,912,925

$ 1.861.703,266

0.4180 0.2370 0.0632 0.0000 0.0761 0.0067 0.0093 0.0007 0.0397

0.4288 0.2554 0.0791 0.0326 0.0973 0.0048 0.0108 0.0008 0.0406

0.4436 0.2661 0.0803 0.0302 0.0950 0.0058 0.0098 0.0010 0.0423

0.4136 0.2482 0.0810 0.0673 0.1049 0.0052 0.0094 0.0010 0.0409

0.4693 0.2783 0.0873 0.0771 0.0867 0.0057 0.0103 0.0010 0.0465

0.4537 0.2513 0.0817 0.0693 0.0982 0.0054 0.0103 0.0011 0.0479

0.8507

0.9502

0.9741

0.9715

1.0622

1.0189

12,294,615 6,970,870 1,858,898 0 2,238,326 197,066 273,540 20,589 1.167,694

11,089,575 6,605,124 2,045,674 843,911 2,515,888 124,137 279,308 20,689 1.049.992

10,656,442 6,392,424 1,929,018 725,484 2,282,151 139,331 235,422 24,023 1.016,158

9,661,833 5,798,034 1,892,187 1,572,150 2,450,499 121,474 219,587 23,360 955.438

9,244,801 5,482,267 1,719,733 1,518,510 1,707,914 112,285 202,901 19,699 916,009

8,446,547 4,678,460 1,521,011 1,290,923 1,828,192 100,531 191,755 20,478 891.755

25,021.598

24.574,298

23.400.453

22,694.562

20,924,119

18,969,652

23,927,913 791.691

23,606,984 609.110

22,523,791 795,986

21,934,801 548,398

20,704,165 530,876

18,149,651 503,639

24,719,604

24,216,094

23.319,777

22.483,199

21,235,041

18,653,290

95.63 % 3.16

96.06 % 2.48

96.25 % 3.40

96.65 % 2.42

98.95 % 2.54

95.68 % 2.65

98.79 %

98.54 %

99.65 %

99.07 %

101.49 %

98.33 %

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST SIX YEARS

Levy year

2012

2011

2010

2009

2008

2007

Overlapping governments: Cook County Cook County Forest Preserve District Consolidated Elections Bremen Township Bremen General Assistance Bremen Road and Bridge Orland Township Orland General Assistance Orland Road and Bridge South Cook Mosquito Abatement District Metropolitan Water Reclamation District Village of Orland Hills Village of Orland Hills SSA #1 Village of Orland Park Village of Orland Park Library Fund Acorn Public Library District Orland Hills Public Library District Mokena Community Park Bond 2005 Tinley Park Park District School District 135 School District 140 School District 146 Consolidated High School 230 Moraine Valley Comm. College 524

0.531 0.063 0.000 0.070 0.014 0.045 0.066 0.007 0.037 0.014 0.370 0.369 0.235 0.638 0.279 0.192 0.149 0.049 0.455 3.212 4.399 5.041 2.438 0.346

0.462 0.058 0.025 0.061 0.012 0.039 0.061 0.007 0.034 0.012 0.320 0.331 0.237 0.589 0.255 0.168 0.133 0.046 0.411 2.874 3.910 4.558 2.180 0.311

0.423 0.051 0.000 0.051 0.009 0.032 0.052 0.006 0.029 0.010 0.274 0.279 0.250 0.498 0.212 0.000 0.110 0.056 0.359 2.467 3.710 3.742 1.812 0.256

0.394 0.049 0.021 0.049 0.008 0.031 0.052 0.006 0.029 0.009 0.261 0.269 0.250 0.046 0.203 0.000 0.106 0.055 0.353 2.377 3.564 3.650 1.764 0.247

0.415 0.051 0.000 0.049 0.008 0.031 0.054 0.000 0.030 0.009 0.252 0.769 0.250 0.479 0.205 0.000 0.109 0.055 0.351 2.410 3.654 3.741 1.801 0.247

0.446 0.053 0.012 0.051 0.008 0.033 0.057 0.006 0.034 0.006 0.263 0.279 0.250 0.443 0.230 0.000 0.109 0.059 0.376 2.604 3.649 3.747 1.926 0.262

Total overlapping governments

19.019

17.094

14.688

13.793

14.970

14.903

1.126

1.050

0.879

0.837

0.851

0.951

20.145

18.144

15.567

14.630

15.821

15.854

Orland Fire Protection District Totals

Overlapping rates prior to 2007 are not currently available. Source of information - Cook County Clerk's Office

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS PRINCIPAL PROPERTY TAXPAYERS* DECEMBER 31, 2013

Taxpayer

Type of Business

Simon Property Group IRC J.C. Penney Co., Inc. Inland Orland Park LLC & PL Constance Oswald St. George Corp Sears MCRILLLC B & G Realty Legal Dept Cambridge Realty Captl HSA-Orland I LLC Andrew Corp

Orland Square Mall (includes smaller stores) Shopping centers and one-story store Department store Shopping center and one-story store Commercial buildings, 2 or more stories Commercial buildings over three stories Department store Shopping center One story public garage/cinema Special commercial improvements Shopping Center Microwave and earth station antennas, coaxial cable, and pressure equipment Department store Home improvement store Health care facility

Dayton Hudson Home Depot Palos Primary Care Center Total

*The figures above are totals of parcels with equalized assessed valuation of $193,000 and over as recorded in the County Assessor's office. They were compiled from a meticulous page by page search of such records. It is possible, however, that certain parcels have been overlooked.

Source: Office of the Cook County Clerk

2012 Taxable Assessed Value

Rank

$ 113,741,630 37,051,702 11,724,327 11,022,066 10,843,111 10,681,062 9,390,599 9,098,418 8,215,010 7,671,369

1 2 3 4 5 6 7 8 9 10

~ 229a439,294

2003 Percentage of Total District Taxable Assessed Value 4.78 % 1.56 0.49 0.46 0.46 0.45 0.39 0.38 0.35 0.32

9.64 %

Taxable Assessed Value $

Rank

Percentage of Total District Taxable Assessed Value

57,052,060 19,827,381 11,116,682

1 3 4

3.53 % 1.23 0.69

8,808,776 8,818,717

8 7

0.54 0.55

20,763,335

1.28

10,802,530 10,796,765 6,702,954 6,298,192

5 6 9 10

0.67 0.67 0.41 0.39

160,987!392

9.96 %

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS

Fiscal Year

2013

General Obligation Debt Certificates

General Obligation Bonds $

3,289,091

26,000,737

Refunding Notes $

Fire Protection Notes

Notes Payable $

2012

4,202,949

2011

5,071,807

2010

5,805,665

787,330

346,000

2009

6,479,693

865,884

453,000

2008

7,118,721

582,000

2007

7,637,757

732,000

26,405,249

2006

877,000

2005

1,400,000

2004

2,660,000

1,017,000 694,000

411,000

1,152,000

Note: Details regarding the District's outstanding debt can be found in the notes to basic fmancial statements.

Total Primary Government $

Percentage of Personal Income

Per Capita

29,289,828

1.28 %

30,608,198

1.34

408

5,071,807

0.22

6,938,995

0.30

7,798,577

0.34

104

7,700,721

0.34

103

8,369,757

0.37

112

877,000

0.04

2,417,000

0.11

4,917,000

0.22

391

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RATIOS OF GENERAL OBLIGATION DEBT OUTSTANDING LAST TEN FISCAL YEARS

General Obligation Debt

Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

29,289,828 30,608,198 5,071,807 5,805,665 6,479,693 7,118,721 7,637,757 1,400,000 2,660,000

Less Amount Available in Debt Service Fund $

Total

822,203 816,352 789,461 752,868 706,531 1,051,356 979,902

29,289,828 30,608,198 5,071,807 4,983,462 5,663,341 6,329,260 6,884,889 348,644 1,680,098

Percentage of Estimated Actual Taxable Value of Property (ll 0.32 % 0.30 0.04 0.04 0.05 0.06 0.07

0.02

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

(1) See the Schedule of Assessed Valuations, Tax Rates, Extensions and Collections for property value data.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT DECEMBER 31, 2013

2012 Equalized Assessed Valuation Overlapping agencies: Cook County Cook County Forest Preserve Metropolitan Water Reclamation District Municipalities: Village of Homer Glen Village of Orland Park and Library Library Districts: Acorn Public Library District

Outstanding Debt

135,877,043,126 135,877,043,126 133,111,067,733

888,132,241 2,183,112,161

Annlicable to District Percent Amount

3,578,905,000 124,455,000 (3)

1.750 % $ 1.750

62,630,838 2,177,963

2,481,971,593 (1)

1.787

44,352,832

0.017 96.288

2,435 98,492,995

14,325,000 102,290,000 (3)

537,040,459

Park Districts: Mokena Comm Park Bond District 2005 Tinley Park Park District

1,032,218,460 1,347,778,696

1,100,000 12,707,000

Schools: School District #135 School District #146 High School District #230 Community College #524

2,064,808,688 647,044,952 4,694,524,554 9,870,791,002

8,915,000 (4) 23,190,000 48,190,000 74,400,000 (2)

0.006

9.323 4.771

102,553 606,251

99.743 25.626 50.656 24.092

8,892,088 5,942,669 24,411,126 17,924.448

Total overlapping general obligation debt Direct debt: Orland Fire Protection District

265,536,198

2,378,592,213

29,289,828

100.000

Total direct and overlapping general obligation debt

29,289,828

~ 294,826,026

(1) Includes IEPA Revolving Loan Fund Bonds. (2) Includes original principal amounts of outstanding General Obligation Capital Appreciation Bonds. (3) Excludes outstanding principal amounts of General Obligation Alternate Revenue Source Bonds which are expected to be paid from sources other than general taxation. (4) Excludes outstanding debt certificates.

Source - Office of the Cook County Clerk, Cook County Department of Revenue, and Treasurer of the Metropolitan Water Reclamation District of Greater Chicago.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS

Legal Debt Margin Calculation for December 31, 2013

Assessed value

$ 2,378,592,213

Debt limit (5.75% of assessed value) Additional debt limit authorized

136,769,052

Total statutory debt limit

136,769,052

Debt applicable to limit

29,555,000 $

Legal debt margin

Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit

107.214,052

2013

2012

2011

2010

$ 136,769,052

$ 148,322,599

$ 173,549,348

$ 173,488,307

29,555,000

30,880,000

5,025,000

6,883.330

$ 107,214,052

$ 117,442,599

$ 168,524.348

$ 166,604,977

21.6094 %

20.8195 %

2.8954 %

3.9676 %

2009

2008

2007

2006

2005

2004

$ 169,124,502

$ 148,705,823

$ 138,130,172

$ 134,321,906

$ 113,269,993

$ 107,047,938

7,733,884

7,627,000

8,287,000

877,000

2.417,000

4,917,000

$ 161.390,618

$ 141.078,823

$ 129,843,172

$ 133.444,906

$ 110,852,993

$ 102,130,938

4.5729 %

5.1289 %

5.9994 %

0.6529 %

2.1338 %

4.5933 %

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEMOGRAPmC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS

Personal Fiscal

Population

Income

Per Capita

Unemployment

Median

Year

(1)

(in thousands)

Income (1)

Rate

Age (1)

6.70 %

36.6

2013

75,000

$2,728,050

$ 36,374

2012

75,000

2,728,050

36,374

7.30

36.6

2011

75,000

2,728,050

36,374

8.20

36.6

2010

75,000

2,728,050

36,374

8.80

36.6

2009

75,000

2,285,025

30,467

10.60

41.4

2008

75,000

2,285,025

30,467

7.10

41.4

2007

75,000

2,285,025

30,467

3.00

41.4

2006

75,000

2,285,025

30,467

5.10

41.4

2005

75,000

2,285,025

30,467

5.10

41.4

2004

75,000

2,285,025

30,467

5.20

41.4

Data Sources: (1) Derived from the U.S. Census Bureau (most recent data). (2) Derived from Illinois State Board of Education School Report Cards. N/A - Information not available.

Education Level in Years of

School

Formal

Enrollment

Schooling (1)

(2)

8,602

8,793

8,956

9,100

9,327

9,500

9,504

N/A

9,410

9,338

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS PRINCIPAL EMPLOYERS DECEMBER 31,2013

Taxpayer High School District 230 School District 135 Village of Orland Park JewellOsco Food Store Carson Pirie Scott J.C. Penney Sears Panduit Corporation Macy'slMarshall Fields Target Andrew Corp. Alliance Shippers, Inc.

Type of Business High School (9-12) Elementary school (K-8) Municipality Supermarket and drug store Retail department store Retail department store Retail department store Communications and telecommunications products Retail department store Discount store Communication systems and equipment Train and truck shipping agency

Note: Percentage of total District employment is based on 2010 and 2000 census. Note: 2012 is the most current information available. Source: Phone survey

2012 Approximate Number Employed

920 737 631 530 335 325 325 300 200 200

2003

Rank

Percentage of Total District Employment

Approximate Number Employed

Rank

Percentage of Total District Employment

1 2 3 4 5 6 7 8 9 10

3.32 2.66 2.28 1.91 1.21 1.17 1.17 1.08 0.72 0.72

690 649 375 325 395 325 385 325

2 3 7 8 5 10 6 9

2.73 2.52 1.49 1.29 1.57 1.29 1.53 1.29

4,700 400

1 4

18.62 1.59

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE LAST SIX YEARS

2013 Sworn Personnel - Full-time: Chief Officers Program Supervisor Lieutenants LieutenantslParamedics LieutenantslEMT-Bs Program Supervisor Engineers EngineerslParamedics FirefighterslParamedics FirefighterslEMT-Bs Total Full-Time Sworn Personnel Sworn Personnel - Fill-in: Sworn Personnel- Fill-In Total Sworn Personnel Support Services and Overtime: Administration Fire Prevention and Public Education Communications Training and safety EMS Specialty Teams Maintenance Total Support Services and Overtime Total

2012

2011

6 3 26 4

7 3 27 4

30 44 3

30 38 2

116

2010

2009

2008

30 38 2

7 3 25 5 1 30 41 2

25 5 1 30 42 2

9 3 26 4 1 30 42 2

109

111

114

115

117

121

124

125

124

125

123

8 3 15 2 1 2 4

8 5 15 2 1 1 4

7 5 15 1 1 1 4

10 6 15 1 1 1 4

11 6 16 1 1 1 3

8 6 17 1 1 1 3

156

160

159

162

164

160

Source: District records Detail of personnel by employment type is not available prior to 2008.

7 ..,

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS OPERATING INDICATORS BY FUNCTION LAST SIX YEARS

2013 Activity: Ambulance ALS Ambulance BLS Line trouble Other Fire alarm Mutual aid Vehicle accident Citizens assist Fire Service Total call volume

2012

2011

2010

2009

2008

2,760 2,096 731 637 536 535 450 365 268 121

2,804 2,063 616 589 555 530 383 411 294 148

2,490 2,018 634 685 565 612 434 275 253 149

2,417 1,864 706 540 532 596 442 475 258 206

2,357 1,847 745 473 614 524 399 513 218 277

2,177 1,869 707 964 771 247 461 566 253 267

8,499

8,393

81115

8,036

7a967

81282

Source: District records Operating indicators by function are not available prior to 2008.