Page 1

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, 2017

Submitted by: Kerry Sullivan Finance Director


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2017

CONTENTS

INTRODUCTORY SECTION Letter of Transmittal

i-v

GFOA Certificate of Achievement

vi

Organizational Chart

vii

Names and Titles of Principal Officials

viii

FINANCIAL SECTION Independent Auditor's Report Management's Discussion and Analysis

ix - xi xii - xxii

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

2

Fund Financial Statements: Balance Sheet - Governmental Funds

3

Reconciliation of Fund Balances of Governmental Funds to Net Position (Deficit) of Governmental Activities

4

Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds

5

Reconciliation of the Change in Fund Balances of Governmental Funds to the Change in Net Position (Deficit) of Governmental Activities

6

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

7 - 10


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2017

CONTENTS

Statement of Net Position - Fiduciary Funds

11

Statement of Changes in Net Position - Fiduciary Funds

12

Notes to Basic Financial Statements

13 - 45

Required Supplementary Information: Employee Retirement and Post-Employment Benefit Plan Information: Firefighters' Pension Plan

46 - 49

Illinois Municipal Retirement Fund

50- 54

Retiree Health Insurance Plan

55

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

56

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

57

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

58

59- 60

Tort Liability Fund: Balance Sheet

61

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

62


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2017

CONTENTS

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

63 64 - 65

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

66 67 - 68

Capital Projects Fund: Balance Sheet

69

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

70

Nonmajor Governmental Fund: Debt Service Fund: Balance Sheet

71

Schedule of Expenditures and Changes in Fund Balances - Budget and Actual

72

Fiduciary Funds: Combining Schedule of Net Position - Fiduciary Funds

73

Combining Schedule of Changes in Net Position - Fiduciary Funds

74

Firefighters' Pension Fund: Statement of Net Position

75

Statement of Changes in Net Position

76


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2017

CONTENTS

Retiree Health Insurance Fund: Statement of Net Position

77

Statement of Changes in Net Position

78

STATISTICAL SECTION Net Position by Component

79 - 80

Changes in Net Position

81 - 82

Fund Balances of Governmental Funds

83 - 84

Changes in Fund Balances of Governmental Funds

85 - 86

Schedule of Assessed Value and Estimated Actual Value of Taxable Property

87 - 88

Schedule of Assessed Valuations, Tax Rates, Extensions and Collections

89 - 90

Property Tax Rates - Direct and Overlapping Governments

91 - 92

Principal Property Taxpayers

93 - 94

Outstanding Debt by Type

95 - 96

Ratios of General Obligation Debt Outstanding

97

Direct and Overlapping Governmental Activities Debt

98

Legal Debt Margin Information

99 - 100

Demographic and Economic Statistics

101 - 102

Principal Employers

103 - 104

Full-time Equivalent District Employees by Type

105 - 106

Operating Indicators by Function

107 - 108


INTRODUCTORY SECTION


ORLAND FIRE PROTECTION DISTRICT Administration Center 9790 West 15lst Street • Orland Park, IL 60462 708/349-007 4 • Fax 708/349-0354 ISO Class 1

www.orlandfire.org

Board of 'lrustees: l'l'l'.1id1·111 (.'frii.1loj>ltn /:'1•11_1 .'i1'111'/11r1 (;1t1iJ,[S1h1uidl

'frrns11m}ay11t' Srhir111nd11•r /i 11~/1•1-.fu/111 llrud11ah l'rr.1. I'm 'fr111 'fr111·/r•.fm1w5 //1du-:i

Fire Chief ,\Jir'harl Srliujidil

June 20, 2018 Board of Trustees Orland Fire Protection District We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the Orland Fire Protection District (the District) for the year ended December 31, 2017. The CAFR includes a complete set of financial statements presented in conformance with United States generally accepted accounting principles. The financial statements were audited by Mueller & Company, LLP, 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 are safeguarded against loss from unauthorized use or disposition and that account transactions are 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 objective of the internal control framework is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. 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, 2017, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the District's financial statements for the year ended December 31, 2017 are fairly presented in conformity with generally accepted accounting principles. The independent auditor's report is presented as the first component of the financial section of this report.


The District had to implement Governmental Accounting Standards Board Statement 68, Accounting and Financial Reporting for Pensions in 2015. The entity-wide statements reflected, for the first time, the total actuarial pension obligation of the District. The implementation of Statement 68 had a significant impact on the financial statements. It is very important to note that the District's ending fund balance (excluding the Pension Fund and the Retiree Health Trust Fund) as of December 31, 2017 was $16,553,843, the Firefighter's Pension Fund had year-end net position of $159,046,149 and the District has set aside $7,988,176 to fund future retiree health costs. 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 of the 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.

11


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. The District has followed a consistent policy of maintaining strong fund balances in all funds as well as funding retirement and postretirement benefit obligations well in excess of the annual minimum required amounts. The result of these actions has allowed the District to Jessen the future burden of these obligations as well as continue to provide a high level of service. 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 31st 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 31st of each year. The budget is prepared by fund, and includes program budgets with supplemental detail of each line item. 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 7-10 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 on pages 70 and 72.

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. The District covers approximately 30 square miles and has a population of approximately 70,300. The number of households within the District is approximately 17,700. 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 Metra's commuter rail system. The District has a diverse composition and economic base. Approximately 68% of the District's equalized assessed valuation (EAV) is related to residential development, 31 % is related to commercial development and 1% is related to industrial development. The 2016 tax year EAV was $2,235,879,473. In the 2015 tax year, the District's EAV was $2,129,625,597. This 5.0% 111


increase is due to the equalization factor issued by the Illinois Department of Revenue being increased by 5.0%. Major employers within the District include Orland School District #135 , Jewel/Osco Food Store, Darvin Furniture, Lexington Health Care, Lowe's Home Improvement, Carson Pirie Scott, and Panduit Corporation. The 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 2017 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 2017, District firefighters and paramedics responded to 9,843 calls, a 1.2% decrease from 2016. While call volume decreased slightly in 2017, it is important to note that call volume in 2017 was 6.3% higher than 2015. Approximately 62.7% of the 2017 calls were for emergency medical services. The number of emergency medical service calls increased by 127 calls or 2.1 %. Call volume to local assisted living facilities, nursing homes and rental units continued to increase in 201 7. This trend is expected to continue. District staff, under the direction of the Board of Trustees and the Fire Chief, have been involved in a variety of projects during 2017. A number of significant projects are summarized below. •

Six Firefighters/Paramedics were hired to replace retired firefighter/paramedics.

A re-chassied ambulance was placed in service.

Numerous grants were received, including - Cook County Department of Homeland Security and Emergency Management to train emergency responders. - FEMA, Assistance to Firefighter Grant and Firehouse Subs Grant, to replace firefighters' two-way radios with advanced technology radios. - Illinois American Water to fund a training mannequin for EMS.

A Community Emergency Response Team was developed.

Ordered a new aerial ladder truck.

Major Initiatives for the Future Major initiatives for 2018 include maintaining adequate firefighter staffing levels to meet response benchmarks, continued focus on training and safety and operational efficiencies.

iv


Capital plans for apparatus, building improvements, information technology and communications are being reviewed. As of December 31, 2017, the labor agreement with Orland Professional Firefighters, Local 2754 expired and was being negotiated. A new labor agreement was approved in May, 2018. Acknowledgements and Awards

During 2017, the District's rating from the Insurance Service Office (ISO) increased to a Class 1 rating, the highest rating possible. Of the 46,042 fire departments nationwide, only 242 earned an ISO Class l rating. In IIJinois, of the 2,162 fire departments, only 12 have earned an ISO Class 1 rating. This acknowledgement of the District's accomplishments ranks the District within the top of all related fire departments in the nation. Over the past several years, Emergency Medical Services has improved and enhanced training, programs and models of care, especially focused on cardiac arrest treatment. The District's paramedics use a high perfonnance CPR model in treating patients and community CPR training has been expanded. In 2017, the save rate for surviving cardiac arrest for District patients was 65%, compared to a national save rat~ of 29%. 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 eight 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 Mueller & Company, LLP, 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,

v


Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting Presented to

Orland Fire Protection District Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended

December 31, 2016

Executive Director/CEO

vi


STAKEHOLDERS/TAXPAYERS FINANCE

OPERATIONS

a:

ADMINISTRATIVE

SAFETY

BILLING

HAZMAT

FIRE PREVENTION

FACILITIES

DISPATCH

SHIFT

QI/QA

DIVE

PUBLIC EDUCATION

FLEET

l.T.

EMS EDUCATION

TECH RESCUE

ALARMS

TOOLS/SCBA

RIDERS

CART

PRE PLANS

CADETS ACADEMY

GIS ACCREDITATION

OFFICER PUBLIC INFORMATION ENGINEER SPECIAL OP'S FITNESS

INVESTIGATIONS JV FIRESETTERS

I

SENIOR ADVISORY

I

CERT

THE FRONT LINE 4 ENGINES - 2 TRUCKS - 5+ AMBULANCES I ORLAND F"IRE 1·- - - - - - - - - - - - - - - - - - - - '- PROTECTION DISTRICT


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NAMES AND TITLES OF PRINCIPAL OFFICIALS DECEMBER31, 2017

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

Fire Chief Michael Schofield

Finance Director Kerry Sullivan

Vlll


FINANCIAL SECTION


~ MUEillR & Co, LLP 14300 Ravinia Avenue • Orland Park, Illinois • 60462 Ph: 708.349.6999 • Fax: 708.349.6639 • www.muellercpa.com

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 3 1, 2017, 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, 2017, 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 perfonn 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.

ix

Certified Public Accountants • Business & Financial Advisors Offices in Elgin, Orland Park, Chicago & Burr Ridge


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, 2017, 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. 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 xxii and employee retirement and post-employment benefit plan information on pages 45 through 50 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.

x


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. We also have previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of Orland Fire Protection District, Illinois for the year ended December 31, 2016, which are not presented with the accompanying financial statements and we expressed unmodified opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information as well as the fiduciary fund type. That 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 as a whole. The individual fund financial statements and schedules for the year ended December 31, 2016 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2016 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of those 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 2016 individual fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements from which they have been derived.

Orland Park, Illinois June 20, 2018

xi


MANAGEMENT'S DISCUSSION AND ANALYSIS


MANAGEMENT'S DISCUSSION AND ANALYSIS as of and for the fiscal year ended December 31, 2017

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 3 1, 201 7. Financial Highlights

The liabilities and the deferred inflows of the District exceeded its assets and deferred outflows of resources at the close of the most recent fiscal year by $2,397,210 (net deficit). Of this amount, $16,316,884 is invested in capital assets and $3,662,632 is restricted for various purposes and, therefore, is not available for funding general activities. The District has an unrestricted deficit of$22,376,726 at December 31, 2017. The total net position of the District decreased by $11,033 during fiscal year 2017.

For the fiscal year ended December 31, 2017, total governmental revenues and other financing sources exceeded expenditures and other financing uses by $434,286. Revenue increased by 0.3% over prior year, including a 0.1 % decrease in property taxes, a 3.3% decrease in charges for services, and a 120.3% increase in grant proceeds. The property taxes billed were 1.0% higher than the prior year, but property tax refunds were greater than the prior year. Charges for services decreased 3.3% due to conservative collection estimates for ambulance billing. Grant revenue exceeded the prior year due to grants received from Cook County and FEMA in 2017. Expenditures increased 4.4% over the prior year. In 2017, a $600,000 contribution was made to the Retiree Health Trust Fund, accounting for 1.9% of the increase in expenditures from the prior year.

As of December 31, 2017, the District's governmental funds reported combined ending fund balances of $16,553,843. Approximately 27.1% of this amount ($4,486,916) is available for spending at the District's discretion (unassigned fund balance).

At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned and unassigned components of fund balance) for the General Fund was $5,247,562, or approximately 26.2% of total General Fund expenditures. Unrestricted fund balance for the Ambulance Fund was $6,168,199, or approximately 51.3% of Ambulance Fund expenditures.

At December 31, 2017, the Firefighters Pension Fund had a net position of$159,046,149 with a funding ratio of 99%. Pension benefits paid in 2017 were $4,262,980. IMRF had a funding ratio of99%.

The District's Retiree Health Trust Fund had a net position of $7,988, 176 as of December 31, 2017. Benefits paid from the Retiree Health Trust Fund were $814,386 in 2017.

The District's long-term liabilities at December 31, 2017 totaled $31,982,994. Of the long-term liabilities, 74.6% is related to debt certificates which were issued in 2012 to fund the actuarial unfunded liabilities of the pension funds, 2.8% is related to net pension liabilities, 17.8% is related to post employment benefits and compensated absences, and 4.8% is related to an installment contract and a note payable.

Xll


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 financial 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. 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 financial statements can be found on pages 1 - 2 of this 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 finance-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.

Xlll


The District adopts an annual appropriated budget for its funds. A budgetary comparison statement has been provided for the General and Ambulance Funds to demonstrate compliance with the budget. The basic fund financial statements can be found on pages 3 - 10 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 method used for fiduciary funds is 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 11 - 12 of this report. Notes to Basic 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 13 - 45 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 46 - 55 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 supplementary information on pensions and OPEB. These statements and schedules can be found on pages 56 - 76 of this report.

XlV


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, the liabilities and deferred inflows of the District exceeded its assets and deferred outflows of resources at the close of the most recent fiscal year by $2,397 ,210 (net deficit).

Orland Fire Protection District Statement of Net Position - Governmental Activities as of December 31, 2017 and 2016 2017 Assets: Current and other assets Capital assets Total assets

$

Deferred outflows of resources: Deferred outflows of resources related to pensions

47,207,362 17,032.452 64,239.814

2016

$

45,721,406 17,817.573 63,538.979

6.706,596

8,938.559

Current liabilities Noncurrent liabilities Total liabilities

978,443 31,982,994 32,961.437

1,263,823 39,850,405 41.114,228

Deferred inflows of resources: Property taxes levied for future periods Deferred inflows of resources related to pensions Total deferred inflows of resources

28,890,567 11,491,616 40,382,183

28,380,975 5,368,512 33,749.487

16,316,884 3,662,632 (22,376,726) (2.397.210)

16,986,770 2,696,270 (22.069.217) (2.386.177)

Liabilities:

Net position: Net investment in capital assets Restricted Unrestricted Total net position

$

$

Assets Cash, investments, receivables and prepaid items 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 96.1 % of the annual property tax assessment for 2016 in 2017. It is expected a similar collection rate will occur for 2017 taxes collected in 2018.

xv


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. An investment of $17,032,452 in land, improvements, buildings, apparatus, vehicles and equipment, to provide the services to the District's residents, represents 26.5% of the District's total assets. Deferred Outflows of Resources Deferred outflows of resources related to pensions, which are further explained on page 31 of this report (the actuarial effect of changes of assumptions plus the difference between projected and actual earnings on pension investments), was recorded in 2017 in the amount of $6, 706,596. Of this total, $5,997 ,625 is related to the Firefighters' Pension Fund and $708,971 is related to the Illinois Municipal Retirement Fund. 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, which include the Series 2012 General Obligation Debt Certificates, compensated absences payable, net pension liabilities, and the other post-employment benefits obligation, will be liquidated from resources that will become available after fiscal year 2018. Deferred Inflows o(Resources Unavailable revenue, in the form of assessed 2017 property taxes to be collected after fiscal year 2017, totaled $28,890,567 at year end. Deferred inflows of resources related to pensions, which are further explained on page 31 of this report and include the difference between actuarial expectation and actual experience, was recorded in 2017 in the amount of $11,491,616. Of this total, $10,545, 706 is related to the Firefighters' Pension Fund and $945,910 is related to the Illinois Municipal Retirement Fund. Net Position The liabilities and deferred inflows of resources of the District exceeded assets and deferred outflows of resources, resulting in a net deficit of $2,397,210. Total net position of the District does not include internal balances.

XVI


Statement of Activities The following chart shows the revenue and expenses of the District's activities during 2017 and 2016.

Orland Fire Protection District Statement of Activities for the Years Ended December 31, 2017 and 2016

2017 Revenues: Program revenues: Charges for services Operating grants and contributions General revenues: Property taxes Personal property replacement taxes Investment income Other income

$

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

$

4,161,905 529,886

2016

$

4,305,984 240,494

27 887 864 46 462 27,928 268,923

27 922 833 62 650 29,929 23 1,708

32,922,968

32.793.598

15,562,510 12,825,268 3,467,056 1,079,167

16,145,307 12,703,385 3,099,171 1.119,872

32.934,001

33 ,067,735

(1 1 033)

(274,137)

(2,3 86,177)

(2, I 12.040)

(2,32'.Z,210)

$

(2,3 86,17.7)

Governmental activities decreased the District's net position by $11,033. Key elements contributing to this net change are summarized below. Revenue: For the year ended December 31, 2017, total revenue from governmental activities (including program revenues and general revenues) increased by $129,370, or 0.4%. Total program revenues, which include charges for services as well as operating grants, increased by $145,313, or 3.2%. The increase in program revenues is primarily related to an increase in grant revenue. During 2017, grants were received from Cook County, FEMA and Firehouse Subs.

xvii


General revenues, which include property taxes, personal property replacement taxes, investment income, and other income in the amount of $28,231, 177 decreased by $15,943 or 0.05%. Property tax billing was 1.0% greater than prior year, but was offset by an increase in property tax refunds paid. Expenses: Expenses from governmental activities decreased by $133,734 (0.4%). Fire and rescue expenses were 3.6% lower than the prior year due to favorable variances for the pension fund related to positive market performance in 2017. Emergency Medical Service costs were only 1.0% higher than the prior year. General government expenses were 11.9% higher than the prior year due to the hiring of an Information Technology Director and increased expenses funded by grants.

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 $16,553,843, an increase of $434,286 compared to the prior year. Of the total, $184,170 is considered nonspendable because it has been used for prepaid items. 22. l %, or $3,664,950, of the total is restricted due to external limitations on its use. These uses include emergency rescue ($664,249), tort immunity ($1, 778,077), and other purposes ($1,222,624 ). 49 .6%, or $8,217 ,807, has been assigned, meaning there are limitations on its intended use. The assigned uses include general government ($59,615) tort immunity purposes ($266,572), emergency rescue purposes ($434,459), emergency medical services ($6, 168, 199), and capital projects ($1,288,962). The remaining 27 .1 %, or $4,486,916, is unassigned. The General Fund and Ambulance Funds are the main operating funds of the District. General Fund

At the end of the current fiscal year, unassigned fund balance of the General Fund was $4,486,916, while total fund balance of the General Fund was $9,093,029. As a measure of the 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 2017 were $20,065,453. Unassigned fund balance represents 22.4% of these General Fund expenditures, while total fund balance represents 45.3% of that same amount. Budgetary highlights for the General Fund follow.

xviii


Orland Fire Protection District General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2017

Revenues Property taxes Charges for services Other Total

Budi:;et

Actual

$ 19,361,566 432,535 935,834 20.729.935

$ 19,473,942 472,150 761.232 20.707.324

16,082,430 1,214,077 1,482,793 133,781 1,710,773 20,623,854

Expenditures and Encumbrances Personnel Commodities Contractual Other Debt service Total Excess of Revenues over Expenditures Other Financing Uses Transfers out Net Change in Fund Balance

$

Variance with Budi:;et 112,376 39,615 (174,602) (22.611)

100.6% 109.2% 81.3% 99.9%

15,908,860 922,429 1,394,154 108,121 1,710,773 20,044,337

173,570 291,648 88,639 25,660

102.5% 76.0% 94.0% 80.8%

579 517

97.2%

106,081

662,987

556,906

(250,000)

(500,000)

(250,000)

(143,212)

162,281

$

$

Percentage of Actual to Budi:;et

$

306,206

General Fund revenues in the amount of $20,707,324 were 0.1 % less than anticipated. Property taxes were 0.6% higher than anticipated. Charges for services were 9.2% higher than anticipated due to a new contract to dispatch for another fire department. Other revenue was 18.7% less than expected because grant proceeds were less than budgeted.

Ambulance Fund Ending fund balance of the Ambulance Fund is to be used for the costs of emergency medical services and an allocation of administrative costs. At the end of the current fiscal year, nonspendable, restricted and assigned fund balance of the Ambulance Fund was $6,171,852. Fund balance represents 51.4% of the Ambulance Fund expenditures. Budgetary highlights for the Ambulance Fund follow.

xix


Orland Fire Protection District Ambulance Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2017

Actual

Budi:et Revenues Property taxes Charges for services Other Total

$

Expenditures and Encumbrances Personnel Commodities Contractual Other Total Excess of Revenues over Expenditures Other Financing Uses Transfers out Net Change in Fund Balance

$

8,567,299 3,651,099 84 534 12.302,932

$

8,413,922 3,689,755 91 063 12.194.740

Variance with Budi:et $

(153,377) 38,656 6 529 (108.192)

98.2% 101.1% 107.7% 99.1%

97.1% 141.2% 113.4% 84.4% 100.8%

10,207,276 922,045 438,201 341,063 11.908,585

9,914,995 1,302,161 497,068 287,959 12,002.183

292,281 (380, 116) (58,867) 53 104 (93,598)

394,347

192,557

(201,790)

(279,430)

(500,000)

(220.570)

114.917

(307.443)

$

$

Percentage of Actual to Budi:et

(422.360)

Ambulance Fund revenues in the amount of$12,194,740 were 0.9% less than anticipated revenues. Property taxes were 1.8% less than budget due to greater than expected property tax refunds. Charges for services were 1.1 % greater than anticipated. Other revenue was 7.7% higher than expected. Expenditures were just 0.8% greater than budget.

Capital Assets The District's investment in capital assets for its governmental activities as of December 31, 2017 amounts to $17,032,452. The District's investment in capital assets decreased by $785, 121, due to depreciation expense that exceeded capital asset additions for the year. This investment in capital assets included land, buildings and improvements, apparatus, vehicles, and equipment.

xx


Orland Fire Protection District Capital Assets (net of accumulated depreciation) December 31, 2017 and 2016 2017 Land Buildings and improvements Apparatus and vehicles Equipment Total capital assets

2016

$

410,330 12,191,655 4,002,518 427 949

$

410,330 12,445,181 4,431,933 530,129

$

17.032.452

$

17.817 573

Additional information on the District's capital assets can be found in the notes to basic financial statements (see page 26).

Long-term Liabilities 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 $23,821,914 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 2017.

Orland Fire Protection District Long-term Liabilities December 31, 2017 and 2016 2017 Debt certificates Installment contract Note payable Compensated absences Net pension liabilities Other post-employment benefits obligation

$

Total long-term liabilities

$

2016

23,821,914 715,568 834,198 1,353,124 904,953 4,353.237

$

31.982.994

$

24,486,426 830,803 1,344,442 9,493,686 3.695.048 39.850.405

Additional information on the District's long-term liabilities can be found in the notes to basic financial statements (see pages 39 - 42).

Economic Factors and Next Year's Budget and Rates The District's primary revenue source is property taxes, representing approximately 80.9% 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.

xxi


Budgeted revenue for 2018 is $35,006,422. Property taxes are assumed to increase for existing property by the Consumer Price Index and for new construction property. Other sources of budgeted revenue include fees for ambulance service, grant proceeds, fees for dispatch services provided to other fire departments, and other miscellaneous sources. Budgeted expenditures for 2018 are $34,745,984. Expenditures include salaries and benefits to maintain staffing levels, facility expenses to operate and maintain existing buildings, maintenance expenses to maintain existing apparatus, training expenditures funded through grant proceeds, debt payments, and other miscellaneous expenditures. The 2018 budget includes maintaining staffing levels, improving information technology and communications, replacing vehicles, the purchasing of other specialized equipment, seeking accreditation from the Center for Public Safety Excellence and creating a fitness and wellness program for firefighters. 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 151 st Street Orland Park, Illinois 60462

xxii


BASIC FlNANCJAL STATEMENTS


GOVERNMENT-WJOE FINANCIAL STATEMENTS


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES DECEMBER 31, 2017

ASSETS $

Cash and investments Restricted cash Receivables, net of allowance for uncollectibles: Property taxes Accounts Deposit Due from fiduciary fund Prepaid items Capital assets not being depreciated: Land Capital assets, net of accumulated depreciation: Buildings and improvements Apparatus and vehicles Equipment

14,254,363 885,000 28,911,744 2,113,874 834,198 24,013 184,170 410,330 12,191,655 4,002,518 427.949 64,239.814

Total assets

DEFERRED OUTFLOWS OF RESOURCES 6 706 596

Deferred outflows of resources related to pensions

LIABILITIES 978,443

Accounts payable and other current liabilities Noncurrent liabilities: Due within one year Due in more than one year

1,778,538 30,204,456 32,961,437

Total liabilities

DEFERRED INFLOWS OF RESOURCES Property taxes levied for future periods Deferred inflows of resources related to pensions

28,890,567 11.491.616

Total deferred inflows ofresources

40,382, 183

NET POSITION (DEFICIT) 16,316,884

Net investment in capital assets Restricted for: Tort immunity Emergency rescue Other purposes Unrestricted deficit

L,778,077 664,249 1,220 306 (22.3 76.726) $

Total net position (deficit)

See notes to basic financial statements. 1

(2.397 .2 I 0)


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2017

Program Revenues Operating Charges for Grants and Contributions Service

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

Net (Expense) Revenue and Change in Net Position (Deficit)

$

15,562,510 12,825,268 3,467,056 1,079.167

$

500,384 3,449,542 211,979

$

529,886

$ ( 14,532,240) (9,375,726) (3,255,077) (l,079.167)

~

3219341001

$

4,161,905

~

529.886

(28,242,21 O}

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

27,887,864 46,462 27,928 268,923

Total general revenues

28.231.177

Change in net position (deficit)

(11,033) (2,386,177}

Net position (deficit) at beginning of year Net position (deficit) at end of year

$

See notes to basic financial statements. 2

(2,397,210)


FUND FINANCIAL STATEMENTS


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS BALANCE SHEET- GOVERNMENTAL FUNDS DECEMBER 31, 2017

Capital Projects

Ambulance

General

Nonmajor Governmental Fund

Total Governmental Funds

$

$

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

$

12,193,709 885,000

$

$

2,060,654

8,748,723 1,692,204 4,823,868

20,163,021 421,670 759,154 24,013 182.835

14,254,363 885,000 28,911,744 2,113,874 5,583,022 24,013 184.170

1.335

$ 34,629,402

$

15,266. 130

$

2.060.654

$

$

51,956.186

$

$

94,659 257,304

$

12,538

$

$

759 154

285,495 643,259 5,583,022

77L692

6.51 L776

LIABILITIES Accounts payable Accrued expenditures Due to other funds Total liabilities

178,298 385,955 4,823,868 5.388.121

351,963

20.148,252

8.742.315

28,890,567

182,835 3,662,632 760,646 4,486,216

1,335 2,318 6,168, 199

1,288,962

184, 170 3,664,950 8,217,807 4,486,916

9,093,029

6.171,852

1,288,962

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

i

3416291402

i

See notes to basic financial statements.

3

151266.130

$

2.060.654

16,22J.~43

i

~ 51.956.186


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO NET POSITION (DEFICIT) OF GOVERNMENTAL ACTIVITIES DECEMBER 31, 2017

Fund balances - total governmental funds

$

16,553,843

Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental funds.

17,032,452

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

834,198

Long-term liabilities 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: Note payable General obligation debt certificates Installment contract Unamortized issuance discount Compensated absences Net pension liabilities Other post-employment benefits obligation

$

(834,198) (24,055,000) (715,568) 233,086 (1,353,124) (904,953) (4.353,237)

Total

(31,982,994)

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.

(49,689)

Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. Deferred outflows and inflows of resources related to pensions at year-end are as follows: Deferred outflows related to pensions Deferred inflows related to pensions

$

6,706,596

Cl l.491.616)

Total

(4.785.020)

Net position (deficit) of governmental activities

$

See notes to basic financial statements. 4

(2,397,210)


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2017

General

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

$

Total revenues Expenditures: Current: Fire and rescue Emergency medical service General government Debt service: Principal Interest Capital outlay: Fire and rescue Emergency medical service

Ambulance

$

8,413,922 3,689,755

$

18,916 32,523 39 624

904

20.707.324

12.194.740

904

9,583,495 7,091,537 1,679,648

5,842,047 5,284,395 885,756

Excess (deficiency) of revenues over expenditures Other financing sources (uses): Proceeds from note payable Proceeds from sale of capital assets Transfers in Transfers out

20.065,453

12,012,198

641.871

182,542

Nonmajor Governmental Fund

Total Governmental Funds

$

$ 27,887,864 4,161,905 529,886 27,928 46,462 248.923 32,902,968

15,425,542 12,375,932 2,565,404

680,000 1,030,773

Total expenditures

115,235 26,166

795,235 1,056,939

430,721 673.107

430,721 673.107

1,245,229

33,322,880

(419,912)

(1,244,325)

834, 198 20,000 1,020,906

Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year

19,473,942 472, 150 529,886 8,108 13,939 209,299

Capital Projects

(500.000)

(500.000)

(500.000)

(500.000)

1.875.104

(20,906)

854 198

141,871

(317,458)

630,779

(20,906)

434,286

658, 183

20 906

8.95U58 $

834, 198 20,000 1,020,906 (1,020,906)

9,093,029

(20,906)

6.489.310

$

See notes to basic financial statements. 5

6, 171.852

$

1,288.962

$

16,119,557 $

16.553.843


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RECONCILIATION OF THE CHANGE IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE CHANGE IN NET POSITION (DEFICIT) OF GOVERNMENT AL ACTIVITIES YEAR ENDED DECEMBER 31, 2017

Net change in fund balances - total governmental funds

$

434,286

Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation ($1,053,095) exceeded capitalized capital outlays ($267 ,974) in the current period.

(785,121)

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.

795,235

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.

(15,488)

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.

(6,740)

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.

(8,682)

Governmental funds report District pension contributions as expenditures. However, in the statement of activities, the cost of pension benefits earned is reported as pension expense. This is the amount by which District pension contributions exceeded pension benefits earned in the current period.

233,666

An increase in the other post-employment benefits obligation increases long-term liabilities in the statement of net position.

(658,189)

Change in net position (deficit) of governmental activities

$

See notes to basic financial statements. 6

(11,033)


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, 2017

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 Contractual: Billing services Insurance Professional services Other Debt service: Principal Interest Total expenditures and encumbrances

$

19,361,566 432,535

$

$

$

7,488 13,179 298,985

19,361,566 432,535 616,182 7,488 13,179 298,985

20.113,753

20,729,935

20,707,324

(22,611)

10,211,112 205,487 198,669 2,079,452 2,863,554

10,439,112 205,487 518,669 2,055,608 2,863,554

10,517,962 201,520 269,925 2,055,898 2,863,555

(78,850) 3,967 248,744 (290)

66,233 423,310 1,924 89,940 330,227 24,261

66,233 701,492 1,924 89,940 330,227 24,261

57,174 527,637 439 87,581 225,618 23,980

1,127,200 337,593 109,937

1,127,200 355,593 133,781

1,006,865 387,289 108,121

680,000 1,030,773

680,000 1.030,773

680,000 1.030,773

19,779,672

20,623,854

20,044,337

See notes to basic financial statements.

7

19,473,942 472,150 529,886 8,108 13,939 209,299

Variance with Final Budget

112,376 39,615 (86,296) 620 760 (89.686)

(1) 9,0~9

173,855 1,485 2,359 104,609 281

120,335 (31,696) 25,660

579 517


Page 1of2

Ambulance Fund Final Budget Actual

Original Budget

$

8,567,299 3,651,099

$

8,567,299 3,651,099

$

8,413,922 3,689,755

Variance with Final Budget

$

(153,377) 38,656

17,512 30,821 36,201

17,512 30,821 36.201

18,916 32,523 39 624

12,302.932

12,302,932

12,194,740

(108,192}

7,831,383 323,827 84,844 1,797,222

8,001,383 323,827 84,844 1,797,222

7,812,704 335,000 30,687 1,736,604

188,679 (11,173) 54,157 60,618

154,797 283,969 6,304 62,960 357,276 56,739

154,797 283,969 6,304 62,960 357,276 56,739

133,403 615,329 1,464 58,689 437,323 55,953

21,394 (331,360) 4,840 4,271 (80,047) 786

110,000

110,000

129,945

(19,945)

328,201 341,063

328,201 341,063

367,123 287,959

(38,922) 53,104

11,738,585

11,908,585

12.002,183

(93,598}

1,404 1,702 3 423

8


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, 2017

General Fund Final Budget Actual

Original Budget Excess of revenues over expenditures and encumbrances Other financing uses: Transfers out Net change in fund balances

Variance with Final Budget

334,081

106,081

662,987

556,906

(250,000)

(250,000)

(500,000)

(250.000)

84,081

(143,919)

162,987

306,906

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

8,823.338

8,823.338

8,823,33 8

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

8,907,419

8,679,419

8,986,325

306,906

106 704

106 704

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

$

8,907.419

See notes to basic financial statements.

9

$

8.679.419

~

9,093,029

~

413,610


Pagel of2

Ambulance Fund Final Budget Actual

Original Budget

564,347

394,347

192,557

(201,790)

(279.430)

(279.430)

(500,000)

(220.570)

284,917

114,917

(307,443)

(422,360)

6.422.159

6,422,159

6.422.159

6,707,076

6,537,076

6,114,716

57.136 $

Variance with Final Budget

6.707,076

$

6,537.076

$

6.171,852

(422,360)

57.136 = $ = -'-36_5_ .2_2_4)

10


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF NET POSITION - FIDUCIARY FUNDS DECEMBER 31, 2017

ASSETS

Cash Accrued interest receivable Investments: Debt issues: Corporate Foreign Municipal Equities: Domestic Foreign Mutual funds: Bonds Equities Other pooled fixed income investments Other pooled equity investments Separate account U.S. government agency obligations U.S. Treasury notes Prepaid items

$

6,679,327 343,159

24,008,706 2,505, 179 1,299,862 10,519,358 115,603 1,453,192 83,762,032 307,757 342,250 13,152,090 3,967, 119 18,630, 120 15.230

Total assets

167.100.984

LIABILITIES

Accounts payable Due to other fund

42,646 24 013

Total liabilities

66 659

NET POSITION

Net position restricted for: Pension benefits Other post-employment benefits

159,046,149 7.988.176

Total net position

$ 167.034.325

See notes to basic financial statements. 11


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF CHANGES IN NET POSITION - FIDUCIARY FUNDS YEAR ENDED DECEMBER 31, 2017

Additions: Contributions: Employer Plan members

$

Total contributions

3,463,555 1.223.282 4.686.837

Investment income Less investment expense

18,689,012 (295.061)

Net investment income

18,393,951

Total additions

23.080,788

Deductions: Benefit payments Administrative expenses

5,077,366 113.931

Total deductions

5.191.297

Increase in net position

17,889,491

Net position at beginning of year

149.144,834

Net position at end of year

$ 167,034,325

See notes to basic financial statements. 12


NOTES TO BASIC FINANCIAL STATEMENTS


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

I.

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 the 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 businesstype activities.

B.

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. Fiduciary-type component units are, in substance, part of the District's operations, even though they are legally separate entities. Thus, fiduciary-type component units are appropriately presented as funds of the District.

Fiduciary-type component units. The District's fiduciary-type component units consist of the Orland Fire Protection District Firefighters' Pension Fund ("FPF") and the Retiree Health Insurance Fund ("RHIF"). 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 RHIF, which provides health insurance coverage for retired employees and their spouse and dependents until they reach age 65. The District funds RHIF costs based upon actuarial valuations. The RHIF 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 RHIF is reported as a trust fund.

C.

Basis of Presentation - Government-wide Financial Statements

While separate government-wide and fund financial 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. 13


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

D.

Basis of Presentation - Fund Financial Statements

The fund financial statements provide infonnation about the District's funds, including its fiduciary-type 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 funds 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 funded by a tax levy restricted for that purpose and charges for service. 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 general 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 financial statements. Transfers between the funds included in governmental activities are eliminated.

14


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

E.

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 financial 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 service, 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 post-employment benefit trust funds are reported using the economic resources measurement focus and the accrual bas is of accounting. F.

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.

15


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

The District follows these procedures in establishing the budgetary data reflected in the financial statements: 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, 2017 was adopted through the passage of ordinance number 2016-05 on November 15, 2016, and was subsequently amended through the passage of ordinance number 2018-01 on January 23, 2018. 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 appropriations as adopted for each fund are as follows: General Fund: Corporate Subfund Tort Liability Subfund Emergency Rescue Subfund Ambulance Fund Capital Projects Fund

$

17,677,767 2,959,546 2,186,813 13,257,455 732,483

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, 2017 totaled $253,840. The following funds had an excess of actual expenditures/encumbrances over the working budget amount for the year ended December 31, 2017: Budget

Fund Ambulance Fund Capital Projects Fund

$

11,908,585 665,894

16

Variance

Actual $

12,002, 183 1,335,229

$

93,598 669,335


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

The overexpenditure in the Ambulance Fund was funded by current revenues. The overexpenditure in the Capital Projects Fund was funded by the proceeds from a note payable.

G.

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

J.

Investments

Investments are reported at fair value.

2.

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.

3.

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 acquisition 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 and improvements, apparatus, vehicles, and equipment are depreciated using the straight-line method over the following estimated useful lives: Years

Assets Buildings and improvements Apparatus Vehicles Equipment

17

50 10-20 5 10


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

4.

Deferred Outflows/Inflows ofResources

In addition to assets, the financial statements 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. The District has one item that qualifies for reporting in this category in the statement of net position. It is the deferred outflows of resources related to pensions (see Notes II.E.1 and 2 for further discussion of deferred outflows of resources related to pensions). In addition to liabilities, the financial statements will sometimes report a separate section for deferred inflows ofresources. 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 (revenue) until that time. The District has two types of items that qualify for reporting in this category. One item, unavailable revenue, is reported in the government-wide statement of net position and the governmental funds balance sheet. The District reports unavailable revenues from one source - property taxes. These amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. The other item, deferred inflows of resources related to pensions, is reported in the statement of net position (see Notes ILE. I and 2 for further discussion of deferred inflows of resources related to pensions).

5.

Long-term Obligations

In the government-wide financial 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 term 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 are reported as expenses .in the periods in which they are incurred. In the fund financial statements, governmental fund types report the face amount of the debt issued 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. Bond issuance costs are reported as debt service expenditures.

6.

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.

18


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

7.

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.

8.

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 a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) 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. The Board of Trustees may by resolution authorize an individual or body to assign fund balance. The Board of Trustees has not adopted such a resolution. 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

1.

Program Revenues

Amounts reported as program revenues include I) charges to individuals or entities that 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.

19


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

2.

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 first billing (mailed on or about February I) 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 significant distributions of property tax receipts approximately one month after the due dates.

3.

Compensated Absences

It is the District's policy to permit employees to accumulate earned but unused sick pay benefits. The liability for sick pay is reported as incurred in the government-wide financial 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 financial statements. Those estimates and assumptions affect the reported amount of assets, liabilities, deferred outflows/inflows of resources, the disclosure of contingent assets and liabilities, and the reported revenues and expenses/expenditures. Actual results could differ from those estimates. J.

Comparative Data

Comparative data for the prior year have been presented in the combining and individual fund financial statements and schedules in order to provide an understanding of the changes in the financial 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 Firefighters' Pension Fund, and the Retiree Health Insurance Fund might not be recovered. The investment policies of the District and the Retiree Health Insurance Fund require the amount of collateral provided to be at a minimum of 110% of the net amount of deposits. The Firefighters' Pension Fund does not have a deposit policy for custodial credit risk. As of December 31, 2017, bank balances of the Firefighters' Pension Fund and the Retiree Health Insurance Fund were fully insured. As of December 31, 2017, $14,227,910 of the District's bank balances of $15,227,910 were ewosed to custodial credit risk and classified as follows:

20


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Uninsured and collateralized with securities held by the pledging financial institutions Uninsured and collateralized with securities held by the pledging financial institution's trust department but not in the District's name Uninsured and uncollateralized

$

2,545,382 490.262 $

Total

11, 192,266

l4,227,910

Investments As of December 31, 2017, the Firefighters' Pension Fund and the Retiree Health Insurance Fund had the following investments: Weighted Average Years to Average Credit Maturity (2) Quality Ratings (1) Fair Value Type oflnvestment Firefighters' Pension Fund: Debt issues: Corporate* Foreign* Municipal* Equities: Domestic Foreign Mutual funds: Equities Separate account U.S. government agency obligations* U.S. Treasury notes* Total

$

23,297,964 2,505,179 1,299,862

AAA- BBB-/ AAA- BAl AAA-BBB/AAA-BAA3 AAA - AA I AAA - A2

5.98 3.59 11.95

10,519,358 115,603

NIA NIA

NIA NIA

78,648,549 13, 152,090

NIA NIA

NIA NIA

3,967,119 18,630.120

AA+- AA- I AAA NIA I AAA

8.43 3.71

$ 152.13 5.844

21


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Tvpe of Investm ent Retiree Health Insurance Fund: Debt issues: Corporate* Mutual funds: Bonds Equities Other pooled fixed income investments Other pooled equity investments Total

Average Credit Quality Ratings (])

Weighted Average Years to Maturity (2)

AAA-A3

3.93

1,453, 192 5, 113,483

NIA NIA

NIA

307,757

NIA

See (3)

342.250

NIA

NIA

Fair Value

$

$

710,742

6.90

7.927.424

(I) 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. (3) Infonnation is not available. * Some investments are not rated 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. 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 standard 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, l 0% of the total outstanding paper of the issuing corporation or one-third of the cost of the portfolio.

22


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

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. Illinois Compiled Statutes (ILCS) require the Firefighters' Pension Fund's Board of Trustees to adopt an investment policy which can be amended by a majority vote of the Board. During the year, no changes to the investment policy were approved by the Board of Trustees. 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 policy of the Retiree Health Insurance Fund requires the amount of collateral provided to be at a minimum of 110% of investments. The investment policy of the Firefighters' Pension Fund does not specifically define custodial credit risk.

23


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

The Firefighters' Pension Fund is also subject to foreign currency risk: Foreign currency risk - the investment policy of the Firefighters' Pension Fund does not specifically define foreign currency risk. At December 31, 2017, the Firefighters' Pension Fund's investment portfolio contained $2,505, 179 of foreign currency-denominated corporate bonds that were rated between AAA and BBB by Standard & Poor's Ratings, and between Aaa and Baa3 by Moody's Investors Service and $115,603 of foreign currency-denominated equities.

B.

Fair Value Measurements

The Firefighters' Pension Fund and Retiree Health Insurance Fund categorize their fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Firefighters' Pension Fund and Retiree Health Insurance Fund had the following recurring fair value measurements as of December 31, 2017: Debt issues, U.S. government agency obligations, U.S. Treasury notes, and other pooled fixed income investments - Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yield currently available on comparable securities of issuers with similar credit ratings. Equities - Valued at quoted market prices for identical assets in active markets. Mutual funds - Valued at the daily closing price as reported by the fund. Mutual funds held by the Firefighters' Pension Fund and Retiree Health Insurance Fund are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (NA V) and to transact at that price. The mutual funds held by the Firefighters' Pension Fund and Retiree Health Insurance Fund are deemed to be actively traded. Separate account - Valued at NA V of units held, as reported by the manager of the separate account. The NA V is used as a practical expedient, and the estimated fair value is subject to uncertainty and therefore may differ from the value that would have been used had a readily available market for this investment existed, and the difference could be material.

24


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

The following table summarizes the investments of the Firefighters' Pension Fund and Retiree Health Insurance Fund for which fair values are determined on a recurring basis as of December 31, 2017: Quoted Prices in Active Markets for Identical Assets (Level I} Firefighters' Pension Fund: Debt issues: Corporate Foreign Municipal Equities: Domestic Foreign Mutual funds: Equities U.S. government agency obligations U.S. Treasury notes

$

Significant Observable Inputs (Level 2}

$

23,297,964 2,505,179 1,299,862

Significant Unobservable Inputs (Level 3)

$

Fair Valye

$

10,519,358 115,603

10,519,358 115,603

3,967,119 18,630, 120

78,648,549 3,967, 119 18.630.120

49,700,244

138,983,754

78,648,549

Total investments in the fair value hierarchy

89,283,510

Separate account - measured at net asset value(*) Total investments at fair value Retiree Health Insurance Fund: Debt issues: Corporate Mutual funds: Bonds Equities Other pooled fixed income investments U.S. government agency obligations Total investments at fair value

*

23,297,964 2,505,179 1,299,862

13.152.090

$

89.283,510

$

$

491700,244

$

$ 152.135.844

$

710,742

$

$

1,453, 192 5,113,483 307,757 342.250

1,453,192 5,113,483 307,757 342.250

$

1,453, 192

$

1,360,749

710,742

$

$

7.927.424

In accordance with GASB 72, the separate account that was measured at NA V per share has not been classified in the fair value hierarchy. The fair value amount presented in this table is intended to permit reconciliation of the fair value hierarchy to the statement of net position - fiduciary funds.

The Firefighters' Pension Fund's separate account investment is in an open-end, commingled real estate equity account established by Principal Life Insurance Company that invests in a diversified mix of primarily high quality, well-leased real estate properties in the multifamily, industrial, office, retail and hotel sectors. Redemptions are subject to a withdrawal limitation, which was last utilized in 2008. 25


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

C.

Receivables

The allowance for uncollectible ambulance accounts receivable of $190,000 is based on previous collection experience.

D.

Capital Assets

Capital asset activity for the year ended December 31, 20 J7 was as follows: Beginning Balance Governmental activities: Capital assets, not being depreciated: Land

$

410.330

Decreases I Adjustments

Increases

$

$

Ending Balance

$

410.330

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

16,964,206 11,144,399 2,766.251

87,508 180,466

(446,204)

17,051,714 10,878,661 2.766.251

Total capital assets, being depreciated

30.874.856

267 974

(446,204)

30.696,626

4,519,025 6,712,466 2.236.122

341,035 609,880 102.180

(446,204)

4,860,060 6,876,142 2.338.302

Total accumulated depreciation

13.467.613

1.053,095

(446.204)

14,074,504

Total capital assets, being depreciated, net

17.407.243

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

Governmental activities capital assets, net

$ 17,817.573

(785.121)

$

{785.12 l) $

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

26

$

550,368 385,314 117.413

$

1.053,095

16.622, 122

$ 17.032,452


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

E.

Pension and Post-Employment Benefit Obligations

The District maintains the Firefighters' Pension Plan, which covers its qualified sworn employees, and participates in the statewide Illinois Municipal Retirement Fund, which covers substantially all of the remaining qualified District employees. The District also maintains a post-employment benefit plan (Retiree Health Insurance Plan). The information presented in the following notes is the most current information available as of December 31, 2017.

1.

Firefighters' Pension Plan

Description of Plan. The Firefighters' Pension Plan is a single-employer defined benefit retirement plan that is administered by the Firefighters' Pension Fund's board of trustees. The Firefighters' Pension Fund's Board of Trustees consists of five members. Two members are appointed by the president of the board of trustees, two members are elected by the active sworn members, and one member is elected by retired and/or disabled participants. The defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The Firefighters' Pension Plan issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained at the Plan's administrative office, located at 9790 West 151 st Street, Orland Park, Illinois, 60462.

Benefits Provided. The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to onehalf of the salary attached to the rank held at the date of retirement. 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 I 0 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly pension of a covered employee 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 pension and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January l, 2011) attaining the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the 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 $112,408, plus the lesser of 1/2 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., l/2% for each month under 55). The monthly benefit of a Tier 2

27


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

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. Non-compounding increases occur annually, each January thereafter. The increase is the lesser of 3% or 112 of the change in the Consumer Price Index for the preceding calendar year.

Plan Membership. At December 31, 2017, the Firefighters' Pension Plan's membership consisted of the following: Inactive Plan members currently receiving benefits Inactive Plan members entitled to but not receiving benefits Active Plan members

60

2 11 3

175

Total

Contributions. Employees are required by Illinois Compiled Statutes (ILCS) to contribute 9.455% of their base salary to the Firefighters' Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The District is required to contribute the remaining amounts necessary to finance the Firefighters' Pension Plan, as actuarially determined by an enrolled actuary. Effective January 1, 2011, the District has until the year 2040 to fund 90% the past service cost for the Firefighters' Pension Plan. For the year ended December 31, 2017, the District's contribution was 22.50% of covered payroll. Net Pension Liability. The District's net pension liability was measured as of December 31, 2017. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial cost method - Entry-age Inflation - 2.5% Salary increases - 4.5 - 32.3% Investment rate of return - 7.0%, compounded annually, net of pension plan investment expense, including inflation Asset valuation method - Market Mortality rates were based on the actuary's 2016 Illinois Firefighters' Mortality Rates. Retirement rates were based on the actuary's 2016 Illinois Firefighters' Retirement Rates capped at age 65, with a 50% rate at 26 years of service. Disability Rates and Termination Rates were based on the actuary's 2016 Illinois Firefighters' Disability and Termination Rates, respectively.

28


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an actuarial experience study for the period January 1, 2017 - December 31, 2017. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the Firefighters' Pension Plan's target asset allocation as of December 31, 2017 (see the discussion of the Firefighters' Pension Plan's investment policy) are summarized in the following table:

Portfolio Target Allocation

Asset Class

40.0 % 35.0 15.0 7.5 2.5

Domestic equity Fixed income International equity Real estate Global tactical

Long-Term Expected Real Rate of Return 5.6 % 2.1

5.8 5.2 3.9

100 %

Single Discount Rate. A Single Discount Rate of 7.0% was used to measure the total pension liability. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that District contributions will be made at rates equal to the difference between actuarially determined contribution rates and the employee rate. Based on those assumptions, the Firefighters' Pension Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

29


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Changes in the Net Pension Liability. Changes in the District's net pension liability for the year ended December 31, 2017 were as follows:

Total Pension Liability

lncrease (Decrease) Plan Fiduciary Net Position

(a)

Cb)

I

Balances at December 31, 2016 Changes for the year: Service cost Interest on the total pension liability Differences between expected and actual experience Net investment income Contributions - employees Contributions - employer Benefit payments, including refunds of employee contributions Administrative expense

$

150,470,365

$ 141.716.651

Net Pension Liability (a) - fb) $

3,530,934 10,383,721

3 530 34 10 383 721

(227,815) (17,618,172) (1,223,282) (2,863,555)

(227,815) 17,618,172 1,223,282 2,863,555 (4,262,980) Cl 12.531)

( 4,262,980)

9.423,860

17.329.498

$ 159,894.225

$ 159.046.149

Net changes Balances at December 31, 2017

8.753.714

112.531 (7,905.638) ..,$_

_..84....8....o.... 16...

Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the District, calculated using the discount rate of 7 .0%, as well as what the District's net pension liability would be if it were calculated using a discount rate that is 1.0 percentage-point lower (6.0%) or 1.0 percentage-point higher (8.0%) than the current rate:

1% Lower (6.0%) District's net pension liability (asset)

$

26.145.328

30

Current Discount Rate (7.0%) $

848.076

1% Higher (8.0%) $

( 19,576,914)


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Plan Fiduciary Net Position. Detailed information about the Plan's fiduciary net position is available in other locations in this report as the Plan is reported as a fiduciary fund of the District as well as in a separately issued financial report of the Plan. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Relater) to Pensions. For the year ended December 31, 2017, the District recognized pension expense of $2,592,143. At December 31, 2017, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Inflows of Resources

Deferred Outflows of Resources

Deferred Amounts Related to Pensions Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on Plan investments Total

$

$

3,661,300

2,687,270 6.884,4Q6

3.310.355

$

5.997.625

$

10.545!706

Amounts reported as deferred outflows of resources and (deferred inflows of resources) will be recognized in pension expense in future periods as follows:

2.

2018 2019 2020 2021 2012 Thereafter

$

(301,697) (301,700) (1,956,876) (1,717,570) (175,948) (94.290)

Total

$

( 4,548,081)

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 managed by the Illinois Municipal Retirement Fund (IMRF), the administrator of a multiemployer public pension fund. A summary of IMRF's pension benefits is provided in the "Benefits Provided" section of this document. Details of all benefits are available from IMRF. 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 Comprehensive Annual Financial Report that includes financial statements, detailed information about the pension plan's fiduciary net position, and required supplementary information. The report is available for download at www.imrf.org.

31


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Benefits Provided. IMRF has three benefit plans. The majority of IMRF members participate in the Regular Plan. The Sheriffs Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date). Employees of the District who are eligible to participate in the plan participate in the RP. All three IMRF benefit plans have two tiers. Employees hired before January 1, 2011, are eligible for Tier l benefits. Tier 1 employees are vested for pension benefits when they have at least 8 years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with 8 years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last l 0 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January l every year after retirement. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after 10 years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last l 0 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: • •

3% of the original pension amount, or 1/2 of the increase in the Consumer Price Index of the original pension amount.

Employees Covered by Benefit Terms. As of December 31, 2017, the following employees were covered by the benefit terms: Retirees and beneficiaries currently receiving benefits Inactive Plan members entitled to but not yet receiving benefits Active Plan members

11

10 26 47

Total

Contributions. As set by statute, the District's plan members are required to contribute 4.5% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The District's annual required contribution rate for calendar year 2017 was 9.54%. 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's Board of Trustees, while the supplemental retirement benefits rate is set by statute.

32


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Net Pension Liability. The District's net pension liability was measured as of December 31, 2017. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial Assumptions. The following are the methods and assumptions used to determine the total pension liability at December 31, 2017:

• • • • • •

The Actuarial Cost Method used was Entry Age Normal. The Asset Valuation Method used was Market Value of Assets. The Inflation Rate was assumed to be 2.75% (approximate; no explicit price inflation assumption is used in the valuation). Salary Increases were expected to be 3.75% to 14.50%, including inflation. The Investment Rate of Return was assumed to be 7.50%. Projected Retirement Age was from the Experience-based Table of Rates, specific to the type of eligibility condition, last updated for the 2014 valuation according to an experience study from years 2011 to 2013. The IMRF-specific rates for Mortality (for non-disabled retirees) were developed from the RP2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For Disabled Retirees, an IMRF-specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF-specific rates were developed from the RP-2014 Disabled Retirees Mortality Table, applying the same adjustments that were applied for non-disabled lives. For Active Members, an IMRF-specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF-specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:

33


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Portfolio Target Percentage

Asset Class

37 % 28 18 7 9 1

Domestic equity Fixed income International equity Alternative investments Real estate Cash equivalents Total

Long-Term Expected Real Rate of Return 6.85 % 3.00 6.75 2.65-7.35 5.75 2.25

100 %

Single Discount Rate. A Single Discount Rate of 7.50% was used to measure the total pension liability. The projection of cash flows used to determine this Single Discount Rate assumed that the plan members' contributions will be made at the current contribution rate, and that District contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the District's IMRF fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in the Net Pension Liability. Changes in the District's net pension liability for the year ended December 31, 2017 were as follows:

34


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Total Pension Liability (a) Balances at December 3 I, 20 I 6 Changes for the year: Service cost Interest on the total pension liability Differences between expected and actual experience Changes in assumptions Net investment income Contributions - employees Contributions - employer Benefit payments, including refunds of employee contributions Other changes

$

$

6.473.384

Net Pension Liability (a) - (b) 739,972

$

225,691 542,305

225,691 542,305

200,432 (277,I32)

200,432 (277,132) (1,090,995) (IOI,048) (223,567)

1,090,995 IOI,048 223,567 (190,936)

Net changes Balances at December 3 I, 2017

7,213,356

Increase (Decrease) Plan Fiduciary Net Position (b)

(190,936) (41,2I9)

7.7I3.7I6

(683.095)

1 183 455

500.360 $

4I 219

$

7.656,839

56.877

$

Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the District calculated using a Single Discount Rate of 7.50%, as well as what the net pension liability (asset) would be if it were calculated using a single discount rate that is I-percentage-point lower (6.50%) or I-percentage-point higher (8.50%) than the current rate:

1% Lower (6.50%) District's net pension liability (asset)

$

1.240.765

Current Discount Rate C7.50%) $

56.877

1% Higher (8.50%) ==='=90....9.-,0.-56...)

==$

Plan Fiduciary Net Position. Detailed information about the Plan's fiduciary net position is available in the separately issued IMRF financial report. Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions. For the year ended December 3 I, 2017, the District recognized pension expense of $26 I,3 l I. At December 3 I, 2017, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

35


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Deferred Inflows of Resources

Deferred Outflows of Resources

Deferred Amounts Related to Pensions Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on Plan investments Total

$

411, I 08 88,573

$

481.619

209.220

~

7081971

225,673 238,618

$

9451910

Amounts reported as deferred outflows of resources and (deferred inflows of resources) will be recognized in pension expense in future periods as follows:

3.

2018 2019 2020 2021 2022 Thereafter

$

42,115 25,358 (103,701) (l 73,064) (26,913) (734)

Total

$

(236.939)

Summary of Pension Information

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Firefighters' Pension Plan (FPP) and the Illinois Municipal Retirement Fund (IMRF) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Pension-related assets, deferred outflows of resources, liabilities, deferred inflows of resources, and pension expense/expenditures are summarized as follows:

FPP Deferred outflows of resources Net pension liability Deferred inflows of resources Pension expense Pension expenditures

$

36

5,997,625 848,076 10,545,706 2,592,143 2,863,555

IMRF $

708,971 56,877 945,910 261,311 223,567

Total

$

6,706,596 904,953 11,491,616 2,853,454 3,087,122


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

4.

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 Plan 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 151st 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 2017, the District contributed $600,000 to the plan. Plan members receiving benefits contributed $0. At December 31, 2017, $7,988,176 was held in an irrevocable trust to fund current and future retiree health insurance claims. Annual OPEB Cost and Net OPEB Asset (Liability). The District's annual other post-employment 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 of GASB 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 30 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 liability: Annual required contribution Interest on the net OPEB liability Adjustment to annual required contribution

$

1,913,745 203,228 (858,784)

Annual OPEB cost Contributions made

1,258,189 600,000

Increase in net OPEB liability Net OPEB liability at beginning of year

658,189 3,695,048 $

Net OPEB liability at end of year

37

4.353.237


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

The District's annual OPEB cost, the percentage of annual OPES cost contributed to the plan, and the net OPEB liability for the three most recent years were as follows: Fiscal Year Ended 12/31/17 12/31/16 12/31/15

Annual OPEB Cost $

Percentage of Annual OPEB Cost Contributed

1,258, 189 1,422,834 1,315,020

47.69 % 0.00 0.00

Net OPEB Liability $

4,353,237 3,695,048 2,272,214

Funded Status and Funding Progress. As of December 31, 2017, the most recent actuarial valuation date, the plan was 31 % funded. The actuarial accrued liability for benefits was $25,875,425, and the actuarial value of assets was $7,988, 176, resulting in an unfunded actuarial accrued liability (UAAL) of $17,887,249. The covered payroll (annual payroll of active employees covered by the plan) was $17,399,466, and the ratio of the UAAL to the covered payroll was 103%. 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. In the December 31, 2017 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 5.50% investment rate of return (net of administrative expenses) and an annual healthcare cost trend rate of 6.50% initially, reduced by decrements to an ultimate rate of 5.00% after seven years. The UAAL is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2017 was 20 years.

38


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

The debt service of the note payable and the installment contract will be made by the Capital Projects Fund with funds transferred in from the General Fund and the Ambulance Fund. The debt service of the other long-term liabilities will generally be from the General Fund. The schedules of the long-term debt outstanding at December 31, 2017 are as follows:

Note Payable The District has a $834, 198 note payable to a bank due in annual installments of $97, 771, with the final installment due in September, 2027. Interest is payable at 2.95%. The proceeds of the note were used to place a deposit on a new fire truck. The note is collateralized by a money market account, which must not fall below $885,000. Once the construction of the fire truck is complete, the bank will be granted a security interest in the truck and will release its interest in the money market account. Year Ending December 3 I.

Principal Due

Interest Due

Total Due

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

$

72,797 74,977 77,164 79,531 81,913 84,364 86,860 89,491 92, 171 94 930

$

24,974 22,794 20,607 18,240 15,858 13,407 10,911 8,280 5,600 2 841

$

97,771 97,771 97,771 97,771 97,771 97,771 97,771 97,771 97,771 97 771

Total

~

834.198

~

143a512

~

977a710

40


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

General Obligation Debt Certificates General obligation debt certificates, which were used to prepay pension and other post-employment benefit obligations, 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

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

$

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

$

1,016,153 997,410 973,759 944,328 909,018 867,543 819,910 766,285 707,973 640,573 565,043 468,023 363,083 250,223 129 195

$

1,781,153 1,857,410 1,938,759 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

~

2410551000

$

10.418.519

$

34.473.519

41


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

Installment Contract The District entered into an installment contract for two Pierce Impel pumpers. Payments under the contract, including interest at 3.15%, are due as follows: Year Ending December 31.

Principal Due

Interest Due

Total Due

2018 2019 2020 2021

$

118,864 122,609 126,470 347.625

$

22,537 18,792 14,931 930

$

141,401 141,401 141,401 348,555

Total

$

715.568

$

57.190

$

772.758

The annual requirements to amortize all outstanding debt as of December 31, 2017 are as follows: Year Ending December 31.

Principal Due

Interest Due

Total Due

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

$

956,661 1,057,585 1,168,634 1,497,157 1,266,913 1,389,364 1,516,860 1,644,491 1,777, 171 1,914,930 1,960,000 2,120,000 2,280,000 2,445,000 2.610.000

$

1,063,663 1,038,997 1,009,297 963,498 924,876 880,950 830,821 774,565 713,573 643,414 565,043 468,023 363,083 250,223 129.195

$

2,020,324 2,096,582 2, 177,931 2,460,655 2,191,789 2,270,314 2,347,681 2,419,056 2,490,744 2,558,344 2,525,043 2,588,023 2,643,083 2,695,223 2.739.195

Total

~

25.604.766

~

10a619a221

~

36223;987

42


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

The legal debt margin of the District as of December 31, 2017 is determined as follows: Assessed valuation - 2016 tax year (most current valuation available)

$

2,235,879,473

Statutory debt limitation (5. 75% of assessed valuation)

$

128,563,070

Total debt outstanding, net of unamortized issuance issuance discount of $233,086

25,371,680 $

Legal debt margin

I.

103,191,390

Fund Balances

As of December 31, 2017, fund balances were comprised of the following:

General Fund Nonspendable: Prepaid items

$

182.835

Capital Projects Fund

Ambulance Fund

$

1.335

$

Nonmajor Total Governmental Governmental Funds Fund

$

$

184.170

Restricted: Emergency rescue Tort immunity Other purposes

664,249 1,778,077 1,220,306

2 318

664,249 1,778,077 1,222.624

Total restricted

3.662.632

2 318

3.664.950

Assigned: Capital projects Emergency medical service Emergency rescue General government Tort immunity Total assigned Unassigned Total

1,288,962

1,288,962 6,168,199 434,459 59,615 266.572

1.288.962

8.217.807

6,168,199 434,459 59,615 266.572 760 646

6.168.199

4.486.916

4.486.916

$ 910931029

~ 611711852

43

$

11288.962

$

~ 1615531843


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

J.

Encumbrances

Encumbrance accounting is employed as an extension of formal budgetary integration for the General Fund, Ambulance Fund, and Capital Projects Fund. At December 31, 2017, 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: Assigned Fund Balance General Fund Ambulance Fund Capital Projects Fund Total K.

$

106,704 57,136 90 000

$

253,840

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; employee medical coverage; 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 entity 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. L.

Tort Immunity Expenditures

Tort immunity expenditures for the year ended December 31, 2017 are summarized as follows: Property and liability insurance Risk management personnel costs Professional services Other Total

44

$

1,006,865 1,307,082 183,479 45.060

$

2,542,486


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

M. Labor Concentrations The sworn personnel of the District are covered by a collective bargaining agreement that expired on December 31, 2017. Subsequent to year end, the agreement was renegotiated and the current agreement expires on December 31, 2020. Certain non-sworn personnel of the District are covered by a collective bargaining agreement that expires on December 31, 2018. N.

Contingent Liabilities

The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District's management, the resolution of these matters will not have a material adverse effect on the financial condition of the District. The District is an intervenor in approximately 80 appeals before the Property Tax Appeal Board filed by property taxpayers within the District's boundaries. If the District is unsuccessful in defending the assessed valuations of the properties, it would have to refund property taxes based on the difference in assessed value for the period that the taxpayer's challenge is granted through. The outcome of these challenges to the assessed valuations of properties within the District is not presently determinable. 0.

Subsequent Events

Management has evaluated subsequent events through June 20, 2018, which is the date the financial statements were available to be issued. P.

Recently Issued Accounting Standard

In June, 2015, the Governmental Accounting Standards Board issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The scope of this Statement addresses accounting and financial reporting for other postemployment benefits (OPEB) that is provided to the employees of state and local governmental employers. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this Statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. The Statement is effective for the fiscal year ending December 31, 2018. Management is currently evaluating the impact this new accounting standard will have on the District's financial statements and related disclosures.

45


REQUIRED SUPPLEMENTARY INFORMATION


EMPLOYEE RETIREMENT AND POST-EMPLOYMENT BENEFIT PLAN INFORMATION


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATIONFIREFIGHTERS' PENSION PLAN LAST TEN CALENDAR YEARS (SCHEDULES TO BE BUILT PROSPECTIVELY)

SCHEDULE OF CHANGES IN THE DISTRICT'S NET PENSION LIABILITY

2017 Total pension liability: Service cost Interest on the total pension liability Differences between expected and actual experience Changes in assumptions Benefit payments, including refunds of employee contributions

$

9,423,860

8,802,771

8 132 233

150,470.365

141.667.594

133.535,361

$ 159,894.225

$ 150,470,365

$ 14 1,667,594

$

$

17,618,172 (4,262,980) (112.531)

(3 ,997 ,213) (100,280)

(3,766,976) (84.706)

17,329,498

10,316,588

1,403,102

141.716.651

131.400,063

129 ,996,96 I

$ 159 ,046.149

$ 141.716.651

$ 131,400.063

$

$

$

Plan fiduciary net position as a percentage of total pension liability

2,863,555 1,223,282

848.076

99.47 % $

Covered-employee payroll District's net pension liability as a percentage of covered-employee payroll

3,293,073 1,150,791

2,828,543 1,185,562 8,077 10,391,899

Plan fiduciary net position at beginning of year

District's net pension liability at end of year

3,587,191 9,215,633 (4,397,221) 3,493,606

(3, 766.976)

Net change in plan fiduciary net position

Plan fiduciary net position at end of year

3,299,938 $ 9,776,829 (929,789) 653,006 (3.997.213)

Total pension liability at beginning of year

Plan fiduciary net position: Contributions - employer Contributions - employees Other Net investment income Benefit payments, including refunds of member contributions Administrative expense

3,530,934 $ 10,383,721 (227,815)

2015

(4,262,980)

Net change in total pension liability

Total pension liability at end of year

2016

12,726,064

6.66 %

8.753,714

$

810,920

92.75 %

94.18 % $

12.325,486

71.02 %

10.267,53 I

$

12.277,252

83.63 %

Notes to Schedule:

Changes in Assumptions. The change in assumptions amount of $653,006 in 2016 and $3,493,606 in 2015 was primarily the result of changes in demographic assumptions based on a study of firefighters and fire pension funds in Illinois. The change in assumptions amount of $1,448,254 in 2014 was primarily the result of using the entry age cost method. In 2013, the projected unit credit cost method had been used for the actuarial valuation.

46


2014

$

4,557,023 8,401,468 2,655,010 1,448,254 (2.571,284) 14,490,471 119,044,890

$ 133.535.361

$

3,386,334 1,214,057 50 7,571,094 (2,571,284) (98.752) 9,501,499 120,495,462

$ 129,996,961 $

3.538,400

97.35 % $

11.338,333

31.21 %

47


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATIONFIREFIGHTERS' PENSION PLAN LAST TEN CALENDAR YEARS (SCHEDULES TO BE BUILT PROSPECTIVELY)

SCHEDULE OF DISTRICT CONTRIBUTIONS

2017 Actuarially determined contribution

$

Contributions in relation to the actuarially determined contribution

2,863,554

$

2.863,555

Contribution excess

$

Covered-employee payroll

$

Contributions as a percentage of covered-employee payroll

2015

2016 $

$

22.50 %

3,293,073

3.293,073

2,828.543

(1) $

12.726,064

2,719,249

( 109.294) $ 12,325,486 22.95 %

$

12,277,252 26.82 %

NOTES TO SCHEDULES Valuation Date. Actuarially determined contribution rates are calculated as of December 31, 2017. Methods and Assumptions used to Determine Contribution Rates. Actuarial cost method

Entry age normal

Amortization method

Level percentage of payroll

Remaining amortization period

24 years

Asset valuation method

Market value

Inflation

2.50%

Salary increases

4.5% - 32.3%

Investment rate of return

7.0%, compounded annually, net of pension investment expense, including inflation

Retirement age

Based on the assumption study prepared by Lauterbach & Amen, LLP in 2016 capped at age 65

Mortality

Based on the assumption study prepared by Lauterbach & Amen, LLP in 2016. The table combines observed experience of Illinois Firefighters with the RP-2014 mortality table for blue collar workers

48

plan


2014 $

3,386,334

3.386,334 $ ~

11,338 ,333 29.87 %

49


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION ILLINOIS MUNICIPAL RETIREMENT FUND LAST TEN CALENDAR YEARS (SCHEDULE TO BE BUILT PROSPECTIVELY)

SCHEDULE OF CHANGES IN THE DISTRICT'S NET PENSION LIABILITY

2017 Total pension liability: Service cost Interest on the total pension liability Differences between expected and actual experience Changes in assumptions Benefit payments, including refunds of employee contributions

$

Net change in total pension liability Total pension liability at beginning of year Total pension liability at end of year Plan fiduciary net position: Contributions - employer Contributions - employees Net investment income Benefit payments, including refunds of employee contributions Other

2016

2015

225,691 $ 542,305 200,432 (277,132)

230,787 $ 523,546 (331,605) (10,631)

224,261 464,765 241,876 10,077

(190.936)

(146,570)

(155.769)

500,360

265,527

785,210

7.213.356

6,947,829

6,162.619

$

7,713,716

$

7.213,356

$

6,947,829

$

223,567 101,048 1,090,995

$

173,065 92,824 428,716

$

166,856 95,217 31,812

(190,936) (41,219)

(146,570) (269,892)

(155,769) (252, 130) (114,014)

Net change in plan fiduciary net position

1,183,455

278,143

Plan fiduciary net position at beginning of year

6 473 384

6,195.241

6,309,255

Plan fiduciary net position at end of year

$

7.656.839

$

6.473.384

$

6.195.241

District's net pension liability at end of year

$

56 877

$

739,972

$

752,588

Plan fiduciary net position as a percentage of total pension liability

99.26 %

$

Covered-employee payroll District's net pension liability as a percentage of covered-employee payroll

2245.514

2.53 %

50

89.74 %

$

2.062,750

35.87 %

89.17 %

$

2,096,190

35.90 %


2014

$

221,978 391,555 302,650 217,586 (161 , 790) 971,979 5.190 640

$

6.162,619

$

161,479 87,658 357,612 (161,790) 45.482 490,441 5.818.814

$

$

6.309,255

( 146·,636)

102.38 %

$

1,986,61 I

(7 .38}%

51


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION ILLINOIS MUNICIPAL RETIREMENT FUND LAST TEN CALENDAR YEARS (SCHEDULE TO BE BUILT PROSPECTIVELY)

SCHEDULE OF DISTRICT CONTRIBUTIONS

Actuarially determined contribution

214,222

$

$

223,567

Actual contribution Contribution excess

$

Covered-employee payroll

$

173,065

2,245,514

9.96 %

$

173 065

(9,345) $

Actual contribution as a percentage of covered-employee payroll

2015

2016

2017

$

166,856 166.856

$ 2.062,750

8.39 %

$

2.096.190

7.96 %

NOTES TO SCHEDULES

Valuation Date. Actuarially determined contribution rates are calculated as of December 31 each year, which is 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions used to Determine Contribution Rates. Actuarial cost method

Aggregate entry age normal

Amortization method

Level percentage of payroll, closed

Remaining amortization period

27-year closed period

Asset valuation method

5-Year smoothed market; 20% corridor

Wage growth

3.5%

Price inflation

2.75%, approximate; no explicit price inflation assumption is used in this valuation.

Salary increases

3.75% to 14.5%, including inflation

Investment rate of return

7.5%

Retirement age

Experience-based table of rates that are specific to the type of eligibility condition; last updated for the 2014 valuation pursuant to an experience study of the period 2011-2013.

52


2014 $

159,922 161 479

$ $

(1,557) 1.986.611

8.13 %

53


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION ILLINOIS MUNICIPAL RETIREMENT FUND LAST TEN CALENDAR YEARS (SCHEDULE TO BE BUILT PROSPECTIVELY)

Mortality

For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustments that were applied for nondisabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience.

Other information:

Notes

There were no benefit changes during the year.

54


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION RETIREE HEALTH INSURANCE PLAN DECEMBER31, 2017

SCHEDULE OF FUNDING PROGRESS

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

201 7 2014 2012 2011 2009 2007

Actuarial Value of Assets

Actuarial Accrued Liabilitv

Unfunded Actuarial Accrued Liability (UAAL)

$ 7,988,176 8,563,418 7,265,203 5,774,041 3,922,615

$ 25,875,425 22,721,458 19,979,857 20,405,022 18,392,257 16,806,907

$ 17,887,249 14,158,040 12,714,654 14,630,981 14,469,642 16,806,907

Funded Ratio

Covered Pavroll

UAAL as a Percentage of Covered Payroll

30.87 37.69 36.36 28.30 21.33 0.00

$ 17,399,466 17,102,343 15,925,073 16,106,119 14,020,649 11,633,789

102.80 82.78 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 31 , 2017 $ December 31 , 2016 December 31 , 2015 December 3 I , 2014 December 3 I , 2013 December 3 I, 2012

1,913,745 1,313,054 1,313,054 1,234,355 1,234,355 1,291,437

55

Percentage Contributed 31.35 0.00 0.00 0.00 100.05 105.21


COMBINING AND INDIVIDUAL FUND AND FINANCIAL STATEMENTS AND SCHEDULES


MAJOR GOVF.RNMENT AL FUNDS


GENERAL FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF GENERAL FUND BALANCE SHEET ACCOUNTS DECEMBER 31, 2017 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2016

Emergency Rescue

Tort Liability

Cornorate

Totals

2017

2016

$ 12,193,709 885,000

$ 13,282,474

19,893,635 414,049 1,013,552

$ 34.672.474

Eliminations

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

$ 12,193,709 885,000

$

15,404,770 421,670 759,154 24,013 722

$

$

2,741,796

2,016,455

2,199,724

1,150,994

181 982

131

20,163,021 421,670 759,154 24,013 182.835

$ 3,167,580

$ (3J50,7 l8) $ 34.629 .402

$

$

$ 29.689.038

$

5. 123,502

$

$

57,137 45,028

(3,350,718)

68 764

LIABILITIES Accounts payable Accrued expenditures Due to other funds Total liabilities

112,427 295,899 8.174,586

8,734 45,028

$ (3.350.718)

178,298 385,955 4,823,868

(3.350.718)

5.388.121

5.827.681

$

195,059 373,453 5,259.169

8,582,912

102.165

53.762

15.393.485

2.739.788

2.014.979

20.148.252

19.893.635

722 1,165,388 59,615 4.486.916

181,982 1,832,995 266,572

131 664,249 434,459

182,835 3,662,632 760,646 4.486.916

68,764 2,697,454 629,168 5,555,772

5.712.641

2.281.549

1.098.839

9.093.029

8.951.158

~ 2916891038

~ 511231502

~ 3.1671580

~ ,313501718) $ 34.629.402

$ 341672.474

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

56


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF GENERAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2017 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2016

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 Contractual: Insurance Professional services Other Debt service: Principal Interest

$

2,400,400 3,732 18,517

$

2,063,825 104,639

Totals 2017

$

16,062,309

2,465,845

2.179,170

20.707.324

20.441.602

7,946,739 146,152 213,326 1,789,264 2,863,555

1,220,867 9,849 57,922 19,926

1,350,356 45,519 3,216 266,634

10,517,962 201,520 274,464 2,075,824 2,863,555

9,573,656 196,553 65,908 1,966,003 2,828,543

54,800

17,055 95,600 10,303 55,531 7,194

57,174 543,095 439 87,426 226,892 23,980

76,978 325,782 314 52,100 474,990 25,807

46,080 10,363

1,006,865 387,289 88,195

1,014,198 319,675 32,475

680,000 1,030,773

595,000 1.042.078

1.907.851

20.065.453

18.590,060

271,319

641,871

1,851,542

(500,000)

{1.206.000)

10,357 14,448

1,006,865 183,479

15,579,089

2,5 78,513

483,220

(112,668)

(500,000) (16,780)

Net change in fund balances Fund balances at beginning of year

(112,668)

5.729,421

$

19,338,433 631,226 240,494 11,438 24,777 195,234

43 196

680,000 1.030.773

Other financing uses: Transfers out

$

2,432 4,181 4 093

157,730 77,832

Excess (deficiency) ofrevenues over expenditures

2016

19,473,942 472,150 529,886 8,108 13,939 209,299

40,119 392,695 439 66,766 156,913 16,786

Total expenditures

Fund balances at end of year

15,009,717 363,779 511,369 5,676 9,758 162.010

Emergency Rescu

Tort Liability

Como rate

517121641

2,394,217

i

21281,549

57

~

271,319

141,871

645,542

827,520

8,951,158

8,305,616

110981839

1

91023 .029

~

8.951.158


CORPORATE FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CORPORATE FUND BALANCE SHEET DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2016

2017

2016

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

$

Total assets

$

29,689,038

$

30,062,582

$

112,427 295,899 8,174.586

$

163,422 298,970 8,523.583

12,193,709 885,000

$

13,282,474

15,347,186 414,049 1,013,552

15,404,770 421,670 759,154 24,013 722

5 321

LIABILITIES Accounts payable Accrued expenditures Due to other funds Total liabilities

8.582.912

8.985,975

15.393.485

15.347.186

722 1,165,388 59,615 4.486.916

5,321 100,448 67,880 5.555.772

5,712,641

5,729.421

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

58

$

2916891038

i

3010621582


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CORPORATE FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2017 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016

2016

2017

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 Contractual: Professional services Other Debt service: Principal Interest Total expenditures and encumbrances

$

15,320,217 329,090

Final Budget

$

Actual

$

15,009,717 363,779 511,369 5,676

Variance with Final Budget

$

(310,500) $ 34,689 (86,813) 332

Actual

5,344

15,320,217 329,090 598,182 5,344

9,406 180 439

9,406 180 439

9,758 162.010

352 (18.429)

20,873 156.378

15.844.496

16.442.678

16,062,309

(380.369)

16.027,699

7,623,839 153,348 109,948 1,785,889 2,863,554

7,807,839 153,348 429,948 1,785,889 2,863,554

7,946,739 146,152 210,415 1,789,264 2,863,555

(138,900) 7,196 219,533 (3,375) (I)

7,565,803 148,780 56,361 1,590,860 2,828,543

47,029 277,710 1,924 68,195 243,328 17,316

47,029 555,892 1,924 68,195 243,328 17,316

40,119 387,794 439 66,872 156,354 16,786

6,910 168,098 1,485 1,323 86,974 530

64,555 213,516 314 56,482 442,639 21,740

168,170 98,791

168,170 98,791

157,730 77,832

10,440 20,959

155,166 27,531

680,000 1,030.773

680,000 1.030.773

680,000 1.030,773

15,169,814

15,951,996

15,570,824

59

15,042,077 558,241 240,494 9,636

595,000 1,042,078

381,172

14,~09,368


2017 Final Budget

Original Budget Excess of revenues over expenditures and encumbrances

2016 Actual

674,682

490,682

(250.000)

{250,000)

424,682

240,682

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

5.661.541

5,661.541

5,661.541

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

6,086,223

5,902,223

5,653,026

Other financing uses: Transfers out Net change in fund balances

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

Variance with Final Budget

491,485

803

1,218,331

(500.000)

(250.000)

(1.206.000)

(8,515)

(249,197)

610861223

~

51902,223 ~

60

5,712,641

12,331

5,649,210

(249,197)

59.615

~

Actual

59 615

~

(189,582l ~

5,661,541

67 880

5!729,421


TORT LIABILITY FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS TORT LIABILITY FUND BALANCE SHEET DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2016

2016

2017 ASSETS Property taxes receivable Due from other funds Prepaid items Total assets

$

2,741 ,796 2 199 724 18 1 982

$

2,395,348 2,402,746 63.443

$

5,123,502

$

4,86L537

$

57,137 45.028

$

19,215 52,757

LIABILITIES Accounts payable Accrued expenditures Total liabilities

102,165

71.972

2,739,788

2.395.348

181,982 1,832,995 266.572

63,443 2,111,130 219 644

2.281,549

2.394,217

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

FUND BALANCES Nonspendable Restricted Assigned Total fund balances Total liabilities, deferred inflows ofresources, and fund balances

$

61

5,123,502

$

4,861.537


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, 2017 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016 2017 Original Budget Revenues: Property taxes Grant proceeds Charges for service Other

$

Total revenues Expenditures and encumbrances: Current: Personnel: Compensation and salaries Payroll taxes Education and seminars Health insurance Commodities: Operational supplies Protective clothing Repairs and maintenance Contractual: Insurance Professional services Total expenditures and encumbrances Excess (deficiency) of revenues over expenditures and encumbrances

2,361,007

Final Budget

$

2016 Actual

$

Actual

$

3,168,148

39,393 $ 517 (368) (ll,]01)

4,100 54.297

2,361,007 18,000 4,100 54 297

2 419.404

2.437 404

2,465,845

28 441

3.209.352

1,234,543 9,135 54,180 23,844

1,266,543 9,135 54,180 23,844

1,220,867 9,849 56,440 19,926

45,676 (714) (2,260) 3,918

1,313,242 23 ,651 32,691 257,299

60,335 10,984 23,425

60,335 10,984 23,425

20,088 10,524 14,448

1,127,200 128.850

I, 127,200 146 850

1,006,865 183 479

120,335 (36.629)

1,014,198 133 307

2.672,496

2.722.496

2.542.486

180 010

2.848,1 3 1

208,451

361,221

(253,092)

2,400,400 18,517 3,732 43 196

Variance with Final Budget

42,742 9,975 21 ,026

40,247 460 8,977

(76,641)

(285,092)

4,700 36,504

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

2,343.004

2,343,004

2.343,004

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

2,089,912

2,057,912

2,266,363

208,451

2,343 ,004

15 186

15 I 86

5 I 213

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

$

2,089,912

$

2.057,912

62

$

2.281.549

1.981,783

$

223.637

$

2.394,217


EMERGENCY RESCUE FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS EMERGENCY RESCUE FUND BALANCE SHEET DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2016

2016

2017 ASSETS Property taxes receivable Due from other funds Prepaid items Total assets

$

2,016,455 1,150,994 131

$

2,151,101 1,044,234

$

3.167.580

$

3.195.335

$

8,734 45,028

$

12,422 2 1 726 182,566

LIABILITIES Accounts payable Accrued expenditures Due to other funds Total liabilities

53 762

216 714

2.014.979

2.151,101

131 664,249 434 459

485,876 341 644

1.098.839

827,520

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

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

$

63

3,167.580

$

3,195.335


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, 2017 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016

2017 Original Budget

Revenues: Property taxes Charges for service Investment income Personal property replacement taxes 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 Contractual: Professional services Other Total expenditures and encumbrances

$

1,680,342 99,345 2,144

Final Budget

$

1,680,342 99,345 2,144

2016 Actual

$

2,063,825 104,639 2,432

Variance with Final ~udget

$

383,483 5,294 288

Actual

$

I, 128,208 68,285 1,802

3,773 64.249

3,773 64 249

4,181 4.093

1.849.853

1.849.853

2.179.170

1,352,730 43,004 34,541 269,719

1,364,730 43,004 34,541 269,719

1,350,356 45,519 3,070 266,634

14,374 (2,515) 31,471 3,085

694,611 24,122 6,275 117,844

19,204 85,265 10,761 63,474 6,945

19,204 85,265 10,761 63,474 6,945

17,055 119,755 10,185 54,816 7,194

2,149 (34,490) 576 8,658 (249)

12,423 64,743 4,257 36,216 4,067

40,573 11.146

40,573 11.146

46,080 IO 363

(5,507) 783

31,202 4 944

1,937,362

1,949,362

1,931,027

64

408 (60,156) 329.317

18 335

3,904 2 352 1.204.551

1,000,704


2017

Final Budget

Original Budget

2016

Actual

Variance with Final Budiret

Actual

Excess (deficiency) ofrevenues over expenditures and encumbrances

(87,509)

(99,509)

248,143

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

818.793

818 793

818 793

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

731,284

719,284

1,066,936

347,652

818,793

31.903

31 903

8.727

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

~

731,284

~

719,284

65

~

1,098,839

347,652

203,847

614 946

$

379,555

$

827.520


AMBULANCE FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS AMBULANCE FUND BALANCE SHEET DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2016

2Q16

2017 ASSETS Receivables: Property taxes Accounts Due from other funds Prepaid items Total assets

$

8,748,723 1,692,204 4,823,868 1 335

$

8,487,340 1,546,890 5,238,263

$

15,266,130

$

15,272.493

$

94,659 257.304

$

16,453 279 390

LIABILITIES Accounts payable Accrued expenditures Total liabilities

351 963

295 843

8.742.315

8.487,340

1,335 2,318 6,168,199

33,728 6.455,582

6.171.852

6.489.310

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

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

66

$

15.266.130

~

15,272.493


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS AMBULANCE FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2017 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016

2017 Original Budget

Revenues: Property taxes Charges for service 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 Commodities: Heat, light and power Operational supplies Postage and printing Protective clothing Repairs and maintenance Telephone Contractual: Billing services Professional services Other Total expenditures and encumbrances

$

8,567,299 3,651,099 17,512

Final Budget

$

8,567,299 3,651,099 17,512

2!,!16 Actual

$

8,413,922 3,689,755 18,916

Variance with Final Budg-et

$

(153,377) $ 38,656 1,404 1,702 3 423

Actual

8,584,400 3,674,758 17,483 37,873 36 476

30,821 36 201

30,821 36 201

32,523 39 624

12,302,932

12,302,932

12,194,740

(108, 192)

12,350,990

7,831,383 323,827 84,844 1,797,222

8,001,383 323,827 84,844 1,797,222

7,812,704 335,000 30,687 1,736,604

188,679 (11,173) 54,157 60,618

7,392,293 260,840 24,563 1,585,795

154,797 283,969 6,304 62,960 357,276 56,739

154,797 283,969 6,304 62,960 357,276 56,739

133,403 615,329 1,464 58,689 437,323 55,953

21,394 (331,360) 4,840 4,271 (80,047) 786

116,745 224,473 571 54,681 341,111 39,449

110,000 328,201 341,063

110,000 328,201 341.063

129,945 367,123 287,959

(19,945) (38,922) 53 104

87,000 300,203 203,374

11,738.585

11,908,585

12.002,183

(93.598}

10,631,098

67


2016

2017 Final Budget

Original Budget Excess of revenues over expenditures and encumbrances

Actual

Variance with Final Budget

564,347

394,347

192,557

(201,790)

(279.430)

(279.430)

(500,000)

(220.570)

284,917

114,917

(307,443)

(422,360)

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

6,422.159

6,422,159

6,422,159

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

6,707,076

6,537,076

6,114,716

Other financing uses: Transfers out Net change in fund balances

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

6,707,076

$

6,537,076

68

$

6,171,852

1,719,892

1,719,892

4.702.267

(422,360)

57 136

57 136

$

Actual

$

(365.224l $

6,422,159

67 151

6.489,310


CAPITAL PROJECTS FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CAPITAL PROJECTS FUND BALANCE SHEET DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2016

2016

2017 ASSETS Cash and investments

$

2.060.654

$

2.028.254

$

12,538 759 154

$

356,519 1.013,552

LIABILITIES Accounts payable Due to other funds Total liabilities

771,692

1,370,071

1.288.962

658.183

FUND BALANCES Assigned

$

Total liabilities and fond balances

69

2,060a654

~

2,0281254


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, 2017 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016

2017

Original and Final Bud Ket Revenues: Investment income

$

Expenditures and encumbrances: Debt service: Principal Interest Capital outlay

2016

Variance with Final BudKet

Actual

$

904

$

904

Actyal

$

1,008

665 894

115,235 26,166 1,193,828

(115,235) (26,166) (527.934)

111,716 29,685 911 857

665 894

1.335.229

(669.335)

1,053,258

(665,894)

(1,334,325}

(668.431}

( 1.052,250)

280,000 529.430

834,198 20,000 1.020.906

834,198 (260,000) 491 476

809.430

1.875.104

1.065.674

Net change in fund balances

143,536

540,779

397,243

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

658 183

658 183

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

801,719

1,198,962

397,243

90.000

90.000

Total expenditures and encumbrances Deficiency of revenues over expenditures and encumbrances Other financing sources: Proceeds from note payable Proceeds from sale of capital assets Transfers in Total other financing sources

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

$

801,7 19

70

$

1.288,962

( 1,052,250)

1.710.433

$

487.243

658, 183

~

6581183


NONMAJOR GOVERNMENTAL FUND


DEBT SERVICE FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEBT SERVICE FUND BALANCE SHEET DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR DECEMBER31, 2016

2016

2017 ASSETS Due from other funds

$

$

20.906

$

$

20,906

FUND BALANCES Assigned

71


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEBT SERVICE FUND SCHEDULE OF EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2017 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016

2016

2017

Original and Final Budget Expenditures: Debt service: Principal Interest

$

Actual

$

Variance with Final Budget

Actual

$

$

Total expenditures

1,206,400

Other financing sources (uses): Transfers in Transfers out

1,206,000

Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year

1,160,000 46 400

20,906 $

20,906

72

(20,906)

(20,906)

(20,906)

(20,906)

1.206.0QO_

(20,906)

(20,906)

(400)

20.906

$

21 306

ii

(20,906) $

20,906


FJDUCJARY FUNDS


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF NET POSITION - FIDUCIARY FUNDS DECEMBER 31, 2017

Retiree Health Insurance

Firefighters' Pension

Total

ASSETS Cash Accrued interest receivable Investments: Debt issues: Corporate Foreign Municipal Equities: Domestic Foreign Mutual funds: Bonds Equities Other pooled fixed income investments Other pooled equity investments Separate account U.S. government agency obligations U.S. Treasury notes Prepaid items

$

6,618,575 343, 159

$

23,297,964 2,505,179 1,299,862

60,752

710,742

10,519,358 115,603

6,679,327 343, 159

24,008,706 2,505,179 1,299,862 10,519,358 115,603

78,648,549

1,453,192 5,113,483 307,757 342,250

1,453, 192 83,762,032 307,757 342,250 13,152,090 3,967,119 18,630,120 15.230

7,988.176

167' 100,984

13,152,090 3,967,119 18,630,120 15.230

Total assets

$

159.112,808

LIABILITIES Accounts payable Due to other fund Total liabilities

42,646 24.013

42,646 24.013

66.659

66,ยง59 )

NET POSITION Net position restricted for: Pension benefits Other post-employment benefits

159,046,149

Total net position

$ 159.046.149

73

~

7,988.176

159,046, 149 7,988.176

71988,176

~ 167 ,034,325


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF CHANGES IN NET POSITION - FIDUCIARY FUNDS YEAR ENDED DECEMBER 31, 2017

Retiree Health Insurance

Firefighters' Pension Additions: Contributions: Employer Plan members

$

2,863,555 1,223,282

$

600,000

Total

$

3,463,555 1.223.282

4.086.837

600.000

4,686,837

17,886,799 (268.627)

802,213 (26.434)

18,689,012 (295,061)

Net investment income

l 7,618, 172

775 779

18.393,951

Total additions

21,705.009

1.375,779

23.080,788

4,262,980 112,531

814,386 1,400

S,077,366 113.931

4.375.S 11

815,786

5.191.297

17,329,498

559,993

17,889,491

141.716,651

7.428.183

149 ,144.834

7.988,176

$ 167,Q34,32S

Total contributions Investment income Less investment expense

Deductions: Benefit payments Administrative expenses Total deductions Increase in net position Net position at beginning of year Net position at end of year

$ 159,046, 149

74

$


FIREFIGHTERS' PENSION FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FIREFIGHTERS' PENSION FUND STATEMENT OF NET POSITION DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2016

2017

2016

ASSETS

Cash Accrued interest receivable Investments: Debt issues: Corporate Foreign Municipal Equities: Domestic Foreign Mutual funds: Equities Separate account U.S. government agency obligations U.S. Treasury notes Prepaid items

$

Total assets

6,618,575 343, 159

$

7,741,407 265,818

23,297,964 2,505,179 1,299,862

18,455,989 2,481,688 1,107,448

10,519,358 115,603

9,759,768 110,849

78,648,549 13,152,090 3,967,119 18,630, 120 15.230

69,368,449 12,175,698 3,672,738 16,624,0,15 14.372

159.112.808

141. 778,239

42,646 24 013

61,588

66 659

61 588

$ 159,046. 149

$ 141.716.651

LIABILITIES

Accounts payable Due to other fund Total liabilities

NET POSITION

Net position restricted for pension benefits

75


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGES IN NET POSITION YEAR ENDED DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016

2017 Additions: Contributions: Employer Plan members Other

$

2,863,555 1,223,282

2016

$

2,828,543 1, 185,562 8.077

4,086,837

4,022,l 82

17,886,799 (268,627)

10,619,771 (227,872)

Net investment income

17,618.172

10,391,899

Total additions

21,705,009

14,414,081

4,262,980 112 531

3,997,213 100.280

4,375.511

4.097,493

17,329,498

10,316,588

141. 716,651

131,400,063

$ 159,046.149

$ 141,716,651

Total contributions Investment income Less investment expense

Deductions: Benefit payments Administrative expenses Total deductions Increase in net position Net position at beginning of year Net position at end of year

76


RETIREE HEALTH INSURANCE FUND


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RETIREE HEALTH INSURANCE FUND STATEMENT OF NET POSITION DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2016

2017

2016

ASSETS Cash Investments: Debt issues: Corporate Mutual funds: Bonds Equities Other pooled fixed income investments Other pooled equity investments U.S. government agency obligations

$

Total assets

60,752

$

58,754

710,742

657,133

1,453,192 5,113,483 307,757 342,250

1,819,159 2,581,175 1, 181,247 708,729 421.986

$

7.988,176

$

7.428.183

$

72988!176

·~

7,4281183

NET POSITION Net position restricted for other post-employment benefits

77


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RETIREE HEALTH INSURANCE FUND STATEMENT OF CHANGES IN NET POSITION YEAR ENDED DECEMBER 31, 2017 WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2016

2017 Additions: Contributions: Employer

$

Investment income Less investment expense Net investment income Total additions Deductions: Benefit payments Administrative expenses Total deductions Increase (decrease) in net position Net position at beginning of year

600,000

2016

$

802,213 (26,434)

442, 118 (15,063)

775 779

427,055

1 375 779

427 055

814,386 1 400

823,422 3.500

815.786

826.922

559,993

(399,867) 7,828.050

7.428. 183

Net position at end of year

$

78

7.988,176

~

7,428,183


STATISTICAL SECTION


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATISTICAL SECTION DECEMBER 31, 2017

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 Net Position by Component 79-80 81-82 Changes in Net Position 83-84 Fund Balances of Governmental Funds 85-86 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 Schedule of Assessed Value and Estimated Actual Value of Taxable Property 87-88 Schedule of Assessed Valuations, Tax Rates, Extensions and Collections 89-90 Property Tax Rates - Direct and Overlapping Governments 91-92 Principal Property Taxpayers 93-94 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 Outstanding Debt by Type 95-96 Ratios of General Obligation Debt Outstanding 97 Direct and Overlapping Governmental Activities Debt 98 Legal Debt Margin Information 99-100 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 101-102 Demographic and Economic Statistics Principal Employers 103 - 104 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 105-106 Full-time Equivalent District Employees by Type Operating Indicators by Function 107-108


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

2017

2015

2016

2014

Governmental activities: Net investment in capital assets

$

Restricted Unrestricted Total governmental activities net position (deficit)

$

16,316,884

$

16,986,770

$

15,620,884

$

14,581,762

3,662,632

2,696,270

2,415,372

1,962,414

(22 ,376,726)

(22,069,217)

(20,148.296)

9.264.348

(2,397 ,2 10) $

(2,386 , 177) $

(2 .1 12,040) $

25,808,524

Note: The District adopted GASB 68 during 2015. Prior years are not restated to reflect retrospective adoption of the statement.

79


2013

$

$

13,71 9,9 19

2012

$

12,577,376

2011

$

12,313,750

2010

$

7,904,930

2009

$

10,455,243

2008

$

9286733

l , 96,258

2, 118,736

2,252 12 1

3, 125 89 1

3,547 36 1

3,3 10,447

9,357.299

9.980 .960

9967 41 7

13 ,11 6.667

10,448,36 1

10,227 ,394

25.073,476

$

24.677.072

$

24.533 ,288

$

24,147.488

80

$

24.450.965

$

22.824574


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CHANGES IN NET POSITION LAST TEN FISCAL YEARS

Expenses Governmental activities: Fire and rescue Emergency medical service General government Interest expense

2017

2016

2015

2014

$ 15,562,510 12,825,268 3,467,056 1 079.167

$ 16,145,307 12,703,385 3,099,171 1,119,872

$ 15,789,071 12,633,953 3,028,790 1,178,919

$ 14,474,684 11,756,488 2,805,863 1.226,969

32,934,001

33,067,735

32,630,733

30.264,004

500,384 3,449,542 211,979 529,886

549,943 3,527,863 228,178 240,494

438,758 2,920,777 217,282 10,006

406,948 2,795,513 177,663 78,912

4,691,791

4,546.478

3.586,823

3.459,036

(28.242.210)

(28,521.257)

(29,043,910)

(26.804,968)

27,887,864 46,462 27,928 268,923

27,922,833 62,650 29,929 231,708

27,391,827 43,937 26,420 285,166

27,304,943 43,351 25,432 166,290

28.23 1,177

28,247,120

27,747,350

27,540,016

Total primary government expenses Program revenues Governmental activities: Charges for service: Fire and rescue Emergency medical service General government Operating grants and contributions Capital grants and contributions Total primary government program revenues Net (expense)/revenue Total primary government net expense General revenues and other changes in net position Governmental activities: Taxes: Property Personal property replacement Investment income Other income Total primary government general revenues Change in net position Total primary government

$

(11,033) $

(274,137) $ ( 1,296,560) $

735,048

Note: The District adopted GASB 68 during 2015. Prior years are not restated to reflect retrospective adoption of the statement.

81


2013

2012

2011

2010

2009

2008

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

$ 14,444,780 11,520,507 3,729,040 204,252

$ 13,933,133 10,759,192 3,855,197 251 746

$ 13,918,185 10,831,850 3,233,634 286,664

$ 11,504,136 11,292,593 3,289,608 323,136

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

29,458,383

29,898,579

28,799,268

28,270,333

26,409,473

24,619,246

363,134 2,789,402 165,695 64,944 20 000

347,549 2,237,371 216,431 164,190

354,354 2,053,625 151,561 79,036

315,735 2,018,902 125,329 169,462

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

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

3.403.175

2,965,541

2.638.576

2.629.428

2.599.248

l,732.925

(26.055,208)

(26,933,038)

(26, 160,692)

(25,640,905)

(23,810,225)

(22,886,321)

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

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

25,919,259 49,442 47,636 530,155

24 473,283 48,831 6l,362 753,952

25,099,514 45,287 72,820 218,995

24,404,824 53,682 378,131 77 044

26.451.612

27,248.015

26.546,492

25,337,428

25.436.616

24.913,681

$

396,404

$

314,977

$

385,800

$

(303,477) $

82

1,626,391

$

2,027.360


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FUNDBALANCESOFGOVERNMENTALFUNDS LAST TEN FISCAL YEARS

2017 General Fund: Reserved Unreserved Nonspendable Restricted Assigned Unassigned Total General Fund

All other governmental funds: Reserved Unreserved Nonspendable Restricted Assigned

Total all other governmental funds

Note:

$

2016 $

182,835 3,662,632 760,646 4.486.916

$

9,093,029

$

$ 68,764 2,697,454 629,168 5.555.772

$

8,951,158

$ 1,335 2 3 LS 7 45 7 161

$

7.460.814

2015 $

$

8,305.616

$

7,168,399

177,149 1,937,709 375,449 6.271.207

108,434 2,176,794 455,190 5,565,198

33,728 7,134,671

$

2014

$

$

24,705 6.651.877

20,130 6.923.098

$

8.761,514

6.943228

$

6.676.582

The District began to classify fund balances in accordance with the requirements of GASB 54 with the year ended December 31, 20 l 0.

83


2013 $

2012 $

157,416 1,681,296 1,197,863 5.792.567

~

8,829,142

$

~

913051067

$

7,420,904

~

91683 1620

$

8.101.238

~

91011,439

$

6,717,040

$

6!717,040

2008

2009 $

2,158,895 8,138,241

$

2,009,745 7,746,835

$

I0.29711 36

~

9!756l580

$

1,220,121 9,509,945

$

2,720,495 9,732,715

~

1017301066

~

1214531210

341,371 1,798,986 538,714 6.332.368

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

8,101.238

~

2010 $

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

22,420 7.398,484

~

2011

10.389.995

$

10,389,995

84


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

2017 Revenues: Property taxes Charges for service Grant proceeds Investment income Personal property replacement taxes Intergovernmental Other

$

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 I debt certificate issuance costs and fees Capital outlay Total expenditures

27,887,864 4,161,905 529,886 27,928 46,462

$

$

27,391,827 3,576,817 9,506 26,420 43,937

2014 $

27,304,943 3,380,124 77,662 25,432 43,351

231 710

285.666

167.540

32.902,968

32,793,600

31 334 173

30.999,052

18,330,666 536,520 306,402 3,812,428 2,863,555

16,965,949 457,393 90,588 3,551,798 2,828,543

16,761,793 451,791 79,986 3,129,463 3,293,073

17,369,632 448,998 58,366 2,759,945 3,386,334

190,577 1,166,137 1,903 146,770 663,240 79,933

193,723 550,086 885 91,931 780,135 65,256

118,681 625,399 7,385 155,085 627,729 60,650 116,931

125,532 672,367 7,453 213,293 624,681 57,241 128,406

129,945 1,006,865 755,783 376,154

87,000 1,014,198 618,507 235,851

106,033 1,131,280 735,902 370,071

144,013 1,027,019 804,890 353,277

795,235 1,056,939

1,866,716 1,118,163

1,743,305 1,174,494

1,534,998 1,222,763

1.103.828

1 406.165

834.374

2.027.616

33.322.880

31,922.887

31,523,425

32.966,824

(419,912)

Other financing sources (uses): Installment contract Proceeds from debt issuance/note payable Proceeds from sale of capital assets Transfers in Transfers out

27,922,833 4,305,984 240,494 29,929 62,650

2015

248.923

Excess (deficiency) of revenues over expenditures

870 713

(189,252)

(1,967 I 772)

1,155,822 834,198 20,000 1,020,906 (1,020,906)

Total other financing sources (uses) Net change in fund balances

2016

1,206,000 (1,206,000)

1,706,000 (1,706,000)

854.198

$

434.286

Debt service as a percentage of non-capital expenditures

5.60 %

85

1,125,000

(I , 125 ,000) 1.155.822

$

870.713

= 9.69 %

$

( 189.252) $

= 9.49 %

(8 1 l.950)

8.90 %


2013

$

2011

2012

2010

2009

185.746

551 891

530 155

753.952

762 922

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

29,854,787

30,213.556

29,185.068

27,966,856

28 579 791

26.999,820

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

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

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

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

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

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

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

1,325,000 1,188,476

1,858,330 258,440

850,554 298,333

799,116 310,844

1 037 187

860,000 198,850 452,153 265 701

3.516.503

2.103.439

4 670 961

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

31011.046

55.922,911

32,185 842

29,592,624

30.668.379

28,175.030

(1,156,259)

(25.709.355)

(3.000.774)

(1,625.768)

(2,088,588)

(1, 175,210)

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

$

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

$

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

$

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

$

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

2,812,425 (2,812,425)

130,000 (130.000)

2,575,975 (2.575.975)

8.39 %

1.005.645

2.71 %

$

1,855,000 (1,855,000)

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

906.000

26,7 15,000 (1. 156,259) $

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

906 000

26,715,000

$

2008

$

(3,000.774) $

( 1,625,768) $

( 1.182,588) $

7.38 %

4.18 %

4.27 %

86

( 1. 175,2 10)

3.82 %


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

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

$ 1,523,980,712 1,451,557,819 1,493, 185, 102 1,535,459,711 1,624,500,909 1, 761,730,402 2,061,365,996 2,060,640,966 1,886, 724,268 1,708,768,401

$ 690,061,503 657,268,274 676, 117, 190 597,040,566 631,662,905 685,022,544 801,531,367 801,249,450 869,929,570 709,458,743

Assessed Value Industrial Property

$

21,009,497 20,011,080 20,584,951 114,982,236 121,650,047 131,926,418 154,364,500 154,310,206 183,446,572 166,868,345

Source: Office of the Cook County Assessor

87

Farm Property

$

332,086 316,305 325,376 349,582 369,854 401,097 469,316 469,151 787,568 737,880

Railroad Propertv

$

495,675 472,119 485,658 386, 107 408,498 443,006 518,352 518, 170 407,715 354,862

Total Assessed Value

$ 2,235,879,4 73 2, 129,625,597 2, 190,698,277 2,248,218,202 2,378,592,213 2,579,523,467 3,018,249,531 3,017, 187,943 2,941,295,693 2,586, 188,231


Estimated Actual Value

Total Direct Rate

$ 8,988,235,481 8,561,094,900 8,806,607,074 9,037,837, 172 9,561,940,696 I 0,369,684,33 7 12,133,363,115 12, 129,095,531 11,824,008,686 I 0,396,4 76,689

$ 1.2915 1.3427 1.2693 1.2374 1. 1263 1.0497 0.8782 0.8361 0.8507 0.9502

88


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS SCHEDULE OF ASSESSED VALUATIONS, TAX RATES, EXTENSIONS AND COLLECTIONS DECEMBER31, 2017

Assessed valuation ( 1)

2016 (2)

2015

2014

2013

$ 2.235,879,473

$ 2,129,625 ,597

$ 2..190,698,277

$ 2,248,2 18,202

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

0.4742 0.3776 0.1097 0.0000 0.2081 0.0083 0.0173 0.0014 0.0949

0.5000 0.4000 0.1509 0.0000 0.2107 0.0085 0.0179 0.0015 0.0532

0.4729 0.3880 0.1439 0.0000 0.1943 0.0069 0.0161 0.0014 0.0458

0.4590 0.3686 0.1418 0.0000 0.1989 0.0068 0.0158 0.0014 0.0451

1.2915

1.3427

1.2693

1.2374

10,648,128 8,518,502 3,213,600 0 4,487,017 180,250 381, 100 30,900 1 133 000

$

$

28,592,497

$

27,806,529

$

27.940,928

27,749,469

$

27,556,585 138 395

$

27,227,022 398.086

$

26,987,031 226,278

27.749,469

$

27,694,980

$

27,625 ,108

$

27.213,309

10,602,540 8,442,680 2,452,759 0 4,652,277 185,577 386,807 31,302 2,121,849

$

$

28,875.791

$

$

$

10,359,812 8,499,909 3,152,414

$

10,319,321 8,286,932 3,187,973 4,471,782 152,878 152,878 355,218 1 013 946

4,256,526 151,158 352,702 30,669 1 003 339

96.10 %

96.38 % 0.48

97.92 % 1.44

96.59 % 0.81

96.10 %

96.86 %

99.36 %

97.40 %

(1) Assessed valuation is as of the year preceding the fiscal year in which the taxes are levied. (2) 2016 is the most current information available. Data Source Office of the Cook County Clerk

89


2012

2011

2010

2009

2008

2007

$ 2,378,592,213

$ 2,579,523,467

$ 3,018,249,531

$ 3,017,187,943

$ 2,941,295,693

$ 2,586,188,231

0.5000 0.3000 0.0879 0.0000 0.1635 0.0087 0.0149 0.0013 0.0500

0.4980 0.2710 0.0666 0.0000 0.1361 0.0129 0.0139 0.0012 0.0500

0.4192 0.2190 0.0653 0.0000 0.1131 0.0070 0.0110 0.0007 0.0429

0.3981 0.2294 0.0572 0.0000 0.0948 0.0070 0.0098 0.0007 0.0391

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

1.1263

1.0497

0.8782

0.8361

0.8507

0.9502

$

11,892,961 7,135,777 2,089,876

$

3,889,256 206,000 355,350 29,870 1,189,296

12,845,375 6,990,274 1,717,675

$

3,512,470 333,755 358,921 30,591 1.289,762

12,652,502 6,609,966 1,970,916

$

3,413,153 211,277 332,007 21,127 1.294.829

12,011,425 6,921,429 1,725,831

$

2,860,294 211,203 295,684 21,120 1,179.720

12,294,615 6,970,870 1,858,898

$

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

2,238,326 197,066 273,540 20,589 1.167 694

$

26.788.386

$

27.078.823

$

26.505.777

$

25.226.706

$

25.021.598

$

24.574.298

$

25,898,953 392 789

$

26,193,587 201 981

$

25,578,918 420 904

$

24,235,274 339.050

$

23,927,913 791 691

$

23,606,984 609 110

$

26,291.742

$

26,395.568

$

25.999.822

$

24.574.324

$

24.719,604

$

24,216,094

96.68 % 1.47

96.73 % 0.75

96.50 % 1.59

96.07 % 1.34

95.63 % 3.16

96.06 % 2.48

98.15 %

97.48 %

98.09 %

97.41 %

98.79 %

98.54 %

90


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

Levy year 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 #I Village of Orland Park Village of Orland Park Library Fund Acom 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 Total overlapping governments Orland Fire Protection District Totals

2016

2015

2014

2013

2012

0.533 0.063 0.000 0.087 0.019 0.057 0.072 0.006 0.039 0.017 0.406 0.423 0.000 0.679 0.345 0.237 0.173 0.000 0.522 3.318 5.119 5.943 2.778 0.406

0.552 0.069 0.034 0.089 0.019 0.058 O.Q75 0.007 0.041 0.017 0.426 0.433 0.000 0.714 0.355 0.243 0.176 0.000 0.534 3.425 5.304 6.125 2.879 0.419

0.568 0.069 0.000 0.085 0.018 0.055 0.073 0.006 0.040 0.017 0.430 0.418 0.000 0.693 0.339 0.233 0.170 0.000 0.521 3.286 5.135 5.906 2.770 0.403

0.560 0.069 0.031 O.D78 0.016 0.050 0.070 0.007 0.039 0.016 0.417 0.400 0.250 0.675 0.303 0.202 0.162 0.051 0.493 3.187 4.779 5.456 2.641 0.375

0.531 0.063 0.000 0.070 0.014 O.D45 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

21.242

21.994

21.235

20.327

19.019

1.292

1.343

1.269

1.237

1.126

22.534

23.337

22.504

21.564

20.145

Source of information - Cook County Clerk's Office

91


2011

2010

2009

2008

2007

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

17.094

14.688

13.793

14.970

14.903

1.050

0.878

0.836

0.851

0.950

18.144

15.566

14.629

15.821

15.853

92


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS PRINCIPAL PROPERTY TAXPAYERS* DECEMBER31, 2017

Type of Business

Taxpavcr Simon Property Group IRC Edwards Realty Co. Metra Triangle LLC Constance Oswald Supervalu Inc. B & G Realty Legal Dept J.C. Penney Co., Inc. Cambridge Realty Captl Marquette Finance Orland Park Joint Venture St. George Corp Sears D768 Tax B2 109A Albertson's Prop. Tax Macy Department Stores Costco

Orland Square Mall (includes smaller stores) Shopping centers and one-story store One, two or three story building containing retail and commercial space Special rental structure C01mnercial buildings, 2 or more stories Supermarket One story public garage/cinema Department store Special commercial improvements One, two or three story building containing retail and commercial space Shopping center Commercial buildings over three stories Department store Supermarket Department store Warehouse membership store

Total

* The figures above are totals of parcels with equalized assessed valuation of $100,000 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

93


2007

2016 Percentage of Total District Taxable Assessed Value

Taxable Assessed Value

Rank

$ 115,517,800 48,533,079

1 2

5.17 % 2.17

12,948,325 11,990,691

3 4

0.58 0.54

11,200,451 8,647,964 8,440,438 8,023,493 7,664,807

5 6 7 8 9

0.50 0.39 0.38 0.36 0.34

7,489,134

10

0.33

$ 240.456.182

10.76 %

Taxable Assessed Value $

$

Rank

Percentage of Total District Taxable Assessed Value

93,676,033 61,917,391

1 2

3.62 % 2.39

14,133,566

8

0.55

15,543,111

4

0.60

27,155,858 15,484,910 14,577,356 14,289,224 11,887,496 11,781.223

3 5 6 7 9 10

1.05 0.60 0.56 0.55 0.46 0.46

280,446,168

94

10.84 %


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

F i cal Year 2017

General Obligation Debt Ccrti fi cHtes

General Obligation Bonds $

$

2016

23,821 ,914

Installment Contract $

715,568

24,486,426

830,803

Fire Protection Notes

Notes Pavable $

834, 198

$

2015

1, 171,375

25,065,938

942,519

2014

2,295,233

25,570,450

1,050,824

2013

3,289,091

26,000,737

2012

4,202,949

26,405,249

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

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

95


Total Primary Government $

Percentage of Personal Income

Per Capita

25,371,680

0.96 %

25,317,229

0.97

383

27, 179,832

1.07

413

28,916,507

1.19

439

29,289,828

1.22

445

30,608, 198

1.12

408

5,071,807

0.19

68

6,938,995

0.25

93

7,798,577

0.34

104

7,700,721

0.34

103

$

384

96


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

General Obligation Debt

Fiscal Year

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

$

23,821,914 24,486,426 26,237,313 27,865,683 29,289,828 30,608,198 5,071,807 5,805,665 6,479,693 7,118,721

Less Amount Available in Debt Service Fund

$

Total

$

822,203 816,352 789,461

23,821,914 24,486,426 26,237,313 27,865,683 29,289,828 30,608,198 5,071,807 4,983,462 5,663,341 6,329,260

Percentage of Estimated Actual Taxable Value of Property (1)

0.27 % 0.29 0.30 0.31 0.32 0.30 0.04 0.04 0.05 0.06

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.

97


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DIRECT AND OVERLAPPING GOVERNMENT AL ACTIVITIES DEBT DECEMBER 31, 2017

2016 Equalized Assessed Valuation Overlapping agencies: Cook County Cook County Forest Preserve Metropolitan Water Reclamation District

$

Outstanding Debt

143,113,373,400 143,113,373,400 140,401,735, 157

$

Annlicable to District Percent Amount

3,092,046,750 (2) 150,960,000

1.562 % l.562

2,480,560,091 (1)

1.592

39,490,517

$

48,297,770 2,357,995

Municipalities: Village of Homer Glen Village of Orland Park and Library

891,341,933 2,052,693,694

8,345,000 69,925,000

0.017 96.352

1,419 67,374,136

Park District: Tinley Park Park District

1,223,667,160

5,206,000

4.884

254,261

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

577,104,816 4,359,637,177 9,037,740,938

26.229 51.275 24.734

3,766,484 5,558,210 14,423,632

14,360,000 10,840,000 58,315,000 (2)

Total overlapping govemmental activities debt Direct debt: Orland Fire Protection District

181,524,424

2,235,879,473

Total direct and overlapping govemmental activities debt

(1) (2)

25,371,680

l 00.000

25,371,680

$

206,896, l 04

Includes IEPA Revolving Loan Fund Bonds. Excludes outstanding principal amounts of General Obligation Altemate Revenue Source Bonds which are expected to be paid from sources other than general taxation.

Note: Overlapping govemments are those that coincide at least in part, with the geographic boundaries of the District. The schedule estimates the portion of the outstanding debt of those overlapping governments that is bome by the residents and businesses of the District. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Source:

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

98


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

Legal Debt Margin Calculation for December 31, 2017 $ 2,235.879.473

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

128,563,070

Total statutory debt limit

128,563,070

Debt applicable to limit

25 ,371,680 $

Legal debt margin

Debt limit

2016

2015

2014

2013

$ 122,453,472

$ 125,965,151

$ 129,272,547

$ 136,769,052

25,317,229

27,179,832

28,916,507

29.289.828

98,785,319

$ 100,356,040

$ 107,4 79 ,224

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

103.191,390

$

97,136,243

20.6750 %

99

$

21.5773 %

22.3686 %

21.4155 %


2012

2011

2010

2009

2008

$ 148,322,599

$ 173,549,348

$ 173,488,307

$ 169,124,502

$ 148,705,823

30,880,000

5,025,000

6.883,330

7.733.884

7.627.000

$ 117,442.599

$ 168,524,348

$ 166,604,977

$ 161,390,618

$ 141.078,823

20.8195 %

2.8954 %

3.9676 %

4.5729 %

100

5.1289 %


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

Personal Fiscal

Population

Income

Per Capita

Unemployment

Median

Year

(1)

(in thousand ·)

Income (1)

Rate

Age (1)

3.30 %

46.2

39,631

4.40

46.1

2,548,960

38,698

5.00

45.0

65,879

2,427,444

36,847

5.60

45.0

2013

65,879

2,396,283

36,374

6.70

45.0

2012

75,000

2,728,050

36,374

7.30

45.0

2011

75,000

2,728,050

36,374

8.20

45.0

2010

75,000

2,728,050

36,374

8.80

45.0

2009

75,000

2,285,025

30,467

10.60

41.4

2008

75,000

2,285,025

30,467

7.10

41.4

2017

66,046

$ 2,645,876

$ 40,061

2016

66,046

2,617,469

2015

65,868

2014

Data Sources: (1) Derived from the U.S. Census Bureau (most recent data). (2) Derived from Illinois State Board of Education School Report Cards.

101


Education Level in Years of

School

Formal

Enrollment

Schooling (1)

{2)

14

8,041

14

8,134

14

8,313

14

8,468

14

8,602

14

8,793

14

8,956

14

9,100

14

9,327

14

9,500

102


ORLAND FIRE PROTECTION DISTRICT, ILLINOIS PRINCIPAL EMPLOYERS DECEMBER 31, 2017

Type of Business

Taxpayer School District 135 Jewel/Osco Food Store High School District #230 The Horton Group Darvin Furniture Lexington Health Care Lowe's Home Improvement Carson Pirie Scott Panduit Corporation Lifetime Fitness Marshall Field J.C. Penney Marquette Bank Target The Home Depot

Elementary school (K-8) Supermarket and drug store High school (9-12) Insurance and financial consultants Furniture dealer - retail Nursing and convalescent homes Home center Retail department store Manufacturer of communication and telecommunications products Health club Retail department store Retail department store Full service bank Discount store Retail home improvement store

Note: Percentage of total District employment is based on the 20 l 0 census and the 2000 census. Note: 2016 is the most current information available. Source: Phone survey

103


2016 Approximate Number Emploved

2007

Rank

Percentage of Total District Employment

Approximate Number Employed

Rank

725 550 345 330 301 301 300 300

1 2 3 4 5 5 7 7

2.50 % 1.90 1.20 1.10 1.10 1.10 1.10 1.10

870 285 352

l 9 5

3.41 % 1.12 1.38

320

6

1.25

300 250

7 10

410

2

1.61

400 400 318 300 175

3 3 7 8 10

1.57 1.57 1.25 1.17 0.69

1.10 0.90

104

Percentage of Total District E mploy ment


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

2017 Sworn Personnel - Full-time: Chief Officers Program Supervisor Lieutenants Lieutenants/Paramedics Lieutenants/EMT-Bs Program Supervisor Engineers Engineers/Paramedics Firefighters/Paramedics Firefighters/EMT-Bs Total Sworn Personnel - Full-Time

2016

I

6 3 23 1

6 3 24 4

24 59 1

24 55 2

24 56 2

29 50 3

116

113

115

119

7

7

7

7

123

120

122

126

9 4 11 2 1 1 5

8 4 14 2 1 2 5

9 4 14 2 1 1 5

8 4 14 1

33

36

36

34

156

156

158

160

5 3 24

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

2014

2015

Source: District records

105

5 3 23

1 5


2013

2012

2011

6 3 26 4

6 3 26 4

30 44 3

30 38 2

116

2010

2009

2008

30 38 2

7 3 25 5 1 30 41 2

7 3 25 5 1 30 42 2

9 3 26 4 1 30 42 2

109

111

114

115

117

5

15

14

10

10

6

121

124

125

124

125

123

8 3 15 2 1 2 4

8 5 15 2

7 5 15 1 1

4

4

10 6 15 1 1 1 4

11 6 16 1 1 1 3

8 6 17 1 1 1 3

35

36

34

38

39

37

156

160

159

162

164

160

l l

7 3 27

4

l

106


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

2017

2016

2015

2014

2013

Activity: Fire/Rescue EMS Total call volume

3,673 6 170

3,917 6 043

3,855 5 408

3,931 5.185

3,643 4 856

9 843

9.960

9.263

9 116

8 499

Source: District records

107


2012

2011

2010

2009

2008

2,599 5 794

3,173 4 942

3,280 4 756

3,370 4.597

3,059 5.223

8 393

8 115

8 036

7 967

8 282

108


2017 Comprehensive Annual Financial Report  
2017 Comprehensive Annual Financial Report